Document:

Exhibit

EXHIBIT 10.1

LIMITED PARTNERSHIP AGREEMENT
OF
RXR VAF III 1285 CO-INVESTOR PARALLEL LP

____________________________________________________________________________

THE INTERESTS ISSUED UNDER THIS AGREEMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR REGISTERED OR QUALIFIED UNDER THE APPLICABLE STATE SECURITIES LAWS, IN RELIANCE UPON EXEMPTIONS FROM REGISTRATION AND QUALIFICATION PROVIDED IN THE SECURITIES ACT AND THE APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND QUALIFICATION OR REGISTRATION UNDER THE APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER THAT SUCH REGISTRATION OR QUALIFICATION IS NOT REQUIRED. 
IN ADDITION, THE INTERESTS ISSUED UNDER THIS AGREEMENT MAY BE SOLD OR TRANSFERRED ONLY IN COMPLIANCE WITH THE RESTRICTIONS ON TRANSFER SET FORTH HEREIN.

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	TABLE OF CONTENTS
	Page

	ARTICLE I
	GENERAL PROVISIONS
	1

	ARTICLE II
	CERTAIN DEFINITIONS
	2

	ARTICLE III
	FINANCING
	9

	ARTICLE IV
	ALLOCATIONS OF PROFITS AND LOSSES
	13

	ARTICLE V
	DISTRIBUTIONS
	16

	ARTICLE VI
	MANAGEMENT
	17

	ARTICLE VII
	MEETINGS
	24

	ARTICLE VIII
	BOOKS, RECORDS AND BANK ACCOUNTS
	24

	ARTICLE IX
	ASSIGNABILITY OF PARTNERSHIP INTERESTS; SALE OF THE INVESTMENT
	27

	ARTICLE X
	DISSOLUTION AND TERMINATION
	29

	ARTICLE XI
	INTENTIONALLY OMITTED
	32

	ARTICLE XII
	MISCELLANEOUS
	32

	 
	 
	 

	Annex A
	Capital Commitments, Initial Capital Contributions and Percentage Interests
	 

	Annex B
	Right of First Offer
	 

	 
	 
	 

	 
	 
	 

11585382.7

LIMITED PARTNERSHIP AGREEMENT

OF

RXR VAF III 1285 CO-INVESTOR PARALLEL LP

LIMITED PARTNERSHIP AGREEMENT, (the “Agreement”) dated as of May 20, 2016, of RXR VAF III 1285 Co-Investor Parallel LP, a Delaware limited partnership (the “Partnership”) having an address at c/o RXR Realty LLC, 625 RXR Plaza, Uniondale, NY  11556, by and among RXR VAF III 1285 GP LP, a Delaware limited partnership (the “General Partner”), and any persons admitted to the Partnership in accordance with the terms of this Agreement as limited partners (each, a “Limited Partner”).  The Limited Partners of the Partnership and the General Partner are hereinafter sometimes referred to collectively as the “Partners” and each of them individually as a “Partner.”  Certain capitalized terms used herein are defined in Article II.
Background

WHEREAS, the General Partner formed the Partnership pursuant to the provisions of the Delaware Revised Uniform Limited Partnership Act, as amended from time to time (the “Act”), by causing the Certificate of Limited Partnership of the Partnership to be filed with the Delaware Secretary of State on May 18, 2016, pursuant to Section 17-201 of the Act (as may be amended or restated from time to time hereafter, the “Certificate of Limited Partnership”); 
WHEREAS, the Partnership will own certain indirect interests in the real property commonly known as 1285 Avenue of the Americas (the “Investment”); and
WHEREAS, the Partners desire to be admitted to the Partnership and to set forth the terms, covenants and conditions governing or pertaining to the Partnership, as hereinafter provided in this Agreement. 
NOW, THEREFORE, in consideration of the promises and the mutual agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

ARTICLE I 
 
GENERAL PROVISIONS
1.01.  Formation of the Partnership.  The Partners hereby agree to form and maintain a Limited Partnership pursuant to the Act and this Agreement.  The General Partner shall have the authority (i) to execute, file and record any amendments to, or restatements of, the Certificate of Limited Partnership, any fictitious name certificates and/or other documents to comply with the laws of the State of Delaware, and any other jurisdiction in which the Partnership shall carry on its business and (ii) to designate and authorize any third party who need not be a Partner of the Partnership to execute, file and record any such amendments, restatements, certificates and/or other documents.  

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1.02.  Name and Principal Office of the Partnership.  The Partnership shall be conducted under the name of RXR VAF III 1285 Co-Investor Parallel LP, or any other name the General Partner may determine.  Its principal office shall be located at c/o RXR Realty LLC, 625 RXR Plaza, Uniondale, NY  11556, or at such other places within the United States as the General Partner may determine.
1.03.  Business of the Partnership.  
(a)    The business and purposes of the Partnership shall be to (i) acquire, own, finance, refinance and manage equity interests in RXR VAF III 1285 Vehicle LP, which owns certain indirect interests in the Investment and (ii) do such other acts as the General Partner may deem necessary or advisable in connection with the foregoing.    
(b)    In order to carry out the business and purposes set forth in Section 1.03(a) hereof, the Partnership shall have the power to do all and everything necessary, suitable or proper for the accomplishment of or in furtherance of any of the purposes set forth herein, and to do every other act or acts, thing or things, incidental or appurtenant to or arising from or connected with any of such purposes.
(c)    The Partnership shall not engage in any business other than as provided in this Section 1.03.
1.04.  Term of the Partnership.  The term of the Partnership (the “Term”) commenced effective upon the filing of the Certificate of Limited Partnership of the Partnership with the Delaware Secretary of State on May 18, 2016 and shall continue in full force and effect until the earlier of:
(a)    the date that the Partnership is dissolved in accordance with the provisions of Article X hereof; and
(b)    the date of the sale or disposition of the Investment. 
1.05.  Partners.  
(a)    The General Partner of the Partnership shall be RXR VAF III 1285 GP LP.  Except as expressly provided in this Agreement, no other Person shall be admitted as an additional or substitute General Partner of the Partnership.
(b)    The Limited Partners of the Partnership shall be listed in the books and records of the Partnership.  Except as expressly provided in this Agreement, no Person shall be admitted as an additional or substitute Limited Partner of the Partnership.

ARTICLE II 
 
CERTAIN DEFINITIONS
For purposes of this Agreement, the following terms shall have the following meanings:
“Act” shall have the meaning set forth in the Background Section.

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“Adjusted Capital Account Deficit” shall mean, with respect to any Partner, the deficit balance, if any, in such Partner’s Capital Account as of the end of the relevant tax year, after giving effect to the following adjustments:
(i)    credit to such Capital Account any amounts which such Partner is obligated to restore pursuant to any provision of this Agreement or is deemed to be obligated to restore pursuant to Section 1.704-1(b)(2)(ii)(c) of the Regulations or the penultimate sentences of Sections 1.704-2(g)(1) and (i)(5) of the Regulations; and
(ii)    debit to such Capital Account the items described in Sections 1.704-1(b)(2)(ii)(d)(4), (5) and (6) of the Regulations.
The foregoing definition of “Adjusted Capital Account Deficit” is intended to comply with the provisions of Section 1.704-1(b)(2)(ii)(d) of the Regulations and shall be interpreted consistently therewith.
“Adjusted Capital Contributions” means, with respect to each Partner, the total amount of Capital Contributions made by such Partner pursuant to Sections 3.01, 3.02(a), 3.02(b), 3.02(c), 3.03 (excluding any Capital Contributions returned to existing Limited Partners pursuant to such Section) and 10.02, less any Net Distributable Cash and other amounts distributed to such Partner pursuant to Section 5.01(a). 
 “Affiliate” means, with reference to a Person, (i) any Person directly or indirectly Controlling, Controlled by or under common Control with such Person, (ii) any Person owning or controlling ten percent (10%) or more of the outstanding voting securities or beneficial interests of such Person, (iii) any officer, director, partner, manager, general trustee or anyone acting in a substantially similar capacity as to such Person; and (iv) any Person who is an officer, director, general partner, trustee, or holder of ten percent (10%) or more of the voting securities or beneficial interests of any of the foregoing; provided that any separate investment account, feeder fund, alternative investment vehicle or similar Person that is managed by the General Partner or its Affiliates shall not be considered an Affiliate of the General Partner or its Affiliates in any circumstance or for any purpose under this Agreement in which the determination as to any action, decision or vote to be effected is actually made or approved by the Person or Persons who are not themselves the General Partner or an Affiliate of the General Partner (without regard to whether such action, decision or vote to be effected is actually effected by the General Partner or its Affiliate); provided further that 1285 Investor NT-NSR, LLC shall not be considered an Affiliate of RXR for purposes of this Agreement.
“Agreement” means this Limited Partnership Agreement of the Partnership, as may be amended or restated in accordance with the terms hereof.
 “Authorized Representative” shall have the meaning set forth in Section 12.12(a).
“Budget Act” means the Bipartisan Budget Act of 2015 (P.L. 114-74).  
“Business Day” shall mean any day other than (a) Saturday or Sunday and (b) any other day on which banks located in New York City are required or authorized by law to remain closed.  

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“Capital Account” shall mean an account for each Partner which shall consist of its initial Capital Contribution to the Partnership as described in Section 3.01 hereof, and shall be increased by:  
(a)    the amount of additional cash or other property (net of liabilities assumed by the Partnership and liabilities to which such contributed property is subject) contributed, or deemed to be contributed, by such Partner to the Partnership in accordance with this Agreement; and
(b)    the amount of Profit and other items of income and gain allocated to such Partner pursuant to Article IV hereof; 
and shall be decreased by: 

(c)    the amount of Loss and other items of deduction or loss allocated to such Partner pursuant to Article IV hereof;
(d)    the amount of cash distributed to such Partner in accordance with this Agreement; and
(e)    the fair market value of property other than cash distributed to such Partner (net of liabilities assumed by such Partner and liabilities to which such distributed property is subject).  
The Capital Account of each Partner shall be further adjusted as set forth in this Agreement.  No Partner shall be required to restore any negative balance in its Capital Account except as otherwise provided herein.  In the event that all or a portion of a Partnership Interest in the Partnership is transferred in accordance with the terms of this Agreement, the transferee shall succeed to the Capital Account of the transferor to the extent it relates to the transferred Partnership Interest.  
“Capital Call Notice” shall have the meaning set forth in Section 3.02(a).
“Capital Commitment” means, with respect to any Partner, the capital commitment of such Partner set forth on Annex A hereto, as the same may be amended from time to time.
“Capital Contributions” means the contributions made to the Partnership by the Partners in respect of their Capital Commitments.
 “Certificate of Limited Partnership” shall have the meaning set forth in the Background Section.
“Code” means the Internal Revenue Code of 1986, as amended from time to time.
“Company Act” shall have the meaning set forth in Section 9.01(a)(ii).
“Continuing Liability” shall have the meaning set forth in Section 10.02(a).
“Control” means the power to direct or cause the direction of the management or policies of a company whether through ownership of securities, by contract or otherwise, and “Controlling” and “Controlled” shall be interpreted accordingly.  

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“Defaulting Partner” shall have the meaning set forth in Section 3.02(c).
“Due Date” shall have the meaning set forth in Section 3.02(b).
“ERISA” means the Employee Retirement Income Security Act of 1974, as amended.
“Event of Dissolution” shall have the meaning set forth in Section 10.01(a). 
“Event of Withdrawal” means, with respect to any Partner, the death, incapacity, dissolution, expulsion, withdrawal, insolvency or bankruptcy of such Partner.  For the purposes of this Agreement, the “bankruptcy” of a Partner shall be deemed to occur only (i) when the Partner shall file a voluntary petition in bankruptcy, or shall be adjudicated bankrupt or insolvent, or shall file any petition or answer seeking for itself any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under any present or future statute, law or regulation, or shall file any answer admitting (or shall fail to contest) the material allegations of petition filed against such entity in any such proceeding or shall seek or consent to or acquiesce in the judicial appointment of any trustee, fiscal agent, receiver or liquidator of such entity or of all or any substantial part of its properties or shall take any action looking to its dissolution or liquidation; or (ii) if, within sixty (60) days after the commencement of an action against the Partner seeking any bankruptcy, reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under any present or future statute, law or regulation, such action shall not have been dismissed or all orders or proceedings thereunder affecting the operations or the business of such entity stayed, or if the stay of any such order or proceeding thereafter shall be set aside, or if, within sixty (60) days after the judicial appointment without the consent or acquiescence of such entity of any trustee, fiscal agent, receiver or liquidator of such entity or of all or any substantial part of its properties, such appointment shall not have been vacated.  For purposes of this Agreement, the “insolvency” of a Partner shall be deemed to occur only when the Partner shall make an assignment for the benefit of creditors or shall admit in writing that its assets are insufficient to pay its liabilities as they come due.
“Excess Nonrecourse Liability” means an “excess nonrecourse liability” within the meaning of Section 1.752-3 (a) (3) of the Regulations.
“Fiscal Year” shall have the meaning set forth in Section 8.01.
“Fund General Partner” means the general partner of the VAF III Partnerships.
“General Partner” shall have the meaning set forth in the first paragraph hereof. 
“Gross Asset Value” means, with respect to any asset, the asset’s adjusted basis for federal income tax purposes, except as follows:
(i)    the initial Gross Asset Value of any asset contributed by a Partner to the Partnership shall be the gross fair market value of such asset at the time of such contribution as reasonably determined by the General Partner;
(ii)    the Gross Asset Values of all Partnership assets may, in the sole discretion of the General Partner, be adjusted to equal their respective gross fair market values, as reasonably determined by the General Partner, as of the following times:  (a) 

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the acquisition of an additional interest in the Partnership by any new or existing Partner in exchange for more than a de minimis Capital Contribution; (b) the distribution by the Partnership to a Partner of more than a de minimis amount of Partnership property as consideration for an interest in the Partnership; (c) the grant of an interest in the Partnership (other than a de minimis interest) as consideration for the provision of services to or for the benefit of the Partnership by an existing Partner acting in a Partner capacity, or by a new Partner acting in a Partner capacity, or in anticipation of becoming a Partner; and (d) the liquidation of the Partnership within the meaning of Section 1.704-1(b)(2)(ii)(g) of the Regulations;
(iii)    the Gross Asset Value of any Partnership asset distributed to any Partner shall be the gross fair market value of such asset on the date of distribution, as reasonably determined by the General Partner; and
(iv)    the Gross Asset Values of Partnership assets shall be increased (or decreased) to reflect any adjustments to the adjusted basis of such assets pursuant to Code Section 734(b) or Code Section 743(b), but only to the extent that such adjustments are taken into account in determining Capital Accounts pursuant to Section 1.704-1(b)(2)(iv)(m) of the Regulations and Article V hereof; provided, however, that Gross Asset Values shall not be adjusted pursuant to this clause (iv) to the extent the General Partner determines that an adjustment pursuant to clause (ii) above is necessary or appropriate in connection with a transaction that would otherwise result in an adjustment pursuant to this clause (iv).
If the Gross Asset Value of an asset has been determined or adjusted pursuant to clause (i), (ii) or (iv) above, such Gross Asset Value shall thereafter be adjusted in the same manner as would the asset’s adjusted basis for federal income tax purposes, except that depreciation deductions shall be computed based on the asset’s Gross Asset Value as so determined, rather than on its adjusted tax basis.
“Indemnitees” shall have the meaning set forth in Section 6.03(a).
“Initial Closing Date” means May 20, 2016.
“Investment” shall have the meaning set forth in the Background Section.
“Limited Partner” shall have the meaning set forth in the first paragraph hereof.
“Majority (or other specified percentage) in Interest of the Limited Partners” means, at any time, those Limited Partners (excluding Defaulting Partners) having Percentage Interests in the aggregate in excess of fifty percent (50%) (or other specified percentage) of the aggregate Percentage Interests of all the Limited Partners (excluding Defaulting Partners) in the Partnership.

“Modifications” shall have the meaning set forth in Section 6.01(e)(iv).
“Net Distributable Cash” shall mean the sum of:  (w) the Partnership’s share of cash distributions which the Partnership receives from its interest in the Investment or any other of the Partnership’s assets and holdings (including any amounts released from Partnership Reserves), together with any net proceeds or other cash from the financing, refinancing or sale of its interest in the Investment or any Partnership Affiliate, or from any other source, and (x) any income earned 

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on its cash holdings from temporary investments, reduced by the sum of:  (y) any expenses and liabilities incurred by the Partnership and (z) any amounts added to Reserves.  “Net Distributable Cash” shall not be reduced by depreciation, amortization, cost recovery deductions or similar non-cash allowances.
“Non-Defaulting Partner” shall have the meaning set forth in Section 3.02(c).
“Nonrecourse Debt” means any Partnership liability to the extent that no Partner or related person bears the economic risk of loss for such liability under Section 1.752-2 of the Regulations.
“Nonrecourse Deductions” shall be determined as set forth in Section 1.704-2 (b) (1) of the Regulations.
“Nonrecourse Liability” shall have the meaning set forth in Section 1.704-2(b)(3) of the Regulations.
“Notice Date” shall have the meaning set forth in Section 3.02(b).
“Partner” or “Partners” shall have the meaning in the first paragraph hereof.
“Partner Nonrecourse Debt” shall have the meaning set forth in Section 1.704-2 (b) (4) of the Regulations.
“Partner Nonrecourse Debt Minimum Gain” shall be determined as set forth in Section 1.704-2 (i) (2) of the Regulations, and, as provided therein, shall generally be the amount, with respect to each Partner Nonrecourse Debt, equal to the Partnership Minimum Gain that would result if such Partner Nonrecourse Debt were treated as a Nonrecourse Debt.
“Partner Nonrecourse Deductions” shall be determined in the manner set forth in Section 1.704-2 (i) (1) of the Regulations.
“Partnership” shall have the meaning set forth in the first paragraph hereof.
“Partnership Interest” means, with respect to each Partner, its total economic interest in the Partnership as a Partner, including its right to receive distributions of Net Distributable Cash and allocations of Profit and Loss in accordance with this Agreement.
“Partnership Minimum Gain” shall be determined as set forth in Section 1.704-2 (b) (2) of the Regulations.
“Percentage Interest” means, as to each Partner, the percentage determined by dividing (i) the total Capital Contributions made by such Partner to the Partnership pursuant to the terms of this Agreement, by (ii) an amount equal to the total Capital Contributions made by all of the Partners to the Partnership pursuant to the terms of this Agreement, provided that, for the avoidance of doubt, capital contributions shall exclude any Priority Capital Contributions.
“Person” means a corporation, an association, a partnership (general or limited), a joint venture, an estate, a trust, a limited liability company, a limited liability partnership, any other legal entity, or an individual. 

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“Principal” means any of Scott Rechler, Michael Maturo or Jason Barnett (collectively, “Principals”).
“Priority Capital Contribution” shall have the meaning set forth in Section 3.02(g).
“Profits” and “Losses” mean, for each taxable year or other period, an amount equal to the Partnership’s taxable income or loss for such year or period, determined in accordance with Code Section 703(a) (for this purpose, all items of income, gain, loss or deduction required to be stated separately pursuant to Code Section 703(a)(1) shall be included in taxable income or loss), with the following adjustments:
(i)    any income of the Partnership that is exempt from federal income tax and not otherwise taken into account in computing Profits and Losses shall be added to such taxable income or loss;
(ii)    any expenditures of the Partnership described in Code Section 705(a)(2)(B) or treated as Code Section 705(a)(2)(B) expenditures pursuant to Section 1.704-1(b)(2)(iv)(i) of the Regulations, and not otherwise taken into account in computing Profits or Losses shall be subtracted from such taxable income or loss;
(iii)    if the Gross Asset Value of any Partnership asset is adjusted pursuant to clause (ii), (iii) or (iv) of the definition of Gross Asset Value herein, the amount of such adjustment shall be taken into account as gain or loss from the disposition of such asset for purposes of computing Profits or Losses;
(iv)    gain or loss resulting from any disposition of Partnership property with respect to which gain or loss is recognized for federal income tax purposes shall be computed by reference to the Gross Asset Value of the property disposed of, notwithstanding that the adjusted tax basis of such property differs from its Gross Asset Value;
(v)    depreciation or other cost recovery deductions shall be computed based upon the Gross Asset Values of the Partnership’s assets rather than upon such assets’ adjusted bases for U.S. federal income tax purposes; and
(vi)    notwithstanding any other provisions hereof, any items which are specially allocated pursuant to Article IV hereof shall not be taken into account in computing Profits or Losses.
“Records” shall have the meaning set forth in Section 8.03(a).
“Regulations” means regulations, proposed regulations, and temporary regulations promulgated under the Code from time to time. 
“Removal Event” shall have the meaning set forth in Section 6.02(b).
“Reserves” means any reserves established or increased for the payment of Partnership expenses or liabilities, in such amounts and for such reasons as reasonably determined by the General Partner.

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“RXR” means RXR Realty LLC, a Delaware limited liability company, and its successors whether by way of merger, business combination, sale of assets, reincorporation, consolidation, recapitalization, liquidation, amalgamation or similar transaction or otherwise.
“Security Instruments” shall have the meaning set forth in Section 6.01(e)(iii).
“Subsequent Closing” means a closing which occurs after the date hereof at which any existing Partner increases its Capital Commitment, or any additional Limited Partner is admitted to the Partnership in respect of a Capital Commitment.
“Tax Distributions” shall have the meaning set forth in Section 5.04.
“Term” shall have the meaning set forth in Section 1.04.
“Transfers” shall have the meaning set forth in Section 9.01(a).
“VAF III Partnership Agreements” means, collectively, the operating agreements of the VAF III Partnerships.
“VAF III Partnerships” means, collectively, RXR Real Estate Value Added Fund – Fund III LP, RXR RE VAF – Fund III Parallel A LP, RXR RE VAF – Fund III Parallel B LP and RXR RE VAF – Fund III Parallel B (REIT) LP.
“Withdrawing Partner” shall have the meaning set forth in Section 9.02.

ARTICLE III 
 
FINANCING
3.01.  Capital Commitments and Initial Capital Contributions of the Partners.  
(a)    The General Partner’s Capital Commitment and initial Capital Contribution are set forth on Annex A to this Agreement.  
(b)    The names of the initial Limited Partners and their respective Capital Commitments and initial Capital Contributions are set forth on Annex A to this Agreement.
3.02.  Additional Capital Contributions; Loans
(a)    Within 10 Business Days after written notice from the General Partner (a “Capital Call Notice”), the Partners shall (i) be required to fund additional Capital Contributions in satisfaction of their respective Capital Commitments, proportionately in relation to each Partner’s unfunded Capital Commitment and (ii) to the extent the General Partner is requesting additional Capital Contributions that would result in a Partner making aggregate Capital Contributions in excess of such Partner’s Capital Commitment, have the option to fund such requested additional Capital Contribution.  The General Partner may deliver Capital Call Notices for operating expenses, liabilities or other obligations of the Partnership.    
(b)    If any Partner fails to contribute the full amount of any additional Capital Contributions required to be made pursuant to Section 3.02(a)(i) on or prior to the date on 

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which the additional Capital Contributions are required to be made (the “Due Date”), but contributes its full share within ten (10) days after the date notice is given to such Partner of that failure (the “Notice Date”), such Partner shall also pay to the Partnership in addition to such additional Capital Contribution, an amount equal to the sum of (A) an amount equivalent to interest for the period beginning with the Due Date and ending with the date such contribution is made by such Partner at a rate equal to fifteen percent (15%) per annum, not to exceed the maximum amount permitted by law, during such period on the full amount contributed, and (B) any additional actual out-of-pocket costs required to be paid or incurred directly or indirectly by the Partnership as a result of that Partner’s failure to make such additional Capital Contributions on or prior to the Due Date. 
(c)    If any Partner fails to contribute the full amount of any additional Capital Contributions required to be made pursuant to Section 3.02(a)(i), within ten (10) days after the Notice Date, the General Partner may elect, in its sole discretion, that such Partner shall be a Defaulting Partner (the “Defaulting Partner”) as of that tenth day, in which case, the General Partner may elect to exercise one or more of the following remedies with respect to such Defaulting Partner:
(i)    Such Defaulting Partner shall forfeit all of its voting, approval and similar rights under this Agreement.
(ii)    The General Partner shall have the right, on behalf of the Partners other than the Defaulting Partner (the “Non-Defaulting Partners”), exercisable by notice from the General Partner to the Defaulting Partner to cause the Partnership to pursue any available legal remedies against the Defaulting Partner to collect the additional Capital Contributions and any other damages (including consequential damages).
(iii)    The General Partner shall have the right to lend (or to permit another Person to lend), to the Defaulting Partner the amount of such additional Capital Contribution that was not made timely by the Defaulting Partner, the proceeds of which loan are to be paid to the Partnership on behalf of the Defaulting Partner as an additional Capital Contribution by the Defaulting Partner.  Any loan under this clause (iii) shall be a recourse loan to the Defaulting Partner, and shall bear interest, compounded monthly, at the rate equal to twenty percent (20%) per annum, not to exceed the maximum interest rate permitted by law, from the Due Date until the date of repayment.  Repayment of any such loan by the Defaulting Partner shall be effected by causing the Partnership to pay directly to the Persons who shall have made the loan, all distributions otherwise payable to the Defaulting Partner under this Agreement as and when payable, instead of making such distributions to the Defaulting Partner (with such distributions being deemed for all purposes to have been made to the Defaulting Partner and then paid by the Defaulting Partner to the Persons who shall have made the loan).  Any payments made with respect to the foregoing loans shall first be applied to accrued but unpaid interest, and then be deemed a repayment of principal.  Notwithstanding the foregoing provisions of this clause (iii), the Defaulting Partner shall be personally liable for the payment of interest and the repayment of principal on any such loan contemplated by this clause (iii). 
(iv)    The General Partner shall have the right to cause the Percentage Interest, Capital Commitment, Adjusted Capital Contribution and Capital Account of such Defaulting Partner to be reduced to zero (or to such other amount as determined by the General Partner) and to reallocate the balance in such Capital Account 

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to the Capital Accounts of all other Partners pro rata in accordance with their Percentage Interests.  
(d)    Intentionally Omitted.
(e)    The provisions of this Section 3.02 are not intended to be for the benefit of any creditor or other Person (other than a Partner) to whom any debts, liabilities or obligations are owed by, or who otherwise has any claim against, the Partnership or any of the Partners; and no such creditor or other Person shall obtain any right under any such provision or by reason of any such liability, obligation or otherwise against the Partnership or any of the Partners.  No Partner shall be required to make any loans or Capital Contributions to the Partnership other than as provided for in Section 3.01, Section 10.02 and this Section 3.02.
(f)    Subject to Section 5.05 and Section 10.02, or as otherwise required by law, no Partner shall be required to return any distributions received by such Partner from the Partnership.  No Partner shall have the right to withdraw any part of his Capital Contributions, or receive any distribution or consideration for the fair value of its Partnership Interest, except as specifically provided in this Agreement.  Except as specifically provided in this Agreement, no time has been agreed upon for the return of any Partner's Capital Contributions.  No Partner shall at any time withdraw from the Partnership except as expressly provided in this Agreement.  No Partner shall receive interest on its Capital Contribution to the Partnership.  At no time during the term of the Partnership or upon dissolution and liquidation thereof shall any Partner with a negative balance in its Capital Account have any obligation to the Partnership or the other Partners to eliminate or restore such negative balance.  
(g)    If, under the terms of any loan to the Partnership or any entity established by the Partnership for the purpose of acquiring or owning an Investment, any Principal or an Affiliate thereof is required to make any payments under any guarantees, indemnity agreements or other Investment loan documents not attributable to personal actions of the Principal outside the scope of the General Partner’s authority in this Agreement, and giving rise to liability under any guaranty, indemnity, or similar agreement executed by the Principal or an Affiliate thereof, then each such payment shall be deemed to be a “Priority Capital Contribution” made by the General Partner to the Partnership; provided, however, that prior to any Principal or Affiliate making any such Priority Capital Contribution, the Partnership shall request that the Limited Partners fund any such payment pro rata in accordance with their Percentage Interests, and a Priority Capital Contribution shall only be made in the amount that has not been so funded by the Limited Partners; provided further, that if the General Partner determines in its reasonable discretion that the payment is required to be funded in a time frame that would not permit the General Partner to call additional Capital Contributions while enabling the Principal or Affiliate to comply with its obligations under the applicable agreement, the Principal or Affiliate may make such Priority Capital Contribution and subsequently request that the Limited Partners reimburse the Principal or Affiliate for such Priority Capital Contribution, in which case, the amount so reimbursed shall not be entitled to the preferred return described in the following sentence.  Unpaid Priority Capital Contributions shall be entitled to a ten percent (10%) preferred return thereon, compounded annually, which return shall be treated as a guaranteed payment within the meaning of Section 707(c) of the Code.  Priority Capital Contributions and the preferred return thereon may only be paid out of Net Distributable Cash, to the extent it is available, and before any other distributions of Net Distributable Cash are made pursuant to Section 5.01.  In the event that any Priority Capital Contributions are deemed to have been made pursuant to this Section 3.02(g), then, notwithstanding the provisions of Article 

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V, Net Distributable Cash shall first be distributed to the General Partner until it receives, pursuant to this Section 3.02(g), an amount equal to its Priority Capital Contributions together with the preferred return accrued thereon.  Priority Capital Contributions shall not increase the General Partner’s Percentage Interest and therefore shall not dilute the Percentage Interests of the Limited Partners.  Promptly after any Priority Capital Contribution is made, the General Partner shall give written notice to the Advisory Committee of such Priority Capital Contribution.  
3.03.  Admission of Additional Partners. If the Partnership requires additional funds in excess of the Limited Partners’ Capital Commitments, the General Partner shall request such funds from the Limited Partners, pro rata based on their Percentage Interests; provided that the Limited Partners shall have no obligation to make any additional Capital Contributions in excess of their Capital Commitments.  If, after making a request for funds in excess of the Capital Commitments of the Limited Partners as provided in the previous sentence, the Limited Partners have declined to fund such excess in full, and the General Partner determines that additional funds are needed, the General Partner, in its sole discretion, shall have the right, subject to Section 9.01(e), to admit additional Partners to the Partnership, or to permit an existing Partner to increase its Capital Commitment, in one or more Subsequent Closings without the consent of the Partners in accordance with the terms of this Section 3.03.  The Partners hereby consent to such admission of the additional Partners and/or the increase in the Capital Commitment of other existing Partners after the date hereof and agree to take all reasonable actions requested by the General Partner to effectuate the same.  Unless there has been a material change or significant events relating to an Investment which would justify an increased valuation in the reasonable determination of the General Partner, such Partner participating in a Subsequent Closing will (A) remit to the Partnership upon such admission or increase an amount equal to the product of (i) a fraction, the numerator of which equals the additional Partner’s Capital Commitment or the increase in the existing Partner’s Capital Commitment, as the case may be, and the denominator of which equals the Capital Commitments of all Partners (including the Capital Commitments of all additional Partners and the increase in Capital Commitments of all existing Partners) and (ii) all Adjusted Capital Contributions (and after taking into account any Capital Contributions previously returned to the Partners pursuant to this Agreement and any contributions or distributions pursuant to this Section 3.03), and (B) make an additional contribution (which shall not be deemed a Capital Contribution), calculated in the same manner as interest, on the amounts described in clause (A) of this sentence at an annual rate equal to ten percent (10%) calculated from the date on which Capital Contributions would have been made if such Partner had been admitted to the Partnership on the date hereof or in the case of a Partner increasing its Capital Commitment, such Capital Commitment had been made on the date hereof.  Capital Contributions and the additional contributions made by Partners admitted at a Subsequent Closing may be paid to existing Limited Partners pro rata in accordance with their Adjusted Capital Contributions immediately prior to the Subsequent Closing.  Capital Contributions made pursuant to clauses (A) and (B) of this Section 3.03 shall be made in satisfaction of the Capital Commitments of the contributing Limited Partners, and the Capital Contributions and other amounts contributed pursuant to clauses (A) and (C) of this Section 3.03 shall be paid to existing Limited Partners pro rata in accordance with their Adjusted Capital Contributions.  Capital Contributions made pursuant to clause (A) of this Section 3.03(i) and paid pursuant hereto to a Partner will be added to the unfunded Capital Commitment of the receiving Partners and will be subject to recall as a Capital Contribution pursuant to the terms hereof.  If, in connection with either the admission of Partners after the date hereof or an increase in a Partner’s Capital Commitment after the date hereof, an additional amount is paid to and a portion of a Capital Contribution is returned to a Limited Partner, it shall be treated for all purposes (other than for tax purposes) as if such capital had never been contributed.

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ARTICLE IV 
 
ALLOCATIONS OF PROFITS AND LOSSES
4.01.  Losses.  Except as otherwise provided in this Article IV, Losses of the Partnership for each taxable year (or portion thereof) shall be allocated as follows:
(a)    first, to the Partners that have received an allocation of Profits pursuant to Section 4.02(b), in the same ratio as such prior allocations, in an amount sufficient to reverse such prior allocations, and in the reverse of the chronological order in which such prior allocations were made; and
(b)    second, to the Partners, pro rata in accordance with their respective Percentage Interests.
4.02.  Profits.  Except as otherwise provided in this Article IV, Profits of the Partnership for each taxable year (or portion thereof) shall be allocated as follows:
(a)    first, to the Partners proportionately in an amount equal to (i) the cumulative Losses allocated pursuant to Section 4.01(b) to each such Partner over (ii) the cumulative Profits allocated pursuant to this Section 4.02(a) to each such Partner for all prior taxable years (or portions thereof); and 
(b)    second, remaining Profits shall be allocated to each Partner in an amount such that Profits, on an aggregate basis since the inception of the Partnership, are proportionate to the distributions (other than distributions that represent repayment of Priority Capital Contributions and the preferred return thereon or Capital Contributions) that such Partner received or would receive as of the end of such taxable year (or other period) if all of the Partnership’s Profits (determined on an aggregate basis since the inception of the Partnership) consisted of Net Distributable Cash that was distributed as of such year-end pursuant to Article V (other than Section 5.01(a) and less any actual distributions made pursuant to Article V).  
4.03.  Special Allocations.
(a)    Partnership Minimum Gain Chargeback.  Notwithstanding anything contained in this Article IV to the contrary, if there is a net decrease in Partnership Minimum Gain during any taxable year (or other period), except as otherwise permitted by Sections 1.704-2(f)(2), (3), (4) and (5) of the Regulations, items of Partnership income and gain for such taxable year (and subsequent years, if necessary) in the order provided in Section 1.704-2(j)(2)(i) of the Regulations shall be allocated among all Partners whose shares of Partnership Minimum Gain decreased during that year in proportion to and to the extent of such Partner’s share of the net decrease in Partnership Minimum Gain during such year.  The allocation contained in this Section 4.03(a) is intended to be a minimum gain chargeback within the meaning of Section 1.704-2 of the Regulations, and shall be interpreted consistently therewith. 
(b)    Partnership Nonrecourse Debt Minimum Gain Chargeback.  Notwithstanding anything contained in Article IV to the contrary, if there is a net decrease in Partner Nonrecourse Debt Minimum Gain during any taxable year (or other period), except as provided in Section 1.704-2(i) of the Regulations, items of Partnership income and gain for such taxable year (and subsequent years, if necessary) in the order provided in Section 1.704-2(j)(2)(ii) of the 

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Regulations shall be allocated among all Partners whose share of Partner Nonrecourse Debt Minimum Gain decreased during that year in proportion to and to the extent of such Partner’s share of the net decrease in Partner Nonrecourse Debt Minimum Gain during such year.  This Section 4.03(b) is intended to comply with the minimum gain chargeback requirement in Section 1.704-2 of the Regulations and shall be interpreted consistently therewith.  Excess Nonrecourse Liabilities shall be allocated among the Partners in accordance with their Percentage Interests.  
(c)    Loss Limitation.  Notwithstanding anything to the contrary in this Section 4.03, the amount of items of Partnership expense and loss allocated pursuant to this Section 4.03 to any Partner shall not exceed the maximum amount of such items that can be so allocated without causing such Partner (other than the General Partner) to have an Adjusted Capital Account Deficit at the end of any taxable year (or other period).  All such items in excess of the limitation set forth in this Section 4.03(c) shall be allocated first to Partners who would not have an Adjusted Capital Account Deficit, pro rata, until no Partner would be entitled to any further allocation, and thereafter to the General Partner.
(d)    Qualified Income Offset.  Notwithstanding any provisions of Article IV to the contrary, in the event any Partner unexpectedly receives any adjustments, allocations, or distributions described in Sections 1.704-1(b)(2)(ii)(d)(4), 1.704-1(b)(2)(ii)(d)(5), or 1.704-1(b)(2)(ii)(d)(6) of the Regulations, items of Partnership income and gain (including gross income) shall be specially allocated to each such Partner in an amount and manner sufficient to eliminate, to the extent required by the Regulations, the Adjusted Capital Account Deficit of such Partner as quickly as possible, provided that an allocation pursuant to this Section 4.03(d) shall be made only if and to the extent that such Partner would have an Adjusted Capital Account Deficit.  The allocation contained in this Section 4.03(d) is intended to be a “qualified income offset” within the meaning of Section 1.704-1(b)(2)(ii)(d) of the Regulations, and shall be subject thereto.
(e)    Ordering.  Sections 4.03(a), (b), (c) and (d) hereof shall be applied in the order provided in Section 1.704-2 of the Regulations.
(f)    Section 754 Election Adjustments.  To the extent that an adjustment to the adjusted tax basis of any Partnership asset pursuant to Code Section 734(b) or 743(b) is required, pursuant to Section 1.704-1(b)(2)(iv)(m) of the Regulations, to be taken into account in determining Capital Accounts, the amount of such adjustment to the Capital Accounts shall be treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases such basis) and such gain or loss shall be specially allocated to the Partners in a manner consistent with the manner in which their Capital Accounts are required to be adjusted pursuant to such section of the Regulations. 
(g)    Nonrecourse Deductions.  Nonrecourse Deductions for any Fiscal Year or other period shall be allocated in accordance with Section 4.01(b).
(h)    Partner Nonrecourse Deductions.  In accordance with Section 1.704-2(i)(1) of the Regulations, any item of Partnership loss or deduction which is attributable to Partner Nonrecourse Debt for which a Partner bears the economic risk of loss (such as a non-recourse loan made by a Partner to the Partnership or an otherwise non-recourse loan to the Partnership that has been guaranteed by a Partner) shall be allocated to that Partner to the extent of its economic risk of loss.

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(i)    Varying Interests.  If, in accordance with the terms of Section 9.01, a Partner sells or exchanges its interest in the Partnership or otherwise is admitted as a substituted Partner, Profits and Losses shall be allocated between the transferor and the transferee in accordance with Section 9.01(d).
(j)    Intent of Allocations; Modification.  It is intended that prior to a distribution of the proceeds from a liquidation of the Partnership pursuant to Section 10.01 hereof, the positive Capital Account balance of each Partner shall be equal to the amount that such Partner is entitled to receive pursuant to such Section.  Accordingly, notwithstanding anything to the contrary in this Article IV, to the extent permissible under Sections 704(b) of the Code and the Regulations promulgated thereunder, Profits and Losses and, if necessary, items of gross income and gross deductions, of the Partnership for the year of liquidation of the Partnership (or, if earlier, the year in which all or substantially all of the is assets are sold, transferred or disposed of) shall be allocated among the Partners so as to bring the positive Capital Account balance of each Partner as close as possible to the amount that such Partner is entitled to receive pursuant to Section 10.01.
4.04.  Tax Allocations: Code Section 704(c).  
(a)    For federal income tax purposes, except as otherwise provided in Section 4.04(b), each item of income, gain, loss and deduction shall be allocated among the Partners in the same manner as its corresponding item of book income, gain, loss or deduction is allocated pursuant to this Article IV.
(b)    In accordance with Section 704(c) of the Code and the Regulations thereunder, income, gain, loss and deduction with respect to any property contributed to the capital of the Partnership shall, solely for tax purposes, be allocated among the Partners under any reasonable method selected by the General Partner so as to take account of any variation between the adjusted basis of such property to the Partnership for federal income tax purposes and its initial Gross Asset Value.
If the Gross Asset Value of any Partnership asset is adjusted pursuant to clause (ii) or (iv) of the definition thereof, subsequent allocations of income, gain, loss and deduction with respect to such asset shall take account of any variation between the adjusted basis of such asset for federal income tax purposes and its Gross Asset Value in the same manner as under Code Section 704(c) and the Regulations thereunder.
Any elections or other decisions relating to such allocations shall be made by the General Partner in a manner that reasonably reflects the purpose and intention of this Agreement.  Allocations pursuant to this Section 4.04(b) are solely for purposes of federal, state and local taxes and shall not affect, or in any way be taken into account in computing, any Partner’s Capital Account or share of Profits, Losses, other items or distributions pursuant to any provision of this Agreement
(c)    The provisions of this Article IV (and other related provisions in this Agreement) pertaining to the allocation of items of Partnership income, gain, loss, deductions, and credits shall be interpreted consistently with the Regulations, and to the extent unintentionally inconsistent with such Regulations, shall be deemed to be modified to the extent necessary to make such provisions consistent with the Regulations.

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ARTICLE V 
 
DISTRIBUTIONS
5.01.  Distributions of Net Distributable Cash.  Subject to the other provisions of this Article V, Net Distributable Cash, if any, for each Fiscal Year or part thereof (after deducting therefrom, and paying, to the extent of such available funds, any unreturned Priority Capital Contributions and preferred returns thereon) shall initially be apportioned among the Partners in accordance with their respective Percentage Interests and shall be distributed quarterly to the Partners.  If there is a change in the Percentage Interests of any of the Partners during any period in which Net Distributable Cash has been received by the Partnership, such distributions shall be made to the Partners in a manner reasonably determined by the General Partner which takes into account the varying interests of the Partners during such period, using an interim closing of the books method.  
5.02.  Distributions in Kind.  
(a)    No Partner has a right to any distribution in any form other than cash.
(b)    The Partnership may not make a distribution in kind unless approved by both the General Partner and the Partner receiving the in-kind distribution. 
5.03.  Limitations on Distributions.  No distribution shall be made to the Partners if such distribution would violate the Act.
5.04.  Intentionally Omitted.  
5.05.  Withholding.  
(a)    The General Partner may withhold and pay over to the Internal Revenue Service (or any other relevant taxing authority) such amounts as the Partnership is required to withhold or otherwise pay, pursuant to the Code or any other applicable law, on account of a Partner's allocable share of the Partnership's items of gross income, income, gain, or other attributes for tax purposes.  
(b)    For purposes of this Agreement, any taxes so withheld or any taxes paid over by the Partnership or otherwise incurred directly or indirectly, including under Section 6225 of the Code as amended by the Budget Act, with respect to a Partner's allocable share of the Partnership's gross income, income, gain or other attributes for tax purposes, or amounts which are otherwise properly allocable to a Partner, shall be deemed to be a distribution or payment to such Partner, reducing the amount otherwise distributable to such Partner pursuant to this Agreement and reducing the Capital Account of such Partner.  If the Partnership or the General Partner itself pays or incurs any tax (including penalties or interest) or similar charge directly or indirectly in respect of any Partner, including under Section 6225 of the Code as amended by the Budget Act, or pays or incurs any amount (including any tax, penalties or interest) in respect of any failure to pay or withhold any tax or similar charge in respect of any Partner as required by applicable law directly or indirectly that is not withheld from distribution to such Partner, such Partner shall on demand reimburse the Partnership for such amounts plus interest thereon (accruing from the date such payment was made by the person entitled to reimbursement) at the rate of fifteen percent (15%) per annum, compounded quarterly on the first day of each calendar quarter, from 

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and after the date on which the Partnership has given notice to such Partner. Such reimbursement shall not constitute a Capital Contribution and shall not reduce such Partner’s unfunded Capital Commitment. In addition to all other rights and remedies of the General Partner or the Partnership at law or in equity with respect to amounts owed by a Partner to the Partnership pursuant to this Section 5.05(b), the General Partner shall have the right to offset, or cause to be offset, against any such Partner’s distributions under this Agreement all amounts owed by such Partner to the General Partner or the Partnership pursuant to this Section 5.05(b).  A Partner’s reimbursement obligation arising under this Section 5.05(b) prior to a transfer by such Partner of its Percentage Interest in the Partnership or a withdrawal by such Partner shall continue after such transfer or withdrawal.  A Partner’s reimbursement obligation arising under this Section 5.05(b) with respect to taxes withheld, paid over, or otherwise incurred directly or indirectly by the Partnership (i) pursuant to Section 6225 of the Code or (ii) that are so withheld, paid over, or otherwise incurred directly or indirectly by the Partnership prior to the termination of the Partnership shall survive the dissolution and termination of the Partnership.    
(c)    The General Partner shall not be obligated to apply for or obtain a reduction of or exemption from withholding tax on behalf of any Partner that may be eligible for such reduction or exemption.  To the extent that a Partner claims to be entitled to a reduced rate of, or exemption from, a withholding tax pursuant to an applicable income tax treaty, or otherwise, the Partner shall furnish the General Partner with such information and forms as such Partner may be required to complete where necessary to comply with any and all laws and regulations governing the obligations of withholding tax agents.  Each Partner will fully comply with any reasonable requests for information from the General Partner with regard to any withholding tax.  Each Partner represents and warrants that any information and forms furnished by such Partner pursuant to this Section 5.05(c) shall be true and accurate and agrees to indemnify the Partnership and each of the Partners from any and all damages, costs and expenses resulting from the filing of inaccurate or incomplete information or forms relating to such withholding taxes.
5.06.  Special Allocations and Distributions.  The General Partner is authorized to adjust allocations and distributions under this Agreement to give effect to any fee arrangements with any Partner. 

ARTICLE VI 
 
MANAGEMENT
6.01.  Authority of the General Partner.
(a)    The business and affairs of the Partnership shall be carried on and managed by the General Partner, who shall have full and complete discretion with respect thereto, subject solely to the express limitations contained in this Section 6.01.  
(b)    The General Partner shall devote to the Partnership business such time as it shall determine to be required for the management of the business and affairs of the Partnership.  The General Partner shall have all necessary and appropriate powers to carry out the business purposes of the Partnership set forth in Section 1.03.  
(c)    The General Partner may, from time to time, cause the Partnership to enter into transactions with the General Partner, the Principals, or their respective Affiliates, immediate family members, family trusts or estate planning vehicles, so long as such transactions 

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are on terms no less favorable than those of similarly-situated vertically-integrated owner/operators providing such services through an Affiliate, including, but not limited to, providing leasing, management, construction and development services, and further provided that transactions for the purchase by the Partnership of assets from, the sale of Partnership assets to, or the investment by the Partnership in assets in which any of the foregoing parties owns at least a ten percent (10%) beneficial interest, or which any of the foregoing parties Controls, shall be permitted only to the extent they are permitted by the VAF III Partnership Agreements or approved by the limited partners of the VAF III Partnerships or the advisory committee of the VAF III Partnerships. Notwithstanding the foregoing, neither the General Partner nor any Affiliate thereof is entitled to any acquisition, financing or disposition fee from the Partnership or any entity in which the Partnership owns an interest.
(d)    Subject to the approvals expressly required by this Agreement and the Act, the General Partner shall have the authority, acting alone, to make any decision, sign any document, and otherwise take any action on behalf of the Partnership; and any Person dealing with the Partnership may rely on the authority of the General Partner to take such action unilaterally without further inquiry into the provisions of this Agreement.
(e)    Without limiting the generality of Section 6.01(a), but subject to the approvals expressly required by this Agreement and the Act, the General Partner shall conduct the business and affairs of the Partnership and shall be empowered to make all decisions and take all actions with respect thereto, without the consent of any Partner, including, without limitation, to take or cause to be taken any of the following at the expense and in the name of the Partnership or any Partnership Affiliate, as the case may be:
(i)    to expend the capital and revenues of the Partnership in furtherance of the Partnership's business, including in connection with the acquisition, ownership, financing, leasing, developing and disposition of the Investment, and to make all decisions, give all consents, execute all documents, and exercise all rights of the Partnership or any Partnership Affiliate, as the case may be, in connection therewith;  
(ii)    to negotiate, enter into, make, perform, supervise the performance of, amend or modify, make all decisions, give all consents and exercise all rights of the Partnership under contracts, agreements and other undertakings to which the Partnership or any Partnership Affiliate, as the case may be, is a party, and to do such other acts, as it deems necessary or advisable for the operation, maintenance, management and the conduct of the business of the Partnership or any Partnership Affiliate, as the case may be; 
(iii)    to incur indebtedness, whether secured or unsecured, whether senior or subordinated, including debt which provides for the payment of contingent interest or participation in cash flow and capital proceeds, and to make, issue, accept, endorse and execute promissory notes, mortgages, deeds of trust, assignments, pledge and security agreements (including pledges of Capital Commitments to the Partnership), drafts, bills of exchange and other instruments evidencing or securing any Partnership or Partnership Affiliate indebtedness (collectively referred to as “Security Instruments”) on behalf of the Partnership or any Partnership Affiliate, as the case may be, all without limit as to amount, and to secure the repayment of any such indebtedness by mortgage, pledge, 

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or assignment of, or security interest in, all or any part of the Investments and other assets then owned or thereafter acquired by the Partnership, any Partnership Affiliate.  
(iv)    to refinance, recast, increase, decrease, extend the term of, or otherwise modify on behalf of the Partnership or any Partnership Affiliate, as the case may be (collectively referred to as “Modifications”) any other Partnership or Partnership Affiliate indebtedness and, in connection therewith, to execute any Modifications of any Security Instruments, and/or any other documents pertaining to entering into or modifying any Partnership or Partnership Affiliate indebtedness;
(v)    to lease, manage, develop and otherwise deal with the Investment on such terms as the General Partner shall determine;
(vi)    to sell, exchange or otherwise dispose of the Investment to any Persons on such terms and conditions (including purchase money financing) as the General Partner shall determine; 
(vii)    to prepay, in whole or in part, at any time, any Partnership or Partnership Affiliate indebtedness, and to arrange for the release of the Investment should it have been pledged as collateral for any Partnership or Partnership Affiliate indebtedness;
(viii)    to procure and maintain with responsible companies title insurance, liability insurance, casualty, fire and extended coverage insurance in respect of the Investment, the Partnership, and Partnership Affiliates, and such other insurance as may be available in such amounts and covering such risks as are deemed appropriate by the General Partner;
(ix)    to open, maintain and close bank accounts and to draw checks and other orders for the payment of money; and to credit facilities, including, but not limited to, a credit line to provide the Partnership with working capital;
(x)    to employ such accountants and attorneys and similar professional consultants, necessary or appropriate to carry out the business and affairs of the Partnership and/or Partnership Affiliates, and to pay the fees, expenses, salaries, wages and other compensation of such Persons; 
(xi)    to pay, extend, renew, modify, adjust, waive, settle, submit to arbitration, prosecute, defend or compromise, upon such terms as it may determine and upon such evidence as it may deem sufficient, any obligation, suit, liability, cause of action or claim, including claims for taxes, either in favor of or against the Partnership and/or any Partnership Affiliate;
(xii)    to invest funds of the Partnership and/or Partnership Affiliates which are temporarily not needed for Partnership or such Partnership Affiliate purposes in accordance with Section 8.06 hereof;
(xiii)    to cause the Partnership and/or Partnership Affiliates to comply with all applicable legal requirements and to discharge all of the Partnership’s and/or Partnership Affiliate’s duties, responsibilities and obligations under the agreements to which it is from time to time a party;

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(xiv)    subject to Section 6.06(a), to pay any and all fees and to make any and all expenditures necessary or appropriate in connection with (a) the organization of the Partnership and any Partnership Affiliate, (b) the offering and sale of Partnership Interests, (c) the management of the affairs of the Partnership and Partnership Affiliates and (d) the carrying out of the Partnership’s obligations and responsibilities under this Agreement; and
(xv)    to enter into agreements and contracts with third parties in furtherance of the Partnership’s business, including, but not limited to, the sale, leasing, financing or any other transfer of all or a portion of an investment.
(f)    The General Partner or any Affiliate will not do any act in contravention of this Agreement or any applicable law or regulation.
6.02.  Removal of the General Partner.  
(a)    Limited Partners (not Affiliated with RXR) shall have the right to replace the General Partner following a determination by a court of competent jurisdiction in a final non-appealable judgment that any of the following events has occurred: 
(i)    Fraudulent conduct by the General Partner or the Principal in connection with the performance of their duties to the Partnership; 
(ii)    Intentional misconduct by the General Partner or the Principal in connection with the performance of their duties to the Partnership; 
(iii)    Gross negligence by the General Partner or the Principal in connection with the performance of their duties to the Partnership that shall have a material adverse effect on the Partnership; 
(iv)    Intentional material breach of this Agreement by the General Partner; or
(v)    A Removal Event (as such term is defined in the VAF III Partnership Agreements) of the Fund General Partner as general partner of any of the VAF III Partnerships.  
(b)    Any determination under Section 6.02(a) to replace the General Partner (a “Removal Event”) shall be made no later than one hundred and eighty (180) days after the date on which the Limited Partners shall have been notified of such final non-appealable court determination.    
(c)    In the event that a Removal Event occurs and the General Partner is replaced pursuant to Section 6.02(a), (i) such replaced General Partner shall be entitled to receive all distributions that otherwise would have been distributable to it pursuant to this Agreement as if it had not been removed as the general partner of the Partnership with respect to the Investment and (ii) the Indemnitees (as defined below) shall remain entitled to exculpation and indemnification from the Partnership pursuant to Section 6.03 below with respect to any matter arising prior to such removal.  The replaced General Partner shall have no liability to the Partnership as a general partner in respect of any matter arising after its removal as General Partner.  

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6.03.  Liability and Indemnification.  
(a)    To the fullest extent permitted by law, none of the General Partner or its Affiliates, officers, directors, agents, stockholders, members, employees and partners (other than Limited Partners in their capacity as such), and any other person who serves at the request of the General Partner on behalf of the Partnership as an officer, director, partner (other than Limited Partners in their capacity as such), employee or agent of any other entities who serve in such capacities in furtherance of the Partnership’s  business activities or affairs (collectively, the “Indemnitees”) shall be liable to the Partnership or to any Limited Partner for (i) any act or omission taken in good faith or suffered by the Indemnitees in connection with the conduct of the business or affairs of the Partnership or otherwise in connection with this Agreement or the matters contemplated herein, unless and to the extent that such act or omission resulted from an Indemnitee’s fraud, willful misconduct or gross negligence; provided that nothing herein shall constitute a waiver or limitation of any rights which a Partner or the Partnership may have under applicable United States federal securities laws or other laws and which may not be waived, or (ii) any mistake, negligence, dishonesty or bad faith of any broker, adviser or other agent of the Partnership (that is not an Affiliate of the General Partner) selected, engaged or retained with reasonable care by the General Partner.  To the extent that, at law or in equity, the General Partner has duties (including fiduciary duties) and liabilities relating thereto to the Partnership or to another Partner, the General Partner acting under this Agreement shall not be liable to the Partnership or to any such other Partner for its good faith reliance on the provisions of this Agreement.  The provisions of this Agreement, to the extent that they expand or restrict the duties and liabilities of the General Partner otherwise existing at law or in equity, are agreed by the Partners to modify to that extent such other duties and liabilities of the General Partner (to the extent permitted by applicable law).  The General Partner agrees that the General Partner and its Affiliates, officers, directors, agents, stockholders, members, employees or partners shall not have a right to indemnification for disputes or claims by and between the General Partner and/or its Affiliates, officers, directors, agents, stockholders, members, employees or partners.  The Partnership shall not be required to indemnify the General Partner from and against any successful claims, liabilities, damages, losses, costs and expenses against the General Partner arising out of or in connection with an intentional material breach of this Agreement by the General Partner.
(b)    To the fullest extent permitted by law, each Indemnitee shall be indemnified and held harmless out of the assets held by the General Partner on behalf of the Partnership from and against any and all claims, liabilities, damages, losses, costs and expenses (including amounts paid in satisfaction of judgments, in compromises and settlements, as fines and penalties and legal or other costs and reasonable expenses of investigating or defending against any claim or alleged claim) of any nature whatsoever, known or unknown, liquidated or unliquidated, that are incurred by any Indemnitee and/or to which such Indemnitee may be subject by reason of its activities on behalf of the Partnership or in furtherance of the interest of the Partnership or otherwise arising out of or in connection with the affairs of the Partnership, including the performance by such Indemnitee of any of the General Partner’s responsibilities hereunder or otherwise in connection with the matters contemplated herein; provided, that:  (i) an Indemnitee shall be entitled to indemnification hereunder only to the extent that such Indemnitee’s conduct did not constitute fraud, willful misconduct or gross negligence; (ii) nothing herein shall constitute a waiver or limitation of any rights which a Partner or the Partnership may have under applicable United States federal securities laws or other laws and which may not be waived and (iii) the Partnership’s obligations hereunder shall not apply with respect to (x) economic losses or tax obligations incurred by any Indemnitee as a result of such Indemnitee’s ownership of an Interest 

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or (y) expenses of the Partnership that an Indemnitee has agreed to bear.  Subject to Section 10.02, the satisfaction of any indemnification and any holding harmless pursuant to this Section 6.03 shall be from and limited to Partnership assets, no Limited Partner shall have any obligation to make Capital Contributions to fund its share of any indemnification obligations under this Section 6.03 in excess of such Limited Partner’s unfunded Capital Commitment, and no Partner shall have any personal liability on account thereof.
(c)    Expenses reasonably incurred by an Indemnitee in defense or settlement of any claim that may be subject to a right of indemnification hereunder shall be advanced by the Partnership prior to the final disposition thereof upon receipt of an undertaking by or on behalf of the Indemnitee to repay such amount to the extent that it shall be determined ultimately that such Indemnitee is not entitled to be indemnified hereunder.  No advances shall be made by the Partnership under this Section without the prior written consent of the General Partner; provided, that the Partnership shall not advance funds to the General Partner or its Affiliates for legal expenses or other costs incurred as a result of any legal action or proceeding commenced against the General Partner or its Affiliates by a Majority in Interest of the Limited Partners. In addition, the General Partner hereby agrees that any expenses incurred by an Indemnitee pursuant to Section 6.03(c) of this Agreement shall not be advanced or repaid to such Indemnitee if the expenses incurred are in connection with the defense or settlement of a claim resulting from a dispute between the General Partner and one of its respective Affiliates, officers, directors, agents, stockholders, members, employees or partners.  
(d)    The right of any Indemnitee to the indemnification provided herein shall be cumulative of, and in addition to, any and all rights to which such Indemnitee may otherwise be entitled by contract or as a matter of law or equity and shall extend to such Indemnitee’s successors and assigns.
(e)    Any Person entitled to indemnification from the Partnership hereunder shall first seek recovery under any other indemnity or any insurance policies by which such Person is indemnified or covered, as the case may be, but only to the extent that the indemnitor with respect to such indemnity or the insurer with respect to such insurance policy provides (or acknowledges its obligation to provide) such indemnity or coverage on a timely basis, as the case may be, and, if such Person is other than the General Partner, such Person shall obtain the written consent of the General Partner prior to entering into any compromise or settlement which would result in an obligation of the Partnership to indemnify such Person.  If liabilities arise out of the conduct of the affairs of the Partnership and any other Person for which the Person entitled to indemnification from the Partnership hereunder was then acting in a similar capacity, the amount of the indemnification provided by the Partnership shall be limited to the Partnership’s proportionate share thereof as determined in good faith by the General Partner in light of its fiduciary duties to the Partnership and the Limited Partners.  The General Partner may cause the Partnership, at the Partnership’s expense, to purchase insurance to insure the Indemnitees against liability hereunder, including, without limitation, for a breach or an alleged breach of their responsibilities hereunder.  
6.04.  Limited Partners Shall Not Manage the Partnership.  No Limited Partner, as such, either alone or acting with any other Limited Partners, shall (i)  take any part in the control of the business or affairs of the Partnership, (ii)  have any voice in the management or operation of any Partnership property or business, (iii)  have any approval, voting or consent rights except as otherwise expressly provided in this Agreement, (iv) have any right to remove the General Partner, except as otherwise expressly provided in this Agreement, (v) have the authority or power 

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to act as agent for or on behalf of the Partnership or any other Partner, (vi)  perform any act which would be binding on the Partnership or any other Partner, or (vii)  incur any expenses on behalf of or with respect to the Partnership.  
6.05.  Certain Conflicts of Interest.  Except as expressly restricted by this Agreement with respect to the General Partner and its Affiliates, Partners and their Affiliates may engage in and possess interests in other business ventures, including the ownership, operation, financing and management of other real estate assets, independently or with others (including activities which may compete with the Partnership and/or Partnership Affiliates), and such activity shall not breach any Partner’s fiduciary duty to the Partnership and the other Partners.  Neither the Partnership nor any Partner shall by virtue of this Agreement have any right, title or interest in such ventures.  
6.06.  Expenses. 
(a)    In addition to all other expenses contemplated to be paid by the Partnership hereunder, the Partnership shall pay all costs and expenses of the Partnership and/or the General Partner, including, without limitation, (i) fees and expenses incurred in connection with the organization of the Partnership, (ii) transfer and other taxes, duties and costs related to the acquisition, holding, disposing of or qualification for sale of the Investment, (iii) reasonable expenses for liability insurance, including directors and officers liability insurance, (iv) other legal, accounting, auditing, appraisal, administrative and accounting expenses, fees for outside services, custodial fees, (v) reasonable insurance and litigation expenses, (vi) expenses incurred in connection with annual or special meetings of the Partnership and periodic reports to the Partners and (vii) taxes and other governmental fees and charges payable by the Partnership.  The Partnership shall not pay, and the General Partner shall be responsible for, (w) any placement agent fees payable to a placement agent retained by the General Partner in connection with the admission of any Limited Partner; (x) the compensation of any employees of the Partnership, the General Partner or their Affiliates who render services to the Partnership or the General Partner; provided that the General Partner or its Affiliates can charge the Partnership market rates for professional services (such as legal (including without limitation in connection with leasing services), accounting, tax preparation, architectural/engineering and other services) rendered by any employees of the Partnership, the General Partner or their Affiliates that would otherwise be charged to the Partnership by unaffiliated third party providers and (y) any overhead costs of the General Partner. Nothing in this Section 6.06(a) shall limit any transaction permitted under Section 6.01(c).
(b)    Neither the General Partner nor any Affiliate thereof is entitled to any acquisition, financing or disposition fee from the Partnership.  
6.07.  Code Elections.  The General Partner may, in its sole discretion, make (and if made, may revoke) such elections under the Code or any successor thereto and under any state or local tax law which the General Partner shall determine to be in the best interests of the Partnership and its Partners.  Notwithstanding anything herein to the contrary, neither the Partnership nor the General Partner shall make an election (i.e., check-the-box) under Section 301.7701-3 of the Regulations for the Partnership to be classified for U.S. federal income tax purposes as an association taxable as a corporation and so long as the Partnership has a single Limited Partner, it is intended that the Partnership be treated as a disregarded entity (and not as a partnership) for U.S. federal income tax purposes.

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ARTICLE VII 
 
MEETINGS
7.01.  Meetings.  An annual meeting of the Partners shall be held at such time and place as the General Partner shall determine and the General Partner may determine to hold any such meetings telephonically. Other meetings of the Partners may be called for any purpose or purposes at any time by the General Partner. 

ARTICLE VIII 
 
BOOKS, RECORDS AND BANK ACCOUNTS
8.01.  Fiscal Year.  The  fiscal year of the Partnership (the “Fiscal Year”) shall end on December 31 of each year unless otherwise required under the Code.
8.02.  Accounting Basis; Records of Partnership Transactions.  During the term of the Partnership and for a period of not less than six years after the end of the Partnership term, the General Partner shall cause the Partnership to maintain true and correct books and records of the Partnership, including financial and accounting records, tax-related records and audited financial statements, on the accrual basis, showing all costs, expenditures, receipts, assets, liabilities, profits and losses and all other records necessary to reporting the Partnership’s business and affairs and sufficient to record the allocation of profits, losses, and distributions as provided for herein. The cost of maintaining the Partnership’s books and records shall be an expense of the Partnership.
8.03.  Partnership Records.
(a)    The Partnership will maintain at its principal place of business, or at some other location chosen by the General Partner, the following records (“Records”), and the General Partner shall use its commercially reasonable efforts to maintain such records in compliance with the Investment Advisers Act of 1940 and all other applicable law:
(i)    current list of the full name and last known mailing address of each Partner set forth in alphabetical order together with the commitments and contributions and the share of profits and losses of each Partner or information from which such contribution and/or share can be readily derived;
(ii)    a copy of the Certificate of Limited Partnership and all amendments thereto or restatements thereof, together with executed copies of any powers of attorney pursuant to which any certificate or amendment has been executed;
(iii)    a copy of this Agreement, any amendments thereto and any restatements thereof; and 
(iv)    a copy of the Partnership’s federal, state and local income tax or information returns and reports, if any, for the three most recent fiscal years.
(b)    Each Partner and his designated representatives shall be permitted access to the Records of the Partnership at the principal office of the Partnership during reasonable 

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business hours upon five (5) days’ prior written notice and shall have the right to make copies thereof at their own expense.
8.04.  Preparation of Tax Returns; Tax Audits.  The General Partner shall furnish to each Partner (and former Partner) IRS Schedule K-1 (or so long as the Partnership is treated as a disregarded entity for U.S. federal income tax purposes, similar information as would be reported on IRS Schedule K-1) for each taxable year of the Partnership as soon as reasonably practicable after the end of such taxable year of the Partnership.  The General Partner shall have exclusive authority in connection with the preparation of the Partnership tax returns and in selecting an accounting firm in connection with the preparation of such returns; provided that for accounting and auditing purposes such firm shall be a nationally recognized accounting firm, and for tax purposes such firm shall be a nationally recognized firm. The cost of the preparation of all such reports shall be an expense of the Partnership.
8.05.  Annual/Quarterly Reports.  Within one hundred twenty (120) days after the end of each Fiscal Year, the General Partner shall cause to be prepared and sent to the Partners unaudited financial statements of the Partnership for the Fiscal Year then ended prepared in accordance with the accounting principles generally accepted in the United States of America (“GAAP”), consistently applied, including:  (i) a balance sheet of the Partnership; (ii) a statement of the Profits and Losses; (iii) a statement of changes in each Partner’s Capital Account; and (iv) a statement of cash flows. Unless the General Partner causes, at the cost of the Partnership, audited financial statements of the Partnership to be prepared and delivered to each Partner with respect to a particular Fiscal Year, at any time following such Fiscal Year, each Partner shall have the right to request by written notice to the General Partner audited financial statements of the Partnership for such Fiscal Year then ended to be prepared in accordance with GAAP and delivered to such partner at the sole expense of the requesting Partner.  The General Partner shall provide each Partner, within one hundred and twenty (120) days after the end of such Fiscal Year, a copy of the audited, consolidated financial statements with respect to the Property which are delivered to the senior mortgage lender with respect to the Property.  Within forty five (45) days after the end of each fiscal quarter the General Partner shall prepare and send to the Partners a quarterly status report, including unaudited financial statements of the Partnership for the prior fiscal quarter, and a narrative description of the activities of, and material developments affecting, the Partnership and the Investment relating to such quarter. Each Partner shall have the right to obtain other information reasonably requested from the General Partner and at such requesting Partner’s expense.  The General Partner hereby agrees to include disclosure in the financial statements describing all material transactions entered into by the Partnership with the General Partner, the Principals, or their respective Affiliates, immediate family members, family trusts or estate planning vehicles.  To the extent any Principal or Affiliate of the Partnership grants any personal guarantee, the General Partner shall use reasonable best efforts to ensure that such personal guarantee is referenced in the footnotes to the quarterly financial statements of the Partnership.    
8.06.  Bank Accounts; Temporary Investments.  All receipts, funds and income of the Partnership shall be deposited in the name of the Partnership in such bank account or accounts of a commercial bank, savings and loan association or other financial institution as the General Partner from time to time shall determine.  Withdrawals from said banks shall be made on the signature of such Persons designated by the General Partner, and there shall be no commingling of the moneys and funds of the Partnership with moneys and funds of any other entity or Person.  Notwithstanding the foregoing, the General Partner on behalf of the Partnership shall be authorized to invest Partnership funds temporarily not needed for Partnership purposes in United States 

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Treasury obligations, money market funds, certificates of deposit, bankers’ acceptances, or any other similar money market instruments or funds and such other similar money market instruments or funds and such other short term investments and highly rated preferred instruments as the General Partners shall select.
8.07.  Tax Matters Partner; Partnership Representative; Tax Audits.
(a)    The General Partner shall at all times constitute, and have full powers and responsibilities as, the “tax matters partner” of the Partnership for purposes of Section 6231(a)(7) of the Code so long as such designation is applicable and shall thereafter be designated as “partnership representative” of the Partnership for purposes of Section 6223(a) of the Code as amended by Section 1101 of the Budget Act. The General Partner is specifically directed and authorized to take whatever steps the General Partner deems necessary or desirable to perfect any such designation, including filing any forms or documents with the Internal Revenue Service and taking such other action as may from time to time be required under Regulations and, upon request of the General Partner, the Limited Partners shall execute any forms or statements required in connection therewith.
(b)    In the event the Partnership or a Partnership Affiliate shall be the subject of an income tax audit by any U.S. federal, state or local authority, to the extent the Partnership or such Partnership Affiliate is treated as an entity for purposes of such audit, including administrative settlement and judicial review, the General Partner shall be authorized to act for, and their decision shall be final and binding upon, the Partnership and each Partner thereof. If the Partnership receives a notice of final partnership adjustment from the Internal Revenue Service, the General Partner (in its capacity as “tax matters partner” or “partnership representative”, as applicable) may, as determined in its good faith discretion and with respect to any applicable year, (i) elect to apply the provisions of Section 1101 of the Budget Act with respect to any imputed underpayment arising from such adjustment and/or (ii) cause the Partnership to (x) elect the application of Section 6226 of the Code, as amended by Section 1101 of the Budget Act, with respect to any imputed underpayment arising from such adjustment, and (y) furnish to each Partner, and former Partner (as applicable), a statement of such Partner’s share (based on the year to which such adjustment relates) of any adjustment to income, gain, loss, deduction or credit (as determined in the notice of final partnership adjustment).  All expenses incurred in connection with any such audit, investigation, settlement or review shall be borne by the Partnership or the Partnership Affiliate, as appropriate.  Each Limited Partner agrees that such Limited Partner will not treat any Partnership item inconsistently on such Limited Partner’s individual income tax return with the treatment of the item on the Partnership’s tax return and that such Limited Partner will not independently act with respect to tax audits or tax litigation affecting the Partnership, unless previously authorized to do so in writing by the General Partner, which authorization may be withheld in the sole discretion of the General Partner.
8.08.  Filings and Reports.  Each Partner agrees to cooperate with the other Partners and the Partnership in the filing of any disclosure, schedule, report, certificate or other instrument required to be filed by or on behalf of the Partnership, or any partnership, corporation or joint venture through which the Partnership carries out its purposes, under the laws of the United States, any state or political subdivision thereof or any foreign nation or political subdivision thereof.  In connection therewith, each Partner agrees to provide the General Partner and/or the Partnership with all information required to complete such filings.

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8.09.  Other Information.  From time to time, upon the request of the General Partner, each Limited Partner shall provide such information as is necessary or desirable in order for the General Partner to determine whether any subsidiary entity (the “Subsidiary”) is a “domestically controlled qualified investment entity” within the meaning of Section 897(h)(4)(B) of the Code including a representation, made to the best of the Limited Partner’s knowledge, regarding the percentage of the Limited Partner’s indirect interest in the Subsidiary that would be treated as held by “foreign persons” for purposes of determining the Subsidiary’s “foreign ownership percentage” within the meaning of Section 897(h)(4)(C) of the Code.

ARTICLE IX 
 
ASSIGNABILITY OF PARTNERSHIP INTERESTS; SALE OF THE INVESTMENT
9.01.  Restrictions on Transfer or Assignment of Partnership Interests.
(a)    Except as otherwise provided in subsection (c) below, no Partner may sell, transfer, assign, pledge, hypothecate or otherwise dispose of (collectively “Transfers”) all or any part of its Partnership Interest (whether voluntarily, involuntarily or by operation of law and including through any financial instrument or contract the value of which is determined in whole or in part by reference to the Partnership (including the amount of Partnership distributions, the value of Partnership assets or the results of Partnership operations)) unless all of the following conditions shall have been satisfied:
(i)    the General Partner consents in writing to such Transfer, which consent shall not be unreasonably withheld, conditioned or delayed by the General Partner;
(ii)    any Partner that plans to Transfer its Partnership Interest must, prior to such Transfer, deliver to the General Partner, if so requested, an opinion of counsel or certificate (which counsel and opinion or certificate shall be reasonably acceptable to the General Partner), that the Transfer (i) will not cause the Partnership to terminate for federal income tax purposes; (ii) will not cause the Partnership to be treated as a “publicly traded partnership” within the meaning of Section 7704 of the Code; (iii) will not violate the registration requirements of the United States Securities Act of 1933, as amended from time to time, the United States Securities Exchange Act of 1934, as amended from time to time, or of any applicable state securities laws, rules or regulations; and (iv) will not require the Partnership to register as an investment company under the United States Investment Company Act of 1940, as amended from time to time (the “Company Act”);
(iii)    the instrument conveying such Partnership Interest is in form and substance satisfactory in all respects to the General Partner and is delivered to and accepted by such General Partner for recordation on the books of the Partnership; 
(iv)    with respect to Transfers by the Limited Partners, such Transfer shall first be subject to the right of first offer in favor of the General Partner or its designee, which right of first offer is more particularly described on Annex B attached hereto; and

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(v)    such Transfer shall not be in violation of, or result in any default under, any agreement or other document affecting the Investments, and any Transfer that is in such violation shall be void ab initio.
Notwithstanding the foregoing and subject to Section 5.05(b), unless a transferee is admitted as a substitute Partner to the Partnership in accordance with the provisions of subsection (b) set forth below, the transferor shall not be relieved of any liability hereunder, and the transferee shall not be entitled to any of the rights granted to a Partner hereunder, other than the right to receive all or part of the share of the income, gain, losses or cash distributions to which his transferor would otherwise be entitled.  
(b)    A transferee of the Partnership Interest of a Partner, or any portion thereof, shall become a substitute Partner entitled to all the rights, and subject to all of the obligations and restrictions, of the Partner (subject to Section 5.05(b)) if, and only if:
(i)    the transferor gives the transferee such right;
(ii)    the General Partner, in its sole and absolute discretion, consents to such substitution, which consent shall not be unreasonably withheld, conditioned or delayed by the General Partner;
(iii)    the transferee is a “qualified purchaser” as defined in Section 2(a)(51) of the Company Act, and the rules and regulations promulgated thereunder,  unless the General Partner, in its sole and absolute discretion, consents to the substitution of such transferee that is not a “qualified purchaser”;
(iv)    the transferee is an “accredited investor” as defined in Regulation D promulgated under the Securities Act, unless the General Partner, in its sole and absolute discretion, consents to the substitution of such transferee that is not an “accredited investor”;
(v)    the transferee pays to the Partnership all costs and expenses incurred in connection with such substitution; and
(vi)    the transferee executes and delivers such instruments, including without limitation a subscription agreement, in form and substance satisfactory to the General Partner, as it may deem necessary or desirable to effect such substitution and to confirm the agreement of the transferee to be bound by all of the terms and provisions of this Agreement, and the restrictions against transfer set forth in this Article IX.
(c)    Notwithstanding the provisions of this Section 9.01, without the consent of a Majority in Interest of the Limited Partners (not Affiliated with RXR), the General Partner may not Transfer all or any part of its Partnership Interest.
(d)    Upon the Transfer of all or less than all of a Partnership Interest by any Partner as provided in this Section 9.01, the income, loss, gain, deduction and credit attributable to the interest so transferred shall be allocated between the transferor and transferee based upon the number of days during the applicable taxable year of the Partnership that the interest so transferred was held by each of them, without regard to the results of Partnership activities during the period in which each was the holder or such other method permitted under Section 706 of the 

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Code and selected by the General Partner.  The Partnership and the General Partner shall be entitled to treat the record owner of any Partnership Interest as the absolute owner thereof, and shall incur no liability for distributions of cash or other property or allocations of income, gain, loss, deduction or credit made in good faith to such owner until such time as a written assignment of such Partnership Interest has been received and accepted by the General Partner and recorded on the books of the Partnership.  Any Transfer of a Partnership Interest or an indirect Interest in contravention of any of the provisions of this Article IX or any provision of any contract or agreement to which the Partnership is a party shall be void and ineffective and shall not be binding upon or recognized by the Partnership.
(e)    Notwithstanding anything in this Agreement to the contrary, in no event shall the Partnership have more than 100 partners for purposes of the “publicly-traded partnership” regulations under Treasury Regulation Section 1.7704-1(h) and any Transfer in violation of this Section 9.01(e) shall be void ab initio.
9.02.  Events of Withdrawal of a Partner. In the Event of Withdrawal of any Partner (the “Withdrawing Partner”), subject to Section 10.01, the legal representative of the Withdrawing Partner shall have such power as the Withdrawing Partner possessed to constitute a successor as an assignee of his Partnership Interest and to join with such assignee in making application to substitute such assignee as a Partner.  Such legal representative shall succeed to the rights of the Withdrawing Partner to receive distributions from the Partnership and allocations of income, gain, loss, deduction and credit; provided, however, that such legal representative shall not have the right to become a substitute Partner in the place of the Withdrawing Partner unless the conditions of Section 9.01(b) hereof are first satisfied.
9.03.  Sale of the Investment.  In the event that the VAF III Partnerships elect to sell, transfer or otherwise convey all or any portion of their interests in the Investment, the Partnership (i) in the event all of the VAF III Partnerships elect to sell, transfer or otherwise convey their entire combined interest in the Investment to any Person, shall also be required to sell, transfer or otherwise convey its entire interest in the Investment to such Person or (ii) in the event that the VAF III Partnerships elect to sell, transfer or otherwise convey less than all of its interest in the Investment to another Person, the Partnership shall be required to sell, transfer or otherwise convey its pro rata portion of its interest in the Investment to such Person. 

ARTICLE X 
 
DISSOLUTION AND TERMINATION
10.01.  Events of Dissolution.
(a)    The Partnership shall be dissolved upon the earliest to occur of the following (each an “Event of Dissolution”):
(i)    the sale by the Partnership of all or substantially all of its assets (unless the General Partner shall elect to continue the existence of the Partnership);
(ii)    an Event of Withdrawal shall occur with respect to the General Partner; or
(iii)    upon the election of all Partners.

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Upon the occurrence of an Event of Dissolution specified in Section 10.01(a)(iii), then, to the extent permissible under applicable federal and state tax law, the vote of a Majority in Interest of the Limited Partners (not Affiliated with RXR), taken within ninety (90) days after the occurrence of such event is sufficient to continue the life of the Partnership.  In the event that a Majority in Interest of the Limited Partners not Affiliated with the General Partner, so elect to continue the Partnership, the business of the Partnership shall be continued in a reconstituted form as a successor limited partnership if necessary with a substitute general partner chosen by a Majority in Interest of the Limited Partners remaining, upon the terms of this Agreement, and the interest of the Withdrawing Partner shall be governed by Section 9.02.
(b)    Following the dissolution of the Partnership, the General Partner shall liquidate the assets of the Partnership as promptly as shall be practicable, but in an orderly and commercially reasonable manner.  The proceeds of such liquidation shall be applied in the following order of priority:
(i)    first, to the payment of debts and liabilities of the Partnership and the costs and expenses of the dissolution and liquidation; 
(ii)    then, to the establishment of any reserves that the General Partner may deem reasonably necessary to satisfy any contingent liabilities of the Partnership; and
(iii)    then, to the Partners in accordance with Section 5.01.
10.02.  Additional Give Back Obligations
(a)    Notwithstanding anything else contained in this Agreement, if an indemnity obligation or other liability arises (such as an indemnity obligation arising after realization of the Investment, the proceeds of which have already been distributed) and the amount of the Reserves, if any, with respect to such obligation or liability is less than the amount of such obligation or liability (a “Continuing Liability”), the General Partner may require the Partners to make a contribution to the Partnership at any time or from time to time, whether before or after the dissolution and termination of the Partnership pursuant to this Article X or, subject to Section 9.02, before or after such Partner’s withdrawal from the Partnership, of all or any portion of the amount of the distributions previously made by the Partnership to such Partner; provided that:
(i)    no Partner shall be required to contribute any amount that was distributed to such Partner more than two (2) years prior to such time (except that, if at the end of such two (2) year period the General Partner reasonably believes that a Continuing Liability exists or may arise that may require the return of such distributions in the following year, the General Partner may so notify the Partners at such time and the obligation of the Partners to contribute pursuant to this Section 10.02 in respect of any Continuing Liability referred to in the notice shall survive beyond such two (2) year period until the earlier of satisfaction of such obligation and three (3) years after the date of the relevant distribution);
(ii)    no Partner shall be required to contribute any amount which, together with all amounts previously contributed pursuant to this Section 10.02 would exceed the lesser of (x) the total amount of distributions previously received by such Partner (or the predecessor in interest to such Partner), and (y) twenty-five percent (25%) of the 

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Capital Commitment of such Partner (or the predecessor in interest to such Partner) pursuant to this Agreement; and
(iii)    the Limited Partners will only be required to make a Capital Contribution pursuant to this Section 10.02 if the General Partner concurrently makes its share of such payment as determined pursuant to paragraph (b) of this Section 10.02.
(b)    If the Continuing Liability arises, then each Partner (including the General Partner) that has received distributions in connection with the Investment will make a Capital Contribution to the Partnership in such amounts as shall result in each Partner retaining cumulative distributions from the Partnership (net of any returns of distributions under this Section 10.02) equal to the cumulative amount that would have been distributed to such Partner had the amount of distributions been, at the time of such distribution, reduced by the amount of such Continuing Liability, as equitably determined by the General Partner; and thereafter, or in any other circumstances, the amount required to be contributed by each Partner under this Section 10.02 shall be in proportion to its Commitments; provided, however, that such amount shall not exceed the amount set forth in Section 10.02(a)(ii).
(c)    Upon any determination (at any time and from time to time) by the General Partner that a Continuing Liability will be or has been incurred for which a Capital Contribution will be required pursuant to this Section 10.02, the General Partner will promptly provide written notification thereof to each Partner.  Such notification shall include a reasonable description of such Continuing Liability, the amount of the required contribution by each Partner and the date by which contribution or payment must be made (which date shall be at least 15 Business Days from and including the date of delivery of the notification).  Prior to the contribution deadline, each Partner will deliver to the General Partner (or the Person or Persons specified by the General Partner) the amount of the required contribution, provided, however, that such amount shall not exceed the amount set forth in Section 10.02(a)(ii).  If a Partner makes a Capital Contribution pursuant to this Section 10.02 with respect to a distribution previously received by the Partner (or predecessor to such Partner), (i) the distribution will be treated as if it had not been made, and (ii) the contribution will not be deemed a Capital Contribution for purposes of the calculation of such Partner’s unfunded Capital Commitment.
(d)    The provisions of this Section 10.02 shall be in addition to and not affect the obligations of the Limited Partners under Section 17-607 of the Act or any other provision of applicable law.  Nothing in this Section 10.02 is intended to expand the rights of an Indemnitee to indemnification or contribution under this Agreement.

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ARTICLE XI 
 
INTENTIONALLY OMITTED

ARTICLE XII 
 
MISCELLANEOUS
12.01.  Notices.  Any and all notices or demands permitted or required to be made under this Agreement shall be in writing, signed by the Partner giving such notice or demand and shall be delivered (i) personally, (ii) by overnight courier, (iii) by registered or certified mail, return receipt requested, (iv) by facsimile transmission or (v) by electronic communication (i.e., email), to the Person required to receive such notice.  Notices directed to a Partner shall be delivered to his address as set forth in the books and records of the Partnership, or at such other address as may be supplied by written notice given in conformity with the terms of this Section 12.01.  All such notices or demands shall be deemed delivered, as applicable:
(a)    on the date of the personal delivery or receipt of the facsimile transmission;
(b)    on the date of the signed receipt for certified or registered mail; 
(c)    on the next business day for overnight mail; or
(d)    in the case of electronic communication, at the time when it becomes capable of being retrieved by the addressee at an electronic address designated by the addressee.  An electronic communication is presumed to be capable of being retrieved by the addressee when it reaches the addressee’s electronic address.
12.02.  Successors and Assigns.  Subject to the restrictions on Transfers set forth herein, each and every provision hereof shall be binding upon and shall inure to the benefit of the Partners, their respective successors, successors-in-title, heirs and assigns, and each and every successor-in-interest to any Partner, whether such successor acquires such interest by way of gift, purchase, foreclosure, or by any other method, shall hold such interest subject to all of the terms and provisions of this Agreement.
12.03.  Power of Attorney.  
(a)    Each Limited Partner irrevocably makes, constitutes and appoints the General Partner, as long as it is acting in such capacity, his true and lawful attorney in fact, in its name, place and stead and for its use and benefit, to make, execute, acknowledge, deliver, record and file:
(i)    any amendments to or restatements of this Agreement as may be required by applicable law or permitted pursuant to the terms of this Agreement;
(ii)    all papers which may be deemed necessary or desirable to effect the dissolution and termination of the Partnership;

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(iii)    any and all amendments to this Agreement necessary to admit additional or substitute Partners or to reflect adjustments in interests, provided such substitutions, additions or adjustments are in accordance with the terms of this Agreement;
(iv)    any amendments to or restatements of the Certificate of Limited Partnership, or any business certificate, fictitious name certificate, or other instrument or document of any kind, or any amendments thereto, necessary or desirable to accomplish the business, purposes and objectives of the Partnership or required by applicable Federal, state or local law; and
(v)    any other document or instrument which the General Partner deems necessary or desirable to carry out the purposes of the Partnership;
it being expressly intended by each of the Partners that the foregoing power of attorney is coupled with an interest and irrevocable.
(b)    The power of attorney set forth above shall survive any permitted Transfer by a Partner of all or part of his Partnership Interest.
(c)    The General Partner shall notify each Limited Partner without delay following the exercise of the power of attorney in its name pursuant to this Section 12.03 and shall provide a copy of any agreement, instrument or other document that is signed by the General Partner pursuant to the power of attorney.  The power of attorney granted to the General Partner by each Limited Partner shall be automatically terminated and shall cease to have effect if the General Partner files a petition in bankruptcy, is dissolved or is no longer the General Partner of the Partnership, in each case upon the occurrence of any such event. 
12.04.  Amendments. 
(a)    Subject to Section 12.04(b), amendments to this Agreement may be made by the General Partner with the consent of a Majority in Interest of the Limited Partners; provided that any amendment to, or which has the effect of amending, Section 1.03, Article IV, Article V or Section 6.06 shall be made by the General Partner with the consent of all the Limited Partners not Affiliated with RXR and any other Section that requires the consent of a specified percentage in Interest of the Limited Partners not Affiliated with RXR that is greater than 50% shall be made by the General Partner with the consent of such specified percentage in Interest of the Limited Partners not Affiliated with RXR.  
(b)    Notwithstanding the provisions of Section 12.04(a) hereof, amendments may be made to this Agreement by the General Partner, without the consent or approval of the Limited Partners: 
(i)    to add to the duties or obligations of the General Partner or surrender any right or power granted to the General Partner herein; 
(ii)    to cure any ambiguity, to correct or supplement any provision herein which may be inconsistent with law or any other provision herein or to make any other provisions with respect to matters or questions arising under this Agreement which will not be inconsistent with law or the provisions of this Agreement; 

33

11585382.7

(iii)    to delete or add any provision of this Agreement required to be so deleted or added by any Investment lender, Federal agency or by a state “Blue Sky” commission or such similar agency, which addition or deletion is deemed by such Person to be for the benefit or protection of such Investment lender’s interest in a Investment loan, or of the Partners, as applicable;
(iv)    to accommodate investments in the Partnership by employee benefit plans and other tax-exempt entities through group trusts or other investment vehicles, 
(v)    to effect changes to comply with any applicable law, including the Investment Company Act of 1940, as amended, the Investment Advisers Act of 1940, as amended, and ERISA, 
(vi)    to prevent the Partnership from being treated as a publicly traded partnership under Section 7704 of the Code,
(vii)    to accommodate the creation of special purpose investment vehicles and facilitate the status of any such special purpose investment vehicle as a “real estate investment trust” for U.S. federal income tax purposes; 
(viii)    to amend the provisions of this Agreement relating to the allocations of Profits or Losses or items thereof (including, without limitation, non-taxable receipts or non-deductible expenditures) or credits among the Partners in a manner having the least possible effect on such provisions, if the Partnership is advised at any time by the Partnership’s independent certified public accountants or legal counsel that in their opinion such amendments are necessary to give such provisions a basis on which such allocations would be respected for Federal income tax purposes, or if necessary so as to cause the Capital Accounts of the Partners at the time of liquidation of the Partnership to be in proportion to the amounts which would be distributed if liquidating proceeds available to be distributed to Partners were distributed in accordance with Section 5.01 rather than Section 10.01 (any such amendment to be made by the General Partner in reliance upon the advice of the accountants or legal counsel described above shall be deemed to be made in compliance with the fiduciary obligation of the General Partner to the Partnership and the Partners, and no such amendment shall give rise to any claim or cause of action by any Partner); and
(ix)    to reflect the admission, withdrawal, or substitution of Partners. 
(c)    The power of attorney granted pursuant to Section 12.03 may be used by the General Partner to execute on behalf of the Partners any document evidencing or effecting an amendment adopted in accordance with the terms of this Section 12.04.
12.05.  No Waiver.  The failure of the General Partner to insist upon strict performance of a covenant hereunder or of any obligation hereunder, irrespective of the length of time for which such failure continues, shall not be a waiver of the General Partner’s right to demand strict compliance in the future.  No consent or waiver, express or implied, to or of any breach or default in the performance of any obligation hereunder, shall constitute a consent or waiver to or of any other breach or default in the performance of the same or any other obligation hereunder.

34

11585382.7

12.06.  Entire Agreement/Side Letters/Commercial Activity.  This Agreement, together with the subscription agreement of each of the Limited Partners, constitutes the full and complete agreement of the parties hereto with respect to the subject matter hereof; provided that the General Partner shall have the right, on its own behalf or on behalf of the Partnership or its Affiliates, to enter into a side letter or similar agreement with a Limited Partner that has the effect of establishing rights under, or altering or supplementing the terms hereof, with respect to such Limited Partner or any subscription agreement.  The parties agree that any terms contained in a side letter or similar agreement to or with a Limited Partner shall govern with respect to such Limited Partner notwithstanding the provisions of this Agreement or any subscription agreement.  Without limiting the generality of the foregoing, the General Partner and its Affiliates may, in their sole discretion, agree to or impose fees or performance-based compensation on a Limited Partner that are different from those described herein, and may enter into other agreements with a Limited Partner that may affect the Limited Partner’s economic or legal rights and obligations with respect to the Limited Partner’s investment in the Partnership, each as may be agreed to with the Limited Partner, without notice to other Limited Partners.  Each Partner hereby acknowledges that this Agreement constitutes “commercial activity” (as such term is defined in 28 U.S.C. § 1603(d) and used in 28 U.S.C. §1605(a)(2)) that will have a direct effect in the United States, and in no way shall such actions be construed as governmental or public acts.  
12.07.  Captions.  Titles or captions of Sections contained in this Agreement are inserted only as a matter of convenience and for reference, and in no way define, limit, extend or describe the scope of this Agreement or the intent of any provision hereof.
12.08.  Counterparts.  This Agreement may be executed in several counterparts, all of which together shall for all purposes constitute one Agreement, binding on all the Partners and the Partnership notwithstanding that all the Partners and the Partnership have not signed the same counterpart.
12.09.  Interpretation.
(a)    The singular includes the plural and the plural includes the singular.
(b)    The word “or” is not exclusive and the word “including” is not limiting.
(c)    References to a law include any rule or regulation issued under the law and any amendment to the law, rule or regulation.
(d)    References to an Article, Section, Exhibit, Annex or Schedule mean an Article, Section, Exhibit, Annex or Schedule contained in or attached to this Agreement.
(e)    References to any decision-making authority of the General Partner in this Agreement (including the words “discretion”, “sole discretion” and “absolute discretion”) shall, unless expressly provided to the contrary, be deemed to authorize it to make such decisions in its sole and absolute discretion. 
(f)    The words “affiliated” and “unaffiliated” have meaning consistent with the defined term “Affiliate.”

35

11585382.7

(g)    The caption headings in this Agreement are for convenience and reference only and do not define, modify or describe the scope or intent of any of the terms of this Agreement.
(h)    This Agreement will be interpreted and enforced in accordance with its provisions and without the aid of any custom or rule of law requiring or suggesting construction against the party drafting or causing the drafting of the provisions in question.
12.10.  Applicable Law.  This Agreement and the rights and obligations of the parties hereunder shall be governed by and interpreted, construed and enforced in accordance with the internal laws of the State of Delaware.
12.11.  No Third Party Rights.  Nothing in this Agreement shall be deemed to create any right in any Person not a party hereto (other than the permitted successors and assigns of a party hereto) and this Agreement shall not be construed in any respect to be a contract in whole or in part for the benefit of any third party (except as aforesaid).
12.12.  Confidentiality.  
(a)    To the extent permitted by applicable law and unless otherwise approved in writing by the General Partner, each Limited Partner agrees to keep confidential, and not to make any use of (other than for purposes reasonably related to its Interests or for purposes of filing such Limited Partner’s tax returns or for other routine matters required by law) nor to disclose to any Person, any information or matter relating to the Partnership and its affairs and any information or matter related to any Investment (other than disclosure to such Limited Partner’s Affiliates and their respective owners, directors, officers, employees, agents, advisors or representatives (each such Person being hereinafter referred to as an “Authorized Representative”), except that a Person who is not subject to the direction or control of such Limited Partner shall not constitute an Authorized Representative unless such Person shall agree for the benefit of the Partnership and the General Partner to be bound by a confidentiality undertaking on substantially the same terms as set forth in this Section 12.12); provided that such Limited Partner and its Authorized Representatives may make such disclosure to the extent that (i) the information being disclosed is publicly known at the time of any proposed disclosure by such Limited Partner or Authorized Representative, (ii) the information subsequently becomes publicly known through no act or omission of such Limited Partner or Authorized Representative, (iii) the information otherwise is or becomes legally known to such Limited Partner other than through disclosure by the Partnership or the General Partner, (iv) such disclosure, in the opinion of legal counsel (which may be inside counsel) of such Limited Partner or Authorized Representative, is required by law, rule or regulation or (v) such disclosure is in connection with any litigation or other proceeding between any Limited Partner and the General Partner; provided further that each Limited Partner will be permitted, after notice to the General Partner, to correct any false or misleading information which may become public concerning such Limited Partner’s relationship to the Partnership, the General Partner or any Person in which the Partnership holds, or contemplates acquiring, any Investment.  Prior to making any disclosure required by law, each Limited Partner shall notify the General Partner of such disclosure and advise the General Partner as to the opinion referred to above.  Prior to any disclosure to any Authorized Representative, each Limited Partner shall advise such Authorized Representative of the obligations set forth in this Section 12.12(a), inform such Authorized Representative of the confidential nature of such information and direct such Authorized Representative to keep all such information in the strictest confidence and to use such information 

36

11585382.7

only for purposes relating to such Limited Partner’s Interests.  Notwithstanding anything in the foregoing, if required by applicable law, rule or regulation, a Limited Partner may publicly disclose this Agreement and/or its subscription agreement.
(b)    Notwithstanding anything in the foregoing or anything else contained in this Agreement to the contrary, except as reasonably necessary to comply with applicable securities laws, each Partner (and any employee, representative or other agent thereof) may disclose to any and all persons, without limitation of any kind, the tax treatment and tax structure of the offering and ownership of a Partnership Interest and any Partnership transaction and all materials of any kind (including opinions and other tax analyses) that are provided to such Partner relating to such tax treatment and tax structure.  For this purpose, “tax structure” means any facts relevant to the U.S. federal or state income tax treatment of the offering and ownership of Partnership Interest and any Partnership transaction, and does not include information relating to the identity of the Partnership and its Affiliates.
12.13.  Consent.  Wherever in this Agreement the consent of the Limited Partners is required, unless specifically stated otherwise, such phrase shall mean the consent of a majority of the limited partnership interests held by all Limited Partners other than Limited Partners that are Affiliates of RXR.

[SIGNATURE PAGES FOLLOW]

37

11585382.7

IN WITNESS WHEREOF, the parties hereto hereby execute this Agreement as of the date first written above.

	
				
	 
	GENERAL PARTNER:

	 
	 

	 
	RXR VAF III 1285 GP LP,

	 
	a Delaware limited partnership

	 
	 
	 

	 
	By: RXR VAF III GP LLC,

	 
	its general partner

	 
	 
	 

	 
	By:
	/s/ Jason Barnett

	 
	 
	Name:
	Jason Barnett

	 
	 
	Title:
	Authorized Person

[Signature Page to LPA of RXR VAF III 1285 Co-Investor Parallel LP]

11585382.7

	
				
	 
	LIMITED PARTNER:

	 
	 

	 
	1285 INVESTOR NT-NSR, LLC, 

	 
	a Delaware limited liability company

	 
	 
	 

	 
	By:
	/s/ Ronald J. Lieberman

	 
	 
	Name:
	Ronald J. Lieberman

	 
	 
	Title:
	Executive Vice President, General Counsel & Secretary

[Signature Page to LPA of RXR VAF III 1285 Co-Investor Parallel LP]

11585382.7Exhibit 4.1

 

PASS THROUGH TRUST AGREEMENT

 

Dated as of May 29, 2015

 

between

 

LATAM AIRLINES GROUP S.A.

 

and

 

WILMINGTON TRUST COMPANY,

 

as Trustee

 

     

     

    

 

TABLE OF CONTENTS

 

	 	 	PAGE
	 	Article I.	 
	 	DEFINITIONS	 
	 	 	 
	Section 1.01	Definitions	2
	Section 1.02	Compliance Certificates and Opinions	12
	Section 1.03	Form of Documents Delivered to Trustee	13
	Section 1.04	Directions of Certificateholders	13
	 	 	 
	 	Article II.	 
	 	ORIGINAL ISSUANCE OF CERTIFICATES;	 
	 	ACQUISITION OF TRUST PROPERTY	 
	 	 	 
	Section 2.01	Amount Unlimited; Issuable in Series	14
	Section 2.02	Acquisition of Equipment Notes	17
	Section 2.03	Acceptance by Trustee	19
	Section 2.04	Limitation of Powers	19
	 	 	 
	 	Article III.	 
	 	THE CERTIFICATES	 
	 	 	 
	Section 3.01	Form, Denomination and Execution of Certificates	19
	Section 3.02	Authentication of Certificates	20
	Section 3.03	Temporary Certificates	20
	Section 3.04	Transfer and Exchange	21
	Section 3.05	Book-Entry and Definitive Certificates	22
	Section 3.06	Mutilated, Destroyed, Lost or Stolen Certificates	23
	Section 3.07	Persons Deemed Owners of Certificates	24
	Section 3.08	Cancellation	24
	Section 3.09	Limitation of Liability for Payments	24
	Section 3.10	CUSIP Numbers	25
	 	 	 
	 	Article IV.	 
	 	DISTRIBUTIONS; STATEMENTS TO CERTIFICATEHOLDERS	 
	 	 	 
	Section 4.01	Certificate Account and Special Payments Account	25
	Section 4.02	Distributions from Certificate Account and Special Payments Account	26
	Section 4.03	Statements to Certificateholders	27
	Section 4.04	Investment of Special Payment Moneys	28

 

    	 	i 	 

     

    

 

	 	Article V.	 
	 	THE COMPANY	 
	 	 	 
	Section 5.01	Maintenance of Corporate Existence	28
	Section 5.02	Consolidation, Merger, Etc.	29
	 	 	 
	 	Article VI.	 
	 	DEFAULT	 
	 	 	 
	Section 6.01	Indenture Events of Default and Triggering Events	29
	Section 6.02	Incidents of Sale of Equipment Notes	31
	Section 6.03	Judicial Proceedings Instituted by Trustee; Trustee May Bring Suit	31
	Section 6.04	Control by Certificateholders	32
	Section 6.05	Waiver of Past Defaults	33
	Section 6.06	Right of Certificateholders to Receive Payments Not to Be Impaired	33
	Section 6.07	Certificateholders May Not Bring Suit Except Under Certain Conditions	33
	Section 6.08	Remedies Cumulative	34
	Section 6.09	Discontinuance of Proceedings	34
	Section 6.10	Undertaking for Costs	35
	 	 	 
	 	Article VII.	 
	 	THE TRUSTEE	 
	 	 	 
	Section 7.01	Certain Duties and Responsibilities	35
	Section 7.02	Notice of Defaults	35
	Section 7.03	Certain Rights of Trustee	36
	Section 7.04	Not Responsible for Recitals or Issuance of Certificates	37
	Section 7.05	May Hold Certificates	37
	Section 7.06	Money Held in Trust	37
	Section 7.07	Compensation and Reimbursement	37
	Section 7.08	Corporate Trustee Required; Eligibility	38
	Section 7.09	Resignation and Removal; Appointment of Successor	39
	Section 7.10	Acceptance of Appointment by Successor	41
	Section 7.11	Merger, Conversion, Consolidation or Succession to Business	41
	Section 7.12	Maintenance of Agencies	41
	Section 7.13	Money for Certificate Payments to Be Held in Trust	43
	Section 7.14	Registration of Equipment Notes in Trustee’s Name	43
	Section 7.15	Representations and Warranties of Trustee	43
	Section 7.16	Withholding Taxes; Information Reporting	44
	Section 7.17	Trustee’s Liens	45
	Section 7.18	Preferential Collection of Claims	45
	Section 7.19	Capacity in Which Acting	45
	 	 	 
	 	Article VIII.	 
	 	CERTIFICATEHOLDERS’ LISTS AND REPORTS BY TRUSTEE	 
	 	 	 
	Section 8.01	The Company to Furnish Trustee with Names and Addresses of Certificateholders	45
	Section 8.02	Preservation of Information; Communications to Certificateholders	46
	Section 8.03	Reports by Trustee	46
	Section 8.04	Reports by the Company	46

 

    	 	ii 	 

     

    

 

	 	Article IX.	 
	 	SUPPLEMENTAL AGREEMENTS	 
	 	 	 
	Section 9.01	Supplemental Agreements Without Consent of Certificateholders	47
	Section 9.02	Supplemental Agreements with Consent of Certificateholders	49
	Section 9.03	Documents Affecting Immunity or Indemnity	50
	Section 9.04	Execution of Supplemental Agreements	50
	Section 9.05	Effect of Supplemental Agreements	50
	Section 9.06	Conformity with Trust Indenture Act	50
	Section 9.07	Reference in Certificates to Supplemental Agreements	50
	 	 	 
	 	Article X.	 
	 	AMENDMENTS TO INDENTURES AND OTHER NOTE DOCUMENTS	 
	 	 	 
	Section 10.01	Amendments and Supplements to Indentures and Other Note Documents	50
	 	 	 
	 	Article XI.	 
	 	TERMINATION OF TRUSTS	 
	 	 	 
	Section 11.01	Termination of the Trusts	51
	 	 	 
	 	Article XII.	 
	 	MISCELLANEOUS PROVISIONS	 
	 	 	 
	Section 12.01	Limitation on Rights of Certificateholders	52
	Section 12.02	Certificates Nonassessable and Fully Paid	53
	Section 12.03	Registration of Equipment Notes in Name of Subordination Agent	53
	Section 12.04	Notices	53
	Section 12.05	Governing Law	54
	Section 12.06	Severability of Provisions	54
	Section 12.07	Trust Indenture Act Controls	54
	Section 12.08	Agent for Service of Process; Submission to Jurisdiction	55
	Section 12.09	Effect of Headings and Table of Contents	55
	Section 12.10	Successors and Assigns	55
	Section 12.11	Benefits of Agreement	55
	Section 12.12	Legal Holidays	55
	Section 12.13	Counterparts	56
	Section 12.14	Communication by Certificateholders with Other Certificateholders	56
	Section 12.15	Normal Commercial Relations	56
	Section 12.16	No Recourse Against Others	56
	Section 12.17	Qualification of Agreement	56

  

    	 	iii 	 

     

    

  

Reconciliation and tie between LATAM Pass Through
Trust Agreement, dated as of May 29, 2015 and the Trust Indenture Act of 1939. This reconciliation does not constitute part of
the Pass Through Trust Agreement.

 

	Trust Indenture Act of 1939 Section	 	Pass Through Trust Agreement Section

 

	310(a)(1)	 	7.08
	(a)(2)	 	7.08
	312(a)	 	7.12; 8.01; 8.02
	313(a)	 	8.03

	313(b)	 	8.03

	314(a)(1)-(3)	 	8.04(a)-(c)
	(a)(4)	 	8.04(d)
	(c)(1)	 	1.02
	(c)(2)	 	1.02
	(d)(1)	 	1.02; 7.13; 11.01
	(d)(2)	 	1.02; 7.13; 11.01
	(d)(3)	 	1.02; 2.01
	(e)	 	1.02
	315(b)	 	7.02
	315(c)	 	7.01(b)
	316(a)(last sentence)	.1.04(c)
	(a)(1)(A)	 	6.04
	(a)(1)(B)	 	6.05
	(b)	 	6.06
	(c)	 	1.04(d)
	317(a)(1)	 	6.03
	(b)	 	7.13
	318(a)	 	12.07

 

    	 	iv 	 

     

    

  

PASS THROUGH TRUST AGREEMENT

 

This PASS THROUGH TRUST AGREEMENT, dated as
of May 29, 2015 (the “Basic Agreement”), between LATAM Airlines Group S.A., an open stock corporation (sociedad
anónima abierta) organized under the laws of the Republic of Chile (the “Company”), and Wilmington
Trust Company, a Delaware trust company, as Trustee, is made with respect to the formation from time to time of separate LATAM
Pass Through Trusts, and the issuance from time to time of separate series of Pass Through Certificates representing fractional
undivided interests in the respective Trusts.

 

WITNESSETH:

 

WHEREAS, from time to time, the Company and
the Trustee may enter into one or more Trust Supplements (this and certain other defined terms used herein are defined in Section
1.01) pursuant to which the Trustee shall declare the creation of a separate Trust for the benefit of the Holders of the series
of Certificates to be issued in respect of such Trust, and the initial Holders of the Certificates of such series, as the grantors
of such Trust, by their respective acceptances of the Certificates of such series, shall join in the creation of such Trust with
the Trustee;

 

WHEREAS, all Certificates to be issued in respect
of each separate Trust will be issued as a separate series pursuant to this Agreement, will evidence fractional undivided interests
in such Trust and will have no rights, benefits or interests in respect of any other separate Trust or the property held therein,
subject, however, to the provisions of any Intercreditor Agreement to which one or more Trusts may be a party and to any provisions
to the contrary in any applicable Trust Supplement;

 

WHEREAS, from time to time, pursuant to the
terms and conditions of this Agreement with respect to each separate Trust formed hereunder, the Trustee on behalf of such Trust
shall purchase one or more issues of Equipment Notes, or notes issued by a separate trust or other entity secured by Equipment
Notes, having the identical interest rate as, and final maturity dates not later than the final Regular Distribution Date of, the
series of Certificates issued in respect of such Trust and, subject to the terms of any related Intercreditor Agreement and to
any terms to the contrary in any applicable Trust Supplement, shall hold such Equipment Notes in trust for the benefit of the Certificateholders
of such Trust; and

 

WHEREAS, to facilitate the sale of Equipment
Notes to, and the purchase of Equipment Notes by, the Trustee on behalf of each Trust created from time to time pursuant to this
Agreement, the Company as the “issuer,” as such term is defined in and solely for purposes of the Securities Act, of
the Certificates to be issued in respect of each Trust and as the “obligor,” as such term is defined in and solely
for purposes of the Trust Indenture Act, has duly authorized the execution and delivery of this Basic Agreement and is undertaking
to perform certain administrative and ministerial duties hereunder and is also undertaking to pay the fees and expenses of the
Trustee;

 

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

 

    	 	1	 

     

    

  

Article
I.

DEFINITIONS

 

Section 1.01        Definitions.
For all purposes of this Basic Agreement, except as otherwise expressly provided or unless the context otherwise requires:

 

(1)        the
terms used herein that are defined in this Article I have the meanings assigned to them in this Article I, and include the plural
as well as the singular;

 

(2)        all
other terms used herein that are defined in the Trust Indenture Act, either directly or by reference therein, or by the rules promulgated
under the Trust Indenture Act, have the meanings assigned to them therein;

 

(3)        all
references in this Basic Agreement to designated “Articles”, “Sections”, “Subsections” and
other subdivisions are to the designated Articles, Sections, Subsections and other subdivisions of this Basic Agreement;

 

(4)        the
words “herein”, “hereof” and “hereunder” and other words of similar import refer to this Basic
Agreement as a whole and not to any particular Article, Section, Subsection or other subdivision;

 

(5)        unless
the context otherwise requires, whenever any of the words “including”, “include” or “includes”
are used herein, it shall be deemed to be followed by the phrase “without limitation”; and

 

(6)        the
term “this Agreement” (as distinguished from “this Basic Agreement”) refers, unless the context otherwise
requires, to this Basic Agreement as supplemented by the Trust Supplement creating a particular Trust and establishing the series
of Certificates issued or to be issued in respect thereof, with reference to such Trust and such series of Certificates, as this
Basic Agreement as so supplemented may be further supplemented with respect to such Trust and such series of Certificates.

 

Act: Has the meaning, with
respect to any Certificateholder, specified in Section 1.04(a).

 

Affiliate: Means, with respect
to any specified Person, any other Person directly or indirectly controlling or controlled by or under direct or indirect common
control with such Person. For the purposes of this definition, “control”, when used with respect to any specified Person,
means the power, directly or indirectly, to direct the management and policies of such Person, whether through the ownership of
voting securities or by contract or otherwise, and the terms “controlling” and “controlled”
have meanings correlative to the foregoing.

 

Agent for Service: Has the
meaning specified in Section 12.08.

 

Agreement: Has the meaning
specified in Section 1.01(6).

 

    	 	2	 

     

    

  

Aircraft: Means one or more
aircraft, including engines therefor, owned by or leased to the Company and securing one or more Equipment Notes.

 

Authorized Agent: Means, with
respect to the Certificates of any series, any Paying Agent or Registrar for the Certificates of such series.

 

Avoidable Tax: Has the meaning
specified in Section 7.09(e).

 

Basic Agreement: Means this
Pass Through Trust Agreement, as the same may from time to time be supplemented, amended or modified, but does not include any
Trust Supplement.

 

Book-Entry Certificates: Means,
with respect to the Certificates of any series, a beneficial interest in the Certificates of such series ownership, the transfer
of which shall be made through book entries as described in Section 3.05.

 

Business Day: Means, with respect
to the Certificates of any series, any day other than a Saturday, a Sunday or a day on which commercial banks are required or authorized
to close in New York, New York, Santiago, Chile, or, so long as any Certificate of such series is outstanding, the city and state
in which the Trustee or any related Loan Trustee maintains its Corporate Trust Office or receives and disburses funds.

 

Certificate: Means any one
of the certificates executed and authenticated by the Trustee, substantially in the form specified in the relevant Trust Supplement.

 

Certificate Account: Means,
with respect to the Certificates of any series, the account or accounts created and maintained for such series pursuant to Section
4.01(a) and the related Trust Supplement.

 

Certificateholder or Holder:
Means, with respect to the Certificates of any series, a Person in whose name a Certificate of such series is registered in the
Register for Certificates of such series.

 

Certificate Owner: Means, with
respect to the Certificates of any series, for purposes of Section 3.05, a Person who owns a Book-Entry Certificate of such series.

 

Clearing Agency: Means an organization
registered as a “clearing agency” pursuant to Section 17A of the Exchange Act.

 

Clearing Agency Participant:
Means a broker, dealer, bank, other financial institution or other Person for whom from time to time a Clearing Agency effects,
directly or indirectly, book-entry transfers and pledges of securities deposited with the Clearing Agency.

 

Company: Means LATAM Airlines
Group S.A., an open stock corporation (sociedad anónima abierta) organized under the laws of the Republic of Chile,
or its successor in interest pursuant to Section 5.02.

 

    	 	3	 

     

    

  

Controlling Party: Means, with
respect to the Certificates of any series, the Person entitled to act as such pursuant to the terms of the related Intercreditor
Agreement.

 

Corporate Trust Office: Means,
with respect to the Trustee or any Loan Trustee, the office of such trustee in the city at which at any particular time its corporate
trust business shall be principally administered.

 

Cut-off Date: Means, with respect
to the Certificates of any series, the date designated as such in the Trust Supplement establishing such series.

 

Definitive Certificates: Has
the meaning, with respect to the Certificates of any series, specified in Section 3.05(a).

 

Direction: Has the meaning
specified in Section 1.04(a).

 

Distribution Date: Means any
Regular Distribution Date, Special Distribution Date or Initial Regular Distribution Date.

 

Equipment Note: Means, with
respect to any Trust, any one of the notes, certificates or instruments issued pursuant to any Indenture and described as “Equipment
Notes” in, or on a schedule attached to, the Trust Supplement in respect of such Trust and to be held by the Trustee
as part of such Trust, including any Equipment Note (as so defined) issued under the applicable Indenture in replacement thereof
or substitution therefor.

 

ERISA: Means the United States
Employee Retirement Income Security Act of 1974, as amended from time to time, or any successor federal statute.

 

Escrow Account: Has the meaning,
with respect to any Trust, specified in Section 2.02(b).

 

Escrowed Funds: Has the meaning,
with respect to any Trust, specified in Section 2.02(b).

 

Event of Default: Means, in
respect of any Trust, an Indenture Event of Default under any Indenture pursuant to which Equipment Notes held by such Trust were
issued and such other event as may be designated under the related Trust Supplement as an “Event of Default”.

 

Exchange Act: Means the United
States Securities Exchange Act of 1934, as amended.

 

Fractional Undivided Interest:
Means the fractional undivided interest in a Trust that is evidenced by a Certificate relating to such Trust.

 

Guarantee: Means, with respect
to the Certificates of any series, a guarantee by any Guarantor of the obligations of the Company or Owner, as applicable, under
any Equipment Notes or any Leases related to Equipment Notes to be acquired and held in the Trust as to which the Certificates
of such series represent fractional undivided interests.

 

    	 	4	 

     

    

  

Guarantor: Means any obligor
under a Guarantee.

 

Holder: Has the meaning specified
in the definition of “Certificateholder or Holder”.

 

IFRS: Means the International
Financial Reporting Standards as issued by the International Accounting Standards Board.

 

Indenture: Means, with respect
to any Trust, each of the one or more separate trust indenture and security agreements or trust indenture and mortgages or similar
documents described in, or on a schedule attached to, the Trust Supplement and an indenture having substantially the same terms
and conditions which relates to a Substitute Aircraft, as each such indenture may be amended or supplemented in accordance with
its respective terms; and “Indentures” means all of such agreements.

 

Indenture Event of Default:
Means, with respect to any Indenture, any Event of Default (as such term is defined in such Indenture).

 

Initial Regular Distribution Date:
Means, with respect to the Certificates of any series, the first Regular Distribution Date on which a Scheduled Payment is to be
made.

 

Intercreditor Agreement: Means
(a) any agreement by and among the Trustee, as trustee with respect to one or more Trusts, one or more Liquidity Providers, if
applicable, and a Subordination Agent providing, among other things, for the distribution of payments made in respect of Equipment
Notes held by such Trusts, or (b) such other agreement or agreements designated as an “Intercreditor Agreement” in
the Trust Supplement relating to any Trust.

 

Issuance Date: Means, with
respect to the Certificates of any series, the date of the issuance of such Certificates.

 

Lease: Means any lease between
an Owner, as the lessor, and the Company, as the lessee, referred to in the related Indenture, as such lease may be amended, supplemented
or otherwise modified in accordance with its terms; and “Leases” means all such Leases.

 

Letter of Representations:
Means, with respect to the Certificates of any series, a letter executed by the Trustee and addressed to the initial Clearing Agency
substantially in the form attached as an exhibit to the related Trust Supplement, as such letter may be amended, modified or supplemented,
or any successor letter thereto.

 

    	 	5	 

     

    

  

Liquidity Facility: Means,
with respect to the Certificates of any series or any Equipment Notes, (a) any revolving credit agreement, letter of credit, bank
guarantee, insurance policy, surety bond or financial guaranty or any other type of agreement or arrangement for the provision
of insurance, a guarantee or other credit enhancement or liquidity support relating to the Certificates of such series between
a Liquidity Provider and a Subordination Agent or one or more other Persons, as amended, replaced, supplemented or otherwise modified
from time to time in accordance with its terms and, if applicable, the terms of any Intercreditor Agreement, or (b) such other
agreement or agreements designated as a “Liquidity Facility” in the Trust Supplement relating to any Trust.

 

Liquidity Provider: Means,
with respect to the Certificates of any series, a bank, insurance company, financial institution or other Person that agrees to
provide a Liquidity Facility for the benefit of the holders of Certificates of such series.

 

Loan Trustee: Means, with respect
to any Equipment Note or the Indenture applicable thereto, the bank, trust company or other financial institution designated as
loan or indenture trustee under such Indenture, and any successor to such Loan Trustee as such trustee; and “Loan Trustees”
means all of the Loan Trustees under the Indentures.

 

Note Documents: Means, with
respect to the Certificates of any series, the Equipment Notes with respect to such Certificates and, with respect to such Equipment
Notes, the related Indenture, the related Participation Agreement, the Note Purchase Agreement, and, if the related Aircraft is
leased to the Company, the related Lease and the related Purchase Agreement Assignment (as defined in the related Lease), if any,
and, if any Guarantor has guaranteed any obligations of the Company or any Owner under any such Equipment Notes or Leases, the
Guarantee.

 

Note Purchase Agreement: Means,
with respect to the Certificates of any series, any note purchase, refunding, participation or similar agreement providing for,
among other things, the purchase of Equipment Notes by the Trustee on behalf of the relevant Trust; and “Note Purchase
Agreements” means all such agreements.

 

Officer’s Certificate:
Means a certificate signed, (a) in the case of the Company (or any successor thereto pursuant to Section 5.02), by the Chairman
or Vice Chairman of the Board of Directors, the President, any Executive Vice President, any Senior Vice President, any Vice President
or the Treasurer of the Company or (b) in the case of the Trustee or an Owner or a Loan Trustee, a Responsible Officer of the Trustee
or such Owner or such Loan Trustee, as the case may be.

 

Opinion of Counsel: Means a
written opinion of legal counsel who (a) in the case of counsel for the Company (or any successor thereto pursuant to Section 5.02)
may be (i) a senior attorney of the Company one of whose principal duties is furnishing advice as to legal matters, (ii) Clifford
Chance US LLP or (iii) such other counsel designated by the Company and reasonably acceptable to the Trustee and (b) in the case
of any Owner or any Loan Trustee, such counsel as they may designate, whether or not such counsel is an employee of any of them,
and who shall be reasonably acceptable to the Trustee.

 

Outstanding: When used with
respect to Certificates of any series, means, as of the date of determination, all Certificates of such series theretofore authenticated
and delivered under this Agreement, except:

 

    	 	6	 

     

    

  

(i)         Certificates
of such series theretofore cancelled by the Registrar or delivered to the Trustee or the Registrar for cancellation;

 

(ii)        all
of the Certificates of such series if money in the full amount required to make the final distribution with respect to such series
pursuant to Section 11.01 hereof has been theretofore deposited with the Trustee in trust for the Holders of the Certificates of
such series as provided in Section 4.01, pending distribution of such money to such Certificateholders pursuant to payment of such
final distribution payment; and

 

(iii)        Certificates
of such series in exchange for or in lieu of which other Certificates of such series have been authenticated and delivered pursuant
to this Agreement.

 

Owner: Means, with respect
to any Equipment Note, the owner of the Aircraft securing such Equipment Note, if such owner is not the Company, and any permitted
successor or assign of such Owner; and “Owners” at any time of determination means all of the Owners, if any,
referred to in the Indentures.

 

Paying Agent: Means, with respect
to the Certificates of any series, the paying agent maintained and appointed for the Certificates of such series pursuant to Section
7.12.

 

Permitted Investments: Means
obligations of the United States of America or agencies or instrumentalities thereof for the payment of which the full faith and
credit of the United States of America is pledged, maturing in not more than 60 days after the date of acquisition thereof or such
lesser time as is required for the distribution of any Special Payments on a Special Distribution Date.

 

Person: Means any person, including
any individual, corporation, limited liability company, partnership, joint venture, association, joint-stock company, trust, trustee,
unincorporated organization, or government or any agency or political subdivision thereof.

 

Pool Balance: Means, with respect
to the Certificates of any series as of any date, except to the extent otherwise provided in the applicable Trust Supplement, (i)
the original aggregate face amount of the Certificates of such series less (ii) the aggregate amount of all distributions made
as of such date in respect of such Certificates other than distributions made in respect of interest or premium or reimbursement
of any costs or expenses incurred in connection therewith. The Pool Balance as of any Regular Distribution Date or Special Distribution
Date with respect to such series shall be computed after giving effect to the payment of principal, if any, on the Equipment Notes
or other Trust Property held in the Trust and the distribution thereof to be made on such date.

 

    	 	7	 

     

    

  

Pool Factor: Means, with respect
to any series of Certificates as of any date, except to the extent otherwise provided in the applicable Trust Supplement, the quotient
(rounded to the seventh decimal place, with 0.00000005 being rounded upward) computed by dividing (i) the Pool Balance of such
series as of such date by (ii) the original aggregate face amount of the Certificates of such series. The Pool Factor as of any
Regular Distribution Date or Special Distribution Date with respect to such series shall be computed after giving effect to the
payment of principal, if any, on the Equipment Notes or other Trust Property held in the Trust relating to such series and the
distribution thereof to be made on such date.

 

Postponed Notes: Means, with
respect to any Trust or the related series of Certificates, the Equipment Notes to be held in such Trust as to which a Postponement
Notice shall have been delivered pursuant to Section 2.02(b).

 

Postponement Notice: Means,
with respect to any Trust or the related series of Certificates, an Officer’s Certificate of the Company (i) requesting that
the Trustee temporarily postpone purchase of the related Equipment Notes to a date later than the Issuance Date of such series
of Certificates, (ii) identifying the amount of the purchase price of each such Equipment Note and the aggregate purchase price
for all such Equipment Notes, (iii) setting forth the reasons for such postponement and (iv) with respect to each such Equipment
Note, either (a) setting or resetting a new Transfer Date (which shall be on or prior to the applicable Cut-off Date) for payment
by the Trustee of such purchase price and issuance of the related Equipment Note (subject to subsequent change from time to time
in accordance with the relevant Note Purchase Agreement), or (b) indicating that such new Transfer Date (which shall be on or prior
to the applicable Cut-off Date) will be set by subsequent written notice not less than one Business Day prior to such new Transfer
Date (subject to subsequent change from time to time in accordance with the relevant Note Purchase Agreement).

 

Potential Purchaser: Has the
meaning, with respect to any Certificateholder, specified in Section 6.01(d).

 

Purchasing Certificateholder:
Has the meaning, with respect to any Certificateholder, specified in Section 6.01(d).

 

Rating Agency: Has the meaning
specified in the Intercreditor Agreement.

 

Record Date: Means, with respect
to any Trust or the related series of Certificates, (i) for Scheduled Payments to be distributed on any Regular Distribution Date,
other than the final distribution with respect to such series, the 15th day (whether or not a Business Day) preceding such Regular
Distribution Date, or such other date as shall be specified for such series in the applicable Trust Supplement, and (ii) for Special
Payments to be distributed on any Special Distribution Date, other than the final distribution with respect to such series, the
15th day (whether or not a Business Day) preceding such Special Distribution Date, or such other date as shall be specified for
such series in the applicable Trust Supplement.

 

Register: Has the meaning,
with respect to the Certificates of any series, specified in Section 3.04.

 

    	 	8	 

     

    

  

Registrar: Has the meaning,
with respect to the Certificates of any series, specified in Section 3.04 and includes the registrar appointed pursuant to Sections
3.04 and 7.12.

 

Regular Distribution Date:
Means, with respect to distributions of Scheduled Payments in respect of any series of Certificates, each date designated as such
in this Agreement, until payment of all the Scheduled Payments to be made under the Equipment Notes held in the Trust have been
made or until such Equipment Notes have been redeemed or otherwise prepaid in full.

 

Request: Means a request by
the Company setting forth the subject matter of the request accompanied by an Officer’s Certificate and an Opinion of Counsel
as provided in Section 1.02 of this Basic Agreement.

 

Responsible Officer: Means,
with respect to any Trustee, any Loan Trustee and any Owner that is a trust, any officer in the Corporate Trust Department or similar
department of the Trustee, such Loan Trustee or such Owner, as the case may be, or any other officer customarily performing functions
similar to those performed by the persons who at the time shall be such officers or to whom any corporate trust matter is referred
because of his knowledge of and familiarity with a particular subject, and with respect to any other Owner, the president, any
vice president, manager, member, director or other officer of such Owner.

 

Responsible Party: Means, with
respect to the Certificates of any series, the Company or the other Person designated as such in the related Trust Supplement.

 

Scheduled Payment: Means, with
respect to any Equipment Note, except to the extent otherwise provided in the applicable Trust Supplement, (i) any payment of principal
or interest on such Equipment Note (other than any such payment which is not in fact received by the Trustee or the applicable
Subordination Agent within five days after the date on which such payment is scheduled to be made) or (ii) any distribution in
respect of principal or interest on such Equipment Note to the Holders of the Certificates of any series with funds drawn under
the Liquidity Facility for such series (other than any such payment which is not in fact received by the Trustee or the applicable
Subordination Agent within five days after the date upon which payment is scheduled to be made), which payment in the case of clause
(i) or clause (ii) represents an installment of principal on such Equipment Note at the stated maturity of such installment, or
the payment of regularly scheduled interest accrued on the unpaid principal amount of such Equipment Note, or both; provided, however,
that any payment of principal, premium, if any, or interest resulting from the redemption or purchase of any Equipment Note shall
not constitute a Scheduled Payment.

 

SEC: Means the United States
Securities and Exchange Commission, as from time to time constituted or created under the Exchange Act or, if at any time after
the execution of this instrument such Commission is not existing and performing the duties now assigned to it, then the body performing
such duties on such date.

 

    	 	9	 

     

    

  

Securities Act: Means the United
States Securities Act of 1933, as amended.

 

Selling Certificateholder:
Has the meaning, with respect to any Certificateholder, specified in Section 6.01(d).

 

Special Distribution Date:
Means, with respect to the Certificates of any series, each date on which a Special Payment is to be distributed as specified in
this Agreement; provided that, if any such day is not a Business Day, the related distribution shall be made on the next succeeding
Business Day.

 

Special Payment: Means, except
to the extent otherwise provided in the applicable Trust Supplement, (i) any payment (other than a Scheduled Payment) in respect
of, or any proceeds of, any Equipment Note held in a Trust or the Collateral or Trust Indenture Estate, as the case may be (in
each case, as defined in each Indenture relating to such Trust), (ii) the amounts required to be distributed pursuant to the last
paragraph of Section 2.02(b), or (iii) the amounts required to be distributed pursuant to the penultimate paragraph of Section
2.02(b).

 

Special Payments Account: Means,
with respect to the Certificates of any series, the account or accounts created and maintained for such series pursuant to Section
4.01(b) and the related Trust Supplement.

 

Specified Investments: Means,
with respect to any Trust, unless otherwise specified in the related Trust Supplement, (i) obligations of the United States Government
or agencies thereof, or obligations guaranteed by the United States Government, (ii) open market commercial paper of any corporation
incorporated under the laws of the United States of America or any State thereof rated at least P-2 or its equivalent by Moody’s
Investors Service, Inc. or at least A-2 or its equivalent by Standard & Poor’s Ratings Services, a Standard & Poor’s
Financial Services LLC business (including the Trustee if such conditions are met), (iii) certificates of deposit issued by commercial
banks organized under the laws of the United States or of any political subdivision thereof having a combined capital and surplus
in excess of $500,000,000 which banks or their holding companies have a rating of A or its equivalent by Moody’s Investors
Service, Inc. or A2 or its equivalent by Standard & Poor’s Ratings Services, a Standard & Poor’s Financial
Services LLC business (including the Trustee if such conditions are met); provided, however, that the aggregate amount at any one
time so invested in certificates of deposit issued by any one bank shall not exceed 5% of such bank’s capital and surplus,
(iv) U.S. dollar denominated offshore certificates of deposit issued by, or offshore time deposits with, any commercial bank described
in clause (iii) above or any subsidiary thereof, and (v) repurchase agreements with any financial institution having combined capital
and surplus of at least $500,000,000 (including the Trustee if such conditions are met) with any of the obligations described in
clauses (i) through (iv) as collateral; provided further that if all of the above investments are unavailable, the entire amounts
to be invested may be used to purchase federal funds from an entity described in clause (iii) above; and provided further that
no investment shall be eligible as a “Specified Investment” unless the final maturity or date of return of such
investment is on or before the Special Distribution Date next following the Cut-off Date for such Trust by at least 15 days. The
Trustee is hereby authorized, in making or disposing of any investment described herein, to deal with itself (in its individual
capacity) or with any one or more of its Affiliates, whether it or such Affiliate is acting as an agent of the Trustee or for any
third person or dealing as principal for its own account.

 

    	 	10	 

     

    

  

Subordination Agent: Has the
meaning, with respect to the Certificates of any series, specified therefor in the relevant Intercreditor Agreement.

 

Substitute Aircraft: Means,
with respect to any Trust, any Aircraft of a type specified in this Agreement and, at the election of the Company, substituted
prior to the applicable Cut-off Date, if any, pursuant to the terms of this Agreement.

 

SVS: Means the Chilean Securities
Commission (Superintendencia de Valores y Seguros).

 

Transfer Date: Has the meaning,
with respect to the Certificates of any series, assigned to that term or any of the terms “Delivery Date”, “Funding
Date” or “Closing Date” in any relevant Note Purchase Agreement, and in any event refers to any such
date as it may be changed from time to time in accordance with the terms of such Note Purchase Agreement.

 

Triggering Event: Has the meaning,
with respect to the Certificates of any series, specified therefor in the relevant Intercreditor Agreement.

 

Trust: Means, with respect
to the Certificates of any series, the separate trust created under this Agreement.

 

Trust Indenture Act: Means,
with respect to any particular Trust, the United States Trust Indenture Act of 1939, as amended and in force at the date as of
which the related Trust Supplement was executed.

 

Trust Property: Means, with
respect to any Trust, except to the extent otherwise provided in the applicable Trust Supplement, (i) subject to any related Intercreditor
Agreement, the Equipment Notes held as the property of such Trust, all monies at any time paid thereon and all monies due and to
become due thereunder, (ii) debt instruments issued by the Company in accordance with the first paragraph of Section 2.02(b), (iii)
funds from time to time deposited in the related Escrow Account, the related Certificate Account and the related Special Payments
Account and, subject to any related Intercreditor Agreement, any proceeds from the sale by the Trustee pursuant to Article VI hereof
of any Equipment Note referred to in clause (i) above, (iv) all rights of such Trust and the Trustee, on behalf of the Trust, under
any Intercreditor Agreement or Liquidity Facility, if applicable, including, without limitation, all rights to receive all monies
and other property payable thereunder, and (v) all monies or other property receivable under any Intercreditor Agreement or Liquidity
Facility, if applicable, for such Trust.

 

    	 	11	 

     

    

  

Trust Supplement: Means an
agreement supplemental hereto pursuant to which (i) a separate Trust is created for the benefit of the Holders of the Certificates
of a series, (ii) the issuance of the Certificates of such series representing fractional undivided interests in such Trust is
authorized and (iii) the terms of the Certificates of such series are established, as such agreement may from time to time be supplemented,
amended or otherwise modified.

 

Trustee: Means, with respect
to any particular Trust, the institution executing this Agreement as the Trustee, or its successor in interest, and any successor
or other trustee appointed as provided herein (it being understood that the same institution need not act as the Trustee in respect
of all of the Trusts created pursuant to this Basic Agreement and the Trust Supplements), in each case, not in its individual capacity
but solely as trustee under this Agreement.

 

Trustee’s Liens: Has the
meaning specified in Section 7.17.

 

Section 1.02        Compliance
Certificates and Opinions. Upon any application or request (except with respect to matters set forth in Article II) by the
Company, any Owner or any Loan Trustee to the Trustee to take any action under any provision of this Basic Agreement or, in respect
of the Certificates of any series, this Agreement, the Company, such Owner or such Loan Trustee, as the case may be, shall furnish
to the Trustee (i) an Officer’s Certificate stating that, in the opinion of the signer or signers, all conditions precedent,
if any, provided for in this Basic Agreement or this Agreement relating to the proposed action have been complied with and (ii)
an Opinion of Counsel stating that in the opinion of such counsel all such conditions precedent, if any, have been complied with,
except that in the case of any such application or request as to which the furnishing of such documents is specifically required
by any provision of this Basic Agreement or this Agreement relating to such particular application or request, no additional certificate
or opinion need be furnished.

 

Every certificate or opinion with respect to
compliance with a condition or covenant provided for in this Basic Agreement or, in respect of the Certificates of any series,
this Agreement (other than a certificate provided pursuant to Section 8.04(d)) or any Trust Supplement shall include:

 

(1)        a
statement that each individual signing such certificate or each firm or individual signing such opinion has read such covenant
or condition and the definitions in this Basic Agreement or this Agreement relating thereto;

 

(2)        a
brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained
in such certificate or opinion are based;

 

(3)        a
statement that, in the opinion of each such individual or firm, as applicable, he, she or it, as applicable, has made such examination
or investigation as is necessary to enable him, her or it, as applicable, to express an informed opinion as to whether or not such
covenant or condition has been complied with; and

 

(4)        a
statement as to whether, in the opinion of each such individual or firm, as applicable, such condition or covenant has been complied
with.

 

    	 	12	 

     

    

  

Section 1.03        Form
of Documents Delivered to Trustee. In any case where several matters are required to be certified by, or covered by an opinion
of, any specified Person, it is not necessary that all such matters be certified by, or covered by the opinion of, only one such
Person, or that they be so certified or covered by only one document, but one such Person may certify or give an opinion with
respect to some matters and one or more other such Persons as to other matters and any such Person may certify or give an opinion
as to such matters in one or several documents.

 

Where any Person is required to make, give or
execute two or more applications, requests, consents, certificates, statements, opinions or other instruments under this Basic
Agreement or, in respect of the Certificates of any series, this Agreement, they may, but need not, be consolidated and form one
instrument.

 

Section 1.04        Directions
of Certificateholders. (a) Any direction, consent, request, demand, authorization, notice, waiver or other action provided
by this Agreement or in respect of the Certificates of any series to be given or taken by Certificateholders (a “Direction”)
may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such Certificateholders in
person or by an agent or proxy duly appointed in writing; and, except as herein otherwise expressly provided, such action shall
become effective when such instrument or instruments are delivered to the Trustee and, when it is expressly required pursuant
to this Agreement, to the Company or any Loan Trustee. Such instrument or instruments (and the action embodied therein and evidenced
thereby) are herein sometimes referred to as the “Act” of the Certificateholders signing such instrument or instruments.
Proof of execution of any such instrument or of a writing appointing any such agent or proxy shall be sufficient for any purpose
of this Agreement and conclusive in favor of the Trustee, the Company and the related Loan Trustee, if made in the manner provided
in this Section 1.04.

 

(b)         The
fact and date of the execution by any Person of any such instrument or writing may be proved by the certificate of any notary public
or other officer of any jurisdiction authorized to take acknowledgments of deeds or administer oaths that the Person executing
such instrument acknowledged to him the execution thereof, or by an affidavit of a witness to such execution sworn to before any
such notary or such other officer, and where such execution is by an officer of a corporation or association or a member of a partnership,
on behalf of such corporation, association or partnership, such certificate or affidavit shall also constitute sufficient proof
of his authority. The fact and date of the execution of any such instrument or writing, or the authority of the Person executing
the same, may also be proved in any other reasonable manner which the Trustee deems sufficient.

 

(c)         In
determining whether the Certificateholders of the requisite Fractional Undivided Interests of Certificates of any series Outstanding
have given any Direction under this Agreement, Certificates owned by the Company, any related Owner or any Affiliate of any such
Person shall be disregarded and deemed not to be Outstanding for purposes of any such determination. In determining whether the
Trustee shall be protected in relying upon any such Direction, only Certificates which the Trustee knows to be so owned shall be
so disregarded. Notwithstanding the foregoing, (i) if any such Person owns 100% of the Certificates of any series Outstanding,
such Certificates shall not be so disregarded, and (ii) if any amount of Certificates of any series owned by any such Person have
been pledged in good faith, such Certificates shall not be disregarded if the pledgee establishes to the satisfaction of the Trustee
the pledgee’s right so to act with respect to such Certificates and that the pledgee is not the Company, any related Owner
or any Affiliate of any such Person.

 

    	 	13	 

     

    

  

(d)         The
Company may, at its option, by delivery of an Officer’s Certificate to the Trustee, set a record date to determine the Certificateholders
in respect of the Certificates of any series entitled to give any Direction. Notwithstanding Section 316(c) of the Trust Indenture
Act, such record date shall be the record date specified in such Officer’s Certificate, which shall be a date not more than
30 days prior to the first solicitation of Certificateholders of the applicable series in connection therewith. If such a record
date is fixed, such Direction may be given before or after such record date, but only the Certificateholders of record of the applicable
series at the close of business on such record date shall be deemed to be Certificateholders for the purposes of determining whether
Certificateholders of the requisite proportion of Outstanding Certificates of such series have authorized or agreed or consented
to such Direction, and for that purpose the Outstanding Certificates of such series shall be computed as of such record date; provided,
however, that no such Direction by the Certificateholders on such record date shall be deemed effective unless it shall become
effective pursuant to the provisions of this Agreement not later than one year after such record date. Nothing in this paragraph
shall be construed to prevent the Company from setting a new record date for any action for which a record date has previously
been set pursuant to this paragraph (whereupon the record date previously set shall automatically and with no action by any Person
be deemed cancelled and of no effect).

 

(e)         Any
Direction by the Holder of any Certificate shall bind the Holder of every Certificate issued upon the transfer thereof or in exchange
therefor or in lieu thereof, whether or not notation of such Direction is made upon such Certificate.

 

(f)         Except
as otherwise provided in paragraph (c) of this Section, Certificates of any series owned by or pledged to any Person shall have
an equal and proportionate benefit under the provisions of this Agreement, without preference, priority or distinction as among
all of the Certificates of such series.

 

(g)         The
Company and the Trustee may make reasonable rules for action by or at a meeting of Certificateholders.

 

Article
II.

ORIGINAL ISSUANCE OF CERTIFICATES;

ACQUISITION OF TRUST PROPERTY

 

Section
2.01        Amount Unlimited; Issuable in Series. (a) The aggregate face
amount of Certificates that may be authenticated and delivered under this Basic Agreement is unlimited. The Certificates may
be issued from time to time in one or more series and shall be designated generally as the “Pass Through
Certificates”, with such further designations added or incorporated in such title for the Certificates of each series
as are specified in the related Trust Supplement. Each Certificate shall bear upon its face the designation so selected for
the series to which it belongs. All Certificates of the same series shall be substantially identical except that the
Certificates of a series may differ as to denomination and as may otherwise be provided in the Trust Supplement establishing
the Certificates of such series. Each series of Certificates issued pursuant to this Agreement will evidence
fractional undivided interests in the related Trust and, except as may be specified in any Intercreditor Agreement or in the
applicable Trust Supplement, will have no rights, benefits or interests in respect of any other Trust or the Trust Property
held therein. All Certificates of the same series shall be in all respects equally and ratably entitled to the benefits of
this Agreement without preference, priority or distinction on account of the actual time or times of authentication and
delivery, all in accordance with the terms and provisions of this Agreement.

 

    	 	14	 

     

    

  

(b)         The
following matters shall be established with respect to the Certificates of each series issued hereunder by a Trust Supplement executed
and delivered (x) by and between the Company and the Trustee, or (y) if any Guarantor will guarantee the obligations of the Company
or any Owner, as applicable, under any Equipment Notes or any Leases related to Equipment Notes to be acquired and held in the
Trust formed by such Trust Supplement, by and among such Guarantor, the Company and the Trustee:

 

(1)        the
formation of the Trust as to which the Certificates of such series represent fractional undivided interests and its designation
(which designation shall distinguish such Trust from each other Trust created under this Basic Agreement and a Trust Supplement);

 

(2)        the
specific title of the Certificates of such series (which title shall distinguish the Certificates of such series from each other
series of Certificates created under this Basic Agreement and a Trust Supplement);

 

(3)        subject
to Section 2.01(a) hereof, any limit upon the aggregate face amount of the Certificates of such series which may be authenticated
and delivered under this Basic Agreement (which limit shall not pertain to Certificates authenticated and delivered upon registration
of transfer of, or in exchange for, or in lieu of, other Certificates of the series pursuant to Sections 3.03, 3.04, 3.05(d) and
3.06);

 

(4)        the
Cut-off Date with respect to the Certificates of such series and the related Trust;

 

(5)        the
Regular Distribution Dates applicable to the Certificates of such series;

 

(6)        the
Special Distribution Dates applicable to the Certificates of such series;

 

(7)        if
other than as provided in Section 3.04 or Section 7.12(b), the Registrar or the Paying Agent for the Certificates of such series,
including any Co-Registrar or additional Paying Agent;

 

(8)        if
other than as provided in Section 3.01, the denominations in which the Certificates of such series shall be issuable;

 

(9)        if
other than United States dollars, the currency or currencies (including composite currencies or currency units) in which the Certificates
of such series shall be denominated or payable, in whole or in part;

 

    	 	15	 

     

    

  

(10)        the
specific form of the Certificates of such series (including the interest rate applicable thereto) and whether or not Certificates
of such series are to be issued as Book-Entry Certificates and, if such Certificates are to be Book-Entry Certificates, the form
of Letter of Representations, if any (or, in the case of any Certificates denominated or payable in a currency other than United
States dollars and if other than as provided in Section 3.05, whether and the circumstances under which beneficial owners of interests
in such Certificates in permanent global form may exchange such interests for Certificates of such series and of like tenor of
any authorized form and denomination);

 

(11)        a
description of the Equipment Notes to be acquired and held in the Trust formed by such Trust Supplement and of the related Aircraft,
if determined, and Note Documents, if determined;

 

(12)        provisions
with respect to the terms for which the definitions set forth in Article I hereof or the terms of any Section hereof, including
Section 11.01 hereof, permit or require further specification in the related Trust Supplement;

 

(13)        any
restrictions (including legends) in respect of ERISA or tax matters;

 

(14)        the
acceptance of appointment by the institution named to act as Trustee with respect to such Trust, if different from the institution
executing this Basic Agreement or its successor;

 

(15)        whether
such series will be subject to an Intercreditor Agreement and, if so, the specific designation of such Intercreditor Agreement
and the rights of Potential Purchasers upon the occurrence of a Triggering Event;

 

(16)        whether
such series will have the benefit of a Liquidity Facility or any interest rate swap, interest rate cap, option, forward contract
or other derivative contract or other form of credit enhancement and, if so, any terms appropriate thereto;

 

(17)        whether
any Guarantor will guarantee the obligations of the Company or any Owner, as applicable, under any Equipment Notes or any Leases
related to Equipment Notes to be acquired and held in the Trust formed by such Trust Supplement and, if so, the specific form of
such Guarantee or Guarantees and a statement that such Guarantor shall be an “obligor” as such term is defined in and
solely for purposes of the Trust Indenture Act and shall be required to comply with those provisions of this Agreement compliance
with which is required by an “obligor” under the Trust Indenture Act;

 

(18)        whether
there will be a deposit agreement, escrow agreement or other arrangement prior to the delivery of one or more Aircraft or the commencement
of the Lease in respect of one or more Aircraft and, if so, any terms appropriate thereto;

 

(19)        the
extent, if any, to which the Company or any Owner may acquire Certificates and deliver such Certificates or cash to the respective
Trusts and obtain the release of Equipment Notes or other Trust Property held by such Trusts;

 

    	 	16	 

     

    

  

(20)        if
the Certificates of such series are to be issued in bearer form, the forms thereof and any other special terms relating thereto;

 

(21)        the
“Responsible Party” for purposes of directing the Trustee to make Specified Investments; and

 

(22)        any
other terms of the Certificates of such series or any related Guarantee (which terms shall not be inconsistent with the provisions
of the Trust Indenture Act but may modify, amend, supplement or delete any of the terms of this Basic Agreement), if any, including
any terms of the Certificates of such series which may be required or advisable under United States or Chilean laws or regulations
or advisable (as determined by the Company) in connection with the marketing of Certificates of the series.

 

(c)         At
any time and from time to time after the execution and delivery of this Basic Agreement and a Trust Supplement forming a Trust
and establishing the terms of Certificates of a series, Certificates of such series shall be executed, authenticated and delivered
by the Trustee to the Person or Persons specified by the Company upon request of the Company and upon satisfaction or waiver of
any conditions precedent set forth in such Trust Supplement or in any other document to which a Trustee is a party relating to
the issuance of the Certificates of such series.

 

Section 2.02        Acquisition
of Equipment Notes. Unless otherwise specified in the related Trust Supplement:

 

(a)         On or prior to the Issuance Date of
the Certificates of a series, the Trustee shall execute and deliver the related Note Purchase Agreements in the form
delivered to the Trustee by the Company and the Owners, if any. Unless otherwise specified in the related Trust Supplement,
the Trustee shall issue and sell such Certificates, in authorized denominations and in such Fractional Undivided Interests,
so as to result in the receipt of consideration in an amount equal to the aggregate purchase price of the Equipment Notes
contemplated to be purchased by the Trustee under the related Note Purchase Agreements and, concurrently therewith (unless
the Company shall have delivered to the Trustee the Postponement Notice relating to one or more Postponed Notes pursuant to
Subsection (b) below), the Trustee shall purchase, pursuant to the terms and conditions of the Note Purchase Agreements, such
Equipment Notes (except Postponed Notes, if any) at a purchase price equal to the amount of such consideration so received.
Except as provided in Sections 3.03, 3.04, 3.05 and 3.06 hereof, the Trustee shall not execute, authenticate or deliver
Certificates of such series in excess of the aggregate amount specified in this paragraph. The provisions of this Subsection
(a) are subject to the provisions of Subsection (b) below.

 

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(b)         If
on or prior to the Issuance Date with respect to a series of Certificates the Company shall deliver to the Trustee a Postponement
Notice relating to one or more Postponed Notes, the Trustee shall postpone the purchase of such Postponed Notes and shall deposit
into an escrow account (as to the related Trust, the “Escrow Account”) to be maintained as part of the related
Trust an amount equal to the purchase price of such Postponed Notes (the “Escrowed Funds”). The portion of the
Escrowed Funds so deposited with respect to any particular Postponed Notes shall be invested (a) by the Trustee at the direction
and risk of, and for the benefit of, the Responsible Party in Specified Investments or (b) if provided in the Trust Supplement
relating to such series of Certificates and subject to the terms and conditions set forth therein, in debt instruments of the Company,
in each case (i) maturing no later than any scheduled Transfer Date relating to such Postponed Notes, or (ii) if no such Transfer
Date has been scheduled, maturing on the next Business Day, or (iii) if subsequent to the giving of the applicable Postponement
Notice the Company has given notice to the Trustee that such Postponed Notes will not be issued, maturing on the next applicable
Special Distribution Date, if such investments are reasonably available for purchase. The Trustee shall make withdrawals from the
Escrow Account only as provided in this Agreement. Upon request of the Company on one or more occasions and the satisfaction or
waiver of the closing conditions specified in the applicable Note Purchase Agreements on or prior to the related Cut-off Date,
the Trustee shall purchase the applicable Postponed Notes, on the terms specified in such Note Purchase Agreements, with the Escrowed
Funds withdrawn from the Escrow Account.

 

The Trustee shall hold all Specified Investments
until the maturity thereof and will not sell or otherwise transfer Specified Investments. If Specified Investments held in an Escrow
Account mature prior to any applicable Transfer Date, any proceeds received on the maturity of such Specified Investments (other
than any earnings thereon) shall be reinvested by the Trustee at the written direction and risk of, and for the benefit of, the
Responsible Party in Specified Investments maturing as provided in the preceding paragraph.

 

Subject to the provisions of the Intercreditor
Agreement, any earnings on Specified Investments received from time to time by the Trustee shall be promptly distributed to the
Responsible Party. The Responsible Party shall pay to the Trustee for deposit to the relevant Escrow Account an amount equal to
any net losses on any Specified Investments made at its direction and risk as incurred. On any Regular Distribution Date in respect
of the Certificates of any series occurring prior to the date of purchase of any Postponed Notes by the Trustee, the Responsible
Party will pay (in immediately available funds) to the Trustee an amount equal to the interest that would have accrued on such
Postponed Notes if such Postponed Notes had been purchased on the later of the Issuance Date or the previous Regular Distribution
Date in respect of the Certificates of such series to, but not including, such Regular Distribution Date. On the first Regular
Distribution Date in respect of the Certificates of any series following the purchase of any Postponed Notes by the Trustee, the
Responsible Party will pay (in immediately available funds) to the Trustee an amount equal to the interest that would have accrued
on such Postponed Notes if such Postponed Notes had been purchased on the later of the Issuance Date or the previous Regular Distribution
Date in respect of the Certificates of such series to, but not including, the date of the purchase of such Postponed Notes by the
Trustee.

 

If, in respect of the Certificates of any series,
the Company notifies the Trustee prior to the Cut-off Date that any Postponed Notes will not be issued on or prior to the Cut-off
Date for any reason, on the next Special Distribution Date for such Certificates occurring not less than 15 days following the
date of such notice, (i) the Responsible Party shall pay (in immediately available funds) to the Trustee for deposit in the related
Special Payments Account, an amount equal to the interest that would have accrued on the Postponed Notes designated in such notice
from the later of the Issuance Date or the previous Regular Distribution Date in respect of the Certificates of such series to,
but not including, such Special Distribution Date and (ii) the Trustee shall transfer an amount equal to that amount of Escrowed
Funds that would have been used to purchase the Postponed Notes designated in such notice and the amount paid by the Responsible
Party pursuant to the immediately preceding clause (i) to the related Special Payments Account for distribution as a Special Payment
in accordance with the provisions hereof.

 

    	 	18	 

     

    

 

If, on such Cut-off Date, an amount equal to
less than all of the Escrowed Funds (other than Escrowed Funds referred to in the immediately preceding paragraph) has been used
to purchase Postponed Notes, on the next Special Distribution Date occurring not less than 15 days following such Cut-off Date
(i) the Responsible Party shall pay to the Trustee for deposit in such Special Payments Account, in immediately available funds,
an amount equal to the interest that would have accrued on such Postponed Notes contemplated to be purchased with such unused Escrowed
Funds (other than Escrowed Funds referred to in the immediately preceding paragraph) but not so purchased from the later of the
Issuance Date or the previous Regular Distribution Date in respect of the Certificates of such series to, but not including, such
Special Distribution Date and (ii) the Trustee shall transfer such unused Escrowed Funds and the amount paid by the Responsible
Party pursuant to the immediately preceding clause (i) to such Special Payments Account for distribution as a Special Payment in
accordance with the provisions hereof.

 

Section 2.03        Acceptance
by Trustee. The Trustee, by the execution and delivery of a Trust Supplement creating a Trust and establishing a series of
Certificates, shall acknowledge its acceptance of all right, title and interest in and to the Trust Property to be acquired pursuant
to Section 2.02 hereof and the related Note Purchase Agreements and shall declare that the Trustee holds and will hold such right,
title and interest for the benefit of all then present and future Certificateholders of such series, upon the trusts herein and
in such Trust Supplement set forth. By the acceptance of each Certificate of such series issued to it under this Agreement, each
initial Holder of such series as grantor of such Trust shall thereby join in the creation and declaration of such Trust. No Certificateholder
of any series shall have legal title to any part of the Trust Property of the related Trust.

 

Section 2.04        Limitation
of Powers. Each Trust shall be constituted solely for the purpose of making the investment in the Equipment Notes provided
for in the related Trust Supplement, and, except as set forth herein or in such related Trust Supplement, the Trustee shall not
be authorized or empowered to acquire any other investments or engage in any other activities. Except to the extent otherwise
provided in the applicable Trust Supplement, the Trustee shall not be authorized or empowered to do anything that would cause
such Trust to fail to qualify as a “grantor trust” for United States federal income tax purposes (including as subject
to this restriction, acquiring any Aircraft (as defined in the related Indentures) by bidding such Equipment Notes or otherwise,
or taking any action with respect to any such Aircraft once acquired).

 

    	 	19	 

     

    

  

Article
III.

THE CERTIFICATES

 

Section 3.01        Form,
Denomination and Execution of Certificates. Except to the extent otherwise specified in the applicable Trust Supplement, the
Certificates of each series shall be issued in fully registered form without coupons and shall be substantially in the form specified
in such Trust Supplement, with such omissions, variations and insertions as are permitted by this Agreement, and may have such
letters, numbers or other marks of identification and such legends or endorsements placed thereon as may be required to comply
with any applicable laws, rules, regulations or the rules of any securities exchange on which such Certificates may be listed
or to conform to any usage in respect thereof, or as may, consistently herewith, be determined by the Trustee or the officers
executing such Certificates, as evidenced by the Trustee’s or such officers’ execution of the Certificates.

 

Except as provided in Section 3.05, the definitive
Certificates of such series shall be typed, printed, lithographed or engraved or produced by any combination of these methods or
may be produced in any other manner permitted by the rules of any securities exchange on which the Certificates may be listed,
all as determined by the officers executing such Certificates, as evidenced by their execution of such Certificates.

 

Except as otherwise provided in the related
Trust Supplement, the Certificates of each series shall be issued in minimum denominations of $1,000 or integral multiples thereof
except that one Certificate of such series may be issued in a different denomination.

 

The Certificates of such series shall be executed
on behalf of the Trustee by manual or facsimile signature of a Responsible Officer of the Trustee. Certificates of any series bearing
the manual or facsimile signature of an individual who was, at the time when such signature was affixed, authorized to sign on
behalf of the Trustee shall be valid and binding obligations of the Trustee, notwithstanding that such individual has ceased to
be so authorized prior to the authentication and delivery of such Certificates or did not hold such office at the date of such
Certificates.

 

Section 3.02        Authentication
of Certificates. (a) Except to the extent otherwise specified in the applicable Trust Supplement, on the Issuance Date, the
Trustee shall duly execute, authenticate and deliver Certificates of each series in authorized denominations equaling in the aggregate
the aggregate principal amount of the Equipment Notes that may be purchased by the Trustee pursuant to the related Note Purchase
Agreements, and evidencing the entire ownership of the related Trust. Thereafter, the Trustee shall duly execute, authenticate
and deliver the Certificates of such series as herein provided.

 

(b)         No
Certificate of any series shall be entitled to any benefit under this Agreement, or be valid for any purpose, unless there appears
on such Certificate a certificate of authentication substantially in the form set forth in the Trust Supplement relating to such
series of Certificates executed by the Trustee by manual signature, and such certificate of authentication upon any Certificate
shall be conclusive evidence, and the only evidence, that such Certificate has been duly authenticated and delivered hereunder.
All Certificates of any series shall be dated the date of their authentication.

 

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Section 3.03        Temporary
Certificates. Until definitive Certificates are ready for delivery, the Trustee shall execute, authenticate and deliver temporary
Certificates of each series. Temporary Certificates of each series shall be substantially in the form of definitive Certificates
of such series but may have insertions, substitutions, omissions and other variations determined to be appropriate by the officers
executing the temporary Certificates of such series, as evidenced by their execution of such temporary Certificates. If temporary
Certificates of any series are issued, the Trustee will cause definitive Certificates of such series to be prepared without unreasonable
delay. After the preparation of definitive Certificates of such series, the temporary Certificates shall be exchangeable for definitive
Certificates upon surrender of such temporary Certificates at the Corporate Trust Office or the office or agency of the Trustee
designated for such purpose pursuant to Section 7.12, without charge to the Certificateholder. Upon surrender for cancellation
of any one or more temporary Certificates, the Trustee shall execute, authenticate and deliver in exchange therefor a like face
amount of definitive Certificates of like series, in authorized denominations and of a like Fractional Undivided Interest. Until
so exchanged, such temporary Certificates shall be entitled to the same benefits under this Agreement as definitive Certificates
of such series.

 

Section 3.04        Transfer
and Exchange. The Trustee shall cause to be kept at the office or agency to be maintained by it in accordance with the provisions
of Section 7.12 a register (the “Register”) for each series of Certificates in which, subject to such reasonable regulations
as it may prescribe, the Trustee shall provide for the registration of Certificates of such series and of transfers and exchanges
of such Certificates as herein provided. The Trustee shall initially be the registrar (the “Registrar”) for the purpose
of registering such Certificates of each series and transfers and exchanges of such Certificates as herein provided.

 

All Certificates issued upon any registration
of transfer or exchange of Certificates of any series shall be valid obligations of the applicable Trust, evidencing the same interest
therein, and entitled to the same benefits under this Agreement, as the Certificates of such series surrendered upon such registration
of transfer or exchange.

 

Upon surrender for registration of transfer
of any Certificate at the Corporate Trust Office or such other office or agency, the Trustee shall execute, authenticate and deliver,
in the name of the designated transferee or transferees, one or more new Certificates of like series, in authorized denominations
of a like aggregate Fractional Undivided Interest.

 

At the option of a Certificateholder, Certificates
may be exchanged for other Certificates of like series, in authorized denominations and of a like aggregate Fractional Undivided
Interest, upon surrender of the Certificates to be exchanged at any such office or agency. Whenever any Certificates are so surrendered
for exchange, the Trustee shall execute, authenticate and deliver the Certificates that the Certificateholder making the exchange
is entitled to receive. Every Certificate presented or surrendered for registration of transfer or exchange shall be duly endorsed
or accompanied by a written instrument of transfer in form satisfactory to the Trustee and the Registrar duly executed by the Certificateholder
thereof or its attorney duly authorized in writing.

 

Except to the extent otherwise provided in the
applicable Trust Supplement, no service charge shall be made to a Certificateholder for any registration of transfer or exchange
of Certificates, but the Trustee shall require payment of a sum sufficient to cover any tax or governmental charge that may be
imposed in connection with any transfer or exchange of Certificates. All Certificates surrendered for registration of transfer
or exchange shall be cancelled and subsequently destroyed by the Trustee.

 

    	 	21	 

     

    

  

Section 3.05        Book-Entry
and Definitive Certificates. (a) The Certificates of any series may be issued at the option of the Company in the form of
one or more typewritten Certificates representing the Book-Entry Certificates of such series, to be delivered to The Depository
Trust Company, the initial Clearing Agency, by, or on behalf of, the Company. In such case, the Certificates of such series delivered
to The Depository Trust Company shall initially be registered on the Register in the name of Cede & Co., the nominee of the
initial Clearing Agency, and no Certificate Owner will receive a definitive certificate representing such Certificate Owner’s
interest in the Certificates of such series, except as provided in Subsection (d) below. As to the Certificates of any such series
(other than the one Certificate or such series issued in a denomination of other than an even multiple of $1,000), unless and
until definitive, fully registered Certificates (the “Definitive Certificates”) have been issued pursuant to Subsection
(d) below:

 

(1)        the
provisions of this Section 3.05 shall be in full force and effect;

 

(2)        the
Company, the Paying Agent, the Registrar and the Trustee may deal with the Clearing Agency for all purposes (including the making
of distributions on the Certificates);

 

(3)        to
the extent that the provisions of this Section 3.05 conflict with any other provisions of this Agreement (other than the provisions
of any Trust Supplement expressly amending this Section 3.05 as permitted by this Basic Agreement), the provisions of this Section
3.05 shall control;

 

(4)        the
rights of Certificate Owners shall be exercised only through the Clearing Agency and shall be limited to those established by law
and agreements between such Certificate Owners and the Clearing Agency Participants; and until Definitive Certificates are issued
pursuant to Subsection (d) below, the Clearing Agency will make book-entry transfers among the Clearing Agency Participants and
receive and transmit distributions of principal, interest and premium, if any, on the Certificates to such Clearing Agency Participants;

 

(5)        such
Certificates of such series may be transferred in whole, but not in part, and in the manner provided in Section 3.04, by the Clearing
Agency holding such Certificates to a nominee of such Clearing Agency, or by such Clearing Agency to a successor Clearing Agency
that has been selected or approved by the Company or to a nominee of such successor Clearing Agency; and

 

(6)        whenever
this Agreement requires or permits actions to be taken based upon instructions or directions of Certificateholders of such series
holding Certificates of such series evidencing a specified percentage of the Fractional Undivided Interests in the related Trust,
the Clearing Agency shall be deemed to represent such percentage only to the extent that it has received instructions to such effect
from Clearing Agency Participants owning or representing, respectively, such required percentage of the beneficial interest in
Certificates of such series and has delivered such instructions to the Trustee. None of the Company, any Owner, any Guarantor,
the Trustee or any agent of any of them shall have any obligation to determine whether the Clearing Agency has in fact received
any such instructions.

 

    	 	22	 

     

    

  

(b)         Whenever
notice or other communication to the Certificateholders of a series is required under this Agreement, unless and until Definitive
Certificates shall have been issued pursuant to Subsection (d) below, the Trustee shall give all such notices and communications
specified herein to be given to Certificateholders of such series to the Clearing Agency.

 

(c)         Except
as otherwise provided in the related Trust Supplement, the Trustee shall enter into the applicable Letter of Representations with
respect to each series of Certificates and fulfill its responsibilities thereunder.

 

(d)         If
with respect to the Certificates of any series (i) the Company advises the Trustee in writing that the Clearing Agency is no longer
willing or able to discharge properly its responsibilities and the Trustee or the Company is unable to locate a qualified successor
or (ii) after the occurrence of an Event of Default, Certificate Owners of Book-Entry Certificates of such series evidencing Fractional
Undivided Interests aggregating not less than a majority in interest in the related Trust, by Act of such Certificate Owners delivered
to the Company and the Trustee, advise the Company, the Trustee and the Clearing Agency through the Clearing Agency Participants
in writing that the continuation of a book-entry system through the Clearing Agency Participants is no longer in the best interests
of the Certificate Owners of such series, then the Trustee shall notify all Certificate Owners of such series, through the Clearing
Agency, of the occurrence of any such event and of the availability of Definitive Certificates. Upon surrender to the Trustee of
all the Certificates of such series held by the Clearing Agency, accompanied by registration instructions from the Clearing Agency
Participants for registration of Definitive Certificates in the names of Certificate Owners of such series, the Trustee shall issue
and deliver the Definitive Certificates of such series in accordance with the instructions of the Clearing Agency. Neither the
Company, the Registrar, the Paying Agent nor the Trustee shall be liable for any delay in delivery of such instructions and may
conclusively rely on, and shall be protected in relying on, such registration instructions. Upon the issuance of Definitive Certificates
of such series, the Trustee shall recognize the Persons in whose names the Definitive Certificates are registered in the Register
as Certificateholders hereunder. Neither the Company nor the Trustee shall be liable if the Trustee or the Company is unable to
locate a qualified successor Clearing Agency.

 

(e)         The
provisions of this Section 3.05 may be made inapplicable to any series or may be amended with respect to any series in the related
Trust Supplement.

 

Section
3.06        Mutilated, Destroyed, Lost or Stolen Certificates. If (i)
any mutilated Certificate is surrendered to the Registrar, or the Registrar receives evidence to its satisfaction of the
destruction, loss or theft of any Certificate, and (ii) there is delivered to the Registrar and the Trustee such security,
indemnity or bond as may be required by them to save each of them and the Company harmless, then, in the absence of notice to
the Registrar or the Trustee that such destroyed, lost or stolen Certificate has been acquired by a protected purchaser
(within the meaning of Article 8 of the Uniform Commercial Code in effect in any applicable jurisdiction), and provided that
the requirements of Section 8-405 of the Uniform Commercial Code in effect in any applicable jurisdiction are met, the
Trustee shall execute, authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen
Certificate, a new Certificate or Certificates of like series, in authorized denominations and of like Fractional
Undivided Interest and bearing a number not contemporaneously outstanding.

 

    	 	23	 

     

    

 

 

In connection with the issuance of any new Certificate
under this Section 3.06, the Trustee shall require the payment of a sum sufficient to cover any tax or other governmental charge
that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee and the Registrar)
connected therewith.

 

Any duplicate Certificate issued pursuant to
this Section 3.06 shall constitute conclusive evidence of the appropriate Fractional Undivided Interest in the related Trust, as
if originally issued, whether or not the lost, stolen or destroyed Certificate shall be found at any time.

 

The provisions of this Section 3.06 are exclusive
and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Certificates.

 

Section 3.07        Persons
Deemed Owners of Certificates. Prior to due presentment of a Certificate for registration of transfer, the Company, the Trustee,
the Registrar and any Paying Agent shall deem and treat the Person in whose name any Certificate is registered (as of the day
of determination) on the Register as the owner of such Certificate and the Certificateholder for the purpose of receiving distributions
pursuant to Article IV and for all other purposes whatsoever, and none of the Company, the Trustee, the Registrar or any Paying
Agent shall be affected by any notice to the contrary. All payments or distributions made to any such Person shall be valid and,
to the extent of the sum or sums so paid, effectual to satisfy and discharge the liability for moneys payable on any such Certificate.

 

Unless otherwise provided with respect to any
Certificates pursuant to Section 2.01(b), the Company, any Owner, any Guarantor, any other obligor upon any Certificates and any
Affiliate of any thereof may acquire, tender for, purchase, own, hold, become the pledgee of and otherwise deal with any Certificates.

 

Section 3.08        Cancellation.
All Certificates surrendered for payment or transfer or exchange shall, if surrendered to the Trustee or any agent of the Trustee
other than the Registrar, be delivered to the Registrar for cancellation and shall promptly be cancelled by it. No Certificates
shall be authenticated in lieu of or in exchange for any Certificates cancelled as provided in this Section 3.08, except as expressly
permitted by this Agreement. All cancelled Certificates held by the Registrar shall be destroyed and a certification of their
destruction delivered to the Trustee.

 

Section
3.09        Limitation of Liability for Payments. All payments and
distributions made to Certificateholders of any series in respect of the Certificates of such series shall be made only from
the Trust Property of the related Trust and only to the extent that the Trustee shall have sufficient income or proceeds from
such Trust Property to make such payments in accordance with the terms of Article IV of this Agreement. The Certificates do
not represent indebtedness of the related Trusts, and references herein or in any Trust Supplement to interest accruing on
any Certificates are intended for purposes of computation only. Each Certificateholder, by its acceptance of a Certificate,
agrees that it will look solely to the income and proceeds from the Trust Property of the related Trust for any payment or
distribution due to such Certificateholder pursuant to the terms of this Agreement and that it will not have any recourse to
the Company, the Trustee, the Loan Trustees or any Owner except as otherwise expressly provided in this Agreement, in any
Note Document or in any related Intercreditor Agreement.

 

    	 	24	 

     

    

 

 

The Company is a party to this Agreement solely
for purposes of meeting the requirements of the Trust Indenture Act, and therefore shall not have any right, obligation or liability
hereunder, or under the terms of any Trust Supplement or any Certificates (except as otherwise expressly provided herein or therein).

 

Section 3.10        CUSIP
Numbers. The Certificates may include “CUSIP” numbers (if then generally in use), and if so, the Trustee may use
the CUSIP numbers in notices in respect of the Certificates; provided, however, that any such notice may state that no representation
is made as to the correctness or accuracy of the CUSIP number printed in the notice or on the Certificates, that reliance may
be placed only on the other identification numbers printed on the Certificates, and any such notice shall not be affected by any
defect or omission of such CUSIP numbers.

 

Article
IV.

DISTRIBUTIONS; STATEMENTS TO CERTIFICATEHOLDERS

 

Section 4.01        Certificate
Account and Special Payments Account. (a) The Trustee shall establish and maintain on behalf of the Certificateholders of
each series a Certificate Account as one or more non-interest-bearing accounts. The Trustee shall hold such Certificate Account
in trust for the benefit of the Certificateholders of such series, and shall make or permit withdrawals therefrom only as provided
in this Agreement or any Intercreditor Agreement. On each day when a Scheduled Payment is made to the Trustee or the Subordination
Agent, as the case may be, as holder of the Equipment Notes issued under the related Indenture, with respect to the Certificates
of any series, the Trustee, upon receipt of the payments to it, shall immediately deposit the aggregate amount of such Scheduled
Payment in the applicable Certificate Account.

 

(b)         The
Trustee shall establish and maintain on behalf of the Certificateholders of each series a Special Payments Account as one or more
accounts, which shall be non-interest bearing except as provided in Section 4.04. The Trustee shall hold the Special Payments Account
in trust for the benefit of the Certificateholders of such series and shall make or permit withdrawals therefrom only as provided
in this Agreement or any Intercreditor Agreement. On each day when one or more Special Payments are made to the Trustee or the
Subordination Agent, as the case may be, as holder of the Equipment Notes issued under the related Indenture or to the Trustee
pursuant to the last two paragraphs of Section 2.02(b) with respect to the Certificates of any series, the Trustee, upon receipt
of the payments to it, shall immediately deposit the aggregate amount of such Special Payments in the applicable Special Payments
Account.

 

    	 	25	 

     

    

  

(c)         The
Trustee shall present (or, if applicable, cause the Subordination Agent to present) to the Loan Trustee to which an Equipment Note
relates such Equipment Note on the date of its stated final maturity or, in the case of any Equipment Note which is to be redeemed
or purchased in whole pursuant to the related Indenture, on the applicable redemption or purchase date under such Indenture.

 

Section
4.02        Distributions from Certificate Account and Special Payments
Account . (a) Subject to the provisions of any Intercreditor Agreement, on each Regular Distribution Date with
respect to a series of Certificates or as soon thereafter as the Trustee has confirmed receipt of the payment of all or any
part of the Scheduled Payments due on the Equipment Notes held in the related Trust on such date, the Trustee shall
distribute out of the applicable Certificate Account the entire amount deposited therein pursuant to Section 4.01(a). There
shall be so distributed to each Certificateholder of record of such series on the Record Date with respect to such Regular
Distribution Date (other than as provided in Section 11.01 concerning the final distribution) by check mailed to
such Certificateholder, at the address appearing in the Register, such Certificateholder’s pro rata share (based on the
aggregate Fractional Undivided Interest in the related Trust held by such Certificateholder) of the total amount in the
applicable Certificate Account, except that, with respect to Certificates registered on the Record Date in the name of a
Clearing Agency (or its nominee), such distribution shall be made by wire transfer in immediately available funds to the
account designated by such Clearing Agency (or such nominee).

 

(b)         Subject
to the provisions of any Intercreditor Agreement, on each Special Distribution Date with respect to any Special Payment with respect
to a series of Certificates or as soon thereafter as the Trustee has confirmed receipt of any Special Payments due on the Equipment
Notes held in the related Trust or realized upon the sale of such Equipment Notes, the Trustee shall distribute out of the applicable
Special Payments Account the entire amount of such applicable Special Payment deposited therein pursuant to Section 4.01(b). There
shall be so distributed to each Certificateholder of record of such series on the Record Date with respect to such Special Distribution
Date (other than as provided in Section 11.01 concerning the final distribution) by check mailed to such Certificateholder, at
the address appearing in the Register, such Certificateholder’s pro rata share (based on the aggregate Fractional Undivided
Interest in the related Trust held by such Certificateholder) of the total amount in the applicable Special Payments Account on
account of such Special Payment, except that, with respect to Certificates registered on the Record Date in the name of a Clearing
Agency (or its nominee), such distribution shall be made by wire transfer in immediately available funds to the account designated
by such Clearing Agency (or such nominee).

 

    	 	26	 

     

    

  

(c)         The
Trustee shall, at the expense of the Company, cause notice of each Special Payment with respect to a series of Certificates to
be mailed to each Certificateholder of such series at his address as it appears in the Register. Subject to the provisions of any
Intercreditor Agreement: (i) in the event of redemption or purchase of Equipment Notes held in the related Trust, such notice shall
be mailed not less than 15 days prior to the Special Distribution Date for the Special Payment resulting from such redemption or
purchase, which Special Distribution Date shall be the date of such redemption or purchase; (ii) in the event that the Trustee
receives a notice from the Company pursuant to Section 2.02(b) that Postponed Notes will not be purchased by the Trustee, such
notice of Special Payment shall be mailed as soon as practicable after receipt of such notice from the Company and shall state
the Special Distribution Date for such Special Payment, which shall occur 15 days after the date of such notice of Special Payment
or (if such 15th day is not practicable) as soon as practicable thereafter; (iii) in the event that any Special Payment is to be
made pursuant to the last paragraph of Section 2.02(b), such notice of Special Payment shall be mailed on the Cut-off Date (or,
if such mailing on the Cut-off Date is not practicable, as soon as practicable after the Cut-off Date) and shall state the Special
Distribution Date for such Special Payment, which shall occur 15 days after the date of such notice of Special Payment or (if such
15th day is not practicable) as soon as practicable thereafter; and (iv) in the case of any other Special Payments, such notice
of Special Payment shall be mailed as soon as practicable after the Trustee has confirmed that it has received funds for such Special
Payment and shall state the Special Distribution Date for such Special Payment, which shall occur 15 days after the date of such
notice of Special Payment or (if such 15th day is not practicable) as soon as practicable thereafter. Notices mailed by the Trustee
as provided in the paragraphs above shall set forth:

 

(i)         the
Special Distribution Date and the Record Date therefor (except as otherwise provided in Section 11.01);

 

(ii)        the
amount of the Special Payment (taking into account any payment to be made by the Responsible Party pursuant to Section 2.02(b))
for each $1,000 face amount Certificate and the amount thereof constituting principal, premium, if any, and interest;

 

(iii)        
the reason for the Special Payment; and

 

(iv)        if
the Special Distribution Date is the same date as a Regular Distribution Date for the Certificates of such series, the total amount
to be received on such date for each $1,000 face amount Certificate.

 

If the amount of premium, if any, payable upon
the redemption or purchase of an Equipment Note has not been calculated at the time that the Trustee mails notice of a Special
Payment, it shall be sufficient if the notice sets forth the other amounts to be distributed and states that any premium received
will also be distributed.

 

If any redemption or purchase of the Equipment
Notes held in any Trust is cancelled, the Trustee, as soon as possible after learning thereof, shall cause notice thereof to be
mailed to each Certificateholder of the related series at its address as it appears on the Register.

 

Section 4.03        Statements
to Certificateholders. (a) On each Regular Distribution Date and Special Distribution Date, the Trustee will include with
each distribution to Certificateholders of the related series a statement, giving effect to the distribution to be made on such
Regular Distribution Date or Special Distribution Date, and, except to the extent otherwise provided in the applicable Trust Supplement,
setting forth the following information (per $1,000 aggregate face amount of Certificate as to (i) and (ii) below):

 

(i)         the
amount of such distribution allocable to principal and the amount allocable to premium, if any;

 

(ii)        the
amount of such distribution allocable to interest; and

 

(iii)        the
Pool Balance and the Pool Factor of the related Trust.

 

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With respect to the Certificates registered
in the name of a Clearing Agency or its nominee, on the Record Date prior to each Regular Distribution Date and Special Distribution
Date, the Trustee will request from the Clearing Agency a securities position listing setting forth the names of all the Clearing
Agency Participants reflected on the Clearing Agency’s books as holding interests in the Certificates on such Record Date.
On each Regular Distribution Date and Special Distribution Date, the applicable Trustee will mail to each such Clearing Agency
Participant the statement described above and will make available additional copies as requested by such Clearing Agency Participants
for forwarding to holders of interests in the Certificates.

 

(b)         Within
a reasonable period of time after the end of each calendar year but not later than the latest date permitted by law, except to
the extent otherwise provided in the applicable Trust Supplement, the Trustee shall furnish to each Person who at any time during
such calendar year was a Certificateholder of record a statement containing the sum of the amounts determined pursuant to clauses
(a)(i) and (a)(ii) above with respect to the related Trust for such calendar year or, in the event such Person was a Certificateholder
of record during a portion of such calendar year, for the applicable portion of such year, and such other items as are readily
available to the Trustee and which a Certificateholder may reasonably request as necessary for the purpose of such Certificateholder’s
preparation of its federal income tax returns. With respect to Certificates registered in the name of a Clearing Agency or its
nominee, such statement and such other items shall be prepared on the basis of information supplied to the Trustee by the Clearing
Agency Participants and shall be delivered by the Trustee to such Clearing Agency Participants to be available for forwarding by
such Clearing Agency Participants to the holders of interests in the Certificates.

 

Section 4.04        Investment
of Special Payment Moneys. Any money received by the Trustee pursuant to Section 4.01(b) representing a Special Payment which
is not distributed on the date received shall, to the extent practicable, be invested by the Trustee in Permitted Investments
selected by the Company in telephonic (confirmed in writing) or written instructions to the Trustee pending distribution of such
Special Payment pursuant to Section 4.02. Any investment made pursuant to this Section 4.04 shall be in such Permitted Investments
having maturities not later than the date that such moneys are required to be used to make the payment required under Section
4.02 on the applicable Special Distribution Date and the Trustee shall hold any such Permitted Investments until maturity. Absent
receipt of instructions from the Company, such Special Payment shall remain uninvested by the Trustee pending receipt of investment
instructions. The Trustee shall have no liability with respect to any investment made pursuant to this Section 4.04, other than
by reason of the willful misconduct or negligence of the Trustee. All income and earnings from such investments shall be distributed
on such Special Distribution Date as part of such Special Payment.

 

Article
V.

THE COMPANY

 

Section
5.01        Maintenance of Corporate Existence. The Company, at its own
cost and expense, will do or cause to be done all things necessary to preserve and keep in full force and effect its
corporate existence, rights and franchises, except as otherwise specifically permitted in Section 5.02; provided, however,
that the Company shall not be required to preserve any right or franchise if the Company shall determine that the
preservation thereof is no longer desirable in the conduct of the business of the Company.

 

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Section
5.02        Consolidation, Merger, Etc. (a) The Company shall not
consolidate with or merge into any other Person under circumstances where the Company is not the surviving Person or convey,
transfer or lease substantially all of its assets as an entirety to any Person unless (i) immediately prior to such
transaction and immediately after giving effect to such transaction no Event of Default will have occurred or be continuing;
(ii) the Person formed by such consolidation or into which the Company is merged or the Person that acquires by conveyance,
transfer or lease substantially all of the assets of the Company as an entirety shall be organized and validly existing under
(x) the laws of the Republic of Chile or any territory thereof or (y) the laws of the United States of America or any state
thereof or the District of Columbia, provided that, in the case of clause (y), such Person shall be a United States
certificated air carrier, if and so long as such status is a condition of entitlement to the benefits of Section 1110 of the
United States Bankruptcy Reform Act of 1978, as amended, with respect to any Leases or the Aircraft, and (iii) such
Person shall execute and deliver to the Trustee an agreement in form and substance reasonably satisfactory to the Trustee
containing an assumption by such successor Person of the due and punctual performance and observance of each covenant and
condition of this Agreement.

 

(b)         Upon
any consolidation or merger, or any conveyance, transfer or lease of substantially all of the assets of the Company as an entirety
in accordance with this Section 5.02, the successor Person formed by such consolidation or into which the Company is merged or
to which such conveyance, transfer or lease is made shall succeed to, and be substituted for, and may exercise every right and
power of, the Company under this Agreement with the same effect as if such successor Person had been named as the Company herein.

 

(c)         The
Trustee may request an Officer’s Certificate and an Opinion of Counsel of the Company as conclusive evidence that any such
consolidation, merger, conveyance, transfer or lease, and any such assumption, complies with the provisions of this Section 5.02.

 

Article
VI.

DEFAULT

 

Section
6.01        Indenture Events of Default and Triggering Events.
(a) If in respect of any Trust, any Indenture Event of Default shall occur and be continuing, then, and in each and
every case, so long as such Indenture Event of Default shall be continuing, and subject to the provisions of any
Intercreditor Agreement, the Trustee may vote all of the Equipment Notes issued under the related Indenture and held in such
Trust, and, upon the direction of the Certificateholders holding Certificates evidencing Fractional Undivided Interests in
such Trust aggregating not less than a majority in interest in such Trust, the Trustee shall vote not less than
a corresponding majority of such Equipment Notes in favor of directing the Loan Trustee under such Indenture to declare the
unpaid principal amount of the Equipment Notes then outstanding to which such Indenture Event of Default relates and accrued
interest thereon to be due and payable under, and in accordance with the provisions of, the relevant Indenture. In addition,
if an Indenture Event of Default shall have occurred and be continuing under any Indenture, subject to the provisions of any
Intercreditor Agreement, the Trustee may in accordance with the relevant Indenture vote the Equipment Notes held in the Trust
to which such Indenture Event of Default relates to direct the Loan Trustee regarding the exercise of remedies provided in
such Indenture.

 

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(b)         In
addition, after an Indenture Event of Default shall have occurred and be continuing with respect to any Equipment Note, subject
to the provisions of any Intercreditor Agreement and the applicable Trust Supplement, the Trustee may in its discretion, and upon
the direction of the Certificateholders holding Certificates evidencing Fractional Undivided Interests aggregating not less than
a majority in interest in the related Trust shall, by such officer or agent as it may appoint, sell, convey, transfer and deliver
such Equipment Note or Equipment Notes, without recourse to or warranty by the Trustee or any Certificateholder, to any Person.
In any such case, the Trustee shall sell, assign, contract to sell or otherwise dispose of and deliver such Equipment Note or Equipment
Notes in one or more parcels at public or private sale or sales, at any location or locations at the option of the Trustee, all
upon such terms and conditions as it may reasonably deem advisable and at such prices as it may reasonably deem advisable, for
cash. If the Trustee so decides or is required to sell or otherwise dispose of any Equipment Note pursuant to this Section, the
Trustee shall take such of the actions described above as it may reasonably deem most effectual to complete the sale or other disposition
of such Equipment Note. Notwithstanding the foregoing, any action taken by the Trustee under this Section shall not, in the reasonable
judgment of the Trustee, be adverse to the best interests of the Certificateholders of such series.

 

(c)         If
an Intercreditor Agreement is applicable, upon the occurrence and during the continuation of any Indenture Event of Default under
any Indenture, the Trustee may, to the extent it is the Controlling Party at such time (as determined pursuant to the related Intercreditor
Agreement), direct the exercise of remedies as provided in such related Intercreditor Agreement.

 

(d)         If
an Intercreditor Agreement is applicable, by acceptance of its Certificate, each Certificateholder agrees that at any time after
the occurrence and during the continuation of a Triggering Event, each Certificateholder of Certificates of certain series (each,
a “Potential Purchaser” and, collectively, the “Potential Purchasers”) may have certain rights
to purchase the Certificates of one or more other series, all as set forth in the Trust Supplement applicable to the Certificates
held by such Potential Purchaser. The purchase price with respect to the Certificates of any series, and the procedure for such
purchase, shall be specified in such Trust Supplement or the applicable Intercreditor Agreement. By acceptance of its Certificate,
each Certificateholder (each, a “Selling Certificateholder” and, collectively, the “Selling Certificateholders”)
of a series that is subject to purchase by Potential Purchasers, all as set forth in the Trust Supplement applicable to the Certificates
held by the Selling Certificateholders, agrees that, at any time after the occurrence and during the continuance of a Triggering
Event, it will, upon payment of the applicable purchase price by one or more Potential Purchasers (upon such purchase, a “Purchasing
Certificateholder”), forthwith sell, assign, transfer and convey to such Purchasing Certificateholder (without recourse,
representation or warranty of any kind except for its own acts) all of the right, title, interest and obligation of such Selling
Certificateholder in this Agreement, any related Intercreditor Agreement, any related Liquidity Facility, the related Note Documents
and all Certificates of such series held by such Selling Certificateholder (excluding all right, title and interest under any of
the foregoing to the extent such right, title or interest is with respect to an obligation not then due and payable as respects
any action or inaction or state of affairs occurring prior to such sale) and the Purchasing Certificateholder shall assume all
of such Selling Certificateholder’s obligations under this Agreement, any related Intercreditor Agreement, any related Liquidity
Facility and the related Note Documents. The Certificates of such series will be deemed to be purchased on the date payment of
the purchase price is made notwithstanding the failure of any Selling Certificateholder to deliver any Certificates of such series
and, upon such a purchase, (i) the only rights of the Selling Certificateholders will be to deliver the Certificates to the Purchasing
Certificateholder and receive the purchase price for such Certificates of such series and (ii) if the Purchasing Certificateholder
shall so request, such Selling Certificateholder will comply with all of the provisions of Section 3.04 hereof to enable new Certificates
of such series to be issued to the Purchasing Certificateholder in such denominations as it shall request. All charges and expenses
in connection with the issuance of any such new Certificates shall be borne by the Purchasing Certificateholder.

 

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Section 6.02        Incidents
of Sale of Equipment Notes. Upon any sale of all or any part of the Equipment Notes held in the Trust made either under the
power of sale given under this Agreement or otherwise for the enforcement of this Agreement, the following shall be applicable:

 

(1)        Certificateholders
and Trustee May Purchase Equipment Notes. Any Certificateholder, the Trustee in its individual or any other capacity or any other
Person may bid for and purchase any of the Equipment Notes held in the Trust, and upon compliance with the terms of sale, may hold,
retain, possess and dispose of such Equipment Notes in their own absolute right without further accountability.

 

(2)        Receipt
of Trustee Shall Discharge Purchaser. The receipt of the Trustee making such sale shall be a sufficient discharge to any purchaser
for its purchase money, and, after paying such purchase money and receiving such receipt, such purchaser or its personal representative
or assigns shall not be obliged to see to the application of such purchase money, or be in any way answerable for any loss, misapplication
or non-application thereof.

 

(3)        Application
of Moneys Received Upon Sale. Any moneys collected by the Trustee upon any sale made either under the power of sale given by this
Agreement or otherwise for the enforcement of this Agreement shall be applied as provided in Section 4.02. In the event that the
proceeds of such sale of Equipment Notes are less than the principal amount of the Certificates of such series Outstanding, the
Certificateholders shall have no claim for such shortfall against the Company, the Trustee or any other Person including the related
Owner, if any.

 

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Section 6.03        Judicial
Proceedings Instituted by Trustee; Trustee May Bring Suit. If there shall be a failure to make payment of the principal of,
premium, if any, or interest on any Equipment Note held in the related Trust, or if there shall be any failure to pay Rent (as
defined in the relevant Lease) under any Lease when due and payable, then the Trustee, in its own name and as trustee of an express
trust, as holder of such Equipment Notes, to the extent permitted by and in accordance with the terms of any related Intercreditor
Agreement and any related Note Documents (subject to rights of the applicable Owner, if any, to cure any such failure to pay principal
of, premium, if any, or interest on any Equipment Note or to pay Rent under any Lease in accordance with the applicable Indenture
and to the rights of the Lessee under any applicable Lease), shall be entitled and empowered to institute any suits, actions or
proceedings at law, in equity or otherwise, for the collection of the sums so due and unpaid on such Equipment Notes or under
such Lease and may prosecute any such claim or proceeding to judgment or final decree with respect to the whole amount of any
such sums so due and unpaid.

 

All rights of action and of asserting claims
under this Agreement, or under any of the Certificates, may be prosecuted and enforced by the Trustee without the possession of
any of such Certificates or the production thereof in any trial or other proceedings relative thereto, and any such action or proceedings
instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any recovery of judgment, subject
to the payment of the expenses, disbursements and compensation of the Trustee, each predecessor Trustee and their respective agents
and attorneys, shall be for the ratable benefit of the Certificateholders of the related series.

 

In any proceedings brought by the Trustee (and
also any proceedings involving the interpretation of any provision of this Agreement, any Trust Supplement, any Intercreditor Agreement
or any Liquidity Facility to which the Trustee shall be a party) the Trustee shall be held to represent all the Certificateholders
of the related series, and it shall not be necessary to make any such Certificateholders parties to any such proceedings.

 

Section 6.04        Control
by Certificateholders. Subject to Section 6.03 and any related Intercreditor Agreement, the Certificateholders holding Certificates
of a series evidencing Fractional Undivided Interests aggregating not less than a majority in interest in the related Trust shall
have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee with
respect to such Trust or pursuant to the terms of such Intercreditor Agreement or any Liquidity Facility to which such Trustee
is a party, or exercising any trust or power conferred on the Trustee under this Agreement or such Intercreditor Agreement or
Liquidity Facility, including any right of the Trustee as Controlling Party under such Intercreditor Agreement or as holder of
the Equipment Notes held in the related Trust; provided that:

 

(1)        such
Direction shall not in the opinion of the Trustee be in conflict with any rule of law or with this Agreement, and such Direction
would not involve the Trustee in personal liability or expense unless such Certificateholders shall have offered to the Trustee
reasonable security or indemnity against the cost, expenses and liabilities which might be incurred by it in compliance with such
Direction;

 

(2)        the
Trustee shall not determine that the action so directed would be unjustly prejudicial to the Certificateholders of such series
not taking part in such Direction;

 

(3)        the
Trustee may take any other action deemed proper by the Trustee which is not inconsistent with such Direction; and

 

    	 	32	 

     

    

  

(4)        if
an Indenture Event of Default under a related Indenture shall have occurred and be continuing, such direction shall not obligate
the Trustee to vote more than a corresponding majority of the related Equipment Notes held by the Trust in favor of directing any
action by the related Loan Trustee with respect to such Indenture Event of Default.

 

Section 6.05        Waiver
of Past Defaults. Subject to any related Intercreditor Agreement, the Certificateholders holding Certificates of a series
evidencing Fractional Undivided Interests aggregating not less than a majority in interest in the related Trust (i) may on behalf
of all of the Certificateholders of such series waive any past default or Event of Default hereunder and its consequences or (ii)
if the Trustee is the Controlling Party, may direct the Trustee to instruct the applicable Loan Trustee to waive any past Indenture
default, Indenture Event of Default or, if applicable, the corresponding Lease default, under any related Indenture and its consequences,
and thereby annul any Direction given by such Certificateholders or the Trustee to such Loan Trustee with respect thereto, except
a default:

 

(1)        in
the deposit of any Scheduled Payment or Special Payment under Section 4.01 or in the distribution of any payment under Section
4.02 on the Certificates of a series; or

 

(2)        in
the payment of the principal of, premium, if any, or interest, if any, on the Equipment Notes held in the related Trust; or in
respect of a covenant or provision hereof which under Article IX hereof cannot be modified or amended without the consent of each
Certificateholder holding an Outstanding Certificate of the series affected thereby.

 

Upon any such waiver, such default shall cease
to exist with respect to the Certificates of such series and any Event of Default arising therefrom shall be deemed to have been
cured for every purpose in respect of such series and any direction given by the Trustee on behalf of the Certificateholders of
such series to the relevant Loan Trustee shall be annulled with respect thereto; but no such waiver shall extend to any subsequent
or other default or Event of Default or impair any right consequent thereon. Upon any such waiver, the Trustee shall vote the Equipment
Notes issued under the relevant Indenture to waive the corresponding Indenture Event of Default (and, if applicable, the corresponding
Lease default).

 

Section 6.06        Right
of Certificateholders to Receive Payments Not to Be Impaired. Anything in this Agreement (including Section 6.07) to the contrary
notwithstanding, but subject to any related Intercreditor Agreement, the right of any Certificateholder to receive distributions
of payments required pursuant to Section 4.02 hereof on the applicable Certificates when due, or to institute suit for the enforcement
of any such payment on or after the applicable Regular Distribution Date or Special Distribution Date, shall not be impaired or
affected without the consent of such Certificateholder.

 

Section 6.07        Certificateholders
May Not Bring Suit Except Under Certain Conditions. A Certificateholder of any series shall not have the right to institute
any suit, action or proceeding at law or in equity or otherwise with respect to this Agreement for the appointment of a receiver
or for the enforcement of any other remedy under this Agreement, unless:

 

    	 	33	 

     

    

  

(1)        such
Certificateholder previously shall have given written notice to the Trustee of a continuing Event of Default;

 

(2)        Certificateholders
holding Certificates of such series evidencing Fractional Undivided Interests aggregating not less than 25% of the related Trust
shall have requested the Trustee in writing to institute such action, suit or proceeding and shall have offered to the Trustee
indemnity as provided in Section 7.03(e);

 

(3)        the
Trustee shall have refused or neglected to institute any such action, suit or proceeding for 60 days after receipt of such notice,
request and offer of indemnity; and

 

(4)        no
direction inconsistent with such written request shall have been given to the Trustee during such 60-day period by Certificateholders
holding Certificates of such series evidencing Fractional Undivided Interests aggregating not less than a majority in interest
in the related Trust.

 

Except to the extent provided in any applicable
Intercreditor Agreement or in any applicable Trust Supplement, it is understood and intended that no one or more of the Certificateholders
of any series shall have any right in any manner whatsoever hereunder or under the related Trust Supplement or under the Certificates
of such series to (i) surrender, impair, waive, affect, disturb or prejudice any property in the Trust Property of the related
Trust, or the lien of any related Indenture on any property subject thereto, or the rights of the Certificateholders of such series
or the holders of the related Equipment Notes, (ii) obtain or seek to obtain priority over or preference with respect to any other
such Certificateholder of such series or (iii) enforce any right under this Agreement, except in the manner provided in this Agreement
and for the equal, ratable and common benefit of all the Certificateholders of such series subject to the provisions of this Agreement.

 

Section 6.08        Remedies
Cumulative. Every right or remedy given hereunder to the Trustee or to any of the Certificateholders of any series shall not
be exclusive of any other right or remedy or remedies, and every such right or remedy shall be cumulative and in addition to every
other right or remedy given hereunder or now or hereafter given by statute, law, equity or otherwise. No delay or omission by
the Trustee or of any such Certificateholder in the exercise of any right, remedy or power or in the pursuance of any remedy shall
impair any such right, power or remedy or be construed to be a waiver of any default on the part of the applicable Owner, if any,
or the Company, as the case may be, or to be an acquiescence therein.

 

Section 6.09        Discontinuance
of Proceedings. If the Trustee or any Certificateholder of any Series institutes any proceeding to enforce any right, power
or remedy under the related Trust, and such proceeding is discontinued or abandoned for any reason or is determined adversely
to the Trustee or such Certificateholder, then and in every such case the applicable Owner, if any, and the applicable Indenture
Trustee, the Trustee, the Certificateholders of such Series and the Company shall, subject to any determination in such proceeding,
be restored to their former positions and rights under such Trust with respect to the Trust Property and all rights, remedies
and powers of the Trustee and such Certificateholders shall continue as if no such proceeding had been instituted.

 

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Section 6.10        Undertaking
for Costs. All parties to this Agreement, and each Certificateholder by acceptance of a Certificate, shall be deemed to have
agreed that, in any suit for the enforcement of any right or remedy under this Agreement, or in any suit against the Trustee for
any action taken, suffered or omitted by it as Trustee, a court may require any party litigant in such suit to file an undertaking
to pay the costs of such suit, and may assess costs against any such party litigant, in the manner and to the extent provided
in the Trust Indenture Act or by other applicable law; provided, however, that neither this Section 6.10 nor the Trust Indenture
Act shall be deemed to authorize any court to require such an undertaking or to make such an assessment in any suit instituted
by the Company.

 

Article
VII.

THE TRUSTEE

 

Section 7.01        Certain
Duties and Responsibilities. (a) Except during the continuance of an Event of Default in respect of a Trust, (1) the Trustee
undertakes to perform such duties in respect of such Trust as are specifically set forth in this Agreement, the Intercreditor
Agreement and the Note Documents, and no implied covenants or obligations shall be read into such agreements against the Trustee;
and (2) in the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon certificates or opinions furnished to the Trustee and conforming to the requirements
of this Agreement; but in the case of any such certificates or opinions that by any provision hereof are specifically required
to be furnished to the Trustee, the Trustee shall be under a duty to examine the same to determine whether or not they conform
to the requirements of this Agreement.

 

(b)         In
case an Event of Default in respect of a Trust has occurred and is continuing, the Trustee shall exercise such of the rights and
powers vested in it by this Agreement in respect of such Trust, and use the same degree of care and skill in their exercise, as
a prudent person would exercise or use under the circumstances in the conduct of his or her own affairs.

 

(c)         No
provision of this Agreement shall be construed to relieve the Trustee from liability for its own negligent action, its own negligent
failure to act, or its own willful misconduct, except that:

 

(1)        this
Subsection (c) shall not be construed to limit the effect of Subsection (a) of this Section 7.01; and

 

(2)        the
Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer of the Trustee, unless it shall
be proved that the Trustee was negligent in ascertaining the pertinent facts.

 

(d)         Whether
or not herein expressly so provided, every provision of this Agreement relating to the conduct or affecting the liability of or
affording protection to the Trustee shall be subject to the provisions of this Section 7.01.

 

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Section 7.02        Notice
of Defaults. As promptly as practicable after, and in any event within 90 days after, the occurrence of any default (as such
term is defined below) hereunder known to the Trustee, the Trustee shall transmit by mail to the Company, any related Owners,
the related Loan Trustees and the Certificateholders holding Certificates of the related series, in the manner and to the extent
provided in Section 313(c) of the Trust Indenture Act, notice of such default hereunder known to the Trustee, unless such default
shall have been cured or waived; provided that, in the case of defaults not relating to the payment of money, the Trustee shall
not give such notice until the earlier of the time at which such default becomes an Event of Default and the expiration of 60
days from the occurrence of such default; and provided, however, that, except in the case of a default in the payment of the principal,
premium, if any, or interest on any Equipment Note, the Trustee shall be protected in withholding such notice if and so long as
the board of directors, the executive committee or a trust committee of directors and/or Responsible Officers of the Trustee in
good faith shall determine that the withholding of such notice is in the interests of the Certificateholders of the related series.
For the purpose of this Section 7.02 in respect of any Trust, the term “default” means any event that is, or after
notice or lapse of time or both would become, an Event of Default in respect of that Trust or a Triggering Event under any Intercreditor
Agreement.

 

Section 7.03        Certain
Rights of Trustee. Subject to the provisions of Section 315 of the Trust Indenture Act:

 

(a)         the
Trustee may rely and shall be protected in acting or refraining from acting in reliance upon any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond, debenture or other paper or document believed by
it to be genuine and to have been signed or presented by the proper party or parties;

 

(b)         any
request or direction of the Company mentioned herein shall be sufficiently evidenced by a Request;

 

(c)         whenever
in the administration of this Agreement or any Intercreditor Agreement the Trustee shall deem it desirable that a matter be proved
or established prior to taking, suffering or omitting any action hereunder, the Trustee (unless other evidence be herein specifically
prescribed) may, in the absence of bad faith on its part, rely upon an Officer’s Certificate of the Company, any related
Owner or any related Loan Trustee;

 

(d)         the
Trustee may consult with counsel and the advice of such counsel or any Opinion of Counsel shall be full and complete authorization
and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon;

 

(e)         the
Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Agreement or any Intercreditor
Agreement at the Direction of any of the Certificateholders pursuant to this Agreement or any Intercreditor Agreement, unless such
Certificateholders shall have offered to the Trustee reasonable security or indemnity against the cost, expenses and liabilities
which might be incurred by it in compliance with such Direction;

 

(f)         the
Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond, debenture or other paper or document;

 

    	 	36	 

     

    

  

(g)         the
Trustee may execute any of the trusts or powers under this Agreement or any Intercreditor Agreement or perform any duties under
this Agreement or any Intercreditor Agreement either directly or by or through agents or attorneys, and the Trustee shall not be
responsible for any misconduct or negligence on the part of any agent or attorney appointed with due care by it under this Agreement
or any Intercreditor Agreement;

 

(h)         the
Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the
Direction of the Certificateholders holding Certificates of any series evidencing Fractional Undivided Interests aggregating not
less than a majority in interest in the related Trust relating to the time, method and place of conducting any proceeding for any
remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee, under this Agreement or any Intercreditor
Agreement; and

 

(i)         the
Trustee shall not be required to expend or risk its own funds in the performance of any of its duties under this Agreement, or
in the exercise of any of its rights or powers, if it shall have reasonable grounds for believing that repayment of such funds
or adequate indemnity against such risk is not reasonably assured to it.

 

Section 7.04        Not
Responsible for Recitals or Issuance of Certificates. The recitals contained herein and in the Certificates of each series,
except the certificates of authentication, shall not be taken as the statements of the Trustee, and the Trustee assumes no responsibility
for their correctness. Subject to Section 7.15, the Trustee makes no representations as to the validity or sufficiency of this
Basic Agreement, any Equipment Notes, any Intercreditor Agreement, any Liquidity Facility to which the Trustee may be a party,
the Certificates of any series, any Trust Supplement or any Note Documents, except that the Trustee hereby represents and warrants
that this Basic Agreement has been, and each Trust Supplement, each Certificate, each Note Purchase Agreement, each Intercreditor
Agreement and any such Liquidity Facility of, or relating to, each series will be, executed and delivered by one of its officers
who is duly authorized to execute and deliver such document on its behalf.

 

Section 7.05        May
Hold Certificates. The Trustee, any Paying Agent, Registrar or any of their Affiliates or any other agent, in their respective
individual or any other capacity, may become the owner or pledgee of Certificates and, subject to Sections 310(b) and 311 of the
Trust Indenture Act, if applicable, may otherwise deal with the Company, any Owner, any Guarantor or the Loan Trustees with the
same rights it would have if it were not Trustee, Paying Agent, Registrar or such other agent.

 

Section 7.06        Money
Held in Trust. Money held by the Trustee or the Paying Agent in trust under this Agreement need not be segregated from other
funds except to the extent required herein or by law and neither the Trustee nor the Paying Agent shall have any liability for
interest upon any such moneys except as provided for herein or in the applicable Trust Supplement.

 

Section 7.07        Compensation
and Reimbursement. The Company agrees:

 

(1)        to
pay, or cause to be paid, to the Trustee from time to time such compensation for all services rendered by it hereunder as the Company
and the Trustee may agree in writing from time to time (which compensation shall not be limited by any provision of law in regard
to the compensation of a trustee of an express trust); and

 

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(2)        except
as otherwise expressly provided herein or in any Trust Supplement, to reimburse, or cause to be reimbursed, the Trustee upon its
request for all reasonable out-of-pocket expenses, disbursements and advances incurred or made by the Trustee in accordance with
any provision of this Basic Agreement, any Trust Supplement, any Intercreditor Agreement or any Liquidity Facility to which the
Trustee may be a party (including the reasonable compensation and the expenses and disbursements of its agents and counsel), except
any such expense, disbursement or advance as may be attributable to the Trustee’s negligence, willful misconduct or bad faith
or as may be incurred due to the Trustee’s breach of its representations and warranties set forth in Section 7.15; and

 

(3)        to
indemnify, or cause to be indemnified, the Trustee, solely in its individual capacity, for, and to hold it harmless against, any
loss, liability, tax (other than any tax referred to in the next paragraph or any tax attributable to the Trustee’s compensation
for serving as such), cost or expense incurred without negligence, willful misconduct or bad faith on its part, arising out of
or in connection with the acceptance or administration of any Trust, including the costs and expenses of (a) defending itself against
any claim or liability in connection with the exercise or performance of any of its powers or duties hereunder or under any Trust
Supplement or (b) contesting the imposition of any such tax, except in each case for any such loss, liability, tax, cost or expense
incurred by reason of the Trustee’s breach of its representations and warranties set forth in Section 7.15 or in any Trust
Supplement or the Trustee’s failure to perform any of its obligations hereunder or under any Trust Supplement. The Trustee
shall notify the Company promptly of any claim or tax for which it may seek indemnity. The Company shall defend the claim and the
Trustee shall cooperate in the defense. The Trustee may have separate counsel with the consent of the Company and the Company will
pay the reasonable fees and expenses of such counsel. The Company need not pay for any settlement made or any taxes paid, in settlement
or otherwise, without its consent.

 

The Trustee shall be entitled to reimbursement
from, and shall have a lien prior to the Certificates of each series upon, all property and funds held or collected by the Trustee
in its capacity as Trustee with respect to such series or the related Trust for any tax incurred without negligence, bad faith
or willful misconduct, on its part, arising out of or in connection with the acceptance or administration of such Trust (other
than any tax attributable to the Trustee’s compensation for serving as such), including any costs and expenses incurred in
contesting the imposition of any such tax. The Trustee shall notify the Company of any claim for any tax for which it may seek
reimbursement. If the Trustee reimburses itself from the Trust Property of such Trust for any such tax, it will mail a brief report
within 30 days setting forth the amount of such tax and the circumstances thereof to all Certificateholders of such series as their
names and addresses appear in the Register.

 

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Section 7.08        Corporate
Trustee Required; Eligibility. Each Trust shall at all times have a Trustee which shall be a bank, trust company or other
financial institution (a) organized and doing business under the laws of the United States or any state thereof, eligible to act
as a trustee under Section 310(a) of the Trust Indenture Act, authorized under such laws to exercise corporate trust powers and
subject to supervision or examination by United States federal or state authorities, having a combined capital and surplus of
at least $100,000,000 (or a combined capital and surplus in excess of $5,000,000 and the obligations of which, whether now in
existence or hereafter incurred, are fully and unconditionally guaranteed by a corporation organized and doing business under
the laws of the United States or any state or territory thereof or the District of Columbia and having a combined capital and
surplus of at least $100,000,000) and (b) not affiliated with the Company or any Owner. If such bank, trust company or other financial
institution or such corporation publishes reports of conditions at least annually, pursuant to law or to the requirements of federal,
state, territorial or District of Columbia supervising or examining authority, then for the purposes of this Section 7.08 the
combined capital and surplus of such bank, trust company or other financial institution or such corporation shall be deemed to
be its combined capital and surplus as set forth in its most recent report of conditions so published.

 

In case at any time the Trustee shall cease
to be eligible in accordance with the provisions of this Section 7.08 to act as Trustee of any Trust, the Trustee shall resign
immediately as Trustee of such Trust in the manner and with the effect specified in Section 7.09. If the Trustee has or shall acquire
a conflicting interest within the meaning of the Trust Indenture Act, the Trustee shall either eliminate such interest or resign,
to the extent and in the manner provided by, and subject to the provisions of, the Trust Indenture Act and this Agreement.

 

Section 7.09        Resignation
and Removal; Appointment of Successor. (a) No resignation or removal of the Trustee and no appointment of a successor Trustee
of any Trust pursuant to this Article VII shall become effective until the acceptance of appointment by the successor Trustee
under Section 7.10.

 

(b)         The
Trustee may resign at any time as Trustee of any or all Trusts by giving prior written notice thereof to the Company, the Authorized
Agents, any related Owners and the related Loan Trustees. If an instrument of acceptance by a successor Trustee shall not have
been delivered to the Company, any related Owners and the Trustee within 30 days after the giving of such notice of resignation,
the resigning Trustee may petition any court of competent jurisdiction for the appointment of a successor Trustee.

 

(c)         The
Trustee may be removed at any time as Trustee of any Trust by Direction of the Certificateholders of the related series holding
Certificates of such series evidencing Fractional Undivided Interests aggregating not less than a majority in interest in such
Trust delivered to the Trustee and to the Company, any related Owners and the related Loan Trustees.

 

(d)         If
at any time in respect of any Trust:

 

(1)        the
Trustee shall fail to comply with Section 310(b) of the Trust Indenture Act after written request therefor by the Company or by
any Certificateholder who has been a bona fide Certificateholder for at least six months;

 

(2)        the
Trustee shall cease to be eligible under Section 7.08 and shall fail to resign after written request therefor by the Company or
by any such Certificateholder; or

 

(3)        the
Trustee shall become incapable of acting or shall be adjudged a bankrupt or insolvent, or a receiver of the Trustee or of its property
shall be appointed or any public officer shall take charge or control of the Trustee or of its property or affairs for the purpose
of rehabilitation, conservation or liquidation;

 

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then, in any such case, (i) the Company may remove
the Trustee or (ii) any Certificateholder of the related series who has been a bona fide Certificateholder for at least
six months may, on behalf of itself and all others similarly situated, petition any court of competent jurisdiction for the removal
of the Trustee and the appointment of a successor Trustee of such Trust.

 

(e)         If
a Responsible Officer of the Trustee shall obtain actual knowledge of an Avoidable Tax (as defined below) in respect of any Trust
which has been or is likely to be asserted, the Trustee shall promptly notify the Company and shall, within 30 days of such notification,
either relocate the administration of the Trust to another jurisdiction as described in the definition of “Avoidable Tax”
or resign as Trustee of such Trust hereunder unless within such 30-day period the Trustee shall have received notice that the Company
has agreed to pay such tax. Provided that there is a corporation in a jurisdiction where there are no Avoidable Taxes that is willing
to act as Trustee and is eligible under Section 7.08, the Company shall promptly after any such resignation by such Trustee appoint
a successor Trustee of such Trust in a jurisdiction where there are no Avoidable Taxes. As used herein, an “Avoidable Tax”
in respect of such Trust means a state or local tax: (i) upon (w) such Trust, (x) the Trust Property of such Trust, (y) Certificateholders
of such Trust or (z) the Trustee for which the Trustee is entitled to seek reimbursement from the Trust Property of such Trust,
and (ii) which would be avoided if the Trust were administered in a different jurisdiction in the United States or if the Trustee
were located in another state, or jurisdiction within a state, within the United States. A tax shall not be an Avoidable Tax in
respect of any Trust if the Company or any Owner shall agree to pay, and shall pay, such tax.

 

(f)         If
the Trustee shall resign, be removed or become incapable of acting as Trustee of any Trust or if a vacancy shall occur in the office
of the Trustee of any Trust for any cause, the Company shall promptly appoint a successor Trustee of such Trust. If, within one
year after such resignation, removal or incapability, or other occurrence of such vacancy, a successor Trustee of such Trust shall
be appointed by Direction of the Certificateholders of the related series holding Certificates of such series evidencing Fractional
Undivided Interests aggregating not less than a majority in interest in such Trust delivered to the Company, any related Owners,
the related Loan Trustee and the retiring Trustee, then the successor Trustee of such Trust so appointed shall, with the approval
of the Company of such appointment, which approval shall not be unreasonably withheld, forthwith upon its acceptance of such appointment,
become the successor Trustee of such Trust and supersede the successor Trustee of such Trust appointed by the Company as provided
above. If no successor Trustee shall have been so appointed by the Company as provided above and accepted appointment in the manner
hereinafter provided, the resigning Trustee or any Certificateholder who has been a bona fide Certificateholder of the related
series for at least six months may, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction
for the appointment of a successor Trustee of such Trust.

 

(g)         The
successor Trustee of a Trust shall give notice of the resignation and removal of the Trustee and appointment of the successor Trustee
by mailing written notice of such event by first-class mail, postage prepaid, to the Certificateholders of the related series as
their names and addresses appear in the Register. Each notice shall include the name of such successor Trustee and the address
of its Corporate Trust Office.

 

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Section 7.10        Acceptance
of Appointment by Successor. Every successor Trustee appointed hereunder shall execute and deliver to the Company and to the
retiring Trustee with respect to any or all Trusts an instrument accepting such appointment, and thereupon the resignation or
removal of the retiring Trustee with respect to such Trust or Trusts shall become effective and such successor Trustee, without
any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring Trustee
with respect to such Trust or Trusts; but, on request of the Company or the successor Trustee, such retiring Trustee shall execute
and deliver an instrument transferring to such successor Trustee all such rights, powers and trusts of the retiring Trustee and
shall duly assign, transfer and deliver to such successor Trustee all Trust Property held by such retiring Trustee in respect
of such Trusts hereunder (subject nevertheless to its lien, if any, provided for in Section 7.07) and all books and records, or
true, correct and complete copies thereof, held by such retiring Trustee in respect of such Trusts hereunder. Upon request of
any such successor Trustee, the Company, the retiring Trustee and such successor Trustee shall execute and deliver any and all
instruments containing such provisions as shall be necessary or desirable to transfer and confirm to, and for more fully and certainly
vesting in, such successor Trustee all such rights, powers and trusts.

 

If a successor Trustee is appointed with respect
to one or more (but not all) Trusts, the Company, the predecessor Trustee and each successor Trustee with respect to any Trust
shall execute and deliver a supplemental agreement hereto which shall contain such provisions as shall be deemed necessary or desirable
to confirm that all of the rights, powers, trusts and duties of the predecessor Trustee with respect to the Trusts as to which
the predecessor Trustee is not retiring shall continue to be vested in the predecessor Trustee, and shall add to or change any
of the provisions of this Basic Agreement and the applicable Trust Supplements as shall be necessary to provide for or facilitate
the administration of the Trusts hereunder by more than one Trustee, it being understood that nothing herein or in such supplemental
agreement shall constitute such Trustees as co-Trustees of the same Trust and that each such Trustee shall be Trustee of separate
Trusts.

 

No institution shall accept its appointment
as a successor Trustee hereunder unless at the time of such acceptance such institution shall be qualified and eligible under this
Article VII.

 

Section 7.11        Merger,
Conversion, Consolidation or Succession to Business. Any corporation into which the Trustee may be merged or converted or
with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which the Trustee
shall be a party, or any corporation succeeding to all or substantially all of the corporate trust business of the Trustee, shall
be the successor of the Trustee hereunder, provided that such corporation shall be otherwise qualified and eligible under this
Article VII, without the execution or filing of any paper or any further act on the part of any of the parties hereto. In case
any Certificates shall have been executed or authenticated, but not delivered, by the Trustee then in office, any successor by
merger, conversion or consolidation to such authenticating Trustee may adopt such execution or authentication and deliver the
Certificates so executed or authenticated with the same effect as if such successor Trustee had itself executed or authenticated
such Certificates.

 

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Section 7.12        Maintenance
of Agencies. (a) With respect to each series of Certificates, there shall at all times be maintained an office or agency in
the location set forth in Section 12.04 or at such other location as may be specified in the applicant Trust Supplement where
Certificates of such series may be presented or surrendered for registration of transfer or for exchange, and for payment thereof,
and where notices and demands to or upon the Trustee in respect of such Certificates or this Agreement may be served; provided
that, if it shall be necessary that the Trustee maintain an office or agency in another location with respect to the Certificates
of any series (e.g., the Certificates of such series shall be represented by Definitive Certificates and shall be listed on a
national securities exchange), the Trustee will make all reasonable efforts to establish such an office or agency. Written notice
of the location of each such other office or agency and of any change of location thereof shall be given by the Trustee to the
Company, any Owners, the Loan Trustees (in the case of any Owner or Loan Trustee, at its address specified in the Note Documents
or such other address as may be notified to the Trustee) and the Certificateholders of such series. In the event that no such
office or agency shall be maintained or no such notice of location or of change of location shall be given, presentations and
demands may be made and notices may be served at the Corporate Trust Office of the Trustee.

 

(b)         There
shall at all times be a Registrar and a Paying Agent hereunder with respect to the Certificates of each series. Each such Authorized
Agent shall be a bank, trust company or other financial institution organized and doing business under the laws of the United States
or any state thereof, with a combined capital and surplus of at least $100,000,000 (or combined capital and surplus in excess of
$5,000,000, the obligations of which are fully and unconditionally guaranteed by a corporation organized and doing business under
the laws of the United States or any state or territory thereof or the District of Columbia, with a combined capital and surplus
of at least $100,000,000), and shall be authorized under such laws to exercise corporate trust powers, subject to supervision by
federal or state authorities. The Trustee shall initially be the Paying Agent and, as provided in Section 3.04, Registrar hereunder
with respect to the Certificates of each series. Each Registrar other than the Trustee shall furnish to the Trustee, at stated
intervals of not more than six months, and at such other times as the Trustee may request in writing, a copy of the Register maintained
by such Registrar.

 

(c)         Any
corporation, bank or trust company into which any Authorized Agent may be merged or converted or with which it may be consolidated,
or any corporation, bank or trust company resulting from any merger, consolidation or conversion to which any Authorized Agent
shall be a party, or any corporation, bank or trust company succeeding to the corporate trust business of any Authorized Agent,
shall be the successor of such Authorized Agent, if such successor is otherwise eligible under this Section 7.12, without the execution
or filing of any paper or any further act on the part of the parties hereto or such Authorized Agent or such successor.

 

(d)         Any
Authorized Agent may at any time resign by giving written notice of resignation to the Trustee, the Company, any related Owners
and the related Loan Trustees. The Company may, and at the request of the Trustee shall, at any time terminate the agency of any
Authorized Agent by giving written notice of termination to such Authorized Agent and to the Trustee. Upon the resignation or termination
of an Authorized Agent or in case at any time any such Authorized Agent shall cease to be eligible under this Section 7.12 (when,
in either case, no other Authorized Agent performing the functions of such Authorized Agent shall have been appointed), the Company
shall promptly appoint one or more qualified successor Authorized Agents, reasonably satisfactory to the Trustee, to perform the
functions of the Authorized Agent which has resigned or whose agency has been terminated or who shall have ceased to be eligible
under this Section 7.12. The Company shall give written notice of any such appointment made by it to the Trustee, any related Owners
and the related Loan Trustees; and in each case the Trustee shall mail notice of such appointment to all Certificateholders of
the related series as their names and addresses appear on the Register for such series.

 

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(e)         The
Company agrees to pay, or cause to be paid, from time to time to each Authorized Agent such compensation for its services as the
Company and the Trustee may agree in writing from time to time and to reimburse it for its reasonable expenses to the extent set
forth in Section 7.07(2).

 

Section 7.13        Money
for Certificate Payments to Be Held in Trust. All moneys deposited with any Paying Agent for the purpose of any payment on
Certificates shall be deposited and held in trust for the benefit of the Certificateholders entitled to such payment, subject
to the provisions of this Section 7.13. Moneys so deposited and held in trust shall constitute a separate trust fund for the benefit
of the Certificateholders with respect to which such money was deposited.

 

The Trustee may at any time, for the purpose
of obtaining the satisfaction and discharge of this Agreement or for any other purpose, direct any Paying Agent to pay to the Trustee
all sums held in trust by such Paying Agent, such sums to be held by the Trustee upon the same trusts as those upon which such
sums were held by such Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying Agent shall be released
from all further liability with respect to such money.

 

Section 7.14        Registration
of Equipment Notes in Trustee’s Name. Subject to the provisions of any Intercreditor Agreement and Section 12.03 hereof,
the Trustee agrees that all Equipment Notes to be purchased by any Trust, Specified Investments, if any, to be held by the Trustee
on behalf of a Trust and Permitted Investments, if any, to be held by the Trustee on behalf of a Trust shall be issued in the
name of the Trustee as trustee for the applicable Trust or its nominee and held by the Trustee in trust for the benefit of the
Certificateholders of such series, or, if not so held, the Trustee or its nominee shall be reflected as the owner of such Equipment
Notes, Specified Investments or Permitted Investments, as the case may be, in the register of the issuer of such Equipment Notes,
Specified Investments or Permitted Investments, as the case may be. In no event shall the Trustee invest in, or hold, Equipment
Notes, Specified Investments or Permitted Investments in a manner that would cause the Trustee not to have the ownership interest
in (or a securities entitlement with respect to) such Equipment Notes, Specified Investments or Permitted Investments under the
applicable provisions of the Uniform Commercial Code in effect where the Trustee holds such Equipment Notes, Specified Investments
or Permitted Investments or other applicable law then in effect.

 

Section 7.15        Representations
and Warranties of Trustee. The Trustee hereby represents and warrants that:

 

(a)         the
Trustee is a trust company duly organized and validly existing in good standing under the laws of the State of Delaware;

 

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(b)         the
Trustee has full power, authority and legal right to execute, deliver and perform this Agreement, any Intercreditor Agreement,
any Liquidity Facility, the Certificates and the Note Purchase Agreements and has taken all necessary action to authorize the execution,
delivery and performance by it of this Agreement, any Intercreditor Agreement, any Liquidity Facility, the Certificates and the
Note Purchase Agreements;

 

(c)         the
execution, delivery and performance by the Trustee of this Agreement, any Intercreditor Agreement, any Liquidity Facility, the
Certificates and the Note Purchase Agreements (i) will not violate any provision of any United States federal law governing its
trust powers or the law of the state of the United States where such Trustee is located and which governs the trust powers of the
Trustee or any order, writ, judgment, or decree of any court, arbitrator or governmental authority applicable to the Trustee or
any of its assets, (ii) will not violate any provision of the charter or by-laws of the Trustee, and (iii) will not violate any
provision of, or constitute, with or without notice or lapse of time or both, a default under, or result in the creation or imposition
of any lien on any properties included in the Trust Property pursuant to the provisions of any mortgage, indenture, contract, agreement
or other undertaking to which it is a party;

 

(d)         the
execution, delivery and performance by the Trustee of this Agreement, any Intercreditor Agreement, any Liquidity Facility, the
Certificates and the Note Purchase Agreements will not require the authorization, consent, or approval of, the giving of notice
to, the filing or registration with, or the taking of any other action in respect of, any governmental authority or agency of the
United States or the state of the United States where such Trustee is located and regulating the corporate trust activities of
the Trustee, other than the filing of a Statement of Eligibility on Form T-1 in connection with any registration of any Certificates;

 

(e)         this
Agreement, any Intercreditor Agreement, any Liquidity Facility, the Certificates and the Note Purchase Agreements have been or
will be duly executed and delivered by the Trustee and constitute or upon such execution and delivery will constitute the legal,
valid and binding agreements of the Trustee, enforceable against it in accordance with their respective terms; provided, however,
that enforceability may be limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
the rights of creditors generally, and (ii) general principles of equity; and

 

(f)         the
statements made by it in any Statement of Eligibility on Form T-1 to be supplied to the Company in connection with the registration
of any Certificates will be true and accurate, subject to the qualifications set forth therein; and that such statement will comply
in all material respects with the requirements of the Trust Indenture Act and the Securities Act.

 

The representation and warranties set forth
above shall be deemed to be made by the Trustee on each Issuance Date, except as otherwise provided in the applicable Trust Supplement.

 

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Section 7.16        Withholding
Taxes; Information Reporting. As to the Certificates of any series, the Trustee, as trustee of the related grantor trust created
by this Agreement, shall exclude and withhold from each distribution of principal, premium, if any, and interest and other amounts
due under this Agreement or under the Certificates of such series any and all withholding taxes applicable thereto as required
by law. The Trustee agrees to act as such withholding agent and, in connection therewith, whenever any present or future taxes
or similar charges are required to be withheld with respect to any amounts payable in respect of the Certificates of such series,
to withhold such amounts and timely pay the same to the appropriate authority in the name of and on behalf of the Certificateholders
of such series, that it will file any necessary withholding tax returns or statements when due, and that, as promptly as possible
after the payment thereof, it will deliver to each such Certificateholder of such series appropriate documentation showing the
payment thereof, together with such additional documentary evidence as such Certificateholders may reasonably request from time
to time. The Trustee agrees to file any other information reports as it may be required to file under United States law.

 

Section 7.17        Trustee’s
Liens. The Trustee in its individual capacity agrees that it will, in respect of each Trust created by this Agreement, at
its own cost and expense (and without right of indemnity hereunder, including Section 7.07), promptly take any action as may be
necessary to duly discharge and satisfy in full any mortgage, pledge, lien, charge, encumbrance, security interest or claim (“Trustee’s
Liens”) on or with respect to the Trust Property of such Trust which is attributable to the Trustee either (i) in its individual
capacity and which is unrelated to the transactions contemplated by this Agreement or the related Note Documents or (ii) as Trustee
hereunder or in its individual capacity and which arises out of acts or omissions which are not contemplated by this Agreement.

 

Section 7.18        Preferential
Collection of Claims. The Trustee shall comply with Section 311(a) of the Trust Indenture Act, excluding any creditor relationship
listed in Section 311(b) of the Trust Indenture Act. If the Trustee shall resign or be removed as Trustee, it shall be subject
to Section 311(a) of the Trust Indenture Act to the extent provided therein.

 

Section 7.19        Capacity
in Which Acting. The Trustee acts hereunder and under any Trust not in its individual capacity but solely as trustee except
as expressly provided herein or in the related Trust Supplement.

 

Article
VIII.

CERTIFICATEHOLDERS’ LISTS AND REPORTS BY TRUSTEE

 

Section 8.01        The
Company to Furnish Trustee with Names and Addresses of Certificateholders. With respect to the Certificates of each series,
the Company will furnish (or cause to be furnished) to the Trustee within 15 days after each Record Date with respect to a Scheduled
Payment (and, in any case, at intervals of not more than six months), and at such other times as the Trustee may request in writing
within 30 days after receipt by the Company of any such request, a list, in such form as the Trustee may reasonably require, of
all information in the possession or control of the Company as to the names and addresses of the Certificateholders of such series,
in each case as of a date not more than 15 days prior to the time such list is furnished; provided, however, that so long as the
Trustee is the sole Registrar for such series, no such list need be furnished; and provided further, that no such list need be
furnished for so long as a copy of the Register is being furnished to the Trustee pursuant to Section 7.12.

 

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Section 8.02        Preservation
of Information; Communications to Certificateholders. The Trustee shall preserve, in as current a form as is reasonably practicable,
the names and addresses of Certificateholders of each series contained in the most recent list furnished to the Trustee as provided
in Section 7.12 or Section 8.01, as the case may be, and the names and addresses of Certificateholders of each series received
by the Trustee in its capacity as Registrar, if so acting. The Trustee may destroy any list furnished to it as provided in Section
7.12 or Section 8.01, as the case may be, upon receipt of a new list so furnished.

 

Section 8.03        Reports
by Trustee. Within 60 days after May 15 of each year commencing with the first full year following the issuance of any series
of Certificates, the Trustee shall transmit to the Certificateholders of such series, as provided in Section 313(c) of the Trust
Indenture Act, a brief report dated as of such May 15, if required by and in compliance with Section 313(a) of the Trust Indenture
Act. The Trustee shall also transmit to Certificateholders such reports, if any, as may be required pursuant to Section 313(b)
of the Trust Indenture Act at the times and in the manner provided pursuant thereto and to Section 313(c) thereof.

 

Section 8.04        Reports
by the Company. The Company shall:

 

(a)         file
with the Trustee (i) an English language version of the Company’s annual audited consolidated financial statements prepared
in accordance with IFRS promptly upon such financial statements becoming available but in no case later than 120 days after the
close of its fiscal year; (ii) an English language version of the Company’s unaudited quarterly financial statements prepared
in accordance with IFRS promptly upon such financial statements becoming available but in no case later than 60 days after the
close of each fiscal quarter (other than the last fiscal quarter of its fiscal year), and (iii) without duplication, English language
versions or summaries of such other reports or notices as may be filed or submitted by (and promptly after filing or submission
by) the Company with (x) the SVS or (y) the SEC (in each case, to the extent that any such report or notice is generally available
to its security holders or the public in the Republic of Chile or elsewhere and, in the case of clause (y) is filed or submitted
pursuant to Rule 12g3-2(b) under, or Section 13 or 15(d) of, the Exchange Act, or otherwise); provided that the requirements
of the Company under this Section 8.04(a) shall be deemed fulfilled if such report has been filed with or submitted to the SEC
through the Electronic Data Gathering Analysis and Retrieval (EDGAR) system (or any successor method of filing) or if such report
is made available on the SEC’s or the Company’s website (and the Company shall provide the relevant URL to the Trustee
upon request);

 

(b)         file
with the Trustee and the SEC, in accordance with the rules and regulations prescribed by the SEC, such additional information,
documents and reports with respect to compliance by the Company with the conditions and covenants of the Company provided for in
this Agreement, as may be required by such rules and regulations;

 

(c)         transmit
to all Certificateholders, in the manner and to the extent provided in Section 313(c) of the Trust Indenture Act, such summaries
of any information, documents and reports required to be filed by the Company pursuant to subsections (a) and (b) of this Section
8.44 as may be required by rules and regulations prescribed by the SEC; and

 

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(d)         furnish
to the Trustee, not less often than annually, a brief certificate from the principal executive officer, principal financial officer
or principal accounting officer as to his or her knowledge of the Company’s compliance with all conditions and covenants
of the Company under this Agreement (it being understood that for purposes of this paragraph (d), such compliance shall be determined
without regard to any grace period or requirement of notice provided under this Agreement).

 

Article
IX.

SUPPLEMENTAL AGREEMENTS

 

Section 9.01        Supplemental
Agreements Without Consent of Certificateholders. Without the consent of any Certificateholders, the Company may (but will
not be required to), and the Trustee (subject to Section 9.03) shall, at the Company’s request, at any time and from time
to time, enter into one or more agreements supplemental hereto or, if applicable, to an Intercreditor Agreement, a Note Purchase
Agreement, a Liquidity Facility or a Guarantee, for any of the following purposes:

 

(1)        to
provide for the formation of a Trust, the issuance of a series of Certificates and other matters contemplated by Section 2.01(b)
or to add, or to change or eliminate, any provision affecting a series of Certificates not yet issued, including to make appropriate
provisions for any Guarantee; or

 

(2)        to
evidence the succession of another Person to the Company and the assumption by any such successor of the covenants of the Company
contained in this Agreement or of the Company’s obligations under any Intercreditor Agreement, any Note Purchase Agreement
or any Liquidity Facility; or

 

(3)        to
add to the covenants of the Company or any Guarantor for the benefit of the Certificateholders of any series, or to surrender any
right or power conferred upon the Company or any Guarantor in this Agreement, any Note Purchase Agreement, any Intercreditor Agreement,
any Liquidity Facility or any Guarantee; or

 

(4)        to
cure any ambiguity or to correct any mistake or inconsistency contained in the Certificates of any series, in this Basic Agreement
or in any related Trust Supplement, any Intercreditor Agreement, any Note Purchase Agreement, any Liquidity Facility or any Guarantee;
or

 

(5)        to
make or modify any other provision in regard to matters or questions arising under the Certificates of any series, this Basic Agreement
or any related Trust Supplement, any Intercreditor Agreement, any Note Purchase Agreement, any Liquidity Facility or any Guarantee
as the Company may deem necessary or desirable and that will not materially adversely affect the interests of the related Certificateholders;
or

 

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

 

    	 	47	 

     

    

  

(7)        to
modify, eliminate or add to the provisions of this Agreement, any Intercreditor Agreement, any Liquidity Facility or any Guarantee
to such extent as shall be necessary to continue or obtain the qualification of this Agreement (including any supplemental agreement),
any Intercreditor Agreement, any Liquidity Facility or any Guarantee under the Trust Indenture Act or under any similar Federal
statute hereafter enacted, and to add to this Agreement, any Intercreditor Agreement, any Liquidity Facility or any Guarantee such
other provisions as may be expressly permitted by the Trust Indenture Act, excluding, however, the provisions referred to in Section
316(a)(2) of the Trust Indenture Act as in effect at the date as of which this Basic Agreement was executed or any corresponding
provision in any similar Federal statute hereafter enacted; or

 

(8)        to
evidence and provide for the acceptance of appointment by a successor Trustee under this Agreement, any Intercreditor Agreement,
any Note Purchase Agreement, any Indenture, any Liquidity Facility or any Guarantee with respect to one or more Trusts and to add
to or change any of the provisions of this Agreement, any Intercreditor Agreement, any Liquidity Facility or any Guarantee as shall
be necessary to provide for or facilitate the administration of the Trust hereunder and thereunder by more than one Trustee, pursuant
to the requirements of Section 7.10, or to provide multiple Liquidity Facilities with respect to one or more Trusts; or

 

(9)        to
provide the information required under Section 7.12 and Section 12.04 as to the Trustee; or

 

(10)        to
add to or change any of the provisions of the Certificates of any series, this Basic Agreement or any Trust Supplement to such
extent as shall be necessary to facilitate or provide for the issuance of Certificates of such series in global form in addition
to or in place of Certificates in certificated form; or

 

(11)        to
provide for the delivery of agreements supplemental hereto or the Certificates of any series in or by any means of any computerized,
electronic or other medium, including without limitation by computer diskette; or

 

(12)        to
correct or supplement the description of any property constituting property of such Trust; or

 

(13)        to
modify, eliminate or add to the provisions of this Basic Agreement, any Trust Supplement or any applicable Note Purchase Agreement
in order to reflect the substitution of a Substitute Aircraft for any aircraft; or

 

(14)        to
comply with any requirement of the SEC in connection with the qualification of this Agreement, any Guarantee or any other agreement
or instrument related to the Certificates of any series under the Trust Indenture Act; or

 

(15)        to
make any other amendments or modifications hereto, provided that such amendments or modifications shall only apply to Certificates
of one or more series to be thereafter issued;

 

    	 	48	 

     

    

  

provided, however, that, except to the extent otherwise provided
in the applicable supplemental agreement, unless there shall have been obtained from each Rating Agency written confirmation that
such supplemental agreement would not result in a reduction of the rating for any class of Certificates below the then current
rating for such class of Certificates or a withdrawal or suspension of the rating of any class of Certificates, the Company shall
provide the Trustee with an opinion of counsel (i) if an Event of Default shall have occurred and be continuing, to the effect
that such supplemental agreement will not cause the Trust to become an association taxable as a corporation for United States federal
income tax purposes or (ii) in other circumstances, to the effect that such supplemental agreement will not cause the Trust to
be treated as other than a grantor trust for United States federal income tax purposes.

 

Section 9.02        Supplemental
Agreements with Consent of Certificateholders. With respect to each separate Trust and the series of Certificates relating
thereto, with the consent of the Certificateholders holding Certificates of such series (including consents obtained in connection
with a consent solicitation, tender offer or exchange offer for the Certificates) evidencing Fractional Undivided Interests aggregating
not less than a majority in interest in such Trust, by Direction of said Certificateholders delivered to the Company and the Trustee,
the Company may (with the consent of any Owner relating to such Certificates, which consent shall not be unreasonably withheld),
but shall not be obligated to, and the Trustee (subject to Section 9.03) shall, enter into an agreement or agreements supplemental
hereto for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Agreement,
any Intercreditor Agreement, any Liquidity Facility or any Guarantee to the extent applicable to such Certificateholders or of
modifying in any manner the rights and obligations of such Certificateholders under this Agreement, any Intercreditor Agreement,
any Liquidity Facility or any Guarantee; provided, however, that no such agreement shall, without the consent of the Certificateholder
of each Outstanding Certificate adversely affected thereby:

 

(1)        reduce
in any manner the amount of, or delay the timing of, any receipt by the Trustee of payments on the Equipment Notes held in such
Trust or distributions that are required to be made herein on any Certificate of such series, or change any date of payment on
any Certificate of such series, or change the place of payment where, or the coin or currency in which, any Certificate of such
series is payable (other than as provided for in such Certificate), or impair the right to institute suit for the enforcement of
any such payment or distribution on or after the Regular Distribution Date or Special Distribution Date applicable thereto; or

 

(2)        except
as permitted by this Agreement or the applicable Intercreditor Agreement or Liquidity Facility, permit the disposition of any Equipment
Note included in the Trust Property of such Trust or otherwise deprive such Certificateholder of the benefit of the ownership of
the Equipment Notes in such Trust; or

 

(3)        alter
the priority of distributions specified in the relevant Intercreditor Agreement, if any, in a manner materially adverse to the
interests of the Certificateholders of any series; or

 

    	 	49	 

     

    

  

(4)        modify
any of the provisions of this Section 9.02 with respect to such series of Certificates, except to increase the specified percentage
of the aggregate Fractional Undivided Interests of such Trust that is required for any supplemental agreement as set forth therein,
or to provide that certain other provisions of this Agreement cannot be modified or waived without the consent of the Certificateholder
of each Certificate of such series affected thereby; or

 

(5)        cause
any Trust to become an association taxable as a corporation for United States federal income tax purposes.

 

It shall not be necessary for any Direction
of such Certificateholders under this Section 9.02 to approve the particular form of any proposed supplemental agreement, but it
shall be sufficient if such Direction shall approve the substance thereof.

 

Section 9.03        Documents
Affecting Immunity or Indemnity. If in the opinion of the Trustee any document required to be executed by it pursuant to the
terms of Section 9.01 or 9.02 affects any interest, right, duty, immunity or indemnity in favor of the Trustee under this Basic
Agreement or any Trust Supplement, the Trustee may in its discretion decline to execute such document.

 

Section 9.04        Execution
of Supplemental Agreements. In executing, or accepting the additional trusts created by, any supplemental agreement permitted
by this Article IX or the modifications thereby of the trusts created by this Agreement, the Trustee shall be entitled to receive,
and shall be fully protected in relying upon, an Opinion of Counsel stating that the execution of such supplemental agreement
is authorized or permitted by this Agreement.

 

Section 9.05        Effect
of Supplemental Agreements. Upon the execution of any agreement supplemental to this Agreement under this Article IX, this
Agreement shall be modified in accordance therewith, and such supplemental agreement shall form a part of this Agreement for all
purposes, and every Certificateholder of each series theretofore or thereafter authenticated and delivered hereunder shall be
bound thereby to the extent applicable to such series.

 

Section 9.06        Conformity
with Trust Indenture Act. Every supplemental agreement executed pursuant to this Article IX shall conform to the requirements
of the Trust Indenture Act, except to the extent described herein.

 

Section 9.07        Reference
in Certificates to Supplemental Agreements. Certificates of each series authenticated and delivered after the execution of
any supplemental agreement applicable to such series pursuant to this Article IX may bear a notation in form approved by the Trustee
as to any matter provided for in such supplemental agreement; and, in such case, suitable notation may be made upon Outstanding
Certificates of such series after proper presentation and demand.

 

    	 	50	 

     

    

  

Article
X.

AMENDMENTS TO INDENTURES AND OTHER NOTE DOCUMENTS

 

Section 10.01        Amendments
and Supplements to Indentures and Other Note Documents. In the event that the Trustee, as holder (or beneficial owner through
the Subordination Agent) of any Equipment Notes (or as a prospective purchaser of any Postponed Notes) in trust for the benefit
of the Certificateholders of any series or as Controlling Party under an Intercreditor Agreement, receives (directly or indirectly
through the Subordination Agent) a request for a consent to any amendment, modification, waiver or supplement under any Indenture
or other Note Document, subject to Section 9.01 hereof, the Trustee shall forthwith send a notice of such proposed amendment,
modification, waiver or supplement to each Certificateholder of such series registered on the Register as of the date of such
notice. The Trustee shall request from the Certificateholders of such series a Direction as to (a) whether or not to take or refrain
from taking (or direct the Subordination Agent to take or refrain from taking) any action which a holder of (or, with respect
to Postponed Notes, a prospective purchaser of) such Equipment Note has the option to direct, (b) whether or not to give or execute
(or direct the Subordination Agent to give or execute) any waivers, consents, amendments, modifications or supplements as a holder
of (or, with respect to Postponed Notes, a prospective purchaser of) such Equipment Note or a Controlling Party and (c) how to
vote (or direct the Subordination Agent to vote) any Equipment Note (or, with respect to a Postponed Note, its commitment to acquire
such Postponed Note) if a vote has been called for with respect thereto. Provided such a request for Certificateholder Direction
shall have been made, in directing any action or casting any vote or giving any consent as the holder of any Equipment Note (or
in directing the Subordination Agent in any of the foregoing), (i) other than as Controlling Party, the Trustee shall vote for
or give consent to any such action with respect to such Equipment Note (or Postponed Note) in the same proportion as that of (A)
the aggregate face amount of all Certificates actually voted in favor of or for giving consent to such action by such Direction
of Certificateholders to (B) the aggregate face amount of all Outstanding Certificates and (ii) as Controlling Party, the Trustee
shall vote as directed in such Certificateholder Direction by the Certificateholders of such series evidencing a Fractional Undivided
Interest aggregating not less than a majority in interest in the Trust. For purposes of the immediately preceding sentence, a
Certificate shall have been “actually voted” if the Holder of such Certificate has delivered to the Trustee an instrument
evidencing such Holder’s consent to such Direction prior to one Business Day before the Trustee directs such action or casts
such vote or gives such consent. Notwithstanding the foregoing, but subject to Section 6.04 and any Intercreditor Agreement, the
Trustee may, with respect to the Certificates of any series, in its own discretion and at its own direction, consent and notify
the relevant Loan Trustee of such consent (or direct the Subordination Agent to consent and notify the Loan Trustee of such consent)
to any amendment, modification, waiver or supplement under any related Indenture or any other related Note Document if an Event
of Default hereunder shall have occurred and be continuing or if such amendment, modification, waiver or supplement will not materially
adversely affect the interests of the Certificateholders of such series.

 

Article
XI.

TERMINATION OF TRUSTS

 

Section
11.01        Termination of the Trusts. In respect of each Trust created
by the Basic Agreement as supplemented by a related Trust Supplement, the respective obligations and responsibilities of the
Company and the Trustee with respect to such Trust shall terminate upon the distribution to all Holders of Certificates of
the series of such Trust and the Trustee of all amounts required to be distributed to them pursuant to this Agreement and the
disposition of all property held as part of the Trust Property of such Trust; provided, however, that in no event shall such
Trust continue beyond the final expiration date determined as provided in such Trust Supplement.

 

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Notice of any termination of a Trust, specifying
the applicable Regular Distribution Date (or applicable Special Distribution Date, as the case may be) upon which the Certificateholders
of any series may surrender their Certificates to the Trustee for payment of the final distribution and cancellation, shall be
mailed promptly by the Trustee to Certificateholders of such series not earlier than 60 days and not later than 15 days preceding
such final distribution specifying (i) the Regular Distribution Date (or Special Distribution Date, as the case may be) upon which
the proposed final payment of the Certificates of such series will be made upon presentation and surrender of Certificates of such
series at the office or agency of the Trustee therein specified, (ii) the amount of any such proposed final payment, and (iii)
that the Record Date otherwise applicable to such Regular Distribution Date (or Special Distribution Date, as the case may be)
is not applicable, payments being made only upon presentation and surrender of the Certificates of such series at the office or
agency of the Trustee therein specified. The Trustee shall give such notice to the Registrar at the time such notice is given to
Certificateholders of such series. Upon presentation and surrender of the Certificates of such series in accordance with such notice,
the Trustee shall cause to be distributed to Certificateholders of such series amounts distributable on such Regular Distribution
Date (or Special Distribution Date, as the case may be) pursuant to Section 4.02.

 

In the event that all of the Certificateholders
of such series shall not surrender their Certificates for cancellation within six months after the date specified in the above-mentioned
written notice, the Trustee shall give a second written notice to the remaining Certificateholders of such series to surrender
their Certificates for cancellation and receive the final distribution with respect thereto. No additional interest shall accrue
on the Certificates of such series after any Regular Distribution Date (or Special Distribution Date, as the case may be) of such
series, as specified in the first written notice. In the event that any money held by the Trustee for the payment of distributions
on the Certificates of such series shall remain unclaimed for two years (or such lesser time as the Trustee shall be satisfied,
after 60 days’ notice from the Company, is one month prior to the escheat period provided under applicable law) after the
final distribution date with respect thereto, the Trustee shall pay to each Loan Trustee the appropriate amount of money relating
to such Loan Trustee for distribution as provided in the applicable Indenture or other Note Documents and shall give written notice
thereof to any related Owner and the Company.

 

Article
XII.

MISCELLANEOUS PROVISIONS

 

Section
12.01        Limitation on Rights of Certificateholders. (a) The
insolvency, death or incapacity of any Certificateholder of any series shall not operate to terminate this Agreement or the
related Trust, nor entitle such Certificateholder’s legal representatives or heirs to claim an accounting or to take
any action or commence any proceeding in any court for a partition or winding up of the Trust, nor otherwise affect the
rights, obligations and liabilities of the parties hereto or any of them. No Certificateholder of any series shall be
entitled to revoke the related Trust.

 

    	 	52	 

     

    

 

(b)         No
transfer, by operation of law or otherwise, of any Certificate or other right, title and interest of any Certificateholder in and
to the applicable Trust Property or under the related Trust shall operate to terminate the Trust or entitle such Certificateholder
or any successor or transferee of such Certificateholder to an accounting or to the transfer to it of legal title to any part of
such Trust Property.

 

Section 12.02        Certificates
Nonassessable and Fully Paid. Certificateholders of each series shall not be personally liable for obligations of the related
Trust, the Fractional Undivided Interests represented by the Certificates of such series shall be nonassessable for any losses
or expenses of such Trust or for any reason whatsoever, and Certificates of such series upon authentication thereof by the Trustee
pursuant to Section 3.02 are and shall be deemed fully paid. No Certificateholder of such series shall have any right (except
as expressly provided herein) to vote or in any manner otherwise control the operation and management of the related Trust Property,
the related Trust, or the obligations of the parties hereto, nor shall anything set forth herein, or contained in the terms of
the Certificates of such series, be construed so as to constitute the Certificateholders of such series from time to time as partners
or members of an association.

 

Section 12.03        Registration
of Equipment Notes in Name of Subordination Agent. If a Trust is party to an Intercreditor Agreement, the Trustee agrees that
all Equipment Notes to be purchased by such Trust may be issued in the name of the Subordination Agent under such Intercreditor
Agreement or its nominee and held by such Subordination Agent in trust for the benefit of the Certificateholders, or, if not so
held, such Subordination Agent or its nominee shall be reflected as the owner of such Equipment Notes in the register of the issuer
of such Equipment Notes.

 

Section 12.04        Notices.
(a) Unless otherwise expressly specified or permitted by the terms hereof or in the applicable Trust Supplement with respect to
any Trust created thereby, all notices required or permitted under the terms and provisions of this Basic Agreement or such Trust
Supplement shall be in English and in writing, and any such notice may be given by U.S. mail, courier service or facsimile or
any other customary means of communication, and any such notice shall be effective when delivered (or, if mailed, three Business
Days after deposit, postage prepaid, in the first class U.S. mail and, if delivered by facsimile, upon completion of transmission
and confirmation by the sender (by a telephone call to a representative of the recipient or by machine confirmation) that the
transmission was received),

 

if to the Company, to:

 

LATAM Airlines Group S.A.

Pdte. Riesco 5711, 20th Floor

Las Condes, Santiago, Chile

 

Telephone: +(56-2)2 565 3952

Facsimile: +(56-2)2 565 8764

 

    	 	53	 

     

    

  

if to the Trustee, to:

 

Wilmington Trust Company

1100 North Market Street

Wilmington, DE 19890

Attn: Corporate Trust Admin/Drew Davis

Telephone: 302-636-6182

Facsimile: 302-636-4140

Email: DHDavis@wilmingtontrust.com

 

(b)         The
Company or the Trustee, by notice to the other, may designate additional or different addresses for subsequent notices or communications.

 

(c)        Any
notice or communication to Certificateholders of any series shall be mailed by first-class mail to the addresses for Certificateholders
of such series shown on the Register kept by the Registrar and to addresses filed with the Trustee for Certificate Owners of such
series. Failure so to mail a notice or communication or any defect in such notice or communication shall not affect its sufficiency
with respect to other Certificateholders or Certificate Owners of such series.

 

(d)         If
a notice or communication is mailed in the manner provided above, it is conclusively presumed to have been duly given, whether
or not the addressee receives it.

 

(e)         If
the Company mails a notice or communication to the Certificateholders of such series, it shall mail a copy to the Trustee and to
each Paying Agent for such series at the same time.

 

(f)         The
Trustee shall promptly furnish the Company with a copy of any report, demand, notice or written communication received by the Trustee
hereunder from, or sent or furnished by the Trustee hereunder to any Certificateholder, Certificate Owner, Owner, Loan Trustee,
Liquidity Provider, Subordination Agent or other Person.

 

Section 12.05        Governing
Law. THIS BASIC AGREEMENT HAS BEEN DELIVERED IN THE STATE OF NEW YORK AND THIS BASIC AGREEMENT, TOGETHER WITH ALL TRUST SUPPLEMENTS
AND CERTIFICATES, SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, INCLUDING ALL MATTERS
OF CONSTRUCTION, VALIDITY AND PERFORMANCE, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER AND THEREUNDER SHALL
BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 

Section 12.06        Severability
of Provisions. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions
hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision
in any other jurisdiction.

 

    	 	54	 

     

    

  

Section 12.07        Trust
Indenture Act Controls. This Agreement is subject to the provisions of the Trust Indenture Act and if any provision of this
Agreement limits, qualifies or conflicts with another provision which is required to be included in this Agreement by the Trust
Indenture Act, the required provision shall control. If any provision of this Agreement modifies or excludes any provision of
the Trust Indenture Act that may be so modified or excluded, the latter provision shall be deemed to apply to this Agreement as
so modified, or to be excluded, as the case may be, whether or not such provision of this Agreement refers expressly to such provision
of the Trust Indenture Act.

 

Section 12.08        Agent
for Service of Process; Submission to Jurisdiction. By the execution and delivery of this Agreement, the Company (i) acknowledges
that it has, by separate written instrument, irrevocably designated and appointed Law Debenture Corporate Services Inc. (together
with any successor, the “Agent for Service”) as its authorized agent upon which process may be served in any
suit or proceeding based on or arising out of this Agreement or the Certificates, that may be instituted in any United States
federal or state court in the State of New York, or brought under United States federal or state securities laws, and acknowledges
that the Agent for Service has accepted such designation, (ii) submits to the jurisdiction of any such court in any such suit
or proceeding, and (iii) agrees that service of process upon the Agent for Service (or any successor) and written notice of said
service to the Company (mailed or delivered to the Company at its address determined pursuant to Section 12.04) shall be deemed
in every respect effective service of process upon the Company in any such suit or proceeding. The Company further agrees to take
any and all action, including the execution and filing of any and all such documents and instruments, as may be necessary to continue
such designation and appointment of the Agent for Service in full force and effect so long as any of the Certificates shall be
outstanding.

 

Section 12.09        Effect
of Headings and Table of Contents. The Article and Section headings herein and the Table of Contents are for convenience only
and shall not affect the construction hereof.

 

Section 12.10        Successors
and Assigns. All covenants, agreements, representations and warranties in this Agreement by the Trustee and the Company shall
bind and, to the extent permitted hereby, shall inure to the benefit of and be enforceable by their respective successors and
assigns, whether so expressed or not. Any request, notice, direction, consent, waiver or other instrument or action by any Certificateholder
shall bind the successors and assigns of such Certificateholder.

 

Section 12.11        Benefits
of Agreement. Nothing in this Agreement or in the Certificates of any series, express or implied, shall give to any Person,
other than the parties hereto and their successors hereunder, and the Certificateholders of each series, any benefit or any legal
or equitable right, remedy or claim under this Agreement, except as provided expressly herein.

 

Section 12.12        Legal
Holidays. In any case where any Regular Distribution Date or Special Distribution Date relating to any Certificate of any
series shall not be a Business Day with respect to such series, then (notwithstanding any other provision of this Agreement) payment
need not be made on such date, but may be made on the next succeeding Business Day with the same force and effect as if made on
such Regular Distribution Date or Special Distribution Date, and no interest shall accrue during the intervening period.

 

    	 	55	 

     

    

  

Section 12.13        Counterparts.
For the purpose of facilitating the execution of this Agreement and for other purposes, this Agreement may be executed simultaneously
in any number of counterparts, each of which counterparts shall be deemed to be an original, and all of which counterparts shall
constitute but one and the same instrument.

 

Section 12.14        Communication
by Certificateholders with Other Certificateholders. Certificateholders of any series may communicate with other Certificateholders
of such series with respect to their rights under this Basic Agreement, the related Trust Supplement or the Certificates of such
series pursuant to Section 312(b) of the Trust Indenture Act. The Company, the Trustee and any and all other persons benefitted
by this Agreement shall have the protection afforded by Section 312(c) of the Trust Indenture Act.

 

Section 12.15        Normal
Commercial Relations. Anything contained in this Agreement to the contrary notwithstanding, the Trustee and any Certificateholder,
or any bank or other Affiliate of any such party, may conduct any banking or other financial transactions, and have banking or
other commercial relationships, with the Company and any of its Affiliates fully to the same extent as if this Agreement were
not in effect, including without limitation the making of loans or other extensions of credit to the Company and any of its Affiliates
for any purpose whatsoever, whether related to any of the transactions contemplated hereby or otherwise.

 

Section 12.16        No
Recourse Against Others. No past, present or future director, officer, employee, agent, member, manager, trustee or stockholder,
as such, of the Company, any Guarantor or any successor Person or any Affiliate of any thereof shall have any liability for any
obligations of the Company, any Guarantor or any successor Person or any Affiliate of any thereof, either directly or through
the Company, any Guarantor or any successor Person or any Affiliate of any thereof, under the Certificates, this Agreement or
any Guarantee or for any claim based on, in respect of or by reason of such obligations or their creation, whether by virtue of
any rule of law, statute or constitutional provision or by the enforcement of any assessment or by any legal or equitable proceeding
or otherwise. By accepting a Certificate, each Certificateholder agrees to the provisions of this Section 12.16 and waives and
releases all such liability. Such waiver and release shall be part of the consideration for the issue of the Certificates.

 

Section 12.17        Qualification
of Agreement. To the extent not previously qualified, the Company shall qualify this Agreement in connection with the registration
of any Certificates and shall pay all reasonable costs and expenses (including attorneys’ fees and expenses for the Company
and the Trustee) incurred in connection therewith. The Trustee shall be entitled to receive from the Company any such Officer’s
Certificates, Opinions of Counsel or other documentation as it may reasonably request in connection with any such qualification
of this Agreement under the Trust Indenture Act.

 

[Remainder of page intentionally
left blank]

 

    	 	56	 

     

    

  

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

 

	 	LATAM AIRLINES GROUP S.A.
	 	 
	 	By:	/s/ Pilar Duarte
	 	 
	 	Name: Pilar Duarte
	 	Title: Authorized Signatory
	 	 
	 	WILMINGTON TRUST COMPANY,
	 	as Trustee
	 	 	 
	 	By:	/s/ Drew H. Davis
	 	 
	 	Name: Drew H. Davis
	 	Title: Assistant Vice President

 

[Signature Page to Pass Through Trust Agreement]

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