Document:

Exhibit 10.2
	 

	 
		 
	 

	 
			
				
				   
				

			 

 

	 
		 
	 

	 
		ASSET PURCHASE AGREEMENT
	 

	 
		dated as of
		[               ]
		[     ], 2007
	 

	 
		among
	 

	 
		JET-i LEASING LLC,
	 

	 
		 
	 

	 
		THE OTHER SELLERS LISTED ON SCHEDULE 1
		HERETO
	 

	 
		and
	 

	 
		BABCOCK & BROWN AIR FUNDING I
		LIMITED,
	 

	 
		THE OTHER PURCHASERS LISTED ON SCHEDULE 1
		HERETO
	 

	 
		 
	 

	 
			
				
				   
				

			 

 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		TABLE OF CONTENTS
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Page
				

			 
	
				
				  1.
				

			 	
				
				   
				

			 	
				
				  INTERPRETATION
				

			 	
				
				  1
				

			 
	
				
				  2.
				

			 	
				
				   
				

			 	
				
				  SALE AND PURCHASE
				

			 	
				
				  13
				

			 
	
				
				  3.
				

			 	
				
				   
				

			 	
				
				  DELIVERY AND ACCEPTANCE
				

			 	
				
				  15
				

			 
	
				
				  4.
				

			 	
				
				   
				

			 	
				
				  SUBSTITUTE AND UNDELIVERED
				  AIRCRAFT
				

			 	
				
				  18
				

			 
	
				
				  5.
				

			 	
				
				   
				

			 	
				
				  PAYMENTS
				

			 	
				
				  20
				

			 
	
				
				  6.
				

			 	
				
				   
				

			 	
				
				  CONDITIONS PRECEDENT - SELLER

				

			 	
				
				  23
				

			 
	
				
				  7.
				

			 	
				
				   
				

			 	
				
				  CONDITIONS PRECEDENT -
				  PURCHASER
				

			 	
				
				  26
				

			 
	
				
				  8.
				

			 	
				
				   
				

			 	
				
				  REPRESENTATIONS AND WARRANTIES OF
				  EACH SELLER
				

			 	
				
				  36
				

			 
	
				
				  9.
				

			 	
				
				   
				

			 	
				
				  REPRESENTATIONS AND WARRANTIES OF
				  THE PURCHASER
				

			 	
				
				  51
				

			 
	
				
				  10.
				

			 	
				
				   
				

			 	
				
				  INDEMNITY
				

			 	
				
				  53
				

			 
	
				
				  11.
				

			 	
				
				   
				

			 	
				
				  TAXES
				

			 	
				
				  54
				

			 
	
				
				  12.
				

			 	
				
				   
				

			 	
				
				  WARRANTIES AND DISCLAIMERS
				

			 	
				
				  58
				

			 
	
				
				  13.
				

			 	
				
				   
				

			 	
				
				  ASSIGNMENT
				

			 	
				
				  59
				

			 
	
				
				  14.
				

			 	
				
				   
				

			 	
				
				  MISCELLANEOUS
				

			 	
				
				  59
				

			 
	
				
				  15.
				

			 	
				
				   
				

			 	
				
				  SUBROGATION
				

			 	
				
				  62
				

			 
	
				
				  16.
				

			 	
				
				   
				

			 	
				
				  LIMITED RECOURSE
				

			 	
				
				  62
				

			 

 
 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		LIST OF ATTACHMENTS:
	 

	 
		 
	 

	 
			
				
				  EXHIBIT A-1
				

			 	
				
				  -
				

			 	
				
				  Form of Assignment of Beneficial
				  Interest
				

			 
	
				
				  EXHIBIT A-2
				

			 	
				
				  -
				

			 	
				
				  Form of Trust Assignment and
				  Assumption Agreement
				

			 
	
				
				  EXHIBIT A-3
				

			 	
				
				  -
				

			 	
				
				  Form of Irish Law Share Transfer
				  Form
				

			 
	
				
				  EXHIBIT B
				

			 	
				
				  -
				

			 	
				
				  Form of Bill of Sale
				

			 
	
				
				  EXHIBIT C
				

			 	
				
				  -
				

			 	
				
				  Form of Acknowledgement of
				  Delivery
				

			 
	
				
				  EXHIBIT D
				

			 	
				
				  -
				

			 	
				
				  Form of Guaranty
				

			 
	
				
				  EXHIBIT E-1
				

			 	
				
				  -
				

			 	
				
				  Conditions Precedent - Aircraft
				  Delivery (BI Aircraft)
				

			 
	
				
				  EXHIBIT E-2
				

			 	
				
				  -
				

			 	
				
				  Conditions Precedent - Aircraft
				  Delivery (Independent Aircraft)
				

			 
	
				
				  EXHIBIT F
				

			 	
				
				  -
				

			 	
				
				  Form of Servicing Agreement
				

			 
	
				
				  EXHIBIT G
				

			 	
				
				  -
				

			 	
				
				  Form of Administrative Agency
				  Agreement
				

			 
	
				
				  SCHEDULE 1
				

			 	
				
				  -
				

			 	
				
				  Sellers and Related Aircraft
				

			 
	
				
				  SCHEDULE 2
				

			 	
				
				  -
				

			 	
				
				  Aircraft Information
				

			 
	
				
				  SCHEDULE 3
				

			 	
				
				  -
				

			 	
				
				  Documents and Conditions -
				  Delivery
				

			 
	
				
				  SCHEDULE 4
				

			 	
				
				  -
				

			 	
				
				  Documents and Conditions -
				  Post-Delivery
				

			 
	
				
				  SCHEDULE 5
				

			 	
				
				  -
				

			 	
				
				  Jurisdiction of Incorporation or
				  Organization
				

			 
	
				
				  SCHEDULE 6
				

			 	
				
				  -
				

			 	
				
				  Purchaser Entities
				

			 
	
				
				  SCHEDULE 7
				

			 	
				
				  -
				

			 	
				
				  Debt Allocation Amounts and Equity
				  Allocation Amounts
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		ii
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
		This ASSET PURCHASE AGREEMENT (this
		“Agreement”) is dated as of
		[              ]
		[     ], 2007 among: (i) JET-i LEASING LLC, a Delaware
		limited liability company; (ii) THE OTHER SELLERS LISTED ON SCHEDULE 1
		HERETO; (iii) BABCOCK & BROWN AIR FUNDING I LIMITED, a Bermuda exempted
		company and having its principal place of business at West Pier, Dun Loaghaire,
		County Dublin, Ireland, and (iv) THE OTHER PURCHASERS LISTED ON SCHEDULE 1
		HERETO. [Note: The Sellers on Schedule I will include the Irish
		sellers.]
	 

	 
		For good and valuable consideration, the
		receipt and sufficiency of which is hereby acknowledged, the parties hereto
		agree as follows:
	 

	 
			
				
				  1.
				

			 	
				
				  INTERPRETATION
				

			 

 

	 
			
				
				  1.1
				

			 	
				
				  For all purposes of this Agreement,
				  the following terms shall have the following meanings:
				

			 

 

	 
		“Additional Rent” means rent (whether called additional rent,
		supplemental rent, utilization rent, maintenance reserve or any similar term)
		that is in addition to a base rent for the Aircraft (regardless of how such
		base rent is calculated) payable under a Lease in respect of the airframe,
		engines, life-limited engine parts, landing gear and/or auxiliary power unit of
		an Aircraft based on hours or cycles of operation or passage of time, with
		respect to maintenance of which the lessor under the Lease customarily has a
		maintenance contribution obligation measured in part by or with reference to
		such additional rent.
	 

	 
		“Additional Rent Adjustment” means, with respect to any Aircraft (whether
		transferred as an Independent Aircraft or a BI Aircraft, but excluding any
		Substitute Aircraft), any Additional Rent under the Lease for such Aircraft
		received (and any amounts debited from the Security Deposit relating to such
		Aircraft due to the nonpayment of such Additional Rent) received by or on
		behalf of the Seller or an Existing Lessor of that Aircraft after the AP
		Closing Date through the Delivery Date or the BI Transfer Date, as
		applicable.
	 

	 
		“Affiliate”
		means a Person that directly, or indirectly through one or more intermediaries,
		controls or is controlled by, or is under common control with, the Person
		specified; provided that the Company and its Subsidiaries, on the one part,
		and JET-I, the other Sellers and their respective Subsidiaries, on the other
		part, shall not be considered to be Affiliates of each other.
	 

	 
		“Agreed Form” means, when used in relation to any draft
		certificate, document, agreement or opinion referred to in this Agreement, (a)
		substantially in the form agreed between a Seller and a Purchaser on or before
		the AP Closing Date with such changes thereto as may subsequently be agreed
		between such Seller and such Purchaser and (b) in the case of any opinion, such
		form as each of the Rating Agencies and the Policy Provider shall
		approve.
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		“Air Authority” means each Person who is vested with the control
		and supervision of, or has jurisdiction over, the registration, airworthiness
		and operation of aircraft and other matters relating to civil aviation in the
		State of Registration of the relevant Aircraft.
	 

	 
		“Aircraft”
		means each aircraft listed on Schedule 1 and described in further detail in
		Schedule 2 or, where any such aircraft has become a Remaining Aircraft pursuant
		to Section 4.1(a), and unless the context otherwise requires, any Substitute
		Aircraft designated in lieu thereof pursuant to Sections 4.1(b) and (c) and
		described in the applicable Substitute Aircraft Supplement, together with the
		Engines, and includes where the context admits, a separate reference to the
		Engines, Parts and Aircraft Documents and excludes Lessee Furnished
		Equipment.
	 

	 
		“Aircraft Documents” means, for any Aircraft, all records, logs,
		technical data, manuals and any other documents defined as “Aircraft
		Documents” or any similar term under the relevant Lease therefore, title
		to which is vested in the owner of such Aircraft at Delivery.
	 

	 
		“Aircraft No.” means, for any Aircraft, the reference number
		assigned to such Aircraft in Schedule 2 or the Substitute Aircraft Supplement,
		as applicable.
	 

	 
		“Aircraft Refund Amount” means, in respect of any Aircraft, an amount
		equal to (a) the sum of (i) the Debt Allocation Amount for such Aircraft,
		together with interest thereon at a rate per annum equal to the Debt Rate from
		the AP Closing Date through the date the Aircraft Refund Amount is paid to the
		Purchaser plus (ii) the Equity Allocation Amount for such Aircraft, together
		with the related yield amount at a rate per annum of [initial dividend yield]%
		from the AP Closing Date through the date the Aircraft Refund Amount is paid to
		the Purchaser, plus (b) Negative Hedge Breakage Costs, if any, for such
		Aircraft, minus (c) Positive Hedge Breakage Costs, if any, for such
		Aircraft.
	 

	 
		“Aircraft Value” means, in respect of any Aircraft, the product of
		(i) the Aircraft Purchase Price of such Aircraft and (ii) the quotient
		obtained by dividing (A) the Depreciation Factor applicable to such
		Aircraft as of the Delivery Date for such Aircraft or in the case of any
		Aircraft to which the payment provisions of Section 4.2 applies, the Delivery
		Expiry Date by (B) the Depreciation Factor applicable to such Aircraft on
		the AP Closing Date.
	 

	 
			
				
				   
				

			 	
				
				  “AP Closing Date” means [  
				

			 	
				
				  ] [  
				

			 	
				
				  ], 2007.
				

			 

 

	 
		“Appraisers”
		means Aircraft Information Services, Inc., Ascend, a division of Airclaims
		Limited and BK Associates, Inc. or such other appraisers as are reasonably
		acceptable to the Company.
	 

	 
		“Asset”
		means any Independent Aircraft or Beneficial Interest purchased, or to be
		purchased, by a Purchaser pursuant to this Agreement.
	 

	 
		“Assigned Lease” means, for any Lease the subject of an Assignment
		of Lease, such Lease as assigned to the relevant Purchaser or relevant
		Purchaser Entity (“New
		Lessor”), and as amended by the
		applicable Assignment of Lease.
	 

	 
		 
	 

	 
		 
	 

	 
		2
	 

	 
		 
	 

	 
	 

	 

	 
		“Assigned Property” has the meaning specified in Section 2.1.
	 

	 
		“Assignment of Beneficial Interest” means an assignment of ownership interest in a
		Purchaser Entity from a BI Seller to a Purchaser substantially in the form of
		Exhibit A-1, A-2 or A-3, as applicable, hereto or in the Agreed Form.
	 

	 
		“Assignment of Lease” means, for any Aircraft, a lease assignment and
		assumption agreement in the Agreed Form to be entered into among the Seller
		thereof or an Affiliate of such Seller (“Existing Lessor”), the Purchaser and/or New Lessor thereof and the
		relevant Lessee, under which the relevant Lease will be assigned, assumed
		and/or amended so that such Purchaser or New Lessor (as appropriate) will be
		substituted as lessor of such Aircraft in place of Existing Lessor.
	 

	 
		“Assignment of Warranties” means, for any Aircraft, an assignment in the
		Agreed Form between the Seller thereof or an Affiliate of such Seller and the
		Purchaser, Purchaser Entity or New Lessor thereof, and consented to by the
		Manufacturer, of such Seller’s right, title and interest in the
		Manufacturer’s warranties in respect of such Aircraft, subject to the
		interests of the relevant Lessee.
	 

	 
		“Average Base Value” means, for any Aircraft, the lesser of the mean
		and median of the “Base Values” in respect of such Aircraft rendered
		by each of the Appraisers; provided that,
		for any Substitute Aircraft, such appraisals shall be dated less than six
		months prior to the expected Delivery Date for such Substitute Aircraft.

	 

	 
		“Base Aircraft Purchase Price” means, with respect to (i) any Aircraft (whether
		transferred as an Independent Aircraft or a BI Aircraft, but excluding any
		Substitute Aircraft), the “Aircraft Purchase Price” as set forth in
		Schedule 2 and (ii) any Substitute Aircraft, as may be mutually agreed between
		the Purchaser of that Substitute Aircraft and the Seller therof, subject always
		to receipt of a Rating Agency Confirmation and the prior written consent of the
		Policy Provider.
	 

	 
		“Basic Rent”
		means, for any Lease, any scheduled rent thereunder, whether denominated as
		“Basic Rent”, “Rent” or otherwise, including any rent based
		on hours or cycles of operation of an Aircraft or Engine such as
		“power-by-the-hour amounts” and any payments for “excess hour or
		cycle amounts”, whether or not in addition to a base rent (which, for the
		avoidance of doubt, shall not include any Additional Rent).
	 

	 
		“Basic Rent Adjustment” means, with respect to any Aircraft (whether
		transferred as an Independent Aircraft or a BI Aircraft, but excluding any
		Substitute Aircraft), the aggregate portion of any Basic Rent under the Lease
		for such Aircraft received (and any amounts debited from the Security Deposit
		relating to such Aircraft due to the nonpayment of such Basic Rent) by or on
		behalf of the Seller or an Existing Lessor of that Aircraft related to the
		period subsequent to the AP Closing Date through the Delivery Date or the BI
		Transfer Date, as applicable.
	 

	 
		“Beneficial Interest” means, for any Purchaser Entity, 100% of the
		equity interest, both beneficial and of record, in such Purchaser Entity
		whether such be in the form of shares 
	 

	 
		 
	 

	 
		 
	 

	 
		3
	 

	 
		 
	 

	 
	 

	 

	 
		of a corporation, membership in a limited
		liability company or beneficial interest in a trust.
	 

	 
		“BI Aircraft” means any Aircraft, title to which is held by any
		Purchaser Entity on the AP Closing Date (subject to Section 3.1).
	 

	 
		“BI Seller”
		means either JET-i, or any other entity designated as a “BI Seller”
		on Schedule 1 hereof, as a Seller of the Beneficial Interest in a Purchaser
		Entity.
	 

	 
		“BI Transfer Date” has the meaning specified in Section 2.1.
	 

	 
		“Bill of Sale” means, for any Aircraft, an executed bill of sale
		from the Seller thereof to the Purchaser or relevant Purchaser Entity
		substantially in the form of Exhibit B (with such modifications as counsel to
		any Seller in any Delivery Location may advise as necessary or desirable) and,
		as necessary, any FAA Bill of Sale executed by the Seller thereof.
	 

	 
		“Cape Town Convention” means the Convention on International Interests
		in Mobile Equipment and its Protocol on Matters Specific to Aircraft Equipment,
		concluded in Cape Town on 16 November 2001.
	 

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

	 
		“Company”
		means Babcock & Brown Air Funding I Limited, a Bermuda exempted
		company.
	 

	 
		“Contracts”
		has the meaning specified in Section 8.3(x).
	 

	 
		“Debt Allocation Amount” means, in respect of an Aircraft, the amount set
		forth for such Aircraft under the heading “Debt Allocation Amount” on
		Schedule 7.
	 

	 
		“Debt Rate”
		means the rate per annum equal to sum of (a) the Applicable Rate of Interest
		with respect to the Class G-1 Notes and (b) the Policy Percentage (as defined
		in the Policy Fee Letter).
	 

	 
		“Delivery”
		means, (a) for any Independent Aircraft, transfer of title to such Aircraft
		from the Seller thereof to the Company or any other Subsidiary of the Company,
		in accordance with Section 3.4(b) and the other provisions of this Agreement,
		and (b) for any BI Aircraft, Transfer of the Beneficial Interest of the
		Purchaser Entity that has title, or holds the Beneficial Interest in another
		Purchaser Entity that has title, to such BI Aircraft in accordance with Section
		3.4(a) and the other provisions of this Agreement.
	 

	 
		“Delivery Date” means, for any Asset, the date on which Delivery
		therefore occurs in accordance with this Agreement.
	 

	 
		“Delivery Expiry Date” means the date that is 210 days after the AP
		Closing Date.
	 

	 
		 
	 

	 
		 
	 

	 
		4
	 

	 
		 
	 

	 
	 

	 

	 
		“Delivery Location” means, for any Aircraft, the location of such
		Aircraft at the time of Delivery as the Seller of that Aircraft shall
		designate, subject to Section 3.
	 

	 
		“Designated Jurisdiction” means, subject to Section 3.2(a), a jurisdiction
		in which there is no adverse Tax consequence from a delivery or transfer of an
		Aircraft or a beneficial interest therein as a result of the Aircraft being
		located in such jurisdiction at the time of such delivery or
		transfer.
	 

	 
		“Disclosure Letter” means the First Disclosure Letter or a
		Supplemental Disclosure Letter.
	 

	 
		“Dollars”
		and “$” mean the lawful currency for the time being of
		the United States of America.
	 

	 
		“Engine”
		means, in respect of any Aircraft, each engine for such Aircraft as described
		in Schedule 2 or the Substitute Aircraft Supplement, as applicable, concerning
		such Aircraft or, where any such engine has been replaced under the terms of
		the relevant Lease and title to the replacement engine has passed to the owner
		of such replaced Engine, such replacement engine as described in the relevant
		Bill of Sale or Assignment of Beneficial Interest, as the case may be, together
		with all Parts belonging to, installed in or appurtenant to such engine and
		includes, where the context permits, a separate reference to the Aircraft
		Documents concerning such engine.
	 

	 
		“Equity Allocation Amount” means, in respect of an Aircraft, the amount set
		forth for such Aircraft under the heading “Equity Allocation Amount”
		on Schedule 7.
	 

	 
		“Event” has
		the meaning specified in Section 11(e).
	 

	 
		“Event of Default” means, for any Aircraft, any event defined as
		such or as “Termination Event” or the like in the relevant Lease for
		that Aircraft.
	 

	 
		“Event of Loss” means, for any Aircraft, any event defined as
		such or as “Casualty Occurrence” or “Total Loss” or the
		like in the Lease of that Aircraft.
	 

	 
		“Existing Lessor” has the meaning ascribed thereto in the
		definition of “Assignment of Lease” herein.
	 

	 
		“FAA Bill of Sale” means, with respect to any Aircraft the State of
		Registration of which is the United States of America, a Federal Aviation
		Administration Bill of Sale (AC Form 8050-2) to be executed by the Seller of
		that Aircraft in favor of the Purchaser or Purchaser Entity of that Aircraft,
		and upon Delivery, filed with the Air Authority of the United States of
		America.
	 

	 
		“Final Determination” means (i)(A) a decision, judgment, decree or
		other order by any court of competent jurisdiction, which decision, judgment,
		decree or other order has become final after all appeals allowable by law by
		any party to the action have been exhausted or the time for filing such appeals
		has expired or (B) in any case involving United States federal income taxes
		where judicial review shall at the time be unavailable 
	 

	 
		 
	 

	 
		 
	 

	 
		5
	 

	 
		 
	 

	 
	 

	 

	 
		because the proposed adjustment involves a
		decrease in net operating loss carry forwards or business credit carry
		forwards, a decision, judgment, decree or other order of an administrative
		official or agency of competent jurisdiction, which decision, judgment, decree
		or other order has become final (i.e., where all
		administrative appeals have been exhausted by all parties thereto), (ii) a
		closing agreement entered into (x) under Section 7121 of the Code or any other
		settlement agreement entered into in connection with an administrative or
		judicial proceeding and (y) with the consent of any Seller affected thereby,
		(iii) the expiration of the time for instituting suit with respect to the
		claimed deficiency or (iv) the expiration of the time for instituting a claim
		for refund or, if such a claim was filed, the expiration of the time for
		instituting suit with respect thereto.
	 

	 
		“First Disclosure Letter” means a letter from JET-i or the applicable
		Seller to the Purchaser dated the date hereof setting out certain information
		as at the date hereof.
	 

	 
		“Formation Agreement” means, for each Purchaser Entity and as of any
		date of determination, the formation document or trust agreement pursuant to
		which such Purchaser Entity was created, as amended or supplemented to such
		date.
	 

	 
		“Government Entity” means:
	 

	 
			
				
				   
				

			 	
				
				  (1)
				

			 	
				
				  any national government, political
				  sub-division thereof, or local jurisdiction therein;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (2)
				

			 	
				
				  any instrumentality, board,
				  commission, department, division, organ, court, exchange control authority, or
				  agency of any thereof, however constituted; or
				

			 

 

	 
			
				
				   
				

			 	
				
				  (3)
				

			 	
				
				  any association, organization, or
				  institution of which any of the above is a member or to whose jurisdiction any
				  thereof is subject or in whose activities any thereof is a participant.
				

			 

 

	 
		“Guaranty”
		means the Guaranty of Babcock & Brown International Pty Ltd in respect of
		the transactions contemplated hereby in substantially the forms of Exhibit D
		hereto.
	 

	 
		“Indenture”
		means the Trust Indenture dated as of
		[                  ]
		[      ], 2007, among the Company, the Initial
		Liquidity Facility Provider, the Policy Provider, the Cash Manager and the
		Indenture Trustee.
	 

	 
		“Indenture Trustee” means Deutsche Bank Trust Company Americas, as
		the trustee and operating bank under the Indenture.
	 

	 
		“Independent Aircraft” means each Aircraft listed on Schedule 1 (other
		than any BI Aircraft but subject to Section 3.1) and, in each case, any
		Substitute Aircraft substituted therefore pursuant to Section 4.1.
	 

	 
		“Independent Seller” means each Independent Seller listed on Schedule
		1.
	 

	 
		 
	 

	 
		 
	 

	 
		6
	 

	 
		 
	 

	 
	 

	 

	 
		“Intercompany Lease” means, for any Aircraft, any lease therefore in
		the Agreed Form between the applicable Purchaser Entities.
	 

	 
		“International Interest” has the meaning given to such term in the Cape
		Town Convention.
	 

	 
		“International Registry” means the registry established pursuant to the
		Cape Town Convention.
	 

	 
		“Investment Proceeds Adjustment” means, with respect to any Aircraft (whether
		transferred as an Independent Aircraft or a BI Aircraft, but excluding any
		Substitute Aircraft), an amount equal to the investment proceeds with respect
		to the Base Aircraft Purchase Price and after giving effect to any release of
		funds from the Aircraft Purchase Account as a result of the Basic Rent
		Adjustment for such Aircraft as provided in Section 3.04(j) of the Indenture)
		For purposes of this Agreement, investment proceeds shall be deemed to accrue
		at the rate of 4% per annum.
	 

	 
		“JET-i”
		means JET-i Leasing LLC, a Delaware limited liability company.
	 

	 
		“Lease”
		means, for any Aircraft, the aircraft lease agreement (as amended,
		supplemented, novated or assigned by any relevant Lease Document) between an
		Existing Lessor thereof and a Lessee of that Aircraft identified as such in
		Schedule 2 or the Substitute Aircraft Supplement, as applicable, concerning
		such Aircraft.
	 

	 
		“Lease Assignment Documents” has the meaning ascribed thereto in the Security
		Trust Agreement. 
	 

	 
		“Lease Documents” means, for any Aircraft, all agreements
		identified as such in Schedule 2 or the Substitute Aircraft Supplement, as
		applicable, concerning such Aircraft, including any Lease Novation or
		Assignment of Lease in respect of that Aircraft, as such may be amended by any
		Disclosure Letter the contents of which have been agreed to by the Purchaser,
		and any Intercompany Lease with respect to that Aircraft.
	 

	 
		“Lease Novation” means, for any Independent Aircraft, a lease
		novation and amendment agreement therefore in the Agreed Form, to be entered
		into among the Purchaser thereof and/or the New Lessor, the Existing Lessor
		thereof as lessor and the relevant Lessee, under which the relevant Lease will
		be novated and amended so that such Purchaser or New Lessor (as appropriate)
		will be substituted as lessor of such Aircraft in place of such Existing
		Lessor.
	 

	 
		“Lessee”
		means, for any Aircraft, the lessee of such Aircraft as identified in Schedule
		2 or the Substitute Aircraft Supplement for that Aircraft, as applicable, and
		includes where the context permits a separate reference to the lessee under an
		Intercompany Lease.
	 

	 
		“Lessee Encumbrance” means, for any Aircraft, any Encumbrance which is
		(i) created by or is attributable to the acts, omissions, debts or liabilities
		of the Lessee of that Aircraft or 
	 

	 
		 
	 

	 
		 
	 

	 
		7
	 

	 
		 
	 

	 
	 

	 

	 
		its Affiliates or (ii) attributable to any
		claim payable by or indemnified against the Lessee of that Aircraft.
	 

	 
		“Lessee Furnished Equipment” means, for any Aircraft, those appliances, parts,
		accessories, instruments, navigational and communications equipment,
		furnishings modules, components and other items of equipment installed in or
		furnished with such Aircraft at Delivery and ownership of which is not required
		pursuant to the relevant Lease to vest in or be transferred to the lessor or
		owner of such Aircraft, as the case may be.
	 

	 
		“Liabilities” means any and all debts, liabilities and
		obligations, whether accrued or fixed, absolute or contingent, matured or
		unmatured or determined or determinable, including, without limitation, those
		arising under any Applicable Law (including, without limitation, any
		environmental law), and those arising under any contract, agreement,
		arrangement, commitment or undertaking.
	 

	 
		“Losses” has
		the meaning specified in Section 10.1.
	 

	 
		“Maintenance Adjustment” means, with respect to any Aircraft (whether
		transferred as an Independent Aircraft or a BI Aircraft, but excluding any
		Substitute Aircraft), the amount of any maintenance contribution obligations,
		airworthiness directive cost sharing obligations and similar obligations of a
		lessor in respect of such Aircraft in respect of any claim therefore under a
		Lease made and paid by the Seller or Existing Lessor of that Aircraft after the
		AP Closing Date and through the Delivery Date of that Aircraft.
	 

	 
		“Manufacturer” means, for any Aircraft, the manufacturer thereof
		as identified in Schedule 2 or the Substitute Aircraft Supplement for that
		Aircraft, as applicable, and includes where the context permits a separate
		reference to the manufacturer of each Engine as identified in Schedule 2 or the
		Substitute Aircraft Supplement for that Aircraft, as applicable.
	 

	 
		“Material Damage” means, for any Aircraft, damage to such Aircraft
		in excess of 25% of the applicable Aircraft Value.
	 

	 
		“Material Default” means, for any Lease, an event of default as
		provided under that Lease:
	 

	 
			
				
				   
				

			 	
				
				  (1)
				

			 	
				
				  consisting of failure to pay Rent or
				  Additional Rent when due if such delinquency is in excess of thirty days from
				  the due date (a “Payment
				  Default”) or any non-payment Event
				  of Default; 
				

			 

 

	 
			
				
				   
				

			 	
				
				  (2)
				

			 	
				
				  consisting of the failure to
				  maintain any insurance under such Lease, which failure is known to JET-i or the
				  Seller of the Aircraft subject to such Lease or of the Beneficial Interest of
				  the Purchaser Entity holding title to such Aircraft; or
				

			 

 

	 
			
				
				   
				

			 	
				
				  (3)
				

			 	
				
				  due to the bankruptcy, insolvency or
				  similar event with respect to the Lessee
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		8
	 

	 
		 
	 

	 
	 

	 

	 
		unless, in any such case, such Event of
		Default, Payment Default, insurance or bankruptcy default has been disclosed to
		each Rating Agency and the Policy Provider prior to the AP Closing Date.

	 

	 
		“Negative Hedge Breakage Costs” means, in respect of any Aircraft, an amount
		equal to the amount allocable to such Aircraft that is payable by any Issuer
		Group Member to a Hedge Provider due to an early termination of any Hedge
		Agreement resulting from the non-delivery of, or deemed rescission of the
		transfer in respect of, such Aircraft.
	 

	 
		“New Lessor”
		has the meaning ascribed thereto in the definition of “Assigned
		Lease” herein.
	 

	 
		“Novated Lease” means, for any Lease subject to a Lease Novation,
		such Lease as novated to the New Lessor of the Aircraft the subject of such
		Lease, and as amended by such Lease Novation.
	 

	 
		“Operative Documents” means, for any Aircraft, (a) this Agreement, (b)
		the Guaranty, (c) the Bill of Sale, (d) either any Lease Novation or
		Assignment of Lease therefore, and (e) in the case of any BI Aircraft, the
		Assignment of Beneficial Interest together with, in case of Beneficial
		Interests consisting of capital stock or equity interest, certificates
		representing such Beneficial Interest duly issued and registered in the name of
		the Purchaser.
	 

	 
		“Order”
		means any writ, judgment, decree, injunction or similar order of any
		governmental or regulatory authority (in each case whether preliminary or
		final).
	 

	 
		“Parts”
		shall mean for any Aircraft any part, component, appliance, accessory,
		instrument or other item of equipment (other than any of the Engines) installed
		in or furnished with or attached to that Aircraft at its Delivery title to
		which immediately prior to the sale pursuant to this Agreement is vested in
		Seller of that Aircraft (or, the case of a Delivery by Transfer of a Beneficial
		Interest, the Purchaser Entity holding title to that Aircraft) except Lessee
		Furnished Equipment.
	 

	 
		“Paying Party” has the meaning specified in Section 5.7.
	 

	 
		“Payment Default” has the meaning ascribed thereto in the
		definition of “Material Default” herein.
	 

	 
		“Permits”
		has the meaning specified in Section 8.3.
	 

	 
		“Permitted Encumbrance” means:
	 

	 
			
				
				   
				

			 	
				
				  (1)
				

			 	
				
				  any Purchaser Encumbrance; 
				

			 

 

	 
			
				
				   
				

			 	
				
				  (2)
				

			 	
				
				  the rights conferred by the Lease
				  Documents; and 
				

			 

 

	 
			
				
				   
				

			 	
				
				  (3)
				

			 	
				
				  any Lessee Encumbrances that are
				  permitted under the Lease Documents.
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		9
	 

	 
		 
	 

	 
	 

	 

	 
		“Policy Provider” means Ambac Assurance Corporation.
	 

	 
		“Positive Hedge Breakage Costs” means, in respect of any Aircraft, an amount
		equal to the amount allocable to such Aircraft that is payable to any Issuer
		Group Member by a Hedge Provider due to an early termination of any Hedge
		Agreement resulting from the non-delivery of, or deemed rescission of the
		transfer in respect of, such Aircraft.
	 

	 
		“Pre-Closing Taxes” has the meaning specified in Section
		11(d)(iv).
	 

	 
		“Pre-Closing Tax Returns” has the meaning specified in Section
		11(d)(iii).
	 

	 
		“Priority Search Certificate” shall have the meaning set forth in the
		regulations adopted pursuant to the Cape Town Convention.
	 

	 
		“Purchaser”
		means, for any Asset, the purchaser of such Asset pursuant to this Agreement,
		which shall be the Company or, in the case of any Independent Aircraft, a
		Subsidiary of the Company as designated in writing by the Company at least
		three Business Days (or such shorter period as may be agreed) prior to the
		relevant Delivery Date.
	 

	 
		“Purchaser Corporate Entity” means any Purchaser Entity designated as a
		Purchaser Corporate Entity in Schedule 6 hereto.
	 

	 
		“Purchaser Encumbrance” means any Encumbrance which is created by or
		results from debts or liabilities or actions or omissions of any Purchaser of
		an Asset or its Affiliates.
	 

	 
		 “Purchaser Entity” means any of the entities listed in Schedule 6
		hereto.
	 

	 
		“Purchaser Indemnitees” means the Company, any Subsidiary of the Company,
		each other Purchaser, the Security Trustee, the Trustee, the Directors, the
		holders of the Class A Shares, the Policy Provider and any of their respective
		successors and assigns, shareholders (except in the case of the shareholders of
		the holders of the Class A Shares), subsidiaries, Affiliates, directors,
		trustees, servants, agents and employees.
	 

	 
		“Purchaser Non-Corporate Entity” means any Purchaser Entity designated as a
		Purchaser Non-Corporate Entity Partnership in Schedule 6 hereto.
	 

	 
		“Purchaser State Corporate Entity” has the meaning set forth in Section 8.6.
	 

	 
		 “Receiving Party” has the meaning specified in Section 5.7.
	 

	 
		“Remaining Aircraft” has the meaning specified in Section
		4.1(a).
	 

	 
		“Retained Rights” has the meaning specified in Section 2.1.
	 

	 
		 “Security Deposit” means, for any Aircraft, the amount (whether in
		the form of cash, a letter of credit, guarantee, promissory note or otherwise)
		set forth opposite the term “Security Deposit” in respect of such
		Aircraft on Schedule 2 (updated by the Seller of 
	 

	 
		 
	 

	 
		 
	 

	 
		10
	 

	 
		 
	 

	 
	 

	 

	 
		that Aircraft (or, in the case of a BI
		Aircraft, the Seller of the Beneficial Interest in the Purchaser Entity holding
		title to that Aircraft) for any additions to or applications or repayments in
		respect of such Security Deposits made on or after the AP Closing Date and
		prior to the Delivery Date for that Aircraft) or the Substitute Aircraft
		Supplement for that Aircraft, as applicable, in each case paid to the
		applicable lessor and not applied or repaid as of the Delivery Date for that
		Aircraft, together with any interest thereon required under the terms of the
		applicable Lease to be paid to or to accrue in favor of the Lessee thereunder
		to such Delivery Date.
	 

	 
		“Seller”
		means with respect to any Asset, the BI Seller or the Independent Seller, as
		the case may be, selling such Asset. For the avoidance of doubt, Seller shall
		not mean any seller of aircraft or any other asset to any of the Purchasers
		other than pursuant to this Agreement.
	 

	 
		“Seller Group” has the meaning specified in Section
		11(c).
	 

	 
		“Seller Indemnitees” means the Sellers, JET-i and any of their
		respective successors, assigns, shareholders, subsidiaries, Affiliates,
		directors, trustees, servants, agents, and employees.
	 

	 
		“Servicer”
		means Babcock & Brown Aircraft Management LLC, a Delaware limited liability
		company, and Babcock & Brown Aircraft Management (Europe) Limited, an Irish
		corporation.
	 

	 
		 “State of Registration” means, for any Aircraft, the country identified
		in Schedule 2 for that Aircraft or the Substitute Aircraft Supplement for that
		Aircraft, as applicable, concerning such Aircraft.
	 

	 
		“Subsidiary”
		of any Person means a corporation, company or other entity: (i) more than 50%
		of whose outstanding shares or securities (representing the right to vote for
		the election of directors or other managing authority) are now or hereafter
		owned or controlled, directly or indirectly, by such Person, or (ii) which does
		not have outstanding shares or securities (as may be the case in a partnership,
		joint venture or unincorporated association), but more than 50% of whose
		ownership interest representing the right to make decisions for such other
		entity is, now or hereafter owned or controlled, directly or indirectly, by
		such Person; provided that in each case, such corporation, company or other
		entity shall be deemed to be a Subsidiary only so long as such ownership or
		controls exists.
	 

	 
		“Substitute Aircraft” has the meaning specified in Section
		4.1(b).
	 

	 
		“Substitute Aircraft Adjustment Amount” means, with respect to a Substitute Aircraft and
		the related Remaining Aircraft, the sum of (a) the difference (whether positive
		or negative) obtained by subtracting (i) the amount obtained by
		subtracting (u) the amount of maintenance contributions, airworthiness
		directive cost sharing payments and other similar payments made by or on behalf
		of the Seller or an Existing Lessor of that Substitute Aircraft under a Lease
		for such Substitute Aircraft after the AP Closing Date from (v) the amount
		of Additional Rent received by or on behalf of the Seller or an 
	 

	 
		 
	 

	 
		 
	 

	 
		11
	 

	 
		 
	 

	 
	 

	 

	 
		Existing Lessor of that Substitute Aircraft
		under the Lease for such Substitute Aircraft after the AP Closing Date, from
		(ii) the amount obtained by subtracting (x) the amount of maintenance
		contributions, airworthiness directive cost sharing payments and other similar
		payments made by or on behalf of the Seller or an Existing Lessor of that
		Remaining Aircraft for such Remaining Aircraft after the AP Closing Date from
		(y) the amount of Additional Rent received by the Seller or an Existing
		Lessor of that Remaining Aircraft for such Remaining Aircraft after the AP
		Closing Date and (b) the difference (whether positive or negative) obtained by
		subtracting (i) the sum of the portions of any Basic Rent under the Lease for
		such Substitute Aircraft received (and any amounts debited from the Security
		Deposit relating to such Substitute Aircraft due to the nonpayment of such
		Basic Rent) by or on behalf of the Seller or an Existing Lessor of that
		Remaining Aircraft related to the period subsequent to the AP Closing Date from
		(ii) the sum of the portions of any Basic Rent under the Lease for such
		Remaining Aircraft received (and any amounts debited from the Security Deposit
		relating to such Remaining Aircraft due to the nonpayment of such Basic Rent)
		by or on behalf of the Seller or an Existing Lessor of that Remaining Aircraft
		related to the period subsequent to the AP Closing Date.
	 

	 
		“Substitute Aircraft Supplement” means, for any Substitute Aircraft, a supplement
		to this Agreement in the Agreed Form which, among other things, sets forth such
		matters as the seller and the Purchaser shall agree apply specifically to such
		Substitute Aircraft, as provided in Section 4.1(c).
	 

	 
		 “Supplemental Disclosure Letter” means, (a) for any Independent Aircraft, a letter
		from JET-i or the Seller of that Independent Aircraft to the Purchaser thereof
		setting out certain information as of the Delivery Date for such Aircraft and
		(b) for any BI Aircraft, a letter from JET-i or the Seller of that BI Aircraft
		to the Purchaser thereof setting out certain information as of the relevant BI
		Transfer Date.
	 

	 
		 “Taxes”
		means any and all present and future sales, use, personal property, customs, ad
		valorem, value added, turnover, franchise, windfall or other profits, payroll,
		capital stock, employment, social security, workers’ compensation,
		unemployment compensation, stamp, transfer, excise, interest equalization,
		income, gross receipts, limited liability company minimum, limited partnership
		minimum or other taxes, fees, withholdings, imposts, duties, deductions,
		levies, or other charges of any nature, together with any penalties, fines, or
		interest thereon, imposed, levied, or assessed by, or otherwise payable to, any
		Government Entity.
	 

	 
		“Tax Return”
		with respect to any entity means a report, return or other information
		(including any amendments) required to be supplied to a Government Entity with
		respect to Taxes of such entity including, information returns and, where
		permitted or required, combined or consolidated returns for any group of
		entities that include the entity.
	 

	 
		“Tax Sharing Agreement” has the meaning specified in Section
		11(d)(i).
	 

	 
		“Transfer”
		means the sale, conveyance and transfer of any Beneficial Interest.
	 

	 
		 
	 

	 
		 
	 

	 
		12
	 

	 
		 
	 

	 
	 

	 

	 
		“Transfer Tax Jurisdiction” has the meaning specified in Section
		11(a).
	 

	 
		“Treasury Regulations” means proposed, temporary or final regulations
		promulgated under the Code by the United States Treasury Department.
	 

	 
			
				
				  1.2
				

			 	
				
				  In addition to the terms defined in
				  Section 1.1, and for all purposes of this Agreement, all capitalized terms used
				  but not otherwise defined herein shall have the respective meanings assigned to
				  such terms in the Indenture.
				

			 

 

	 
			
				
				  1.3
				

			 	
				
				  (a)
				

			 	
				
				  In this Agreement, unless the
				  contrary intention is stated, a reference to:
				

			 

 

	 
			
				
				   
				

			 	
				
				  (i)
				

			 	
				
				  each of “JET-i”, any
				  “Seller”, the “Company”, any “Purchaser” or any
				  other Person includes without prejudice to the provisions of this Agreement any
				  successor in title to it or any permitted assignee;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (ii)
				

			 	
				
				  words in the plural include the
				  singular and vice versa;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (iii)
				

			 	
				
				  any document includes that document
				  as amended, novated or supplemented, in each case in accordance with its
				  terms;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (iv)
				

			 	
				
				  a law (1) includes any statute,
				  decree, constitution, regulation, order, judgment or directive of any
				  Government Entity; (2) includes any treaty, convention, pact, compact or other
				  agreement to which any Government Entity is a signatory or party; (3) includes
				  any judicial or administrative interpretation or application thereof; and (4)
				  is a reference to that provision as amended, substituted or re-enacted;
				  and
				

			 

 

	 
			
				
				   
				

			 	
				
				  (v)
				

			 	
				
				  a Section, an Exhibit or a Schedule
				  is a reference to a section of or an exhibit or a schedule to this
				  Agreement.
				

			 

 

	 
			
				
				   
				

			 	
				
				  (b)
				

			 	
				
				  The headings in this Agreement are
				  to be ignored in construing this Agreement.
				

			 

 

	 
		
	 

	 
			
				
				  2.
				

			 	
				
				  SALE AND
				  PURCHASE
				

			 

 

	 
			
				
				  2.1
				

			 	
				
				  On the AP Closing Date, or as
				  promptly thereafter as practical (but no later than the Delivery Expiry Date),
				  and upon the satisfaction of all of the conditions precedent in Sections 6 and
				  7 with respect to all of the BI Aircraft then owned by a Purchaser Entity (each
				  such date, the “BI Transfer
				  Date” for such Purchaser Entity),
				  the Purchaser of the Beneficial Interest in that Purchaser Entity will purchase
				  from the BI Seller thereof and concurrently therewith, that BI Seller will sell
				  to that Purchaser, such Beneficial Interest by delivery to the Purchaser of an
				  Assignment of Beneficial Interest in the form of Exhibit A-1, A-2 or A-3, as
				  applicable, hereto, dated such BI Transfer Date, and in the case of a
				  Beneficial Interest consisting of capital stock or equity interest
				  certificates, certificates (with all required stock transfer tax having been
				  paid) evidencing such Beneficial Interest, conveying to the Purchaser outright
				  and unconditionally all of the BI Seller’s right, title and interest in,
				  to and under such Beneficial Interest of such Purchaser Entity, including,
				  without limitation, all of the BI Seller’s rights as shareholder, member
				  or beneficiary, as the case may be, of such Purchaser Entity, any rights to any
				  applicable 
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		13
	 

	 
		 
	 

	 
	 

	 

	 
		Security Deposit or Additional Rent but
		excluding any Additional Rent paid on or prior to the AP Closing Date, together
		with all other agreements, contracts, documents and instruments evidencing any
		of such right, title and interest as well as the proceeds of all thereof, in
		each case free from any Encumbrances other than Permitted Encumbrances
		(individually or collectively, the “Assigned Property” for such Purchaser Entity) on, and subject to,
		the terms and conditions contained in this Agreement; reserving to
		such Seller all claims for indemnities payable to such Seller (or the
		applicable Purchaser Entity) under the related Lease(s) in respect of any act
		or omission or events occurring prior to the AP Closing Date for such Purchaser
		Entity (the “Retained
		Rights” for the Aircraft relating
		to or for such Purchaser Entity). For the avoidance of doubt, except in the
		case of a Substitute Aircraft or an undelivered Aircraft as provided in Section
		4, all Basic Rent paid in respect of
		the period prior to, and Additional
		Rent paid on or prior to, the
		AP Closing Date shall be retained by or paid over to, as
		the case may be, the applicable BI Seller and all Basic Rent paid in respect
		of the period on or after, and Additional Rent paid after,
		the AP Closing Date shall be credited to or retained by or paid over to, as the
		case may be, the applicable Purchaser. Effective as of the BI Transfer Date for
		each Purchaser Entity, on, and subject to, the terms and conditions contained
		in this Agreement, the Purchaser agrees to accept the assignment of the
		Assigned Property for such Purchaser Entity from the BI Seller and, subject to
		Section 3.5, assume and undertake all of the duties, obligations and
		liabilities of the BI Seller with respect to such Assigned Property arising and
		to be performed on or after such BI Transfer Date and agrees to be bound by all
		the terms of and to undertake all of the duties, obligations and liabilities
		arising after such BI Transfer Date of the BI Seller with respect to the
		Assigned Property for such Purchaser Entity. Each Purchaser with respect to a
		Retained Right shall take such actions or pursue such claims as reasonably
		requested to by the Seller; provided that
		(i) all costs incurred by the Purchaser shall be for the Seller’s account,
		(ii) the Seller agrees to indemnify the Purchaser for any costs or liabilities
		incurred in connection with such action or pursuit of claim, (iii) such action
		or pursuit of claim shall not be inconsistent with a Purchaser’s
		obligations under any of the Operative Documents and (iv) such Purchaser shall
		not be required to take any action, or refrain from taking any action, to the
		extent that taking such action, or refraining from taking such action, would
		violate or contravene any applicable law, ordinance, rule, regulation or court
		order.
	 

	 
			
				
				  2.2
				

			 	
				
				  With respect to each Independent
				  Aircraft, on or after the AP Closing Date (but no later than the Delivery
				  Expiry Date), and upon the satisfaction of all of the conditions precedent in
				  Sections 6 and 7 with respect to that Independent Aircraft, the Purchaser of
				  that Independent Aircraft will purchase from such Independent Seller and
				  concurrently therewith, such Independent Seller will sell to such Purchaser,
				  such Independent Aircraft, including, without limitation, the Aircraft
				  Documents and any applicable Security Deposit or Additional Rent, but excluding
				  any Additional Rent paid on or prior to the AP Closing Date and Retained
				  Rights, on and subject to the terms and conditions contained in this Agreement
				  (including, without limitation, the execution of a Lease Novation or Assignment
				  of Lease (as the case may be) in respect of such Independent Aircraft and
				  delivery of the Lease Documents therefore), each in its “AS IS” and
				  “WHERE IS” condition at the relevant Delivery Location, free from any
				  Encumbrances other than Permitted Encumbrances. For the avoidance of doubt,
				  except in the case of a Substitute Aircraft or an undelivered Aircraft as
				  provided in Section 4, all Basic Rent paid in respect 
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		14
	 

	 
		 
	 

	 
	 

	 

	 
		of
		the period prior to, and all Additional
		Rent paid on or prior to, the AP Closing Date shall be retained by the
		applicable Seller and all Basic Rent paid in respect of the period on
		and after, and Additional Rent paid after, the AP Closing Date shall be
		credited to or paid over to, as the case may be, the applicable Purchaser. Each
		Purchaser with respect to a Retained Right shall take such actions or pursue
		such claims as reasonably requested to by the Seller; provided that
		(i) all costs incurred by the Purchaser shall be for the Seller’s account,
		(ii) the Seller agrees to indemnify the Purchaser for any costs or liabilities
		incurred in connection with such action or pursuit of claim, (iii) such action
		or pursuit of claim shall not be inconsistent with a Purchaser’s
		obligations under any of the Operative Documents, and (iv) such Purchaser shall
		not be required to take any action, or refrain from taking any action, to the
		extent that taking such action, or refraining from taking such action, would
		violate or contravene any applicable law, ordinance, rule, regulation or court
		order.
	 

	 
			
				
				  2.3
				

			 	
				
				  The parties hereto acknowledge,
				  consent and agree that from and after the AP Closing Date to the Delivery Date
				  of an Aircraft, that Aircraft shall be subject to the Administrative Services
				  Agreement as attached as Exhibit G hereto and the Servicing Agreement as
				  attached as Exhibit F hereto on the terms and conditions provided herein and
				  therein; provided that (without prejudice to the terms of the
				  Administrative Services Agreement or the Servicing Agreement) from and after
				  the Delivery Expiry Date an Aircraft shall cease to be subject to the
				  Administrative Services Agreement and the Servicing Agreement upon payment by
				  the Seller of that Aircraft of the amount specified in Section 4.2 in respect
				  of that Aircraft. Each party hereto further agrees that, from and after the AP
				  Closing Date, it shall reasonably cooperate with, and take such action as may
				  be reasonably requested by, the Servicer under the Servicing Agreement to allow
				  it to perform the servicing of the Aircraft in accordance with the Servicing
				  Agreement.
				

			 

 

	 
		
	 

	 
			
				
				  3.
				

			 	
				
				  DELIVERY AND
				  ACCEPTANCE
				

			 

 

	 
			
				
				  3.1
				

			 	
				
				  Each BI Seller of a Beneficial
				  Interest in a Purchaser Entity and the Purchaser of that Beneficial Interest
				  shall use commercially reasonable efforts to cause the Transfer of that
				  Beneficial Interest to occur on or as soon as reasonably practicable after the
				  AP Closing Date, and each of the Independent Sellers of an Aircraft and the
				  Purchaser of that Aircraft shall use commercially reasonable efforts to cause
				  Delivery of that Independent Aircraft to occur on or as soon as reasonably
				  practicable after the AP Closing Date, in each case subject to the other terms
				  and conditions of this Agreement but in no event later than the Delivery Expiry
				  Date. Delivery of the Independent Aircraft need not take place concurrently or
				  in the order set out in Schedule 2.
				

			 

 

	 
			
				
				  3.2
				

			 	
				
				  The Seller of any Independent
				  Aircraft shall use its commercially reasonable efforts to arrange for the
				  Delivery Location for such Aircraft to be in a jurisdiction:
				

			 

 

	 
			
				
				   
				

			 	
				
				  (a)
				

			 	
				
				  where such Seller has determined, in
				  its sole discretion, that there are no Taxes that would be imposed upon such
				  Seller, the Purchaser thereof or the Aircraft as a result of the transfer of
				  title to the applicable Aircraft to such Purchaser as a result of the Aircraft
				  or any part thereof being located in that jurisdiction; provided that
				  such Seller may (but shall not be obligated to) complete any sale where
				  such
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		15
	 

	 
		 
	 

	 
	 

	 

	 
		Taxes would be imposed on such Seller and,
		with the prior written consent of the Purchaser thereof and subject to Section
		11, such Seller may (but shall not be obligated to) complete any sale where
		such Taxes would be imposed on such Purchaser (in which case, the
		“Designated Jurisdiction” for such Aircraft shall be deemed to be the
		jurisdiction in which such Aircraft is located when such sale is completed);
		and
	 

	 
			
				
				   
				

			 	
				
				  (b)
				

			 	
				
				  where the security, if any,
				  contemplated by the applicable Assignment of Lease, Lease Novation or any
				  related Lease Document to be granted to the Purchaser or New Lessor thereof
				  would be effective relative to such Aircraft; and
				

			 

 

	 
			
				
				   
				

			 	
				
				  (c)
				

			 	
				
				  where the security contemplated by
				  the Security Trust Agreement with respect to the applicable Lease, and, in the
				  case of Aircraft registered in the United States or Ireland, the Aircraft,
				  would be effective under the governing law of the Security Trust
				  Agreement.
				

			 

 

	 
		In the case of any BI Aircraft, the relevant
		BI Seller shall use commercially reasonable efforts to cause the Delivery
		Location for such Aircraft to be in a jurisdiction where such BI Seller has
		determined, in its sole discretion, that there are no Taxes that would be
		imposed upon such Seller, the Purchaser thereof, the Purchaser Entity or such
		Aircraft as a result of the Transfer of Beneficial Interest relating to such BI
		Aircraft to such Purchaser, subject in all cases to the proviso set forth in
		Section 3.2(a) above.
	 

	 
			
				
				  3.3
				

			 	
				
				  The Seller of an Aircraft shall use
				  reasonable efforts to keep the Company advised as to any information of which
				  such Seller becomes aware as to the intended whereabouts of each Independent
				  Aircraft on the expected Delivery Date therefore and of each BI Aircraft on the
				  expected BI Transfer Date relating to such BI Aircraft. Each Purchaser shall,
				  subject to the terms and conditions of this Agreement and using reasonable
				  efforts, cooperate with the Seller of each Aircraft (at such Seller’s
				  cost) so as to allow the Delivery relating to such Independent Aircraft, as the
				  case may be, to occur when such Aircraft is at the Delivery Location therefore.
				  In the event that the Seller of an Aircraft reasonably believes that the
				  jurisdiction of the Delivery Location is a jurisdiction where there may be
				  Taxes imposed upon any Seller Indemnitee or any Purchaser Indemnitee as a
				  result of the transfer of the Seller’s interest in the applicable Aircraft
				  or Purchaser Entity to the Purchaser or for which the Seller would otherwise be
				  liable under Section 11 hereof, the Seller may, to the extent a favorable
				  Delivery Location cannot be arranged, elect to treat such Aircraft as a
				  Remaining Aircraft.
				

			 

 

	 
			
				
				  3.4
				

			 	
				
				  (a)
				

			 	
				
				  For each BI Aircraft, on the
				  Delivery Date therefore, subject to the satisfaction of the conditions
				  precedent set out in Section 7.1 and Exhibit E-1 applicable thereto, the Seller
				  thereof shall be deemed to have tendered such BI Aircraft for Delivery. On each
				  BI Transfer Date, subject to the satisfaction of the conditions precedent set
				  out in Sections 6 and 7 applicable thereto, the BI Seller shall execute an
				  Assignment of Beneficial Interest in the form of Exhibit A-1, A-2 or A-3, as
				  applicable, attached hereto, and in the case of a Beneficial Interest
				  consisting of capital stock or equity interest certificates cause the
				  certificates representing the Beneficial Interest to be duly registered in the
				  name of the Purchaser of the related 
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		16
	 

	 
		 
	 

	 
	 

	 

	 
		Purchaser Entity and subject to Section 3.2,
		the Transfer of the Beneficial Interest effected thereby shall take place while
		the Aircraft owned or leased by the related Purchaser Entity is at the Delivery
		Location therefore.
	 

	 
			
				
				   
				

			 	
				
				  (b)
				

			 	
				
				  For each Independent Aircraft, on
				  the Delivery Date therefore, subject to satisfaction of the conditions
				  precedent set out in Sections 6 and 7 applicable thereto, the Seller thereof
				  shall tender such Independent Aircraft for Delivery. Delivery and acceptance of
				  each Independent Aircraft hereunder shall take place while such Independent
				  Aircraft is located at the Delivery Location therefore, by such Seller
				  executing and delivering to such Purchaser a Bill of Sale. Thereupon, full
				  legal and beneficial title to such Independent Aircraft, free from Encumbrances
				  other than Permitted Encumbrances, shall pass from the Seller thereof to the
				  Purchaser thereof. Simultaneously with delivery to the Purchaser of the Bill of
				  Sale, title to the Aircraft Documents therefore shall pass to such Purchaser
				  and, as provided in the Lease Novation or the Assignment of Lease for such
				  Independent Aircraft, as applicable, the Lease related thereto shall be novated
				  or assigned (as the case may be) upon the Delivery of such Independent
				  Aircraft. 
				

			 

 

	 
			
				
				  3.5
				

			 	
				
				  The risk of the existence of any
				  unrepaired Material Damage or the occurrence of an Event of Loss with respect
				  to an Aircraft shall be retained by the applicable Seller thereof until the
				  delivery of the related Assignment of Beneficial Interest on the applicable BI
				  Transfer Date in the case of any BI Aircraft or the delivery of the related
				  Bill of Sale on the applicable Delivery Date in the case of any Independent
				  Aircraft. Effective upon such deliveries on the Delivery Date of an Independent
				  Aircraft or the BI Transfer Date of a BI Aircraft, all risk of loss of, or
				  damage to, each Aircraft (other than a Substitute Aircraft) and the Aircraft
				  Documents relating thereto shall pass from the Seller thereof to the Purchaser
				  thereof, and the risk of loss of, or damage to, each Substitute Aircraft and
				  the Aircraft Documents related thereto shall pass from the Seller thereof to
				  the Purchaser thereof upon delivery of the Bill of Sale for such Aircraft to
				  such Purchaser by such Seller or upon delivery of the Assignment of Beneficial
				  Interest in respect thereof, as the case may be, pursuant to Section 3.4(a) or
				  (b).
				

			 

 

	 
			
				
				  3.6
				

			 	
				
				  Each Aircraft to be sold hereunder
				  shall be delivered to the Purchaser (or in the case of the BI Aircraft, deemed
				  delivered on the applicable BI Transfer Date to the Company) “AS IS”
				  and “WHERE IS”, at the Delivery Location and SUBJECT TO EACH AND
				  EVERY DISCLAIMER OF WARRANTY AND REPRESENTATION AS SET OUT IN SECTION 12 but
				  without limiting any representation, warranty or covenant of JET-i or any other
				  Seller expressly set forth herein and/or in the Bill of Sale and/or Assignment
				  of Beneficial Interest for, or in respect of, such Aircraft (together with, in
				  the case of any Beneficial Interest consisting of capital stock or equity
				  interest, the certificate representing the same) delivered pursuant to this
				  Agreement. Subject to receipt or satisfaction or waiver of the conditions
				  precedent referred to in Section 7 applicable thereto and the other provisions
				  of this Agreement, each Purchaser of an Aircraft or of the related Beneficial
				  Interest shall unconditionally accept such Aircraft or Beneficial Interest for
				  all purposes hereunder upon tender of a Bill of Sale or of an Assignment of
				  Beneficial Interest (together with, in the case of any Beneficial Interest
				  consisting of capital stock or 
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		17
	 

	 
		 
	 

	 
	 

	 

	 
		equity interest certificates representing
		the same), as the case may be, in accordance with Section 3.4 and the other
		provisions of this Agreement in the condition in which such Aircraft exists on
		the Delivery Date (or in the case of any BI Aircraft, on the applicable BI
		Transfer Date). Acceptance by any Purchaser of a Bill of Sale in respect of any
		Aircraft or of an Assignment of Beneficial Interest in respect of any Aircraft
		then owned by any Purchaser Entity pursuant to such Assignment of Beneficial
		Interest thereof shall constitute an acknowledgement by such Purchaser for the
		purposes of this Agreement that such Aircraft is in every respect satisfactory
		to such Purchaser; provided that
		the foregoing is not intended nor shall the same be construed as a waiver by
		such Purchaser of any claim that it may have against the Guarantor or any other
		Seller for breach of any representation, warranty or covenant expressly
		contained in this Agreement.
	 

	 
			
				
				  3.7
				

			 	
				
				  Prior to the Delivery of any
				  Aircraft, the Purchaser of that Aircraft and/or its agents, representatives and
				  designees shall have the right, on reasonable prior notice and at such
				  Purchaser’s cost and expense, to inspect such Aircraft on and subject to
				  the terms of the applicable Lease.
				

			 

 

	 
		
	 

	 
			
				
				  4.
				

			 	
				
				  SUBSTITUTE AND UNDELIVERED
				  AIRCRAFT
				

			 

 

	 
			
				
				  4.1
				

			 	
				
				  (a)
				

			 	
				
				  If any Seller is unable to effect
				  Delivery of, or Transfer with respect to, any Aircraft at any time prior to the
				  30th day before the Delivery Expiry Date for any reason (including,
				  without limitation, the failure of one or more of the conditions set forth in
				  Exhibit E-1 or E-2 or Sections 6 or 7, but excluding an Event of Loss or
				  Material Damage in respect of such Aircraft), then, in each such case, such
				  Aircraft shall become a “Remaining Aircraft” and the provisions of
				  Section 4.1(b) and (c) and Section 4.2 shall apply. 
				

			 

 

	 
			
				
				   
				

			 	
				
				  (b)
				

			 	
				
				  If an Aircraft becomes a Remaining
				  Aircraft, then the Seller of that Aircraft shall (x) promptly inform the
				  Purchaser thereof and the Policy Provider of such event and specifying the
				  reason therefore and (y) use reasonable commercial efforts to designate in lieu
				  thereof one or more substitute aircraft that is reasonably acceptable to the
				  Company to be delivered on or before the Delivery Expiry Date. Any such
				  designated substitute aircraft shall (i) be subject to an operating lease
				  contract containing the Core Lease Provisions, (ii) have the same or greater
				  Average Base Value as of the date of Delivery thereof as such undelivered
				  Remaining Aircraft as of the Delivery of the Substituted Aircraft, (iii) upon
				  Delivery, not result in a Concentration Default under the Indenture, (iv) be
				  subject to an operating lease contract or contracts providing for a similar
				  rent profile and term as such undelivered Remaining Aircraft, (v) have a
				  similar remaining useful life as such undelivered Remaining Aircraft, (vi) not
				  be a cargo or regional jet aircraft or, if such Substitute Aircraft is a cargo
				  or regional jet aircraft, it is being substituted for an Aircraft of the same
				  category and (vii) be a substitute aircraft in respect of which the Seller
				  shall have obtained a Rating Agency Confirmation and the prior written consent
				  of the Policy Provider with respect to the substitution of such Remaining
				  Aircraft (each, a “Substitute
				  Aircraft”).
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		18
	 

	 
		 
	 

	 
	 

	 

	 
			
				
				   
				

			 	
				
				  (c)
				

			 	
				
				  At least three Business Days but not
				  more than five Business Days prior to the Delivery Date of a Substitute
				  Aircraft, (i) the Seller thereof shall provide the Company, the Indenture
				  Trustee, the Policy Provider and the Administrative Agent a certification of
				  (x) the amount of maintenance contributions made and Additional Rent received
				  by the relevant lessor for such Substitute Aircraft after the AP Closing Date,
				  and (y) the amount of maintenance contributions made by or on behalf of the
				  Seller thereof and Additional Rent received for the related Remaining Aircraft
				  after the AP Closing Date, and on such Delivery Date, each of the Seller and
				  the Company shall confirm such amounts to the Indenture Trustee, the Policy
				  Provider and the Administrative Agent. Upon the Delivery of a Substitute
				  Aircraft, the Remaining Aircraft which was replaced by such Substitute Aircraft
				  shall cease to be subject to this Agreement and all rights and obligations of
				  the parties hereunder concerning such Remaining Aircraft shall cease, and such
				  Substitute Aircraft shall become and thereafter be subject to the terms and
				  conditions of this Agreement to the same extent as such Remaining Aircraft,
				  except as to any matters (other than the matters referred to in Section 4.1(b))
				  which may be agreed as to such Substitute Aircraft, which shall be set forth in
				  a Substitute Aircraft Supplement, except that the substitution of any Aircraft
				  shall not effect the Seller’s obligations under Section 4.2 (provided
				  always that, for the avoidance of doubt, until a Substitute Aircraft is so
				  delivered for a Remaining Aircraft, such Remaining Aircraft shall continue to
				  be subject to this Agreement). On the Delivery Date of a Substitute Aircraft,
				  the Purchaser of that Substitute Aircraft shall pay the Seller thereof an
				  amount equal to the amount that would have been paid with respect to the
				  Remaining Aircraft pursuant to Section 5.1 on such Delivery Date,
				  plus, if such amount is a negative number, the Substitute
				  Aircraft Adjustment Amount for such Aircraft or less, if such
				  amount is a positive number, the Substitute Aircraft Adjustment Amount for such
				  Aircraft and, in any event transfer any Security Deposits for such Substitute
				  Aircraft in the ,manner set forth in Section 5.1(a).
				

			 

 

	 
			
				
				   
				

			 	
				
				  (d)
				

			 	
				
				  If an Aircraft (including a BI
				  Aircraft) shall have suffered an Event of Loss or Material Damage, the Seller
				  of that Aircraft may, but shall not be obligated to, designate a Substitute
				  Aircraft in respect of such Aircraft, and, if no Substitute Aircraft shall have
				  been designated therefore as provided above, then the Seller of that Aircraft
				  shall have no obligation to deliver and the Purchaser thereof shall have no
				  obligation to accept delivery of such Aircraft hereunder.
				

			 

 

	 
			
				
				  4.2
				

			 	
				
				  If any Aircraft shall not have been
				  delivered on or prior to the Delivery Expiry Date for any reason (whether as a
				  result of an Event of Loss or otherwise), or if the Beneficial Interest of any
				  Purchaser Entity is not transferred on or prior to the Delivery Expiry Date for
				  any reason, and provided no Substitute Aircraft shall have been delivered in
				  substitution therefore on or prior to the Delivery Expiry Date then on such
				  date JET-i irrevocably and unconditionally agrees to pay, and, without
				  duplication thereof, the Seller thereof irrevocably and unconditionally agrees
				  to pay, to the Purchaser of that Aircraft an amount equal to the Aircraft
				  Refund Amount with respect to such Aircraft, less the Base
				  Aircraft Purchase Price for such Aircraft, less any
				  Investment Proceeds Adjustment for such Aircraft.
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		19
	 

	 
		 
	 

	 
	 

	 

	 
			
				
				  4.3
				

			 	
				
				  Except as otherwise expressly
				  provided in Sections 4.1, 4.2 and 5.3, if Delivery of an Aircraft (or
				  Beneficial Interest pertaining thereto) under this Agreement is delayed or does
				  not occur for any reason outside the control of the Seller of such Aircraft,
				  including by reason of the lack of cooperation of any Lessee or other person
				  (other than such Seller or any of its Affiliates), the Seller thereof will not
				  be responsible for any damages, losses, including loss of profit, costs,
				  expenses, liabilities, demands, payments, claims or action arising from or in
				  connection with the delay or failure suffered or incurred by the
				  Purchaser.
				

			 

 

	 
			
				
				  5.
				

			 	
				
				  PAYMENTS
				

			 

 

	 
			
				
				  5.1
				

			 	
				
				  Subject to the satisfaction or
				  waiver by the Purchaser of the conditions precedent in Section 7, the Purchaser
				  of an Aircraft shall pay to the Seller of that Aircraft, on the Delivery Date
				  if an Independent Aircraft or on the BI Transfer Date if a BI Aircraft, the
				  Base Aircraft Purchase Price for the Independent Aircraft or BI Aircraft
				  delivered on such date, plus any
				  Investment Proceeds Adjustment for such Aircraft, less any Basic
				  Rent Adjustment for such Aircraft, less any
				  Additional Rent Adjustment for such Aircraft, plus any
				  Maintenance Adjustment for such Aircraft, subject to receipt by such Purchaser
				  of the following:
				

			 

 

	 
			
				
				   
				

			 	
				
				  (a)
				

			 	
				
				  an amount equal to the Security
				  Deposits held by or on behalf of each Existing Lessor in cash (if any) for such
				  Aircraft;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (b)
				

			 	
				
				  an opinion of in house counsel to
				  the Guarantor in the Agreed Form as to the due execution and delivery of the
				  Guaranty and as to such other matters relating thereto as such Purchaser may
				  reasonably request; 
				

			 

 

	 
			
				
				   
				

			 	
				
				  (c)
				

			 	
				
				  the Guaranty duly executed and
				  delivered by Babcock & Brown International Pty Ltd on the AP Closing
				  Date;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (d)
				

			 	
				
				  a certification in the Agreed Form
				  from a duly authorized officer of the Seller of that Aircraft to the effect
				  that the representations and warranties of each Seller set forth herein are
				  true and correct as of the AP Closing Date and as of the Delivery Date for that
				  Aircraft;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (e)
				

			 	
				
				  a copy, certified by a duly
				  authorized officer or representative of the Seller of that Aircraft to be a
				  true, complete and up-to-date, of the certificate of incorporation and by-laws
				  or other organizational documents of such Seller and, on the AP Closing Date
				  only, a copy, certified by a duly authorized officer or representative of the
				  Guarantor to be a true, complete and up-to-date, of the certificate of
				  incorporation and by-laws or other organizational documents of the
				  Guarantor;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (f)
				

			 	
				
				  a copy, certified by a duly
				  authorized officer or representative of the Seller of that Aircraft to be a
				  true, complete and up-to-date, of the resolutions of the Board of Directors (or
				  duly authorized committee thereof) or other governing board or body of the
				  Seller or an Affiliate of the Seller, (i) approving the transactions
				  contemplated by this Agreement, the Guaranty and the other Operative Documents
				  to which such Seller is a party, and (ii) authorizing a Person or 
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		20
	 

	 
		 
	 

	 
	 

	 

	 
		Persons to sign and deliver on behalf of
		such Seller, this Agreement, the Guaranty and the other Operative Documents to
		which such Seller is a party and any notices or other documents to be given
		pursuant hereto or thereto and, on the AP Closing Date only, a copy, certified
		by a duly authorized officer or representative of the Guarantor to be a true,
		complete and up-to-date, of the resolutions of the Board of Directors (or duly
		authorized committee thereof) or other governing board or body of the
		Guarantor, (i) approving the transactions contemplated by this Agreement
		and the Guaranty, and (ii) authorizing a Person or Persons to sign and
		deliver on behalf of such Seller, the Guaranty and any notices or other
		documents to be given pursuant thereto; 
	 

	 
			
				
				   
				

			 	
				
				  (g)
				

			 	
				
				  with respect to the transfer of a BI
				  Aircraft, certified copies of organizational documents (including certificates
				  or articles of incorporation, by-laws, limited liability company agreements,
				  Formation Agreements and documents of a similar nature) of the related
				  Purchaser Entity (if then in existence); and
				

			 

 

	 
			
				
				   
				

			 	
				
				  (h)
				

			 	
				
				  the First Disclosure Letter.
				

			 

 

	 
			
				
				  5.2
				

			 	
				
				  The payment of the Base Aircraft
				  Purchase Price for an Asset pursuant to Section 5.1 in an amount up to the
				  Equity Allocation Amount for the related Aircraft may be made by delivery and
				  endorsement, in form and substance reasonably acceptable to the Seller of that
				  Asset, by the Company to such Seller of a promissory note of such Seller or its
				  Affiliates in principal amount equal to the portion of the Base Aircraft
				  Purchase Price so paid; provided that
				  such promissory note was issued to the Company in the private placement of
				  shares of the Company to the Sellers and their Affiliates on the AP Closing
				  Date.
				

			 

 

	 
			
				
				  5.3
				

			 	
				
				  From and after the AP Closing Date
				  and to and including the earlier to occur of the Delivery Expiry Date and the
				  Delivery Date for any Aircraft (if other than the AP Closing Date), the Seller
				  of that Aircraft shall cause the Servicer under the Servicing Agreement to
				  perform rent collection services under the Servicing Agreement and shall cause
				  the Servicer to deliver to the Company notice of any and all rent and other
				  sums paid by the Lessees under the Leases (except loss proceeds in respect of
				  Material Damage or an Event of Loss in respect of an Aircraft) and received by
				  or on behalf of the relevant Existing Lessor under the related Lease in respect
				  of any period from and after the AP Closing Date, and with respect to amounts
				  received in payment of rent under such Lease, in respect of any period from and
				  after the AP Closing Date, identifying the Lease under which such payment was
				  received and the nature of the payment whether constituting Basic Rent,
				  Additional Rent or otherwise. From and after the AP Closing Date and until the
				  Delivery Date of an Aircraft, all maintenance contribution obligations,
				  airworthiness directive cost sharing obligations and similar obligations of a
				  lessor in respect of the Aircraft in respect of any claim therefore under a
				  Lease made after the AP Closing Date shall be the obligation of the Seller of
				  that Aircraft, subject to reimbursement therefore by the Purchaser of that
				  Aircraft on its Delivery Date by way of an upwards adjustment to the Aircraft
				  Purchase Price for such Aircraft as provided in Section 5.2. Notwithstanding
				  the foregoing, in respect of any Aircraft which suffers an Event of Loss or
				  unrepaired Material Damage after the AP Closing Date but prior to the Delivery
				  Expiry Date and in 
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		21
	 

	 
		 
	 

	 
	 

	 

	 
		respect of which no Substitute Aircraft has
		been designated pursuant to the terms of this Agreement, on the Delivery Expiry
		Date, the Seller of that Aircraft shall pay to the Purchaser thereof the
		Aircraft Refund Amount with respect to such Aircraft, less the Base
		Aircraft Purchase Price for such Aircraft and less any
		Investment Proceeds Adjustment for such Aircraft.
	 

	 
			
				
				  5.4
				

			 	
				
				  [Reserved]
				

			 

 

	 
			
				
				  5.5
				

			 	
				
				  Each Seller of an Aircraft shall (a)
				  on the AP Closing Date, on the BI Transfer Date for each BI Aircraft and the
				  Delivery Date for each Independent Aircraft, deliver to the Purchaser thereof a
				  certification in the Agreed Form from a duly authorized officer of such Seller
				  setting forth in reasonable detail (i) the amounts of Basic Rent in respect of
				  such Aircraft (and, if such Aircraft is a Substitute Aircraft, the
				  corresponding amounts relating to the related Remaining Aircraft) received (and
				  any amounts applied from the Security Deposit relating to such Aircraft due to
				  non-payments of amounts owing by the Lessee) by or on behalf of the Seller or
				  Existing Lessor, as applicable, of that Aircraft which relates in each case to
				  the period subsequent to the AP Closing Date , (ii) the amount of the maximum
				  maintenance contribution obligation calculated with reference to Additional
				  Rent with respect to such Aircraft which could be payable by the Seller or
				  Existing Lessor, as applicable, of that Aircraft, (iii) the amount (the
				  “SR Transfer Amount”) of any Additional Rent with respect to such
				  Aircraft paid to the Seller or Existing Lessor, as applicable, of that Aircraft
				  after the AP Closing Date to (and including) such BI Transfer Date (in the case
				  of a BI Aircraft) or such Delivery Date (in the case of an Independent
				  Aircraft), and (iv) a description of any Security Deposit (separately setting
				  forth the amount of any thereof in cash) for such Aircraft deemed held by or on
				  behalf of the Seller or Existing Lessor, as applicable, of that Aircraft as of
				  the AP Closing Date (in the case of all Aircraft) and as of such BI Transfer
				  Date (in the case of a BI Aircraft) or Delivery Date (in the case of an
				  Independent Aircraft) and (b) during the period from the AP Closing Date to the
				  relevant BI Transfer Date (in the case of a BI Aircraft) or the relevant
				  Delivery Date (in the case of an Independent Aircraft), promptly notify the
				  Purchaser of that Aircraft, the Indenture Trustee and the Administrative Agent
				  of the receipt by the Seller or Existing Lessor, as applicable, of that
				  Aircraft of any Basic Rent payment in respect of such Aircraft (including any
				  Substitute Aircraft therefore and if it is a Remaining Aircraft) relating to
				  the period subsequent to the AP Closing Date and the amount thereof (or if such
				  payment has not been made as scheduled, the amount, if any, applied from the
				  related Security Deposit due to such non-payment and whether such applied
				  amount has been replenished to the Security Deposit).
				

			 

 

	 
			
				
				  5.6
				

			 	
				
				  All amounts payable under this
				  Agreement will be made for value on the due date in Dollars in immediately
				  available funds (and to the extent not expressly provided herein) to such
				  account as the Seller of an Aircraft or as the Purchaser thereof may notify to
				  the corresponding such Purchaser or Seller, as the case may be, from time to
				  time (upon three Business Days’ prior written notice). In furtherance of
				  the foregoing, each Purchaser of an Aircraft hereby instructs each Seller
				  thereof to make each payment due to such Purchaser hereunder to the Collections
				  Account with advice of credit to the Administrative Agent and in sufficient
				  detail to enable the Administrative Agent to 
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		22
	 

	 
		 
	 

	 
	 

	 

	 
		determine the Lease under or in respect of
		which such payment is being made and the nature thereof.
	 

	 
			
				
				  5.7
				

			 	
				
				  If the party making payment (the
				  “Paying Party”) fails to pay any amount payable under this
				  Agreement on the due date, the Paying Party will pay on demand from time to
				  time to the other party (the “Receiving Party”) interest (both before and after judgment) on
				  that amount, from the due date to the date of payment in full by the Paying
				  Party to the Receiving Party, at the rate of LIBOR. All such interest will be
				  compounded monthly and calculated on the basis of the actual number of days
				  elapsed and a 360 day year.
				

			 

 

	 
			
				
				  5.8
				

			 	
				
				  The Company hereby agrees to make
				  such capital or other contributions to (or to provide or arrange for the
				  provision of other financing or funding for) each Purchaser so that such
				  Purchaser can timely fulfill its payment and other obligations hereunder to the
				  Sellers and authorizes each Seller (in its sole discretion by notice to the
				  Company) from time to time to set off, apply or combine all or any amounts for
				  the time being due from any Seller to any Purchaser towards the repayment or
				  discharge of any amount for the time being due to a Seller from a Purchaser
				  hereunder.
				

			 

 

	 
			
				
				  5.9
				

			 	
				
				  Each Seller authorizes any Purchaser
				  (in its sole discretion by notice to such Seller) from time to time to set off,
				  apply or combine all or any amounts for the time being due from any Purchaser
				  to any Seller towards the repayment or discharge of any and all amounts for the
				  time being due to any Purchaser from any Seller hereunder or under the
				  Guaranty.
				

			 

 

	 
			
				
				  6.
				

			 	
				
				  CONDITIONS PRECEDENT -
				  SELLER
				

			 

 

	 
			
				
				  6.1
				

			 	
				
				  The obligations of any Seller to
				  sell, transfer or deliver any Aircraft or Beneficial Interest of any Purchaser
				  Entity hereunder are subject to the satisfaction of the following express
				  conditions precedent on or prior to the applicable BI Transfer Date in the case
				  of any Beneficial Interest or the applicable Delivery Date in the case of any
				  Independent Aircraft, as the case may be:
				

			 

 

	 
			
				
				   
				

			 	
				
				  (a)
				

			 	
				
				  the relevant Operative Documents for
				  such Aircraft have been entered into by the parties thereto (other than the
				  Seller);
				

			 

 

	 
			
				
				   
				

			 	
				
				  (b)
				

			 	
				
				  the Servicing Agreement shall have
				  been entered into by the parties thereto;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (c)
				

			 	
				
				  the Seller thereof shall be
				  satisfied that the Delivery Location does not give rise to any Taxes;
				  and
				

			 

 

	 
			
				
				   
				

			 	
				
				  (d)
				

			 	
				
				  the Seller thereof shall have
				  received payment of all amounts due by the Purchaser of such Aircraft.
				

			 

 

	 
			
				
				  6.2
				

			 	
				
				  The obligation of the BI Seller to
				  sell, transfer or deliver any Beneficial Interest hereunder is further subject
				  to the condition that such BI Seller has received on or prior to the AP Closing
				  Date or, in the case of subsections (c) through (h) below, the applicable BI
				  Transfer Date:
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		23
	 

	 
		 
	 

	 
	 

	 

	 
			
				
				   
				

			 	
				
				  (a)
				

			 	
				
				  a copy of the constitutional
				  documents of the Purchaser and any other Affiliate of such Purchaser which is a
				  party to any Operative Document in respect of such Aircraft, certified, or
				  subject to a certificate confirming no change thereto, such certification to be
				  dated not more than ten days prior to the expected Delivery Date for such
				  Aircraft to be a true, complete and up-to-date copy;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (b)
				

			 	
				
				  a copy of resolutions of the
				  directors or other applicable governing body of such Purchaser and any other
				  Affiliate of such Purchaser which is a party to any Operative Document in
				  respect of the related Aircraft certified, or subject to a certificate
				  confirming no change to such resolutions, such certification to be dated not
				  more than ten days prior to the expected BI Transfer Date for such Beneficial
				  Interest to be a true, complete and up-to-date copy:
				

			 

 

	 
			
				
				   
				

			 	
				
				  (i)
				

			 	
				
				  approving the transactions
				  contemplated by this Agreement and the other Operative Documents to which such
				  Purchaser and any other Affiliate of such Purchaser is or is to be a party;
				  and
				

			 

 

	 
			
				
				   
				

			 	
				
				  (ii)
				

			 	
				
				  authorizing a Person or Persons to
				  execute and deliver on behalf of such Purchaser and any other Affiliate of such
				  Purchaser this Agreement and the other Operative Documents to which it is or is
				  to be a party and any notices or other documents to be given pursuant hereto or
				  thereto;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (c)
				

			 	
				
				  evidence that all governmental and
				  other licenses, approvals, certificates, exemptions, consents, registrations
				  and filings necessary in the relevant State of Registration and any other
				  relevant jurisdiction (including the domicile of the Lessee of the related
				  Aircraft) for any matter or thing contemplated by this Agreement and the other
				  applicable Operative Documents for the related Aircraft, and any notices or
				  other documents to be given pursuant hereto or thereto and for the legality,
				  validity, enforceability, admissibility in evidence and effectiveness hereof
				  and thereof have been obtained or effected on an unconditional basis and remain
				  in full force and effect (or in the case of effecting any licenses, approvals,
				  consents, certificates, exemptions, registrations and filings, that
				  arrangements reasonably satisfactory to such Seller have been made for the
				  effectiveness of the same within any applicable time limit);
				

			 

 

	 
			
				
				   
				

			 	
				
				  (d)
				

			 	
				
				  a favorable opinion of independent
				  counsel to such Purchaser dated as of such BI Transfer Date reasonably
				  acceptable to such Seller in the Agreed Form as to (1) certain of the matters
				  set out in Section 9 and (2) such other matters as such Seller may reasonably
				  request with regard to the subject matter contemplated herein or in each case
				  such Aircraft;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (e)
				

			 	
				
				  a quiet enjoyment letter with
				  respect to the related Aircraft and the Lease thereof from the Security
				  Trustee, and, if requested by the Seller, from the Purchaser addressed to the
				  relevant Lessee (and, if applicable, the relevant sublessee) in substantially
				  the form attached to the relevant Operative Document;
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		24
	 

	 
		 
	 

	 
	 

	 

	 
			
				
				   
				

			 	
				
				  (f)
				

			 	
				
				  a certification from the Purchaser
				  that its representations and warranties in Section 9.1 are true and correct as
				  of such BI Transfer Date;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (g)
				

			 	
				
				  if requested by the Seller, a
				  guaranty from the Company to the Lessee of the Aircraft owned or leased by the
				  Purchaser Entity; and
				

			 

 

	 
			
				
				   
				

			 	
				
				  (h)
				

			 	
				
				  the insurance certificate described
				  in Section 7.1(g)(xi).
				

			 

 

	 
			
				
				  6.3
				

			 	
				
				  The obligations of any Independent
				  Seller to deliver any Independent Aircraft hereunder are further subject to the
				  condition that on or prior to the AP Closing Date or, in the case of
				  subsections (c) through (h) below, the Delivery Date for any Independent
				  Aircraft, such Seller has received: 
				

			 

 

	 
			
				
				   
				

			 	
				
				  (a)
				

			 	
				
				  a copy of the constitutional
				  documents of the Purchaser and any other Affiliate of such Purchaser which is a
				  party to any Operative Document in respect of such Aircraft, certified, or
				  subject to a certificate confirming no change thereto, such certification to be
				  dated not more than ten days prior to the expected Delivery Date for such
				  Aircraft to be a true, complete and up-to-date copy;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (b)
				

			 	
				
				  a copy of resolutions of the
				  directors or other applicable governing body of such Purchaser and any other
				  Affiliate of such Purchaser which is a party to any Operative Document in
				  respect of such Aircraft certified, or subject to a certificate confirming no
				  change to such resolutions, such certification to be dated not more than ten
				  days prior to the expected Delivery Date for such Aircraft to be a true,
				  complete and up-to-date copy:
				

			 

 

	 
			
				
				   
				

			 	
				
				  (i)
				

			 	
				
				  approving the transactions
				  contemplated by this Agreement and the other Operative Documents to which such
				  Purchaser is or is to be a party; and
				

			 

 

	 
			
				
				   
				

			 	
				
				  (ii)
				

			 	
				
				  authorizing a Person or Persons to
				  execute and deliver on behalf of such Purchaser this Agreement and the other
				  Operative Documents to which it is or is to be a party and any notices or other
				  documents to be given pursuant hereto or thereto; 
				

			 

 

	 
			
				
				   
				

			 	
				
				  (c)
				

			 	
				
				  evidence that all governmental and
				  other licenses, approvals, certificates, exemptions, consents, registrations
				  and filings necessary in the relevant State of Registration and any other
				  relevant jurisdiction (including the domicile of the Lessee of such Aircraft)
				  for any matter or thing contemplated by this Agreement and the other applicable
				  Operative Documents for such Aircraft, and any notices or other documents to be
				  given pursuant hereto or thereto and for the legality, validity,
				  enforceability, admissibility in evidence and effectiveness hereof and thereof
				  have been obtained or effected on an unconditional basis and remain in full
				  force and effect (or in the case of effecting any licenses, approvals,
				  consents, certificates, exemptions, registrations and filings, that
				  arrangements reasonably satisfactory to such Seller have been made for the
				  effectiveness of the same within any applicable time limit);
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		25
	 

	 
		 
	 

	 
	 

	 

	 
			
				
				   
				

			 	
				
				  (d)
				

			 	
				
				  a favorable opinion of independent
				  counsel to such Purchaser dated as of such Delivery Date reasonably acceptable
				  to such Seller in the Agreed Form as to (1) certain of the matters set out in
				  Section 9 and (2) such other matters as such Seller may reasonably request with
				  regard to the subject matter contemplated herein or in each case such
				  Aircraft;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (e)
				

			 	
				
				  a quiet enjoyment letter with
				  respect to such Aircraft and the Lease thereof from the Security Trustee, and,
				  if requested by the Seller, from the Purchaser addressed to the relevant Lessee
				  (and, if applicable, the relevant sublessee) in substantially the form attached
				  to the relevant Operative Document;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (f)
				

			 	
				
				  a certification from the Purchaser
				  that its representations and warranties in Section 9.1 are true and correct as
				  of the Delivery Date;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (g)
				

			 	
				
				  if requested by the Seller, a
				  guaranty from the Company to a Lessee of such Independent Aircraft; and
				

			 

 

	 
			
				
				   
				

			 	
				
				  (h)
				

			 	
				
				  the insurance certificate described
				  in Section 7.1(g)(xi).
				

			 

 

	 
			
				
				  7.
				

			 	
				
				  CONDITIONS PRECEDENT -
				  PURCHASER
				

			 

 

	 
			
				
				  7.1
				

			 	
				
				  The obligation of the Purchaser to
				  purchase the Beneficial Interest of any Purchaser Entity on the applicable BI
				  Transfer Date is subject to satisfaction of the following express conditions
				  precedent on such BI Transfer Date, subject to the right of the Purchaser to
				  waive any condition pursuant to Section 7.3:
				

			 

 

	 
			
				
				   
				

			 	
				
				  (a)
				

			 	
				
				  Except in respect of transfers on
				  the AP Closing Date, the Purchaser shall have received notice of the expected
				  BI Transfer Date at least two Business Days prior thereto;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (b)
				

			 	
				
				  the Purchaser shall have received
				  (i) the documents referred to in Section 2.1 and the documents referred to in
				  Exhibit E-1 in connection with the Deliveries of the related BI Aircraft (other
				  than as listed on Schedule 4) and (ii) a certificate from a duly authorized
				  officer of the Seller dated such BI Transfer Date stating that (A) the
				  conditions set forth in Exhibit E-1 with respect to the Delivery of such BI
				  Aircraft have been satisfied or otherwise disclosed in the First Disclosure
				  Letter and such documents are unchanged and are in full force and effect as of
				  such BI Transfer Date (except for amendments and terminations permitted under
				  the Servicing Agreement), (B) any representations and warranties of the
				  Seller (or its Affiliate) of such BI Aircraft and of such Purchaser Entity
				  contained in the Assignment of Beneficial Interest for such BI Aircraft were
				  true and correct as of the date of such Assignment of Beneficial Interest and
				  (C) the Assignment of Beneficial Interest for such BI Aircraft was
				  effective to convey irrevocably full legal and, subject to any Formation
				  Agreement, beneficial title in the Beneficial Interest in such Purchaser Entity
				  to the Purchaser thereof on the BI Transfer Date therefore;
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		26
	 

	 
		 
	 

	 
	 

	 

	 
			
				
				   
				

			 	
				
				  (c)
				

			 	
				
				  no Material Default shall have
				  occurred and be continuing as of the AP Closing Date with respect to such BI
				  Aircraft; 
				

			 

 

	 
			
				
				   
				

			 	
				
				  (d)
				

			 	
				
				  the Purchaser shall have received
				  payment of all amounts due by the Seller thereof and its Affiliates in respect
				  of such BI Aircraft;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (e)
				

			 	
				
				  the Purchaser shall have received a
				  certification from the BI Seller dated such BI Transfer Date to the effect that
				  (i) the representations and warranties of such BI Seller hereunder are true and
				  correct as of the AP Closing Date or such BI Transfer Date, as the case may be,
				  and (ii) such Purchaser Entity has full legal and, subject to any Formation
				  Agreement, beneficial title to such BI Aircraft, free and clear of Encumbrances
				  other than Permitted Encumbrances;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (f)
				

			 	
				
				  unless and to the extent the
				  Purchaser shall otherwise agree, or a Rating Agency Confirmation and the prior
				  written consent of the Policy Provider shall have been obtained with respect
				  thereto, all the conditions precedent to the effectiveness of the Assignment of
				  Beneficial Interest for such BI Aircraft shall have been satisfied and the
				  Purchaser shall have received a certification from the BI Seller to such
				  effect;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (g)
				

			 	
				
				  receipt of the following documents
				  by the Purchaser:
				

			 

 

	 
			
				
				   
				

			 	
				
				  (i)
				

			 	
				
				  the identification by the Seller of
				  the BI Aircraft then owned by such Purchaser Entity;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (ii)
				

			 	
				
				  a certificate of solvency dated as
				  of such BI Transfer Date in the Agreed Form relating to the BI Seller issued by
				  a director or authorized officer or representative thereof;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (iii)
				

			 	
				
				  a favorable opinion of independent
				  counsel to the BI Seller, dated as of the AP Closing Date, reasonably
				  acceptable to such Purchaser in the Agreed Form, that the sale of such
				  Beneficial Interest constitutes, or will constitute, a “true-sale”
				  and a valid transfer of title to such Beneficial Interest and that after the
				  Transfer of such Beneficial Interest such Seller retains, or will retain, no
				  interest in such Beneficial Interest and as to such other matters as the
				  Purchaser may reasonably request with regard to the subject matter contemplated
				  herein;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (iv)
				

			 	
				
				  to the extent applicable, opinions
				  dated as of such BI Transfer Date in the Agreed Form from independent counsel
				  to the BI Seller in each Delivery Location, covering, without limitation, that,
				  except if the Delivery Location is in the United States or international
				  airspace, the Transfer of such Beneficial Interest will not result in the
				  imposition of any Tax in such jurisdiction on the Purchaser, any Subsidiary of
				  the Purchaser, such BI Aircraft, the related Leases or otherwise in respect of
				  such Transfer;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (v)
				

			 	
				
				  for such BI Aircraft, an opinion
				  dated as of such BI Transfer Date in the Agreed Form from counsel to the
				  relevant Seller in the relevant State of 
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		27
	 

	 
		 
	 

	 
	 

	 

	 
		Registration or, if applicable, the relevant
		jurisdiction of the Lessee to the effect that (A) except if the State of
		Registration is the United States, the terms of the relevant Lease or Novated
		Lease or Assigned Lease and the relevant Operative Documents and the other
		Lease Documents are legal, valid, binding and enforceable under the laws of
		such country to the extent necessary to enable the applicable Purchaser Entity
		to receive the practical benefits of its rights thereunder, (B) such Purchaser
		Entity is the sole owner of record of such Aircraft in the registry or
		otherwise shall be recognized as the sole legal owner of such Aircraft under
		the applicable laws of such jurisdiction, (C) except if the State of
		Registration is the United States, it is not necessary for such Purchaser
		Entity as a result of its ownership of such Aircraft to qualify to do business
		in such jurisdiction as a result of its ownership of such Aircraft and it is
		not necessary for such Purchaser Entity to qualify to do business in such
		jurisdiction, for the purpose of exercising any remedies under any Lease
		Document relating to such Aircraft or otherwise, (D) except if the State of
		Registration is the United States, payments of rent under the Lease are not
		subject to withholding under the applicable laws of such jurisdiction or, if
		subject to withholding, the gross up provisions of such Lease will be
		enforceable, (E) the interest of such Purchaser Entity in such BI Aircraft has
		been properly registered in the relevant State of Registration (to the extent
		applicable), (F) the Security Trust Agreement, to the extent required, has been
		or is in the process of being duly recorded in any relevant registry and, if
		such opinion is reasonably practicable to obtain, that the lien created
		thereunder will be recognized as constituting a first priority perfected
		security interest in and to the related Leases in favor of the Security
		Trustee, (G) if provided for by the Cape Town Convention, if as of such BI
		Transfer Date the International Registry reflects the registration of the
		transfer of such BI Aircraft and related Engines to such Purchaser Entity, then
		the International Registry does not reflect the registration of any subsequent
		transfer of such BI Aircraft or any related Engine or the registration of any
		other International Interest in such BI Aircraft or any related Engine (other
		than those in respect of Permitted Encumbrances), which opinion shall be
		supported in each case by a Priority Search Certificate and (H) if the relevant
		jurisdiction of the Lessee or the relevant State of Registration has ratified
		the Cape Town Convention, but not otherwise, the International Registry does
		not reflect the registration of any International Interest in such BI Aircraft
		or any related Engine other than (w) the registration in the name of the
		Security Trustee of the International Interest provided for under the Security
		Trust Agreement, (x) the registration in the name of such Purchaser Entity of
		the International Interest provided for under the relevant Lease, Assigned
		Lease or Novated Lease (y) the registration of the assignment of such
		International Interest in favor of the Security Trustee (it being understood
		that such registrations shall not be conditions precedent to the transfer of
		such Beneficial 
	 

	 
		 
	 

	 
		 
	 

	 
		28
	 

	 
		 
	 

	 
	 

	 

	 
		Interest) and (z) other Permitted
		Encumbrances, which opinion shall be supported in each case by a Priority
		Search Certificate;
	 

	 
			
				
				   
				

			 	
				
				  (vi)
				

			 	
				
				  evidence that all governmental and
				  other licenses, approvals, consents, certificates, exemptions, registrations
				  and filings necessary in the jurisdiction of incorporation or organization of
				  any Seller of a BI Aircraft or such Purchaser Entity and any other relevant
				  jurisdiction (including the domicile of the Lessee) and the relevant State of
				  Registration of such BI Aircraft for any matter or thing contemplated by this
				  Agreement and the other applicable Operative Documents for such BI Aircraft,
				  the bank accounts provided for under the Cash Management Agreement, the
				  Servicing Agreement, the Security Trust Agreement and the Indenture and any
				  notices or other documents to be given pursuant hereto or thereto and for the
				  legality, validity, enforceability, admissibility in evidence and effectiveness
				  hereof and thereof (including, to the extent reasonably practicable in such
				  jurisdiction, the establishment of a first priority perfected security interest
				  in and to the related Leases in favor of the Security Trustee) have been
				  obtained or effected on an unconditional basis and remain in full force and
				  effect (or in the case of effecting any certificates, exemptions, registrations
				  and filings, that arrangements satisfactory to the Company have been made for
				  the effectiveness of the same within any time limit provided therefore under
				  applicable law and a Rating Agency Confirmation and the prior written consent
				  of the Policy Provider have been received with respect thereto); 
				

			 

 

	 
			
				
				   
				

			 	
				
				  (vii)
				

			 	
				
				  a draft of the certificate required
				  to be delivered pursuant to Section 5.5 shall have been provided at least three
				  Business Days but not more than five Business Days prior to such BI Transfer
				  Date;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (viii)
				

			 	
				
				  a certificate of the applicable
				  Seller confirming that so far as is known to it, no Event of Loss has occurred
				  and no unrepaired Material Damage is in existence with respect to such BI
				  Aircraft; 
				

			 

 

	 
			
				
				   
				

			 	
				
				  (ix)
				

			 	
				
				  each of the documents required to be
				  delivered on or prior thereto pursuant to Section 5; 
				

			 

 

	 
			
				
				   
				

			 	
				
				  (x)
				

			 	
				
				  a copy of the currently valid
				  certificate of airworthiness for such Aircraft issued by the appropriate Air
				  Authority or other reasonably satisfactory evidence thereof; 
				

			 

 

	 
			
				
				   
				

			 	
				
				  (xi)
				

			 	
				
				  for such BI Aircraft, originals, or
				  certified copies, of certificates evidencing the insurance required to be
				  maintained pursuant to the relevant Assigned Lease or the Novated Lease, as
				  appropriate, for such Aircraft together, if applicable, with a letter or report
				  from an independent firm of insurance brokers; and 
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		29
	 

	 
		 
	 

	 
	 

	 

	 
			
				
				   
				

			 	
				
				  (xii)
				

			 	
				
				  the report of such Purchaser’s
				  insurance advisor in substantially the Agreed Form;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (h)
				

			 	
				
				  the matters disclosed in the First
				  Disclosure Letter, if any, and any Supplemental Disclosure Letter delivered on
				  or prior to such BI Transfer Date shall be in substance satisfactory to the
				  Purchaser and the Policy Provider; 
				

			 

 

	 
			
				
				   
				

			 	
				
				  (i)
				

			 	
				
				  on such BI Transfer Date, if the
				  Security Deposit held under a Lease for any such BI Aircraft is in the form of
				  a letter of credit, guarantee, promissory note or other instrument, and not
				  already issued in the name of the Servicer, as servicer or manager, the Seller
				  shall cause such letter of credit, guarantee or other instrument to be duly
				  endorsed, amended or reissued in favor of such Purchaser Entity (or the
				  relevant Affiliate of such Purchaser Entity) or the Seller shall have taken
				  such other actions as may be necessary to effectuate the assignment of all
				  right, title and interest of the Existing Lessor in and to such letter of
				  credit, guarantee, promissory note or instrument to such Purchaser Entity (or
				  the relevant Affiliate of the Purchaser Entity);
				

			 

 

	 
			
				
				   
				

			 	
				
				  (j)
				

			 	
				
				  the Seller shall have provided to
				  the Purchaser a confirmation from the Servicer that such BI Aircraft has, as of
				  the Delivery Date, become an “Aircraft Asset” under and as defined in
				  the Servicing Agreement;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (k)
				

			 	
				
				  the tangible chattel paper original
				  of the Lease (or if an original was never so designated or such original has
				  been lost, a certificate from the Seller to such effect) and the Assignment of
				  Beneficial Interest for such BI Aircraft shall have been delivered to the
				  Security Trustee on such BI Transfer Date;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (l)
				

			 	
				
				  for such BI Aircraft, (A) an
				  original of the applicable Lease and (B) an original of each other Lease
				  Document (or otherwise a copy certified to be true and correct) shall be
				  delivered to the Security Trustee on or prior to the BI Transfer Date (except
				  that with respect to Substitute Aircraft, such originals shall be delivered on
				  the Delivery Date therefore); provided that,
				  if any such Lease Document contains a material right for the benefit of the
				  lessor thereunder and the Purchaser Entity and/or the Seller thereof does not
				  have an original of such Lease Document in its possession, each such Seller
				  shall provide such other assurances as to the enforceability and admissibility
				  of such Lease Document in any court in the State of New York or the United
				  Kingdom as the Purchaser may reasonably request; 
				

			 

 

	 
			
				
				   
				

			 	
				
				  (m)
				

			 	
				
				  the Formation Agreement for such
				  Purchaser Entity shall be in form and substance satisfactory to the Purchaser
				  and the Policy Provider;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (n)
				

			 	
				
				  the Purchaser shall have received a
				  certificate of good standing for each Purchaser Entity which is the subject of
				  a Transfer; provided that such certificate is reasonably available in such
				  Purchaser Entity’s jurisdiction of organization for entities of the same
				  type as such Purchaser Entity;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (o)
				

			 	
				
				  there shall not be in effect on the
				  BI Transfer Date any Order restraining, enjoining or otherwise prohibiting or
				  making illegal the consummation of any of 
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		30
	 

	 
		 
	 

	 
	 

	 

	 
		the transactions contemplated by this
		Agreement, the other applicable Operative Agreements, the Servicing Agreement,
		the Security Trust Agreement and the Indenture, or which could reasonably be
		expected to otherwise result in a material diminution of the benefits of the
		transactions contemplated by this Agreement, the other applicable Operative
		Agreements, the Servicing Agreement, the Security Trust Agreement and the
		Indenture to Purchaser, and there shall not be pending or threatened on the BI
		Transfer Date any action or proceeding in, before or by any governmental or
		regulatory authority which could reasonably be expected to result in the
		issuance of any such Order; and
	 

	 
			
				
				   
				

			 	
				
				  (p)
				

			 	
				
				  no proceeding shall have been
				  commenced nor any petition shall have been filed in a court of competent
				  jurisdiction seeking relief in respect of the Guarantor or the Servicer under
				  the United States Code, as now constituted or hereafter amended, or any other
				  U.S. Federal or state or non-U.S. bankruptcy, insolvency, receivership or
				  similar law; no order or decree approving or ordering any of the foregoing
				  shall be entered into; neither the Guarantor nor the Servicer has gone into
				  liquidation, suffered a receivership or a mortgage to take possession of all or
				  substantially all of their assets and no examiner has been appointed over the
				  Guarantor or the Servicer.
				

			 

 

	 
			
				
				  7.2
				

			 	
				
				  The obligation of any Purchaser to
				  purchase any Independent Aircraft on any Delivery Date hereunder is subject to
				  satisfaction of the following express conditions precedent on the Delivery Date
				  for such Independent Aircraft, subject to the right of the relevant Purchaser
				  to waive any condition pursuant to Section 7.3:
				

			 

 

	 
			
				
				   
				

			 	
				
				  (a)
				

			 	
				
				  Except in respect of transfers on
				  the AP Closing Date, the Purchaser shall have received notice of the expected
				  Delivery Date at least two Business Days prior thereto;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (b)
				

			 	
				
				  the Purchaser shall have received
				  (i) the documents referred to in Exhibit E-2 in connection with the Delivery of
				  such Independent Aircraft (other than as listed on Schedule 4) and (ii) a
				  certificate from a duly authorized officer of the Seller of such Independent
				  Aircraft dated such Delivery Date stating that (A) the conditions set forth in
				  Exhibit E-2 with respect to the Delivery of such Independent Aircraft have been
				  satisfied or otherwise disclosed in the First Disclosure Letter and such
				  documents are unchanged and are in full force and effect as of such Delivery
				  Date (except for amendments and terminations permitted under the Servicing
				  Agreement), (B) the representations and warranties of the Seller (or its
				  Affiliate) of such Independent Aircraft contained in the Assignment of Lease or
				  Lease Novation, as applicable, for such Independent Aircraft are true and
				  correct as of such Delivery Date, and (C) the bill of sale for, or physical
				  delivery of (as acknowledged in the acknowledgement of delivery pertaining
				  thereto), as applicable, such Independent Aircraft is effective to convey
				  irrevocably full legal and, subject to any Formation Agreement, beneficial
				  title to the Purchaser thereof on such Delivery Date;
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		31
	 

	 
		 
	 

	 
	 

	 

	 
			
				
				   
				

			 	
				
				  (c)
				

			 	
				
				  no Material Default shall have
				  occurred and be continuing as of the AP Closing Date with respect to such
				  Independent Aircraft;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (d)
				

			 	
				
				  the Purchaser shall have received
				  payment of all amounts due by the Seller thereof and its Affiliates in respect
				  of such Independent Aircraft;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (e)
				

			 	
				
				  the Purchaser shall have received a
				  certification from the Seller of such Independent Aircraft dated such Delivery
				  Date to the effect that the representations and warranties of such Seller
				  hereunder are true and correct as of the AP Closing Date or such Delivery Date,
				  as the case may be;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (f)
				

			 	
				
				  unless and to the extent the
				  Purchaser shall otherwise agree, or a Rating Agency Confirmation and the prior
				  written consent of the Policy Provider shall have been obtained with respect
				  thereto, all the conditions precedent to the effectiveness of the Assignment of
				  Lease or Lease Novation, as applicable, for such Independent Aircraft shall
				  have been satisfied and the Purchaser shall have received a certification from
				  the Seller to such effect;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (g)
				

			 	
				
				  receipt of the following documents
				  by the Purchaser:
				

			 

 

	 
			
				
				   
				

			 	
				
				  (i)
				

			 	
				
				  to the extent applicable, an opinion
				  dated as of such Delivery Date in the Agreed Form from independent counsel to
				  the Seller in the Delivery Location, covering, without limitation, that, except
				  if the Delivery Location is in the United States or international airspace, the
				  transfer of title to such Independent Aircraft will be effective under the laws
				  of such jurisdiction and the Delivery of such Independent Aircraft will not
				  result in the imposition of any Tax in such jurisdiction on the Purchaser, any
				  Subsidiary of Purchaser, such Independent Aircraft, the related Lease or
				  otherwise in respect of such Transfer;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (ii)
				

			 	
				
				  for such Independent Aircraft, an
				  opinion dated as of such Delivery Date in the Agreed Form from counsel to the
				  relevant Seller in the relevant State of Registration or, if applicable, the
				  relevant jurisdiction of the Lessee to the effect that (A) except if the State
				  of Registration is the United States, the terms of the relevant Lease or
				  Novated Lease or Assigned Lease and the relevant Operative Documents and the
				  other Lease Documents are legal, valid, binding and enforceable under the laws
				  of such country to the extent necessary to enable the Purchaser to receive the
				  practical benefits of its rights thereunder, (B) following the Delivery of such
				  Independent Aircraft, the Purchaser shall be the owner of record of such
				  Independent Aircraft in the registry or otherwise shall be recognized as the
				  legal owner of such Independent Aircraft under the applicable laws of such
				  jurisdiction, (C) except if the State of Registration is the United States, it
				  is not necessary for such Purchaser as a result of its ownership of such
				  Independent Aircraft to qualify to do business in such jurisdiction as a result
				  of its ownership of such Independent Aircraft and it is not necessary for such
				  Purchaser to qualify to do business in such jurisdiction, 
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		32
	 

	 
		 
	 

	 
	 

	 

	 
		for the purpose of exercising any remedies
		under any Lease Document relating to such Independent Aircraft or otherwise,
		(D) except if the State of Registration is the United States, payments of rent
		under the Lease are not subject to withholding under the applicable laws of
		such jurisdiction or, if subject to withholding, the gross up provisions of
		such Lease will be enforceable, (E) the interest of such Purchaser in such
		Independent Aircraft has been properly registered in the relevant State of
		Registration (to the extent applicable), (F) the Security Trust Agreement, to
		the extent required, has been or is in the process of being duly recorded in
		any relevant registry and, if such opinion is reasonably practicable to obtain,
		that the lien created thereunder will be recognized as constituting a first
		priority perfected security interest in and to the related Leases in favor of
		the Security Trustee and (G) if provided for by the Cape Town Convention, if as
		of such Delivery Date the International Registry reflects the registration of
		the transfer of such Independent Aircraft and related Engines to such
		Purchaser, then the International Registry does not reflect the registration of
		any subsequent transfer of such Independent Aircraft or any related Engine or
		the registration of any other International Interest in such Independent
		Aircraft or any related Engine (other than those in respect of Permitted
		Encumbrances), which opinion shall be supported in each case by a Priority
		Search Certificate and (H) if the relevant jurisdiction of the Lessee or the
		relevant State of Registration has ratified the Cape Town Convention, but not
		otherwise, the International Registry does not reflect the registration of any
		International Interest in such Independent Aircraft or any related Engine other
		than (w) the registration in the name of the Security Trustee of the
		International Interest provided for under the Security Trust Agreement, (x) the
		registration in the name of such Purchaser of the International Interest
		provided for under the relevant Lease, Assigned Lease or Novated Lease (y) the
		registration of the assignment of such International Interest in favor of the
		Security Trustee (it being understood that such registrations shall not be
		conditions precedent to the Delivery of such Aircraft) and (z) other Permitted
		Encumbrances, which opinion shall be supported in each case by a Priority
		Search Certificate;
	 

	 
			
				
				   
				

			 	
				
				  (iii)
				

			 	
				
				  evidence that all governmental and
				  other licenses, approvals, consents, certificates, exemptions, registrations
				  and filings necessary in the jurisdiction of incorporation or organization of
				  the Seller of such Independent Aircraft or such Purchaser and any other
				  relevant jurisdiction (including the domicile of the Lessee) and the relevant
				  State of Registration of such Aircraft for any matter or thing contemplated by
				  this Agreement and the other applicable Operative Documents for such
				  Independent Aircraft, the bank accounts provided for under the Cash Management
				  Agreement, the Servicing Agreement, the Security Trust Agreement and the
				  Indenture and any notices or other documents to be given pursuant hereto or
				  thereto and for the legality, validity, enforceability, admissibility in
				  evidence and effectiveness hereof and 
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		33
	 

	 
		 
	 

	 
	 

	 

	 
		thereof (including, to the extent reasonably
		practicable in such jurisdiction, the establishment of a first priority
		perfected security interest in and to the related Leases in favor of the
		Security Trustee) have been obtained or effected on an unconditional basis and
		remain in full force and effect (or in the case of effecting any certificates,
		exemptions, registrations and filings, that arrangements satisfactory to the
		Purchaser have been made for the effectiveness of the same within any time
		limit provided therefore under applicable law and a Rating Agency Confirmation
		and the prior written consent of the Policy Provider have been received with
		respect thereto); 
	 

	 
			
				
				   
				

			 	
				
				  (iv)
				

			 	
				
				  a certificate of the applicable
				  Seller confirming that so far as is known to it, no Event of Loss has occurred
				  and no unrepaired Material Damage is in existence with respect to such
				  Independent Aircraft; 
				

			 

 

	 
			
				
				   
				

			 	
				
				  (v)
				

			 	
				
				  each of the documents required to be
				  delivered on or prior thereto pursuant to Section 5; 
				

			 

 

	 
			
				
				   
				

			 	
				
				  (vi)
				

			 	
				
				  a copy of the currently valid
				  certificate of airworthiness for such Aircraft issued by the appropriate Air
				  Authority or other reasonably satisfactory evidence thereof; 
				

			 

 

	 
			
				
				   
				

			 	
				
				  (vii)
				

			 	
				
				  for such Independent Aircraft,
				  originals, or certified copies, of certificates evidencing the insurance
				  required to be maintained pursuant to the relevant Assigned Lease or the
				  Novated Lease, as appropriate, for such Independent Aircraft together, if
				  applicable, with a letter or report from an independent firm of insurance
				  brokers; and 
				

			 

 

	 
			
				
				   
				

			 	
				
				  (viii)
				

			 	
				
				  the report of the Purchaser’s
				  insurance advisor in substantially the Agreed Form;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (h)
				

			 	
				
				  the matters disclosed in the First
				  Disclosure Letter, if any, and any Supplemental Disclosure Letter delivered on
				  or prior to such Delivery Date shall be in substance satisfactory to the
				  Purchaser and the Policy Provider; 
				

			 

 

	 
			
				
				   
				

			 	
				
				  (i)
				

			 	
				
				  on such Delivery Date, if the
				  Security Deposit held under the Lease for such Independent Aircraft is in the
				  form of a letter of credit, guarantee, promissory note or other instrument, and
				  not already issued in the name of the Servicer, as servicer or manager, the
				  Seller shall cause such letter of credit, guarantee or other instrument to be
				  duly endorsed, amended or reissued in favor of such Purchaser (or the relevant
				  Affiliate of the Purchaser) or the Seller shall have taken such other actions
				  as may be necessary to effectuate the assignment of all right, title and
				  interest of the Existing Lessor in and to such letter of credit, guarantee,
				  promissory note or instrument to such Purchaser (or the relevant Affiliates of
				  the Purchaser);
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		34
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				  (j)
				

			 	
				
				  the Seller shall have provided to
				  the Company a confirmation from the Servicer that such Independent Aircraft
				  has, as of the AP Closing Date, become an “Aircraft Asset” under and
				  as defined in the Servicing Agreement;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (k)
				

			 	
				
				  the tangible chattel paper original
				  of the Lease (or if an original was never so designated or such original has
				  been lost, a certificate from the Seller to such effect) and the Assignment of
				  Lease or Lease Novation, as applicable, for such Independent Aircraft shall
				  have been delivered to the Security Trustee on such Delivery Date;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (l)
				

			 	
				
				  for such Independent Aircraft, (A)
				  an original of the applicable Lease (together with the related Lease Assignment
				  Documents) and (B) an original of each other Lease Document (or otherwise a
				  copy certified to be true and correct) shall be delivered to the Security
				  Trustee on or prior to the AP Closing Date (except that with respect to
				  Substitute Aircraft, such originals shall be delivered on the Delivery Date
				  therefore); provided that if any such Lease Document contains a material
				  right for the benefit of the lessor thereunder and the Purchaser Entity and/or
				  the Seller thereof does not have an original of such Lease Document in its
				  possession, each such Seller shall provide such other assurances as to the
				  enforceability and admissibility of such Lease Document in any court in the
				  State of New York as the Purchaser may reasonably request;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (m)
				

			 	
				
				  there shall not be in effect on the
				  Delivery Date any Order restraining, enjoining or otherwise prohibiting or
				  making illegal the consummation of any of the transactions contemplated by this
				  Agreement, the other applicable Operative Agreements, the Servicing Agreement,
				  the Security Trust Agreement and the Indenture, or which could reasonably be
				  expected to otherwise result in a material diminution of the benefits of the
				  transactions contemplated by this Agreement, the other applicable Operative
				  Agreements, the Servicing Agreement, the Security Trust Agreement and the
				  Indenture to Purchaser, and there shall not be pending or threatened on the
				  Delivery Date any action or proceeding in, before or by any governmental or
				  regulatory authority which could reasonably be expected to result in the
				  issuance of any such Order; and
				

			 

 

	 
			
				
				   
				

			 	
				
				  (n)
				

			 	
				
				  no proceeding shall have been
				  commenced nor any petition shall have been filed in a court of competent
				  jurisdiction seeking relief in respect of the Guarantor or the Servicer under
				  the United States Code, as now constituted or hereafter amended, or any other
				  U.S. Federal or state or non-U.S. bankruptcy, insolvency, receivership or
				  similar law; no order or decree approving or ordering any of the foregoing
				  shall be entered into; neither the Guarantor nor the Servicer has gone into
				  liquidation, suffered a receivership or a mortgage to take possession of all or
				  substantially all of their assets and no examiner has been appointed over the
				  Guarantor or the Servicer.
				

			 

 

	 
			
				
				  7.3
				

			 	
				
				  Any Purchaser of an Asset or
				  Aircraft, as the case may be, may, at the request of the Seller thereof, in its
				  absolute discretion agree to waive satisfaction of one or more conditions
				  precedent set out in this Section 7 (and in the event of any such waiver such
				  
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		35
	 

	 
		 
	 

	 
	 

	 

	 
		Purchaser may impose such conditions as are
		reasonably acceptable to the Seller to such waiver as it reasonably thinks
		fit); provided that (i) such waiver is disclosed in reasonable detail
		in the First Disclosure Letter, or (ii) such waiver is disclosed in reasonable
		detail in the Supplemental Disclosure Letter with respect to such Aircraft and
		a Rating Agency Confirmation and the prior written consent of the Policy
		Provider have been obtained with respect thereto on or prior to the Delivery
		Date for, or BI Transfer Date in respect of, such Aircraft. 
	 

	 
			
				
				  7.4
				

			 	
				
				  Each Seller of the relevant Aircraft
				  or Asset hereby agrees to use its reasonable commercial efforts to satisfy each
				  of the conditions, if any, set forth in Schedule 4 with respect to the Delivery
				  or Transfer of such Aircraft or Asset within the period therein specified
				  therefore.
				

			 

 

	 
			
				
				  8.

				

			 	
				
				  REPRESENTATIONS AND WARRANTIES
				  OF EACH SELLER
				

			 

 

	 
			
				
				  8.1
				

			 	
				
				  Each Seller (in respect of itself
				  only) of an Asset represents and warrants to the Purchaser of that Asset as of
				  the date of this Agreement, and on the BI Transfer Date or on Delivery Date, as
				  the case may be, of that Asset as follows:
				

			 

 

	 
			
				
				   
				

			 	
				
				  (a)
				

			 	
				
				  such Seller is a corporation, a
				  company, a limited liability company or trust duly established and validly
				  existing under the laws of its jurisdiction of formation and has the corporate
				  or other power to own its assets and carry on its business as it is
				  contemplated herein;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (b)
				

			 	
				
				  such Seller has the corporate or
				  limited liability company power to enter into and perform, and has taken all
				  necessary corporate or other action to authorize the entry into, performance
				  and delivery of, this Agreement and each other Operative Document to which it
				  is a party;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (c)
				

			 	
				
				  the relevant Operative Documents to
				  which such Seller is a party have been, or when executed and delivered will
				  have been, duly entered into by such Seller party thereto and delivered by such
				  Seller party thereto and constitute or, in the case of any Operative Document
				  to be executed on or about the applicable Delivery Date, will constitute on
				  such Delivery Date, the legal, valid and binding obligation of such Seller
				  party thereto, enforceable in accordance with their terms (subject to customary
				  qualifications in any relevant legal opinion);
				

			 

 

	 
			
				
				   
				

			 	
				
				  (d)
				

			 	
				
				  the entry into and performance by
				  such Seller of, and the transactions contemplated by, the relevant Operative
				  Documents to which it is a party do not and will not:
				

			 

 

	 
			
				
				   
				

			 	
				
				  (i)
				

			 	
				
				  breach any laws binding on such
				  Seller or any of its assets to be transferred to such Purchaser hereunder;
				  or
				

			 

 

	 
			
				
				   
				

			 	
				
				  (ii)
				

			 	
				
				  result in any breach of, or
				  constitute a default under the constitutional documents of such Seller;
				  or
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		36
	 

	 
		 
	 

	 
	 

	 

	 
			
				
				   
				

			 	
				
				  (iii)
				

			 	
				
				  result in any breach of, or
				  constitute a default under any agreement, instrument or other document which is
				  binding upon such Seller or any of its assets nor result in the creation of any
				  Encumbrance (other than the Operative Documents) over any of its assets to be
				  transferred to the relevant Purchaser hereunder;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (e)
				

			 	
				
				  the provisions of Section 14
				  concerning applicable law, service of process and jurisdiction are valid and
				  binding on such Seller under the laws of its jurisdiction of organization, and
				  no provision purporting to be binding on such Seller of this Agreement or any
				  of the other applicable Operative Documents is prohibited, unlawful or
				  unenforceable under the laws of its jurisdiction of organization;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (f)
				

			 	
				
				  no liquidator, provisional
				  liquidator, examiner or analogous or similar officer has been appointed in
				  respect of all or any material part of the assets of such Seller (or, to its
				  knowledge, any non-material part of the assets of such Seller which would, if
				  it were subject to a liquidator, provisional liquidator, examiner or analogous
				  or similar officer, have a material adverse effect on such Seller’s
				  financial condition or its ability to perform its obligations hereunder) nor
				  has any application been made to a court which is still pending for an order
				  for, or any act, matter or thing been done which with the giving of notice,
				  lapse of time or satisfaction of some other condition (or any combination
				  thereof) will lead to, the appointment of any such officers or equivalent in
				  any jurisdiction; and it is not entering into this Agreement with the intent to
				  hinder, defraud or delay any creditor;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (g)
				

			 	
				
				  except if and as advised by such
				  Seller to such Purchaser in a Disclosure Letter, no litigation, arbitration or
				  claim before any court, arbitrator, governmental or administrative agency or
				  authority which would have a material adverse effect on the ability of such
				  Seller to observe or perform its obligations under this Agreement or any other
				  applicable Operative Documents to which such Seller is a party is in progress,
				  or to the knowledge of such Seller, threatened against such Seller; 
				

			 

 

	 
			
				
				   
				

			 	
				
				  (h)
				

			 	
				
				  if applicable, its jurisdiction of
				  incorporation or organization is as specified on Schedule 5;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (i)
				

			 	
				
				  to such Seller’s knowledge, the
				  Appraisals of the Appraisers of its Aircraft delivered to such Purchaser on the
				  AP Closing Date were true and complete copies thereof; and
				

			 

 

	 
			
				
				   
				

			 	
				
				  (j)
				

			 	
				
				  each of the Seller and the Purchaser
				  Entity intends for the sale of any Asset contemplated hereby to constitute a
				  valid transfer of such Asset to the relevant Purchaser and intends that after
				  the Delivery Date of the Asset the Seller thereof shall retain no right, title
				  or interest in such Asset.
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		37
	 

	 
		 
	 

	 
	 

	 

	 
			
				
				  8.2
				

			 	
				
				  Each Seller (in respect of itself
				  only) of an Independent Aircraft further represents and warrants to the
				  Purchaser of such Independent Aircraft on the Delivery Date with respect to
				  such Independent Aircraft as follows:
				

			 

 

	 
			
				
				   
				

			 	
				
				  (a)
				

			 	
				
				  except if and as advised by such
				  Seller to such Purchaser in a Disclosure Letter, so far as concerns the
				  obligations of such Seller (and except for the registration of particulars of
				  the relevant Lease Novation or Assignment of Lease with the appropriate Air
				  Authority or other actions referred to therein or herein, if applicable) all
				  authorizations, consents, registrations and notifications required in
				  connection with the entry into, performance, validity and enforceability of,
				  this Agreement, the transactions contemplated by this Agreement and the other
				  applicable Operative Documents to which it is a party, have been (or will on or
				  before the Delivery Date of such Aircraft have been) obtained or effected (as
				  appropriate) and are (or will on their being obtained or effected be) in full
				  force and effect;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (b)
				

			 	
				
				  except if and as advised by such
				  Seller to such Purchaser in a Disclosure Letter, the Lease Documents listed in
				  Schedule 2 or the Substitute Aircraft Supplement, as applicable, constitute the
				  whole agreement between the relevant lessor and the relevant Lessee as of
				  Delivery (and pertaining to the period on and after Delivery) relating to such
				  Aircraft and includes a complete list (other than the Operative Documents) of
				  all amendments, supplements, novations, and written consents, approvals and
				  waivers relevant to the Lease with respect to the period on and after Delivery,
				  and there are no oral waivers in effect that would modify or amend the terms
				  thereof in any material respect with respect to the period on and after
				  Delivery;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (c)
				

			 	
				
				  except if and as advised by such
				  Seller to such Purchaser thereof in the First Disclosure Letter, to such
				  Seller’s knowledge no Material Default has occurred and is continuing
				  under the relevant Lease on and as of the AP Closing Date;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (d)
				

			 	
				
				  except if and as advised by such
				  Seller to such Purchaser thereof in the First Disclosure Letter, there are no
				  outstanding claims which have been asserted by the Lessee against such Seller
				  arising out of the relevant Lease (other than claims constituting Permitted
				  Encumbrances and other than claims for maintenance contribution payments that
				  will be the responsibility of the Seller or for other payments that will be the
				  responsibility of the Seller) on and as of the AP Closing Date;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (e)
				

			 	
				
				  such Seller has, or at Delivery will
				  have, full legal and, subject to a Formation Agreement, beneficial title to
				  such Aircraft, free from Encumbrances other than Permitted Encumbrances and the
				  Bill of Sale (together, in the case of any Aircraft registered in Germany, with
				  a transfer agreement) is effective to convey irrevocably title to such
				  Purchaser and the transfer of such Aircraft is not avoidable or otherwise
				  subject to rescission by reason of any lawful claim of any other Person by or
				  through such Seller (including any prior transferor thereof or any Person
				  acting on behalf of or claiming through any such transferor);
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		38
	 

	 
		 
	 

	 
	 

	 

	 
			
				
				   
				

			 	
				
				  (f)
				

			 	
				
				  to such Seller’s knowledge, and
				  except if and as advised by such Seller to such Purchaser in the First
				  Disclosure Letter, there are no Lessee Encumbrances on and as of the AP Closing
				  Date which are not permitted pursuant to the terms of the relevant Lease
				  Document;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (g)
				

			 	
				
				  (i) to such Seller’s knowledge,
				  such Aircraft has not, except if and as advised by such Seller to such
				  Purchaser in the First Disclosure Letter, been involved in any incident on or
				  before the AP Closing Date which caused damage in excess of the amount required
				  to be disclosed to the relevant lessor under the relevant Lease, and
				  (ii) the summary technical information provided by the Seller and its
				  representatives to the Appraisers with respect to such Aircraft and on which
				  the Appraisers relied in making their Appraisals is true and correct in all
				  material respects and there are no facts or circumstances known to such Seller
				  as of the AP Closing Date which would render any of the technical
				  specifications with respect to such Aircraft assumptions contained in the
				  Appraisals for such Aircraft to be materially inaccurate (and for the avoidance
				  of doubt, such Seller does not make any representation or warranty concerning,
				  and has not investigated in any respect, the valuations or financial
				  adjustments contained in the Appraisals or of any industry data, aircraft or
				  Aircraft data (except solely the summary technical data provided by such
				  Seller), methodologies, assumptions or conclusions contained in the
				  Appraisals);
				

			 

 

	 
			
				
				   
				

			 	
				
				  (h)
				

			 	
				
				  to such Seller’s knowledge,
				  except if and as disclosed by such Seller to such Purchaser in the First
				  Disclosure Letter, (i) in the case of each Seller that is not JET-i or an
				  Affiliate of JET-i, no compulsory airworthiness directives are outstanding on
				  and as of the AP Closing Date against such Aircraft which will require, as of
				  the AP Closing Date based on the estimated cost of such work as of the AP
				  Closing Date, such Seller or such Purchaser to make contributions to the cost
				  of compliance therewith as required under the provisions of the Leases as in
				  effect on the AP Closing Date and (ii) in the case of each Seller that is an
				  Affiliate of JET-i, no compulsory airworthiness directives are outstanding on
				  and as of the AP Closing Date against such Aircraft which will require, as of
				  the AP Closing Date based on the estimated cost of such work as of the AP
				  Closing Date, such Seller or such Purchaser to make contributions to the cost
				  of compliance therewith as required under the provisions of the Leases as in
				  effect on the AP Closing Date in excess of an amount, when taken together with
				  similar amounts for all Sellers that are Affiliates of JET-i and their
				  respective Purchasers of Aircraft (whether or not Independent Aircraft), that
				  would exceed $1,250,000 during the terms of the Leases (excluding any extension
				  or renewal thereof) for all Aircraft as in effect on the AP Closing
				  Date;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (i)
				

			 	
				
				  to such Seller’s knowledge,
				  except if and as disclosed by such Seller to such Purchaser in the First
				  Disclosure Letter, no options to purchase such Aircraft, extend or terminate
				  the relevant Lease have been exercised on or before the AP Closing Date by the
				  relevant Lessee under the relevant Lease Documents;
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		39
	 

	 
		 
	 

	 
	 

	 

	 
			
				
				   
				

			 	
				
				  (j)
				

			 	
				
				  the information set forth in each of
				  the Disclosure Letters with respect to such Seller’s Aircraft is or will
				  be when issued true and accurate in all material respects as of its
				  date;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (k)
				

			 	
				
				  except if and as advised by such
				  Seller to such Purchaser in the First Disclosure Letter, to such Seller’s
				  knowledge, as of the AP Closing Date, the provisions of each Lease relating to
				  the granting of any Security Deposit thereunder remain in full force and
				  effect;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (l)
				

			 	
				
				  to such Seller’s knowledge and
				  except if and as advised by such Seller to such Purchaser in the First
				  Disclosure Letter, as of the AP Closing Date, no event has occurred or act or
				  thing done or omitted to be done by such Seller (excluding however from this
				  representation and warranty acts or things done or omitted to be done after the
				  AP Closing Date on the instructions of the Purchaser) pursuant to which or as a
				  result of which the relevant Lease can be terminated by the applicable Lessee
				  in accordance with the terms of the relevant Lease or the obligations of any
				  such party thereunder would be rendered invalid or unenforceable;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (m)
				

			 	
				
				  to such Seller’s knowledge,
				  except if and as advised by such Seller to such Purchaser in the First
				  Disclosure Letter or set forth in Schedule 2, such Seller’s Aircraft is
				  not as of the AP Closing Date subject to any sub-lease (exclusive of
				  “wet-leases”) from the relevant Lessee;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (n)
				

			 	
				
				  to such Seller’s knowledge, the
				  information provided by such Seller to such Purchaser prior to the Delivery
				  Date as to the identities of all of such Seller’s predecessors in title to
				  such Aircraft thereof is complete and accurate in all material respects;

				

			 

 

	 
			
				
				   
				

			 	
				
				  (o)
				

			 	
				
				  to such Seller’s knowledge,
				  except if and as advised by such Seller to such Purchaser in a Disclosure
				  Letter, such Aircraft has been accepted by the relevant Lessee under the Lease
				  thereof without qualification or exception or to the extent that any such
				  acceptance was given subject to any qualification or exception or subject to
				  any liability on the part of such Seller or relevant Affiliate of such Seller
				  to pay or reimburse any costs or expenses or to undertake any repairs or
				  modifications at the expense of such Seller, such qualifications and exceptions
				  have been discharged or waived by the Lessee and have ceased to apply and no
				  such costs or expenses remain to be reimbursed and all defects referred to
				  therein have been duly rectified or waived by such Lessee, or such Seller or
				  lessor Affiliate of such Seller has retained the rectification or payment
				  obligations associated therewith;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (p)
				

			 	
				
				  except for documents or provisions
				  that will be inapplicable to the relevant Purchaser Entity on and after the
				  Delivery Date therefore, the information and statements with respect to such
				  Seller’s Aircraft as to and relating to the relevant Lease and the Lease
				  Documents set forth in Schedule 2 as of the AP Closing Date 
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		40
	 

	 
		 
	 

	 
	 

	 

	 
		or the Substitute Aircraft Supplement, as
		applicable, are true and complete in all material respects;
	 

	 
			
				
				   
				

			 	
				
				  (q)
				

			 	
				
				  the sale of such Aircraft
				  contemplated hereby constitutes a valid and irrevocable transfer of all of the
				  Seller’s right, title and interest in and to such Aircraft to such
				  Purchaser and after Delivery of such Aircraft such Seller shall retain no
				  right, title or interest in such Aircraft;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (r)
				

			 	
				
				  on and as of the AP Closing Date the
				  lessor under the relevant Lease pertaining to such Aircraft shall have paid to
				  the relevant Lessee all amounts then due and payable on and as of the AP
				  Closing Date by such lessor to such Lessee in respect of maintenance
				  theretofore performed on such Aircraft as required by the Lease Documents;
				  and
				

			 

 

	 
			
				
				   
				

			 	
				
				  (s)
				

			 	
				
				  each of the Seller and the Purchaser
				  intends for the sale of any Asset contemplated hereby to constitute a valid
				  transfer of such Asset to the Purchaser and intends that after the Delivery
				  Date of the Asset the Seller thereof shall retain no right, title or interest
				  in such Asset.
				

			 

 

	 
			
				
				  8.3
				

			 	
				
				  Each BI Seller of a Beneficial
				  Interest in a Purchaser Entity further represents and warrants to the Purchaser
				  of that Beneficial Interest on the BI Transfer Date with respect to the
				  Transfer of such Beneficial Interest as follows:
				

			 

 

	 
			
				
				   
				

			 	
				
				  (a)
				

			 	
				
				  except if and as advised by such BI
				  Seller to such Purchaser in a Disclosure Letter, so far as concerns the
				  obligations of such BI Seller (and except for the registration of particulars
				  of the relevant Assignment of Beneficial Interest with the appropriate Air
				  Authority or other actions referred to therein or herein, if applicable) all
				  authorizations, consents, registrations and notifications required in
				  connection with such Seller’s entry into, performance, validity and
				  enforceability of, this Agreement, the transactions contemplated by this
				  Agreement and the other applicable Operative Documents to which it is a party,
				  have been (or will on or before the BI Transfer Date of such Aircraft have
				  been) obtained or effected (as appropriate) and are (or will on their being
				  obtained or effected be) in full force and effect;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (b)
				

			 	
				
				  except if and as advised by such BI
				  Seller to such Purchaser in a Disclosure Letter, the Lease Documents listed in
				  Schedule 2 is respect of such Aircraft or the Substitute Aircraft Supplement,
				  as applicable, constitute the whole agreement between the relevant lessor and
				  the relevant Lessee as of Delivery (and pertaining to the period on and after
				  Delivery) relating to such Aircraft and includes a complete list (other than
				  the Operative Documents) of all amendments, supplements, novations, and written
				  consents, approvals and waivers relevant to the Lease with respect to the
				  period on and after the BI Transfer Date, and there are no oral waivers in
				  effect that would modify or amend the terms thereof in any material respect
				  with respect to the period on and after BI Transfer Date;
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		41
	 

	 
		 
	 

	 
	 

	 

	 
			
				
				   
				

			 	
				
				  (c)
				

			 	
				
				  except if and as advised by such BI
				  Seller to such Purchaser in the First Disclosure Letter, to such BI
				  Seller’s knowledge no Material Default has occurred and is continuing
				  under the Lease for such Aircraft on and as of the AP Closing Date;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (d)
				

			 	
				
				  except if and as advised by such BI
				  Seller to such Purchaser in the First Disclosure Letter, there are no
				  outstanding claims which have been asserted by the Lessee against such BI
				  Seller arising out of the relevant Lease (other than claims constituting
				  Permitted Encumbrances and other than claims for maintenance contribution
				  payments that will be the responsibility of such BI Seller or for other
				  payments that will be the responsibility of such BI Seller) on and as of the AP
				  Closing Date;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (e)
				

			 	
				
				  such BI Seller has, or at the time
				  of Transfer of such Beneficial Interest will have, full legal and beneficial
				  title to such Beneficial Interest, free from Encumbrances other than Permitted
				  Encumbrances, and such Purchaser Entity will at such date have full legal and
				  beneficial title to such Aircraft, free from Encumbrances other than Permitted
				  Encumbrances and the transfer of such Beneficial Interest is not avoidable or
				  otherwise subject to rescission by reason of a lawful claim of any other Person
				  by or through such BI Seller (including a prior transferor thereof or of the
				  related Aircraft acting on behalf of or claiming through such BI
				  Seller);
				

			 

 

	 
			
				
				   
				

			 	
				
				  (f)
				

			 	
				
				  to such BI Seller’s knowledge,
				  and except if and as advised by such BI Seller to such Purchaser in the First
				  Disclosure Letter, there are no Lessee Encumbrances on and as of the AP Closing
				  Date which are not permitted pursuant to the terms of the relevant Lease
				  Document in respect of such Aircraft;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (g)
				

			 	
				
				  to such BI Seller’s knowledge,
				  (i) such Aircraft has not, except if and as advised by such BI Seller to such
				  Purchaser in the First Disclosure Letter, been involved in any incident on or
				  before the AP Closing Date which caused damage in excess of the amount required
				  to be disclosed to the relevant lessor under the relevant Lease, and
				  (ii) the summary technical information provided by such BI Seller and its
				  representatives to the Appraisers with respect to such Aircraft and on which
				  the Appraisers relied in making their Appraisals is true and correct in all
				  material respects and there are no facts or circumstances known to such BI
				  Seller as of the AP Closing Date which would render any of the technical
				  specifications with respect to such Aircraft assumptions contained in the
				  Appraisals for such Aircraft to be materially inaccurate (and for the avoidance
				  of doubt, such BI Seller does not make any representation or warranty
				  concerning, and has not investigated in any respect, the valuations or
				  financial adjustments contained in the Appraisals or of any industry data,
				  aircraft or Aircraft data (except solely the summary technical data provided by
				  such BI Seller), methodologies, assumptions or conclusions contained in the
				  Appraisals);
				

			 

 

	 
			
				
				   
				

			 	
				
				  (h)
				

			 	
				
				  to such BI Seller’s knowledge,
				  except if and as advised by such BI Seller to such Purchaser in the First
				  Disclosure Letter, no compulsory airworthiness directives are outstanding on
				  and as of the AP Closing Date against such Aircraft which will 
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		42
	 

	 
		 
	 

	 
	 

	 

	 
		require, as of the AP Closing Date based on
		the estimated cost of such work as of the AP Closing Date, such Seller or such
		Purchaser to make contributions to the cost of compliance therewith as required
		under the provisions of the Leases as in effect on the AP Closing Date in
		excess of an amount, when taken together with similar amounts for all Sellers
		that are Affiliates of JET-i and their respective Purchasers of Aircraft
		(whether or not Independent Aircraft), that would exceed $1,250,000 during the
		terms of the Leases (excluding any extension or renewal thereof) for all
		Aircraft as in effect on the AP Closing Date;
	 

	 
			
				
				   
				

			 	
				
				  (i)
				

			 	
				
				  to such BI Seller’s knowledge,
				  except if and as disclosed by such BI Seller to such Purchaser in the First
				  Disclosure Letter, no options to purchase such Aircraft, extend or terminate
				  the Lease of such Aircraft have been exercised on or before the AP Closing Date
				  by the Lessee under such Lease or the related Lease Documents;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (j)
				

			 	
				
				  the information set forth in each of
				  the Disclosure Letters with respect to such Aircraft is or will be when issued
				  true and accurate in all material respects as of its date;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (k)
				

			 	
				
				  except if and as advised by such BI
				  Seller to such Purchaser in the First Disclosure Letter, to such BI
				  Seller’s knowledge, as of the AP Closing Date, the provisions of each
				  Lease relating to the granting of any Security Deposit thereunder remain in
				  full force and effect;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (l)
				

			 	
				
				  to such BI Seller’s knowledge
				  and except if and as advised by such BI Seller to such Purchaser in the First
				  Disclosure Letter, as of the AP Closing Date, no event has occurred or act or
				  thing done or omitted to be done by such BI Seller (excluding however from this
				  representation and warranty acts or things done or omitted to be done after the
				  AP Closing Date on the instructions of such Purchaser) pursuant to which or as
				  a result of which the relevant Lease can be terminated by the applicable Lessee
				  in accordance with the terms of the Lease for such Aircraft or the obligations
				  of any such party thereunder would be rendered invalid or unenforceable;

				

			 

 

	 
			
				
				   
				

			 	
				
				  (m)
				

			 	
				
				  to such BI Seller’s knowledge,
				  except if and as advised by such BI Seller to such Purchaser in the First
				  Disclosure Letter or set forth in Schedule 2, such Aircraft is not as of the AP
				  Closing Date subject to any sub-lease (exclusive of “wet-leases”)
				  from the relevant Lessee;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (n)
				

			 	
				
				  to such BI Seller’s knowledge,
				  the information provided by such BI Seller to such Purchaser prior to the
				  Delivery Date as to the identities of all of such Purchaser Entity’s
				  predecessors in title to such Aircraft thereof is complete and accurate in all
				  material respects;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (o)
				

			 	
				
				  to such BI Seller’s knowledge,
				  except if and as advised by such BI Seller to such Purchaser in a Disclosure
				  Letter, such Aircraft has been accepted by the relevant Lessee under the Lease
				  thereof without qualification or exception or to the extent 
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		43
	 

	 
		 
	 

	 
	 

	 

	 
		that any such acceptance was given subject
		to any qualification or exception or subject to any liability on the part of
		such BI Seller or relevant Affiliate of the BI Seller to pay or reimburse any
		costs or expenses or to undertake any repairs or modifications at the expense
		of such BI Seller, such qualifications and exceptions have been discharged or
		waived by the Lessee and have ceased to apply and no such costs or expenses
		remain to be reimbursed and all defects referred to therein have been duly
		rectified or waived by such Lessee, or such BI Seller or lessor Affiliate of
		such BI Seller has retained the rectification or payment obligations associated
		therewith;
	 

	 
			
				
				   
				

			 	
				
				  (p)
				

			 	
				
				  except for documents or provisions
				  that will be inapplicable to the relevant Purchaser Entity on and after the BI
				  Transfer Date therefore, the information and statements as to and relating to
				  the relevant Lease and the Lease Documents in respect of such Aircraft set
				  forth in Schedule 2 as of the AP Closing Date or the Substitute Aircraft
				  Supplement, as applicable, are true and complete in all material
				  respects;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (q)
				

			 	
				
				  on and as of the AP Closing Date the
				  lessor under the relevant Lease pertaining to such BI Aircraft shall have paid
				  to the relevant Lessee all amounts then due and payable on and as of the AP
				  Closing Date by such lessor to such Lessee in respect of maintenance
				  theretofore performed on such BI Aircraft as required by the Lease Documents;
				  
				

			 

 

	 
			
				
				   
				

			 	
				
				  (r)
				

			 	
				
				  the sale of such Beneficial Interest
				  contemplated hereby constitutes a valid and irrevocable transfer of such
				  Beneficial Interest and such BI Seller shall retain no right, title or interest
				  in such Beneficial Interest;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (s)
				

			 	
				
				  neither the BI Seller nor anyone
				  acting on its behalf has offered such Beneficial Interest or any similar
				  securities for sale to, or solicited any offer to buy any of the same from, any
				  person in a manner which would violate the Securities Act, and neither the BI
				  Seller nor anyone acting on their behalf have taken, or will take, any action
				  that would subject the issuance or sale of such Beneficial Interest to the
				  registration requirements of Section 5 of the Securities Act or other
				  applicable securities laws;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (t)
				

			 	
				
				  with respect to each Purchaser
				  Entity, except as set forth in the Formation Agreements, there are no voting
				  trusts, membership agreements, proxies or other agreements or understandings in
				  effect with respect to (i) the voting of the Beneficial Interest or (ii) other
				  than those contained in the Operative Documents, the Lease Documents or the
				  Formation Agreement, the Transfer of the Beneficial Interest and, that no
				  Formation Agreement contains any provision that would prohibit or impair the
				  Transfer of the applicable Beneficial Interest in accordance with this
				  Agreement;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (u)
				

			 	
				
				  complete and accurate copies of any
				  membership register, minute book or stock register with respect to such
				  Purchaser Entity have been provided to such Purchaser;
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		44
	 

	 
		 
	 

	 
	 

	 

	 
			
				
				   
				

			 	
				
				  (v)
				

			 	
				
				  to the extent such exist, the books
				  of account and other financial records of such Purchaser Entity accurately
				  reflect all items of income and expense and all assets and liabilities required
				  to be reflected therein in accordance with and applied on a basis consistent
				  with the past practices of such Purchaser Entity;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (w)
				

			 	
				
				  except to the extent that same is
				  the responsibility of the Lessee under a Lease, the relevant Purchaser Entity
				  has obtained and is maintaining all permits, licenses, authorizations,
				  certifications, exemptions and approvals necessary to enable it to carry on its
				  business as presently conducted (collectively, the “Permits”),
				  and all such Permits are in full force and effect; and
				

			 

 

	 
			
				
				   
				

			 	
				
				  (x)
				

			 	
				
				  full and accurate particulars of all
				  material contracts or agreements (collectively, the
				  “Contracts”) to which the relevant Purchaser Entity is a party
				  at the AP Closing Date that do not consist of the Formation Agreements, the
				  Lease Documents, the Operative Documents or other documents described herein
				  and that do not pertain to the Purchaser Entities’ ordinary course of
				  business and that will continue in effect after the Delivery Date have been
				  disclosed to such Purchaser in the First Disclosure Letter and each Contract
				  including the Formation Agreement, the Lease Documents and the Operative
				  Documents (i) is legal, valid and binding on the relevant Purchaser Entity and
				  is in full force and effect in accordance with its terms with respect to such
				  Purchaser Entity and (ii) upon completion of the transactions contemplated by
				  the Operative Documents, shall continue in full force and effect with respect
				  to such Purchaser Entity, without penalty or adverse consequence. To the
				  knowledge of such BI Seller after due inquiry, neither such BI Seller nor the
				  relevant Purchaser Entity is in breach of, or default under, any Contract to
				  which it is a party.
				

			 

 

	 
			
				
				  8.4
				

			 	
				
				  Each BI Seller with respect to each
				  Purchaser Entity the Beneficial Interests of which such BI Seller will
				  Transfer, further represents and warrants to the Purchaser thereof on the BI
				  Transfer Date for such Beneficial Interest as follows:
				

			 

 

	 
			
				
				   
				

			 	
				
				  (a)
				

			 	
				
				  such Purchaser Entity is duly
				  organized, validly existing and, to the extent applicable, in good standing
				  under the laws of the jurisdiction of its organization and has full corporate,
				  company, trust or other power and authority to conduct its business as and to
				  the extent now conducted and to own, use and lease its assets. Such Purchaser
				  Entity is duly qualified, licensed or admitted to do business and is in good
				  standing in those jurisdictions in which the ownership, use or leasing of its
				  assets, or the conduct or nature of its business, makes such qualification,
				  licensing or admission necessary, except for those jurisdictions in which the
				  adverse effects of all such failures by such Purchaser Entity to be qualified,
				  licensed or admitted and in good standing can in the aggregate be eliminated
				  without material cost or expense by such Purchaser Entity, as the case may be,
				  becoming qualified or admitted and in good standing. Such BI Seller has, prior
				  to the execution of this Agreement, delivered to such Purchaser true and
				  complete copies of such Purchaser Entity’s organizational documents
				  (including any limited liability company agreements, limited partnership
				  agreements or Formation Agreements) as in effect on the date hereof;
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		45
	 

	 
		 
	 

	 
	 

	 

	 
			
				
				   
				

			 	
				
				  (b)
				

			 	
				
				  the Beneficial Interests of such
				  Purchaser Entity are duly authorized, validly issued, outstanding and, in the
				  case of Beneficial Interests consisting of stock or shares, fully paid and
				  nonassessable. Such BI Seller owns the Beneficial Interests, beneficially and
				  of record, free and clear of all Encumbrances (other than Permitted
				  Encumbrances), and there are no other Beneficial Interests of such Purchaser
				  Entity issued and outstanding. Except for this Agreement, there are no
				  outstanding options to acquire the Beneficial Interests or any other equity
				  interest with respect to such Purchaser Entity. Such Beneficial Interests are
				  or will be represented by certificates, and the delivery of a certificate or
				  certificates at the Closing representing the Beneficial Interests in the manner
				  provided in Section 2.1 together with the Assignment of Beneficial Interest
				  contemplated hereunder and any recording thereof in the books and records of
				  such Person will transfer to such Purchaser full legal and beneficial title to
				  the Beneficial Interests, free and clear of all Encumbrances (other than
				  Permitted Encumbrances). In the case of Beneficial Interests not represented by
				  certificates, delivery of the Assignment of Beneficial Interest and recording
				  of such Purchaser’s ownership of such Beneficial Interests in the books
				  and records of the Purchaser Entity will transfer to such Purchaser full legal
				  and beneficial title to the Beneficial Interests, free and clear of all
				  Encumbrances (other than Permitted Encumbrances);
				

			 

 

	 
			
				
				   
				

			 	
				
				  (c)
				

			 	
				
				  such Purchaser Entity has no
				  Subsidiaries except as disclosed in the First Disclosure Letter;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (d)
				

			 	
				
				  on or prior to the BI Transfer Date,
				  the Assignment of Beneficial Interest has been duly executed and delivered by
				  all parties thereto;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (e)
				

			 	
				
				  except for (i) the Aircraft listed
				  on Schedule 1 for such Purchaser Entity, (ii) cash or other property held for
				  the account of any Lessee as Security Deposit, (iii) any rights arising under
				  the Operative Documents to which it is a party and the Lease, other Lease
				  Documents and any Intercompany Lease, (iv) any Subsidiary disclosed in the
				  First Disclosure Letter and (v) any receivables disclosed in the First
				  Disclosure Letter, such Purchaser Entity has no other Assets;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (f)
				

			 	
				
				  except for the Formation Agreement,
				  the Lease, the Lease Documents and the Assignment of Beneficial Interest there
				  are no Encumbrances (other than Permitted Encumbrances) on any of the assets or
				  properties of such Purchaser Entity and the Transfer of the Beneficial
				  Interests in the manner contemplated by this Agreement will not create any
				  Encumbrances (other than Permitted Encumbrances referenced in clause (1) or (2)
				  of the definition of such term) on the assets or properties of such Purchaser
				  Entity;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (g)
				

			 	
				
				  such Purchaser Entity has no
				  employees, except as may be required by Applicable Law;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (h)
				

			 	
				
				  to such BI Seller’s knowledge,
				  there are no Orders outstanding against such Purchaser Entity;
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		46
	 

	 
		 
	 

	 
	 

	 

	 
			
				
				   
				

			 	
				
				  (i)
				

			 	
				
				  such Purchaser Entity is not and has
				  not at any time since its organization as an entity been, or has received any
				  notice that it is or has at any time since its organization as an entity been,
				  in violation of or in default under, in any material respect, Applicable Law or
				  Order applicable to such Purchaser Entity or any of its assets or
				  properties;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (j)
				

			 	
				
				  no liquidator, provisional
				  liquidator, examiner or analogous or similar officer has been appointed in
				  respect of all or any part of the assets of such Purchaser Entity nor has any
				  application been made to a court which is still pending for an Order for, or
				  any act, matter or thing been done which with the giving of notice, lapse of
				  time or satisfaction of some other condition (or any combination thereof) will
				  lead to, the appointment of any such officers or equivalent in any
				  jurisdiction;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (k)
				

			 	
				
				  as of such BI Transfer Date, the
				  entry into and performance by such Purchaser Entity of, and the transactions
				  contemplated by, the relevant Operative Documents to which it is a party, on
				  such BI Transfer Date while such Beneficial Interest is owned by the BI Seller
				  thereof, do not and will not:
				

			 

 

	 
		(i) breach any laws, rules, regulations,
		orders, judgments or decrees binding on such Purchaser Entity or any of their
		respective assets on such BI Transfer Date while such Beneficial Interest is
		owned by the BI Seller thereof; or
	 

	 
		(ii) result in any breach of, or constitute
		a default under the constitutional documents of such Purchaser Entity on such
		BI Transfer Date while such Beneficial Interest is owned by the BI Seller
		thereof; or
	 

	 
		(iii) result in any breach of, or constitute
		a default under any agreement, document or instrument which is binding upon
		such Purchaser Entity or any of its respective assets on such BI Transfer Date
		while such Beneficial Interest is owned by the BI Seller thereof or result
		thereunder in the creation of any Encumbrance (other than any Permitted
		Encumbrance) over any of its respective assets to be transferred to the
		relevant Purchaser hereunder;
	 

	 
			
				
				   
				

			 	
				
				  (l)
				

			 	
				
				  except if and as advised by such BI
				  Seller, to such Purchaser in a Disclosure Letter, no litigation, arbitration or
				  claim before any court, arbitrator, governmental or administrative agency or
				  authority to which such Purchaser Entity is a party which would have a material
				  adverse effect on the ability of such Purchaser Entity to observe or perform
				  its respective obligations under any applicable Operative Documents to which
				  such Purchaser Entity is a party on such BI Transfer Date while such Beneficial
				  Interest is owned by the BI Seller thereof is in progress, or to the knowledge
				  of such BI Seller, as applicable, threatened against such Purchaser
				  Entity;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (m)
				

			 	
				
				  since such Purchaser Entity’s
				  acquisition of its interest in such Aircraft such Purchaser Entity has been
				  covered by aviation liability insurance policies in such types and amounts and
				  covering such risks and with such insurers as are substantially consistent with
				  such BI Seller’s customary practices and such 
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		47
	 

	 
		 
	 

	 
	 

	 

	 
		aviation liability insurance remains in
		effect as to such Purchaser Entity on such BI Transfer Date; and
	 

	 
			
				
				   
				

			 	
				
				  (n)
				

			 	
				
				  there are no Liabilities of the
				  relevant Purchaser Entity other than Liabilities arising under the Lease
				  Documents, the Formation Agreements or the Operative Documents, Liabilities
				  incurred in the ordinary course of business or Liabilities disclosed in a
				  Disclosure Letter or contemplated hereby. 
				

			 

 

	 
			
				
				  8.5
				

			 	
				
				  Except if and as advised to the
				  Purchaser thereof in a Disclosure Letter, each BI Seller of a Purchaser
				  Non-Corporate Entity further represents and warrants on the AP Closing Date
				  with respect to the Transfer of the Beneficial Interest of the relevant
				  Purchaser Non-Corporate Entity as follows:
				

			 

 

	 
			
				
				   
				

			 	
				
				  (a)
				

			 	
				
				  such Purchaser Non-Corporate Entity
				  is and has been at all time from its organization an entity treated either as a
				  disregarded entity, a grantor trust or a partnership, in each case, a
				  pass-through entity for U.S. tax purposes and the relevant BI Seller has made
				  an election, where it is required, to treat the Purchaser Non-Corporate Entity
				  at all time from its organization as an entity taxable either as a disregarded
				  entity, a grantor trust or a partnership, in each case, a pass-through entity
				  for U.S. tax purposes;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (b)
				

			 	
				
				  such Purchaser Non-Corporate Entity
				  has paid all material Taxes that are due or claimed or asserted by any taxing
				  authority to be due from such Purchaser Non-Corporate Entity on or prior to the
				  AP Closing Date and there are no Tax liens upon the assets of the Purchaser
				  Non-Corporate Entity except liens for Taxes not yet due; and
				

			 

 

	 
			
				
				   
				

			 	
				
				  (c)
				

			 	
				
				  such Purchaser Non-Corporate Entity
				  has materially complied with all applicable laws, rules, and regulations
				  relating to the payment and withholding of Taxes (including withholding and
				  reporting requirements under Code Sections 1441 through 1464, 3401 through
				  3406, 6041 and 6049 and similar provisions under any other applicable laws) and
				  has, to the extent material, within the time and in the manner prescribed by
				  law, withheld from employee wages and paid over to the proper governmental
				  authorities all required amounts.
				

			 

 

	 
			
				
				  8.6
				

			 	
				
				  Except if and as advised to the
				  Purchaser thereof in a Disclosure Letter, each BI Seller of (i) a
				  Purchaser Corporate Entity and (ii) of a Purchaser Non-Corporate Entity to
				  the extent such Purchaser Non-Corporate Entity is not treated as a disregarded
				  entity, a grantor trust or a partnership, in each case, a pass-through entity
				  for U.S. tax purposes (a “Purchaser
				  State Corporate Entity”) further
				  represents and warrants to the Purchaser thereof on the AP Closing Date with
				  respect to the Transfer of the Beneficial Interest of such Purchaser Corporate
				  Entity or Purchaser State Corporate Entity as follows:
				

			 

 

	 
			
				
				   
				

			 	
				
				  (a)
				

			 	
				
				  such Purchaser Corporate Entity or
				  such Purchaser State Corporate Entity has filed (or has had filed on its
				  behalf) all income and other material Tax Returns required to be filed by
				  applicable law prior to the date hereof and all Tax Returns 
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		48
	 

	 
		 
	 

	 
	 

	 

	 
		were materially true, complete and, to the
		extent material, correct and filed on a timely basis;
	 

	 
			
				
				   
				

			 	
				
				  (b)
				

			 	
				
				  such Purchaser Corporate Entity or
				  such Purchaser State Corporate Entity has paid all material Taxes that are due,
				  or claimed or asserted by any taxing authority to be due, from the Purchaser
				  Corporate Entity or such Purchaser State Corporate Entity on or prior to the AP
				  Closing Date and there are no Tax liens upon such assets of the Purchaser
				  Corporate Entity or such Purchaser State Corporate Entity except liens for
				  Taxes not yet due;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (c)
				

			 	
				
				  such Purchaser Corporate Entity or
				  such Purchaser State Corporate Entity has materially complied with all
				  applicable laws, rules, and regulations relating to the payment and withholding
				  of Taxes (including withholding and reporting requirements under Code Sections
				  1441 through 1464, 3401 through 3406, 6041 and 6049 and similar provisions
				  under any other applicable laws) and has, to the extent material, within the
				  time and in the manner prescribed by law, withheld from employee wages and paid
				  over to the proper governmental authorities all required amounts;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (d)
				

			 	
				
				  such Purchaser Corporate Entity or
				  such Purchaser State Corporate Entity has not requested (and no request has
				  been made on its behalf) any extension of time within which to file any Tax
				  Return;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (e)
				

			 	
				
				  such Purchaser Corporate Entity or
				  such Purchaser State Corporate Entity has not executed any outstanding waivers
				  or comparable consents regarding the application of the statute of limitations
				  for any Taxes or Tax Returns (and no extensions have been executed on its
				  behalf);
				

			 

 

	 
			
				
				   
				

			 	
				
				  (f)
				

			 	
				
				  no audits or other administrative
				  proceedings or court proceedings are presently pending with regard to any Taxes
				  or Tax Returns of such Purchaser Corporate Entity or such Purchaser State
				  Corporate Entity;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (g)
				

			 	
				
				  such Purchaser Corporate Entity or
				  such Purchaser State Corporate Entity has not received any written ruling of a
				  taxing authority relating to Taxes, or any other written and legally binding
				  agreement with a taxing authority relating to Taxes;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (h)
				

			 	
				
				  such Purchaser Corporate Entity has
				  not filed (and will not file prior to the AP Closing Date) a consent pursuant
				  to Code Section 341(f) or any analogous state or local Tax provision or agreed
				  to have Code Section 341(f)(2) apply to any disposition of a
				  subsection (f) asset, as defined in Code Section 341(f)(4);
				

			 

 

	 
			
				
				   
				

			 	
				
				  (i)
				

			 	
				
				  such Purchaser Corporate Entity is
				  not required to include in income any adjustment pursuant to Code Section
				  481(a) by reason of a voluntary change in accounting method initiated by the
				  Purchaser Corporate Entity and the Internal Revenue Service has not proposed an
				  adjustment or change in accounting method; 
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		49
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				  (j)
				

			 	
				
				  such Purchaser Corporate Entity is
				  not a party to any agreement, contract, or arrangement that would result,
				  separately or in the aggregate, in the payment of any “excess parachute
				  payments” within the meaning of Code Section 280G; 
				

			 

 

	 
			
				
				   
				

			 	
				
				  (k)
				

			 	
				
				  on or before the AP Closing Date,
				  such Purchaser Corporate Entity or such Purchaser State Corporate Entity had no
				  United States state or local, or foreign Tax Return filing obligations in
				  respect of income, franchise, doing business or similar Taxes; and
				

			 

 

	 
			
				
				   
				

			 	
				
				  (l)
				

			 	
				
				  such BI Seller has paid or will pay
				  all Taxes with respect to the operations of the Purchaser Corporate Entity or
				  Purchaser State Corporate Entity, for all such taxable periods ending on or
				  before the AP Closing Date and that portion of such taxable period that
				  includes the AP Closing Date (calculated as if the AP Closing Date were the end
				  of a taxable period).
				

			 

 

	 
			
				
				  8.7
				

			 	
				
				  Each Seller of an Asset represents,
				  warrants and covenants to the Purchaser of that Asset as follows:
				

			 

 

	 
			
				
				   
				

			 	
				
				  (a)
				

			 	
				
				  following the Delivery Date for that
				  Asset and unless as a result of a Final Determination, neither it nor any of
				  its Affiliates will claim for United States federal, state or local or for
				  foreign tax purposes to be the owner of such Asset; and
				

			 

 

	 
			
				
				   
				

			 	
				
				  (b)
				

			 	
				
				  prior to the AP Closing Date, it or
				  its Affiliates treated itself as the owners of the Asset for United States
				  federal, state and local income tax purposes.
				

			 

 

	 
			
				
				   
				

			 	
				
				  (c)
				

			 	
				
				  The Relevant Aircraft and Lease
				  Information with respect to that Asset and the Initial Leases relating to that
				  Asset that was furnished to the Policy Provider, Credit Suisse Securities (USA)
				  LLC, the Appraisers and the Rating Agencies by Babcock & Brown Aircraft
				  Management LLC or any of its Affiliates that provided or supported the
				  assumptions underlying (i) the financial models prepared by Credit Suisse
				  Securities (USA) LLC for the use by such parties for their evaluation of the
				  cash flows in connection with the transactions contemplated by the Related
				  Documents, (ii) the Appraisers’ appraisal of the Aircraft and (iii) the
				  rating of the Class G-1 Notes (without regard to the Policy), as of the
				  respective dates of such information, did not contain any untrue statement of a
				  material fact or omit to state a material fact required to be stated therein or
				  necessary to make the statements therein, in the light of the circumstances
				  under which they were made, not misleading. For purposes hereof, “Relevant
				  Aircraft and Lease Information” shall mean, with respect to the Aircraft
				  and Initial Leases, the information described on Annex A relating to such Asset
				  and Initial Lease.
				

			 

 

	 
			
				
				  8.8
				

			 	
				
				  As used herein “to the
				  Seller’s knowledge” means the awareness of facts or other information
				  by any person at such Seller actively involved in the transactions contemplated
				  by this Agreement or (in respect of any Aircraft or any Beneficial
				  Interest
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		50
	 

	 
		 
	 

	 
	 

	 

	 
		related thereto), the leasing of such
		Aircraft and something being “known to the Seller” shall be construed
		accordingly.
	 

	 
			
				
				  8.9
				

			 	
				
				  Each Seller acknowledges that each
				  Purchaser is entering into this Agreement and the other Operative Documents in
				  reliance upon the accuracy of each of the representations and warranties, which
				  representations and warranties have been given by such Seller so as to induce
				  each Purchaser to enter into this Agreement and the other Operative
				  Documents.
				

			 

 

	 
			
				
				  8.10
				

			 	
				
				  The representations and warranties
				  may at the sole discretion of the relevant Purchaser be waived by such
				  Purchaser with or without conditions acceptable to the Sellers, subject to in
				  each case, the relevant Purchaser first obtaining the prior written consent of
				  the Policy Provider to any such waiver.
				

			 

 

	 
			
				
				  8.11
				

			 	
				
				  Subject to Section 8.12, the benefit
				  of the representations and warranties shall run to the Security Trustee.

				

			 

 

	 
			
				
				  8.12
				

			 	
				
				  The representations and warranties
				  in respect of any Aircraft in Sections 8.2 and 8.3 shall continue and survive
				  in full force and effect after the Delivery Date therefore for a period ending
				  on the date of the payment in full of the Class G-1 Notes and all obligations
				  owing to the Policy Provider.
				

			 

 

	 
			
				
				  8.13
				

			 	
				
				  Each of the representations and
				  warranties shall be construed as a separate and independent representation and
				  warranty and shall not be limited or restricted by reference to the terms of
				  any other provision of this Agreement, the other Operative Documents or any
				  other representation or warranty.
				

			 

 

	 
		
	 

	 
			
				
				  9.
				

			 	
				
				  REPRESENTATIONS AND WARRANTIES
				  OF THE PURCHASER
				

			 

 

	 
			
				
				  9.1
				

			 	
				
				  Each Purchaser hereby represents and
				  warrants to JET-i and each Seller as of the date of this Agreement and on each
				  subsequent Delivery Date that:
				

			 

 

	 
			
				
				   
				

			 	
				
				  (a)
				

			 	
				
				  Such Purchaser is a company or trust
				  duly established and validly existing under the laws of its jurisdiction of
				  organization, and each has the trust or corporate power (as the case may be) to
				  own its assets and carry on its business as it is being conducted;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (b)
				

			 	
				
				  Such Purchaser has the trust or
				  corporate power (as the case may be) to enter into and perform, and has taken
				  all necessary action to authorize the entry into, performance and delivery of,
				  this Agreement and the other applicable Operative Documents to which it is a
				  party;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (c)
				

			 	
				
				  this Agreement and the other
				  applicable Operative Documents to which it is a party have been, or when
				  executed and delivered will have been, duly entered into and delivered by such
				  Purchaser of any Asset and constitute or, in the case of any Operative Document
				  to be executed on or about the applicable Delivery Date, will constitute on
				  such Delivery Date, each such Person’s legal, valid and binding
				  obligations;
				

			 

 

	 
		 
	 

	 
		 
	 

	 
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				  (d)
				

			 	
				
				  the entry into and performance by
				  such Purchaser of any Asset of, and the transactions contemplated by, this
				  Agreement and the other applicable Operative Documents to which it is a party
				  do not and will not:
				

			 

 

	 
			
				
				   
				

			 	
				
				  (i)
				

			 	
				
				  conflict with any laws binding on
				  such Purchaser; or
				

			 

 

	 
			
				
				   
				

			 	
				
				  (ii)
				

			 	
				
				  result in any breach of, or
				  constitute a default under the constitutional documents of such Purchaser;
				  or
				

			 

 

	 
			
				
				   
				

			 	
				
				  (iii)
				

			 	
				
				  result in any breach of, or
				  constitute a default under or result in default under any document which is
				  binding upon such Purchaser or any of its assets;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (e)
				

			 	
				
				  so far as concerns the obligations
				  of such Purchaser, all authorizations, consents, registrations and
				  notifications required in connection with the entry into, performance, validity
				  and enforceability of, this Agreement and the other applicable Operative
				  Documents to which any such Person is a party and the Servicing Agreement and
				  the transactions contemplated by this Agreement and the other applicable
				  Operative Documents to which any such Person is a party, have been obtained or
				  effected (as appropriate) and are (or will on their being obtained or effected
				  be) in full force and effect;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (f)
				

			 	
				
				  the provisions of Section 14
				  concerning applicable law, service of process and jurisdiction are valid and
				  binding on such Purchaser under the laws of the State of New York, and no
				  provision purporting to be binding on such Purchaser, this Agreement or any of
				  the other applicable Operative Documents is prohibited, unlawful or
				  unenforceable under the laws of the State of New York;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (g)
				

			 	
				
				  no liquidator, provisional
				  liquidator, official manager, trustee, Irish law examiner, receiver or receiver
				  and manager or similar officer has been appointed in respect of all or any part
				  of the assets of such Purchaser nor has any application been made to a court
				  which is still pending for an order for, or any act, matter or thing been done
				  which with the giving of notice, lapse of time or satisfaction of some other
				  condition (or any combination thereof) will lead to the appointment of any such
				  officers;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (h)
				

			 	
				
				  no litigation, arbitration or claim
				  before any court, arbitrator, governmental or administrative agency or
				  authority which would have a material adverse effect on the ability of such
				  Purchaser to observe or perform its obligations under this Agreement is in
				  progress, or to the knowledge of any such Person, threatened against any such
				  Person;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (i)
				

			 	
				
				  such Purchaser intends for the sale
				  of any Aircraft contemplated hereby to constitute a valid transfer of such
				  Aircraft to the relevant Purchaser and intends that after Delivery of such
				  Aircraft the Seller thereof shall retain no right, title or interest in such
				  Aircraft; and
				

			 

 

	 
		 
	 

	 
		 
	 

	 
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				  (j)
				

			 	
				
				  such Purchaser represents and
				  warrants that the Beneficial Interest of any Purchaser Entity purchased by it
				  is being acquired for investment for its own account, not as a nominee or
				  agent, and not with a view to the resale or distribution of any part thereof,
				  and that it has no intent of selling, granting any participation in, or
				  otherwise distributing the same in violation of the Securities Act.
				

			 

 

	 
		
	 

	 
			
				
				  10.
				

			 	
				
				  INDEMNITY
				

			 

 

	 
			
				
				  10.1
				

			 	
				
				  Each Purchaser of an Asset or
				  Aircraft agrees to indemnify the Seller thereof and each other Seller
				  Indemnitee from and against any claims, damages, losses, costs, expenses, fees,
				  payments, demands, liabilities, actions, proceedings, penalties or fines
				  (“Losses”) (other than, in each case, on account of any
				  Taxes resulting from any Delivery) which any Seller Indemnitee may incur in
				  relation to such Asset or Aircraft for which Delivery has been completed to the
				  extent it arises out of an event that occurs on or after the AP Closing
				  Date.
				

			 

 

	 
			
				
				  10.2
				

			 	
				
				  Without derogation to the disclaimer
				  in Section 12, each Seller of an Asset or Aircraft agrees to indemnify the
				  Purchaser thereof and each Purchaser Indemnitee from and against any Losses
				  which any Purchaser Indemnitee may incur in relation to such Asset or Aircraft
				  to the extent it arises out of (i) an event (which term shall exclude when used
				  in this Section 10.2 anything related to or connected with the design,
				  manufacture, maintenance, repair, rebuilding, overhaul, refurbishment or
				  similar activity with respect to any Aircraft (including any engine or part))
				  that occurred prior to the AP Closing Date or (ii) the failure of the
				  representation in Section 8.7(c) insofar as it relates to Item 31 on Annex A
				  hereto to be true and correct.
				

			 

 

	 
			
				
				  10.3
				

			 	
				
				  If a written claim is made against a
				  Person that is indemnified under Section 10.1 or 10.2 (the
				  “first party”) for any sum which is the subject of an indemnity
				  from a Person under Section 10.1 or 10.2 (the “indemnifying party”) under this Section 10, the first party will
				  promptly notify the indemnifying party. If reasonably requested by the
				  indemnifying party in writing within 30 days following receipt by the
				  indemnifying party of such notice, and provided the first party is indemnified
				  by the indemnifying party against costs and expenses, the first party will in
				  good faith contest in its name (or, at the indemnifying party’s election
				  if such contest may be undertaken by the indemnifying party in its own name or
				  on behalf of the indemnifying party, permit the indemnifying party to contest)
				  the validity, applicability and amount of such claim in appropriate
				  administrative and judicial proceedings; provided that the first party shall
				  have no such obligation if any such contest would expose the first party itself
				  to an indemnifiable liability claim.
				

			 

 

	 
			
				
				  10.4
				

			 	
				
				  The relevant Seller shall pay,
				  within 45 days after receipt of an approved invoice therefore, costs and
				  expenses, including reasonable legal fees and disbursements, which the relevant
				  Purchaser incurs as a result of (but subject to the provisions of Section 4.3
				  in the case of clauses (ii) and (iii) below):
				

			 

 

	 
		 
	 

	 
		 
	 

	 
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				  (i)
				

			 	
				
				  the application of Section 4.1
				  (including, without limitation, costs incurred in arranging or taking steps to
				  arrange the preparation, execution and delivery of any documents in
				  anticipation of Delivery of a Substitute Aircraft); or
				

			 

 

	 
			
				
				   
				

			 	
				
				  (ii)
				

			 	
				
				  any of the documents or conditions
				  referred to in Schedule 3 not being satisfied (or waived) on or before Delivery
				  of the relevant Aircraft or Transfer of the Beneficial Interest of the relevant
				  Aircraft or any of the documents or conditions referred to in Schedule 4 not
				  being satisfied (or waived) within the period specified therein; or
				

			 

 

	 
			
				
				   
				

			 	
				
				  (iii)
				

			 	
				
				  any condition referred to in Section
				  7.2(a) or (b) not being satisfied (or waived) on or before Delivery of the
				  relevant Aircraft or Beneficial Interest.
				

			 

 

	 
			
				
				  10.5
				

			 	
				
				  If and to the extent that any sums
				  constituting (directly or indirectly) an indemnity to the first party but paid
				  by the indemnifying party pursuant to this Agreement are treated as taxable in
				  the hands of the first party, the indemnifying party will pay to the first
				  party such sums as will after the tax liability has been fully satisfied
				  indemnify the first party to the same extent as it would have been indemnified
				  in the absence of such liability together with interest on the amount payable
				  by the indemnifying party under this sub-clause at the rate of interest stated
				  in Section 5.7 in respect of the period commencing on the date on which the
				  payment of taxation is finally due until payment by the indemnifying party
				  (both before and after judgment), but the indemnifying party will be under no
				  liability to make any payment under this Section 10.5 to the first party to the
				  extent the first party would be in a better position than if no payment by way
				  of indemnity had needed to have been made.
				

			 

 

	 
		
	 

	 
			
				
				  11.
				

			 	
				
				  TAXES
				

			 

 

	 
			
				
				   
				

			 	
				
				  (a)
				

			 	
				
				  Each Seller of an Independent
				  Aircraft or Beneficial Interest hereby covenants to pay all Taxes imposed on
				  the Company or the Purchaser of that Independent Aircraft or Beneficial
				  Interest (or any assignee or successor thereto) or on such Independent Aircraft
				  or the related BI Aircraft, as the case may be, or on such Beneficial Interest,
				  and, in each case, the related Lease Documents and Operative Documents as a
				  result of (i) the execution of, delivery of or performance under this
				  Agreement, (ii) the Delivery of such Aircraft or Transfer of the Beneficial
				  Interest in a Purchaser Entity that holds title to such Aircraft, (iii) any
				  required re-registration of title to or the lease of such Aircraft with any
				  Government Entity that is necessary or advisable to reflect or record such
				  Operative Documents or the events occurring pursuant to such Operative
				  Documents, (iv) the purchase by such Purchaser of such Aircraft or Beneficial
				  Interest hereunder, (v) such Purchaser’s entering into of such Lease
				  Documents and Operative Documents, (vi) without regard to clause (y) of this
				  Section 11(a), the inaccuracy of such Seller’s representation or warranty
				  or the breach by such Seller of any covenant, or (vii) such Aircraft being
				  located in an Transfer Tax Jurisdiction at any time whether before or after the
				  moment of Delivery on the Delivery Date for such Aircraft or on the AP Closing
				  Date, other than (v) Taxes in respect of events occurring after, but not on,
				  the Delivery Date unless arising as a result of events 
				

			 

 

	 
		 
	 

	 
		 
	 

	 
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		described in clause (iii) or (vi) above, (w)
		in the case of clause (vii), Taxes imposed by a Jurisdiction other than the
		Transfer Tax Jurisdiction, (x) Taxes that the relevant Lessee is liable to pay
		or reimburse under the relevant Lease and/or the Operative Documents other than
		such Lessee liabilities that are Retained Rights, (y) any Taxes (other than
		sales, use and similar Taxes and Taxes which are imposed as a result of an
		event described in clause (vii) of this Section 11(a)) imposed on the Purchaser
		of such Aircraft or beneficial Interest or any other Purchaser that are based
		on or measured by gross or net income or receipts (including, without
		limitation, withholding and Taxes on tax preference items) of such Purchaser or
		any other Purchaser or that are capital, doing business, accumulated earnings,
		personal holding company, excess profits, successor, estate or net worth Taxes
		of such Purchaser, in each case to the extent imposed on the Purchaser or any
		other Purchaser by reason of such Purchaser or an Affiliate thereof being
		organized in the jurisdiction imposing such Taxes or conducting activities in
		such jurisdiction unrelated to the transactions contemplated by the Operative
		Documents or (z) Taxes resulting from the gross negligence or willful
		misconduct of such Purchaser.
	 

	 
		As used herein, “Transfer Tax
		Jurisdiction” means a jurisdiction that imposes Tax on an Asset or any
		Person directly or indirectly holding an interest in the Asset by reason of a
		transfer of the Asset or a beneficial interest in the Asset as a result of the
		applicable Aircraft being located in that jurisdiction.
	 

	 
			
				
				   
				

			 	
				
				  (b)
				

			 	
				
				  [Reserved] 
				

			 

 

	 
			
				
				   
				

			 	
				
				  (c)
				

			 	
				
				  Each BI Seller of each Purchaser
				  Entity hereby covenants to pay and to indemnify and hold harmless such
				  Purchaser Entity and its Affiliates (and their direct and indirect beneficial
				  interest holders) from any and all claims, actions, causes of action,
				  liabilities, losses, damages, and reasonable out-of-pocket expenses and costs
				  resulting from, arising out of or relating to (i) all Taxes imposed on the
				  Purchaser Entity or the Purchaser thereof related to the activity of the
				  Purchaser Entity for all taxable periods ending on or before the AP Closing
				  Date, (ii) all Taxes imposed on the Purchaser Entity or Purchaser thereof for
				  such portion of any taxable period including the AP Closing Date as ends on the
				  AP Closing Date, (calculated as if the AP Closing Date had been the last day of
				  a taxable period and the books of the Purchaser Entity had been closed on such
				  day (it being understood that Taxes other than income Taxes for which the last
				  day of a taxable period is not the AP Closing Date are to be allocated in a
				  manner that fairly reflects (and is no less favorable to the Purchaser than pro
				  rata per day) the period ending on the AP Closing Date and the period
				  commencing after the AP Closing Date)) and (iii) any Tax liability that arises
				  solely by reason of the Purchaser Entity being severally liable for any Tax of
				  the consolidated group (or combined group pursuant to Treasury Regulation
				  Section 1.1502-6 or any analogous state or local Tax provisions) of which a BI
				  Seller is or was a member (the “Seller Group”) other than, in the case of clauses (i), (ii) and
				  (iii), Taxes that the relevant Lessee is liable to pay or reimburse under the
				  relevant Lease and/or 
				

			 

 

	 
		 
	 

	 
		 
	 

	 
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		the Operative Documents other than any such
		Lessee liabilities that are Retained Rights; provided in the
		case of clauses (i) and (ii) above, Taxes imposed with respect to the
		activities of a Purchaser Entity or the Purchaser after the time the sale
		contemplated by this Agreement is effective shall be subject to indemnification
		only to the extent (A) (I) set forth in Section 11(a)(vi) or (vii) or (II) such
		Taxes arise in connection with the sale on the AP Closing Date of any direct or
		indirect beneficial interest in the Purchaser Entities, and (B) such Taxes do
		not arise as a result of an election under Section 338 of the Code or similar
		election under Tax laws of any jurisdiction outside of the United States
		provided, further, that
		the BI Seller shall not be responsible for Taxes measured by net income
		attributable to any Rent received by any Purchaser solely allocable to the
		period on and after the AP Closing Date or for Taxes fully provided for as
		set forth in the First Disclosure Letter. In the case of Taxes payable by a BI
		Seller pursuant to clause (ii), the amount of such Taxes, as reasonably
		computed by the Purchaser, will be remitted to the Purchaser at least three
		business days prior to the due date of the relevant Tax Return (with interest
		being imposed at a rate equal to Purchaser’s or its Affiliate’s cost
		of funds (as documented by the Purchaser or its Affiliate in a reasonable
		manner) for any late payment).
	 

	 
			
				
				   
				

			 	
				
				  (d)
				

			 	
				
				  Each BI Seller of a Purchaser
				  Corporate Entity or a Purchaser State Corporate Entity hereby covenants:

				

			 

 

	 
			
				
				   
				

			 	
				
				  (i)
				

			 	
				
				  any tax sharing agreements, tax
				  settlement agreements, arrangements, policies or guidelines, formal or
				  informal, express or implied that may exist between such Purchaser Corporate
				  Entity or Purchaser State Corporate Entity and such Seller or any Affiliate of
				  such Seller (other than the Purchaser Corporate Entity or Purchaser State
				  Corporate Entity) (a “Tax Sharing
				  Agreement”) shall terminate as of
				  the AP Closing Date and, except as specifically provided herein, any obligation
				  to make payments under any Tax Sharing Agreement shall be cancelled as of the
				  AP Closing Date;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (ii)
				

			 	
				
				  if such Purchaser Corporate Entity
				  or Purchaser State Corporate Entity has been a member of a United States
				  consolidated federal income tax return or any foreign, state or local
				  consolidated or combined income or franchise tax returns, such BI Seller shall
				  cause such Purchaser Corporate Entity, to the extent permitted by law, to
				  continue to join in such returns through the AP Closing Date;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (iii)
				

			 	
				
				  the Seller Group of which such BI
				  Seller is a part shall timely prepare and file (or cause to be so prepared and
				  filed) all Tax Returns required by law, covering such Purchaser Corporate
				  Entity or Purchaser State Corporate Entity for all taxable periods ending on or
				  before the AP Closing Date (“Pre-Closing Tax Returns”);
				

			 

 

	 
			
				
				   
				

			 	
				
				  (iv)
				

			 	
				
				  the Seller Group of which such BI
				  Seller is a part shall timely pay or cause to be paid or fully provide for as
				  set forth in the First Disclosure Letter all 
				

			 

 

	 
		 
	 

	 
		 
	 

	 
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		Taxes related to Pre-Closing Tax Returns
		(“Pre-Closing Taxes”) of such Purchaser Corporate Entity or Purchaser
		State Corporate Entity;
	 

	 
			
				
				   
				

			 	
				
				  (v)
				

			 	
				
				  such Seller will, to the extent
				  permitted by applicable law, elect, or assist such Purchaser to elect, with the
				  relevant U. S. federal, state and local and any non-U.S. taxing authorities to
				  close the taxable period of such Purchaser Corporate Entity or Purchaser State
				  Corporate Entity on the AP Closing Date, provided that in
				  any case, where applicable law does not permit such Purchaser Corporate Entity
				  or such Purchaser State Corporate Entity to close its taxable year on the AP
				  Closing Date, such Purchaser will be responsible for and will cause to be
				  prepared and duly filed all Tax Returns relating to Taxes of such Purchaser
				  Corporate Entity and Purchaser State Corporate Entity for any taxable period
				  which includes and ends after the AP Closing Date; and
				

			 

 

	 
			
				
				   
				

			 	
				
				  (vi)
				

			 	
				
				  after the AP Closing Date, such
				  Seller in respect of such Purchaser Corporate Entity and Purchaser State
				  Corporate Entity will cooperate in the preparation of all Tax Returns of such
				  Purchaser Corporate Entity and Purchaser State Corporate Entity and will
				  provide (or cause to be provided) any records and other information the
				  Purchaser thereof requests that are reasonably necessary for the preparation of
				  such Tax Returns and such Seller will cooperate with such Purchaser in
				  connection with any Tax investigation, audit or other proceeding related to
				  such Purchaser Corporate Entity or Purchaser State Corporate Entity;
				  provided that if any of the information requested is contained
				  in tax returns or other documents involving matters unrelated to such Purchaser
				  Corporate Entity or Purchaser State Corporate Entity or is otherwise
				  confidential information, then such Seller will be required to provide such
				  information only to a nationally recognized firm of independent accounts
				  selected by such Purchaser and reasonably satisfactory to such Seller, which
				  independent accounting firm will prepare such Tax Returns without disclosure of
				  the confidential information to such Purchaser Corporate Entity or Purchaser
				  State Corporate Entity; provided,
				  further, that nothing in the preceding proviso will prevent
				  such Purchaser Corporate Entity or Purchaser State Corporate Entity from
				  reviewing its Tax Returns.
				

			 

 

	 
			
				
				   
				

			 	
				
				  (e)
				

			 	
				
				  each Seller of a Purchaser Corporate
				  Entity and Purchaser State Corporate Entity shall have the right to control any
				  audit or examination relating to Taxes by any taxing authority, initiate any
				  claim for refund, file any amended return, contest, resolve and defend against
				  any assessment, notice of deficiency or other adjustment or proposed adjustment
				  relating or with respect to any Taxes of such Purchaser Corporate Entity or
				  Purchaser State Corporate Entity for all taxable periods ending prior to or on
				  the AP Closing Date and for that portion of any taxable period that includes
				  the AP Closing Date that ends on the AP Closing Date (an “Event”),
				  and shall be entitled to all refunds with respect to such taxable periods or
				  portions thereof; provided that to
				  the extent that an Event could result in liability for the Purchaser pursuant
				  to this Agreement or otherwise, the Seller 
				

			 

 

	 
		 
	 

	 
		 
	 

	 
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		shall notify the Purchaser of such Event,
		and shall consult with the Purchaser with respect to the resolution of any
		issue relating to Taxes arising as a result of or in connection with such
		Event.
	 

	 
			
				
				   
				

			 	
				
				  (f)
				

			 	
				
				  In the event that there are or may
				  be Taxes that a Seller is or will be obligated to pay under this Section 11,
				  the Purchasers and their respective Subsidiaries will take such steps as may be
				  reasonable and appropriate or requested by such Seller and at the expense of
				  such Seller to mitigate such Taxes or to recover such Taxes or to obtain a
				  refund or credit of such Taxes but only to the extent that Purchasers or their
				  respective Subsidiary can lawfully do so and without material prejudice to its
				  tax position or otherwise to it. 
				

			 

 

	 
		
	 

	 
			
				
				  12.
				

			 	
				
				  WARRANTIES AND DISCLAIMERS
				  
				

			 

 

	 
			
				
				  12.1
				

			 	
				
				  WITHOUT PREJUDICE TO THE EXPRESS
				  TERMS AND CONDITIONS STATED HEREIN AND IN THE OTHER OPERATIVE DOCUMENTS, EACH
				  AIRCRAFT WILL BE DELIVERED AND SOLD (OR IN THE CASE OF THE BI AIRCRAFT, DEEMED
				  DELIVERED AND SOLD ON THE RELEVANT BI TRANSFER DATE TO THE COMPANY ) IN ITS
				  “AS IS, WHERE IS” CONDITION, AND EXCEPT AS EXPRESSLY STATED IN
				  SECTION 8 OF THIS AGREEMENT AND AS OTHERWISE REPRESENTED AND WARRANTED HEREIN,
				  IN THE OTHER OPERATIVE DOCUMENTS AND/OR IN THE BILL OF SALE AND/OR ASSIGNMENT
				  OF BENEFICIAL INTEREST (AS THE CASE MAY BE) FOR OR IN RESPECT OF SUCH AIRCRAFT
				  OR ANY CERTIFICATE DELIVERED PURSUANT TO THIS AGREEMENT, THE SELLER (AND THE
				  APPLICABLE PURCHASER ENTITY) MAKES NO WARRANTIES, GUARANTEES OR
				  REPRESENTATIONS, EXPRESS OR IMPLIED, ARISING BY LAW OR OTHERWISE, WITH RESPECT
				  TO ANY OF THE AIRCRAFT OR ANY PURCHASER ENTITY.
				

			 

 

	 
			
				
				  12.2
				

			 	
				
				  EACH PURCHASER WAIVES, RELEASES AND
				  RENOUNCES ALL WARRANTIES (EXCEPT AS OTHERWISE EXPRESSLY REPRESENTED AND
				  WARRANTED BY ANY SELLER IN THIS AGREEMENT, ANY BILL OF SALE OR ACKNOWLEDGMENT
				  OF DELIVERY, ANY ASSIGNMENT OF BENEFICIAL INTEREST OR IN ANY OTHER OPERATIVE
				  DOCUMENT OR CERTIFICATE DELIVERED HEREUNDER), OBLIGATIONS AND LIABILITIES OF
				  ANY SELLER (OR PURCHASER ENTITY) INCLUDING BUT NOT LIMITED TO (1) ANY IMPLIED
				  WARRANTY AS TO THE DESCRIPTION, AIRWORTHINESS, MERCHANTABILITY, FITNESS FOR ANY
				  PURPOSE, VALUE, CONDITION, DESIGN, DATA PROCESSING, USE OR OPERATION OF THE
				  AIRCRAFT OR ANY PAST PERFORMANCE, COURSE OF DEALING, USAGE OR TRADE OR
				  OTHERWISE, (2) ANY OBLIGATION, LIABILITY, RIGHT, CLAIM OR REMEDY IN TORT
				  (INCLUDING STRICT LIABILITY), AND (3) ANY OBLIGATION, LIABILITY, RIGHT, CLAIM
				  OR REMEDY FOR LOSS OF OR DAMAGE TO THE AIRCRAFT, FOR LOSS OF USE, REVENUE OR
				  PROFIT WITH RESPECT TO THE AIRCRAFT, FOR ANY LIABILITY OF ANY LESSEE TO ANY
				  THIRD PARTY, FOR ANY LIABILITY OF THE PURCHASER TO ANY THIRD PARTY, OR FOR
				  
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		58
	 

	 
		 
	 

	 
	 

	 

	 
		ANY OTHER DIRECT, INCIDENTAL, SPECIAL OR
		CONSEQUENTIAL DAMAGES; AND ALL SUCH WARRANTIES, GUARANTEES, REPRESENTATIONS,
		OBLIGATIONS, LIABILITIES, RIGHTS, CLAIMS OR REMEDIES, EXPRESS OR IMPLIED,
		STATUTORY OR OTHERWISE, ARE EXPRESSLY EXCLUDED.
	 

	 
			
				
				  12.3
				

			 	
				
				  THIS SECTION 12 SHALL NOT BE
				  MODIFIED EXCEPT BY A WRITTEN AGREEMENT SIGNED ON BEHALF OF EACH SELLER AND EACH
				  PURCHASER BY THEIR RESPECTIVE DULY AUTHORIZED REPRESENTATIVES.
				

			 

 

	 
		
	 

	 
			
				
				  13.
				

			 	
				
				  ASSIGNMENT
				

			 

 

	 
			
				
				  13.1
				

			 	
				
				  No Purchaser of an Asset or Aircraft
				  shall assign, transfer or otherwise convey this Agreement or all or any part of
				  its rights hereunder to any Person without the prior written consent of the
				  Seller of such Asset or Aircraft other than in favor of the Security Trustee
				  under the Security Trust Agreement, to which the Seller hereby consents.

				

			 

 

	 
			
				
				  13.2
				

			 	
				
				  No Seller of an Asset or Aircraft
				  shall assign, transfer or otherwise convey this Agreement or all or any part of
				  its rights hereunder to any Person without the prior written consent of the
				  Purchaser of such Asset or Aircraft other than so far as concerns assignments
				  to existing owners or financiers or Affiliates of such Seller of amounts or its
				  rights to receive amounts payable to such Seller hereunder on terms and
				  conditions which do not increase any obligation of such Purchaser hereunder or
				  otherwise expose such Purchaser to any increased liability, cost or
				  expense.
				

			 

 

	 
		
	 

	 
			
				
				  14.
				

			 	
				
				  MISCELLANEOUS 
				

			 

 

	 
			
				
				  14.1
				

			 	
				
				  Subject to Sections 8.12 and 12.2,
				  each Seller of an Asset shall indemnify, hold harmless and defend the Purchaser
				  of that Asset and in connection with Section 8.7 hereof only any holders of
				  shares in such Purchaser and Affiliates thereof and their respective successors
				  and assigns from and against all liabilities, obligations, claims, demands,
				  judgments, causes of action, damages, costs, losses and expenses (including
				  reasonable legal fees, costs) resulting from or arising out of or pertaining to
				  any claim which results from any breach by such Seller of any of its
				  obligations, representations, warranties or covenants under this Agreement, any
				  Assignment of Beneficial Interest or any Bill of Sale and solely in respect of
				  any claim that arises with respect to any holders of shares or beneficial
				  interest in such Purchaser and Affiliates thereof, such Seller shall have the
				  rights set forth in Sections 10.3 and 11(e) in respect of such claim.
				

			 

 

	 
			
				
				  14.2
				

			 	
				
				  No Seller shall take any steps for
				  the purpose of procuring the appointment of any administrative receiver or the
				  making of any administrative order or for instituting any bankruptcy,
				  reorganization, arrangement, insolvency, winding up, liquidation, composition
				  or any like proceedings under the laws of any jurisdiction in respect of any
				  Purchaser or in respect of any of their respective liabilities, including,
				  without limitation, as a result of any claim or interest of any of any
				  Seller.
				

			 

 

	 
			
				
				  14.3
				

			 	
				
				  No amendment or waiver of any
				  provision of this Agreement, and no consent to any departure herefrom by any
				  party hereto, shall in any event be effective unless the same 
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		59
	 

	 
		 
	 

	 
	 

	 

	 
		shall be in writing and signed by each party
		hereto and the Policy Provider, and then such waiver or consent shall be
		effective only in the specific instance and for the specific purpose for which
		given. No failure on the part of any party hereto to exercise, and no delay in
		exercising, any right hereunder shall operate as a waiver thereof; nor shall
		any single or partial exercise of any such right preclude any other or further
		exercise thereof or the exercise of any other right.
	 

	 
			
				
				  14.4
				

			 	
				
				  In the event that any provision of
				  this Agreement or the application thereof to any party hereto or to any
				  circumstance or in any jurisdiction governing this Agreement shall, to any
				  extent, be invalid or unenforceable under any applicable statute, regulation or
				  rule of law, then such provision shall be deemed inoperative to the extent that
				  it is invalid or unenforceable and the remainder of this Agreement, and the
				  application of any such invalid or unenforceable provision to the parties,
				  jurisdictions or circumstances other than to whom or to which it is held
				  invalid or unenforceable, shall not be affected thereby nor shall the same
				  affect the validity or enforceability of this Agreement.
				

			 

 

	 
			
				
				  14.5
				

			 	
				
				  All notices and other communications
				  provided for hereunder shall be in writing (including telecopier) and mailed,
				  telecopied or delivered to the intended recipient at its address specified in
				  Section 12.05 of the Indenture or, in the case of any Seller, as
				  follows:
				

			 

 

	 
		[Guarantor]
	 

	 
		[Address]
	 

	 
		Attention: 
	 

	 
		Facsimile:
	 

	 
		with a copy to:
	 

	 
		Attention:
	 

	 
		Facsimile: 
	 

	 
		and, in the case of any Purchaser, as
		follows:
	 

	 
		Babcock & Brown Air Funding I
		Limited
	 

	 
		c/o [Administrative Agent] 
	 

	 
		[Address]
	 

	 
		Dublin 1, Ireland 
	 

	 
		Attention: 
	 

	 
		Facsimile: 
	 

	 
		with a copy to:
	 

	 
		Attention: 
	 

	 
		Facsimile: 
	 

	 
		 
	 

	 
		 
	 

	 
		60
	 

	 
		 
	 

	 
	 

	 

	 
		or, as to each party, at such other address
		as shall be designated by such party in a written notice to each other party
		complying as to delivery with the terms of this Section 14.5. Each such notice
		shall be effective (a) upon receipt when sent through the mails, registered or
		certified mail, return receipt requested, postage prepaid, with such receipt to
		be effective the date of delivery indicated on the return receipt, or (b) one
		Business Day after delivery to an overnight courier, or (c) on the date
		personally delivered to an authorized officer of the party to which sent, or
		(d) on the date transmitted by legible telecopier transmission with a
		confirmation of receipt.
	 

	 
			
				
				  14.6
				

			 	(a)	
				
				   THIS AGREEMENT SHALL IN ALL
				  RESPECTS BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE
				  STATE OF NEW YORK, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND
				  PERFORMANCE, BUT WITHOUT REGARD TO ANY CONFLICTS OF LAW PROVISION THEREOF
				  (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW
				  YORK). 
				

			 

 

	 
			
				
				   
				

			 	
				
				  (b)
				

			 	
				
				  Each party hereto hereby submits to
				  the nonexclusive jurisdiction of the United States District Court for the
				  Southern District of New York and of any New York State court sitting in New
				  York County for the purposes of all legal proceedings arising out of or
				  relating to this agreement and each other operative document or the
				  transactions contemplated hereby or thereby. Each party irrevocably waives, to
				  the fullest extent permitted by law, any objection which it may now or
				  hereafter have to the laying of the venue of any such proceeding brought in
				  such a court and any claim that any such proceeding brought in such a court has
				  been brought in an inconvenient forum. Each party hereby irrevocably consents
				  to the service of any and all process in any such action or proceeding by the
				  mailing of copies to it as set forth in Section 14.5 or in any other manner
				  permitted by Applicable Law.
				

			 

 

	 
			
				
				   
				

			 	
				
				  (c)
				

			 	
				
				  To the extent permitted by
				  Applicable Law, each of the parties hereto hereby irrevocably waives the right
				  to demand a trial by jury, in any such suit, action or other proceeding arising
				  out of this Agreement, the other Operative Documents, or the subject matter
				  hereof or thereof or the overall transaction brought by any of the parties
				  hereto or their successors or assigns.
				

			 

 

	 
			
				
				  14.7
				

			 	
				
				  Nothing in Section 14.6 limits the
				  right of any party to bring proceedings against any other party in connection
				  with this Agreement:
				

			 

 

	 
			
				
				   
				

			 	
				
				  (i)
				

			 	
				
				  in any other court of competent
				  jurisdiction; or
				

			 

 

	 
			
				
				   
				

			 	
				
				  (ii)
				

			 	
				
				  concurrently in more than one
				  jurisdiction.
				

			 

 

	 
			
				
				  14.8
				

			 	
				
				  Each party hereto will promptly and
				  duly execute and deliver such further documents to make such further assurances
				  for and take such further action reasonably requested by any party to whom such
				  first party is obligated, all as may be reasonably necessary to 
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		61
	 

	 
		 
	 

	 
	 

	 

	 
		carry out more effectively the intent and
		purpose of this Agreement and the other Operative Documents.
	 

	 
			
				
				  14.9
				

			 	
				
				  This Agreement may be executed in
				  any number of counterparts and by any party hereto in separate counterparts,
				  each of which when so executed shall be deemed to be an original and all of
				  which, when taken together, shall constitute one and the same agreement.

				

			 

 

	 
			
				
				  14.10
				

			 	
				
				  Each Seller and each Purchaser of an
				  Asset agrees to treat the sale of that Asset hereunder as occurring on the
				  Delivery Date for U.S. and Irish tax purposes.
				

			 

 

	 
			
				
				  14.11
				

			 	
				
				  Each Purchaser of an Asset shall pay
				  on the Delivery Date to Seller of that Asset one half of the out-of-pocket
				  costs and expenses (including legal fees and expenses) incurred by that Seller
				  in connection with the transfer of that Asset and any related Leases to such
				  Purchaser as contemplated by this Agreement.
				

			 

 

	 
		
	 

	 
			
				
				  15.
				

			 	
				
				  SUBROGATION
				

			 

 

	 
			
				
				  15.1
				

			 	
				
				  Upon any claim being made against
				  any Seller for breach of any representation or warranty (other than a
				  representation or warranty contained in Section 8.1), such Seller, as the case
				  may be, shall be subrogated to all rights, remedies and claims of each
				  Purchaser against the Lessee or any Affiliate of the Lessee under the
				  applicable Lease, Novated Lease or Assigned Lease, the Operative Documents, the
				  Lease Documents and otherwise, with respect to such claim, and each Purchaser
				  shall cooperate, in taking such action as such Seller may reasonably request in
				  connection with exercising any such right, remedy or claim (and the reasonable
				  costs and expenses thereof shall be paid by such Seller).
				

			 

 

	 
		
	 

	 
			
				
				  16.
				

			 	
				
				  LIMITED
				  RECOURSE
				

			 

 

	 
			
				
				  16.1
				

			 	
				
				  In the event that the direct or
				  indirect assets of any Purchaser and its Subsidiaries are insufficient, after
				  payment of all other claims, if any, ranking in priority to the claims of any
				  Seller hereunder pursuant to the Indenture, to pay in full such claims of such
				  Seller, then such Seller shall have no further claim against such Purchaser and
				  its Subsidiaries in respect of any such unpaid amounts.
				

			 

 

	 
			
				
				  16.2
				

			 	
				
				  To the extent permitted by
				  applicable law, no recourse under any obligation, covenant or agreement of any
				  party contained in this Agreement shall be had against any shareholder (not
				  including the Company as a shareholder of any other Purchaser hereunder),
				  officer or director of the relevant party as such, by the enforcement of any
				  assessment or by any proceeding, by virtue of any statute or otherwise; it
				  being expressly agreed and understood that this Agreement is a corporate
				  obligation of the relevant party and no personal liability shall attach to or
				  be incurred by the shareholders (not including the Company as a shareholder of
				  any other Purchaser hereunder), officers or directors of the relevant party as
				  such, or any of them under or by reason of any of the obligations, covenants or
				  agreements of such relevant party contained in this Agreement, or implied
				  
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		62
	 

	 
		 
	 

	 
	 

	 

	 
		therefrom, and that any and all personal
		liability for breaches by such party of any of such obligations, covenants or
		agreements, either at law or by statute or constitution, of every such
		shareholder (not including the Company as a shareholder of any other Purchaser
		hereunder), officer or director is hereby expressly waived by the other parties
		as a condition of and consideration for the execution of this Agreement.

	 

	 
		 
	 

	 
		 
	 

	 
		63
	 

	 
		 
	 

	 
	 

	 

	 
		IN WITNESS WHEREOF, the parties hereto have
		entered into this Asset Purchase Agreement the day and year first above
		written.
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  [                                          
				                    ]

				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  
 By 
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name:
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Title:
				

			 

 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  BABCOCK & BROWN AIR

				  FUNDING I LIMITED
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  By 
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name:
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Title:
				

			 

 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  [OTHER SELLERS]
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  
 By 
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name:
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Title:
				

			 

 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  [OTHER PURCHASERS]
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  
 By 
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name:
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Title:
				

			 

 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		EXHIBIT A-1
	 

	 
		FORM OF ASSIGNMENT OF BENEFICIAL
		INTEREST1
	 

	 
		The undersigned, [BI SELLER] (the
		“Seller”), as record and beneficial owner of the
		beneficial interest (the “Beneficial Interest”) in [Name] (the “Entity”),
		hereby sells, assigns, conveys, transfers and sets over to Babcock & Brown
		Air Funding I Limited, a Bermuda exempted company (the “Purchaser”), all of the Seller’s right, title and
		interest in and to the Beneficial Interest, other than the Retained Rights (as
		such term is defined in that certain Asset Purchase Agreement dated as of
		[            ]
		[      ], 2007 (the “Purchase Agreement”) among the parties hereto and others). The Seller
		hereby warrants to the Purchaser, its successors and assigns, that [(i)]* there
		is hereby irrevocably conveyed to the Purchaser full legal and beneficial title
		to the Beneficial Interest, free and clear of all Encumbrances (other than
		Permitted Encumbrances) and (ii) the Entity holds full legal and beneficial
		title to the Aircraft listed in Schedule I hereto exclusive of Lessee Furnished
		Equipment (the “BI
		Aircraft”) free and clear of all
		Encumbrances (other than Permitted Encumbrances). The Seller agrees with the
		Purchaser, and its successors and assigns, that the Seller will warrant and
		defend such title to the Entity [and such title of the Entity in each BI
		Aircraft]* forever against all such claims and demands whatsoever (other than
		Permitted Encumbrances). This Assignment of Beneficial Interest is being made
		and entered into pursuant to the Purchase Agreement and shall be governed by
		and construed in accordance with the laws of the State of New York. Except as
		otherwise provided in the Purchase Agreement, the Beneficial Interest [(and the
		Entity’s interest in each BI Aircraft)]* is sold “AS IS” and
		“WHERE IS”. Capitalized terms used herein and not otherwise defined
		shall have the meanings attributed thereto in the Purchase Agreement.
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  [BENEFICIAL INTEREST SELLER]
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  By: 
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name:
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Title:
				

			 

 

	 
		The above and foregoing Assignment of
		Beneficial Interest is hereby accepted and agreed to this ___ day of
		[________], 2007.
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  BABCOCK & BROWN AIR

				  FUNDING I LIMITED
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  By: 
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name:
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Title:
				

			 

 

	 
		______________
	 

	 
			
				
				  1
				

			 	
				
				  To be used for all entities other
				  than Owner Trusts and Irish companies.
				

			 

 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		EXHIBIT A-2
	 

	 
		FORM OF TRUST ASSIGNMENT AND ASSUMPTION
		AGREEMENT (MSN[     ])2
	 

	 
		THIS TRUST ASSIGNMENT AND ASSUMPTION
		AGREEMENT (MSN [_]) (this “Assignment”) is dated as of [__________] by and between [BI
		SELLER] (“Assignor”), and BABCOCK & BROWN AIR FUNDING I LIMITED,
		a [Bermuda exempted company] (“Assignee”).
	 

	 
		W I T N E S S E T H :

	 

	 
		WHEREAS, Assignor and [Wells Fargo Bank
		Northwest, National Association], in its individual capacity has entered into
		the trust agreement, dated as of [__________] (as assigned, amended and
		restated to date, the “Trust
		Agreement”) Except as otherwise
		defined herein, capitalized terms used herein shall have the meanings set forth
		in the Trust Agreement; 
	 

	 
		WHEREAS, Assignor desires to assign all of
		its rights, obligations and ownership in and to the Trust to Assignee;
		and
	 

	 
		WHEREAS, Assignee desires to accepts all of
		Assignor’s rights, obligations and ownership in and to the Trust.
	 

	 
		NOW, THEREFORE, the undersigned, in
		consideration of the premises, the payment of Ten Dollars ($10.00) and the
		covenants and agreements contained herein, do hereby agree as follows:
	 

	 
		1. Assignment.
		Assignor does hereby sell, convey, assign, transfer and set over unto Assignee,
		as of the date hereof, all of its present and future right, title and interest
		in, to and under the following (collectively, the “Assigned Rights”): (i) the Trust, (ii) the Trust Estate, and
		(iii) the Trust Agreement and the Trust Documents described in the Trust
		Agreement, as “Owner Participant” thereunder (together with the Trust
		Documents collectively, the “Assigned Agreements”), and any proceeds therefrom. Assignor hereby
		transfers and delegates to Assignee all of Assignor’s obligations and
		liabilities as “Owner Participant” under the Assigned Agreements
		occurring from and after the date hereof (collectively, the
		“Assumed
		Obligations”). 
	 

	 
		2. Assumption.
		Assignee hereby: (a) accepts the assignment, transfer, conveyance and
		delegation set forth in Section 1 hereof; (b) from and after the date
		hereof, assumes and undertakes all of the Assumed Obligations; and
		(c) confirms that it shall be deemed a party to the Trust Agreement and
		each other Assigned Agreement, and shall be bound by all of the terms of each
		Assigned Agreement as if named therein.
	 

	 
		______________
	 

	 
			
				
				  2
				

			 	
				
				  To be used for Owner Trusts, except
				  where a different form is called for by the Lease Documents or has otherwise
				  been proposed by the Lessee.
				

			 

 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		3. Release of Assignor. From and after the date hereof, Assignor shall be
		released from all of its duties, obligations and liabilities under the Trust
		Agreement and the other Assigned Documents.
	 

	 
		4. [Intentionally omitted.]/[Other
		Actions. The parties acknowledge that
		Assignee is concurrently entering into an amended and restated Trust
		Agreement.]3
	 

	 
		5. Amendment. The
		Trust Agreement is hereby amended to reflect the foregoing, and all references
		in the Trust Agreement to Assignor are hereby amended to refer to
		Assignee.
	 

	 
		6. Further Assurances. Assignor and Assignee each agree to execute and
		deliver such further documents, and to do such further things, as the other
		party may reasonably request, in order to more fully effect the transfer of the
		Assigned Rights pursuant to this Assignment.
	 

	 
		7. Binding Effect.
		This Assignment shall be binding upon, and shall inure to the benefit of, the
		parties hereto and their respective successors and assigns.
	 

	 
		8. Execution in Counterparts. This Assignment may be executed in counterparts, each
		of which shall be deemed an original, but all of which shall constitute one and
		the same instrument.
	 

	 
		9. Agreement in Effect. Except as hereby amended, the Trust Agreement shall
		remain in full force and effect.
	 

	 
		10. Governing Law.
		THIS ASSIGNMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS
		OF THE STATE OF [NEW YORK].
	 

	 
		11. Owner Trustee Authorization and
		Direction. Assignor and Assignee each
		authorizes and directs the Owner Trustee to execute and deliver this Assignment
		as provided below.
	 

	 
		SIGNATURE PAGE FOLLOWS
	 

	 
		______________
	 

	 
			
				
				  3
				

			 	
				
				  Will not be included where Trust
				  Agreement is already in the Agreed Form.
				

			 

 

	 
		 
	 

	 
		2
	 

	 
		 
	 

	 
	 

	 

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

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  BABCOCK & BROWN AIR FUNDING I
				  LIMITED
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  By 
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name:
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Title:
				

			 

 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  [BI SELLER]
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  By: 
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name:
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Title:
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		3
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
			
				
				  THE UNDERSIGNED, [WELLS FARGO
				  BANK
 NORTHWEST, NATIONAL
				  ASSOCIATION],
 hereby confirms receipt
				  of a copy of, and hereby
 acknowledges
				  and consents to the assignment and
 assumption pursuant to, the foregoing

				  Trust Assignment and Assumption Agreement:
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  [WELLS FARGO BANK
				  NORTHWEST,
 NATIONAL ASSOCIATION], in
				  its individual
 capacity and, with
				  respect to the Trust Agreement,
 as
				  Owner Trustee under the Trust Agreement
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  By: 
				

			 	
				
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				  Name:
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				  Title:
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 

 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
		 
	 

	 
		EXHIBIT A-3
	 

	 
		 
	 

	 
		FORM OF IRISH LAW SHARE TRANSFER
		FORM4
	 

	 
		 
	 

	 
		______________
	 

	 
			
				
				  4
				

			 	
				
				  To be used for Irish
				  companies.
				

			 

 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
			
				
				  STOCK
				

			 	

				
				   
				

			 
	
				
				  TRANSFER
				

			 	
				
				   
				

			 
	
				
				  FORM 
				

			 	
				
				  (Above this line for Registrar’s
				  use only)
				

			 
	
				
				  SCHEDULE 1
				

			 	

				
				   
				

			 	

				
				  Certificate lodged with the
				  Register
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	

				
				  Consideration 
				

				
				   
				

			 	

				
				  (For completion by the
				  Registrar/Stock Exchange)
				

			 
	

				
				   
				

			 	
				
				  Name of Undertaking
				

				
				   
				

			 	

				
				   
				

			 
	

				
				   
				

			 	
				
				  Description of Security
				

				
				   
				

			 	

				
				  Ordinary Shares
				

			 
	

				
				   
				

				
				   
				

				
				   
				

				
				   
				

				
				   
				

				
				   
				

			 	
				
				  Number or amount of Shares, Stock or
				  other security and, in figures column only, number and denomination of units,
				  if any.
				

			 	
				
				  Words
				

				
				   
				

				
				   
				

				
				   
				

			 	
				
				  Figures
				

				
				   
				

				
				   
				

			 
	
				
				   
				

			 	
				
				  Name(s) of registered holder(s)
				  should be given in full; the address should be given where there is only one
				  holder.
				

				
				   
				

				
				  If the transfer is not made by the
				  registered holder(s) insert also the name(s) and capacity (e.g., Executor(s) of
				  the person(s) making the transfer.
				

			 	

				
				  In the name(s) of
				

				
				   
				

				
				   
				

			 
	

				
				   
				

			 	

				
				  I/We hereby transfer the above
				  security out of the name(s) aforesaid to the person(s) named below
				  or to the several persona named in Parts
				  2 of Brokers 
				

				
				  Transfer Forms relating to the
				  above security:
				

			 	
				
				  Stamp of Selling Broker(s) or, for
				  transactions which are not stock exchange transactions of Agent(s), if any,
				  acting for the Transferor(s).
				

			 
	
				
				   
				

			 	
				
				   
				

				
				  Delete words in italics except for
				  stock exchange transactions.
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				  Signature(s) of transferor(s)
				

			 	
				
				   
				

			 
	
				
				   
				

			 	

				
				   
				

			 	

				
				   
				

			 
	
				
				   
				

			 	
				
				  1.
				  ____________________________________________________________
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				  2.
				  ____________________________________________________________
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				  3.
				  ____________________________________________________________
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				  4.
				  ____________________________________________________________
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				  A body corporate should execute this
				  Transfer under its common seal or otherwise in accordance with applicable
				  statutory requirements.
				

			 	
				
				  Date _____________
				

			 
	
				
				   
				

			 	

				
				  Full name(s) and full postal
				  address(es) (including County or, if applicable, Postal District number) of the
				  person(s) to whom the security is transferred.
				

			 	

				
				   
				

				
				   
				

				
				   
				

				
				   
				

				
				   
				

				
				   
				

			 
	
				
				   
				

			 	
				
				  Please state title, if any, or
				  whether Mr., Mrs., or Miss.
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	

				
				  Please complete in type or in Block
				  Capitals.
				

			 	

				
				   
				

			 
	
				
				   
				

			 	
				
				  I/We request that such entries be
				  made in the register as are necessary to give effect to this transfer.
				

				
				   
				

			 
	
				
				   
				

			 	

				
				  Stamp of Buying Broker(s) (if
				  any)
				

			 	

				
				  Stamp or name and address of person
				  lodging this form 
				

				
				  (if other than the Buying
				  Broker(s))
				

			 
	
				
				   
				

			 	

				
				   
				

			 	

				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	

				
				   
				

			 	

				
				   
				

			 
							

 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		(Endorsement for use only in Stock Exchange
		Transactions)
	 

	 
		The security represented by the transfer
		overleaf has been sold as follows:-
	 

	 
		 
	 

	 	
			 
				__________________________________
			 

		  	
			 
				Shares/Stock
			 

		  	
			 
				____________________________________
			 

		  	
			 
				Shares/Stock
			 

		  
	
			 
				__________________________________
			 

		  	
			 
				Shares/Stock
			 

		  	
			 
				____________________________________
			 

		  	
			 
				Shares/Stock
			 

		  
	
			 
				__________________________________
			 

		  	
			 
				Shares/Stock
			 

		  	
			 
				____________________________________
			 

		  	
			 
				Shares/Stock
			 

		  
	
			 
				__________________________________
			 

		  	
			 
				Shares/Stock
			 

		  	
			 
				____________________________________
			 

		  	
			 
				Shares/Stock
			 

		  
	
			 
				Balance (if any) due to Selling
				Broker(s)
			 

		  	
			 
				 
			 

		  	
			 
				______________________________________
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				______________________________________
			 

		  	
			 
				 
			 

		  
	
			 
				Amount of Certificate(s)
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				Brokers Transfer Forms for above
				amounts certified
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				Stamp of Certifying Stock
				Exchange
			 

		  	
			 
				Stamp of Selling
				Broker(s)
			 

		  	
			 
				 
			 

		  

	 
		FORM OF CERTIFICATE REQUIRED WHERE
		TRANSFER IS NOT
		LIABLE TO AD VALOREM
		STAMP DUTY
	 

	 
		I/We hereby certify that the transaction in
		respect of which this transfer is made, and under which the fixed Duty of ten
		punts is payable, falls within the following description:-
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				  (a)
				

			 	
				
				  Vesting the property in trustees on
				  the appointment of a new Trustee of a pre-existing Trust, or on the retirement
				  of a Trustee;
				

			 

 

	 
			
				
				  (*)
				

			 	
				
				  (b)
				

			 	
				
				  A transfer, where no beneficial
				  interest in the property passes, (i) to a mere nominee of the Transferor, (ii)
				  from a mere nominee of the Transferee, (iii) from one nominee to another
				  nominee of the same beneficial owner.
				

			 

			
				
				  (*)
				

			 	
				
				  (c)
				

			 	
				
				  A transfer by way of security for a
				  loan; or re-transfer to the original Transferor on repayment of a loan.
				

			 

 

	 
			
				
				   
				

			 	
				
				  (d)
				

			 	
				
				  A transfer to a residuary legatee of
				  Shares, etc., which forms part of the residue divisible under a Will.
				

			 

 

	 
			
				
				   
				

			 	
				
				  (e)
				

			 	
				
				  A transfer to a beneficiary under a
				  Will of a specific legacy of Shares, etc.
				

			 

 

	 
			
				
				   
				

			 	
				
				  (f)
				

			 	
				
				  A transfer of Shares, etc., being the
				  property of a person dying intestate, to the person or persons entitled
				  thereto.
				

			 

 

	 
			
				
				   
				

			 	
				
				  (g)
				

			 	
				
				  A transfer to a beneficiary under a
				  settlement on distribution of the trust funds, of Shares, etc., forming the
				  share, or part of the share of those funds to which the beneficiary is entitled
				  in accordance with the terms of the settlement.
				

			 

 

	 
			
				
				   
				

			 	
				
				  (h)
				

			 	
				
				  A transfer on the occasion of a
				  marriage to trustees of the shares, etc., to be held on the terms of a
				  settlement made in consideration of marriage.
				

			 

 

	 
			
				
				   
				

			 	
				
				  (i)
				

			 	
				
				  A transfer by the liquidator of a
				  Company of Shares, etc., forming part of the assets of the Company, to which
				  the Transferee is entitled in satisfaction or part satisfaction of his rights
				  as a Shareholder of the Company.
				

			 

 

	 	
			 
				Here set out concisely the facts,
				explaining the transaction in cases falling within (b) and (c) or in any case
				which does not clearly fall within any one of the clauses (a) to (g).
				Adjudication in any case may be required.
			 

		  	
			 
				 
			 

			 
				______________________________________________________________________________________________________

			 

			 
				 
			 

			 
				______________________________________________________________________________________________________

			 

			 
				 
			 

			 
				______________________________________________________________________________________________________

			 

			 
				 
			 

			 
				______________________________________________________________________________________________________

			 

			 
				 
			 

			 
				to
				____________________________________________________________________________________________________

			 

			 
				 
			 

			 
				Date
				_______________________________________________
			 

		  

	 
		 
	 

	 	
			 
				*Transferors
			 

		  	
			 
				{
			 

			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				*Transferees
			 

		  	
			 
				{
			 

			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				Signature
				________________________
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				Description
				______________________
			 

		  

	 
			
				
				  *
				

			 	
				
				  Note:- The above Certificate must be
				  signed in the case of (b) and (c), either by (1) all the transferors and the
				  transferees, or (2) a member of a Stock Exchange or a Solicitor acting for one
				  or other of the parties, or (3) an accredited representative of a Bank. Where
				  the Bank or its official nominee is a party to the transfer, the Certificate
				  may be to the effect that “the transfer is excepted from Section 74 of the
				  Finance (1909-10) Act, 1910.” The above Certificate in other cases should
				  be signed by a Solicitor or other person (e.g. a Bank acting as Trustee or
				  Executor) having a full knowledge of the facts.
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		2
	 

	 
		 
	 

	 
	 

	 

	 
		EXHIBIT B
	 

	 
		FORM OF BILL OF SALE
	 

	 
		For valuable consideration, the receipt and
		sufficiency of which is hereby acknowledged, [_______________], a corporation
		organized and existing under the laws of [_______________] and having its
		registered office at [_______________] (the “Seller”),
		owner of the full legal and beneficial title (subject to the Aircraft Lease
		Agreement referred to below) to the aircraft, engines, equipment and documents
		described below (hereinafter referred to as the “Aircraft”):
	 

	 
			
				
				  1.
				

			 	
				
				  one (1) [_______________] aircraft
				  bearing manufacturer’s serial no. [_______________] and registration mark
				  [_______________]; and
				

			 

 

	 
			
				
				  2.
				

			 	
				
				  [_______________] [_______________]
				  engines bearing the following manufacturer’s serial nos.:
				  [_______________], [_______________], [_______________];
				

			 

 

	 
			
				
				  3.
				

			 	
				
				  all equipment, accessories and parts
				  belonging to, installed in or appurtenant to such Aircraft or Engines to the
				  extent title thereto has been vested in the Seller under the Aircraft Lease
				  Agreement referred to below; and
				

			 

 

	 
			
				
				  4.
				

			 	
				
				  all Aircraft Documents relating to
				  the Aircraft and such Engines;
				

			 

 

	 
		but for the avoidance of doubt excluding
		Lessee Furnished Equipment;
	 

	 
		does hereby sell, grant, transfer and
		deliver all its right, title and interest in and to the Aircraft (subject to
		the Aircraft Lease Agreement dated as of [_______________], between
		[_______________] and [______________]) unto [_______________] (the
		“Purchaser”) and its successors and assigns, to have and to
		hold the Aircraft forever.
	 

	 
		The Seller hereby warrants to the Purchaser,
		its successors and assigns, that there is hereby conveyed the full legal and,
		subject to the Formation Agreement, beneficial title to the Aircraft, free and
		clear of all Encumbrances (other than Permitted Encumbrances). The Seller
		agrees with the Purchaser, and its successors and assigns, that the Seller will
		warrant and defend such title forever against all claims and demands (other
		than Permitted Encumbrances) whatsoever. Except as otherwise provided herein or
		in the Asset Purchase Agreement, the Aircraft is sold “AS IS” and
		“WHERE IS.”
	 

	 
		This Bill of Sale shall be governed by and
		construed in accordance with the laws of the State of New York. Capitalized
		terms used but not otherwise defined herein shall have the same meanings as
		used in the Asset Purchase Agreement.
	 

	 
		 
	 

	 
	 

	 

	 
		IN WITNESS WHEREOF, the Seller has caused
		this Bill of Sale to be duly executed as of this [__] day of [__________],
		2007.
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	 	 	 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  By: 
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name:

				  Title:
				

			 

 

	 
		  
	 

	 
			
				
				  The representation, warranties, and
				  covenants of the above named Seller under this Bill of Sale are hereby
				  irrevocably and unconditionally guaranteed and confirmed:
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  BABCOCK & BROWN

				  INTERNATIONAL PTY LTD.
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  By 
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				  Name:

				  Title:
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		2
	 

	 
		 
	 

	 
	 

	 

	 
		EXHIBIT D
	 

	 
		FORM OF GUARANTY – JET-i
		Entities
	 

	 
		GUARANTY (the “Guaranty”)
		dated as of _________, 2007 of Babcock & Brown International Pty Ltd., an
		Australian corporation (the “Guarantor”)
		in favor of Babcock & Brown Air Funding I Limited (the
		“Company”), the other purchasers under the Asset Purchase
		Agreement referred to below, Deutsche Bank Americas Trust Company. as trustee
		(in such capacity, the “Trustee”)
		pursuant to the “Indenture” as such term is defined in the Asset
		Purchase Agreement referred to below and as the Security Trustee and the
		Operating Bank under the Security Trust Agreement (as defined in the Indenture)
		(the Company, such other purchasers, the Trustee, the Security Trustee and the
		Operating Bank being, collectively, the “Beneficiaries”).
	 

	 
		Reference is made to that certain Asset
		Purchase Agreement, dated as of
		[                       ],
		2007 (the “Asset Purchase
		Agreement”), among JET-i Leasing
		LLC, certain entities listed on Schedule 1 thereto, as “Sellers”
		(together with JET-i Leasing LLC, the “Selling Entities”), the Company and certain other purchasers listed
		on Schedule I thereto (together with the Company the “Purchasers”). All capitalized terms used but not otherwise
		defined herein shall have the respective meanings assigned to such terms in the
		Asset Purchase Agreement.
	 

	 
		To induce the Purchasers to acquire the
		Aircraft and the other Assets under the Asset Purchase Agreement and to pay the
		purchase price therefore and otherwise to perform their respective obligations
		thereunder and for other good and valuable consideration, the receipt and
		sufficiency of which is hereby acknowledged, the Guarantor is willing to
		execute and deliver this Guaranty to the Beneficiaries and accordingly the
		Guarantor does hereby agree as follows:
	 

	 
			
				
				  1.
				

			 	
				
				  Guaranty.
				

			 

 

	 
			
				
				   
				

			 	
				
				  (a)
				

			 	
				
				  From and after the date hereof, the
				  Guarantor hereby irrevocably and unconditionally guarantees to the applicable
				  Beneficiaries the payment and performance in full when due of each of the
				  obligations of, and the accuracy of each of the representations and warranties
				  of JET-i Leasing LLC and each of the other Sellers other than Duntington
				  Limited, Halvana Limited and Snodell Limited (collectively, the
				  “Guaranteed
				  Entities”) under (i) the Asset
				  Purchase Agreement and (ii) each Assignment of Equity Interest, Bill of Sale,
				  Lease Novation and/or Assignment of Lease executed and delivered by such
				  Guaranteed Entity pursuant to the Asset Purchase Agreement (such obligations
				  being the “Guaranteed
				  Obligations”, and such documents
				  being collectively the “Operative
				  Documents”). This Guaranty is a
				  guaranty of payment and not collection.
				

			 

 

	 
			
				
				   
				

			 	
				
				  (b)
				

			 	
				
				  The Guarantor hereby agrees that its
				  obligations hereunder shall be absolute and unconditional, not subject to any
				  reduction, limitation, impairment, termination, defense, offset, counterclaim
				  or recoupment whatsoever (all of which, subject to the proviso to this sentence
				  set froth below, are hereby expressly waived by the Guarantor) whether by
				  reason of any claim of any character whatsoever, including, 
				

			 

		

		
		   
		

	 

	 
	 

	 

	 
		without limitation, any claim of waiver,
		release, surrender, alteration or compromise, or by reason of any liability at
		any time to the Guarantor or otherwise, whether based upon any obligations or
		any other agreement or otherwise, and howsoever arising, whether out of action
		or inaction or otherwise and whether resulting from default willful misconduct,
		negligence or otherwise, irrespective of: (i) the validity, regularity or
		enforceability of any Operative Document or any other agreement or instrument
		referred to herein or therein; (ii) any change to any Operative Document or
		amendment to any Operative Document; (iii) the absence of or delay in any
		action or notice to enforce any Operative Document or this Guaranty; (iv) any
		waiver or consent by any Beneficiary with respect to any provision of the
		Operative Documents; (v) any modification or non-perfection of any lien on or
		security interest in any collateral granted pursuant to any Operative Document;
		(vi) the recovery of any judgment against any of the Selling Entities or any
		action to enforce the same; (vii) any offset, counterclaim or recoupment which
		might become available to the Guarantor relating to a Selling Entity; (viii)
		any insolvency, bankruptcy, reorganization or dissolution or any proceeding of
		the Selling Entities or the Guarantor, including, without limitation, rejection
		of the Guaranteed Obligations in such bankruptcy; (ix) any other circumstances
		which may otherwise constitute a legal or equitable discharge or defense of a
		surety or guarantor, (x) any difference between the law selected as the
		governing law of the Operative Documents and the law selected as the governing
		law of this Guaranty; (xi) any other circumstances which might otherwise
		constitute a defense available to, or a discharge of, the Guaranteed Entity in
		respect of the Guaranteed Obligations or the Guarantor in respect hereof; or
		(xii) the absence of any action on the part of the Trustee to obtain payment of
		the Guaranteed Obligations in such bankruptcy; provided that,
		notwithstanding the foregoing, the Guarantor may assert as a defense to any
		claim by any Beneficiary for payment performance hereunder (a
		“Beneficiary Claim”) any defense, claim, set off or deduction which a
		Guaranteed Entity could have asserted in respect of such Beneficiary Claim
		other than such defense, claim, set off or deduction available to such
		Guaranteed Entity only under a bankruptcy, reorganization, insolvency,
		readjustment of debt, suspension of payments, dissolution, liquidation or other
		similar law in proceedings against such Guaranteed Entity under any such law.
		The Guarantor covenants that this Guaranty will not be discharged except by
		complete and final performance of the Guaranteed Obligations.
	 

	 
			
				
				   
				

			 	
				
				  (c)
				

			 	
				
				  The Guarantor shall be subrogated to
				  all rights of the Beneficiaries in respect of any amounts paid by the Guarantor
				  pursuant to the provisions of this Guaranty; provided, that
				  the Guarantor shall be entitled to enforce, or to receive any payments arising
				  out of or based upon, such right of subrogation only after all of the
				  Guaranteed Obligations and any other obligations that the Guaranteed Entities
				  owe to the Beneficiaries that the Guaranties have been finally paid in
				  full.
				

			 

 

	 
			
				
				   
				

			 	
				
				  (d)
				

			 	
				
				  Notwithstanding the above, if any
				  amount shall be paid to the Guarantor at any time when any Guaranteed
				  Obligation shall not have been finally paid in full, such amount shall be held
				  by the Guarantor in trust for the Company or the relevant Beneficiary,
				  segregated from other funds of the Guarantor and turned over to the Company or
				  the relevant Beneficiary (duly endorsed by the Guarantor, if required), to be
				  applied 
				

			 

		

		
		   
		

		
		   
		

		
		  3
		

		
		   
		

	 

	 
	 

	 

	 
		against such Guaranteed Obligation, whether
		matured or unmatured, in accordance with this Guaranty or any other relevant
		Operative Document.
	 

	 
			
				
				   
				

			 	
				
				  (e)
				

			 	
				
				  The Guarantor hereby waives any
				  requirement that any Beneficiary protect, secure, perfect or insure any
				  security interest or lien or any property subject to any Operative Document or
				  exhaust any right or take any action against any person or any collateral
				  (including any rights relating to the marshaling of assets).
				

			 

 

	 
			
				
				   
				

			 	
				
				  (f)
				

			 	
				
				  This Guaranty shall continue to be
				  effective or be reinstated, as the case may be, if at any time any payment of
				  any of the Guaranteed Obligations is rescinded or must otherwise be returned by
				  any Beneficiary upon the insolvency, bankruptcy or reorganization of any
				  Selling Entity or otherwise, all as though such payment had not been
				  made.
				

			 

 

	 
			
				
				  2.
				

			 	
				
				  Assignment of Rights and Claims.
				  The Company agrees that, if Guarantor
				  shall make any payment or render any performance under this Guaranty on account
				  of any breach of any representation or warranty and if, by reason of the act,
				  omission, event, occurrence, non-occurrence or condition that renders the
				  representation or warranty untrue or inaccurate, a Purchaser Entity or any
				  Affiliate thereof holds or may assert rights or claims against one or more
				  third parties (other than a Selling Entity), such as a claim for breach of a
				  representation or warranty made by a third party to a Purchasing Entity or its
				  predecessor in interest, the Company shall cause the Purchasing Entity or the
				  Affiliate, as the case may be, to assign to the Guarantor such rights and
				  claims (and, if necessary to effectively convey such rights and claims, the
				  agreement giving rise to such rights or claims) and shall cause the Purchasing
				  Entity or the Affiliate, as the case may be, to reasonably cooperate with
				  Guarantor in Guarantor’s prosecution of such rights or
				  claims.
				

			 

 

	 
			
				
				  3.
				

			 	
				
				  Miscellaneous.
				

			 

 

	 
			
				
				   
				

			 	
				
				  a.
				

			 	
				
				  Notices. All notices to the Guarantor under this Guaranty and
				  copies of all notices to the Guaranteed Entities under the Operative Documents
				  shall, until Guarantor furnishes written notice to the contrary, be in writing
				  and mailed, faxed or delivered to the Guarantor as follows:
				

			 

 

	 
			
				
				   
				

			 	
				
				  b.
				

			 	
				
				  Governing Law. This Guaranty shall be construed and enforced in
				  accordance with, and governed by, the laws of the State of New York, United
				  States of America.
				

			 

 

	 
			
				
				   
				

			 	
				
				  c.
				

			 	
				
				  Interpretation. The headings of the sections and other subdivisions of
				  this Guaranty are inserted for convenience only and shall not be deemed to
				  constitute a part hereof.
				

			 

 

	 
			
				
				   
				

			 	
				
				  d.
				

			 	
				
				  Attorney’s
				  Cost. The Guarantor agrees to pay all
				  reasonable attorney’s fees and disbursements and all other reasonable and
				  actual costs and expenses, which may be incurred by the Beneficiaries in the
				  enforcement of this Guaranty.
				

			 

 

	 
			
				
				   
				

			 	
				
				  e.
				

			 	
				
				  Currency of
				  Payment. Any payment to be made by the
				  Guarantor shall be made in the same currency as designated for payment in the
				  Asset Purchase Agreement and such designation of the currency of payment is of
				  the essence.
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		4
	 

	 
		 
	 

	 
	 

	 

	 
		IN WITNESS WHEREOF, the Guarantor has caused
		its duly authorized representatives to execute this Guaranty as of the date
		first written above.
	 

	 
		  
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  By: 
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name:

				  Title:
				

			 

 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  By: 
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name:

				  Title:
				

			 

 

	 
		 
	 

	 
			
				
				  ACKNOWLEDGMENT AND AGREEMENT:

				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  does hereby acknowledge and consent
				  to the 
 provisions of the foregoing
				  Guaranty for itself
 and the other
				  Beneficiaries.
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				  for itself and the other
				  Beneficiaries
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  By: 
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				  not in its individual capacity but
				  solely as
				  [                       ]

				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				  By: 
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				  Name: 
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				  Title: 
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 

 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
		 
	 

	 
		FORM OF GUARANTY – Non-JET-i
		Entities
	 

	 
		GUARANTY (the “Guaranty”)
		dated as of _________, 2007 of Babcock & Brown International Pty Ltd., an
		Australian corporation (the “Guarantor”)
		in favor of Babcock & Brown Air Funding I Limited (the
		“Company”), the other purchasers under the Asset Purchase
		Agreement referred to below, Deutsche Bank Americas Trust Company. as trustee
		(in such capacity, the “Trustee”)
		pursuant to the “Indenture” as such term is defined in the Asset
		Purchase Agreement referred to below and as the Security Trustee and the
		Operating Bank under the Security Trust Agreement (as defined in the Indenture)
		(the Company, such other purchasers, the Trustee, the Security Trustee and the
		Operating Bank being, collectively, the “Beneficiaries”).
	 

	 
		Reference is made to that certain Asset
		Purchase Agreement, dated as of
		[                       ],
		2007 (the “Asset Purchase
		Agreement”), among JET-i Leasing
		LLC, certain entities listed on Schedule 1 thereto, as “Sellers”
		(together with JET-i Leasing LLC, the “Selling Entities”), the Company and certain other purchasers listed
		on Schedule I thereto (together with the Company the “Purchasers”). All capitalized terms used but not otherwise
		defined herein shall have the respective meanings assigned to such terms in the
		Asset Purchase Agreement.
	 

	 
		To induce the Purchasers to acquire the
		Aircraft and the other Assets under the Asset Purchase Agreement and to pay the
		purchase price therefore and otherwise to perform their respective obligations
		thereunder and for other good and valuable consideration, the receipt and
		sufficiency of which is hereby acknowledged, the Guarantor is willing to
		execute and deliver this Guaranty to the Beneficiaries and accordingly the
		Guarantor does hereby agree as follows:
	 

	 
			
				
				  1.
				

			 	
				
				  Guaranty.
				

			 

 

	 
			
				
				   
				

			 	
				
				  f.
				

			 	
				
				  From and after the date hereof, the
				  Guarantor hereby irrevocably and unconditionally guarantees to the applicable
				  Beneficiaries the payment and performance in full when due of each of the
				  obligations of, and the accuracy of each of the representations and warranties
				  of each of Duntington Limited, Halvana Limited and Snodell Limited
				  (collectively, the “Guaranteed
				  Entities”) under (i) the Asset
				  Purchase Agreement and (ii) each Assignment of Equity Interest, Bill of Sale,
				  Lease Novation and/or Assignment of Lease executed and delivered by such
				  Guaranteed Entity pursuant to the Asset Purchase Agreement (such obligations
				  being the “Guaranteed
				  Obligations”, and such documents
				  being collectively the “Operative
				  Documents”). This Guaranty is a
				  guaranty of payment and not collection.
				

			 

 

	 
			
				
				   
				

			 	
				
				  g.
				

			 	
				
				  The Guarantor hereby agrees that its
				  obligations hereunder shall be absolute and unconditional, not subject to any
				  reduction, limitation, impairment, termination, defense, offset, counterclaim
				  or recoupment whatsoever (all of which, subject to the proviso to this sentence
				  set froth below, are hereby expressly waived by the Guarantor) whether by
				  reason of any claim of any character whatsoever, including, without limitation,
				  any claim of waiver, release, surrender, alteration or compromise, or by reason
				  of any liability at any time to the Guarantor or otherwise, whether based
				  
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		7
	 

	 
		 
	 

	 
	 

	 

	 
		upon any obligations or any other agreement
		or otherwise, and howsoever arising, whether out of action or inaction or
		otherwise and whether resulting from default willful misconduct, negligence or
		otherwise, irrespective of: (i) the validity, regularity or enforceability of
		any Operative Document or any other agreement or instrument referred to herein
		or therein; (ii) any change to any Operative Document or amendment to any
		Operative Document; (iii) the absence of or delay in any action or notice to
		enforce any Operative Document or this Guaranty; (iv) any waiver or consent by
		any Beneficiary with respect to any provision of the Operative Documents; (v)
		any modification or non-perfection of any lien on or security interest in any
		collateral granted pursuant to any Operative Document; (vi) the recovery of any
		judgment against any of the Selling Entities or any action to enforce the same;
		(vii) any offset, counterclaim or recoupment which might become available to
		the Guarantor relating to a Selling Entity; (viii) any insolvency, bankruptcy,
		reorganization or dissolution or any proceeding of the Selling Entities or the
		Guarantor, including, without limitation, rejection of the Guaranteed
		Obligations in such bankruptcy; (ix) any other circumstances which may
		otherwise constitute a legal or equitable discharge or defense of a surety or
		guarantor, (x) any difference between the law selected as the governing law of
		the Operative Documents and the law selected as the governing law of this
		Guaranty; (xi) any other circumstances which might otherwise constitute a
		defense available to, or a discharge of, the Guaranteed Entity in respect of
		the Guaranteed Obligations or the Guarantor in respect hereof; or (xii) the
		absence of any action on the part of the Trustee to obtain payment of the
		Guaranteed Obligations in such bankruptcy; provided that,
		notwithstanding the foregoing, the Guarantor may assert as a defense to any
		claim by any Beneficiary for payment performance hereunder (a
		“Beneficiary Claim”) any defense, claim, set off or deduction which a
		Guaranteed Entity could have asserted in respect of such Beneficiary Claim
		other than such defense, claim, set off or deduction available to such
		Guaranteed Entity only under a bankruptcy, reorganization, insolvency,
		readjustment of debt, suspension of payments, dissolution, liquidation or other
		similar law in proceedings against such Guaranteed Entity under any such law.
		The Guarantor covenants that this Guaranty will not be discharged except by
		complete and final performance of the Guaranteed Obligations.
	 

	 
			
				
				   
				

			 	
				
				  h.
				

			 	
				
				  The Guarantor shall be subrogated to
				  all rights of the Beneficiaries in respect of any amounts paid by the Guarantor
				  pursuant to the provisions of this Guaranty; provided, that
				  the Guarantor shall be entitled to enforce, or to receive any payments arising
				  out of or based upon, such right of subrogation only after all of the
				  Guaranteed Obligations and any other obligations that the Guaranteed Entities
				  owe to the Beneficiaries that the Guaranties have been finally paid in
				  full.
				

			 

 

	 
			
				
				   
				

			 	
				
				  i.
				

			 	
				
				  Notwithstanding the above, if any
				  amount shall be paid to the Guarantor at any time when any Guaranteed
				  Obligation shall not have been finally paid in full, such amount shall be held
				  by the Guarantor in trust for the Company or the relevant Beneficiary,
				  segregated from other funds of the Guarantor and turned over to the Company or
				  the relevant Beneficiary (duly endorsed by the Guarantor, if required), to be
				  applied against such Guaranteed Obligation, whether matured or unmatured, in
				  accordance with this Guaranty or any other relevant Operative Document.
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		8
	 

	 
		 
	 

	 
	 

	 

	 
			
				
				   
				

			 	
				
				  j.
				

			 	
				
				  The Guarantor hereby waives any
				  requirement that
				                                              or
				  any Beneficiary protect, secure, perfect or insure any security interest or
				  lien or any property subject to any Operative Document or exhaust any right or
				  take any action against any person or any collateral (including any rights
				  relating to the marshaling of assets).
				

			 

 

	 
			
				
				   
				

			 	
				
				  k.
				

			 	
				
				  This Guaranty shall continue to be
				  effective or be reinstated, as the case may be, if at any time any payment of
				  any of the Guaranteed Obligations is rescinded or must otherwise be returned by
				  any Beneficiary upon the insolvency, bankruptcy or reorganization of any
				  Selling Entity or otherwise, all as though such payment had not been
				  made.
				

			 

 

	 
			
				
				  2.
				

			 	
				
				  Assignment of Rights and Claims.
				  The Company agrees that, if Guarantor
				  shall make any payment or render any performance under this Guaranty on account
				  of any breach of any representation or warranty and if, by reason of the act,
				  omission, event, occurrence, non-occurrence or condition that renders the
				  representation or warranty untrue or inaccurate, a Purchaser Entity or any
				  Affiliate thereof holds or may assert rights or claims against one or more
				  third parties (other than a Selling Entity), such as a claim for breach of a
				  representation or warranty made by a third party to a Purchasing Entity or its
				  predecessor in interest, the Company shall cause the Purchasing Entity or the
				  Affiliate, as the case may be, to assign to the Guarantor such rights and
				  claims (and, if necessary to effectively convey such rights and claims, the
				  agreement giving rise to such rights or claims) and shall cause the Purchasing
				  Entity or the Affiliate, as the case may be, to reasonably cooperate with
				  Guarantor in Guarantor’s prosecution of such rights or
				  claims.
				

			 

 

	 
			
				
				  3.
				

			 	
				
				  Miscellaneous.
				

			 

 

	 
			
				
				   
				

			 	
				
				  l.
				

			 	
				
				  Notices. All notices to the Guarantor under this Guaranty and
				  copies of all notices to the Guaranteed Entities under the Operative Documents
				  shall, until Guarantor furnishes written notice to the contrary, be in writing
				  and mailed, faxed or delivered to the Guarantor as follows:
				

			 

 

	 
			
				
				   
				

			 	
				
				  m.
				

			 	
				
				  Governing Law. This Guaranty shall be construed and enforced in
				  accordance with, and governed by, the laws of the State of New York, United
				  States of America.
				

			 

 

	 
			
				
				   
				

			 	
				
				  n.
				

			 	
				
				  Interpretation. The headings of the sections and other subdivisions of
				  this Guaranty are inserted for convenience only and shall not be deemed to
				  constitute a part hereof.
				

			 

 

	 
			
				
				   
				

			 	
				
				  o.
				

			 	
				
				  Attorney’s
				  Cost. The Guarantor agrees to pay all
				  reasonable attorney’s fees and disbursements and all other reasonable and
				  actual costs and expenses, which may be incurred by the Beneficiaries in the
				  enforcement of this Guaranty.
				

			 

 

	 
			
				
				   
				

			 	
				
				  p.
				

			 	
				
				  Currency of
				  Payment. Any payment to be made by the
				  Guarantor shall be made in the same currency as designated for payment in the
				  Asset Purchase Agreement and such designation of the currency of payment is of
				  the essence.
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		9
	 

	 
		 
	 

	 
	 

	 

	 
		IN WITNESS WHEREOF, the Guarantor has caused
		its duly authorized representatives to execute this Guaranty as of the date
		first written above.
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  By: 
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name:
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Title:
				

			 

 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  By: 
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name:
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Title:
				

			 

 

	 
		ACKNOWLEDGMENT AND AGREEMENT:
	 

	 
		does hereby acknowledge and consent to the
		
	 

	 
		provisions of the foregoing Guaranty for
		itself
	 

	 
		and the other Beneficiaries.
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				  for itself and the other
				  Beneficiaries
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  By: 
				

			 	
				
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				  not in its individual capacity but
				  solely as [     ]
				

			 	
				
				   
				

			 

 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				  
 By:
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				  Name:
				

			 	
				
				   
				

			 	
				
				   
				

			 	

				
				   
				

			 
	
				
				   
				

			 	
				
				  Title:
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
						

 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		EXHIBIT E-1
	 

	 
		CONDITIONS PRECEDENT – AIRCRAFT
		DELIVERY (BI AIRCRAFT)
	 

	 
		With respect to the Delivery of each BI
		Aircraft to the Purchaser on the relevant Delivery Date:
	 

	 
			
				
				   
				

			 	
				
				  (a)
				

			 	
				
				  the relevant Operative Documents for
				  such Aircraft, as the case may be, have been entered into by the parties
				  thereto;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (b)
				

			 	
				
				  the Purchaser shall have received
				  payment in full of any Security Deposit and the relevant amount of Basic and
				  Additional Rent with respect to such Aircraft;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (c)
				

			 	
				
				  receipt of the following documents
				  by such Purchaser:
				

			 

 

	 
			
				
				   
				

			 	
				
				  (i)
				

			 	
				
				  a copy of the constitutional
				  documents of such Seller and any other Affiliate of such Seller which is a
				  party to any Operative Document in respect of such Aircraft, certified as of
				  such Delivery Date to be a true, complete and up-to-date copy of the
				  constitutional documents of such Seller or Affiliate, or if a certified copy of
				  such documents has previously been delivered to such Purchaser hereunder, a
				  certificate dated such Delivery Date confirming no changes to such documents;
				  and
				

			 

 

	 
			
				
				   
				

			 	
				
				  (ii)
				

			 	
				
				  a copy of resolutions of the Board
				  of Directors (or duly authorized committee thereof) of such Seller or an
				  Affiliate of Seller:
				

			 

 

	 
			
				
				   
				

			 	
				
				  (A)
				

			 	
				
				  approving the transactions
				  contemplated by the Operative Documents to which such Seller is a party;
				  and
				

			 

 

	 
			
				
				   
				

			 	
				
				  (B)
				

			 	
				
				  authorizing a Person or Persons to
				  sign and deliver on behalf of such Seller or, as the case may be, authorizing
				  the execution by the relevant Person of the Operative Documents to which it is
				  a party and any notices or other documents to be given pursuant hereto or
				  thereto,
				

			 

 

	 
		certified as of such Delivery Date to be a
		true copy of such resolutions and as being in full force in effect and not
		amended or rescinded or, if a certified copy of such resolutions has previously
		been delivered to such Purchaser hereunder, a certificate dated such Delivery
		Date confirming no changes to such resolutions;
	 

	 
			
				
				   
				

			 	
				
				  (d)
				

			 	
				
				  no Event of Loss shall have occurred
				  or unrepaired Material Damage shall be in existence with respect to such
				  Aircraft; and
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		2
	 

	 
		 
	 

	 
	 

	 

	 
			
				
				   
				

			 	
				
				  (e)
				

			 	
				
				  delivery of the following
				  documents:
				

			 

 

	 
			
				
				   
				

			 	
				
				  (i)
				

			 	
				
				  copies of all notices, consents or
				  acknowledgements of such Seller or the applicable Lessee as are required under
				  the terms of the Operative Documents;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (ii)
				

			 	
				
				  the documents or satisfaction of the
				  conditions listed in Schedule 3 relevant to such Aircraft;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (iii)
				

			 	
				
				  a copy of the currently valid
				  Certificate of Registration for such Aircraft, issued by the appropriate Air
				  Authority; and
				

			 

 

	 
			
				
				   
				

			 	
				
				  (iv)
				

			 	
				
				  if applicable, a copy of the
				  Assignment of Warranties with respect to such Aircraft executed by each of the
				  parties thereto (provided that such Assignment of Warranties may be delivered
				  as soon as reasonably practicable after the relevant BI Transfer Date).
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		3
	 

	 
		 
	 

	 
	 

	 

	 
		EXHIBIT E-2
	 

	 
		CONDITIONS PRECEDENT – AIRCRAFT
		DELIVERY (INDEPENDENT AIRCRAFT)
	 

	 
		With respect to the Delivery of each
		Independent Aircraft to the Purchaser or a Subsidiary of the Purchaser:
	 

	 
			
				
				   
				

			 	
				
				  (a)
				

			 	
				
				  the relevant Operative Documents for
				  such Aircraft, as the case may be, have been entered into by the parties
				  thereto (other than the Purchaser or any Affiliate thereof);
				

			 

 

	 
			
				
				   
				

			 	
				
				  (b)
				

			 	
				
				  the Purchaser shall have received
				  payment in full of any Security Deposit and the relevant amount of Basic and
				  Additional Rent with respect to such Aircraft;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (c)
				

			 	
				
				  the relevant Purchaser shall have
				  received a certification dated such Delivery Date from such Seller to the
				  effect that (i) the representations and warranties of such Seller set forth
				  herein are true and correct as of such Delivery Date and (ii) the Seller has
				  full legal title to such Aircraft, free from Encumbrances other than Permitted
				  Encumbrances;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (d)
				

			 	
				
				  unless and to the extent the
				  Purchaser shall otherwise agree, or a Rating Agency Confirmation and the prior
				  written consent of the Policy Provider shall have been obtained with respect
				  thereto, all the conditions precedent to the effectiveness of the Assignment of
				  Lease or Lease Novation, as applicable, for such Aircraft shall have been
				  satisfied and the Purchaser shall have received a certification from such
				  Seller to such effect;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (e)
				

			 	
				
				  receipt of the following documents
				  by such Purchaser:
				

			 

 

	 
			
				
				   
				

			 	
				
				  (i)
				

			 	
				
				  a copy of the constitutional
				  documents of such Seller and any other Affiliate of such Seller which is a
				  party to any Operative Document in respect of such Aircraft, certified as of
				  such Delivery Date to be a true, complete and up-to-date copy of the
				  constitutional documents of such Seller or Affiliate, or if a certified copy of
				  such documents has previously been delivered to such Purchaser hereunder, a
				  certificate dated such Delivery Date confirming no changes to such documents;
				  and
				

			 

 

	 
			
				
				   
				

			 	
				
				  (ii)
				

			 	
				
				  a copy of resolutions of the Board
				  of Directors (or duly authorized committee thereof) of such Seller or an
				  Affiliate of Seller:
				

			 

 

	 
			
				
				   
				

			 	
				
				  (A)
				

			 	
				
				  approving the transactions
				  contemplated by this Agreement and the other Operative Documents to which such
				  Seller is a party; and
				

			 

 

	 
			
				
				   
				

			 	
				
				  (B)
				

			 	
				
				  authorizing a Person or Persons to
				  sign and deliver on behalf of such Seller or, as the case may be, authorizing
				  the execution by the relevant Person of this Agreement and the other Operative
				  
				

			 

 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		Documents to which it is a party and any
		notices or other documents to be given pursuant hereto or thereto,
	 

	 
		certified as of such Delivery Date to be a
		true copy of such resolutions and as being in full force in effect and not
		amended or rescinded or, if a certified copy of such resolutions has previously
		been delivered to such Purchaser hereunder, a certificate dated such Delivery
		Date confirming no changes to such resolutions;
	 

	 
			
				
				   
				

			 	
				
				  (f)
				

			 	
				
				  no Event of Loss shall have occurred
				  or unrepaired Material Damage shall be in existence with respect to such
				  Aircraft; 
				

			 

 

	 
			
				
				   
				

			 	
				
				  (g)
				

			 	
				
				  delivery of the following
				  documents:
				

			 

 

	 
			
				
				   
				

			 	
				
				  (i)
				

			 	
				
				  a certificate of solvency dated as
				  of such Delivery Date in the Agreed Form relating to such Seller issued by a
				  director or authorized officer thereof and a certificate of solvency dated as
				  of such Delivery Date in the Agreed Form relating to the Seller issued by a
				  director or authorized officer of such Seller;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (ii)
				

			 	
				
				  a favorable opinion of counsel to
				  such Seller, dated as of the AP Closing Date, reasonably acceptable to the
				  Purchaser in the Agreed Form, that the sale of such Aircraft constitutes, or
				  will constitute, a “true-sale” and a valid transfer of title to such
				  Aircraft and that after the Delivery of such Aircraft such Seller retains, or
				  will retain, no interest in such Aircraft and as to such other matters as such
				  Purchaser may reasonably request with regard to the subject matter contemplated
				  herein and a letter from counsel to such Seller, dated as of such Delivery
				  Date, confirming such opinion;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (iii)
				

			 	
				
				  copies of all notices, consents or
				  acknowledgements of such Seller or the applicable Lessee as are required under
				  the terms of the Operative Documents;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (iv)
				

			 	
				
				  the documents or satisfaction of the
				  conditions listed in Schedule 3 relevant to such Aircraft; 
				

			 

 

	 
			
				
				   
				

			 	
				
				  (vi)
				

			 	
				
				  a copy of the currently valid
				  Certificate of Registration for such Aircraft, issued by the appropriate Air
				  Authority; and
				

			 

 

	 
			
				
				   
				

			 	
				
				  (vi)
				

			 	
				
				  if applicable, a copy of the
				  Assignment of Warranties with respect to such Aircraft executed by each of the
				  parties thereto (other than the Purchaser or any Affiliate of such Purchaser)
				  (provided that such Assignment of Warranties may be delivered as soon as
				  reasonably practicable after the relevant Delivery Date);
				

			 

 

	 
			
				
				   
				

			 	
				
				  (h)
				

			 	
				
				  originals, or certified copies, of
				  certificates evidencing the insurance required to be maintained pursuant to the
				  relevant Assigned Lease or the Novated Lease, as appropriate, for such Aircraft
				  together, if applicable, with a letter or report from 
				

			 

 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		an independent firm of insurance brokers in
		a form reasonably acceptable to the Purchaser; and 
	 

	 
			
				
				   
				

			 	
				
				  (i)
				

			 	
				
				  the report of such Purchaser’s
				  insurance advisor in substantially the Agreed Form.
				

			 

 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		EXHIBIT F
	 

	 
		FORM OF SERVICING AGREEMENT
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		EXHIBIT G
	 

	 
		FORM OF ADMINISTRATIVE AGENCY
		AGREEMENT
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		ANNEX A
	 

	 
		Relevant Aircraft and Lease
		Information
	 

	 
			
				
				  1.
				

			 	
				
				  Aircraft Serial No. (S/N)
				

			 

 

	 
			
				
				  2.
				

			 	
				
				  Aircraft Type (Manufacturer, Model
				  and Series)
				

			 

 

	 
			
				
				  3.
				

			 	
				
				  Date of Manufacture
				

			 

 

	 
			
				
				  4.
				

			 	
				
				  Engine manufacturer, model and
				  series
				

			 

 

	 
			
				
				  5.
				

			 	
				
				  Lessee
				

			 

 

	 
			
				
				  6.
				

			 	
				
				  Country of Incorporation of
				  Lessee
				

			 

 

	 
			
				
				  7.
				

			 	
				
				  Sub- Lessee
				

			 

 

	 
			
				
				  8.
				

			 	
				
				  Lease Start Date
				

			 

 

	 
			
				
				  9.
				

			 	
				
				  Lease End Date
				

			 

 

	 
			
				
				  10.
				

			 	
				
				  Rental Fixed/Floating
				

			 

 

	 
			
				
				  11.
				

			 	
				
				  Monthly Rental (if fixed)
				

			 

 

	 
			
				
				  12.
				

			 	
				
				  Floating Rental
				

			 

 

	 
			
				
				  13.
				

			 	
				
				  Floating Rental Reset Period
				

			 

 

	 
			
				
				  14.
				

			 	
				
				  Date Current Lease Will Reset

				

			 

 

	 
			
				
				  15.
				

			 	
				
				  Contractual Rent Payment Due
				

			 

 

	 
			
				
				  16.
				

			 	
				
				  Supplemental Rent Payable
				  (Yes/No)
				

			 

 

	 
			
				
				  17.
				

			 	
				
				  Lessor required to make contribution
				  towards maintenance charges from maintenance reserves (Yes/No)
				

			 

 

	 
			
				
				  18.
				

			 	
				
				  Lessee/ Lessor required to make
				  adjustment payments on redelivery based on Maintenance conditions
				  (Lessee/Lessor/ Limited obligations)
				

			 

 

	 
			
				
				  19.
				

			 	
				
				  Currency of Payment
				

			 

 

	 
			
				
				  20.
				

			 	
				
				  Either Letter of Credit or Security
				  Deposit
				

			 

 

	 
			
				
				  21.
				

			 	
				
				  Early Termination Option (including
				  First Exercise Date/Last Exercise Date/Termination fees) (Yes/No)
				

			 

 

	 
			
				
				  22.
				

			 	
				
				  Extension Option (including original
				  expiry date/extension option period/ extension option rent)
				

			 

 

	 
			
				
				  23.
				

			 	
				
				  Purchase Option (including Purchase
				  Option Amount and Purchase Option Termination Date)
				

			 

 

	 
			
				
				  24.
				

			 	
				
				  Base Rent
				

			 

 

	 
			
				
				  25.
				

			 	
				
				  Adjustment Factor
				

			 

 

	 
			
				
				  26.
				

			 	
				
				  LIBOR (for floating rate leases;
				  i.e., six-month Libor)
				

			 

 

	 
			
				
				  27.
				

			 	
				
				  Assumed Interest Rate
				

			 

 

	 
			
				
				  28.
				

			 	
				
				  Escalation Factors
				

			 

 

	 
			
				
				  29.
				

			 	
				
				  Rental credit/debit (for MSN
				  1595)
				

			 

 

	 
			
				
				  30.
				

			 	
				
				  Aircraft specifications with
				  maintenance conditions
				

			 

 

	 
			
				
				  31.
				

			 	
				
				  Lease Revenue Schedule for the
				  Initial Leases attached hereto as Appendix I
				

			 

 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		Appendix I
	 

	 
		[CS Aircraft Lease Revenue
		Schedule]Exhibit 10.3
	 

	 
		 
	 

	 
		
		  
		  

		
 
 

	 
		SERVICING AGREEMENT
	 

	 
		among
	 

	 
		BABCOCK & BROWN AIRCRAFT MANAGEMENT
		LLC,
	 

	 
		BABCOCK & BROWN AIRCRAFT MANAGEMENT
		(EUROPE) LIMITED,
	 

	 
		BABCOCK & BROWN AIR FUNDING I
		LIMITED
	 

	 
		and
	 

	 
		AMBAC ASSURANCE CORPORATION
	 

	 
		
		  
		  

		
 
 

	 
		 
	 

	 
	 

	 

	 
		TABLE OF CONTENTS
	 

	 
		 
	 

	 
			
				
				   
				

			 	 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Page
				

			 
	
				
				  ARTICLE I
				

			 	
				
				  Definitions
				

			 	
				
				   
				

			 	
				
				  1
				

			 
	
				
				  Section 1.01.
				

			 	 	
				
				   
				

			 	
				
				  Definitions
				

			 	
				
				   
				

			 	
				
				  1
				

			 
	
				
				  Section 1.02.
				

			 	 	
				
				   
				

			 	
				
				  Construction and Usage
				

			 	
				
				   
				

			 	
				
				  1
				

			 
	
				
				  ARTICLE II
				

			 	
				
				   Appointment; Services
				

			 	
				
				   
				

			 	
				
				  1
				

			 
	
				
				  Section 2.01.
				

			 	 	
				
				   
				

			 	
				
				  Appointment
				

			 	
				
				   
				

			 	
				
				  1
				

			 
	
				
				  Section 2.02.
				

			 	 	
				
				   
				

			 	
				
				  Aircraft Asset Services
				

			 	
				
				   
				

			 	
				
				  4
				

			 
	
				
				  Section 2.04.
				

			 	 	
				
				   
				

			 	
				
				  Compliance with Applicable
				  Laws
				

			 	
				
				   
				

			 	
				
				  6
				

			 
	
				
				  Section 2.05.
				

			 	 	
				
				   
				

			 	
				
				  Limitations
				

			 	
				
				   
				

			 	
				
				  6
				

			 
	
				
				  ARTICLE III
				

			 	
				
				   Standard
				  of Care; Conflicts of Interest; Standard of Liability
				

			 	
				
				   
				

			 	
				
				  8
				

			 
	
				
				  Section 3.01.
				

			 	 	
				
				   
				

			 	
				
				  Standard of Care
				

			 	
				
				   
				

			 	
				
				  8
				

			 
	
				
				  Section 3.02.
				

			 	 	
				
				   
				

			 	
				
				  Conflicts of Interest
				

			 	
				
				   
				

			 	
				
				  8
				

			 
	
				
				  Section 3.03.
				

			 	 	
				
				   
				

			 	
				
				  Standard of Liability; Servicer
				  Indemnification
				

			 	
				
				   
				

			 	
				
				  10
				

			 
	
				
				  Section 3.04.
				

			 	 	
				
				   
				

			 	
				
				  Waiver of Implied Standard
				

			 	
				
				   
				

			 	
				
				  11
				

			 
	
				
				  ARTICLE IV
				

			 	
				
				   Representations and Warranties
				

			 	
				
				   
				

			 	
				
				  12
				

			 
	
				
				  Section 4.01.
				

			 	 	
				
				   
				

			 	
				
				  Aircraft Assets
				

			 	
				
				   
				

			 	
				
				  12
				

			 
	
				
				  Section 4.02.
				

			 	 	
				
				   
				

			 	
				
				  Aircraft Assets Related
				  Documents
				

			 	
				
				   
				

			 	
				
				  12
				

			 
	
				
				  Section 4.03.
				

			 	 	
				
				   
				

			 	
				
				  Accounts and Cash Flow
				

			 	
				
				   
				

			 	
				
				  13
				

			 
	
				
				  Section 4.04
				

			 	 	
				
				   
				

			 	
				
				  Organization and Standing
				

			 	
				
				   
				

			 	
				
				  13
				

			 
	
				
				  Section 4.05.
				

			 	 	
				
				   
				

			 	
				
				  Authority
				

			 	
				
				   
				

			 	
				
				  13
				

			 
	
				
				  Section 4.06.
				

			 	 	
				
				   
				

			 	
				
				  No Conflicts
				

			 	
				
				   
				

			 	
				
				  14
				

			 
	
				
				  Section 4.07.
				

			 	 	
				
				   
				

			 	
				
				  Compliance with Applicable
				  Laws
				

			 	
				
				   
				

			 	
				
				  14
				

			 
	
				
				  Section 4.08.
				

			 	 	
				
				   
				

			 	
				
				  Litigation; Decrees
				

			 	
				
				   
				

			 	
				
				  14
				

			 
	
				
				  Section 4.09.
				

			 	 	
				
				   
				

			 	
				
				  Appointments
				

			 	
				
				   
				

			 	
				
				  15
				

			 
	
				
				  Section 4.10.
				

			 	 	
				
				   
				

			 	
				
				  Authority
				

			 	
				
				   
				

			 	
				
				  15
				

			 
	
				
				  Section 4.11.
				

			 	 	
				
				   
				

			 	
				
				  No Conflicts
				

			 	
				
				   
				

			 	
				
				  16
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		i
	 

	 
		 
	 

	 
	 

	 

	 
		TABLE OF CONTENTS
	 

	 
		(continued)
	 

	 
		 
	 

	 
			
				
				   
				

			 	 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Page
				

			 
	
				
				  Section 4.12.
				

			 	 	
				
				   
				

			 	
				
				  Compliance with Applicable Laws of
				  Ireland
				

			 	
				
				   
				

			 	
				
				  16
				

			 
	
				
				  Section 4.13
				

			 	 	
				
				   
				

			 	
				
				  Litigation; Decrees
				

			 	
				
				   
				

			 	
				
				  16
				

			 
	
				
				  ARTICLE V
				

			 	
				
				   Servicer
				  Undertakings
				

			 	
				
				   
				

			 	
				
				  16
				

			 
	
				
				  Section 5.01.
				

			 	 	
				
				   
				

			 	
				
				  Access
				

			 	
				
				   
				

			 	
				
				  16
				

			 
	
				
				  Section 5.02.
				

			 	 	
				
				   
				

			 	
				
				  Compliance with Law
				

			 	
				
				   
				

			 	
				
				  18
				

			 
	
				
				  Section 5.03.
				

			 	 	
				
				   
				

			 	
				
				  Commingling
				

			 	
				
				   
				

			 	
				
				  18
				

			 
	
				
				  Section 5.04.
				

			 	 	
				
				   
				

			 	
				
				  Restrictions on Exercise of Certain
				  Rights
				

			 	
				
				   
				

			 	
				
				  18
				

			 
	
				
				  Section 5.05.
				

			 	 	
				
				   
				

			 	
				
				  Coordination with NSL Group
				

			 	
				
				   
				

			 	
				
				  19
				

			 
	
				
				  Section 5.06.
				

			 	 	
				
				   
				

			 	
				
				  Corporate Formalities
				

			 	
				
				   
				

			 	
				
				  19
				

			 
	
				
				  ARTICLE VI
				

			 	
				
				   Undertakings of the Company
				

			 	
				
				   
				

			 	
				
				  19
				

			 
	
				
				  Section 6.01.
				

			 	 	
				
				   
				

			 	
				
				  Cooperation
				

			 	
				
				   
				

			 	
				
				  19
				

			 
	
				
				  Section 6.02.
				

			 	 	
				
				   
				

			 	
				
				  No Representation with Respect to
				  Third Parties
				

			 	
				
				   
				

			 	
				
				  20
				

			 
	
				
				  Section 6.03.
				

			 	 	
				
				   
				

			 	
				
				  Related Document Amendments
				

			 	
				
				   
				

			 	
				
				  20
				

			 
	
				
				  Section 6.04.
				

			 	 	
				
				   
				

			 	
				
				  Exclusivity
				

			 	
				
				   
				

			 	
				
				  20
				

			 
	
				
				  Section 6.05.
				

			 	 	
				
				   
				

			 	
				
				  Communications
				

			 	
				
				   
				

			 	
				
				  20
				

			 
	
				
				  Section 6.06.
				

			 	 	
				
				   
				

			 	
				
				  Ratification
				

			 	
				
				   
				

			 	
				
				  20
				

			 
	
				
				  Section 6.07.
				

			 	 	
				
				   
				

			 	
				
				  Additional Aircraft Assets
				

			 	
				
				   
				

			 	
				
				  21
				

			 
	
				
				  Section 6.08.
				

			 	 	
				
				   
				

			 	
				
				  Execution, Amendment, Modification
				  or Termination of Aircraft Assets Related Documents
				

			 	
				
				   
				

			 	
				
				  21
				

			 
	
				
				  Section 6.09.
				

			 	 	
				
				   
				

			 	
				
				  Access to the Company Group
				  Information
				

			 	
				
				   
				

			 	
				
				  22
				

			 
	
				
				  Section 6.10.
				

			 	 	
				
				   
				

			 	
				
				  Company Group Accounts and Cash
				  Arrangements
				

			 	
				
				   
				

			 	
				
				  22
				

			 
	
				
				  Section 6.11.
				

			 	 	
				
				   
				

			 	
				
				  [Reserved]
				

			 	
				
				   
				

			 	
				
				  22
				

			 
	
				
				  Section 6.12.
				

			 	 	
				
				   
				

			 	
				
				  Further Assurances
				

			 	
				
				   
				

			 	
				
				  22
				

			 
	
				
				  Section 6.13.
				

			 	 	
				
				   
				

			 	
				
				  Guarantees
				

			 	
				
				   
				

			 	
				
				  22
				

			 
	
				
				  Section 6.14.
				

			 	 	
				
				   
				

			 	
				
				  Transfers of Funds
				

			 	
				
				   
				

			 	
				
				  23
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		ii
	 

	 
		 
	 

	 
	 

	 

	 
		TABLE OF CONTENTS
	 

	 
		(continued)
	 

	 
		 
	 

	 
			
				
				   
				

			 	 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Page
				

			 
	
				
				  ARTICLE VII
				

			 	
				
				   Group
				  Responsibility
				

			 	
				
				   
				

			 	
				
				  23
				

			 
	
				
				  Section 7.01.
				

			 	 	
				
				   
				

			 	
				
				  Group Responsibility
				

			 	
				
				   
				

			 	
				
				  23
				

			 
	
				
				  Section 7.02.
				

			 	 	
				
				   
				

			 	
				
				  Performance with Respect to Aircraft
				  Assets
				

			 	
				
				   
				

			 	
				
				  24
				

			 
	
				
				  Section 7.03.
				

			 	 	
				
				   
				

			 	
				
				  Lease Operating Budget; Aircraft
				  Asset Expenses Budget
				

			 	
				
				   
				

			 	
				
				  25
				

			 
	
				
				  Section 7.04.
				

			 	 	
				
				   
				

			 	
				
				  Transaction Approval
				  Requirements
				

			 	
				
				   
				

			 	
				
				  26
				

			 
	
				
				  Section 7.05.
				

			 	 	
				
				   
				

			 	
				
				  Approved Budgets and Transaction
				  Approval Requirements
				

			 	
				
				   
				

			 	
				
				  29
				

			 
	
				
				  ARTICLE VIII
				

			 	
				
				   Effectiveness
				

			 	
				
				   
				

			 	
				
				  30
				

			 
	
				
				  Section 8.01.
				

			 	 	
				
				   
				

			 	
				
				  Effectiveness
				

			 	
				
				   
				

			 	
				
				  30
				

			 
	
				
				  ARTICLE IX
				

			 	
				
				   Servicing Fees; Expenses; Taxes; Priority of Servicing
				  Fees
				

			 	
				
				   
				

			 	
				
				  30
				

			 
	
				
				  Section 9.01.
				

			 	 	
				
				   
				

			 	
				
				  Servicing Fees
				

			 	
				
				   
				

			 	
				
				  30
				

			 
	
				
				  Section 9.02.
				

			 	 	
				
				   
				

			 	
				
				  Monthly Base Fee
				

			 	
				
				   
				

			 	
				
				  30
				

			 
	
				
				  Section 9.03.
				

			 	 	
				
				   
				

			 	
				
				  Rent Fees
				

			 	
				
				   
				

			 	
				
				  30
				

			 
	
				
				  Section 9.04.
				

			 	 	
				
				   
				

			 	
				
				  Sales Fee
				

			 	
				
				   
				

			 	
				
				  31
				

			 
	
				
				  Section 9.05.
				

			 	 	
				
				   
				

			 	
				
				  Fees in Bankruptcy
				

			 	
				
				   
				

			 	
				
				  32
				

			 
	
				
				  Section 9.06.
				

			 	 	
				
				   
				

			 	
				
				  Expenses
				

			 	
				
				   
				

			 	
				
				  32
				

			 
	
				
				  Section 9.07.
				

			 	 	
				
				   
				

			 	
				
				  Taxes
				

			 	
				
				   
				

			 	
				
				  33
				

			 
	
				
				  Section 9.08.
				

			 	 	
				
				   
				

			 	
				
				  Priority of Payments to
				  Servicer
				

			 	
				
				   
				

			 	
				
				  36
				

			 
	
				
				  ARTICLE X
				

			 	
				
				   Term;
				  Right to Terminate; Resignation; Consequences of Expiration, Termination,
				  Resignation or Removal; Certain Tax Matters; Survival
				

			 	
				
				   
				

			 	
				
				  36
				

			 
	
				
				  Section 10.01.
				

			 	 	
				
				   
				

			 	
				
				  Term
				

			 	
				
				   
				

			 	
				
				  36
				

			 
	
				
				  Section 10.02.
				

			 	 	
				
				   
				

			 	
				
				  Right to Terminate
				

			 	
				
				   
				

			 	
				
				  37
				

			 
	
				
				  Section 10.03.
				

			 	 	
				
				   
				

			 	
				
				  Resignation or Removal
				

			 	
				
				   
				

			 	
				
				  41
				

			 
	
				
				  Section 10.04.
				

			 	 	
				
				   
				

			 	
				
				  Consequences of Expiration,
				  Termination, Resignation or Removal
				

			 	
				
				   
				

			 	
				
				  42
				

			 
	
				
				  Section 10.05.
				

			 	 	
				
				   
				

			 	
				
				  Survival
				

			 	
				
				   
				

			 	
				
				  44
				

			 
	
				
				  ARTICLE XI
				

			 	
				
				   Indemnification
				

			 	
				
				   
				

			 	
				
				  44
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		iii
	 

	 
		 
	 

	 
	 

	 

	 
		TABLE OF CONTENTS
	 

	 
		(continued)
	 

	 
		 
	 

	 
			
				
				   
				

			 	 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Page
				

			 
	
				
				  Section 11.01.
				

			 	 	
				
				   
				

			 	
				
				  Indemnity
				

			 	
				
				   
				

			 	
				
				  44
				

			 
	
				
				  Section 11.02.
				

			 	 	
				
				   
				

			 	
				
				  Procedures for Defense of
				  Claims
				

			 	
				
				   
				

			 	
				
				  45
				

			 
	
				
				  Section 11.03.
				

			 	 	
				
				   
				

			 	
				
				  Reimbursement of Costs
				

			 	
				
				   
				

			 	
				
				  46
				

			 
	
				
				  Section 11.04.
				

			 	 	
				
				   
				

			 	
				
				  Waiver of Certain Claims; Special
				  Indemnity
				

			 	
				
				   
				

			 	
				
				  46
				

			 
	
				
				  Section 11.06.
				

			 	 	
				
				   
				

			 	
				
				  Continuing Liability under Other
				  Agreements
				

			 	
				
				   
				

			 	
				
				  47
				

			 
	
				
				  ARTICLE XII
				

			 	
				
				   Assignment and Delegation
				

			 	
				
				   
				

			 	
				
				  47
				

			 
	
				
				  Section 12.01.
				

			 	 	
				
				   
				

			 	
				
				  Assignment and Delegation
				

			 	
				
				   
				

			 	
				
				  47
				

			 
	
				
				  ARTICLE XIII
				

			 	
				
				  Miscellaneous
				

			 	
				
				   
				

			 	
				
				  48
				

			 
	
				
				  Section 13.01.
				

			 	 	
				
				   
				

			 	
				
				  Documentary Conventions
				

			 	
				
				   
				

			 	
				
				  48
				

			 
	
				
				  Section 13.02.
				

			 	 	
				
				   
				

			 	
				
				  Power of Attorney
				

			 	
				
				   
				

			 	
				
				  48
				

			 
	
				
				  Section 13.03.
				

			 	 	
				
				   
				

			 	
				
				  Reliance
				

			 	
				
				   
				

			 	
				
				  48
				

			 
	
				
				  Section 13.04.
				

			 	 	
				
				   
				

			 	
				
				  Certain Information
				

			 	
				
				   
				

			 	
				
				  49
				

			 
	
				
				  Section 13.05.
				

			 	 	
				
				   
				

			 	
				
				  Original Aircraft
				

			 	
				
				   
				

			 	
				
				  49
				

			 
	
				
				  Section 13.07.
				

			 	 	
				
				   
				

			 	
				
				  Limited Recourse
				

			 	
				
				   
				

			 	
				
				  49
				

			 
	
				
				  Section 13.08.
				

			 	 	
				
				   
				

			 	
				
				  The Company Group Members
				

			 	
				
				   
				

			 	
				
				  50
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		iv
	 

	 
		 
	 

	 
	 

	 

	 
		TABLE OF CONTENTS
	 

	 
		 
	 

	 
			
				
				  Schedules
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Page
				

			 
	 	 	 	 
	
				
				  Schedule 2.02(a)
				

			 	
				
				   
				

			 	
				
				  Aircraft Assets Services
				

			 	
				
				   
				

			 
	
				
				  Schedule 2.02(a)(i)
				

			 	
				
				   
				

			 	
				
				  Applicable Indenture
				  Covenants
				

			 	
				
				   
				

			 
	
				
				  Schedule 2.02(a)(ii)
				

			 	
				
				   
				

			 	
				
				  Form of Officer’s
				  Certificate
				

			 	
				
				   
				

			 
	
				
				  Schedule 4.01
				

			 	
				
				   
				

			 	
				
				  Aircraft Assets
				

			 	
				
				   
				

			 
	
				
				  Schedule 4.02
				

			 	
				
				   
				

			 	
				
				  Aircraft Assets Related
				  Documents
				

			 	
				
				   
				

			 
	
				
				  Schedule 4.03
				

			 	
				
				   
				

			 	
				
				  Bank Accounts
				

			 	
				
				   
				

			 
	
				
				  Schedule 4.04(a)
				

			 	
				
				   
				

			 	
				
				  List of Persons within the Company
				  Group and Jurisdictions
				

			 	
				
				   
				

			 
	
				
				  Schedule 7.01
				

			 	
				
				   
				

			 	
				
				  Responsibilities of the Company
				  Group
				

			 	
				
				   
				

			 
	
				
				  Schedule 7.04
				

			 	
				
				   
				

			 	
				
				  Liabilities Incurred in Ordinary
				  Course of Business
				

			 	
				
				   
				

			 
	
				
				  Schedule 8.01
				

			 	
				
				   
				

			 	
				
				  Conditions to Execution 
				

			 	
				
				   
				

			 
	
				
				  Schedule 9.06(a) 
				

			 	
				
				   
				

			 	
				
				  Overhead Expenses
				

			 	
				
				   
				

			 
	
				
				  Schedule 9.06(b)
				

			 	
				
				   
				

			 	
				
				  Categories of Aircraft Asset
				  Expenses
				

			 	
				
				   
				

			 
	
				
				  Schedule 13.02
				

			 	
				
				   
				

			 	
				
				  Management Services Power of
				  Attorney of [Grantor]
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Annexes
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Annex 1
				

			 	
				
				   
				

			 	
				
				  Insurance Guidelines
				

			 	
				
				   
				

			 
	
				
				  Annex 2
				

			 	
				
				   
				

			 	
				
				  Concentration Limits
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Appendices
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Appendix A
				

			 	
				
				   
				

			 	
				
				  Construction and Usage;
				  Definitions
				

			 	
				
				   
				

			 
	
				
				  Appendix B
				

			 	
				
				   
				

			 	
				
				  Form of Guarantee
				

			 	
				
				   
				

			 
	
				
				  Appendix C
				

			 	
				
				   
				

			 	
				
				  Notices
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Exhibits
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Exhibit A
				

			 	
				
				   
				

			 	
				
				  Monthly Report Form for the
				  Company
				

			 	
				
				   
				

			 
	
				
				  Exhibit B
				

			 	
				
				   
				

			 	
				
				  Quarterly Report Form for the
				  Company
				

			 	
				
				   
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		v
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
		 
	 

	 
		SERVICING AGREEMENT dated as of
		[           ] [
		  ], 2007, among BABCOCK & BROWN AIRCRAFT MANAGEMENT LLC, , a
		Delaware limited liability company (“BBAM(US)”),
		BABCOCK & BROWN AIRCRAFT MANAGEMENT (EUROPE) LIMITED, a company
		incorporated under the laws of Ireland (“BBAM(Ireland)” and, together with BBAM(US), the
		“Servicer”), BABCOCK & BROWN AIR FUNDING I LIMITED, a
		limited liability company incorporated under the laws of Bermuda and having its
		principal place of business at West Pier, Dun Loaghaire, County Dublin, Ireland
		(the “Company”), and AMBAC ASSURANCE CORPORATION, a Wisconsin stock
		insurance company (the “Policy
		Provider”). For the consideration
		set forth herein and other good and valuable consideration, the receipt of
		which is hereby acknowledged, the Servicer, the Company and the Policy Provider
		agree as follows:
	 

	 
		ARTICLE I
	 

	 
		Definitions
	 

	 
		Section 1.01. Definitions.
		Unless otherwise defined herein, all capitalized terms used but not defined
		herein have the meanings assigned to such terms in Appendix A.
	 

	 
		Section 1.02. Construction and
		Usage. The conventions of construction
		and usage set forth in Appendix A are incorporated by reference herein.
	 

	 
		ARTICLE II
	 

	 
		 
	 

	 
		Appointment; Services
	 

	 
		Section 2.01. Appointment.
		(a) The Company appoints the Servicer as the exclusive provider of the
		Services (as defined in Section 2.02(a)) to (1) the Company,
		(2) Subsidiaries of the Company and (3) Affiliates of the Company in which
		the Company or any of its Subsidiaries has a direct or indirect ownership
		interest (collectively, the “Company Group”, and which term, for purposes of clarification,
		does not include Affiliates of the Company which are not direct or indirect
		Subsidiaries of the Company) in respect of the Aircraft Assets on the terms and
		subject to the conditions set forth in this Agreement. In furtherance of the
		foregoing, the parties hereto acknowledge and agree that, notwithstanding any
		other provision of this Agreement, without the consent of the Servicer, the
		Company shall not, and shall not permit any Person within the Company Group or
		any agent of any thereof, including the Administrative Agent (if not a
		Servicer) or the Cash Manager, to, contact directly or otherwise have any
		direct dealings with any Lessee or any relevant third party with respect to any
		Aircraft Asset (which, as provided in the definition of “Aircraft
		Assets”, the parties understand shall not include any Aircraft Asset (x)
		that shall have ceased to be an Aircraft Asset in accordance with the
		provisions of Sections 2.04(b) or 3.02(d), but shall include any former
		Aircraft Asset that shall have become an Aircraft Asset pursuant to Section
		6.07 of the Servicing Agreement or (y) in respect of which the obligation of
		the Servicer to provide Services shall have been terminated in accordance with
		Article X) (such contact or other direct dealing, a “Lessee
		Contact”) to the extent that such
		Lessee Contact constitutes, or involves taking any action that constitutes, the
		provision or performance of any Services (to such extent, a
		“Restricted Lessee
		Contact”). Notwithstanding the
		foregoing, in the event that the Company or any other member of the Company
		Group or, in the case of clause (iv) or (v) below only, Babcock & Brown Air
		Limited, reasonably believes that it shall be necessary or, in the case of
		clause (iv) or (v) below only, desirable, for there to be a Restricted Lessee
		Contact under circumstances in which one of the following clauses is
		applicable:
	 

	 
		(i) during the period (x) commencing on the
		occurrence of an Event of Default under Section 4.01 of the Indenture in
		respect of the payment of interest on any Note (as defined in the Indenture)
		due to an insufficiency of funds in the Collection Account on the relevant
		date, which Event of Default (1) shall have occurred on a date on which no
		amount is
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		available for drawing under any Eligible
		Credit Facility (as defined in the Indenture) in respect thereof and (2) shall
		have continued unremedied for 60 days after the date of the occurrence of such
		Event of Default and (y) ending after such date upon the remedying of such
		Event of Default;
	 

	 
		(ii) following the occurrence and during the
		continuance of an Event of Default (other than one referred to in clause (i) of
		this Section 2.01(a)) under the Indenture and, other than in respect of an
		Event of Default under Sections 4.01(e) or 4.01(f) of the Indenture, the
		issuance of a Default Notice (pursuant to which the Outstanding Principal
		Balance of the Notes and all accrued and unpaid interest thereon shall become
		due and payable) in accordance with the terms of the Indenture, and
		provided that at the time of such Event of Default at least 15%
		of the number of Aircraft Assets shall not be subject to Leases and each such
		Aircraft Asset shall have been off-lease and reasonably available for re-lease
		(which, for purposes of clarification, shall mean that such Aircraft Asset
		shall be in the possession or under the unfettered control of the Servicer,
		together with the related Aircraft Documents, shall be free of any legal
		prohibition on the re-leasing thereof, shall be free of Liens which would
		economically restrict such re-leasing (other than Liens, if any, created
		pursuant to the “Related Documents” as defined in the Indenture or
		created by or at the instruction of the Servicer) and shall be in a condition
		which should be reasonably acceptable to a potential lessee) during the
		three-month period ending on the date of such Event of Default;
	 

	 
		(iii) in respect of any claim for
		indemnification made by the Servicer under this Agreement in respect of a Loss
		incurred by the Servicer related to a Lessee;
	 

	 
		(iv) to discharge the Company’s, or
		Babcock & Brown Air Limited’s, or any of their officer’s or
		director’s as the case may be, obligations under Applicable Law (including
		under United States’ securities laws and under United States and European
		“know your customer” laws) including any requirement to obtain
		information, to file any report with any governmental authority, to fulfill
		their fiduciary duties or other obligations under Applicable Laws or to respond
		to any court order or to prosecute or defend any suit;
	 

	 
		(v) to respond to requests from the
		Company’s or Babcock & Brown Air Limited’s , as the case may be,
		auditors reasonably related to the filing of any tax return or the conduct of
		any audit of the Company or Babcock & Brown Air Limited and/or their
		Subsidiaries;
	 

	 
		(vi) to enable the Company to discharge its
		obligations under Article VII;
	 

	 
		(vii) to enable the Cash Manager to monitor
		the Servicer’s performance under this Agreement in accordance with the
		express terms of the Cash Management Agreement;
	 

	 
		(viii) to enable the Company to perform its
		express obligations under the Indenture and Security Trust Agreement including,
		without limitation, the Company’s obligations under Sections 5.02 and 5.03
		of the Indenture and Sections 2.06 and 3.01 of the Security Trust Agreement;
		or
	 

	 
		(ix) the Servicer’s material failure to
		perform a Service which involves a Lessee and necessitates a Lessee Contact,
		which material failure continues unremedied for 30 days after the
		Servicer’s receipt of written notice of such material failure from the
		Company (a copy of which shall be provided by the Company to the Policy
		Provider) or the Policy Provider (a copy of which shall be provided by the
		Servicer to the Company) and which if left unremedied would have a Material
		Adverse Effect on the Company Group taken as a whole;
	 

	 
		 
	 

	 
		 
	 

	 
		2
	 

	 
		 
	 

	 
	 

	 

	 
		then the Company or another Person within
		the Company Group, or in the case of clause (iv) or (v) above, Babcock &
		Brown Air Limited, shall deliver a written notice to the Servicer setting forth
		in reasonable detail the reasons for such Restricted Lessee Contact (including
		which of the foregoing clauses (i) through (ix) is applicable thereto) and the
		specifics of such Restricted Lessee Contact. In the case of clauses (i) and
		(ii) and (iv) through (viii) above, after receipt of such notice, the Servicer
		shall promptly notify the Company whether the Servicer will itself make such
		Restricted Lessee Contact, or whether a Person within the Company Group or
		agent of any thereof, including the Administrative Agent or the Cash Manager,
		should make such Restricted Lessee Contact. In the case of clauses (iii) and
		(ix) above, after delivering such notice to the Servicer, any Person within the
		Company Group shall be permitted to make such Restricted Lessee Contact
		directly itself or through any agent, including the Administrative Agent or the
		Cash Manager. In making any Restricted Lessee Contact, the Company shall not,
		and shall not permit any Person within the Company Group or any agent of any
		thereof, including the Administrative Agent or the Cash Manager, to interfere
		with the Servicer’s performance of any Services. For purposes of
		clarification, the parties agree that the Company or any agent thereof,
		including the Administrative Agent or the Cash Manager, may contact a Lessee
		for the purpose of purchasing from such Lessee Aircraft that are not Aircraft
		Assets hereunder, and such contact shall not be considered a Restricted Lessee
		Contact, so long as in no event shall the Company or any agent thereof,
		including the Administrative Agent or the Cash Manager, interfere with the
		Servicer’s performance of any Services.
	 

	 
		(b) The Servicer hereby accepts its
		appointment pursuant to the first sentence of Section 2.01(a) and agrees to
		perform the Services on the terms and subject to the conditions set forth in
		this Agreement.
	 

	 
		Section 2.02. Aircraft Asset
		Services. (a) The Services to be
		provided by the Servicer in respect of the Aircraft Assets are as set forth in
		Schedule 2.02(a) (the “Services”),
		the provisions of which Schedule 2.02(a) are hereby incorporated herein by
		reference.
	 

	 
		(b) The Company has advised the Servicer
		that each Person within the Company Group has appointed the Company to act as
		its representative with respect to any matter in respect of which the Company
		or any other Person within the Company Group is required or permitted to take
		any action pursuant to the terms of this Agreement. Accordingly, in connection
		with the performance of the Services, the Servicer shall in all cases be
		entitled to rely on the instructions (or other actions) of the Company as
		representative of each Person within the Company Group. The Servicer shall not
		be liable to any Person within the Company Group or any other Person for any
		act taken or omission to act in accordance with such instructions (or other
		actions), except to the extent otherwise provided in Section 3.03 and Article
		XI. The Servicer shall in all cases be entitled to rely upon the instructions
		(or other actions) of the Company and upon notices, reports or other
		communications (whether written or oral) made by any Lessee or any other Person
		(other than any Affiliate of the Servicer) in or concerning any Aircraft
		Assets, Aircraft Assets Related Document or any document in connection
		therewith and shall not be responsible for the accuracy or completeness of any
		such notices, reports or other communications.
	 

	 
		(c) The Company has advised the Servicer
		that it has appointed the Administrative Agent and the Cash Manager, on a
		revocable basis, to, among other things, act on its behalf in connection with
		any actions required or permitted to be taken by the Company on its own behalf
		or on behalf of any other Person within the Company Group (including as
		provided in Section 2.02(b)) pursuant to the terms of this Agreement.
		Accordingly, in connection with the performance of the Services, unless earlier
		notified in writing by the Company that the Administrative Agent’s or Cash
		Manager’s appointment to act on behalf of the Company has been revoked or
		terminated, or by the Security Trustee that all of the Company Group’s
		rights hereunder shall be exercisable by the Security Trustee as provided in
		Section 12.01, the Servicer shall in all cases be entitled to rely on the
		instructions (or other actions) of the Administrative Agent and of the Cash
		Manager. The Servicer hereby acknowledges and consents to the appointment of
		Babcock & Brown Air Management Co Limited as the initial Administrative
		Agent and to
	 

	 
		 
	 

	 
		 
	 

	 
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		Deutsche Bank Trust Company Americas as
		initial Cash Manager. The appointment of the Administrative Agent and of the
		Cash Manager to act on behalf of the Company shall in no way limit or otherwise
		derogate from the Servicer’s right to rely on the instructions (or other
		actions) of the Company as set forth in Section 2.02(b). Without limiting the
		foregoing, until such time as the Servicer has been notified in writing by the
		Company acting through its Board of Directors that the Administrative
		Agent’s or the Cash Manager’s, as the case may be, appointment has
		been revoked or terminated, or by the Security Trustee that all of the Company
		Group’s rights hereunder shall be exercisable by the Security Trustee as
		provided in Section 12.01, in all circumstances requiring the direction,
		consent or approval of, or the delivery of any notices or other communications
		to, the Company hereunder, the Servicer shall only be required to seek the
		direction, consent or approval of, or deliver any such notices or other
		communications to, the Administrative Agent or the Cash Manager, as the case
		may be, unless otherwise notified by the Board of Directors of the Company. The
		Servicer shall not be liable to any Person within the Company Group or any
		other Person for any act taken or omission to act in accordance with the
		instructions (or other actions) of the Administrative Agent or the Cash
		Manager, as the case may be, except to the extent otherwise provided in Section
		3.03 and Article XI. The Company agrees with the Servicer that the
		Administrative Agency Agreement and the Cash Management Agreement shall not be
		amended by the parties thereto in any manner that may, directly or indirectly,
		affect the Servicer’s rights, obligations or liabilities (or potential
		liabilities) under this Agreement or with respect to the Administrative Agency
		Agreement or the Cash Management Agreement or otherwise without the
		Servicer’s prior written consent.
	 

	 
		(d) Except as otherwise provided in Sections
		2.04(b), 3.02(c), 3.02(d) and 10.04, the Company agrees not to (and not to
		permit any other Person within the Company Group to) appoint any third party
		service provider (whether an Affiliate or otherwise) with respect to any
		Aircraft Asset without the prior written consent of the Servicer;
		provided that the Servicer’s prior written consent is not
		required with respect to the appointment by any Person within the Company Group
		of any legal, accounting, insurance, valuation or other similar service
		providers to perform services not included within the Services.
	 

	 
		(e) The Servicer shall in all cases be
		entitled to rely on the instructions (or other actions) of any Person that the
		Servicer reasonably believes to be authorized to act on behalf of the Company
		(or any other Person within the Company Group) or, unless otherwise notified in
		writing by the Board of Directors of the Company, the Administrative Agent or
		the Cash Manager and shall not be liable to any Person within the Company Group
		for any act taken or omission to act in accordance with such instructions (or
		other actions), except to the extent otherwise provided in Section 3.03 and
		Article XI.
	 

	 
		(f) Notwithstanding anything contained in
		this Agreement to the contrary, the Servicer shall not be required to perform
		any Service (or any other service) with respect to any Aircraft Asset unless
		and until a true and complete copy of all Aircraft Assets Related Documents has
		been delivered to the Servicer or other written notice thereof has been
		provided to the Servicer. Without limiting the foregoing, the Servicer
		acknowledges that, in connection with its provision of services with respect to
		the Original Aircraft, it is in possession of various Aircraft Assets Related
		Documents that were received by the Servicer prior to the date hereof.
	 

	 
		(g) The Company agrees not to (and not to
		permit any other Person within the Company Group to) enter into any agency,
		finders’ or brokerage agreements (whether with an Affiliate or otherwise)
		relating to the procurement of lessees or purchasers for the Aircraft Assets
		(or agreements similar thereto) without the prior written consent of the
		Servicer.
	 

	 
		Section 2.03. [Reserved]
	 

	 
		 
	 

	 
		 
	 

	 
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		Section 2.04. Compliance with
		Applicable Laws .
		(a) Notwithstanding anything to the contrary in this Agreement, the
		Servicer shall not be obligated to take or refrain from taking any action at
		any time that the Servicer believes, in good faith, is reasonably likely to (i)
		violate any Applicable Law with respect to the Servicer or its Affiliates or
		(ii) lead to an investigation by any Governmental Authority, directly or
		indirectly, of or relating to the Servicer, any of its Affiliates or the
		Services.
	 

	 
		(b) If pursuant to paragraph (a) above, the
		Servicer shall have determined not to take any action with respect to any
		transaction or potential transaction (whether or not any such transaction or a
		similar transaction has previously been entered into) relating to any Aircraft
		Asset and as a consequence thereof any Person within the Company Group shall be
		denied the opportunity to participate in any transaction or potential
		transaction in which it would otherwise be able to participate in accordance
		with Applicable Law, then, notwithstanding the provisions of Section 2.01, the
		Servicer, on behalf of any such Person within the Company Group and at the
		Servicer’s expense, may enter into, or engage an Independent
		Representative to arrange on behalf of such Person within the Company Group,
		such transaction or potential transaction with respect to such Aircraft Asset;
		provided that such Person within the Company Group may not enter
		into any such transaction or potential transaction if at or about the same time
		a substantially similar transaction (with at least as favorable or the same
		economic terms) could be arranged by the Servicer with respect to such Aircraft
		Asset in a manner that is not reasonably likely to lead to an investigation by
		any Governmental Authority, directly or indirectly, of or relating to the
		Servicer, any of its Affiliates or the Services.
	 

	 
		(c) Notwithstanding anything to the contrary
		set forth in paragraph (b) above, no Person within the Company Group shall
		be entitled to enter into, or engage any other Person to arrange on its behalf,
		any transaction or potential transaction with respect to any Aircraft Asset if
		the Servicer shall have made a determination regarding that transaction or
		potential transaction pursuant to paragraph (a) above because it reasonably
		believed that a party to such transaction or potential transaction is an OFAC
		Designated Person or that such transaction or potential transaction was
		reasonably likely to violate the United States Foreign Corrupt Practices Act
		(or any similar or successor statute), any of the Anti-Terrorism laws or any
		similar or successor statutes or orders applicable to entities organized under
		the laws of the United States (or any state or political subdivision thereof)
		or applicable to any Person within the Company Group or otherwise applicable to
		such transaction or potential transaction.
	 

	 
		Section 2.05. Limitations.
		(a) Notwithstanding any other provision of this Agreement which could be
		construed to the contrary, neither the Servicer nor any of its Affiliates shall
		assume any Indebtedness of any Person within the Company Group or of Babcock
		& Brown Air Limited or any of its other Affiliates (whether consisting of
		the Notes, under the Indenture or otherwise) nor shall any provision of this
		Agreement or any other Operative Agreement be construed so as to imply that the
		parties intended any such assumption.
	 

	 
		(b) In addition to Section 2.04, the
		Servicer shall not, and shall not be obligated to, act in a manner inconsistent
		with the rights, obligations or undertakings of the “Lessor” under
		any Lease, the “seller” under a sale contract or any other Person
		party to any other contract for the benefit of any Person in the Company Group
		or otherwise in any manner that is illegal or prohibited by Applicable Law or
		any applicable contract.
	 

	 
		(c) Notwithstanding any other provision of
		this Agreement, the Servicer shall not be obligated either initially or on a
		continuing basis to provide any Person within the Company Group or any of its
		Representatives or Babcock & Brown Air Limited or any of its other
		Affiliates any confidential or proprietary information regarding the
		Servicer’s or any of its Affiliates’ business or the business or
		finances of any Person, other than information regarding any Person within the
		Company Group, whose assets it manages from time to time.
	 

	 
		 
	 

	 
		 
	 

	 
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		(d) The Servicer shall not be liable or
		accountable for (i) the failure by a Lessee, any buyer or any other Person to
		perform any of its obligations under any Lease, sale contract or any other
		contract including the payment of amounts payable under any Lease or any other
		contract or (ii) the accuracy or completeness of any notices, reports or other
		communications (whether written or oral) made by any Lessee, any buyer or any
		Person other than the Servicer in or concerning any Lease or any other contract
		or any document in connection therewith and shall be entitled to rely upon all
		such notices, reports and communications except to the extent that the Servicer
		has actual notice of any matter to the contrary or to the extent that such
		notice, report or communication contains a manifest error.
	 

	 
		(e) The Servicer may rely on any Adviser,
		Broker, law firm or other professional adviser appointed by the Servicer or the
		Company and shall not be liable for any claim by any Person within the Company
		Group or any other Person to the extent that it was acting in good faith upon
		the advice of such Adviser, Broker, law firm or other professional
		adviser.
	 

	 
		(f) The relationship between the Servicer
		and the Company is an independent agency relationship, however, except in
		relation to any money erroneously received by the Servicer or any of its
		Affiliates into any of the Servicer’s or any of its Affiliates’ bank
		accounts on behalf of any Person within the Company Group, which the Servicer
		will hold in trust for such Person and deposit into the Collection Account as
		soon as reasonably practicable, neither the Servicer nor any of its
		Representatives shall be under any fiduciary duty or other implied obligation
		or duty to any Person within the Company Group or to Babcock & Brown Air
		Limited or any Affiliate of any such Person or any holder of any equity or debt
		security issued by or lender to any Person within the Company Group or by
		Babcock & Brown Air Limited or any of its Affiliates, or to any Lessee, the
		Administrative Agent, Cash Manager, the Policy Provider, or any other Person
		arising out of this Agreement; it being agreed that the rights and obligations
		of the parties hereto shall only be those expressly provided for in this
		Agreement.
	 

	 
		(g) Without prejudice to the Standard of
		Care, the Servicer shall not be imputed with the knowledge of any of its
		employees other than its managers, directors, officers and those employees
		involved in the performance of the Services relevant to such knowledge
		responsible for the day-to-day administration of this Agreement. The Servicer
		shall be deemed to have actual notice of any matter only upon the receipt of
		written notice describing any such matter in reasonable detail or to the extent
		that one of the foregoing Persons has actual knowledge of any such matter or
		which one of such Persons ought to have known if the Servicer had acted in
		accordance with the Standard of Care.
	 

	 
		(h) The Servicer shall not be obligated to
		assume, or engage in activities which could reasonably be expected to subject
		the Servicer to, any liability as a related company or shadow director of any
		Person within the Company Group or under any similar legal concept. The Company
		and each other party hereto understands, acknowledges and agrees that the
		intent of the parties hereunder is that the Servicer will not be subject to any
		obligations or liabilities whatsoever other than as and to the extent that any
		obligations or liabilities arise pursuant to the express terms of this
		Agreement.
	 

	 
		ARTICLE III
	 

	 
		Standard of Care; Conflicts of Interest;
		Standard of Liability
	 

	 
		Section 3.01. Standard of
		Care. Subject to the provisions of this
		Agreement and the Indenture, the Servicer shall use reasonable care and
		diligence at all times in the performance of the Services consistent with (i)
		the customary commercial practice of major international aircraft lessors in
		the management, servicing and marketing of commercial jet aircraft and related
		assets and (ii) no less reasonable care and diligence as the Servicer would use
		in providing the Services with respect to other aircraft that are owned or
		managed by the Servicer (the “Standard of Care”).
	 

	 
		 
	 

	 
		 
	 

	 
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		Section 3.02. Conflicts of
		Interest. (a) The Company, Policy
		Provider and each other party hereto acknowledges and agrees that (i) in
		addition to managing the Aircraft Assets under this Agreement, the Servicer may
		manage, and shall be entitled to manage, from time to time the separate assets
		and businesses of (r) the U.S. and oversees investors or vehicles for which
		they manage aircraft as of the date hereof , (s) Babcock & Brown Air
		Limited and its Affiliates, (t) the Servicer and its Affiliates, and (u) other
		third parties (the assets of the parties described in clauses (r), (s),
		(t) and (u) are collectively hereinafter referred to as the
		“Other Assets”); (ii) in the course of conducting such
		activities, the Servicer may from time to time have conflicts of interest in
		performing its duties on behalf of the various entities to whom it provides
		management services and with respect to the various assets in respect of which
		it provides management services; and (iii) Policy Provider, Babcock & Brown
		Air Limited and the board of directors of the Company have approved the
		transactions contemplated by this Agreement and the other Operative Agreements
		and desire that such transactions be consummated and in giving such approval
		Policy Provider, Babcock & Brown Air Limited and the board of directors of
		the Company have expressly recognized that such conflicts of interest may arise
		and that when such conflicts of interest arise the Servicer shall perform the
		Services hereunder in accordance with the Standard of Care and, to the extent
		applicable, the Conflicts Standard.
	 

	 
		(b) If conflicts of interest arise regarding
		the management of any Aircraft Asset, on the one hand, and any Other Asset, on
		the other hand, the Servicer shall perform the Services in good faith and,
		without prejudice to the generality of the foregoing, to the extent such
		Aircraft Asset and such Other Asset are substantially similar in terms of
		objectively identifiable characteristics relevant for purposes of the
		particular Services to be performed, the Servicer shall not discriminate
		between such Aircraft Asset and such Other Asset, respectively, on an
		unreasonable basis (the standard set forth in this Section 3.02(b) shall be
		referred to collectively as the “Conflicts Standard”). The Servicer shall provide notice to the
		Company and the Policy Provider of any actual material conflict of interest
		known to it regarding the management of any Aircraft, on the one hand, and any
		Other Asset, on the other hand.
	 

	 
		(c) Notwithstanding any provision herein to
		the contrary, if, in connection with the provision of Services with respect to
		an Aircraft Asset or Lease, a conflict of interest shall exist that, in the
		good faith opinion of the Servicer, requires an arm’s-length negotiation
		between the Servicer or an Affiliate of the Servicer, on the one hand, and any
		Person within the Company Group, on the other hand, and the Servicer believes
		it would not be appropriate for the Servicer to act on behalf of such Person
		within the Company Group in connection with such negotiation (whether or not
		the Servicer shall propose to act on behalf of itself or one of its Affiliates
		in connection with such negotiation), then the Servicer shall withdraw from
		acting as Servicer with respect to such Aircraft Asset or Lease in connection
		with the negotiation of the issue giving rise to such conflict of interest. The
		Servicer shall provide written notice to the Company not more than ten Business
		Days after it has made a determination that an arm’s-length negotiation is
		necessary with respect to such conflict of interest and it would not be
		appropriate for the Servicer to act on behalf of such Person within the Company
		Group in connection with such negotiation. Not more than seven Business Days
		after receipt of such notice from the Servicer, the Servicer shall appoint an
		Independent Representative to act on behalf of such Person within the Company
		Group to which such Aircraft Asset or Lease and conflict of interest relates.
		“Independent
		Representative” shall mean any
		Person that engages in the business of an operating lessor or the manger or
		servicer of a portfolio of at least 75 commercial jet aircraft. Any such
		Independent Representative so appointed shall act on behalf of the relevant
		Person within the Company Group for purposes of such negotiation relating to
		such Aircraft Asset or Lease and the Servicer shall have no responsibility or
		liability to any Person within the Company Group with respect to such
		negotiation relating to such Aircraft Asset or Lease. In any event, if an
		Independent Representative is acting on behalf on any Person within the Company
		Group, the Servicer shall be entitled to act on behalf of itself or its
		Affiliate with respect to such negotiation. During the period of such
		Independent Representative’s appointment, the Servicer shall continue to
		perform its ordinary functions as Servicer with respect to such Aircraft Asset
		or Lease to the extent that the performance of the Servicer does not directly
		or indirectly affect the negotiation of the issue giving
	 

	 
		 
	 

	 
		 
	 

	 
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		rise to such conflict of interest. To the
		extent, if any, the Servicer cannot continue to perform any Services with
		respect to such Aircraft Asset or Lease during such negotiation, such Services
		shall be performed by the Independent Representative or any other designee of
		such Person within the Company Group. Except as provided in
		Section 3.02(d) below, any such Aircraft Asset or any Aircraft Assets
		subject to any such Lease shall continue to be included as an Aircraft Asset
		for purposes of calculating the Servicing Fees pursuant to Article IX during
		the appointment of an Independent Representative and the fees, if any, of any
		such Independent Representative shall be paid by the Servicer.
	 

	 
		(d) If (i) the Servicer reasonably
		determines that directions given by any Person to the Servicer in accordance
		with this Agreement or Services required to be performed under this Agreement
		(other than any Service involving an arm’s-length negotiation between the
		Servicer or an Affiliate of the Servicer, on the one hand, and any Person
		within the Company Group, on the other hand) would, in either case, if carried
		out, place the Servicer in a conflict of interest with respect to which, in the
		Servicer’s good faith opinion, the Servicer cannot continue to perform its
		obligations hereunder within the requirements set forth in Section 3.02 with
		respect to all Aircraft Assets or any affected Aircraft Assets, as the case may
		be, or (ii) there is a conflict of interest of the type described in
		Section 3.02(c) above which results in the Independent Representative being
		required to perform substantially all of the Services described in
		Sections 1 through 3 of Schedule 2.02(a) of this Agreement on a
		long-term basis in respect of an affected Aircraft Asset, the Servicer shall
		give the Company (and the Company shall thereupon give the Policy Provider)
		prompt written notice thereof and thereafter the Servicer may resign as
		Servicer with respect to the affected Aircraft Assets or Aircraft Asset, or the
		Company or the Policy Provider may elect to remove the Servicer with regard to
		the affected Aircraft Assets or Aircraft Asset, as provided in Article X, with
		the result that each affected Aircraft Asset shall cease to be an Aircraft
		Asset hereunder.
	 

	 
		Section 3.03. Standard of
		Liability; Servicer Indemnification.
	 

	 
		(a) Notwithstanding any other provision of
		this Agreement which could be construed to the contrary, the Servicer shall not
		be liable or accountable to any Person including, without limitation, the
		Company or any Subsidiary or Affiliate of the Company (other than the Company
		to the extent set forth in the next following sentence), Policy Provider or
		Babcock & Brown Air Limited or any Affiliate thereof or any other Person,
		under any circumstances for any Losses directly or indirectly arising out of,
		in connection with or related to, the management by the Servicer of Aircraft
		Assets or Other Assets. The Servicer shall not be liable or accountable to the
		Company or any other Person in the Company Group, Babcock & Brown Air
		Limited or any Affiliate thereof, Policy Provider or any other Person under any
		circumstances for, and the Company shall indemnify the Servicer on an After-Tax
		Basis in accordance with the provisions of Article XI for, any Losses, directly
		or indirectly, arising out of, in connection with or related to, the management
		by the Servicer of Aircraft Assets or Other Assets, unless such Losses are
		finally adjudicated to have resulted directly from (x) the Servicer’s or
		its director’s, officer’s or employee’s (or any Servicer
		Delegate’s) fraud, deceit, gross negligence or willful misconduct in
		respect of its obligation to apply the Standard of Care or the Conflicts
		Standard in respect of its performance of the Services or (y) any
		representation or warranty by the Servicer to such Person set forth in Sections
		4.10 or 4.11 having proven to be false on the date hereof (the liability
		standards set forth in this Section 3.03, the “Standard of Liability”). For the avoidance of doubt, but without
		limiting the provisions of Section 9.07, the provisions of this
		Section 3.03 shall not give rise to any obligation on the part of the
		Servicer to indemnify the Company for any Taxes. Subject only to the Standard
		of Liability, the Servicer shall not be directly or indirectly liable or
		accountable to the Company or any Person in the Company Group or Babcock &
		Brown Air Limited or any of its other Affiliates or the Policy Provider under
		any circumstances for any Losses directly or indirectly arising out of, in
		connection with or related to, (i) the direct or indirect transfer of any
		Aircraft Assets or Leases related thereto or any other assets to any Person
		within or outside the Company Group, (ii) the adequacy of the terms of any
		Lease or other contract relating to any Aircraft Assets, (iii) the reliability
		or creditworthiness of any Lessee or other party to a contract with respect to
		its obligations under any Lease or any other contract relating to the
		Aircraft
	 

	 
		 
	 

	 
		 
	 

	 
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		Assets, (iv) the adequacy of the lease
		payments derived from the Leases related to any Aircraft Assets to support
		various obligations of the Persons within the Company Group or of Babcock &
		Brown Air Limited, (v) the adequacy of any utilization, supplemental or
		additional rents or other payments or security deposits relating to the
		Aircraft Assets, (vi) the terms and conditions of the Notes or other securities
		or instruments being offered and sold by the Company or any of its Affiliates
		as of the Closing Date (or thereafter) or pursuant to any Offering, (vii) the
		ability of the Company or any other Person to comply with the terms and
		conditions of such Notes or such securities or other instruments and (viii) the
		structuring and implementation of any aspect of the various transactions
		contemplated by any Offering, including the Final Prospectus.
	 

	 
		(b) The Servicer shall indemnify the Company
		on an After-Tax Basis for, any Losses of the Company, directly or indirectly,
		arising out of, in connection with or related to the Servicer’s or its
		director’s, officer’s or employee’s (or any Servicer
		Delegate’s) finally adjudicated fraud, deceit, gross negligence or willful
		misconduct in respect of its obligation to apply the Standard of Care or the
		Conflicts Standard in respect of its performance of the Services or any
		representation or warranty by the Servicer to such Person set forth in Sections
		4.10 or 4.11 having proven to be false on the date hereof. The parties agree
		that under no circumstances shall the foregoing provisions provide for or
		permit any duplicative payment to or recovery by the Company.
	 

	 
		Section 3.04. Waiver of
		Implied Standard. Except as expressly
		stated above in this Article III, ALL OTHER WARRANTIES, CONDITIONS AND
		REPRESENTATIONS, EXPRESS OR IMPLIED, STATUTORY OR OTHERWISE, ARISING UNDER U.S.
		FEDERAL, DELAWARE, IRISH, AUSTRALIAN, BERMUDAN OR OTHER LAW IN RELATION TO THE
		SKILL, CARE, DILIGENCE OR OTHERWISE IN RESPECT OF ANY SERVICE TO BE PERFORMED
		HEREUNDER OR TO THE QUALITY OR FITNESS FOR ANY PARTICULAR PURPOSE OR
		MERCHANTABILITY OF ANY GOODS ARE HEREBY EXCLUDED AND WAIVED BY THE COMPANY AND
		EACH OTHER PERSON IN THE COMPANY GROUP, THE POLICY PROVIDER, BABCOCK &
		BROWN AIR LIMITED, THE ADMINISTRATIVE AGENT, THE CASH MANAGER AND THE SERVICER
		SHALL NOT BE LIABLE TO THE COMPANY OR ANY OTHER PERSON WITHIN THE COMPANY
		GROUP, THE POLICY PROVIDER, BABCOCK & BROWN AIR LIMITED, THE ADMINISTRATIVE
		AGENT, THE CASH MANAGER OR ANY OTHER PERSON IN CONTRACT, TORT OR OTHERWISE
		UNDER U.S. FEDERAL, DELAWARE, IRISH, AUSTRALIAN, BERMUDAN OR OTHER LAW FOR ANY
		LOSS, DAMAGE, EXPENSE OR INJURY OF ANY KIND WHATSOEVER, CONSEQUENTIAL OR
		OTHERWISE, ARISING OUT OF OR IN CONNECTION WITH EITHER THE SERVICES TO BE
		SUPPLIED PURSUANT TO THIS AGREEMENT OR ANY GOODS TO BE PROVIDED OR SOLD IN
		CONJUNCTION WITH SUCH SERVICES OR ANY DEFECT IN EITHER SUCH GOODS OR FROM ANY
		OTHER CAUSE. Nothing in this Article III should be taken as in any way limiting
		or excluding any liability which the Servicer may have to the Company under
		Section 2 of the Irish Liability for Defective Products Act, 1991.
	 

	 
		THE CONTRACTUAL RIGHTS, IF ANY, WHICH THE
		COMPANY GROUP ENJOYS BY VIRTUE OF SECTIONS 12, 13, 14 AND 15 OF THE SALE OF
		GOODS ACT, 1893 (AS AMENDED) AND SECTION 39 OF THE SALE OF GOODS AND SUPPLY OF
		SERVICES ACT, 1980 ARE IN NO WAY PREJUDICED BY ANYTHING CONTAINED IN THIS
		AGREEMENT SAVE TO THE EXTENT PERMITTED BY LAW.
	 

	 
		ARTICLE IV
	 

	 
		Representations and Warranties

	 

	 
		The Company represents and warrants to, and
		agrees with, the Servicer as follows:
	 

	 
		 
	 

	 
		 
	 

	 
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		Section 4.01. Aircraft
		Assets. Schedule 4.01 contains a
		true and complete list of all Aircraft Assets constituting Aircraft Assets as
		of the Closing Date and each Person within the Company Group, if any, that owns
		such Aircraft Assets as of the Closing Date. Except as otherwise set forth
		therein, on the Delivery of each Aircraft Asset listed in Schedule 4.01,
		each Person within the Company Group listed as an owner of an Aircraft Asset on
		such Schedule will have such title to such Aircraft Asset as was conveyed to
		such Person on its Delivery, free and clear of all Liens created by or through
		such Person.
	 

	 
		Section 4.02. Aircraft Assets
		Related Documents. (a) The
		Servicer shall not be required to perform any service provided for in or in
		connection with any Aircraft Assets Related Documents not in its possession
		(all such Aircraft Assets Related Documents listed in Schedule 4.02 being in
		its possession) or delivered to it.
	 

	 
		(b) Each Aircraft Assets Related Document is
		a legal, valid and binding agreement of the Person within the Company Group
		that is a party thereto (including by way of assignment or novation) and is
		enforceable against such Person within the Company Group that is a party
		thereto in accordance with its terms. No Person within the Company Group has
		modified, amended or waived any provision of or terminated any Aircraft Assets
		Related Document referred to in Schedule 4.02 except as disclosed
		therein.
	 

	 
		Section 4.03. Accounts and
		Cash Flow. Schedule 4.03 sets forth a
		true and complete list of all bank or other similar accounts and any other
		accounts relating to the Aircraft Assets, including wire transfer instructions,
		with respect to which any Person within the Company Group, the Security
		Trustee, the Administrative Agent, the Cash Manager or any other agent of any
		of the foregoing has authority, and Article III of the Indenture as in effect
		as of the date of this Agreement sets forth in reasonable detail a written
		description of all material arrangements and procedures relating to the flow of
		cash related to the Aircraft Assets.
	 

	 
		Section 4.04. Organization and
		Standing.
	 

	 
		(a) The Company is a limited liability
		company duly created under the laws of Bermuda, and each other Person within
		the Company Group is a corporation duly incorporated, a trust duly created or a
		limited liability company duly formed and validly existing and, if relevant, in
		good standing under the laws of the jurisdiction in which it is legally
		incorporated, created or formed, respectively, and possesses all franchises,
		licenses, permits, authorizations and approvals necessary to enable it to use
		its corporate or trust name and to own, lease or otherwise hold its properties
		and assets and to carry on its business as presently conducted and as proposed
		to be conducted except for such franchises, licenses, permits, authorizations
		and approvals the failure of which to obtain could not, individually or in the
		aggregate, have a Material Adverse Effect on the Persons within the Company
		Group, taken as a whole, or on the Servicer. Each of the Company and each other
		Person within the Company Group is in compliance in all material respects with
		all terms and conditions of such franchises, licenses, permits, authorizations
		and approvals. Schedule 4.04(a) sets forth a true and complete list of each
		Person within the Company Group and the jurisdiction in which each such Person
		within the Company Group is legally organized.
	 

	 
		(b) Each of the Company and each other
		Person within the Company Group is duly qualified to do business as a foreign
		corporation in each jurisdiction in which the nature of its business or the
		ownership, leasing or holding of its properties or assets requires
		qualification except for such jurisdictions where the failure to be so
		qualified could not, individually or in the aggregate, have a Material Adverse
		Effect on the Persons within the Company Group, taken as a whole, or on the
		Servicer.
	 

	 
		Section 4.05. Authority.
		(a)  Each of the Company and each other Person within the Company Group
		which is a party to an Operative Agreement has all requisite power and
		authority to execute each
	 

	 
		 
	 

	 
		 
	 

	 
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		Operative Agreement to which it is or will
		be a party and to consummate the transactions and to perform its obligations
		contemplated thereby. All corporate acts and other proceedings required to be
		taken by each Person within the Company Group to authorize the execution,
		delivery and performance of each Operative Agreement to which it is or will be
		a party and the consummation of the transactions and the performance of its
		obligations contemplated thereby have been or on or before the date of entering
		into the relevant Operative Agreements will have been duly and properly
		taken.
	 

	 
		(b) Each of the Operative Agreements to
		which any Person within the Company Group is or will be a party has been or
		will be duly and validly executed and delivered by such Person, as applicable,
		and each such Operative Agreement is or upon such execution and delivery will
		be a legal, valid and binding obligation of such Person, as applicable,
		enforceable against it in accordance with its terms.
	 

	 
		Section 4.06. No
		Conflicts. Neither the execution and
		delivery of any Operative Agreement to which any Person within the Company
		Group is a party nor the consummation of the transactions contemplated thereby
		nor performance by any Person within the Company Group of any of its
		obligations thereunder will (i) violate any provision of the constituent
		documents of any such Person within the Company Group, (ii) violate any
		order, writ, injunction, judgment or decree applicable to any Person within the
		Company Group or any of their respective properties or assets, (iii) violate in
		any material respect any Applicable Law or (iv) result in any conflict with,
		breach of or default (or give rise to any right of termination, cancellation or
		acceleration) under, any of the terms, conditions or provisions of any note,
		bond, mortgage, indenture, warrant or other similar instrument or any license,
		permit, material agreement or other material obligation to which any Person
		within the Company Group is a party or by which any Person within the Company
		Group or any of their respective properties or assets may be bound. No action,
		consent or approval by, or filing with, any Governmental Authority or any other
		regulatory or self regulatory body, or any other Person, is required in
		connection with the execution, delivery or performance by any Person within the
		Company Group of the Operative Agreements to which it is a party or the
		consummation by any Person within the Company Group of the transactions
		contemplated thereby.
	 

	 
		Section 4.07. Compliance with
		Applicable Laws. Each of the Company
		and each other Person within the Company Group is in compliance in all material
		respects with all Applicable Laws and any filing requirements relating
		thereto.
	 

	 
		Section 4.08. Litigation;
		Decrees. (a) Other than in the case of
		subclause (i) as may exist with respect to the Original Aircraft on the Closing
		Date, or other Aircraft Assets which in good faith are believed by the Company
		to be fully covered by insurance, there are no claims, actions, suits,
		arbitrations or other proceedings or investigations (i) pending or, to the best
		knowledge of each of the Company and each other Person within the Company
		Group, threatened, by or against or affecting the Company or any other Person
		within the Company Group, which in any case involves a potential loss exceeding
		$1,000,000 and (ii) pending, or to the best knowledge of each of the Company
		and each other Person within the Company Group, threatened, by or against or
		affecting the Company or any other Person within the Company Group, related to
		the transactions contemplated by the Operative Agreements.
	 

	 
		(b) Each of the Company and each other
		Person within the Company Group is in compliance in all material respects with
		each outstanding judgment, order or decree (other than as may exist with
		respect to the Aircraft Assets) of any Governmental Authority or arbitrator
		applicable to the Company or any other Person within the Company Group, as the
		case may be, and no such judgment, order or decree has or could have a Material
		Adverse Effect on the Company or any other Person within the Company Group, or
		on the Servicer.
	 

	 
		 
	 

	 
		 
	 

	 
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		Section 4.09. Appointments.
		(a) Each Person within the Company Group has appointed the Company, and the
		Company has accepted such appointment, to act as representative of each such
		Person with respect to any matter in respect of which the Company or any other
		Person within the Company Group is required or permitted to take any action
		pursuant to the terms of this Agreement.
	 

	 
		(b) The Company has appointed the
		Administrative Agent to act on its behalf and on behalf of each Person within
		the Company Group pursuant to the terms of the Administrative Agency Agreement,
		and, in addition to any action directed by the Board of Directors of the
		Company, the Company has appointed the Administrative Agent, on a revocable
		basis, to act on its behalf in connection with any action required or permitted
		to be taken by the Company on its own behalf or on behalf of any other Person
		within the Company Group pursuant to the terms of this Agreement.
	 

	 
		Each of BBAM(US) and BBAM(Ireland)
		represents and warrants to the Company as follows:
	 

	 
		Section 4.10. Authority.
		(a) Such Servicer is, in the case of BBAM(US) a Delaware limited liability
		company, and, in the case of BBAM(Ireland), a company duly created under the
		laws of Ireland, and, to the extent applicable in such jurisdiction, in good
		standing under the laws of its jurisdiction of organization, and possesses all
		franchises, licenses, permits, authorizations and approvals necessary under the
		laws of its jurisdiction of organization to enable it to use its corporate name
		and to own, lease or otherwise hold its properties and assets and to carry on
		its business as presently conducted and as proposed to be conducted except for
		such franchises, licenses, permits, authorizations and approvals the failure of
		which to obtain could not, individually or in the aggregate, have a Material
		Adverse Effect on the Persons within the Company Group, taken as a whole, or on
		such Servicer. Such Servicer has all requisite power and authority to execute
		each Operative Agreement to which it is or will be a party and to consummate
		the transactions and to perform its obligations contemplated thereby. All
		corporate acts and other proceedings required to be taken by such Servicer to
		authorize the execution, delivery and performance of each Operative Agreement
		to which it is or will be a party and the consummation of the transactions and
		the performance of its obligations contemplated thereby have been or on or
		before the date of entering into the relevant Operative Agreements will have
		been duly and properly taken.
	 

	 
		(b) Each of the Operative Agreements to
		which such Servicer is or will be a party has been or will be duly and validly
		executed and delivered by such Servicer, as applicable, and each such Operative
		Agreement is or upon such execution and delivery will be a legal, valid and
		binding obligation of such Servicer, enforceable against it in accordance with
		its terms.
	 

	 
		Section 4.11. No
		Conflicts. Neither the execution and
		delivery of any Operative Agreement to which such Servicer is a party nor the
		consummation of the transactions contemplated thereby nor performance by such
		Servicer of any of its obligations thereunder will (i) violate any provision of
		the constituent documents of such Servicer, (ii) violate any order, writ,
		injunction, judgment or decree applicable to such Servicer or any of its
		properties or assets, (iii) violate in any material respect any Applicable Law
		or (iv) result in any conflict with, breach of or default (or give rise to any
		right of termination, cancellation or acceleration) under, any of the terms,
		conditions or provisions of any note, bond, mortgage, indenture, warrant or
		other similar instrument or any license, permit, material agreement or other
		material obligation to which the Servicer is a party or by which such Servicer
		or any of its properties or assets may be bound. No action, consent or approval
		by, or filing with, any Governmental Authority or any other regulatory or
		self-regulatory body, or any other Person, is required in connection with the
		execution, delivery or performance by such Servicer of the Operative Agreements
		to which it is a party or the consummation by the Servicer of the transactions
		contemplated thereby.
	 

	 
		Section 4.12. Compliance with
		Applicable Laws of Its Jurisdiction of Organization . Such Servicer is in compliance in all material
		respects with all Applicable Laws of its jurisdiction of
	 

	 
		 
	 

	 
		 
	 

	 
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		organization and any filing requirements in
		such jurisdiction relating thereto necessary to perform its obligations under
		this Agreement.
	 

	 
		Section 4.13. Litigation;
		Decrees. (a) There are no claims,
		actions, suits, arbitrations or other proceedings or investigations pending, or
		to the best knowledge of such Servicer, threatened, by or against or affecting
		such Servicer related to the transactions contemplated by this
		Agreement.
	 

	 
		(b) Such Servicer is in compliance in all
		material respects with each judgment, order or decree (other than may exist
		with respect to the Aircraft Assets) of any Governmental Authority or
		arbitrator applicable to such Servicer, and no such judgment, order or decree
		has or could reasonably be expected to have a Material Adverse Effect on the
		Company or any Person within the Company Group, or on such Servicer.
	 

	 
		ARTICLE V
	 

	 
		Servicer Undertakings
	 

	 
		Section 5.01. Access.
	 

	 
		(a) The Servicer at such times as the
		Company may reasonably request shall grant, and shall cause any Servicer
		Delegate to grant, to the Persons within the Company Group and their agents
		(including the Administrative Agent and auditors), to the extent party to
		confidentiality agreements acceptable to the Servicer, access to the documents
		and other records generated by the Servicer (and in its possession) as part of
		its performance of the Services (exclusive of internal correspondence, approval
		materials, internal evaluations and similar documents or other records
		developed by the Servicer or any of its Affiliates for their own use) or by a
		Lessee and delivered to the Servicer, and related to the Aircraft Assets
		(copies of which the Company shall (at its expense) be entitled to take), to
		enable the Persons within the Company Group and Babcock & Brown Air Limited
		to monitor the performance by the Servicer under this Agreement or to otherwise
		discharge their respective obligations under Applicable Law (including
		applicable securities laws). Upon reasonable prior written notice and at
		reasonable times (in any event not more than an aggregate, with respect to the
		Company Group and Babcock & Brown Air Limited taken as a whole, of four (4)
		times per Year), the Servicer shall make one or more (such number to be
		determined by the Servicer in good faith but sole discretion) members of its
		staff available to attend (including by telephone) meetings of the board of
		directors of the Company. In addition, the Servicer will make one or more
		members of its management available to participate in additional meetings of
		such board of directors either, in the Servicer’s sole discretion, by
		participating in person or by teleconference. Any out-of-pocket expenses
		incurred by the Servicer in connection with any such attendance shall be
		reimbursed by the Company. In addition to the foregoing, the Servicer shall
		provide, subject to Section 13.04, to the Policy Provider the reports
		described in Section 9 of Schedule 2.02(a) as to be provided to the
		Policy Provider.
	 

	 
		(b) The Servicer at such times as the Policy
		Provider may reasonably request (in any event not more than an aggregate of one
		(1) time per Year prior to an Event of Default, and four (4) times per Year
		after and during the continuance of an Event of Default) shall grant, and shall
		cause any Servicer Delegate to grant, to the Policy Provider and its agents to
		the extent party to confidentiality agreements reasonably acceptable to the
		Servicer, access to the documents and other records generated by the Servicer
		(and in its possession) as part of its performance of the Services (exclusive
		of internal correspondence, approval materials, internal evaluations and
		similar documents or other records developed by the Servicer or any of its
		Affiliates for their own use) or by a Lessee and delivered to the Servicer, and
		related to the Aircraft Assets (copies of which the Policy Provider shall (at
		its expense) be entitled to take), to enable the Policy Provider and its agents
		to monitor the performance by the Servicer under this Agreement or to otherwise
		discharge the Policy Provider’s obligations under Applicable Law. 
	 

	 
		 
	 

	 
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		Prior to the occurrence of an Event of
		Default, the Policy Provider shall pay its own costs and expenses incurred
		pursuant to this Section 5.01(b). After the occurrence and during the
		continuance of an Event of Default, the Company shall promptly pay the Policy
		Provider’s out-of-pocket costs and expenses incurred pursuant to this
		Section 5.01(b) upon receipt of a written invoice therefore from the Policy
		Provider. In addition to the foregoing, the Servicer shall provide, subject to
		Section 13.04, to the Policy Provider the reports described in
		Section 9 of Schedule 2.02(a) as to be provided to the Policy
		Provider. Upon reasonable prior written notice and at reasonable times (in any
		event not more than an aggregate of one (1) time per Year prior to an Event of
		Default, and four (4) times per Year after and during the continuance of an
		Event of Default), the Servicer shall make one or more (such number to be
		determined by the Servicer in good faith but sole discretion) members of its
		staff (including one or more members of its senior management) available to
		attend (including by telephone) meetings with representatives of the Policy
		Provider.
	 

	 
		(c) In addition to the rights of the Policy
		Provider under Section 5.01(b), the Policy Provider shall have the right to
		conduct an operational review and inspection by an independent third party (the
		“Auditor”) of the reports, documents and other records
		relating to the Aircraft Assets (including any Aircraft Related Documents) and
		to meet with members of its staff (including one or more members of its senior
		management) and shall have access to the documents and other records generated
		by the Servicer (and in its possession) as part of its performance of the
		Services (exclusive of internal correspondence, approval materials, internal
		evaluations and similar documents or other records developed by the Servicer or
		any of its Affiliates for their own use) or by a Lessee and delivered to the
		Servicer, and related to the Aircraft Assets (copies of which the Policy
		Provider shall be entitled to take) to enable the Policy Provider and its
		agents to monitor the performance by the Servicer under this Agreement. The
		right of the Policy Provider set forth in the immediately preceding sentence is
		referred to herein as a “Reimbursable Audit.” The Company shall pay the out-of-pocket costs
		and expenses of the Policy Provider and the Auditor incurred pursuant to this
		Section 5.01(c) promptly upon receipt of a written invoice therefore from the
		Policy Provider; provided that
		the amount reimbursed by the Company to the Policy Provider shall not exceed
		$40,000 for each Reimbursable Audit conducted on or prior to the fifth
		anniversary of the Closing Date and $65,000 for each Reimbursable Audit
		conducted thereafter. The Policy Provider shall have the right to conduct the
		first Reimbursable Audit no earlier than the end of the eighteen-month period
		commencing on the Closing Date. Thereafter, until the fifth anniversary of the
		Closing Date, Reimbursable Audits shall occur no more frequently than 24 months
		after the previous Reimbursable Audit. After the fifth anniversary of the
		Closing Date, Reimbursable Audits shall occur no more frequently than 12 months
		following the previous Reimbursable Audit. Notwithstanding the foregoing, the
		Policy Provider shall have the right to conduct a Reimbursable Audit (i) at any
		time after the occurrence and during continuance of an Event of Default under
		the Indenture or (ii) annually during the five-year period immediately
		following the Closing Date if the Outstanding Principal Balance of the Class
		G-1 Notes has exceeded the Minimum Target Principal Balance thereof for six
		consecutive Payment Dates.
	 

	 
		Section 5.02. Compliance with
		Law. The Servicer shall, in connection
		with the performance of the Services, comply in all material respects with all
		laws, rules and regulations applicable to the Servicer.
	 

	 
		Section 5.03. Commingling. The
		Servicer shall not commingle, with its own funds, or the funds of other Persons
		for which it acts as lease servicer or manager, any funds of any Person within
		the Company Group from time to time in its possession.
	 

	 
		Section 5.04. Restrictions on
		Exercise of Certain Rights. Without
		limiting the Servicer’s rights under the Security Trust Agreement, the
		Servicer shall not take any steps for the purpose of procuring the appointment
		of an administrative receiver or the making of any administrative order or for
		instituting any bankruptcy, reorganization, arrangement, insolvency, winding
		up, liquidation, composition or any similar 
	 

	 
		 
	 

	 
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		proceeding under the laws of any
		jurisdiction with respect to any Person within the Company Group or any of the
		Aircraft Assets.
	 

	 
		Section 5.05. Coordination
		with the Company Group. The Servicer
		shall designate an individual who shall be an employee of the Servicer and who
		shall be primarily responsible for coordinating with the Company and any other
		Person within the Company Group regarding the Services, and the Servicer may
		from time to time change such designation by providing written notice to the
		Company of such change.
	 

	 
		Section 5.06. Corporate
		Formalities. The Servicer will observe
		all corporate formalities necessary to remain a legal entity separate and
		distinct from, and independent of, each member of the Company Group and will
		maintain its assets, liabilities, funds, records, books and accounts separate
		and distinct from those of each member of the Company Group.
	 

	 
		Section 5.07. Separateness
		Covenants. In connection with providing
		the Services hereunder, the Servicer shall; (i) pay its obligations in the
		ordinary course of its business as a legal entity separate from each Company
		Group Member; (ii) keep its funds separate and distinct from the funds of each
		Company Group Member; (iii) conduct its business in its own name and not in the
		name of any Company Group Member; (iv) not pay or agree to pay or become liable
		for any debt of any Company Group Member; (v) not hold itself out as a division
		of any Company Group Member or as any Company Group Member being a division of
		it; (vi) not induce any third party to rely on the creditworthiness of any
		Company Group Member in order that such third party will be induced into
		contract with the Servicer; and (vii) not enter into any agreement between the
		Servicer and any Company Group Member that is materially more favorable to
		either party than agreements the parties would have been able to enter into at
		such time on an arm’s-length basis with a non-affiliated third party (it
		being understood that the parties hereto do not intend this covenant to ratify
		any self-dealing transactions).
	 

	 
		Section 5.08. Funds Held in
		Trust. If the Servicer receives any
		money that belongs to any Company Group Member, the Cash Manager or the
		Security Trustee or is to be paid to any Company Group Member, the Cash Manager
		or the Security Trustee or into any account pursuant to the Indenture or this
		Agreement, the Servicer shall hold such money in trust for such Company Group
		Member, the Cash Manager or the Security Trustee, as the case may be, and shall
		within five Business Days after identification of the owner of such money pay
		the same into the relevant account in accordance with the terms of the
		Indenture or this Agreement without exercising any right of set-off.
	 

	 
		ARTICLE VI
	 

	 
		Undertakings of the Company
	 

	 
		Section 6.01. Cooperation. The
		Company shall, and shall cause each other Person within the Company Group and
		their respective agents (including the Administrative Agent and the Cash
		Manager) to, at all times cooperate with the Servicer to enable the Servicer to
		provide the Services, including providing the Servicer with all powers of
		attorney as may be reasonably necessary or appropriate for the Servicer to
		perform the Services.
	 

	 
		Section 6.02. No
		Representation with Respect to Third Parties. The Company agrees that as between the Servicer, on
		the one hand, and each of the Company and the other Persons within the Company
		Group and Babcock & Brown Air Limited and its Affiliates, on the other
		hand, no representation is made as to the financial condition and affairs of
		any Lessee of, or purchaser of, any Aircraft Asset or any vendor or supplier
		utilized by or any other Person party to a contract with the Servicer or any
		Person within the Company Group in connection with Servicer’s performance
		of the Services.
	 

	 
		 
	 

	 
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		Section 6.03. Related Document
		Amendments. The Company shall not take,
		and shall not permit any other Person within the Company Group or Babcock &
		Brown Air Limited or any of its Affiliates to take, any action that would
		increase in any respect the scope, nature or level of the Services to be
		provided under this Agreement without the Servicer’s express prior written
		consent, including by entering into, amending, modifying or supplementing any
		Aircraft Assets Related Document (it being understood that (i) the Servicer
		shall have no liability to any Person directly or indirectly arising out of, in
		connection with or related to, the Servicer’s failure to perform such
		increased Service prior to any such amendment, modification or supplement being
		consented to in writing by the Servicer and (ii) no Person within the Company
		Group or Babcock & Brown Air Limited or any of its Affiliates shall be
		permitted to engage another Person to perform the affected Service without the
		prior written consent of the Servicer).
	 

	 
		Section 6.04. Exclusivity.
		Except as otherwise expressly provided in Sections 2.04(b), 3.02(c) and 10.04
		of this Agreement, the Company shall not, and shall not permit any other Person
		within the Company Group or any agent of any Person thereof (including the
		Administrative Agent or the Cash Manager) or Babcock & Brown Air Limited or
		any of its Affiliates to, enter into, or cause or permit any Person (other than
		the Servicer or any Person acting for or on its behalf) to enter into on its
		behalf, (a) any transaction for the lease or sale of any Aircraft Asset in
		respect of which the Servicer is at such time performing Services or (b) any
		agreement for the performance by any Person other than the Servicer of some or
		all of the Services, in the case of (a) and (b) without the prior written
		consent of the Servicer.
	 

	 
		Section 6.05. Communications. The Company shall, and shall cause each other Person
		within the Company Group and the Administrative Agent and the Cash Manager to,
		forward promptly to the Servicer a copy (or, if such communication is oral and
		from a Lessee in respect of an Aircraft Asset or Aircraft Asset purchaser,
		notify the Servicer by prompt oral or written notice and, if oral notice,
		confirmed in writing upon request) of any written communication received from
		any Person (including any Person under any Aircraft Assets Related Document) in
		relation to any Aircraft Asset or oral communication received from a Lessee in
		respect of an Aircraft Asset or Aircraft Asset purchaser in relation to any
		Aircraft Asset.
	 

	 
		Section 6.06. Ratification.
		The Company hereby ratifies and confirms and agrees to ratify and confirm (and
		shall cause each other Person within the Company Group to do the same) (and
		shall furnish written evidence thereof upon request of the Servicer) whatever
		the Servicer does in accordance and compliance with this Agreement in the
		exercise of any of the powers or authorities conferred upon the Servicer under
		the terms of this Agreement.
	 

	 
		Section 6.07. Additional
		Aircraft Assets. If any Aircraft Asset
		shall become a Former Aircraft Asset pursuant to the provisions of Section 2.04
		and thereafter the condition which caused such Former Aircraft Asset to cease
		to be an Aircraft Asset shall no longer exist or the transaction entered into
		as contemplated by Section 2.04(b) shall terminate, then the Company
		shall, and shall require each other Person within the Company Group, as
		appropriate, to, cause, as and to the extent commercially feasible, such Former
		Aircraft Asset to become an Aircraft Asset and the Servicer shall accept such
		Aircraft Asset as an Aircraft Asset, such action to be confirmed by an exchange
		of correspondence to such effect.
	 

	 
		Section 6.08. Execution,
		Amendment, Modification or Termination of Aircraft Assets Related
		Documents. (a) In connection with the
		acquisition of any Aircraft (other than any Former Aircraft Asset) which
		becomes an Aircraft Asset other than pursuant to the Asset Purchase Agreement,
		no later than ten Business Days prior to such Aircraft becoming an Aircraft
		Asset, the Company shall deliver a written notice thereof to the Servicer
		setting forth the model type and manufacturer’s serial number of such
		Aircraft and the Person within the Company Group which will become the owner of
		such Aircraft upon its acquisition, together with (x) a true and complete list
		all documents related to such Aircraft which will become Aircraft Assets
		Related Documents upon the acquisition of such Aircraft and (y) a true and
		complete copy of each document which will become an Aircraft Assets Related
		Document upon the 
	 

	 
		 
	 

	 
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		acquisition of such Aircraft or, to the
		extent it has yet to be executed, the most current draft of such document (with
		a final executed copy to be delivered as promptly as practicable thereafter).
		The Company will be deemed to represent and warrant to, and agree with, the
		Servicer on the date such Aircraft becomes an Aircraft Asset that (i) the
		Person within the Company Group listed as the owner of such Aircraft in the
		written notice provided by the Company will have such title to such Aircraft as
		was conveyed to such Person on its acquisition free and clear of all Liens
		created by or through such Person, (ii) each Aircraft Assets Related Document
		related to such Aircraft is a legal, valid and binding agreement of the Person
		within the Company Group that is a party thereto (including by way of
		assignment or novation) and is enforceable against such Person within the
		Company Group that is a party thereto in accordance with its terms and (iii) no
		Person within the Company Group has modified, amended or waived any provision
		of or terminated any Aircraft Assets Related Document referred to in such
		written notice provided by the Company except as disclosed therein. The
		Servicer shall not be required to perform any services provided for in or in
		connection with any Aircraft Assets Related Documents not delivered to it, and,
		to the extent that the failure to provide such service results in any Losses to
		the Servicer, the Company shall indemnify the Servicer for such Losses on an
		After-Tax Basis, in accordance with the provisions of Article XI.
	 

	 
		(b) No later than five Business Days after
		the date that (i) any agreement, instrument or other document becomes an
		Aircraft Assets Related Document (other than as contemplated in Section
		6.08(a)) or (ii) any Aircraft Assets Related Document shall have been amended,
		modified or terminated, the Company shall deliver written notice thereof to the
		Servicer together with (x) in the case of any newly executed Aircraft Assets
		Related Document, a true and complete copy of such Aircraft Assets Related
		Document, a list of all Aircraft Assets to which it relates and a description,
		in reasonable detail, of the relevance of such Aircraft Assets Related Document
		to such assets or (y) in the case of any amendment, modification or
		termination, a true and complete copy of any related agreement, instrument or
		other document; provided that such notice or such document shall not be required
		to be delivered, but shall be delivered if the Servicer does not have
		possession of such notice or document, delivery is so requested by the Servicer
		and the Company has possession of such notice or document, if the Servicer was
		substantially involved in the preparation and execution of such new, amended,
		modified or terminated agreement, instrument or other document.
	 

	 
		Section 6.09. Access to the
		Company Group Information. At all such
		times as the Servicer may reasonably request, the Company shall cause each
		other Person within the Company Group and the Administrative Agent to grant,
		access to the Servicer and its agents to the books of account, documents and
		other records of such Person (including “read only” and reporting
		access to the management information systems used by such Persons), and to
		officers, directors (or trustees, as applicable) and employees of each Person
		within the Company Group, Babcock & Brown Air Limited or any such agent for
		the purposes of the Servicer’s performance of its obligations in respect
		of Aircraft Assets under this Agreement; provided that
		Babcock & Brown Air Limited and its Affiliates that are not Persons within
		the Company Group shall have no obligation to provide information that does not
		relate to an Aircraft Asset and is confidential or proprietary. The Company
		will provide the Servicer with copies of the minutes of the board of directors
		of the Company and any written materials presented to the board by any Person,
		including the Administrative Agent.
	 

	 
		Section 6.10. The Company
		Group Accounts and Cash Arrangements.
		(a) The Company shall not, and shall not permit any other Person within
		the Company Group or any agent thereof to, establish any new bank or similar
		account relating to the Aircraft Assets or close any bank or similar account
		relating to the Aircraft Assets other than in accordance with the terms of the
		Indenture, the Security Trust Agreement or the Cash Management
		Agreement.
	 

	 
		(b) No Person within the Company Group shall
		modify any arrangement with respect to any bank or similar account or the flow
		of cash in connection with the Aircraft Assets other than in 
	 

	 
		 
	 

	 
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		accordance with the terms of the Indenture,
		the Security Trust Agreement or the Cash Management Agreement.
	 

	 
		Section 6.11. [Reserved].
	 

	 
		Section 6.12. Further Assurances. The Company agrees and shall cause each other Person
		within the Company Group and their respective agents (including the
		Administrative Agent and the Cash Manager) to agree, that, at any time and from
		time to time, upon the written request of the Servicer, it will execute and
		deliver such further documents and do such further acts and things, after a
		reasonable period for review thereof, as the Servicer may reasonably request in
		order to effect the purposes of this Agreement.
	 

	 
		Section 6.13. Guarantees.
		The Company represents, warrants and agrees that it has full power and
		authority to bind each of the Persons within the Company Group to this
		Agreement and that each of such Persons is bound by this Agreement and will
		perform its obligations hereunder. In furtherance of the foregoing, but not in
		limitation thereof, the Company agrees that it shall cause each other Person
		within the Company Group with respect to which the Servicer so request to
		execute and deliver an accession agreement, in form or substance reasonably
		acceptable to the parties hereto, pursuant to which such Person becomes a party
		hereto or to execute and deliver a Company Group Guarantee in favor of the
		Servicer in the form attached hereto as Appendix B.
	 

	 
		Section 6.14. Transfers of Funds. The Company agrees and shall cause each other Person
		within the Company Group and their respective agents (including the
		Administrative Agent and the Cash Manager), to cooperate with the Servicer to
		the extent necessary to cause funds to be transferred into or out of the
		various Bank Accounts in order for the various payments from Lessees to be
		applied, or to Lessees to be made, on a basis consistent with the instructions
		of such Lessees, subject in each case to the terms of the Leases and the rights
		and obligations of the lessors thereunder.
	 

	 
		ARTICLE VII
	 

	 
		The Company Group Responsibility
		
	 

	 
		Section 7.01. The Company
		Group Responsibility. Notwithstanding
		the appointment of the Servicer to perform the Services and the related
		delegation of authority and responsibility to the Servicer pursuant to this
		Agreement, each of the Company and each other Person within the Company Group
		shall continue to have and exercise through its board of directors or trustees,
		as the case may be, as applicable, real and effective central control and
		management of all matters related to its ongoing business, operations, assets
		and liabilities, subject to matters that are expressly the responsibility of
		the Servicer in accordance with the terms of this Agreement, and each of the
		Company and each other Person within the Company Group shall at all times
		conduct its separate ongoing business in such a manner that the same shall at
		all times be readily identifiable from the separate business of the Servicer.
		Matters with respect to which responsibility is not being delegated to the
		Servicer shall include but are not limited to the matters set forth in Schedule
		7.01. Without limiting the generality of the foregoing, each of the Company and
		each other Person within the Company Group agrees as follows:
	 

	 
		(a) it will observe all corporate
		formalities necessary to remain a legal entity separate and distinct from, and
		independent of, the Servicer, and any of its Affiliates;
	 

	 
		(b) it will maintain its assets and
		liabilities separate and distinct from those of the Servicer;
	 

	 
		 
	 

	 
		18
	 

	 
		 
	 

	 
	 

	 

	 
		(c) it will maintain records, books,
		accounts, and minutes separate from those of the Servicer;
	 

	 
		(d) it will pay its obligations in the
		ordinary course of business as a legal entity separate from the
		Servicer;
	 

	 
		(e) it will keep its funds separate and
		distinct from any funds of the Servicer, and it will receive, deposit, withdraw
		and disburse such funds separately from any funds of the Servicer;
	 

	 
		(f) it will conduct its business in its own
		name, and not in the name of the Servicer;
	 

	 
		(g) it will not agree to pay or become
		liable for any debt of the Servicer, other than to make payments in the form of
		indemnity as required by the express terms of this Agreement;
	 

	 
		(h) it will not hold out that it is a
		division of the Servicer, or that the Servicer is a division of it;
	 

	 
		(i) it will not induce any third party to
		rely on the creditworthiness of the Servicer in order that such third party
		will be induced to contract with it;
	 

	 
		(j) it will not enter into any transactions
		between it and the Servicer that are more favorable to either party than
		transactions that the parties would have been able to enter into at such time
		on an arm’s-length basis with a non-affiliated third party, other than any
		agreements in effect on the date hereof (it being understood that the parties
		hereto do not intend by this covenant to ratify any self-dealing
		transactions);
	 

	 
		(k) it will observe all corporate or other
		procedures required under Applicable Law and under its constitutive documents;
		and
	 

	 
		(l) it will observe all corporate
		formalities necessary to keep its business separate and readily identifiable
		from, and independent of, each other Person within the Company Group, including
		keeping the funds, assets and liabilities of each such Person separate and
		distinct from those of each other Person within the Company Group and by
		maintaining separate records, books, accounts and minutes for each Person
		within the Company Group.
	 

	 
		Section 7.02. Performance with
		Respect to Aircraft Assets. The Company
		has directed the Servicer to, and the Servicer will, perform the Services in a
		manner that is intended to be consistent with maximizing the cash flows derived
		from the leases relating to the Aircraft Assets over time, subject to the
		constraints imposed by the Indenture and this Agreement and by seeking to
		achieve a balanced and diversified portfolio (including with respect to
		lessees, geography and lease term lengths), in all cases taking into account
		the then-existing and anticipated market conditions affecting the operating
		lease of used aircraft and the commercial aviation industry generally. The
		Company understands and acknowledges the inherent uncertainty in determining
		market conditions at any point in time as well as the inherent limitations in
		anticipating market conditions from time to time. It is expressly understood
		that this Section 7.02 does not impose any higher or different standard of care
		or liability than is set forth in Article III.
	 

	 
		Section 7.03. Lease Operating
		Budget; Aircraft Asset Expenses Budget.
		(a) The Company shall adopt with respect to each year during the term of
		this Agreement, in accordance with Sections 7.03(b), (c) and (d), (i) a
		single lease operating budget with respect to all Aircraft Assets (the
		“Lease Operating
		Budget”) and (ii) a single budget
		with respect to the Aircraft Asset expenses related to all Aircraft Assets (the
		“Aircraft Asset Expenses
		Budget”); provided that,
		with respect to the Year 
	 

	 
		 
	 

	 
		19
	 

	 
		 
	 

	 
	 

	 

	 
		commencing January 1, 2007, the Company
		shall have adopted the Lease Operating Budget and the Aircraft Asset Expenses
		Budget for such Year that are attached to a certificate delivered by the
		Company to the Servicer on the Closing Date.
	 

	 
		(b) In respect of each Year during the term
		of this Agreement, it is understood that the Administrative Agent shall prepare
		on behalf of the Company Group, and not later than the [November 30]
		immediately preceding the commencement of such Year deliver to the Servicer
		(other than with respect to the fiscal year commencing January 1, 2007), a
		proposed Lease Operating Budget and a proposed Aircraft Asset Expenses Budget
		for such Year together with reasonably detailed information regarding the
		assumptions underlying such proposed budgets.
	 

	 
		(c) In connection with the preparation of
		such proposed Lease Operating Budget and Aircraft Asset Expenses Budget, the
		Servicer shall provide the Manager, not later than the September 30 immediately
		preceding the commencement of such Year (other than with respect to the fiscal
		year commencing January 1, 2007), information in a form to be agreed from time
		to time relating to (i) Aircraft Assets lease rates, Utilization Rent,
		Aircraft redelivery payments, and Deposits (including interest, if any,
		thereon), (ii) Aircraft Assets being off lease, (iii) direct technical
		expenditures (including any costs to be capitalized) relating to the Aircraft
		Assets, (iv) indirect costs relating to insurance, legal, consulting and
		other similar expenses and (v) such other Aircraft Assets expense related
		information as may be reasonably required to prepare such budgets, in each case
		including the assumptions relating thereto. The Servicer shall only be
		obligated to provide expense-related information to the Administrative Agent
		pursuant to this Section 7.03(c) to the extent that such information relates to
		the Services performed by the Servicer hereunder. The Company shall ensure that
		the Administrative Agent is instructed to prepare each such proposed Lease
		Operating Budget and proposed Aircraft Asset Expenses Budget on a timely basis
		and that the Administrative Agent cooperates therewith.
	 

	 
		(d) After the delivery of such proposed
		Lease Operating Budget and Aircraft Asset Expenses Budget as described in
		Sections 7.03(b) and (c), the Servicer and the Administrative Agent shall
		review and discuss such proposed Lease Operating Budget and Aircraft Asset
		Expenses Budget and shall make such adjustments thereto as they shall deem
		appropriate, and the revised proposed Lease Operating Budget and proposed
		Aircraft Asset Expenses Budget in respect of any Year shall then be submitted
		no later than the December 15 (or, if such day is not a Business Day, the first
		following Business Day) preceding such Year to the Company for its
		consideration and approval (other than with respect to the fiscal year
		commencing January 1, 2007). The approved Lease Operating Budget and Aircraft
		Asset Expenses Budget for any Year, as each may be amended or modified from
		time to time, shall hereinafter be referred to as the “Approved Budget”. Each Approved Budget shall be consistent with,
		and not in any manner reduce, limit or circumscribe, the delegation to the
		Servicer pursuant to this Agreement (including pursuant to Section 7.04) of a
		practical and workable level of autonomy, authority and responsibility with
		respect to the performance of the Services.
	 

	 
		(e) If the Company does not adopt any
		Approved Budget for any Year as contemplated by Section 7.03(d) or if, after an
		Approved Budget is adopted, the Company shall determine that any Changed
		Circumstances have occurred and are continuing, then the Company shall instruct
		the Servicer and the Administrative Agent, on behalf of the Company Group, to
		review and, to the extent possible, revise the Lease Operating Budget and
		Aircraft Asset Expenses Budget in such a manner as to adequately address the
		concerns of the Company and/or such Changed Circumstances (it being understood
		that, subject to the last sentence of Section 7.03(d), the Company may instruct
		the Servicer not to proceed with a Lease Operating Budget and an Aircraft Asset
		Expenses Budget approved by the Company if the Company determines that any
		proposed revisions do not adequately address the concerns of the Company and/or
		such Changed Circumstances).
	 

	 
		 
	 

	 
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		(f) Notwithstanding any other provision
		hereof, the Servicer shall have no liability for the failure of the Approved
		Budget for any Year to be achieved.
	 

	 
		Section 7.04. Transaction
		Approval Requirements. (a) The
		Servicer shall not do any of the following without the express prior written
		approval of the Board of Directors of the Company (which approval shall not be
		given or made by the Company to the extent such approval would breach any
		covenant or agreement of the Company in the Indenture) and, in the case of
		clauses (vii) and (viii) of this Section 7.04(a), the Company shall have given
		the Servicer written copies of any required Policy Provider consent as provided
		in the Indenture:
	 

	 
		(i) Except as otherwise required in
		accordance with the terms of any Lease or the Asset Purchase Agreement, sell
		(or enter into any agreement to sell) or otherwise dispose of any Aircraft
		(excluding any sale or exchange of any Engine, parts or components thereof or
		aircraft or engine spare parts or ancillary equipment or devices furnished
		therewith) forming part of the Aircraft Assets.
	 

	 
		(ii) Enter into any new Lease (or any
		renewal or extension of an existing Lease, unless any such Lease being renewed
		or extended had previously been approved pursuant to this Section 7.04(a) or if
		any such Lease contains an extension option and such option is being exercised
		in accordance with the terms of such Lease) of Aircraft Assets if (A) the Lease
		shall not comply with all the applicable provisions of Sections 5.02 and 5.03
		of the Indenture expressly applicable to the leasing of such Aircraft Assets as
		set forth in Section 2.1 of Schedule 2.02(a), (B) the Lease grants a purchase
		option in favor of the Lessee (it being agreed that a right of first refusal or
		right of first offer is not a purchase option for purposes hereof) or (C) the
		Lease permits the Lessee to assign its obligations without the consent of the
		Lessor.
	 

	 
		(iii) Terminate any Lease or Leases to any
		single Lessee with respect to any Aircraft Assets (A) on or prior to the fifth
		anniversary of the Closing Date, then having an aggregate depreciated net book
		value on the books of the applicable Person(s) within the Company Group in
		excess of $100,000,000 and (B) after the fifth anniversary of the Closing Date,
		with respect to more than five Aircraft Assets per year, and, in either case,
		unless such Lease or Leases is substituted or replaced by another substantially
		similar Lease or Leases with respect to such Aircraft Assets or unless such
		termination is related to the exercise of remedies following an event of
		default under the applicable Lease.
	 

	 
		(iv) Unless provided for in the then current
		Approved Budget (including the provisions of Section 7.03(e)), (A) enter into
		any contract to make any capital expenditure for the purpose of effecting any
		optional improvement or modification of any Aircraft Asset, including any
		optional conversion thereof from passenger to a freighter or mixed use
		aircraft, except for capital expenditures made in the ordinary course of
		business in connection with the sale or lease of an Aircraft Asset, or (B)
		enter into any contract for maintenance of any Aircraft Asset, in either event,
		if the costs to be incurred thereunder by the applicable Person within the
		Company Group exceed the greater of (1) the estimated aggregate cost of the
		heaviest or most extensive maintenance check for the airframe and a total
		refurbishment and full restoration shop visit of the engines for Aircraft
		Assets of the type in question (and including the replacement of life limited
		parts) , in each case, based on then prevailing industry rates in the United
		States or Europe, and (2) the amount of the available Utilization Rent or other
		payments or other collateral under the applicable Lease and, in the case of
		conversions, the amount in the applicable Conversion Account.
	 

	 
		(v) Issue any Guarantee on behalf of, or
		otherwise pledge the credit of (other than with respect to trade payables in
		the ordinary course of the Company Group’s business), any
	 

	 
		 
	 

	 
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		Person within the Company Group, except (A)
		for guarantees by the Company or any other Person within the Company Group of
		the obligations of any other Person within the Company Group (including in
		connection with a Lease or the sale of an Aircraft Asset), (B) so long as the
		out-of-pocket cash payment or cash collateral deposit in respect thereof does
		not exceed $3,000,000 in any individual case (and not in excess of $20,000,000
		in the aggregate at any time outstanding), any Lien or indebtedness created in
		favor of the issuer of a surety bond, letter of credit or similar instrument to
		be obtained by or for the benefit of any Person within the Company Group in
		connection with the detention or repossession of an Aircraft or enforcement
		action under a Lease or removal of a Lien and (C) with respect to instances in
		which the Servicer is seeking to repossess or otherwise protect an Aircraft
		Asset after an imminent default or an event of default under a Lease, (x) on or
		prior to the fifth anniversary of the Closing Date, in a notional amount or
		face value of bond or guaranty in excess of the Assumed Base Value (as defined
		in the Indenture) of such Aircraft Asset and, (y) thereafter, in a notional
		amount or face value of bond or guaranty in excess of the most recent appraised
		value of such Aircraft Asset as provided in Section 5.03(i) of the
		Indenture.
	 

	 
		(vi) Except as specifically contemplated by
		Schedule 2.02(a), on behalf of any Person within the Company Group, enter into,
		amend or grant a waiver with respect to, any transaction with the Servicer or
		any of its Affiliates, including for the acquisition, sale or lease of any
		Aircraft Assets from or to, or the obtaining or provision of services by, any
		such Person (except for the acquisition, sale, exchange or lease of or services
		in respect of any Engine, parts or components thereof or aircraft or engine
		spare parts, components or ancillary equipment or devices furnished
		therewith).
	 

	 
		(vii) Incur on behalf of any Person within
		the Company Group any liability (actual or contingent) or cause any such
		liability to be incurred, except for a liability (A) contemplated in the then
		current Approved Budget, (B) arising out of, in connection with or related to a
		transaction of a type which is otherwise subject to approval under this Section
		7.04 and is, in fact, so approved or, due to the existence of an exception,
		limitation or other carve out contained therein or in any definition therein,
		is not subject to approval under the relevant provision of this Section 7.04,
		(C) incurred in the ordinary course of the Company Group’s business,
		including, but not limited to, liabilities related to such matters specified in
		Schedule 7.04, (D) incurred pursuant to a Lease or sale of an Aircraft Asset,
		in entering into the Lease or sale contract or performing any obligations as
		lessor or seller thereunder or (E) with respect to instances in which the
		Servicer is seeking to repossess or otherwise protect an Aircraft Asset after
		an imminent default or an event of default under a Lease, (x) on or prior to
		the fifth anniversary of the Closing Date, liabilities with maximum exposure
		(by way of notional amount, face value or otherwise) not to exceed the Assumed
		Base Value of such Aircraft Asset and, (y) thereafter, liabilities with a
		maximum exposure (by way of notional amount, face value or otherwise) not to
		exceed the most recent appraised value of such Aircraft Asset as provided in
		Section 5.03(i) of the Indenture; provided that
		the exception contained in clause (C) above is not intended to override any
		other restriction contained in this Agreement (other than this clause (vii))
		relating to the incurrence of any liability referred to in such clause (C); and
		provided, further, that
		liabilities incurred pursuant to this clause (vii) (other than subclause (E)
		which shall not be subject to the following caps) after the fifth anniversary
		of the Closing Date shall not, without Company approval, exceed $1,000,000 per
		Aircraft Asset per year or $20,000,000 in the aggregate for all Aircraft Assets
		after the fifth anniversary of the Closing Date.
	 

	 
		(viii) Enter into on behalf of the Company
		or any Person within the Company Group, any order or commitment to acquire, or
		acquire on behalf of the Company Group, (A) aircraft or (B) except as otherwise
		provided in Section 4(e) of Schedule 2.02(a), so long as no individual (and not
		aggregate) net (after credit for any exchanges, replacements or similar
		items)
	 

	 
		 
	 

	 
		22
	 

	 
		 
	 

	 
	 

	 

	 
		out-of-pocket cash expenditures exceeds
		$3,000,000, aircraft engines, except, in the case of aircraft engines (X) in
		accordance with any Lease or for the benefit of a Lessee pursuant to a Lease or
		(Y) to acquire a replacement engine for an Aircraft so long as the same is
		provided for in the then current Approved Budget; provided that no
		orders or commitment for engines shall, without Company approval, require net
		out-of-pocket cash expenditures in excess of $20,000,000 in the aggregate for
		all Aircraft Assets after the fifth anniversary of the Closing Date.
	 

	 
		(b) Any transaction entered into by the
		Servicer on behalf of any Person within the Company Group (other than with
		other Persons within the Company Group), including with the Servicer or any of
		its Affiliates, shall be on an arm’s-length basis and on fair market value
		terms, unless otherwise agreed by the Board of Directors of the Company on
		behalf of any such Person within the Company Group and, in the case of
		transactions with the Servicer or any of its Affiliates, the Policy
		Provider.
	 

	 
		(c) The transaction approval requirements
		(the “Transaction Approval
		Requirements”) set forth in this
		Section 7.04 may only be amended by mutual agreement of the parties, and shall
		not in any event be amended to reduce, or circumscribe the delegation to the
		Servicer of, the level of autonomy, authority and responsibility contemplated
		by the Transaction Approval Requirements with respect to the performance of the
		Services. Any rejection by the Company of any proposed transaction submitted to
		it by the Servicer pursuant to the Transaction Approval Requirements shall only
		be applicable to such portions of any such proposed transaction as are
		specifically required to be approved as set forth in Section 7.04(a).
	 

	 
		(d) The Company shall provide the Servicer
		with a response confirming its approval or rejection of any proposed
		transaction submitted to it by the Servicer as promptly as practicable
		following its receipt of a proposal from the Servicer and in any event not more
		than [five] Business Days after receipt of such a proposal. In the event that
		the board of directors of the Company, a duly authorized committee thereof or
		the Administrative Agent fails to approve of any transaction with respect to
		which an approval is required pursuant to the Transaction Approval Requirements
		and in respect of which the Servicer has submitted a reasonably detailed
		written proposal, the Company shall provide a reasonably detailed written
		explanation for any such rejection to the Servicer simultaneously with
		notifying the Servicer of such rejection. The Servicer is not required to take
		any action with respect to any transaction for which approval was sought
		pending receipt of such explanation.
	 

	 
		Section 7.05. Approved Budgets
		and Transaction Approval Requirements. Except as set forth in Section 7.04(a), no
		transaction entered into by the Servicer on behalf of any Person within the
		Company Group in connection with the performance by the Servicer of the
		Services shall require the approval of any Person within the Company Group or
		its board of directors or trustees, as applicable, or any committees thereof,
		or the Administrative Agent or the Cash Manager; provided that
		nothing set forth in this Article VII shall prohibit the Servicer from seeking
		any approval or direction from the Company with respect to any matter related
		to the Services or the Aircraft Assets to the extent that the Servicer believes
		to be appropriate and, pending the Servicer’s receipt of any such approval
		or direction, the Servicer may refrain from taking any action with respect to
		the matter for which the Servicer has sought approval or direction.
	 

	 
		ARTICLE VIII
	 

	 
		Effectiveness
	 

	 
		Section 8.01. Effectiveness. The effectiveness of this Agreement and all obligations
		of the parties hereunder shall be conditioned upon satisfaction (or waiver by
		the appropriate party) of the conditions set forth in Schedule 8.01.
	 

	 
		 
	 

	 
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		ARTICLE IX
	 

	 
		Servicing Fees; Expenses;
		Taxes;
	 

	 
		Priority of Servicing Fees
	 

	 
		Section 9.01. Servicing
		Fees. (a) In consideration of the
		Servicer’s performance of the Services, the Company agrees to pay to the
		Servicer servicing fees consisting of (i) the monthly base fee set forth in
		Section 9.02 (“Monthly Base
		Fee”), (ii) the rent fees set
		forth in Section 9.03 (“Rent
		Fees”), and (iii) the sales fee
		set forth in Section 9.04 (“Sales
		Fee”).
	 

	 
		(b) The Company agrees to provide the
		Servicer (with a copy to the Administrative Agent) with any information in a
		timely manner that the Servicer may reasonably request to enable the Servicer
		to determine the timing and amount of any payment that the Servicer is entitled
		to receive pursuant to this Agreement.
	 

	 
		Section 9.02. Monthly Base
		Fee. A Monthly Base Fee equal to
		$150,000 shall be payable by the Company to the Servicer in arrears on each
		Payment Date during the Term of this Agreement; provided that in
		the event that any Aircraft (other than any Former Aircraft Asset) shall become
		an Aircraft Asset after the Closing Date other than pursuant to the Asset
		Purchase Agreement, then the Monthly Base Fee will be increased by an
		additional amount equal to 0.01% of the Base Value of such additional Aircraft
		Asset on the date it becomes an Aircraft Asset to reflect the addition of such
		Aircraft.
	 

	 
		Section 9.03. Rent
		Fees. (a) Rent Fees shall consist
		of the Rent Payable Fee and the Rent Collected Fee. The Rent Fees shall be
		calculated by the Servicer and payable by the Company as follows:
	 

	 
		(i) A Rent Payable Fee shall be payable by
		the Company to the Servicer in arrears for each period commencing on the
		Closing Date (or, thereafter, the fourth Business Day prior to the most recent
		Calculation Date) and ending on the fourth Business Day prior to the next
		succeeding Calculation Date during the term of this Agreement (each such
		period, a “Fee
		Period”), such payment to be made
		no later than the Payment Date immediately following the end of each such Fee
		Period.
	 

	 
		The “Rent Payable Fee” in respect of any Fee Period shall equal one
		percent (1.00%) of the aggregate amount of the Rents due from each Lessee
		attributable to such Fee Period, or portion of such Fee Period in which the
		relevant Aircraft constitutes an Aircraft Asset; provided that,
		in the event of an early termination of a Lease relating to any Aircraft Asset
		for any reason (other than by reason of the occurrence of an event of loss or
		exercise of a purchase option), the Rents which would have been payable
		pursuant to such Lease but for such early termination will be included in this
		calculation of the Rent Payable Fee until the earlier of (a) the date on which
		Rents shall become payable in respect of such Aircraft Asset pursuant to
		another Lease (the Rents of which shall be included in this calculation of the
		Rent Payable Fee) and (b) the day that numerically corresponds to the first
		date by which such Aircraft Asset and related Aircraft Documents shall have
		been physically repossessed by the Servicer following such early termination in
		(or, if no such day exists, the last day of) the calendar month that is the
		third month after the month in which such date occurs.
	 

	 
		(ii) A Rent Collected Fee shall be payable
		by the Company to the Servicer in arrears for each Fee Period, such payment to
		be made no later than the Payment Date immediately following the end of each
		such Fee Period.
	 

	 
		The “Rent Collected Fee” in respect of any Fee Period shall equal one
		percent (1.00%) of the aggregate amount of the Rents actually paid by each
		Lessee and, if any Lessee fails to pay any
	 

	 
		 
	 

	 
		24
	 

	 
		 
	 

	 
	 

	 

	 
		Rent when due, amounts applied towards such
		payment during such Fee Period or portion of such Fee Period in which the
		relevant Aircraft constitutes an Aircraft Asset; provided that if
		any collateral security, including any security deposit, is applied to the
		payment of Rent, then, for purposes of calculating the Rent Collected Fee, the
		amounts so applied shall not be included as Rent at the time of such
		application but shall be so included at such time as any Person within the
		Company Group shall receive substitute collateral security or a payment
		(whether in the form of Rent or otherwise) which restores, in whole or in part,
		such collateral security.
	 

	 
		(b) Not less than four Business Days prior
		to each Payment Date immediately following the end of each Fee Period, the
		Servicer shall deliver a written notice to the Company specifying the amount of
		the Rent Payable Fee and the amount of the Rent Collected Fee payable in
		respect of such Fee Period.
	 

	 
		Section 9.04. Sales
		Fee. (a) A Sales Fee shall be
		payable with respect to each Fee Period by the Company to the Servicer, such
		payment to be made not later than the Payment Date immediately following the
		end of each such Fee Period.
	 

	 
		(b) The “Sales Fee”
		in respect of any Fee Period shall equal one and one-half percent (1.50%) of
		the Aggregate Gross Proceeds in respect of Dispositions of Aircraft Assets
		during such Fee Period. “Aggregate
		Gross Proceeds” for any Fee Period
		means the sum of the Gross Proceeds for each Disposition of an Aircraft Asset
		that is an Aircraft Asset during such Fee Period. “Disposition” means, with respect to any Aircraft Asset, the
		sale (including pursuant to the exercise of a purchase option), total loss or
		other event or circumstances under which such Aircraft Asset ceases to be an
		Aircraft Asset. “Gross
		Proceeds” shall be an amount equal
		to the gross proceeds (including the fair market value of any non-cash
		consideration, but excluding any cash added to the purchase price of the
		applicable Aircraft Asset in respect of any Utilization Rent or Deposit)
		received by any Person within the Company Group in respect of any Disposition
		of an Aircraft Asset.
	 

	 
		(c) Not less than four Business Days prior
		to each Payment Date immediately following the end of each Fee Period, the
		Servicer shall deliver a written notice to the Company specifying the amount of
		the Sales Fee payable in respect of such Fee Period.
	 

	 
		Section 9.05. Fees in
		Bankruptcy. In the event that this
		Agreement is not terminated due to an event described in
		Section 10.02(a)(i)(D) or (E), the fees payable to the Servicer after the
		occurrence and during the continuance of such an event shall be 115% of the
		fees otherwise payable under Sections 9.02, 9.03 and 9.04 above.
	 

	 
		Section 9.06. Expenses.
		(a) The Servicer shall be responsible for, and shall not be entitled to
		reimbursement for, the Servicer’s overhead expenses set forth in Schedule
		9.06(a) (“Overhead
		Expenses”).
	 

	 
		(b) (i) The Company shall be
		responsible for all costs and expenses relating to or associated with the
		Aircraft Assets other than Overhead Expenses, including those costs and
		expenses set forth in Schedule 9.06(b) (“Aircraft Asset Expenses”). Nothing contained in this Section 9.06 shall be
		deemed to impose on the Servicer any obligation to advance any of its own funds
		for any Aircraft Asset Expenses.
	 

	 
		(ii) If, in connection with the performance
		of Services, and without limiting the Company Group’s liability to pay for
		any goods and services as and when invoiced by the Servicer that are not
		required to be so paid in advance by the Servicer, the Servicer, on behalf of
		any Person within the Company Group, proposes to provide goods and services, or
		arrange for the provision of goods or services, from any vendor, supplier,
		service provider or other Person (A) for a purchase price in excess of 
	 

	 
		 
	 

	 
		25
	 

	 
		 
	 

	 
	 

	 

	 
		U.S. $1,000,000 (or the equivalent thereof
		in the currency in which such obligation is payable) or (B) at any time when a
		default in respect of the payment of any amount due under this Agreement shall
		have occurred and be continuing, the Servicer may require the Company to pay
		for such goods or services in advance or otherwise make the funds for payment
		of such goods or services available to the satisfaction of the Servicer. If
		such advance payment is not made or such funds are not otherwise made
		available, notwithstanding any other provision in this Agreement, the Servicer
		shall be relieved of its obligation to provide or arrange for the provision of
		such goods or services in respect of the Aircraft Assets for which such goods
		or services were to be provided but shall otherwise continue to manage such
		Aircraft Assets as provided in this Agreement and shall continue to be entitled
		to receive the fees specified in Sections 9.01, 9.02, 9.03 and 9.04 in respect
		of such Aircraft Assets. In such case, the Company may provide or arrange for
		the provision of such goods or services in respect of such Aircraft
		Assets.
	 

	 
		Section 9.07. Taxes.
		(a) The Company agrees to pay and to indemnify and hold harmless the
		Indemnified Parties on an After-Tax Basis from and against (i) all
		liability for Taxes of or imposed on the Taxpayers that are imposed on, or
		asserted to be payable by, any Indemnified Party as a result of the structuring
		and implementation of any aspect of the various transactions contemplated by
		the Final Prospectus, regardless of whether such Taxes are attributable to a
		taxable period ending before, on or after the Closing Date, other than (A) any
		such Taxes imposed on or payable by a Taxpayer in its capacity as a withholding
		agent in respect of amounts payable pursuant to this Agreement to an
		Indemnified Party (B) and any Taxes imposed on or payable by a Taxpayor that,
		prior to the Closing Date, was an Affiliate of the Servicer to the extent
		attributable to the period on or prior to the Closing Date, and (ii) any
		liability for out-of-pocket fees, costs and expenses (including reasonable
		attorneys’ fees) arising out of or incident to any Tax indemnified
		hereunder. If any Taxes for which the Company is to indemnify any Indemnified
		Party pursuant to the immediately preceding sentence are payable after the
		Closing Date, the Company shall pay or cause to be paid to such Indemnified
		Party an amount calculated on an After-Tax Basis equal to the amount of such
		Taxes no later than the later of (x) five Business Days after such Indemnified
		Party gives notice to the Company that such amount is due, a reasonably
		detailed explanation of such indemnity obligation and specifying the date such
		Taxes are due and payable (the “Due
		Date”) and (y) one Business Day
		before the Due Date. Amounts described in clause (ii) shall be reimbursed on an
		After-Tax Basis not less frequently than quarterly. Any payment required to be
		made hereunder and not made at the time specified in the preceding two
		sentences shall bear interest at the Stipulated Interest Rate or such higher
		rate actually payable by such Indemnified Party on the delayed payment of the
		Taxes being indemnified, calculated from the date such payment was required to
		be made hereunder to the date such payment is actually received by the
		Indemnified Party.
	 

	 
		(b) All amounts payable by or on behalf of
		the Company pursuant to this Agreement shall be payable exclusive of any
		applicable value added tax, which value added tax, if payable, shall also be
		payable, upon production of a valid value added tax invoice by the Servicer.
		All amounts payable to the Company by an Indemnified Party pursuant to this
		Agreement shall be inclusive of value added tax save to the extent such
		Indemnified Party is entitled to recover (by way of repayment, credit or set
		off) the whole or any part of such value added tax. Where it is so entitled, at
		the request of the Company, value added tax shall be payable in addition
		thereto on production of a valid value added tax invoice but payment of the
		value added tax element shall not fall due until the latest possible date
		before the date on which such Indemnified Party shall receive such repayment,
		credit or set off (and such Indemnified Party shall be obligated to use
		reasonable endeavors (taking into account its overall tax position) to obtain
		such repayment, credit or set off as soon as possible); provided that,
		to the extent such payment of the value added tax element shall fall due prior
		to such date of receipt pursuant to Applicable Law, the Company shall
		compensate such Indemnified Party at the Prime Rate for any resulting loss of
		the time value of funds. The Servicer shall act on the Company’s behalf in
		processing any refund of value added tax and the Servicer and the Company shall
		cooperate in good faith to file an application for relief from value added
		taxes on VAT form 60A as soon as practicable after the date of this
		Agreement.
	 

	 
		 
	 

	 
		26
	 

	 
		 
	 

	 
	 

	 

	 
		(c) The Company shall pay and indemnify and
		hold the Indemnified Parties harmless, on an After-Tax Basis, from all Taxes
		imposed, levied or assessed against or upon the Person in the Company Group or
		any Indemnified Parties by any Governmental Authority upon or with respect to
		any of the Operative Agreements or any payment pursuant thereto or resulting
		from the matters or activities described therein, other than (except to the
		extent required to make any payment on an After-Tax Basis) (i) payroll, social
		security and employment Taxes of such Indemnified Party and any Taxes that are
		based on or measured by the net income, net receipts, net profits, net worth,
		franchise, capital or conduct of business of such Indemnified Party, (ii) any
		Taxes payable by such Indemnified Party pursuant to the controlled foreign
		corporation provisions or the passive foreign investment company provisions of
		the U.S. Internal Revenue Code of 1986, as amended (the “Code”), or
		any successor provision, (iii) any Taxes payable by an Indemnified Party (other
		than stamp, documentary or other similar taxes), which Taxes are imposed by
		Ireland or the United States of America or any political subdivision of either,
		or any other jurisdiction, to the extent such Taxes would not have been imposed
		but for any connection of the Indemnified Party or any Affiliate thereof with
		the jurisdiction imposing such Taxes (other than any such connection that
		results from activities of such Indemnified Party or any Affiliate which
		activities are located in such jurisdiction by reason of the location of (x) a
		specific lessee or sublessee of any Person within the Company Group (or, if
		applicable, with respect to any Original Aircraft, the owner), (y) an Aircraft
		or any part thereof or (z) any other Person (other than any Indemnified Party)
		with whom any Person within the Company Group (or, if applicable, with respect
		to any Original Aircraft, the owner) may be engaging, or contemplating
		engaging, in a commercial relationship), (iv) Taxes attributable to events or
		conditions arising after the termination or expiration of this Agreement, (v)
		Taxes imposed as a result of the gross negligence or willful misconduct of any
		Indemnified Party, (vi) Taxes imposed on any Indemnified Party to the extent
		resulting from an unreasonable failure of such Indemnified Party to provide any
		certificate, documentation or other evidence reasonably requested by the
		Company and required under Applicable Law as a condition of allowance of a
		reduction or exemption in such Taxes; provided that
		such Indemnified Party is legally eligible to provide such certificate,
		documentation or other evidence without, in such Indemnified Party’s good
		faith judgment, any adverse consequence (other than de minimus costs
		and expenses) to it or any of its Affiliates, and (vii) Taxes imposed on or
		arising from fees or other similar amounts paid by the Company to any
		Indemnified Party. All Taxes with respect to which the Company has an
		indemnification responsibility under this Section 9.07 shall be paid not later
		than the date such Taxes shall be due unless and to the extent, in the case of
		Taxes that do not burden any of the assets or property of any Indemnified Party
		and are assessed solely upon a Person or Persons within the Company Group, such
		Person or Persons within the Company Group shall be contesting such Taxes in
		good faith by appropriate proceedings, in which case such Taxes, or so much
		thereof as are being contested and are unpaid, shall be paid promptly upon a
		final determination that such Taxes, are due and payable. In the event any
		Taxes with respect to which the Company has an indemnification responsibility
		under this Section 9.07 are levied on any Indemnified Party, or any Indemnified
		Party is required by law or otherwise to pay any such Taxes in the first
		instance or as a result of a Person or Persons within the Company Group’s
		failure to comply with, or nonperformance in relation to, any Applicable Law or
		regulations governing the payment thereof by such Person or Persons within the
		Company Group, the Company shall pay to such Indemnified Party the full amount
		thereof on an After-Tax Basis within five Business Days after receipt from such
		Indemnified Party of any written request for such payment but not later than
		the due date for such Taxes. Any payment required to be made hereunder and not
		made at the time specified under this Section 9.07 shall bear interest at the
		Stipulated Interest Rate or such higher rate actually paid by such Indemnified
		Party on the delayed payment of the Taxes being indemnified, calculated from
		the date such payment was required to be made hereunder to the date such
		payment is actually received by such Indemnified Party.
	 

	 
		(d) If any claim or demand is asserted in
		writing with respect to a Tax indemnified hereunder, such Indemnified Party
		shall in good faith notify the Company of such claim or demand within 10 days
		of receipt thereof; provided that
		failure to give such notification shall not affect such Indemnified
	 

	 
		 
	 

	 
		27
	 

	 
		 
	 

	 
	 

	 

	 
		Party’s entitlement to indemnification
		hereunder unless such failure shall materially and adversely prejudice the
		ability of the Company to defend itself or any Indemnified Party against any
		such action, claim, demand, proceeding or suit. If the Company shall so request
		within 30 days after receipt of such notice, such Indemnified Party shall in
		good faith at the Company’s expense contest the imposition of such Tax;
		provided that such Indemnified Party may in its sole discretion
		select any applicable forum for such contest and determine whether any such
		contest shall be by (i) resisting payment of such Tax, (ii) paying such Tax
		under protest or (iii) paying such Tax and seeking a refund thereof;
		provided further, that at
		such Indemnified Party’s option such contest shall be conducted by the
		Company in the name of such Indemnified Party (subject to the preceding
		proviso) (it being understood that the Company shall not be permitted to
		contest the imposition of such Tax in the name of such Indemnified Party
		without the prior written consent of such Indemnified Party). In no event shall
		such Indemnified Party be required or the Company be permitted by such
		Indemnified Party to contest the imposition of any Tax for which the Company is
		obligated to indemnify pursuant to this Section 9.07 unless (i) such
		Indemnified Party shall have received from the Company (A) an indemnity
		reasonably satisfactory to such Indemnified Party for any liability, expense or
		loss arising out of or relating to such contest and (B) an opinion of tax
		counsel to the Company furnished at the expense of the Company to the effect
		that a reasonable basis exists for contesting such claim; (ii) the Company
		shall have agreed to pay, on an After-Tax Basis, such Indemnified Party on
		demand all reasonable costs and expenses that such Indemnified Party may incur
		in connection with contesting such claim (including all costs, expenses,
		losses, reasonable legal and accounting fees, disbursements, penalties,
		interest and additions to tax); (iii) the Company shall be in compliance
		with all of its payment obligations under this Agreement and shall have
		acknowledged, in a manner reasonably satisfactory to the Servicer, its
		liability hereunder to indemnify the Indemnified Parties in respect of such
		Tax; (iv) such Indemnified Party shall have determined that the action to be
		taken will not result in a material risk of sale, forfeiture or loss of, or the
		creation of any Lien (except if the Company shall have adequately bonded such
		Lien or otherwise made provision to protect the interests of such Indemnified
		Party in a manner reasonably satisfactory to such Indemnified Party) on any
		property or rights of such Indemnified Party, or any portion thereof or any
		interest therein; and (v) if such contest shall be conducted in a manner
		requiring the payment of the claim, shall have paid the amount required.
		Notwithstanding anything contained in this Section 9.07, an Indemnified Party
		shall not be required nor shall the Company be permitted by such Indemnified
		Party to contest or continue to contest in the name of an Indemnified Party the
		imposition of any Tax for which the Company is obligated to indemnify pursuant
		to this Section 9.07 if such an Indemnified Party shall waive in writing its
		rights to indemnification under this Section 9.07 with respect to such Tax.
		
	 

	 
		(e) If any Indemnified Party shall obtain a
		refund of all or any part of any Tax paid by the Company such Indemnified Party
		shall, provided no Event of Default, or default by the Company in the payment
		of any amount due hereunder, has occurred and is continuing, pay the Company an
		amount equal to the amount of such refund or credit, including interest
		received or credited and attributable thereto, plus any net Tax benefit (or
		minus any net Tax detriment) realized by such Indemnified Party as a result of
		a payment made pursuant to this sentence or as a result of the receipt or
		accrual of such refund, or credit including interest received or credited and
		attributable thereto; provided that an
		Indemnified Party will only be treated as receiving as credit for this purpose
		to the extent that the credit is utilized in the taxable year that the Tax
		arises. If any Indemnified Party shall have paid the Company any refund of all
		or part of any Tax paid by the Company and it is subsequently determined that
		such Indemnified Party was not entitled to the refund or credit, such
		determination shall be treated as the imposition of a Tax for which the Company
		is obligated to indemnify such Indemnified Party pursuant to the provisions of
		Section 9.07 hereof.
	 

	 
		Section 9.08. Priority of
		Payments to Servicer. Any and all
		amounts due and owing to the Servicer or any of its Affiliates (including any
		amounts due and owing to the Servicer or any of its Affiliates with respect to
		indemnification) pursuant to this Agreement shall be entitled to the priority
		
	 

	 
		 
	 

	 
		28
	 

	 
		 
	 

	 
	 

	 

	 
		established therefore in the Indenture,
		which priority the Company agrees not to amend without the consent of the
		Servicer.
	 

	 
		ARTICLE X
	 

	 
		Term; Right to Terminate;
		Resignation;
	 

	 
		Consequences of Expiration,
		Termination,
	 

	 
		Resignation or Removal; Certain Tax
		Matters; Survival
	 

	 
		Section 10.01. Term.
		(a) This Agreement shall have a non-cancelable term commencing on the
		Closing Date and expiring on the later of (i) the first date on which there
		shall have been paid in full all amounts outstanding to be paid under the Notes
		and any similar obligations of the Company issued pursuant to any other
		indenture or similar agreement, including all obligations then due and payable
		under the Indenture and under the Policy Provider Documents (as defined in the
		Indenture) (i.e., there shall be no Notes or similar obligations
		outstanding under the Indenture and under the Policy Provider Documents (as
		defined in the Indenture)) and (ii)
		[                   ]
		[        ], 2034.
	 

	 
		During the term, this Agreement shall not be
		terminable by either party except as expressly provided in this Article
		X.
	 

	 
		Section 10.02. Right to
		Terminate. (a) (i) At any time during
		the term of this Agreement, the Servicer shall in accordance with Section
		10.02(c) be entitled to terminate this Agreement if:
	 

	 
		(A) The Company shall fail to pay in full
		when due (1) any Servicing Fees within five days after the receipt of written
		notice from the Servicer of such failure or (2) any other amount payable by the
		Company hereunder or under any other Operative Agreement within ten days after
		the effectiveness of written notice from the Servicer of such failure to the
		extent that such failure materially impairs the ability of the Servicer to
		perform the Services on the terms set forth herein; or
	 

	 
		(B) any Person within the Company Group
		shall fail to perform or observe or shall violate in any material respect any
		material term, covenant, condition or agreement to be performed or observed by
		it in respect of this Agreement or any other Operative Agreement (other than
		with respect to payment obligations of the Company referred to in clause
		(a)(i)(A) of this Section 10.02) and such violation is reasonably likely to
		have a Material Adverse Effect on the Servicer or a material adverse effect on
		the rights and obligations of the Servicer under this Agreement (including the
		Servicer’s compensation hereunder); or
	 

	 
		(C) any material representation or warranty
		by any Person within the Company Group made in this Agreement or any other
		Operative Agreement or in any report, certificate, financial statement or other
		agreement, instrument or document at any time furnished by or on behalf of any
		Person within the Company Group in connection therewith shall prove to have
		been false or misleading in any material respect when made or furnished and
		such representation or warranty shall remain false and misleading in any
		material respect and such misrepresentation or breach of warranty is reasonably
		likely to have a Material Adverse Effect on the Servicer or a material adverse
		effect on the rights and obligations of the Servicer under this Agreement
		(including the Servicer’s compensation hereunder); or
	 

	 
		(D) there shall cease to be any Aircraft
		Assets owned by any Company Group Member; or
	 

	 
		(E) the Indenture shall cease to be in full
		force and effect and no obligations of the Company to the Policy Provider or
		Policy Provider Obligations are outstanding; or
	 

	 
		 
	 

	 
		29
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
		 
	 

	 
		(F) there shall exist Competitor Control of
		the Company or Babcock & Brown Air Limited.
	 

	 
		(ii) Upon the occurrence of an event set
		forth in clause (i) of this Section 10.02(a), in addition to the right of
		the Servicer to terminate this Agreement in whole pursuant to
		Section 10.02(a)(i), the Servicer shall be entitled to terminate its
		obligations to provide the Services with respect to one or more specific
		Aircraft Assets (but less than all the Aircraft Assets) (any termination with
		respect to less than all the Aircraft Assets being a “Partial Termination”). If, upon any such Partial Termination, the
		Servicer shall elect to continue to provide Services with respect to any
		Aircraft Asset, the Servicer shall specify the Aircraft Assets in respect of
		which it intends to continue to provide Services in the Termination Notice with
		respect to the Partial Termination. All references to the expiration or
		termination of this Agreement shall mean the expiration or termination of this
		Agreement in whole and not to a Partial Termination unless expressly otherwise
		stated.
	 

	 
		(b) At any time during the term of this
		Agreement, the Company (with the prior written consent of the Policy Provider)
		or the Controlling Party shall be entitled to terminate this Agreement if (each
		of the following events, conditions or acts, a “Servicer Termination Event”):
	 

	 
		(i) Babcock & Brown International Pty
		Ltd shall cease to own, directly or indirectly, at least 50.01% of the voting
		equity of, and economic interest in, BBAM(Ireland) or BBAM(US) ; or

	 

	 
		(ii) the Servicer shall (A) fail in any
		material respect to perform any material Services in accordance with the
		Standard of Care or the Conflicts Standard and such failure shall have a
		Material Adverse Effect on the Company Group taken as a whole or a Material
		Adverse Effect on the rights and obligations of the Company Group taken as a
		whole under this Agreement; (B) fail in any material respect to perform
		any material Services which failure results in liability of the Servicer under
		its Standard of Liability and such failure shall have a Material Adverse Effect
		on the Company Group taken as a whole or a Material Adverse Effect on the
		rights and obligations of the Company Group taken as a whole under this
		Agreement or (C) perform the Services hereunder, or fail to perform such
		Services, in such a manner as to directly result in a Default Notice (pursuant
		to which the Outstanding Principal Balance of the Notes and all accrued and
		unpaid interest thereon shall become due and payable) having been issued in
		accordance with the terms of the Indenture with respect to breach of an
		Applicable Indenture Covenant set forth in Annex [    ]
		hereto; or
	 

	 
		(iii) an involuntary proceeding shall be
		commenced or an involuntary petition shall be filed in a court of competent
		jurisdiction seeking relief in respect of Babcock & Brown International Pty
		Ltd or the Servicer, or of a substantial part of the property or assets of the
		Servicer, under Title 11 of the United States Code, as now constituted or
		hereafter amended, or any other U.S. Federal or state or non-U.S. bankruptcy,
		insolvency, receivership or similar law, and such proceeding or petition shall
		continue undismissed for 60 days or an order or decree approving or ordering
		any of the foregoing shall be entered or the Servicer shall go into
		liquidation, suffer a receiver or mortgagee to take possession of all or
		substantially all of its assets or have an examiner appointed over it or if a
		petition or proceeding is presented for any of the foregoing and not discharged
		within 60 days; or
	 

	 
		(iv) Babcock & Brown International Pty
		Ltd or the Servicer shall (A) voluntarily commence any proceeding or file any
		petition seeking relief under Title 11 of the United States Code, as now
		constituted or hereafter amended, or any other U.S. Federal or state or
		non-U.S. bankruptcy, insolvency, receivership or similar law, (B) consent
		to the institution of, or fail to contest the filing of, any petition described
		in clause (iii) above, (C) file an answer 
	 

	 
		 
	 

	 
		 
	 

	 
		30
	 

	 
	 

	 

	 
		admitting the material allegations of a
		petition filed against it in any such proceeding, or (D) make a general
		assignment for the benefit of its creditors; or
	 

	 
		(v) there shall have occurred and be
		continuing an Event of Default under Section 4.01(a) of the Indenture in
		respect of the payment of interest on any Note (as defined in the Indenture)
		due to an insufficiency of funds in the Collection Account on the relevant
		date, which Event of Default (x) shall have occurred on a date on which no
		amount is available for drawing under any Eligible Credit Facility (as defined
		in the Indenture) in respect thereof and (y) shall have continued unremedied
		for 60 days; provided that, for the avoidance of doubt, payments by the
		Policy Provider under the Policy shall not be deemed to cure any such Event of
		Default for purposes of this clause (v); or
	 

	 
		(vi) an Event of Default (other than one
		referred to in clause (v) of this Section 10.02(b)) under the Indenture shall
		have occurred and, other than in respect of an Event of Default under Sections
		4.01(e) or 4.01(f) of the Indenture, a Default Notice (pursuant to which the
		Outstanding Principal Balance of the Notes and all accrued and unpaid interest
		thereon shall become due and payable) shall have been issued in accordance with
		the terms of the Indenture, and at the time of such Event of Default at least
		15% of the number of Aircraft Assets shall not be subject to Leases and each
		such Aircraft Asset shall have been off-lease and reasonably available for
		re-lease (which, for purposes of clarification, shall mean that such Aircraft
		Asset shall be in the possession or under the unfettered control of the
		Servicer, together with the related Aircraft Documents, shall be free of any
		legal prohibition on the re-leasing thereof, shall be free of Liens (other than
		Liens, if any, created pursuant to the “Related Documents” as defined
		in the Indenture or created by or at the instruction of the Servicer) and shall
		be in a condition reasonably acceptable to a potential lessee) during the
		three-month period ending on the date of such Event of Default; or
	 

	 
		(vii) the Servicer shall breach
		Section 5.04 hereof; or
	 

	 
		(viii) there shall cease to be any Aircraft
		Assets owned by any Company Group Member; or
	 

	 
		(ix) an Independent Representative shall
		have been appointed due to a conflict of interest under Section 3.02 or Section
		2.04 hereof or the Servicer shall have elected a Partial Termination under
		Section 10.2(a)(ii) hereof, in the aggregate (A) in any twelve consecutive
		months, with respect to Aircraft Assets with aggregate Base Values as of the
		Closing Date in excess of $250 million or (B) in any sixty consecutive months,
		with respect to Aircraft Assets with aggregate Base Values as of the Closing
		Date in excess of $800 million (such limits shall be proportionately adjusted,
		pro rata based on such Base Values, to the extent that Aircraft
		Assets are not delivered prior to the Delivery Expiry Date (as defined in the
		Asset Purchase Agreement)); or
	 

	 
		(x) the Servicer ceases to be actively
		involved in the aircraft leasing business (whether for aircraft owned by it or
		its Affiliates or owned by others, and without taking into account the Aircraft
		Assets).
	 

	 
		(c) (i) Each party to this Agreement
		(the “Terminating
		Party”) may, at any time during
		the term of this Agreement, by written notice (the “Termination Notice”) to the other (the “Nonterminating Party”), set forth its determination to terminate this
		Agreement pursuant to clause (a) of this Section 10.02 (in the case of the
		Servicer) or Section 10.01 or clause (b) of this Section 10.02 (in the case of
		the Company or the Policy Provider) or to provide for a Partial Termination of
		this Agreement pursuant to clause (a)(ii) of this Section 10.02 (in the case of
		the Servicer); provided that this Agreement 
	 

	 
		 
	 

	 
		 
	 

	 
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		shall not terminate until and unless a
		Replacement Servicer shall have been appointed and shall have accepted such
		appointment in accordance with and if required by Section 10.04(c);
		provided, further, that
		failure by the Terminating Party to provide such Termination Notice shall not
		affect such party’s rights under Section 10.02(a) or Section 10.01 or
		Section 10.02(b), as the case may be. Any Termination Notice shall set forth in
		reasonable detail the basis for such termination.
	 

	 
		(ii) Unless the Termination Notice is
		provided by the Company or the Policy Provider pursuant to
		Section 10.02(b)(i), (b)(iii), (b)(iv), (b)(v), (b)(vi), (b)(vii) or
		(b)(viii), or by the Servicer pursuant to Section 10.02 (a)(i)(D),
		(a)(i)(E), (a)(i)(F) or (a)(i)(G) (each a “Non-Curable Termination Event”), no later than the fifth day following the
		effectiveness of the Termination Notice (the “Effectiveness Date”), the Nonterminating Party shall advise the
		Terminating Party in writing whether the Nonterminating Party (A) intends to
		cure the basis for such termination and, if so, the action it intends to take
		to effectuate such cure or (B) does not intend to cure the basis for such
		termination; provided that the failure of the Nonterminating Party to deliver
		such notice by such day shall be deemed to constitute notice that it does not
		intend to cure the basis for termination. In the event that the Termination
		Notice is provided for a Non-Curable Termination Event or the Nonterminating
		Party notifies (or is deemed to have notified) the Terminating Party that the
		Nonterminating Party does not intend to cure the basis for such termination,
		then this Agreement shall terminate or the Partial Termination shall take
		effect, as the case may be, immediately or on such later date as the
		Terminating Party shall have indicated in the Termination Notice to the
		Nonterminating Party. In the event that the Nonterminating Party notifies the
		Terminating Party by such fifth day that it intends to cure the basis for such
		termination, then the Nonterminating Party or, in the event that the
		Nonterminating Party is the Company, each of the Company and the Policy
		Provider, shall (A) have 15 days from the Effectiveness Date to effectuate
		such cure to the reasonable satisfaction of the Terminating Party or (B) if
		such cure cannot reasonably be expected to be effectuated within such 15-day
		period and it is not a payment default, (1) demonstrate to the reasonable
		satisfaction of the Terminating Party that substantial progress is being made
		toward the effectuation of such cure and (2) effectuate such cure to the
		reasonable satisfaction of the Terminating Party no later than the thirtieth
		day following the Effectiveness Date. Upon the failure of the Nonterminating
		Party to effectuate a cure in accordance with the immediately preceding
		sentence, this Agreement shall terminate or the Partial Termination shall take
		effect, as the case may be, on the latest of (A) the day immediately following
		the expiration of such 15- or 30-day period, (B) such later date as shall be
		indicated in the Termination Notice or (C) the date as of which a Replacement
		Servicer has been engaged to perform the Services with respect to the Aircraft
		Assets and has accepted such appointment in accordance with and to the extent
		required of the provision of Section 10.04(c).
	 

	 
		Section 10.03. Resignation or
		Removal. (a) If the Servicer
		reasonably determines that directions given by any Person to the Servicer in
		accordance with this Agreement are or would be if carried out, or Services
		required to be performed under this Agreement are or would be if carried out,
		(i) unlawful under Applicable Law, (ii) likely to lead to an investigation by
		any Governmental Authority, directly or indirectly, of or relating to the
		Servicer, any of its Affiliates or the Services, (iii) directions or Services
		that would expose the Servicer to any liabilities for which adequate bond or
		indemnity has not, in the Servicer’s good faith opinion, been provided or
		(iv) directions or Services that would place the Servicer in a conflict of
		interest with respect to which, in the Servicer’s good faith opinion, the
		Servicer cannot continue to perform its obligations hereunder within the
		requirements set forth in Article III with respect to all Aircraft Assets or
		any affected Aircraft Assets, as the case may be, it may resign as the Servicer
		for all purposes under this Agreement in relation to all the Aircraft Assets
		or, at its election, any affected Aircraft Assets (but with respect to clause
		(iv) above the Servicer may resign only with respect to the affected Aircraft)
		for the duration of this Agreement, such resignation to become effective upon
		the selection by the Company of a Replacement Servicer that has been engaged to
		perform the Services with respect to all the Aircraft Assets or any affected
		Aircraft Assets, as the case may be, and that has accepted 
	 

	 
		 
	 

	 
		 
	 

	 
		32
	 

	 
	 

	 

	 
		such appointment in accordance with the
		provisions of Section 10.04(c) (it being understood that, notwithstanding
		any other provision herein to the contrary, the Servicer shall be under no
		obligation to follow such directions or perform such Services, or to provide
		any such Services, pending the selection of and acceptance by a Replacement
		Servicer).
	 

	 
		(b) If the Company shall have received a
		notice from the Servicer pursuant to Section 3.02(d) hereof to the effect that
		the Servicer cannot continue to perform its obligations hereunder within the
		requirements set forth in Section 3.02 with respect to all Aircraft Assets or
		any affected Aircraft Assets, the Company may remove the Servicer for all
		purposes under this Agreement in relation to the affected Aircraft Assets or,
		in the event that the Servicer has notified the Company that the Servicer
		cannot continue to perform its obligations with respect to all Aircraft Assets,
		all the Aircraft Assets for the duration of this Agreement, such removal to
		become effective upon the selection by the Company (or, if an Event of Default
		has occurred and is continuing, the Policy Provider) of a Replacement Servicer
		that has been engaged to perform the Services with respect to any affected
		Aircraft Assets or all the Aircraft Assets, as the case may be, and that has
		accepted such appointment in accordance with the provisions of
		Section 10.04(c) (it being understood that, notwithstanding any other
		provision herein to the contrary, the Servicer shall be under no obligation to
		perform Services with respect to the affected Aircraft Assets pending the
		selection of and acceptance by a Replacement Servicer).
	 

	 
		(c) If any Taxes that are based on or
		measured by all or a portion of the revenues, rental income or assets of any
		Person within the Company Group (other than (i) any Taxes payable by any
		such Person pursuant to the controlled foreign corporation provisions or the
		passive foreign investment company provisions of the Code or (ii) Taxes
		imposed as a result of the gross negligence or willful misconduct of any such
		Person) shall be imposed on or with respect to the Servicer or any Affiliate
		thereof, and if such Taxes are not indemnified by the Company then, provided
		that the Servicer shall have undertaken reasonable efforts (that do not involve
		any material cost to the Servicer or any Affiliate thereof) to otherwise avoid
		the imposition of such Taxes, the Servicer may resign as the Servicer for all
		purposes under this Agreement in relation to all the Aircraft Assets or, at its
		election, any Aircraft Assets the resignation with respect to which would
		reduce or eliminate such Taxes for the duration of this Agreement, such
		resignation to become effective upon the selection by the Company of a
		Replacement Servicer to perform the Services with respect to all the Aircraft
		Assets or such Aircraft Assets as the case may be, that has accepted such
		appointment in accordance with the provisions of Section 10.04(c);
		provided that pending the effectiveness of such resignation, the
		Company shall be required to post a bond, irrevocable letter of credit or other
		form of security reasonably acceptable to the Servicer to be drawn upon by the
		Servicer in the event that any such additional Taxes continue to be imposed on
		or with respect to the Servicer or any Affiliate thereof during such
		pendency.
	 

	 
		Section 10.04. Consequences of
		Expiration, Termination, Resignation or Removal.
	 

	 
		(a) Notices. (i)
		Upon the expiration or termination of this Agreement in accordance with this
		Article X, or upon the resignation by or removal of the Servicer with respect
		to the performance of the Services for any or all of the Aircraft Assets, the
		Servicer will promptly forward to the Company any notices, reports and
		communications received by it from any relevant Lessee during the one year
		immediately after expiration, termination, resignation or removal.
	 

	 
		(ii) The Company will notify promptly each
		relevant Lessee and any relevant third party (with a copy to each Rating Agency
		and the Policy Provider) of the termination, resignation or removal of the
		Servicer under this Agreement in relation to any of the Aircraft Assets and
		will request that all such notices, reports and communications thereafter be
		made or given directly to the Replacement Servicer and the Company.

	 

	 
		 
	 

	 
		 
	 

	 
		33
	 

	 
	 

	 

	 
		(b) Accrued Rights.
		A termination, resignation or removal in relation to any or all the Aircraft
		Assets shall not affect the respective rights (including as to fees) and
		liabilities of either party accrued prior to such termination in respect of any
		prior breaches hereof or otherwise.
	 

	 
		(c) Replacement Servicer. (i) Upon the expiration or termination of this Agreement
		in accordance with this Article X, or upon the resignation by or removal of the
		Servicer with respect to the performance of the Services for any or all of the
		Aircraft Assets, the Servicer will cooperate with any Replacement Servicer,
		including providing such Replacement Servicer with all information and
		documents reasonably requested.
	 

	 
		(ii) Other than at the expiration of the
		term as set forth in Section 10.01 or pursuant to a termination of the
		Agreement by the Servicer in accordance with Section 10.02(a)(i)(A) due to
		nonpayment of amounts owed to the Servicer, the Servicer may not resign or be
		removed from its obligations and duties as Servicer hereunder, nor may this
		Agreement be terminated with respect to the Servicer, in either case in whole
		or in part, unless a Replacement Servicer has been appointed by the Company or,
		if an Event of Default has occurred and is continuing, the Policy Provider, and
		has accepted such appointment, and the Company has received both a written
		confirmation from each of the Rating Agencies that no lowering or withdrawal of
		the then current Ratings of any class or subclass of Notes will result from
		such appointment and the prior written consent of the Policy Provider;
		provided that, in the event that a Replacement Servicer shall
		not have been appointed within 90 days after any termination of this Agreement
		with respect to the Servicer or any resignation by or removal of the Servicer,
		the Servicer or the Company (and, following the giving of a Default Notice
		under the Indenture, the Policy Provider or the Security Trustee) may petition
		any court of competent jurisdiction for the appointment of a Replacement
		Servicer.
	 

	 
		(d) Payment of Fees and Expenses. (i) Upon the expiration or termination of this
		Agreement in accordance with this Article X, or upon the resignation or removal
		of the Servicer with respect to the performance of the Services for any
		Aircraft Asset, so long as the Servicer is continuing to perform any of the
		Services, the company shall continue to pay Servicing Fees and reimbursable
		Aircraft Asset Expenses to the Servicer until a Replacement Servicer shall have
		been appointed and shall have accepted such appointment in accordance with the
		provisions of Section 10.04(c).
	 

	 
		(ii) If a Replacement Servicer is appointed
		with respect to any Aircraft Asset in accordance with Section 10.04(c) and such
		Aircraft Asset is sold by any Person within the Company Group to a customer to
		whom the Servicer had been actively engaged in marketing such Aircraft Asset
		and with whom the Servicer had been engaged in substantive discussions at any
		time during the three-month period prior to the appointment and acceptance of
		such Replacement Servicer, the Servicer shall be paid Sales Fees in respect of
		such Aircraft Asset as if the Servicer had arranged for the sale of such
		Aircraft Asset. Following any such appointment of a Replacement Servicer, the
		Servicer will, upon the request of the Company, provide the Company with a list
		of customers with respect to which the Servicer had been actively engaged in
		marketing such Aircraft Asset and with which the Servicer had been engaged in
		substantive discussions at any time during such three-month period. Such list
		shall be treated as confidential by the Company and shall not be disclosed to
		any Person other than the Company or the Administrative Agent (including
		officers, directors, employees and agents), or used for any purpose other than
		as a basis for determining any Sales Fees payable to the Servicer pursuant to
		the first sentence of this Section 10.04(d)(ii).
	 

	 
		(e) Transition. Upon
		the expiration or termination of this Agreement in accordance with this Article
		X, or upon the resignation or removal of the Servicer with respect to the
		performance of the Services for any Aircraft Asset, the Servicer shall promptly
		return the originals (and, if there are no originals, copies) within its
		possession of all Aircraft Assets Related Documents to the Company and shall
		provide the Company with such access to other nonconfidential, nonproprietary
		documentation and 
	 

	 
		 
	 

	 
		 
	 

	 
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		information (exclusive of internal
		correspondence, approval materials, internal evaluations or similar
		documentation or information) generated as part of the performance of the
		Services to any Person within the Company Group (and, upon the request by the
		Company and to the extent practicable, copies thereof) within its possession as
		is reasonably necessary to the conduct of the business of any Person within the
		Company Group and the services to be performed by a Replacement Servicer in
		connection therewith.
	 

	 
		Section 10.05. Survival.
		Notwithstanding any termination or the expiration of this Agreement, (a) the
		obligations of the Company, the Policy Provider and the Security Trustee under
		Sections 2.03(g), 2.03(i), 2.03(j), 2.04, 2.05(a), 2.05(c), 2.05(d), 2.05(f),
		2.05(g), 2.05(h), 3.03, 3.04, 6.06 and 7.03(f), Article IX, Sections 10.04 and
		10.05, Article XI and Sections 13.01 and 13.03 of this Agreement and Section
		2.2(b) of Schedule 2.02(a) to this Agreement and the Servicer’s
		obligations under Section 10.04 and Article XI shall survive such termination
		or expiration, as the case may be, and (b) the representations and warranties
		contained in Article IV and in Section 2.02(g) shall survive and remain in full
		force and effect until the third anniversary of the date on which this
		Agreement shall have expired or terminated.
	 

	 
		ARTICLE XI
	 

	 
		Indemnification
	 

	 
		Section 11.01. Indemnity.
		(a) Notwithstanding anything to the contrary set forth herein (other than
		Section 2.03(m)) or in any other Operative Agreement, the Company does hereby
		assume liability for, and does hereby agree to indemnify and hold harmless on
		an After-Tax Basis each of the Indemnified Parties from, any and all Losses
		that may be imposed on, incurred by or asserted against any Indemnified Party,
		directly or indirectly, arising out of, in connection with or related to (i)
		the Servicer’s performance under this Agreement or from errors in judgment
		or omissions by the Servicer under this Agreement; provided that
		such indemnity shall not apply to the extent that such Losses are finally
		adjudicated to have been directly caused by (x) the fraud, deceit, willful
		misconduct or gross negligence of the Servicer or its directors, officers or
		employees (or a Servicer Delegate) in respect of its obligation to apply the
		Standard of Care or the Conflicts Standard in respect of its performance of the
		Services or (y) any representation or warranty by the Servicer set forth in
		Section 4.10 or 4.11 having proven to be false on the date hereof; (ii) any
		Indemnified Parties’ involvement (or alleged involvement) in connection
		with the structuring or implementation of any aspect of the transactions
		contemplated by the Final Prospectus; (iii) without limiting, and subject to,
		the provisions of clause (y) above, any Aircraft Assets and (iv) except as
		expressly provided to be the obligation of the Servicer in Section 2.03(m), the
		offering or sale of the Notes, the securities of Babcock & Brown Air
		Limited or any other debt or equity securities or the obtaining of any loans by
		the Company or any of its Affiliates, or any other Offerings, including any
		Losses to which any Indemnified Party may become subject, under the Securities
		Act of 1933, the Securities Exchange Act of 1934 or other Federal or state or
		non-U.S. statutory law or regulation, at common law or otherwise, including any
		Loss that arises out of or is based upon: (A) any untrue statement or alleged
		untrue statement of a material fact contained in any Prospectus or in any
		amendment thereof or supplement thereto or in any other document filed with the
		United States Securities and Exchange Commission, or (B) the omission or
		alleged omission to state therein a material fact required to be stated therein
		or necessary to make the statements therein not misleading.
	 

	 
		(b) Each Indemnified Party agrees to give
		the Company prompt notice of any action, claim, demand, discovery of fact,
		proceeding or suit for which the applicable Indemnified Party intends to assert
		a right to indemnification under this Agreement; provided that
		failure to give such notification shall not affect such Indemnified
		Party’s entitlement to indemnification under this Section 11.01 unless and
		only to the extent such failure results in actual material prejudice to the
		Company or any other Person within the Company Group.
	 

	 
		 
	 

	 
		 
	 

	 
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		Section 11.02. Procedures for
		Defense of Claims.
	 

	 
		(a) If a Third Party Claim is made against
		any Indemnified Party, the applicable Indemnified Party shall promptly notify
		the Company in writing of such claim (which notice shall include all relevant
		information reasonably necessary for the Company to understand such claim which
		is in the possession or under the control of, or which can with reasonable
		commercial efforts be obtained by, such Indemnified Party at the time of such
		notice, subject to Applicable Laws and confidentiality obligations), and the
		Servicer or the Company (if so directed by the applicable Indemnified Party and
		if so accepted by the Company) will undertake the defense thereof. The failure
		to notify the Company promptly shall not relieve the Company of its obligations
		under this Article XI unless and only to the extent that such failure results
		in actual material prejudice to the Company or any other Person within the
		Company Group.
	 

	 
		(b) If so directed by the applicable
		Indemnified Party and if accepted by the Company, the Company shall within 30
		days, undertake the conduct and control, through counsel of its own choosing
		(subject to the consent of the applicable Indemnified Party, such consent not
		to be unreasonably withheld or delayed) and at the Company’s risk and
		expense, the good faith settlement or defense of such claim, and the applicable
		Indemnified Party shall cooperate fully with the Company in connection
		therewith; provided that (i) at all times the applicable Indemnified Party
		shall be entitled to participate in such settlement or defense through counsel
		chosen by it, and the fees and expenses of such counsel shall be borne by the
		applicable Indemnified Party, and (ii) the Company shall not be entitled to
		settle such claims unless it shall have confirmed in writing its obligation to
		indemnify the applicable Indemnified Party for the liability asserted in such
		claim. The Company shall obtain the written consent of the applicable
		Indemnified Party prior to ceasing to defend, settling or otherwise disposing
		of such claim if as a result thereof such Indemnified Party would become
		subject to injunctive, declaratory or other equitable relief or the business of
		such Indemnified Party would be materially adversely affected in any
		manner.
	 

	 
		(c) So long as the Company is reasonably
		contesting any such claim in good faith, the applicable Indemnified Party shall
		fully cooperate with the Company in the defense of such claim as is reasonably
		required by the Company. Such cooperation shall include the retention and the
		provision of records and information, which are reasonably relevant to such
		Third Party Claim and making directors, officers and employees available on a
		mutually convenient basis to provide additional information. Neither the
		Servicer nor any Indemnified Party shall settle or compromise any claim without
		the written consent of the Company unless the Servicer or the applicable
		Indemnified Party agrees in writing to forego any and all claims for
		indemnification from the Company with respect to such claims.
	 

	 
		(d) If the Company, within 10 days after
		notice of any such claim, does not agree to defend such Third Party Claim as
		directed by the applicable Indemnified Party, such Indemnified Party will have
		the right to undertake the defense, compromise or settlement of such Third
		Party Claim.
	 

	 
		Section 11.03. Reimbursement of
		Costs. The costs and expenses,
		including fees and disbursements of counsel (except as provided in clause (i)
		of the proviso to the first sentence of Section 11.02(b)) and expenses of
		investigation, incurred by any Indemnified Party in connection with any Third
		Party Claim, shall be reimbursed on a monthly basis by the Company upon the
		submission of evidence reasonably satisfactory to the Company that such
		expenses have been incurred, without prejudice to the Company’s right to
		contest the Indemnified Party’s right to indemnification and subject to
		refund in the event that the Company is ultimately held not to be obligated to
		indemnify the Indemnified Party.
	 

	 
		Section 11.04. Waiver of
		Certain Claims; Special Indemnity. The
		Company does hereby (a) assume liability for and agree to indemnify and hold
		harmless on an After-Tax-Basis, in accordance with the provisions of this
		Article XI, each of the Indemnified Parties from any and all Losses that may be
		imposed on, incurred by or asserted against any Indemnified Party directly or
		indirectly arising out of, in connection with or related to any claims of
		shareholders or creditors of any Person within the Company Group or of Babcock
		& Brown Air Limited and any claims (“Shadow Director/Related Company Claims”) that may be made by or on behalf of any Person
		against any Indemnified Party which are based
	 

	 
		 
	 

	 
		 
	 

	 
		36
	 

	 
	 

	 

	 
		on any Indemnified Party being a shadow
		director of, or a related company to, any Person within the Company Group under
		applicable Irish law or which are based on any similar concept under any other
		Applicable Law; (b) waive, and shall cause each other Person within the
		Company Group and Babcock & Brown Air Limited to waive, any and all Shadow
		Director/Related Company Claims that may be made by or on behalf of any Person
		within the Company Group against any Indemnified Party, (c) agree not to sue,
		and to cause each other Person within the Company Group and Babcock & Brown
		Air Limited not to sue, upon any such Shadow Director/Related Company Claims,
		and (d) agree that any amounts awarded to or received by any Person within the
		Company Group or of Babcock & Brown Air Limited arising out of or related
		to any such Shadow Director/Related Company Claims (whether such claims were
		made by or on behalf of any Person within the Company Group or of International
		Pty Ltd or by a third party (including any liquidator)) shall be paid over to
		the applicable Indemnified Party.
	 

	 
		Section 11.05. Continuing
		Liability under Other Agreements. The
		Servicer understands, acknowledges and agrees that the intent of the parties
		hereunder is that any limitation on the liability of the Servicer under this
		Agreement, whether under this Article XI, Article III or otherwise, is not
		intended to and shall not be construed to limit the liability of any Person
		selling any Aircraft Assets under the Asset Purchase Agreement or the
		liability, if any, of any seller or other party to the initial purchasers under
		a separate indemnification agreement, and that any such liability under such
		agreement shall not give rise to any claim for indemnification in favor of the
		Servicer or any of its Affiliates under this Agreement.
	 

	 
		ARTICLE XII
	 

	 
		Assignment and Delegation
	 

	 
		Section 12.01. Assignment and
		Delegation. (a) No party to
		this Agreement shall assign or delegate this Agreement or all or any part of
		its rights or obligations hereunder to any Person without the prior written
		consent of all other parties hereto; provided that
		(i) the Servicer may delegate, subject to the terms hereof, any portion of but
		not all its obligations to any Affiliate of the Servicer (a
		“Servicer Delegate”); (ii) the foregoing provisions on assignment and
		delegation shall not limit the ability of the Servicer to contract with any
		Person, including any of its Affiliates, for services in respect of Aircraft
		Assets subject to the terms hereof; and (iii) the Company may assign its
		rights hereunder to the Security Trustee under the Security Trust Agreement
		and, without in any way releasing the Company from any of its duties or
		obligations hereunder, the Servicer consents to such assignment, it being
		understood that neither the Company’s assignment nor the Servicer’s
		consent to such assignment will affect the Servicer’s rights and
		obligations hereunder, subject the Servicer to any liability to which it would
		not otherwise be subject to hereunder nor modify in any respect the contract
		rights of the Servicer hereunder. Subject to the Security Trustee’s
		compliance with the provisions of this Agreement in exercising any such rights,
		the Servicer and each member of the Company Group agrees that all of the
		Company Group’s rights, including the right of the Company or any agent on
		its behalf to give notices or instructions to the Servicer under this
		Agreement, hereunder may be exercised by the Security Trustee to the exclusion
		of any member of the Company Group following notice to the Servicer by the
		Trustee or the Policy Provider of the occurrence and continuance of an Event of
		Default (whether or not other remedial action, such as the giving of a Default
		Notice, has been taken). Any assignment or delegation pursuant to this Section
		12.01(a) shall not require any approval pursuant to Section 7.04 and no
		delegation or contract pursuant to clause (i) or (ii) above shall release the
		Servicer from any of its obligations hereunder.
	 

	 
		(b) Without limiting the foregoing, any
		Person who shall become a successor by assignment or otherwise of the Company
		or the Servicer (or any of their respective successors) in accordance with this
		Section 12.01 shall be required as a condition to the effectiveness of any such
		assignment or other arrangement to become a party to this Agreement;
		provided that the Security Trustee 
	 

	 
		 
	 

	 
		 
	 

	 
		37
	 

	 
	 

	 

	 
		shall not be required to become a party to
		this Agreement solely by reason of the execution and delivery of the Security
		Trust Agreement.
	 

	 
		(c) BBAM(US) and BBAM(Ireland) shall be
		co-servicers under this Agreement. Any action required or permitted to be taken
		hereunder by the Servicer may be taken by either BBAM(US) or BBAM(Ireland), as
		they shall agree from time to time; provided that
		BBAM(US) and BBAM(Ireland) shall be jointly and severally liable for any and
		all obligations required to be performed by, and each shall have all rights of,
		the Servicer hereunder and all representations and warranties of the Servicer
		are made jointly and severally; and provided,
		further, that all information required to be provided by the
		Servicer to the Company, the Administrative Agent, the Cash Manager, the Policy
		Provider and the Security Trustee, and any consent of, approval from or notice
		to the Servicer shall be delivered, given or made on behalf of the Servicer by
		and through BBAM(Ireland) and BBAM(US) agrees to be bound by any acts or
		omissions to act of BBAM(Ireland).
	 

	 
		ARTICLE XIII
	 

	 
		Miscellaneous
	 

	 
		Section 13.01. Documentary
		Conventions. The Documentary
		Conventions shall govern this Agreement.
	 

	 
		Section 13.02. Power of
		Attorney. The Company shall and shall
		cause each other Person within the Company Group, to appoint the Servicer and
		its successors, and its permitted designees and assigns, as their true and
		lawful attorney-in-fact pursuant to the form of Power of Attorney attached as
		Schedule 13.02 to this Agreement (with such modifications as are necessary
		under the laws of the jurisdictions in which such Persons are organized). All
		services to be performed and actions to be taken by the Servicer pursuant to
		this Agreement shall be performed for and on behalf of the Company. The
		Servicer shall be entitled to seek and obtain from the Company (and/or any
		other Person within the Company Group as appropriate) a power of attorney in
		respect of the execution of any specific action as the Servicer deems
		appropriate.
	 

	 
		Section 13.03. Reliance. The
		Servicer shall be entitled to rely on the provisions of this Agreement,
		including Schedule 2.02(a), any Approved Budget, any direction of, or
		certification by, the Company or its board of directors (or any duly appointed
		committee thereof), the Administrative Agent or the Cash Manager, to the extent
		set forth in Section 2.02(c), the Security Trustee and the Transaction Approval
		Requirements, in carrying out its obligations hereunder, and the Company hereby
		waives any rights to challenge any action taken by the Servicer that is
		consistent with the provisions of this Agreement (including the Standard of
		Care and the Conflicts Standard), including Schedule 2.02(a), any Approved
		Budget, any such direction or certification or the Transaction Approval
		Requirements or which has been approved by the board of directors of the
		Company or a duly appointed committee thereof.
	 

	 
		Section 13.04. Certain
		Information. The parties hereto agree
		(a) not to provide to each other competitively sensitive information, other
		than information required to be provided by the Servicer or the Company, as the
		case may be, under contractual arrangements existing on the date hereof (or
		successor arrangements thereto), (b) that any party receiving such information
		shall take such action as shall be necessary to maintain the confidentiality
		thereof and (c) to establish appropriate procedures and protocols to ensure
		compliance with the agreements in clauses (a) and (b). Similarly, the
		Company’s board of directors and Babcock & Brown Air Limited’s
		board of directors and Babcock & Brown Air Limited itself on behalf of
		itself and its employees shall agree (x) not to provide competitively sensitive
		information which it may receive from the Servicer pursuant to this Agreement
		to any third party and (y) not to use any such competitively sensitive
		information for any purpose other than its duties and responsibilities as a
		director or shareholder of the Company or director or employee of Babcock &
		Brown 
	 

	 
		 
	 

	 
		 
	 

	 
		38
	 

	 
	 

	 

	 
		Air Limited. In addition, to the extent that
		any director of the Company or Babcock & Brown Air Limited or employee of
		Babcock & Brown Air Limited is involved in any other business activities
		that are competitive with the Servicer or any Affiliate thereof, the Company
		must screen such Person from receipt of competitively sensitive
		information.
	 

	 
		Section 13.05. Original
		Aircraft. In the event that in the
		Servicer’s reasonable judgment the application of the terms of any
		provision hereunder in respect of any Aircraft Asset would not be appropriate
		prior to the title to such Aircraft Asset being transferred to a Person within
		the Company Group, then the Servicer shall take such action in respect of such
		Aircraft Asset as is commercially reasonable or appropriate in such context or
		circumstances. The Servicer shall make a good faith effort to consult with the
		Company prior to taking any action in reliance upon this Section 13.05, taking
		into account timing and other relevant considerations; provided that
		any failure to so consult with the Company will not constitute a default under
		or violation of this Agreement.
	 

	 
		Section 13.06. Limited
		Recourse. (a) In the event that the
		assets of the Persons in the Company Group are insufficient, after payment of
		all other claims, if any, ranking in priority to the claims of the Servicer
		hereunder (it being agreed that there are no claims ranking in priority to
		those of the Servicer), to pay in full such claims of the Servicer in
		accordance with the Indenture and the Security Trust Agreement, then the
		Servicer shall have no further claim against the Persons in the Company Group
		in respect of any such unpaid amounts.
	 

	 
		(b) To the extent permitted by Applicable
		Law, no recourse under any obligation, covenant or agreement of any party
		contained in this Agreement shall be had against any shareholder, officer or
		director of the relevant party as such, by the enforcement of any assessment or
		by any proceeding, by virtue of any statute or otherwise; it being expressly
		agreed and understood that this Agreement is a corporate obligation of the
		relevant party and no personal liability shall attach to or be incurred by the
		shareholders, officers, agents or directors of the relevant party as such, or
		any of them under or by reason of any of the obligations, covenants or
		agreements of such relevant party contained in this Agreement, or implied
		therefrom, and that any and all personal liability for breaches by such party
		of any of such obligations, covenants or agreements, either at law or by
		statute or constitution, of every such shareholder, officer, agent or director
		is hereby expressly waived by the other parties as a condition of and
		consideration for the execution of this Agreement. For purposes of
		clarification, the foregoing applies only to Persons acting in their capacity
		as such shareholder, officer, agent or director and not in any other capacity
		and does not extend to the benefit of the Person for which such Person serves
		as shareholder, officer, agent or officer.
	 

	 
		Section 13.07. The Company
		Group Members. Each Person in the
		Company Group that joins as a party to this Agreement hereby agrees to be bound
		by and perform the obligations hereunder of a Person in the Company Group, and
		if any such Person is a trust of which the Company or another Person in the
		Company Group is the beneficiary, The Company hereby instructs and authorizes
		such trust to execute this Agreement, and perform such obligations (and the
		Policy Provider, and the Security Trustee by its acceptance of the assignment
		provided above, consent thereto to the extent applicable).
	 

	 
		[Remainder of page intentionally left
		blank.]
	 

	 
		 
	 

	 
		 
	 

	 
		39
	 

	 
	 

	 

	 
		IN WITNESS WHEREOF, this Agreement has been
		duly executed on the date first written above.
	 

	 
		 
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  BABCOCK & BROWN AIRCRAFT
				  MANAGEMENT LLC
				

			 
	 	 	 
	
				
				

			 	
				
				   
				

			 	
				
				  By: 
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name:

				  Title:
				

			 

 

	 
		 
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  BABCOCK & BROWN AIRCRAFT
				  MANAGEMENT (EUROPE) LTD
				

			 
	 	 	 
	
				
				

			 	
				
				   
				

			 	
				
				  By: 
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name:

				  Title:
				

			 

 

	 
		 
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  BABCOCK & BROWN AIR FUNDING I
				  LIMITED
				

			 
	 	 	 
	
				
				

			 	
				
				   
				

			 	
				
				  By: 
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name:

				  Title: Chairman of Board of Directors
				

			 

 

	 
		 
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  AMBAC ASSURANCE CORPORATION
				

			 
	 	 	 
	
				
				

			 	
				
				   
				

			 	
				
				  By: 
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name:

				  Title: 
				

			 

 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		Aircraft Assets Services
	 

	 
		The provision of the Services set forth in
		this Schedule 2.02(a) will be subject in all cases to such approval as may be
		required or such limitations as may be imposed pursuant to Section 7.04(a) of
		the Servicing Agreement and the provisions of this Schedule 2.02(a) shall be
		deemed to be so qualified. All Services set forth in this Schedule 2.02(a)
		shall be performed in accordance with and subject to the Standard of Care, the
		Conflicts Standard and the Standard of Liability.
	 

	 
		Unless otherwise defined herein, all
		capitalized terms used in this Schedule 2.02(a) have the meanings assigned to
		such terms in Appendix A to the Servicing Agreement or, in the case of certain
		defined terms used in Annex 1 or 2 to the Servicing Agreement or Schedule
		2.02(a)(i) to the Servicing Agreement, in the copy of the Indenture delivered
		to the Servicer pursuant to Section 2.1. The Company shall provide to the
		Servicer any instructions the Servicer may require in the interpretation of
		Annexes 1 and 2 to the Servicing Agreement on which instructions the Servicer
		shall be entitled to rely in all respects.
	 

	 
		SECTION 1. Lease Services. Subject to
		the availability of adequate funding to comply with the obligations under this
		Schedule 2.02(a) and the Servicing Agreement with respect to Services that
		require such funding:
	 

	 
		SECTION 1.1. Collections and Disbursements. In connection with each Lease of an Aircraft Asset
		under which any Person within the Company Group is the lessor, the Servicer
		will:
	 

	 
		(a) invoice the Lessee or otherwise arrange,
		as the Servicer deems reasonably appropriate, on behalf of such Person within
		the Company Group, for all payments due from the Lessee, including Rents,
		Deposits, Utilization Rent, Aircraft redelivery payments, late payment charges
		and any payments in respect of Taxes and other payments (including technical,
		engineering, insurance and other recharges) due under the relevant Lease,
		direct the Lessee, subject to the terms of the Lease, to make such payments to
		such account designated as the “Rental Account” in Schedule 4.03 to
		the Servicing Agreement (the relevant details of such Rental Account being set
		forth in such Schedule) or to such other accounts as specified in writing by
		the Cash Manager and enforce the rights and remedies of the Lessor under
		applicable Lease with respect to payment thereof in the event of a nonpayment
		by the relevant due date;
	 

	 
		(b) review from time to time, as deemed
		necessary by the Servicer, the level of Rents, Deposits, Utilization Rent and
		other amounts that may be adjusted under a Lease (and to the extent they are
		provided to be adjusted pursuant to the provisions of such Lease) and shall
		propose to the relevant Lessee and/or make such adjustments to the Rents,
		Deposits, Utilization Rent and other amounts as are required or that the
		Servicer otherwise deems reasonably appropriate considering, among other
		things, the terms of the relevant Lease and practices that the Servicer
		believes are prevalent in the operating lease market;
	 

	 
		(c) subject to the timely receipt by the
		Servicer from the Cash Manager of the information related to the receipt of all
		payments made pursuant to any Lease into any Bank Account, maintain appropriate
		records regarding payments under the Leases;
	 

	 
		(d) subject to the terms of any applicable
		Aircraft Assets Related Document, take such actions as are necessary to apply
		any payments of any type received from any Lessee, or to make any payments
		payable to a Lessee, on a basis consistent with the directions of such Lessee
		and, to the extent that any such payments are made to an account other than the
		account to which such payment should have been directed pursuant to such
		Lessee’s direction, to take such further 
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		SCHEDULE 2.02(a) TO
SERVICING AGREEMENT
	 

	 
		 
	 

	 
		actions as are necessary to give effect to
		such directions; provided that,
		in the event a Lessee is in default under a Lease or a Lessee is subject to a
		voluntary or involuntary bankruptcy, liquidation, receivership or other similar
		proceeding, the Servicer will advise the Company of how funds received from
		such Lessee were applied to the extent that such funds were applied to leases
		relating to both Aircraft Assets and Other Assets; and
	 

	 
		(e) provide for the safekeeping and
		recording of any letters of credit, guarantees or other credit support (other
		than cash and cash equivalents) held as part of Deposits or Utilization Rent
		and the timely renewal or drawing on or disbursement thereof as provided under
		the applicable Lease or other Aircraft Assets Related Document or otherwise in
		accordance with Section 1.5 of this Schedule 2.02(a).
	 

	 
		SECTION 1.2. Maintenance. The
		Servicer will perform the following technical services relating to the
		maintenance of the Aircraft Assets:
	 

	 
		(a) monitor the performance of maintenance
		obligations by Lessees under all Leases relating to the Aircraft Assets by
		including the Aircraft Assets in the Servicer’s technical audit program,
		which program entails, to the extent feasible in a reasonable commercial manner
		in the ordinary course of business under the terms of the applicable Lease, the
		review of a Lessee’s technical recordkeeping procedures, the collection of
		summary maintenance data on each Aircraft Asset and, to the extent the Servicer
		deems reasonably necessary or appropriate, physical inspection of the Aircraft
		Assets on a sampling basis consistent with procedures employed from time to
		time by the Servicer and its Affiliates with respect to their own or other
		serviced Aircraft;
	 

	 
		(b) confirm the air authority approval
		status of a Lessee’s proposed maintenance program and proposed maintenance
		performer under any new Lease of any Aircraft Assets under which any Person
		within the Company Group is, or following the Delivery of the related Aircraft
		Asset will be, the lessor;
	 

	 
		(c) in connection with a termination or
		expiration of a Lease under which any Person within the Company Group is, or
		following the Delivery of the related Aircraft Asset will be, the
		lessor:
	 

	 
		(i) arrange for the appropriate technical
		inspection of the Aircraft Asset for the purpose of determining if the
		re-delivery conditions under the Lease have been satisfied;
	 

	 
		(ii) maintain a record of all material
		reports and other written materials (including any relevant reconciliation
		statements) received or generated by the Servicer in connection with such
		inspection and provide reasonable access to such reports and written materials
		to the relevant Persons within the Company Group;
	 

	 
		(iii) on the basis of the final inspection
		and available records, determine whether the Lessee has complied with all
		required airworthiness directives and mandatory modifications, and establish
		the status of compliance with Airframe and Engine manufacturer service
		bulletins and Lessee-originated modifications undertaken, in each case with
		respect to the Aircraft Asset and as required by the Lease;
	 

	 
		(iv) (A) determine whether the Lessee has
		satisfied the re-delivery conditions applicable to the Aircraft Asset specified
		in the Lease and negotiate any modifications, repairs, refurbishments,
		inspections or overhauls to or compromises of such conditions 
	 

	 
		 
	 

	 
		 
	 

	 
		SCHED 2.02(a)-2
	 

	 
		 
	 

	 
	 

	 

	 
		SCHEDULE 2.02(a) TO
SERVICING AGREEMENT
	 

	 
		 
	 

	 
		that the Servicer deems reasonably necessary
		or appropriate, (B) determine the application of any available Deposits,
		Utilization Rent or other payments under the Lease and (C) maintain a
		record of the satisfaction of such conditions and accept re-delivery of the
		Aircraft Asset; and
	 

	 
		(v) determine the need for, procure and
		monitor (as provided in clause (a) above) the performance of any maintenance
		and refurbishment of the Aircraft Asset upon re-delivery, including compliance
		with applicable airworthiness directives, service bulletins and other
		modifications which the Servicer may deem reasonably necessary or appropriate
		for the marketing of the Aircraft Asset;
	 

	 
		(d) consider and, to the extent the Servicer
		deems reasonably necessary or appropriate, approve any Lessee-originated
		modifications to any Aircraft Asset submitted by any Lessee for
		approval:
	 

	 
		(i) to the extent authorized by the terms of
		the relevant Lease; or
	 

	 
		(ii) which the Servicer reasonably
		determines would not result in a material diminution in value of the Aircraft
		Asset or the interests of any Person within the Company Group; or
	 

	 
		(iii) which are approved by the
		Company;
	 

	 
		(e) determine the amount (if any) that the
		relevant Person within the Company Group is obliged to contribute pursuant to
		the provisions of a Lease (taking into account where applicable the amount of
		Utilization Rent paid with respect to such Lease and the receivables position
		of the related Lessee) to the cost of complying with any modification
		requirements, maintenance contribution requirements, redelivery condition
		payment requirements, airworthiness directives and similar requirements;
		and
	 

	 
		(f) arrange and supervise appropriate
		storage and any required on-going maintenance of any Aircraft Asset, at the
		expense of the relevant Person within the Company Group, following termination
		of a Lease for any reason and re-delivery of the Aircraft Asset thereunder and
		prior to delivery of such Aircraft Asset to a new lessee or purchaser, on the
		most economic basis reasonably available and appropriate under the
		circumstances.
	 

	 
		The Servicer shall generally provide the
		technical/maintenance services set forth in this Section 1.2 through the use of
		its own staff where it shall deem appropriate and shall utilize third parties
		to provide such technical/maintenance services where it shall deem
		appropriate.
	 

	 
		SECTION 1.3. Insurance.
	 

	 
		(a) The Servicer will provide the following
		insurance services:
	 

	 
		(i) negotiate the insurance provisions of
		any proposed lease or other agreement affecting any of the Aircraft Assets,
		with such provisions to include such minimum coverage amounts with respect to
		hull and liability insurance as are set forth on Annex 1 to the Servicing
		Agreement; provided that, if an agreement with respect to hull or liability
		insurance, if any, cannot be reached with any particular Lessee pursuant to
		which such Lessee will procure and pay the premiums for such insurance in
		amounts consistent with the foregoing, the Servicer may still cause the
		applicable Person in the 
	 

	 
		 
	 

	 
		 
	 

	 
		SCHED 2.02(a)-3 
	 

	 
		 
	 

	 
	 

	 

	 
		SCHEDULE 2.02(a) TO
SERVICING AGREEMENT
	 

	 
		 
	 

	 
		Company Group to enter into such proposed
		lease or other agreement, but in which case the Servicer shall arrange for any
		shortfall in the required amount of insurance to be covered, at the expense of
		the Company, pursuant to arrangements entered into pursuant to clauses (iii)
		and (v) of this Section 1.3(a);
	 

	 
		(ii) monitor the performance of the
		obligations of Lessees relating to insurance under Leases of any Aircraft
		Assets and, where practicable, ensuring that appropriate evidence of insurance
		exists with respect to any Aircraft Assets maintenance providers;
	 

	 
		(iii) source and arrange an aviation
		insurance program covering the Aircraft Assets (it being understood that such
		program may be arranged pursuant to a group policy covering both Aircraft
		Assets and Other Assets the premiums in respect of which are shared equitably
		based on the amount of insurance obtained and premium paid thereunder with
		respect to the covered Aircraft Assets, on the one hand, and the Other Assets,
		on the other hand), with such minimum coverage amounts with respect to hull and
		liability insurance as are set forth on Annex 1 to the Servicing
		Agreement;
	 

	 
		(iv) procure such repossession insurance for
		Aircraft Assets registered, habitually based in, or subject to a Lease with a
		Lessee domiciled in, one of those countries listed on Annex 1 to the Servicing
		Agreement and with such minimum coverage amounts with respect to hull insurance
		as are set forth on Annex 1 to the Servicing Agreement; provided that,
		if an agreement with respect to repossession insurance, if any, cannot be
		reached with any particular Lessee pursuant to which such Lessee will pay the
		premiums for such insurance in amounts consistent with the foregoing, the
		Servicer may still cause the applicable Person in the Company Group to enter
		into such proposed lease or other agreement, but in which case the Servicer
		shall pay any premiums to the extent unpaid by the Lessee, at the expense of
		the Company; and
	 

	 
		(v) if at any time the Servicer becomes
		aware that any Aircraft Asset ceases to be insured or any Person within the
		Company Group requires insurance coverage relating to an Aircraft Asset for any
		reason, including default by the Lessee or an Aircraft Asset not being leased
		upon termination of a Lease, the Servicer will procure, at the expense of the
		relevant Person within the Company Group, alternative insurance coverage, with
		such minimum coverage amounts with respect to hull and liability insurance as
		are set forth on Annex 1 to the Servicing Agreement;
	 

	 
		provided that, in each case where insurance is to be obtained by
		the Servicer, such insurance is reasonably available in the relevant insurance
		market and the Servicer shall have used reasonable sourcing techniques prior to
		obtaining such insurance; and, provided,
		further, that the Servicer shall not obtain or shall terminate,
		as the case may be, any such insurance (except liability insurance and war risk
		liability insurance in favor of the Servicer and its Affiliates) with respect
		to which the Servicer has been so instructed by the Company (and the Company
		has delivered to the Servicer a copy of the related Policy Provider consent as
		required by the Indenture) because the Company has determined that the rates
		for such insurance are not commercially reasonable. The foregoing provisions
		shall apply, mutatis mutandis, to any
		arrangements in which Persons other than Lessees have possession of, or
		insurance responsibility for, an Aircraft Asset (including in the event that an
		Aircraft Asset has been sold pursuant to a mortgage, deferred payment agreement
		or any similar arrangement).
	 

	 
		 
	 

	 
		 
	 

	 
		SCHED 2.02(a)-4
	 

	 
		 
	 

	 
	 

	 

	 
		SCHEDULE 2.02(a) TO
SERVICING AGREEMENT
	 

	 
		 
	 

	 
		(b) The Servicer may engage, on behalf of,
		and for the benefit and at the expense of, any Person within the Company Group,
		one or more Advisers and Brokers with respect to insurance matters, each of
		whom:
	 

	 
		(i) may also act in the same or similar
		capacities for the Servicer and its Affiliates;
	 

	 
		(ii) shall take directions from the Servicer
		(as authorized by the Servicing Agreement) in respect of the Aircraft Assets;
		and
	 

	 
		(iii) may act on behalf of any Person within
		the Company Group in respect of any of their other insurance requirements, if
		requested to do so by any such Person within the Company Group.
	 

	 
		The Servicer shall be entitled to rely
		reasonably on the actions taken by or recommendations of any such Adviser and
		Broker, subject to the terms of the relevant Lease and the requirements of the
		Servicing Agreement. The Servicer will obtain such advice from the relevant
		Adviser or Broker or both, as it deems appropriate, as to the reasonableness of
		any insurance arrangements proposed by a Lessee, and as to the levels and types
		of insurance to be provided by a Lessee or to be arranged by the Servicer, for
		any of the Aircraft Assets. Except to the extent the Servicer can effect more
		cost efficient coverage under fleet or group policies, the Servicer will use
		reasonable commercial efforts to maintain separate and distinct customer
		relationships with such Advisers or Brokers when acting on behalf of any Person
		within the Company Group, on the one hand, and when acting on its own behalf or
		on behalf of other Persons not within the Company Group whose Aircraft Assets
		it manages, on the other hand. Any such insurance obtained by the Servicer
		shall include as the named insured thereunder, such Persons as are required to
		be designated as named insureds pursuant to paragraph 6 of Annex 1 to the
		Servicing Agreement.
	 

	 
		SECTION 1.4. Administration.
		The Servicer shall administer each Lease in accordance with its terms and as
		otherwise specifically addressed herein. In connection with any Person within
		the Company Group entering into a Future Lease, the Servicer shall, on behalf
		of such person, timely make the necessary filings and obtain the necessary
		opinions as required under Section [    ]of the Security
		Trust Agreement and Section 5.03(f) of the Indenture, respectively.
	 

	 
		SECTION 1.5. Enforcement. The
		Servicer shall take steps to enforce the obligations to the relevant Person
		within the Company Group of the Lessee and any other parties under each Lease
		and under any ancillary agreements thereto delivered by the Company to the
		Servicer (including any guarantees of the obligations of the Lessee). Following
		any default by a Lessee under the applicable Lease, the Servicer will take all
		such steps as it deems reasonably necessary or appropriate to preserve and
		enforce the rights of the relevant Person within the Company Group (or, if
		applicable, with respect to any Original Aircraft, the owner) under the
		applicable Lease, including entering into negotiations with such Lessee with
		respect to the restructuring of such Lease or declaration of an event of
		default under the applicable Lease, drawing on or making disbursement of any
		Deposits, Utilization Rent or any letters of credit, guarantees or other credit
		support thereunder, voluntary or involuntary termination of the Lease and
		repossession of the Aircraft Asset that is the subject of the Lease, and
		pursuing such legal action with respect thereto as the Servicer deems
		reasonably necessary or appropriate.
	 

	 
		SECTION 1.6. Lease Modifications. (a) The Servicer shall be authorized to make such
		amendments and modifications to any Lease as it shall deem reasonably necessary
		or appropriate; provided that such amendment or modification shall require the
		approval of the Company pursuant to Section 7.04(a) of the Servicing Agreement
		if the provisions of such amendment or modification, were they to be included
		in a new Lease to be entered into after the date hereof, would, on their own,
		cause the 
	 

	 
		 
	 

	 
		 
	 

	 
		SCHED 2.02(a)-5
	 

	 
		 
	 

	 
	 

	 

	 
		SCHEDULE 2.02(a) TO
SERVICING AGREEMENT
	 

	 
		 
	 

	 
		entering into of such new Lease to require
		the approval of the Company pursuant to Section 7.04(a)(ii) of the Servicing
		Agreement. Such amendments or modifications may be made without regard to
		whether there is a default by the Lessee or other party under or with respect
		to any such Lease.
	 

	 
		(b) The Servicer may waive, in good faith
		but sole discretion, overdue interest due from any Lessee under any Lease on
		any default in payment of rent, Utilization Rent or other amount
		thereunder.
	 

	 
		SECTION 1.7. Options and Other Rights. The Servicer shall be authorized to take such action
		as it shall deem reasonably necessary or appropriate with respect to:
	 

	 
		(a) the exercise by any Lessee or other
		party of any option or right affecting the applicable Aircraft Asset or the
		applicable Lease, consistent with the terms of any such option or right;
		and
	 

	 
		(b) the exercise on behalf of any Person
		within the Company Group of any right or option that such Person may have with
		respect to any of the Aircraft Assets or the Leases.
	 

	 
		SECTION 2. Compliance with Covenants;
		Security Interests.
	 

	 
		SECTION 2.1. Compliance Generally. Subject to the availability to the Servicer of
		adequate funding to comply with its obligations under this Schedule 2.02(a) and
		the Servicing Agreement with respect to Services that require such funding, the
		Servicer shall take such commercially reasonable actions as it shall deem
		reasonably necessary or appropriate to keep the Company in compliance with its
		obligations and covenants under Sections 5.02 and 5.03 of the Indenture, as and
		to the extent set forth on Schedule 2.02(a)(i) and solely to the extent that
		such obligations and covenants specifically and directly relate to the
		Services, excluding, in any case, (i) any reporting obligations in respect of
		any of the foregoing and (ii) any rental, any Note obligations or any payment
		or monetary obligations under the Indenture; provided that
		the foregoing shall only apply to (A) any Indenture covenants that are set
		forth (or, in certain cases, appear as extracts) on Schedule 2.02(a)(i) to the
		Servicing Agreement, to the extent that each provision set forth (or extracted)
		on such Schedule includes the relevant section references for each such
		provision from the Indenture, and which (together with the definitions for any
		capitalized terms used therein) are set forth in full in a copy of the
		Indenture delivered by the Company to the Servicer, certified by the Company as
		a true and complete copy thereof (and the Company shall promptly provide the
		Servicer with all amendments, supplements and waivers thereto, so certified),
		and the Company shall provide to the Servicer any instructions the Servicer may
		require in the interpretation of the Indenture, on which instructions the
		Servicer shall be entitled to rely in all respects, and (B) such Indenture
		covenants (excluding, in any case, any such covenants relating to the
		limitations on Lessee concentrations, which are treated in Section 2.2 of this
		Schedule 2.02(a)) first coming into effect (including through amendments or
		modifications) after the date of the Servicing Agreement that are reasonably
		acceptable to the Servicer, or which the Company shall from time to time notify
		the Servicer in writing, in reasonably specific detail by amendment to such
		Schedule 2.02(a)(i) and that are reasonably acceptable to the Servicer.
	 

	 
		 Nothing in this Schedule 2.02(a) or
		elsewhere in the Servicing Agreement shall be deemed to constitute or be
		construed as (i) a delegation or other transfer to, or an assumption by, the
		Servicer or any of its Affiliates of any obligations of any Person within the
		Company Group (or, if applicable, with respect to any Original Aircraft, the
		owner) to make any payment to any Lessee or other Person, or to comply with any
		other monetary obligation, under any Lease or (ii) a transfer to the Servicer
		or any of its Affiliates of any right, title or interest in any Lease or
		related agreement or any Aircraft Asset covered thereby.
	 

	 
		 
	 

	 
		 
	 

	 
		SCHED 2.02(a)-6
	 

	 
		 
	 

	 
	 

	 

	 
		SCHEDULE 2.02(a) TO
SERVICING AGREEMENT
	 

	 
		 
	 

	 
		SECTION 2.2. Certain Matters Relating
		to Concentration Thresholds.
	 

	 
		(a) Concentration
		Thresholds Generally. The Servicer
		shall comply with any covenants specifically relating to limitations on Lessee
		concentration set forth in the Indenture (“Concentration Limits”) and shall promptly inform the Company of any
		proposed transaction that it reasonably determines may result in such
		Concentration Limits being exceeded, and the Company shall promptly provide to
		the Servicer any information that the Servicer may reasonably require in
		connection with such Concentration Limits in order to comply with the
		provisions of this Section 2.2. The Servicer shall not enter into any such
		transaction other than pursuant to the terms of Section 2.2(c) below.
	 

	 
		(b) Present Concentration Limits. The Company hereby represents and warrants to the
		Servicer that set forth in Annex 2 to the Servicing Agreement are the
		Concentration Limits (including, following each provision set forth in such
		Annex, the relevant section references for each such provision from the
		Indenture) presently imposed under the Indenture, which Concentration Limits
		(together with the definitions for any capitalized terms used therein) are set
		forth in a full copy of the Indenture delivered by the Company to the Servicer,
		certified by the Company as a true and complete copy thereof (and the Company
		shall promptly provide the Servicer with all amendments, supplements and
		waivers thereto, so certified) and the Company shall provide to the Servicer
		any instructions the Servicer may require in the interpretation of such
		Concentration Limits, on which instructions the Servicer shall be entitled to
		rely in all respects.
	 

	 
		(c) Directions to Servicer. The Servicer shall not enter into any transaction with
		respect to which it has provided notice pursuant to Section 2.2(a) until the
		Company has provided a written certification to the Servicer to the effect that
		such transaction will not result in any violation of the Concentration Limits
		and the Servicer shall be entitled to rely upon such certification for all
		purposes of the Servicing Agreement and this Schedule 2.02(a).
	 

	 
		SECTION 2.3. Security Interests and International
		Interests. (a) Security Interests. In connection with the obligation of any Person within
		the Company Group under the Security Trust Agreement to perfect any security
		interest granted by it in its right, title and interest in and to any Assigned
		Lease, the Servicer’s sole responsibility in respect thereof shall be to
		take the following actions with respect to each Assigned Lease: (1) seek advice
		from local counsel in the jurisdiction where the related Aircraft Asset is
		registered as to what actions would be customarily taken in such jurisdiction
		to perfect the security interest created in such Assigned Lease pursuant to the
		Security Trust Agreement and to use commercially reasonable efforts to
		implement such advice, (2) create an original chattel paper copy of such
		Assigned Lease by adding the following language to the cover of such Assigned
		Lease: “To the extent, if any, that this [Lease Agreement] or any [Lease
		Supplement] hereunder constitutes tangible chattel paper (as such term is
		defined in the Uniform Commercial Code as in effect in any applicable
		jurisdiction), no security interest in this [Lease Agreement] or such [Lease
		Supplement] may be created through the transfer or possession of any
		counterpart other than the original executed counterpart, which shall be
		identified as the counterpart containing the receipt therefore executed by the
		Security Trustee under and as defined in the Security Trust Agreement dated as
		of
		[               ]
		[        ], 2007 between the Company,
		Deutsche Bank Trust Company Americas, as Security Trustee, and the various
		other parties identified on the signature pages thereof”, and (3) no
		later than ten days after the execution of such Assigned Lease by all the
		parties thereto, deliver such original tangible chattel paper copy (which, by
		way of clarification, shall not include the signature or the receipt therefore
		of the Security Trustee) to a courier service for delivery to the Security
		Trustee at Deutsche Bank Trust Company Americas, Attention: Structured Finance
		Services / Trust & Agency Services, 60 Wall Street, New York, New York
		10005, (4) notify the Lessee in writing of the security assignment of such
		Assigned Lease to the Security Trustee 
	 

	 
		 
	 

	 
		 
	 

	 
		SCHED 2.02(a)-7
	 

	 
		 
	 

	 
	 

	 

	 
		SCHEDULE 2.02(a) TO
SERVICING AGREEMENT
	 

	 
		 
	 

	 
		pursuant to the Security Trust Agreement
		(which notice may be contained in such Assigned Lease), (5) obtain from the
		Lessee a written acknowledgment addressed to, or for the benefit of, the
		Security Trustee (A) acknowledging receipt of notification of such
		security assignment and (B) containing the agreement of the Lessee to
		continue to make all payments required to be made to the lessor under such
		Assigned Lease to the account specified in such Assigned Lease unless and until
		the Security Trustee otherwise directs (it being understood that the account
		specified in such Assigned Lease will be the account specified by the
		Administrative Agent to the Servicer as contemplated by Section 1.1(a) of this
		Schedule 2.02(a)) and (6) take such other action as the Company shall have
		reasonably requested and described in reasonable detail in a written notice to
		the Servicer. Notwithstanding the foregoing, the Servicer shall have no
		obligation to take any action specified in the prior sentence of this Section
		2.3(a) with respect to any Assigned Lease or any supplement or amendment
		thereto that was executed before the related Aircraft became an Aircraft Asset.
		In connection with any Assigned Lease, the Company will cooperate with the
		Servicer in obtaining a letter of quiet enjoyment with respect to such Assigned
		Lease referred to in the final sentence of Section 2.08(a) of the Security
		Trust Agreement.
	 

	 
		(b) International Interests. In connection with the obligation of any Person within
		the Company Group under the Security Trust Agreement to register at the
		International Registry any International Interest constituted by any Assigned
		Lease, the Servicer’s sole responsibility in respect thereof shall be to
		direct the International Registry administrator of the Person within the
		Company Group that is lessor under such Assigned Lease to register such
		International Interest with the International Registry and seek the consent of
		the Lessee to such registration. In connection with the obligation of any
		Person within the Company Group under the Security Trust Agreement to register
		the assignment to the Security Trustee of any International Interest
		constituted by any Assigned Lease of an Aircraft, the Servicer’s sole
		responsibility in respect thereof shall be to, upon request by the Security
		Trustee, direct the International Registry administrator of the Person within
		the Company Group that is lessor under such Lease to consent to the
		registration of the assignment in favor of the Security Trustee of any
		International Interest that has been registered with the International Registry
		in respect of such Assigned Lease and is then held by a Person with the Company
		Group, and request the consent of the lessee under such Assigned Lease to such
		assignment (which consent may be set forth in the Assigned Lease). In
		connection with the obligation of any Person within the Company Group under the
		Security Trust Agreement to register any interest created under any contract of
		sale with respect to an Aircraft Asset, the Servicer’s sole responsibility
		in respect thereof shall be to direct the International Registry administrator
		of the Person within the Company Group that is a party to such contract of sale
		to register such interest with the International Registry and seek the consent
		of the other party to such contract of sale to such registration. In connection
		with the obligation of any Person within the Company Group under the Security
		Trust Agreement to register any contract of sale with respect to an Aircraft
		Asset, the Servicer’s sole responsibility in respect thereof shall be to,
		upon request by the Security Trustee, direct the International Registry
		administrator of the Person within the Company Group that is owner of such
		Aircraft Asset to consent to the registration in favor of the Security Trustee
		of such interest with the International Registry.
	 

	 
		SECTION 3. Lease Marketing.
	 

	 
		(a) The Servicer shall provide and perform
		lease marketing services with respect to the Aircraft Assets and in connection
		therewith is authorized:
	 

	 
		(i) to negotiate and enter into any
		commitment for a lease of an Aircraft Asset in the name of the relevant Person
		within the Company Group (or, if applicable, with respect to any Original
		Aircraft, the owner); and
	 

	 
		 
	 

	 
		 
	 

	 
		SCHED 2.02(a)-8
	 

	 
		 
	 

	 
	 

	 

	 
		SCHEDULE 2.02(a) TO
SERVICING AGREEMENT
	 

	 
		 
	 

	 
		(ii) to include within any commitment for a
		Lease of an Aircraft Asset and/or effect any intermediate Lease or Leases
		through any Person within the Company Group that the Servicer deems reasonably
		necessary or appropriate.
	 

	 
		(b) The Servicer shall commence the
		negotiation of any commitment for a Lease or Leases of Aircraft Assets in a
		manner consistent with the practices employed by the Servicer with respect to
		its aircraft operating leasing services business generally and shall commence
		the drafting of, and negotiation with respect to, any Leases for Aircraft
		Assets on the following basis:
	 

	 
		(i) in the case of any proposed Lessee that
		is not and has not been a lessee of an aircraft managed or serviced by the
		Servicer, the Servicer shall commence the drafting of, and negotiation with
		respect to, a Lease for Aircraft Assets based on the form of lease agreement or
		agreements then used by the Servicer in connection with its aircraft operating
		leasing services business generally but reflecting any changes thereto required
		under clause (c)(ii) below (as such form of lease shall be amended from time to
		time by the Servicer, the “Company
		Pro Forma Lease”); and
	 

	 
		(ii) in the case of any proposed Lessee that
		is or was a lessee of an aircraft managed or serviced by the Servicer, the
		Servicer may commence the drafting of, and negotiation with respect to, a Lease
		for Aircraft Assets based on a form of lease substantially similar to the lease
		previously used with respect to such Lessee (the “Precedent Lease”).
	 

	 
		Provided that the Servicer commences the
		negotiation of a Lease of any Aircraft Asset in accordance with clauses (b)(i)
		and (b)(ii) above, the terms of any executed Lease may vary from the terms of
		the Company Pro Forma Lease or the Precedent Lease employed by the Servicer in
		accordance with such clauses. Section 3(b) shall not be applicable to the
		negotiation with respect to, or execution of, any Lease for Aircraft Assets in
		which negotiations commenced on or prior to the Closing Date. The Servicer is
		authorized to execute and deliver binding leases and related agreements on
		behalf of the relevant Person within the Company Group based on the foregoing
		procedures. All Leases shall contain the Core Lease Provisions, unless
		otherwise approved by the Company and the Policy Provider
	 

	 
		(c) (i) Upon ten Business Days’
		prior written notice from the Company or the Policy Provider
		(x) requesting a copy of the then current Company Pro Forma Lease and (y)
		specifying that such Company Pro Forma Lease is to be used for purposes of the
		annual review required pursuant to the terms of Section 5.03(f) of the
		Indenture (the “Annual
		Review”), the Servicer shall
		provide the Company or the Policy Provider, as the case may be, with a copy of
		its then current Company Pro Forma Lease, together with a copy thereof marked
		to reflect changes from the version of the Company Pro Forma Lease that was
		produced by the Servicer following the immediately preceding Annual Review to
		give effect to the terms of Section 3(c)(ii) below (or from the Company Pro
		Forma Lease utilized as of the Closing Date (a copy of which shall have been
		delivered to the Company on or before the Closing Date) in the case of the
		first such Annual Review).
	 

	 
		(ii) On or prior to each anniversary of the
		Closing Date and following the Annual Review, the Company shall advise the
		Servicer in writing whether any provisions in the then current The Company Pro
		Forma Lease that correspond to the Core Lease Provisions are required in
		accordance with the terms of Section 5.03(e) of the Indenture to be deleted
		from such The Company Pro Forma Lease and replaced with the provision
		corresponding thereto in the most recent The Company Pro Forma Lease in which
		such provision was determined to be acceptable in accordance with the terms of
		Section 
	 

	 
		 
	 

	 
		 
	 

	 
		SCHED 2.02(a)-9
	 

	 
		 
	 

	 
	 

	 

	 
		SCHEDULE 2.02(a) TO
SERVICING AGREEMENT
	 

	 
		 
	 

	 
		5.03(e) of the Indenture. Following any such
		written advice from the Company, the Servicer shall amend the Company Pro Forma
		Lease accordingly and shall commence the negotiation of any Lease thereafter
		with the Company Pro Forma Lease as so amended in respect of any such
		provision.
	 

	 
		(d) The Servicer shall take such actions as
		shall be reasonably necessary or appropriate to deliver any Aircraft Asset
		pursuant to the terms of the documentation of the Lease or Leases of such
		Aircraft Asset, including upon an extension of such Leases.
	 

	 
		(e) The Servicer shall generally provide the
		marketing services set forth in this Section 3 through the use of its own
		marketing staff where it shall deem appropriate and shall utilize third parties
		to provide such marketing services where it shall deem appropriate;
		provided that no such utilization shall release the Servicer
		from any of its obligations under the Servicing Agreement.
	 

	 
		SECTION 4. Sales of Aircraft and
		Engines.
	 

	 
		(a) The Servicer shall provide and perform
		sales services with respect to the Aircraft Assets at, and on a basis
		consistent with, the direction from time to time of the Company, and, in
		connection therewith, is authorized:
	 

	 
		(i) to enter into any commitment for a sale
		of an Aircraft Asset on behalf and (through a power of attorney) in the name of
		the relevant Person within the Company Group; and
	 

	 
		(ii) to include within any sale and effect
		any intermediate Lease or Leases through any Person within the Company Group
		that the Servicer deems reasonably necessary or appropriate;
	 

	 
		provided that, except as otherwise required in accordance with
		the terms of a Lease, the Servicer shall not enter into any sale of any
		Aircraft Asset or agreement to sell any Aircraft Assets without obtaining the
		approval of the Company pursuant to Section 7.04(a) of the Servicing
		Agreement.
	 

	 
		(b) The Servicer shall negotiate
		documentation of any sale and, subject to Section 4(a) of this Schedule
		2.02(a), is authorized to execute and deliver binding agreements on behalf and
		(through a power of attorney) in the name of the relevant Person within the
		Company Group.
	 

	 
		(c) The Servicer shall take such reasonable
		commercial actions as shall be reasonably necessary or appropriate to deliver
		any Aircraft Asset pursuant to the terms of the documentation of the
		sale.
	 

	 
		(d) In the event that the Company directs
		the Servicer to sell or arrange for the sale of any Aircraft Asset, the
		Servicer will not be required to take any such action until the Company shall
		provide the Servicer with an Officer’s Certificate, substantially in the
		form attached as Schedule 2.02(a)(ii) to the Servicing Agreement, certifying
		that such sale complies with the terms of the Indenture and that the Servicer
		is entitled to rely upon such certification for all purposes of the Servicing
		Agreement and this Schedule 2.02(a).
	 

	 
		(e) Notwithstanding any other provision in
		Section 7.04 of the Servicing Agreement to the contrary, the Servicer shall be
		permitted to purchase, sell or exchange any Engine relating 
	 

	 
		 
	 

	 
		 
	 

	 
		SCHED 2.02(a)-10
	 

	 
		 
	 

	 
	 

	 

	 
		SCHEDULE 2.02(a) TO
SERVICING AGREEMENT
	 

	 
		 
	 

	 
		to an Aircraft or any part or components
		thereof or spare parts or ancillary equipment or devices furnished with an
		Aircraft at such times and on such terms and conditions as the Servicer deems
		reasonably necessary or appropriate in connection with its performance of the
		Services; provided that
		the Servicer shall not be permitted to purchase, or enter any order to
		purchase, Engines or spare parts (y) in a quantity in excess of that quantity
		deemed by the Servicer as appropriate in connection with the operation, leasing
		or sale of such the Aircraft Assets without obtaining the prior written consent
		of the Company, or (z) if the net (after credit for any exchanges, replacements
		or similar items) cash out-of-pocket purchase price of such Engine exceeds
		$3,000,000.
	 

	 
		SECTION 5. Aircraft
		Acquisitions.
	 

	 
		SECTION 5.1. Limitation on Acquisitions. The Company shall not, and shall not permit any other
		Person within the Company Group to, purchase or otherwise acquire, directly or
		indirectly, (x) Aircraft Assets from any Person other than the Servicer or any
		of its Affiliates, or (y) without the consent of the Servicer, any Aircraft as
		to which Servicer has no obligation to provide Services under the Servicing
		Agreement and other than as provided herein (including, without limitation,
		with respect to any Engine, in Section 4(e) of Schedule 2.02(a) and, in respect
		of any Aircraft Assets, pursuant to the terms of the Asset Purchase Agreement).
		For purposes of clarification, the Servicer shall have no obligations under
		this Agreement with respect to the acquisition of any Aircraft except to the
		extent expressly set forth in this Section 5.1 and subject to the conditions in
		Section 2.03(g) of the Servicing Agreement.
	 

	 
		SECTION 5.2. Other Acquisitions. Except as otherwise provided in Section 2.03(g) of the
		Servicing Agreement, the Servicer shall not be required to assist in the
		solicitation of, or otherwise take any action to obtain, any acquisition of any
		aircraft, engine or other property or any lessee consents and/or novations in
		connection with the acquisition of any Aircraft Assets or the issuance of
		Additional Notes or any other additional equity or debt capital (it being the
		expectation of the parties hereto that the obtaining of any lessee consents
		and/or novations with respect to any Aircraft Asset shall be the responsibility
		of the seller of such Aircraft Asset to any Person within the Company Group).
		The parties hereto acknowledge that Section 2.03 of the Servicing
		Agreement deals with, among other things, the Servicer’s involvement in
		the issuance of Additional Notes.
	 

	 
		SECTION 6. [Reserved]
	 

	 
		SECTION 7. Aircraft Asset Cash
		Services.
	 

	 
		SECTION 7.1. Accounts and Account
		Information.
	 

	 
		(a) Existing Accounts. In the event that the Cash Manager desires to modify
		any of the arrangements relating to any of the bank accounts set forth on
		Schedule 4.03 to the Servicing Agreement (the “Existing Accounts”) in accordance with Section 2.04 of the Cash
		Management Agreement, the Company shall cause the Cash Manager to (i) deliver a
		certificate to the Servicer specifying in reasonable detail the modifications
		to be made with respect to any such Existing Accounts and certifying that any
		such modifications are in accordance with the applicable provisions of the
		Indenture and the Cash Management Agreement and (ii) transmit instructions to
		the relevant banking institution to effect such modifications and shall take
		such other actions as are incidental thereto in order to give effect to the
		foregoing.
	 

	 
		(b) New Accounts.
		The Servicer shall notify the Cash Manager in the event that any new bank
		accounts need to be established on behalf of any Person within the Company
		Group in connection with a Lease and shall set forth in reasonable detail the
		(i) identity of the Lessee, (ii) 
	 

	 
		 
	 

	 
		 
	 

	 
		SCHED 2.02(a)-11
	 

	 
		 
	 

	 
	 

	 

	 
		SCHEDULE 2.02(a) TO
SERVICING AGREEMENT
	 

	 
		 
	 

	 
		Aircraft Assets subject to such Lease and
		(iii) jurisdiction of the Lessee and in which such Aircraft Assets are to be
		registered. Following receipt of such notice from the Servicer, the Company
		shall cause the Cash Manager promptly to (i) deliver a certificate to the
		Servicer specifying (v) the name and location of the bank at which such
		account will be established, (w) the name(s) in which such account will be
		established, (x) the names of the beneficiaries of such account, (y) the names
		of the Persons authorized to make withdrawals from such account and (z) such
		other information (including with respect to any security arrangements) as the
		Cash Manager deems appropriate and certifying that the establishment of such
		account is in accordance with the applicable provisions of the Indenture and
		the Cash Management Agreement and (ii) transmit instructions to the relevant
		banking institution to effect the establishment of such account and shall take
		such other actions as are incidental thereto in order to give effect to the
		foregoing (the “New
		Accounts”; and, together with the
		Existing Accounts, the “Bank
		Accounts”). 
	 

	 
		SECTION 7.2. Cash Transfers.
		(a) In the event that funds are required to be transferred from any Bank
		Account to the account of another Person (other than any Person within the
		Company Group) in order to give effect to the directions of any Lessee in
		accordance with Section 1.1(d) of this Schedule 2.02(a), the Servicer
		shall provide the Cash Manager and the Administrative Agent with written notice
		setting forth the (i) name of the transferor, (ii) name of the transferee,
		(iii) accounts from and to which funds are to be transferred,
		(iv) amounts to be transferred, (v) amount of the initial payment
		from or to the Lessee and (vi) anticipated date of transfer. No later than
		the next following Business Day, the Company shall cause the Cash Manager to
		notify the Servicer in writing whether the proposed transfer will be made on
		such anticipated date of transfer or on another stated date. The Company shall
		instruct the Cash Manager to cause such transfer to be made on such date in
		accordance with the terms of the written notice provided by the
		Servicer.
	 

	 
		(b) It is understood and agreed that (i) all
		decisions as to any transfers contemplated by Section 7.2(a) shall be the
		decisions and responsibility of the Cash Manager or the Administrative Agent,
		as the case may be, and not the decisions and responsibility of the Servicer
		(and the Servicer shall not be subject to any other responsibilities not
		specified in this Section 7 or any liability whatsoever for any such transfers
		or any decisions of the Cash Manager or the Administrative Agent, as the case
		may be, related thereto) and (ii) the Servicer shall have no responsibility as
		to the actions taken (or omitted) by any banking institution upon receipt of
		any payment instruction from the Cash Manager or the Administrative Agent, as
		the case may be, in accordance with the procedures set forth in this
		Section 7.
	 

	 
		SECTION 7.3 Payments. 
	 

	 
		(a) Anticipated Payments. For purposes of the calculation of the Required
		Expense Amount by the [Cash Manager pursuant to Section 2.03 of the Cash
		Management Agreement], not less than one Business Day prior to each Calculation
		Date, the Servicer shall deliver to the [Cash Manager and] the Administrative
		Agent a written projection of payment obligations (including projected
		expenditures (including maintenance contribution payments, airworthiness
		directive payments and redelivery condition payments), or return to Lessees of
		security deposits in accordance with the terms of any Lease) reasonably
		anticipated by the Servicer to be necessary to be paid in connection with the
		Servicer’s performance of the Services under the Servicing Agreement
		during the period extending from the Payment Date immediately following such
		Calculation Date through to the next succeeding Payment Date (the
		“Monthly Payment
		Period”). Not later than two
		Business Days prior to the date of each cash payment, the Servicer shall
		deliver to [the Cash Manager and] the Administrative Agent a written notice of
		such payment (whether or not such cash payment was reflected in the projection
		referred to in this Section 
	 

	 
		 
	 

	 
		 
	 

	 
		SCHED 2.02(a)-12
	 

	 
		 
	 

	 
	 

	 

	 
		SCHEDULE 2.02(a) TO
SERVICING AGREEMENT
	 

	 
		 
	 

	 
		7.3(a)), and shall state (i) the anticipated
		date of such payment, (ii) the payee, (iii) the amount of such payment and (iv)
		the obligation in respect of which such payment is to be made (the
		“Stated Services
		Obligation”), with an appropriate
		notation if, and to what extent, such payment should be made from the Lessee
		Funded Account. No later than the Business Day prior to such anticipated date
		of payment, the Company shall instruct the Cash Manager to notify the Servicer
		in writing whether the proposed payment will be made on such anticipated date
		or on another stated date. The Company shall instruct the Cash Manager to pay
		or cause such payment to be made on such date to the payee for the Stated
		Services Obligation from the funds then available in the Expense Account and/or
		the Lessee Funded Account, as the case may be.
	 

	 
		(b) Unanticipated Payments. During any Monthly Payment Period, the Servicer may
		request in writing the Cash Manager’s approval for the Cash Manager to pay
		or cause to be paid expenses that had not been reasonably anticipated by the
		Servicer at the time the projection required to be provided to the Cash Manager
		pursuant to Section 7.3(a) with respect to such Monthly Payment Period was
		delivered to the Cash Manager. Any such request shall specify for each such
		payment obligation (i) the anticipated date of such payment, (ii) the payee,
		(iii) the amount of such payment and (iv) the Stated Services Obligation,
		with an appropriate notation if, and to what extent, such payment should be
		made from the Lessee Funded Account. No later than the Business Day next
		following such request by the Servicer, the Company shall instruct the Cash
		manager to notify the Servicer in writing whether such payment will be made on
		such anticipated date of payment or on another stated date. The Company shall
		instruct the Cash Manager to pay or cause such payment to be made on such date
		to the payee for the Stated Services Obligation from the funds then available
		in the Expense Account or the Lessee Funded Account, as the case may be. In the
		event that the funds then available in the Expense Account or the Lessee Funded
		Account are insufficient to make any such payment, pursuant to Section 2.03 of
		the Cash Management Agreement, the Company shall cause the Cash Manager to take
		such actions as are necessary to cause funds sufficient to make any such
		payments to be transferred as soon as practicable from the Collection Account
		to the Expense Account and/or the Lessee Funded Account, as the case may be.
		Following the transfer of such funds from the Collection Account, the Company
		shall cause the Cash Manager to pay or cause such payments to made in
		accordance with the foregoing provisions.
	 

	 
		(c) Limitation on Payments. It is understood and agreed that (i) all decisions as
		to the payment of funds from any Bank Account (including the timing, amount and
		payee thereof) shall be the decisions and responsibility of the Cash Manager
		and not the decisions or responsibility of the Servicer (and the Servicer shall
		not be subject to any other responsibilities not specified in this Section 7 or
		any liability whatsoever for any such payments or any decisions of the Cash
		Manager related thereto) and (ii) the Servicer shall have no responsibility as
		to the action taken (or omitted) by any banking institution upon receipt of any
		payment instructions from the Cash Manager in accordance with the procedures
		set forth in this Section 7 or as to the application by any payee of any
		amounts paid to it from any Bank Account in accordance with the procedures set
		forth in this Section 7, including no responsibility as to whether such payee
		applies such payment toward the Stated Services Obligation for which such
		payment was made.
	 

	 
		SECTION 8. Professional and Other
		Services.
	 

	 
		SECTION 8.1. Legal Services.
		The Servicer shall provide or procure legal services, in all relevant
		jurisdictions, on behalf of the relevant Persons within the Company Group with
		respect to the lease, sale or financing of the Aircraft Assets, any amendment
		or modification of any Lease, the enforcement of the rights of any Person
		within the Company Group under any Lease, any disputes that arise with respect
		to the Aircraft Assets or for any other purpose that the Servicer reasonably
		determines 
	 

	 
		 
	 

	 
		 
	 

	 
		SCHED 2.02(a)-13
	 

	 
		 
	 

	 
	 

	 

	 
		SCHEDULE 2.02(a) TO
SERVICING AGREEMENT
	 

	 
		 
	 

	 
		is necessary in connection with the
		performance of the Services. The Servicer shall provide such legal services
		(which services shall not, in any case, be deemed to include (i) services
		or transactions relating to taxation matters, the laws of foreign
		jurisdictions, capital markets transactions or novel or unique transactions or
		(ii) a high level of services at fiscal year end or other times of peak
		activity relative to the level of services at other times) by using its
		in-house legal staff where it shall deem appropriate and shall authorize
		outside counsel to provide such legal services where it shall deem appropriate.
		The Company recognizes, and shall cause each other Person within the Company
		Group to recognize, that from time to time the Servicer will retain legal
		counsel to provide legal services on behalf of Persons within the Company Group
		and, in the event that a dispute arises between any Person within the Company
		Group and the Servicer, the Company agrees, and shall cause each other Person
		within the Company Group, to waive any conflict of interest any such counsel
		may have with respect to any such dispute or otherwise to enable the Servicer
		to retain such counsel on its own behalf (it being understood that
		notwithstanding any such waiver of a conflict of interest, any such Persons
		within the Company Group do not waive any rights to retain any such counsel on
		its own behalf if such counsel is so agreeable).
	 

	 
		SECTION 8.2. Tax Services.
		The Servicer shall arrange for such tax services and advice (which may be
		provided by the Servicer’s internal staff, to the extent available) as
		shall be reasonably necessary or appropriate in connection with the structuring
		of lease or sale with respect to the Aircraft Assets or for any other purpose
		that the Servicer reasonably determines is necessary in connection with the
		performance of the Services; provided that
		the Servicer shall not be responsible for arranging for any tax services with
		respect to the preparation of tax returns or the acquisition of any Additional
		Aircraft or in connection with any Offering or other financing.
	 

	 
		SECTION 9. Reports; Custody.
	 

	 
		SECTION 9.1. Monthly Reports.
		On the fifth Business Day iafter each Calculation Date (or, to the extent
		impracticable, promptly thereafter), the Servicer shall provide to the Company,
		the Administrative Agent and the Cash Manager a written report substantially in
		the form attached as Exhibit A covering the period from the last
		Calculation Date preceding the last such report, if any, through such
		Calculation Date. The Servicer acknowledges that the Company, the
		Administrative Agent and the Cash Manager will provide the information in such
		reports, together with the additional monthly information set forth on Exhibit
		B, to the Policy Provider.
	 

	 
		SECTION 9.2. Quarterly Reports. The Servicer shall provide written reports to the
		Company (a copy of which the Company shall promptly provide the Policy
		Provider) within forty-five days after the end of each calendar quarter
		substantially in the form of Exhibit B with respect to such calendar
		quarter. The Servicer shall provide to the Company (a copy of which the Company
		shall promptly provide, together with the additional quarterly information set
		forth on Exhibit B, to the Policy Provider) a quarterly certificate from a
		responsible member of its staff as to its compliance with its obligations under
		the Servicing Agreement.
	 

	 
		SECTION 9.3. Other Information.
	 

	 
		(a) To the extent the Servicer is in
		possession of the relevant information, the Servicer shall prepare and submit
		to the Company the following information with respect to each Person within the
		Company Group:
	 

	 
		(i) upon request by the Company, information
		with respect to transactions relating to Aircraft Assets necessary for each
		Person within the Company Group or Babcock & Brown Air Limited or any other
		holder of a Beneficial Interest to prepare value added tax and other tax
		returns; 
	 

	 
		 
	 

	 
		 
	 

	 
		SCHED 2.02(a)-14
	 

	 
		 
	 

	 
	 

	 

	 
		SCHEDULE 2.02(a) TO
SERVICING AGREEMENT
	 

	 
		 
	 

	 
		(ii) promptly after the occurrence thereof,
		notification to the Company of any accident or incident of which the Servicer
		has notice involving any Aircraft Asset where (A) the potential loss in
		connection therewith exceeds the higher of the damage notification threshold
		under the relevant Lease, if any, and $2,000,000 or (B) the potential liability
		in connection therewith exceeds $2,000,000; and
	 

	 
		(iii) advise the Company of any settlement
		offers received by the Servicer with respect to any claim of damage or loss in
		excess of $10,000,000 with respect to an Aircraft Asset, and, upon request by
		the Company, provide the Company with copies of all relevant documentation
		related thereto and such other additional information and advice as the Company
		may reasonably request and, upon direction from the Company that any such
		settlement offer related thereto is acceptable, prepare the appropriate
		documentation, including releases and any indemnities required in connection
		with such releases, to give effect to such settlement offer and procure the
		execution of such documentation by the Company (it being understood that
		settlement offers with respect to any such claims up to and including
		$10,000,000 may be settled by the Servicer independently).
	 

	 
		(b) Upon request by the Company, the
		Servicer shall provide to the Company copies of any financial statements
		received by the Servicer from any Lessee under and in accordance with the
		provisions of its Lease of an Aircraft Asset.
	 

	 
		(c) Upon request by the Company, the
		Servicer shall provide to the Company such factual non-proprietary and
		non-confidential information and data about the Aircraft Assets that the
		Servicer has created to provide the Services (exclusive of internal
		correspondence, approval materials, internal evaluations and similar
		information and data) or obtained from Lessees which may reasonably be
		requested by the Company; provided that
		the Servicer shall not be required to provide any valuations, interpretations,
		comparisons, evaluations, opinions, forecasts, predictions or analytical
		analysis.
	 

	 
		SECTION 9.4. Ratings Information. Upon request by the Company, and subject to the rating
		agency’s handling of such information and data pursuant to its
		confidentiality policies, the Servicer shall provide to the Company such
		information and data about the Aircraft Assets that the Servicer has created to
		provide the Services or obtained from Lessees and other commercially reasonable
		assistance relating to the Aircraft Assets as the Company shall deem reasonably
		necessary or appropriate in connection with providing information to the
		ratings agencies for the Company’s debt ratings.
	 

	 
		SECTION 9.5. Custody of Documents. The Servicer agrees to hold all original documents of
		any Person within the Company Group that relate to the Aircraft Assets in the
		possession of the Servicer in safe custody and according to the commercially
		reasonable instructions of the Company.
	 

	 
		SECTION 9.6. Reporting Obligations Generally. Notwithstanding anything herein to the contrary, the
		Company acknowledges and agrees that it shall be responsible for, and the
		Servicer shall not have any responsibility for, (a) any obligations under
		securities laws or otherwise to any holders of outstanding Notes, any holders
		of any other securities issued by any Person within the Company Group or by
		Babcock & Brown Air Limited or any of its Affiliates or any Governmental
		Authorities, (b) any instructions, discretion, judgments and assumptions
		related to such obligations, and the Company agrees to indemnify the Servicer
		and its Affiliates in respect of the foregoing as further provided in the
		Servicing Agreement, and (c) the completeness or accuracy of any information or
		data provided by the Servicer hereunder to the extent based upon, reflecting or
		otherwise incorporating any information or data 
	 

	 
		 
	 

	 
		 
	 

	 
		SCHED 2.02(a)-15
	 

	 
		 
	 

	 
	 

	 

	 
		SCHEDULE 2.02(a) TO
SERVICING AGREEMENT
	 

	 
		 
	 

	 
		prepared by any Lessee, other party to an
		Asset Related Document, any other party to any Operative Agreement.
	 

	 
		SECTION 9.7. Aircraft Assets Related Documents. The Servicer shall provide to the Security Trustee a
		copy of each fully executed Aircraft Assets Related Document received by the
		Servicer no later than ten Business Days after the receipt thereof by the
		Servicer. For purposes of this Section 9.7, the term “Aircraft Assets
		Related Documents” does not include letters of intent, memoranda of
		understanding or similar documents.
	 

	 
		SECTION 9.8. Quarterly Meeting Directions. At each quarterly meeting contemplated by
		Section 5.01 of the Servicing Agreement, the Servicer will be advised by
		the Company if there are Aircraft Assets which the Company instructs the
		Servicer to sell pursuant to Section 4 of this Schedule 2.02(a) of the
		Servicing Agreement, and, with respect to any Aircraft Asset subject to a Lease
		expiring within the next twelve (12) months of the end of the preceding
		calendar quarter, if such Aircraft Asset is not to be remarketed for lease or
		an extension of a Lease because such Aircraft Asset is to be converted to a
		freighter aircraft (and is to be remarketed for lease after giving effect to
		such conversion) or is to be sold free and clear of a Lease (it being agreed
		that in the absence of an instruction not to remarket an Aircraft Asset for
		lease, such Aircraft Asset shall be remarketed for lease and in any event an
		Aircraft Asset shall continue to be remarketed for lease (or an extension of an
		existing Lease), and notwithstanding any contrary instruction, may be leased if
		the Servicer has entered into any preliminary agreement (such as a letter of
		intent) with respect thereto or has entered into a lease or lease extension
		with respect thereto).
	 

	 
		SECTION 9.9. Public Filing Information. The Servicer shall provide to the Company such
		information and data about the Aircraft Assets that the Servicer has created to
		provide the Services or obtained from Lessees, as the Company may reasonably
		request to comply with its public statutory and filing obligations.
	 

	 
		 
	 

	 
		 
	 

	 
		SCHED 2.02(a)-16
	 

	 
		 
	 

	 
	 

	 

	 
		Applicable Indenture Covenants

	 

	 
		Attached are applicable extracts of the
		following sections of the Indenture:
	 

	 
			
				
				   
				

			 	
				
				  1.
				

			 	
				
				  5.02(b) Limitation on
				  Encumbrances;
				

			 

 

	 
			
				
				   
				

			 	
				
				  2.
				

			 	
				
				  5.02(g);
				

			 

 

	 
			
				
				   
				

			 	
				
				  3.
				

			 	
				
				  5.03(a) Concentration Limits;

				

			 

 

	 
			
				
				   
				

			 	
				
				  4.
				

			 	
				
				  5.03(b) Compliance with Law,
				  Maintenance of Permits;
				

			 

 

	 
			
				
				   
				

			 	
				
				  5.
				

			 	
				
				  5.03(c) Maintenance of
				  Assets;
				

			 

 

	 
			
				
				   
				

			 	
				
				  6.
				

			 	
				
				  5.03(e) Leases;
				

			 

 

	 
			
				
				   
				

			 	
				
				  7.
				

			 	
				
				  5.03(f) Opinions;
				

			 

 

	 
			
				
				   
				

			 	
				
				  8.
				

			 	
				
				  5.03(g) Insurance; 
				

			 

 

	 
			
				
				   
				

			 	
				
				  9.
				

			 	
				
				  5.03(h)(ii)(C) and (E); and
				

			 

 

	 
			
				
				   
				

			 	
				
				  10.
				

			 	
				
				  5.03(i) Indemnity.
				

			 

 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		Form of Officer’s Certificate for
		Babcock & Brown Air Limited
	 

	 
		The undersigned, representing Babcock &
		Brown Air Funding I Limited, a Bermuda limited liability company, in accordance
		with Section 4(d) of Schedule 2.02(a) to the Servicing Agreement dated as of
		[            ]
		[     ], 2007 (the “Servicing Agreement”)
		among Babcock & Brown Air Funding I Limited (the “Company”),
		Babcock & Brown Aircraft Management LLC and Babcock & Brown Aircraft
		Management (Europe) Limited (collectively, the “Servicer”), hereby
		certifies as follows:
	 

	 
		(a) the sale of the [insert description of
		asset(s) to be sold], which the Company has directed the Servicer to arrange
		pursuant to Section 4 of Schedule 2.02(a) to the Servicing Agreement (the
		“Sale”), complies in all respects with the terms of the Trust
		Indenture dated as of ________, between the Company, Babcock & Brown Air
		Limited, _______, and Deutsche Bank Trust Company Americas (including, if
		required, has been consented to by the Policy Provider);
	 

	 
		(b) the Sale has been approved by the board
		of directors of the Company in accordance with Section 7.04(a) of the Servicing
		Agreement;
	 

	 
		(b) in connection with such Sale, the
		Servicer is entitled to rely upon this certification for all purposes of the
		Servicing Agreement and Schedule 2.02(a) thereto; and
	 

	 
		(c) the undersigned is a duly appointed,
		qualified and acting officer of the Company and the signature appearing below
		after his/her name is a genuine signature.
	 

	 
		IN WITNESS WHEREOF, I have hereunto set my
		hand on and as of this [____] day of [____ ], [_____].
	 

	 
		 
	 

	 
			
				
				

			 	
				
				   
				

			 	
				
				  By: 
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name:
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Title:
				

			 

 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
		 
	 

	 
		Aircraft Assets*
	 

	 
		 
	 

	 
			
				
				  SERIAL #
				

			 	
				
				   
				

			 	
				
				  MODEL
				

			 	
				
				   
				

			 	
				
				  OWNER**
				

			 
	
				
				  34896
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Boeing 737-800
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  34898
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Boeing 737-800
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  34899
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Boeing 767-800
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   2522
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Airbus 320-200
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   2670
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Airbus 320-200
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  29945
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Boeing 757-200
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  29946
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Boeing 757-200
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  35089
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Boeing 737-800
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  35211
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Boeing 737-800
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Airbus 319-100
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   2728
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Airbus 320-200
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  29944
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Boeing 757-200
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  29942
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Boeing 757-200
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  29052
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Boeing 737-800
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  25402
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Boeing 737-300QC
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  28040
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Boeing 767-300ER
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  28608
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Boeing 737-800
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   0533
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Airbus 320-200
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   0548
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Airbus 320-200
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   0888
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Airbus 320-200
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   0545
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Airbus 320-200
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   0562
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Airbus 320-200
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  30785
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Boeing 737-800
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  30784
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Boeing 737-700
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   0553
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Airbus 320-200
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   0559
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Airbus 320-200
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   0574
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Airbus 320-200
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  25232
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Boeing 737-500
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  25233
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Boeing 737-500
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  28595
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Boeing 737-800
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  27974
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Boeing 757-200
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  27975
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Boeing 757-200
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  27976
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Boeing 757-200
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  29330
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Boeing 757-200
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   2616
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Airbus 320-200
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   2740
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Airbus 320-200
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  24528
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Boeing 757-200
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  34704
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Boeing 737-800
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   1140
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Airbus 319-100
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   1159
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Airbus 319-100
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   2979
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Airbus 320-100
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  34293
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Boeing 737-700
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  34295
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Boeing 737-700
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   0566
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Airbus 320-200
				

			 	
				
				   
				

			 	
				
				   
				

			 

 

	 
		 
	 

	 
	 

	 

	 
		Aircraft Assets Related
		Documents*
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		Bank Accounts
	 

	 
		 
	 

	 
			
				
				  ACCOUNT NAME
				

			 	
				
				   
				

			 	
				
				  ACCOUNT NUMBER
				

			 
	
				
				  FUNDING LIMITED COLLECTION AC
				  
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  FUNDING LIMITED LESSEE FUNDED
				  AC
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  FUNDING LIMITED SECURITY DEP
				  AC
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  FUNDING LIMITED EXPENSE AC
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  FUNDING LIMITED CLASS G1 NOTE
				  AC
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  FUNDING LIMITED CAPITAL AC
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  FUNDING LIMITED LIQ FACILITY
				  AC
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  FUNDING LIMITED CLASS B SHARE
				  AC
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  FUNDING LIMITED CONVERSION AC

				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  FUNDING LIMITED INTIAL LIQ PT
				  AC
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  FUNDING LIMITED RENTAL AC
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  FUNDING LIMITED AIRCRAFT CON
				  AC
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  FUNDING LIMITED REDEMPTION AC
				  
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  FUNDING LIMITED REFINANCING AC
				  
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  FUNDING CASH COLLATERAL AC 
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  THE COMPANY [OWNER TRUSTEE]
				  ACCT
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 

 

	 
		* Deutsche Bank Trust Company Americas
		– NY
	 

	 
		ABA #: 021-001-033
	 

	 
		Account #: 
	 

	 
		Account Name: [Deutsche Bank Trust Company
		Americas as Security Trustee for [THE COMPANY-THE COMPANY] Rental
		   Account]
	 

	 
			
				
				  Reference: [  
				

			 	
				
				  ] Funding
				

			 

 

	 
		Attn:
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		List of Persons within the Company 
	 

	 
		Group and Jurisdictions
	 

	 
		Babcock & Brown Air Funding I Limited
		Non-Corporate Entities
	 

	 
		Babcock & Brown Air Funding I Limited
		Corporate Entities
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		SCHEDULE 4.04(a) TO
	 

	 
		THE SERVICING AGREEMENT 
	 

	 
		______________
	 

	 
		* These Persons will be within the Company
		Group as of the Closing Date. All other Persons will be within the Company
		Group as of the date of each such Persons’ applicable BI Transfer Date (as
		defined in the Asset Purchase Agreement).
	 

	 
		 
	 

	 
		 
	 

	 
		SCHED 4.04(a) -2
	 

	 
		 
	 

	 
	 

	 

	 
		Responsibilities of the Company
		Group
	 

	 
			
				
				  A.
				

			 	
				
				  With respect to Aircraft Assets,
				  each Person within the Company Group shall retain such responsibilities as are
				  expressly set forth in Article VII of the Servicing Agreement.
				

			 

 

	 
			
				
				  B.
				

			 	
				
				  Each of the Company and each other
				  Person within the Company Group shall be responsible for, and the Servicer
				  shall have no responsibilities in respect of, assets which do not constitute
				  Aircraft Assets and for any or all the Company Group Liabilities.
				

			 

 

	 
			
				
				  C.
				

			 	
				
				  Each of the Company and each other
				  Person within the Company Group shall be responsible for, and the Servicer
				  shall have no responsibilities in respect of, all finance functions which are
				  not expressly the responsibility of the Servicer under the Servicing Agreement.
				  Such responsibilities of the Company Group shall include:
				

			 

 

	 
			
				
				   
				

			 	
				
				  (i)
				

			 	
				
				  all matters relating to the
				  arrangement and procurement of any financings of any type or nature for the
				  Company Group;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (ii)
				

			 	
				
				  all matters relating to the
				  management of borrowings and payments under such financings and the management
				  of the respective borrowers’ or issuers’, as the case may be,
				  compliance with the terms of such financings, including compliance with the
				  reporting requirements thereunder and any computations required in connection
				  with such reporting;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (iii)
				

			 	
				
				  all matters relating to the
				  arrangement and procurement of refinancings of any type or nature of any
				  outstanding indebtedness of the Company Group;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (iv)
				

			 	
				
				  all matters relating to the
				  restructuring of any type or nature of any indebtedness of the Company Group;
				  and
				

			 

 

	 
			
				
				   
				

			 	
				
				  (v)
				

			 	
				
				  all communications with creditors
				  (other than trade creditors and Lessees) of any type or nature of the Company
				  Group.
				

			 

 

	 
		It is expressly understood by the parties
		that while the Servicer will, to the extent expressly provided in Schedule
		2.02(a) to the Servicing Agreement, provide the Company with assistance and
		information required to assist in its compliance with its obligations and
		covenants under the Indenture to the extent such compliance specifically
		relates to the Services, the Servicer shall not deal directly with any
		creditors of any Person within the Company Group, except to the extent such
		dealings with trade creditors are incidental to the Servicer’s provision
		of the Services under the Servicing Agreement.
	 

	 
			
				
				  D.
				

			 	
				
				  Each of the Company and each other
				  Person within the Company Group shall be responsible for, and the Servicer
				  shall have no responsibilities in respect of, all treasury functions of the
				  Company Group that are not expressly the responsibility of the Servicer under
				  the Servicing Agreement, including:
				

			 

 

	 
			
				
				   
				

			 	
				
				  (i)
				

			 	
				
				  cash management;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (ii)
				

			 	
				
				  currency and interest rate risk
				  management (including the establishment of related policies and the arrangement
				  and procurement of appropriate swap programs); and
				

			 

 

	 
			
				
				   
				

			 	
				
				  (iii)
				

			 	
				
				  reconciliation of all Bank
				  Account-related information.
				

			 

 

	 
		 
	 

	 

	 
	 

	 

	 
		SCHEDULE 7.01 TO
	 

	 
		SERVICING AGREEMENT
	 

	 
		 
	 

	 
			
				
				  E.
				

			 	
				
				  Each of the Company and each other
				  Person within the Company Group shall be responsible for, and the Servicer
				  shall have no responsibilities in respect of, all accounting functions not
				  expressly the responsibility of the Servicer under the Servicing Agreement,
				  including:
				

			 

 

	 
			
				
				   
				

			 	
				
				  (i)
				

			 	
				
				  the monitoring of cash receipts and
				  disbursements and accounts payable and accounts receivable of the Company
				  Group;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (ii)
				

			 	
				
				  the promulgation, maintenance,
				  interpretation, amending and supplementing of accounting policies for the
				  Company Group, and the review and approval of any potential exceptions to the
				  accounting policies established by the Company Group;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (iii)
				

			 	
				
				  maintaining the accounting ledgers,
				  preparing balance sheets, statements of changes in shareholders’ equity
				  and statements of income and cash flows and arranging for financial audits, as
				  required, and for the preparation of audited financial reports for the Company
				  Group;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (iv)
				

			 	
				
				  the provision of overhead services
				  to the Company Group; and
				

			 

 

	 
			
				
				   
				

			 	
				
				  (v)
				

			 	
				
				  preparing annual Lease Operating
				  Budgets and Aircraft Asset Expenses Budgets, preparing and analyzing actual
				  results to budget and performing profitability analysis.
				

			 

 

	 
			
				
				  F.
				

			 	
				
				  Each of the Company and each other
				  Person within the Company Group shall be responsible for, and the Servicer
				  shall have no responsibilities in respect of, all corporate secretarial
				  activities and other matters related to the existence of any Person within the
				  Company Group.
				

			 

 

	 
			
				
				  G.
				

			 	
				
				  Each of the Company and each other
				  Person within the Company Group shall be responsible for, and the Servicer
				  shall have no responsibilities in respect of, all matters relating to the
				  holders of the share capital, beneficial interests or membership interests of
				  any Person within the Company Group.
				

			 

 

	 
			
				
				  H.
				

			 	
				
				  Each of the Company and each other
				  Person within the Company Group shall be responsible for, and the Servicer
				  shall have no responsibilities in respect of, all legal and regulatory matters
				  which are not expressly the responsibility of the Servicer under the Servicing
				  Agreement, including:
				

			 

 

	 
			
				
				   
				

			 	
				
				  (i)
				

			 	
				
				  the preparation and filing of
				  reports required to be filed with the U.S. Securities and Exchange Commission,
				  any securities exchange or any other Governmental Authority;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (ii)
				

			 	
				
				  all legal services (including the
				  negotiation of documents) not constituting the provision of Services relating
				  to all matters described herein for which any Person within the Company Group
				  has responsibility;
				

			 

 

	 
			
				
				   
				

			 	
				
				  (iii)
				

			 	
				
				  the preparation and filing of
				  corporate and tax returns of each Person within the Company Group with any
				  Governmental Authority; and
				

			 

 

	 
			
				
				   
				

			 	
				
				  (iv)
				

			 	
				
				  the preparation of business plans,
				  forecasts or other similar activities.
				

			 

 

	 
			
				
				  I.
				

			 	
				
				  Each of the Company and each other
				  Person within the Company Group shall be responsible for, and the Servicer
				  shall have no responsibilities in respect of, any and all litigation or other
				  legal proceedings against or brought by any Person within the Company Group,
				  other than enforcement actions relating to any Aircraft Assets (including any
				  counterclaim arising from any such action 
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		SCHED 7.01 - 2
	 

	 
		 
	 

	 
	 

	 

	 
		SCHEDULE 7.01 TO
	 

	 
		SERVICING AGREEMENT
	 

	 
		 
	 

	 
		to the extent any such counterclaim relates
		to the Aircraft Assets) brought by the Company or any other Person within the
		Company Group commencing after the date of the Servicing Agreement.
	 

	 
			
				
				  J.
				

			 	
				
				  Each of the Company and each other
				  Person within the Company Group shall be responsible for, and the Servicer
				  shall have no responsibilities in respect of, the arrangement and procurement
				  of all insurance, other than insurance related to the Aircraft Assets which the
				  Servicer is to arrange and procure (at the expense of the Company Group) under
				  the Servicing Agreement.
				

			 

 

	 
			
				
				  K.
				

			 	
				
				  Each of the Company and each other
				  Person within the Company Group shall be responsible for, and the Servicer
				  shall have no responsibilities in respect of, employees of any Person within
				  the Company Group.
				

			 

 

	 
			
				
				  L.
				

			 	
				
				  Each of the Company and each other
				  Person within the Company Group, shall be responsible for, and the Servicer
				  shall have no responsibilities in respect of purchases, purchase orders and
				  options to purchase Aircraft, except to the extent the same constitute the
				  provision of Services, or in respect of the decision to sell an Aircraft
				  Asset.
				

			 

 

	 
			
				
				  M.
				

			 	
				
				  Except to the extent expressly
				  provided for in Section 2.3 of Schedule 2.02(a) to the Servicing Agreement,
				  each of the Company and each other Person within the Company Group shall be
				  responsible for, and the Servicer shall have no responsibilities in respect of,
				  keeping the Company in compliance with their obligations and covenants under
				  the Security Trust Agreement.
				

			 

 

	 
		Notwithstanding anything contained herein to
		the contrary, the Company acknowledges and agrees that it shall be responsible
		for, and the Servicer shall not have any responsibility for, (a) any securities
		law or other obligations to any holders of outstanding Notes or to Babcock
		& Brown Air Limited, any holders of any other securities issued by any
		Person within the Company Group or any Governmental Authorities and (b) all
		instructions, discretion, judgments and assumptions related to such
		obligations, and the Company agrees to indemnify the Servicer and its
		Affiliates in respect of the foregoing as further provided in Section 11.05 of
		the Servicing Agreement.
	 

	 
		 
	 

	 
		 
	 

	 
		SCHED 7.01 - 3
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
		 
	 

	 
		Liabilities Incurred in Ordinary Course
		of Business
	 

	 
			
				
				  1.
				

			 	
				
				  Acquisitions, dispositions or
				  replacements of Aircraft, Engines or Parts (including BFE and IFE) including,
				  without limitation, by leasing in.
				

			 

 

	 
			
				
				  2.
				

			 	
				
				  Modifications, maintenance,
				  overhauls, repairs, upgrades or other technical expenditures.
				

			 

 

	 
			
				
				  3.
				

			 	
				
				  Dry Leases and wet Leases (including
				  extensions, renewals, amendments and terminations thereof).
				

			 

 

	 
			
				
				  4.
				

			 	
				
				  Repossessions.
				

			 

 

	 
			
				
				  5.
				

			 	
				
				  Registrations and
				  Deregistrations.
				

			 

 

	 
			
				
				  6.
				

			 	
				
				  Governmental approvals,
				  certifications, permits, licenses, consents, filings and authorizations.

				

			 

 

	 
			
				
				  7.
				

			 	
				
				  Third party professional services
				  including, without limitation, legal, tax advisory and insurance.
				

			 

 

	 
			
				
				  8.
				

			 	
				
				  Taxes.
				

			 

 

	 
			
				
				  9.
				

			 	
				
				  Aircraft operator transition costs
				  (including, without limitation, flight operations, storage and maintenance,
				  technical consultants costs, and purchase, storage and scrapping of spare
				  Parts).
				

			 

 

	 
			
				
				  10.
				

			 	
				
				  Lessee Liens.
				

			 

 

	 
			
				
				  11.
				

			 	
				
				  Insurance.
				

			 

 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		Conditions to Execution
	 

	 
		1. Each Person within the Company Group
		(other than the Company) as to which a request therefore has been made shall
		have executed and delivered a Company Group Guarantee in favor of the Servicer
		substantially in the form attached to the Servicing Agreement as Appendix
		B.
	 

	 
		2. Each appendix, annex, exhibit or schedule
		to the Servicing Agreement and each Company Group Guarantee shall have been
		completed to the reasonable satisfaction of the Servicer and delivered with the
		Servicing Agreement and the Company Group Guarantees on the Closing
		Date.
	 

	 
		3. The Aircraft Assets Related Documents
		shall have been delivered to the Servicer, pursuant to Sections 2.02(f) and
		4.02 of the Servicing Agreement, at the Servicer’s offices in Shannon,
		Ireland, on or prior to the Closing Date.
	 

	 
		4. Each person within the Company Group
		shall have executed and delivered to the Servicer the acknowledged power of
		attorney contemplated by Section 13.02 of the Servicing Agreement.
	 

	 
		5. The Company shall have delivered to the
		Servicer a copy of the Indenture, certified by the Company as a true and
		complete copy thereof.
	 

	 
		6. The Company and each other Person within
		the Company Group shall have delivered to the Servicer satisfactory evidence,
		in the reasonable judgment of the Servicer, as to the appointment of agents for
		service of process as required by the Documentary Conventions set forth in
		Appendix A to the Servicing Agreement.
	 

	 
		7. The Company and each other Person within
		the Company Group shall have delivered to the Servicer, in form and substance
		reasonably satisfactory to the Servicer:
	 

	 
		(A) a certificate dated the Closing Date of
		the secretary, any assistant secretary or other appropriate officer of each
		such Person certifying as to:
	 

	 
		(1) the attached corporate charter, by-laws
		and other constituent documents of such Person, recently certified, in the case
		of any such document filed with the secretary of state or similar Governmental
		Authority of the jurisdiction in which such Person is organized by such
		Governmental Authority;
	 

	 
		(2) the absence of amendments to any
		constituent document since the date of the last amendment (a) shown on the
		official evidence as to filed constituent documents furnished pursuant to (B)
		below if such official evidence is available and (b) in any event reflected in
		the constituent documents furnished pursuant to (1) above;
	 

	 
		(3) resolutions or other written evidence of
		corporate action of the board of directors (or appropriate committee thereof)
		and, if applicable, the shareholders of such Person duly authorizing or
		ratifying the execution, delivery and performance by such Person of the
		Servicing Agreement and the Company Group Guarantee, as applicable, to which it
		is or is to be party and the absence of any modification, amendment or
		revocation thereof or any other resolutions relating thereto;
	 

	 
		(4) the absence of proceedings for the
		dissolution, liquidation, receivership or similar proceedings with respect to
		such Person;
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		SCHEDULE 8.01 TO
THE SERVICING AGREEMENT
	 

	 
		 
	 

	 
		(5) if applicable, its corporate seal;
		and
	 

	 
		(6) the incumbency and signatures of the
		individuals authorized to execute and deliver documents on such Person’s
		behalf; and
	 

	 
		(B) to the extent available from appropriate
		Governmental Authorities, recent official evidence from appropriate
		Governmental Authorities of appropriate jurisdictions as to constituent
		documents on file, good standing, payment of franchise taxes and qualification
		to do business in the jurisdiction in which such Person is organized.
	 

	 
		8. The Company and each other Person within
		the Company Group shall have delivered to the Servicer an Officer’s
		Certificate dated the Closing Date, in form and substance reasonably
		satisfactory to the Servicer, stating that:
	 

	 
		(A) each representation and warranty of such
		Person contained in the Servicing Agreement and the Company Group Guarantee, as
		applicable, is true and correct as of the Closing Date;
	 

	 
		(B) such Person has duly performed and
		complied in all material respects with all covenants, agreements and conditions
		contained in the Servicing Agreement and the Company Group Guarantee, as
		applicable, required to be performed or complied with by it on or before the
		Closing Date;
	 

	 
		(C) no event has occurred and is continuing
		or condition exists or would result from the consummation of any transaction
		contemplated by the Servicing Agreement or the Company Group Guarantee, as
		applicable, to which such Person is a party that constitutes, or with the
		giving of notice or lapse of time or both would constitute, a default in any
		material respect under such Servicing Agreement or the Company Group Guarantee,
		as applicable, or a breach thereof or would give any party thereto the right to
		terminate, or not to perform any material obligation under, any thereof;
		and
	 

	 
		(D) the Servicing Agreement and the Company
		Group Guarantee, as applicable, to which it is a party is in full force and
		effect with respect to it, has not been amended, modified or terminated and
		constitutes its legal, valid and binding obligation enforceable against it in
		accordance with its terms (subject to bankruptcy and similar laws applicable to
		creditors’ rights generally and to general equitable principles).
	 

	 
		9. The Servicer (and such Affiliates of the
		Servicer that the Servicer designates as addressees) shall have received legal
		opinions dated as of the Closing Date, which shall cover the following matters
		and shall also cover such other matters as the Servicer and its counsel may
		reasonably request:
	 

	 
		(A) Each of the Company and each other
		Person within the Company Group has been duly organized and is validly existing
		as a trust, a corporation or a limited liability company in good standing under
		the laws of its jurisdiction or organization, incorporation or formation,
		respectively.
	 

	 
		(B) Neither the execution and delivery of
		the Servicing Agreement and the Company Group Guarantee, as applicable, nor the
		consummation of the transactions contemplated thereby nor the performance by
		the Company or any other Person within the Company Group of any of their
		obligations thereunder in accordance with the terms thereof will (i) violate
		any order, writ, injunction, judgment or decree in effect as of the date hereof
		of any [insert appropriate courts] to
	 

	 
		 
	 

	 
		 
	 

	 
		SCHED 8.01 - 2
	 

	 
		 
	 

	 
	 

	 

	 
		SCHEDULE 8.01 TO
THE SERVICING AGREEMENT
	 

	 
		 
	 

	 
		which the Company or any other Person within
		the Company Group, or any of their respective Affiliates, is a party or by
		which any of their respective properties or assets are bound, (ii) violate in
		any material respect any applicable law of [insert applicable law] in effect as
		of the date hereof or (iii) result in any conflict with, breach of or default
		(or give rise to any right of termination, cancellation or acceleration) under,
		any of the terms, conditions or provisions of any note, bond, mortgage,
		indenture, warrant or other similar instrument or any license, permit material
		agreement or other material obligation to which any such Person is a party or
		by which any such Person’s properties or assets may be bound.
	 

	 
		(C) Upon execution and delivery thereof, the
		Servicing Agreement and the Company Group Guarantee, as applicable, to which
		the Company and each other Person within the Company Group is a party shall be
		valid and legally binding on and enforceable against such party in accordance
		with its terms, subject to applicable bankruptcy, reorganization, insolvency,
		fraudulent transfer, moratorium or other laws affecting creditors’ rights
		generally from time to time in effect and to general equity principles
		regardless of whether such enforceability is considered in a proceeding in
		equity or at law.
	 

	 
		(D) No action, consent or approval by, or
		filing with, any [insert appropriate Governmental Authorities] or other third
		party is required in connection with the execution, delivery or performance by
		the Company or any other Person within the Company Group of the Servicing
		Agreement and the Company Group Guarantee, as applicable, to which it is a
		party or the consummation by the Company or any other Person within the Company
		Group of the transactions contemplated thereby.
	 

	 
		10. The Servicer shall have delivered to the
		Company, in form and substance reasonably satisfactory to the Company:
	 

	 
		(A) a certificate dated the Closing Date of
		the secretary, any assistant secretary or other appropriate officer of the
		Servicer certifying as to:
	 

	 
		(1) the attached corporate charter, by-laws
		and other constituent documents of the Servicer, recently certified, in the
		case of any such document filed with the secretary of state or similar
		Governmental Authority of the jurisdiction in which the Servicer is organized
		by such Governmental Authority;
	 

	 
		(2) the absence of amendments to any
		constituent document since the date of the last amendment (a) shown on the
		official evidence as to filed constituent documents furnished pursuant to (B)
		below if such official evidence is available and (b) in any event reflected in
		the constituent documents furnished pursuant to (1) above;
	 

	 
		(3) resolutions or other written evidence of
		corporate action of the board of directors (or appropriate committee thereof)
		and, if applicable, the shareholders of the Servicer duly authorizing or
		ratifying the execution, delivery and performance by the Servicer of the
		Servicing Agreement and the absence of any modification, amendment or
		revocation thereof or any other resolutions relating thereto;
	 

	 
		(4) the absence of proceedings for the
		dissolution, liquidation, receivership or similar proceedings with respect to
		the Servicer;
	 

	 
		(5) if applicable, its corporate seal;
		and
	 

	 
		 
	 

	 
		 
	 

	 
		SCHED 8.01 - 3
	 

	 
		 
	 

	 
	 

	 

	 
		SCHEDULE 8.01 TO
THE SERVICING AGREEMENT
	 

	 
		 
	 

	 
		(6) the incumbency and signatures of the
		individuals authorized to execute and deliver documents on the Servicer’s
		behalf; and
	 

	 
		(B) to the extent available from appropriate
		Governmental Authorities, recent official evidence from appropriate
		Governmental Authorities of appropriate jurisdictions as to constituent
		documents on file, payment of franchise taxes and qualification to do business
		in the jurisdiction in which the Servicer is organized.
	 

	 
		11. The Servicer shall have delivered to the
		Company an Officer’s Certificate dated the Closing Date, in form and
		substance reasonably satisfactory to the Company, stating that:
	 

	 
		(A) each representation and warranty of the
		Servicer contained in the Servicing Agreement is true and correct as of the
		Closing Date;
	 

	 
		(B) the Servicer has duly performed and
		complied in all material respects with all covenants, agreements and conditions
		contained in the Servicing Agreement required to be performed or complied with
		by it on or before the Closing Date;
	 

	 
		(C) no event has occurred and is continuing
		or condition exists or would result from the consummation of any transaction
		contemplated by the Servicing Agreement that constitutes, or with the giving of
		notice or lapse of time or both would constitute, a default in any material
		respect under the Servicing Agreement or a breach thereof or would give any
		party thereto the right to terminate, or not to perform any material obligation
		under, the Servicing Agreement; and
	 

	 
		(D) the Servicing Agreement is in full force
		and effect with respect to it, has not been amended, modified or terminated and
		constitutes its legal, valid and binding obligation enforceable against it in
		accordance with its terms (subject to bankruptcy and similar laws applicable to
		creditors’ rights generally and to general equitable principles).
	 

	 
		12. The Company shall have received legal
		opinions dated as of the Closing Date, covering matters comparable to those set
		forth in Section 9 above, with respect to the Servicer.
	 

	 
		 
	 

	 
		 
	 

	 
		SCHED 8.01 - 4
	 

	 
		 
	 

	 
	 

	 

	 
		Overhead Expenses
	 

	 
			
				
				  1.
				

			 	
				
				  Salary, bonuses, company cars and
				  benefits of Servicer’s employees.
				

			 

 

	 
			
				
				  2.
				

			 	
				
				  Entertainment expenses of
				  Servicer’s employees.
				

			 

 

	 
			
				
				  3.
				

			 	
				
				  Office, office equipment and rental
				  expenses of the Servicer.
				

			 

 

	 
			
				
				  4.
				

			 	
				
				  Telecommunications expenses of the
				  Servicer.
				

			 

 

	 
			
				
				  5.
				

			 	
				
				  Advertising and promotional expenses
				  of the Servicer.
				

			 

 

	 
			
				
				  6.
				

			 	
				
				  Taxes on the income, receipts,
				  profits, gains, net worth or franchise of the Servicer and payroll, employment
				  and social security Taxes for employees of the Servicer.
				

			 

 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		Categories of Aircraft Asset
		Expenses
	 

	 
			
				
				  1.
				

			 	
				
				  Storage, maintenance, repossession
				  (whether or not successful), reconfiguration, refurbishment, delivery,
				  redelivery, and repair expenses relating to Aircraft Assets, including all
				  expenses incurred by the Servicer relating to compliance with airworthiness
				  directives and service bulletins, which include the fees and expenses of
				  independent technicians and other experts retained for any of the foregoing
				  purposes.
				

			 

 

	 
			
				
				  2.
				

			 	
				
				  Insurance expense related to
				  Aircraft Assets, including all fees and expenses of insurance advisors and
				  brokers.
				

			 

 

	 
			
				
				  3.
				

			 	
				
				  Expenses incurred in connection with
				  the effectuation or acceptance of delivery of any Aircraft Asset, whether being
				  sold or leased by any Person within the Company Group.
				

			 

 

	 
			
				
				  4.
				

			 	
				
				  Special studies expenses related to
				  Aircraft Assets authorized by any Person within the Company Group and fees and
				  expenses of independent advisors retained for providing valuation and appraisal
				  services and general financial advice such as structuring leases and sales and
				  financing transactions.
				

			 

 

	 
			
				
				  5.
				

			 	
				
				  Outside legal counsel, advisory fees
				  and expenses and other professional fees and expenses related to Aircraft
				  Assets (including in connection with the purchase, sale, delivery, redelivery,
				  lease, re-lease, lease extension or repossession of Aircraft Assets or any
				  enforcement actions relating to any lease).
				

			 

 

	 
			
				
				  6.
				

			 	
				
				  Subject to Section 7.04 of the
				  Servicing Agreement, extraordinary fees and expenses not incurred in the
				  ordinary course of business, which the Servicer reasonably determines
				  appropriate in rendering the Services.
				

			 

 

	 
			
				
				  7.
				

			 	
				
				  Taxes reimbursable to Servicer
				  pursuant to Section 9.07.
				

			 

 

	 
			
				
				  8.
				

			 	
				
				  Any other expenses relating to or
				  associated with Aircraft Assets other than Overhead Expenses of the Servicer
				  and such Overhead Expenses of the Company Group as are expressly the
				  responsibility of the Servicer under Section 9.06(a) of the Servicing Agreement
				  and other than expenses specifically prohibited to be incurred by the Servicer
				  under Section 7.04 of the Servicing Agreement.
				

			 

 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		MANAGEMENT SERVICES
	 

	 
		 
	 

	 
		POWER OF ATTORNEY
	 

	 
		 
	 

	 
		OF
	 

	 
		 
	 

	 
		[GRANTOR]
	 

	 
		WHEREAS [GRANTOR], having its [registered]
		office at [insert address] desires to appoint Babcock & Brown Aircraft
		Management (Europe) Limited having its registered office at West Pier Dun
		Loaghaire, County Dublin , Ireland (“the Attorney”) as the true and
		lawful attorney of the Grantor for and in the name of and on behalf of the
		Grantor in such Attorney’s absolute discretion to execute each and every
		Requisite Document and Requisite Act as defined below and do all or any of the
		acts or things hereinafter mentioned.
	 

	 
		KNOW ALL MEN BY THESE PRESENTS that in
		consideration for the mutual promises and benefits set forth in the Servicing
		Agreement (defined below) the Grantor does hereby make, constitute and
		irrevocably and unconditionally appoint for the period (the “Term”)
		as and from the date hereof until termination or expiry of the Servicing
		Agreement between ________________ and [Babcock & Brown] Aviation Services
		Limited dated as of ________ (“the Servicing Agreement”), in
		accordance with its terms, the Attorney as a true and lawful attorney of the
		Grantor for and in the name of and on behalf of the Grantor with absolute
		discretion to exercise, do, execute and/or deliver all or any of the acts,
		documents and things hereinafter mentioned, that is to say:
	 

	 
			
				
				  1.
				

			 	
				
				  To negotiate, approve, settle the
				  terms of, agree, make, sign, execute (whether under hand or seal) and deliver
				  all deeds, agreements, documents, commitments, arrangements, instruments,
				  applications, oaths, affidavits, declarations, notices, confirmations,
				  certificates, approvals, acceptances, deliveries and to do all other acts,
				  matters and things whatsoever which are in each case necessary or desirable for
				  the Attorney to do for and on behalf of the Grantor in respect of the provision
				  of the Services (as defined in and contemplated by the Servicing Agreement)
				  (each such document a “Requisite Document” and each such act a
				  “Requisite Act”).
				

			 

 

	 
			
				
				  2.
				

			 	
				
				  To make such amendments,
				  modifications and variations to the Requisite Documents and to enter into
				  ancillary documentation in respect thereof, all on such terms as any such
				  Attorney may, in its sole discretion, determine from time to time for and on
				  behalf of the Grantor; and to make, give, sign, execute and do all things
				  including, without limitation, any material acts which may be necessary in
				  order to effect the terms of such Requisite Documents or in connection with the
				  making, signature, executions and delivery of the Requisite Documents or any
				  other documents required to be executed by the Grantor in connection therewith
				  or the performance of any acts, matters and things contemplated thereby or by
				  the Requisite Acts as may be necessary in accordance with the provision of the
				  Services.
				

			 

 

	 
			
				
				  3.
				

			 	
				
				  To nominate and appoint one or more
				  substitutes as attorney or attorneys under it for all and any of the purposes
				  aforesaid and the appointment of same with liberty to revoke.
				

			 

 

	 
			
				
				  4.
				

			 	
				
				  To acknowledge this Power of
				  Attorney as the act and deed of the Grantor and generally to do all other acts
				  which may be necessary and desirable for carrying the purpose of this Power of
				  Attorney into effect.
				

			 

 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		SCHEDULE 13.02 TO THE
SERVICING AGREEMENT
	 

	 
		 
	 

	 
		IT IS HEREBY DECLARED THAT:-
	 

	 
			
				
				   
				

			 	
				
				  (A)
				

			 	
				
				  The Grantor hereby ratifies and
				  confirms and agrees to ratify and confirm whatsoever any Attorney shall do or
				  cause to be done in, or by virtue of this Power of Attorney as long as such act
				  is not inconsistent with the terms of the Servicing Agreement or this Power of
				  Attorney or in violation of Applicable Law.
				

			 

 

	 
			
				
				   
				

			 	
				
				  (B)
				

			 	
				
				  This Power of Attorney shall be
				  irrevocable for the Term and at all times both before and after the Term shall
				  be conclusive and binding upon the Grantor and no person or corporation having
				  dealings with any Attorney under this Power of Attorney shall be under any
				  obligation to make any inquiries as to whether or not this Power of Attorney
				  has been revoked and all acts hereunder shall be valid and binding on the
				  Grantor unless express notice of its revocation shall have been received by
				  such person or corporation.
				

			 

 

	 
			
				
				   
				

			 	
				
				  (C)
				

			 	
				
				  Subject to the provisions of the
				  Servicing Agreement the Grantor unconditionally undertakes to indemnify and
				  keep indemnified each Attorney and his agents, and their respective successors
				  and estates, against all actions, proceedings, claims, costs, expenses and
				  liabilities of whatsoever nature arising from the exercise or purported
				  exercise in good faith of any of the powers conferred on each Attorney by this
				  Power of Attorney.
				

			 

 

	 
			
				
				   
				

			 	
				
				  (D)
				

			 	
				
				  Subject to the provisions of the
				  Servicing Agreement any Attorney or other person, making or doing any payment
				  or act, in good faith, in pursuance of this Power of Attorney shall not be
				  liable in respect of the payment or act by reason that before the payment or
				  act the Grantor was insolvent or had revoked this power if the fact of such
				  insolvency or revocation was not at the time of payment or act known to the
				  Attorney or other person making or doing same.
				

			 

 

	 
			
				
				   
				

			 	
				
				  (E)
				

			 	
				
				  The particular powers enumerated
				  above shall be given the widest interpretation.
				

			 

 

	 
			
				
				   
				

			 	
				
				  (F)
				

			 	
				
				  THIS POWER OF ATTORNEY SHALL BE
				  GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF [THE STATE OF NEW
				  YORK] [IRELAND].
				

			 

 

	 
		IN WITNESS WHEREOF the Grantor has caused
		this Power of Attorney duly executed by the Grantor this day of
		[    ], [    ].
	 

	 
		 
	 

	 
			
				
				  SIGNED BY: 
				

			 	
				
				

			 	
				
				   
				

			 	
				
				

			 
	
				
				  For and on behalf of

				  [GRANTOR]
 in the presence of:
				

			 	
				
				   
				

			 	
				
				   
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		SCHED 13.02 - 2
	 

	 
		 
	 

	 
	 

	 

	 
		INSURANCE GUIDELINES
	 

	 
			
				
				  1.
				

			 	
				
				  Hull and Repossession
				  Insurance: With respect to any Aircraft
				  Asset, hull and, when applicable, repossession insurance shall be maintained in
				  an amount equal to the greatest of (a) the Note Target Price for such Aircraft
				  (as such Note Target Price is set forth on Schedule 1(a) attached hereto, as
				  the same shall be calculated in writing from time to time by the Company in
				  accordance with the Indenture, which calculation the Company shall provide to
				  Servicer promptly after any change in any such Note Target Price), (b) the
				  appraised value for such Aircraft (as such appraised value is set forth on
				  Schedule 1(b) attached hereto, as the same shall be updated in writing from
				  time to time by the Company in accordance with the Indenture, which update the
				  Company shall provide to Servicer promptly after any change in any such
				  appraised value), (c) 110% of the net book value of such Aircraft (as such net
				  book value is set forth on Schedule 1(c) attached hereto, as the same shall be
				  determined in writing from time to time by the Company in accordance with its
				  financial statements prepared as provided in the Indenture, which determination
				  the Company shall provide to Servicer promptly after any change in such net
				  book value), and (d) such other amounts as may be directed in writing by the
				  Company from time to time. Spare engines and parts, if any, shall be insured on
				  the basis of their “replacement cost”.
				

			 

 

	 
			
				
				  2.
				

			 	
				
				  Liability
				  Insurance: Liability insurance shall be
				  maintained for each Aircraft Asset and occurrence in an amount not less than
				  the amount set forth on Schedule 2 attached hereto. Liability insurance shall
				  be maintained for each non-passenger Aircraft Asset and occurrence in an amount
				  not less than 75% of the amounts set forth on Schedule 2. With respect to each
				  Aircraft Asset acquired pursuant to the Asset Purchase Agreement, liability
				  insurance shall include, without limitation, cover, to the extent generally
				  available in the leading insurance markets, for the indemnity of each Purchaser
				  (as defined in the Asset Purchase Agreement) contained in Section 10.1 of the
				  Asset Purchase Agreement, with the relevant Seller Indemnitees (as defined in
				  the Asset Purchase Agreement) as additional insureds, during the period
				  commencing on the date of Delivery of the relevant Aircraft Asset and ending on
				  the earlier of (i) the second anniversary of the date of such Delivery and (ii)
				  the date of completion of the next major check in respect of the relevant
				  Aircraft Asset. The amounts of liability insurance applicable to an Aircraft
				  Asset that is in storage or otherwise grounded may be reduced in a manner
				  consistent this Schedule 2.
				

			 

 

	 
			
				
				  3.
				

			 	
				
				  Insurance Deductibles:

				

			 

 

	 
			
				
				   
				

			 	
				
				  (a)
				

			 	
				
				  Deductibles and self-insurance for
				  Aircraft Assets subject to a Lease may be maintained in an amount determined by
				  the Servicer consistent with the customary practices of major international
				  aircraft operating lessors regarding similar aircraft.
				

			 

 

	 
			
				
				   
				

			 	
				
				  (b)
				

			 	
				
				  Deductibles for Aircraft Assets
				  off-lease shall be maintained in respect of any one occurrence in respect of
				  such Aircraft Assets in an amount not to exceed $1,000,000, but in no event
				  greater than the deductibles generally used for other aircraft owned or, to the
				  extent that the Servicer has the discretion to decide the levels of deductibles
				  for such aircraft, managed by the Servicer.
				

			 

 

	 
			
				
				  4.
				

			 	
				
				  Repossession
				  Insurance: Subject to prior
				  confirmation from the Company on a case by case basis, repossession insurance
				  shall be maintained for Aircraft Assets subject to a Lease that are or will be
				  registered in any jurisdiction listed on Schedule 4 attached hereto.
				

			 

 

	 
			
				
				  5.
				

			 	
				
				  Other Insurance
				  Matters: Apart from the matters set
				  forth above, the coverage and terms of any insurance with respect to any
				  Aircraft Assets (a) subject to a Lease, shall be negotiated on a basis
				

			 

 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		ANNEX 1 TO THE 
SERVICING AGREEMENT
	 

	 
		 
	 

	 
		consistent with Sections 3(b) and (c) of
		Schedule 2.02(a) to the Servicing Agreement and (b) not subject to a Lease,
		shall be substantially consistent with customary practices of the Servicer
		regarding similar equipment.
	 

	 
			
				
				  6.
				

			 	
				
				  Named Insureds: Any insurance arrangements entered into with respect
				  to any Aircraft Assets shall include as named insureds such Persons as are set
				  forth on Schedule 6 attached hereto. The Servicer shall use commercially
				  reasonable efforts to cause Lessees to include the Persons set forth in such
				  clauses as named insureds in connection with liability insurance;
				  provided that to the extent that a Lessee is not willing to
				  include such Persons, the Servicer will, subject to the provisions of the
				  Servicing Agreement and at the expense of the Company, arrange for alternative
				  liability insurance coverage with respect to such Persons. The Servicer shall,
				  and such of its Affiliates as it determines appropriate may, in the
				  Servicer’s sole discretion, be named as additional insureds in connection
				  with any such liability insurance arrangements.
				

			 

 

	 
			
				
				  7.
				

			 	
				
				  Currencies: Any insurance requirement stated in U.S. dollar terms
				  shall be interpreted to include the foreign currency equivalent thereto from
				  time to time if any such insurance related thereto is denominated in a currency
				  other than U.S. dollars that is freely convertible into U.S. dollars.
				

			 

 

	 
			
				
				  8.
				

			 	
				
				  Availability: The insurance guidelines set forth herein are subject
				  in all cases to such insurance being generally available in the relevant
				  insurance market, or under applicable governmental programs, from time to
				  time.
				

			 

 

	 
			
				
				  9.
				

			 	
				
				  Revisions to Required Amounts of
				  Insurance: The Company shall use
				  commercially reasonable efforts to provide to the Servicer recalculations of
				  the amount set forth in Schedules 1(a) and 1(c) attached hereto, on an annual
				  basis, and Schedule 1(b) attached hereto, on an annual basis, promptly
				  following receipt or calculation by the Company of the relevant information
				  that would form the basis of any such recalculation. With respect to each
				  proposed recalculation or determination to any schedule to this Annex 1, the
				  Company shall provide the Servicer with a copy thereof. The Servicer shall not
				  be required to implement any change in the amount of insurance required to be
				  maintained with respect to any Aircraft Asset pursuant to Section 1.3 of
				  Schedule 2.02(a) to the Servicing Agreement and this Annex 1 as a result of the
				  receipt by the Servicer from the Company of any written notice, direction,
				  recalculation, determination or similar communication pursuant to this Annex 1
				  until the seventh Business Day following receipt thereof (including, with
				  respect to the immediately preceding sentence, receipt of the items listed
				  therein).
				

			 

 

	 
			
				
				  10.
				

			 	
				
				  War Risk
				  Insurance. War risk hull and liability
				  insurance in respect of the Aircraft Assets shall be maintained by the Servicer
				  in accordance with Section 5.03(g) of the Indenture.
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		ANNEX 1 - 2
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
		 
	 

	 
		Note Target Price
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  Serial 
 Number
				

			 	
				
				   
				

			 	
				
				  Type
				

			 	
				
				   
				

			 	
				
				  Outstanding

				  Principal Balance
 Allocable to Aircraft ($)
				

			 	
				
				   
				

			 	
				
				  Note 
 Target Price ($)
				

			 
	
				
				  1
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Airbus A330-200
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  2
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Airbus A320-200
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  3
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Airbus A319-100
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  4
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Airbus A319-100
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  5
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Airbus A320-200
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  6
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Airbus A320-200
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  7
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Airbus A320-200
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  8
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Airbus A320-200
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  9
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Airbus A320-200
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  10
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Airbus A320-200
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  11
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Airbus A320-200
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  12
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Airbus A320-200
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  13
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Airbus A320-200
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  14
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Airbus A319-100
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  15
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Airbus A320-200
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  16
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Boeing 767-200PC
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  17
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Boeing 767-200PC
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  18
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Boeing 737-500
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  19
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Boeing 737-400
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  20
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Boeing 747-400SF
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  21
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Boeing 747-400SF
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  22
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Boeing 737-800
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  23
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Boeing 737-800
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  24
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Boeing 737-800
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  25
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Boeing 737-800
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  26
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Boeing 737-800
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  27
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Boeing 737-800
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  28
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Boeing 737-400
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  29
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Boeing 737-800
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  30
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Boeing 737-700
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  31
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Boeing 737-800
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  32
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Boeing 737-800
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  33
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Boeing 737-800
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  34
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Boeing 737-800
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  35
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Boeing 737-800
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  36
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Boeing 737-800
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  37
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Boeing 737-800
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  38
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Boeing 737-800
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  39
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Boeing 737-800
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  40
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Embraer ERJ 170-100
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  41
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Embraer ERJ 170-100
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  42
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  43
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  44
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 

 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		SCHEDULE 1(a) TO ANNEX 1
TO THE SERVICING AGREEMENT
	 

	 
		 
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  Serial 
 Number
				

			 	
				
				   
				

			 	
				
				  Type
				

			 	
				
				   
				

			 	
				
				  Outstanding

				  Principal Balance
 Allocable to Aircraft ($)
				

			 	
				
				   
				

			 	
				
				  Note 
 Target Price ($)
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Total
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		SCHEDULE 1(a) - 2
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		Appraised Values
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  Type
				

			 	
				
				   
				

			 	
				
				  Serial
 Number
				

			 	
				
				   
				

			 	
				
				  Appraised
 Value ($)
				

			 
	
				
				  1
				

			 	
				
				   
				

			 	
				
				  Airbus A330-200
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  2
				

			 	
				
				   
				

			 	
				
				  Airbus A320-200
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  3
				

			 	
				
				   
				

			 	
				
				  Airbus A319-100
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  4
				

			 	
				
				   
				

			 	
				
				  Airbus A319-100
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  5
				

			 	
				
				   
				

			 	
				
				  Airbus A320-200
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  6
				

			 	
				
				   
				

			 	
				
				  Airbus A320-200
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  7
				

			 	
				
				   
				

			 	
				
				  Airbus A320-200
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  8
				

			 	
				
				   
				

			 	
				
				  Airbus A320-200
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  9
				

			 	
				
				   
				

			 	
				
				  Airbus A320-200
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  10
				

			 	
				
				   
				

			 	
				
				  Airbus A320-200
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  11
				

			 	
				
				   
				

			 	
				
				  Airbus A320-200
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  12
				

			 	
				
				   
				

			 	
				
				  Airbus A320-200
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  13
				

			 	
				
				   
				

			 	
				
				  Airbus A320-200
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  14
				

			 	
				
				   
				

			 	
				
				  Airbus A319-100
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  15
				

			 	
				
				   
				

			 	
				
				  Airbus A320-200
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  16
				

			 	
				
				   
				

			 	
				
				  Boeing 767-200PC
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  17
				

			 	
				
				   
				

			 	
				
				  Boeing 767-200PC
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  18
				

			 	
				
				   
				

			 	
				
				  Boeing 737-500
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  19
				

			 	
				
				   
				

			 	
				
				  Boeing 737-400
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  20
				

			 	
				
				   
				

			 	
				
				  Boeing 747-400SF
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  21
				

			 	
				
				   
				

			 	
				
				  Boeing 747-400SF
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  22
				

			 	
				
				   
				

			 	
				
				  Boeing 737-800
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  23
				

			 	
				
				   
				

			 	
				
				  Boeing 737-800
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  24
				

			 	
				
				   
				

			 	
				
				  Boeing 737-800
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  25
				

			 	
				
				   
				

			 	
				
				  Boeing 737-800
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  26
				

			 	
				
				   
				

			 	
				
				  Boeing 737-800
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  27
				

			 	
				
				   
				

			 	
				
				  Boeing 737-800
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  28
				

			 	
				
				   
				

			 	
				
				  Boeing 737-400
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  29
				

			 	
				
				   
				

			 	
				
				  Boeing 737-800
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  30
				

			 	
				
				   
				

			 	
				
				  Boeing 737-700
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  31
				

			 	
				
				   
				

			 	
				
				  Boeing 737-800
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  32
				

			 	
				
				   
				

			 	
				
				  Boeing 737-800
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  33
				

			 	
				
				   
				

			 	
				
				  Boeing 737-800
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  34
				

			 	
				
				   
				

			 	
				
				  Boeing 737-800
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  35
				

			 	
				
				   
				

			 	
				
				  Boeing 737-800
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  36
				

			 	
				
				   
				

			 	
				
				  Boeing 737-800
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  37
				

			 	
				
				   
				

			 	
				
				  Boeing 737-800
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  38
				

			 	
				
				   
				

			 	
				
				  Boeing 737-800
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  39
				

			 	
				
				   
				

			 	
				
				  Boeing 737-800
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  40
				

			 	
				
				   
				

			 	
				
				  Embraer ERJ 170-100
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  41
				

			 	
				
				   
				

			 	
				
				  Embraer ERJ 170-100
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Total
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 

 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		Net Book Value
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  Type
				

			 	
				
				   
				

			 	
				
				  Serial
 Number
				

			 	
				
				   
				

			 	
				
				  Net Book
 Value ($)
				

			 	
				
				   
				

			 	
				
				  [110]% of Net

				  Book Value ($)
				

			 
	
				
				  1
				

			 	
				
				   
				

			 	
				
				  Boeing 737-800
				

			 	
				
				   
				

			 	
				
				  34896
				

			 	 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  2
				

			 	
				
				   
				

			 	
				
				  Boeing 737-800
				

			 	
				
				   
				

			 	
				
				  34898
				

			 	 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  3
				

			 	
				
				   
				

			 	
				
				  Boeing 737-800
				

			 	
				
				   
				

			 	
				
				  34899
				

			 	 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  4
				

			 	
				
				   
				

			 	
				
				  Airbus 320-200
				

			 	
				
				   
				

			 	
				
				   2522
				

			 	 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  5
				

			 	
				
				   
				

			 	
				
				  Airbus 320-200
				

			 	
				
				   
				

			 	
				
				   2670
				

			 	 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  6
				

			 	
				
				   
				

			 	
				
				  Boeing 757-200
				

			 	
				
				   
				

			 	
				
				  29945
				

			 	 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  7
				

			 	
				
				   
				

			 	
				
				  Boeing 757-200
				

			 	
				
				   
				

			 	
				
				  29946
				

			 	 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  8
				

			 	
				
				   
				

			 	
				
				  Boeing 737-800
				

			 	
				
				   
				

			 	
				
				  35089
				

			 	 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  9
				

			 	
				
				   
				

			 	
				
				  Boeing 737-800
				

			 	
				
				   
				

			 	
				
				  35211
				

			 	 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  10
				

			 	
				
				   
				

			 	
				
				  Airbus 319-100
				

			 	
				
				   
				

			 	
				
				   
				

			 	 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  11
				

			 	
				
				   
				

			 	
				
				  Airbus 320-200
				

			 	
				
				   
				

			 	
				
				   2728
				

			 	 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  12
				

			 	
				
				   
				

			 	
				
				  Boeing 757-200
				

			 	
				
				   
				

			 	
				
				  29944
				

			 	 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  13
				

			 	
				
				   
				

			 	
				
				  Boeing 757-200
				

			 	
				
				   
				

			 	
				
				  29942
				

			 	 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  14
				

			 	
				
				   
				

			 	
				
				  Boeing 737-800
				

			 	
				
				   
				

			 	
				
				  29052
				

			 	 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  15
				

			 	
				
				   
				

			 	
				
				  Boeing 737-300QC
				

			 	
				
				   
				

			 	
				
				  25402
				

			 	 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  16
				

			 	
				
				   
				

			 	
				
				  Boeing 767-300ER
				

			 	
				
				   
				

			 	
				
				  28040
				

			 	 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  17
				

			 	
				
				   
				

			 	
				
				  Boeing 737-800
				

			 	
				
				   
				

			 	
				
				  28608
				

			 	 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  18
				

			 	
				
				   
				

			 	
				
				  Airbus 320-200
				

			 	
				
				   
				

			 	
				
				  0533
				

			 	 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  19
				

			 	
				
				   
				

			 	
				
				  Airbus 320-200
				

			 	
				
				   
				

			 	
				
				  0548
				

			 	 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  20
				

			 	
				
				   
				

			 	
				
				  Airbus 320-200
				

			 	
				
				   
				

			 	
				
				  0888
				

			 	 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  21
				

			 	
				
				   
				

			 	
				
				  Airbus 320-200
				

			 	
				
				   
				

			 	
				
				  0545
				

			 	 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  22
				

			 	
				
				   
				

			 	
				
				  Airbus 320-200
				

			 	
				
				   
				

			 	
				
				  0562
				

			 	 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  23
				

			 	
				
				   
				

			 	
				
				  Boeing 737-800
				

			 	
				
				   
				

			 	
				
				  30785
				

			 	 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  24
				

			 	
				
				   
				

			 	
				
				  Boeing 737-700
				

			 	
				
				   
				

			 	
				
				  30784
				

			 	 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  25
				

			 	
				
				   
				

			 	
				
				  Airbus 320-200
				

			 	
				
				   
				

			 	
				
				  0553
				

			 	 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  26
				

			 	
				
				   
				

			 	
				
				  Airbus 320-200
				

			 	
				
				   
				

			 	
				
				  0559
				

			 	 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  27
				

			 	
				
				   
				

			 	
				
				  Airbus 320-200
				

			 	
				
				   
				

			 	
				
				  0574
				

			 	 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  28
				

			 	
				
				   
				

			 	
				
				  Boeing 737-500
				

			 	
				
				   
				

			 	
				
				  25232
				

			 	 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  29
				

			 	
				
				   
				

			 	
				
				  Boeing 737-500
				

			 	
				
				   
				

			 	
				
				  25233
				

			 	 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  30
				

			 	
				
				   
				

			 	
				
				  Boeing 737-800
				

			 	
				
				   
				

			 	
				
				  28595
				

			 	 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  31
				

			 	
				
				   
				

			 	
				
				  Boeing 735-200
				

			 	
				
				   
				

			 	
				
				  27974
				

			 	 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  32
				

			 	
				
				   
				

			 	
				
				  Boeing 757-200
				

			 	
				
				   
				

			 	
				
				  27975
				

			 	 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  33
				

			 	
				
				   
				

			 	
				
				  Boeing 757-200
				

			 	
				
				   
				

			 	
				
				  27976
				

			 	 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  34
				

			 	
				
				   
				

			 	
				
				  Boeing 757-200
				

			 	
				
				   
				

			 	
				
				  29330
				

			 	 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  35
				

			 	
				
				   
				

			 	
				
				  Airbus 320-200
				

			 	
				
				   
				

			 	
				
				  2616
				

			 	 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  36
				

			 	
				
				   
				

			 	
				
				  Airbus 320-200
				

			 	
				
				   
				

			 	
				
				  2740
				

			 	 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  37
				

			 	
				
				   
				

			 	
				
				  Boeing 757-200
				

			 	
				
				   
				

			 	
				
				  24528
				

			 	 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  38
				

			 	
				
				   
				

			 	
				
				  Boeing 737-800
				

			 	
				
				   
				

			 	
				
				  34704
				

			 	 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  39
				

			 	
				
				   
				

			 	
				
				  Airbus 319-100
				

			 	
				
				   
				

			 	
				
				  1140
				

			 	 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  40
				

			 	
				
				   
				

			 	
				
				  Airbus 319-100
				

			 	
				
				   
				

			 	
				
				  1159
				

			 	 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  41
				

			 	
				
				   
				

			 	
				
				  Airbus 320-100
				

			 	
				
				   
				

			 	
				
				  2979
				

			 	 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  42
				

			 	
				
				   
				

			 	
				
				  Boeing 737-700
				

			 	
				
				   
				

			 	
				
				  34293
				

			 	 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  43
				

			 	
				
				   
				

			 	
				
				  Boeing 737-700
				

			 	
				
				   
				

			 	
				
				  34295
				

			 	 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  44
				

			 	
				
				   
				

			 	
				
				  Airbus 320-200
				

			 	
				
				   
				

			 	
				
				  0566 
				

			 	 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  Total
				

			 	
				
				   
				

			 	
				
				   
				

			 	 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 

 

	 
		 
	 

	 
	 

	 

	 
		SCHEDULE 1(c) TO ANNEX 1
TO THE SERVICING AGREEMENT
	 

	 
		 
	 

	 
		 
	 

	 
		SCHEDULE 1(c)-2
	 

	 
		 
	 

	 
	 

	 

	 
		Liability Insurance
	 

	 
		 
	 

	 
			
				
				  Model
				

			 	
				
				   
				

			 	
				
				  Minimum Limit
				

			 
	
				
				  B737/A320/A319/B757 and other
				  Narrow-Body Aircraft
				

			 	
				
				   
				

			 	
				
				  US $500 million
				

			 
	
				
				  B767 and other Wide-Body
				  Aircraft
				

			 	
				
				   
				

			 	
				
				  US $750 million
				

			 

 

	 
		Notwithstanding the foregoing, with respect
		to any liability insurance maintained by any Person within the Company Group
		for the benefit of the Persons listed in clause 2(h) of Schedule 6 to Annex 1,
		such amount of insurance shall be not less than US$750 million for wide-body
		Aircraft and US$500 million for narrow-body Aircraft and liability insurance
		with respect to any Aircraft in storage shall be not less than US$300 million,
		but need not exceed $300 million.
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		Repossession Insurance
	 

	 
		 
	 

	 
			
				
				  Country
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Belarus
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Bhutan
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Kazakhstan
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Mongolia
				

			 	
				
				   
				

			 	
				
				   
				

			 

 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		Named Insureds
	 

	 
			
				
				  1.
				

			 	
				
				  Hull and Repossession
				  Insurance
				

			 

 

	 
		with respect to each Aircraft Asset, owner
		(and head lessor, if applicable) and/or lessor and intermediate lessor(s), if
		any, of Aircraft and Security Trustee
	 

	 
			
				
				  2.
				

			 	
				
				  Liability Insurance
				

			 

 

	 
		(a) owner (and head lessor, if applicable)
		of Aircraft (Person within the Company Group)
	 

	 
		(b) intermediate lessor(s), if any, of
		Aircraft (Person(s) within the Company Group)
	 

	 
		(c) the Servicer
	 

	 
		(d) the Administrative Agent
	 

	 
		(e) the Trustee and Security Trustee
	 

	 
		(f) the Company
	 

	 
		(g) with respect to each Aircraft Asset
		acquired pursuant to the Asset Purchase Agreement, the relevant Seller
		Indemnitees (as defined in the Asset Purchase Agreement) during the period
		commencing on the date of Delivery of such Aircraft Asset and ending on the
		earlier of (i) the second anniversary of such date of Delivery and (ii) the
		date of completion of the next major check in respect of such Aircraft
		Asset
	 

	 
		(h) the Policy Provider.
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
		Concentration Limits
	 

	 
		The following chart sets forth the
		Concentration Limits that are applicable during periods when the weighted
		Portfolio age (weighted by Assumed Base Value of each Aircraft in the
		Portfolio) is (1) below ten years and (2) at or above ten years. The
		percentages in the following chart are obtained by dividing the Assumed Base
		Value of all Aircraft leased to lessees habitually based or domiciled in the
		applicable country or category by the Assumed Portfolio Value.
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  Limits
 Below 10
 Years
				

			 	
				
				   
				

			 	
				
				  Limits
 At or
 Above
				  10
 Years
				

			 	
				
				   
				

			 
	
				
				  Lessee Concentration
				  Limits
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Single lessee 
				

			 	
				
				   
				

			 	
				
				  15.0
				

			 	
				
				  %
				

			 	
				
				  15.0
				

			 	
				
				  %
				

			 
	
				
				  Any other single lessee habitually
				  based or domiciled in an Undesignated Region
				

			 	
				
				   
				

			 	
				
				  10.0
				

			 	
				
				  %
				

			 	
				
				  10.0
				

			 	
				
				  %
				

			 
	
				
				  Three largest lessees 
				

			 	
				
				   
				

			 	
				
				  30.0
				

			 	
				
				  %
				

			 	
				
				  30.0
				

			 	
				
				  %
				

			 

 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  Limits
 Below 10
 Years
				

			 	
				
				   
				

			 	
				
				  Limits
 At or
 Above
				  10
 Years
				

			 	
				
				   
				

			 
	
				
				  Country Concentration
				  Limits
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Single country rated BBB/Baa2 (or
				  equivalent) or better1
				

			 	
				
				   
				

			 	
				
				  25.0
				

			 	
				
				  %
				

			 	
				
				  25.0
				

			 	
				
				  %
				

			 
	
				
				  Single country rated below BBB/Baa2
				  (or equivalent)2
				

			 	
				
				   
				

			 	
				
				  17.5
				

			 	
				
				  %
				

			 	
				
				  17.5
				

			 	
				
				  %
				

			 
	
				
				  Single country (Undesignated
				  Region)
				

			 	
				
				   
				

			 	
				
				  5.0
				

			 	
				
				  %
				

			 	
				
				  5.0
				

			 	
				
				  %
				

			 

 

	 
		______________
	 

	 
			
				
				  1
				

			 	
				
				  The applicable rating is the
				  sovereign foreign currency debt rating assigned by the Rating Agencies to the
				  country in which a Lessee is habitually based or domiciled at the time the
				  relevant Lease is executed.
				

			 

 

	 
			
				
				  2
				

			 	
				
				  The applicable rating is the
				  sovereign foreign currency debt rating assigned by the Rating Agencies to the
				  country in which a Lessee is habitually based or domiciled at the time the
				  relevant Lease is executed.
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		ANNEX 2 TO THE
	 

	 
		SERVICING AGREEMENT
	 

	 
		 
	 

	 
			
				
				  Region Concentration
				  Limits3
				

			 	
				
				   
				

			 	 	 	 	 
	
				
				  Developed Europe
				

			 	
				
				   
				

			 	
				
				  45.0
				

			 	
				
				  %
				

			 	
				
				  45.0
				

			 	
				
				  %
				

			 
	
				
				  Developed Asia/Pacific
				

			 	
				
				   
				

			 	
				
				  35.0
				

			 	
				
				  %
				

			 	
				
				  40.0
				

			 	
				
				  %
				

			 
	
				
				  North America
				

			 	
				
				   
				

			 	
				
				  30.0
				

			 	
				
				  %
				

			 	
				
				  30.0
				

			 	
				
				  %
				

			 
	
				
				  Emerging Europe and Africa/Middle
				  East
				

			 	
				
				   
				

			 	
				
				  35.0
				

			 	
				
				  %
				

			 	
				
				  45.0
				

			 	
				
				  %
				

			 
	
				
				  Latin America/Caribbean
				

			 	
				
				   
				

			 	
				
				  25.0
				

			 	
				
				  %
				

			 	
				
				  35.0
				

			 	
				
				  %
				

			 
	
				
				  Emerging Asia/Pacific
				

			 	
				
				   
				

			 	
				
				  40.0
				

			 	
				
				  %
				

			 	
				
				  43.0
				

			 	
				
				  %
				

			 
	
				
				  Indian Subcontinent
				

			 	
				
				   
				

			 	
				
				  20.0
				

			 	
				
				  %
				

			 	
				
				  30.0
				

			 	
				
				  %
				

			 
	
				
				  Undesignated
				

			 	
				
				   
				

			 	
				
				  10.0
				

			 	
				
				  %
				

			 	
				
				  10.0
				

			 	
				
				  %
				

			 

 

	 
		The Concentration Limits for the Initial
		Aircraft will be determined based on the Leases to which such Initial Aircraft
		are subject to, regardless of the time or order of acquisition. Without
		limiting Section 5.03 of the Indenture, any failure to meet the Concentration
		Limits arising solely by reason of the non-acquisition of an Initial Aircraft
		will be deemed not to result in a Concentration Default. 
	 

	 
		 
	 

	 
			
				
				  Region
				

			 	
				
				   
				

			 	
				
				  Countries
				

			 
	
				
				  Developed Markets:
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Europe
				

			 	
				
				   
				

			 	
				
				  European Union (excluding Cyprus,
				  Czech Republic, Estonia, Hungary, Latvia, Lithuania, Luxembourg, Malta, Poland,
				  Portugal and Slovakia), Iceland, Norway and Switzerland
				

			 
	
				
				  North America
				

			 	
				
				   
				

			 	
				
				  Canada and United States
				

			 
	
				
				  Asia/Pacific
				

			 	
				
				   
				

			 	
				
				  Australia, Hong Kong, Japan, New
				  Zealand and Singapore
				

			 
	
				
				  Emerging Markets:
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Europe
				

			 	
				
				   
				

			 	
				
				  Bulgaria, Channel Islands, Croatia,
				  Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Northern
				  Cyprus, Poland, Portugal, Russia, Slovakia and Turkey
				

			 
	
				
				  Asia/Pacific
				

			 	
				
				   
				

			 	
				
				  China, Guam, Indonesia, Macau,
				  Malaysia, Philippines, 
				

			 

 

	 
		______________
	 

	 
			
				
				  3
				

			 	
				
				  The designation of regions is set
				  out below.
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		ANNEX 2 - 2
	 

	 
		 
	 

	 
	 

	 

	 
		ANNEX 2 TO THE
	 

	 
		SERVICING AGREEMENT
	 

	 
		 
	 

	 
			
				
				  Region
				

			 	
				
				   
				

			 	
				
				  Countries
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				  South Korea, Taiwan, Thailand and
				  Vietnam
				

			 
	
				
				  Indian Subcontinent
				

			 	
				
				   
				

			 	
				
				  India
				

			 
	
				
				  Latin America/Caribbean
				

			 	
				
				   
				

			 	
				
				  Argentina, Bermuda, Brazil, Cayman
				  Islands, Chile, Colombia, Costa Rica, El Salvador, Guatemala, Mexico, Panama
				  and Peru
				

			 
	
				
				  Africa/Middle East
				

			 	
				
				   
				

			 	
				
				  Bahrain, Egypt, Jordan, Kuwait,
				  Morocco, Oman, Qatar, South Africa and United Arab Emirates
				

			 
	
				
				  Undesignated
				

			 	
				
				   
				

			 	
				
				  Algeria, Aruba, Bahamas, Barbados,
				  Bangladesh, Belarus, Belize, Bhutan, Bolivia, Botswana, Brunei Darussalam,
				  Dominican Republic, Ecuador, Ethiopia, Falkland Islands, Faroe Islands, Fiji,
				  French Guiana, French Polynesia, Greenland, Guadeloupe, Guinea, Honduras, Isle
				  of Man, Israel, Jamaica, Kazakhstan, Kenya, Lebanon, Libya, Luxembourg,
				  Macedonia, Mauritius, Mongolia, Mozambique, Nepal, Netherlands Antilles,
				  Nicaragua, Pakistan, Papua New Guinea, Paraguay, Puerto Rico, Romania, Samoa,
				  Saudi Arabia, Seychelles, Sri Lanka, Suriname, Tanzania, Tonga, Trinidad &
				  Tobago, Tunisia, Turkmenistan, Ukraine, Uruguay, Uzbekistan, Vanuatu and
				  Venezuela
				

			 

 

	 
		Prohibited
	 

	 
		All other countries not listed above;
		provided that, unless otherwise approved by the Policy Provider,
		Belize, Bolivia, Ecuador, Ethiopia, Kazakhstan, Libya, Pakistan, Turkmenistan
		and Uzbekistan shall also be Prohibited Countries (notwithstanding that any
		such country is also listed as “Undesignated” above).
	 

	 
		 
	 

	 
		 
	 

	 
		ANNEX 2 - 3
	 

	 
		 
	 

	 
	 

	 

	 
		CONSTRUCTION AND USAGE; DEFINITIONS
	 

	 
		Construction and Usage
	 

	 
		The terms defined below have the meanings
		set forth below for all purposes. “Include”, “includes” and
		“including” shall be deemed to be followed by “without
		limitation” whether or not they are in fact followed by such words or
		words of like import. “Writing”, “written” and comparable
		terms refer to printing, typing, lithography or other means of reproducing
		words in a visible form (including electronic mail). Any agreement or
		instrument or any law, rule or regulation of any Governmental Authority defined
		or referred to below means such agreement or instrument or such law, rule or
		regulation as from time to time amended, modified or supplemented, including
		(in the case of agreements or instruments) by waiver or consent and (in the
		case of such law, rule or regulation) by succession of any comparable successor
		law, rule or regulation and includes (in the case of agreements or instruments)
		references to all attachments, annexes, schedules and exhibits thereto and
		instruments incorporated therein. References to a Person are also to its
		permitted successors and assigns. Any term defined below by reference to any
		agreement or instrument or any law, rule or regulation of any Governmental
		Authority has such meaning whether or not such agreement, instrument or law,
		rule or regulation is in effect. “Agreement”, “hereof”,
		“herein”, “hereunder” and comparable terms refer to the
		agreement in which such term appears (including all annexes, exhibits and
		schedules hereto) and not to any particular article, section, clause or other
		subdivision thereof or attachment thereto. References to any gender include,
		unless the context otherwise requires, references to all genders, and
		references to the singular include, unless the context otherwise requires,
		references to the plural and vice versa. “Shall” and “will”
		have equal force and effect. References to “Article”,
		“Section”, “Clause” or another subdivision or to an
		attachment are, unless the context otherwise requires, to an article, section,
		clause or subdivision of or attachment to such agreement.
	 

	 
		Definitions
	 

	 
		“Additional Aircraft” means any Aircraft that is not then an Aircraft
		Asset proposed to be acquired by a Person in the Company Group in accordance
		with the provisions of Section 5 of Schedule 2.02(a).
	 

	 
		“Additional Notes” means any class or subclass of Notes issued
		pursuant to the Indenture (or pursuant to supplements thereto) at any time
		after the Closing Date, the proceeds of which are used, in substantial part, to
		acquire Aircraft.
	 

	 
		“Administrative Agent” means Babcock & Brown Aircraft Management Co.
		Limited, acting under the Administrative Agency Agreement.
	 

	 
		“Administrative Services Agreement” means the Administrative Services Agreement dated
		as of [    ] [    ], 2007 between the
		Administrative Agent and the Company.
	 

	 
		“Adviser”
		means an insurance adviser engaged by the Servicer in accordance with Section
		1.3(b) of Schedule 2.02(a) to the Servicing Agreement.
	 

	 
		“Affiliate”
		means a Person that directly, or indirectly through one or more intermediaries,
		controls or is controlled by, or is under common control with, the Person
		specified; provided that the Company and its respective Subsidiaries, on
		the one part, and the Servicer and its Subsidiaries and Affiliates, on the
		other part, shall not be considered to be Affiliates of each other .
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
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		“After-Tax Basis” means on a basis such that any payment received,
		deemed to have been received or receivable by any Person shall, if necessary,
		be supplemented by a further payment to that Person so that the sum of the two
		payments shall, after deduction of Taxes resulting from the receipt (actual or
		constructive) or accrual of such payments (after taking into account any
		current deduction to which such Person shall be entitled with respect to the
		amount that gave rise to the underlying payment), be equal to the payment
		received, deemed to have been received or receivable.
	 

	 
		“Aggregate Gross Proceeds” has the meaning assigned to such term in Section
		9.04(b) of the Servicing Agreement.
	 

	 
		“Aircraft”
		means any airframe together with (i) any Engine installed on such airframe (or
		any Engine substituted therefore), (ii) parts or components thereof,
		(iii) spare parts or ancillary equipment or devices furnished therewith
		and (iv) the Aircraft Documents with respect thereto.
	 

	 
		“Aircraft Asset Expenses” has the meaning assigned to such term in Section
		9.06(b)(i) of the Servicing Agreement.
	 

	 
		“Aircraft Asset Expenses Budget” has the meaning assigned to such term in Section
		7.03(a) of the Servicing Agreement.
	 

	 
		“Aircraft Assets” means (a) all Aircraft owned or leased-in by any
		Person within the Company Group as of the Closing Date or at any time or from
		time to time thereafter (taking into account any acquisitions or dispositions
		made in accordance with this Agreement) and (b) all Original Aircraft;
		provided that Aircraft Assets shall not include (x) any Aircraft
		Asset that shall have ceased to be an Aircraft Asset in accordance with the
		provisions of Sections 2.04(b) or 3.02(d) of the Servicing Agreement, but shall
		include any Former Aircraft Asset that shall have become an Aircraft Asset
		pursuant to Section 6.07 of the Servicing Agreement or (y) any Aircraft
		Asset in respect of which the obligation of the Servicer to provide Services
		shall have been terminated in accordance with Article X of the Servicing
		Agreement.
	 

	 
		“Aircraft Assets Related Documents” means all Leases and other contracts and
		agreements of Persons within the Company Group the terms of which relate to or
		affect any of the Aircraft Assets.
	 

	 
		“Aircraft Documents” means, in relation to an Aircraft, all records,
		logs, technical data, manuals and other documents relating to the maintenance
		and operation of such Aircraft.
	 

	 
		“Annex 1”
		means Annex 1 to the Servicing Agreement, which annex sets forth the Insurance
		Guidelines.
	 

	 
		“Annex 2”
		means Annex 2 to the Servicing Agreement, which annex sets forth the
		Concentration Limits contained in Section 5.03(a) of the Indenture.
	 

	 
		“Annual Review” has the meaning assigned to such term in Section
		3(c)(i) of Schedule 2.02(a) to the Servicing Agreement.
	 

	 
		“Anti-Terrorism Laws” means the USA Patriot Act and the Executive Order
		[Bermuda additions?].
	 

	 
		“Applicable Law” with respect to any Person means any law,
		statute, ordinance, rule or regulation or code of conduct or practice of any
		U.S. Federal, state or local Governmental Authority, the 
	 

	 
		 
	 

	 
		 
	 

	 
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		EU or any Irish or other foreign or
		international Governmental Authority that applies to such Person or any of its
		properties or assets.
	 

	 
		“Appraised Value” means with respect to any Aircraft, the average
		of the most recent appraisals by each of the Appraisers of the Base Value of
		such Aircraft.
	 

	 
		“Appraiser”
		means at least three independent appraisers that are members of the
		International Society of Transport Aircraft Trading or any similar
		organization.
	 

	 
		“Approved Budget” has the meaning assigned to such term in
		Section 7.03(d) of the Servicing Agreement.
	 

	 
		“Asset Purchase Agreement” means the Asset Purchase Agreement dated as of
		[              
		] [       ], 2007, among [JEDI], the Company and
		the other parties thereto.
	 

	 
		“Assigned Leases” has the meaning assigned to such term in Section
		1.01 of the Security Trust Agreement.
	 

	 
		“Auditor”
		has the meaning assigned to such term in Section 5.01 of the Servicing
		Agreement.
	 

	 
		“Babcock & Brown Air Limited” means Babcock & Brown Air Limited, a limited
		liability company organized under the laws of Bermuda.
	 

	 
		“Bank Accounts” has the meaning assigned to such term in Section
		7.1(b) of Schedule 2.02(a) to the Servicing Agreement.
	 

	 
		“Base Value”
		has the meaning assigned to such term in Section 1.01 of the Indenture.
	 

	 
		“Beneficial Interest” means [voting] shares issued by the
		Company.
	 

	 
		“Broker”
		means an insurance broker engaged by Servicer in accordance with Section 1.3(b)
		of Schedule 2.02(a) to the Servicing Agreement.
	 

	 
		“Business Day” means a day on which U.S. dollar deposits may be
		traded on the London inter-bank market and commercial banks and foreign
		exchange markets are open in New York, New York and London, England. [tie to
		Indenture.}
	 

	 
		“Calculation Date” means the sixth Business Day immediately
		preceding each Payment Date.
	 

	 
		“Cape Town Convention” means the Convention on International Interests
		in Mobile Equipment and its Protocol on Matters Specific to Aircraft Equipment,
		concluded in Cape Town on 16 November 2001.
	 

	 
		“Cash Manager” means Deutsche Bank Trust Company Americas, and
		its successors and assigns.
	 

	 
		“Cash Management Agreement” means the Cash Management Agreement dated as of
		[          ]
		[    ], 2007 between the Cash Manager and the
		Company.
	 

	 
		“Changed Circumstance” means the occurrence and continuation of any
		material event, circumstance or condition that is reasonably likely to result
		in the current cash flow projections in any 
	 

	 
		 
	 

	 
		 
	 

	 
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		Year being materially less favorable than
		the forecast which is the most current at the time that the Approved Budget is
		finalized for that Year in accordance with Section 7.03 of the Servicing
		Agreement.
	 

	 
		“Closing”
		means the closing of the offering and sale of the Notes by the Company and the
		consummation of the Acquisition and the other transactions described in the
		Final Prospectus.
	 

	 
		“Closing Date” means
		[               
		] [        ], 2007.
	 

	 
		“Code” has
		the meaning assigned to such term in Section 9.07(c) of the Servicing
		Agreement.
	 

	 
		“Collection Account” has the meaning assigned to such term in
		Section 3.01(a) of the Indenture.
	 

	 
		“Company”
		means Babcock & Brown Air Funding I Limited, a limited liability company
		incorporated under the laws of Bermuda.
	 

	 
		“Company Group” has the meaning assigned to such term in Section
		2.01(a) of the Servicing Agreement.
	 

	 
		“Company Group Guarantees” means each Guarantee, in the form set forth as
		Appendix B to the Servicing Agreement, issued by each Person within the Company
		Group (other than the Company) pursuant to Section 6.13 of the Servicing
		Agreement.
	 

	 
		“Company Group Liabilities” means any obligations or liabilities of any
		Person within the Company Group (whether accrued, absolute, contingent,
		unasserted, known or unknown or otherwise).
	 

	 
		“Company Pro Forma Lease” has the meaning assigned to such term in Section
		3(b)(ii) of Schedule 2.02(a) to the Servicing Agreement.
	 

	 
		“Competitor”
		means any of the following Persons:
	 

	 
		(i) any Person (other than Babcock &
		Brown International Pty Ltd and its Affiliates) engaged in, or which has an
		Affiliate engaged in, the business of manufacturing aircraft or aircraft
		engines, which business had consolidated revenues attributable to such business
		for such Person’s and/or its Affiliates’, as the case may be, most
		recently completed fiscal year in excess of $200 million; or
	 

	 
		(ii) any of the following Persons (or any of
		their respective Affiliates) and their respective successors and
		assigns:
	 

	 
		(a)           GE Commercial Aviation Services
		Limited
	 

	 
		(b)           International Lease Finance Corporation;
	 

	 
		(c)           Aviation Capital Group;
	 

	 
		(d)           AWAS;
	 

	 
		(e)           ORIX;
	 

	 
		(f)        
		   CIT Group Inc.;
	 

	 
		(g)        
		   Macquarie;
	 

	  

	 
		 
	 

	 
		 
	 

	 
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		(h)          AerCap B.V.; 
	 

	 
		(i)           RBS Aviation Capital;
	 

	 
		(j)           Fortress Investments/Aircastle Advisor LLC;
	 

	 
		(k)           Cerberus Capital Management;
	 

	 
		(l)           Terra Firma Capital Partners;
	 

	 
		(m)          Singapore Aircraft Leasing Enterprise;
	 

	 
		(n)           Boeing Capital;
	 

	 
		(o)           BCI;
	 

	 
		(p)           Pembroke;
	 

	 
		(q)           Aircastle Advisor;
	 

	 
		(r)           Allco;
	 

	 
		(s)           Sumisho;
	 

	 
		(t)           Tombo Aviation;
	 

	 
		(u)           Guggenheim Aviation Partners;
	 

	 
		(v)           GATX Air; 
	 

	 
		(w)          Genesis Lease Limited; and
	 

	 
		(x)           Pegasus Aviation; or
	 

	 
		(iii) any other Person (or any Affiliate
		thereof) (other than Babcock & Brown International Pty Ltd and its
		Affiliates) which engages in a business as an operating lessor of Aircraft
		Assets in competition with any Person within the Company Group either (x) in
		succession to any of the Persons specified in clause (ii) above or (y)
		which has consolidated aircraft leasing-related revenues (excluding revenues
		from sales of aircraft) attributable to such business for its most recently
		completed fiscal year in excess of $200 million.
	 

	 
		“Competitor Control” means, with respect to any Person, a
		Competitor’s control or beneficial ownership, directly or indirectly, of
		50% or more of any class of securities (other than promissory notes or loan
		certificates or pass-through certificates in respect of promissory notes or
		loan certificates), directly or indirectly, of such Person, or the appointment
		or ability to appoint a director, member, trustee or similar Person of such
		Person.
	 

	 
		“Concentration Limits” has the meaning assigned to such term in
		Section 2.2(a) of Schedule 2.02(a) to the Servicing Agreement.

	 

	 
		“Conflicts Standard” has the meaning assigned to such term in
		Section 3.02(b) of the Servicing Agreement.
	 

	 
		 
	 

	 
		 
	 

	 
		APPENDIX A -
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		“control”
		(including, with its correlative meanings, “controlled by” and “under common control with”) means possession, directly or indirectly, of
		power to direct or cause the direction of management or policies (whether
		through ownership of securities or partnership or other ownership interests, by
		contract or otherwise).
	 

	 
		“Core Lease Provisions” means the core lease provisions included as
		Exhibit F to the Indenture, as the same may be amended from time to
		time.
	 

	 
		“Default Notice” has the meaning assigned to such term in Section
		1.01 of the Indenture.
	 

	 
		“Delivery”
		has the meaning assigned to such term in Section 1.1 of the Asset Purchase
		Agreement.
	 

	 
		“Deposits”
		means the deposits required under a Lease.
	 

	 
		“Disposition” has the meaning assigned to such term in Section
		9.04(b) of the Servicing Agreement.
	 

	 
		“Documentary Conventions” with respect to any agreement, instrument or
		other document that states it is governed thereby, means that, except as
		otherwise expressly provided therein:
	 

	 
		(a) No Partnership.
		The parties thereto expressly recognize and acknowledge that such agreement,
		instrument or other document is not intended to create a partnership, joint
		venture or other similar arrangement between or among any of the parties
		thereto or their respective Affiliates.
	 

	 
		(b) Notices. Subject
		to paragraph (d) below, all notices, consents, directions, approvals,
		instructions, requests and other communications required or permitted by such
		agreement, instrument or other document to be given to any Person shall be in
		writing, and any such notice shall become effective five Business Days after
		being deposited in the mails, certified or registered, return receipt
		requested, with appropriate postage prepaid for first class mail or, if
		delivered by hand or courier service or in the form of a facsimile, when
		received (and, in the case of a facsimile, receipt of such facsimile is
		electronically or otherwise confirmed to the sender), and shall be directed to
		the address or facsimile number of such Person set forth in Appendix C to the
		Servicing Agreement. From time to time any party to such agreement, instrument
		or other document may designate a new address or number for purposes of notice
		thereunder by notice to each of the other parties thereto.
	 

	 
		(c) Governing Law.
		SUCH AGREEMENT, INSTRUMENT OR OTHER DOCUMENT SHALL IN ALL RESPECTS BE GOVERNED
		BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

	 

	 
		(d) Jurisdiction; Court Proceedings; Waiver of Jury
		Trial. Any suit, action or proceeding
		against any party to such agreement, instrument or other document arising out
		of or relating to such agreement, instrument or other document, any transaction
		contemplated thereby or any judgment entered by any court in respect of any
		thereof may be brought in any New York State court located in the County of New
		York or Federal court sitting in the Second Circuit, and each such party hereby
		submits to the nonexclusive jurisdiction of such courts for the purpose of any
		such suit, action or proceeding. To the extent that service of process by mail
		is permitted by applicable law, each party thereto irrevocably consents to the
		service of process in any such suit, action or proceeding in such courts by the
		mailing of such process by registered or certified mail, 
	 

	 
		 
	 

	 
		 
	 

	 
		APPENDIX A -
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		postage prepaid, at its address for notices
		provided for above. Each party to such agreement, instrument or other document
		irrevocably agrees not to assert any objection which it may ever have to the
		laying of venue of any such suit, action or proceeding in any New York State
		court located in the County of New York or Federal court sitting in the Second
		Circuit, and any claim that any such suit, action or proceeding brought in any
		such court has been brought in an inconvenient forum. To the fullest extent
		permitted by Applicable Law, each party to such agreement, instrument or other
		document waives any right it may have to a trial by jury in respect of any
		litigation directly or indirectly arising out of, under or in connection with
		such agreement, instrument or other document. The Company agrees, and it shall
		cause each other Person within the Company Group, not to bring any action, suit
		or proceeding against the Servicer or any of its Affiliates or any of the
		Servicer’s or its Affiliates’ Representatives arising out of, in
		connection with or related to any such agreement, instrument or other document
		or any transaction contemplated thereby except in a New York State court
		located in the County of New York or Federal court sitting in the Second
		Circuit.
	 

	 
		(e) Agent. The
		Company and each other Person within the Company Group hereby appoints
		CT Corporation System (the “Agent”),
		111 Eighth Avenue, New York, New York, U.S.A. 10011, as its nonexclusive agent
		for service of process in connection with each Operative Agreement. The parties
		may use any other legally available means of service of process. The Company
		will promptly notify the Servicer and the Policy Provider of any change in the
		address of the Agent; provided that
		the Company will at all times maintain an agent located within New York State
		for service of process in connection with each Operative Agreement.
	 

	 
		The Servicer hereby appoints [
		              ]
		(the “Servicer’s
		Agent”), [address], New York, N.Y.
		[10xxx], U.S.A., as its nonexclusive agent for service of process in connection
		with each Operative Agreement. The parties may use any other legally available
		means of service of process. The Servicer will promptly notify the Company and
		the Policy Provider of any change in the address of the Servicer’s Agent;
		provided that the Servicer will at all times maintain an agent
		located within New York State for service of process in connection with each
		Operative Agreement.
	 

	 
		(f) Consequential Damages. In no event will any party to such agreement,
		instrument or other document be liable to any other for lost profits, income
		tax consequences, lost savings or any other consequential damages, even if such
		party has been advised of the possibility of such damages, or for punitive
		damages, resulting from the breach of any obligation under such agreement,
		instrument or other document.
	 

	 
		(g) Counterparts.
		Each such agreement, instrument or other document may be executed by the
		parties thereto in separate counterparts, each of which when so executed and
		delivered shall be an original, but all such counterparts shall together
		constitute one and the same agreement, instrument or other document. All
		signatures need not be on the same counterpart.
	 

	 
		(h) Entire Agreement; Amendment and Waiver. Such agreement, instrument or other document, together
		with the other Operative Agreements, shall constitute the entire agreement of
		the parties thereto with respect to the subject matter thereof and supersedes
		all prior written and oral agreements and understandings with respect to such
		subject matter. Neither any such agreement, instrument or other document nor
		any of the Appendix A to the Servicing Agreement terms thereof may be
		terminated, amended, supplemented, waived or modified, except by an instrument
		in writing signed by the Company, the Policy Provider and the Servicer. No
		failure or delay of any party to any such agreement, instrument or other
		document, in exercising any power or right thereunder shall operate as a waiver
		thereof, nor shall any single or 
	 

	 
		 
	 

	 
		 
	 

	 
		APPENDIX A -
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		partial exercise of any such right or power,
		or any abandonment or discontinuance of steps to enforce such a right or power,
		preclude any other or further exercise thereof or the exercise of any other
		right or power.
	 

	 
		(i) Table of Contents; Headings. The table of contents and headings of the various
		articles, sections and other subdivisions of such agreement, instrument or
		other document are for convenience of reference only and shall not modify,
		define or limit any of the terms or provisions of such agreement, instrument or
		other document.
	 

	 
		(j) Parties in Interest; Limitation on Rights of
		Others. The terms of such agreement,
		instrument or other document shall be binding upon, and inure to the benefit
		of, the parties thereto and their permitted successors and assigns and, to the
		extent applicable, their respective Affiliates and Representatives. Except as
		expressly set forth in any such agreement, instrument or other document with
		respect to Affiliates and Representatives of the parties thereto, nothing in
		such agreement, instrument or other document, whether express or implied, shall
		be construed to give any Person (including any past, present or future employee
		of any Person within the Company Group) (other than the parties thereto and
		their permitted successors and assigns (including, in the case of the Company,
		the Security Trustee, the extent provided in Section 12.01 of the Servicing
		Agreement) and, with respect to Section 2.01(a) of the Servicing Agreement and
		Section 9.3 of Schedule 2.02 to the Servicing Agreement, Genesis) any legal or
		equitable right, remedy or claim under or in respect of such agreement,
		instrument or other document or any covenants, conditions or provisions
		contained therein. References in the Servicing Agreement to the Policy Provider
		shall terminate without further action upon the occurrence and during the
		continuance of a Policy Non-Consent Event as defined in the Indenture.
	 

	 
		(k) Method of Payment. Except as otherwise agreed, all amounts required to be
		paid by any party to such agreement, instrument or other document to any other
		party thereunder (including in respect of any judgment or settlement entered in
		respect of such agreement, instrument or other document) shall be paid in
		dollars, by wire transfer, or other acceptable method of payment, of same day
		funds to a dollar account located in the United States as such party may
		specify by notice to the other party.
	 

	 
		(l) Payment on Business Days. If any payment under such agreement, instrument or
		other document is required to be made on a day other than a Business Day, the
		date of payment shall be extended to the next Business Day.
	 

	 
		(m) Past Due Payments. Any amount payable to any party or any of its
		Representatives under any such agreement, instrument or other document shall be
		paid on the date therein specified for payment of such amounts. To the extent
		that all or a portion of such amount is not paid on such date, such amount (or
		the unpaid portion thereof) shall bear interest at the Stipulated Interest Rate
		from such date until and through the date that such amount has been paid in
		full.
	 

	 
		(n) Severability.
		Any provision of such agreement, instrument or other document that shall be
		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 thereof and any such prohibition or
		unenforceability in any jurisdiction shall not invalidate or render
		unenforceable such provision in any other jurisdiction. To the extent permitted
		by Applicable Law, each of the Company and the Servicer waives any provision of
		law that renders any provision of any agreement, instrument or other document
		prohibited or unenforceable in any respect.
	 

	 
		 
	 

	 
		 
	 

	 
		APPENDIX A -
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		“Dollar” or
		“$” means the lawful money of the United States of
		America.
	 

	 
		“Due Date”
		has the meaning assigned to such term in Section 9.07(a) of the Servicing
		Agreement.
	 

	 
		“Effectiveness Date” has the meaning assigned to such term in Section
		10.02(c)(ii) of the Servicing Agreement.
	 

	 
		“Engine”
		means owned or leased-in aircraft engines or, with respect to any Original
		Aircraft, any aircraft engine required to be delivered together with such
		Original Aircraft pursuant to the terms of the Asset Purchase Agreement.

	 

	 
		“EU” means
		the European Union.
	 

	 
		“Event of Default” has the meaning assigned to such term in Section
		1.01 of the Indenture.
	 

	 
		“Executive Order” means US Executive Order No. 13224 on Blocking
		Property and Prohibiting Transaction with Persons who Commit, Threaten to
		Commit, or Support Terrorism, which came into effect on September 23,
		2001.
	 

	 
		“Existing Accounts” has the meaning assigned to such term in
		Section 7.1(a) of Schedule 2.02(a) to the Servicing Agreement.
	 

	 
		“Expense Account” has the meaning assigned to such term in
		Section 3.01(a) of the Indenture.
	 

	 
		“Fee Period”
		has the meaning assigned to such term in Section 9.03(a)(i) of the Servicing
		Agreement.
	 

	 
		“Governmental Authority” means any court, administrative agency or
		commission or other governmental agency or instrumentality (or any officer or
		representative thereof) domestic, foreign or international, of competent
		jurisdiction including the EU.
	 

	 
		“Gross Proceeds” has the meaning assigned to such term in
		Section 9.04(b) of the Servicing Agreement.
	 

	 
		“Guarantee”
		means any obligation, contingent or otherwise, of any Person directly or
		indirectly guaranteeing any Indebtedness or other obligation of any other
		Person and, without limiting the generality of the foregoing, any obligation,
		direct or indirect, contingent or otherwise, of such Person (i) to purchase or
		pay (or advance or supply funds for the purchase or payment of) such
		Indebtedness or other obligation of such other Person or (ii) entered into for
		purposes of assuring in any other manner the obligee of such Indebtedness or
		other obligation of the payment thereof or to protect such obligee against loss
		in respect thereof (in whole or in part); provided,
		however, that the term Guarantee shall not include (x)
		endorsements for collection or deposit, in either case in the ordinary course
		of business, (y) any guarantee by any Person within the Company Group of the
		obligations of another Person within the Company Group in respect of such
		Person’s obligations in connection with any Aircraft Assets, whether as
		lessor, seller or otherwise, or (z) the delivery of a bond or similar
		instrument by or on behalf of any Person within the Company Group in connection
		with the detention or repossession of any Aircraft Assets or enforcement of a
		Lease or removal of an encumbrance.
	 

	 
		“Indebtedness” means, with respect to any Person at any date of
		determination (without duplication), (a) all indebtedness of such Person for
		borrowed money, (b) all obligations of such Person 
	 

	 
		 
	 

	 
		 
	 

	 
		APPENDIX A -
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		evidenced by bonds, debentures, notes or
		other similar instruments, (c) all obligations of such Person in respect of
		letters of credit or other similar instruments (including reimbursement
		obligations with respect thereto), (d) all the obligations of such Person
		to pay the deferred and unpaid purchase price of property or services, which
		purchase price is due more than six months after the date of purchasing such
		property or service or taking delivery and title thereto or the completion of
		such services, and payment deferrals arranged primarily as a method of raising
		finance or financing the acquisition of such property or service, (e) all
		obligations of such Person under a lease of (or other agreement conveying the
		right to use) any property (whether real, personal or mixed) that is required
		to be classified and accounted for as a capital lease obligation under U.S.
		GAAP, (f) all Indebtedness of other Persons secured by a lien on any asset of
		such Person, whether or not such Indebtedness is assumed by such Person, and
		(g) all Indebtedness of other Persons Guaranteed by such Person.
	 

	 
		“Indemnified Parties” means the Servicer and its respective Affiliates
		and each of the Servicer’s and its respective Affiliates’
		Representatives.
	 

	 
		“Indenture”
		means the Trust Indenture dated as of
		[               
		] [        ], 2007, among the Company, the
		Administrative Agent, the Policy Provider and Deutsche Bank Trust Company
		Americas, as trustee.
	 

	 
		“Independent Representative” has the meaning assigned to such term in Section
		3.02(c) of the Servicing Agreement.
	 

	 
		“Independent Director” means the independent directors of the
		Company.
	 

	 
		“International Interest” has the meaning given such term in the Cape Town
		Convention.
	 

	 
		“International Registry” has the meaning given such term in the Cape Town
		Convention.
	 

	 
		“Initial Offer” means the offer by the Company of its Class G-1
		Floating Rate Asset-Backed Notes Series 2006-1 as described in that certain
		Offering Memorandum dated
		[               
		] [        ], 2007.
	 

	 
		“Lease”
		means any lease or other agreement or arrangement pursuant to which any Person
		(other than a Person within the Company Group) has the right to possession and
		use of any Aircraft Asset.
	 

	 
		“Lease Operating Budget” has the meaning assigned to such term in Section
		7.03(a) of the Servicing Agreement.
	 

	 
		“Lessee”
		means the lessee (or equivalent Person) in respect of a Lease.
	 

	 
		“Lessee Contact” has the meaning assigned to such term in Section
		2.01(a) of the Servicing Agreement.
	 

	 
		“Lessee Funded Account” has the meaning assigned to such term in Section
		3.01(a) of the Indenture.
	 

	 
		“Lien”
		means, with respect to any asset, (a) any mortgage, deed of trust, lien,
		pledge, encumbrance, charge, International Interest, Prospective International
		Interest or security interest in or on such asset, (b) the interest of a
		vendor or a lessor under any conditional sale agreement, capital lease or title
		retention agreement relating to such asset and (c) in the case of securities,
		any purchase option, call or similar right of a third party with respect to
		such securities.
	 

	 
		 
	 

	 
		 
	 

	 
		APPENDIX A -
		10
	 

	 
	 

	 

	 
		APPENDIX A TO THE
	 

	 
		SERVICING AGREEMENT
	 

	 
		“Losses”
		means any and all liabilities (including liabilities arising out of the
		doctrine of strict liability), obligations, losses, damages, penalties,
		actions, suits, judgments, costs, fees, expenses (including reasonable legal
		fees, expenses and related charges and costs of investigation, including in
		connection with enforcement of any indemnity) and disbursements, of whatsoever
		kind and nature; provided,
		however, the term “Losses” shall not include Taxes or
		any Indemnified Party’s management time or overhead expenses.
	 

	 
		“Material Adverse Effect” means an event, condition, matter, change or
		effect that impacts or, insofar as reasonably can be foreseen, in the future is
		likely to impact, in a material adverse manner, (a) with respect to any
		Person other than the Servicer, the condition (financial or otherwise),
		properties, assets, liabilities, earnings, capitalization, shareholders’
		equity, licenses or franchises, businesses, operation or prospects of such
		Person or the ability of such Person to perform fully any of its obligations
		under any of the Operative Agreements, and (b) with respect to the Servicer,
		the Servicer’s liabilities, obligations, rights or benefits under the
		Servicing Agreement or the Servicer’s ability to perform fully any of the
		Services.
	 

	 
		“Monthly Base Fee” has the meaning assigned to such term in
		Section 9.01(a) of the Servicing Agreement.
	 

	 
		“Monthly Payment Period” has the meaning assigned to such term in Section
		7.3(a) of Schedule 2.02(a) to the Servicing Agreement.
	 

	 
		“Net Proceeds” has the meaning assigned to such term in Section
		2.03(g) of the Servicing Agreement.
	 

	 
		“New Accounts” has the meaning assigned to such term in Section
		7.1(b) of Schedule 2.02(a) to the Servicing Agreement.
	 

	 
		“Non-Curable Termination Event” has the meaning assigned to such term in Section
		10.02(c)(ii) of the Servicing Agreement.
	 

	 
		 “Nonterminating Party” has the meaning assigned to such term in Section
		10.02(c)(i) of the Servicing Agreement.
	 

	 
		“Note Target Price” has the meaning assigned to such term in the
		Indenture.
	 

	 
		“Notes”
		means any class or subclass of Notes issued pursuant to the Indenture on the
		Closing Date, any Additional Notes and any Refinancing Notes, in each case
		issued pursuant to the Indenture (or pursuant to any supplements
		thereto).
	 

	 
		“Notice of Termination” means a Termination Notice.
	 

	 
		“OFAC Designated Person” means a Person: (a) listed in the annex to, or
		otherwise subject to the provisions of, the Executive Order; (b) named as a
		specially designated national and blocked Person” on the most current list
		published by the Office of Foreign Asset Control of the United States
		Department of the Treasury; or (c) owned or controlled by, or acting for on
		behalf of, any Person referred to in clause (a) or (b) above.
	 

	 
		“Officer’s Certificate” means, as to any Person, a certificate of the
		President, any Vice President or Assistant Vice President, the Treasurer or any
		Assistant Treasurer, the Secretary or any Assistant Secretary, or any
		Director.
	 

	 
		 
	 

	 
		 
	 

	 
		APPENDIX A -
		11
	 

	 
	 

	 

	 
		APPENDIX A TO THE
	 

	 
		SERVICING AGREEMENT
	 

	 
		“Operative Agreements” means the Servicing Agreement, the Company Group
		Guarantees and all other agreements, instruments or other documents, which are
		required by the terms of any thereof to be delivered in connection with any of
		the foregoing documents.
	 

	 
		“Original Aircraft” means any “Aircraft” (as defined in the
		Asset Purchase Agreement); provided that
		Original Aircraft shall not include any “Aircraft” (x) which shall
		have suffered an “Event of Loss” (as defined in the Asset Purchase
		Agreement) or (y) with respect to which a payment of the Aircraft Refund Amount
		has been made pursuant to Section 4.2 or 5.3 of the Asset Purchase
		Agreement.
	 

	 
		“Other Assets” has the meaning assigned to such term in Section
		3.02(a) of the Servicing Agreement.
	 

	 
		“Outstanding Principal Balance” has the meaning assigned to such term in Section
		1.01 of the Indenture.
	 

	 
		“Overhead Expenses” has the meaning assigned to such term in 
	 

	 
		Section 9.06(a) of the Servicing
		Agreement.
	 

	 
		“Partial Termination” has the meaning assigned to such term in
		Section 10.02(a)(ii) of the Servicing Agreement.
	 

	 
		“Payment Date” means the 19th day of each month, commencing on
		[               
		] [        ], 2007; provided that,
		if any Payment Date would otherwise fall on a day that is not a Business Day,
		the relevant Payment Date shall be the first following day which is a Business
		Day.
	 

	 
		“Permitted Account Investments” has the meaning assigned to such term in Section
		1.01 of the Indenture.
	 

	 
		“Person”
		means any individual, firm, corporation, limited liability company,
		partnership, trust, body of persons, joint venture, governmental authority or
		other entity, and shall include any successor (by merger or otherwise) of such
		entity.
	 

	 
		“Policy Provider” means Ambac Assurance Corporation, a Wisconsin
		stock insurance company.
	 

	 
		“Precedent Lease” has the meaning assigned to such term in Section
		3(b) of Schedule 2.02(a) to the Servicing Agreement.
	 

	 
		“Prime Rate”
		means the rate of interest per annum publicly announced from time to time by
		Deutsche Bank Trust Company Americas as its prime rate in effect at its
		principal office in New York City; each change in the “Prime Rate”
		shall be effective on the date such change is announced.
	 

	 
		“Prospective
		International Interest” has the
		meaning given to such term in the Cape Town Convention.
	 

	 
		“Rating Agencies” means each of Standard & Poor’s Ratings
		Group, a division of the McGraw-Hill Companies, Inc. and Moody’s Investors
		Service, Inc. and any successors to either of the foregoing.
	 

	 
		“Ratings”
		means the then current rating assigned by a Rating Agency in respect of the
		Notes.
	 

	 
		 
	 

	 
		 
	 

	 
		APPENDIX A -
		12
	 

	 
	 

	 

	 
		APPENDIX A TO THE
	 

	 
		SERVICING AGREEMENT
	 

	 
		“Refinancing Notes” means any class or subclass of Notes issued
		pursuant to the Indenture (or pursuant to supplements thereto) at any time
		after the Closing Date, the proceeds of which are used to repay all or any part
		of the then outstanding Notes.
	 

	 
		“Reimbursable Audit” has the meaning assigned to such term in Section 5.01
		of the Servicing Agreement.
	 

	 
		“Rent Collected Fee” has the meaning assigned to such term in
		Section 9.03(a)(ii) of the Servicing Agreement.
	 

	 
		“Rent Fees”
		has the meaning assigned to such term in Section 9.01 of the Servicing
		Agreement.
	 

	 
		“Rent Payable Fee” has the meaning assigned to such term in
		Section 9.03(a)(i) of the Servicing Agreement.
	 

	 
		“Rents”
		means the basic rent payable pursuant to a Lease, and in the event that the
		agreement or arrangement pursuant to which possession of any Aircraft Asset is
		given is other than as a lease, amounts equivalent to any basic rent, and, in
		the event that there is a negotiated or non-consensual termination of a Lease
		prior to the scheduled expiry date of the term thereof or the exercise of a
		termination right by the Lessee under a Lease, all amounts payable by the
		Lessee in connection therewith other than amounts that the Servicer allocates
		in good faith to damages for the applicable Aircraft’s failure to comply
		with the return conditions specified in the Lease for such Aircraft (as
		compared with damages for failure to pay overdue or future rent).
	 

	 
		“Replacement Servicer” means a replacement servicer to perform some or
		all of the Services under the Servicing Agreement formerly performed by the
		Servicer, Appendix A to the Servicing Agreement appointed in accordance with
		Section 10.04(c) of the Servicing Agreement.
	 

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

	 
		“Required Expense Amount” has the meaning assigned to such term in Section
		1.01 of the Indenture.
	 

	 
		“Restricted Lessee Contact” has the meaning assigned to such term in Section
		2.01 of the Servicing Agreement.
	 

	 
		“Sales Fee”
		has the meaning assigned to such term in Section 9.01 of the Servicing
		Agreement.
	 

	 
		“Security Trust Agreement” means the Security Trust Agreement dated as of
		the Closing Date among the Company, Deutsche Bank Trust Company Americas, as
		Security Trustee and the operating bank, and the other parties thereto.
	 

	 
		“Security Trustee” means Deutsche Bank Trust Company Americas, a New
		York banking corporation, in its capacity as security trustee pursuant to the
		Security Trust Agreement.
	 

	 
		“Servicer”
		means each of Babcock & Brown Aircraft Management LLC and Babcock &
		Brown Aircraft Management (Europe) Limited.
	 

	 
		“Servicer Delegate” has the meaning assigned to such term in
		Section 12.01 of the Servicing Agreement.
	 

	 
		 
	 

	 
		 
	 

	 
		APPENDIX A -
		13
	 

	 
	 

	 

	 
		APPENDIX A TO THE
	 

	 
		SERVICING AGREEMENT
	 

	 
		“Servicer Termination Event” has the meaning assigned to such term in
		Section 10.02(b) of the Servicing Agreement.
	 

	 
		“Services”
		has the meaning assigned to such term in Section 2.02(a) of the Servicing
		Agreement.
	 

	 
		“Servicing Agreement” or “Agreement”
		means the Servicing Agreement dated as of
		[               
		] [        ], 2007, between the Company and
		the Servicer.
	 

	 
		“Servicing Fees” means the Monthly Base Fee, the Sales Fee, the
		Rent Fees and any other fees payable to the Servicer under the Servicing
		Agreement.
	 

	 
		“Shadow Director/Related Company Claims” has the meaning assigned to such term in
		Section 11.04 of the Servicing Agreement.
	 

	 
		“Significant Subsidiary” means any Person within the Company Group that
		has title to, or any other indicia of ownership in, any Aircraft Assets.

	 

	 
		“Standard of Care” has the meaning assigned to such term in Section
		3.01 of the Servicing Agreement.
	 

	 
		“Standard of Liability” has the meaning assigned to such term in
		Section 3.03 of the Servicing Agreement.
	 

	 
		“Stated Services Obligation” has the meaning assigned to such term in Section
		7.3(a) of Schedule 2.02(a) to the Servicing Agreement.
	 

	 
		“Stipulated Interest Rate” means, for any period, a rate per annum equal to
		the Prime Rate in effect during such period plus 2 percent per annum.
	 

	 
		“Subsidiary”
		of any Person means a corporation, company, common law or statutory trust or
		other entity (i) more than 50% of whose outstanding shares or securities
		(representing the right to vote for the election of directors or other managing
		authority) are, or (ii) which does not have outstanding shares or securities
		(as may be the case in a partnership, joint venture or unincorporated
		association), but more than 50% of whose ownership interest representing the
		right to make decisions for such other entity is, now or hereafter owned or
		controlled, directly or indirectly, by such Person, but such corporation,
		company, common law or statutory trust or other entity shall be deemed to be a
		Subsidiary only so long as such ownership or control exists.
	 

	 
		“Tax” or
		“Taxes” means all fees (including documentation, license
		and registration fees), taxes, assessments, levies, impositions, duties,
		withholdings and other charges of any nature whatsoever (including taxes based
		upon or measured by gross receipts, income, profits, sales, use or occupation,
		and value added, ad valorem, transfer, franchise, withholding, payroll, social
		security, employment, excise, documentary, stamp, corporation, corporation
		profits, advance corporation, capital duty, capital gains, capital
		acquisitions, wealth, vehicle registration, social insurance, and property
		taxes) asserted or imposed by any Governmental Authority, together with all
		interest, fines, penalties and additions imposed with respect to such
		amounts.
	 

	 
		“Taxpayer”
		means any Person within the Company Group or any predecessor of any Person
		within the Company Group, or any successor to any Person within the Company
		Group or Babcock & Brown Air Limited and its Subsidiaries (but not
		including the Servicer or any of its Affiliates).
	 

	 
		 
	 

	 
		 
	 

	 
		APPENDIX A -
		14
	 

	 
	 

	 

	 
		APPENDIX A TO THE
	 

	 
		SERVICING AGREEMENT
	 

	 
		“Terminating Party” has the meaning assigned to such term in
		Section 10.02(c)(i) of the Servicing Agreement.
	 

	 
		“Termination Notice” has the meaning assigned to such term in
		Section 10.02(c)(i) of the Servicing Agreement.
	 

	 
		“Third Party Claim” means a claim by a third party arising out of a
		matter for which an Indemnified Party is entitled to be indemnified pursuant to
		the indemnity provisions of the Servicing Agreement.
	 

	 
		“Transaction Approval Requirements” has the meaning assigned to such term in Section
		7.04(c) of the Servicing Agreement.
	 

	 
		“Trustee”
		has the meaning assigned to such term in the Indenture.
	 

	 
		“U.S.” means
		the United States of America.
	 

	 
		“U.S. GAAP”
		means generally accepted accounting principles in the United States.
	 

	 
		“Utilization Rent” means the utilization rent, supplemental rent,
		and other similar payments (including payments analogous to or consisting of
		maintenance reserves) under each of the Leases.
	 

	 
		“Year” means
		each fiscal year ending December 31.
	 

	 
		 
	 

	 
		 
	 

	 
		APPENDIX A -
		15
	 

	 
	 

	 

	 
		GUARANTEE dated as of [insert date],
	 

	 
		made by [insert name]
		(“Guarantor”) in favor of Babcock & Brown Aircraft Management
		(Europe) Limited and Babcock & Brown Aircraft Management LLC (collectively,
		the “Servicer”) and its Affiliates relating to the Servicing
		Agreement dated as of _________ __, 2007 (the “Agreement”),
		between the Servicer and _________________(the “Company”).
	 

	 
		WHEREAS pursuant to the Agreement, the
		Servicer has agreed to provide Services to each Person within the Company Group
		in accordance with and to the extent set forth in the Agreement;
	 

	 
		WHEREAS the Obligor is a party to the
		Agreement and is liable for any and all amounts due and owing to the Servicer
		and any of its Affiliates under the Agreement; and
	 

	 
		WHEREAS each Person within the Company Group
		is a direct or indirect beneficiary of the Services performed by the Servicer
		pursuant to the Agreement.
	 

	 
		NOW, THEREFORE, in consideration of the
		premises and to induce the Servicer to enter in the Agreement and to perform
		the Services thereunder, Guarantor hereby agrees, for the benefit of the
		Servicer and its Affiliates, as follows:
	 

	 
		1. Guarantor unconditionally and irrevocably
		guarantees to the Servicer and its Affiliates (a) the due and punctual
		payment of all amounts due to the Servicer and its Affiliates from the Obligor
		under the Agreement, whether now existing or hereafter incurred, and (b) the
		due and punctual performance of all other obligations of the Obligor to the
		Servicer and its Affiliates under the Agreement (all the foregoing being
		hereinafter collectively called the “Obligations”) and any and all
		fees and expenses (including, without limitation, reasonable attorneys’
		fees and expenses) incurred by the Servicer and its Affiliates in enforcing any
		rights under this Guarantee, all without regard to any counterclaim, set-off,
		deduction or defense of any kind which the Obligor or Guarantor may have or
		assert, and without abatement, suspension, deferment or diminution on account
		of any event or condition whatsoever. In case of failure of the Obligor
		punctually to pay any of the amounts referred to in clause (a) above, Guarantor
		hereby agrees to cause such amounts to be paid punctually when and as the same
		shall become due and payable as if such payment were made by the Obligor.
		Guarantor further agrees that this Guarantee constitutes a guarantee of payment
		when due and not of collection.
	 

	 
		2. The liability of the undersigned under
		this Guarantee shall, to the fullest extent permitted by Applicable Law, be
		unconditional irrespective of (i) any lack of enforceability against the
		Obligor of any Obligation, (ii) any change of the time, manner or place of
		payment, or any other term, of any Obligation, (iii) any exchange, release or
		nonperfection of any collateral securing payment of any Obligation or any other
		guarantee in respect thereof, (iv) any law, regulation or order of any
		jurisdiction affecting any term of any Obligation or the Servicer’s or any
		of its Affiliates’ rights with respect thereto and (v) any other
		circumstance which might vary the risk of or otherwise constitute a defense
		available to, or a discharge of, the Obligor, Guarantor or any surety. The
		Guarantor waives, to the fullest extent permitted by Applicable Law,
		promptness, diligence and notices with respect to any Obligation and this
		Guarantee and any requirement that the Servicer or any of its Affiliates
		exhaust any right or take any action against the Obligor, any collateral
		security or any other guarantor.
	 

	 
		3. In the event that the Guarantor is
		required by any applicable law to make any deduction or withholding for or on
		account of Taxes from any payment to be made by it hereunder, then it shall
		
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		APPENDIX B TO THE
	 

	 
		SERVICING AGREEMENT
	 

	 
		(i) pay over to the government or
		taxing authority imposing such Tax the full amount required to be deducted or
		withheld (including the full amount required to be deducted or withheld from
		the additional amounts required to be paid pursuant to clause (ii) below), (ii)
		pay to the Servicer or its Affiliates, as the case may be, together with such
		payment such additional amounts as may be necessary in order that the net
		amount received by the Servicer or its Affiliates, as the case may be, will be
		not less than the full amount of such payment which would otherwise have been
		receivable had no such deduction or withholding been required and (iii) forward
		to the Servicer as soon as possible such tax receipts or other official
		documentation with respect to the payment of the Taxes so deducted or withheld
		as may be issued from time to time by such government or taxing
		authority.
	 

	 
		4. Guarantor further agrees that this
		Guarantee shall continue to be effective or be reinstated, as the case may be,
		if at any time payment, or any part thereof, of any Obligation or interest
		thereon is rescinded or must otherwise be restored by the Servicer upon the
		bankruptcy or reorganization of the Obligor, Guarantor or otherwise.
	 

	 
		5. Upon payment by Guarantor of any sums to
		the Servicer or its Affiliates under this Guarantee, all rights of Guarantor
		against the Obligor arising as a result thereof by way of right of subrogation
		or otherwise shall in all respects be subordinate and junior in right of
		payment to the prior indefeasible payment in full of all the obligations of the
		Obligor under the Agreement.
	 

	 
		6. The Guarantor represents and warrants as
		of the date hereof to the Servicer and its Affiliates that:
	 

	 
		(a) the Guarantor is a [corporation or
		business trust duly organized and validly existing and, if relevant, in good
		standing under the laws of the jurisdiction in which it is legally organized]
		[national banking association duly organized and validly existing in good
		standing under the laws of the United States], and has full power, authority
		and legal right to execute and deliver, and to perform its obligations under,
		this Guarantee;
	 

	 
		(b) the Guarantor has taken all necessary
		corporate and legal action to authorize the guarantee hereunder on the terms
		and conditions of this Guarantee and to authorize its execution, delivery and
		performance;
	 

	 
		(c) this Guarantee has been duly executed
		and delivered by a duly authorized officer or Representative of the Guarantor,
		and constitutes the legal, valid and binding obligation of the Guarantor,
		enforceable against the Guarantor in accordance with its terms;
	 

	 
		(d) the execution, delivery and performance
		of this Guarantee will not constitute a default under or violate any provision
		of any law or regulation, or any judgment or order of any court, arbitrator or
		governmental authority, in each case applicable to the Guarantor, constituent
		documents of the Guarantor, or any agreement to which the Guarantor is a party;
		and
	 

	 
		(e) no consent of any other Person, and no
		consent, license, permit, approval or authorization of, exemption by, notice or
		report to, or registration, filing or declaration with, any Governmental
		Authority, is required in connection with the execution delivery, performance,
		validity or enforceability with respect to the Guarantor of this
		Guarantee.
	 

	 
		7. This Guarantee shall remain in full force
		and effect and be binding in accordance with its terms upon the Guarantor and
		shall inure to the benefit of the Servicer and its Affiliates until all the
		Obligations and the obligations of the Guarantor under this Guarantee shall
		have been satisfied by indefeasible payment in full.
	 

	 
		 
	 

	 
		 
	 

	 
		APPENDIX B -
		17
	 

	 
	 

	 

	 
		APPENDIX B TO THE
	 

	 
		SERVICING AGREEMENT
	 

	 
		8. The obligations of Guarantor under this
		Guarantee may not be assigned or delegated without the prior written consent of
		the Servicer.
	 

	 
		9. The liability of the Guarantor under this
		Guarantee is limited to the maximum amount that will result in the obligations
		of the Guarantor not constituting a fraudulent conveyance or fraudulent
		transfer under Applicable Law.
	 

	 
		10. This Guarantee shall be governed by the
		Documentary Conventions, and all capitalized terms used but not defined herein
		have the meanings assigned to such terms in Appendix A to the Agreement. The
		construction and usage set forth in such Appendix A are incorporated herein by
		reference.
	 

	 
		11. All of the statements, representations,
		covenants and agreements made by Guarantor contained in this Guarantee are made
		and intended only for the purpose of binding the Trust Estate (as such
		expression is defined in the Trust Agreement) and establishing the existence of
		rights and remedies which can be exercised and enforced against the Trust
		Estate. Therefore, anything contained in this Guarantee to the contrary
		notwithstanding, no recourse shall be had with respect to this Guarantee
		against Guarantor in its individual capacity or against any institution or
		person which becomes a successor trustee or co-trustee or any officer,
		director, trustee, servant or direct or indirect parent or controlling person
		or persons of any of them; provided, however, that this Section 11 shall not be
		construed to prohibit any action or proceeding against any party hereto for its
		own willful misconduct or grossly negligent conduct for which it would
		otherwise be liable; and provided, further, that nothing contained in this
		Section 11 shall be construed to limit the exercise and enforcement in
		accordance with the terms of this Guarantee or such other agreements of rights
		and remedies against the Trust Estate.
	 

	 
		IN WITNESS WHEREOF, Guarantor has executed
		this Guarantee as of the date first above written.
	 

	  

	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  [Insert Name of Guarantor]
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  
 
 By: 
				

			 	
				
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Name:

				  Title:
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		APPENDIX B -
		18
	 

	 
	 

	 

	 
		Notices
	 

	 
		If to the Servicer:
	 

	 
		Babcock & Brown Aircraft Management
		(Europe) Limited
	 

	 
		West Pier
	 

	 
		Dun Loaghaire
	 

	 
		, County Dublin
	 

	 
		Ireland
	 

	 
		Attention: Company Secretary
	 

	 
		Fax: (353) 1-231-1901 
	 

	 
		Telephone: (353) 1-231-1900
	 

	 
		and to:
	 

	 
		Babcock & Brown Aircraft Management LLC
		
	 

	 
		6th Floor
	 

	 
		2 Harrison Street
	 

	 
		San Francisco, California 74106
	 

	 
		Attention: General Counsel
	 

	 
		Fax: (415) 512-1515
	 

	 
		Telephone: (415) 267-1500 
	 

	 
		If to the Company:
	 

	 
		Babcock & Brown Air Funding I
		Limited
	 

	 
		c/o Babcock & Brown Aircraft Management
		(Europe) Limited
	 

	 
		West Pier
	 

	 
		Dun Loaghaire
	 

	 
		, County Dublin
	 

	 
		Ireland
	 

	 
		Attention: Company Secretary
	 

	 
		Fax: (353) 1-231-1901 
	 

	 
		Telephone: (353) 1-231-1900
	 

	 
		If to the Administrative Agent:
	 

	 
		Babcock & Brown Aircraft Management
		(Europe) Limited
	 

	 
		West Pier
	 

	 
		Dun Loaghaire
	 

	 
		, County Dublin
	 

	 
		Ireland
	 

	 
		Attention: Company Secretary
	 

	 
		Fax: (353) 1-231-1901 
	 

	 
		Telephone: (353) 1-231-1900
	 

	 
		If to the Cash Manager:
	 

	 
		Deutsche Bank Trust Company Americas
	 

	 
		Attention: Structured Finance Services/Trust
		& Securities Services
	 

	 
		60 Wall Street
	 

	 
		New York, NY 10005
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		APPENDIX C TO THE
SERVICING AGREEMENT
	 

	 
		 
	 

	 
		Telephone: (212) 250-4109
	 

	 
		 
	 

	 
		 
	 

	 
		APPENDIX C
	 

	 
		 
	 

	 
	 

	 

	 
		MONTHLY REPORT TO THE COMPANY
	 

	 
		 
	 

	 
		
		  	
				  
					  
				  

				
	
				  
					 Babcock & Brown Air
					 Funding I Limited
				  

				
	
				  
					  
				  

				
	
				  
					 Servicer’s Report for
					 the Period
				  

				
	
				  
					 [_____________________]
				  

				
	
				  
					  
				  

				

 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		EXHIBIT A TO

		THE SERVICING AGREEMENT
	 

	 
		 
	 

	 
		Summary of commercial
		activity
	 

	 
		All of the Company’s [ # ] aircraft are
		currently on lease, to [ # ] customers in [ # ] countries. 
	 

	 
			
				
				  •
				

			 	
				
				  On [____________] an LOI was signed
				  with [ ________ ] for the lease of MSN [ # ], a _______________, for [ # ]
				  months at [ $ _____ ] per month. This aircraft will be redelivering from
				  [___________]. 
				

			 

 

	 
		Cash disbursements expected
		[___________ to _____________].
	 

	 
			
				
				  Serial Number
				

			 	
				
				  Description of Cost
				

			 	
				
				  Amount
				

			 

 

	 
		Material cash disbursements
		anticipated from [______________ not included in the _____
		Budget].
	 

	 
		Events of Loss
	 

	 
		No Event of Loss was reported during the
		Reporting Period.
	 

	 
		Notices of
		Default
	 

	 
		No event of default was issued in the
		previous month. 
	 

	 
		Lease Receivables and
		Arrears
	 

	 
		The total outstanding is [ $ ______ ]
		compared to [ $ ______ ] at the end of [ previous reporting period ]. 
	 

	 
		 
	 

	 
		 
	 

	 
		EXHIBIT A
	 

	 
		 
	 

	 
	 

	 

	 
		EXHIBIT A TO

		THE SERVICING AGREEMENT
	 

	 
		 
	 

	 
		Appendix – 1
	 

	 
		Babcock & Brown Air 
	 

	 
		Funding I Limited
	 

	 
			
				
				  Cash Receipts during the
				  Reporting Period – [___________________]
				

			 

 

	 
		 
	 

	 
			
				
				  Lessee
				

			 	
				
				   
				

			 	
				
				  Serial No.
				

			 	
				
				   
				

			 	
				
				  Total
				

			 	
				
				   
				

			 	
				
				  Rent
				

			 	
				
				   
				

			 	
				
				  Maintenance
				

			 	
				
				   
				

			 	
				
				  Interest
				

			 	
				
				   
				

			 	
				
				  Other
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  0 
				

			 	
				
				   
				

			 	
				
				  0
				

			 	
				
				   
				

			 	
				
				  0
				

			 	
				
				   
				

			 	
				
				  0
				

			 	
				
				   
				

			 	
				
				  0 
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		EXHIBIT A
	 

	 
		 
	 

	 
	 

	 

	 
		EXHIBIT A TO

		THE SERVICING AGREEMENT
	 

	 
		 
	 

	 
		Appendix 2 Arrears as at
		[_______________]
	 

	 
		 
	 

	 
			
				
				  Lessee
				

			 	
				
				   
				

			 	
				
				  Serial No.
				

			 	
				
				   
				

			 	
				
				  Rent
				

			 	
				
				   
				

			 	
				
				  Maintenance
				

			 	
				
				   
				

			 	
				
				  Interest
				

			 	
				
				   
				

			 	
				
				  Other
				

			 	
				
				   
				

			 	
				
				  Total
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  0
				

			 	
				
				   
				

			 	
				
				  0
				

			 	
				
				   
				

			 	
				
				  0
				

			 	
				
				   
				

			 	
				
				  0
				

			 	
				
				   
				

			 	
				
				  0
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		EXHIBIT A
	 

	 
		 
	 

	 
	 

	 

	 
		QUARTERLY REPORT TO THE COMPANY
	 

	 
		 
	 

	 
		
		  	
				  
					 Babcock & Brown Air
					 Funding I Limited
				  

				  
					 Servicer’s Quarterly
					 Report
 [Month]
					 1st – [Month] [__]th, [____]
				  

				  
					  
				  

				

 
 

	 
		SECTION {9.2}:
	 

	 
			
				
				  (a)
				

			 	
				
				  Portfolio
				  Information.
				

			 

 

	 
		 
	 

	 
	 

	 

	 
		EXHIBIT B TO
THE SERVICING AGREEMENT
	 

	 
		 
	 

	 
			
				
				  A.
				

			 	
				
				  See Appendix 1 for
				  details.
				

			 

 

	 
			
				
				  (b) 
				

			 	
				
				  Concentration of Aircraft
				  (based on [_____________] Appraised Values)
				

			 

 

	 
		 
	 

	 
			
				
				  Lessee Concentration
				  Limits
				

			 	
				
				   
				

			 	
				
				  Limits
 Below 10
 Years
				

			 	
				
				   
				

			 	
				
				  Limits
 Above 10
 Years
				

			 	
				
				   
				

			 	
				
				  New Rating

				  Limit
				

			 	
				
				   
				

			 	
				
				  Current
				

			 
	
				
				  Single lessee (Developed or Emerging
				  Region)
				

			 	
				
				   
				

			 	
				
				  15.0%
				

			 	
				
				   
				

			 	
				
				  15.0%
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Single lessee (Undesignated
				  Region)
				

			 	
				
				   
				

			 	
				
				  10.0%
				

			 	
				
				   
				

			 	
				
				  10.0%
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Three largest lessees
				

			 	
				
				   
				

			 	
				
				  35.0%
				

			 	
				
				   
				

			 	
				
				  35.0%
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Country Concentration
				  Limits
				

			 	
				
				   
				

			 	
				
				  Limit
				

			 	
				
				   
				

			 	
				
				  Limit
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Single country rated the equivalent
				  of BBB/Baa2 or better
				

			 	
				
				   
				

			 	
				
				  25.0%
				

			 	
				
				   
				

			 	
				
				  25.0%
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Single country rated the equivalent
				  of BBB/Baa2 or below
				

			 	
				
				   
				

			 	
				
				  17.50%
				

			 	
				
				   
				

			 	
				
				  17.5%
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Single country (Undesignated
				  Region)
				

			 	
				
				   
				

			 	
				
				  5.0%
				

			 	
				
				   
				

			 	
				
				  5.0%
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Region Concentration
				  Limits
				

			 	
				
				   
				

			 	
				
				  Limit
				

			 	
				
				   
				

			 	
				
				  Limit
				

			 	
				
				   
				

			 	
				
				  New Rating
 Limit
				

			 	
				
				   
				

			 	
				
				  Current
				

			 
	
				
				  Developed Europe
				

			 	
				
				   
				

			 	
				
				  50.0%
				

			 	
				
				   
				

			 	
				
				  55.0%
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Developed Asia/Pacific
				

			 	
				
				   
				

			 	
				
				  35.0%
				

			 	
				
				   
				

			 	
				
				  40.0%
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  North America
				

			 	
				
				   
				

			 	
				
				  30.0%
				

			 	
				
				   
				

			 	
				
				  35.0%
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Emerging Europe & Africa /
				  Middle East
				

			 	
				
				   
				

			 	
				
				  35.0%
				

			 	
				
				   
				

			 	
				
				  45.0%
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Latin America / Caribbean
				

			 	
				
				   
				

			 	
				
				  25.0%
				

			 	
				
				   
				

			 	
				
				  35.0%
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Emerging Asia / Pacific
				

			 	
				
				   
				

			 	
				
				  40.0%
				

			 	
				
				   
				

			 	
				
				  50.0%
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Indian Subcontinent
				

			 	
				
				   
				

			 	
				
				  20.0%
				

			 	
				
				   
				

			 	
				
				  30.0%
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Undesignated
				

			 	
				
				   
				

			 	
				
				  10.0%
				

			 	
				
				   
				

			 	
				
				  10.0%
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 

 

	 
		The applicable rating is the sovereign
		foreign currency debt rating assigned by the Rating Agencies to the country in
		which a Lessee is habitually based or domiciled at the time the relevant is
		executed.
	 

	 
		The Concentration Limits for the Initial
		Aircraft will be determined based on the Leases to which such Initial Aircraft
		are subject to, regardless of the time or order of acquisition. Without
		limiting Section 5.03 of the Indenture, any failure to meet the Concentration
		Limits arising solely by reason of the non-acquisition of an Initial Aircraft
		will be deemed not to result in a Concentration Default.
	 

	 
			
				
				  (c)
				

			 	
				
				  Pending and potential
				  litigation involving any Aircraft Assets or Leases of which the Servicer has
				  written notice.
				

			 

 

	 
			
				
				  (d)
				

			 	
				
				  Claims being made with respect
				  of any of the Aircraft Assets, of which the Servicer is aware, with an actual
				  or potential liability in excess of $10,000,000.
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		EXHIBIT B
	 

	 
		 
	 

	 
	 

	 

	 
		EXHIBIT B TO
THE SERVICING AGREEMENT
	 

	 
		 
	 

	 
			
				
				  (e)
				

			 	
				
				  Option
				  Information
				

			 

 

	 
			
				
				  (f)
				

			 	
				
				  Leases expiring during the
				  following two quarters ending [
				                   ]
				  [        ] 20 [    ]
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		EXHIBIT B
	 

	 
		 
	 

	 
	 

	 

	 
		QUARTERLY REPORT TO THE COMPANY
	 

	 
		The Babcock & Brown Air Funding I
		Limited Group
	 

	 
		Cash Receipts - Reporting Period -
		____________________
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  Analysis Of Receipt
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Lessee
				

			 	
				
				   
				

			 	
				
				  Receipt
 Date
				

			 	
				
				   
				

			 	
				
				  Serial
 No.
				

			 	
				
				   
				

			 	
				
				  Total
				

			 	
				
				   
				

			 	
				
				  Lease
 Rent
				

			 	
				
				   
				

			 	
				
				  Supplemental

				  Rents
				

			 	
				
				   
				

			 	
				
				  Security
 Deposit
				

			 	
				
				   
				

			 	
				
				  Late
 Payment
 Interest
				

			 	
				
				   
				

			 	
				
				  Other
 Receipts
				

			 	
				
				   
				

			 	
				
				  Commentary
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  $
				

			 	
				
				   
				

			 	
				
				  $
				

			 	
				
				   
				

			 	
				
				  $
				

			 	
				
				   
				

			 	
				
				  $
				

			 	
				
				   
				

			 	
				
				  $
				

			 	
				
				   
				

			 	
				
				  $
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				   
				

			 

 

	 
		 
	 

	 
	 

	 

	 
		EXHIBIT B TO
THE SERVICING AGREEMENT
	 

	 
		 
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
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				  0.00
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
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				  0.00
				

			 	
				
				   
				

			 	
				
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				  0.00
				

			 	
				
				   
				

			 	
				
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				  0.00
				

			 	
				
				   
				

			 	
				
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				  0.00
				

			 	
				
				   
				

			 	
				
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				  0.00
				

			 	
				
				   
				

			 	
				
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				  0.00
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				  0.00
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		EXHIBIT B
	 

	 
		 
	 

	 
	 

	 

	 
		 
	 

	 
		 
	 

	 
		EXHIBIT B TO
THE SERVICING AGREEMENT
	 

	 
		 
	 

	 
		ADDITIONAL INFORMATION
		TO BE PROVIDED TO THE
		POLICY
		PROVIDER
	 

	 
			
				
				  I.
				

			 	
				
				  Monthly
				

			 

 

	 
		STATUS OF ALL AIRCRAFT NOT ON
		LEASE
	 

	 
		if any, please list and fully
		describe
	 

	 
		LEASING ACTIVITY SINCE LAST
		REPORT
	 

	 
		 
	 

	 
			
				
				  MSN
				

			 	
				
				   
				

			 
	
				
				  Aircraft Type
				

			 	
				
				   
				

			 
	
				
				  Lessee
				

			 	
				
				   
				

			 
	
				
				  Country
				

			 	
				
				   
				

			 
	
				
				  Region
				

			 	
				
				   
				

			 
	
				
				  Lease Inception Date
				

			 	
				
				   
				

			 
	
				
				  Lease Expiry Date
				

			 	
				
				   
				

			 
	
				
				  Lease Rate
				

			 	
				
				   
				

			 
	
				
				  Payment Frequency
				

			 	
				
				   
				

			 
	
				
				  Floating or Fixed Lease
				

			 	
				
				   
				

			 
	
				
				  Maint. Reserves/Additional Rent
				  (Yes/No)
				

			 	
				
				   
				

			 
	
				
				  Security Deposit Amount
				

			 	
				
				   
				

			 
	
				
				  Purchase Option (Yes/No)
				

			 	
				
				   
				

			 
	
				
				  Lease Renewal/Extension
				  (Yes/No)
				

			 	
				
				   
				

			 
	
				
				  Lessee Termination (Yes/No)
				

			 	
				
				   
				

			 

 

	 
		SALES ACTIVITY SINCE LAST
		REPORT
	 

	 
		 
	 

	 
			
				
				  MSN
				

			 	
				
				   
				

			 
	
				
				  Aircraft Type
				

			 	
				
				   
				

			 
	
				
				  Sales Price
				

			 	
				
				   
				

			 
	
				
				  Seller
				

			 	
				
				   
				

			 
	
				
				  Purchaser
				

			 	
				
				   
				

			 
	
				
				  Disposition Date
				

			 	
				
				   
				

			 
	
				
				  Debt Allocated to such
				  Aircraft
				

			 	
				
				   
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		EXHIBIT B
	 

	 
		 
	 

	 
	 

	 

	 
		EXHIBIT B TO
THE SERVICING AGREEMENT
	 

	 
		 
	 

	 
		TOTAL CASUALTY LOSS SINCE LAST
		REPORT
	 

	 
		 
	 

	 
			
				
				  Description of event and all
				  relevant available information
				

			 	
				
				   
				

			 
	
				
				  Stipulated Loss Value per the lease
				  contract
				

			 	
				
				   
				

			 
	
				
				  Insurance Proceeds
				

			 	
				
				   
				

			 
	
				
				  Debt Allocated to such
				  Aircraft
				

			 	
				
				   
				

			 

 

	 
		DEFAULT NOTICES ISSUED TO LESSEES
		SINCE LAST REPORT
	 

	 
		 
	 

	 
			
				
				  MSN
				

			 	
				
				   
				

			 
	
				
				  Lessee
				

			 	
				
				   
				

			 
	
				
				  Description of default notice

				

			 	
				
				   
				

			 

 

	 
		NOTICE OF FAILURE TO PERFORM UNDER
		SECTION 2.01(A)(IX) OF SERVICING AGREEMENT
	 

	 
		[insert description of failure to
		perform]
	 

	 
			
				
				  II.
				

			 	
				
				  Quarterly
				

			 

 

	 
		OPTION
		INFORMATION
	 

	 
		 
	 

	 
			
				
				  MSN
				

			 	
				
				   
				

			 	
				
				  Aircraft Type
				

			 	
				
				   
				

			 	
				
				  Year of Manufacture
				

			 	
				
				   
				

			 	
				
				  Exercise

				  Price
				

			 	
				
				   
				

			 	
				
				  Exercise

				  Date
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		EXHIBIT B
	 

	 
		 
	 

	 
	 

	 

	 
		EXHIBIT B TO
THE SERVICING AGREEMENT
	 

	 
		 
	 

	 
		LIST OF ALL LEASES/LESSEES THAT ARE
		OVER 30 DAYS PAST DUE
	 

	 
		if any, please list and fully
		describe
	 

	 
		CONFLICT EVENTS (NOT PREVIOUSLY
		REPORTED)
	 

	 
		if any, please list and describe in
		reasonable detail (including identity of the lessee, aircraft and Independent
		Representative involved and date of inception based on the date the Independent
		Representative was appointed)
	 

	 
		ADDITIONAL
		EXPENSES
	 

	 
		Amount and nature of expenses incurred
		outside of the ordinary course of business per Section 7.04(vii) of the
		Servicing Agreement for (1) the period and (ii) cumulative, inception to
		date)
	 

	 
		PORTFOLIO REPORT

	 

	 
		 
	 

	 
			
				
				  MSN
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Aircraft Type
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Engine Type
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Year of Manufacturer
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Lessee
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Country
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Region
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Lease Inception Date
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Lease Expiry Date
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 

 

	 
		 
	 

	 
		 
	 

	 
		EXHIBIT B
	 

	 
		 
	 

	 
	 

	 

	 
		EXHIBIT B TO
THE SERVICING AGREEMENT
	 

	 
		 
	 

	 
		 
	 

	 
			
				
				  Lease Rate
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Payment Frequency
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Floating Rate or Fixed Lease
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Maint. Reserves/Additional Rent
				  (Yes/No)
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Security Deposit Amount
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Purchase Option (Yes/No)
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Lease Renewal/Extension Option
				  (Yes/No)
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				  Lease Termination Option
				  (Yes/No)
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 

 

	 
		DAMAGE
		NOTIFICATION
	 

	 
		Description of known damage, estimated in
		excess of $500,000.
	 

	 
			
				
				  III.
				

			 	
				
				  Annually
				

			 

 

	 
		UPDATED APPRAISAL VALUES (TO THE
		EXTENT REQUIRED BY THE INDENTURE)
	 

	 
		Aircraft-by aircraft updated appraised
		values, to the extent updates are required under the Indenture.
	 

	 
		 
	 

	 
		 
	 

	 
		EXHIBIT B

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}]]