Document:

Exhibit 4.23

 

MBIA INSURANCE CORPORATION

 

FINANCIAL GUARANTY INSURANCE
POLICY

 

November 15, 2004

 

Policy No. 45256

 

	
  Re:

  	
  JetBlue
  Airways Pass Through Trust 2004-2G-2 (the “Class G-2 Trust”)
  $185,418,000 Floating Rate JetBlue Airways Pass Through Certificates, Series
  2004-2G-2 (the “Class G-2 Certificates”)

  
	
  Insured
  Obligation:

  	
  Payment of interest at the Stated Interest Rate
  for the Class G-2 Certificates and, without duplication, any Deposit relating
  to the Escrow Receipts referred to below and principal on the Class G-2
  Certificates.

  
	
  Beneficiary:

  	
  Wilmington Trust Company, as subordination agent
  (together with any successor subordination agent duly appointed and qualified
  under the Agreement (as defined below), the “Subordination Agent”)

  

 

MBIA INSURANCE CORPORATION (“MBIA”), for
consideration received, hereby unconditionally, absolutely and irrevocably and
without the assertion of any defenses to payment, including fraud in the
inducement or fact or any other circumstances (other than payment in full) that
would have the effect of discharging a surety in law or in equity guarantees to
the Subordination Agent, subject only to the terms of this Policy (the “Policy”), payment of
the Insured Obligation.  MBIA agrees to
pay to the Subordination Agent, in respect of each Distribution Date, an amount
equal to (each a “Deficiency Amount”):

 

(i)                    with respect to any Regular
Distribution Date other than the Final Legal Distribution Date, any shortfall
in amounts available to the Subordination Agent (or, in the case of Escrow
Receipts, the Paying Agent (as defined in the Escrow and Paying Agent Agreement
for the Class G-2 Trust)), after giving effect to the subordination provisions
of the Agreement and the application of any amounts available to the Paying
Agent in the Class G-2 Paying Agent Account in respect of accrued interest
at the Stated Interest Rate on the Class G-2 Deposits, any drawing paid
under the Class G-2  Primary Liquidity
Facility in respect of interest due on the Class G-2 Certificates on such
Distribution Date and any withdrawal from the Class G-2 Primary Cash Collateral
Account and the Class G-2 Above-Cap Account in respect of interest due on the
Class G-2 Certificates on such Distribution Date in accordance with the
Agreement, for the payment of accrued and unpaid interest on the Class G-2
Certificates and, without duplication, accrued and unpaid interest on any
Deposit relating to the Escrow Receipts (as defined in and issued under the
Escrow and Paying Agent Agreement for the Class G-2 Trust), in each case at the
Stated Interest Rate for the Class G-2 Certificates on the Pool Balance of the
Class G-2 Certificates on such Distribution Date;

 

 

(ii)                 with respect to any Special
Distribution Date (other than an Election Distribution Date or a Special Distribution
Date established pursuant to the succeeding clause (iv) below) established by
reason of receipt of a Special Payment (other than a Special Payment arising
from the purchase of any Series G-2 Equipment Notes by any or all of the Class
C Certificateholders pursuant to Section 2.7 of the Agreement)
constituting the proceeds of any Series G-2 Equipment Notes (as to which there
has been a default in the payment of principal thereof or that has been
accelerated) or the related Collateral, as the case may be, any shortfall in
the amounts available to the Subordination Agent after giving effect to the
subordination provisions of the Agreement, the application of any amounts
available to the Paying Agent in the Class G-2 Paying Agent Account in
respect of accrued interest at the Stated Interest Rate on the Class G-2
Deposits and, if such Special Payment is received prior to a Policy Provider
Election with respect to such Series G-2 Equipment Note, any drawing paid under
the Class G-2 Primary Liquidity Facility in respect of interest due on the
Class G-2 Certificates on such Distribution Date and any withdrawal from the
Class G-2 Primary Cash Collateral Account and the Class G-2 Above-Cap Account
in respect of interest due on the Class G-2 Certificates on such Distribution
Date in accordance with the Agreement, required to reduce the Pool Balance of
the Class G-2 Certificates by an amount equal to the outstanding principal
amount of such Series G-2 Equipment Note (determined immediately prior to the
receipt of such proceeds and less the amount of any drawings previously paid by
MBIA in respect of principal on such Series G-2 Equipment Note) plus accrued
and unpaid interest on the amount of such reduction at the Stated Interest Rate
for the Class G-2 Certificates for the period from the immediately preceding
Regular Distribution Date to such Special Distribution Date; provided, however,
that, notwithstanding anything to the contrary herein, the purchase of any
Series G-2 Equipment Notes by any or all of the Class C Certificateholders
pursuant to Section 2.7 of the Agreement shall not result in a “Deficiency
Amount” under this clause (ii) that is payable by MBIA under this paragraph
regardless of whether or not the proceeds of such purchase, together with any
other available funds, are sufficient to reduce the Pool Balance of the Class
G-2 Certificates by an amount equal to the outstanding principal amount of such
Series G-2 Equipment Notes (determined immediately prior to the receipt of such
proceeds and less the amount of any drawings previously paid by MBIA in respect
of principal on such Series G-2 Equipment Notes) plus accrued and unpaid
interest on the amount of such reduction at the Stated Interest Rate for the
Class G-2 Certificates from the period from the immediately preceding Regular
Distribution Date to such Special Distribution Date;

 

(iii)     with respect to the Special Distribution Date established by
reason of the failure of the Subordination Agent or the Class G-2 Trustee, as
the case may be, to have received a Special Payment constituting the proceeds
of any Series G-2 Equipment Note or the related Collateral (including, without
limitation, proceeds received in connection with the purchase by any or all of
the Class C Certificateholders of any Series G-2 Equipment Note pursuant to Section 2.7
of the Agreement) during the twenty-one (21) month period beginning on the last
date on which full payment was made on such Series G-2 Equipment Note (the date
of such payment in full, the “Last Payment Date”) as to which there has
been a failure to pay principal or that has been accelerated subsequent to the
Last Payment Date, the amount equal to the outstanding principal amount of such

 

2

 

Series
G-2 Equipment Note plus accrued and unpaid interest thereon at the Stated
Interest Rate for the Class G-2 Certificates from the immediately preceding
Regular Distribution Date to such Special Distribution Date; provided, however,
if MBIA shall have duly given a Policy Provider Election (as defined below)
with respect to such Series G-2 Equipment Note at the end of such twenty-one
(21) month period and at least five (5) days prior to such Special Distribution
Date, the Deficiency Amount shall be an amount equal to (A) with respect to
such Special Distribution Date, the scheduled principal and interest payable
but not paid on such Series G-2 Equipment Note (without regard to the
acceleration thereof) during such twenty-one (21) month period (after giving
effect to the application of any drawing paid under the Class G-2 Primary
Liquidity Facility and any withdrawal from the Class G-2 Primary Cash
Collateral Account and the Class G-2 Above-Cap Account attributable to such
interest on such Series G-2 Equipment Note) and (B) thereafter, on each Regular
Distribution Date following such Special Distribution Date as to which a Policy
Provider Election has been given in respect of such Series G-2 Equipment Note,
and prior to the establishment of an Election Distribution Date or a Special Distribution
Date pursuant to the immediately succeeding clause (iv) with respect to such
Series G-2 Equipment Note, an amount equal to the scheduled principal (without
regard to the acceleration thereof) and interest payable on such Series G-2
Equipment Note on the related payment date;

 

(iv)             following the giving of any
Policy Provider Election, with respect to any Business Day elected by MBIA upon
twenty (20) days prior notice (which shall be a Special Distribution Date) and
upon request by MBIA to the Subordination Agent to make a drawing under this
Policy, an amount equal to the then outstanding principal balance of the Series
G-2 Equipment Note as to which the Policy Provider Election was given (less any
drawings previously paid by MBIA in respect of principal on such Series G-2
Equipment Note) and accrued and unpaid interest thereon at the Stated Interest
Rate for the Class G-2 Certificates from the immediately preceding Regular
Distribution Date to such Special Distribution Date;

 

(v)                with respect to any Special
Distribution Date which is an Election Distribution Date, an amount equal to
the then outstanding principal balance of the Series G-2 Equipment Note as to
which such Election Distribution Date relates (less any drawing previously paid
by MBIA in respect of principal of such Series G-2 Equipment Note) and accrued
and unpaid interest thereon at the Stated Interest Rate for the Class G-2
Certificates from the immediately preceding Regular Distribution Date to such
Election Distribution Date; and

 

(vi)             with respect to the Final
Legal Distribution Date, any shortfalls in amounts available to the
Subordination Agent after giving effect to the subordination provisions of the
Agreement and to the application of any amounts available to the Escrow Agent
in the Class G-2 Paying Agent Account in respect of accrued interest on the
Class G-2 Deposits, any drawing paid under the Class G-2 Primary Liquidity
Facility in respect of interest included in the Final Distribution and any
withdrawal from the Class G-2 Primary Cash Collateral Account and the Class G-2
Above-Cap Account in respect of interest included in the Final Distribution in
accordance with the Agreement, for the payment in full of the Final
Distribution (calculated as of such date but excluding any

 

3

 

accrued
and unpaid Additional Payments or other premium) on the Class G-2 Certificates
or, in the case that the full principal amount of the Class G-2 Deposit
relating to the Escrow Receipts is not used to purchase the Class G-2 Equipment
Notes, then with respect to the Final Withdrawal Date (as defined in the Escrow
and Paying Agent Agreement for the Class G-2 Trust), any shortfall in amounts
available to the Paying Agent for the payment in full of unpaid principal
amount of the Escrow Receipts.

 

For the avoidance of doubt, no Deficiency
Amount described in clauses (i)-(vi) above or payment to be made in respect of
an Avoided Payment described below shall constitute an accelerated or
acceleration payment.

 

If any amount paid or required to be paid in
respect of the Insured Obligation is voided (a “Preference
Event”) under any applicable bankruptcy, insolvency,
receivership or similar law in an Insolvency Proceeding, and, as a result of
such a Preference Event, the Beneficiary, the Class G-2 Trustee or any Class
G-2 Certificateholder is required to return such voided payment, or any portion
of such voided payment made or to be made in respect of the Class G-2
Certificates (including any disgorgement from the Class G-2 Certificateholders
resulting from any such Insolvency Proceeding, whether such disgorgement is
determined on a theory of preferential conveyance or otherwise) (an “Avoided
Payment”), MBIA will pay an amount equal to each such
Avoided Payment, irrevocably, absolutely and unconditionally and without the
assertion of any defenses to payment, including fraud in inducement or fact or
any other circumstances that would have the effect of discharging a surety in
law or in equity, upon receipt by MBIA from the Beneficiary, the Class G-2
Trustee or such Class G-2 Certificateholder of (x) a certified copy of a final
(non-appealable) order of a court exercising jurisdiction in such Insolvency
Proceeding to the effect that the Beneficiary, the Class G-2 Trustee or such
Class G-2 Certificateholder is required to return any such payment or portion
thereof because such payment was voided under applicable law, with respect to
which order the appeal period has expired without an appeal having been filed
(the “Final Order”), (y) an assignment, in
the form of Exhibit D hereto, irrevocably assigning to MBIA all rights
and claims of such Beneficiary, the Class G-2 Trustee or such Class G-2
Certificateholder relating to or arising under such Avoided Payment and (z) a
Notice of Avoided Payment in the form of Exhibit B hereto appropriately
completed and executed by the Beneficiary, the Class G-2 Trustee or such Class
G-2 Certificateholder.  Such payment
shall be disbursed to the receiver, conservator, debtor-in-possession or trustee
in bankruptcy named in the Final Order and not to the Beneficiary, the Class
G-2 Trustee or such Class G-2 Certificateholder directly unless such
Beneficiary, Class G-2 Trustee or Class G-2 Certificateholder has returned such
payment to such receiver, conservator, debtor-in-possession or trustee in
bankruptcy, in which case such payment shall be disbursed to such Class G-2
Certificateholder, the Class G-2 Trustee or the Beneficiary, as the case may
be.

 

Notwithstanding the foregoing, in no event
shall MBIA be obligated to make any payment in respect of any Avoided Payment,
which payment represents a payment of the principal amount of the Class G-2
Certificates, prior to the time MBIA would have been required to make a payment
in respect of such principal pursuant to sub-paragraphs (ii)-(vi) of the
definition of Deficiency Amount in this Policy; provided, further,
that no payment of principal under this Policy on any Distribution Date, other
than with respect to an Avoided Payment, shall exceed the Net Principal Policy
Amount (as defined below) for such Distribution Date; provided,

 

4

 

further, that no
payment, other than with respect to an Avoided Payment, of a Deficiency Amount
shall be in excess of the then outstanding Pool Balance of the Class G-2
Certificates and accrued and unpaid interest thereon at the Stated Interest
Rate on the Class G-2 Certificates.  This
Policy does not cover (i) any premium, prepayment penalty or other accelerated
payment, which at any time may become due on or with respect to any Class G-2
Certificate, (ii) shortfalls, if any, attributable to the liability of the
Subordination Agent, the Class G-2 Trust or the Class G-2 Trustee for
withholding taxes, if any (including interest and penalties in respect of any
such liability) or (iii) any failure of the Subordination Agent or the Class
G-2 Trustee to make any payment due to the Class G-2 Certificateholders or, if
applicable, the holders of the Escrow Receipts from funds received.

 

Capitalized terms used herein and not
otherwise defined herein shall have the meanings assigned to them in the
Intercreditor Agreement (the “Agreement”), dated as of
November 15, 2004, among
MBIA, as Policy Provider, Wilmington Trust Company, as Trustee of the Trusts
and Subordination Agent, Landesbank Baden-Württemberg, as Primary Liquidity
Provider, and Citibank, N.A., as Above-Cap Liquidity Provider, without regard
to any amendment or supplement thereto unless such amendment or supplement has
been executed, or otherwise approved in writing, by MBIA.

 

“Business Day” shall mean
any day other than a Saturday, a Sunday or other day on which insurance
companies in New York, New York or commercial banking institutions in the
cities in which the corporate trust office of the Subordination Agent, the
Fiscal Agent (as defined herein) or the office of MBIA specified in this Policy
are located are authorized or obligated by law or executive order to close.

 

“Class G-2 Certificateholder” shall mean
any person who is the registered owner or beneficial owner of any of the Class
G-2 Certificates and who, on the applicable Distribution Date, is entitled
under the terms of the Class G-2 Certificates to payment thereunder.

 

“Election Distribution Date” shall mean
any Special Distribution Date established by the Subordination Agent upon 20
days’ notice to the Class G-2 Trustee and the Policy Provider by reason of the
occurrence and continuation of a Policy Provider Default occurring after a
Policy Provider Election.

 

“Final Legal Distribution Date” shall mean
May 15, 2018.

 

“Insolvency Proceeding” means the
commencement, after the date hereof, of any bankruptcy, insolvency,
readjustment of debt, reorganization, marshalling of assets and liabilities or
similar proceedings by or against JetBlue Airways Corporation or any Liquidity
Provider and the commencement, after the date hereof, of any proceedings by
JetBlue Airways Corporation or any Liquidity Provider, for the winding up or
liquidation of its affairs or the consent, after the date hereof, to the
appointment of a trustee, conservator, receiver, or liquidator in any
bankruptcy, insolvency, readjustment of debt, reorganization, marshalling of
assets and liabilities or similar proceedings of or relating to JetBlue Airways
Corporation or any Liquidity Provider.

 

“Insurance Agreement” shall mean
the Insurance and Indemnity Agreement (as may be amended, modified or
supplemented from time to time), dated as November 15, 2004, by

 

5

 

and among MBIA, JetBlue
Airways Corporation, the Class G-1 Trustee, the Class G-2 Trustee and the
Subordination Agent.

 

“Insured Amounts” shall mean,
with respect to any Distribution Date, the Deficiency Amount for such
Distribution Date.

 

“Net Principal Policy Amount” shall mean
the Pool Balance of the Class G-2 Certificates as of the Closing Date minus
all amounts previously drawn on this Policy with respect to principal.

 

“Nonpayment” shall mean,
with respect to any Distribution Date, a Deficiency Amount owing to the
Subordination Agent for distribution to the Class G-2 Certificateholders or, if
applicable, the holders of the Escrow Receipts in respect of such Distribution
Date.

 

“Notice of Avoided Payment” shall mean
the notice, substantially in the form of Exhibit B hereto, delivered
pursuant to this Policy and sent to the contact person at the address and/or
fax number set forth in this Policy, and specifying the Avoidance Payment which
shall be due and owing on the applicable Distribution Date.

 

“Notice of Nonpayment” shall mean
the notice, substantially in the form of Exhibit A hereto, delivered
pursuant to this Policy and sent to the contact person at the address and/or
fax numbers set forth in this Policy specifying the Insured Amount which shall
be due and owing to the Class G-2 Trustee (or the Paying Agent) for
distribution to the Class G-2 Certificateholders or, if applicable, the holders
of the Escrow Receipts on the applicable Distribution Date.

 

“Policy Provider Election” shall mean a
notice given by MBIA when no Policy Provider Default shall have occurred and be
continuing, stating that MBIA elects to make payments of Deficiency Amounts as
defined under the proviso to clause (iii) of the definition of Deficiency
Amount in respect of any Series G-2 Equipment Note in lieu of applying clause
(iii) (without the proviso) of the definition of Deficiency Amount, which
notice shall be given to the Subordination Agent not less than five (5) days
prior to the Special Distribution Date established for payment of a Deficiency
Amount under clause (iii) of the definition thereof.

 

“Trust Agreement” shall mean
the Pass Through Trust Agreement, Series 2004-2G-2, dated as of November 15, 2004, by and among JetBlue Airways
Corporation, and Wilmington Trust Company, as Trustee, pursuant to which the
Class G-2 Certificates have been issued.

 

Payment of amounts hereunder shall be made in
immediately available funds (x) with respect to Deficiency Amounts no later
than 3:00 p.m., New York City time, on the later of (a) the relevant
Distribution Date and (b) the Business Day of presentation to U.S. Bank Trust
National Association, as fiscal agent for MBIA or any successor fiscal agent
appointed by MBIA (the “Fiscal Agent”), of a Notice of
Nonpayment, appropriately completed and executed by the Beneficiary (if such
Notice of Nonpayment is received by 1:00 p.m. on such day), and (y) with
respect to Avoided Payments, prior to 3:00 p.m. New York City time, on the
third Business Day following MBIA’s receipt of the documents required under
clauses (x) through (z) of the third paragraph of this Policy.  Any such documents received by MBIA after
1:00 p.m. New York

 

6

 

City time on any Business
Day or on any day that is not a Business Day shall be deemed to have been
received by MBIA prior to 1:00 p.m. on the next succeeding Business Day.  All payments made by MBIA hereunder in
respect of Avoided Payments will be made with MBIA’s own funds.  A Notice of Nonpayment or Notice of Avoided
Payment under this Policy may be presented to the Fiscal Agent on any Business
Day by (a) delivery of the original Notice of Nonpayment or Notice of Avoided
Payment to the Fiscal Agent at its address set forth below, or (b) facsimile
transmission of the original Notice of Nonpayment or Notice of Avoided Payment
to the Fiscal Agent at its facsimile number set forth below.  If presentation is made by facsimile
transmission, the Beneficiary shall (i) simultaneously confirm transmission by
telephone to the Fiscal Agent at its telephone number set forth below, and (ii)
as soon as reasonably practicable, deliver the original Notice of Nonpayment or
Notice of Avoided Payment to the Fiscal Agent at its address set forth
below.  Each Notice of Nonpayment or
Notice of Avoided Payment shall be delivered by facsimile and mail to MBIA
simultaneously with its delivery to the Fiscal Agent.

 

If any Notice of Nonpayment or Notice of
Avoided Payment received by the Fiscal Agent is not in proper form or is
otherwise insufficient for the purpose of making a claim hereunder, it shall be
deemed not to have been received by the Fiscal Agent, and MBIA or the Fiscal
Agent, as the case may be, shall promptly so advise the Beneficiary, and the
Beneficiary may submit an amended Notice of Nonpayment or Notice of Avoided
Payment, as the case may be.

 

Payments due hereunder unless otherwise
stated herein will be disbursed by the Fiscal Agent to the Subordination Agent
for the benefit of the Class G-2 Certificateholders or, if applicable, the
holders of the Escrow Receipts by wire transfer of immediately available funds
in the amount of such payment.  Other
than amounts payable in respect of Avoided Payments, MBIA’s obligations under
this Policy shall be discharged to the extent funds to be applied to pay the
Insured Obligations under and in accordance with the Agreement are received by
the Subordination Agent (including funds disbursed by MBIA as provided in this
Policy and received by the Subordination Agent) or the Paying Agent in
accordance with the Escrow and Paying Agent Agreement for the Class G-2 Trust
whether or not such funds are properly applied by the Subordination Agent, the
Paying Agent or the Class G-2 Trustee. 
MBIA’s obligations to make payments in respect of any Avoided Payments
shall be discharged to the extent such payments are made by MBIA hereunder and
are received by the Subordination Agent, the Class G-2 Trustee, the applicable
Class G-2 Certificateholder or the receiver, conservator, debtor-in-possession
or trustee in bankruptcy as applicable, whether or not such payments are
properly applied by the Subordination Agent or the Class G-2 Trustee.

 

The Fiscal Agent is the agent of MBIA only,
and the Fiscal Agent shall in no event be liable to Class G-2
Certificateholders for any acts of the Fiscal Agent or any failure of MBIA to
deposit or cause to be deposited sufficient funds to make payments due under
this Policy.

 

Any notice hereunder delivered to the Fiscal
Agent of MBIA may be made at the address listed below for the Fiscal Agent of
MBIA or such other address as MBIA shall specify in writing to the
Subordination Agent.

 

7

 

The notice address of the Fiscal Agent is 100
Wall Street, Suite 1600, New York, New York 10005, Attention: Corporate Trust
Services, Facsimile: (212) 361-6159, Telephone: (212) 361-6153.

 

All notices, presentations, transmissions,
deliveries and communications made by the Beneficiary to MBIA with respect to
this Policy shall specifically refer to the number of this Policy and shall be
made to MBIA at:

 

MBIA Insurance Corporation

113 King Street

Armonk, NY  10504

Attention:                 Insured
Portfolio Management,

Structured Finance

Telephone:            (914) 273-4545

Facsimile:                    (914) 765-3810

 

or such other address, telephone number or
facsimile number as MBIA may designate to the Beneficiary in writing from time
to time.  Each such notice, presentation,
transmission, delivery and communication shall be effective only upon actual
receipt by MBIA.

 

To the extent and in the manner specified in
the Agreement or the Escrow and Paying Agent Agreement for the Class G-2 Trust,
MBIA shall be subrogated to the rights of each Class G-2 Certificateholder to
receive payments under the Class G-2 Certificates and the Escrow Receipts to
the extent of any payment made by it hereunder.

 

This Policy is neither transferable nor
assignable, in whole or in part, except to a successor Subordination Agent duly
appointed and qualified under the Agreement. 
Such transfer and assignment shall be effective upon receipt by MBIA of
a copy of the instrument effecting such transfer and assignment signed by the
transferor and by the transferee, and a certificate, properly completed and
signed by the transferor and the transferee, in the form of Exhibit C
hereto (which shall be conclusive evidence of such transfer and assignment),
and, in such case, the transferee instead of the transferor shall, without the
necessity of further action, be entitled to all the benefits of and rights
under this Policy in the transferor’s place, provided  that, in
such case, the Notice of Nonpayment presented hereunder shall be a certificate
of the transferee and shall be signed by one who states therein that he is a
duly authorized officer of the transferee.

 

There shall be no acceleration payment due
under this Policy unless such acceleration is at the sole option of MBIA.

 

This Policy shall terminate and the
obligations of MBIA hereunder shall be discharged on the day (the “Termination
Date”) which is one year and one day following the
Distribution Date upon which the Final Distribution on the Class G-2
Certificates is made.  The foregoing
notwithstanding, if an Insolvency Proceeding is existing during the one year
and one day period set forth above, then this Policy and MBIA’s obligations hereunder
shall terminate on the later of (i) the date of the conclusion or dismissal of
such Insolvency Proceeding without continuing jurisdiction by the court in such
Insolvency Proceeding, and (ii) the date on which

 

8

 

MBIA has made all payments
required to be made under the terms of this Policy in respect of Avoided
Payments.

 

This Policy is not covered by the
property/casualty insurance fund specified in Article Seventy-Six of the
New York State insurance law.

 

This Policy sets forth in full the
undertaking of MBIA, and, except as expressly provided in the Insurance
Agreement and the Agreement, shall not be modified, altered or affected by any
other agreement or instrument, including any modification or amendment to any
other agreement or instrument, or by the merger, consolidation or dissolution
of JetBlue Airways Corporation or any other Person and may not be canceled or
revoked by MBIA prior to the time it is terminated in accordance with the
express terms hereof.  The Premium on
this Policy is not refundable for any reason.

 

This Policy shall be returned to MBIA upon
termination.

 

THIS POLICY SHALL BE CONSTRUED,
AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE
DETERMINED, IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT
REGARD TO CONFLICT OF LAWS PRINCIPLES OR THE APPLICATION OF THE LAWS OF ANY
OTHER JURISDICTION.

 

9

 

IN WITNESS WHEREOF, MBIA has caused this
Policy to be duly executed on the date first written above.

 

	
   

  	
  MBIA
  INSURANCE CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Neil G.
  Budnick

  	
   

  
	
   

  	
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Adam M. Carta

  	
   

  
	
   

  	
  Assistant
  Secretary

  

 

 

Exhibit A to Policy Number 45256

 

NOTICE OF NONPAYMENT AND DEMAND

FOR PAYMENT OF INSURED AMOUNTS

 

Date:                    [                 ]

 

MBIA Insurance Corporation

113 King Street

Armonk, New York 10504

Attention:                 Insured
Portfolio Management,

Structured Finance

 

U.S. Bank Trust National Association

100 Wall Street, Suite 1600

New York, New York 10005

Attention: Corporate Trust Services

 

Reference is made to Policy No. 45256  , dated November 15, 2004 (the “Policy”), issued by
MBIA Insurance Corporation (“MBIA”) with respect
to the JetBlue Airways Pass Through Certificates, Series 2004-2G-2.  Terms capitalized herein and not otherwise
defined shall have the meanings ascribed to such terms in or pursuant to the
Policy unless the context otherwise requires.

 

The Subordination Agent hereby certifies as
follows:

 

1.                                       The
Subordination Agent is the trustee for the Class G-2 Trust under the Class G-2
Trust Agreement.

 

2.                                       The relevant
Distribution Date is                   .  Such Distribution Date is a [Regular
Distribution Date, a Special Distribution Date, an Election Distribution Date
or the Final Legal Distribution Date].

 

[3.                                   Payment of accrued and
unpaid interest on the Class G-2 Certificates and, without duplication, accrued
and unpaid interest on any Deposit relating to the Escrow Receipts, in each
case at the Stated Interest Rate on the outstanding Pool Balance of the Class
G-2 Certificates accrued to the Distribution Date which is a Regular
Distribution Date as determined pursuant to paragraph (i) of the definition of “Deficiency
Amount” in the Policy is an amount equal to $                       .]

 

[3.                                   The amount determined for
payment to the Class G-2 Certificateholders pursuant to paragraph (ii) of the
definition of “Deficiency Amount” in the Policy on the Distribution Date which
is a Special Distribution Date in respect of a reduction in the outstanding
Pool Balance of such Class G-2 Certificates and accrued and unpaid interest on
the amount of such reduction at the Stated Interest Rate for the Class G-2
Certificates is $                       .]

 

A-1

 

[3.                                   The Subordination Agent has
not received a timely Policy Provider Election pursuant to the Policy and the
amount determined for payment to the Class G-2 Certificateholders pursuant to
paragraph (iii) of the definition of “Deficiency Amount” in the Policy on the
Distribution Date which is a Special Distribution Date in respect of the
outstanding principal amount of the relevant Series G-2 Equipment Note(s) and
accrued and unpaid interest accrued thereon at the Stated Interest Rate for the
Class G-2 Certificates is $                .]

 

[3.                                   The Subordination Agent has
received a timely Policy Provider Election pursuant to the Policy and the
amount determined for payment to the Class G-2 Certificateholders pursuant to
the provision in paragraph (iii)(A) of the definition of “Deficiency Amount” in
the Policy on the Distribution Date which is a Special Distribution Date in
respect of scheduled principal (without regard to acceleration thereof) and
interest at the Stated Interest Rate for the Class G-2 Certificates payable but
not paid on the relevant Series G-2 Equipment Note during the twenty-one (21)
month period referred to in such paragraph (iii) is $              .]

 

[3.                                   The Subordination Agent has
received a timely Policy Provider Election pursuant to the Policy, no Election
Distribution Date has been established pursuant to the Policy or Special
Distribution Date established pursuant to clause (iv) of the definition of “Deficiency
Amount” and the amount determined for payment to the Class G-2 Certificateholders
pursuant to paragraph (iii)(B) of the definition of “Deficiency Amount” in the
Policy on the Distribution Date which is a Regular Distribution Date in respect
of scheduled principal (without regard to acceleration thereof) and interest
payable at the Stated Interest Rate for the Class G-2 Certificates due on the
Regular Distribution Date on the relevant Series G-2 Equipment Note is $                 .]

 

[3.                                   The Subordination Agent has
received a timely Policy Provider Election pursuant to the Policy, the Special
Distribution Date related hereto is a Business Day elected by MBIA upon 20 days
prior notice and the amount determined for payment to the Class G-2
Certificateholders pursuant to paragraph (iv) of the definition of “Deficiency
Amount” in the Policy in respect of outstanding principal on such Series G-2
Equipment Note (less any drawings previously paid by MBIA in respect of
principal on such Series G-2 Equipment Note) and accrued and unpaid interest
thereon at the Stated Interest Rate for the Class G-2 Certificates from the
immediately preceding Regular Distribution Date to such Special Distribution
Date is $                 .]

 

[3.                                   The amount determined for
payment to the Class G-2 Certificateholders pursuant to paragraph (v) of the
definition of “Deficiency Amount” in the Policy on the Distribution Date which
is an Election Distribution Date in respect of the outstanding principal
balance of the relevant Series G-2 Equipment Note (less any drawings previously
paid by MBIA in respect of principal on such Series G-2 Equipment Note) and
accrued and unpaid interest thereon at the Stated Interest Rate for the Class
G-2 Certificates from the immediately preceding Regular Distribution Date to
such Election Distribution Date is $                 .]

 

[3.                                   The amount determined for
payment to the Class G-2 Certificateholders pursuant to paragraph (vi) of the
definition of “Deficiency Amount” in the Policy on the Distribution Date which
is the Final Legal Distribution Date in respect of payment in full of the

 

A-2

 

Final Distribution (other
than any Additional Payments or other premium) on the Class G-2 Certificates is
$                   .]

 

[3.                                   The amount determined for
payment to the holders of the Escrow Receipts pursuant to paragraph (vi) of the
definition of “Deficiency Amount” in the Policy on the Final Withdrawal Date is
$                       .]

 

4.                                       The sum of $                              
is the Insured Amount that is due.

 

5.                                       The Subordination Agent has
not heretofore made a demand for the Insured Amount in respect of such
Distribution Date.

 

6.                                       The Subordination Agent
hereby requests payment of such Insured Amount that is due for payment be made
by MBIA under the Policy and directs that payment under the Policy be made to
the following account by bank wire transfer of federal or other immediately
available funds in accordance with the terms of the Policy to:

 

[       ]

ABA #:  [           ]

Acct #:  [          ]

FBO:  [           ]

[Class G-2 Policy Account number]

 

7.                                       The Subordination Agent
hereby agrees that, following receipt of the Insured Amount from MBIA, it shall
(a) cause such funds to be deposited in the Class G-2 Policy Account and not
permit such funds to be held in any other account, (b) either (i) cause
such funds to be paid to the Class G-2 Trustee for distribution to the Class
G-2 Certificateholders in reduction of the Pool Balance of, or interest on, the
Class G-2 Certificates (as applicable) and not apply such funds for any other
purpose or (ii) cause such funds to be paid to the Class G-2 Paying Agent for
distribution to the holders of the Escrow Receipts in payment of accrued and
unpaid interest on any Deposit related to the Escrow Receipts, or principal of
the Escrow Receipts in each case in accordance with the terms of the Agreement
and (c) maintain an accurate record of such payments with respect to the Class
G-2 Certificates and Escrow Receipts the corresponding claim on the Policy and
proceeds thereof.

 

	
   

  	
  WILMINGTON
  TRUST COMPANY, as

  Subordination Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

A-3

 

Exhibit B to Policy Number 45256

 

NOTICE OF AVOIDED PAYMENT AND
DEMAND

FOR PAYMENT OF AVOIDED PAYMENTS

 

Date:                    [                       ]

 

MBIA Insurance Corporation

113 King Street

Armonk, New York 10504

Attention:                 Insured
Portfolio Management,

Structured Finance

 

U.S. Bank Trust National Association

100 Wall Street, Suite 1600

New York, New York 10005

Attention: Corporate Trust Services

 

Reference is made to Policy No. 45256  , dated November 15, 2004 (the “Policy”), issued by
MBIA Insurance Corporation (“MBIA”) with respect
to the JetBlue Airways Pass Through Certificates, Series 2004-2G-2.  Terms capitalized herein and not otherwise
defined shall have the meanings ascribed to such terms in or pursuant to the
Policy unless the context otherwise requires.

 

The Subordination Agent hereby certifies as
follows:

 

1.                                       The
Subordination Agent is the trustee for the Class G-2 Trustee under the Trust
Agreement.

 

2.                                       The
Subordination Agent has established                            
as a Special Distribution Date pursuant to the Agreement for amounts claimed
hereunder.

 

3.                                       A Final Order
providing for the recovery of an Avoided Payment of $                             
has been issued.

 

4.                                       $                           
of the amount set forth in item No. 3 above has been paid by the [Class G-2
Certificateholder/Class G-2 Trustee/Subordination Agent] and $                         
is required to be paid to the receiver, conservator, debtor-in-possession or
trustee in bankruptcy named in the Final Order.

 

5.                                       The [Class G-2
Certificateholder/Class G-2 Trustee/Subordination Agent] has not heretofore
made a demand for such Avoided Payment.

 

6.                                       The [Class G-2
Certificateholder/Class G-2 Trustee/Subordination Agent] has delivered to MBIA
or has attached hereto all documents required by the Policy to be delivered in
connection with such Avoided Payment.

 

B-1

 

7.                                       The [Class G-2
Certificateholder/Class G-2 Trustee/Subordination Agent] hereby requests that
payment of $                       
of such Avoided Payment be made to the receiver, conservator,
debtor-in-possession or trustee in bankruptcy named in the Final Order and $                       
of such Avoided Payment be paid to the [Class G-2 Certificateholder] [Class G-2
Trustee] [Subordination Agent [for payment over to the Class G-2 Trustee] for
distribution to the Class G-2 Certificateholder], in each case, by MBIA under
the Policy and directs that payment under the Policy be made to the following
account by bank wire transfer of federal or other immediately available funds
in accordance with the terms of the Policy to:

 

For the portion to be paid to the receiver, conservator,
debtor-in-possession or trustee, to                             :

 

ABA
#:  [           ]

Acct #:  [          ]

FBO:  [          ]

 

[relevant account number]

 

For the portion to be paid to the
Subordination Agent:

 

ABA
#:  [           ]

Acct #:  [           ]

FBO:  [           ]

 

[Class G-2 Policy Account Number]

 

	
   

  	
  [Name
  of Subordination Agent]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
  (Officer)

  	
   

  

 

B-2

 

Exhibit C to Policy Number 45256

 

MBIA Insurance Corporation

113 King Street

Armonk, New York 10504

Attention:                 Insured
Portfolio Management, Structured Finance

 

Dear Sirs:

 

Reference is made to that certain Policy,
Number 45256  , dated November 15, 2004 (the “Policy”), which has
been issued by MBIA Insurance Corporation in favor of the Subordination Agent
with respect to the JetBlue Airways Pass Through Certificates, Series
2004-2G-2.

 

The undersigned [Name of Transferor] has
transferred and assigned (and hereby confirms to you said transfer and
assignment) all of its rights in and under said Policy to [Name of Transferee]
and confirms that [Name of Transferor] no longer has any rights under or
interest in said Policy.

 

Transferor and Transferee have indicated on
the face of said Policy that it has been transferred and assigned to
Transferee.

 

Transferee hereby certifies that it is a duly
authorized transferee under the terms of said Policy and is accordingly
entitled, upon presentation of the document(s) called for therein, to receive
payment thereunder.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  [Name of Transferor]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  [Name and Title of Authorized Officer of

  Transferor]

  
				

 

C-1

 

Exhibit D to Policy Number 45256

 

Form of Assignment

 

Reference is made to that certain Policy No.
45256  , dated November 15,
2004 (the “Policy”), issued by MBIA Insurance
Corporation (“MBIA”) relating to the JetBlue
Airways Pass Through Certificates, Series 2004-2G-2.  Unless otherwise defined herein, capitalized
terms used in this Assignment shall have the meanings assigned thereto in the
Policy as incorporated by reference therein. 
In connection with the Avoided Payment of [$              ]
paid by the undersigned (the “[Class G-2 Certificateholder/Class G-2
Trustee/Beneficiary]”) on [         ]
and the payment by MBIA in respect of such Avoided Payment pursuant to the
Policy, the [Class G-2 Certificateholder/Class G-2 Trustee/Beneficiary] hereby
irrevocably and unconditionally, without recourse, representation or warranty
(except as provided below), sells, assigns, transfers, conveys and delivers to
MBIA all of such [Class G-2 Certificateholder’s/Class G-2 Trustee’s/Beneficiary’s]
rights, title and interest in and to any rights or claims, whether accrued,
contingent or otherwise, which the [Class G-2 Certificateholder/Class G-2
Trustee/Beneficiary] now has or may hereafter acquire, against any person
relating to, arising out of or in connection with such Avoided Payment.  The [Class G-2 Certificateholder/Class G-2 Trustee/Beneficiary]
represents and warrants that such claims and rights are free and clear of any
lien or encumbrance created or incurred by such [Class G-2
Certificateholder/Class G-2 Trustee/Beneficiary].(1)

 

	
   

  	
  [Class
  G-2 Certificateholder/Class G-2

  Trustee/Beneficiary]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  

 

 

(1)                                  In
the event that the terms of this form of assignment are reasonably determined
to be insufficient solely as a result of a change of law or applicable rules
after the date of the Policy to fully vest all of the [Class G-1 Certificateholder’s/Class
G-1 Trustee’s/Beneficiary’s] right, title and interest in such rights and
claims, the [Class G-1 Certificateholder/Class G-1 Trustee/Beneficiary] and
MBIA shall agree on such other form as is reasonably necessary to effect such
assignment, which assignment shall be without recourse, representation or
warranty except as provided above.

 

D-1Exhibit
4.24

 

EXECUTION COPY

 

INTERCREDITOR AGREEMENT

(2004-2)

 

dated as of November 15,
2004

 

among

 

WILMINGTON
TRUST COMPANY,

not in its
individual capacity

but solely as
Trustee under the

JetBlue
Airways Pass Through Trust 2004-2G-1,

JetBlue
Airways Pass Through Trust 2004-2G-2

and

JetBlue
Airways Pass Through Trust 2004-2C

 

LANDESBANK
BADEN-WÜRTTEMBERG,

as
Class G-1 Primary Liquidity Provider, Class G-2 Primary Liquidity
Provider and as Class C

Primary Liquidity Provider

 

CITIBANK,
N.A.,

as Class G-1
Above-Cap Liquidity Provider, Class G-2 Above-Cap Liquidity Provider and as

Class C Above-Cap Liquidity Provider

 

MBIA
INSURANCE CORPORATION,

as Policy
Provider

 

and

 

WILMINGTON
TRUST COMPANY,

not in its
individual capacity except

as expressly
set forth herein but

solely as
Subordination Agent and Trustee

 

 

TABLE OF
CONTENTS

 

	
  ARTICLE I

  	
  DEFINITIONS

  	
   

  
	
  Section 1.1.

  	
  Definitions

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
  TRUST ACCOUNTS; CONTROLLING PARTY

  	
   

  
	
  Section 2.1.

  	
  Agreement to Terms of Subordination;
  Payments from Monies Received Only

  	
   

  
	
  Section 2.2.

  	
  Trust Accounts

  	
   

  
	
  Section 2.3.

  	
  Deposits to the Collection Account and
  Special Payments Account

  	
   

  
	
  Section 2.4.

  	
  Distributions of Special Payments

  	
   

  
	
  Section 2.5.

  	
  Designated Representatives

  	
   

  
	
  Section 2.6.

  	
  Controlling Party

  	
   

  
	
  Section 2.7.

  	
  Buy Out Right

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
  RECEIPT, DISTRIBUTION AND APPLICATION OF
  AMOUNTS RECEIVED

  	
   

  
	
  Section 3.1.

  	
  Written Notice of Distribution

  	
   

  
	
  Section 3.2.

  	
  Distribution of Amounts on Deposit in the
  Collection Account

  	
   

  
	
  Section 3.3.

  	
  [Intentionally Omitted]

  	
   

  
	
  Section 3.4.

  	
  Other Payments

  	
   

  
	
  Section 3.5.

  	
  Payments to the Trustees, Primary Liquidity
  Providers and Policy Provider

  	
   

  
	
  Section 3.6.

  	
  Liquidity Facilities

  	
   

  
	
  Section 3.7.

  	
  The Policies

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
  EXERCISE OF REMEDIES

  	
   

  
	
  Section 4.1.

  	
  Directions from the Controlling Party

  	
   

  
	
  Section 4.2.

  	
  Remedies Cumulative

  	
   

  
	
  Section 4.3.

  	
  Discontinuance of Proceedings

  	
   

  
	
  Section 4.4.

  	
  Right of Certificateholders to Receive
  Payments Not to Be Impaired

  	
   

  
	
  Section 4.5.

  	
  Undertaking for Costs

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
  DUTIES OF THE SUBORDINATION AGENT;
  AGREEMENTS OF TRUSTEES, ETC

  	
   

  
	
  Section 5.1.

  	
  Notice of Indenture Default, Indenture
  Event of Default or Triggering Event

  	
   

  
	
  Section 5.2.

  	
  Indemnification

  	
   

  
	
  Section 5.3.

  	
  No Duties Except as Specified in
  Intercreditor Agreement

  	
   

  
	
  Section 5.4.

  	
  Notice from the Liquidity Providers and
  Trustees

  	
   

  
	
  Section 5.5.

  	
  Agreements Relating to the Above-Cap
  Liquidity Facility

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
  THE SUBORDINATION AGENT

  	
   

  
	
  Section 6.1.

  	
  Authorization; Acceptance of Trusts and
  Duties

  	
   

  
				

 

i

 

	
  Section 6.2.

  	
  Absence of Duties

  	
   

  
	
  Section 6.3.

  	
  No Representations or Warranties as to
  Documents

  	
   

  
	
  Section 6.4.

  	
  No Segregation of Monies; No Interest

  	
   

  
	
  Section 6.5.

  	
  Reliance; Agents; Advice of Counsel

  	
   

  
	
  Section 6.6.

  	
  Capacity in Which Acting

  	
   

  
	
  Section 6.7.

  	
  Compensation

  	
   

  
	
  Section 6.8.

  	
  [Intentionally Omitted.]

  	
   

  
	
  Section 6.9.

  	
  Subordination Agent Required; Eligibility

  	
   

  
	
  Section 6.10.

  	
  Money to Be Held in Trust

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
  INDEMNIFICATION OF SUBORDINATION AGENT

  	
   

  
	
  Section 7.1.

  	
  Scope of Indemnification

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
  SUCCESSOR SUBORDINATION AGENT

  	
   

  
	
  Section 8.1.

  	
  Replacement of Subordination Agent;
  Appointment of Successor

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX

  	
  SUPPLEMENTS AND AMENDMENTS

  	
   

  
	
  Section 9.1.

  	
  Amendments, Waivers, Etc

  	
   

  
	
  Section 9.2.

  	
  Subordination Agent Protected

  	
   

  
	
  Section 9.3.

  	
  Effect of Supplemental Agreements

  	
   

  
	
  Section 9.4.

  	
  Notice and Information to Rating Agencies

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE X

  	
  MISCELLANEOUS

  	
   

  
	
  Section 10.1.

  	
  Termination of Intercreditor Agreement

  	
   

  
	
  Section 10.2.

  	
  Intercreditor Agreement for Benefit of
  Trustees, Liquidity Providers, the Policy Provider and Subordination Agent

  	
   

  
	
  Section 10.3.

  	
  Notices

  	
   

  
	
  Section 10.4.

  	
  Severability

  	
   

  
	
  Section 10.5.

  	
  No Oral Modifications or Continuing Waivers

  	
   

  
	
  Section 10.6.

  	
  Successors and Assigns

  	
   

  
	
  Section 10.7.

  	
  Headings

  	
   

  
	
  Section 10.8.

  	
  Counterpart Form

  	
   

  
	
  Section 10.9.

  	
  Subordination

  	
   

  
	
  Section 10.10.

  	
  Governing Law

  	
   

  
	
  Section 10.11.

  	
  Submission to Jurisdiction; Waiver of Jury
  Trial; Waiver of Immunity

  	
   

  
	
   

  	
   

  	
   

  
	
  Schedule 2.02(b)

  	
  —

  	
  Specified
  Investments Instructions

  	
   

  
	
  Exhibit A

  	
  —

  	
  Trustee Reports

  	
   

  
					

 

ii

 

INTERCREDITOR AGREEMENT

 

INTERCREDITOR AGREEMENT
dated as of November 15, 2004, among WILMINGTON
TRUST COMPANY, a Delaware banking corporation (“WTC”), not in its individual capacity but
solely as Trustee of each Trust (each as defined below); LANDESBANK BADEN WÜRTTEMBERG, a bank
established in Germany as a public law institution with legal capacity
(Rechtfähige Anstalt des Öffentlichen Rechts) (“LBBW”), as Class G-1 Primary Liquidity Provider,
Class G-2 Primary Liquidity Provider and Class C Primary Liquidity Provider;
CITIBANK, N.A., a national banking
association duly organized and existing under the laws of the United States of
America (“Citibank”), as Class G-1
Above-Cap Liquidity Provider, Class G-2 Above-Cap Liquidity Provider and Class
C Above-Cap Liquidity Provider; MBIA
INSURANCE CORPORATION, a New York stock insurance company, as Policy
Provider; and WILMINGTON TRUST COMPANY,
not in its individual capacity except as expressly set forth herein, but solely
as Subordination Agent and trustee hereunder (in such capacity, together with
any successor appointed pursuant to Article VIII hereof, the “Subordination Agent”).

 

WHEREAS, all
capitalized terms used herein shall have the respective meanings referred to in
Article I hereof;

 

WHEREAS, pursuant
to each Indenture JetBlue will issue on a recourse basis three series of
Equipment Notes to finance or refinance the purchase of each Aircraft;

 

WHEREAS, pursuant
to the Financing Agreements, each Trust will acquire Equipment Notes having an
interest rate equal to the interest rate applicable to the Certificates to be
issued by such Trust;

 

WHEREAS, pursuant
to each Trust Agreement, the Trust created thereby proposes to issue a single
class of Certificates (a “Class”)
bearing the interest rate and having the final distribution date described in
such Trust Agreement on the terms and subject to the conditions set forth
therein;

 

WHEREAS, pursuant
to the Underwriting Agreement, the Underwriters propose to purchase the
Certificates issued by each Trust in the aggregate face amount set forth
opposite the name of such Trust on Schedule I thereto on the terms and
subject to the conditions set forth therein;

 

WHEREAS, the
Primary Liquidity Provider proposes to enter into three separate revolving
credit agreements and the Above-Cap Liquidity Provider proposes to enter into
three separate irrevocable interest rate cap agreements, in each case, with the
Subordination Agent, as agent for the Trustee of the Class G-1 Trust,
Class G-2 Trust and the Class C Trust, respectively, for the benefit
of the Certificateholders of each such Trust;

 

WHEREAS, the Policy
Provider proposes to enter into the Policy Provider Agreement providing for the
issuance by the Policy Provider of two separate Policies for the benefit of the
Class G-1 Certificateholders and Class G-2 Certificateholders; and

 

 

WHEREAS, it is a
condition precedent to the obligations of the Underwriters under the
Underwriting Agreement that the Subordination Agent, the Trustees, the
Liquidity Providers and the Policy Provider agree to the terms of subordination
set forth in this Agreement in respect of each Class of Certificates, and the
Subordination Agent, the Trustees, the Liquidity Providers and the Policy
Provider, by entering into this Agreement, hereby acknowledge and agree to such
terms of subordination and the other provisions of this Agreement.

 

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

 

ARTICLE I

DEFINITIONS

 

Section 1.1.                                Definitions.  For all purposes of this Agreement (and all
schedules or exhibits hereto), except as otherwise expressly provided or unless
the context otherwise requires:

 

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

 

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

 

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

 

(4)                                  the
term “including” shall mean “including without limitation”.

 

“Above-Cap
Account” means the Class G-1 Above-Cap Account, the Class G-2
Above-Cap Account or the Class C Above-Cap Account, as applicable.

 

“Above-Cap
Liquidity Facility” means the Class G-1 Above-Cap Liquidity
Facility, the Class G-2 Above-Cap Liquidity Facility or the Class C Above-Cap
Liquidity Facility, as applicable.

 

“Above-Cap
Liquidity Provider” means the Class G-1 Above-Cap Liquidity
Provider, the Class G-2 Above-Cap Liquidity Provider or the Class C Above-Cap
Liquidity Provider, as applicable.

 

“Above-Cap
Payment” has the meaning as specified in Section 3.6(a).

 

“Above-Cap
Reserve Account” means the Class G-1 Above-Cap Reserve Account,
the Class G-2 Above-Cap Reserve Account or the Class C Above-Cap Reserve
Account, as applicable.

 

2

 

“Above-Cap
Withdrawal” has the meaning specified in Section 3.6(a).

 

“Acceleration”
means, with respect to the amounts payable in respect of the Equipment Notes
issued under any Indenture, such amounts becoming immediately due and payable
by declaration or otherwise.  “Accelerate”,
“Accelerated” and “Accelerating” have meanings correlative to the foregoing.

 

“Accrued
Class G-1 Interest” means, with respect to any Distribution
Date, all amounts due and owing in respect of accrued and unpaid interest on
the Class G-1 Certificates at the Stated Interest Rate for the
Class G-1 Certificates on such Distribution Date.

 

“Accrued
Class G-2 Interest” means, with respect to any Distribution
Date, all amounts due and owing in respect of accrued and unpaid interest on
the Class G-2 Certificates at the Stated Interest Rate for the
Class G-2 Certificates on such Distribution Date.

 

“Actual
Disposition Event” means, in respect of any Equipment Note,
(i) the disposition of the Collateral (as defined in the Indenture
pursuant to which such Equipment Note was issued), (ii) the occurrence of
the mandatory redemption date for such Equipment Note following an Event of
Loss with respect to the Aircraft which secured such Equipment Note or
(iii) the sale of such Equipment Note.

 

“Additional
Payment” means any Break Amount (as such term is defined in the
applicable Indentures) and/or Prepayment Premium (as such term is defined in
the applicable Indentures) in respect of the Equipment Notes.

 

“Adjusted
Interest” means, as of any Current Distribution Date,
(I) any interest described in clause (II) of this definition accruing
prior to the immediately preceding Distribution Date which remains unpaid and
(II) interest at the Stated Interest Rate for the Class C Certificates
(A) for the number of days during the period commencing on, and including,
the immediately preceding Distribution Date (or, if the Current Distribution
Date is the first Distribution Date, the Closing Date) and ending on, but
excluding the Current Distribution Date, on the Preferred C Pool Balance on
such Current Distribution Date and (B) on the principal amount calculated
pursuant to clauses (i), (ii), (iii) and (iv) of the definition of
Preferred C Pool Balance for each Series C Equipment Note with respect to which
a disposition, distribution, sale or Deemed Disposition Event has occurred
since the immediately preceding Distribution Date, for each day during the
period, for each such Equipment Note, commencing on, and including, the
immediately preceding Distribution Date (or, if the Current Distribution Date
is the first Distribution Date, the Closing Date) and ending on, but excluding
the date of disposition, distribution, sale or Deemed Disposition Event with
respect to such Equipment Note, Aircraft or Collateral, as the case may be.

 

“Advance”,
with respect to any Primary Liquidity Facility, means any Advance as defined in
such Primary Liquidity Facility.

 

“Affiliate”
means, with respect to any Person, any other Person directly or indirectly
controlling, controlled by or under common control with such Person.  For the purposes of this definition, “control”,
when used with respect to any specified Person, means the power, directly or
indirectly, to direct or cause the direction of the management and policies of
such Person

 

3

 

whether through the
ownership of voting securities or by contract or otherwise; and the terms “controlling”
and “controlled” have meanings correlative to the foregoing.

 

“Aircraft”
means, with respect to each Indenture, the “Aircraft” referred to therein.

 

“Appraisal”
has the meaning assigned to such term in Section 4.1(a)(ii).

 

“Appraised Current
Market Value” of any Aircraft means the lower of the average and
the median of the three most recent Post-Default Appraisals of such Aircraft.

 

“Appraisers”
means Aircraft Information Services, Inc., AvSolutions, Inc., Morten Beyer and
Agnew, Inc., Aviation Specialists Group, Inc. and Airclaims Group Limited or,
so long as the Person entitled or required hereunder to select such Appraisers
acts reasonably, any other nationally recognized appraiser reasonably
acceptable to the Subordination Agent and the Controlling Party.

 

“Assignment and
Assumption Agreements” means each of the Assignment and
Assumption Agreements to be executed between a Trustee and trustee of the
relevant Successor Trust in accordance with the relevant Trust Agreement, as
the same may be amended, modified or supplemented from time to time.

 

“Available Amount”
means, with respect to any Primary Liquidity Facility on any drawing date, the “Maximum
Available Commitment” as defined in such Primary Liquidity Facility.

 

“Avoided Payment”
has the meaning assigned to such term in the Policy.

 

“Bankruptcy Code”
means the United States Bankruptcy Code, 11 U.S.C. Section 101 et seq.

 

“Break Amount”, with respect to any Equipment Note, has
the meaning assigned to such term in the Indenture related to such Equipment
Note.

 

“Business Day”
means any day (a) other than a Saturday or Sunday or a day (i) on
which commercial banks are required or authorized to close in New York, New
York, or, so long as any Certificate is outstanding, the city and state in the
United States in which any Trustee, the Subordination Agent or any Loan Trustee
maintains its Corporate Trust Office or receives and disburses funds and
(ii) for purposes of each Policy and the Policy Provider, on which the
fiscal agent under the Policy, at its office specified in such Policy, the
Policy Provider at its office specified in the Policy and insurance companies
in New York, New York are required or authorized by law or executive order to
close and (b) solely with respect to draws under any Primary Liquidity
Facility, which is also a “Business Day” as defined in such Primary Liquidity
Facility.

 

“Capped Interest
Rate” means (i) with respect to the Class G-1
Certificates, 7.375% per annum, (ii) with respect to the Class G-2
Certificates, 7.450% per annum, and (iii) with respect to the Class C
Certificates, 10.100% per annum.

 

4

 

“Capped
Three-Month LIBOR” means, at any time, 7% per annum.

 

“Cash Collateral
Account” means the Class G-1 Primary Cash Collateral Account,
the Class G-2 Primary Cash Collateral Account, the Class C Primary Cash
Collateral Account, the Class G-1 Above-Cap Reserve Account, the
Class G-2 Above-Cap Reserve Account or the Class C Above-Cap Reserve
Account, as applicable.

 

“Certificate”
means a Class G-1 Certificate, a Class G-2 Certificate or a
Class C Certificate, as applicable.

 

“Certificateholder”
means any holder of one or more Certificates.

 

“Class”
has the meaning assigned to such term in the preliminary statements to this
Agreement.

 

“Class C
Above-Cap Account” means an Eligible Deposit Account in the name
of the Subordination Agent maintained at an Eligible Institution, which shall
be the Subordination Agent if it shall so qualify, into which all amounts paid
under the Class C Above-Cap Liquidity Facility pursuant to Section 3.6(a)
shall be deposited.

 

“Class C
Above-Cap Liquidity Facility” means, initially, the ISDA Master
Agreement, dated as of November 15, 2004, between the Subordination Agent,
as agent and trustee for the Class C Trust, and the initial Class C Above-Cap
Liquidity Provider, together with the Schedule and Confirmation attached
thereto, relating to the Class C Certificates, and, from and after replacement
of such ISDA Master Agreement pursuant hereto, the Replacement Above-Cap
Liquidity Facility therefor, if any, in each case as amended, supplemented or
otherwise modified from time to time in accordance with its terms.

 

“Class C
Above-Cap Liquidity Provider” means Citibank or any Replacement
Above-Cap Liquidity Provider which has issued a Replacement Above-Cap Liquidity
Facility to replace the Class C Above-Cap Liquidity Facility pursuant to Section 3.6(c)(ii).

 

“Class C
Above-Cap Reserve Account” means an Eligible Deposit Account in
the name of the Subordination Agent maintained at an Eligible Institution,
which shall be the Subordination Agent if it shall so qualify, into which all
amounts paid under the Class C Above-Cap Liquidity Facility pursuant to Section 3.6(f)
shall be deposited.

 

“Class C
Certificateholder” means, at any time, any holder of one or more
Class C Certificates.

 

“Class C
Certificates” means the certificates issued by the Class C
Trust, substantially in the form of Exhibit A to the Class C Trust
Agreement, and authenticated by the Class C Trustee, representing
fractional undivided interests in the Class C Trust, and any certificates
issued in exchange therefor or replacement thereof pursuant to the terms of the
Class C Trust Agreement.

 

“Class C
Deposits” means the Deposits with respect to the Class C
Certificates.

 

5

 

“Class C
Paying Agent Account” means the Paying Agent Account as defined
in the Escrow and Paying Agent Agreement relating to the Class C
Certificates.

 

“Class C
Primary Cash Collateral Account” means an Eligible Deposit
Account in the name of the Subordination Agent maintained at an Eligible
Institution, which shall be the Subordination Agent if it shall so qualify,
into which all amounts drawn under the Class C Primary Liquidity Facility
pursuant to Section 3.6(c), 3.6(d), 3.6(i) or 3.6(k) shall be deposited.

 

“Class C
Primary Liquidity Facility” means, initially, the Revolving
Credit Agreement dated as of the date hereof, between the Subordination Agent,
as agent and trustee for the Class C Trustee, and the initial Class C
Primary Liquidity Provider, and, from and after the replacement of such
Agreement pursuant hereto, the Replacement Primary Liquidity Facility therefor,
if any, in each case as amended, supplemented or otherwise modified from time
to time in accordance with its terms.

 

“Class C
Primary Liquidity Provider” means LBBW together with any
Replacement Primary Liquidity Provider which has issued a Replacement Primary
Liquidity Facility to replace any Class C Primary Liquidity Facility
pursuant to Section 3.6(e).

 

“Class C
Trust” means (i) prior to the Transfer, the JetBlue Airways
Pass Through Trust 2004-2C-O created and administered pursuant to the
Class C Trust Agreement and (ii) after the Transfer, the JetBlue Airways
Pass Through Trust 2004-2C-S created and administered pursuant to the
Class C Trust Agreement.

 

“Class C
Trust Agreement” means (i) prior to the Transfer, the Pass
Through Trust Agreement, dated as of the date hereof, between JetBlue and the
Class C Trustee, governing the creation and administration of the JetBlue
Airways Pass Through Trust 2004-2C-O and the issuance of the Class C
Certificates, as the same may be amended, supplemented or otherwise modified
from time to time in accordance with its terms, and (ii) after the
Transfer, the Pass Through Trust Agreement entered into between JetBlue and the
Class C Trustee, governing the creation and administration of the JetBlue
Airways Pass Through Trust 2004-2C-S and the issuance of the Class C
Certificates, as the same may be amended, supplemented or otherwise modified
from time to time in accordance with its terms.

 

“Class C
Trustee” means WTC, not in its individual capacity except as
expressly set forth in the Class C Trust Agreement, but solely as trustee
under the Class C Trust Agreement, together with any successor trustee
appointed pursuant thereto.

 

“Class G-1
Above-Cap Account” means an Eligible Deposit Account in the name
of the Subordination Agent maintained at an Eligible Institution, which shall
be the Subordination Agent if it shall so qualify, into which all amounts paid
under the Class G-1 Above-Cap Liquidity Facility pursuant to Section 3.6(a)
shall be deposited.

 

“Class G-1
Above-Cap Liquidity Facility” means, initially, the ISDA Master
Agreement, dated as of November 15, 2004, between the Subordination Agent,
as agent and trustee for the Class G-1 Trust, and the initial Class G-1
Above-Cap Liquidity Provider, together with the Schedule and Confirmation
attached thereto, relating to the Class G-1 Certificates, and, from and after
replacement of such ISDA Master Agreement pursuant hereto, the Replacement

 

6

 

Above-Cap Liquidity
Facility therefor, if any, in each case as amended, supplemented or otherwise
modified from time to time in accordance with its terms.

 

“Class G-1
Above-Cap Liquidity Provider” means Citibank or any Replacement
Above-Cap Liquidity Provider which has issued a Replacement Above-Cap Liquidity
Facility to replace the Class G-1 Above-Cap Liquidity Facility pursuant to Section 3.6(c)(ii).

 

“Class G-1
Above-Cap Reserve Account” means an Eligible Deposit Account in
the name of the Subordination Agent maintained at an Eligible Institution,
which shall be the Subordination Agent if it shall so qualify, into which all
amounts paid under the Class G-1 Above-Cap Liquidity Facility pursuant to Section 3.6(f)
shall be deposited.

 

“Class G-1
Certificateholder” means, at any time, any holder of one or more
Class G-1 Certificates.

 

“Class G-1
Certificates” means the certificates issued by the
Class G-1 Trust, substantially in the form of Exhibit A to the
Class G-1 Trust Agreement, and authenticated by the Class G-1
Trustee, representing fractional undivided interests in the Class G-1
Trust, and any certificates issued in exchange therefor or replacement thereof
pursuant to the terms of the Class G-1 Trust Agreement.

 

“Class G-1
Deposits” means the Deposits with respect to the Class G-1
Certificates.

 

“Class G-1
Paying Agent Account” means the Paying Agent Account as defined
in the Escrow and Paying Agent Agreement relating to the Class G-1
Certificates.

 

“Class G-1
Policy” means the MBIA Insurance Corporation Financial Guaranty
Insurance Policy No. 45243, together with the endorsements thereto, issued
as of the Closing Date in favor of the Subordination Agent for the benefit of
the Class G-1 Certificateholders, as amended, supplemented or otherwise
modified from time to time in accordance with its terms.

 

“Class G-1
Policy Account” means the Eligible Deposit Account established
by the Subordination Agent pursuant to Section 2.2(a)(iii)(x) into which
amounts will be deposited pursuant to Section 3.7.

 

“Class G-1
Primary Cash Collateral Account” means an Eligible Deposit
Account in the name of the Subordination Agent maintained at an Eligible
Institution, which shall be the Subordination Agent if it shall so qualify,
into which all amounts drawn under the Class G-1 Primary Liquidity
Facility pursuant to Section 3.6(c), 3.6(d), 3.6(i) or 3.6(k) shall be
deposited.

 

“Class G-1
Primary Liquidity Facility” means, initially, the Revolving
Credit Agreement dated as of the date hereof, between the Subordination Agent,
as agent and trustee for the Class G-1 Trustee, and the initial
Class G-1 Primary Liquidity Provider, and, from and after the replacement
of such Agreement pursuant hereto, the Replacement Primary Liquidity Facility
therefor, if any, in each case as amended, supplemented or otherwise modified
from time to time in accordance with its terms.

 

7

 

“Class G-1
Primary Liquidity Provider” means LBBW, together with any
Replacement Primary Liquidity Provider which has issued a Replacement Primary
Liquidity Facility to replace any Class G-1 Primary Liquidity Facility
pursuant to Section 3.6(e).

 

“Class G-1
Trust” means (i) prior to the Transfer, the JetBlue Airways
Pass Through Trust 2004-2G-1-O created and administered pursuant to the
Class G-1 Trust Agreement and (ii) after the Transfer, the JetBlue
Airways Pass Through Trust 2004-2G-1-S created and administered pursuant to the
Class G-1 Trust Agreement.

 

“Class G-1
Trust Agreement” means (i) prior to the Transfer, the Pass
Through Trust Agreement, dated as of the date hereof, between JetBlue and the
Class G-1 Trustee, governing the creation and administration of the
JetBlue Airways Pass Through Trust 2004-2G-1-O and the issuance of the
Class G-1 Certificates, as the same may be amended, supplemented or
otherwise modified from time to time in accordance with its terms, and
(ii) after the Transfer, the Pass Through Trust Agreement entered into
between JetBlue and the Class G-1 Trustee, governing the creation and
administration of the JetBlue Airways Pass Through Trust 2004-2G-1-S and the
issuance of the Class G-1 Certificates, as the same may be amended,
supplemented or otherwise modified from time to time in accordance with its
terms.

 

“Class G-1
Trustee” means WTC, not in its individual capacity except as
expressly set forth in the Class G-1 Trust Agreement, but solely as
trustee under the Class G-1 Trust Agreement, together with any successor
trustee appointed pursuant thereto.

 

“Class G-2
Above-Cap Account” means an Eligible Deposit Account in the name
of the Subordination Agent maintained at an Eligible Institution, which shall
be the Subordination Agent if it shall so qualify, into which all amounts paid
under the Class G-2 Above-Cap Liquidity Facility pursuant to Section 3.6(a)
shall be deposited.

 

“Class G-2
Above-Cap Liquidity Facility” means, initially, the ISDA Master
Agreement, dated as of November 15, 2004, between the Subordination Agent,
as agent and trustee for the Class G-2 Trust, and the initial Class G-2
Above-Cap Liquidity Provider, together with the Schedule and Confirmation
attached thereto, relating to the Class G-2 Certificates, and, from and after
replacement of such ISDA Master Agreement pursuant hereto, the Replacement
Above-Cap Liquidity Facility therefor, if any, in each case as amended,
supplemented or otherwise modified from time to time in accordance with its
terms.

 

“Class G-2
Above-Cap Liquidity Provider” means Citibank or any Replacement
Above-Cap Liquidity Provider which has issued a Replacement Above-Cap Liquidity
Facility to replace the Class G-2 Above-Cap Liquidity Facility pursuant to Section 3.6(c)(ii).

 

“Class G-2
Above-Cap Reserve Account” means an Eligible Deposit Account in
the name of the Subordination Agent maintained at an Eligible Institution,
which shall be the Subordination Agent if it shall so qualify, into which all
amounts paid under the Class G-2 Above-Cap Liquidity Facility pursuant to Section 3.6(f)
shall be deposited.

 

“Class G-2
Certificateholder” means, at any time, any holder of one or more
Class G-2 Certificates.

 

8

 

“Class G-2
Certificates” means the certificates issued by the
Class G-2 Trust, substantially in the form of Exhibit A to the
Class G-2 Trust Agreement, and authenticated by the Class G-2
Trustee, representing fractional undivided interests in the Class G-2
Trust, and any certificates issued in exchange therefor or replacement thereof
pursuant to the terms of the Class G-2 Trust Agreement.

 

“Class G-2
Deposits” means the Deposits with respect to the Class G-2
Certificates.

 

“Class G-2
Paying Agent Account” means the Paying Agent Account as defined
in the Escrow and Paying Agent Agreement relating to the Class G-2
Certificates.

 

“Class G-2
Policy” means the MBIA Insurance Corporation Financial Guaranty
Insurance Policy No. 45256, together with the endorsements thereto, issued
as of the Closing Date in favor of the Subordination Agent for the benefit of
the Class G-2 Certificateholders, as amended, supplemented or otherwise
modified from time to time in accordance with its terms.

 

“Class G-2
Policy Account” means the Eligible Deposit Account established
by the Subordination Agent pursuant to Section 2.2(a)(iii)(y) into which
amounts will be deposited pursuant to Section 3.7.

 

“Class G-2
Primary Cash Collateral Account” means an Eligible Deposit
Account in the name of the Subordination Agent maintained at an Eligible
Institution, which shall be the Subordination Agent if it shall so qualify,
into which all amounts drawn under the Class G-2 Primary Liquidity
Facility pursuant to Section 3.6(c), 3.6(d), 3.6(i) or 3.6(k) shall be
deposited.

 

“Class G-2
Primary Liquidity Facility” means, initially, the Revolving
Credit Agreement dated as of the date hereof, between the Subordination Agent,
as agent and trustee for the Class G-2 Trustee, and the initial
Class G-2 Primary Liquidity Provider, and, from and after the replacement
of such Agreement pursuant hereto, the Replacement Primary Liquidity Facility
therefor, if any, in each case as amended, supplemented or otherwise modified
from time to time in accordance with its terms.

 

“Class G-2
Primary Liquidity Provider” means LBBW, together with any
Replacement Primary Liquidity Provider which has issued a Replacement Primary
Liquidity Facility to replace any Class G-2 Primary Liquidity Facility
pursuant to Section 3.6(e).

 

“Class G-2
Trust” means (i) prior to the Transfer, the JetBlue Airways
Pass Through Trust 2004-2G-2-O created and administered pursuant to the
Class G-2 Trust Agreement and (ii) after the Transfer, the JetBlue
Airways Pass Through Trust 2004-2G-2-S created and administered pursuant to the
Class G Trust Agreement.

 

“Class G-2
Trust Agreement” means (i) prior to the Transfer, the Pass
Through Trust Agreement, dated as of the date hereof, between JetBlue and the
Class G-2 Trustee, governing the creation and administration of the
JetBlue Airways Pass Through Trust 2004-2G-2-O and the issuance of the
Class G-2 Certificates, as the same may be amended, supplemented or
otherwise modified from time to time in accordance with its terms, and
(ii) after the Transfer, the Pass Through Trust Agreement entered into
between JetBlue and the Class G-2 Trustee, governing the creation and
administration of the JetBlue Airways Pass Through Trust 2004-2G-2-S and the

 

9

 

issuance of the
Class G-2 Certificates, as the same may be amended, supplemented or
otherwise modified from time to time in accordance with its terms.

 

“Class G-2
Trustee” means WTC, not in its individual capacity except as
expressly set forth in the Class G-2 Trust Agreement, but solely as
trustee under the Class G-2 Trust Agreement, together with any successor
trustee appointed pursuant thereto.

 

“Closing Date”
means November 15, 2004.

 

“Code”
means the Internal Revenue Code of 1986, as amended from time to time, and the
Treasury Regulations promulgated thereunder.

 

“Collateral”
has the meaning assigned to such term in the Indentures.

 

“Collection
Account” means the Eligible Deposit Account established by the
Subordination Agent pursuant to Section 2.2 which the Subordination Agent
shall make deposits in and withdrawals from in accordance with this Agreement.

 

“Consent Period”
has the meaning assigned to such term in Section 3.6(d).

 

“Controlling
Party” means the Person entitled to act as such pursuant to the
terms of Section 2.6.

 

“Corporate Trust
Office” means, with respect to any Trustee, the Subordination
Agent or any Loan Trustee, the office of such Person in the city at which, at
any particular time, its corporate trust business shall be principally
administered.

 

“Current
Distribution Date” means a Distribution Date specified as a
reference date for calculating the Expected Distributions with respect to the
Certificates of any Trust as of such Distribution Date.

 

“Deemed
Disposition Event” means, in respect of any Equipment Note, the
continuation of an Indenture Event of Default in respect of such Equipment Note
without an Actual Disposition Event occurring in respect of such Equipment Note
for a period of five years from the date of the occurrence of such Indenture
Event of Default.

 

“Deficiency
Amount” has the meaning assigned to such term in Section 3.6(a).

 

“Delivery Period
Expiry Date” means the earlier of (a) February 28,
2006, or, if the Equipment Notes relating to all the Aircraft (or Substitute
Aircraft in lieu thereof) have not been purchased by the Trusts on or prior to
such date due to any reason beyond the control of JetBlue and not occasioned by
JetBlue’s fault or negligence, May 31, 2006 and (b) the date on which
Equipment Notes with respect to all Aircraft (or Substitute Aircraft in lieu
thereof) have been purchased by the Trusts in accordance with the Note Purchase
Agreement.

 

“Deposit
Agreement” shall mean, with respect to any Class, the Deposit
Agreement pertaining to such Class dated as of the date hereof between the
Escrow Agent and the

 

10

 

Depositary, as the same
may be amended, modified or supplemented from time to time in accordance with
the terms thereof.

 

“Depositary”
means HSH Nordbank AG, acting through its New York Branch, a New York State
licensed branch office of a Landesbank organized under the laws of Germany, as
depositary under each Deposit Agreement, or its successors and assigns.

 

“Deposits”
with respect to any Class, shall have the meaning set forth in the Deposit
Agreement pertaining to such Class.

 

“Designated
Representatives” means the Subordination Agent Representatives,
the Trustee Representatives and the Provider Representatives identified under Section 2.5.

 

“Disposition”
has the meaning assigned to such term in Section 3.7(c).

 

“Disposition
Payment” has the meaning assigned to such term in Section 3.7(b).

 

“Distribution
Date” means a Regular Distribution Date or a Special
Distribution Date.

 

“Dollars”
or “$” means United States
dollars.

 

“Downgrade
Drawing” has the meaning assigned to such term in Section 3.6(c).

 

“Downgrade Event”
has the meaning assigned to such term in each Liquidity Facility.

 

“Downgraded
Facility” has the meaning assigned to such term in Section 3.6(c).

 

“Drawing”
means an Interest Drawing, a Final Drawing, a Non-Extension Drawing, a Special
Termination Drawing or a Downgrade Drawing, as the case may be.

 

“Election
Distribution Date” has the meaning assigned to such term in Section 3.7(c).

 

“Election Interest
Payment” has the meaning ascribed to such term in Section 3.7(c).

 

“Eligible Deposit
Account” means either (a) a segregated account with an
Eligible Institution or (b) a segregated trust account with the corporate
trust department of a depository institution organized under the laws of the
United States of America or any one of the states thereof or the District of
Columbia (or any U.S. branch of a foreign bank), having corporate trust powers
and acting as trustee for funds deposited in such account, so long as any of
the securities of such depository institution has a long-term unsecured debt
rating from each Rating Agency of at least A-3 or its equivalent.  An Eligible Deposit Account may be maintained
with a Primary Liquidity Provider so long as such Primary Liquidity Provider is
an Eligible Institution; provided that such Primary Liquidity Provider shall
have waived all rights of set-off and counterclaim with respect to such
account.

 

“Eligible
Institution” means (a) the corporate trust department of
the Subordination Agent or any Trustee, as applicable, or (b) a depository
institution organized under the laws of the United States of America or any one
of the states thereof or the District of Columbia (or any

 

11

 

U.S. branch of a foreign
bank), which has a long-term unsecured debt rating from each Rating Agency of
at least A-3 or its equivalent.

 

“Eligible
Investments” means (a) investments in obligations of, or
guaranteed by, the United States Government having maturities no later than 90
days following the date of such investment, (b) investments in open market
commercial paper of any corporation incorporated under the laws of the United
States of America or any state thereof with a short-term unsecured debt rating
issued by Moody’s and short-term issuer credit rating by Standard &
Poor’s of at least P-1 and A-1, respectively, having maturities no later than
90 days following the date of such investment or (c) investments in
negotiable certificates of deposit, time deposits, banker’s acceptances,
commercial paper or other direct obligations of, or obligations guaranteed by,
commercial banks organized under the laws of the United States or of any
political subdivision thereof (or any U.S. branch of a foreign bank) with
short-term unsecured debt ratings and short-term issuer credit ratings of at
least P-1 by Moody’s and A-1 by Standard & Poor’s, having maturities
no later than 90 days following the date of such investment; provided, however,
that (x) all Eligible Investments that are bank obligations shall be
denominated in U.S. dollars; and (y) the aggregate amount of Eligible
Investments at any one time that are bank obligations issued by any one bank
shall not be in excess of 5% of such bank’s capital surplus; provided further
that (1) any investment of the types described in clauses (a), (b) and
(c) above may be made through a repurchase agreement in commercially
reasonable form with a bank or other financial institution qualifying as an
Eligible Institution so long as such investment is held by a third party
custodian also qualifying as an Eligible Institution, and (2) all such
investments set forth in clause (a), (b) or (c) above mature (i) with
respect to investments of Scheduled Payments, no later than the Business Day
immediately preceding the next Regular Distribution Date and (ii) with
respect to investments of Special Payments, no later than the Business Day
immediately preceding the Special Distribution Date for such Special Payments;
provided further, however, that in the case of any Eligible Investment issued
by a domestic branch of a foreign bank, the income from such investment shall
be from sources within the United States for purposes of the Code.  Notwithstanding the foregoing, no investment
of the types described in clause (b) above which is issued or guaranteed by
JetBlue or any of its Affiliates, and no investment in the obligations of any
one bank in excess of $10,000,000, shall be an Eligible Investment unless
written approval has been obtained from the Policy Provider and a Ratings
Confirmation shall have been received with respect to the making of such
investment.

 

“Equipment Notes”
means, at any time, the Series G-1 Equipment Notes, Series G-2 Equipment Notes
and the Series C Equipment Notes, collectively, and in each case, any Equipment
Notes issued in exchange therefor or replacement thereof pursuant to the terms
of the Indentures.

 

“Escrow Agent”
means WTC, as escrow agent under each Escrow and Paying Agent Agreement,
together with its successors in such capacity.

 

“Escrow and
Paying Agent Agreement” shall mean, with respect to any Class,
the Escrow and Paying Agent Agreement pertaining to such Class dated as of the
date hereof between the Escrow Agent, the Underwriters, the Trustee for such
Class and the Paying Agent, as the same may be amended, modified or
supplemented from time to time in accordance with the terms thereof.

 

12

 

“Escrow Receipts”
has the meaning assigned to such term in the Escrow and Paying Agent Agreement
for the Trusts.

 

“Excess Interest
Policy Drawing” has the meaning assigned to such term in Section 3.7(c).

 

“Excess
Reimbursement Obligations” means, (a) in the event of any
Policy Provider Election, the portion of the Policy Provider Obligations that
represents interest on the Series G-1 Equipment Notes or Series G-2 Equipment
Notes in respect of which the Policy Provider Election has been made in excess
of 21 months of interest at the interest rate applicable to such Equipment
Note, (b) any interest on the Liquidity Obligations in respect of the
Class G-1 Primary Liquidity Facility and Class G-2 Primary Liquidity
Facility paid by the Policy Provider to the Primary Liquidity Provider from and
after the end of the 21-month period referred to in Section 3.7(c) hereof
and (c) interest on Policy Drawings as set forth in the Policy Provider
Agreement (other than any such interest that constitutes a Policy Provider
Obligation).

 

“Expected
Distributions” means, with respect to the Certificates of any
Trust on any Current Distribution Date, the difference between (A) the
Pool Balance of such Certificates as of the immediately preceding Distribution
Date (or, if the Current Distribution Date is the first Distribution Date, the
original aggregate face amount of the Certificates of such Trust), and
(B) the Pool Balance of such Certificates as of the Current Distribution
Date calculated on the basis that (i) the principal of the Non-Performing
Equipment Notes held in such Trust has been paid in full and such payments have
been distributed to the holders of such Certificates, (ii) the principal
of the Performing Equipment Notes held in such Trust has been paid when due
(without giving effect to any Acceleration of Performing Equipment Notes) and
such payments have been distributed to the holders of such Certificates and
(iii) the principal of any Equipment Notes formerly held in such Trust
that have been sold pursuant to the terms hereof has been paid in full and such
payments have been distributed to the holders of such Certificates, but without
giving effect to any reduction in the Pool Balance as a result of any
distribution attributable to Deposits occurring after the immediately preceding
Distribution Date (or, if the Current Distribution Date is the first
Distribution Date, occurring after the initial issuance of the Certificates of
such Trust).  For purposes of calculating
Expected Distributions with respect to the Certificates of any Trust, any
Additional Payment paid on the Equipment Notes held in such Trust which has not
been distributed to the Certificateholders of such Trust (other than such
Additional Payment or a portion thereof applied to the payment of interest on
the Certificates of such Trust or the reduction of the Pool Balance of such
Trust) shall be added to the amount of such Expected Distributions.

 

“Expiry Date”
with respect to any Primary Liquidity Facility, shall have the meaning set
forth in such Primary Liquidity Facility.

 

“Fee Letter”
means the Fee Letter dated as of the date hereof among JetBlue, LBBW and the
Subordination Agent with respect to the initial Primary Liquidity Facilities
and any fee letter entered into among JetBlue, the Subordination Agent and any
Replacement Primary Liquidity Provider.

 

13

 

“Final
Distributions” means, with respect to the Certificates of any
Trust on any Distribution Date, the sum of (x) the aggregate amount of all
accrued and unpaid interest on such Certificates (excluding interest, if any,
payable with respect to the Deposits relating to such Trust) and (y) the
Pool Balance of such Certificates as of the immediately preceding Distribution
Date (less the amount of the Deposits for such Class of Certificates as of such
preceding Distribution Date other than any portion of such Deposits thereafter
used to acquire Equipment Notes pursuant to the Note Purchase Agreement).  For purposes of calculating Final
Distributions with respect to the Certificates of any Trust, any Additional
Payment paid on the Equipment Notes held in such Trust which has not been
distributed to the Certificateholders of such Trust (other than such Additional
Payment or a portion thereof applied to the payment of interest on the
Certificates of such Trust or the reduction of the Pool Balance of such Trust)
shall be added to the amount of such Final Distributions.

 

“Final Drawing”
has the meaning assigned to such term in Section 3.6(i).

 

“Final Legal
Distribution Date” means (i) with respect to the
Class G-1 Certificates, February 15, 2018, (ii) with respect to
the Class G-2 Certificates, May 15, 2018 and (iii) with respect
to the Class C Certificates, May 15. 2010.

 

“Final Order”
has the meaning assigned to such term in the Policy.

 

“Financing
Agreement” means each of the Participation Agreements and the
Note Purchase Agreement.

 

“Indenture”
means each of the Trust Indentures entered into by the Loan Trustee and JetBlue
pursuant to the Note Purchase Agreement, in each case as the same may be
amended, supplemented or otherwise modified from time to time in accordance
with its terms.

 

“Indenture
Default” means, with respect to any Indenture, any Default (as
such term is defined in such Indenture) thereunder.

 

“Indenture Event
of Default” means, with respect to any Indenture, any Event of
Default (as such term is defined in such Indenture) thereunder.

 

“Individual Drawn
Percentage” means, as of any date, with respect to an Interest
Drawing under a Primary Liquidity Facility or a withdrawal from a Primary Cash
Collateral Account pursuant to Section 3.6(f)(i)(A), (ii)(A) or (iii)(A),
a fraction (x) the numerator of which is the outstanding amount of such
Interest Drawing or such withdrawal as of such date and (y) the
denominator of which is the applicable Required Amount as of the date of such
Interest Drawing or withdrawal, calculated in accordance with clause (i) of the
definition of “Required Amount” as of the date of such Interest Drawing or such
withdrawal and on the basis of the lower of the applicable Stated Interest Rate
and the applicable Capped Interest Rate as of the date of such Interest Drawing
or such withdrawal, as the case may be.  
Repayments of Interest Drawings or such withdrawals shall be deemed to
have been made in the order in which such Interest Drawings or withdrawals were
made.

 

“Interest Drawing”
has the meaning assigned to such term in Section 3.6(a).

 

14

 

“Interest Payment
Date” means, with respect to any Primary Liquidity Facility, the
final day of each Interest Period (as defined in such Primary Liquidity
Facility) thereunder.

 

“Interest Period”
with respect to any Indenture, has the meaning assigned to such term in such
Indenture.

 

“Investment
Earnings” means investment earnings on funds on deposit in the
Trust Accounts net of losses and investment expenses of the Subordination Agent
in making such investments.

 

“ISTAT”
means the International Society of Transport Aircraft Trading.

 

“JetBlue”
means JetBlue Airways Corporation, a Delaware corporation, and its successors
and assigns.

 

“JetBlue
Bankruptcy Event” means the occurrence and continuation of any
of the following:

 

(a)                                  JetBlue
shall consent to the appointment of or the taking of possession by a receiver,
trustee or liquidator of itself or of substantially all of its property, or
shall make a general assignment for the benefit of creditors, or JetBlue shall
file a voluntary petition in bankruptcy or a voluntary petition or an answer
seeking reorganization, liquidation or other relief in a case under any
bankruptcy laws or other insolvency laws (as in effect at such time) or an
answer admitting the material allegations of a petition filed against JetBlue
in any such case, or JetBlue shall seek relief by voluntary petition, answer or
consent, under the provisions of any other bankruptcy or other similar law
providing for the reorganization or winding-up of corporations (as in effect at
such time) or JetBlue shall seek an agreement, composition, extension or
adjustment with its creditors under such laws, or JetBlue’s board of directors
shall adopt a resolution authorizing corporate action in furtherance of any of
the foregoing; or

 

(b)                                 an
order, judgment or decree shall be entered by any court of competent
jurisdiction appointing, without the consent of JetBlue, a receiver, trustee or
liquidator of JetBlue or of substantially all of its property, or substantially
all of the property of JetBlue shall be sequestered, or granting any other
relief in respect of JetBlue as a debtor under any bankruptcy laws or other
insolvency laws (as in effect at such time), and any such order, judgment or
decree of appointment or sequestration shall remain in force undismissed,
unstayed and unvacated for a period of 90 days after the date of entry thereof;
or

 

(c)                                  a
petition against JetBlue in a case under any bankruptcy laws or other
insolvency laws (as in effect at such time) is filed and not withdrawn or
dismissed within 90 days thereafter, or if, under the provisions of any law
providing for reorganization or winding-up of corporations which may apply to
JetBlue, any court of competent jurisdiction assumes jurisdiction, custody or
control of JetBlue or of any substantial part of its property and such
jurisdiction, custody or control remains in force unrelinquished, unstayed and
unterminated for a period of 90 days.

 

“JetBlue
Provisions” has the meaning specified in Section 9.1(a).

 

15

 

“Last Payment
Date” has the meaning assigned to such term in Section 3.7(c).

 

“Lending Office”
means, with respect to any Primary Liquidity Facility, the office of the
Primary Liquidity Provider thereunder, presently located at Stuttgart, Germany
or such other office as such Liquidity Provider from time to time shall notify
the applicable Trustee as its “Lending Office” under any such Primary Liquidity
Facility; provided that such Primary Liquidity Provider shall not change its
Lending Office to another Lending Office outside of Germany or the United
States of America except in accordance with Section 3.01, 3.02 or 3.03 of
any such Primary Liquidity Facility.

 

“LIBOR Business
Day” means any day on which dealings are carried on in the
London interbank market.

 

“Lien”
means any mortgage, pledge, lien, charge, claim, disposition of title,
encumbrance, lease, sublease, sub-sublease or security interest of any kind,
including, without limitation, any thereof arising under any conditional sales
or other title retention agreement.

 

“Liquidity Event
of Default” with respect to any Primary Liquidity Facility, has
the meaning assigned to such term in such Primary Liquidity Facility.

 

“Liquidity
Expenses” means, with respect to the Primary Liquidity
Facilities, all Liquidity Obligations other than (i) the amount of any
Drawings under the Primary Liquidity Facilities and (ii) any interest
accrued on any Liquidity Obligations.

 

“Liquidity
Facility” means, at any time, a Primary Liquidity Facility or an
Above-Cap Liquidity Facility, as applicable.

 

“Liquidity
Obligations” means all principal, interest, fees and other amounts
owing to the Primary Liquidity Providers under the Primary Liquidity
Facilities, Section 7.1 of the Participation Agreements or the Fee Letter
other than (i) any indemnity payment or expense reimbursement owing to the
Primary Liquidity Provider that is received by the Subordination Agent from
JetBlue and (ii) any fees owing to the Primary Liquidity Provider that is
received by the Subordination Agent from JetBlue.

 

“Liquidity
Provider” means, at any time, any Primary Liquidity Provider or
any Above-Cap Liquidity Provider, as applicable.

 

“Loan Trustee”
means, with respect to any Indenture, the mortgagee thereunder.

 

“Minimum Sale
Price” means, with respect to any Aircraft or the Equipment
Notes issued in respect of such Aircraft, at any time, the lesser of
(a) in the case of such Aircraft, 75%, or in the case of such Equipment
Notes, 80% of the Appraised Current Market Value of such Aircraft and
(b) the aggregate outstanding principal amount of such Equipment Notes,
plus accrued and unpaid interest thereon.

 

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

 

16

 

“Non-Controlling
Party” means, at any time, any of the Trustees, the Liquidity
Providers or the Policy Provider which is not the Controlling Party at such
time.

 

“Non-Extended
Facility” has the meaning assigned to such term in Section 3.6(d).

 

“Non-Extension
Drawing” has the meaning assigned to such term in Section 3.6(d).

 

“Non-Performing
Equipment Note” means an Equipment Note issued pursuant to an Indenture
that is not a Performing Equipment Note.

 

“Note Holder”
with respect to an Indenture, has the meaning assigned to such term in such
Indenture.

 

“Note Purchase
Agreement” means the Note Purchase Agreement dated as of the
date hereof, among JetBlue, each Trustee, the Escrow Agent, the Subordination
Agent and the Paying Agent.

 

“Notice for
Payment” means a Notice of Nonpayment as such term is defined in
the Policy.

 

“Notice of
Avoided Payment” has the meaning assigned to such term in the
Policy.

 

“Officer’s
Certificate” of any Person means a certification signed by a
Responsible Officer of such Person.

 

“Operative
Agreements” means this Agreement, the Liquidity Facilities, the
Policies, the Policy Provider Agreement, the Indentures, the Trust Agreements,
the Underwriting Agreement, the Financing Agreements, the Fee Letter, the
Policy Fee Letter, the Equipment Notes and the Certificates, together with all
exhibits and schedules included with any of the foregoing.

 

“Outstanding”
means, when used with respect to each Class of Certificates, as of the date of
determination, all Certificates of such Class theretofore authenticated and
delivered under the related Trust Agreement, except:

 

(i)                                     Certificates
of such Class theretofore canceled by the Registrar (as defined in such Trust
Agreement) or delivered to the Trustee thereunder or such Registrar for
cancellation;

 

(ii)                                  Certificates
of such Class for which money in the full amount required to make the Final
Distribution with respect to such Certificates pursuant to Section 11.01
of such Trust Agreement has been theretofore deposited with the related Trustee
in trust for the holders of such Certificates as provided in Section 4.01
of such Trust Agreement pending distribution of such money to such
Certificateholders pursuant to such Final Distribution payment; and

 

(iii)                               Certificates
of such Class in exchange for or in lieu of which other Certificates have been
authenticated and delivered pursuant to such Trust Agreement;

 

17

 

provided,
however, that in determining whether the holders of the requisite Outstanding
amount of such Certificates have given any request, demand, authorization,
direction, notice, consent or waiver hereunder, any Certificates owned by
JetBlue or any of its Affiliates shall be disregarded and deemed not to be
Outstanding, except that, in determining whether such Trustee shall be
protected in relying upon any such request, demand, authorization, direction,
notice, consent or waiver, only Certificates that such Trustee knows to be so
owned shall be so disregarded. 
Certificates so owned that have been pledged in good faith may be
regarded as Outstanding if the pledgee establishes to the satisfaction of the applicable
Trustee the pledgee’s right so to act with respect to such Certificates and
that the pledgee is not JetBlue or any of its Affiliates.

 

“Overdue
Scheduled Payment” means any Scheduled Payment which is not in
fact received by the Subordination Agent within ten Business Days after the Scheduled
Payment Date relating thereto.

 

“Participation
Agreement” means, with respect to each Indenture, the “Participation
Agreement” referred to therein.

 

“Payee”
has the meaning assigned to such term in Section 2.4(c).

 

“Paying Agent”
means WTC, as paying agent under each Escrow and Paying Agent Agreement,
together with its successors in such capacity.

 

“Performing
Equipment Note” means an Equipment Note with respect to which no
payment default has occurred and is continuing (without giving effect to any Acceleration);
provided that in the event of a bankruptcy proceeding under the Bankruptcy Code
under which JetBlue is a debtor, (i) any payment default occurring before
the date of the order for relief in such proceeding existing during the 60-day
period under Section 1110(a)(2)(A) of the Bankruptcy Code (or such longer
period as may apply under Section 1110(b) of the Bankruptcy Code) (the “Section 1110 Period”) shall not be
taken into consideration until the expiration of the applicable period,
(ii) any payment default occurring after the date of the order for relief
in such proceeding but during the Section 1110 Period will not be taken
into consideration if such payment default is cured under Section 1110(a)(2)(B)
of the Bankruptcy Code before the later of 30 days after the date of such
default or the expiration of the Section 1110 Period and (iii) any
payment default occurring after the Section 1110 Period will not be taken
into consideration if such payment default is cured before the end of the grace
period, if any, set forth in the related Indenture.

 

“Performing Note
Deficiency” means any time that less than 65% of the then
aggregate outstanding principal amount of all Equipment Notes are Performing
Equipment Notes.

 

“Permitted Liens”
has the meaning assigned to such term in the Indentures.

 

“Person”
means any individual, corporation, partnership, joint venture, association,
limited liability company, joint-stock company, trust, trustee, unincorporated
organization or government or any agency or political subdivision thereof.

 

“Policy”
means the Class G-1 Policy or the Class G-2 Policy, as applicable,
and “Policies” shall mean
both such policies.

 

18

 

“Policy Account”
means the Class G-1 Policy Account or the Class G-2 Policy Account,
as the case may be.

 

“Policy Drawing”
means, with respect to a Policy, any payment of a claim under such Policy.

 

“Policy Expenses”
means all amounts (including amounts in respect of expenses or indemnities) due
to the Policy Provider under the Policy Provider Agreement or the Financing
Agreements other than (i) any amounts due under the Policy Fee Letter,
(ii) the amount of any Excess Reimbursement Obligations, (iii) any
Policy Drawing and interest accrued thereon, (iv) any interest accrued on
any Policy Provider Obligations, (v) reimbursement of and interest on the
Liquidity Obligations in respect of the Primary Liquidity Facilities paid by
the Policy Provider to any Primary Liquidity Provider, (vi) any indemnity
payments owed to the Policy Provider and (vii) any amounts that the Policy
Provider is entitled to receive by virtue of the subrogation rights of the
Policy Provider hereunder, including, without limitation, fees and expenses
incurred in connection with the enforcement of such rights.

 

“Policy Fee
Letter” means the fee letter, dated November 15, 2004 from
the Policy Provider to JetBlue and the Subordination Agent.

 

“Policy Provider”
means MBIA Insurance Corporation.

 

“Policy Provider
Agreement” means the Insurance and Indemnity Agreement dated as
of the date hereof among the Subordination Agent, as agent and trustee for the
Class G-1 Trustee and Class G-2 Trustee, JetBlue and the Policy
Provider as amended, supplemented or otherwise modified from time to time in
accordance with its terms.

 

“Policy Provider
Amounts” means Policy Expenses, Policy Provider Obligations,
amounts due under the Policy Fee Letter and all other obligations owing to the
Policy Provider under this Agreement and under any Policy Provider Document.

 

“Policy Provider
Default” shall mean the occurrence of any of the following
events (a) the Policy Provider fails to make a payment required under
either Policy in accordance with its terms and such failure remains unremedied
for 2 Business Days following the delivery of Written Notice of such failure to
the Policy Provider or (b) the Policy Provider (i) files any petition
or commences any case or proceeding under any provisions of any federal or
state law relating to insolvency, bankruptcy, rehabilitation, liquidation or
reorganization, (ii) makes a general assignment for the benefit of its
creditors or (iii) has an order for relief entered against it under any
federal or state law relating to insolvency, bankruptcy, rehabilitation,
liquidation or reorganization that is final and nonappealable, or (c) a
court of competent jurisdiction, the New York Insurance Department or
another competent regulatory authority enters a final and nonappealable order,
judgment or decree (i) appointing a custodian, trustee, agent or receiver
for the Policy Provider or for all or any material portion of its property or
(ii) authorizing the taking of possession by a custodian, trustee, agent
or receiver of the Policy Provider (or taking of possession of all or any
material portion of the Policy Provider’s property).

 

“Policy Provider
Documents”  means
each Policy, the Policy Provider Agreement and the Policy Fee Letter.

 

19

 

“Policy Provider
Election” has the meaning assigned to such term in Section 3.7(c).

 

“Policy Provider
Interest Obligations” means any interest on any Policy Drawing
made to cover any shortfall attributable to any failure of the relevant Primary
Liquidity Provider to honor any Interest Drawing in accordance with Section 2.02(a)
of the applicable Primary Liquidity Facility in an amount equal to the amount
of interest that would have accrued on such Interest Drawing if such Interest
Drawing had been made in accordance with Section 2.02(a) of such Primary
Liquidity Facility, at the interest rate applicable to such Interest Drawing
until such Policy Drawing has been repaid in full up to a maximum of six such
Policy Drawings.

 

“Policy Provider
Obligations” means all reimbursement and other amounts,
including, without limitation, fees and indemnities (to the extent not included
in Policy Expenses), due to the Policy Provider under the Policy Provider
Agreement but shall not include (i) any amounts under the Policy Fee
Letter and (ii) any interest on Policy Drawings except Policy Provider
Interest Obligations.

 

“Policy Provider
Rating” shall mean the respective ratings by each of the Ratings
Agencies of the Policy Provider’s financial strength in respect of the Policy.

 

“Policy Provider
Threshold Rating” shall mean a Policy Provider Rating of Aaa by
Moody’s and AAA by Standard & Poor’s.

 

“Pool Balance”
means, with respect to each Trust or the Certificates issued by any Trust, as
of any date, (i) the original aggregate face amount of the Certificates of
such Trust less (ii) the aggregate amount of all payments made in respect
of the Certificates of such Trust or in respect of Deposits relating to such
Trust other than payments made in respect of interest or Additional Payment
thereon or reimbursement of any costs and expenses in connection
therewith.  The Pool Balance for each
Trust or for the Certificates issued by any Trust as of any Distribution Date
shall be computed after giving effect to any special distribution with respect
to unused Deposits, payment of principal of the Equipment Notes, payments under
the related Policy (other than in respect of interest on the Certificates) or
payment with respect to other Collateral held in such Trust and the
distribution thereof to be made on that date.

 

“Post-Default
Appraisal” has the meaning assigned to such term in Section 4.1(a).

 

“Preferred C Pool
Balance” means, as of any date, the excess of (A) the Pool
Balance of the Class C Certificates as of the immediately preceding
Distribution Date (or, if such date is on or before the first Distribution
Date, the original aggregate face amount of the Class C Certificates) (after
giving effect to distributions made on such date) over (B) (i) the
outstanding principal amount of each Series C Equipment Note which remains
unpaid as of such date subsequent to the disposition of the Collateral (as
defined in the Indenture pursuant to which such Series C Equipment Note was
issued), (ii) the outstanding principal amount of each Series C Equipment
Note which remains unpaid as of such date subsequent to the scheduled date of
mandatory redemption of such Series C Equipment Note following an Event of Loss
with respect to the Aircraft which secured such Series C Equipment Note,
(iii) the difference between (x) the outstanding amount of principal
and interest as of the date of sale of each Series C Equipment Note previously
sold and (y) the purchase price received with respect to the sale of such
Series C

 

20

 

Equipment Note and
(iv) the amount of principal outstanding on any Series C Equipment Note
with respect to which a Deemed Disposition Event has occurred.

 

“Prepayment
Premium” has the meaning set forth in the Indenture.

 

“Primary Cash
Collateral Account” means the Class G-1 Primary Cash Collateral
Account, the Class G-2 Primary Cash Collateral Account or the Class C Primary
Cash Collateral Account, as applicable.

 

“Primary
Liquidity Facility” means, at any time, the Class G-1 Primary
Liquidity Facility, the Class G-2 Primary Liquidity Facility or the Class C Primary
Liquidity Facility, as applicable.

 

“Primary
Liquidity Provider” means, at any time, the Class G-1 Primary
Liquidity Provider, the Class G-2 Primary Liquidity Provider or the Class C
Primary Liquidity Provider, as applicable.

 

“Prior Funds”
means, with respect to any Distribution Date, (i) with respect to the
Class G-1 Certificates, any amounts received by the Escrow Agent in the
Class G-1 Paying Agent Account in respect of accrued interest on the
Class G-1 Deposits, any Drawing paid under the Class G-1 Primary
Liquidity Facility in respect of interest due on the Class G-1
Certificates on such Distribution Date and any withdrawal of funds from the
Class G-1 Primary Cash Collateral Account and the Class G-1 Above-Cap
Account in respect of such interest and (ii) with respect to the
Class G-2 Certificates, any amounts received by the Escrow Agent in the
Class G-2 Paying Agent Account in respect of accrued interest on the
Class G-2 Deposits, any Drawing paid under the Class G-2 Primary
Liquidity Facility in respect of interest due on the Class G-2
Certificates on such Distribution Date and any withdrawal of funds from the
Class G-2 Primary Cash Collateral Account and the Class G-2 Above-Cap
Account in respect of such interest.

 

“Proceeding”
means any suit in equity, action at law or other judicial or administrative
proceeding.

 

“Provider
Incumbency Certificate” has the meaning assigned to such term in
Section 2.5(c).

 

“Provider
Representatives” has the meaning assigned to such term in Section 2.5(c).

 

“PTC Event of
Default” means, with respect to each Trust Agreement, the
failure to pay within 10 Business Days after the applicable Distribution
Date:  (i) the outstanding Pool
Balance of the applicable Class of Certificates on the Final Legal Distribution
Date for such Class (unless, in the case of the Class G-1 Certificates or
Class G-2 Certificates, the Subordination Agent shall have made a drawing
under the related Policy in an aggregate amount sufficient to pay such
outstanding Pool Balance and shall have distributed such amount to the
Class G-1 Trustee and/or Class G-2 Trustee, as the case may be) or
(ii) interest due on such Certificates on any Distribution Date (unless
the Subordination Agent shall have made an Interest Drawing, or a withdrawal
from the related Cash Collateral Account or the related Above-Cap Account, or
in the case of the Class G-1 Trust or Class G-2 Trust, a drawing
under the related Policy, with

 

21

 

respect thereto in an
aggregate amount sufficient to pay such interest and shall have distributed
such amount to the Trustee entitled thereto).

 

“Rating Agencies”
means, collectively, at any time, each nationally recognized rating agency
which shall have been requested to rate the Certificates and which shall then
be rating the Certificates.  The initial
Rating Agencies will be Moody’s and Standard & Poor’s.

 

“Ratings
Confirmation” means, with respect to any action proposed to be
taken, a written confirmation from each of the Rating Agencies that such action
would not result in (i) a reduction of the rating for any Class of
Certificates below the then current rating for such Class of Certificates (such
ratings as determined without regard to the Policies in respect of the
Class G-1 Certificates and Class G-2 Certificates) or (ii) a
withdrawal or suspension of the rating of any Class of Certificates.

 

“Regular
Distribution Dates” means each February 15, May 15, August 15
and November 15, commencing on February 15, 2005; provided, however,
that, if any such day shall not be a Business Day, the related distribution
shall be made on the next succeeding Business Day.

 

“Replacement
Above-Cap Liquidity Facility” means (i) an irrevocable
interest rate cap agreement (or agreements) for the same term as the Above-Cap
Liquidity Facility being replaced, in substantially the same form of the
Above-Cap Liquidity Facility being replaced or in such other form (which may
include a letter of credit) or (ii) solely in the event of the occurrence
of an “Additional Termination Event” with respect to an Above-Cap Liquidity
Provider, in addition to the Above-Cap Liquidity Facility of such Above-Cap
Liquidity Provider, a guarantee of the obligation of such Above-Cap Liquidity
Provider by an Affiliate thereof (an “ACLF
Guarantee”), in each case as shall permit the Rating Agencies to
issue in writing, and the Rating Agencies shall have issued in writing, a
Ratings Confirmation (before the downgrading of the ratings on the
Certificates, if any, as a result of any downgrading of the Above-Cap Liquidity
Provider and without regard to the Policies), which agreement, in the case of
clause (i) or ACLF Guarantee in the case of clause (ii), shall be
issued by a Person (or Person(s)) having short-term unsecured debt ratings or
short-term issuer credit ratings, as the case may be, issued by Moody’s and
Standard & Poors that are equal to or higher than the applicable Threshold
Rating (which Person, in the case of the Class G-1 Above-Cap Liquidity Facility
and the Class G-2 Above-Cap Liquidity Facility will be consented to by the
Policy Provider, which consent shall not be unreasonably withheld or delayed).

 

“Replacement
Above-Cap Liquidity Provider” means a Person (or Persons) who
issue a Replacement Above-Cap Liquidity Facility.

 

“Replacement
Primary Liquidity Facility” means, for any Primary Liquidity
Facility, an irrevocable revolving credit agreement (or agreements) in
substantially the form of the replaced Primary Liquidity Facility, including
reinstatement provisions, or in such other form (which may include a letter of
credit) as shall permit the Rating Agencies to confirm in writing their
respective ratings then in effect for the related Certificates (before
downgrading of such ratings, if any, as a result of the downgrading of the applicable
Primary Liquidity Provider and without regard to the Policies) and, in the case
of the Class G-1 Primary Liquidity Facility and

 

22

 

Class G-2 Primary
Liquidity Facility only, consented to by the Policy Provider, which consent
shall not be unreasonably withheld or delayed, in a face amount (or in an
aggregate face amount) equal to the Required Amount and issued by a Person (or
Persons) having short-term unsecured debt ratings or short-term issuer credit
ratings, as the case may be, issued by both Rating Agencies which are equal to
or higher than the Threshold Rating. 
Without limitation of the form that a Replacement Primary Liquidity
Facility otherwise may have pursuant to the preceding sentence, a Replacement
Primary Liquidity Facility for any Class of Certificates may have a stated
expiration date earlier than 15 days after the Final Legal Distribution Date of
such Class of Certificates so long as such Replacement Primary Liquidity
Facility provides for a Non-Extension Drawing as contemplated by Section 3.6(d)
hereof.

 

“Replacement
Primary Liquidity Provider” means a Person (or Persons) who
issues a Replacement Primary Liquidity Facility.

 

“Required Amount”
means, with respect to each Primary Liquidity Facility, or the Primary Cash
Collateral Account, for any Class, for any day, (i) so long as there is no
Interest Drawing made thereunder remaining unreimbursed on such day, the
aggregate amount of interest, calculated at the rate per annum equal to the applicable
Capped Interest Rate for the related Class of Certificates, that would be
payable on such Class of Certificates on each of the six successive Regular
Distribution Dates immediately following such day, without regard to expected
future distributions of principal on such Class of Certificates or (ii) if
one or more Interest Drawings made thereunder remain unreimbursed on such day,
the sum of (x) the unreimbursed amount of such Interest Drawing(s) and
(y) product of (A) the Undrawn Percentage and (B) the amount
determined pursuant to clause (i) as if no Interest Drawings were outstanding
and unreimbursed on such date.  The “Undrawn
Percentage” as of any date is equal to one hundred percent minus the sum of the
Individual Drawn Percentages for the Interest Drawings that are unreimbursed as
of such date.  The Pool Balance for
purposes of the definition of Required Amount with respect to the
Class G-1 Primary Liquidity Facility and Class G-2 Primary Liquidity
Facility shall, in the event of any Policy Provider Election, be deemed to be
reduced by the amount (if positive) by which (a) the then outstanding
principal balance of each Series G-1 Equipment Note and Series G-2 Equipment
Note in respect of which such Policy Provider Election has been made shall exceed
(b) the amount of any Policy Drawings previously paid by the Policy
Provider in respect of principal on such Series G-1 Equipment Note and Series
G-2 Equipment Note.  The Pool Balance for
purposes of the definition of Required Amount with respect to the Class C
Primary Liquidity Facility shall be the Preferred C Pool Balance as of the
applicable date of determination.

 

“Reserve Account”
means the Eligible Deposit Account established by the Subordination Agent
pursuant to Section 2.2 from which the Subordination Agent shall make
withdrawals to fund the Post-Default Appraisals in accordance with Section 4.1
hereof.

 

“Reserve Amount”
means $75,000.

 

“Responsible
Officer” means (i) with respect to the Subordination Agent
and each of the Trustees, any officer in the corporate trust administration
department of the Subordination Agent or such Trustee with direct
responsibility for the administration of the transactions contemplated hereby,
and also means with respect to a particular corporate trust matter any officer
of the

 

23

 

Subordination Agent or
such Trustee (as applicable) to whom any corporate trust matter is referred
because of his knowledge of and familiarity with a particular subject,
(ii) with respect to each Liquidity Provider, any authorized officer of
such Liquidity Provider, and (iii) with respect to the Policy Provider,
any authorized officer of the Policy Provider.

 

“Scheduled
Payment” means, with respect to any Equipment Note, (i) any
payment of principal or interest on such Equipment Note (other than an Overdue
Scheduled Payment) due from the obligor thereon or (ii) any payment of
interest on the corresponding Class of Certificates with funds drawn under the
Primary Liquidity Facility for such Class or withdrawn from the Primary Cash
Collateral Account or the Above-Cap Account for such Class (or, in the case of
any Series G-1 Equipment Note or Series G-2 Equipment Note, drawn under the
related Policy), which payment represents the installment of principal at the
stated maturity of such installment of principal on such Equipment Note, the
payment of regularly scheduled interest accrued on the unpaid principal amount
of such Equipment Note, or both; provided that any payment of principal of,
Additional Payment, if any, or interest resulting from the redemption or
purchase of any Equipment Note shall not constitute a Scheduled Payment.

 

“Scheduled
Payment Date” means, with respect to any Scheduled Payment, the
date on which such Scheduled Payment is scheduled to be made.

 

“Section 2.4(a)
Fraction” has the meaning assigned to such term in Section 2.4(a).

 

“Series C
Equipment Notes” means the Series C Equipment Notes issued
pursuant to any Indenture by JetBlue and authenticated by the Loan Trustee
thereunder, and any such Equipment Notes issued in exchange therefor or
replacement thereof pursuant to the terms of such Indenture.

 

“Series G-1
Equipment Notes” means the Series G-1 Equipment Notes
issued pursuant to any Indenture by JetBlue and authenticated by the Loan
Trustee thereunder, and any such Equipment Notes issued in exchange therefor or
replacement thereof pursuant to the terms of such Indenture.

 

“Series G-2
Equipment Notes” means the Series G-2 Equipment Notes
issued pursuant to any Indenture by JetBlue and authenticated by the Loan
Trustee thereunder, and any such Equipment Notes issued in exchange therefor or
replacement thereof pursuant to the terms of such Indenture.

 

“Special
Distribution Date” means with respect to any Special
Payment:  (i) the date chosen by the
Subordination Agent pursuant to Section 2.4(a) for the distribution of
such Special Payment in accordance with this Agreement, whether distributed
pursuant to Section 2.4 or Section 3.2 hereof, (ii) an Election
Distribution Date or (iii) the date chosen by the Subordination Agent
pursuant to Section 3.7(b), 3.7(c) or Section 3.7(e), as the case may
be, for the distribution of such Special Payment in accordance with the
provisions thereof or otherwise designated as a Special Distribution Date.

 

“Special Payment”
means any payment (other than a Scheduled Payment) in respect of, or any
proceeds of, any Equipment Note or Collateral.

 

24

 

“Special Payments
Account” means the Eligible Deposit Account created pursuant to Section 2.2
as a sub-account to the Collection Account.

 

“Special
Termination Drawing” has the meaning assigned to such term in Section 3.6(k).

 

“Special
Termination Notice” with respect to any Primary Liquidity
Facility has the meaning assigned to such term in such Primary Liquidity
Facility.

 

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

 

“Stated Amount”
with respect to any Primary Liquidity Facility, means the Maximum Commitment
(as defined in such Primary Liquidity Facility).

 

“Stated
Expiration Date” has the meaning specified in Section 3.6(d).

 

“Stated Interest
Rate” means for each interest period (i) with respect to
the Class G-1 Certificates, Three-Month LIBOR plus 0.375% per annum,
(ii) with respect to the Class G-2 Certificates, Three-Month LIBOR plus
0.450% per annum and (iii) with respect to the Class C Certificates,
Three-Month LIBOR plus 3.100% per annum; provided, that if a payment default on
any Equipment Note exists on any Regular Distribution Date, the Stated Interest
Rate for each Class of Certificates shall not exceed the applicable Capped
Interest Rate for such Class for the interest period commencing on such Regular
Distribution Date; provided further that, if all of the then continuing payment
defaults on all of the Equipment Notes are cured during such interest period,
the Stated Interest Rate for each Class of Certificates shall revert to the Stated
Interest Rate for such period calculated without giving effect to the
applicable Capped Interest Rate for such Class.

 

“Subordination
Agent” has the meaning assigned to it in the preliminary
statements to this Agreement.

 

“Subordination
Agent Incumbency Certificate” has the meaning assigned to such
term in Section 2.5(a).

 

“Subordination
Agent Representatives” has the meaning assigned to such term in Section 2.5(a).

 

“Substitute
Aircraft” shall have the meaning set forth in the Note Purchase
Agreement.

 

“Successor Trusts”
means, collectively, JetBlue Airways Pass Through Trust 2004-2G-1-S, JetBlue
Airways Pass Through Trust 2004-2G-2-S and JetBlue Airways Pass Through Trust
2004-2C-S.

 

“Tax”
and “Taxes” mean any and
all taxes, levies, duties, tariffs, imposts and other charges of a similar kind
(together with any and all interest, penalties, loss, damage, liability,
expense, additions to tax and additional amounts or costs incurred or imposed
with respect thereto) imposed or otherwise assessed by the United States of
America or by any state, local or

 

25

 

foreign government (or
any subdivision or agency thereof) or other taxing authority, including,
without limitation:  taxes on or with
respect to income, franchises, windfall or other profits, gross receipts,
property, sales, use, capital stock, payroll, employment, social security,
workers’ compensation, unemployment compensation, or net worth; taxes in the
nature of excise, withholding, ad valorem, stamp, transfer, non-recoverable
value added, taxes on goods and services and gains taxes.

 

“Tax Letter”
means that certain Tax Letter dated as of the date hereof among JetBlue, LBBW
and the Subordination Agent with respect to the initial Primary Liquidity Facilities.

 

“Termination
Amount”, with respect to an Above-Cap Liquidity Facility, has
the meaning assigned to such term in such Above-Cap Liquidity Facility.

 

“Termination
Notice” with respect to any Primary Liquidity Facility has the
meaning assigned to such term in such Primary Liquidity Facility.

 

“Three-Month LIBOR” has the meaning
assigned to such term in the applicable Indentures.

 

“Threshold Rating”
means the short-term unsecured debt rating of P-1 by Moody’s and short-term
issuer credit rating of A-1 by Standard & Poor’s for each Liquidity
Provider.

 

“Transfer”
means, with respect to any particular Trust, the transfers contemplated by the
Assignment and Assumption Agreement with respect to such Trust.

 

“Treasury
Regulations” means regulations, including proposed or temporary
regulations, promulgated under the Code. 
References herein to specific provisions of proposed or temporary
regulations shall include analogous provisions of final Treasury Regulations or
other successor Treasury Regulations.

 

“Triggering Event”
means (x) the occurrence of an Indenture Event of Default under all of the
Indentures resulting in a PTC Event of Default with respect to the most senior
Class of Certificates then Outstanding, (y) the Acceleration of all of the
outstanding Equipment Notes (provided that, with respect to the period prior to
the Delivery Period Expiry Date, the aggregate principal balance of such
Equipment Notes is in excess of $300 million) or (z) the occurrence of a
JetBlue Bankruptcy Event.

 

“Trust”
means any of the Class G-1 Trust, the Class G-2 Trust or the
Class C Trust.

 

“Trust Accounts”
has the meaning assigned to such term in Section 2.2(a).

 

“Trust Agreement”
means any of the Class G-1 Trust Agreement, the Class G-2 Trust
Agreement or the Class C Trust Agreement.

 

“Trustee”
means any of the Class G-1 Trustee, the Class G-2 Trustee or the
Class C Trustee.

 

26

 

“Trustee
Incumbency Certificate” has the meaning assigned to such term in
Section 2.5(b).

 

“Trustee
Representatives” has the meaning assigned to such term in Section 2.5(b).

 

“Underwriters”
means the several underwriters listed as such in the Underwriting Agreement.

 

“Underwriting
Agreement” means the Underwriting Agreement dated November 9,
2004 among the Underwriters and JetBlue, relating to the purchase of the
Certificates by the Underwriters, as the same may be amended, supplemented or
otherwise modified from time to time in accordance with its terms.

 

“Unindemnified
Tax” means (i) any Tax imposed on the net income, net worth
or capital, any franchise Tax or similar doing business Tax of the
Subordination Agent, and (ii) any withholding Tax imposed by the United
States (including, without limitation, any withholding Tax imposed by the
United States which is imposed or increased as a result of the Subordination
Agent’s failing to deliver to the Company any certificate or document necessary
to establish that payments under this Agreement are exempt from withholding
Tax).

 

“Written Notice”
means, from the Subordination Agent, any Trustee, any Liquidity Provider or the
Policy Provider, a written instrument executed by the Designated Representative
of such Person.  An invoice delivered by
a Liquidity Provider pursuant to Section 3.1 in accordance with its normal
invoicing procedures shall constitute Written Notice under such Section.

 

“WTC”
has the meaning assigned to such term in the recital of parties to this
Agreement.

 

ARTICLE II

TRUST ACCOUNTS; CONTROLLING PARTY

 

Section 2.1.                                Agreement
to Terms of Subordination; Payments from Monies Received Only.  (a) Each Trustee hereby
(i) acknowledges and agrees to the terms of subordination and distribution
set forth in this Agreement in respect of each Class of Certificates,
(ii) agrees to enforce such provisions and cause all payments in respect
of the Equipment Notes and the Liquidity Facilities and the Policies to be
applied in accordance with the terms of this Agreement and (iii) with
respect to payments in respect of the Equipment Notes received by it, agrees to
allocate such payments first, to interest payable in respect of the
Certificates issued by it, second, to amounts distributable in respect of the
Pool Balance of such Certificates, and third, to Additional Payments, if any,
payable in respect of such Certificates. 
In addition, each Trustee hereby agrees to cause the Equipment Notes
purchased by the related Trust to be registered in the name of the
Subordination Agent or its nominee, as agent and trustee for such Trustee, to
be held in trust by the Subordination Agent solely for the purpose of
facilitating the enforcement of the subordination and other provisions of this
Agreement.

 

(b)                                 Except
as otherwise expressly provided in the next succeeding sentence of this Section 2.1(b),
all payments to be made by the Subordination Agent hereunder shall be made

 

27

 

only from amounts
received by it that constitute Scheduled Payments, Special Payments or other
payments under the Operative Agreements, including payments under Section 7.1
of the Participation Agreements and payments under Sections 6 and 7 of the
Note Purchase Agreement, and only to the extent that the Subordination Agent
shall have received sufficient income or proceeds therefrom to enable it to
make such payments in accordance with the terms hereof.  Each of the Trustees and the Subordination
Agent hereby agrees and, as provided in each Trust Agreement, each
Certificateholder, by its acceptance of a Certificate, each Primary Liquidity
Provider, by entering into the Primary Liquidity Facility to which it is a
party, and the Policy Provider, by entering into the Policy Provider Agreement,
have agreed to look solely to such amounts to the extent available for
distribution to them as provided in this Agreement and to the relevant Deposits
and that none of the Trustees, Loan Trustees, the Subordination Agent or WTC is
personally liable to any of them for any amounts payable or any liability under
this Agreement, any Trust Agreement, any Primary Liquidity Facility, the Policy
Provider Agreement or such Certificate, except (in the case of the
Subordination Agent) as expressly provided herein or (in the case of the
Trustees) as expressly provided in each Trust Agreement or (in the case of the
Loan Trustees) as expressly provided in any Operative Agreement.

 

Section 2.2.                                Trust
Accounts.  (a) Upon the
execution of this Agreement, the Subordination Agent shall establish and
maintain in its name (i) the Collection Account as an Eligible Deposit
Account, bearing a designation clearly indicating that the funds deposited
therein are held in trust for the benefit of the Trustees, the
Certificateholders, the Primary Liquidity Providers and the Policy Provider,
(ii) as a sub-account in the Collection Account, the Special Payments
Account as an Eligible Deposit Account, bearing a designation clearly
indicating that the funds deposited therein are held in trust for the benefit
of the Trustees, the Certificateholders, the Primary Liquidity Providers and
the Policy Provider, (iii) (x) a Class G-1 Policy Account as an
Eligible Deposit Account bearing a designation clearly indicating that the
funds deposited therein are held in trust for the benefit of the Class G-1
Certificateholders and (y) a Class G-2 Policy Account as an Eligible
Deposit Account bearing a designation clearly indicating that the funds
deposited therein are held in trust for the benefit of the Class G-2
Certificateholders, (iv) the Reserve Account as an Eligible Deposit
Account, bearing a designation clearly indicating that the funds deposited
therein are held in trust for the benefit of the Trustees and the
Certificateholders, and (v) a Class G-1 Above-Cap Account, a Class G-2
Above-Cap Account and a Class C Above-Cap Account, each bearing a designation
clearly indicating that the funds deposited therein are held in trust for the
benefit of the related Trustee and Certificateholders.  The Subordination Agent shall establish and
maintain the Cash Collateral Accounts pursuant to and under the circumstances
set forth in Section 3.6(f) hereof. 
Upon such establishment and maintenance under Section 3.6(f)
hereof, the Cash Collateral Accounts shall, together with the Collection
Account, the Policy Accounts and the Above-Cap Accounts, constitute the “Trust Accounts” hereunder.  Without limiting the foregoing, all monies
credited to the Trust Accounts shall be, and shall remain, the property of the
relevant Trust(s).

 

(b)                                 Funds
on deposit in the Trust Accounts shall be invested and reinvested by the
Subordination Agent in Eligible Investments selected by the Subordination Agent
if such investments are reasonably available and have maturities no later than
the earlier of (i) 90 days following the date of such investment and
(ii) the Business Day immediately preceding the Regular Distribution Date
or the date of the related distribution pursuant to Section 2.4 hereof, as

 

28

 

the case may be,
next following the date of such investment (provided that the Subordination
Agent shall invest and reinvest funds on deposit in the Above-Cap Accounts and
the Above-Cap Reserve Accounts in the manner specified in Schedule 2.2(b)
attached hereto, subject to the foregoing limitation on maturity of such
investment); provided, further, that following the making of (i) a
Downgrade Drawing or a Special Termination Drawing under any Primary Liquidity
Facility, the Subordination Agent shall invest and reinvest such amounts in
Eligible Investments at the direction of JetBlue or (ii) a Non-Extension
Drawing under any Primary Liquidity Facility or a Downgrade Drawing under any
Primary Liquidity Facility with respect to which the relevant Primary Liquidity
Provider has elected pursuant to the proviso in Section 3.6(e)(i)(C)
hereof not to be replaced, the Subordination Agent shall invest and reinvest
such amounts in the Primary Cash Collateral Accounts in Eligible Investments
pursuant to the written instructions of the Primary Liquidity Provider funding
such Non-Extension Drawing or Downgrade Drawing; provided further, however,
that notwithstanding the foregoing, upon the occurrence and during the
continuation of a Triggering Event, the Subordination Agent shall invest and
reinvest such amounts (other than amounts in the Cash Collateral Accounts as a
result of a Non-Extension Drawing or Downgrade Drawing, which shall be governed
by the foregoing proviso) in Eligible Investments in accordance with the
written instructions of the Controlling Party. 
Unless otherwise expressly provided in this Agreement (including, without
limitation, with respect to Investment Earnings on amounts on deposit in the
Primary Cash Collateral Accounts, Above-Cap Reserve Accounts and in the Above-Cap
Accounts, in each case, pursuant to Section 3.6(f) hereof), any Investment
Earnings shall be deposited in the Collection Account when received by the
Subordination Agent and shall be applied by the Subordination Agent in the same
manner as the other amounts on deposit in the Collection Account are to be
applied and any losses shall be charged against the principal amount invested,
in each case net of the Subordination Agent’s reasonable fees and expenses in
making such investments.  The
Subordination Agent shall not be liable for any loss resulting from any
investment, reinvestment or liquidation required to be made under this
Agreement other than by reason of its willful misconduct or gross negligence
or, with respect to the handling or transfer of funds, its own negligence.  Eligible Investments and any other investment
required to be made hereunder shall be held to their maturities except that any
such investment may be sold (without regard to its maturity) by the
Subordination Agent without instructions whenever such sale is necessary to
make a distribution required under this Agreement.  Uninvested funds held hereunder shall not
earn or accrue interest.

 

(c)                                  The
Subordination Agent shall possess all right, title and interest in all funds on
deposit from time to time in the Trust Accounts and in all proceeds thereof
(including all income thereon, except as otherwise expressly provided herein
with respect to Investment Earnings). 
The Trust Accounts shall be held in trust by the Subordination Agent
under the sole dominion and control of the Subordination Agent for the benefit
of the Trustees, the Certificateholders, the Liquidity Providers and the Policy
Provider, as the case may be.  If, at any
time, any of the Trust Accounts or the Reserve Account ceases to be an Eligible
Deposit Account, the Subordination Agent shall within 10 Business Days (or such
longer period, not to exceed 30 calendar days, to which the Policy Provider,
the Primary Liquidity Providers and each Rating Agency may consent) establish a
new Collection Account, Special Payments Account, Policy Account, Reserve
Account, Cash Collateral Account or Above-Cap Account, as the case may be, as
an Eligible Deposit Account and shall transfer any cash and/or any investments
to such new Collection Account, Special Payments Account, Policy Account,
Reserve Account,

 

29

 

Cash Collateral
Account, or Above-Cap Account as the case may be.  So long as WTC is an Eligible Institution,
the Trust Accounts and Reserve Account shall be maintained with it as Eligible
Deposit Accounts.

 

(d)                                 The
Subordination Agent shall possess all right, title and interest in all funds on
deposit from time to time in the Reserve Account.  The Reserve Account shall be used by the
Subordination Agent solely to fund the Post-Default Appraisals when required to
be obtained pursuant to Section 4.1 hereof.

 

Section 2.3.                                Deposits
to the Collection Account and Special Payments Account.  (a) The Subordination Agent shall, upon
receipt thereof, deposit in the Collection Account all Scheduled Payments
received by it (other than any Scheduled Payment which by the express terms
hereof is to be deposited to the Policy Account or a Cash Collateral Account).

 

(b)                                 The
Subordination Agent shall, on each date when one or more Special Payments are
made to the Subordination Agent as holder of the Equipment Notes, deposit in
the Special Payments Account the aggregate amount of such Special Payments.

 

Section 2.4.                                Distributions
of Special Payments.  (a) Notice
of Special Payment.  Except as
provided in Section 2.4(c) or 2.7, upon receipt by the Subordination
Agent, as registered holder of the Equipment Notes, of any notice of a Special
Payment (or, in the absence of any such notice, upon receipt by the
Subordination Agent of a Special Payment), the Subordination Agent shall
promptly give notice thereof to each Trustee, the Primary Liquidity Providers
and the Policy Provider.  The
Subordination Agent shall promptly calculate the amount of the redemption or
purchase of Equipment Notes, the amount of any Overdue Scheduled Payment or the
proceeds of Equipment Notes or the Collateral, as the case may be, comprising
such Special Payment under the applicable Indenture or Indentures and shall
promptly send to each Trustee, the Primary Liquidity Providers and the Policy
Provider a Written Notice of such amount and the amount allocable to each
Trust.  Such Written Notice shall also
set the distribution date for such Special Payment, which shall be the Business
Day which immediately follows the later to occur of (x) the 15th day after
the date of such Written Notice or (y) the date the Subordination Agent
has received or expects to receive such Special Payment.  Amounts on deposit in the Special Payments
Account shall be distributed in accordance with Article III hereof;
provided, that if the Special Payment to be distributed on any Special
Distribution Date results from the redemption, purchase or prepayment of any
Equipment Note prior to the occurrence of a payment default under any
Indenture, the amount of accrued and unpaid Liquidity Expenses and Policy
Expenses which are not yet due that are payable pursuant to clause “second” of Section 3.2
and any unpaid amounts which are not yet due that are payable to the Policy
Provider under the Policy Fee Letter pursuant to clause “eleventh” of Section 3.2,
shall be multiplied by a fraction, the numerator of which shall be the
aggregate outstanding principal amount of Equipment Notes being redeemed,
purchased or prepaid on such Special Distribution Date, and the denominator of
which shall be the aggregate outstanding principal amount of all Equipment
Notes (the “Section 2.4(a) Fraction”).

 

(b)                                 Investment
of Amounts in Special Payments Account. 
Any amounts on deposit in the Special Payments Account prior to the
distribution thereof pursuant to Article III

 

30

 

hereof shall be
invested in accordance with Section 2.2(b).  Investment Earnings on such investments shall
be distributed in accordance with Article III hereof.

 

(c)                                  Certain
Payments.  Except for amounts
constituting Liquidity Obligations, Policy Expenses and Policy Provider
Obligations, which shall be distributed on a Distribution Date as provided in Section 2.4(a)
or 3.2 hereof, the Subordination Agent will distribute promptly upon receipt
thereof (i) any indemnity payment or expense reimbursement received by it
from JetBlue in respect of any Trustee, any Liquidity Provider, any Policy
Provider, any Paying Agent, any Depositary or any Escrow Agent (collectively,
the “Payees”) and (ii) any
fees or premium received by it from JetBlue under any Operative Agreement in
respect of any Payee, directly to the Payee entitled thereto.

 

Section 2.5.                                Designated
Representatives.  (a) With the
delivery of this Agreement, the Subordination Agent shall furnish to each
Liquidity Provider, the Policy Provider and each Trustee, and from time to time
thereafter may furnish to each Liquidity Provider, the Policy Provider and each
Trustee, at the Subordination Agent’s discretion, or upon any Liquidity
Provider’s, the Policy Provider’s or Trustee’s request (which request shall not
be made more than one time in any 12-month period), a certificate (a “Subordination Agent Incumbency Certificate”)
of a Responsible Officer of the Subordination Agent certifying as to the
incumbency and specimen signatures of the officers of the Subordination Agent
and the attorney-in-fact and agents of the Subordination Agent (the “Subordination Agent Representatives”)
authorized to give Written Notices on behalf of the Subordination Agent
hereunder.  Until each Liquidity
Provider, the Policy Provider and Trustee receives a subsequent Subordination
Agent Incumbency Certificate, it shall be entitled to rely on the last
Subordination Agent Incumbency Certificate delivered to it hereunder.

 

(b)                                 With
the delivery of this Agreement, each Trustee shall furnish to the Subordination
Agent, and from time to time thereafter may furnish to the Subordination Agent,
at such Trustee’s discretion, or upon the Subordination Agent’s request (which
request shall not be made more than one time in any 12-month period), a
certificate (a “Trustee Incumbency
Certificate”) of a Responsible Officer of such Trustee certifying as
to the incumbency and specimen signatures of the officers of such Trustee and
the attorney-in-fact and agents of such Trustee (the “Trustee Representatives”) authorized to
give Written Notices on behalf of such Trustee hereunder.  Until the Subordination Agent receives a
subsequent Trustee Incumbency Certificate, it shall be entitled to rely on the
last Trustee Incumbency Certificate delivered to it hereunder.

 

(c)                                  With
the delivery of this Agreement, each Liquidity Provider and the Policy Provide
shall furnish to the Subordination Agent, and from time to time thereafter may
furnish to the Subordination Agent, at such Liquidity Provider’s or Policy
Provider’s discretion, or upon the Subordination Agent’s request (which request
shall not be made more than one time in any 12-month period), a certificate
(each a “Provider Incumbency Certificate”)
of any Responsible Officer of such Liquidity Provider or Policy Provider
certifying as to the incumbency and specimen signatures of any officer,
attorney-in-fact, agent or other designated representative of such Liquidity
Provider or Policy Provider (in each case the “Provider Representatives” and, together with the Subordination
Agent Representatives and the Trustee Representatives, the “Designated Representatives”) authorized to
give Written Notices on

 

31

 

behalf of such
Liquidity Provider or Policy Provider hereunder.  Until the Subordination Agent receives a
subsequent Provider Incumbency Certificate, it shall be entitled to rely on the
last Provider Incumbency Certificate delivered to it hereunder by the relevant
Liquidity Provider or the Policy Provider.

 

Section 2.6.                                Controlling
Party.  (a) Except as provided
in Section 2.6(c), 2.6(d) and 9.1(b) hereof, the Trustees, the Liquidity
Providers and the Policy Provider hereby agree that, with respect to any
Indenture at any given time, the Loan Trustee thereunder will be directed
(including, without limitation, any direction to vote the Equipment Notes in
any bankruptcy proceeding of JetBlue) by the Controlling Party in accordance
with the terms and conditions hereof.

 

(b)                                 The
Person who shall be the “Controlling Party” with respect to any Indenture shall
be:  (x) the Policy Provider or,
(i) if a Policy Provider Default has occurred and is continuing, or
(ii) if the Policy Provider has been released from its obligations under
the Policies (and such Policies have been returned to the Policy Provider) and
all Policy Provider Amounts have been paid in full, until the Final
Distribution on the Class G-1 and Class G-2 certificates has been made, the
Class G-1 Trustee and Class G-2 Trustee, jointly, acting upon the
instructions of the holders of a majority of the aggregate fractional undivided
interests in both the Class G-1 Trust and Class G-2 Trust acting as a single
class; and (y) upon payment of (i) Final Distributions to the holders
of the Class G-1 Certificates and the Class G-2 Certificates and
(ii) unless a Policy Provider Default has occurred and is continuing, all
Policy Provider Amounts, the Class C Trustee; provided that, if the
Policy Provider makes a payment in full on a Policy Drawing in respect of an
Avoided Payment after the payment of the Final Distributions to the
Class G-1 and Class G-2 Certificateholders, so long as no Policy Provider
Default has occurred and is continuing, the Policy Provider will be the
Controlling Party until no Policy Provider Amounts remain outstanding, and
thereafter, the Class C Trustee. 
For purposes of giving effect to the foregoing provisions of Section 2.6(a)
above and this Section 2.6(b), the Trustees (other than the Controlling
Party) irrevocably agree (and the Certificateholders (other than the
Certificateholders represented by the Controlling Party) shall be deemed to
agree by virtue of their purchase of Certificates) that the Subordination
Agent, as record holder of the Equipment Notes, shall exercise its voting
rights in respect of the Equipment Notes as directed by the Controlling Party,
subject to Article IX hereof, and any vote so exercised shall be binding
upon the Trustees and all Certificateholders.

 

The Subordination Agent shall give written notice to
all of the other parties to this Agreement promptly upon a change in the
identity of the Controlling Party.  Each
of the parties hereto agrees that it shall not exercise any of the rights of
the Controlling Party at such time as it is not the Controlling Party
hereunder; provided, however, that nothing herein contained shall prevent or
prohibit any Non-Controlling Party from exercising such rights as shall be
specifically granted to such Non-Controlling Party hereunder and under the
other Operative Agreements.

 

(c)                                  Notwithstanding
the foregoing, at any time (A) after 18 months from the earliest to occur
of (i) the date on which the entire Available Amount under any Primary
Liquidity Facility shall have been drawn (excluding a Downgrade Drawing, a Non-Extension
Drawing or a Special Termination Drawing but including a Final Drawing or a
Downgrade Drawing, Non-Extension Drawing or Special Termination Drawing that
has been converted to a

 

32

 

Final Drawing under
such Primary Liquidity Facility), (ii) the date on which the entire amount
of any Downgrade Drawing, Non-Extension Drawing or Special Termination Drawing
under a Primary Liquidity Facility shall have become an “Applied Downgrade
Advances” or “Applied Non-Extension Advances” or “Applied Special Termination
Advances”, as the case may be, under and as defined in such Primary Liquidity
Facility and (iii) the date on which all Equipment Notes shall have been
Accelerated (provided that, with respect to the period prior to the Delivery
Period Expiry Date, such Equipment Notes have an aggregate outstanding
principal balance of in excess of $300 million) and (B) (i) in the
case of clause (A)(i) above, such amount drawn shall have remained
unreimbursed during the 18-month period referred to in clause (A) above
and remains unreimbursed at such time and (ii) in the case of
clause (A)(ii) above, such “Applied Downgrade Advances” or “Applied
Non-Extension Advances” or “Applied Special Termination Advances” shall have
remained “Applied Downgrade Advances” or “Applied Non-Extension Advances” or “Applied
Special Termination Advances”, as the case may be, during the 18-month period
referred to in clause (A) above and remain “Applied Downgrade Advances” or
“Applied Non-Extension Advances” or “Applied Termination Advances”, as the case
may be, at such time, the Primary Liquidity Provider with the highest
outstanding amount of Liquidity Obligations owed to it (so long as such Primary
Liquidity Provider has not defaulted in its obligation to make any Drawing
under any of its Primary Liquidity Facilities) shall have the right to elect,
by Written Notice to the Subordination Agent, the Policy Provider and each of
the Trustees, to become the Controlling Party hereunder with respect to any
Indenture at any time from and including the last day of such 18-month period; provided,
however, that if within 15 Business Days after its receipt of any such
written notice from such Primary Liquidity Provider the Policy Provider pays to
the Class G-1 Primary Liquidity Provider, the Class G-2 Primary
Liquidity Provider and the Class C Primary Liquidity Provider all
outstanding Drawings under each Primary Liquidity Facility together with
accrued interest thereof (as so determined) in respect of the Class G-1
Primary Liquidity Facility, the Class G-2 Primary Liquidity Facility and
the Class C Primary Liquidity Facility, respectively, then the Policy
Provider rather than such Primary Liquidity Provider shall be the Controlling
Party (x) so long as no Policy Provider Default has occurred and is
continuing and (y) the Policy Provider thereafter pays to each of the
Class G-1 and Class G-2 Primary Liquidity Providers all subsequent
Drawings, together with accrued interest thereon, under the respective Primary
Liquidity Facility as and when such obligations become due (which payments
shall be applied by such Primary Liquidity Provider as repayments of such
Drawings and accrued interest thereon), provided, further, however, that upon
any such Policy Provider Default or the failure to comply with clause (y) of
this Section 2.6(c), such Primary Liquidity Provider, if it so elects and
if Liquidity Obligations owing to it remain outstanding, or, if it does not so
elect or if no such Liquidity Obligations remain outstanding, the Person
determined to be the Controlling Party in accordance with Section 2.06(b),
shall become the Controlling Party.

 

(d)                                 Notwithstanding
the foregoing, if any holders of the Class C Certificates exercise their right
under Section 2.7 hereof to purchase all of the Series G-1 and Series G-2
Equipment Notes issued under an Indenture, the holders of the majority in
aggregate unpaid principal amount of such Series G-1 and Series G-2 Equipment
Notes shall be the Controlling Party with respect to such Indenture.

 

(e)                                  The
exercise of remedies by the Controlling Party under this Agreement shall be
expressly limited by Section 4.1(a)(ii) hereof.

 

33

 

(f)                                    The
Controlling Party shall not be entitled to require or obligate any Non-Controlling
Party to provide funds necessary to exercise any right or remedy hereunder.

 

(g)                                 Notwithstanding
anything contained herein to the contrary, neither the Controlling Party nor
the Subordination Agent shall be authorized or empowered to do anything that
would cause any Trust to fail to qualify as a “grantor trust” for federal
income tax purposes.

 

Section 2.7.                                Buy
Out Right.  (a) If an Indenture Event
of Default under an Indenture has occurred and is continuing, (A) during
the period commencing upon the occurrence of such Indenture Event of Default
and ending on the date occurring six months after the earlier of (x) the
Acceleration of the Equipment Notes issued under such Indenture or (y) the
occurrence of a JetBlue Bankruptcy Event and (B) at any time after such
Indenture Event of Default has occurred and been continuing for five years
without an Actual Disposition Event occurring with respect to the Equipment
Notes issued under such Indenture, with 30 days’ written notice to the Policy
Provider, the Subordination Agent, the Class G-1 Trustee and Class G-2 Trustee
and the Class C Certificateholders, all, but not less than all, of the Series G-1
and Series G-2 Equipment Notes issued with respect to such Indenture may be
purchased from the Class G-1 Trustee and the Class G-2 Trustee by a holder of
the Class C Certificates for the amounts set forth in clause (b)
below.  If prior to the end of such 30
day period, any other holder of the Class C Certificates notifies the
purchasing Class C Certificateholder, the Policy Provider and the Subordination
Agent that it wants to participate in such purchase, then such other
Certificateholder may join with the purchasing Certificateholder to purchase
such Equipment Notes pro rata based on the interest in the Class C Trust held
by each Certificateholder.

 

(b)                                 Upon
each purchase by Class C Certificateholders of Series G-1 and Series G-2
Equipment Notes pursuant to Section 2.7(a) (such Certificateholders, the “Class C Purchasers”), on such date of
purchase (each, a “Purchase Date”)
the Class C Purchasers shall (i) pay to the Class G-1 Trustee and the
Class G-2 Trustee the respective outstanding principal amount of such Series
G-1 or Series G-2 Equipment Note held by such Trustee (less the amount of any
Policy Drawings paid in respect of principal of such Equipment Note), together
with any accrued and unpaid interest in respect of such Equipment Notes (but
not to exceed the amount of interest payable on that portion of the Class G-1
or Class G-2 Certificates corresponding to such Series G-1 or Series G-2
Equipment Note), to but not including such Purchase Date, and Break Amount, if
any, but without any Prepayment Premium and (ii) pay to the Policy
Provider the amount of any Policy Drawings made by the Policy Provider in
respect of such Equipment Note.  The
amounts received by the Class G-1 and Class G-2 Trustees pursuant to this
clause (b) attributable to principal of the purchased Series G-1 and G-2
Equipment Notes shall be distributed to the holders of the Class G-1 and Class
G-2 Certificates, respectively, in reduction of the Pool Balance of their
Certificates and the amounts attributable to interest shall be distributed to
such Certificateholders as interest in respect of the amount of such reduction
in the Pool Balance.

 

(c)                                  On
each Purchase Date, the Class C Purchasers shall also pay (i) to each Primary
Liquidity Provider an amount equal to the product of (A) the amount of any
outstanding Liquidity Obligations owing to such Primary Liquidity Provider as
of such Purchase Date and (B) the Buy-Out Fraction and (ii) to the Policy
Provider an amount equal to the product of (A) the amount of any outstanding
Policy Provider Obligations owing to the Policy Provider in

 

34

 

respect of (x) any
Interest Drawings paid by the Policy Provider due to a failure of any Liquidity
Provider to perform its obligations under the related Liquidity Facility and
any accrued and unpaid interest on such Interest Drawings and (y) if the Policy
Provider has elected to pay the Primary Liquidity Provider all outstanding
Drawings and interest thereon owing to the Primary Liquidity Provider, the
amount of such outstanding Drawings and interest thereon (after application of
any available funds in the applicable Primary Cash Collateral Account resulting
from a Non-Extension Drawing or Downgrade Drawing paid by such Primary
Liquidity Provider) and (B) the Buy-Out Fraction.  For purposes of this Section 2.7(c), on
any Purchase Date, the “Buy-Out Fraction” shall be a fraction, the numerator of
which is the aggregate amount of interest due and owing on such Purchase Date
on the Equipment Notes issued under the Indenture pursuant to which the Series
G-1 and Series G-2 Equipment Notes being purchased on such Purchase Date were
issued, and the denominator of which will be the aggregate amount of interest
due and owing on such Purchase Date on all Equipment Notes issued under
Indentures with respect to which an Actual Disposition Event has not occurred.  For the avoidance of doubt, the payment by
the Class C Purchasers of any Liquidity Obligations and/or Policy Provider
Obligations pursuant to this clause (c) shall not discharge, alter or
modify any rights, duties or obligations of the Primary Liquidity Provider or
the Policy Provider under the Primary Liquidity Facilities or the Policies,
respectively.

 

(d)                                 [Intentionally
Omitted]

 

(e)                                  Upon
payment of the Liquidity Obligations and the Policy Provider Obligations, if
any, pursuant to Section 2.7(c), the Class C Purchasers shall be
subrogated to the right of the Primary Liquidity Providers in respect of such
Liquidity Obligations (or Policy Provider in respect of such Policy Provider
Obligations) pursuant to Sections 2.4(a), 2.6(c) and 3.2 and shall rank in
right of payment equally with any Liquidity Obligations owing to the Primary
Liquidity Providers or Policy Providers, as the case may be.  Unless (i) a Performing Note Deficiency
exists and a Liquidity Event of Default shall have occurred and be continuing
with respect to the relevant Primary Liquidity Facility or (ii) a Final
Drawing, a Downgrade Drawing, a Non-Extension Drawing or a Special Termination
Drawing shall have occurred with respect to such Primary Liquidity Facility,
the initial Available Amount under each Primary Liquidity Facility shall be
reinstated (but not in excess of the related Required Amount) pro tanto to the
extent of reimbursements received by the Class C Purchasers in respect of that
portion of the Liquidity Obligations representing the principal portion of
Drawings under the related Primary Liquidity Facility or such Policy Provider
Obligations by an amount equal to the product of (i) the then Required Amount
(calculated as if no Interest Drawing is outstanding), and (ii) a fraction, the
numerator of which is the amount of such reimbursement (assuming that Interest
Drawings are reimbursed in the order in which they were made) in respect of
principal of such Interest Drawing and the denominator of which is the Required
Amount at the date of such Interest Drawing (calculated as if no Interest
Drawing was then outstanding and on the basis of the lower of the applicable
Stated Interest Rate and the applicable Capped Interest Rate as of such date).

 

(f)                                    After
the holders of the Class C Certificates have purchased any Series G-1 and
Series G-2 Equipment Notes in accordance with Section 2.7(a), any proceeds
or payments made with respect to such Series G-1 and Series G-2 Equipment Notes
(other than interest accrued on such Equipment Notes prior to the Regular
Distribution Date occurring immediately

 

35

 

prior to the
Purchase Date for such Equipment Notes, which amount of interest will be paid
to the Subordination Agent for application in accordance with Article III
hereof) will be paid directly to the holders of such Equipment Notes pro rata
and will not be subject to application under Article III hereof.  Any proceeds or payments made with respect to
any Series C Equipment Notes issued under the related Indenture will continue
to be paid to the Subordination Agent and be applied in accordance with Article III
hereof.

 

ARTICLE III

RECEIPT, DISTRIBUTION AND APPLICATION OF AMOUNTS RECEIVED

 

Section 3.1.                                Written
Notice of Distribution.  (a) Prior
to the occurrence of a Triggering Event, no later than 3:00 P.M. (New York City
time) on the Business Day immediately preceding each Regular Distribution Date
(or Special Distribution Date for purposes of Section 2.4(b) hereof, as
the case may be), each of the following Persons shall deliver to the
Subordination Agent a Written Notice setting forth the following information as
at the close of business on such Business Day:

 

(i)                                     With
respect to the Class G-1 Certificates and Class G-2 Certificates, the
Class G-1 Trustee and Class G-2 Trustee shall separately set forth
the amounts to be paid to it in accordance with clauses “eighth” and “tenth” of
Section 3.2 hereof;

 

(ii)                                  With
respect to the Class C Certificates, the Class C Trustee shall
separately set forth the amounts to be paid to it in accordance with clauses “ninth”,
“twelfth” and “thirteenth” of Section 3.2 hereof;

 

(iii)                               With
respect to each Primary Liquidity Facility, the Primary Liquidity Provider
thereunder shall separately set forth the amounts to be paid to it in
accordance with clauses “‘first”, “second”, “third”, “fourth” and “fifth” of Section 3.2
hereof;

 

(iv)                              The
Policy Provider shall set forth the amounts to be paid to it in accordance with
clauses “first”, “second”, “third”, “fourth”, “eleventh” and “fourteenth” of Section 3.2
hereof; and

 

(v)                                 Each
Trustee shall set forth the amounts to be paid to it in accordance with clause “seventh”
of Section 3.2 hereof.

 

The notices
required under this Section 3.1(a) may be in the form of a schedule or
similar document provided to the Subordination Agent by the parties referenced
therein or by any one of them, which schedule or similar document may
state that, unless there has been a prepayment of the Certificates, such schedule or
similar document is to remain in effect until any substitute notice or
amendment shall be given to the Subordination Agent by the party providing such
notice.

 

(b)                                 Following
the occurrence of a Triggering Event, the Subordination Agent shall request the
following information from the following Persons, and each of the following

 

36

 

Persons shall,
upon the request of the Subordination Agent, deliver a Written Notice to the
Subordination Agent setting forth for such Person the following information:

 

(i)                                     With
respect to the Class G-1 Certificates and Class G-2 Certificates, the
Class G-1 Trustee and Class G-2 Trustee shall separately set forth
the amounts to be paid to it in accordance with clauses “first”, “seventh” (to
reimburse payments made by such Trustee or the Class G-1
Certificateholders and Class G-2 Certificateholders pursuant to subclause
(ii) or (iv) of clause “first” and subclauses (ii) and (iii) of clause “seventh”
of Section 3.2 hereof), “eighth” and “tenth” of Section 3.2 hereof;

 

(ii)                                  With
respect to the Class C Certificates, the Class C Trustee shall
separately set forth the amounts to be paid to it in accordance with clauses “first”,
“seventh” (to reimburse payments made by such Trustee or the Class C
Certificateholders pursuant to subclause (ii) or (iv) of clause “first” and
subclauses (ii) and (iii) of clause “sixth” of Section 3.2 hereof), “ninth”,
“twelfth” and “thirteenth” of Section 3.2 hereof;

 

(iii)                               With
respect to each Primary Liquidity Facility, the Primary Liquidity Provider
thereunder shall separately set forth the amounts to be paid to it in
accordance with subclauses (iii) and (iv) of clause “first” of Section 3.2
hereof, subclause (i) of clause “second” and clauses “third”, “fourth” and “fifth”
of Section 3.2 hereof;

 

(iv)                              The
Policy Provider shall separately set forth amounts to be paid to it in
accordance with subclauses (iii) and (iv) of clause “first” of Section 3.2
hereof, subclause (ii) of clause “second”, subclauses (ii) and (iii) of clause “third”,
subclause (II) of clause “fourth”, clause “eleventh” and clause “fourteenth” of
Section 3.2 hereof; and

 

(v)                                 Each
Trustee shall set forth the amounts to be paid in accordance with clause “seventh”
of Section 3.2 hereof.

 

(c)                                  At
such time as a Trustee, a Primary Liquidity Provider or the Policy Provider
shall have received all amounts owing to it (and, in the case of a Trustee, the
Certificateholders for which it is acting) pursuant to Section 2.4, 3.2 or
3.7 hereof, as applicable, and, in the case of a Primary Liquidity Provider or
the Policy Provider, its commitment or obligations under the related Primary
Liquidity Facility or the Policy, as the case may be, shall have terminated or
expired, such Person shall, by a Written Notice, so inform the Subordination
Agent and each other party to this Agreement.

 

(d)                                 As
provided in Section 6.5 hereof, the Subordination Agent shall be fully
protected in relying on any of the information set forth in a Written Notice
provided by any Trustee, any Primary Liquidity Provider or the Policy Provider
pursuant to paragraphs (a) through (c) above and shall have no independent
obligation to verify, calculate or recalculate any amount set forth in any
Written Notice delivered in accordance with such paragraphs.

 

(e)                                  Any
Written Notice delivered by a Trustee, a Liquidity Provider, the Policy
Provider or the Subordination Agent, as applicable, pursuant to Section 3.1(b),
3.1(c) or 3.7 hereof, if made prior to 10:00 A.M. (New York City time) on any
Business Day shall be effective on the date delivered (or if delivered later on
a Business Day or if delivered on a day

 

37

 

which is not a
Business Day shall be effective as of the next Business Day).  Subject to the terms of this Agreement, the
Subordination Agent shall as promptly as practicable comply with any such
instructions; provided, however, that any transfer of funds pursuant to any
instruction received after 10:00 A.M. (New York City time) on any Business Day
may be made on the next succeeding Business Day.

 

(f)                                    In
the event the Subordination Agent shall not receive from any Person any
information set forth in paragraph (a) or (b) above which is required to enable
the Subordination Agent to make a distribution to such Person pursuant to Section 2.4
or 3.2 hereof, the Subordination Agent shall request such information and,
failing to receive any such information, the Subordination Agent shall not make
such distribution(s) to such Person.  In
such event, the Subordination Agent shall make distributions pursuant to
clauses “first” through “sixteenth” of Section 3.2 to the extent it shall
have sufficient information to enable it to make such distributions, and shall
continue to hold any funds remaining, after making such distributions, until
the Subordination Agent shall receive all necessary information to enable it to
distribute any funds so withheld.

 

(g)                                 On
such dates (but not more frequently than monthly) as any Liquidity Provider,
the Policy Provider or any Trustee shall request, but in any event
automatically at the end of each calendar quarter, the Subordination Agent
shall send to such party a written statement reflecting all amounts on deposit
with the Subordination Agent pursuant to Section 3.1(f) hereof and, in the
case of the quarterly report, the amounts distributed on each Regular
Distribution Date and any Special Distribution Date occurring during the
quarter then ended.

 

Section 3.2.                                Distribution
of Amounts on Deposit in the Collection Account.  Except as otherwise provided in
Sections 2.4, 3.1(f), 3.4 and 3.6(b), amounts on deposit in the Collection
Account shall be promptly distributed on each Regular Distribution Date or
amounts on deposit in the Special Payments Account in the case of any Special
Payment, on the Special Distribution Date thereof in the following order of
priority and in accordance with the information provided to the Subordination
Agent pursuant to Section 3.1(a) hereof (if applicable):

 

first, such amount as shall be
required to reimburse (i) the Subordination Agent for any reasonable
out-of-pocket costs and expenses actually incurred by it (to the extent not
previously reimbursed) in the protection of, or the realization of the value
of, the Equipment Notes or any Collateral, shall be applied by the Subordination
Agent in reimbursement of such costs and expenses, (ii) each Trustee for
any amounts of the nature described in clause (i) above actually incurred by it
under the applicable Trust Agreement (to the extent not previously reimbursed),
shall be distributed to such Trustee, (iii) each of the Policy Provider
and the Primary Liquidity Provider for any amounts of the nature described in
clause (i) above actually incurred by it (to the extent not previously
reimbursed), shall be distributed to the Policy Provider or Liquidity Provider,
as the case may be, (iv) any Primary Liquidity Provider, the Policy
Provider or any Certificateholder for payments, if any, made by it to the
Subordination Agent or any Trustee in respect of amounts described in clause
(i) above actually incurred by it (to the extent not previously reimbursed),
shall be distributed to the Primary Liquidity Provider, the Policy Provider or
such Certificateholder and (v) if the Subordination Agent shall

 

38

 

have requested the
initial Post-Default Appraisals, to fund or replenish the Reserve Account up to
the Reserve Amount, but in no event (other than the initial funding of the
Reserve Account) more than $25,000 in the aggregate during any calendar year,
shall be distributed to the Subordination Agent, in each such case, pro rata on
the basis of all amounts described in clauses (i) through (v) above;

 

second, such amount then remaining
as shall be required to pay (i) all accrued and unpaid Liquidity Expenses
owed to each Primary Liquidity Provider and (ii) all accrued and unpaid
Policy Expenses owed to the Policy Provider, shall be distributed to each
Primary Liquidity Provider and the Policy Provider pro rata on the basis of the
amount of Liquidity Expenses and Policy Expenses owed to each Primary Liquidity
Provider and the Policy Provider;

 

third, such amount then remaining as
shall be required to pay (i) the aggregate amount of interest accrued and
unpaid on all Liquidity Obligations (at the rate, or in the amount, provided in
the applicable Primary Liquidity Facility) (determined after the application of
the proceeds of any Excess Interest Policy Drawing or other payment by the
Policy Provider to the applicable Primary Liquidity Provider in accordance with
the provisions of Section 2.6(c)), (ii) the aggregate amount of any
Policy Provider Interest Obligations, (iii) if the Policy Provider has
elected pursuant to the proviso to Section 2.6(c) to pay to each Primary
Liquidity Provider all outstanding Drawings and interest thereon owing to such
Primary Liquidity Provider under the applicable Primary Liquidity Facility (to
the extent not included in the definition of Excess Reimbursement Obligations),
the amount of such payment made to such Primary Liquidity Provider attributable
to interest accrued on such Drawings, and (iv) if one or more Special
Termination Drawings have been made under the Primary Liquidity Facilities that
have not been converted into a Final Drawing, the outstanding amount of such
Special Termination Drawings, shall be distributed to the Primary Liquidity
Provider and the Policy Provider pro rata on the basis of the amount of such
Liquidity Obligations owed to such Primary Liquidity Provider and the amount of
such Policy Provider Obligations payable under this clause “third” to the
Policy Provider;

 

fourth, such amount then remaining
as shall be required (I)(A) if any Primary Cash Collateral Account had been
previously funded as provided in Section 3.6(f), unless (i) a
Performing Note Deficiency exists and a Liquidity Event of Default shall have
occurred and be continuing with respect to the relevant Primary Liquidity
Facility or (ii) a Final Drawing shall have occurred with respect to such
Primary Liquidity Facility, to fund such Primary Cash Collateral Account up to
its Required Amount (calculated as if there are no unreimbursed Interest
Drawings under such Primary Liquidity Facility) shall be deposited in such
Primary Cash Collateral Account, (B) if any Primary Liquidity Facility shall
become a Downgraded Facility or a Non-Extended Facility at a time when
unreimbursed Interest Drawings under such Primary Liquidity Facility have
reduced the Available Amount thereunder to zero, unless (i) a Performing
Note Deficiency exists and a Liquidity Event of Default shall have occurred and
be continuing with respect to the relevant Primary Liquidity Facility or
(ii) a Final Drawing shall have occurred with respect to such Primary
Liquidity Facility, to fund the related Primary Cash Collateral Account up to
such Primary Cash Collateral Account’s Required Amount (calculated as

 

39

 

if there are no
unreimbursed Interest Drawings under such Primary Liquidity Facility) shall be
deposited in such Primary Cash Collateral Account, and (C) if, with
respect to any particular Primary Liquidity Facility, neither subclause (I)(A)
nor subclause (I)(B) of this clause “fourth” are applicable, to pay in full the
outstanding amount of all Liquidity Obligations (net of any and all payments
made by the Policy Provider to the Primary Liquidity Provider in respect of the
principal amount of Interest Advances) then due under such Primary Liquidity
Facility (other than amounts payable pursuant to clause “second” or “third” of
this Section 3.2) and (II) if the Policy Provider has elected
pursuant to the proviso to Section 2.6(c) to pay to each Primary Liquidity
Provider all outstanding Drawings and interest thereon owing to such Primary
Liquidity Provider under the applicable Primary Liquidity Facility or if the
Policy Provider has made any Policy Drawings pursuant to Section 3.7(a) as
a result of the failure of the relevant Primary Liquidity Provider to honor any
Interest Drawings in accordance with Section 2.02(a) of the applicable
Primary Liquidity Facility in respect of the Class G-1 Certificates or Class
G-2 Certificates, as the case maybe, the amount of such payment made to such
Primary Liquidity Provider in respect of principal of Drawings under such
Primary Liquidity Facility and the amount of such Policy Drawing, as
applicable, shall be distributed to such Primary Liquidity Provider and the
Policy Provider, pro rata on the basis of the amounts of all such deficiencies
and/or unreimbursed Liquidity Obligations in respect of each Primary Liquidity
Provider and the amount of such unreimbursed Policy Provider Obligations
payable under this clause “fourth” to the Policy Provider;

 

fifth, if, with respect to any
particular Primary Liquidity Facility, any amounts are to be distributed
pursuant to either subclause (I)(A) or (I)(B) of clause “fourth” above, such
amount then remaining as shall be required to pay the Primary Liquidity
Provider with respect to such Primary Liquidity Facility the excess of
(x) the aggregate outstanding amount of unreimbursed Advances (whether or
not then due) under such Primary Liquidity Facility over (y) the Required
Amount for the relevant Primary Liquidity Facility, pro rata on the basis of
such amounts in respect of each Primary Liquidity Provider;

 

sixth, if any Above-Cap Reserve
Account had been previously funded as provided in Section 3.6(f), unless
(i) a Performing Note Deficiency exists and a Liquidity Event of Default
shall have occurred and be continuing with respect to the related Primary Liquidity
Facility or (ii) a Final Drawing shall have occurred with respect to such
Primary Liquidity Facility, to fund such Above-Cap Reserve Account up to an
amount equal to the applicable Termination Amount (as recalculated on such
Distribution Date) less any amount then on deposit in the related Above-Cap
Account shall be deposited in such Above-Cap Reserve Account;

 

seventh, such amount then remaining
as shall be required to reimburse or pay (i) the Subordination Agent for
any Tax (other than Unindemnified Taxes), expense, fee, charge or other loss
incurred by or any other amount payable to the Subordination Agent in
connection with the transactions contemplated hereby (to the extent not
previously reimbursed), shall be applied by the Subordination Agent in
reimbursement of such amount, (ii) each Trustee for any Tax (other than
Unindemnified Taxes), expense, fee, charge, loss or any other amount payable to
such Trustee under the applicable Trust

 

40

 

Agreements (to the extent
not previously reimbursed), shall be distributed to such Trustee, and
(iii) each Certificateholder for payments, if any, made by it pursuant to Section 5.2
hereof in respect of amounts described in clause (i) above, shall be
distributed to the applicable Trustee for the account of such
Certificateholder, in each such case, pro rata on the basis of all amounts
described in clauses (i) through (iii) above;

 

eighth, such amount then remaining
as shall be required to pay accrued and unpaid interest at the Stated Interest
Rate on the Class G-1 Certificates and Class G-2 Certificates
(excluding interest, if any, payable with respect to the Deposits relating to
such Trusts) shall be distributed to the Class G-1 Trustee and Class G-2
Trustee; provided that if available funds are insufficient to pay such interest
in full to each such Class available funds will be distributed to each of the
Class G-1 Trustee and the Class G-2 Trustee in the same proportion as
such Trustee’s proportionate share of the aggregate amount of such interest;

 

ninth, such amount then remaining as
shall be required to pay unpaid Adjusted Interest on the Class C Certificates
to the holders of the Class C Certificates (excluding interest, if any, payable
with respect to the Deposits relating to the Class C Trust);

 

tenth, such amount then remaining as
shall be required to pay in full Expected Distributions on the Class G-1
Certificates and Class G-2 Certificates shall be distributed to the Class G-1
Trustee and Class G-2 Trustee; provided that if available funds are
insufficient to pay Expected Distributions to each such Class in full,
available funds will be distributed to each of the Class G-1 Trustee and the
Class G-2 Trustee in the same proportion as such Trustee’s proportionate share
of the aggregate amount of such Expected Distribution;

 

eleventh, such amount then remaining
as shall be required to pay to the Policy Provider all Policy Provider
Obligations then due to the Policy Provider under the Policy Provider Agreement
(other than amounts payable pursuant to clauses “first”, “second”, “third” and “fourth”
of this Section 3.2 and Excess Reimbursement Obligations) and amounts due
under the Policy Fee Letter shall be paid to the Policy Provider;

 

twelfth, such amount then remaining
as shall be required to pay in full interest then due at the Stated Interest
Rate on the Pool Balance of the Class C Certificates which was not previously
paid pursuant to clause “ninth” above to the holders of the Class C
Certificates (excluding interest, if any, payable with respect to the Deposits
related to the Class C Trust);

 

thirteenth, such amount then
remaining as shall be required to pay in full Expected Distributions on the
Class C Certificates shall be distributed to the Class C Trustee;

 

fourteenth, such amount then
remaining as shall be required to pay in full any Excess Reimbursement
Obligations shall be distributed to the Policy Provider;

 

fifteenth, if any Above-Cap Reserve
Account had been previously funded as provided in Section 3.6(f), unless
(i) a Performing Note Deficiency exists and a Liquidity

 

41

 

Event of Default shall
have occurred and be continuing with respect to the related Primary Liquidity
Facility or (ii) a Final Drawing shall have occurred with respect to such
Primary Liquidity Facility, to fund such Above-Cap Reserve Account up to an
amount equal to the applicable Termination Amount (as recalculated on such
Distribution Date) shall be deposited in such Above-Cap Reserve Account; and

 

sixteenth, such amount then
remaining shall be deposited in the Collection Account to be distributed on the
next Distribution Date.

 

Section 3.3.                                [Intentionally
Omitted].

 

Section 3.4.                                Other
Payments.  (a) Any payments
received by the Subordination Agent for which no provision as to the
application thereof is made in this Agreement shall be distributed by the
Subordination Agent in the order of priority specified in Section 3.2.

 

(b)                                 If
the Subordination Agent receives any Scheduled Payment after the Scheduled
Payment Date relating thereto, but prior to such payment becoming an Overdue
Scheduled Payment, then the Subordination Agent shall deposit such Scheduled
Payment in the Collection Account and promptly distribute such Scheduled
Payment in accordance with the priority of distributions set forth in Section 3.2
hereof; provided that, for the purposes of this Section 3.4(b) only, each
determination made in clauses “eighth”, “ninth”, “tenth”, “twelfth” or “thirteenth”
of Section 3.2 by use of the definition of “Distribution Date” shall be
deemed to refer to such Scheduled Payment Date.

 

Section 3.5.                                Payments
to the Trustees, Primary Liquidity Providers and Policy Provider.  Any amounts distributed hereunder to any
Primary Liquidity Provider or the Policy Provider shall be paid to such Primary
Liquidity Provider or Policy Provider by wire transfer of funds to the address
such Primary Liquidity Provider or Policy Provider shall provide to the
Subordination Agent.  The Subordination
Agent shall provide a Written Notice of any such transfer to the applicable
Primary Liquidity Provider or Policy Provider, as the case may be, at the time
of such transfer.  Any amounts
distributed hereunder by the Subordination Agent to any Trustee which shall not
be the same institution as the Subordination Agent shall be paid to such
Trustee by wire transfer funds at the address such Trustee shall provide to the
Subordination Agent.

 

Section 3.6.                                Liquidity
Facilities.  (a) Interest
Drawings and Above-Cap Payments.  If
on any Distribution Date, after giving effect to the subordination provisions
of this Agreement and any Election Interest Payments made by the Policy
Provider, the Subordination Agent shall not have sufficient funds for the
payment of any amounts due and owing in respect of accrued interest on the
Class G-1 Certificates or the Class G-2 Certificates or the Adjusted
Interest with respect to the Class C Certificates, other than any amount
of interest or Adjusted Interest which was due and payable on the Class G-1 Certificates,
the Class G-2 Certificates or the Class C Certificates on such Distribution
Date but which remains unpaid due to the failure of the Depositary to pay any
amount of accrued interest on the Deposits on such Distribution Date, then,
prior to 12:00 noon (New York City time) on such Distribution Date,
(i) the Subordination Agent shall request a drawing (each such drawing, an
“Interest Drawing”) under the
Primary Liquidity Facility with respect to such Class of Certificates (and
concurrently with the making of

 

42

 

such request, the
Subordination Agent shall give notice to the Policy Provider of such
insufficiency of funds) in an amount equal to the lesser of (x) an amount
sufficient to pay the amount of such accrued interest, in the case of the
Class G-1 Certificates and the Class G-2 Certificates, or such
Adjusted Interest, in the case of the Class C Certificates, (at the Stated
Interest Rate for such Class of Certificates) and (y) the Available Amount
under such Primary Liquidity Facility, and upon receipt of such amount shall
pay such amount to the Trustee with respect to such Class of Certificates in
payment of such accrued interest, in the case of the Class G-1
Certificates and the Class G-2 Certificates, or Adjusted Interest, in the
case of the Class C Certificates, and (ii) if Three-Month LIBOR for
the Interest Period ending on such Distribution Date (or, if such Distribution
Date is not the last day of an Interest Period, Three-Month LIBOR for the Interest
Period including such Distribution Date) exceeds Capped Three-Month LIBOR, the
Subordination Agent shall (if it can make the certification described in the
last sentence of this Section 3.6(a) and the relevant Above-Cap Liquidity
Facility has not been terminated or expired) request an interest rate cap
payment (each such payment, an “Above-Cap
Payment”) under the Above-Cap Liquidity Facility with respect to
such Class of Certificates, for credit to the applicable Above-Cap Account in
an amount equal to the excess of (1) an amount equal to the product of
(x) the excess of Three-Month LIBOR for the Interest Period ending on such
Distribution Date (or, if such Distribution Date is not the last day of an
Interest Period, Three-Month LIBOR for the Interest Period including such
Distribution Date) over Capped Three-Month LIBOR, multiplied by
(y) (A) in the case of the Class G-1 Certificates and
Class G-2 Certificates, the Pool Balance with respect to such Class of
Certificates as of such Distribution Date (and before giving effect to any
distribution on such date) and (B) with respect to the Class C
Certificates, the Preferred C Pool Balance as of such Distribution Date (and
before giving effect to any distribution on such date), multiplied by (z) the
actual number of days elapsed during the period commencing on the first day of
such Interest Period and ending on such Distribution Date divided by 360 over
(2) the amount, if any, on deposit in the Above-Cap Account for such Class of
Certificates, and upon the receipt thereof the Subordination Agent shall
immediately deposit such Above-Cap Payment into the Above-Cap Account for such
Class of Certificates.  If the Interest
Drawing on such Distribution Date pursuant to clause (i) above, together with
all other amounts available to the Subordination Agent on such Distribution
Date (after giving effect to the subordination provisions of this Agreement and
any withdrawals from the applicable Primary Cash Collateral Account but not
with respect to any amounts under either Policy), is insufficient to pay
accrued interest, in the case of the Class G-1 Certificates and the Class G-2
Certificates, or Adjusted Interest, in the case of the Class C Certificates (at
the Stated Interest Rate with respect to such Class of Certificates for the
applicable Interest Period) payable with respect to such Class of Certificates
on such Distribution Date (such deficiency, the “Deficiency Amount”), the Subordination Agent shall, prior to
4:00 p.m. (New York City time) on such Distribution Date, withdraw (each,
an “Above-Cap Withdrawal”) from
the Above-Cap Account with respect to such Class of Certificates an amount
equal to the lesser of (x) such Deficiency Amount and (y) the amount
on deposit in the Above-Cap Account (including any amounts deposited, or to be
deposited, on such Distribution Date pursuant to clause (ii) above), and
shall pay such amount to the Trustee with respect to such Class of Certificates
in payment of such accrued interest, in the case of the Class G-1 Certificates
and the Class G-2 Certificates, or such Adjusted Interest, in the case of the
Class C Certificates.  In connection with
a request for an Above-Cap Payment under any Above-Cap Liquidity Facility
pursuant to clause (ii) above, the Subordination Agent shall certify to
the Above-Cap Liquidity Provider with respect to such

 

43

 

Class of
Certificates that at least one of the following statements is true as of such
Distribution Date prior to making such Above-Cap Withdrawal:  (x) the Available Amount under the
Primary Liquidity Facility with respect to such Class of Certificates (prior to
giving effect to any Interest Drawings to be made on such Distribution Date) is
greater than zero or (y) the amount on deposit in the Primary Cash
Collateral Account relating to such Primary Liquidity Facility (prior to giving
effect to any withdrawal to be made from such account on such Distribution
Date) is greater than zero.

 

(b)                                 Application
of Interest Drawings and Above-Cap Withdrawals.  Notwithstanding anything to the contrary
contained in this Agreement, (i) all payments received by the
Subordination Agent in respect of an Interest Drawing under the Class G-1
Primary Liquidity Facility and all amounts withdrawn by the Subordination Agent
from the Class G-1 Primary Cash Collateral Account, and payable in each
case to the Class G-1 Trustee on behalf of the Class G-1
Certificateholders, shall be promptly distributed to the Class G-1
Trustee, (ii) all payments received by the Subordination Agent in respect
of an Interest Drawing under the Class G-2 Primary Liquidity Facility and
all amounts withdrawn by the Subordination Agent from the Class G-2
Primary Cash Collateral Account, and payable in each case to the Class G-2
Trustee on behalf of the Class G-2 Certificateholders, shall be promptly
distributed to the Class G-2 Trustee, (iii) all payments received by
the Subordination Agent in respect of an Interest Drawing under the
Class C Primary Liquidity Facility and all amounts withdrawn by the
Subordination Agent from the Class C Primary Cash Collateral Account, and
payable in each case to the Class C Trustee on behalf of the Class C
Certificateholders, shall be promptly distributed to the Class C Trustee,
except, with respect to clauses (i), (ii) and (iii), that if (x) the
Subordination Agent shall receive any amount in respect of an Interest Drawing
under the Class G-1 Primary Liquidity Facility or Class G-2 Primary
Liquidity Facility or a withdrawal from the Class G-1 Primary Cash
Collateral Account or Class G-2 Primary Cash Collateral Account to pay
Accrued Class G-1 Interest or Accrued Class G-2 Interest after such
Accrued Class G-1 Interest or Accrued Class G-2 Interest has been
fully paid by a Policy Drawing under the Policy, or (y) the Subordination
Agent shall receive any amount in respect of a Policy Drawing under the
applicable Policy pursuant to Section 3.7(a) hereof to pay Accrued Class
G-1 Interest or Accrued Class G-2 Interest after such Accrued Class G-1
Interest or Accrued Class G-2 Interest has been fully paid by an Interest
Drawing under the applicable Primary Liquidity Facility or a withdrawal from
the applicable Primary Cash Collateral Account, then such amounts shall be paid
directly to the Policy Provider as reimbursement of such Policy Drawing rather
than to the Class G-1 Trustee and/or Class G-2 Trustee on behalf of
the Class G-1 Certificateholders and/or Class G-2 Certificateholders
and shall constitute an Interest Drawing under the Class G-1 Primary
Liquidity Facility or Class G-2 Primary Liquidity Facility or a withdrawal
from the Class G-1 Primary Cash Collateral Account or Class G-2
Primary Cash Collateral Account, as the case may be, hereunder; provided, that
if any such amount constitutes an Election Interest Payment with respect to one
or more Series G-1 Equipment Notes or Series G-2 Equipment Notes, such amount
shall be paid directly to the Class G-1 Primary Liquidity Provider or
Class G-2 Primary Liquidity Provider as reimbursement for such Interest Drawing
or to the Class G-1 Primary Cash Collateral Account or the Class G-2 Primary
Cash Collateral Account as replenishment for such withdrawal, as applicable and
(iv) all payments received by the Subordination Agent in respect of an
Above-Cap Withdrawal from any Above-Cap Account, and payable to (A) the
Class G-1 Trustee on behalf of the G-1 Certificateholders, shall be
promptly distributed to the Class G-1 Trustee, (B) the Class G-2
Trustee on behalf of the

 

44

 

Class G-2
Certificateholders, shall be promptly distributed to the Class G-2
Trustee, and (C) the Class C Trustee on behalf of the Class C
Certificateholders shall be promptly distributed to the Class C Trustee
for application in each case to the payment of interest in respect of which it
was drawn, except that if (x) the Subordination Agent shall receive any
amount in respect of such Above-Cap Withdrawal to pay Accrued Class G-1
Interest or Accrued Class G-2 Interest after such Accrued Class G-1 Interest or
Accrued Class G-2 Interest, as applicable, has been fully paid to the
Class G-1 Trustee or Class G-2 Trustee, as applicable, by a Policy
Drawing under the Policies pursuant to Section 3.7(a) hereof or
(y) the Subordination Agent shall receive any amount in respect of a
Policy Drawing under the Policies pursuant to Section 3.7(a) to fully pay
Accrued Class G-1 Interest or Accrued Class G-2 Interest after such
Accrued Class G-1 Interest or Accrued Class G-2 Interest has been paid (in
full or in part) to the Class G-1 Trustee or Class G-2 Trustee by an
Above-Cap Withdrawal, then an amount equal to such amount received in respect
of such Above-Cap Withdrawal shall be paid directly to the Policy Provider as
reimbursement of such Policy Drawing rather than to the Class G-1
Certificateholders or Class G-2 Certificateholders or the Class G-1
Trustee or Class G-2 Trustee.

 

(c)                                  Downgrade
Drawings.  (i) Each Primary
Liquidity Provider shall promptly, but in any event within 10 days of receipt
of notice of a Downgrade Event with respect to it, deliver notice of such
Downgrade Event to the Subordination Agent, the Policy Provider and
JetBlue.  If at any time a Downgrade
Event shall have occurred with respect to a Primary Liquidity Facility (the “Downgraded Facility”), such Primary
Liquidity Provider or JetBlue may arrange for a Replacement Primary Liquidity
Provider to issue and deliver a Replacement Primary Liquidity Facility to the
Subordination Agent.  If a Downgraded
Facility has not been replaced in accordance with the terms of this paragraph,
the Subordination Agent shall, if it has actual knowledge of such Downgrade
Event, on the 10th day following such downgrading or on the day it obtains
actual knowledge of such Downgrade Event, if later (or if such day is not a
Business Day, on the next succeeding Business Day), request a drawing in
accordance with and to the extent permitted by such Downgraded Facility (such
drawing, a “Downgrade Drawing”) of
all available and undrawn amounts thereunder. 
Amounts drawn pursuant to a Downgrade Drawing shall be maintained and
invested as provided in Section 3.6(f) hereof.  The applicable Primary Liquidity Provider may
also arrange for a Replacement Primary Liquidity Provider to issue and deliver
a Replacement Primary Liquidity Facility at any time after such Downgrade
Drawing so long as such Downgrade Drawing has not been reimbursed in full to
such Liquidity Provider.

 

(ii)                                  If
a “Termination Event” or an “Additional Termination Event” (each as defined in
the Above-Cap Liquidity Facilities, each such event, a “Mandatory Termination Event”) shall occur
under the Class G-1 Above-Cap Liquidity Facility, Class G-2 Above-Cap
Liquidity Facility or Class C Above-Cap Liquidity Facility, the Class G-1
Above-Cap Liquidity Provider, Class G-2 Above-Cap Liquidity Provider or
Class C Above-Cap Liquidity Provider, as applicable, shall provide notice
of such Mandatory Termination Event in writing to JetBlue, the Subordination
Agent, the Policy Provider, the Class G-1 Trustee, the Class G-2
Trustee and the Class C Trustee, and within the time period specified in
such Above-Cap Liquidity Facility (but in no event later than the expiration
date of such Above-Cap Liquidity Facility) JetBlue or such Above-Cap Liquidity
Provider may, in each case at its own expense, arrange for one or more
Replacement Above-Cap Liquidity Providers to issue and deliver a Replacement

 

45

 

Above-Cap Liquidity Facility for such Above-Cap
Liquidity Facility to the Subordination Agent. 
In the event that such Above-Cap Liquidity Provider or JetBlue makes
arrangements for a Replacement Above-Cap Liquidity Facility in accordance with
the terms of such Above-Cap Liquidity Facility, (y) the Subordination
Agent shall, if and to the extent so requested by such Above-Cap Liquidity
Provider or JetBlue, execute and deliver any certificate or other instrument
required to give effect to such replacement and (z) each of the parties
hereto shall enter into any amendments to this Agreement necessary to give
effect to such replacement.  If an
Above-Cap Liquidity Facility is subject to a Mandatory Termination Event and
has not been replaced in accordance with its terms and the terms of this
paragraph or if an Early Termination Date (as defined in such Above-Cap
Liquidity Facility) has been designated under such Above-Cap Liquidity Facility
after the occurrence of an Event of Default (as defined in such Above-Cap
Liquidity Facility), such Above-Cap Liquidity Facility shall be terminated and
such Above-Cap Liquidity Provider shall, on such Early Termination Date, pay to
the Subordination Agent, for the benefit of the Class G-1 Trustee,
Class G-2 Trustee or Class C Trustee, as applicable, on behalf of the
holders of the related Class of Certificates, the applicable Termination Amount
for credit to the relevant Above-Cap Reserve Account, to be applied as provided
in Section 3.6(f) hereof plus the amount of all other unpaid sums due and
payable by such Above-Cap Liquidity Provider with respect to such Class of
Certificates thereunder on or prior to such date, and upon such payment, such
Above-Cap Liquidity Facility shall be terminated.  Nothing contained herein shall limit the
rights of an Above-Cap Liquidity Provider to transfer its rights and
obligations under its Above-Cap Liquidity Facility or otherwise arrange for a
Replacement Above-Cap Liquidity Facility, subject to and in accordance with the
provisions of such Above-Cap Liquidity Facility.

 

(d)                                 Non-Extension
Drawings.  If any Primary Liquidity
Facility with respect to the Class G-1 Certificates, Class G-2
Certificates or Class C Certificates is scheduled to expire on a date (the
“Stated Expiration Date”) prior to
the date that is 15 days after the Final Legal Distribution Date for such Class
of Certificates, then, no earlier than the 60th day and no later than the 40th
day prior to the then Stated Expiration Date, the Subordination Agent shall
request that such Primary Liquidity Provider extend the Stated Expiration Date
to the earlier of (i) the date that is 15 days after such Final Legal
Distribution Date and (ii) the date that is the day immediately preceding
the 364th day occurring after the last day of the applicable Consent Period
(unless the obligations of such Primary Liquidity Provider thereunder are earlier
terminated in accordance with such Primary Liquidity Facility).  Whether or not the Primary Liquidity Provider
has received such request from the Subordination Agent, the Primary Liquidity
Provider shall advise the Subordination Agent, no earlier than the 40th
day (or, if earlier, the date of such Primary Liquidity Provider’s receipt of
such request) and no later than the 25th day prior to the Stated
Expiration Date then in effect for such Primary Liquidity Facility (such
period, with respect to such Primary Liquidity Facility, the “Consent Period”), whether, in its sole
discretion, it agrees to so extend the Stated Expiration Date.  If on or before the last day of such Consent
Period, (A) such Primary Liquidity Facility shall not have been replaced
in accordance with Section 3.6(e) and (B) such Primary Liquidity
Provider (x) advises the Subordination Agent that such Stated Expiration
Date shall not be so extended or (y) fails to irrevocably and
unconditionally advise the Subordination Agent that such Stated Expiration Date
shall be so extended, the Subordination Agent shall, on the last day of the
Consent Period (or as

 

46

 

soon as possible
thereafter), in accordance with the terms of the expiring Primary Liquidity
Facility (a “Non-Extended Facility”),
request a drawing under such expiring Primary Liquidity Facility (such drawing,
a “Non-Extension Drawing”) of the
Available Amount thereunder.  Amounts
drawn pursuant to a Non-Extension Drawing shall be maintained and invested in
accordance with Section 3.6(f) hereof.

 

(e)                                  Issuance
of Replacement Primary Liquidity Facility. 
(i) At any time, JetBlue may, at its option, with cause or without
cause, arrange for a Replacement Primary Liquidity Facility to replace any
Primary Liquidity Facility for the Class G-1 Certificates, Class G-2
Certificates or Class C Certificates (including any Replacement Primary
Liquidity Facility provided pursuant to Section 3.6(e)(ii) hereof);
provided, however, that the initial Primary Liquidity Provider for any Primary
Liquidity Facility shall not be replaced by JetBlue as a Primary Liquidity
Provider with respect to such Primary Liquidity Facility prior to the third
anniversary of the Closing Date unless (A) there shall have become due to
such initial Primary Liquidity Provider, or such initial Primary Liquidity
Provider shall have demanded, amounts pursuant to Section 3.01, 3.02 or
3.03 of any applicable Primary Liquidity Facility or the Tax Letter and the
replacement of such initial Primary Liquidity Provider would reduce or
eliminate the obligation to pay such amounts or JetBlue determines in good
faith that there is a substantial likelihood that such initial Primary
Liquidity Provider will have the right to claim any such amounts (unless such
initial Primary Liquidity Provider waives, in writing, any right it may have to
claim such amounts), which determination shall be set forth in a certificate
delivered by JetBlue to such initial Primary Liquidity Provider setting forth
the basis for such determination and accompanied by an opinion of outside
counsel selected by JetBlue and reasonably acceptable to such initial Primary
Liquidity Provider verifying the legal conclusions, if any, of such certificate
relating to such basis, provided that, in the case of any likely claim for such
amounts based upon any proposed, or proposed change in, law, rule, regulation,
interpretation, directive, requirement, request or administrative practice,
such opinion may assume the adoption or promulgation of such proposed matter,
(B) it shall become unlawful or impossible for such initial Primary
Liquidity Provider (or its Lending Office) to maintain or fund its LIBOR
Advances as described in Section 3.10 of any Primary Liquidity Facility,
(C) any Primary Liquidity Facility of such initial Primary Liquidity
Provider shall become a Downgraded Facility or a Non-Extended Facility or a
Downgrade Drawing or a Non-Extension Drawing or a Special Termination Drawing
shall have occurred under any Primary Liquidity Facility of such initial
Primary Liquidity Provider; provided, that in the case of a Downgrade Drawing
or Non-Extension Drawing, the initial Primary Liquidity Provider shall not be
replaced by JetBlue if the initial Primary Liquidity Provider has given JetBlue
not less than (x) 10 days’ written notice prior to any Downgrade Drawing
under its Primary Liquidity Facility, and (y) 25 days’ written notice prior to
any Non-Extension Drawing under its Primary Liquidity Facility, of its desire
not to be replaced, or (D) such initial Primary Liquidity Provider shall
have breached any of its payment (including, without limitation, funding)
obligations under any Primary Liquidity Facility in respect of which it is the
Primary Liquidity Provider.  If a
Replacement Primary Liquidity Facility is provided at any time after a
Downgrade Drawing, Non-Extension Drawing or a Special Termination Drawing has
been made, all funds on deposit in the relevant Cash Collateral Account will be
returned to the Primary Liquidity Provider being replaced.

 

(ii)                                  If
any Primary Liquidity Provider shall determine not to extend any of its Primary
Liquidity Facilities in accordance with Section 3.6(d), then such

 

47

 

Primary Liquidity Provider may, at its option, arrange
for a Replacement Primary Liquidity Facility to replace such Primary Liquidity
Facility during the period no earlier than 40 days and no later than 25 days
prior to the then effective Stated Expiration Date of such Primary Liquidity
Facility.  At any time after a Non-Extension
Drawing has been made under any Primary Liquidity Facility or at any time after
the Primary Liquidity Provider has extended the Stated Expiration Date pursuant
to Section 2.11 of the related Primary Liquidity Facility, the Primary
Liquidity Provider thereunder may, at its option, arrange for a Replacement
Primary Liquidity Facility to replace the Primary Liquidity Facility under
which such Non-Extension Drawing or extension has been made.

 

(iii)                               No
Replacement Primary Liquidity Facility arranged by JetBlue or a Primary
Liquidity Provider in accordance with clause (i) or (ii) above or pursuant to Section 3.6(c),
respectively, shall become effective and no such Replacement Primary Liquidity
Facility shall be deemed a “Primary Liquidity Facility” under the Operative
Agreements, unless and until (A) each of the conditions referred to in
sub-clauses (iv)(w) and (y) below shall have been satisfied and (B) in the
case of a Replacement Primary Liquidity Facility arranged by a Primary
Liquidity Provider under Section 3.6(e)(ii) or pursuant to Section 3.6(c),
such Replacement Primary Liquidity Facility is acceptable to JetBlue.

 

(iv)                              In
connection with the issuance of each Replacement Primary Liquidity Facility,
the Subordination Agent shall (w) prior to the issuance of such
Replacement Primary Liquidity Facility, obtain written confirmation from each
Rating Agency that such Replacement Primary Liquidity Facility will not cause a
reduction of any rating then in effect for any Class of Certificates by such
Rating Agency (without regard to any downgrading of any rating of any Primary
Liquidity Provider being replaced pursuant to Section 3.6(c) hereof and
without regard to the Policies) and, in the case of the Class G-1 Primary
Liquidity Facility or Class G-2 Primary Liquidity Facility only, the
written consent of the Policy Provider (which consent shall not be unreasonably
withheld or delayed), (x) pay all Liquidity Obligations then owing to the
replaced Primary Liquidity Provider (which payment shall be made first from
available funds in the applicable Primary Cash Collateral Account as described
in clause (vii) of Section 3.6(f) hereof, and thereafter from any other
available source, including, without limitation, a drawing under the Replacement
Primary Liquidity Facility), (y) cause the issuer of the Replacement
Primary Liquidity Facility to deliver the Replacement Primary Liquidity
Facility to the Subordination Agent, together with a legal opinion opining that
such Replacement Primary Liquidity Facility is an enforceable obligation of
such Replacement Primary Liquidity Provider and (z) if the Primary
Liquidity Provider received a certified copy of the related Policy, cause the
Primary Liquidity Provider being replaced to return such certified copy of the
related Policy to the Policy Provider.

 

(v)                                 Upon
satisfaction of the conditions set forth in clauses (iii) and (iv) of this Section 3.6(e)
with respect to a Replacement Primary Liquidity Facility, (w) the replaced
Primary Liquidity Facility shall terminate, (x) the Subordination Agent
shall, if and to the extent so requested by JetBlue or the Primary Liquidity
Provider being replaced, execute and deliver any certificate or other
instrument required in order to terminate the replaced Primary Liquidity
Facility, shall surrender the replaced Primary

 

48

 

Liquidity Facility to the Primary Liquidity Provider
being replaced and shall execute and deliver the Replacement Primary Liquidity
Facility and any associated Fee Letter, (y) each of the parties hereto
shall enter into any amendments to this Agreement necessary to give effect to
(1) the replacement of the applicable Primary Liquidity Provider with the
applicable Replacement Primary Liquidity Provider and (2) the replacement
of the applicable Primary Liquidity Facility with the applicable Replacement
Primary Liquidity Facility and (z) the applicable Replacement Primary
Liquidity Provider shall be deemed to be a Primary Liquidity Provider with the rights
and obligations of a Primary Liquidity Provider hereunder and under the other
Operative Agreements and such Replacement Primary Liquidity Facility shall be
deemed to be a Primary Liquidity Facility hereunder and under the other
Operative Agreements.

 

(f)                                    Cash
Collateral Accounts; Above-Cap Account Withdrawals; Withdrawals; Investments.  In the event the Subordination Agent shall
draw all available amounts under the Class G-1 Primary Liquidity Facility,
the Class G-2 Primary Liquidity Facility or the Class C Primary
Liquidity Facility pursuant to Section 3.6(c), 3.6(d), 3.6(i) or 3.6(k)
hereof, or in the event amounts are to be deposited in the Class G-1
Primary Cash Collateral Account, Class G-2 Primary Cash Collateral Account
or the Class C Primary Cash Collateral Account pursuant to subclause (A)
or (B) of clause “fourth” of Section 3.2, amounts so drawn or to be
deposited, as the case may be, shall be deposited by the Subordination Agent in
the Class G-1 Primary Cash Collateral Account, Class G-2 Primary Cash
Collateral Account or the Class C Primary Cash Collateral Account,
respectively.  If the Class G-1
Above-Cap Liquidity Provider, Class G-2 Above-Cap Liquidity Provider or
Class C Above-Cap Liquidity Provider shall at any time make a Termination Amount
payment under the related Above-Cap Liquidity Facility, such Termination Amount
payment shall be deposited by the Subordination Agent in the related Above-Cap
Reserve Account to be applied as specified below in this Section 3.6(f).  All amounts on deposit in each Cash
Collateral Account shall be invested and reinvested in Eligible Investments in
accordance with Section 2.2(b) hereof.

 

On each Interest Payment Date (or, in the case of any
Special Distribution Date occurring as contemplated in Section 2.4(a)
hereof (a “Special Payment Withdrawal”),
on such Special Distribution Date), Investment Earnings on amounts on deposit
in each Primary Cash Collateral Account (or, in the case of any Special Payment
Withdrawal resulting from the redemption, purchase or prepayment of any
Equipment Note prior to the occurrence of a payment default under any
Indenture, a fraction of such Investment Earnings equal to the Section 2.4(a)
Fraction) shall be deposited in the Collection Account (or, in the case of any
Special Payment Withdrawal, the Special Payments Account) and applied on such
Interest Payment Date (or Special Distribution Date, as the case may be) in
accordance with Section 2.4, 3.2 or 3.4 (as applicable).  Investment Earnings on amounts on deposit in
each Above-Cap Reserve Account shall be credited to such account and applied in
the same manner as the Termination Amount payment credited thereto.  Investment Earnings on amounts on deposit in
each Above-Cap Account shall be credited to such account and applied in the
same manner as Above-Cap Payments credited thereto.  The Subordination Agent shall deliver a
written statement to JetBlue, the Policy Provider and the Liquidity Providers,
one day prior to each Interest Payment Date and Special Distribution Date setting
forth the aggregate amount of Investment Earnings held in each of the Cash
Collateral Accounts as of such date.  The
Subordination Agent shall also deliver a written statement to JetBlue, the
Policy Provider and the

 

49

 

Above-Cap Liquidity
Providers one day after each Distribution Date on which amounts have been
deposited in an Above-Cap Account and/or deposited in or withdrawn from an
Above-Cap Reserve Account setting forth the amount of such deposit and/or
withdrawal.  In addition, from and after
the date funds are so deposited, the Subordination Agent shall make withdrawals
from such account as follows (provided that the Individual Drawn Percentage of
any withdrawal specified in clause (i)(A), (ii)(A) or (iii)(A) below, together
with the sum of (x) the Individual Drawn Percentages of unreimbursed
withdrawals under clause (i)(A), (ii)(A) or (iii)(A), respectively, and
(y) the Individual Drawn Percentages of any unreimbursed Interest Drawing made
under the related Primary Liquidity Facility, shall not exceed one hundred
percent):

 

(i)                                     on
each Distribution Date, the Subordination Agent shall, to the extent it shall
not have received funds to pay accrued and unpaid interest due and owing on the
Class G-1 Certificates (at the Stated Interest Rate for the Class G-1
Certificates) after giving effect to the subordination provisions of this
Agreement and any Election Interest Payment made by the Policy Provider,
(A) withdraw from the Class G-1 Primary Cash Collateral Account, and
pay to the Class G-1 Trustee, an amount equal to the lesser of (x) an
amount necessary to pay accrued and unpaid interest (at the Stated Interest
Rate for the Class G-1 Certificates) on such Class G-1 Certificates
and (y) the amount on deposit in the Class G-1 Primary Cash
Collateral Account, (B) withdraw from the Class G-1 Primary Cash
Collateral Account and deposit in the Collection Account for application on
such Distribution Date in accordance with clauses “fourth” through “sixteenth” of
Section 3.2 hereof (as applicable), an amount equal to the lesser of
(x) the excess, if any, of (i) the amount of interest that would have
been withdrawn under clause (A)(x) of this paragraph (i) on such
Distribution Date if interest were calculated at the Capped Interest Rate for
the Class G-1 Certificates over (ii) the actual amount withdrawn
under clause (A)(x) of this paragraph (i) on such Distribution Date (at
the Stated Interest Rate for the Class G-1 Certificates) and (y) the
amount on deposit in the Class G-1 Primary Cash Collateral Account and
(C) if an “Above-Cap Payment” would have been required to be made on such
Distribution Date pursuant to the terms of the Class G-1 Above-Cap
Liquidity Facility were such Liquidity Facility still in effect, withdraw from
the Class G-1 Above-Cap Reserve Account and deposit in the Class G-1
Above-Cap Account, an amount (if any) equal to the lesser of (x) an amount
equal to such Above-Cap Payment and (y) the amount on deposit in the
Class G-1 Above-Cap Reserve Account;

 

(ii)                                  on
each Distribution Date, the Subordination Agent shall, to the extent it shall
not have received funds to pay accrued and unpaid interest due and owing on the
Class G-2 Certificates (at the Stated Interest Rate for the Class G-2
Certificates) after giving effect to the subordination provisions of this
Agreement and any Election Interest Payment made by the Policy Provider,
(A) withdraw from the Class G-2 Primary Cash Collateral Account, and
pay to the Class G-2 Trustee, an amount equal to the lesser of (x) an
amount necessary to pay accrued and unpaid interest (at the Stated Interest
Rate for the Class G-2 Certificates) on such Class G-2 Certificates
and (y) the amount on deposit in the Class G-2 Primary Cash Collateral
Account, (B) withdraw from the Class G-2 Primary Cash Collateral
Account and deposit in the Collection Account for application on such
Distribution Date in accordance with clauses “fourth” through “sixteenth” of Section 3.2
hereof (as applicable), an amount equal to the lesser of (x) the

 

50

 

excess, if any, of (i) the amount of interest
that would have been withdrawn under clause (A)(x) of this paragraph (ii)
on such Distribution Date if interest were calculated at the Capped Interest
Rate for the Class G-2 Certificates over (ii) the actual amount
withdrawn under clause (A)(x) of this paragraph (ii) on such Distribution
Date (at the Stated Interest Rate for the Class G-2 Certificates) and
(y) the amount on deposit in the Class G-2 Primary Cash Collateral
Account and (C) if an “Above-Cap Payment” would have been required to be
made on such Distribution Date pursuant to the terms of the Class G-2
Above-Cap Liquidity Facility were such Liquidity Facility still in effect,
withdraw from the Class G-2 Above-Cap Reserve Account and deposit in the
Class G-2 Above-Cap Account, an amount (if any) equal to the lesser of
(x) an amount equal to such Above-Cap Payment and (y) the amount on
deposit in the Class G-2 Above-Cap Reserve Account;

 

(iii)                               on
each Distribution Date, the Subordination Agent shall, to the extent it shall
not have received funds to pay Adjusted Interest due and owing on the
Class C Certificates (at the Stated Interest Rate for the Class C
Certificates) after giving effect to the subordination provisions of this
Agreement, (A) withdraw from the Class C Primary Cash Collateral
Account, and pay to the Class C Trustee, an amount equal to the lesser of
(x) an amount necessary to pay Adjusted Interest (at the Stated Interest
Rate for the Class C Certificates) on such Class C Certificates and
(y) the amount on deposit in the Class C Primary Cash Collateral
Account, (B) withdraw from the Class C Primary Cash Collateral Account and
deposit in the Collection Account for application on such Distribution Date in
accordance with clauses “fourth” through “sixteenth” of Section 3.2 hereof
(as applicable), an amount equal to the lesser of (x) the excess, if any,
of (i) the amount of Adjusted Interest that would have been withdrawn
under clause (A)(x) of this paragraph (iii) on such Distribution Date
if interest was calculated at the Capped Interest Rate for the Class C
Certificates over (ii) the Adjusted Interest actually withdrawn under
clause (A)(x) of this paragraph (iii) on such Distribution Date (at the
Stated Interest Rate for the Class C Certificates) and (y) the amount on
deposit in the Class C Primary Cash Collateral Account, and (C) if an “Above-Cap
Payment” would have been required to be made on such Distribution Date pursuant
to the terms of the Class C Above-Cap Liquidity Facility were such
Liquidity Facility still in effect, withdraw from the Class C Above-Cap
Reserve Account and deposit in the Class C Above-Cap Account, an amount (if
any) equal to the lesser of (x) an amount equal to such Above-Cap Payment
and (y) the amount on deposit in the Class C Above-Cap Reserve
Account;

 

(iv)                              on
each date on which the Pool Balance of the Class G-1 Trust shall have been
reduced by payments made to the Class G-1 Certificateholders pursuant to Section 2.4,
2.7 or 3.2 hereof or pursuant to Section 2.03 of the Escrow and Paying
Agent Agreement for such Class, the Subordination Agent shall withdraw from the
Class G-1 Primary Cash Collateral Account such amount as is necessary so
that, after giving effect to the reduction of the Pool Balance on such date and
any transfer of Investment Earnings from such Primary Cash Collateral Account
to the Collection Account or the Special Payments Account on such date, an
amount equal to the sum of the Required Amount (with respect to the
Class G-1 Primary Liquidity Facility) plus (if on a Special Distribution
Date not coinciding with an Interest Payment Date) Investment Earnings on
deposit in such Primary Cash Collateral Account will be on deposit in the

 

51

 

Class G-1 Primary Cash Collateral Account and
shall first, pay such withdrawn amount to the Class G-1 Primary Liquidity
Provider until the Liquidity Obligations (with respect to the Class G-1
Certificates) owing to such Primary Liquidity Provider shall have been paid in
full, and second, deposit any remaining withdrawn amount in the Collection
Account;

 

(v)                                 on
each date on which the Pool Balance of the Class G-2 Trust shall have been
reduced by payments made to the Class G-2 Certificateholders pursuant to Section 2.4,
2.7 or 3.2 hereof or pursuant to Section 2.03 of the Escrow and Paying
Agent Agreement for such Class, the Subordination Agent shall withdraw from the
Class G-2 Primary Cash Collateral Account such amount as is necessary so
that, after giving effect to the reduction of the Pool Balance on such date and
any transfer of Investment Earnings from such Primary Cash Collateral Account
to the Collection Account or the Special Payments Account on such date, an amount
equal to the sum of the Required Amount (with respect to the Class G-2
Primary Liquidity Facility) plus (if on a Special Distribution Date not
coinciding with an Interest Payment Date) Investment Earnings on deposit in
such Primary Cash Collateral Account will be on deposit in the Class G-2
Primary Cash Collateral Account and shall first, pay such withdrawn amount to
the Class G-2 Primary Liquidity Provider until the Liquidity Obligations
(with respect to the Class G-2 Certificates) owing to such Primary
Liquidity Provider shall have been paid in full, and second, deposit any
remaining withdrawn amount in the Collection Account;

 

(vi)                              on
each date on which the Preferred C Pool Balance with respect to the
Class C Trust shall have been reduced as a result of payments made to the
Class C Certificateholders pursuant to Section 2.4 or 3.2 hereof or
pursuant to Section 2.03 of the Escrow and Paying Agent Agreement for such
Class or otherwise, the Subordination Agent shall withdraw from the
Class C Primary Cash Collateral Account such amount as is necessary so
that, after giving effect to the reduction of the Preferred C Pool Balance
on such date and any transfer of Investment Earnings from such Primary Cash
Collateral Account to the Collection Account or the Special Payments Account on
such date, an amount equal to the sum of the Required Amount (with respect to
the Class C Primary Liquidity Facility) plus (if such date is a Special
Distribution Date not coinciding with an Interest Payment Date) Investment
Earnings on deposit in such Primary Cash Collateral Account will be on deposit
in the Class C Primary Cash Collateral Account and shall first, pay such
withdrawn amount to the Class C Primary Liquidity Provider until the
Liquidity Obligations (with respect to the Class C Certificates) owing to
such Primary Liquidity Provider shall have been paid in full, and second,
deposit any remaining withdrawn amount in the Collection Account;

 

(vii)                           if a
Replacement Primary Liquidity Facility for any Class of Certificates shall be
delivered to the Subordination Agent following the date on which funds have
been deposited into the Primary Cash Collateral Account for such Class of
Certificates, the Subordination Agent shall withdraw all amounts on deposit in
such Primary Cash Collateral Account and shall pay such amounts to the replaced
Primary Liquidity Provider until all Liquidity Obligations owed to such Person
shall have been paid in full, and shall deposit any remaining amount in the
Collection Account; and

 

52

 

(viii)                        (A) following
(i) the payment of Final Distributions with respect to any Class of
Certificates or (ii) the reduction of the Preferred C Pool Balance to zero
or (iii) the Final Legal Distribution Date for any Class of Certificates,
on the date on which the Subordination Agent shall have been notified by the
Primary Liquidity Provider for such Class of Certificates that the Liquidity
Obligations owed to such Primary Liquidity Provider have been paid in full, or,
if earlier, the first Business Day occurring immediately after the Final Legal
Distribution Date for such Class of Certificates the Subordination Agent shall
withdraw all amounts on deposit in the Primary Cash Collateral Account in
respect of such Class of Certificates and shall deposit such amount in the
Collection Account for distribution in accordance with Section 3.2
(without replenishment of such Primary Cash Collateral Account), and
(B) on the first Business Day occurring immediately after the earlier of
(i) the date of the payment of the Final Distribution with respect to any
Class of Certificates and (ii) the Final Legal Distribution Date with
respect to such Class of Certificates (after giving effect to all distributions
to be made on such date), the Subordination Agent shall pay to the Above-Cap
Liquidity Provider (that funded the amounts specified below) for such Class of
Certificates in which either payment of the Final Distribution or the Final
Legal Distribution Date has occurred an amount equal to the sum of the amounts
(if any) on deposit in the Above-Cap Account and the Above-Cap Reserve Account
for such Class of Certificates by wire transfer of funds to the account
identified by the Above-Cap Liquidity Provider in writing to the Subordination Agent;
it being understood and agreed that the Above-Cap Liquidity Provider shall
receive such amount (if any) notwithstanding any termination of any Above-Cap
Liquidity Facility in accordance with the terms thereof.

 

(g)                                 Reinstatement.  With respect to any Interest Drawing under
any Primary Liquidity Facility, upon the reimbursement by the Subordination
Agent of the applicable Primary Liquidity Provider for all or part of the
amount of such Interest Drawing, together with any accrued interest thereon,
the Available Amount of such Primary Liquidity Facility shall be recalculated
and reinstated by an amount equal to the product of (i) the then Required
Amount (calculated as if no Interest Drawing is outstanding), and (ii) a
fraction, the numerator of which is the amount of such reimbursement (assuming
that Interest Drawings are reimbursed in the order in which they were made) in
respect of principal of such Interest Drawing and the denominator of which is
the Required Amount at the date of such Interest Drawing (calculated as if no
Interest Drawing was then outstanding and on the basis of the lower of the
applicable Stated Interest Rate and the applicable Capped Interest Rate as of
such date) but not to exceed the Stated Amount for such Primary Liquidity
Facility; provided, however, that such Primary Liquidity Facility shall not be
so reinstated in part or in full at any time if (x) both a Performing Note
Deficiency exists and a Liquidity Event of Default shall have occurred and be
continuing with respect to the relevant Primary Liquidity Facility or
(y) a Final Drawing, Downgrade Drawing, Non-Extension Drawing or a Special
Termination Drawing shall have occurred with respect to such Primary Liquidity
Facility; provided, further, that any payment by the Policy Provider to a
Primary Liquidity Provider of any amounts pursuant to the proviso of Section 2.6(c)
shall not reinstate the related Primary Liquidity Facility, but such Primary
Liquidity Facility (so long as it is in effect) shall be reinstated, pro tanto
by an amount equal to the product of (i) the then Required Amount (calculated
as if no Interest Drawing is outstanding), and (ii) a fraction, the numerator
of which is the amount of such reimbursement (assuming that Interest Drawings
are reimbursed in the order in which they were made) in respect of principal of
such Interest Drawing and the denominator

 

53

 

of which is the
Required Amount at the date of such Interest Drawing (calculated as if no
Interest Drawing was then outstanding and on the basis of the lower of the
applicable Stated Interest Rate and the applicable Capped Interest Rate as of
such date), to the extent the Policy Provider receives any reimbursement in
respect of such payment under clause “fourth” of Section 3.2, unless
(x) both a Performing Note Deficiency exists and a Liquidity Event of
Default shall have occurred with respect to such Primary Liquidity Facility or
(y) a Final Drawing, Downgrade Drawing, Non-Extension Drawing or a Special
Termination Drawing shall have occurred with respect to such Primary Liquidity
Facility.  In the event that, with
respect to any particular Primary Liquidity Facility, (i) funds are
withdrawn from any Primary Cash Collateral Account pursuant to clause (i),
(ii) or (iii) of Section 3.6(f) hereof or (ii) such Primary
Liquidity Facility shall become a Downgraded Facility or a Non-Extended
Facility at a time when unreimbursed Interest Drawings under such Primary
Liquidity Facility have reduced the Available Amount thereunder to zero, then
funds received by the Subordination Agent at any time other than (x) any
time when a Liquidity Event of Default shall have occurred and be continuing
with respect to such Primary Liquidity Facility and a Performing Note Deficiency
exists or (y) any time after a Final Drawing shall have occurred with
respect to such Primary Liquidity Facility shall be deposited in such Primary
Cash Collateral Account as and to the extent provided in clause “fourth” of Section 3.2
and applied in accordance with Section 3.6(f) hereof.

 

(h)                                 Reimbursement.  The amount of each drawing under the Primary
Liquidity Facilities shall be due and payable, together with interest thereon,
on the dates and at the rates, respectively, provided in the Primary Liquidity
Facilities.  The Subordination Agent
shall have no obligation to reimburse the Above-Cap Liquidity Providers for any
Above-Cap Payments and the Above-Cap Liquidity Providers shall have no interest
in any monies credited to any Trust Account except as provided in Section 3.6(f)(viii)
hereof.

 

(i)                                     Final
Drawing.  Upon receipt from a Primary
Liquidity Provider of a Termination Notice with respect to any Primary
Liquidity Facility, the Subordination Agent shall, not later than the date
specified in such Termination Notice, in accordance with the terms of such
Primary Liquidity Facility, request a drawing under such Primary Liquidity
Facility of all available and undrawn amounts thereunder (a “Final Drawing”).  Amounts drawn pursuant to a Final Drawing
shall be maintained and invested in accordance with Section 3.6(f) hereof.

 

(j)                                     Reduction
of Stated Amount.  Promptly following
each date on which the Required Amount of the Primary Liquidity Facility for a
Class of Certificates is reduced as a result of (i) a reduction in the
Pool Balance with respect to such Certificates (including by reason of Policy
Provider Election) or (ii) with respect to the Primary Liquidity Facility
for the Class C Certificates, a reduction of the Preferred C Pool Balance, the
Stated Amount of such Primary Liquidity Facility shall be automatically reduced
to an amount equal to the Required Amount with respect to such Primary
Liquidity Facility (as calculated by the Subordination Agent after giving
effect to such payment).

 

(k)                                  Special
Termination Drawing.  Upon receipt
from a Primary Liquidity Provider of a Special Termination Notice with respect
to any Primary Liquidity Facility, the Subordination Agent shall, not later
than the date specified in such Special Termination Notice, in accordance with
the terms of such Primary Liquidity Facility, request a drawing under such
Primary Liquidity Facility of all available and undrawn amounts thereunder (a “Special

 

54

 

Termination
Drawing”).  Amounts
drawn pursuant to a Special Termination Drawing shall be maintained and
invested in accordance with Section 3.6(f) hereof.

 

(l)                                     Relation
to Subordination Provisions. 
Interest Drawings under the Primary Liquidity Facilities and withdrawals
from the Cash Collateral Accounts and the Above-Cap Accounts, in each case, in
respect of interest on the Certificates of any Class, will be distributed to
the Trustee for such Class of Certificates for distribution to
Certificateholders of the related Class, notwithstanding Sections 3.2 and
3.6(h) hereof.

 

(m)                               Assignment
of the Primary Liquidity Facility. 
The Subordination Agent agrees not to consent to the assignment by any
Primary Liquidity Provider of any of its rights or obligations under any
Primary Liquidity Facility or any interest therein, unless (i) JetBlue
shall have consented to such assignment, such consent to be within JetBlue’s
sole discretion, (ii) each Rating Agency shall have provided a Ratings
Confirmation in respect of such assignment and (iii) in the case of the
Class G-1 Primary Liquidity Facility and Class G-2 Primary Liquidity
Facility only, the Policy Provider shall have consented to such assignment
(which consent shall not be unreasonably withheld or delayed), and, upon the
satisfaction of the foregoing clauses (i), (ii) and (iii) (if applicable) and
the provisions of Section 3.6(e)(iv), the Subordination Agent shall give
such consent; provided that the foregoing is not intended to and shall not be
construed to limit the rights of the Primary Liquidity Provider under Section 3.6(e).

 

Section 3.7.                                The
Policies.  The following provisions
of paragraphs (a) through (h) of this Section 3.7 shall apply to
(i) the Class G-1 Trust and the Class G-1 Certificates and
(ii) the Class G-2 Trust and the Class G-2 Certificates, as if
such provisions are separately set forth in full for each of the Class G-1
Trust (and the Class G-1 Certificates) and the Class G-2 Trust (and
the Class G-2 Certificates).  For
the purposes of clause (i) above, each reference in paragraphs (a) through (h)
of this Section 3.7 to “Above-Cap Account,” “Accrued Class G
Interest,” “Class G Primary Cash Collateral Account,” “Class G
Certificates,” “Class G Certificateholders,” “Class G Deposits,” “Class G
Escrow Receipts,” “Class G Primary Liquidity Facility,” “Class G Primary
Liquidity Provider,” “Class G Paying Agent Account,” “Class G Trust,”
“Class G Trustee,” “Policy,” “Policy Account” and “Series G Equipment Note”
shall mean “Class G-1 Above-Cap Account,” “Accrued Class G-1 Interest,” “Class G-1
Primary Cash Collateral Account,” “Class G-1 Certificates,” “Class G-1
Certificateholders,” “Class G-1 Deposits,” “Class G-1 Escrow
Receipts,” “Class G-1 Primary Liquidity Facility,” “Class G-1 Primary
Liquidity Provider,” “Class G-1 Paying Agent Account,” “Class G-1
Trust,” “Class G-1 Trustee,” “Class G-1 Policy,” “Class G-1
Policy Account” and “Series G-1 Equipment Note,” respectively.  For the purposes of clause (ii) above, each
reference in paragraphs (a) through (h) of this Section 3.7 to “Above-Cap
Account,” “Accrued Class G Interest,” “Class G Primary Cash
Collateral Account,” “Class G Certificates,” “Class G
Certificateholders,” “Class G Deposits,” “Class G Escrow Receipts,” “Class G
Primary Liquidity Facility,” “Class G Primary Liquidity Provider,” “Class G
Paying Agent Account,” “Class G Trust,” “Class G Trustee,” “Policy,” “Policy
Account” and “Series G Equipment Note” shall mean “Class G-2 Above-Cap Account,”
“Accrued Class G-2 Interest,” “Class G-2 Primary Cash Collateral
Account,” “Class G-2 Certificates,” “Class G-2 Certificateholders,” “Class G-2
Deposits,” “Class G-2 Escrow Receipts,” “Class G-2 Primary Liquidity
Facility,” “Class G-2 Primary Liquidity Provider,” “Class G-2 Paying Agent
Account,” “Class G-2 Trust,” “Class G-2 Trustee,” “Class G-2
Policy,” “Class G-2 Policy Account” and “Series G-2 Equipment Note,”
respectively.”

 

55

 

(a)                                  Interest
Drawings.  If on any Regular
Distribution Date (other than the Final Legal Distribution Date) after giving
effect to the application of available funds in accordance with the
subordination provisions of this Agreement and to the application of Prior
Funds, the Subordination Agent does not then have sufficient funds available
for the payment of all amounts due and owing in respect of accrued and unpaid
interest on the Class G Certificates at the Stated Interest Rate on the
Pool Balance of the Class G Certificates on such Distribution Date (“Accrued Class G Interest”), then the
Subordination Agent (i) prior to 1:00 p.m. (New York City time) on
such Distribution Date shall deliver a Notice for Payment, as provided in the
Policy, to the Policy Provider or its fiscal agent, requesting a Policy Drawing
under the Policy (for payment into the Policy Account) in an amount sufficient
to enable the Subordination Agent to pay such Accrued Class G Interest and
(ii) upon receipt shall pay such amount from the Policy Account to the
Class G Trustee or the Escrow Agent for deposit to the Class G Paying
Agent Account, as the case may be, in payment of such Accrued Class G
Interest on such Distribution Date.

 

(b)                                 Proceeds
Deficiency Drawing.  If on any
Special Distribution Date (which is not also an Election Distribution Date or a
Special Distribution Date established pursuant to the second paragraph of Section 3.7(c))
established by the Subordination Agent by reason of its receipt of a Special
Payment (other than a Special Payment arising from the purchase of any Series G
Equipment Notes by any or all of the Class C Certificateholders pursuant to Section 2.7
of this Agreement) constituting the proceeds of any Series G Equipment Note (as
to which there has been a default in the payment of principal thereof or that
has been Accelerated) or related Collateral (a “Disposition  Payment”)
and if on such Special Distribution Date after giving effect to the application
of available funds (including, without limitation, the amount of such
Disposition Payment) in accordance with the subordination provisions of this
Agreement and to the application of Prior Funds, the Subordination Agent does
not then have sufficient funds available for a reduction in the outstanding
Pool Balance of the Class G Certificates by an amount equal to the
outstanding principal amount of such Series G Equipment Note (determined
immediately prior to the receipt of such proceeds and less any Policy Drawing
previously paid by the Policy Provider in respect of principal of such Series G
Equipment Note) plus accrued and unpaid interest on the amount of such
reduction at the Stated Interest Rate for the Class G Certificates for the
period from the immediately preceding Regular Distribution Date to such Special
Distribution Date, then the Subordination Agent (i) prior to
1:00 p.m. (New York City time) on such Special Distribution Date shall
deliver a Notice for Payment, as provided in the Policy (for payment into the
Policy Account) in an amount sufficient to enable the Subordination Agent to
pay the amount of such reduction plus such accrued and unpaid interest on the
amount of such reduction and (ii) upon receipt shall pay such amount from
the Policy Account to the Class G Trustee in payment of such reduction in
the outstanding Pool Balance of the Class G Certificates plus such accrued
interest on the amount of such reduction on such Special Distribution Date; provided,
however, that, notwithstanding anything to the contrary herein, the
purchase of any Series G Equipment Notes by any or all of the Class C
Certificateholders pursuant to Section 2.7 hereof shall not result in an
amount that is payable by the Policy Provider under this Section 3.7(b)
regardless of whether or not the proceeds of such purchase, together with any
other available funds, are sufficient to reduce the Pool Balance of the Class G
Certificates by an amount equal to the outstanding principal amount of such
Series G Equipment Notes (determined immediately prior to the receipt of such
proceeds and less the amount of any drawings previously paid by the Policy
Provider in respect of principal on such Series G

 

56

 

Equipment Notes)
plus accrued and unpaid interest on the amount of such reduction at the Stated
Interest Rate for the Class G Certificates from the period from the immediately
preceding Regular Distribution Date to such Special Distribution Date.  The Subordination Agent shall promptly, but
no less than 25 days prior to the Special Distribution Date established
pursuant to this Section 3.7(b), send to JetBlue, the Trustees, the
Liquidity Provider for the Class G Primary Liquidity Facility and the Policy
Provider, a written notice of such Special Distribution Date.

 

(c)                                  No
Proceeds Drawing.  If the
Subordination Agent or the Class G Trustee, as the case may be, has not
received a Special Payment constituting proceeds from the sale of a Series G
Equipment Note or the related Collateral (including, without limitation,
proceeds received in connection with the purchase by any or all of the Class C
Certificateholders of any Series G Equipment Note pursuant to Section 2.7
of this Agreement) (a “Disposition”),
as the case may be, during the 21-month period beginning on the last date on
which any payment was made in full on such Series G Equipment Note (the date of
such payment in full, the “Last Payment Date”)
as to which there has been a failure to pay principal or that has been
Accelerated subsequent to the Last Payment Date, then on the first Business Day
following the expiration of such 21-month period, the Subordination Agent shall
deliver a Notice for Payment, as provided in the Policy, to the Policy Provider
or its fiscal agent, requesting a Policy Drawing under the Policy (for payment
into the Policy Account) in an amount equal to the then outstanding principal
amount of such Equipment Note plus accrued and unpaid interest thereon at the
Stated Interest Rate for the Class G Certificates from the immediately
preceding Regular Distribution Date to the below referred to Special
Distribution Date.  The Subordination
Agent shall promptly, but not less than 25 days prior to such Business Day,
send to the Class G Trustee, JetBlue, the Class G Primary Liquidity
Provider and the Policy Provider a Written Notice setting forth the non-receipt
of any such Special Payment and establishing such Business Day as the date for
the distribution of the proceeds of such Policy Drawing, which date shall
constitute a Special Distribution Date. 
No later than 1:00 p.m. (New York City time) on the specified
Special Distribution Date the Subordination Agent shall make the specified
Policy Drawing and upon its receipt of the proceeds thereof pay the amount
thereof from the Policy Account to the Class G Trustee in reduction of the
outstanding Pool Balance of the Class G Certificates together with such
accrued and unpaid interest thereon.  For
the avoidance of doubt, after the payment in full of such amount under this Section 3.7(c),
the Subordination Agent shall have no right to make any further Policy Drawings
under this Section 3.7(c) in respect of any Disposition of or in respect
of such Equipment Note except for Avoided Payments as provided in Section 3.7(e).

 

Notwithstanding the foregoing, the Policy Provider,
has the right at the end of any such 21-month period, so long as no Policy
Provider Default shall have occurred and be continuing, by giving notice to the
Subordination Agent at least five days prior to the end of such 21-month
period, to elect (the “Policy Provider Election”)
instead (A) to pay on such Special Distribution Date an amount equal to
any shortfall in the scheduled principal and interest payable but not paid on
such Series G Equipment Note (without regard to the Acceleration thereof)
during such 21-month period (after giving effect to the application of funds
received from the Class G Primary Liquidity Facility, the Class G
Primary Cash Collateral Account and the Above-Cap Account, in each case
attributable to such interest determined on a consistent basis),
(B) thereafter, on each Regular Distribution Date until the establishment
of an Election Distribution Date or a Special Distribution Date referred to in
clause (C)(i) below, to permit drawings under the Policy for an amount equal to
the scheduled principal (without regard to any

 

57

 

acceleration thereof) and
interest payments (without regard to any funds available under any Liquidity
Facility or any Cash Collateral Account or the Above-Cap Account) at the Stated
Interest Rate for the Class G Certificates payable on such Series G
Equipment Note on the related payment date (each such interest payment, an “Election Interest Payment”) and
(C) (i) on any Business Day (which shall be a Special Distribution
Date) elected by the Policy Provider upon 20 days’ Written Notice to the
Subordination Agent and the Class G Trustee to request the Subordination
Agent, or (ii) following either the occurrence and continuation of a
Policy Provider Default on any Business Day (which shall be a Special
Distribution Date) specified by the Subordination Agent upon 20 days’ Written
Notice to the Class G Trustee (each such Business Day in the case of
clause (ii) an “Election Distribution Date”)
to permit the Subordination Agent, in each case, to make a Policy Drawing for
an amount equal to the then outstanding principal balance of such Equipment
Note less any Policy Drawings previously paid by the Policy Provider in respect
of principal of such Equipment Note and accrued and unpaid interest on such
amounts at the Stated Interest Rate for the Class G Certificates from the
immediately preceding Regular Distribution Date to such Election Distribution
Date or such Special Distribution Date, as the case may be.  The Subordination Agent shall make each such
drawing referred to in this paragraph under the Policy (for payment into the
Policy Account) no later than 1:00 p.m. (New York City time) on each such
date and upon its receipt of the proceeds thereof pay the amount thereof from
the Policy Account to the Class G Trustee in reduction of the outstanding
Pool Balance of the Class G Certificates together with such accrued and
unpaid interest thereon.

 

In addition, regardless of whether or not the Policy
Provider makes a Policy Provider Election, the Policy Provider shall, at the
end of such 21-month period described
in Section 3.7(c), endorse the Policy (if not already endorsed to so
provide) to provide for the payment to the Class G Primary Liquidity Provider with respect to the Class G
Certificates of interest accruing on the outstanding drawings in respect of the
Class G Primary Liquidity
Facility from and after the end of such 21-month period as and when such
interest becomes due in accordance with the Class G Primary Liquidity Facility (“Excess Interest Policy Drawings”).  The Policy Provider hereby agrees not to
otherwise amend or modify the Policy without the consent of the Class G Primary
Liquidity Provider if such amendment or
modification would adversely affect the rights of the Class G Primary
Liquidity Provider.

 

(d)                                 Final
Policy Drawing.  If on the Final
Legal Distribution Date of the Class G Certificates after giving effect to
the distribution of available funds in accordance with the subordination
provisions of this Agreement and to the application of Prior Funds, the
Subordination Agent does not then have sufficient funds available on such date
for the payment in full of the Final Distributions (calculated as of such date
but excluding any accrued and unpaid Additional Payments or other premium) on
the Class G Certificates then the Subordination Agent shall (i) prior
to 1:00 p.m. (New York City time) on such date deliver a Notice for
Payment, as provided in the Policy, to the Policy Provider or its fiscal agent,
requesting a Policy Drawing under the Policy (for payment into the Policy
Account) in an amount equal to the minimum amount sufficient to enable the
Subordination Agent to pay the Final Distributions (calculated as of such date
but excluding any accrued and unpaid premium) on the Class G Certificates,
and (ii) upon receipt pay such amount from the Policy Account to the
Class G Trustee in payment of such amount on such date.

 

58

 

If on the Final Withdrawal Date (as defined in the
Escrow and Paying Agent Agreement for the Class G Certificates) the full
amount of the Class G Deposits has not been used to purchase the
Class G Equipment Notes and there is a shortfall in the amount available
to the Paying Agent for the payment in full of the unpaid principal amount of
the Class G Escrow Receipts then, prior to 1:00 p.m. (New York City time)
on such date, the Subordination Agent shall: (i) deliver a Notice of
Nonpayment, as provided in the Policy, to the Policy Provider or its fiscal
agent, requesting a Policy Drawing under the Policy (for payment into the
Policy Account) in an amount equal to the amount of such shortfall and
(ii) shall pay such amount from the Policy Account to the Paying Agent for
the Class G Trust in payment of such amount on such date.

 

(e)                                  Avoidance
Drawings.  If at any time the
Subordination Agent shall have actual knowledge of the issuance of any Final
Order, the Subordination Agent shall promptly give notice thereof to each
Trustee, the Primary Liquidity Providers and the Policy Provider.  The Subordination Agent shall thereupon
calculate the amount of the relevant Avoided Payments resulting therefrom and
shall promptly:  (a) send to the Class G
Trustee a Written Notice of such amount and (b) prior to the expiration of
the Policy, deliver to the Policy Provider or its fiscal agent a Notice of
Avoided Payment, together with a copy of the documentation required by the
Policy with respect thereto, requesting a Policy Drawing (for payment to the
receiver, conservator, debtor-in-possession or trustee in bankruptcy and/or to
the Subordination Agent for deposit into the Policy Account, as applicable) in
an amount equal to the amount of the relevant Avoided Payment.  To the extent that any portion of such
Avoided Payment is to be paid to the Subordination Agent, such Written Notice
shall also set the date for the distribution of such portion of the proceeds of
such Policy Drawing which date shall constitute a Special Distribution Date and
shall be the earlier of the third Business Day that immediately precedes the
date of the expiration of the Policy and the Business Day that immediately
follows the 25th day after the date of such Written Notice.  No later than 1:00 p.m. (New York City
time) on the third Business Day prior to the specified Special Distribution
Date, the Subordination Agent shall make the specified Policy Drawing (as set
forth in clause (b) above) and upon its receipt of any proceeds thereof, pay
such amounts from the Policy Account to the Class G Trustee in reinstatement
of the Avoided Payment.

 

(f)                                    Application
of Policy Drawings.  Notwithstanding
anything to the contrary contained in this Agreement (including, without
limitation, Sections 2.4 and 3.2 hereof), all payments received by the
Subordination Agent in respect of a Policy Drawing (including, without
limitation, that portion, if any, of the proceeds of a Policy Drawing for any
Avoided Payment that is to be paid to the Subordination Agent and not to any
receiver, conservator, debtor-in-possession or trustee in bankruptcy as
provided in the Policy) shall be promptly paid from the Class G Policy
Account to the Class G Trustee for distribution to the Class G
Certificateholders or to the Escrow Agent for distribution to the holders of
the Class G Escrow Receipts, as the case may be; provided, however,
that any Election Interest Payment with respect to one or more Series G-1
Equipment Notes or Series G-2 Equipment Notes which are for interest that was
previously paid pursuant to Interest Drawings that remain outstanding under the
relevant Liquidity Facility shall be paid directly to the relevant Primary
Liquidity Provider as reimbursement for such Interest Drawing or to the related
Cash Collateral Account as replenishment for such withdrawal, as applicable,
and any Excess Interest Policy Drawings shall be made directly to the
applicable Primary Liquidity Provider.

 

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(g)                                 Limitation
to Outstanding Pool Balance. 
Notwithstanding anything to the contrary in this Section 3.7, except
as provided in Section 3.7(e), at no time shall the Subordination Agent
make any Policy Drawing under clause (b), (c) or (d) of this Section 3.7
in excess of the then outstanding Pool Balance of the Class G Certificates
and accrued and unpaid interest at the Stated Interest Rate on the Class G
Certificates.  Nothing contained in this
Intercreditor Agreement shall alter or amend the liabilities, obligations,
requirements or procedures of the Policy Provider under the Policy and the
Policy Provider shall not be obligated to make payment except at the times and
in the amounts and under the circumstances expressly set forth in the Policy.

 

(h)                                 Resubmission
of Notice for Payment.  If the Policy
Provider at any time informs the Subordination Agent in accordance with the
Policy that a Notice for Payment or Notice of Avoided Payment submitted by the
Subordination Agent does not meet the requirements of the Policy, the
Subordination Agent shall, as promptly as possible after being so informed,
submit to the Policy Provider an amended and revised Notice for Payment or
Notice of Avoided Payment, as the case may be, and shall pay to the
Class G Trustee out of the Policy Account the amount received pursuant to
such amended or revised Notice for Payment or Notice of Avoided Payment, as the
case may be, when received.

 

(i)                                     Subrogation.  The Policy Provider will be subrogated to all
of the rights of the holders of the Class G Certificates to payment on the
Class G Certificates to the extent of the payments made under the Policy as set
forth herein, the exercise of such subrogation rights to be subject to the
other provisions of this Agreement.

 

ARTICLE IV

EXERCISE OF REMEDIES

 

Section 4.1.                                Directions
from the Controlling Party.  (a) (i) Following
the occurrence and during the continuation of an Indenture Event of Default
under any Indenture, the Controlling Party shall direct the Subordination
Agent, which in turn shall direct the Loan Trustee under such Indenture, in the
exercise of remedies available to the holders of the Equipment Notes issued
pursuant to such Indenture, including, without limitation, the ability to vote
all such Equipment Notes in favor of Accelerating such Equipment Notes in
accordance with the provisions of such Indenture.  Subject to the provisions of the next
paragraph, if the Equipment Notes issued pursuant to any Indenture have been
Accelerated following an Indenture Event of Default with respect thereto, the
Controlling Party may direct the Subordination Agent to sell, assign, contract
to sell or otherwise dispose of and deliver all (but not less than all) of such
Equipment Notes to any Person at public or private sale, at any location at the
option of the Controlling Party, all upon such terms and conditions as it may
reasonably deem advisable in accordance with applicable law.

 

(ii)                                  Notwithstanding
the foregoing, so long as any Certificates remain Outstanding, during the
period from the occurrence of an Indenture Event of Default and ending on the
date which is nine months after the earlier of (x) the acceleration of the
Equipment Notes under such Indenture or (y) the occurrence of a JetBlue
Bankruptcy Event, without the consent of each Trustee, (A) no Aircraft
subject to the Lien of such

 

60

 

Indenture or Equipment Notes issued under such
Indenture may be sold if the net proceeds from such sale would be less than the
Minimum Sale Price for such Aircraft or such Equipment Notes and (B) no
Aircraft subject to the Lien of such Indenture may be leased unless either
(x) the rent payments under such lease are sufficient to pay in full the
scheduled payments of principal and interest on the Equipment Notes issued
under such Indenture that become due during the term of such lease or
(y) the term of such lease (including any renewal option exercisable by
the lessee) does not exceed one year.

 

(iii)                               With
respect to any Indenture and subject to Section 4.1(a)(v), upon
(x) the occurrence of a payment default under such Indenture, (y) the
commencement of the exercise of remedies under such Indenture or (z) the
occurrence of a Triggering Event, the Subordination Agent will, unless any such
event described in clause (x) ceases to be in effect, obtain three desktop
appraisals from the Appraisers selected by the Controlling Party setting forth
the current market value, current lease rate and distress value of the aircraft
(in each case, as defined by ISTAT) subject to such Indenture (each such
appraisal, an “Appraisal” and the
current market value appraisals being referred to herein as the “Post-Default Appraisals”).  For so long as any event set forth in
clauses (x), (y) or (z) above shall be continuing, the Subordination Agent
will obtain updated Appraisals on the date that is 364 days from the date of
the most recent Appraisal and if a JetBlue Bankruptcy Event shall have occurred
and is continuing, on the date that is 180 days from the date of the most
recent Appraisal.

 

(iv)                              If
(x) on any Regular Distribution Date the Subordination Agent has
insufficient funds to make the scheduled payments of principal and interest
distributable on the Certificates and (y) a Triggering Event has occurred,
the Subordination Agent will, subject to Section 4.1(a)(v), obtain
Appraisals for each of the Aircraft and shall obtain additional Appraisals
annually thereafter.

 

(v)                                 After
the Subordination Agent has requested the Appraisers to deliver the initial
Appraisals, the Reserve Account will be funded initially up to the Reserve
Amount from amounts distributed under clause “first” of Section 3.2
hereof.  The Subordination Agent shall
have the right to withdraw funds from the Reserve Account to pay for the
initial and any subsequent Appraisals and the Reserve Account will be
replenished up to the Reserve Amount pursuant to clause “first” of Section 3.2
hereof; provided, that, except for the initial funding of the Reserve Account
up to the Reserve Amount, no more than $25,000 will be deposited in the Reserve
Account in any calendar year and no more than $75,000 shall be on deposit in
the Reserve Account at any time.

 

(b)                                 Following
the occurrence and during the continuation of an Indenture Event of Default,
the Controlling Party shall take or shall cause the Subordination Agent to take
such actions as it may reasonably deem most effectual to complete the sale or
other disposition of such Aircraft or Equipment Notes.  In addition, in lieu of any sale, assignment,
contract to sell or other disposition, the Controlling Party may maintain or
cause the Subordination Agent to maintain possession of such Equipment Notes
and continue to apply monies received in respect of such Equipment Notes in
accordance with Article III hereof. 
In addition, in lieu of such sale, assignment, contract to sell or other
disposition, or in lieu of such maintenance of possession, the

 

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Controlling Party
may, subject to the terms and conditions of the related Indenture, instruct the
Loan Trustee under such Indenture to foreclose on the Lien on the related
Aircraft or to take any other remedial action permitted under such Indenture or
under any applicable law.

 

Section 4.2.                                Remedies
Cumulative.  Each and every right,
power and remedy given to the Trustees, the Liquidity Providers, the Policy
Provider, the Controlling Party or the Subordination Agent specifically or
otherwise in this Agreement shall be cumulative and shall be in addition to
every other right, power and remedy herein specifically given or now or
hereafter existing at law, in equity or by statute, and each and every right,
power and remedy whether specifically herein given or otherwise existing may,
subject always to the terms and conditions hereof, be exercised from time to
time and as often and in such order as may be deemed expedient by any Trustee,
any Liquidity Provider, the Policy Provider, the Controlling Party or the
Subordination Agent, as appropriate, and the exercise or the beginning of the
exercise of any power or remedy shall not be construed to be a waiver of the
right to exercise at the same time or thereafter any other right, power or
remedy.  No delay or omission by any
Trustee, any Liquidity Provider, the Policy Provider, the Controlling Party or
the Subordination Agent in the exercise of any right, remedy or power or in the
pursuit of any remedy shall impair any such right, power or remedy or be
construed to be a waiver of any default or to be an acquiescence therein.

 

Section 4.3.                                Discontinuance
of Proceedings.  In case any party to
this Agreement (including the Controlling Party in such capacity) shall have
instituted any Proceeding to enforce any right, power or remedy under this
Agreement by foreclosure, entry or otherwise, and such Proceeding shall have
been discontinued or abandoned for any reason or shall have been determined
adversely to the Person instituting such Proceeding, then and in every such
case each such party shall, subject to any determination in such Proceeding, be
restored to its former position and rights hereunder, and all rights, remedies
and powers of such party shall continue as if no such Proceeding had been
instituted.

 

Section 4.4.                                Right
of Certificateholders to Receive Payments Not to Be Impaired.  Anything in this Agreement to the contrary
notwithstanding but subject to each Trust Agreement, the right of any
Certificateholder, the Primary Liquidity Provider or the Policy Provider,
respectively, to receive payments hereunder (including without limitation
pursuant to Section 2.4 or 3.2 hereof) when due, or to institute suit for
the enforcement of any such payment on or after the applicable Distribution
Date, shall not be impaired or affected without the consent of such
Certificateholder, Primary Liquidity Provider or Policy Provider, respectively.

 

Section 4.5.                                Undertaking
for Costs.  In any Proceeding for the
enforcement of any right or remedy under this Agreement or in any Proceeding
against any Controlling Party or the Subordination Agent for any action taken
or omitted by it as Controlling Party or Subordination Agent, as the case may
be, a court in its discretion may require the filing by any party litigant in
the suit of an undertaking to pay the costs of the suit, and the court in its
discretion may assess reasonable costs, including reasonable attorneys’ fees
and expenses, against any party litigant in the suit, having due regard to the
merits and good faith of the claims or defenses made by the party
litigant.  The provisions of this Section do
not apply to a suit instituted by the Subordination Agent, a Liquidity
Provider, the Policy Provider or a Trustee or a suit by Certificateholders
holding more than 10% of the original principal amount of any Class of
Certificates.

 

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ARTICLE V

DUTIES OF THE SUBORDINATION AGENT; AGREEMENTS OF TRUSTEES, ETC.

 

Section 5.1.                                Notice
of Indenture Default, Indenture Event of Default or Triggering Event.  (a) In the event the Subordination Agent
shall have actual knowledge of the occurrence of an Indenture Default,
Indenture Event of Default or a Triggering Event, as promptly as practicable,
and in any event within 10 days after obtaining knowledge thereof, the
Subordination Agent shall transmit by mail or courier to the Rating Agencies,
the Liquidity Providers, the Policy Provider and the Trustees notice of such
Indenture Default, Indenture Event of Default or Triggering Event, unless such
Indenture Default, Indenture Event of Default or Triggering Event shall have
been cured or waived by the Controlling Party. 
For all purposes of this Agreement, in the absence of actual knowledge
on the part of a Responsible Officer, the Subordination Agent shall not be
deemed to have knowledge of any Indenture Default, Indenture Event of Default
or Triggering Event unless notified in writing by one or more Trustees, one or
more Liquidity Providers, the Policy Provider or one or more
Certificateholders.

 

(b)                                 Other
Notices.  The Subordination Agent
will furnish to each Liquidity Provider, the Policy Provider and each Trustee,
promptly upon receipt thereof, duplicates or copies of all reports, notices,
requests, demands, certificates, financial statements and other instruments
furnished to the Subordination Agent as registered holder of the Equipment
Notes or otherwise in its capacity as Subordination Agent to the extent the
same shall not have been otherwise directly distributed to such Liquidity
Provider, Policy Provider or Trustee, as applicable, pursuant to the express
provision of any other Operative Agreement.

 

(c)                                  Securities
Position.  Upon the occurrence of an
Indenture Event of Default, the Subordination Agent shall instruct the Trustees
to, and the Trustees shall, request that DTC post on its Internet bulletin
board a securities position listing setting forth the names of all the parties
reflected on DTC’s books as holding interests in the certificates.

 

(d)                                 Reports.
Promptly after the occurrence of a Triggering Event or an Indenture Event of
Default resulting from the failure of JetBlue to make payments on any Equipment
Note and on every Regular Distribution Date while the Triggering Event or such
Indenture Event of Default shall be continuing, the Subordination Agent will
provide to the Trustees, Liquidity Providers, Policy Provider, Rating Agencies
and JetBlue a statement, substantially in the form of Exhibit A hereto,
setting forth the following information:

 

(i)                                     after
a JetBlue Bankruptcy Event, with respect to each Aircraft, whether such
Aircraft is (A) subject to the 60-day period of Section 1110 of the
Bankruptcy Code, (B) subject to an election by JetBlue under Section 1110(a)
of the Bankruptcy Code; (C) covered by an agreement contemplated by Section 1110(b)
of the Bankruptcy Code or (D) not subject to any of (A), (B) or (C);

 

(ii)                                  to
the best of the Subordination Agent’s knowledge, after requesting such
information from JetBlue, (A) whether the Aircraft are currently in
service or parked in storage, (B) the maintenance status of the Aircraft
and (C) location of the Engines (as defined in the Indentures);

 

63

 

(iii)                               the
current Pool Balance of each Class of Certificates and outstanding principal
amount of all Equipment Notes;

 

(iv)                              the
expected amount of interest which will have accrued on the Equipment Notes and
on the Certificates as of the next Regular Distribution Date;

 

(v)                                 the
amounts paid to each person on such Distribution Date pursuant to this
Agreement;

 

(vi)                              details
of the amounts paid on such Distribution Date identified by reference to the
relevant provision of this Agreement and the source of payment (by Aircraft and
party);

 

(vii)                           if any
Primary Liquidity Provider has made a Final Advance;

 

(viii)                        the
amounts currently owed to any Primary Liquidity Provider;

 

(ix)                                the
amounts drawn under each Liquidity Facility by Class;

 

(x)                                   the
amounts owed to the Policy Provider; and

 

(xi)                                after
a JetBlue Bankruptcy Event, any operational reports filed by JetBlue with the
Bankruptcy Court which are available to the Subordination Agent on a
non-confidential basis.

 

Section 5.2.                                Indemnification.  The Subordination Agent shall not be required
to take any action or refrain from taking any action under Article IV
hereof unless the Subordination Agent shall have been indemnified (to the
extent and in the manner reasonably satisfactory to the Subordination Agent)
against any liability, cost or expense (including counsel fees and expenses)
which may be incurred in connection therewith. 
The Subordination Agent shall not be under any obligation to take any
action under this Agreement and nothing contained in this Agreement shall
require the Subordination Agent to expend or risk its own funds or otherwise
incur any financial liability in the performance of any of its duties hereunder
or in the exercise of any of its rights or powers if it shall have reasonable
grounds for believing that repayment of such funds or adequate indemnity
against such risk or liability is not reasonably assured to it.  The Subordination Agent shall not be required
to take any action under Article IV hereof, nor shall any other provision
of this Agreement be deemed to impose a duty on the Subordination Agent to take
any action, if the Subordination Agent shall have been advised by counsel that
such action is contrary to the terms hereof or is otherwise contrary to law.

 

Section 5.3.                                No
Duties Except as Specified in Intercreditor Agreement.  The Subordination Agent shall not have any
duty or obligation to take or refrain from taking any action under, or in
connection with, this Agreement, except as expressly provided by the terms of
this Agreement; and no implied duties or obligations shall be read into this
Agreement against the Subordination Agent. 
The Subordination Agent agrees that it will, in its individual capacity
and at its own cost and expense (but without any right of indemnity in respect
of any such cost or expense under Section 7.1 hereof) promptly take such
action as may be necessary to duly discharge all Liens on any of the Trust
Accounts or any monies deposited therein which result

 

64

 

from claims
against it in its individual capacity not related to its activities hereunder
or any other Operative Agreement.

 

Section 5.4.                                Notice
from the Liquidity Providers and Trustees. 
If any Liquidity Provider or any Trustee has notice of an Indenture
Event of Default or a Triggering Event, such Person shall promptly give notice
thereof to all of the other parties hereto, provided, however, that no such
Person shall have any liability hereunder as a result of its failure to deliver
any such notice.

 

Section 5.5.                                Agreements
Relating to the Above-Cap Liquidity Facility.  Each of the Subordination Agent and the
Trustees agree at the request of any Above-Cap Liquidity Provider to use
reasonable efforts (consistent with applicable legal and regulatory
restrictions) to take any action that would avoid the need for, or reduce the
amount of, any payment under Section 2(d) of the ISDA Master Agreement
forming part of the related Above-Cap Liquidity Facility; provided that any
such action would not, in the reasonable judgment of such Person, be materially
disadvantageous to it.  Notwithstanding
anything to the contrary contained herein, but without limiting, and subject
to, the rights of the Subordination Agent hereunder, the obligation of any
Above-Cap Liquidity Provider to make any Above-Cap Payment or pay any Termination
Amount shall be governed exclusively by the applicable Above-Cap Liquidity
Facility.

 

ARTICLE VI

THE SUBORDINATION AGENT

 

Section 6.1.                                Authorization;
Acceptance of Trusts and Duties. 
Each of the Class G-1 Trustee, the Class G-2 Trustee and the
Class C Trustee hereby designates and appoints the Subordination Agent as
the agent and trustee of such Trustee under the applicable Liquidity Facility
(and, in the case of the Class G-1 Trustee and the Class G-2 Trustee,
the Policy Provider Agreement) and authorizes the Subordination Agent to enter
into the applicable Liquidity Facility (and, in the case of the Class G-1
Trustee and the Class G-2 Trustee, the Policy Provider Agreement) as agent
and trustee for such Trustee.  Each of
the Liquidity Providers, the Policy Provider and the Trustees hereby designates
and appoints the Subordination Agent as the Subordination Agent under this
Agreement.  WTC hereby accepts the duties
hereby created and applicable to it as the Subordination Agent and agrees to
perform the same but only upon the terms of this Agreement and agrees to
receive and disburse all monies received by it in accordance with the terms
hereof.  The Subordination Agent shall
not be answerable or accountable under any circumstances, except (a) for
its own willful misconduct or gross negligence (or ordinary negligence in the
handling of funds actually received by it in accordance with the terms hereof
or any Operative Agreement), (b) as provided in Sections 2.2 and 5.3
hereof and (c) for liabilities that may result from the inaccuracy of any
representation or warranty of the Subordination Agent made in its individual
capacity in any Operative Agreement.  The
Subordination Agent shall not be liable for any error of judgment made in good
faith by a Responsible Officer of the Subordination Agent, unless it is proved
that the Subordination Agent was negligent in ascertaining the pertinent facts.

 

65

 

Section 6.2.                                Absence
of Duties.  The Subordination Agent shall
have no duty to see to any recording or filing of this Agreement or any other
document, or to see to the maintenance of any such recording or filing, unless
otherwise provided for in the Operative Agreements.

 

Section 6.3.                                No
Representations or Warranties as to Documents.  The Subordination Agent in its individual
capacity does not make nor shall be deemed to have made any representation or
warranty as to the validity, legality or enforceability of this Agreement or
any other Operative Agreement or as to the correctness of any statement
contained in any thereof, except for the representations and warranties of the
Subordination Agent, made in its individual capacity, under any Operative
Agreement to which it is a party.  The
Certificateholders, the Trustees, the Liquidity Providers and the Policy
Provider make no representation or warranty hereunder whatsoever.

 

Section 6.4.                                No
Segregation of Monies; No Interest. 
Any monies paid to or retained by the Subordination Agent pursuant to
any provision hereof and not then required to be distributed to any Trustee,
any Liquidity Provider or the Policy Provider as provided in Articles II
and III hereof or deposited into one or more Trust Accounts need not be
segregated in any manner except to the extent required by such Articles II
and III and by law, and the Subordination Agent shall not (except as
otherwise provided in Section 2.2 hereof) be liable for any interest
thereon; provided, however, that any payments received or applied hereunder by
the Subordination Agent shall be accounted for by the Subordination Agent so
that any portion thereof paid or applied pursuant hereto shall be identifiable
as to the source thereof.

 

Section 6.5.                                Reliance;
Agents; Advice of Counsel.  The
Subordination Agent shall not incur liability to anyone in acting upon any
signature, instrument, notice, resolution, request, consent, order,
certificate, report, opinion, bond or other document or paper believed by it to
be genuine and believed by it to be signed by the proper party or parties.  As to the Pool Balance of any Trust as of any
date, the Subordination Agent may for all purposes hereof rely on a certificate
signed by any Responsible Officer of the applicable Trustee, and such
certificate shall constitute full protection to the Subordination Agent for any
action taken or omitted to be taken by it in good faith in reliance
thereon.  As to any fact or matter
relating to the Liquidity Providers, the Policy Provider or the Trustees the
manner of ascertainment of which is not specifically described herein, the
Subordination Agent may for all purposes hereof rely on a certificate, signed
by any Responsible Officer of the applicable Liquidity Provider, Policy
Provider or Trustee, as the case may be, as to such fact or matter, and such certificate
shall constitute full protection to the Subordination Agent for any action
taken or omitted to be taken by it in good faith in reliance thereon.  The Subordination Agent shall assume, and
shall be fully protected in assuming, that each of the Liquidity Providers, the
Policy Provider and each of the Trustees are authorized to enter into this
Agreement and to take all action to be taken by them pursuant to the provisions
hereof, and shall not inquire into the authorization of each of the Liquidity Providers,
the Policy Provider and Trustees with respect thereto.  In the administration of the trusts
hereunder, the Subordination Agent may execute any of the trusts or powers
hereof and perform its powers and duties hereunder directly or through agents
or attorneys and may consult with counsel, accountants and other skilled
persons to be selected and retained by it, and the Subordination Agent shall
not be liable for the acts or omissions of any agent selected and appointed
with due care or for anything done, suffered or omitted in good faith by it in

 

66

 

accordance with
the advice or written opinion of any such counsel, accountants or other skilled
persons.

 

Section 6.6.                                Capacity
in Which Acting.  The Subordination
Agent acts hereunder solely as agent and trustee herein and not in its
individual capacity, except as otherwise expressly provided in the Operative
Agreements.

 

Section 6.7.                                Compensation.  The Subordination Agent shall be entitled to
reasonable compensation, including reimbursement for reasonable expenses and
disbursements, except with respect to any Unindemnified Taxes incurred by the
Subordination Agent in connection with the transactions contemplated by this
Agreement for all services rendered hereunder and shall have a priority claim
to the extent set forth in Article III hereof on all monies collected
hereunder for the payment of such compensation (other than any Unindemnified
Taxes), to the extent that such compensation shall not be paid by others.  The Subordination Agent agrees that it shall
have no right against any Trustee, Liquidity Provider or the Policy Provider
for any fee as compensation for its services as agent under this Agreement.  The provisions of this Section 6.7 shall
survive the termination of this Agreement.

 

Section 6.8.                                [Intentionally
Omitted.]

 

Section 6.9.                                Subordination
Agent Required; Eligibility.  There
shall at all times be a Subordination Agent hereunder which shall be a bank,
trust company, corporation or other financial institution organized and doing
business under the laws of the United States of America or of any State or the
District of Columbia having a combined capital and surplus of at least
$100,000,000 (or the obligations of which, whether now in existence or hereafter
incurred, are fully and unconditionally guaranteed by a corporation organized
and doing business under the laws of the United States of America, any State
thereof or of the District of Columbia and having a combined capital and
surplus of at least $100,000,000), if there is such an institution willing and
able to perform the duties of the Subordination Agent hereunder upon reasonable
or customary terms.  Such Person shall be
a citizen of the United States and shall be authorized under the laws of the
United States or any State thereof or of the District of Columbia to exercise
corporate trust powers and shall be subject to supervision or examination by
federal, state or District of Columbia authorities.  If such Person publishes reports of condition
at least annually, pursuant to law or to the requirements of any of the
aforesaid supervising or examining authorities, then, for the purposes of this Section 6.9,
the combined capital and surplus of such Person shall be deemed to be its
combined capital and surplus as set forth in its most recent report of
condition so published.

 

In case at any time the Subordination Agent shall
cease to be eligible in accordance with the provisions of this Section, the
Subordination Agent shall resign immediately in the manner and with the effect
specified in Section 8.1.

 

Section 6.10.                         Money
to Be Held in Trust.  All Equipment
Notes, monies and other property deposited with or held by the Subordination
Agent pursuant to this Agreement shall be held in trust for the benefit of the
parties entitled to such Equipment Notes, monies and other property.  All such Equipment Notes, monies or other
property shall be held in the Trust Department of the institution acting as
Subordination Agent hereunder.

 

67

 

ARTICLE VII

INDEMNIFICATION OF SUBORDINATION AGENT

 

Section 7.1.                                Scope
of Indemnification.  The
Subordination Agent shall be indemnified hereunder to the extent and in the
manner described in Section 7.1 of the Participation Agreements and Section 6
of the Note Purchase Agreement.  The
indemnities contained in such Sections of such agreements shall survive
the resignation or removal of the Subordination Agent and the termination of
this Agreement.

 

ARTICLE VIII

SUCCESSOR SUBORDINATION AGENT

 

Section 8.1.                                Replacement
of Subordination Agent; Appointment of Successor.  The Subordination Agent may resign at any
time by so notifying each Trustee, each Liquidity Provider and the Policy
Provider.  The Controlling Party may
remove the Subordination Agent for cause by so notifying the Subordination
Agent and may appoint a successor Subordination Agent.  The Controlling Party shall remove the
Subordination Agent if:

 

(1)                                  the
Subordination Agent fails to comply with Section 6.9 hereof;

 

(2)                                  the
Subordination Agent is adjudged bankrupt or insolvent or files a bankruptcy
petition;

 

(3)                                  a
receiver or other public officer takes charge of the Subordination Agent or its
property; or

 

(4)                                  the
Subordination Agent otherwise becomes incapable of acting.

 

If the Subordination Agent resigns or is removed or if
a vacancy exists in the office of Subordination Agent for any reason (the
Subordination Agent in such event being referred to herein as the retiring
Subordination Agent), the Controlling Party shall promptly appoint a successor
Subordination Agent.

 

A successor Subordination Agent shall deliver
(x) a written acceptance of its appointment as Subordination Agent
hereunder to the retiring Subordination Agent and (y) a written assumption
of its obligations hereunder and under each Liquidity Facility and the Policy
Provider Agreement to each party hereto, upon which the resignation or removal
of the retiring Subordination Agent shall become effective, and the successor
Subordination Agent shall have all the rights, powers and duties of the
Subordination Agent under this Agreement. 
The successor Subordination Agent shall mail a notice of its succession
to the Liquidity Providers, the Policy Provider and the Trustees.  The retiring Subordination Agent shall
promptly transfer its rights under each of the Liquidity Facilities and all of
the property held by it as Subordination Agent to the successor Subordination
Agent.

 

If a successor Subordination Agent does not take
office within 60 days after the retiring Subordination Agent resigns or is
removed, the retiring Subordination Agent or one or more of

 

68

 

the Trustees may petition
any court of competent jurisdiction for the appointment of a successor
Subordination Agent.

 

If the Subordination Agent fails to comply with Section 6.9
hereof (to the extent applicable), one or more of the Trustees, one or more of
the Liquidity Providers or the Policy Provider may petition any court of
competent jurisdiction for the removal of the Subordination Agent and the
appointment of a successor Subordination Agent.

 

Notwithstanding the foregoing, no resignation or
removal of the Subordination Agent shall be effective unless and until a
successor has been appointed.  No
appointment of a successor Subordination Agent shall be effective unless and
until the Rating Agencies shall have delivered a Ratings Confirmation and, so
long as no Policy Provider Default has occurred and is continuing, the Policy
Provider shall have consented to such successor Subordination Agent.

 

ARTICLE IX

SUPPLEMENTS AND AMENDMENTS

 

Section 9.1.                                Amendments,
Waivers, Etc.  (a) This
Agreement may not be supplemented, amended or modified without the consent of
each Trustee (acting, except in the case of any amendment pursuant to Section 3.6(e)(v)(y)
hereof with respect to any Replacement Primary Liquidity Facility, any
amendment pursuant to Section 3.6(c)(ii)(z) hereof with respect to any
Replacement Above-Cap Liquidity Facility or any amendment contemplated by the
last sentence of this Section 9.1(a), with the consent of holders of
Certificates of the related Class evidencing interests in the related Trust
aggregating not less than a majority in interest in such Trust or as otherwise
authorized pursuant to the relevant Trust Agreement), the Subordination Agent,
each Liquidity Provider and the Policy Provider; provided, however, that this
Agreement may be supplemented, amended or modified without the consent of
(x) any Trustee or the Liquidity Providers if such supplement, amendment
or modification cures an ambiguity or inconsistency or does not materially,
adversely affect such Trustee or the holders of the related Class of
Certificates or any Liquidity Provider; provided further, however, that, if
such supplement, amendment or modification (A) would (x) directly or
indirectly modify or supersede, or otherwise conflict with, Section 2.2(b),
Section 2.4(a), Section 2.4(b), Section 3.2, Section 3.4, Section 3.6(e),
Section 3.6(f), Section 3.6(l), the last sentence of this Section 9.1(a),
the second sentence of Section 10.6 or this proviso (collectively, the “JetBlue Provisions”) or (y) otherwise
adversely affect the interests of a potential Replacement Primary Liquidity
Provider or of JetBlue with respect to its ability to replace any Primary
Liquidity Facility or with respect to its payment obligations under any
Operative Agreement or (B) is made pursuant to the last sentence of this Section 9.1(a),
then such supplement, amendment or modification shall not be effective without
the additional written consent of JetBlue. 
Notwithstanding the foregoing, without the consent of each
Certificateholder and each Liquidity Provider and the Policy Provider, no
supplement, amendment or modification of this Agreement may (i) reduce the
percentage of the interest in any Trust evidenced by the Certificates issued by
such Trust necessary to consent to modify or amend any provision of this
Agreement or to waive compliance therewith, (ii) except as provided in the
last sentence of this Section 9.1(a), modify Section 2.4 or 3.2
hereof, relating to the distribution of monies received by the Subordination
Agent hereunder from the Equipment Notes or pursuant to the Liquidity
Facilities or either

 

69

 

Policy or
(iii) modify the definition of “Reserve Amount”.  Nothing contained in this Section shall
require the consent of a Trustee at any time following the payment of Final
Distributions with respect to the related Class of Certificates.  If the Replacement Primary Liquidity Facility
for any Primary Liquidity Facility in accordance with Section 3.6(e)
hereof is to be comprised of more than one instrument as contemplated by the
definition of the term “Replacement Primary Liquidity Facility”, then each of
the parties hereto agrees to amend this Agreement to incorporate appropriate
mechanics for multiple Primary Liquidity Facilities for an individual Trust.

 

(b)                                 In
the event that the Subordination Agent, as the registered holder of any
Equipment Notes, receives a request for its consent to any amendment,
modification, supplement, approval, consent or waiver under such Equipment
Notes, the Indenture pursuant to which such Equipment Notes were issued or the
related Participation Agreement or other related document, (i) if no
Indenture Event of Default shall have occurred and be continuing with respect
to such Indenture, the Subordination Agent shall request directions with
respect to each Series of such Equipment Notes from the Trustee of the Trust which
holds such series of such Equipment Notes and shall vote or consent in
accordance with the directions of such Trustee except that so long as the Final
Distribution on the Class G-1 Certificates and Class G-2 Certificates
has not been made or any Policy Provider Amounts remain outstanding and no
Policy Provider Default shall have occurred and be continuing, the
Subordination Agent shall request directions from the Policy Provider rather
than the Class G-1 Trustee with respect to the Series G-1 Equipment Notes held
in the Class G-1 Trust or the Class G-2 Trustee with respect to the
Series G-2 Equipment Notes held in the Class G-2 Trust and (ii) if
any Indenture Event of Default shall have occurred and be continuing with
respect to such Indenture, the Subordination Agent will exercise its voting
rights as directed by the Controlling Party, subject to Sections 4.1 and
4.4 hereof, provided that no such amendment, modification or waiver shall,
without the consent of each affected Certificateholder and each Liquidity Provider
and the Policy Provider (w) reduce the amount of principal or interest
payable by JetBlue under any Equipment Note issued under any Indenture or amend
Schedule I of any Indenture, (x) modify any of the provisions of Section 10.01,
or of Article II or III or Section 5.01, 5.02(c), 5.02(d), 6.01
or 6.02 of any Indenture, the definitions of “Collateral,” “Event of Default,” “Default,”
“Majority in Interest of Note Holders,” “Three-Month LIBOR,” “Break Amount,” “Prepayment
Premium” or “Note Holder,” or the percentage of Note Holders required to take
or approve any action under the Indentures, (y) reduce, modify or amend
any indemnities in favor of the Loan Trustee or the Note Holders (except that
the Loan Trustee may consent to any waiver or reduction of an indemnity payable
to it), or (z) permit the creation of any Lien on the Collateral (as
defined in the relevant Indenture) or any part thereof other than Permitted
Liens (as defined in the Indentures) or deprive any Note Holder of the benefit
of the Lien of such Indenture on the Collateral, except as provided in
connection with the exercise of remedies under such Indenture.

 

Section 9.2.                                Subordination
Agent Protected.  If, in the
reasonable opinion of the institution acting as the Subordination Agent hereunder,
any document required to be executed pursuant to the terms of Section 9.1
adversely affects any right, duty, immunity or indemnity with respect to it
under this Agreement, any Liquidity Facility or the Policy, the Subordination
Agent may in its discretion decline to execute such document.

 

70

 

Section 9.3.                                Effect
of Supplemental Agreements.  Upon the
execution of any amendment, consent or supplement hereto pursuant to the
provisions hereof, this Agreement shall be and be deemed to be and shall be
modified and amended in accordance therewith and the respective rights,
limitations of rights, obligations, duties and immunities under this Agreement
of the parties hereto and beneficiaries hereof shall thereafter be determined,
exercised and enforced hereunder subject in all respects to such modifications
and amendments, and all the terms and conditions of any such supplemental
agreement shall be and be deemed to be and shall be part of the terms and
conditions of this Agreement for any and all purposes.  In executing or accepting any supplemental
agreement permitted by this Article IX, the Subordination Agent shall be
entitled to receive at its cost, and shall be fully protected in relying upon,
an opinion of counsel stating that the execution of such supplemental agreement
is authorized or permitted by this Agreement.

 

Section 9.4.                                Notice
and Information to Rating Agencies.  (a) 
The Subordination Agent shall (i) promptly following its receipt of each
amendment, consent, modification, supplement or waiver contemplated by this Article IX,
send a copy thereof to each Rating Agency, each Primary Liquidity Provider and
the Policy Provider and (ii) promptly following its receipt of a direction
from the Controlling Party hereunder, send a copy of such direction to each
Rating Agency; provided, however, that (x) any failure by
the Subordination Agent to furnish a copy of any such amendment, consent,
modification, supplement, waiver or direction to any Rating Agency shall not
affect the validity or effect of such amendment, consent, modification,
supplement, waiver or direction, (y) the provision of a copy of such
amendment, consent, modification, supplement, waiver or direction to the Rating
Agencies shall be for informational purposes only and shall not affect the
rights and remedies available to the Policy Provider, any Primary Liquidity
Provider or Controlling Party hereunder or under any Operative Agreement and
(z) the provision by the Subordination Agent of, or failure by the
Subordination Agent to furnish, a copy of such amendment, consent,
modification, supplement, waiver or direction to the Rating Agencies shall not
affect any provision hereof requiring a Ratings Confirmation.

 

(b)                                 Each
Rating Agency shall be entitled to the same access to the Subordination Agent
and the Trustees as the Certificateholders of any Class with respect to
information relevant to maintaining such Rating Agency’s ratings on the
Certificates.

 

ARTICLE X

MISCELLANEOUS

 

Section 10.1.                         Termination
of Intercreditor Agreement. 
Following payment of Final Distributions with respect to each Class of
Certificates and the payment in full of all Liquidity Obligations to the
Primary Liquidity Providers and all Policy Provider Obligations to the Policy
Provider and provided that there shall then be no other amounts due to the
Certificateholders, the Trustees, the Liquidity Providers, the Policy Provider
and the Subordination Agent hereunder or under the Trust Agreements, and that
the commitment of the (i) Liquidity Providers under the Liquidity
Facilities and (ii) Policy Provider under the Policy shall have expired or
been terminated, this Agreement and the trusts created hereby shall terminate
and this Agreement shall be of no further force or effect.  Except as aforesaid or otherwise provided,
this Agreement and

 

71

 

the trusts created
hereby shall continue in full force and effect in accordance with the terms
hereof.

 

Section 10.2.                         Intercreditor
Agreement for Benefit of Trustees, Liquidity Providers, the Policy Provider and
Subordination Agent.  Subject to the
second sentence of Section 10.6 and the provisions of Sections 4.4
and 9.1, nothing in this Agreement, whether express or implied, shall be
construed to give to any Person other than the Trustees, the Liquidity
Providers, the Policy Provider and the Subordination Agent any legal or
equitable right, remedy or claim under or in respect of this Agreement.

 

Section 10.3.                         Notices.  Unless otherwise expressly specified or
permitted by the terms hereof, all notices, requests, demands, authorizations,
directions, consents, waivers or documents provided or permitted by this
Agreement to be made, given, furnished or filed shall be in writing, mailed by
certified mail, postage prepaid, or by confirmed telecopy and:

 

(i)                                     if
to the Subordination Agent, addressed to at its office at:

 

WILMINGTON TRUST COMPANY

Rodney Square North

1100 N. Market Street

Wilmington, DE  19890-0001

 

Attention:                                         Corporate
Trust Administration

Telecopy:                                           (302) 636-4140

 

(ii)                                  if
to any Trustee, addressed to it at its office at:

 

WILMINGTON TRUST COMPANY

Rodney Square North

1100 N. Market Street

Wilmington, DE  19890-0001

 

Attention:                                         Corporate
Trust Administration

Telecopy:                                           (302) 636-4140

 

(iii)                               if
to the initial Primary Liquidity Provider, addressed to it at its office at:

 

LANDESBANK
BADEN-WÜRTTEMBERG

Am Hauptbahnhof 2

D-70173 Stuttgart

Germany

Attention:  Structured Finance

Telephone:  +49 711 124-9757

Telecopy:    +49 711 124-9747

 

72

 

with a copy to:

 

LANDESBANK BADEN-WÜRTTEMBERG

280 Park Avenue, West Building,
31st Floor

New York, New York, 10017

Attention:                                         Claudia
Rothe, Vice President

Vincent Chen/Bette Smolen, Assistant Vice President

Telephone:                                    (212)
584-1700

Telecopy:                                           (212)
584-1729

 

(iv)                              if
to the Above-Cap Liquidity Provider, addressed to it at its office at:

 

CITIBANK, N.A.

250 West Street, 10th Floor

New York, New York 10013

Attention:  Director Derivatives Operations

Telecopy:                                           212-723-2956

(For all
purposes)

 

with a copy to:

 

Citibank, N.A.

Legal Department

77 Water Street

9th Floor

New York, New York 10004

Attention:                                         Department
Head

Telecopy:  212-657-1452

 

(v)                                 if
to the initial Policy Provider, addressed to it at its office at:

 

MBIA Insurance Corporation

113 King Street

Armonk, New York  10504

Attention:                                         Insured
Portfolio Management, Structural Finance

Telephone:                                    914-273-4949

Telecopy:                                           914-765-3163

 

Whenever any
notice in writing is required to be given by any Trustee, any Liquidity Provider,
Policy Provider or the Subordination Agent to any of the other of them, such
notice shall be deemed given and such requirement satisfied when such notice is
received unless received outside of business hours, in which case on the open
of business on the next Business Day.  A
copy of any notice given by the Trustee, any Liquidity Provider or the
Subordination Agent shall be given to the Policy Provider; provided that the
failure to do so shall not impair the validity of any such notice or the Policy
Provider’s obligations hereunder and under the Policy.  Any party hereto may change the address to
which notices to such party will be sent by giving notice of such change to the
other parties to this Agreement.

 

73

 

Section 10.4.                         Severability.  Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

 

Section 10.5.                         No
Oral Modifications or Continuing Waivers. 
No terms or provisions of this Agreement may be changed, waived,
discharged or terminated orally, but only by an instrument in writing signed by
the party or other Person against whom enforcement of the change, waiver,
discharge or termination is sought and any other party or other Person whose
consent is required pursuant to this Agreement and any waiver of the terms
hereof shall be effective only in the specific instance and for the specific
purpose given.

 

Section 10.6.                         Successors
and Assigns.  All covenants and
agreements contained herein shall be binding upon, and inure to the benefit of,
each of the parties hereto and the successors and assigns of each, all as
herein provided.  In addition, the
JetBlue Provisions shall inure to the benefit of JetBlue and its successors and
assigns, and (without limitation of the foregoing) JetBlue is hereby
constituted, and agreed to be, an express third party beneficiary of the
JetBlue Provisions.  Upon the occurrence
of the Transfers contemplated by the Assignment and Assumption Agreements, the
Trustee of each Class shall (without any further act) be deemed to have
transferred all of its rights, title and interest in and to this Agreement to
the trustee of the Successor Trust of the same Class and, thereafter, the
trustee of each Successor Trust shall be deemed to be the “Trustee” of such
Successor Trust with the rights and obligations of a “Trustee” hereunder and
under the other Operative Agreements and each reference to a Trust of any Class
herein shall be deemed a reference to the Successor Trust of such Class.

 

Section 10.7.                         Headings.  The headings of the various Articles and
Sections herein and in the table of contents hereto are for convenience of
reference only and shall not define or limit any of the terms or provisions
hereof.

 

Section 10.8.                         Counterpart
Form.  This Agreement may be executed
by the parties hereto in separate counterparts, each of which when so executed
and delivered shall be an original, but all such counterparts shall together
constitute but one and the same agreement.

 

Section 10.9.                         Subordination.  (a) As between the Liquidity Providers
and the Policy Provider, on the one hand, and the Trustees and the
Certificateholders, on the other hand, and as among the Trustees, this
Agreement shall be a subordination agreement for purposes of Section 510
of the United States Bankruptcy Code, as amended from time to time.

 

(b)                                 Notwithstanding
the provisions of this Agreement, if prior to the payment in full to the
Primary Liquidity Providers of all Liquidity Obligations then due and payable
and Policy Provider of all Policy Provider Amounts, any party hereto shall have
received any payment or distribution in respect of Equipment Notes or any other
amount under the Indentures or other Operative Agreements which, had the subordination
provisions of this Agreement been properly applied to such payment,
distribution or other amount, would not have been distributed to such Person,
then such payment, distribution or other amount shall be received and held in

 

74

 

trust by such
Person and paid over or delivered to the Subordination Agent for application as
provided herein.

 

(c)                                  If
any Trustee, any Liquidity Provider, the Policy Provider or the Subordination
Agent receives any payment in respect of any obligations owing hereunder (or,
in the case of the Primary Liquidity Provider or the Policy Provider, in
respect of the Liquidity Obligations or the Policy Provider Amounts, as the
case may be), which is subsequently invalidated, declared preferential, set
aside and/or required to be repaid to a trustee, receiver or other party, then,
to the extent of such payment, such obligations (or, in the case of the Primary
Liquidity Provider or the Policy Provider, such Liquidity Obligations or Policy
Provider Amounts, as the case may be) intended to be satisfied shall be
revived, reinstated and continue in full force and effect as if such payment
had not been received.

 

(d)                                 The
Trustees (on behalf of themselves and the holders of Certificates), the Liquidity
Providers, the Policy Provider and the Subordination Agent confirm that the
payment priorities specified in Sections 2.4 and 3.2 shall apply in all
circumstances, notwithstanding the fact that the obligations owed to the
Trustees and the holders of Certificates are secured by certain assets and the
Liquidity Obligations and Policy Provider Amounts may not be so secured.  The Trustees expressly agree (on behalf of
themselves and the holders of Certificates) not to assert priority over the
holders of (or obligees in respect of) Liquidity Obligations or Policy Provider
Amounts (except as specifically set forth in Sections 2.4 or 3.2) due to
their status as secured creditors in any bankruptcy, insolvency or other legal
proceeding.

 

(e)                                  Each
of the Trustees (on behalf of themselves and the holders of Certificates), the
Primary Liquidity Providers, the Policy Provider and the Subordination Agent
may take any of the following actions without impairing its rights under this
Agreement:

 

(i)                                     obtain
a Lien on any property to secure any amounts owing to it hereunder, including,
in the case of the Primary Liquidity Providers and the Policy Provider, the
Liquidity Obligations or the Policy Provider Amount, as the case may be,

 

(ii)                                  obtain
the primary or secondary obligation of any other obligor with respect to any
amounts owing to it hereunder, including, in the case of the Primary Liquidity
Providers and the Policy Provider, any of the Liquidity Obligations or the
Policy Provider Amount, as the case may be,

 

(iii)                               renew,
extend, increase, alter or exchange any amounts owing to it hereunder,
including, in the case of the Primary Liquidity Providers and the Policy
Provider, any of the Liquidity Obligations or the Policy Provider Amount, as
the case may be, or release or compromise any obligation of any obligor with
respect thereto,

 

(iv)                              refrain
from exercising any right or remedy, or delay in exercising such right or
remedy, which it may have, or

 

(v)                                 take
any other action which might discharge a subordinated party or a surety under
applicable law;

 

75

 

provided,
however, that the taking of any such actions by any of the Trustees, the
Primary Liquidity Providers, the Policy Provider or the Subordination Agent
shall not prejudice the rights or adversely affect the obligations of any other
party under this Agreement.

 

Section 10.10.                  Governing
Law.  THIS AGREEMENT SHALL IN ALL
RESPECTS BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE
OF NEW YORK, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE.

 

Section 10.11.                  Submission
to Jurisdiction; Waiver of Jury Trial; Waiver of Immunity.  (a) Each of the parties hereto hereby
irrevocably and unconditionally:

 

(i)                                     submits
for itself and its property in any legal action or proceeding relating, to this
Agreement or any other Operative Agreement, or for recognition and enforcement
of any judgment in respect hereof or thereof, to the nonexclusive general
jurisdiction of the courts of the State of New York sitting in the city of New
York, the courts of the United States of America for the Southern District of
New York, and the appellate courts from any thereof;

 

(ii)                                  consents
that any such action or proceeding may be brought in such courts, and waives
any objection that it may now or hereafter have to the venue of any such action
or proceeding in any such court or that such action or proceeding was brought
in an inconvenient court and agrees not to plead or claim the same;

 

(iii)                               agrees
that service of process in any such action or proceeding may be effected by
mailing a copy thereof by registered or certified mail (or any substantially
similar form of mail), postage prepaid, to each party hereto at its address set
forth in Section 10.3 hereof, or at such other address of which the other
parties shall have been notified pursuant thereto; and

 

(iv)                              agrees
that nothing herein shall affect the right to effect service of process in any
other manner permitted by law or shall limit the right to sue in any other jurisdiction.

 

(b)                                 EACH
OF THE PARTIES HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY
TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS
AGREEMENT OR ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER OF THIS
AGREEMENT AND THE RELATIONSHIP THAT IS BEING ESTABLISHED, including, without
limitation, contract claims, tort claims, breach of duty claims and all other
common law and statutory claims.  Each of
the parties warrants and represents that it has reviewed this waiver with its
legal counsel, and that it knowingly and voluntarily waives its jury trial
rights following consultation with such legal counsel.  THIS WAIVER IS IRREVOCABLE, AND CANNOT BE
MODIFIED EITHER ORALLY OR IN WRITING, AND THIS WAIVER SHALL APPLY TO ANY
SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS
AGREEMENT.

 

76

 

(c)                                  Each
Primary Liquidity Provider hereby waives any immunity it may have from the
jurisdiction of the courts of the United States of America or any State and
waives any immunity any of its properties located in the United States of
America may have from attachment or execution upon a judgment entered by any
such court under the United States Foreign Sovereign Immunities Act of 1976 or
any similar successor legislation.

 

*   *   *

 

77

 

IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be duly executed by their
respective officers thereunto duly authorized, as of the day and year first
above written, and acknowledge that this Agreement has been made and delivered
in the City of New York, and this Agreement has become effective only upon
such execution and delivery.

 

	
   

  	
  WILMINGTON TRUST COMPANY,

  not in its individual capacity but solely as Trustee

  for each of the Trusts

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ W. Chris Sponenberg

  
	
   

  	
   

  	
  Name:  W. Chris Sponenberg

  
	
   

  	
   

  	
  Title:  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  LANDESBANK BADEN-WÜRTTEMBERG,

  as Class G-1 Primary Liquidity Provider, Class G-

  2 Primary Liquidity Provider and Class C Primary

  Liquidity Provider

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dr. Hans-Matthias Neugebauer

  
	
   

  	
   

  	
  Name:  Dr. Hans-Matthias
  Neugebauer

  
	
   

  	
   

  	
  Title:  SVP

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jeannine Eder

  
	
   

  	
   

  	
  Name:  Jeannine Eder

  
	
   

  	
   

  	
  Title:  VP

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CITIBANK, N.A., as
  Class G-1 Above-Cap

  Liquidity Provider, Class G-2 Above-Cap

  Liquidity Provider and Class C Above-Cap

  Liquidity Provider

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William S. Kloehm

  
	
   

  	
   

  	
  Name:  William S. Kloehm

  
	
   

  	
   

  	
  Title:  Managing Director

  
				

 

78

 

	
   

  	
  MBIA INSURANCE CORPORATION,

  as Policy Provider

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Adam M. Carta

  
	
   

  	
   

  	
  Name:  Adam M. Carta

  
	
   

  	
   

  	
  Title:  Assistant Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  WILMINGTON TRUST COMPANY,

  not in its individual capacity except as expressly

  set forth herein but solely as Subordination Agent

  and Trustee

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ W. Chris Sponenberg

  
	
   

  	
   

  	
  Name:  W. Chris Sponenberg

  
	
   

  	
   

  	
  Title:  Vice President

  
				

 

79

 

SCHEDULE 2.2(b)

 

Upon the funding of any Above-Cap Account or Above-Cap
Reserve Account or the maturity or redemption of any investment of funds in any
such account (such funds, the “Funds”),
the relevant Above-Cap Liquidity Provider shall send a notice to the
Subordination Agent containing a list of Eligible Investments (the “Specified Investments”) which shall contain
at least 10 investments in open market commercial paper of corporations
incorporated under the laws of the United States of America or any state
thereof.

 

Following receipt of such notice, the Subordination
Agent shall use its best efforts to invest or reinvest the Funds in any
Specified Investment.  If no Specified
Investment is then available, the Subordination Agent shall invest or reinvest
the Funds in any other Eligible Investment selected by the Subordination Agent.

 

Following such investment or reinvestment of the Funds
by the Subordination Agent in any Specified Investment or other Eligible
Investment, the Subordination Agent shall deliver a written statement to the
relevant Above-Cap Liquidity Provider setting forth for each such Specified
Investment or Eligible Investment the CUSIP number or other similar number for
such obligation (or, if such obligation does not have such a number,
(i) the name of the issuer, (ii) its maturity date, (iii) its
yield or rate of return, and (iv) its rating, if rated by any nationally
recognized rating agency).

 

1

 

EXHIBIT A

 

JetBlue Airways Corporation

 

Pass
Through Certificates, Series 2004-2

As of [ ] Unless Otherwise Noted; All Amounts in $

 

Aircraft Summary

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Aircraft Information

  Services Inc.

  	
   

  	
  AvSolutions

  	
   

  	
  Morten Beyer

  & Agnew

  	
   

  
	
  Registration

  Number

  	
   

  	
  Section 1110

  Status*

  	
   

  	
  Operating Status**

  	
   

  	
  Maintenance

  Status***

  	
   

  	
  Location of Engines

  	
   

  	
  (dd-mmm-yy)

  	
   

  	
  (dd-mmm-yy)

  	
   

  	
  (dd-mmm-yy)

  	
   

  
	
  N603JB

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [mmm-yy]

  	
   

  	
  [City, Country]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  N605JB

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [mmm-yy]

  	
   

  	
  [City, Country]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  N606JB

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [mmm-yy]

  	
   

  	
  [City, Country]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  N607JB

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [mmm-yy]

  	
   

  	
  [City, Country]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  N608JB

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [mmm-yy]

  	
   

  	
  [City, Country]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  N612JB

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [mmm-yy]

  	
   

  	
  [City, Country]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  N613JB

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [mmm-yy]

  	
   

  	
  [City, Country]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  N615JB

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [mmm-yy]

  	
   

  	
  [City, Country]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  N618JB

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [mmm-yy]

  	
   

  	
  [City, Country]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  N621JB

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [mmm-yy]

  	
   

  	
  [City, Country]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  N623JB

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [mmm-yy]

  	
   

  	
  [City, Country]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  N624JB

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [mmm-yy]

  	
   

  	
  [City, Country]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  N625JB

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [mmm-yy]

  	
   

  	
  [City, Country]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  N627JB

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [mmm-yy]

  	
   

  	
  [City, Country]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  N629JB

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [mmm-yy]

  	
   

  	
  [City, Country]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  

 

*Section 1110
Status Key

**Aircraft
is (1) in service, (2) in storage or (3) scrapped

(A)
Subject to the 60-day period of Section 1110 of the Bankruptcy Code

(B)
Subject to an election by JetBlue under Section 1110(a) of the Bankruptcy
Code

(C)
Covered by an agreement contemplated by Section 1110(b) of the Bankruptcy
Code

(D)
Not subject to either (A), (B), (C)

***
Next scheduled heavy check

 

1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}]]