Document:

Execution Copy

                          REGISTRATION RIGHTS AGREEMENT

           THIS REGISTRATION RIGHTS AGREEMENT (this "Agreement") is made
and entered into March 15, 2000 between MORGAN STANLEY AIRCRAFT FINANCE, a
statutory business trust organized under the laws of the State of Delaware (the
"Issuer"), and MORGAN STANLEY & CO. INTERNATIONAL LIMITED (the "Initial
Purchaser").

           This Agreement is made pursuant to the Purchase Agreement, dated as
of March 8, 2000 (the "Purchase Agreement"), among the Issuer and the Initial
Purchaser which provides for the issue and sale by the Issuer to the Initial
Purchaser of $1,310,000,000 aggregate principal amount of five subclasses of the
Issuer's notes (the "Notes"). In order to induce the Initial Purchaser to enter
into the Purchase Agreement, the Issuer has agreed to provide to the Initial
Purchaser and its direct and indirect transferees the registration rights set
forth in this Agreement. The execution of this Agreement is a condition to the
closing under the Purchase Agreement.

           In consideration of the foregoing, the parties hereto agree as
follows:

           1. Definitions.

           As used in this Agreement, the following capitalized defined terms
      shall have the following meanings:

           "1933 Act" shall mean the Securities Act of 1933, as amended from
      time to time.

           "1934 Act" shall mean the Securities Exchange Act of 1934, as amended
      from time to time.

           "Closing Date" shall mean the Closing Date as defined in the Purchase
      Agreement.

           "Issuer" shall have the meaning set forth in the preamble and shall
      also include the Issuer's successors.

           "Exchange Offer" shall mean the exchange offer by the Issuer of
      Exchange Notes for Registrable Notes pursuant to Section 2(a) hereof.

<PAGE>

           "Exchange Offer Registration" shall mean a registration under the
      1933 Act effected pursuant to Section 2(a) hereof.

           "Exchange Offer Registration Statement" shall mean an exchange offer
      registration statement on Form S-4 (or, if applicable, on another
      appropriate form) and all amendments and supplements to such registration
      statement, in each case including the Prospectus contained therein, all
      exhibits thereto and all material incorporated by reference therein.

           "Exchange Notes" shall mean the subclasses of securities issued by
      the Issuer under a supplement to the Indenture, containing terms identical
      to the subclasses of Registrable Notes (except that (i) interest thereon
      shall accrue from the last date on which interest was paid on the
      Registrable Notes or, if no such interest has been paid, from March 15,
      2000, and (ii) the interest rate per annum on each subclass of the
      Exchange Notes shall be the applicable interest rate set forth in the form
      of such subclass of Registrable Notes, without giving effect to any
      increase in such interest rate pursuant to the definition of "Stated
      Interest Rate" contained in the Indenture) and to be offered to Holders of
      Registrable Notes in exchange for Registrable Notes pursuant to the
      Exchange Offer.

           "Holder" shall mean the Initial Purchaser, for so long as it owns any
      Registrable Notes, and each of its successors, assigns and direct and
      indirect transferees who become registered owners of Registrable Notes
      under the Indenture; provided that for purposes of Sections 4 and 5 of
      this Agreement, the term "Holder" shall include Participating
      Broker-Dealers (as defined in Section 4(a)).

           "Indenture" shall mean the Indenture relating to the Notes dated as
      of March 3, 1998 between the Issuer and Bankers Trust Company, as trustee,
      as supplemented by Supplement Number 1 dated March 15, 2000, and as the
      same may be further amended, supplemented or otherwise modified from time
      to time in accordance with the terms thereof.

           "Majority Holders" shall mean the Holders of a majority of the
      aggregate principal amount of outstanding Registrable Notes; provided that
      whenever the consent or approval of Holders of a specified percentage of
      Registrable Notes is required hereunder, Registrable Notes held by the
      Issuer shall not be counted in determining whether such consent or
      approval was given by the Holders of such required percentage or amount.

           "Initial Purchaser" shall have the meaning set forth in the preamble.

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<PAGE>

           "Person" shall mean an individual, partnership, corporation, trust or
      unincorporated organization, or a government or agency or political
      subdivision thereof.

           "Purchase Agreement" shall have the meaning set forth in the
      preamble.

           "Prospectus" shall mean the prospectus included in a Registration
      Statement, including any preliminary prospectus, and any such prospectus
      as amended or supplemented by any prospectus supplement, including a
      prospectus supplement with respect to the terms of the offering of any
      portion of the Registrable Notes covered by a Shelf Registration
      Statement, and by all other amendments and supplements to such prospectus,
      and in each case including all material incorporated by reference therein.

           "Registrable Notes" shall mean the Notes; provided, however, that the
      Notes shall cease to be Registrable Notes (i) when a Registration
      Statement with respect to the Notes shall have been declared effective
      under the 1933 Act and the Notes shall have been disposed of pursuant to
      such Registration Statement, (ii) when the Notes have been sold to the
      public pursuant to Rule 144(k) (or any similar provision then in force,
      but not Rule 144A) under the 1933 Act or (iii) when the Notes shall have
      ceased to be outstanding.

           "Registration Expenses" shall mean any and all expenses incident to
      performance of or compliance by the Issuer with this Agreement, including
      without limitation: (i) all SEC, stock exchange or National Association of
      Securities Dealers, Inc. registration and filing fees, (ii) all fees and
      expenses incurred in connection with compliance with state securities or
      "blue sky" laws (including reasonable fees and disbursements of counsel
      for any underwriters or Holders in connection with "blue sky"
      qualification of any of the Exchange Notes or Registrable Notes), (iii)
      all expenses of any Persons in preparing or assisting in preparing, word
      processing, printing and distributing any Registration Statement, any
      Prospectus, any amendments or supplements thereto, any underwriting
      agreements, securities sales agreements and other documents relating to
      the performance of and compliance with this Agreement, (iv) all rating
      agency fees, (v) all fees and disbursements relating to the qualification
      of the Indenture under applicable securities laws, (vi) the fees and
      disbursements of the Trustee and its counsel, (vii) the fees and
      disbursements of counsel for the Issuer and, in the case of a Shelf
      Registration Statement, the fees and disbursements of one counsel for the
      Holders which counsel shall be counsel for the Initial Purchaser and
      (viii) the fees and disbursements of the independent public accountants of
      the Issuer, including the expenses of any special audits or "cold comfort"
      letters required by or incident to such performance and compliance, but
      excluding fees and expenses of counsel to the underwriters (other than
      fees and expenses set forth in clause (ii) above) or the Holders and
      underwriting discounts and commissions and transfer taxes, if any,
      relating to the sale or disposition of Registrable Notes by a Holder.

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<PAGE>

           "Registration Statement" shall mean any registration statement of the
      Issuer that covers any of the Exchange Notes or Registrable Notes pursuant
      to the provisions of this Agreement and all amendments and supplements to
      any such Registration Statement, including post-effective amendments, in
      each case including the Prospectus contained therein, all exhibits thereto
      and all material incorporated by reference therein.

           "SEC" shall mean the Securities and Exchange Commission.

           "Shelf Registration" shall mean a registration effected pursuant to
      Section 2(b) hereof.

           "Shelf Registration Statement" shall mean a "shelf" registration
      statement of the Issuer pursuant to the provisions of Section 2(b) of this
      Agreement which covers all of the Registrable Notes (but no other
      securities unless approved by the Holders whose Registrable Notes are
      covered by such Shelf Registration Statement) on an appropriate form under
      Rule 415 under the 1933 Act, or any similar rule that may be adopted by
      the SEC, and all amendments and supplements to such registration
      statement, including post-effective amendments, in each case including the
      Prospectus contained therein, all exhibits thereto and all material
      incorporated by reference therein.

           "Trustee" shall mean the trustee with respect to the Notes
under the Indenture.

           "Underwritten Registration" or "Underwritten Offering" shall mean a
      registration in which Registrable Notes are sold to an Underwriter (as
      hereinafter defined) for reoffering to the public.

           2. Registration Under the 1933 Act.

           (a) To the extent not prohibited by any applicable law or applicable
interpretation of the Staff of the SEC, the Issuer shall use its best efforts to
cause to be filed an Exchange Offer Registration Statement covering the offer by
the Issuer to the Holders to exchange all of the Registrable Notes for Exchange
Notes and to have such Registration Statement remain effective until the closing
of the Exchange Offer. The Issuer shall commence the Exchange Offer promptly
after the Exchange Offer Registration Statement has been declared effective by
the SEC and use its best efforts to have the Exchange Offer consummated not
later than 60 days after such effective date. The Issuer shall commence the
Exchange Offer by mailing the related exchange offer Prospectus and accompanying
documents to each Holder stating, in addition to such other disclosures as are
required by applicable law:

                  (i) that the Exchange Offer is being made pursuant to this
         Registration Rights Agreement and that all Registrable Notes validly
         tendered will be accepted for exchange;

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<PAGE>

                  (ii) the dates of acceptance for exchange (which shall be a
         period of not less than 20 business days commencing from the date such
         notice is mailed) (the "Exchange Dates");

                  (iii) that any Registrable Note not tendered will remain
         outstanding and continue to accrue interest, but will not retain any
         rights under this Registration Rights Agreement;

                  (iv) that Holders electing to have a Registrable Note
         exchanged pursuant to the Exchange Offer will be required to surrender
         such Registrable Note, together with the enclosed letters of
         transmittal, to the institutions and at the addresses (located in the
         Borough of Manhattan, The City of New York and in Luxembourg) specified
         in the notice prior to the close of business on the last Exchange Date;
         and

                  (v) that Holders will be entitled to withdraw their election,
         not later than the close of business on the last Exchange Date, by
         sending to the applicable institution and at the address (located in
         either the Borough of Manhattan, The City of New York or Luxembourg)
         specified in the notice a telegram, telex, facsimile transmission or
         letter setting forth the name of such Holder, the principal amount of
         Registrable Notes delivered for exchange and a statement that such
         Holder is withdrawing his election to have such Notes exchanged.

           On the date of commencement of the Exchange Offer, the Issuer shall
publish a notice announcing the commencement of the Exchange Offer in the
Luxemburger Wort.

           As soon as practicable after the last Exchange Date, the Issuer
shall:

                  (i)  accept for exchange Registrable Notes or portions thereof
         tendered and not validly withdrawn pursuant to the Exchange Offer;

                  (ii) deliver, or cause to be delivered, to the Trustee for
         cancellation all Registrable Notes or portions thereof so accepted for
         exchange by the Issuer and issue, and cause the Trustee to promptly
         authenticate and mail to each Holder, an Exchange Security equal in
         principal amount to the principal amount of the Registrable Notes
         surrendered by such Holder; and

                  (iii) publish a notice in the Luxemburger Wort setting forth
         the results of the Exchange Offer.

           The Issuer shall use its best efforts to complete the Exchange Offer
as provided above and shall comply with the applicable requirements of the 1933
Act, the 1934 Act and other applicable laws and regulations in connection with
the Exchange Offer. The Exchange Offer shall not be subject to any conditions,
other than that the Exchange Offer does not violate

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<PAGE>

applicable law or any applicable interpretation of the Staff of the SEC. The
Issuer shall inform the Initial Purchaser of the names and addresses of the
Holders to whom the Exchange Offer is made, and the Initial Purchaser shall have
the right, subject to applicable law, to contact such Holders and otherwise
facilitate the tender of Registrable Notes in the Exchange Offer.

           (b) In the event that (i) the Issuer determines that the Exchange
Offer Registration provided for in Section 2(a) above is not available or may
not be consummated as soon as practicable after the last Exchange Date because
it would violate applicable law or the applicable interpretations of the Staff
of the SEC, (ii) the Exchange Offer is not for any other reason consummated by
the date that is 270 days after the Closing Date or (iii) the Exchange Offer has
been completed and in the opinion of counsel for the Initial Purchaser a
Registration Statement must be filed and a Prospectus must be delivered by the
Initial Purchaser in connection with any offering or sale of Registrable Notes,
the Issuer shall use its best efforts to cause to be filed as soon as
practicable after such determination, date or notice of such opinion of counsel
is given to the Issuer, as the case may be, a Shelf Registration Statement
providing for the sale by the Holders of all of the Registrable Notes and to
have such Shelf Registration Statement declared effective by the SEC. The Issuer
agrees to use its best efforts to keep the Shelf Registration Statement
continuously effective until the second anniversary of the Closing Date or such
shorter period that will terminate when all of the Registrable Notes covered by
the Shelf Registration Statement have been sold pursuant to the Shelf
Registration Statement. The Issuer further agrees to supplement or amend the
Shelf Registration Statement if required by the rules, regulations or
instructions applicable to the registration form used by the Issuer for such
Shelf Registration Statement or by the 1933 Act or by any other rules and
regulations thereunder for shelf registration or if reasonably requested by a
Holder with respect to information relating to such Holder, and to use its best
efforts to cause any such amendment to become effective and such Shelf
Registration Statement to become usable as soon as thereafter practicable. The
Issuer agrees to furnish to the Holders of Registrable Notes copies of any such
supplement or amendment promptly after its being used or filed with the SEC.

           (c) The Issuer shall pay all Registration Expenses in connection with
the registration pursuant to Section 2(a) or Section 2(b). Each Holder shall pay
all underwriting discounts and commissions and transfer taxes, if any, relating
to the sale or disposition of such Holder's Registrable Notes pursuant to the
Shelf Registration Statement.

           (d) An Exchange Offer Registration Statement pursuant to Section 2(a)
hereof or a Shelf Registration Statement pursuant to Section 2(b) hereof will
not be deemed to have become effective unless it has been declared effective by
the SEC; provided, however, that, if, after it has been declared effective, the
offering of Registrable Notes pursuant to a Shelf Registration Statement is
interfered with by any stop order, injunction or other order or requirement of
the SEC or any other governmental agency or court, such Registration Statement
will be deemed not to have become effective during the period of such
interference until the offering of Registrable Notes pursuant to such
Registration Statement may legally resume. As provided for in the Indenture,
from and after the date that is 270 days after the

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<PAGE>

Closing Date, the interest rate on each subclass of Registrable Notes will be
increased by 0.50% per annum until the completion of an Exchange Offer or the
date a Shelf Registration Statement is declared effective by the SEC, whereupon
the interest rate on each subclass of Registrable Notes will permanently
decrease to the applicable interest rate provided for such subclass of
Registrable Note.

           (e) Without limiting the remedies available to the Initial
Purchaser and the Holders, the Issuer acknowledges that any failure by the
Issuer to comply with its obligations under Section 2(a) and Section 2(b) hereof
may result in material irreparable injury to the Initial Purchaser or the
Holders for which there is no adequate remedy at law, that it will not be
possible to measure damages for such injuries precisely and that, in the event
of any such failure, the Initial Purchaser or any Holder may obtain such relief
as may be required to specifically enforce the Issuer's obligations under
Section 2(a) and Section 2(b) hereof.

           3. Registration Procedures.

           In connection with the obligations of the Issuer with respect to the
Registration Statements pursuant to Section 2(a) and Section 2(b) hereof, the
Issuer shall as expeditiously as possible:

                  (a) prepare and file with the SEC a Registration Statement on
         the appropriate form under the 1933 Act, which form (x) shall be
         selected by the Issuer and (y) shall, in the case of a Shelf
         Registration, be available for the sale of the Registrable Notes by the
         selling Holders thereof and (z) shall comply as to form in all material
         respects with the requirements of the applicable form and include all
         financial statements required by the SEC to be filed therewith, and use
         its best efforts to cause such Registration Statement to become
         effective and remain effective in accordance with Section 2 hereof;

                  (b) prepare and file with the SEC such amendments and
         post-effective amendments to each Registration Statement as may be
         necessary to keep such Registration Statement effective for the
         applicable period and cause each Prospectus to be supplemented by any
         required prospectus supplement and, as so supplemented, to be filed
         pursuant to Rule 424 under the 1933 Act; to keep each Prospectus
         current during the period described under Section 4(3) and Rule 174
         under the 1933 Act that is applicable to transactions by brokers or
         dealers with respect to the Registrable Notes or Exchange Notes;

                  (c) in the case of a Shelf Registration, furnish to each
         Holder of Registrable Notes, to counsel for the Initial Purchaser, to
         counsel for the Holders and to each Underwriter of an Underwritten
         Offering of Registrable Notes, if any, without charge, as many copies
         of each Prospectus, including each preliminary Prospectus, and any
         amendment or supplement thereto and such other documents as such Holder
         or Underwriter may reasonably request, in order to facilitate the
         public sale or other

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<PAGE>

         disposition of the Registrable Notes; and the Issuer consents to the
         use of such Prospectus and any amendment or supplement thereto in
         accordance with applicable law by each of the selling holders of
         Registrable Notes and any such Underwriters in connection with the
         offering and sale of the Registrable Notes covered by and in the
         manner described in such Prospectus or any amendment or supplement
         thereto in accordance with applicable law;

                  (d) use its best efforts to register or qualify the
         Registrable Notes under all applicable state securities or "blue sky"
         laws of such jurisdictions as any Holder of Registrable Notes covered
         by a Registration Statement shall reasonably request in writing by the
         time the applicable Registration Statement is declared effective by the
         SEC, to cooperate with such Holders in connection with any filings
         required to be made with the National Association of Securities
         Dealers, Inc. and do any and all other acts and things which may be
         reasonably necessary or advisable to enable such Holder to consummate
         the disposition in each such jurisdiction of such Registrable Notes
         owned by such Holder; provided, however, that the Issuer shall not be
         required to (i) qualify as a foreign corporation or as a dealer in
         securities in any jurisdiction where it would not otherwise be required
         to qualify but for this Section 3(d), (ii) file any general consent to
         service of process or (iii) subject itself to taxation in any such
         jurisdiction if it is not so subject;

                  (e) in the case of a Shelf Registration, notify each Holder of
         Registrable Notes, counsel for the Holders and counsel for the Initial
         Purchaser promptly and, if requested by any such Holder or counsel,
         confirm such advice in writing (i) when a Registration Statement has
         become effective and when any post-effective amendment thereto has been
         filed and becomes effective, (ii) of any request by the SEC or any
         state securities authority for amendments and supplements to a
         Registration Statement and Prospectus or for additional information
         after the Registration Statement has become effective, (iii) of the
         issuance by the SEC or any state securities authority of any stop order
         suspending the effectiveness of a Registration Statement or the
         initiation of any proceedings for that purpose, (iv) if, between the
         effective date of a Registration Statement and the closing of any sale
         of Registrable Notes covered thereby, the representations and
         warranties of the Issuer contained in any underwriting agreement,
         securities sales agreement or other similar agreement, if any, relating
         to the offering cease to be true and correct in all material respects
         or if the Issuer receives any notification with respect to the
         suspension of the qualification of the Registrable Notes for sale in
         any jurisdiction or the initiation of any proceeding for such purpose,
         (v) of the happening of any event during the period a Shelf
         Registration Statement is effective which makes any statement made in
         such Registration Statement or the related Prospectus untrue in any
         material respect or which requires the making of any changes in such
         Registration Statement or Prospectus in order to make the statements
         therein not misleading and (vi) of any determination by the Issuer that
         a post-effective amendment to a Registration Statement would be
         appropriate;

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<PAGE>

                  (f) make every reasonable effort to obtain the withdrawal of
         any order suspending the effectiveness of a Registration Statement at
         the earliest possible moment and provide immediate notice to each
         Holder of the withdrawal of any such order;

                  (g) in the case of a Shelf Registration, furnish to each
         Holder of Registrable Notes, without charge, at least one conformed
         copy of each Registration Statement and any post-effective amendment
         thereto (without documents incorporated therein by reference or
         exhibits thereto, unless requested);

                  (h) in the case of a Shelf Registration, cooperate with the
         selling Holders of Registrable Notes to facilitate the timely
         preparation and delivery of certificates representing Registrable Notes
         to be sold and not bearing any restrictive legends and enable such
         Registrable Notes to be in such denominations (consistent with the
         provisions of the Indenture) and registered in such names as the
         selling Holders may reasonably request at least two business days prior
         to the closing of any sale of Registrable Notes;

                  (i) in the case of a Shelf Registration, upon the occurrence
         of any event contemplated by Section 3(e)(v) hereof, use its best
         efforts to prepare and file with the SEC a supplement or post-effective
         amendment to a Registration Statement or the related Prospectus or any
         document incorporated therein by reference or file any other required
         document so that, as thereafter delivered to the purchasers of the
         Registrable Notes, such Prospectus will not contain any untrue
         statement of a material fact or omit to state a material fact necessary
         to make the statements therein, in light of the circumstances under
         which they were made, not misleading. The Issuer agrees to notify the
         Holders to suspend use of the Prospectus as promptly as practicable
         after the occurrence of such an event, and the Holders hereby agree to
         suspend use of the Prospectus until the Issuer has amended or
         supplemented the Prospectus to correct such misstatement or omission;

                  (j) a reasonable time prior to the filing of any Registration
         Statement, any Prospectus, any amendment to a Registration Statement or
         amendment or supplement to a Prospectus or any document which is to be
         incorporated by reference into a Registration Statement or a Prospectus
         after initial filing of a Registration Statement, provide copies of
         such document to the Initial Purchaser and its counsel (and, in the
         case of a Shelf Registration Statement, the Holders and their counsel)
         and make such of the representatives of the Issuer as shall be
         reasonably requested by the Initial Purchaser or its counsel (and, in
         the case of a Shelf Registration Statement, the Holders or their
         counsel) available for discussion of such document, and shall not at
         any time file or make any amendment to the Registration Statement, any
         Prospectus or any amendment of or supplement to a Registration
         Statement or a Prospectus or any document which is to be incorporated
         by reference into a Registration Statement or a Prospectus, of which
         the Initial Purchaser and its counsel (and, in the case of a Shelf
         Registration Statement,

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<PAGE>

         the Holders and their counsel) shall not have previously been advised
         and furnished a copy or to which the Initial Purchaser or its counsel
         (and, in the case of a Shelf Registration Statement, the Holders or
         their counsel) shall object;

                  (k) obtain a CUSIP number and such other identification
         numbers as may be necessary for all Exchange Notes or Registrable
         Notes, as the case may be, not later than the effective date of a
         Registration Statement;

                  (l) use its best efforts to list the Exchange Notes, if any,
         on the Luxembourg Stock Exchange not later than the Effective Date of
         an Exchange Offer Registration Statement;

                  (m) cause the Indenture to be qualified under the Trust
         Indenture Act of 1939, as amended (the "TIA"), in connection with the
         registration of the Exchange Notes or Registrable Notes, as the case
         may be, cooperate with the Trustee and the Holders to effect such
         changes to the Indenture as may be required for the Indenture to be so
         qualified in accordance with the terms of the TIA and execute, and use
         its best efforts to cause the Trustee to execute, all documents as may
         be required to effect such changes and all other forms and documents
         required to be filed with the SEC to enable the Indenture to be so
         qualified in a timely manner;

                  (n) in the case of a Shelf Registration, make available for
         inspection by a representative of the Holders of the Registrable Notes,
         any Underwriter participating in any disposition pursuant to such Shelf
         Registration Statement, and attorneys and accountants designated by the
         Holders, at reasonable times and in a reasonable manner, all financial
         and other records, pertinent documents and properties of the Issuer,
         and cause the respective officers, directors and employees of the
         Issuer to supply all information reasonably requested by any such
         representative, Underwriter, attorney or accountant in connection with
         a Shelf Registration Statement;

                  (o) in the case of a Shelf Registration, use its best efforts
         to cause all Registrable Notes to be listed on any securities exchange
         or any automated quotation system on which similar securities issued by
         the Issuer are then listed if requested by the Majority Holders, to the
         extent such Registrable Notes satisfy applicable listing requirements;

                  (p) use its best efforts to cause the Exchange Notes or
         Registrable Notes, as the case may be, to be rated by Standard Poor's
         Ratings Group, Moody's Investors Service, Inc. and Duff & Phelps
         Credit Rating Co. or two other nationally recognized statistical
         rating organizations (as such term is defined in Rule 436(g)(2) under
         the 1933 Act);

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<PAGE>

                  (q) if reasonably requested by any Holder of Registrable Notes
         covered by a Registration Statement, (i) promptly incorporate in a
         Prospectus supplement or post-effective amendment such information with
         respect to such Holder as such Holder reasonably requests to be
         included therein and (ii) make all required filings of such Prospectus
         supplement or such post-effective amendment as soon as the Issuer has
         received notification of the matters to be incorporated in such filing;
         and

                  (r) in the case of a Shelf Registration, enter into such
         customary agreements and take all such other actions in connection
         therewith (including those requested by the Holders of a majority of
         the Registrable Notes being sold) in order to expedite or facilitate
         the disposition of such Registrable Notes including, but not limited
         to, an Underwritten Offering and in such connection, (i) to the extent
         possible, make such representations and warranties to the Holders and
         any Underwriters of such Registrable Notes with respect to the business
         of the Issuer and its subsidiaries, the Registration Statement,
         Prospectus and documents incorporated by reference or deemed
         incorporated by reference, if any, in each case, in form, substance and
         scope as are customarily made by issuers to underwriters in
         underwritten offerings and confirm the same if and when requested, (ii)
         obtain opinions of counsel to the Issuer (which counsel and opinions,
         in form, scope and substance, shall be reasonably satisfactory to the
         Holders and such Underwriters and their respective counsel) addressed
         to each selling Holder and Underwriter of Registrable Notes, covering
         the matters customarily covered in opinions requested in underwritten
         offerings, (iii) obtain "cold comfort" letters from the independent
         certified public accountants of the Issuer (and, if necessary, any
         other certified public accountant of any subsidiary of the Issuer, or
         of any business acquired by the Issuer for which financial statements
         and financial data are or are required to be included in the
         Registration Statement) addressed to each selling Holder and
         Underwriter of Registrable Notes, such letters to be in customary form
         and covering matters of the type customarily covered in "cold comfort"
         letters in connection with underwritten offerings, and (iv) deliver
         such documents and certificates as may be reasonably requested by the
         Holders of a majority in principal amount of the Registrable Notes
         being sold or the Underwriters, and which are customarily delivered in
         underwritten offerings, to evidence the continued validity of the
         representations and warranties of the Issuer made pursuant to clause
         (i) above and to evidence compliance with any customary conditions
         contained in an underwriting agreement.

           In the case of a Shelf Registration Statement, the Issuer may
require each Holder of Registrable Notes to furnish to the Issuer such
information regarding the Holder and the proposed distribution by such Holder of
such Registrable Notes as the Issuer may from time to time reasonably request in
writing.

           In the case of a Shelf Registration Statement, each Holder
agrees that, upon receipt of any notice from the Issuer of the happening of any
event of the kind described in Section 3(e)(v) hereof, such Holder will
forthwith discontinue disposition of Registrable Notes

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<PAGE>

pursuant to a Registration Statement until such Holder's receipt of the copies
of the supplemented or amended Prospectus contemplated by Section 3(i) hereof,
and, if so directed by the Issuer, such Holder will deliver to the Issuer (at
its expense) all copies in its possession, other than permanent file copies then
in such Holder's possession, of the Prospectus covering such Registrable Notes
current at the time of receipt of such notice. If the Issuer shall give any such
notice to suspend the disposition of Registrable Notes pursuant to a
Registration Statement, the Issuer shall extend the period during which the
Registration Statement shall be maintained effective pursuant to this Agreement
by the number of days during the period from and including the date of the
giving of such notice to and including the date when the Holders shall have
received copies of the supplemented or amended Prospectus necessary to resume
such dispositions. The Issuer may give any such notice only twice during any 365
day period and any such suspensions may not exceed 30 days for each suspension
and there may not be more than two suspensions in effect during any 365 day
period.

           The Holders of Registrable Notes covered by a Shelf Registration
Statement who desire to do so may sell such Registrable Notes in an Underwritten
Offering. In any such Underwritten Offering, the investment banker or investment
bankers and manager or managers (the "Underwriters") that will administer the
offering will be selected by the Majority Holders of the Registrable Notes
included in such offering.

           4. Participation of Broker-Dealers in Exchange Offer.

           (a) The Issuer shall require each holder of Notes who wishes to
exchange any such Notes for Exchange Notes in the Exchange Offer to represent
that (i) it is neither an affiliate of the Issuer nor a broker-dealer tendering
Notes acquired directly from the Issuer for its own account, (ii) any Exchange
Notes to be received by it are being acquired in the ordinary course of its
business and (iii) at the time of commencement of the Exchange Offer, it has no
arrangement with any person to participate in a distribution (within the meaning
of the 1933 Act) of the Exchange Notes.

           The Staff of the SEC has taken the position that any broker-dealer
that receives Exchange Notes for its own account in the Exchange Offer in
exchange for Registrable Notes that were acquired by such broker-dealer as a
result of market-making or other trading activities (a "Participating
Broker-Dealer"), may be deemed to be an "underwriter" within the meaning of the
1933 Act and must deliver a prospectus meeting the requirements of the 1933 Act
in connection with any resale of such Exchange Notes.

           The Issuer understands that it is the Staff's position that if
the Prospectus contained in the Exchange Offer Registration Statement includes a
plan of distribution containing a statement to the above effect and the means by
which Participating Broker-Dealers may resell the Exchange Notes, without naming
the Participating Broker-Dealers or specifying the amount of Exchange Notes
owned by them, such Prospectus may be delivered by Participating Broker-Dealers
to satisfy their prospectus delivery obligation under the 1933 Act

                                       12

<PAGE>

in connection with resales of Exchange Notes for their own accounts, so long as
the Prospectus otherwise meets the requirements of the 1933 Act.

           (b) In light of the above, notwithstanding the other
provisions of this Agreement, the Issuer agrees that the provisions of this
Agreement as they relate to a Shelf Registration shall also apply to an Exchange
Offer Registration to the extent, and with such reasonable modifications thereto
as may be reasonably requested by the Initial Purchaser or by one or more
Participating Broker-Dealers, in each case as provided in clause (ii) below, in
order to expedite or facilitate the disposition of any Exchange Notes by
Participating Broker-Dealers consistent with the positions of the Staff recited
in Section 4(a) above; provided that:

                  (i) the Issuer shall not be required to amend or supplement
         the Prospectus contained in the Exchange Offer Registration Statement,
         as would otherwise be contemplated by Section 3(i), for a period
         exceeding 180 days after the last Exchange Date (as such period may be
         extended pursuant to the penultimate paragraph of Section 3 of this
         Agreement) and Participating Broker-Dealers shall not be authorized by
         the Issuer to deliver and shall not deliver such Prospectus after such
         period in connection with the resales contemplated by this Section 4;
         and

                  (ii) the application of the Shelf Registration procedures set
         forth in Section 3 of this Agreement to an Exchange Offer Registration,
         to the extent not required by the positions of the Staff of the SEC or
         the 1933 Act and the rules and regulations thereunder, will be in
         conformity with the reasonable request to the Issuer by the Initial
         Purchaser or with the reasonable request in writing to the Issuer by
         one or more broker-dealers who certify to the Initial Purchaser and the
         Issuer in writing that they anticipate that they will be Participating
         Broker-Dealers; and provided further that, in connection with such
         application of the Shelf Registration procedures set forth in Section 3
         to an Exchange Offer Registration, the Issuer shall be obligated (x) to
         deal only with one entity representing the Participating
         Broker-Dealers, which shall be the Initial Purchaser unless it elects
         not to act as such representative, (y) to pay the fees and expenses of
         only one counsel representing the Participating Broker-Dealers, which
         shall be counsel to the Initial Purchaser unless such counsel elects
         not to so act and (z) to cause to be delivered only one, if any, "cold
         comfort" letter with respect to the Prospectus in the form existing on
         the last Exchange Date and with respect to each subsequent amendment or
         supplement, if any, effected during the period specified in clause (i)
         above.

           (c) The Initial Purchaser shall have no liability to the Issuer or
any Holder with respect to any request that it may make pursuant to Section 4(b)
above.

                  5.       Indemnification and Contribution.

                  (a) The Issuer agrees to indemnify and hold harmless the
Initial Purchaser, each Holder and each person, if any, who controls the Initial
Purchaser or any Holder within

                                       13

<PAGE>

the meaning of either Section 15 of the 1933 Act or Section 20 of the 1934 Act,
or is under common control with, or is controlled by, the Initial Purchaser or
any Holder, from and against all losses, claims, damages and liabilities
(including, without limitation, any legal or other expenses reasonably incurred
by the Initial Purchaser, any Holder or any such controlling or affiliated
person in connection with defending or investigating any such action or claim)
caused by any untrue statement or alleged untrue statement of a material fact
contained in any Registration Statement (or any amendment thereto) pursuant to
which Exchange Notes or Registrable Notes were registered under the 1933 Act,
including all documents incorporated therein by reference, or caused by any
omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading, or
caused by any untrue statement or alleged untrue statement of a material fact
contained in any Prospectus (as amended or supplemented if the Issuer shall have
furnished any amendments or supplements thereto), or caused by any omission or
alleged omission to state therein a material fact necessary to make the
statements therein in light of the circumstances under which they were made not
misleading, except insofar as such losses, claims, damages or liabilities are
caused by any such untrue statement or omission or alleged untrue statement or
omission based upon information relating to an Initial Purchaser or any Holder
furnished to the Issuer in writing by the Initial Purchaser or any selling
Holder expressly for use therein. In connection with any Underwritten Offering
permitted by Section 3, the Issuer will also indemnify the Underwriters, if any,
selling brokers, dealers and similar securities industry professionals
participating in the distribution, their officers and directors and each Person
who controls such Persons (within the meaning of the Securities Act and the
Exchange Act) to the same extent as provided above with respect to the
indemnification of the Holders, if requested in connection with any Registration
Statement.

           (b) Each Holder agrees, severally and not jointly, to
indemnify and hold harmless the Issuer, the Initial Purchaser and the other
selling Holders, and each of their respective trustees, directors, officers who
sign the Registration Statement and each Person, if any, who controls the
Issuer, the Initial Purchaser and any other selling Holder within the meaning of
either Section 15 of the 1933 Act or Section 20 of the 1934 Act to the same
extent as the foregoing indemnity from the Issuer to the Initial Purchaser and
the Holders, but only with reference to information relating to such Holder
furnished to the Issuer in writing by such Holder expressly for use in any
Registration Statement (or any amendment thereto) or any Prospectus (or any
amendment or supplement thereto).

           (c) In case any proceeding (including any governmental
investigation) shall be instituted involving any person in respect of which
indemnity may be sought pursuant to either paragraph (a) or paragraph (b) above,
such person (the "indemnified party") shall promptly notify the person against
whom such indemnity may be sought (the "indemnifying party") in writing and the
indemnifying party, upon request of the indemnified party, shall retain counsel
reasonably satisfactory to the indemnified party to represent the indemnified
party and any others the indemnifying party may designate in such proceeding and
shall pay the fees and disbursements of such counsel related to such proceeding.
In any such proceeding,

                                       14

<PAGE>

any indemnified party shall have the right to retain its own counsel, but the
fees and expenses of such counsel shall be at the expense of such indemnified
party unless (i) the indemnifying party and the indemnified party shall have
mutually agreed to the retention of such counsel or (ii) the named parties to
any such proceeding (including any impleaded parties) include both the
indemnifying party and the indemnified party and representation of both parties
by the same counsel would be inappropriate due to actual or potential differing
interests between them. It is understood that the indemnifying party shall not,
in connection with any proceeding or related proceedings in the same
jurisdiction, be liable for (a) the fees and expenses of more than one separate
firm (in addition to any local counsel) for the Initial Purchaser and all
persons, if any, who control the Initial Purchaser within the meaning of either
Section 15 of the 1933 Act or Section 20 of the 1934 Act, (b) the fees and
expenses of more than one separate firm (in addition to any local counsel) for
the Issuer, its directors, its officers who sign the Registration Statement and
each person, if any, who controls the Issuer within the meaning of either such
Section and (c) the fees and expenses of more than one separate firm (in
addition to any local counsel) for all Holders and all persons, if any, who
control any Holders within the meaning of either such Section, and that all such
fees and expenses shall be reimbursed as they are incurred. In such case
involving the Initial Purchaser and persons who control the Initial Purchaser,
such firm shall be designated in writing by the Initial Purchaser. In such case
involving the Holders and such persons who control Holders, such firm shall be
designated in writing by the Majority Holders. In all other cases, such firm
shall be designated by the Issuer. The indemnifying party shall not be liable
for any settlement of any proceeding effected without its written consent but,
if settled with such consent or if there be a final judgment for the plaintiff,
the indemnifying party agrees to indemnify the indemnified party from and
against any loss or liability by reason of such settlement or judgment. No
indemnifying party shall, without the prior written consent of the indemnified
party, effect any settlement of any pending or threatened proceeding in respect
of which such indemnified party is or could have been a party and indemnity
could have been sought hereunder by such indemnified party, unless such
settlement includes an unconditional release of such indemnified party from all
liability on claims that are the subject matter of such proceeding.

           (d) If the indemnification provided for in paragraph (a) or paragraph
(b) of this Section 4 is unavailable to an indemnified party or insufficient in
respect of any losses, claims, damages or liabilities, then each indemnifying
party under such paragraph, in lieu of indemnifying such indemnified party
thereunder, shall contribute to the amount paid or payable by such indemnified
party as a result of such losses, claims, damages or liabilities in such
proportion as is appropriate to reflect the relative fault of the indemnifying
party or parties on the one hand and of the indemnified party or parties on the
other hand in connection with the statements or omissions that resulted in such
losses, claims, damages or liabilities, as well as any other relevant equitable
considerations. The relative fault of the Issuer and the Holders shall be
determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to state
a material fact relates to information supplied by the Issuer or by the Holders
and the parties' relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission. The

                                       15

<PAGE>

Holders' respective obligations to contribute pursuant to this Section 5(d) are
several in proportion to the respective number of Registrable Notes of such
Holder that were registered pursuant to a Registration Statement.

           (e) The Issuer and each Holder agree that it would not be just or
equitable if contribution pursuant to this Section 5 were determined by pro rata
allocation or by any other method of allocation that does not take account of
the equitable considerations referred to in paragraph (d) above. The amount paid
or payable by an indemnified party as a result of the losses, claims, damages
and liabilities referred to in paragraph (d) above shall be deemed to include,
subject to the limitations set forth above, any legal or other expenses
reasonably incurred by such indemnified party in connection with investigating
or defending any such action or claim. Notwithstanding the provisions of this
Section 5, no Holder shall be required to indemnify or contribute any amount in
excess of the amount by which the total price at which Registrable Notes were
sold by such Holder exceeds the amount of any damages that such Holder has
otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the 1933 Act) shall be
entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation. The remedies provided for in this Section 5 are not exclusive
and shall not limit any rights or remedies which may otherwise be available to
any indemnified party at law or in equity.

           The indemnity and contribution provisions contained in this Section 5
shall remain operative and in full force and effect regardless of (i) any
termination of this Agreement, (ii) any investigation made by or on behalf of
the Initial Purchaser, any Holder or any person controlling the Initial
Purchaser or any Holder, or by or on behalf of the Issuer, its officers or
directors or any person controlling the Issuer, (iii) acceptance of any of the
Exchange Notes and (iv) any sale of Registrable Notes pursuant to a Shelf
Registration Statement.

           6. Miscellaneous.

           (a) No Inconsistent Agreements. The Issuer has not entered
into, and on or after the date of this Agreement will not enter into, any
agreement which is inconsistent with the rights granted to the Holders of
Registrable Notes in this Agreement or otherwise conflicts with the provisions
hereof. The rights granted to the Holders hereunder do not in any way conflict
with and are not inconsistent with the rights granted to the holders of the
Issuer's other issued and outstanding securities under any such agreements.

           (b) Amendments and Waivers. The provisions of this Agreement,
including the provisions of this sentence, may not be amended, modified or
supplemented, and waivers or consents to departures from the provisions hereof
may not be given unless the Issuer has obtained the written consent of Holders
of at least a majority in aggregate principal amount of the outstanding
Registrable Notes affected by such amendment, modification, supplement,

                                       16
<PAGE>

waiver or consent; provided, however, that no amendment, modification,
supplement, waiver or consents to any departure from the provisions of Section 5
hereof shall be effective as against any Holder of Registrable Notes unless
consented to in writing by such Holder.

           (c) Notices. All notices and other communications provided for or
permitted hereunder shall be made in writing by hand-delivery, registered
first-class mail, telex, telecopier, or any courier guaranteeing overnight
delivery (i) if to a Holder, at the most current address given by such Holder to
the Issuer by means of a notice given in accordance with the provisions of this
Section 6(c), which address initially is, with respect to the Initial Purchaser,
the address set forth in the Purchase Agreement; and (ii) if to the Issuer,
initially at the Issuer's address set forth in the Purchase Agreement and
thereafter at such other address, notice of which is given in accordance with
the provisions of this Section 6(c).

           All such notices and communications shall be deemed to have been duly
given: at the time delivered by hand, if personally delivered; five business
days after being deposited in the mail, postage prepaid, if mailed; when
answered back, if telexed; when receipt is acknowledged, if telecopied; and on
the next business day if timely delivered to an air courier guaranteeing
overnight delivery.

           Copies of all such notices, demands, or other communications
shall be concurrently delivered by the person giving the same to the Trustee, at
the address specified in the Indenture.

           (d) Successors and Assigns. This Agreement shall inure to the benefit
of and be binding upon the successors, assigns and transferees of each of the
parties, including, without limitation and without the need for an express
assignment, subsequent Holders; provided that nothing herein shall be deemed to
permit any assignment, transfer or other disposition of Registrable Notes in
violation of the terms of the Purchase Agreement. If any transferee of any
Holder shall acquire Registrable Notes, in any manner, whether by operation of
law or otherwise, such Registrable Notes shall be held subject to all of the
terms of this Agreement, and by taking and holding such Registrable Notes such
person shall be conclusively deemed to have agreed to be bound by and to perform
all of the terms and provisions of this Agreement and such person shall be
entitled to receive the benefits hereof. The Initial Purchaser (in its capacity
as Initial Purchaser) shall have no liability or obligation to the Issuer with
respect to any failure by a Holder to comply with, or any breach by any Holder
of, any of the obligations of such Holder under this Agreement.

           (e) Third Party Beneficiary. The Holders shall be third party
beneficiaries to the agreements made hereunder between the Issuer, on the one
hand, and the Initial Purchaser, on the other hand, and shall have the right to
enforce such agreements directly to the extent it deems such enforcement
necessary or advisable to protect its rights or the rights of Holders hereunder.

                                       17
<PAGE>

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

           (g) Headings. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise
affect the meaning hereof.

           (h) Governing Law. This Agreement shall be governed by and construed
in accordance with the internal laws of the State of New York.

           (i) Severability. In the event that any one or more of the provisions
contained herein, or the application thereof in any circumstance, is held
invalid, illegal or unenforceable, the validity, legality and enforceability of
any such provision in every other respect and of the remaining provisions
contained herein shall not be affected or impaired thereby.

                                       18
<PAGE>

           IN WITNESS WHEREOF, the parties have executed this Agreement as of
the date first written above.

                                         MORGAN STANLEY AIRCRAFT FINANCE

                                         By /s/  Brian J. Gill
                                           ------------------------------------
                                           Brian J. Gill
                                           Authorized Signatory

Confirmed and accepted as of
the date first above written:

MORGAN STANLEY & CO. INTERNATIONAL
   LIMITED

By________________________________
    Name:
    Title:

                                       19===============================================================================

                                                                 EXECUTION COPY

                   AMENDED AND RESTATED ADMINISTRATIVE AGENCY
                                   AGREEMENT

                                     among

                        MORGAN STANLEY AIRCRAFT FINANCE,

                        CABOT AIRCRAFT SERVICES LIMITED,

                             BANKERS TRUST COMPANY

                                      and

                    THE ENTITIES LISTED ON APPENDIX A HERETO

                           Dated as of March 15, 2000

===============================================================================

<PAGE>

                               TABLE OF CONTENTS

                             ----------------------

                                                                           PAGE
                                                                           ----
                                   ARTICLE 1
                                  DEFINITIONS

SECTION 1.01.  Definitions....................................................2

                                   ARTICLE 2
                      APPOINTMENT; ADMINISTRATIVE SERVICES

SECTION 2.01.  Appointment....................................................6
SECTION 2.02.  Limitations....................................................6
SECTION 2.03.  Administrative Services........................................8
SECTION 2.04. Bank Account Management and Calculation Services...............15
SECTION 2.05.  Accounting Services...........................................19
SECTION 2.06.  Additional Administrative Services............................22
SECTION 2.07.  Additional Aircraft...........................................22
SECTION 2.08.  New Subsidiaries..............................................22
SECTION 2.09.  MSAF Group Responsibility.....................................23

                                   ARTICLE 3
                STANDARD OF PERFORMANCE; LIABILITY AND INDEMNITY

SECTION 3.01.  Standard of Performance.......................................23
SECTION 3.02.  Liability and Indemnity.......................................23

                                   ARTICLE 4
                       ADMINISTRATIVE AGENT UNDERTAKINGS

SECTION 4.01.  Administrative Agent Undertakings.............................25

                                   ARTICLE 5
                           UNDERTAKINGS OF MSAF GROUP

SECTION 5.01.  Cooperation...................................................28
SECTION 5.02.  Information...................................................28
SECTION 5.03.  Scope of Services.............................................28
SECTION 5.04.  Ratification..................................................29
SECTION 5.05.  Covenants.....................................................29
SECTION 5.06.  Ratification by Subsidiaries..................................30

<PAGE>

                                   ARTICLE 6
                ADMINISTRATION FEES, EXPENSES AND SUBORDINATION

SECTION 6.01.  Administration Fees...........................................31
SECTION 6.02.  Expenses......................................................31
SECTION 6.03.  Taxes.........................................................32
SECTION 6.04.  Payment of Expenses...........................................32

                                   ARTICLE 7
          TERM; REMOVAL OF OR TERMINATION BY THE ADMINISTRATIVE AGENT

SECTION 7.01. Term...........................................................32
SECTION 7.02.  Right to Terminate............................................32
SECTION 7.03.  Consequences of Termination...................................34
SECTION 7.04.  Survival......................................................35

                                   ARTICLE 8
                           ASSIGNMENT AND DELEGATION

SECTION 8.01.  Assignment and Delegation.....................................35

                                   ARTICLE 9
                                 MISCELLANEOUS

SECTION 9.01.  Notices.......................................................35
SECTION 9.02.  Governing Law.................................................37
SECTION 9.03.  Jurisdiction..................................................37
SECTION 9.04.  WAIVER OF JURY TRIAL..........................................37
SECTION 9.05.  Counterparts; Third Party Beneficiaries.......................37
SECTION 9.06.  Entire Agreement..............................................37
SECTION 9.07.  Power of Attorney.............................................38
SECTION 9.08.  Table of Contents; Headings...................................38
SECTION 9.09.  Restrictions on Disclosure....................................38
SECTION 9.10.  No Partnership................................................39
SECTION 9.11.  Concerning the Security Trustee...............................40

                                   SCHEDULES

APPENDIX A........................................................ Subsidiaries
SCHEDULE 1........................................................ Accounts
EXHIBIT A......................................................... Certificates

                                      ii

<PAGE>

     AMENDED AND RESTATED ADMINISTRATIVE AGENCY AGREEMENT dated as of March 15,
2000, among Morgan Stanley Aircraft Finance ("MSAF"), a statutory trust
established under the laws of the State of Delaware, Cabot Aircraft Services
Limited, a company incorporated under the laws of Ireland (the "Administrative
Agent"), Bankers Trust Company, a New York banking corporation, not in its
individual capacity but solely as trustee under the Security Trust Agreement
(the "Security Trustee") and the subsidiaries of MSAF, each listed on Appendix
A hereto (collectively with MSAF, the "MSAF Group").

     For the consideration set forth herein and other good and valuable
consideration, the receipt of which is hereby acknowledged, the Administrative
Agent, MSAF and the other MSAF Group Members agree as follows:

                                   ARTICLE 1
                                  DEFINITIONS

     SECTION 1.01. Definitions. The following terms, as used herein, have the
following meanings. Unless otherwise defined herein, all capitalized terms used
but not defined herein have the meanings assigned to such terms in the
Indenture.

     "1997 Asset Purchase Agreement" means the Asset Purchase Agreement dated
as of November 10, 1997 between International Lease Finance Corporation and
MASF.

     "1999 Asset Purchase Agreements" means the Asset Purchase Agreement dated
as of August 6, 1999 among International Lease Finance Corporation, MSA IV and
MSA V and the Asset Purchase Agreement dated as of March 19, 1999 between MSA
II and GE Capital Mietfinanz GmbH & Co. kG.

     "Administrative Fee" has the meaning assigned to such term in Section 6.01
hereof.

     "Affiliate" means a Person that directly, or indirectly through one or
more intermediaries, controls or is controlled by, or is under common control
with, the Person specified; provided, however, that MSAF and the other MSAF
Group Members, on the one part, and the Administrative Agent and its
subsidiaries on the other part, shall not be considered to be Affiliates of
each other.

     "After-Tax Basis" means on a basis such that any payment received, deemed
to have been received or receivable by any Person shall, if necessary, be
supplemented by a further payment to that Person so that the sum of the two

                                       2

<PAGE>

payments shall, after deduction of all U.S. federal, state, local and foreign
Taxes, penalties, fines, interest, additions to Tax and other charges resulting
from the receipt (actual or constructive) or accrual of such payments imposed
by or under any U.S. federal, state, local or foreign law or Governmental
Authority (after taking into account any current deduction to which such Person
shall be entitled with respect to the amount that gave rise to the underlying
payment) be equal to the payment received, deemed to have been received or
receivable.

     "Aircraft" has the meaning assigned to such term in the Asset Purchase
Agreement.

     "Aircraft Assets" has the meaning assigned to such term in the Servicing
Agreement.

     "Annual Appraised Value" means initially the average Base Value of an
Aircraft at the time acquired by an MSAF Group Member and thereafter as
determined annually by the Appraisers.

     "Asset Expenses Budget" has the meaning assigned to such term in Section
7.05(a)(i) of the Servicing Agreement.

     "Asset Purchase Agreement" means the 1997 Asset Purchase Agreement and the
1999 Asset Purchase Agreements.

     "Approved Budget" has the meaning assigned to such term in Section 7.05(c)
of the Servicing Agreement.

     "Closing Date" means March 15, 2000.

     "Concentration Thresholds" has the meaning assigned to such term in
Section 2.02(a) of Schedule 2.02(a) of the Servicing Agreement.

     "Conflicts Standard" has the meaning assigned to such term in Section
3.02(b) of the Servicing Agreement.

     "Consolidated Quarterly Draft Accounts" has the meaning assigned to such
term in Section 2.05(b)(ii) hereof.

     "Consolidating Quarterly Draft Accounts" has the meaning assigned to such
term in Section 2.05(b)(iii) hereof.

                                       3

<PAGE>

     "Custody and Loan Agreement: means the Amended and Restated Custody and
Loan Agreement dated as of August 6, 1999 among MSAF, the other MSAF Lessors
(as defined therein) and ILFC.

     "Delaware Trustee" means the Wilmington Trust Company, as Delaware trustee
of MSAF.

     "Dollars" or "$" means the lawful money of the United States of America.

     "Draft Accounts" has the meaning assigned to such term in Section
2.05(b)(iii) hereof.

     "EU" means the European Union.

     "Fee Period" has the meaning assigned to such term in Section 6.01(a)
hereof.

     "Governmental Authority" means any court, administrative agency or
commission or other governmental agency or instrumentality (or any officer or
representative thereof) domestic, foreign or international, of competent
jurisdiction including, without limitation, the EU.

     "Indenture" means the Indenture dated as of March 3, 1998, between MSAF
and the Trustee.

     "Initial Periods" has the meaning assigned to such term in Section
7.05(a)(i) of the Servicing Agreement.

     "Lease" means any lease or other agreement or arrangement pursuant to
which any Person (other than a MSAF Group Member) has the right to possession
and use of any Aircraft.

     "Ledgers" has the meaning assigned to such term in Section 2.05(b)(i)
hereof.

     "Maintenance Reserves" has the meaning assigned to such term in the Asset
Purchase Agreement.

     "MSDW Loan Agreement" means the Amended and Restated Loan Agreement dated
as of March 15, 2000 among MSAF and Morgan Stanley Dean Witter & Co.

                                       4

<PAGE>

     "One Year Period" has the meaning assigned to such term in Section
7.05(a)(i) of the Servicing Agreement.

     "Operating Budget" has the meaning assigned to such term in Section
7.05(a)(i) of the Servicing Agreement.

     "Quarter" means the fiscal quarter of each MSAF Group Member, as
applicable.

     "Ratings" means the ratings assigned to the Notes by the Rating Agencies.

     "Reimbursable Expenses" has the meaning assigned to such term in Section
6.02(b) hereof.

     "Representatives" with respect to any Person means the officers,
directors, employees, advisors and agents of such Person.

     "Schedule 2.02 (a)" has the meaning assigned to such term in Section
2.03(k)(ii) hereof.

     "Securities Act" means the Securities Act of 1933, as amended.

     "Service Providers" has the meaning assigned to such term in Section
2.02(c) hereof.

     "Servicing Agreement" means the Amended and Restated Servicing Agreement
dated as of August 6, 1999 among International Lease Finance Corporation, MSAF,
the Administrative Agent and the other parties named therein.

     "Standard of Care" has the meaning assigned to such term in Section 3.01
of the Servicing Agreement.

     "Standard of Performance" has the meaning assigned to such term in Section
3.01 hereof.

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

                                       5

<PAGE>

     "Three Year Period" has the meaning assigned to such term in Section
7.05(a) of the Servicing Agreement.

     "U.S. Bankruptcy Code" has the meaning assigned to such term in Section
7.02 hereof.

     "U.S. GAAP" means generally accepted accounting principles and practices
in United States as in effect from time to time and applied consistently
throughout the periods involved.

     "Year" has the meaning assigned to such term in the Servicing Agreement.

                                       6

<PAGE>

                                   ARTICLE 2
                      APPOINTMENT; ADMINISTRATIVE SERVICES

     SECTION 2.01. Appointment. (a) Each of MSAF and the other MSAF Group
Members hereby appoints the Administrative Agent as the provider of the
administrative and related services set forth in Section 2.03, the accounting
services set forth in Section 2.05 and the additional administrative services
set forth in Section 2.06 (together with the Bank Account Management Services
referred to in subsection (b) below, collectively referred to herein as the
"Administrative Services") to each MSAF Group Member on the terms and subject
to the conditions set forth in this Agreement.

     (b) The Security Trustee, on behalf of the Secured Parties, having been
duly authorized by MSAF, hereby appoints the Administrative Agent as the
provider of the bank account management and calculation services set forth in
Section 2.04 and in the Indenture (the "Bank Account Management Services") and
delegates to the Administrative Agent its authority to administer the Accounts
and to otherwise perform the Bank Account Management Services on behalf of each
MSAF Group Member on the terms and subject to the conditions set forth in this
Agreement.

     (c) The Administrative Agent hereby accepts such appointments and agrees
to perform the Administrative Services on the terms and subject to the
conditions set forth in this Agreement.

     (d) The Administrative Services do not include any service or matter which
is the responsibility of the Servicer under the Servicing Agreement, the Cash
Manager under the Cash Management Agreement, the Financial Advisor under the
Financial Advisory Agreement or the company secretaries of any MSAF Group
Member.

     (d) The Administrative Services do not include any service or matter that
falls under the categories of "investment business services" or "investment
advice" under the Investment Intermediaries Act, 1995 or any other applicable
provision of Irish law that would require such services to be performed by an
entity that has obtained prior authorization from the Central Bank of Ireland.

     SECTION 2.02. Limitations. (a) The Administrative Agent agrees (with
respect to the Administrative Services agreed by it to be carried out
hereunder) to comply with the terms of the articles of incorporation, by-laws,
trust agreements or similar constituting documents of each MSAF Group Member
and all agreements to which any MSAF Group Member is a party (including all
Relevant Documents), provided that copies of such documents and agreements have
been delivered to the Administrative Agent and, without prejudice to the
foregoing, not to enter into, on behalf of any MSAF Group Member, any
commitments, loans or obligations or

                                       7

<PAGE>

charge, mortgage, pledge, encumber or otherwise restrict or dispose of the
property or assets or expend any funds of any MSAF Group Member save (i) as
expressly permitted by the terms of this Agreement or (ii) upon the express
direction of the Controlling Trustees.

     (b) In connection with the performance of the Administrative Services, the
Administrative Agent shall (i) have no responsibility for the failure of any
other Person (other than any Person acting as a delegate of the Administrative
Agent under this Agreement pursuant to Section 8.01 hereof) providing services
directly to MSAF Group to perform its obligations to MSAF Group, (ii) in all
cases be entitled to rely upon the instructions of MSAF Group with respect to
any Administrative Services other than the Bank Account Management Services or
the Security Trustee on behalf of MSAF Group with respect to any Bank Account
Management Services, and upon notices, reports or other communications made by
any Person providing services to MSAF Group (other than any Affiliate of the
Administrative Agent) and shall not be responsible for the accuracy or
completeness of any such notices, reports or other communications except to the
extent that the Administrative Agent has actual notice of any matter to the
contrary and (iii) not be obligated to act in any manner which is reasonably
likely to (A) violate any Applicable Law, (B) lead to an investigation by any
Governmental Authority or (C) expose the Administrative Agent to any
liabilities for which, in the Administrative Agent's good faith opinion,
adequate bond or indemnity has not been provided.

     (c) Subject to the limitations set forth in Section 2.02(a), in connection
with the performance of the Administrative Services, the Administrative Agent
is expressly authorized by MSAF and each other MSAF Group Member, (i) to engage
in and conclude commercial negotiations with the Persons providing services to
MSAF Group, including, without limitation, where the context admits, the
Servicer, the Cash Manager, the Financial Advisor and other Persons performing
similar services or advising MSAF Group (the "Service Providers") and with
their Representatives, and (ii) after such consultation, if any, as the
Administrative Agent deems necessary under the circumstances, to act on such
MSAF Group Member's behalf with regard to any and all matters requiring any
action on the part of the Administrative Agent under the Servicing Agreement.
MSAF Group agrees that it will give the Administrative Agent and the Servicer
60 days prior written notice of any limitation or modification of the authority
set forth in this Section 2.02(c).

     (d) The Administrative Agent may rely on the advice of any law firm,
accounting firm, risk management adviser, tax adviser, insurance adviser,
technical adviser, aircraft appraiser or other professional adviser appointed
by MSAF and any Person appointed in good faith by the Administrative Agent and
shall not be liable for any claim by any MSAF Group Member to the extent that
it was acting in good faith upon the advice of any such persons.

                                       8

<PAGE>

     (e) Notwithstanding the appointment of, and the delegation of authority
and responsibility to, the Administrative Agent hereunder, MSAF and each other
MSAF Group Member shall continue to have and exercise through its respective
controlling trustees or board real and effective central control and management
of all matters related to its ongoing business, operations, assets and
liabilities, subject to matters that are expressly the responsibility of the
Administrative Agent in accordance with the terms of this Agreement, and each
MSAF Group Member shall at all times conduct its separate ongoing business in
such a manner as the same shall at all times be readily identifiable from the
separate business of the Administrative Agent, and none of the MSAF Group
Members is merely lending its name to decisions taken by others.

     SECTION 2.03. Administrative Services. The Administrative Agent hereby
agrees to perform and provide the following services for each MSAF Group Member
and its respective governing bodies:

     (a) administrative services:

          (i) except in such instances in which such preparation and
     distribution is required to be done by another party by Applicable Law,
     preparation and distribution, at such time as shall be agreed with the
     Administrative Agent, of draft trustees or board meeting agendas and any
     other papers required in connection with such meetings;

          (ii) maintaining, or monitoring the maintenance of, the books,
     records, registers and associated filings of each MSAF Group Member, other
     than those required to be maintained by the Delaware Trustee;

          (iii) providing any administrative assistance reasonably necessary to
     assist any MSAF Group Member in carrying out its obligations, including
     providing timely notice of decisions to be made, or actions to be taken,
     under any of the Relevant Documents; provided, that if the obligations of
     any MSAF Group Member under any of the Relevant Documents are only
     required upon receipt of notice to such MSAF Group Member or the
     Administrative Agent, then the Administrative Agent shall provide such
     administrative assistance only to the extent it has received such notice
     or is otherwise aware of such obligations;

          (iv) assisting MSAF Group in: making its aircraft lease, sale and
     capital investment decisions including to the extent (i) such assistance
     is not contemplated to be provided by the Servicer pursuant to the
     Servicing Agreement and (ii) such decisions are not required to be made by
     the Controlling Trustees;

                                       9

<PAGE>

          (v) procuring, when the Administrative Agent considers in good faith
     that it is appropriate or necessary to do so, and coordinating the advice
     of, legal counsel, accounting, tax and other professional advisers at the
     expense of the relevant MSAF Group Member, to assist such MSAF Group
     Member in carrying out its obligations, and supervising, in accordance
     with instructions from such MSAF Group Member, such legal counsel and
     other advisers;

          (vi) as frequently as is necessary for each MSAF Group Member to
     comply with its obligations under the Relevant Documents, arranging for
     the Appraisals to be made and providing the Appraisals to the relevant
     Service Providers; and

          (vii) providing assistance to the Servicer with respect to matters
     for which such assistance is contemplated by the Servicing Agreement or is
     reasonably necessary in order for the Servicer to perform its duties in
     accordance with the Servicing Agreement.

     (b) to monitor the performance of the Service Providers and to report on
such performance to the Controlling Trustees on a quarterly basis, including:

          (i) with respect to the Servicer:

               (A) monitoring and reviewing the information and other reports
          provided by the Servicer pursuant to the Servicing Agreement,
          including with respect to the status of Lease payments, Lessee
          receivables, Maintenance Reserves, security deposits, adjustments of
          rentals and claims against Maintenance Reserves in accordance with
          Lease terms (to the extent provided to the Administrative Agent);

               (B) assisting in evaluating the Servicer's performance relative
          to the Standard of Care and the Conflicts Standard;

               (C) assisting in establishing standards for evaluating the
          Servicer's performance relative to the terms of the Servicing
          Agreement generally, assisting in evaluating such performance against
          such standards and recommending action with respect thereto;

               (D) reviewing and providing advice with respect to
          recommendations made by the Servicer for approval by any MSAF Group
          Member; and

                                      10

<PAGE>

               (E) monitoring the compliance of the Servicer with its
          obligations under the Servicing Agreement;

          (ii) with respect to the other Service Providers:

               (A) to the extent not provided for in the relevant agreement,
          assisting in establishing standards for performance evaluation and
          compliance with the terms of such agreement;

               (B) assisting in evaluating the performance and compliance of
          each Service Provider against its obligations under the relevant
          agreement or such standards as are established pursuant to subsection
          2.03(b)(ii)(A) above;

               (C) monitoring and reviewing the information and reports
          provided by the Cash Manager to the Administrative Agent and the
          relevant MSAF Group Member and reviewing and providing advice with
          respect to such reports; and

               (D) implementing any other request by MSAF Group to evaluate the
          performance of the Service Providers under the relevant agreements
          with MSAF Group, which shall be at the expense of MSAF Group, to the
          extent services are required that are materially greater in scope
          than those being provided pursuant to the express terms of this
          Agreement;

     (c) to the extent that (i) the following services are not provided by the
other Service Providers, and (ii) the relevant information is provided to the
Administrative Agent by MSAF Group or the Service Providers, to act as liaison
with the Rating Agencies with respect to the rating impact of any decisions on
behalf of MSAF Group, including:

               (i) advising the Rating Agencies from time to time of any
          material changes in the Portfolio, coordinating with MSAF Group and
          the Service Providers and providing the Rating Agencies with such
          statistical and other information as they may from time to time
          request (such information to be provided at MSAF Group's expense to
          the extent that providing such information requires services that are
          materially greater in scope than those being provided pursuant to the
          express terms of this Agreement);

               (ii) providing the Rating Agencies with the Outstanding
          Principal Balances of each class or subclass of Notes and
          loan-to-value ratios (i.e., ratio of debt to Annual Appraised Value
          of MSAF Group's assets); and

                                      11

<PAGE>

               (iii) coordinating among MSAF Group, the Servicer and the
          Appraisers to ensure that the Appraisals are received as required;

     (d) to provide assistance to MSAF Group in procuring lessee consents,
novations and other documentation and in taking all other actions necessary in
connection with the reissue or amendment of letters of credit;

     (e) to provide assistance to MSAF Group in the structuring, negotiation
and execution of (1) the re-lease and/or sale of the Aircraft, (2) the
acquisition of Additional Aircraft and (3) financing transactions relating to
MSAF Group after the Closing Date, including:

          (i) coordinating with the Service Providers, legal and other
     professional advisers to monitor the protection of MSAF Group's interests
     and rights and coordinating the execution of documentation required at
     closings;

          (ii) providing qualified personnel to attend and provide
     administrative support (including the preparation of any certificates
     required pursuant to the Servicing Agreement) at the closings in
     connection with sales or re-leases of the Aircraft and the acquisition of
     any Additional Aircraft, if required (it being understood that the
     Administrative Agent will not be obligated to provide legal counsel or
     legal or technical services to MSAF Group);

          (iii) coordinating with MSAF Group and the Service Providers and
     assisting in the management of the closing process so that closings will
     occur on a timely basis;

          (iv) providing all necessary administrative support to complete any
     documentation and other related matters; and

          (v) appointing counsel and other appropriate professional advisers to
     represent MSAF Group in connection with any such closings;

     (f) to coordinate with the Cash Manager, including reviewing the effect on
the cash flows required for payment of the Notes of investments and
reinvestments of cash by the Cash Manager pursuant to the Cash Management
Agreement;

     (g) based on information produced or provided to it, to prepare, file
and/or distribute, with the assistance of outside counsel and auditors, if
appropriate, all reports to be prepared, filed and/or distributed by any MSAF
Group Member or its governing bodies, subject to the approval of the
Controlling Trustees in the case of any exchange offer documents filed by MSAF
under the Securities Act and the

                                      12

<PAGE>

Exchange Act, and any reports filed by MSAF on Form 10-K and 10-Q and, if such
form is being filed with any information other than the monthly report to
noteholders, any Form 8-K under the Exchange Act, including:

          (i) filings any MSAF Group Member is required to make in various
     jurisdictions and preparing such filings or monitoring counsel and
     advisers in connection with the preparation and filing of such materials;

          (ii) filings MSAF is required to make under the Securities Act and
     the Exchange Act in connection with the preparation and filing of any
     exchange offer documents;

          (iii) compliance by MSAF with applicable periodic reporting
     requirements of the Exchange Act, in particular, working with necessary
     professional advisers to MSAF and the Service Providers, as appropriate,
     to prepare on behalf of MSAF and to arrange for the filing and
     distribution of an annual report on Form 10-K in respect of MSAF and, as
     periodic reporting requirements of the Exchange Act, quarterly reports on
     Form 10-Q and any required reports on Form 8-K in respect of MSAF;

          (iv) reports required or recommended to be distributed to investors
     (including press releases), and managing investor relations on behalf of
     MSAF Group, and preparing or arranging for the preparation and
     distribution of such reports at MSAF Group's expense; and

          (v) reports required to be filed with any Governmental Authorities,
     and preparing on behalf of any MSAF Group Member or arranging for the
     preparation of and arranging for the filing of any reports required to be
     filed with any other entity in order for such MSAF Group Member not to be
     in violation of Applicable Law or any applicable covenants;

     (h) with respect to amendments,

          (i) to report on the substance of any proposed amendments to any
     Relevant Documents;

          (ii) to the extent requested by any MSAF Group Member or by the
     parties to Relevant Documents and subject to approval by the appropriate
     controlling trustees or board, to coordinate with MSAF Group's legal
     counsel, the other parties thereto and their counsel the preparation and
     execution of any amendments to the Relevant Documents (other than
     amendments relating to the Aircraft or the Leases), and to provide
     assistance in the implementation of such amendments; and

                                      13
<PAGE>

          (iii) to the extent reasonably requested by the Servicer, to
     coordinate and provide assistance on behalf of MSAF Group with the
     Servicer and seek to obtain appropriate approvals to take any action which
     may be required to amend the terms of the Leases;

     (i) to the extent reasonably requested by the Servicer, to coordinate and
provide assistance on behalf of MSAF Group with the Servicer and outside
counsel in a Lessee default or repossession situation;

     (j) to authorize payment of certain bills and expenses (i) payable to
legal and professional advisers authorized to be engaged or consulted pursuant
to this Agreement or (ii) approved by the Controlling Trustees;

     (k) providing assistance to MSAF with respect to matters for which action
by MSAF is required under the Servicing Agreement or the Indenture, including
such assistance that may be necessary for MSAF to:

          (i) comply with Sections 6.07, 7.05(a)(i) and 7.06 of the Servicing
     Agreement;

          (ii) provide such instructions to the Servicer as the Servicer may
     require in interpreting the Indenture, the Concentration Thresholds and
     Annex 1 to Schedule 2.02(a) to the Servicing Agreement ("Schedule
     2.02(a)");

          (iii) direct the Servicer to amend the minimum hull and liability
     insurance coverage amounts set forth in Schedule 1.03(a) to Schedule
     2.02(a);

          (iv) direct the Servicer that settlement offers received by the
     Servicer with respect to claims for damage or loss in excess of $2,000,000
     with respect to an Aircraft Asset are acceptable;

          (v) request periodic reports from the Servicer regarding insurance
     matters;

          (vi) grant approvals when such approvals are required by Section
     7.06(a) and Schedule 2.02(a) of the Servicing Agreement;

          (vii) provide the Servicer with such information as the Servicer may
     reasonably request in connection with the Concentration Thresholds and
     certify to the Servicer that proposed Aircraft-related transactions will
     not result in the violation of such Concentration Thresholds;

                                      14

<PAGE>

          (viii) advise the Servicer as required by Section 3(c) of Schedule
     2.02(a);

          (ix) direct the Servicer to arrange for the sale of an Aircraft Asset
     and certify to the Servicer that such sale complies with the terms of the
     Indenture;

          (x) make any discretionary decisions, judgments or assumptions
     necessary in connection with the preparation of any projections, and
     provide the Servicer with any written policies and guidelines that the
     Servicer shall require in connection with such preparation; and

          (xi) request information and assistance from the Servicer in regard
     to valuations of Aircraft Assets in accordance with Section 5.01 of
     Schedule 2.02(a).

     (l) to inform the Controlling Trustees as soon as is reasonably
practicable if the Administrative Agent believes that (i) net revenues
generated by the Leases will be insufficient to satisfy the payment obligations
of MSAF Group and (ii) an Event of Default will result from such insufficiency,
and to advise the Controlling Trustees as to any appropriate action to be taken
(subject to the provisions of the Relevant Documents) with respect to such
insufficiency and to cause the actions directed by the Controlling Trustees to
be implemented so as to avoid an Event of Default, if it is possible to do so;

     (m) to advise the Controlling Trustees as to the appropriate levels of the
Liquidity Reserve Amount;

     (n) to oversee the general operation of any credit or liquidity
enhancement facility provided for the benefit of MSAF, including without
limitation the MSDW Loan Agreement and the Custody and Loan Agreement
(including without limitation monitoring the amounts committed and available
for drawing, and outstanding and required to be repaid, under each such
facility);

     (o) to determine whether it is necessary or appropriate at any time that
MSAF make a drawing under any back-up letter of credit of which MSAF is the
beneficiary and, if so, to administer such drawing on MSAF's behalf; and

     (p) any additional services that the Administrative Agent deems necessary
and appropriate in furtherance of the services list in (a) through (o) above.

     SECTION 2.04. Bank Account Management and Calculation Services. The
Administrative Agent hereby agrees to perform and provide the following bank
account management and calculation services:

                                      15

<PAGE>

     (a) Establishment of Accounts. (i) Operating Bank. The Operating Bank
shall be the Senior Trustee, initially Bankers Trust Company.

          (ii) Establishment of Accounts. The Administrative Agent shall
     establish and maintain each of the Accounts set forth on Schedule 1
     hereto, in each case in the manner described herein and in Section 3.01 of
     the Indenture. The Administrative Agent shall take all actions necessary
     to establish, and shall establish, additional or replacement Accounts from
     time to time as required by and in accordance with the terms of Section
     3.01 of the Indenture. In addition, the Administrative Agent shall take
     all actions necessary to cause the Security Trustee to be granted, to the
     extent possible, a security interest pursuant to Section 2.08 of the
     Security Trust Agreement in the interest of each MSAF Group Member in the
     cash balances from time to time deposited in the Accounts.

          (iii) Successor Operating Bank. If the Operating Bank should change
     as a result of (A) the resignation of the Senior Trustee or replacement of
     the Senior Trustee by an Eligible Institution pursuant to the terms of the
     Indenture, (B) the repayment in full of the Senior Class of Notes or (C)
     such Operating Bank's failure to meet the criteria necessary to qualify as
     an Eligible Institution, then the Administrative Agent, acting on behalf
     of the Security Trustee, shall thereupon promptly establish replacement
     accounts as necessary at the successor Operating Bank and transfer the
     balance of funds in each Account then maintained at the former Operating
     Bank to such successor Operating Bank.

     (b) Description of Accounts. (i) Collection Account. The Administrative
Agent shall establish and maintain the Collection Account in accordance with
Section 3.01(b) of the Indenture.

          (ii) The Lessee Funded Account. The Administrative Agent shall
     establish and maintain the Lessee Funded Account in accordance with
     Section 3.01(c) of the Indenture.

          (iii) Expense Account. The Administrative Agent shall establish and
     maintain the Expense Account in accordance with Section 3.01(c) of the
     Indenture.

          (iv) Rental Accounts. The Administrative Agent shall establish and
     maintain the Rental Accounts, and from time to time shall establish and
     maintain one or more additional Rental Accounts (including one or more
     Non-Trustee Accounts that, for tax or other regulatory or legal purposes,
     cannot be established in the name of the Security Trustee), each in
     accordance with Section 3.01(e) of the Indenture.

                                      16

<PAGE>

          (v) Refinancing Account. The Administrative Agent shall establish and
     maintain a Refinancing Account with respect to each class or subclass of
     Notes in accordance with Section 3.01(f) of the Indenture.

          (vi) Defeasance/Redemption Account. The Administrative Agent shall
     establish and maintain the Defeasance/Redemption Account in accordance
     with Section 3.01(g) and Article XI of the Indenture.

          (vii) Remaining Aircraft Deposit Account. The Administrative Agent
     shall establish and maintain the Remaining Aircraft Deposit Account in
     accordance with Section 3.01(h) of the Indenture.

          (viii) Lessee Payment Instructions. The Administrative Agent shall
     take all necessary steps to ensure that all funds on deposit in each
     Rental Account are transferred from such Rental Account to the Collection
     Account within one Business Day of receipt thereof.

          (ix) Bank Account Statements. The Administrative Agent shall take all
     necessary steps to ensure that the Operating Bank and each other bank at
     which a Rental Account is located shall furnish as of the close of
     business on each Calculation Date a statement providing the then current
     balance of each applicable Account to the Security Trustee, MSAF, the
     Trustee, the Servicer and the Cash Manager.

          (x) Maintaining the Non-Trustee Accounts. So long as any Secured
     Obligations remain Outstanding:

               (A) The Administrative Agent shall maintain, or cause to be
          maintained, each Non-Trustee Account in the name of the related
          Grantor (as defined in the Security Trust Agreement) only with a bank
          (an "Account Bank") that has entered into a letter agreement in
          substantially the form of Exhibit B to the Security Trust Agreement
          (or made such other arrangements as are acceptable to the
          Administrative Agent and the Security Trustee) with such Grantor and
          the Security Trustee (an "Account Letter").

               (B) The Administrative Agent (x) shall promptly instruct each
          Person obligated at any time to make any payment to any Grantor for
          any reason (an "Obligor") to make such payment to a Non-Trustee
          Account meeting the requirements of clause 2.04(b)(x)(A) above, (y)
          shall instruct each such Account Bank to transfer to the Collection
          Account, in immediately available funds, within one Business Day of
          receipt thereof, an amount equal to the credit balance of the
          Non-Trustee Account in such Account Bank (other than any amount
          required to be left on deposit in such

                                      17

<PAGE>

          Account Bank for local tax or other regulatory or legal purposes),
          and (z) shall transfer or cause each such Account Bank to transfer to
          the Security Trustee for deposit in the Collection Account, within
          one Business Day of receipt thereof, all other Cash Collateral and
          any proceeds of any of the Collateral.

               (C) Upon the termination of any Account Letter or other
          arrangement with respect to the maintenance of a Non-Trustee Account
          by any Grantor or any Account Bank, the Administrative Agent shall
          immediately notify all Obligors that were making payments to such
          Non-Trustee Account to make all future payments to another
          Non-Trustee Account meeting the requirements of clause (i) above or,
          if practicable at such time, to an Account in the name of the
          Security Trustee.

     (c) Calculations. Pursuant to Section 3.06 of the Indenture, the
Administrative Agent shall, at the times and in the manner set forth therein,
determine or calculate each of the amounts required to be determined or
calculated by it pursuant to Sections 3.06(a) through (f) of the Indenture.

     (d) Withdrawals and Transfers. The Administrative Agent shall make the
following withdrawals and transfers in accordance with the terms of the
Indenture:

               (i) Closing Date Deposits, Withdrawals and Transfers. On the
          Closing Date, the Administrative Agent shall make each of the
          transfers described in Section 3.03 of the Indenture.

               (ii) Interim Withdrawals and Transfers for Expenses, Certain
          Lease Obligations and Other Obligations. From time to time, the
          Administrative Agent shall make the withdrawals and transfers
          provided for in Section 3.04 of the Indenture in accordance with such
          Section.

               (iii) Interim Deposits and Withdrawals for Modification Payments
          or Dispositions of Aircraft. From time to time, the Administrative
          Agent shall make the withdrawals and transfers provided for in
          Section 3.05 of the Indenture in accordance with such Section.

               (iv) Payment Date First Step Withdrawals and Transfers. On each
          Payment Date, the Administrative Agent shall make the withdrawals and
          transfers provided for in Section 3.07 of the Indenture in accordance
          with such Section.

               (v) Payment Date Second Step Withdrawals. Subject to Section
          2.04(d)(vi) hereof, on each Payment Date, after the withdrawals and
          transfers provided for in Section 2.04(d)(iv) hereof have been made,
          the

                                      18

<PAGE>

          Administrative Agent shall distribute funds on deposit in the
          Collections Account and the Expense Account as provided in Section
          3.08(a) of the Indenture; provided, that any such direct funds
          transfer shall have been authorized on or prior to the date thereof
          by the Administrative Agent in the form of a certificate,
          substantially in the form of Exhibit A hereto, delivered to and
          acknowledged by the Trustee.

               (vi) Event of Default and Default Notice Withdrawals and
          Transfers. Notwithstanding anything to the contrary contained in
          Section 2.04(d)(iv) or (v) hereof, following the delivery of a
          Default Notice to the Administrative Agent or MSAF pursuant to the
          Indenture, after the withdrawals and transfers provided for in
          Section 2.04(d)(iv) hereof have been made, the Administrative Agent
          shall distribute funds on deposit in the Collection Account and the
          Expense Account in the amounts and in the order of priority provided
          for in Section 3.08(b) of the Indenture.

               (vii) Defeasance/Redemption Transfers. The Administrative Agent
          shall transfer from time to time amounts on deposit in the
          Defeasance/Redemption Account to the applicable Note Account in
          connection with either the redemption of any class or subclass of
          Notes in accordance with Section 3.10 of the Indenture or the
          exercise of the defeasance provisions set forth in Article XI of the
          Indenture.

               (viii) Refinancing Transfers. The Administrative Agent shall
          transfer from time to time amounts on deposit in the Refinancing
          Account to the Note Accounts in connection with any Refinancing in
          accordance with Section 2.10 of the Indenture.

               (ix) Currency Conversions. If and to the extent that MSAF incurs
          any payment obligation or other cost in a currency other than U.S.
          dollars, the Administrative Agent shall, to the extent practicable,
          convert U.S. dollars into such other currency at the then prevailing
          market rate as necessary to discharge such payment obligations or
          costs, at the expense of MSAF in accordance with Section 13.07 of the
          Indenture.

     (e) Ratings and the Accounts. Each Account shall at all times be
maintained at the Operating Bank or another Eligible Institution selected by
the Administrative Agent in accordance with the Security Trust Agreement and
the Indenture; provided that one or more Rental Accounts may be maintained at
any other reputable and responsible bank in accordance with Section 3.01 of the
Indenture.

     (f) Records. The Administrative Agent shall provide such information
relating to the Accounts to the Security Trustee, the Trustee, the Cash Manager
or the Rating Agencies as any of them may reasonably request from time to time.

                                      19

<PAGE>

     (g) Reports. The Administrative Agent shall provide the reports and other
information required to be provided by it pursuant to Section 3.06(g) of the
Indenture, together with copies of such additional reports or other information
as the Security Trustee or the Trustee may reasonably request, all in
accordance with the terms of the Indenture.

     SECTION 2.05. Accounting Services. The Administrative Agent hereby agrees
to perform and provide the following accounting services:

     (a) Budgeting Process. The Administrative Agent shall, in accordance with
the procedures, policies and guidelines described below and on the basis of
information generated by the Administrative Agent and information provided by
the Service Providers and MSAF Group:

               (i) in respect of each One Year Period and Three Year Period
          after the Initial Periods during the term of the Servicing Agreement,
          and on behalf of MSAF Group, prepare and deliver to the Servicer, no
          later than the September 30 immediately preceding the commencement of
          each Year proposed One Year and Three Year Operating Budgets and One
          Year and Three Year Asset Expenses Budgets for each such period
          together with reasonably detailed supporting information and the
          assumptions underlying such proposed Operating Budgets or Asset
          Expenses Budgets, such proposed Operating Budgets and Asset Expenses
          Budgets to be based, in part, on the information provided by the
          Servicer pursuant to Section 7.05(c) of the Servicing Agreement;

               (ii) on behalf of MSAF Group, review, discuss and negotiate with
          the Servicer such proposed Operating Budgets and Asset Expenses
          Budgets, and make such adjustments proposed by the Servicer as the
          Administrative Agent shall deem appropriate; and

               (iii) submit to the Servicer no later than the November 10
          immediately preceding the commencement of such Year the Approved
          Budgets together with reasonably detailed information regarding
          MSAF's underlying assumptions.

     (b) Management Accounts and Financial Statements. The Administrative Agent
shall, in accordance with the procedures, policies and guidelines described
below and on the basis of information generated by the Administrative Agent and
information provided by the Service Providers and MSAF Group:

               (i) establish an accounting system and maintain the accounting
          ledgers of and for each MSAF Group Member in accordance with

                                      20

<PAGE>

          accounting principles generally accepted in the United States, unless
          otherwise required by Applicable Law and specified by the Controlling
          Trustees (collectively, the "Ledgers");

               (ii) prepare and deliver (within [40] days after the end of the
          relevant Quarter or, if the end of such Quarter coincides with the
          end of a Year, within [75] days after the end of such Year), with
          respect to MSAF Group, on a consolidated basis, a draft balance sheet
          and draft statement of changes in shareholders' equity or residual
          trust interest as of the end of each Quarter and Year, as applicable,
          and draft statements of income and cash flows for each Quarter and
          Year, as applicable (the "Consolidated Quarterly Draft Accounts");

               (iii) to the extent required by Applicable Law, prepare and
          deliver (within 40 days after the end of the relevant Quarter or, if
          the end of such Quarter coincides with the end of a Year, within 90
          days after the end of such Year), with respect to MSAF Group on a
          combined basis and such of MSAF and the other MSAF Group Members as
          specified by the Controlling Trustees in a written schedule provided
          to the Administrative Agent (which schedule may be updated by the
          Controlling Trustees to the Administrative Agent delivered at least
          30 days prior to the commencement of the relevant Quarter), on a
          consolidating company-by-company basis, a draft balance sheet and
          statement of changes in shareholders' equity or residual trust
          interest as of the end of each Quarter and Year, as applicable, with
          respect to such MSAF Group Member and draft statements of income and
          cash flows for such Quarter and Year, as applicable (the
          "Consolidating Quarterly Draft Accounts" and, together with the
          Consolidated Quarterly Draft Accounts the "Draft Accounts"). The
          Controlling Trustees shall specify the applicable legal requirements
          mandating the preparation of such Consolidating Quarterly Draft
          Accounts in the written schedule provided to the Administrative Agent
          pursuant to this section;

               (iv) as required by the Controlling Trustees, arrange and manage
          the quarterly review of the Draft Accounts by MSAF Group's auditors;

               (v) arrange for, coordinate with and assist MSAF Group's
          auditors in preparing annual audits;

               (vi) prepare or arrange for the preparation of and arrange for
          the filing of MSAF Group's tax returns in conjunction with MSAF
          Group's tax advisers after submission to the Controlling Trustees to
          the extent required by the Controlling Trustees or Applicable Law;

                                      21

<PAGE>

               (vii) liaise with the Servicer for the purpose of preparing the
          weekly and monthly reports in accordance with Sections 8.01 and 8.02
          of Schedule 2.02(a); and

               (viii) compare the expected cash flows of MSAF Group and the
          budgets to actual results.

     (c) The Administrative Agent shall prepare the Draft Accounts in
accordance with U.S. GAAP unless otherwise required by Applicable Law and
specified by the Controlling Trustees. In connection with the preparation of
the Consolidated Quarterly Draft Accounts, the Controlling Trustees will,
provide to the Administrative Agent, at such times as the Administrative Agent
may require, a review report (as defined by the Statements on Standards for
Accounting and Review Services issued by the American Institute of Certified
Public Accountants) of MSAF Group's independent public accountants with respect
to the financial statements of such MSAF Group Members for, or as of the end
of, such Quarter, including in such report such accountants' statement that,
based on its review of such financial statements, it is not aware of any
material modifications that should be made to such financial statements in
order for them to be in conformity with U.S. GAAP or other applicable
accounting principles; provided, however, that, with respect to such financial
statements for, or as of the end of, any Quarter (other than the last Quarter
of any Year), in the event that MSAF Group does not include (or cause to be
included) any material disclosure required by U.S. GAAP or other applicable
accounting principles to be included within footnotes to such financial
statements, such review report may be qualified solely by stating that the only
modification that should be made to such financial statements in order for them
to be in conformity with U.S. GAAP or other applicable accounting principles is
the inclusion of such disclosure; provided further, however, that such
qualification may not relate to any footnote to such financial statements.

     (d) The Administrative Agent shall be entitled to request instructions
from the Controlling Trustees as to general guidelines or principles to be
followed in preparing Draft Accounts and as to amending or supplementing any
such guidelines or principles.

     SECTION 2.06. Additional Administrative Services. The Administrative Agent
will provide additional Administrative Services, including (a) providing
assistance in (i) arranging one or more Refinancings of all or a portion of the
Notes, and (ii) arranging for the payment of any purchase price adjustment
necessary to be paid pursuant to the Asset Purchase Agreement and (b)
undertaking efforts to avoid any adverse change in the tax status of any MSAF
Group Member. In addition, upon a request by any MSAF Group Member, the
Administrative Agent will take such other actions as may be appropriate to
facilitate such MSAF Group Member's business operations and assist the
Controlling Trustees in carrying out their obligations; provided, however, that
the Administrative Agent

                                      22

<PAGE>

will not be obligated or permitted to take any action that might reasonably be
expected to result in the business of such MSAF Group Member ceasing to be
separate and readily identifiable from, and independent of, the Administrative
Agent, and any of its Affiliates.

     SECTION 2.07. Additional Aircraft. In the event that MSAF Group shall
acquire any Additional Aircraft and notwithstanding that MSAF Group may retain
different service providers for such Additional Aircraft, the Administrative
Agent hereby agrees to provide the same Administrative Services with respect to
all such Additional Aircraft.

     SECTION 2.08. New Subsidiaries. The Administrative Agent shall be
responsible for coordinating with outside legal counsel, auditors, tax advisers
and other professional advisers with respect to all corporate and
administrative matters relating to the formation, operation, corporate affairs
and related matters with respect to all Subsidiaries which are or may become
members of MSAF Group, including identifying such outside advisers, a potential
company secretary and candidates for trustee to the extent necessary, and shall
be permitted to incur expenses in respect of such Subsidiaries without MSAF
Group's consent up to such aggregate amount as shall be authorized from time to
time. To the extent that the Administrative Agent shall deem it necessary or
desirable in order for MSAF Group to carry on its business, the Administrative
Agent shall have the authority to assist in the formation of new Subsidiaries
of MSAF and to appoint any director to any such Subsidiary without the consent
of MSAF Group; provided, that such directors are the same directors of MSAF
then in office unless otherwise required by applicable local law mandating a
particular citizenship for directors. The Administrative Agent and its
personnel may act as company secretary for any Subsidiary.

     SECTION 2.09. MSAF Group Responsibility. (a) The obligations of the
Administrative Agent hereunder are limited to those matters that are expressly
the responsibility of the Administrative Agent in accordance with the terms of
this Agreement. Notwithstanding the appointment of the Administrative Agent to
perform the Administrative Services, each MSAF Group Member shall remain
responsible for all matters and decisions related to its business, operations,
assets and liabilities.

     (b) Without derogating from the authority and responsibility of the
Administrative Agent with respect to the performance of certain of the
Administrative Services as set forth in this Agreement, it is hereby expressly
agreed and acknowledged that the Administrative Agent is not authorized or
empowered to make or enter into any agreement, contract or other legally
binding arrangement, in respect of or relating to the business or affairs of
any MSAF Group Member, or pledge the credit of, incur any indebtedness on
behalf of or expend any funds of any MSAF Group Member other than as expressly
permitted in

                                      23

<PAGE>

accordance with the terms of this Agreement, all such authority and power being
reserved to the appropriate MSAF Group Member or the Security Trustee, as the
case may be.

                                   ARTICLE 3
                STANDARD OF PERFORMANCE; LIABILITY AND INDEMNITY

     SECTION 3.01. Standard of Performance. The Administrative Agent will
devote the same amount of time and attention to and will be required to
exercise the same level of skill, care and diligence in the performance of its
services as it would if it were administering such services on its own behalf
(the "Standard of Performance").

     SECTION 3.02. Liability and Indemnity. (a) The Administrative Agent shall
not be liable for any Losses or Taxes to or of, or payable by any MSAF Group
Member at any time from any cause whatsoever or any Losses or Taxes directly or
indirectly arising out of or in connection with or related to the performance
by the Administrative Agent of this Agreement unless such Losses or Taxes are
the result of the Administrative Agent's own wilful misconduct, deceit or fraud
or that of any of its directors, officers, agents or employees, as the case may
be.

     (b) Notwithstanding anything to the contrary set forth in any other
agreement to which any MSAF Group Member is a party, MSAF and the other MSAF
Group Members, do hereby assume liability for and do hereby jointly and
severally agree to indemnify, reimburse and hold harmless on an After-Tax Basis
the Administrative Agent, its directors, officers, employees and agents and
each of them from any and all Losses or Taxes that may be imposed on, incurred
by or asserted against any of them arising out of, in connection with or
related to the Administrative Agent's performance under this Agreement
(including any Losses or Taxes incurred by the Administrative Agent as a result
of indemnifying any Person to whom it shall have delegated its obligations
hereunder in accordance with Section 8.01, but only to the extent the
Administrative Agent would have been indemnified had it performed such
obligations), except as a result of the wilful misconduct, deceit or fraud of
the Administrative Agent or any of its directors, officers, employees or
agents. This indemnity shall not apply to:

          (i) Taxes imposed on net income by the revenue authorities of Ireland
     in respect of any payment by any MSAF Group Member to the Administrative
     Agent due to the performance of the Administrative Services; and

          (ii) Taxes imposed on net income of the Administrative Agent by any
     Government Authority other than the revenue authorities of Ireland to

                                      24

<PAGE>

     the extent such Taxes would not have been imposed in the absence of any
     connection of the Administrative Agent with such jurisdiction imposing
     such Taxes other than any connection that results from the performance by
     the Administrative Agent of its obligations under this Agreement.

     This indemnity shall expressly inure to the benefit of any director,
officer, agent or employee of the Administrative Agent now existing or in the
future and to the benefit of any successor of the Administrative Agent and
shall survive the expiration of this Agreement.

     (c) The Administrative Agent agrees to indemnify, reimburse and hold
harmless on an After-Tax Basis each MSAF Group Member and its respective
trustees, directors and agents for any Losses whatsoever which they or any of
them may incur or be subject to in consequence of the performance of the
Administrative Services or any breach of the terms of this Agreement by the
Administrative Agent, but only to the extent such Losses arise due to the
wilful misconduct, deceit or fraud of the Administrative Agent or any of its
directors, officers or employees, as the case may be; provided, however, that
this indemnity shall not apply and the Administrative Agent shall have no
liability in respect of Losses to the extent that they arise from (i) the
wilful misconduct, deceit or fraud of any MSAF Group Members or their
respective directors, trustees or agents, (ii) any breach by the Administrative
Agent of its obligations under this Agreement to the extent such breach is a
result of a Service Provider's failure to perform its obligations to MSAF Group
or a failure by MSAF Group to comply with its obligations under this Agreement,
(iii) any action that MSAF Group requires the Administrative Agent to take
pursuant to a direction but only to the extent that the Administrative Agent
takes such action in accordance with such direction and in accordance with the
provisions hereof or (iv) a refusal by MSAF Group to take action upon a
recommendation made in good faith by the Administrative Agent in accordance
with the terms hereof.

     (d) The Administrative Agent, MSAF and the other MSAF Group Members and
the Security Trustee acknowledge and agree that the terms of this Agreement
contemplate that the Administrative Agent shall receive the Relevant
Information in order for the Administrative Agent to make required credit and
debit entries and to make the calculations and supply the information and
reports required herein, and that the Administrative Agent will do the
foregoing to the extent such information is so provided by such relevant
parties and on the basis of such information, without undertaking any
independent verification or recalculation of such information.

                                      25

<PAGE>

                                   ARTICLE 4
                       ADMINISTRATIVE AGENT UNDERTAKINGS

     SECTION 4.01. Administrative Agent Undertakings. The Administrative Agent
hereby covenants with MSAF Group that it will conduct its business such that it
is a separate and readily identifiable business from, and independent of, each
MSAF Group Member and further covenants as follows (it being understood that
these covenants shall not prevent any Affiliate of the Administrative Agent
from publishing financial statements that are consolidated with those of the
MSAF Group, if to do so is required by Applicable Law or accounting principles
from time to time in effect, and that Affiliates of the Administrative Agent
and certain MSAF Group Members may file a consolidated tax return for United
States federal, state and local income tax purposes):

     (a) if the Administrative Agent receives any money whatsoever, which money
belongs to any MSAF Group Member, the Trustee or the Security Trustee or is to
be paid to any MSAF Group Member, the Trustee or the Security Trustee or into
any account pursuant to any Relevant Document or otherwise, it will hold such
money in trust for such MSAF Group Member, the Trustee or the Security Trustee,
as the case may be, and shall keep such money separate from all other money
belonging to the Administrative Agent and shall as promptly as practicable
thereafter pay the same into the relevant account in accordance with the terms
thereof without exercising any right of setoff;

     (b) it will comply with any proper directions, orders and instructions
which any MSAF Group Member or the Security Trustee may from time to time give
to it in accordance with the provisions of this Agreement and the Indenture;
provided, that to the extent any conflicts arise between instructions received
from a MSAF Group Member and the Security Trustee, the Administrative Agent
shall comply with such MSAF Group Member's instructions, unless such
instructions relate to the Bank Account Management and Calculation Services
described in Section 2.04 and then in such case the Administrative Agent shall
comply only with the instructions of the Security Trustee.

     (c) it will not knowingly fail to comply with any legal requirements in
the performance of the Administrative Services;

     (d) it will make all payments required to be made by it at any time and
from time to time pursuant to this Agreement on the required date for payment
thereof and shall turn over any amounts owed to the Security Trustee, MSAF or
the Trustee without set-off or counterclaim;

     (e) it will not take any steps for the purpose of procuring the
appointment of any administrative receiver or the making of an administrative
order or for instituting any bankruptcy, reorganization, arrangement,
insolvency, winding up,

                                      26

<PAGE>

liquidation, composition or any like proceedings under the laws of any
jurisdiction in respect of any MSAF Group Member or in respect of any of their
respective liabilities, including, without limitation, as a result of any claim
or interest of the Administrative Agent or any of its Affiliates;

     (f) it will cooperate with each MSAF Group Member and its respective
trustees, directors and agents and the Security Trustee and the Trustee,
including by providing such information as may reasonably be requested, to
permit MSAF Group or its authorized agents to monitor the Administrative
Agent's compliance with its obligations under this Agreement;

     (g) during the term of this Agreement, it will observe all corporate
formalities necessary to remain a legal entity separate and distinct from, and
independent of, each MSAF Group Member;

     (h) during the term of this Agreement, it will maintain its assets and
liabilities separate and distinct from each MSAF Group Member;

     (i) during the term of this Agreement, it will maintain records, books,
accounts and minutes separate from those of each MSAF Group Member;

     (j) during the term of this Agreement, it will pay its obligations in the
ordinary course of its business as a legal entity separate from each MSAF Group
Member;

     (k) during the term of this Agreement, it will keep its funds separate and
distinct from the funds of each MSAF Group Member, and it will receive,
deposit, withdraw and disburse such funds separately from the funds of each
MSAF Group Member;

     (l) during the term of this Agreement, it will conduct its business in its
own name, and not in the name of any MSAF Group Member;

     (m) during the term of this Agreement, it will not pay or become liable
for any debt of any MSAF Group Member, other than to make payments in the form
of indemnity as required by the express terms of this Agreement;

     (n) during the term of this Agreement, it will not hold out that it is a
division of any MSAF Group Member or that any MSAF Group Member is a division
of it;

     (o) during the term of this Agreement, it will not induce any third party
to rely on the creditworthiness of any MSAF Group Member in order that such
third party will be induced to contract with it;

                                      27

<PAGE>

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

     (q) during the term of this Agreement, it will (i) forward promptly to the
Servicer a copy of any material communication received from any Person in
relation to any Lease or Aircraft; (ii) grant such access to the Servicer to
its books of account, documents and other records and to its employees as may
be reasonably necessary for the Servicer to perform its obligations in respect
of any Lease or Aircraft under the Servicing Agreement; provided, however, that
the Servicer shall not have access to the minutes of the Administrative Agent's
board meetings and other confidential business information; and (iii) execute
and deliver such documents and do such acts and things as the Servicer may
reasonably request in order to effect the purposes of the Servicing Agreement.

                                   ARTICLE 5
                           UNDERTAKINGS OF MSAF GROUP

     SECTION 5.01. Cooperation. MSAF and the other MSAF Group Members shall use
commercially reasonable efforts to cause any Service Provider to, at all times
cooperate with the Administrative Agent to enable the Administrative Agent to
provide the Administrative Services, including providing the Administrative
Agent with all powers of attorney as may be reasonably necessary or appropriate
for the Administrative Agent to perform the Administrative Services in
accordance with this Agreement.

     SECTION 5.02. Information. MSAF will provide the Administrative Agent with
the following information in respect of itself and each other MSAF Group
Member:

     (a) copies of all Relevant Documents, including the articles of
incorporation, by-laws, trust agreements (or equivalent documents) of each MSAF
Group Member, and copies of all books and records maintained on behalf of each
such MSAF Group Member;

     (b) details of all bank accounts and bank mandates maintained by any MSAF
Group Member;

                                      28

<PAGE>

     (c) names of and contact information with respect to the controlling
trustees or board for each MSAF Group Member;

     (d) such other information as is necessary to the Administrative Agent's
performance of the Administrative Services; and

     (e) a copy of any information provided to MSAF Group pursuant to the
Servicing Agreement;

     provided, that such information as is referred to in this Section 5.02
(with the exception of paragraphs (d) and (e)) shall be provided to the
Administrative Agent upon execution of this Agreement and, in respect of any
amendment or changes to the information provided to the Administrative Agent
upon execution of this Agreement, promptly following the effectiveness of such
amendments or changes.

     SECTION 5.03. Scope of Services.

     (a) In the event that any MSAF Group Member shall enter into any
agreement, amendment or other modification of any Lease or shall take any other
action that has the effect of increasing in any material respect the scope,
nature or level of the Administrative Services to be provided under this
Agreement without the Administrative Agent's express prior written consent,
MSAF Group shall so notify the Administrative Agent and the Administrative
Agent shall not be obligated to perform the affected Administrative Service to
the extent of such increase unless and until the Administrative Agent and MSAF
Group shall agree on the terms of such increased Administrative Service (it
being understood that (i) the Administrative Agent shall have no liability to
any MSAF Group Member directly or indirectly arising out of, in connection with
or related to the Administrative Agent's failure to perform such increased
Administrative Service prior to any such agreement and (ii) MSAF Group shall
not be permitted to engage another Person to perform the affected
Administrative Service without the prior written consent of the Administrative
Agent unless the Administrative Agent has indicated it is unable or unwilling
to act in respect of the affected Administrative Service or the Administrative
Agent requires payment of more than reasonable additional compensation for such
additional Administrative Service).

     (b) In the event that MSAF Group shall acquire Additional Aircraft, MSAF
Group shall so notify the Administrative Agent and the Administrative Agent
shall be obligated to provide the Administrative Services with respect to such
Additional Aircraft in accordance with Section 2.07 hereof.

     SECTION 5.04. Ratification. MSAF and the other MSAF Group Members hereby
ratify and confirm and agree to ratify and confirm (and shall furnish written
evidence thereof upon request of the Administrative Agent) any act or omission
by

                                      29

<PAGE>

the Administrative Agent in accordance with this Agreement in the exercise of
any of the powers or authorities conferred upon the Administrative Agent under
the terms of this Agreement, it being expressly understood and agreed that none
of the foregoing shall have any obligation to ratify and confirm, and expressly
does not ratify and confirm, any act or omission of the Administrative Agent in
violation of this Agreement, the Standard of Performance or for which the
Administrative Agent is obligated to indemnify any MSAF Group Member under
Article III hereof.

     SECTION 5.05. Covenants. Each of MSAF and the other MSAF Group Members
covenants with the Administrative Agent that it will conduct its business such
that it is a separate and readily identifiable business from, and independent
of, the Administrative Agent and any of its Affiliates and further covenants as
follows:

     (a) during the term of this Agreement, it will observe all corporate
formalities necessary to remain legal entities separate and distinct from, and
independent of, the Administrative Agent, and any of its subsidiaries;

     (b) during the term of this Agreement, it will maintain its assets and
liabilities separate and distinct from those of the Administrative Agent;

     (c) during the term of this Agreement, it will maintain records, books,
accounts, and minutes separate from those of the Administrative Agent;

     (d) during the term of this Agreement, it will pay its obligations in the
ordinary course of business as a legal entity separate from the Administrative
Agent;

     (e) during the term of this Agreement, it will keep its funds separate and
distinct from any funds of the Administrative Agent, and will receive, deposit,
withdraw and disburse such funds separately from any funds of the
Administrative Agent;

     (f) during the term of this Agreement, it will conduct its business in its
own name, and not in the name of the Administrative Agent;

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

     (h) during the term of this Agreement, it will not hold out that it is a
division of the Administrative Agent, or that the Administrative Agent is a
division of it;

                                      30

<PAGE>

     (i) during the term of this Agreement, it will not induce any third party
to rely on the creditworthiness of the Administrative Agent in order that such
third party will be induced to contract with it;

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

     (k) during the term of this Agreement, it will observe all material
corporate or other procedures required under Applicable Law and under its
constitutive documents.

     SECTION 5.06. Ratification by Subsidiaries. MSAF hereby undertakes to
procure that, if so requested by the Administrative Agent, any subsidiary of
MSAF formed or acquired after the date hereof, shall execute an agreement with
the Administrative Agent adopting and confirming, as regards such subsidiary,
the terms of this Agreement, and agreeing to ratify anything done by the
Administrative Agent in connection herewith on the terms of Section 5.04.

                                   ARTICLE 6
                ADMINISTRATION FEES, EXPENSES AND SUBORDINATION

     SECTION 6.01. Administration Fees. (a) In consideration of the
Administrative Agent's performance of the Administrative Services, MSAF agrees
to pay to the Administrative Agent a monthly fee (an "Administrative Fee")
equal to 0.5% of the aggregate amount of the rent (as defined in each Lease,
but for the avoidance of doubt, not including any amounts reimbursable to
Lessees) actually paid by each Lessee for each Fee Period or portion of a Fee
Period in which the related Aircraft (and Additional Aircraft, if any) is owned
by MSAF Group; provided, that the aggregate of the fees actually received by
the Administrative Agent shall be at least $500,000 per annum.

     The Administrative Fee shall be payable monthly in arrears for each period
commencing on the most recent Calculation Date) and ending on but excluding the
first and each succeeding Calculation Date during the term of this Agreement
(each such period, a "Fee Period"), such payment to be made no later than the
Payment Date immediately following the end of each such Fee Period.

                                      31

<PAGE>

     SECTION 6.02. Expenses. (a) The Administrative Agent shall be responsible
for all telephone, facsimile and communications costs and expenses directly
relating to or associated with the Administrative Agent's performance of its
duties as set forth in this Agreement up to an annual amount of $125,000.

     (b) Subject to the provisions of Section 6.02(a), MSAF Group shall be
responsible for the following expenses incurred by the Administrative Agent in
the performance of its obligations ("Reimbursable Expenses"):

          (i) reasonable out of pocket expenses, including travel,
     accommodation and subsistence and approved expenditures in respect of
     insurance coverage for the Administrative Agent;

          (ii) annual telephone, fax and communication costs and expenses
     necessarily and directly incurred in connection with the performance of
     the Administrative Services in excess of $125,000;

          (iii) expenses expressly authorized by (i) the Controlling Trustees
     or (ii) any Person to whom such authority has been delegated, other than
     the Administrative Agent or its Affiliates; and

          (iv) expenses expressly authorized pursuant to other provisions of
     this Agreement.

     SECTION 6.03. Taxes. The fees specified in Section 6.01 are net of any
value added tax required to be accounted for by the Administrative Agent. Where
the Administrative Agent is required to account for value added tax in respect
of any amounts payable by or on behalf of MSAF Group to the Administrative
Agent, MSAF Group, shall cause to be paid to the Administrative Agent such
additional amounts as are necessary to discharge such value added tax upon
production of a valid value added tax invoice.

     SECTION 6.04. Payment of Expenses. No later than each Calculation Date,
the Administrative Agent shall deliver a notice to the MSAF Group, setting
forth the amounts of expenses paid by the Administrative Agent pursuant to
Section 6.02 of this Agreement through and including such Calculation Date (it
being understood that if there are no such expenses the Administrative Agent
will be under no obligation to provide such notice). On the next Payment Date
following such Calculation Date, MSAF Group agrees to pay to the Administrative
Agent all such amounts.

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<PAGE>

                                   ARTICLE 7
          TERM; REMOVAL OF OR TERMINATION BY THE ADMINISTRATIVE AGENT

     SECTION 7.01. Term. This Agreement shall expire on the date of payment in
full of all amounts outstanding to be paid on the MSAF Group Notes.

     SECTION 7.02. Right to Terminate. (a) At any time during the term of this
Agreement, MSAF Group shall be entitled to terminate this Agreement on 120 days
written notice.

     (b) Following the delivery of a Default Notice or during the continuance
of an Acceleration Default, the Security Trustee, on behalf of the Secured
Parties, shall be entitled to terminate on 5 days' written notice the authority
granted to the Administrative Agent to perform the Bank Account Management
Services set forth in Section 2.04 and in the Indenture.

     (c) At any time during the term of this Agreement the Administrative Agent
shall be entitled to terminate this Agreement on 120 days' written notice if:

          (i) any MSAF Group Member shall fail to pay in full when due (A) any
     Administrative Fee or any Reimbursable Expenses in an aggregate amount in
     excess of $50,000 and such failure continues for a period of 30 days, in
     either case, after the effectiveness of written notice from the
     Administrative Agent of such failure or (B) any other amount payable to
     the Administrative Agent hereunder, and such failure continues for a
     period of 60 days after written notice from the Administrative Agent of
     such failure.

          (ii) any MSAF Group Member shall fail to perform or observe or shall
     violate in any material respect any material term, covenant, condition or
     agreement to be performed or observed by it in respect of this Agreement
     and such failure continues for a period of 30 days after MSAF Group shall
     have received notice of such failure (other than with respect to payment
     obligations referred to in clause (b)(i) of this Section 7.02);

          (iii) an involuntary proceeding shall be commenced or an involuntary
     petition shall be filed in a court of competent jurisdiction seeking
     relief in respect of MSAF or any Guarantor, or of a substantial part of
     the property or assets of MSAF or any Guarantor, under Title 11 of the
     United States Code, as now constituted or hereafter amended (the "U.S.
     Bankruptcy Code"), or any other U.S. federal or state or foreign
     bankruptcy, insolvency, receivership or similar law, and such proceeding
     or petition shall continue undismissed for 120 days or an order or decree
     approving or ordering any of the foregoing shall be entered or MSAF or any
     Guarantor shall go into liquidation, suffer a receiver or mortgagee to
     take possession of all or substantially all of its assets or have an
     examiner

                                      33

<PAGE>

     appointed over it or if a petition or proceeding is presented for any of
     the foregoing and not discharged within 120 days; or

          (iv) MSAF or any Guarantor shall (A) voluntarily commence any
     proceeding or file any petition seeking relief under the U.S. Bankruptcy
     Code, or any other U.S. federal or state or foreign bankruptcy,
     insolvency, receivership or similar law, (B) consent to the institution
     of, or fail to contest the filing of, any petition described in clause
     (b)(iii) above, (C) file an answer admitting the material allegations of a
     petition filed against it in any such proceeding or (D) make a general
     assignment for the benefit of its creditors.

     (d) No termination of this Agreement by MSAF Group pursuant to Section
7.02(a) and no termination by the Administrative Agent pursuant to Section
7.02(c) shall become effective prior to the date of appointment by MSAF Group
of a successor Administrative Agent and the acceptance of such appointment by
such successor Administrative Agent; provided, however, that in the event that
a successor Administrative Agent shall not have been appointed within 90 days
after such termination, the Administrative Agent may petition any court of
competent jurisdiction for the appointment of a successor Administrative Agent.
Upon action by either party pursuant to the provisions of this Section 7.02(d),
the Administrative Agent shall be entitled to the payment of any compensation
owed to it hereunder and to the reimbursement of all Reimbursable Expenses
incurred in connection with all services rendered by it hereunder, as provided
in Section 8 hereof, and for so long as the Administrative Agent is continuing
to perform any of the Administrative Services for any MSAF Group Member, the
Administrative Agent shall be entitled to continue to be paid all amounts due
to it hereunder, net of any amounts that shall have been finally adjudicated by
a court of competent jurisdiction to be owed by the Administrative Agent to
MSAF Group or not to be due to the Administrative Agent, until a successor
Administrative Agent shall have been appointed and shall have accepted such
appointment in accordance with the provisions of Section 7.03(c).

     SECTION 7.03. Consequences of Termination. (a) Notices. (i) Following the
termination of this Agreement by MSAF Group or by the Administrative Agent
pursuant to Section 7.02, the Administrative Agent will promptly forward to
MSAF Group any notices received by it during the year immediately after
termination.

          (ii) MSAF Group will notify promptly any relevant third party,
     including each Rating Agency, the Trustee, and the Servicer, of the
     termination of this Agreement by MSAF Group or by the Administrative Agent
     and will request that any such notices and accounting reports and
     communications thereafter be made or given directly to the entity engaged
     to serve as Administrative Agent, and to MSAF Group.

                                      34

<PAGE>

     (b) Accrued Rights. A termination of this Agreement by MSAF Group or by
the Administrative Agent hereunder shall not affect the respective rights and
liabilities of any party accrued prior to such termination in respect of any
prior breaches hereof or otherwise.

     (c) Replacement. If this Agreement is terminated by MSAF Group or by the
Administrative Agent under Section 7.02, the Administrative Agent will
cooperate with any person appointed to perform the Administrative Services,
including providing such person with all information and documents reasonably
requested.

     SECTION 7.04. Survival. Notwithstanding any termination or the expiration
of this Agreement, the obligations of MSAF Group and the Administrative Agent
under Section 3.02 shall survive such termination or expiration, as the case
may be.

                                   ARTICLE 8
                           ASSIGNMENT AND DELEGATION

     SECTION 8.01. Assignment and Delegation. (a) Except as provided in
subsection (b) below, no party to this Agreement shall assign or delegate or
otherwise subcontract this Agreement or all or any part of its rights or
obligations hereunder to any Person without the prior written consent of the
other parties, such consent not to be unreasonably withheld.

     (b) The Administrative Agent may assign its right to receive compensation
for the performance of all or any part of the services set forth in Article 2,
including without limitation, the establishment and maintenance of the Ledgers
and the preparation of the Draft Accounts.

     (c) Without limiting the foregoing, any Person who shall become a
successor by assignment or otherwise of any party hereto shall be required as a
condition to the effectiveness of any such assignment or other arrangement to
become a party to this Agreement.

                                      35

<PAGE>

                                   ARTICLE 9
                                 MISCELLANEOUS

     SECTION 9.01. Notices. All notices, consents, directions, approvals,
instructions, requests and other communications required or permitted by such
agreement to be given to any Person shall be in writing, and any such notice
shall become effective ten days after being deposited in the mails, certified
or registered, return receipt requested, with appropriate postage prepaid for
first class mail, or if delivered by hand or courier service or in the form of
a facsimile, when received (and, in the case of a facsimile, receipt of such
facsimile is confirmed to the sender), and shall be directed to the address or
facsimile number of such Person set forth below:

     If to MSAF and the other MSAF Group Members, to:

         Morgan Stanley Aircraft Finance
         c/o Wilmington Trust Company
         Attention: Corporate Trust Administration
         1100 North Market Street
         Rodney Square North
         Wilmington, Delaware 19890
         Fax: (302) 651-8882

         With a copy to:

         Davis Polk & Wardwell
         99 Gresham Street
         London EC2V 7NG
         Attention: Mr. Keith Kearney
         Fax: + 44-171-418 1400

         and

         Morgan Stanley & Co. International Limited
         25 Cabot Square
         Canary Wharf
         London E14 4QA
         Attention: Mr. Scott Peterson
         Fax: + 44-171-415 4328

     If to the Administrative Agent, to it at:

         Cabot Aircraft Services Limited
         Attention: Mr. Kieran O'Keefe
         Regus House

                                      36

<PAGE>

         Harcourt Road
         Dublin 2
         Ireland
         Tel: +353 1 402 9478

If to the Security Trustee, to it at:

         Bankers Trust Company
         Attention: Corporate Trust and Agency Services Structured Finance
         Four Albany Street, 10th Floor
         New York, NY 10006
         Fax: +1 212 250 6439

     From time to time any party to such agreement may designate a new address
or number for purposes of notice thereunder by notice to each of the other
parties thereto.

     SECTION 9.02. Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of New York.

     SECTION 9.03. Jurisdiction. Except as otherwise expressly provided in this
Agreement, the parties hereto agree that any suit, action or proceeding seeking
to enforce any provision of, or based on any matter arising out of or in
connection with, this Agreement or the transactions contemplated hereby may be
brought in the United States District Court for the Southern District of New
York or any other New York State court sitting in New York City, and each of
the parties hereby consents to the jurisdiction of such courts (and of the
appropriate appellate courts therefrom) in any such suit, action or proceeding
and irrevocably waives, to the fullest extent permitted by law, any objection
which it may now or hereafter have to the laying of the venue of any such suit,
action or proceeding in any such court or that any such suit, action or
proceeding which is brought in any such court has been brought in an
inconvenient forum. Process in any such suit, action or proceeding may be
served on any party anywhere in the world, whether within or without the
jurisdiction of any such court. Without limiting the foregoing, each party
agrees that service of process on such party as provided in Section 9.01 shall
be deemed effective service of process on such party.

     SECTION 9.04. WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY
IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY.

     SECTION 9.05. Counterparts; Third Party Beneficiaries. This Agreement may
be signed in any number of counterparts, each of which shall be an original,

                                      37

<PAGE>

with the same effect as if the signatures thereto and hereto were upon the same
instrument. This Agreement shall become effective when each party hereto shall
have received a counterpart hereof signed by the other party hereto. No
provision of this Agreement is intended to confer upon any Person other than
the parties hereto any rights or remedies hereunder.

     SECTION 9.06. Entire Agreement. This Agreement constitutes the entire
agreement between the parties with respect to the subject matter of this
Agreement and supersedes all prior agreements and understandings, both oral and
written, between the parties with respect to the subject matter of this
Agreement.

     SECTION 9.07. Power of Attorney. Each of MSAF and the other MSAF Group
Members shall appoint the Administrative Agent and its successors, and its
permitted designees, as their true and lawful attorney-in-fact. All services to
be performed and actions to be taken by pursuant to this Agreement shall be
performed to and on behalf of each of MSAF and the other MSAF Group Members.
The Administrative Agent shall be entitled to seek and obtain from each of MSAF
and the other MSAF Group Members a power of attorney in respect of the
execution of any specific action as the Administrative Agent deems appropriate.

     SECTION 9.08. Table of Contents; Headings. The table of contents and
headings of the various articles, sections and other subdivisions of such
agreement are for convenience of reference only and shall not modify, define or
limit any of the terms or provisions of such agreement.

     SECTION 9.09. Restrictions on Disclosure. The Administrative Agent agrees
that it shall not, prior to the termination or expiration of this Agreement or
within the three years after such termination or expiration, disclose to any
Person any confidential or proprietary information, whether of a technical,
financial, commercial or other nature, received directly or indirectly from
MSAF Group regarding MSAF Group or its business or the Aircraft, except as
authorized in writing by MSAF Group or otherwise permitted by this Agreement,
and except:

     (a) to Representatives of the Administrative Agent and any of its
Affiliates in furtherance of the purposes of this Agreement, provided that any
such Representatives shall have agreed to be bound by the restrictions on
disclosure set forth in this Section 9.09;

     (b) to the extent (i) required by Applicable Law or by judicial or
administrative process or (ii) reasonably necessary in order to enable the
Administrative Agent to perform the Administrative Services, but in the case of
clause (i) above, in the event of proposed disclosure, the Administrative Agent
shall use reasonable efforts to protect information in which MSAF Group has an
interest to the maximum extent achievable; and

                                      39

<PAGE>

     (c) to the extent that the information:

          (i) was generally available in the public domain;

          (ii) was lawfully obtained from a source under no obligation of
     confidentiality, directly or indirectly, to MSAF Group;

          (iii) was disclosed to the general public with the approval of MSAF
     Group;

          (iv) was in the files, records or knowledge of the Administrative
     Agent or any Affiliates of the Administrative Agent prior to initial
     disclosure thereof to the Administrative Agent or any Affiliates of the
     Administrative Agent by MSAF Group;

          (v) was provided by a member of a governing body of any MSAF Group
     Member to the Administrative Agent or any Affiliates of the Administrative
     Agent without any express written (or, to the extent such information was
     provided in an oral communication, oral) restriction on use of or access
     to such information, and such information would not reasonably be expected
     to be confidential, proprietary or otherwise privileged; or

          (vi) was developed independently by the Administrative Agent or any
     Affiliates of the Administrative Agent; and

          (vii) to the extent the Administrative Agent reasonably deems
     necessary to protect and enforce its rights and remedies under this
     Agreement; provided, however, that in such an event the Administrative
     Agent shall act in a manner reasonably designed to prevent disclosure of
     such confidential information; and provided further, that prior to
     disclosure of such information the Administrative Agent shall inform MSAF
     Group of such disclosure.

     SECTION 9.10. No Partnership. (a) It is expressly recognized and
acknowledged that this Agreement is not intended to create a partnership, joint
venture or other similar arrangement between any MSAF Group Member or Members
on the one part and the Administrative Agent on the other part. It is also
expressly understood that any actions taken on behalf of any MSAF Group Member
by the Administrative Agent shall be taken as agent for such MSAF Group Member,
either naming the relevant MSAF Group Member, or naming the Administrative
Agent as agent for an undisclosed principal. No MSAF Group Member shall hold
itself out as a partner of the Administrative Agent, and the

                                      39

<PAGE>

Administrative Agent will not hold itself out as a partner of any MSAF Group
Member.

     (b) The Administrative Agent shall not have any fiduciary duty or other
implied obligations or duties to any MSAF Group Member, any Lessee or any other
Person arising out of this Agreement.

     SECTION 9.11. Concerning the Security Trustee. In respect of the Security
Trustee's performance of appointing the Administrative Agent to provide the
Bank Account Management Services set forth in Section 2.04 and in the
Indenture, the Security Trustee shall be afforded all of the rights,
protections, immunities and indemnities contained in the Security Trust
Agreement as if such rights, protections, immunities and indemnities were
specifically set forth herein.

                                      40
<PAGE>

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

                                   MORGAN STANLEY AIRCRAFT FINANCE

                                   By: /s/ Brian J. Gill
                                      ---------------------------------------
                                      Name:
                                      Title:

                                   ------------------------------------------
                                   SIGNED SEALED AND DELIVERED for and on
                                   behalf of CABOT AIRCRAFT SERVICES LIMITED,
                                   as Administrative Agent by /s/ Kieran O'Keefe
                                                             -------------------
                                   its duly authorized attorney in fact in the
                                   presence of: /s/ Jacqueline Kelly

                                   BANKERS TRUST COMPANY, not in its individual
                                   capacity but solely as Security Trustee

                                   By: /s/ Jenna Kaufman
                                      ---------------------------------------
                                      Name:  Jenna Kaufman
                                      Title: Vice President

                                   MSA I

                                   By: /s/ Brian J. Gill
                                      ---------------------------------------
                                      Name:
                                      Title:

                                   MSA II

                                   By: /s/ Brian J. Gill
                                      ---------------------------------------
                                      Name:
                                      Title:

                                      41

<PAGE>

                                    MSA III

                                    By: /s/ Brian J. Gill
                                       ---------------------------------------
                                       Name:
                                       Title:

                                    MSA IV

                                    By: /s/ Brian J. Gill
                                       ---------------------------------------
                                       Name:
                                       Title:

                                    MSA V

                                    By: /s/ Brian J. Gill
                                       ---------------------------------------
                                       Name:
                                       Title:

                                    MSA VI

                                    By: /s/ Brian J. Gill
                                       ---------------------------------------
                                       Name:
                                       Title:

                                    MSA VII

                                    By: /s/ Brian J. Gill
                                       ---------------------------------------
                                       Name:
                                       Title:

                                    REDFLY (UK) LIMITED

                                    By: /s/ Kieran O'Keefe
                                       ---------------------------------------
                                       Name:
                                       Title:

                                      42

<PAGE>

                                    ------------------------------------------
                                    SIGNED SEALED AND DELIVERED for and on
                                    behalf of GREENFLY (IRELAND) LIMITED, by
                                    /s/ Kieran O'Keefe its duly authorized
                                    ------------------
                                    attorney in fact in the presence of:
                                    /s/ Jacqueline Kelly

                                    AIRCRAFT SPC-5, INC.

                                    By: /s/ Kieran O'Keefe
                                       ---------------------------------------
                                       Name:
                                       Title:

                                      43

<PAGE>

                                                                     Appendix A

                                     MSA I
                                     MSA II
                                    MSA III
                                     MSA IV
                                     MSA V
                                     MSA VI
                                    MSA VII
                             Aircraft SPC-5, Inc.,
                           Greenfly (Ireland) Limited
                              Redfly (UK) Limited

                                      A-1

<PAGE>

                                                                     SCHEDULE 1

                                    ACCOUNTS

Bankers Trust Accounts                     Trustee Account Number
----------------------                     ----------------------

1.  Collection Account                     25254

2.  Rental Account                         00365296

3.  Expense Account                        25257

4.  Aircraft Purchase Account              25256

                                       1

<PAGE>

                                                                      EXHIBIT A

                     FORM OF CERTIFICATE REQUESTING DIRECT
                                 FUNDS TRANSFER
                                                                          [Date]

Bankers Trust Company, as
   trustee under the Indenture
Four Albany Street
New York, New York 10006
Attention: Corporate Trust and Agency Group
           Structured Finance Team

Re:  Administrative Agency Agreement:
     Request for Direct Funds Transfer

Sirs:

     The undersigned hereby requests that all amounts distributable to the
Expense payee named below pursuant to Section 2.04(d)(v) of the Amended and
Restated Administrative Agency Agreement dated as of March 15, 2000 (the
"Administrative Agency Agreement"; terms used herein but not otherwise defined
herein being used herein as therein defined), among Cabot Aircraft Services
Limited, as administrative agent, Morgan Stanley Aircraft Finance, Bankers
Trust Company, as security trustee and certain other entities named therein, be
transferred on each Payment Date to the following account:

     [Name of Expense payee]
     [Name of Bank]
     Account No:____________________
     [Location]
     Attention:_______________

     Please acknowledge your approval of the foregoing payment instructions by
executing a copy of this letter and returning it to __________ at
______________.

                                    CABOT AIRCRAFT SERVICES LIMITED

                                    By:
                                       ------------------------------------
                                       Name:
                                       Title:

                                      A-1

<PAGE>

Acknowledged and Approved:

BANKERS TRUST COMPANY, not in its individual
  capacity, but solely as trustee under the Indenture

By:
   --------------------------------
   Name:
   Title:

                                      A-2

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