Document:

Schedule to the Master Agreement, dated as of June 9, 2006

    

    (Multicurrency
      - Cross Border)

    ISDA ®

    International
      Swaps and Derivatives Association, Inc.

    

    SCHEDULE

    to
      the

    Master
      Agreement

    

    dated
      as
      of June 9, 2006

    

    between

     

    
      	
              Morgan
                Stanley Capital Services Inc.,

              a corporation
                organized under the laws of the State of Delaware

            	
              and

            	
              Wilmington
                Trust Company,
                

              a
                Delaware banking corporation, in its capacity as Subordination Agent
                on
                behalf of the Trustee under the Continental Airlines Pass Through
                Trust
                2006-1G

            
	
               

              (“Party A”)

            	 	
               

              (“Party
                B”)

            

    

    

    Part
      1

    Termination
      Provisions

     

    
      	
              (a)

            	
              Specified
                Entity. None.

            

    

     

    
      	
              (b)

            	
              Specified
                Transaction. Specified
                Transaction will have the meaning specified in Section
                14.

            

    

     

    
      	
              (c)

            	
              Events
                of Default.
                The “Events of Default” set forth in Section 5(a) will not apply to Party
                B but will apply to Party A (subject to clause (d)
                below).

            

    

     

    
      	
              (d)

            	
              Cross
                Default. The
                “Cross Default” provision of Section 5(a)(vi) will not apply.
                

            

    

     

    
      	
              (e)

            	
              Termination
                Events. The
                “Illegality” provisions of Section 5(b)(i), the “Tax Event” provisions of
                Section 5(b)(ii), the “Tax Event Upon Merger” provisions of Section
                5(b)(iii) and the “Credit Event Upon Merger” provisions of Section
                5(b)(iv) will apply to Party A but will not apply to Party B. Party
                A
                shall be the sole Affected Party (under Section 5(b)(i), (ii) and
                5(b)(iv)) and the sole Burdened Party (under Section 5(b)(iii)) with
                respect to a Termination Event.

            

    

     

    
      	
              (f)

            	
              Credit
                Event Upon Merger.
                The “Credit Event Upon Merger” provisions in Section 5(b)(iv) are hereby
                amended by: (I) deleting in the fourth line thereof the words “another
                entity” and replacing them with the words “or reorganizes, incorporates,
                reincorporates, reconstitutes, or reforms into or as, or receives
                all or
                substantially all of the assets and/or liabilities or obligations
                of,
                another entity or X, such Credit Support Provider, or such Specified
                Entity, as the case may be,”; (II) deleting in the fifth line thereof the
                words “the resulting, surviving or transferee” and replacing them with the
                words “X, such Credit Support Provider, or such Specified Entity, as the
                case may be, or any resulting, surviving, transferee, reorganized,
                reconstituted or reformed”; and 

            

    

     

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    (III)
      deleting in the seventh line thereof the words “its successor or transferee” and
      replacing them with the words “any resulting, surviving, transferee,
      reorganized, reconstituted or reformed entity”.

     

    

      
        	
                (g)

              	
                Automatic
                  Early Termination. The
                  “Automatic Early Termination” provision of Section 6(a) will not
                  apply.

              

      

       

      
        	
                (h)

              	
                Right
                  to Terminate Following Termination Event.
                  Sections 6(b)(ii)-(iv) are deleted in their entirety and replaced
                  by the
                  following:

              

      

       

      “(ii)
        Replacement
        on Termination Event.
        Upon the
        occurrence of a Termination Event with respect to Party A, Party A shall
        have
        the right within 20 days of the date of such Termination Event, at its own
        expense, to arrange for one or more Replacement Above-Cap Liquidity Providers
        to
        enter into and deliver to Party B a Replacement Above-Cap Liquidity Facility
        for
        such Above-Cap Liquidity Facility. If Party A does not arrange for such
        replacement and if the Above-Cap Liquidity Facility has not otherwise been
        replaced by Continental Airlines, Inc. (at the expense of Continental Airlines,
        Inc.) in accordance with the terms of Section 3.5(c)(iv) of the Intercreditor
        Agreement, such 20th
        day (or
        if such 20th
        day is
        not a Business Day, the next succeeding Business Day) shall be designated
        an
“Early Termination Date” and Party A shall make a termination payment to Party B
        in accordance with Part 1(j) of this Schedule. For the avoidance of doubt,
        Party
        B shall have no right to designate an Early Termination Date following the
        occurrence of any Termination Event.”

       

      
        	
                (i)

              	
                Calculations.
                  The
                  “Payment Date” provisions in Section 6(d)(ii) are deleted in their
                  entirety and replaced by the
                  following:

              

      

    

     

    “The
      Termination Amount calculated as being due in respect of any Early Termination
      Date under Section 6(e) will be payable on such Early Termination
      Date.”

     

    
      	
              (j)

            	
              Payments
                on Early Termination. Section
                6(e) is deleted in its entirety and replaced with the following:
                

            

    

     

    “Upon
      the
      designation or deemed designation of an Early Termination Date, including
      pursuant to clause 4(i) or (ii) of the Confirmation, with respect to the
      Transaction evidenced by the Confirmation, Party A shall make a termination
      payment to Party B on the Early Termination Date in an amount equal to the
      “Termination Amount” for the Early Termination Date for credit to the Above-Cap
      Collateral Account (as provided in Section 3.5(f) of the Intercreditor
      Agreement) to be applied as set forth in such Section 3.5(f) plus all Unpaid
      Amounts due and payable by Party A under the Confirmation on or prior to the
      Early Termination Date and upon such payments the Transaction evidenced by
      the
      Confirmation shall terminate.”

     

    “Termination
      Amount”
means,
      for any Early Termination Date, the amount obtained by solving the following
      formula for TA:

     

    TA
      =
 (20%
      per
      annum - CR) x N x F

     

    where

     

    CR
      =
 the
      Cap
      Rate designated in the Confirmation

     

    N
      =
 the
      Notional Amount for such date

    

    
      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

    

    

    F
      = 0.256

     

    
      	
              (k)

            	
              Termination
                Currency. “Termination
                Currency” means United States
                Dollars.

            

    

     

    
      	
              (l)

            	
              Additional
                Termination Event. Additional
                Termination Event will not apply.

            

    

     

    
      	
              (m)

            	
              Limitations
                on Conditions Precedent.
                Notwithstanding Section 2(a), the obligation of Party A to make each
                payment specified in the Confirmation shall not be subject to any
                conditions precedent other than as specified in such Confirmation,
                and,
                without limiting the foregoing, Party A agrees that it will make
                each such
                payment without offset, counterclaim or
                defense.

            

    

    
 

    Part
      2

    Tax
      Representations

    

    
      	
              (a)

            	
              Payer
                Tax Representations. For
                the purpose of Section 3(e), Party A and Party B each make the following
                representation:

            

    

     

    It
      is not
      required by any applicable law, as modified by the practice of any relevant
      governmental revenue authority, of any Relevant Jurisdiction to make any
      deduction or withholding for or on account of any Tax from any payment (other
      than interest under Section 2(e) or 6(e)) to be made by it to the other party
      under this Agreement. In making this representation, it may rely
      on:

     

    
      	 	
              (i)

            	
              the
                accuracy of any representation made by the other party pursuant to
                Section 3(f);

            

    

    

    
      	 	
              (ii)

            	
              the
                satisfaction of the agreement of the other party contained in Section
                4(a)(i) or 4(a)(iii) and the accuracy and effectiveness of any document
                provided by the other party pursuant to Section 4(a)(i) or 4(a)(iii);
                and

            

    

     

    
      	 	
              (iii)

            	
              the
                satisfaction of the agreement of the other party contained in Section
                4(d);

            

    

     

    provided
      that it shall not be a breach of this representation where reliance is placed
      on
      clause (ii), and the other party does not deliver a form or document under
      Section 4(a)(iii) by reason of material prejudice to its legal or commercial
      position.

     

    
      	(b)	 	
              Payee
                Tax Representations. For
                the purpose of Section 3(f),

            

    

     

    
      	 	
              (i)

            	
              Party
                A represents that it is a corporation organized under the laws of
                the
                State of Delaware.

            

    

     

    
      
        	 	
                (ii)

              	
                
                  Party
                    B represents that it is a Delaware banking
                    corporation.

                

              

      

       

    

    

    Part
      3

    Agreement
      to Deliver Documents

    

    For
      the
      purpose of Section 4(a)(ii) of this Agreement, each party agrees to deliver
      the
      following documents, as applicable:

    

    
      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

    

     

    
      
        	
                 

                Party
                  required to

                deliver
                  documents

              	 	
                 

                Form/Document/

                Certificate

              	 	
                 

                Date
                  by which to be

                delivered

              	 	
                Covered
                  by

                Section
                  3(d)

                Representation

              
	
                 

                Party
                  A and Party B

                 

              	 	
                 

                Evidence
                  reasonably satisfactory to the other party as to the names, true
                  signatures and authority of the officer or officials signing this
                  Agreement or the Confirmation on its behalf

              	 	
                 

                Upon
                  execution of this Agreement and the related Confirmation

              	 	
                 

                Yes

              
	
                 

                Party
                  A

              	 	
                 

                Opinions
                  of counsel to Party A and its Credit Support Provider reasonably
                  satisfactory in form and substance to Party B with respect to this
                  Agreement and the Credit Support Document specified in Part
                  4(e)

              	 	
                 

                Upon
                  execution of this Agreement

              	 	
                 

                No

              
	
                 

                Party
                  B

              	 	
                 

                Certified
                  copies of all documents evidencing the necessary corporate authorizations
                  and approvals with respect to the execution, delivery, and performance
                  of
                  derivatives transactions

              	 	
                 

                Upon
                  execution of this Agreement

              	 	
                 

                Yes

              
	
                 

                Party
                  A

              	 	
                 

                Correct,
                  complete and executed U.S. Internal Revenue Form W-9 or any successor
                  thereto

              	 	
                 

                Upon
                  execution of this Agreement, upon the appointment of a successor
                  Subordination Agent, and at any time upon reasonable request by
                  Party
                  B

              	 	
                 

                Not
                  applicable

              
	
                 

                Party
                  B

              	 	
                 

                Correct,
                  complete and executed U.S. Internal Revenue Form W-9 or any successor
                  thereto

              	 	
                 

                Upon
                  execution of this Agreement, upon the appointment of a successor
                  Subordination Agent, and at any time upon reasonable request by
                  Party
                  A

              	 	
                 

                Not
                  applicable

              
	
                 

                Party
                  A

              	 	
                 

                Credit
                  Support Document specified in Part 4(e)

              	 	
                 

                Upon
                  execution of this Agreement

              	 	
                 

                Yes

              
	 	 	 	 	 	 	 

      

    

     

    

    Part
      4

    Miscellaneous

    

    
      	(a)	 	
              Addresses
                for Notices.
                For the purpose of Section 12(a):

            

    

     

    
      	 	
              (i)

            	
              Address
                for notices or communications to Party A (including all notices pursuant
                to

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

       

      Sections
        5, 6 and 7 as well as any changes to Party B’s address, telephone number or
        facsimile number):

    

     

    
      
        	
                Address:

              	
                Morgan
                  Stanley Capital Services Inc.

              
	 	
                Transaction
                  Management Group

              
	 	
                1585
                  Broadway

              
	 	
                New
                  York, NY 10036-8293

              
	
                Attention:

              	
                Chief
                  Legal Officer

              
	
                Facsimile:

              	
                212-507-4622

              

      

    

    

    
      	
            	(ii)	
              Address
                for notices or communications to Party
                B:

            

    

     

    
      
        	
                Address:

              	
                Wilmington
                  Trust Company

              
	 	
                Rodney
                  Square North

              
	 	
                1100
                  North Market Street

              
	 	
                Wilmington,
                  Delaware 19890-0001

              
	
                Attention:

              	
                Corporate
                  Trust Administration

              
	
                Telephone:

              	
                302-651-1000

              
	
                Facsimile:

              	
                302-636-4140

              

      

    

    

    
      	(b)	 	
              Offices.
                The
                provisions of Section 10(a) will apply to this
                Agreement.

            

    

     

    
      	(c)	 	
              Multibranch
                Party. For
                the purpose of Section 10(c):

            

    

     

    Party
      A
      is not a Multibranch Party.

    Party
      B
      is not a Multibranch Party.

     

    
      	
              (d)

            	
              Calculation
                Agent.
                The Calculation Agent is Party A, provided that if Party B disagrees
                with
                respect to any calculation or determination, Party A and Party B
                each will
                appoint an independent Reference Market-maker, and such two Reference
                Market-makers jointly will appoint a third Reference Market-maker.
                Such
                three Reference Market-makers jointly will make such calculation
                or
                determination (acting as experts and not as arbitrators), whose
                calculation or determination will be binding and conclusive absent
                manifest error. In addition, if an Event of Default with respect
                to Party
                A has occurred and is continuing, Party B may appoint one of the
                following
                five entities as Calculation Agent: JP Morgan Chase, UBS AG, Bank
                of
                America, N.A., Deutsche Bank AG or Citibank,
                N.A.

            

    

     

    
      	
              (e)

            	
              Credit
                Support Documents.
                Party A shall deliver an unconditional and irrevocable guarantee
                dated as
                of June 9, 2006 from Morgan Stanley with respect to Party A’s obligations
                under this Transaction for the benefit of Party B and such guarantee
                shall
                be a Credit Support Document with respect to Party
                A.

            

    

     

    With
      respect to Party B: None.

     

    
      	
              (f)

            	
              Credit
                Support Provider.

            

    

     

    Credit
      Support Provider means in relation to Party A: Morgan Stanley.

     

    Credit
      Support Provider means in relation to Party B: None.

     

    
      	
              (g)

            	
              Governing
                Law.
                This Agreement and the Confirmation will be governed by and construed
                in
                

            

    

     

    
      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

    

    

    accordance
      with the laws of the State of New York.

     

    
      	
              (h)

            	
              Jurisdiction.
                Section
                13(b) is hereby amended by: (i) deleting in the second line of
                subparagraph (i) thereof the word “non-”; and (ii) deleting the final
                paragraph thereof.

            

    

     

    
      	
              (i)

            	
              Netting
                of Payments. The
                Netting provision set forth in Section 2(c) will not apply to any
                Transaction.

            

    

     

    
      	
              (j)

            	
              Affiliate.
                Affiliate
                will have the meaning specified in Section 14, provided
                that the definition of Affiliate in relation to Party A does not
                include
                Morgan Stanley Derivative Products,
                Inc.

            

    

     

    
      	
              (k)

            	
              Covered
                Transaction.
                The
                Transaction evidenced by the Confirmation dated the date of this
                Agreement
                (Reference Number: SQB38) will constitute the only Transaction and
                Confirmation supplementing, forming part of, and subject to, this
                Agreement.

            

    

     

    

    Part
      5

    Other
      Provisions

     

    
      	
              (a)

            	
              Definitions.
                This Agreement and the Transaction between the parties are subject
                to the
                2000 ISDA Definitions and Annex to the 2000 ISDA Definitions (June
                2000
                Version) as published by the International Swaps and Derivatives
                Association, Inc. (collectively, the “Definitions”), and will be governed
                in all relevant respects by the provisions set forth in the Definitions,
                without regard to any amendment to the Definitions subsequent to
                the date
                hereof. The provisions of the Definitions are incorporated by reference
                in
                and shall be deemed a part of this Agreement, except that references
                in
                the Definitions to a “Swap Transaction” shall be deemed references to a
                “Transaction” for purposes of this Agreement. In the event of any
                inconsistency between the provisions of this Agreement and the
                Definitions, this Agreement will prevail. “Intercreditor Agreement” as
                used in this Agreement shall mean the Intercreditor Agreement dated
                as of
                June 9, 2006 among Wilmington Trust Company, as Trustee under the
                Continental Airlines Pass Through Trust 2006-1G and Continental Airlines
                Pass Through Trust 2006-1B, Morgan Stanley Bank, as Primary Liquidity
                Provider, Morgan Stanley Capital Services Inc., as Above-Cap Liquidity
                Provider, Financial Guaranty Insurance Company, as Policy Provider,
                and
                Wilmington Trust Company, as Subordination Agent, attached hereto
                as
                Exhibit A. Capitalized terms used and not defined herein, in the
                Confirmation, or in the Definitions shall have the meanings set forth
                in
                the Intercreditor Agreement, as amended or modified from time to
                time in
                accordance with the terms thereof.

            

    

     

    
      	
              (b)

            	
              Relationship
                Between Parties. Each
                party will be deemed to represent to the other party on the date
                on which
                it enters into the Transaction that (absent a written agreement between
                the parties that expressly imposes affirmative obligations to the
                contrary
                for that Transaction):

            

    

     

    

      (i) Non-Reliance.
        It
        is
        acting for its own account, and it has made its own independent decisions
        to
        enter into the Transaction and as to whether the Transaction is appropriate
        or
        proper for it based upon its own judgment and upon advice from such advisers
        as
        it has deemed necessary.  It is not relying on any communication (written
        or oral) of the other party as investment advice or as a recommendation to
        enter
        into the Transaction; it being understood that information and explanations
        related to the terms and conditions of the Transaction shall not be considered
        investment advice or a recommendation to enter into the Transaction.  No
        communication (written or oral) received from the other party shall be deemed
        to
        be an assurance or guarantee as to the expected results of the
        Transaction.

       

    

     

    
      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

    

     

    
      (ii) Assessment
        and Understanding.  It is capable of assessing the merits of and
        understanding (on its own behalf or through independent professional advice),
        and understands and accepts, the terms, conditions and risks of the
        Transaction.  It is also capable of assuming, and assumes, the risks of the
        Transaction.

       

      (iii) Status
        of
        Parties.  The other party is not acting as a fiduciary for or an adviser to
        it in respect of the Transaction.

       

    

    
      	
              (c)

            	
              WAIVER
                OF JURY TRIAL.
                EACH PARTY HEREBY WAIVES ITS RESPECTIVE RIGHT TO JURY TRIAL WITH
                RESPECT
                TO ANY LITIGATION ARISING UNDER, OR IN CONNECTION WITH, THIS AGREEMENT
                OR
                THE TRANSACTION.

            

    

     

    
      	
              (d)

            	
              Non-petition.
                Party A agrees that it will not, prior to the date that is one year
                and
                one day following the final payment of the Certificates, acquiesce,
                petition or otherwise invoke or cause, or join in invoking or causing,
                Party B or any other person or entity to invoke the process of any
                governmental authority for the purpose of commencing or sustaining
                a case
                (whether voluntary or involuntary) against Party B under any bankruptcy,
                insolvency or similar law or appointing a receiver, liquidator, assignee,
                trustee, custodian, sequestrator or other similar official of Party B
                or any substantial part of its property or ordering the winding-up
                or
                liquidation of the affairs of Party B, provided,
                however,
                that nothing herein shall restrict or prohibit Party A from joining
                in any
                existing bankruptcy, reorganization, arrangement, insolvency, moratorium
                or liquidation proceedings or other analogous proceedings under applicable
                laws.

            

    

     

    
      	
              (e)

            	
              Waiver
                of Right of Set-off.
                Notwithstanding any provision of this Agreement, the Confirmation
                or any
                other existing or future agreement between the parties hereto, each
                party
                irrevocably waives any and all rights it may have to set-off, net,
                recoup
                or otherwise withhold or suspend or condition payment or performance
                of
                any obligation between the two parties hereunder against any obligations
                between the two parties, whether arising under any agreement, applicable
                law or otherwise.

            

    

     

    
      	(f)	 	
              Amendments.
                This Agreement is hereby further amended as
                follows:

            

    

     

    
      	 	
              (1)

            	
              Section
                2(b) is hereby amended by the insertion of the following at the end
                thereof after the word “change”: “provided that if such new account shall
                not be in the same jurisdiction having the same power to tax as the
                original account, the party not changing its account shall not be
                obliged
                to pay any greater amounts and shall not receive less as a result
                of such
                change than would have been the case if such change had not taken
                place”.

            

    

     

    
      	 	
              (2)

            	
              Section
                2(d) is amended by adding thereto a new final sentence reading as
                follows:
                “Anything in this Section 2(d) to the contrary notwithstanding, Party
                B
                shall not be obligated to make any payment under this Section 2(d)
                to
                Party A.”

            

    

     

    
      	 	
              (3)

            	
              Section
                7 is amended by adding a new penultimate sentence to Section 7 as
                follows:
                “Any purported transfer under this Section 7 shall require Ratings
                Confirmation, including, for the avoidance of doubt, any transfer
                pursuant
                to Section 6(b)(ii)”.

            

    

     

    
      	 	
              (4)

            	
              Section
                9(b) is amended by adding thereto a new sentence reading as follows:
“In
                addition, no amendment, modification or waiver in respect of this
                Agreement will be effective unless Ratings Confirmation is
                received”.

            

    

     

    
      	
              (g)

            	
              Limitation
                of Liability.
                The obligations of Party B under this Agreement, and in respect of
                the
                

            

    

     

    
      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

    

    

    Transaction
      evidenced by the Confirmation, are expressly limited to the extent of funds,
      if
      any, made available for such payment to Party B under, and in accordance with,
      the priorities of payments set forth in Sections 3.2 and 3.5 of the
      Intercreditor Agreement. No recourse under any obligation, covenant or agreement
      of Party B contained in this Agreement or the Confirmation shall be had against
      any incorporator, stockholder, agent, affiliate, officer, employee or trustee
      of
      Party B, as such, by the enforcement of any assessment or by any legal or
      equitable proceeding, by virtue of any statute or otherwise; it being expressly
      agreed and understood that the agreements of Party B contained in this Agreement
      or the Confirmation are solely trust obligations of Party B and that no personal
      liability whatsoever shall attach to or be incurred by the incorporators,
      stockholders, agents, affiliates, officers, employees or trustees of Party
      B, as
      such, or any of them, under or by reason of any of the obligations, covenants
      or
      agreements of Party B contained in this Agreement or the Confirmation and that
      any and all personal liability of every such incorporator, stockholder, agent,
      affiliate, officer, employee or trustee of Party B for breaches by Party B
      of
      any such obligation, covenant or agreement, which liability may arise either
      at
      common law or at equity, by statute or constitution, or otherwise, is hereby
      expressly waived as a condition of and in consideration for the execution of
      this Agreement; provided,
      however,
      that
      nothing in this paragraph shall relieve any of the foregoing persons from any
      liability which any such person may otherwise have for his/her or its gross
      negligence or willful misconduct or,
      with
      respect to the handling or transfer of funds, ordinary negligence.

     

    
      
        	(h)	 	
                Eligible
                  Contract Participant.
                  Each party represents to the other that it
                  is an “eligible contract participant” as defined in Section 1a(12) of the
                  Commodity Exchange Act of 1922 (7 U.S. Code §1 et
                  seq.),
                  as amended (“CEA”). This Agreement and the Transaction hereunder are
                  subject to individual negotiation by the parties. Neither this
                  Agreement
                  nor the Transaction hereunder has been executed or traded on a
“trading
                  facility” as defined in Section 1a(33) of the
                  CEA.

              

      

    

     

    
      
        	(i)	 	
                Accuracy
                  of Specified Information. Section
                  3(d) is hereby amended by adding in the third line thereof after
                  the word
                  “respect” and before the period the words “or, in the case of audited or
                  unaudited financial statements or balance sheets, a fair representation
                  of
                  the financial condition of the relevant
                  person”.

              

      

    

     

    [Signatures
      follow on separate pages]

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF the parties have executed this Schedule to the ISDA Master
      Agreement on the respective dates specified below with effect from the date
      specified on the first page of this document.

     

     

    
      
        	 	
                
                  MORGAN
                    STANLEY CAPITAL SERVICES INC.

                

              	 
	 	 	 	 
	 	 	 	 
	 	
                By:

              	 	 
	 	
                Name:

              	 	 
	 	
                Title:

              	 	 

      

    

     

     

     

    

    
      
        
          
             

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
            

             

          

        

      

    

    
       

       

      
        
          	 	
                  
                    
                      WILMINGTON
                        TRUST COMPANY

                      
                        in
                          its capacity as Subordination Agent on behalf of the Trustee
                          under the
                          Continental Airlines Pass Through Trust
                          2006-1G.

                      

                    

                  

                	 
	 	 	 	 
	 	 	 	 
	 	
                  By:

                	 	 
	 	
                  Name:

                	 	 
	 	
                  Title:

                	 	 

        

      

    

    

     

     

    
 

    
      
        
          
             

          

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    Exhibit
      A

     

    Intercreditor
      AgreementAbove-Cap Liquidity Facility Confirmation, dated as of June 9, 2006

     

    

     

    
      	
              Date:

               

            	
              June
                9, 2006

               

            
	
              To:

               

            	
              Wilmington
                Trust Company

               

            
	
              From:

               

            	
              Morgan
                Stanley Capital Services Inc.

               

            
	
              Subject:

               

            	
              ABOVE
                CAP LIQUIDITY FACILITY CONFIRMATION

               

            

    

    

     

    Reference
      Number: SQB38

     

     

    Ladies
      and Gentlemen:

     

    The
      purpose of this letter agreement (this “Confirmation”)
      is to
      confirm the terms and conditions of the Interest Rate Cap Transaction entered
      into on the Trade Date referred to in Paragraph 2 below (the “Transaction”)
      between Morgan Stanley Capital Services Inc. (“Party
      A”)
      and
      Wilmington Trust Company in its capacity as Subordination Agent on behalf of
      the
      Trustee under the Continental Airlines Pass Through Trust 2006-1G (“Party B”).
      This
      letter agreement constitutes a “Confirmation” as referred to in the ISDA Master
      Agreement specified below.

     

    
      	
              1.

            	
              The
                definitions and provisions contained in the 2000 ISDA Definitions
                and
                Annex to the 2000 ISDA Definitions (June 2000 Version) as published
                by the
                International Swaps and Derivatives Association, Inc. (as so supplemented,
                the “Definitions”)
                are incorporated into this Confirmation. In the event of any inconsistency
                between the Definitions and this Confirmation, this Confirmation
                will
                govern. References herein to a “Transaction” shall be deemed to be
                references to a “Swap Transaction” for the purposes of the
                Definitions.

            

    

     

    This
      Confirmation supplements, forms a part of, and is subject to the 1992 ISDA
      Master Agreement (Multicurrency - Cross Border) including the Schedule thereto,
      dated as of June 9, 2006 as amended and supplemented from time to time
      (collectively, the “Agreement”),
      between us. All provisions contained in the Agreement govern this Confirmation
      except as modified below. In the event of any inconsistency between the
      Agreement and this Confirmation, this Confirmation will govern. Capitalized
      terms not otherwise defined in the Agreement or this Confirmation shall have
      the
      meanings ascribed to them in the Intercreditor Agreement dated as of June 9,
      2006 among Wilmington Trust Company, as Trustee under the Continental Airlines
      Pass Through Trust 2006-1G and Continental Airlines Pass Through Trust 2006-1B,
      Morgan Stanley Bank, as Primary Liquidity Provider, Morgan Stanley Capital
      Services Inc., as Above-Cap Liquidity Provider, Financial Guaranty Insurance
      Company, as Policy Provider, and Wilmington Trust Company, as Subordination
      Agent (the “Intercreditor
      Agreement”).
      The
      Agreement and the Confirmation will be governed by and construed in accordance
      with the laws of the State of New York.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Each
      of
      Party A and Party B represents to the other that it has entered into this
      Transaction in reliance upon such independent accounting, regulatory, legal,
      tax
      and financial advice as it deems necessary and not upon any view expressed
      by
      the other.

     

    
      	
              2.

            	
              Party
                A and Party B by this Confirmation are entering into a Transaction
                (the
                “Above-Cap
                Liquidity Facility”)
                that provides an irrevocable interest rate cap. The terms of the
                Above-Cap
                Liquidity Facility are as follows:

            

    

     

    
      	
              General
                Terms:

               

            	 
	 	
              Transaction
                Type:

               

            	
              Interest
                Rate Cap Transaction

               

            
	 	
              Notional
                Amount:

               

            	
              The
                Pool Balance for the Class G Certificates from time to time. The
                Notional
                Amount as of any Floating Rate Payer Payment Date shall be determined
                before giving effect to any distributions on such Class G Certificates
                on
                such Floating Rate Payer Payment Date.

               

            
	 	
              Trade
                Date:

               

            	
              May
                24, 2006

               

            
	 	
              Effective
                Date:

               

            	
              June
                9, 2006

               

            
	 	
              Termination
                Date:

               

            	
              The
                first Business Day following the earlier of (i) June 2, 2015 and
                (ii) the
                date on which payment in full of Final Distributions with respect
                to the
                Class G Certificates has been made.

               

            
	 	
              Currency
                Unit:

               

            	
              USD

               

            
	 	
              Business
                Day/Local Business Day:

               

            	
              “Business
                Day” as defined in the Intercreditor Agreement for all purposes under
                the
                Agreement.

               

            
	 	
              Business
                Day Convention:

               

            	
              Following

               

            
	
              Fixed
                Amounts:

               

            	 
	 	
              Fixed
                Amount Payer:

               

            	
              Party
                B

               

            
	 	
              Fixed
                Amount Payer Payment Date:

               

            	
              Effective
                Date 

               

            
	 	
              Fixed
                Amount:

               

            	
              As
                set forth in a separate letter agreement between Party A and Party
                B.

               

            
	
              Floating
                Amounts:

               

            	 
	 	
              Floating
                Rate Payer:

               

            	
              Party
                A

               

            
	 	
              Floating
                Amount:

               

            	
              On
                each Floating Rate Payer Payment Date on which (i) the Floating Rate
                Option exceeds the Cap Rate and (ii) a Drawing Event (as defined
                below)
                has occurred, the Floating Amount shall be calculated as
                follows:

               

            

    

    

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    

    
      	 	 	
              In
                the event that either (a) the Available Amount under the Primary
                Liquidity
                Facility (before giving effect to any Interest Drawing to be made
                on such
                Payment Date) is greater than zero or (b) the amount on deposit in
                the
                Primary Cash Collateral Account (before giving effect to any withdrawals
                to be made from such account on such Payment Date) is greater than
                zero,
                the Floating Amount shall equal the Above-Cap Payment for such
                date.

               

              In
                the event that both statements in clauses (a) and (b) above are not
                true,
                then the Floating Amount shall equal zero.

               

            
	 	
              Period
                End Dates:

               

            	
              Each
                March 2, June 2, September 2 and December 2, commencing on September
                2,
                2006 and ending on the Termination Date, subject to adjustment in
                accordance with the Following Business Day Convention.

               

            
	 	
              Floating
                Rate Payer Payment Dates:

               

            	
              Each
                day that is a Period End Date and any Special Distribution Date not
                coinciding with a Period End Date on which a distribution of interest
                is,
                by the terms of the Intercreditor Agreement, to be made on the Class
                G
                Certificates.

               

            
	 	
              Floating
                Rate Option:

               

            	
              USD-LIBOR-BBA;
                provided
                that, if the relevant rate does not appear on the Telerate Page 3750,
                the
                rate shall be “LIBOR” as defined in the Intercreditor Agreement; and
                provided
                further
                that the Floating Rate Option shall be deemed to equal the Cap Rate
                during
                such period as the Stated Interest Rate applicable to the Class G
                Certificates is subject to the Capped Interest Rate pursuant to the
                proviso in the definition of “Stated Interest Rate” in the Intercreditor
                Agreement.

               

            
	 	
              Cap
                Rate:

               

            	
              10%

               

            
	 	
              Designated
                Maturity:

               

            	
              3-Month

               

            
	 	
              Spread:

               

            	
              None

               

            
	 	
              Floating
                Rate Day Count Fraction:

               

            	
              Actual/360

               

            
	 	
              Reset
                Dates:

               

            	
              The
                first day of the relevant Calculation Period.

               

            
	 	
              Compounding:

               

            	
              Inapplicable

               

            
	 	
              Notice:

               

            	
              Party
                B shall, on or before 12:00 p.m. (New York time) on each Floating
                Rate
                Payer Payment Date, provide Party A with notice of the then-current
                Pool
                Balance of the Class G Certificates and the Floating Amount payable,
                if
                any, together with, if such Floating Amount is payable, the certification
                referred to in the final sentence of Section 3.5(a) of
                the Intercreditor Agreement.

               

            
	 	 	 

    

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

    
      	
              3.

            	
              Role
                of Party A; Role of Calculation
                Agent

            

    

     

    
      	 	
              (i)

            	
              Party
                B acknowledges that: (a) in connection with this Transaction and
                this
                Agreement, Party A has acted in the capacity of an arm’s-length
                contractual counterparty and not as its financial advisor or fiduciary;
                and (b) in exercising its rights or performing any of its duties
                under
                this Agreement, Party A will act as principal and not as a fiduciary
                of
                Party B.

            

    

     

    
      	 	
              (ii)

            	
              Whenever
                the Calculation Agent is required to act or exercise judgment in
                any way,
                it will do so in good faith and in a commercially reasonable manner.
                The
                calculations and determinations of the Calculation Agent shall be
                made in
                accordance with terms of this Confirmation having regard in each
                case to
                the criteria stipulated herein. 

            

    

     

    
      	
              4.

            	
              Credit
                Downgrade/Replacement of Above-Cap Liquidity
                Provider

            

    

     

    In
      the
      event the relevant credit rating of Morgan Stanley or any successor or permitted
      assignee as Liquidity Guarantor issued by any Rating Agency at any time is
      lower
      than the applicable Threshold Rating (“Credit
      Downgrade”)
      or an
      Event of Default specified in Section 5(a)(iii)(2) or 5(a)(iii)(3) of the
      Agreement (“Credit
      Support Event”)
      occurs, Party A may, within ten days, at its own expense, arrange for one or
      more Replacement Above-Cap Liquidity Providers to enter into and deliver to
      Party B a Replacement Above-Cap Liquidity Facility for the Above-Cap Liquidity
      Facility. If Party A does not arrange for such replacement and if this
      Above-Cap Liquidity Facility has not otherwise been replaced by Continental
      Airlines, Inc. (at the expense of Continental Airlines, Inc.) in accordance
      with
      the terms of Section 3.5(c)(iv) of the Intercreditor Agreement, then (i) in
      the
      case of a Credit Support Event, such 10th
      day (or
      if such 10th
      day is
      not a Business Day, the next succeeding Business Day) shall be designated an
      “Early Termination Date” and Part 1(j) of the Schedule to the Agreement will
      apply to Party A and (ii) in the case of a Credit Downgrade, Part 1(j) of the
      Schedule to the Agreement will apply to Party A as if such 10th
      day (or
      if such 10th
      day is
      not a Business Day, the next succeeding Business Day) were designated an “Early
      Termination Date”.

     

    
      	
              5.

            	
              Additional
                Definitions

            

    

     

    “Drawing
      Event”
shall
      mean an event on any Distribution Date where Party B, after giving effect to
      the
      subordination provisions of the Intercreditor Agreement and any Election
      Interest Payments made by the Policy Provider (but without regard to drawings
      under the Primary Liquidity Facility or withdrawals from the Primary Cash
      Collateral Account or Above-Cap Account or under the Policy (other than Election
      Interest Payments)), shall not have sufficient funds for the payment of any
      amounts due and owing in respect of accrued interest on the Class G
      Certificates.

     

    “Threshold
      Rating”
shall
      mean, for purposes of this Agreement, the short-term unsecured debt rating
      of
      P-1 by Moody’s and short-term issuer credit rating of A-1 by Standard &
Poor’s.

     

    
      	
              6.

            	
              Payments

            

    

     

    Party
      A
      hereby irrevocably instructs Party B to make any payment due to Party A directly
      to the account specified below in the name of Party A. Party B hereby
      irrevocably instructs Party A to make any payments of Floating Amounts and
      any
      Termination Amount due to Party B directly to the account specified below in
      the
      name of Party B. All payments by Party A of Floating Amounts and any

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    Termination
      Amount due to Party B shall be made prior to 5:00 p.m. (New York City time)
      on
      the date such payment is due without setoff, deduction, withholding, netting,
      or
      any other reduction.

     

    
      	
              7.

            	
              Account
                Details

            

    

     

    
      	
              Payments
                to Party A:

            	
              Citibank,
                New York (CITIUS33)

            
	 	
              ABA#:
                021000089

            
	 	
              Account#:
                40724601

            
	 	
              Reference:
                Morgan Stanley Capital Services Inc.
                (MSCUS33)

            

    

    

    
      	
              Payments
                to Party B:

            	
              Wilmington
                Trust Company 

            
	 	
              ABA#:
                031100092

            
	 	
              Account#:
                076970-000

            
	 	
              Reference:
                Continental Spare Parts-06

            

    

    

    
      	
              8.

            	
              Offices

            

    

     

    The
      Office of Party A for the Transaction is its office at the address specified
      for
      notices to it in the Schedule to the Agreement. The Office of Party B for the
      Transaction is its office at the address specified for notices to it in the
      Schedule to the Agreement.

     

    
      	
              9.

            	
              Counterparts

            

    

     

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

     

    

     

    [Signatures
      follow on separate pages]

     

     

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

     

    Please
      confirm that the foregoing correctly sets forth the terms of our agreement
      by
      executing the copy of this Confirmation enclosed for that purpose and returning
      it to us.

     

    
      
        	 	
                Yours
                  sincerely,

                 

              	 
	
                 

              	
                MORGAN
                  STANLEY CAPITAL SERVICES INC.

              	
                 

              
	
                 

              	
                 

              	
                 

              	
                 

              
	
                 

              	
                By:

              	
                 

              	
                 

              
	
                 

              	
                Name:

              	
                 

              	
                 

              
	
                 

              	
                Title:

              	
                 

              	
                 

              

      

    

    

     

     

    

     

    
      
        
           

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      
        	Confirmed
                as of the date first written above:
	
                 

                
                  WILMINGTON
                    TRUST COMPANY

                  in
                    its capacity as Subordination Agent 

                  on
                    behalf of the Trustee under the 

                  Continental
                    Airlines Pass Through 

                  Trust
                    2006-1G

                

              
	
                 

              	
                 

              
	
                 

              	
                 

              
	
                By:

              	
                 

              
	
                Name:

              	
                 

              
	
                Title:

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