Document:

<PAGE>

                                                                     Exhibit 4.9

                                US AIRWAYS, INC.,
                                     ISSUER

                                       AND

                    THE BANK OF NEW YORK TRUST COMPANY, N.A.,
                                     TRUSTEE

                   GUARANTEED TO THE EXTENT SET FORTH THEREIN
                         BY THE GUARANTORS NAMED HEREIN

                                   ----------

                                    INDENTURE

                                   ----------

                          DATED AS OF __________, 2006

                                 DEBT SECURITIES

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                           <C>
ARTICLE 1 DEFINITIONS......................................................    6
   SECTION 1.01  DEFINITIONS OF TERMS......................................    6

ARTICLE 2 ISSUE, DESCRIPTION, TERMS, EXECUTION, REGISTRATION  AND EXCHANGE
          OF SECURITIES....................................................   10
   SECTION 2.01  DESIGNATION AND TERMS OF SECURITIES.......................   10
   SECTION 2.02  FORM OF SECURITIES AND TRUSTEE'S CERTIFICATE..............   12
   SECTION 2.03  DENOMINATIONS: PROVISIONS FOR PAYMENT.....................   13
   SECTION 2.04  EXECUTION AND AUTHENTICATIONS.............................   14
   SECTION 2.05  REGISTRATION OF TRANSFER AND EXCHANGE.....................   15
   SECTION 2.06  TEMPORARY SECURITIES......................................   16
   SECTION 2.07  MUTILATED, DESTROYED, LOST OR STOLEN SECURITIES...........   16
   SECTION 2.08  CANCELLATION..............................................   17
   SECTION 2.09  BENEFITS OF INDENTURE.....................................   17
   SECTION 2.10  AUTHENTICATING AGENT......................................   17
   SECTION 2.11  GLOBAL SECURITIES.........................................   18

ARTICLE 3 REDEMPTION OF SECURITIES AND SINKING FUND PROVISIONS.............   19
   SECTION 3.01  REDEMPTION................................................   19
   SECTION 3.02  NOTICE OF REDEMPTION......................................   19
   SECTION 3.03  PAYMENT UPON REDEMPTION...................................   20
   SECTION 3.04  SINKING FUND..............................................   21
   SECTION 3.05  SATISFACTION OF SINKING FUND PAYMENTS WITH SECURITIES.....   21
   SECTION 3.06  REDEMPTION OF SECURITIES FOR SINKING FUND.................   21

ARTICLE 4 COVENANTS........................................................   22
   SECTION 4.01  PAYMENT OF PRINCIPAL, PREMIUM AND INTEREST................   22
   SECTION 4.02  MAINTENANCE OF OFFICE OR AGENCY...........................   22
   SECTION 4.03  PAYING AGENTS.............................................   22
   SECTION 4.04  APPOINTMENT TO FILL VACANCY IN OFFICE OF TRUSTEE..........   23
   SECTION 4.05  COMPLIANCE WITH CONSOLIDATION PROVISIONS..................   24

ARTICLE 5 SECURITYHOLDERS' LISTS AND REPORTS BY THE COMPANY AND THE
          TRUSTEE..........................................................   24
   SECTION 5.01  COMPANY TO FURNISH TRUSTEE NAMES AND ADDRESSES OF
                 SECURITYHOLDERS...........................................   24
   SECTION 5.02  PRESERVATION OF INFORMATION; COMMUNICATIONS WITH
                 SECURITYHOLDERS...........................................   24
   SECTION 5.03  REPORTS BY THE COMPANY....................................   24
   SECTION 5.04  REPORTS BY THE TRUSTEE....................................   25
</TABLE>

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<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

<TABLE>
<S>                                                                           <C>
ARTICLE 6 REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT..   25
   SECTION 6.01  EVENTS OF DEFAULT.........................................   25
   SECTION 6.02  COLLECTION OF INDEBTEDNESS AND SUITS FOR ENFORCEMENT BY
                 TRUSTEE...................................................   27
   SECTION 6.03  APPLICATION OF MONEYS COLLECTED...........................   28
   SECTION 6.04  LIMITATION ON SUITS.......................................   29
   SECTION 6.05  RIGHTS AND REMEDIES CUMULATIVE; DELAY OR OMISSION NOT
                 WAIVER....................................................   29
   SECTION 6.06  CONTROL BY SECURITYHOLDERS................................   30
   SECTION 6.07  UNDERTAKING TO PAY COSTS..................................   30

ARTICLE 7 CONCERNING THE TRUSTEE...........................................   31
   SECTION 7.01  CERTAIN DUTIES AND RESPONSIBILITIES OF TRUSTEE............   31
   SECTION 7.02  CERTAIN RIGHTS OF TRUSTEE.................................   32
   SECTION 7.03  TRUSTEE NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OR
                 SECURITIES................................................   33
   SECTION 7.04  MAY HOLD SECURITIES.......................................   34
   SECTION 7.05  MONEYS HELD IN TRUST......................................   34
   SECTION 7.06  COMPENSATION AND REIMBURSEMENT............................   34
   SECTION 7.07  RELIANCE ON OFFICERS' CERTIFICATE.........................   34
   SECTION 7.08  DISQUALIFICATION; CONFLICTING INTERESTS...................   35
   SECTION 7.09  CORPORATE TRUSTEE REQUIRED; ELIGIBILITY...................   35
   SECTION 7.10  RESIGNATION AND REMOVAL; APPOINTMENT OF SUCCESSOR.........   35
   SECTION 7.11  ACCEPTANCE OF APPOINTMENT BY SUCCESSOR....................   36
   SECTION 7.12  MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO
                 BUSINESS..................................................   38
   SECTION 7.13  PREFERENTIAL COLLECTION OF CLAIMS AGAINST THE COMPANY.....   38
   SECTION 7.14  NOTICE OF DEFAULT.........................................   38

ARTICLE 8 CONCERNING THE SECURITYHOLDERS...................................   38
   SECTION 8.01  EVIDENCE OF ACTION BY SECURITYHOLDERS.....................   38
   SECTION 8.02  PROOF OF EXECUTION BY SECURITYHOLDERS.....................   39
   SECTION 8.03  WHO MAY BE DEEMED OWNERS..................................   39
   SECTION 8.04  CERTAIN SECURITIES OWNED BY COMPANY DISREGARDED...........   40
   SECTION 8.05  ACTIONS BINDING ON FUTURE SECURITYHOLDERS.................   40

ARTICLE 9 SUPPLEMENTAL INDENTURES..........................................   41
   SECTION 9.01  SUPPLEMENTAL INDENTURES WITHOUT THE CONSENT OF
                 SECURITYHOLDERS...........................................   41
</TABLE>

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<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

<TABLE>
<S>                                                                           <C>
   SECTION 9.02  SUPPLEMENTAL INDENTURES WITH CONSENT OF SECURITYHOLDERS...   42
   SECTION 9.03  EFFECT OF SUPPLEMENTAL INDENTURES.........................   42
   SECTION 9.04  SECURITIES AFFECTED BY SUPPLEMENTAL INDENTURES............   42
   SECTION 9.05  EXECUTION OF SUPPLEMENTAL INDENTURES......................   43

ARTICLE 10 SUCCESSOR ENTITY................................................   43
   SECTION 10.01 COMPANY MAY CONSOLIDATE, ETC..............................   43
   SECTION 10.02 SUCCESSOR ENTITY SUBSTITUTED..............................   44
   SECTION 10.03 EVIDENCE OF CONSOLIDATION, ETC............................   44

ARTICLE 11 SATISFACTION AND DISCHARGE......................................   44
   SECTION 11.01 SATISFACTION AND DISCHARGE OF INDENTURE...................   44
   SECTION 11.02 DISCHARGE OF OBLIGATIONS..................................   45
   SECTION 11.03 DEPOSITED MONEYS TO BE HELD IN TRUST......................   45
   SECTION 11.04 PAYMENT OF MONEYS HELD BY PAYING AGENTS...................   46
   SECTION 11.05 REPAYMENT TO COMPANY......................................   46

ARTICLE 12 IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND
           DIRECTORS.......................................................   46
   SECTION 12.01 NO RECOURSE...............................................   46

ARTICLE 13 MISCELLANEOUS PROVISIONS........................................   47
   SECTION 13.01 EFFECT ON SUCCESSORS AND ASSIGNS..........................   47
   SECTION 13.02 ACTIONS BY SUCCESSOR......................................   47
   SECTION 13.03 SURRENDER OF COMPANY POWERS...............................   47
   SECTION 13.04 NOTICES...................................................   47
   SECTION 13.05 GOVERNING LAW.............................................   47
   SECTION 13.06 TREATMENT OF SECURITIES AS DEBT...........................   48
   SECTION 13.07 CERTIFICATES AND OPINIONS AS TO CONDITIONS PRECEDENT......   48
   SECTION 13.08 PAYMENTS ON BUSINESS DAYS.................................   48
   SECTION 13.09 CONFLICT WITH TRUST INDENTURE ACT.........................   48
   SECTION 13.10 COUNTERPARTS..............................................   49
   SECTION 13.11 SEPARABILITY..............................................   49
   SECTION 13.12 COMPLIANCE CERTIFICATES...................................   49

ARTICLE 14 SUBORDINATION OF SECURITIES.....................................   49
   SECTION 14.01 SUBORDINATION TERMS.......................................   49

ARTICLE 15 GUARANTEES......................................................   49
   SECTION 15.01 GUARANTEE.................................................   49
</TABLE>

(1)  This Table of Contents does not constitute part of the Indenture and shall
     not have any bearing on the interpretation of any of its terms or
     provisions.

                                      -iii-

<PAGE>

                                    INDENTURE

     INDENTURE, dated as of __________________, 2006, among US AIRWAYS, INC., a
Delaware corporation (the "Company"), the guarantors, if any, listed on Schedule
1 hereto (herein called the "Guarantors") and THE BANK OF NEW YORK TRUST
COMPANY, N.A., as trustee (the "Trustee"):

     WHEREAS, for its lawful corporate purposes, the Company has duly authorized
the execution and delivery of this Indenture to provide for the issuance of debt
securities (hereinafter referred to as the "Securities"), in an unlimited
aggregate principal amount to be issued from time to time in one or more series
as in this Indenture provided, as registered Securities without coupons, to be
authenticated by the certificate of the Trustee;

     WHEREAS, to provide the terms and conditions upon which the Securities are
to be authenticated, issued and delivered, the Company has duly authorized the
execution of this Indenture; and

     WHEREAS, all things necessary to make this Indenture a valid agreement of
the Company, in accordance with its terms, have been done.

     NOW, THEREFORE, in consideration of the premises and the purchase of the
Securities by the holders thereof, it is mutually covenanted and agreed as
follows for the equal and ratable benefit of the holders of Securities:

                                    ARTICLE 1

                                   DEFINITIONS

     SECTION 1.01 DEFINITIONS OF TERMS.

     The terms defined in this Section (except as in this Indenture or any
indenture supplemental hereto otherwise expressly provided or unless the context
otherwise requires) for all purposes of this Indenture and of any indenture
supplemental hereto shall have the respective meanings specified in this Section
and shall include the plural as well as the singular. All other terms used in
this Indenture that are defined in the Trust Indenture Act of 1939, as amended,
or that are by reference in such Act defined in the Securities Act of 1933, as
amended (except as herein or any indenture supplemental hereto otherwise
expressly provided or unless the context otherwise requires), shall have the
meanings assigned to such terms in said Trust Indenture Act and in said
Securities Act as in force at the date of the execution of this instrument.

     "AUTHENTICATING AGENT" means an authenticating agent with respect to all or
any of the series of Securities appointed by the Trustee pursuant to Section
2.10.

     "BANKRUPTCY LAW" means Title 11, U.S. Code, or any similar federal or state
law for the relief of debtors.

     "BOARD OF DIRECTORS" means the Board of Directors of the Company or any
duly authorized committee of such Board.

<PAGE>

     "BOARD RESOLUTION" means a copy of a resolution certified by the Secretary
or an Assistant Secretary of the Company to have been duly adopted by the Board
of Directors and to be in full force and effect on the date of such
certification.

     "BUSINESS DAY" means, with respect to any series of Securities, any day
other than a day on which federal or state banking institutions in the Borough
of Manhattan, the City of New York, or in the city of the Corporate Trust Office
of the Trustee, are authorized or obligated by law, executive order or
regulation to close.

     "CERTIFICATE" means a certificate signed by any Officer. The Certificate
need not comply with the provisions of Section 13.07.

     "COMPANY" means US Airways, Inc., a corporation duly organized and existing
under the laws of the State of Delaware, and, subject to the provisions of
Article Ten, shall also include its successors and assigns.

     "CORPORATE TRUST OFFICE" means the office of the Trustee at which, at any
particular time, its corporate trust business shall be principally administered,
which office at the date hereof is located at 100 Ashford Center North, Suite
520, Atlanta, Georgia 30338.

     "CUSTODIAN" means any receiver, trustee, assignee, liquidator or similar
official under any Bankruptcy Law.

     "DEFAULT" means any event, act or condition that with notice or lapse of
time, or both, would constitute an Event of Default.

     "DEPOSITARY" means, with respect to Securities of any series for which the
Company shall determine that such Securities will be issued as a Global
Security, The Depository Trust Company, New York, New York, another clearing
agency, or any successor registered as a clearing agency under the Securities
and Exchange Act of 1934, as amended (the "Exchange Act"), or other applicable
statute or regulation, which, in each case, shall be designated by the Company
pursuant to either Section 2.01 or 2.11.

     "EVENT OF DEFAULT" means, with respect to Securities of a particular
series, any event specified in Section 6.01, continued for the period of time,
if any, therein designated.

     "GLOBAL SECURITY" means, with respect to any series of Securities, a
Security executed by the Company and delivered by the Trustee to the Depositary
or pursuant to the Depositary's instruction, all in accordance with the
Indenture, which shall be registered in the name of the Depositary or its
nominee.

     "GOVERNMENTAL OBLIGATIONS" means securities that are (a) direct obligations
of the United States of America for the payment of which its full faith and
credit is pledged or (b) obligations of a Person controlled or supervised by and
acting as an agency or instrumentality of the United States of America, the
payment of which is unconditionally guaranteed as a full faith and credit
obligation by the United States of America that, in either case, are not
callable or redeemable at the option of the issuer thereof at any time prior to
the stated maturity of the Securities, and shall also include a depositary
receipt issued by a bank or trust company as

                                      -2-

<PAGE>

custodian with respect to any such Governmental Obligation or a specific payment
of principal of or interest on any such Governmental Obligation held by such
custodian for the account of the holder of such depositary receipt; provided,
however, that (except as required by law) such custodian is not authorized to
make any deduction from the amount payable to the holder of such depositary
receipt from any amount received by the custodian in respect of the Governmental
Obligation or the specific payment of principal of or interest on the
Governmental Obligation evidenced by such depositary receipt.

     "GUARANTEE" means a guarantee by any Guarantor of an obligation under this
Indenture.

     "HEREIN", "HEREOF" and "HEREUNDER", and other words of similar import,
refer to this Indenture as a whole and not to any particular Article, Section or
other subdivision.

     "INDENTURE" means this instrument as originally executed or as it may from
time to time be supplemented or amended by one or more indentures supplemental
hereto entered into in accordance with the terms hereof.

     "INTEREST PAYMENT DATE", when used with respect to any installment of
interest on a Security of a particular series, means the date specified in such
Security or in a Board Resolution or in an indenture supplemental hereto with
respect to such series as the fixed date on which an installment of interest
with respect to Securities of that series is due and payable.

     "OBLIGOR" on the Securities means the Company and any guarantor and any
successor obligor on the Securities.

     "OFFICER" means, with respect to the Company, the chairman of the Board of
Directors, a chief executive officer, a president, a chief operating officer,
any senior vice president, any vice president or a chief financial officer, the
treasurer or any assistant treasurer, the controller or any assistant controller
or the secretary or any assistant secretary.

     "OFFICERS' CERTIFICATE" means a certificate signed by any two Officers.
Each such certificate shall include the statements provided for in Section
13.07, if and to the extent required by the provisions thereof.

     "OPINION OF COUNSEL" means an opinion in writing subject to customary
exceptions of legal counsel, who may be an employee of or counsel for the
Company, that is delivered to the Trustee in accordance with the terms hereof.
Each such opinion shall include the statements provided for in Section 13.07, if
and to the extent required by the provisions thereof.

     "OUTSTANDING", when used with reference to Securities of any series, means,
subject to the provisions of Section 8.04, as of any particular time, all
Securities of that series theretofore authenticated and delivered by the Trustee
under this Indenture, except (a) Securities theretofore canceled by the Trustee
or any paying agent, or delivered to the Trustee or any paying agent for
cancellation or that have previously been canceled; (b) Securities or portions
thereof for the payment or redemption of which moneys or Governmental
Obligations in the necessary amount shall have been deposited in trust with the
Trustee or with any paying agent (other than the Company) or shall have been set
aside and segregated in trust by the Company (if the Company

                                      -3-

<PAGE>

shall act as its own paying agent); provided, however, that if such Securities
or portions of such Securities are to be redeemed prior to the maturity thereof,
notice of such redemption shall have been given as in Article Three provided, or
provision satisfactory to the Trustee shall have been made for giving such
notice; and (c) Securities in lieu of or in substitution for which other
Securities shall have been authenticated and delivered pursuant to the terms of
Section 2.07.

     "PERSON" means any individual, corporation, partnership, joint venture,
joint-stock company, limited liability company, association, trust,
unincorporated organization, any other entity or organization, including a
government or political subdivision or an agency or instrumentality thereof.

     "PREDECESSOR SECURITY" of any particular Security means every previous
Security evidencing all or a portion of the same debt as that evidenced by such
particular Security; and, for the purposes of this definition, any Security
authenticated and delivered under Section 2.07 in lieu of a lost, destroyed or
stolen Security shall be deemed to evidence the same debt as the lost, destroyed
or stolen Security.

     "RESPONSIBLE OFFICER" when used with respect to the Trustee means the
chairman of its board of directors, the chief executive officer, the president,
any vice president, the secretary, the treasurer, any trust officer, any
corporate trust officer or any other officer or assistant officer of the Trustee
customarily performing functions similar to those performed by the Persons who
at the time shall be such officers, respectively, or to whom any corporate trust
matter is referred because of his or her knowledge of and familiarity with the
particular subject.

     "SECURITIES" means the debt Securities authenticated and delivered under
this Indenture.

     "SECURITYHOLDER", "holder of Securities", "registered holder", or other
similar term, means the Person or Persons in whose name or names a particular
Security shall be registered on the books of the Company kept for that purpose
in accordance with the terms of this Indenture.

     "SECURITY REGISTER" and "SECURITY REGISTRAR" shall have the meanings as set
forth in Section 2.05.

     "SUBSIDIARY" means, with respect to any Person, (i) any corporation at
least a majority of whose outstanding Voting Stock shall at the time be owned,
directly or indirectly, by such Person or by one or more of its Subsidiaries or
by such Person and one or more of its Subsidiaries, (ii) any general
partnership, joint venture or similar entity, at least a majority of whose
outstanding partnership or similar interests shall at the time be owned by such
Person, or by one or more of its Subsidiaries, or by such Person and one or more
of its Subsidiaries and (iii) any limited partnership of which such Person or
any of its Subsidiaries is a general partner.

     "TRUSTEE" means The Bank of New York Trust Company, N.A., and, subject to
the provisions of Article Seven, shall also include its successors and assigns,
and, if at any time there is more than one Person acting in such capacity
hereunder, "Trustee" shall mean each such Person. The term "Trustee" as used
with respect to a particular series of the Securities shall mean the trustee
with respect to that series.

                                      -4-

<PAGE>

     "TRUST INDENTURE ACT" means the Trust Indenture Act of 1939, as amended.

     "VOTING STOCK", as applied to stock of any Person, means shares, interests,
participations or other equivalents in the equity interest (however designated)
in such Person having ordinary voting power for the election of a majority of
the directors (or the equivalent) of such Person, other than shares, interests,
participations or other equivalents having such power only by reason of the
occurrence of a contingency.

                                    ARTICLE 2

               ISSUE, DESCRIPTION, TERMS, EXECUTION, REGISTRATION
                           AND EXCHANGE OF SECURITIES

     SECTION 2.01 DESIGNATION AND TERMS OF SECURITIES.

          (a) The aggregate principal amount of Securities that may be
authenticated and delivered under this Indenture is unlimited. The Securities
may be issued in one or more series up to the aggregate principal amount of
Securities of that series from time to time authorized by or pursuant to a Board
Resolution or pursuant to one or more indentures supplemental hereto. Prior to
the initial issuance of Securities of any series, there shall be established in
or pursuant to a Board Resolution, and set forth in an Officers' Certificate, or
established in one or more indentures supplemental hereto:

               (1) the title of the Securities of the series (which shall
distinguish the Securities of that series from all other Securities);

               (2) any limit upon the aggregate principal amount of the
Securities of that series that may be authenticated and delivered under this
Indenture (except for Securities authenticated and delivered upon registration
of transfer of, or in exchange for, or in lieu of, other Securities of that
series);

               (3) the date or dates on which the principal of the Securities of
the series is payable, any original issue discount that may apply to the
Securities of that series upon their issuance, the principal amount due at
maturity, and the place(s) of payment;

               (4) the rate or rates at which the Securities of the series shall
bear interest or the manner of calculation of such rate or rates, if any;

               (5) the date or dates from which such interest shall accrue, the
Interest Payment Dates on which such interest will be payable or the manner of
determination of such Interest Payment Dates, the place(s) of payment, and the
record date for the determination of holders to whom interest is payable on any
such Interest Payment Dates or the manner of determination of such record dates;

               (6) the right, if any, to extend the interest payment periods and
the duration of such extension;

                                      -5-

<PAGE>

               (7) the period or periods within which, the price or prices at
which and the terms and conditions upon which Securities of the series may be
redeemed, in whole or in part, at the option of the Company;

               (8) the obligation, if any, of the Company to redeem or purchase
Securities of the series pursuant to any sinking fund, mandatory redemption, or
analogous provisions (including payments made in cash in satisfaction of future
sinking fund obligations) or at the option of a holder thereof and the period or
periods within which, the price or prices at which, and the terms and conditions
upon which, Securities of the series shall be redeemed or purchased, in whole or
in part, pursuant to such obligation;

               (9) the form of the Securities of the series including the form
of the Certificate of Authentication for such series;

               (10) if other than denominations of one thousand U.S. dollars
($1,000) or any integral multiple thereof, the denominations in which the
Securities of the series shall be issuable;

               (11) any and all other terms (including terms, to the extent
applicable, relating to any auction or remarketing of the Securities of that
series and any security for the obligations of the Company with respect to such
Securities) with respect to such series (which terms shall not be inconsistent
with the terms of this Indenture, as amended by any supplemental indenture)
including any terms which may be required by or advisable under United States
laws or regulations or advisable in connection with the marketing of Securities
of that series;

               (12) whether the Securities are issuable as a Global Security
and, in such case, the terms and the identity of the Depositary for such series;

               (13) whether the Securities will be convertible into or
exchangeable for shares of common stock or other securities of the Company or
any other Person and, if so, the terms and conditions upon which such Securities
will be so convertible or exchangeable, including the conversion or exchange
price, as applicable, or how it will be calculated and may be adjusted, any
mandatory or optional (at the Company's option or the holders' option)
conversion or exchange features, and the applicable conversion or exchange
period;

               (14) if other than the principal amount thereof, the portion of
the principal amount of Securities of the series which shall be payable upon
declaration of acceleration of the maturity thereof pursuant to Section 6.01;

               (15) any additional or different Events of Default or restrictive
covenants (which may include, among other restrictions, restrictions on the
Company's ability or the ability of the Company's Subsidiaries to: incur
additional indebtedness; issue additional securities; create liens; pay
dividends or make distributions in respect of their capital stock; redeem
capital stock; place restrictions on such Subsidiaries placing restrictions on
their ability to pay dividends, make distributions or transfer assets; make
investments or other restricted payments; sell or otherwise dispose of assets;
enter into sale-leaseback transactions; engage in transactions with stockholders
and affiliates; issue or sell stock of their Subsidiaries; or effect a
consolidation or merger) or financial covenants (which may include, among other
financial

                                      -6-

<PAGE>

covenants, financial covenants that require the Company and its Subsidiaries to
maintain specified interest coverage, fixed charge, cash flow-based or
asset-based ratios) provided for with respect to the Securities of the series;

               (16) if other than dollars, the coin or currency in which the
Securities of the series are denominated (including, but not limited to, foreign
currency);

               (17) the terms and conditions, if any, upon which the Company
shall pay amounts in addition to the stated interest, premium, if any and
principal amounts of the Securities of the series to any Securityholder that is
not a "United States person" for federal tax purposes;

               (18) any restrictions on transfer, sale or assignment of the
Securities of the series;

               (19) the form and terms of any guarantee of any Securities of the
series; and

               (20) the subordination terms, if any, of the Securities of the
series.

     All Securities of any one series shall be substantially identical except as
to denomination and except as may otherwise be provided in or pursuant to any
such Board Resolution or in any indentures supplemental hereto.

     If any of the terms of the series are established by action taken pursuant
to a Board Resolution of the Company, a copy of an appropriate record of such
action shall be certified by the secretary or an assistant secretary of the
Company and delivered to the Trustee at or prior to the delivery of the
Officers' Certificate of the Company setting forth the terms of the series.

     Securities of any particular series may be issued at various times, with
different dates on which the principal or any installment of principal is
payable, with different rates of interest, if any, or different methods by which
rates of interest may be determined, with different dates on which such interest
may be payable and with different redemption dates.

     SECTION 2.02 FORM OF SECURITIES AND TRUSTEE'S CERTIFICATE.

     The Securities of any series and the Trustee's certificate of
authentication to be borne by such Securities shall be substantially of the
tenor and purport as set forth in one or more indentures supplemental hereto or
as provided in a Board Resolution, and set forth in an Officers' Certificate,
and they may have such letters, numbers or other marks of identification or
designation and such legends or endorsements printed, lithographed or engraved
thereon as the Company may deem appropriate and as are not inconsistent with the
provisions of this Indenture, or as may be required to comply with any law or
with any rule or regulation made pursuant thereto or with any rule or regulation
of any securities exchange on which Securities of that series may be listed, or
to conform to usage.

                                      -7-
<PAGE>

     SECTION 2.03 DENOMINATIONS: PROVISIONS FOR PAYMENT.

     The Securities shall be issuable as registered Securities and in the
denominations of one thousand U.S. dollars ($1,000) or any integral multiple
thereof, subject to Section 2.01(10). The Securities of a particular series
shall bear interest payable on the dates and at the rate specified with respect
to that series. The principal of and the interest on the Securities of any
series, as well as any premium thereon in case of redemption thereof prior to
maturity, shall be payable in the coin or currency of the United States of
America that at the time is legal tender for public and private debt, at the
office or agency of the Company maintained for that purpose in the Borough of
Manhattan, the City and State of New York. Each Security shall be dated the date
of its authentication. Interest on the Securities shall be computed on the basis
of a 360-day year composed of twelve 30-day months.

     The interest installment on any Security that is payable, and is punctually
paid or duly provided for, on any Interest Payment Date for Securities of that
series shall be paid to the Person in whose name said Security (or one or more
Predecessor Securities) is registered at the close of business on the regular
record date for such interest installment. In the event that any Security of a
particular series or portion thereof is called for redemption and the redemption
date is subsequent to a regular record date with respect to any Interest Payment
Date and prior to such Interest Payment Date, interest on such Security will be
paid upon presentation and surrender of such Security as provided in Section
3.03.

     Any interest on any Security that is payable, but is not punctually paid or
duly provided for, on any Interest Payment Date for Securities of the same
series (herein called "Defaulted Interest") shall forthwith cease to be payable
to the registered holder on the relevant regular record date by virtue of having
been such holder; and such Defaulted Interest shall be paid by the Company, at
its election, as provided in clause (1) or clause (2) below:

               (1) The Company may make payment of any Defaulted Interest on
Securities to the Persons in whose names such Securities (or their respective
Predecessor Securities) are registered at the close of business on a special
record date for the payment of such Defaulted Interest, which shall be fixed in
the following manner: the Company shall notify the Trustee in writing of the
amount of Defaulted Interest proposed to be paid on each such Security and the
date of the proposed payment, and at the same time the Company shall deposit
with the Trustee an amount of money equal to the aggregate amount proposed to be
paid in respect of such Defaulted Interest or shall make arrangements
satisfactory to the Trustee for such deposit prior to the date of the proposed
payment, such money when deposited to be held in trust for the benefit of the
Persons entitled to such Defaulted Interest as in this clause provided.
Thereupon the Trustee shall fix a special record date for the payment of such
Defaulted Interest which shall not be more than 15 nor less than 10 days prior
to the date of the proposed payment and not less than 10 days after the receipt
by the Trustee of the notice of the proposed payment. The Trustee shall promptly
notify the Company of such special record date and, in the name and at the
expense of the Company, shall cause notice of the proposed payment of such
Defaulted Interest and the special record date therefor to be mailed, first
class postage prepaid, to each Securityholder at his or her address as it
appears in the Security Register (as hereinafter defined), not less than 10 days
prior to such special record date. Notice of the proposed payment of such
Defaulted Interest and the special record date therefor having been mailed as
aforesaid, such

                                      -8-

<PAGE>

Defaulted Interest shall be paid to the Persons in whose names such Securities
(or their respective Predecessor Securities) are registered on such special
record date.

               (2) The Company may make payment of any Defaulted Interest on any
Securities in any other lawful manner not inconsistent with the requirements of
any securities exchange on which such Securities may be listed, and upon such
notice as may be required by such exchange, if, after notice given by the
Company to the Trustee of the proposed payment pursuant to this clause, such
manner of payment shall be deemed practicable by the Trustee.

     Unless otherwise set forth in a Board Resolution or one or more indentures
supplemental hereto establishing the terms of any series of Securities pursuant
to Section 2.01 hereof, the term "regular record date" as used in this Section
with respect to a series of Securities and any Interest Payment Date for such
series shall mean either the fifteenth day of the month immediately preceding
the month in which an Interest Payment Date established for such series pursuant
to Section 2.01 hereof shall occur, if such Interest Payment Date is the first
day of a month, or the first day of the month in which an Interest Payment Date
established for such series pursuant to Section 2.01 hereof shall occur, if such
Interest Payment Date is the fifteenth day of a month, whether or not such date
is a Business Day.

     Subject to the foregoing provisions of this Section, each Security of a
series delivered under this Indenture upon transfer of or in exchange for or in
lieu of any other Security of such series shall carry the rights to interest
accrued and unpaid, and to accrue, that were carried by such other Security.

     SECTION 2.04 EXECUTION AND AUTHENTICATIONS.

     The Securities shall be signed on behalf of the Company by one of its
Officers. Signatures may be in the form of a manual or facsimile signature.

     The Company may use the facsimile signature of any Person who shall have
been an Officer, notwithstanding the fact that at the time the Securities shall
be authenticated and delivered or disposed of such Person shall have ceased to
be such an officer of the Company. The Securities may contain such notations,
legends or endorsements required by law, stock exchange rule or usage. Each
Security shall be dated the date of its authentication by the Trustee.

     A Security shall not be valid until authenticated manually by an authorized
signatory of the Trustee, or by an Authenticating Agent. Such signature shall be
conclusive evidence that the Security so authenticated has been duly
authenticated and delivered hereunder and that the holder is entitled to the
benefits of this Indenture. At any time and from time to time after the
execution and delivery of this Indenture, the Company may deliver Securities of
any series executed by the Company to the Trustee for authentication, together
with a written order of the Company for the authentication and delivery of such
Securities, signed by an Officer, and the Trustee in accordance with such
written order shall authenticate and deliver such Securities.

     In authenticating such Securities and accepting the additional
responsibilities under this Indenture in relation to such Securities, the
Trustee shall be entitled to receive, and (subject to Section 7.01) shall be
fully protected in relying upon, an Opinion of Counsel stating that the form and
terms thereof have been established in conformity with the provisions of this
Indenture.

                                      -9-

<PAGE>

     The Trustee shall not be required to authenticate such Securities if the
issue of such Securities pursuant to this Indenture will affect the Trustee's
own rights, duties or immunities under the Securities and this Indenture or
otherwise in a manner that is not reasonably acceptable to the Trustee.

     SECTION 2.05 REGISTRATION OF TRANSFER AND EXCHANGE.

          (a) Securities of any series may be exchanged upon presentation
thereof at the office or agency of the Company designated for such purpose in
the Borough of Manhattan, the City and State of New York, for other Securities
of such series of authorized denominations, and for a like aggregate principal
amount, upon payment of a sum sufficient to cover any tax or other governmental
charge in relation thereto, all as provided in this Section. In respect of any
Securities so surrendered for exchange, the Company shall execute, the Trustee
shall authenticate and such office or agency shall deliver in exchange therefor
the Security or Securities of the same series that the Securityholder making the
exchange shall be entitled to receive, bearing numbers not contemporaneously
outstanding.

          (b) The Company shall keep, or cause to be kept, at its office or
agency designated for such purpose in the Borough of Manhattan, the City and
State of New York, or such other location designated by the Company, a register
or registers (herein referred to as the "Security Register") in which, subject
to such reasonable regulations as it may prescribe, the Company shall register
the Securities and the transfers of Securities as in this Article provided and
which at all reasonable times shall be open for inspection by the Trustee. The
registrar for the purpose of registering Securities and transfer of Securities
as herein provided shall be appointed as authorized by Board Resolution (the
"Security Registrar").

     Upon surrender for transfer of any Security at the office or agency of the
Company designated for such purpose, the Company shall execute, the Trustee
shall authenticate and such office or agency shall deliver in the name of the
transferee or transferees a new Security or Securities of the same series as the
Security presented for a like aggregate principal amount.

     All Securities presented or surrendered for exchange or registration of
transfer, as provided in this Section, shall be accompanied (if so required by
the Company or the Security Registrar) by a written instrument or instruments of
transfer, in form satisfactory to the Company or the Security Registrar, duly
executed by the registered holder or by such holder's duly authorized attorney
in writing.

          (c) Except as provided pursuant to Section 2.01 pursuant to a Board
Resolution, and set forth in an Officers' Certificate, or established in one or
more indentures supplemental to this Indenture, no service charge shall be made
for any exchange or registration of transfer of Securities, or issue of new
Securities in case of partial redemption of any series, but the Company may
require payment of a sum sufficient to cover any tax or other governmental
charge in relation thereto, other than exchanges pursuant to Section 2.06,
Section 3.03(b) and Section 9.04 not involving any transfer.

          (d) The Company shall not be required (i) to issue, exchange or
register the transfer of any Securities during a period beginning at the opening
of business 15 days before the

                                      -10-

<PAGE>

day of the mailing of a notice of redemption of less than all the Outstanding
Securities of the same series and ending at the close of business on the day of
such mailing, nor (ii) to register the transfer of or exchange any Securities of
any series or portions thereof called for redemption, other than the unredeemed
portion of any such Securities being redeemed in part. The provisions of this
Section 2.05 are, with respect to any Global Security, subject to Section 2.11
hereof.

     SECTION 2.06 TEMPORARY SECURITIES.

     Pending the preparation of definitive Securities of any series, the Company
may execute, and the Trustee shall authenticate and deliver, temporary
Securities (printed, lithographed or typewritten) of any authorized
denomination. Such temporary Securities shall be substantially in the form of
the definitive Securities in lieu of which they are issued, but with such
omissions, insertions and variations as may be appropriate for temporary
Securities, all as may be determined by the Company. Every temporary Security of
any series shall be executed by the Company and be authenticated by the Trustee
upon the same conditions and in substantially the same manner, and with like
effect, as the definitive Securities of such series. Without unnecessary delay
the Company will execute and will furnish definitive Securities of such series
and thereupon any or all temporary Securities of such series may be surrendered
in exchange therefor (without charge to the holders), at the office or agency of
the Company designated for the purpose in the Borough of Manhattan, the City and
State of New York, and the Trustee shall authenticate and such office or agency
shall deliver in exchange for such temporary Securities an equal aggregate
principal amount of definitive Securities of such series, unless the Company
advises the Trustee to the effect that definitive Securities need not be
executed and furnished until further notice from the Company. Until so
exchanged, the temporary Securities of such series shall be entitled to the same
benefits under this Indenture as definitive Securities of such series
authenticated and delivered hereunder.

     SECTION 2.07 MUTILATED, DESTROYED, LOST OR STOLEN SECURITIES.

     In case any temporary or definitive Security shall become mutilated or be
destroyed, lost or stolen, the Company (subject to the next succeeding sentence)
shall execute, and upon the Company's request the Trustee (subject as aforesaid)
shall authenticate and deliver, a new Security of the same series, bearing a
number not contemporaneously outstanding, in exchange and substitution for the
mutilated Security, or in lieu of and in substitution for the Security so
destroyed, lost or stolen. In every case the applicant for a substituted
Security shall furnish to the Company and the Trustee such security or indemnity
as may be required by them to save each of them harmless, and, in every case of
destruction, loss or theft, the applicant shall also furnish to the Company and
the Trustee evidence to their satisfaction of the destruction, loss or theft of
the applicant's Security and of the ownership thereof. The Trustee may
authenticate any such substituted Security and deliver the same upon the written
request or authorization of any officer of the Company. Upon the issuance of any
substituted Security, the Company may require the payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in relation
thereto and any other expenses (including the fees and expenses of the Trustee)
connected therewith.

     In case any Security that has matured or is about to mature shall become
mutilated or be destroyed, lost or stolen, the Company may, instead of issuing a
substitute Security, pay or

                                      -11-

<PAGE>

authorize the payment of the same (without surrender thereof except in the case
of a mutilated Security) if the applicant for such payment shall furnish to the
Company and the Trustee such security or indemnity as they may require to save
them harmless, and, in case of destruction, loss or theft, evidence to the
satisfaction of the Company and the Trustee of the destruction, loss or theft of
such Security and of the ownership thereof.

     Every replacement Security issued pursuant to the provisions of this
Section shall constitute an additional contractual obligation of the Company
whether or not the mutilated, destroyed, lost or stolen Security shall be found
at any time, or be enforceable by anyone, and shall be entitled to all the
benefits of this Indenture equally and proportionately with any and all other
Securities of the same series duly issued hereunder. All Securities shall be
held and owned upon the express condition that the foregoing provisions are
exclusive with respect to the replacement or payment of mutilated, destroyed,
lost or stolen Securities, and shall preclude (to the extent lawful) any and all
other rights or remedies, notwithstanding any law or statute existing or
hereafter enacted to the contrary with respect to the replacement or payment of
negotiable instruments or other securities without their surrender.

     SECTION 2.08 CANCELLATION.

     All Securities surrendered for the purpose of payment, redemption, exchange
or registration of transfer shall, if surrendered to the Company or any paying
agent, be delivered to the Trustee for cancellation, or, if surrendered to the
Trustee, shall be cancelled by it, and no Securities shall be issued in lieu
thereof except as expressly required or permitted by any of the provisions of
this Indenture. On request of the Company at the time of such surrender, the
Trustee shall deliver to the Company canceled Securities held by the Trustee. In
the absence of such request the Trustee may dispose of canceled Securities in
accordance with its standard procedures and deliver a certificate of disposition
to the Company. If the Company shall otherwise acquire any of the Securities,
however, such acquisition shall not operate as a redemption or satisfaction of
the indebtedness represented by such Securities unless and until the same are
delivered to the Trustee for cancellation.

     SECTION 2.09 BENEFITS OF INDENTURE.

     Nothing in this Indenture or in the Securities, express or implied, shall
give or be construed to give to any Person, other than the parties hereto and
the holders of the Securities (and, with respect to the provisions of Article
Fourteen, the holders of any indebtedness of the Company to which the Securities
of any series are subordinated) any legal or equitable right, remedy or claim
under or in respect of this Indenture, or under any covenant, condition or
provision herein contained; all such covenants, conditions and provisions being
for the sole benefit of the parties hereto and of the holders of the Securities
(and, with respect to the provisions of Article Fourteen, the holders of any
indebtedness of the Company to which the Securities of any series are
subordinated).

     SECTION 2.10 AUTHENTICATING AGENT.

     So long as any of the Securities of any series remain Outstanding there may
be an Authenticating Agent for any or all such series of Securities which the
Trustee shall have the

                                      -12-

<PAGE>

right to appoint. Said Authenticating Agent shall be authorized to act on behalf
of the Trustee to authenticate Securities of such series issued upon exchange,
transfer or partial redemption thereof, and Securities so authenticated shall be
entitled to the benefits of this Indenture and shall be valid and obligatory for
all purposes as if authenticated by the Trustee hereunder. All references in
this Indenture to the authentication of Securities by the Trustee shall be
deemed to include authentication by an Authenticating Agent for such series.
Each Authenticating Agent shall be acceptable to the Company and shall be a
corporation that has a combined capital and surplus, as most recently reported
or determined by it, sufficient under the laws of any jurisdiction under which
it is organized or in which it is doing business to conduct a trust business,
and that is otherwise authorized under such laws to conduct such business and is
subject to supervision or examination by federal or state authorities. If at any
time any Authenticating Agent shall cease to be eligible in accordance with
these provisions, it shall resign immediately.

     Any Authenticating Agent may at any time resign by giving written notice of
resignation to the Trustee and to the Company. The Trustee may at any time (and
upon request by the Company shall) terminate the agency of any Authenticating
Agent by giving written notice of termination to such Authenticating Agent and
to the Company. Upon resignation, termination or cessation of eligibility of any
Authenticating Agent, the Trustee may appoint an eligible successor
Authenticating Agent acceptable to the Company. Any successor Authenticating
Agent, upon acceptance of its appointment hereunder, shall become vested with
all the rights, powers and duties of its predecessor hereunder as if originally
named as an Authenticating Agent pursuant hereto.

     SECTION 2.11 GLOBAL SECURITIES.

          (a) If the Company shall establish pursuant to Section 2.01 that the
Securities of a particular series are to be issued as a Global Security, then
the Company shall execute and the Trustee shall, in accordance with Section
2.04, authenticate and deliver, a Global Security that (i) shall represent, and
shall be denominated in an amount equal to the aggregate principal amount of,
all of the Outstanding Securities of such series, (ii) shall be registered in
the name of the Depositary or its nominee, (iii) shall be delivered by the
Trustee to the Depositary or pursuant to the Depositary's instruction and (iv)
shall bear a legend substantially to the following effect: "Except as otherwise
provided in Section 2.11 of the Indenture, this Security may be transferred, in
whole but not in part, only to another nominee of the Depositary or to a
successor Depositary or to a nominee of such successor Depositary."

          (b) Notwithstanding the provisions of Section 2.05, the Global
Security of a series may be transferred, in whole but not in part and in the
manner provided in Section 2.05, only to another nominee of the Depositary for
such series, or to a successor Depositary for such series selected or approved
by the Company or to a nominee of such successor Depositary.

          (c) If at any time the Depositary for a series of the Securities
notifies the Company that it is unwilling or unable to continue as Depositary
for such series or if at any time the Depositary for such series shall no longer
be registered or in good standing under the Exchange Act, or other applicable
statute or regulation, and a successor Depositary for such series is not
appointed by the Company within 90 days after the Company receives such notice
or

                                      -13-

<PAGE>

becomes aware of such condition, as the case may be, or if an Event of Default
has occurred and is continuing and the Company has received a request from the
Depositary, this Section 2.11 shall no longer be applicable to the Securities of
such series and the Company will execute, and subject to Section 2.04, the
Trustee will authenticate and deliver the Securities of such series in
definitive registered form without coupons, in authorized denominations, and in
an aggregate principal amount equal to the principal amount of the Global
Security of such series in exchange for such Global Security. In addition, the
Company may at any time determine that the Securities of any series shall no
longer be represented by a Global Security and that the provisions of this
Section 2.11 shall no longer apply to the Securities of such series. In such
event the Company will execute and, subject to Section 2.04, the Trustee, upon
receipt of an Officers' Certificate evidencing such determination by the
Company, will authenticate and deliver the Securities of such series in
definitive registered form without coupons, in authorized denominations, and in
an aggregate principal amount equal to the principal amount of the Global
Security of such series in exchange for such Global Security. Upon the exchange
of the Global Security for such Securities in definitive registered form without
coupons, in authorized denominations, the Global Security shall be canceled by
the Trustee. Such Securities in definitive registered form issued in exchange
for the Global Security pursuant to this Section 2.11(c) shall be registered in
such names and in such authorized denominations as the Depositary, pursuant to
instructions from its direct or indirect participants or otherwise, shall
instruct the Trustee. The Trustee shall deliver such Securities to the
Depositary for delivery to the Persons in whose names such Securities are so
registered.

                                    ARTICLE 3

              REDEMPTION OF SECURITIES AND SINKING FUND PROVISIONS

     SECTION 3.01 REDEMPTION.

     The Company may redeem the Securities of any series issued hereunder on and
after the dates and in accordance with the terms established for such series
pursuant to Section 2.01 hereof.

     SECTION 3.02 NOTICE OF REDEMPTION.

          (a) In case the Company shall desire to exercise such right to redeem
all or, as the case may be, a portion of the Securities of any series in
accordance with any right the Company reserved for itself to do so pursuant to
Section 2.01 hereof, the Company shall, or shall cause the Trustee to, give
notice of such redemption to holders of the Securities of such series to be
redeemed by mailing, first class postage prepaid, a notice of such redemption
not less than 30 days and not more than 90 days before the date fixed for
redemption of that series to such holders at their last addresses as they shall
appear upon the Security Register, unless a shorter period is specified in the
Securities to be redeemed. Any notice that is mailed in the manner herein
provided shall be conclusively presumed to have been duly given, whether or not
the registered holder receives the notice. In any case, failure duly to give
such notice to the holder of any Security of any series designated for
redemption in whole or in part, or any defect in the notice, shall not affect
the validity of the proceedings for the redemption of any other Securities of
such series or any other series. In the case of any redemption of Securities
prior to the

                                      -14-

<PAGE>

expiration of any restriction on such redemption provided in the terms of such
Securities or elsewhere in this Indenture, the Company shall furnish the Trustee
with an Officers' Certificate evidencing compliance with any such restriction.

     Each such notice of redemption shall specify the date fixed for redemption
and the redemption price at which Securities of that series are to be redeemed,
and shall state that payment of the redemption price of such Securities to be
redeemed will be made at the office or agency of the Company in the Borough of
Manhattan, the City and State of New York, upon presentation and surrender of
such Securities, that interest accrued to the date fixed for redemption will be
paid as specified in said notice, that from and after said date interest will
cease to accrue and that the redemption is for a sinking fund, if such is the
case. If less than all the Securities of a series are to be redeemed, the notice
to the holders of Securities of that series to be redeemed in part shall specify
the particular Securities to be so redeemed.

     In case any Security is to be redeemed in part only, the notice that
relates to such Security shall state the portion of the principal amount thereof
to be redeemed, and shall state that on and after the redemption date, upon
surrender of such Security, a new Security or Securities of such series in
principal amount equal to the unredeemed portion thereof will be issued.

          (b) If less than all the Securities of a series are to be redeemed,
the Company shall give the Trustee at least 45 days' notice (unless a shorter
notice shall be satisfactory to the Trustee) in advance of the date fixed for
redemption as to the aggregate principal amount of Securities of the series to
be redeemed, and thereupon the Trustee shall select, by lot or in such other
manner as it shall deem appropriate and fair in its discretion and that may
provide for the selection of a portion or portions (equal to one thousand U.S.
dollars ($1,000) or any integral multiple thereof) of the principal amount of
such Securities of a denomination larger than $1,000, the Securities to be
redeemed and shall thereafter promptly notify the Company in writing of the
numbers of the Securities to be redeemed, in whole or in part. The Company may,
if and whenever it shall so elect, by delivery of instructions signed on its
behalf by an Officer, instruct the Trustee or any paying agent to call all or
any part of the Securities of a particular series for redemption and to give
notice of redemption in the manner set forth in this Section, such notice to be
in the name of the Company or its own name as the Trustee or such paying agent
may deem advisable. In any case in which notice of redemption is to be given by
the Trustee or any such paying agent, the Company shall deliver or cause to be
delivered to, or permit to remain with, the Trustee or such paying agent, as the
case may be, such Security Register, transfer books or other records, or
suitable copies or extracts therefrom, sufficient to enable the Trustee or such
paying agent to give any notice by mail that may be required under the
provisions of this Section.

     SECTION 3.03 PAYMENT UPON REDEMPTION.

          (a) If the giving of notice of redemption shall have been completed as
above provided, the Securities or portions of Securities of the series to be
redeemed specified in such notice shall become due and payable on the date and
at the place stated in such notice at the applicable redemption price, together
with interest accrued to the date fixed for redemption and interest on such
Securities or portions of Securities shall cease to accrue on and after the date
fixed for redemption, unless the Company shall default in the payment of such
redemption price

                                      -15-

<PAGE>

and accrued interest with respect to any such Security or portion thereof. On
presentation and surrender of such Securities on or after the date fixed for
redemption at the place of payment specified in the notice, said Securities
shall be paid and redeemed at the applicable redemption price for such series,
together with interest accrued thereon to the date fixed for redemption (but if
the date fixed for redemption is an interest payment date, the interest
installment payable on such date shall be payable to the registered holder at
the close of business on the applicable record date pursuant to Section 2.03).

          (b) Upon presentation of any Security of such series that is to be
redeemed in part only, the Company shall execute and the Trustee shall
authenticate and the office or agency where the Security is presented shall
deliver to the holder thereof, at the expense of the Company, a new Security of
the same series of authorized denominations in principal amount equal to the
unredeemed portion of the Security so presented.

     SECTION 3.04 SINKING FUND.

     The provisions of Sections 3.04, 3.05 and 3.06 shall be applicable to any
sinking fund for the retirement of Securities of a series, except as otherwise
specified as contemplated by Section 2.01 for Securities of such series.

     The minimum amount of any sinking fund payment provided for by the terms of
Securities of any series is herein referred to as a "mandatory sinking fund
payment," and any payment in excess of such minimum amount provided for by the
terms of Securities of any series is herein referred to as an "optional sinking
fund payment". If provided for by the terms of Securities of any series, the
cash amount of any sinking fund payment may be subject to reduction as provided
in Section 3.05. Each sinking fund payment shall be applied to the redemption of
Securities of any series as provided for by the terms of Securities of such
series.

     SECTION 3.05 SATISFACTION OF SINKING FUND PAYMENTS WITH SECURITIES.

     The Company (i) may deliver Outstanding Securities of a series and (ii) may
apply as a credit Securities of a series that have been redeemed either at the
election of the Company pursuant to the terms of such Securities or through the
application of permitted optional sinking fund payments pursuant to the terms of
such Securities, in each case in satisfaction of all or any part of any sinking
fund payment with respect to the Securities of such series required to be made
pursuant to the terms of such Securities as provided for by the terms of such
series, provided that such Securities have not been previously so credited. Such
Securities shall be received and credited for such purpose by the Trustee at the
redemption price specified in such Securities for redemption through operation
of the sinking fund and the amount of such sinking fund payment shall be reduced
accordingly.

     SECTION 3.06 REDEMPTION OF SECURITIES FOR SINKING FUND.

     Not less than 45 days prior to each sinking fund payment date for any
series of Securities (unless a shorter period shall be satisfactory to the
Trustee), the Company will deliver to the Trustee an Officers' Certificate
specifying the amount of the next ensuing sinking fund payment for that series
pursuant to the terms of the series, the portion thereof, if any, that is to be
satisfied

                                      -16-

<PAGE>

by delivering and crediting Securities of that series pursuant to Section 3.05
and the basis for such credit and will, together with such Officers'
Certificate, deliver to the Trustee any Securities to be so delivered. Not less
than 30 days before each such sinking fund payment date the Trustee shall select
the Securities to be redeemed upon such sinking fund payment date in the manner
specified in Section 3.02 and cause notice of the redemption thereof to be given
in the name of and at the expense of the Company in the manner provided in
Section 3.02. Such notice having been duly given, the redemption of such
Securities shall be made upon the terms and in the manner stated in Section
3.03.

                                    ARTICLE 4

                                    COVENANTS

     SECTION 4.01 PAYMENT OF PRINCIPAL, PREMIUM AND INTEREST.

     The Company will duly and punctually pay or cause to be paid the principal
of (and premium, if any) and interest on the Securities of that series at the
time and place and in the manner provided herein and established with respect to
such Securities.

     SECTION 4.02 MAINTENANCE OF OFFICE OR AGENCY.

     So long as any series of the Securities remain Outstanding, the Company
agrees to maintain an office or agency in the Borough of Manhattan, the City and
State of New York, with respect to each such series and at such other location
or locations as may be designated as provided in this Section 4.02, where (i)
Securities of that series may be presented for payment, (ii) Securities of that
series may be presented as herein above authorized for registration of transfer
and exchange, and (iii) notices and demands to or upon the Company in respect of
the Securities of that series and this Indenture may be given or served, such
designation to continue with respect to such office or agency until the Company
shall, by written notice signed by any officer authorized to sign an Officers'
Certificate and delivered to the Trustee, designate some other office or agency
for such purposes or any of them. If at any time the Company shall fail to
maintain any such required office or agency or shall fail to furnish the Trustee
with the address thereof, such presentations, notices and demands may be made or
served at the Corporate Trust Office of the Trustee, and the Company hereby
appoints the Trustee as its agent to receive all such presentations, notices and
demands. The Company initially appoints the Corporate Trust Office of the
Trustee located in the Borough of Manhattan, the City of New York as its paying
agent with respect to the Securities.

     SECTION 4.03 PAYING AGENTS.

          (a) If the Company shall appoint one or more paying agents for all or
any series of the Securities, other than the Trustee, the Company will cause
each such paying agent to execute and deliver to the Trustee an instrument in
which such agent shall agree with the Trustee, subject to the provisions of this
Section:

               (1) that it will hold all sums held by it as such agent for the
payment of the principal of (and premium, if any) or interest on the Securities
of that series (whether such

                                      -17-

<PAGE>

sums have been paid to it by the Company or by any other obligor of such
Securities) in trust for the benefit of the Persons entitled thereto;

               (2) that it will give the Trustee notice of any failure by the
Company (or by any other obligor of such Securities) to make any payment of the
principal of (and premium, if any) or interest on the Securities of that series
when the same shall be due and payable;

               (3) that it will, at any time during the continuance of any
failure referred to in the preceding paragraph (a)(2) above, upon the written
request of the Trustee, forthwith pay to the Trustee all sums so held in trust
by such paying agent; and

               (4) that it will perform all other duties of paying agent as set
forth in this Indenture.

          (b) If the Company shall act as its own paying agent with respect to
any series of the Securities, it will on or before each due date of the
principal of (and premium, if any) or interest on Securities of that series, set
aside, segregate and hold in trust for the benefit of the Persons entitled
thereto a sum sufficient to pay such principal (and premium, if any) or interest
so becoming due on Securities of that series until such sums shall be paid to
such Persons or otherwise disposed of as herein provided and will promptly
notify the Trustee of such action, or any failure (by it or any other obligor on
such Securities) to take such action. Whenever the Company shall have one or
more paying agents for any series of Securities, it will, prior to each due date
of the principal of (and premium, if any) or interest on any Securities of that
series, deposit with the paying agent a sum sufficient to pay the principal (and
premium, if any) or interest so becoming due, such sum to be held in trust for
the benefit of the Persons entitled to such principal, premium or interest, and
(unless such paying agent is the Trustee) the Company will promptly notify the
Trustee of this action or failure so to act.

          (c) Notwithstanding anything in this Section to the contrary, (i) the
agreement to hold sums in trust as provided in this Section is subject to the
provisions of Section 11.05, and (ii) the Company may at any time, for the
purpose of obtaining the satisfaction and discharge of this Indenture or for any
other purpose, pay, or direct any paying agent to pay, to the Trustee all sums
held in trust by the Company or such paying agent, such sums to be held by the
Trustee upon the same terms and conditions as those upon which such sums were
held by the Company or such paying agent; and, upon such payment by the Company
or any paying agent to the Trustee, the Company or such paying agent shall be
released from all further liability with respect to such money.

     SECTION 4.04 APPOINTMENT TO FILL VACANCY IN OFFICE OF TRUSTEE.

     The Company, whenever necessary to avoid or fill a vacancy in the office of
Trustee, will appoint, in the manner provided in Section 7.10, a Trustee, so
that there shall at all times be a Trustee hereunder.

                                      -18-

<PAGE>

     SECTION 4.05 COMPLIANCE WITH CONSOLIDATION PROVISIONS.

     The Company will not, while any of the Securities remain Outstanding,
consolidate with or merge into any other Person, in either case where the
Company is not the survivor of such transaction, or sell or convey all or
substantially all of its property to any other Person unless the provisions of
Article Ten hereof are complied with.

                                    ARTICLE 5

            SECURITYHOLDERS' LISTS AND REPORTS BY THE COMPANY AND THE
                                     TRUSTEE

     SECTION 5.01 COMPANY TO FURNISH TRUSTEE NAMES AND ADDRESSES OF
SECURITYHOLDERS.

     The Company will furnish or cause to be furnished to the Trustee (a) within
15 days after each regular record date (as defined in Section 2.03) a list, in
such form as the Trustee may reasonably require, of the names and addresses of
the holders of each series of Securities as of such regular record date,
provided that the Company shall not be obligated to furnish or cause to furnish
such list at any time that the list shall not differ in any respect from the
most recent list furnished to the Trustee by the Company and (b) at such other
times as the Trustee may request in writing within 30 days after the receipt by
the Company of any such request, a list of similar form and content as of a date
not more than 15 days prior to the time such list is furnished; provided,
however, that, in either case, no such list need be furnished for any series for
which the Trustee shall be the Security Registrar .

     SECTION 5.02 PRESERVATION OF INFORMATION; COMMUNICATIONS WITH
SECURITYHOLDERS.

          (a) The Trustee shall preserve, in as current a form as is reasonably
practicable, all information as to the names and addresses of the holders of
Securities contained in the most recent list furnished to it as provided in
Section 5.01 and as to the names and addresses of holders of Securities received
by the Trustee in its capacity as Security Registrar (if acting in such
capacity).

          (b) The Trustee may destroy any list furnished to it as provided in
Section 5.01 upon receipt of a new list so furnished.

          (c) Securityholders may communicate as provided in Section 312(b) of
the Trust Indenture Act with other Securityholders with respect to their rights
under this Indenture or under the Securities, and, in connection with any such
communications, the Trustee shall satisfy its obligations under Section 312(b)
of the Trust Indenture Act in accordance with the provisions of Section 312(b)
of the Trust Indenture Act.

     SECTION 5.03 REPORTS BY THE COMPANY.

     The Company covenants and agrees to provide a copy to the Trustee, after
the Company is required to file the same with the Securities and Exchange
Commission, copies of the annual

                                      -19-

<PAGE>

reports and of the information, documents and other reports (or copies of such
portions of any of the foregoing as the Securities and Exchange Commission may
from time to time by rules and regulations prescribe) that the Company may be
required to file with the Securities and Exchange Commission pursuant to Section
13 or Section 15(d) of the Exchange Act.

     SECTION 5.04 REPORTS BY THE TRUSTEE.

          (a) On or before July 15 in each year in which any of the Securities
are Outstanding, the Trustee shall transmit by mail, first class postage
prepaid, to the Securityholders, as their names and addresses appear upon the
Security Register, a brief report dated as of the preceding May 15, if and to
the extent required under Section 313(a) of the Trust Indenture Act.

          (b) The Trustee shall comply with Section 313(b) and 313(c) of the
Trust Indenture Act.

          (c) A copy of each such report shall, at the time of such transmission
to Securityholders, be filed by the Trustee with the Company, with each
securities exchange upon which any Securities are listed (if so listed) and also
with the Securities and Exchange Commission. The Company agrees to notify the
Trustee when any Securities become listed on any securities exchange.

                                    ARTICLE 6

             REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF
                                     DEFAULT

     SECTION 6.01 EVENTS OF DEFAULT.

          (a) Whenever used herein with respect to Securities of a particular
series, "Event of Default" means any one or more of the following events that
has occurred and is continuing:

               (1) the Company defaults in the payment of any installment of
interest upon any of the Securities of that series, as and when the same shall
become due and payable, and such default continues for a period of 90 days;
provided, however, that a valid extension of an interest payment period by the
Company in accordance with the terms of any indenture supplemental hereto shall
not constitute a default in the payment of interest for this purpose;

               (2) the Company defaults in the payment of the principal of (or
premium, if any, on) any of the Securities of that series as and when the same
shall become due and payable whether at maturity, upon redemption, by
declaration or otherwise, or in any payment required by any sinking or analogous
fund established with respect to that series; provided, however, that a valid
extension of the maturity of such Securities in accordance with the terms of any
indenture supplemental hereto shall not constitute a default in the payment of
principal or premium, if any;

                                      -20-

<PAGE>

               (3) the Company fails to observe or perform any other of its
covenants or agreements with respect to that series contained in this Indenture
or otherwise established with respect to that series of Securities pursuant to
Section 2.01 hereof (other than a covenant or agreement that has been expressly
included in this Indenture solely for the benefit of one or more series of
Securities other than such series) for a period of 90 days after the date on
which written notice of such failure, requiring the same to be remedied and
stating that such notice is a "Notice of Default" hereunder, shall have been
given to the Company by the Trustee, by registered or certified mail, or to the
Company and the Trustee by the holders of at least 25% in principal amount of
the Securities of that series at the time Outstanding;

               (4) the Company pursuant to or within the meaning of any
Bankruptcy Law (i) commences a voluntary case, (ii) consents to the entry of an
order for relief against it in an involuntary case, (iii) consents to the
appointment of a Custodian of it or for all or substantially all of its property
or (iv) makes a general assignment for the benefit of its creditors; or

               (5) a court of competent jurisdiction enters an order under any
Bankruptcy Law that (i) is for relief against the Company in an involuntary
case, (ii) appoints a Custodian of the Company for all or substantially all of
its property or (iii) orders the liquidation of the Company, and the order or
decree remains unstayed and in effect for 90 days.

          (b) In each and every such case (other than an Event of Default
specified in clause (4) or clause (5) above), unless the principal of all the
Securities of that series shall have already become due and payable, either the
Trustee or the holders of not less than 25% in aggregate principal amount of the
Securities of that series then Outstanding hereunder, by notice in writing to
the Company (and to the Trustee if given by such Securityholders), may declare
the principal of (and premium, if any, on) and accrued and unpaid interest on
all the Securities of that series to be due and payable immediately, and upon
any such declaration the same shall become and shall be immediately due and
payable. If an Event of Default specified in clause (4) or clause (5) above
occurs, the principal of and accrued and unpaid interest on all the Securities
of that series shall automatically be immediately due and payable without any
declaration or other act on the part of the Trustee or the holders of the
Securities.

          (c) At any time after the principal of (and premium, if any, on) and
accrued and unpaid interest on the Securities of that series shall have been so
declared due and payable, and before any judgment or decree for the payment of
the moneys due shall have been obtained or entered as hereinafter provided, the
holders of a majority in aggregate principal amount of the Securities of that
series then Outstanding hereunder, by written notice to the Company and the
Trustee, may rescind and annul such declaration and its consequences if: (i) the
Company has paid or deposited with the Trustee a sum sufficient to pay all
matured installments of interest upon all the Securities of that series and the
principal of (and premium, if any, on) any and all Securities of that series
that shall have become due otherwise than by acceleration (with interest upon
such principal and premium, if any, and, to the extent that such payment is
enforceable under applicable law, upon overdue installments of interest, at the
rate per annum expressed in the Securities of that series to the date of such
payment or deposit) and the amount payable to the Trustee under Section 7.06,
and (ii) any and all Events of Default under the Indenture with respect to such
series, other than the nonpayment of principal on (and premium, if any, on) and

                                      -21-

<PAGE>

accrued and unpaid interest on Securities of that series that shall not have
become due by their terms, shall have been remedied or waived as provided in
Section 6.06.

     No such rescission and annulment shall extend to or shall affect any
subsequent default or impair any right consequent thereon.

          (d) In case the Trustee shall have proceeded to enforce any right with
respect to Securities of that series under this Indenture and such proceedings
shall have been discontinued or abandoned because of such rescission or
annulment or for any other reason or shall have been determined adversely to the
Trustee, then and in every such case, subject to any determination in such
proceedings, the Company and the Trustee shall be restored respectively to their
former positions and rights hereunder, and all rights, remedies and powers of
the Company and the Trustee shall continue as though no such proceedings had
been taken.

     SECTION 6.02 COLLECTION OF INDEBTEDNESS AND SUITS FOR ENFORCEMENT BY
TRUSTEE.

          (a) The Company covenants that (i) in case it shall default in the
payment of any installment of interest on any of the Securities of a series, or
in any payment required by any sinking or analogous fund established with
respect to that series as and when the same shall have become due and payable,
and such default shall have continued for a period of 90 Business Days, or (ii)
in case it shall default in the payment of the principal of (or premium, if any,
on) any of the Securities of a series when the same shall have become due and
payable, whether upon maturity of the Securities of a series or upon redemption
or upon declaration or otherwise then, upon demand of the Trustee, the Company
will pay to the Trustee, for the benefit of the holders of the Securities of
that series, the whole amount that then shall have been become due and payable
on all such Securities for principal (and premium, if any) or interest, or both,
as the case may be, with interest upon the overdue principal (and premium, if
any) and (to the extent that payment of such interest is enforceable under
applicable law) upon overdue installments of interest at the rate per annum
expressed in the Securities of that series; and, in addition thereto, such
further amount as shall be sufficient to cover the costs and expenses of
collection, and the amount payable to the Trustee under Section 7.06.

          (b) If the Company shall fail to pay such amounts forthwith upon such
demand, the Trustee, in its own name and as trustee of an express trust, shall
be entitled and empowered to institute any action or proceedings at law or in
equity for the collection of the sums so due and unpaid, and may prosecute any
such action or proceeding to judgment or final decree, and may enforce any such
judgment or final decree against the Company or other obligor upon the
Securities of that series and collect the moneys adjudged or decreed to be
payable in the manner provided by law or equity out of the property of the
Company or other obligor upon the Securities of that series, wherever situated.

          (c) In case of any receivership, insolvency, liquidation, bankruptcy,
reorganization, readjustment, arrangement, composition or judicial proceedings
affecting the Company, or its creditors or property, the Trustee shall have
power to intervene in such proceedings and take any action therein that may be
permitted by the court and shall (except as may be otherwise provided by law) be
entitled to file such proofs of claim and other papers and

                                      -22-

<PAGE>

documents as may be necessary or advisable in order to have the claims of the
Trustee and of the holders of Securities of such series allowed for the entire
amount due and payable by the Company under the Indenture at the date of
institution of such proceedings and for any additional amount that may become
due and payable by the Company after such date, and to collect and receive any
moneys or other property payable or deliverable on any such claim, and to
distribute the same after the deduction of the amount payable to the Trustee
under Section 7.06; and any receiver, assignee or trustee in bankruptcy or
reorganization is hereby authorized by each of the holders of Securities of such
series to make such payments to the Trustee, and, in the event that the Trustee
shall consent to the making of such payments directly to such Securityholders,
to pay to the Trustee any amount due it under Section 7.06.

          (d) All rights of action and of asserting claims under this Indenture,
or under any of the terms established with respect to Securities of that series,
may be enforced by the Trustee without the possession of any of such Securities,
or the production thereof at any trial or other proceeding relative thereto, and
any such suit or proceeding instituted by the Trustee shall be brought in its
own name as trustee of an express trust, and any recovery of judgment shall,
after provision for payment to the Trustee of any amounts due under Section
7.06, be for the ratable benefit of the holders of the Securities of such
series.

     In case of an Event of Default hereunder, the Trustee may in its discretion
proceed to protect and enforce the rights vested in it by this Indenture by such
appropriate judicial proceedings as the Trustee shall deem most effectual to
protect and enforce any of such rights, either at law or in equity or in
bankruptcy or otherwise, whether for the specific enforcement of any covenant or
agreement contained in the Indenture or in aid of the exercise of any power
granted in this Indenture, or to enforce any other legal or equitable right
vested in the Trustee by this Indenture or by law.

     Nothing contained herein shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Securityholder any
plan of reorganization, arrangement, adjustment or composition affecting the
Securities of that series or the rights of any holder thereof or to authorize
the Trustee to vote in respect of the claim of any Securityholder in any such
proceeding.

     SECTION 6.03 APPLICATION OF MONEYS COLLECTED.

     Any moneys collected by the Trustee pursuant to this Article with respect
to a particular series of Securities shall be applied in the following order, at
the date or dates fixed by the Trustee and, in case of the distribution of such
moneys on account of principal (or premium, if any) or interest, upon
presentation of the Securities of that series, and notation thereon of the
payment, if only partially paid, and upon surrender thereof if fully paid:

     FIRST: To the payment of all indebtedness of the Company to which such
series of Securities is subordinated to the extent required by Section 7.06 and
Article Fourteen;

     SECOND: To the payment of the amounts then due and unpaid upon Securities
of such series for principal (and premium, if any) and interest, in respect of
which or for the benefit of which such money has been collected, ratably,
without preference or priority of any kind,

                                      -23-

<PAGE>

according to the amounts due and payable on such Securities for principal (and
premium, if any) and interest, respectively; and

     THIRD: To the payment of the remainder, if any, to the Company or any other
Person lawfully entitled thereto.

     SECTION 6.04 LIMITATION ON SUITS.

     No holder of any Security of any series shall have any right by virtue or
by availing of any provision of this Indenture to institute any suit, action or
proceeding in equity or at law upon or under or with respect to this Indenture
or for the appointment of a receiver or trustee, or for any other remedy
hereunder, unless (i) such holder previously shall have given to the Trustee
written notice of an Event of Default and of the continuance thereof with
respect to the Securities of such series specifying such Event of Default, as
hereinbefore provided; (ii) the holders of not less than 25% in aggregate
principal amount of the Securities of such series then Outstanding shall have
made written request upon the Trustee to institute such action, suit or
proceeding in its own name as Trustee hereunder; (iii) such holder or holders
shall have offered to the Trustee such reasonable indemnity as it may require
against the costs, expenses and liabilities to be incurred therein or thereby;
(iv) the Trustee for 90 days after its receipt of such notice, request and offer
of indemnity, shall have failed to institute any such action, suit or proceeding
and (v) during such 90 day period, the holders of a majority in principal amount
of the Securities of that series do not give the Trustee a direction
inconsistent with the request.

     Notwithstanding anything contained herein to the contrary or any other
provisions of this Indenture, the right of any holder of any Security to receive
payment of the principal of (and premium, if any) and interest on such Security,
as therein provided, on or after the respective due dates expressed in such
Security (or in the case of redemption, on the redemption date), or to institute
suit for the enforcement of any such payment on or after such respective dates
or redemption date, shall not be impaired or affected without the consent of
such holder and by accepting a Security hereunder it is expressly understood,
intended and covenanted by the taker and holder of every Security of such series
with every other such taker and holder and the Trustee, that no one or more
holders of Securities of such series shall have any right in any manner
whatsoever by virtue or by availing of any provision of this Indenture to
affect, disturb or prejudice the rights of the holders of any other of such
Securities, or to obtain or seek to obtain priority over or preference to any
other such holder, or to enforce any right under this Indenture, except in the
manner herein provided and for the equal, ratable and common benefit of all
holders of Securities of such series. For the protection and enforcement of the
provisions of this Section, each and every Securityholder and the Trustee shall
be entitled to such relief as can be given either at law or in equity.

     SECTION 6.05 RIGHTS AND REMEDIES CUMULATIVE; DELAY OR OMISSION NOT WAIVER.

          (a) Except as otherwise provided in Section 2.07, all powers and
remedies given by this Article to the Trustee or to the Securityholders shall,
to the extent permitted by law, be deemed cumulative and not exclusive of any
other powers and remedies available to the Trustee or the holders of the
Securities, by judicial proceedings or otherwise, to enforce the

                                      -24-

<PAGE>

performance or observance of the covenants and agreements contained in this
Indenture or otherwise established with respect to such Securities.

          (b) No delay or omission of the Trustee or of any holder of any of the
Securities to exercise any right or power accruing upon any Event of Default
occurring and continuing as aforesaid shall impair any such right or power, or
shall be construed to be a waiver of any such default or an acquiescence
therein; and, subject to the provisions of Section 6.04, every power and remedy
given by this Article or by law to the Trustee or the Securityholders may be
exercised from time to time, and as often as shall be deemed expedient, by the
Trustee or by the Securityholders.

     SECTION 6.06 CONTROL BY SECURITYHOLDERS.

     The holders of a majority in aggregate principal amount of the Securities
of any series at the time Outstanding, determined in accordance with Section
8.04, shall have the right to direct the time, method and place of conducting
any proceeding for any remedy available to the Trustee, or exercising any trust
or power conferred on the Trustee with respect to such series; provided,
however, that such direction shall not be in conflict with any rule of law or
with this Indenture. Subject to the provisions of Section 7.01, the Trustee
shall have the right to decline to follow any such direction if the Trustee in
good faith shall, by a Responsible Officer or officers of the Trustee, determine
that the proceeding so directed, subject to the Trustee's duties under the Trust
Indenture Act, would involve the Trustee in personal liability or might be
unduly prejudicial to the Securityholders not involved in the proceeding. The
holders of a majority in aggregate principal amount of the Securities of any
series at the time Outstanding affected thereby, determined in accordance with
Section 8.04, may on behalf of the holders of all of the Securities of such
series waive any past default in the performance of any of the covenants
contained herein or established pursuant to Section 2.01 with respect to such
series and its consequences, except a default in the payment of the principal
of, or premium, if any, or interest on, any of the Securities of that series as
and when the same shall become due by the terms of such Securities otherwise
than by acceleration (unless such default has been cured and a sum sufficient to
pay all matured installments of interest and principal and any premium has been
deposited with the Trustee (in accordance with Section 6.01(c)). Upon any such
waiver, the default covered thereby shall be deemed to be cured for all purposes
of this Indenture and the Company, the Trustee and the holders of the Securities
of such series shall be restored to their former positions and rights hereunder,
respectively; but no such waiver shall extend to any subsequent or other default
or impair any right consequent thereon.

     SECTION 6.07 UNDERTAKING TO PAY COSTS.

     All parties to this Indenture agree, and each holder of any Securities by
such holder's acceptance thereof shall be deemed to have agreed, that any court
may in its discretion require, in any suit for the enforcement of any right or
remedy under this Indenture, or in any suit against the Trustee for any action
taken or omitted by it as Trustee, the filing by any party litigant in such suit
of an undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys' fees,
against any party litigant in such suit, having due regard to the merits and
good faith of the claims or defenses made by such party litigant; but the
provisions of this Section shall not apply to any suit instituted by the
Trustee, to

                                      -25-

<PAGE>

any suit instituted by any Securityholder, or group of Securityholders, holding
more than 10% in aggregate principal amount of the Outstanding Securities of any
series, or to any suit instituted by any Securityholder for the enforcement of
the payment of the principal of (or premium, if any) or interest on any Security
of such series, on or after the respective due dates expressed in such Security
or established pursuant to this Indenture.

                                    ARTICLE 7

                             CONCERNING THE TRUSTEE

     SECTION 7.01 CERTAIN DUTIES AND RESPONSIBILITIES OF TRUSTEE.

          (a) The Trustee, prior to the occurrence of an Event of Default with
respect to the Securities of a series and after the curing of all Events of
Default with respect to the Securities of that series that may have occurred,
shall undertake to perform with respect to the Securities of such series such
duties and only such duties as are specifically set forth in this Indenture, and
no implied covenants shall be read into this Indenture against the Trustee. In
case an Event of Default with respect to the Securities of a series has occurred
(that has not been cured or waived), the Trustee shall exercise with respect to
Securities of that series such of the rights and powers vested in it by this
Indenture, and use the same degree of care and skill in their exercise, as a
prudent man would exercise or use under the circumstances in the conduct of his
own affairs.

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

          (i) prior to the occurrence of an Event of Default with respect to the
Securities of a series and after the curing or waiving of all such Events of
Default with respect to that series that may have occurred:

               (A) the duties and obligations of the Trustee shall with respect
to the Securities of such series be determined solely by the express provisions
of this Indenture, and the Trustee shall not be liable with respect to the
Securities of such series except for the performance of such duties and
obligations as are specifically set forth in this Indenture, and no implied
covenants or obligations shall be read into this Indenture against the Trustee;
and

               (B) in the absence of bad faith on the part of the Trustee, the
Trustee may with respect to the Securities of such series conclusively rely, as
to the truth of the statements and the correctness of the opinions expressed
therein, upon any certificates or opinions furnished to the Trustee and
conforming to the requirements of this Indenture; but in the case of any such
certificates or opinions that by any provision hereof are specifically required
to be furnished to the Trustee, the Trustee shall be under a duty to examine the
same to determine whether or not they conform to the requirement of this
Indenture;

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

                                      -26-

<PAGE>

          (iii) the Trustee shall not be liable with respect to any action taken
or omitted to be taken by it in good faith in accordance with the direction of
the holders of not less than a majority in principal amount of the Securities of
any series at the time Outstanding relating to the time, method and place of
conducting any proceeding for any remedy available to the Trustee, or exercising
any trust or power conferred upon the Trustee under this Indenture with respect
to the Securities of that series; and

          (iv) None of the provisions contained in this Indenture shall require
the Trustee to expend or risk its own funds or otherwise incur personal
financial liability in the performance of any of its duties or in the exercise
of any of its rights or powers if there is reasonable ground for believing that
the repayment of such funds or liability is not reasonably assured to it under
the terms of this Indenture or adequate indemnity against such risk is not
reasonably assured to it.

     SECTION 7.02 CERTAIN RIGHTS OF TRUSTEE.

     Except as otherwise provided in Section 7.01:

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

          (b) Any request, direction, order or demand of the Company mentioned
herein shall be sufficiently evidenced by a Board Resolution or an instrument
signed in the name of the Company by any authorized officer of the Company
(unless other evidence in respect thereof is specifically prescribed herein);

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

          (d) The Trustee shall be under no obligation to exercise any of the
rights or powers vested in it by this Indenture at the request, order or
direction of any of the Securityholders pursuant to the provisions of this
Indenture, unless such Securityholders shall have offered to the Trustee
reasonable security or indemnity against the costs, expenses and liabilities
that may be incurred therein or thereby; nothing contained herein shall,
however, relieve the Trustee of the obligation, upon the occurrence of an Event
of Default with respect to a series of the Securities (that has not been cured
or waived), to exercise with respect to Securities of that series such of the
rights and powers vested in it by this Indenture, and to use the same degree of
care and skill in their exercise, as a prudent man would exercise or use under
the circumstances in the conduct of his own affairs;

          (e) The Trustee shall not be liable for any action taken or omitted to
be taken by it in good faith and believed by it to be authorized or within the
discretion or rights or powers conferred upon it by this Indenture;

                                      -27-
<PAGE>

          (f) The Trustee shall not be bound to make any investigation into the
facts or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, consent, order, approval, bond, security, or
other papers or documents, unless requested in writing so to do by the holders
of not less than a majority in principal amount of the Outstanding Securities of
the particular series affected thereby (determined as provided in Section 8.04);
provided, however, that if the payment within a reasonable time to the Trustee
of the costs, expenses or liabilities likely to be incurred by it in the making
of such investigation is, in the opinion of the Trustee, not reasonably assured
to the Trustee by the security afforded to it by the terms of this Indenture,
the Trustee may require reasonable indemnity against such costs, expenses or
liabilities as a condition to so proceeding. The reasonable expense of every
such examination shall be paid by the Company or, if paid by the Trustee, shall
be repaid by the Company upon demand; and

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

     In addition, the Trustee shall not be deemed to have knowledge of any
Default or Event of Default except (1) any Event of Default occurring pursuant
to Sections 6.01(a)(1), 6.01(a)(2) and 4.01 hereof or (2) any Default or Event
of Default of which the Trustee shall have received written notification in the
manner set forth in this Indenture or a Responsible Officer of the Trustee shall
have obtained actual knowledge. Delivery of reports, information and documents
to the Trustee under Section 5.03 is for informational purposes only and the
information and the Trustee's receipt of the foregoing shall not constitute
constructive notice of any information contained therein, or determinable from
information contained therein including the Company's compliance with any of
their covenants thereunder (as to which the Trustee is entitled to rely
exclusively on an Officers' Certificate).

     SECTION 7.03 TRUSTEE NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OR
SECURITIES.

          (a) The recitals contained herein and in the Securities shall be taken
as the statements of the Company, and the Trustee assumes no responsibility for
the correctness of the same.

          (b) The Trustee makes no representations as to the validity or
sufficiency of this Indenture or of the Securities.

          (c) The Trustee shall not be accountable for the use or application by
the Company of any of the Securities or of the proceeds of such Securities, or
for the use or application of any moneys paid over by the Trustee in accordance
with any provision of this Indenture or established pursuant to Section 2.01, or
for the use or application of any moneys received by any paying agent other than
the Trustee.

                                      -28-

<PAGE>

     SECTION 7.04 MAY HOLD SECURITIES.

     The Trustee or any paying agent or Security Registrar, in its individual or
any other capacity, may become the owner or pledgee of Securities with the same
rights it would have if it were not Trustee, paying agent or Security Registrar.

     SECTION 7.05 MONEYS HELD IN TRUST.

     Subject to the provisions of Section 11.05, all moneys received by the
Trustee shall, until used or applied as herein provided, be held in trust for
the purposes for which they were received, but need not be segregated from other
funds except to the extent required by law. The Trustee shall be under no
liability for interest on any moneys received by it hereunder except such as it
may agree with the Company to pay thereon.

     SECTION 7.06 COMPENSATION AND REIMBURSEMENT.

          (a) The Company covenants and agrees to pay to the Trustee, and the
Trustee shall be entitled to, such reasonable compensation (which shall not be
limited by any provision of law in regard to the compensation of a trustee of an
express trust) as the Company and the Trustee may from time to time agree in
writing, for all services rendered by it in the execution of the trusts hereby
created and in the exercise and performance of any of the powers and duties
hereunder of the Trustee, and, except as otherwise expressly provided herein,
the Company will pay or reimburse the Trustee upon its request for all
reasonable expenses, disbursements and advances incurred or made by the Trustee
in accordance with any of the provisions of this Indenture (including the
reasonable compensation and the expenses and disbursements of its counsel and of
all Persons not regularly in its employ), except any such expense, disbursement
or advance as may arise from its negligence or bad faith and except as the
Company and Trustee may from time to time agree in writing. The Company also
covenants to indemnify the Trustee (and its officers, agents, directors and
employees) for, and to hold it harmless against, any loss, liability or expense
incurred without negligence or bad faith on the part of the Trustee and arising
out of or in connection with the acceptance or administration of this trust,
including the reasonable costs and expenses of defending itself against any
claim of liability in the premises.

          (b) The obligations of the Company under this Section to compensate
and indemnify the Trustee and to pay or reimburse the Trustee for reasonable
expenses, disbursements and advances shall constitute indebtedness of the
Company to which the Securities are subordinated. Such additional indebtedness
shall be secured by a lien prior to that of the Securities upon all property and
funds held or collected by the Trustee as such, except funds held in trust for
the benefit of the holders of particular Securities.

     SECTION 7.07 RELIANCE ON OFFICERS' CERTIFICATE.

     Except as otherwise provided in Section 7.01, whenever in the
administration of the provisions of this Indenture the Trustee shall deem it
reasonably necessary or desirable that a matter be proved or established prior
to taking or suffering or omitting to take any action hereunder, such matter
(unless other evidence in respect thereof be herein specifically prescribed)
may, in the absence of negligence or bad faith on the part of the Trustee, be
deemed to be conclusively proved and established by an Officers' Certificate
delivered to the Trustee and

                                      -29-

<PAGE>

such certificate, in the absence of negligence or bad faith on the part of the
Trustee, shall be full warrant to the Trustee for any action taken, suffered or
omitted to be taken by it under the provisions of this Indenture upon the faith
thereof.

     SECTION 7.08 DISQUALIFICATION; CONFLICTING INTERESTS.

     If the Trustee has or shall acquire any "conflicting interest" within the
meaning of Section 310(b) of the Trust Indenture Act, the Trustee and the
Company shall in all respects comply with the provisions of Section 310(b) of
the Trust Indenture Act.

     SECTION 7.09 CORPORATE TRUSTEE REQUIRED; ELIGIBILITY.

     There shall at all times be a Trustee with respect to the Securities issued
hereunder which shall at all times be a corporation organized and doing business
under the laws of the United States of America or any state or territory thereof
or of the District of Columbia, or a corporation or other Person permitted to
act as trustee by the Securities and Exchange Commission, authorized under such
laws to exercise corporate trust powers, having a combined capital and surplus
of at least fifty million U.S. dollars ($50,000,000), and subject to supervision
or examination by federal, state, territorial, or District of Columbia
authority.

     If such corporation or other Person publishes reports of condition at least
annually, pursuant to law or to the requirements of the aforesaid supervising or
examining authority, then for the purposes of this Section, the combined capital
and surplus of such corporation or other Person shall be deemed to be its
combined capital and surplus as set forth in its most recent report of condition
so published. The Company may not, nor may any Person directly or indirectly
controlling, controlled by, or under common control with the Company, serve as
Trustee. In case at any time the Trustee shall cease to be eligible in
accordance with the provisions of this Section, the Trustee shall resign
immediately in the manner and with the effect specified in Section 7.10.

     SECTION 7.10 RESIGNATION AND REMOVAL; APPOINTMENT OF SUCCESSOR.

          (a) The Trustee or any successor hereafter appointed may at any time
resign with respect to the Securities of one or more series by giving written
notice thereof to the Company and by transmitting notice of resignation by mail,
first class postage prepaid, to the Securityholders of such series, as their
names and addresses appear upon the Security Register.

     Upon receiving such notice of resignation, the Company shall promptly
appoint a successor trustee with respect to Securities of such series by written
instrument, in duplicate, executed by order of the Board of Directors, one copy
of which instrument shall be delivered to the resigning Trustee and one copy to
the successor trustee. If no successor trustee shall have been so appointed and
have accepted appointment within 30 days after the mailing of such notice of
resignation, the resigning Trustee may petition any court of competent
jurisdiction for the appointment of a successor trustee with respect to
Securities of such series, or any Securityholder of that series who has been a
bona fide holder of a Security or Securities for at least six months may on
behalf of himself and all others similarly situated, petition any such court for
the

                                      -30-

<PAGE>

appointment of a successor trustee. Such court may thereupon after such notice,
if any, as it may deem proper and prescribe, appoint a successor trustee.

          (b) In case at any time any one of the following shall occur:

          (i) the Trustee shall fail to comply with the provisions of Section
7.08 after written request therefor by the Company or by any Securityholder who
has been a bona fide holder of a Security or Securities for at least six months;
or

          (ii) the Trustee shall cease to be eligible in accordance with the
provisions of Section 7.09 and shall fail to resign after written request
therefor by the Company or by any such Securityholder; or

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

     then, in any such case, the Company may remove the Trustee with respect to
all Securities and appoint a successor trustee by written instrument, in
duplicate, executed by order of the Board of Directors, one copy of which
instrument shall be delivered to the Trustee so removed and one copy to the
successor trustee, or any Securityholder who has been a bona fide holder of a
Security or Securities for at least six months may, on behalf of that holder and
all others similarly situated, petition any court of competent jurisdiction for
the removal of the Trustee and the appointment of a successor trustee. Such
court may thereupon after such notice, if any, as it may deem proper and
prescribe, remove the Trustee and appoint a successor trustee.

          (c) The holders of a majority in aggregate principal amount of the
Securities of any series at the time Outstanding may at any time remove the
Trustee with respect to such series by so notifying the Trustee and the Company
and may appoint a successor Trustee for such series with the consent of the
Company.

          (d) Any resignation or removal of the Trustee and appointment of a
successor trustee with respect to the Securities of a series pursuant to any of
the provisions of this Section shall become effective upon acceptance of
appointment by the successor trustee as provided in Section 7.11.

          (e) Any successor trustee appointed pursuant to this Section may be
appointed with respect to the Securities of one or more series or all of such
series, and at any time there shall be only one Trustee with respect to the
Securities of any particular series.

     SECTION 7.11 ACCEPTANCE OF APPOINTMENT BY SUCCESSOR.

          (a) In case of the appointment hereunder of a successor trustee with
respect to all Securities, every such successor trustee so appointed shall
execute, acknowledge and deliver to the Company and to the retiring Trustee an
instrument accepting such appointment, and thereupon the resignation or removal
of the retiring Trustee shall become effective and such

                                      -31-

<PAGE>

successor trustee, without any further act, deed or conveyance, shall become
vested with all the rights, powers, trusts and duties of the retiring Trustee;
but, on the request of the Company or the successor trustee, such retiring
Trustee shall, upon payment of its charges, execute and deliver an instrument
transferring to such successor trustee all the rights, powers, and trusts of the
retiring Trustee and shall duly assign, transfer and deliver to such successor
trustee all property and money held by such retiring Trustee hereunder.

          (b) In case of the appointment hereunder of a successor trustee with
respect to the Securities of one or more (but not all) series, the Company, the
retiring Trustee and each successor trustee with respect to the Securities of
one or more series shall execute and deliver an indenture supplemental hereto
wherein each successor trustee shall accept such appointment and which (i) shall
contain such provisions as shall be necessary or desirable to transfer and
confirm to, and to vest in, each successor trustee all the rights, powers,
trusts and duties of the retiring Trustee with respect to the Securities of that
or those series to which the appointment of such successor trustee relates, (ii)
shall contain such provisions as shall be deemed necessary or desirable to
confirm that all the rights, powers, trusts and duties of the retiring Trustee
with respect to the Securities of that or those series as to which the retiring
Trustee is not retiring shall continue to be vested in the retiring Trustee, and
(iii) shall add to or change any of the provisions of this Indenture as shall be
necessary to provide for or facilitate the administration of the trusts
hereunder by more than one Trustee, it being understood that nothing herein or
in such supplemental indenture shall constitute such Trustees co-trustees of the
same trust, that each such Trustee shall be trustee of a trust or trusts
hereunder separate and apart from any trust or trusts hereunder administered by
any other such Trustee and that no Trustee shall be responsible for any act or
failure to act on the part of any other Trustee hereunder; and upon the
execution and delivery of such supplemental indenture the resignation or removal
of the retiring Trustee shall become effective to the extent provided therein,
such retiring Trustee shall with respect to the Securities of that or those
series to which the appointment of such successor trustee relates have no
further responsibility for the exercise of rights and powers or for the
performance of the duties and obligations vested in the Trustee under this
Indenture, and each such successor trustee, without any further act, deed or
conveyance, shall become vested with all the rights, powers, trusts and duties
of the retiring Trustee with respect to the Securities of that or those series
to which the appointment of such successor trustee relates; but, on request of
the Company or any successor trustee, such retiring Trustee shall duly assign,
transfer and deliver to such successor trustee, to the extent contemplated by
such supplemental indenture, the property and money held by such retiring
Trustee hereunder with respect to the Securities of that or those series to
which the appointment of such successor trustee relates.

          (c) Upon request of any such successor trustee, the Company shall
execute any and all instruments for more fully and certainly vesting in and
confirming to such successor trustee all such rights, powers and trusts referred
to in paragraph (a) or (b) of this Section, as the case may be.

          (d) No successor trustee shall accept its appointment unless at the
time of such acceptance such successor trustee shall be qualified and eligible
under this Article.

          (e) Upon acceptance of appointment by a successor trustee as provided
in this Section, the Company shall transmit notice of the succession of such
trustee hereunder by mail,

                                      -32-

<PAGE>

first class postage prepaid, to the Securityholders, as their names and
addresses appear upon the Security Register. If the Company fails to transmit
such notice within ten days after acceptance of appointment by the successor
trustee, the successor trustee shall cause such notice to be transmitted at the
expense of the Company.

     SECTION 7.12 MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO BUSINESS.

     Any corporation into which the Trustee may be merged or converted or with
which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any
corporation succeeding to the corporate trust business of the Trustee, shall be
the successor of the Trustee hereunder, provided that such corporation shall be
qualified under the provisions of Section 7.08 and eligible under the provisions
of Section 7.09, without the execution or filing of any paper or any further act
on the part of any of the parties hereto, anything herein to the contrary
notwithstanding. In case any Securities shall have been authenticated, but not
delivered, by the Trustee then in office, any successor by merger, conversion or
consolidation to such authenticating Trustee may adopt such authentication and
deliver the Securities so authenticated with the same effect as if such
successor Trustee had itself authenticated such Securities.

     SECTION 7.13 PREFERENTIAL COLLECTION OF CLAIMS AGAINST THE COMPANY.

     The Trustee shall comply with Section 311(a) of the Trust Indenture Act,
excluding any creditor relationship described in Section 311(b) of the Trust
Indenture Act. A Trustee who has resigned or been removed shall be subject to
Section 311(a) of the Trust Indenture Act to the extent included therein.

     SECTION 7.14 NOTICE OF DEFAULT

     If any Default or any Event of Default occurs and is continuing and if such
Default or Event of Default is known to a Responsible Officer of the Trustee,
the Trustee shall mail to each Securityholder in the manner and to the extent
provided in Section 313(c) of the Trust Indenture Act notice of the Default or
Event of Default within 45 days after it occurs, unless such Default or Event of
Default has been cured; provided, however, that, except in the case of a default
in the payment of the principal of (or premium, if any) or interest on any
Security, the Trustee shall be protected in withholding such notice if and so
long as the board of directors, the executive committee or a trust committee of
directors and/or Responsible Officers of the Trustee in good faith determine
that the withholding of such notice is in the interest of the Securityholders.

                                    ARTICLE 8

                         CONCERNING THE SECURITYHOLDERS

     SECTION 8.01 EVIDENCE OF ACTION BY SECURITYHOLDERS.

     Whenever in this Indenture it is provided that the holders of a majority or
specified percentage in aggregate principal amount of the Securities of a
particular series may take any

                                      -33-

<PAGE>

action (including the making of any demand or request, the giving of any notice,
consent or waiver or the taking of any other action), the fact that at the time
of taking any such action the holders of such majority or specified percentage
of that series have joined therein may be evidenced by any instrument or any
number of instruments of similar tenor executed by such holders of Securities of
that series in person or by agent or proxy appointed in writing.

     If the Company shall solicit from the Securityholders of any series any
request, demand, authorization, direction, notice, consent, waiver or other
action, the Company may, at its option, as evidenced by an Officers'
Certificate, fix in advance a record date for such series for the determination
of Securityholders entitled to give such request, demand, authorization,
direction, notice, consent, waiver or other action, but the Company shall have
no obligation to do so. If such a record date is fixed, such request, demand,
authorization, direction, notice, consent, waiver or other action may be given
before or after the record date, but only the Securityholders of record at the
close of business on the record date shall be deemed to be Securityholders for
the purposes of determining whether Securityholders of the requisite proportion
of Outstanding Securities of that series have authorized or agreed or consented
to such request, demand, authorization, direction, notice, consent, waiver or
other action, and for that purpose the Outstanding Securities of that series
shall be computed as of the record date; provided, however, that no such
authorization, agreement or consent by such Securityholders on the record date
shall be deemed effective unless it shall become effective pursuant to the
provisions of this Indenture not later than six months after the record date.

     SECTION 8.02 PROOF OF EXECUTION BY SECURITYHOLDERS.

     Subject to the provisions of Section 7.01, proof of the execution of any
instrument by a Securityholder (such proof will not require notarization) or his
agent or proxy and proof of the holding by any Person of any of the Securities
shall be sufficient if made in the following manner:

          (a) The fact and date of the execution by any such Person of any
instrument may be proved in any reasonable manner acceptable to the Trustee.

The ownership of Securities shall be proved by the Security Register of such
Securities or by a certificate of the Security Registrar thereof.

     The Trustee may require such additional proof of any matter referred to in
this Section as it shall deem necessary.

     SECTION 8.03 WHO MAY BE DEEMED OWNERS.

     Prior to the due presentment for registration of transfer of any Security,
the Company, the Trustee, any paying agent and any Security Registrar may deem
and treat the Person in whose name such Security shall be registered upon the
books of the Company as the absolute owner of such Security (whether or not such
Security shall be overdue and notwithstanding any notice of ownership or writing
thereon made by anyone other than the Security Registrar) for the purpose of
receiving payment of or on account of the principal of, premium, if any, and
(subject to Section 2.03) interest on such Security and for all other purposes;
and neither the Company nor

                                      -34-

<PAGE>

the Trustee nor any paying agent nor any Security Registrar shall be affected by
any notice to the contrary.

     SECTION 8.04 CERTAIN SECURITIES OWNED BY COMPANY DISREGARDED.

     In determining whether the holders of the requisite aggregate principal
amount of Securities of a particular series have concurred in any direction,
consent or waiver under this Indenture, the Securities of that series that are
owned by the Company or any other obligor on the Securities of that series or by
any Person directly or indirectly controlling or controlled by or under common
control with the Company or any other obligor on the Securities of that series
shall be disregarded and deemed not to be Outstanding for the purpose of any
such determination, except that for the purpose of determining whether the
Trustee shall be protected in relying on any such direction, consent or waiver,
only Securities of such series that the Trustee actually knows are so owned
shall be so disregarded. The Securities so owned that have been pledged in good
faith may be regarded as Outstanding for the purposes of this Section, if the
pledgee shall establish to the satisfaction of the Trustee the pledgee's right
so to act with respect to such Securities and that the pledgee is not a Person
directly or indirectly controlling or controlled by or under direct or indirect
common control with the Company or any such other obligor. In case of a dispute
as to such right, any decision by the Trustee taken upon the advice of counsel
shall be full protection to the Trustee.

     SECTION 8.05 ACTIONS BINDING ON FUTURE SECURITYHOLDERS.

     At any time prior to (but not after) the evidencing to the Trustee, as
provided in Section 8.01, of the taking of any action by the holders of the
majority or percentage in aggregate principal amount of the Securities of a
particular series specified in this Indenture in connection with such action,
any holder of a Security of that series that is shown by the evidence to be
included in the Securities the holders of which have consented to such action
may, by filing written notice with the Trustee, and upon proof of holding as
provided in Section 8.02, revoke such action so far as concerns such Security.
Except as aforesaid any such action taken by the holder of any Security shall be
conclusive and binding upon such holder and upon all future holders and owners
of such Security, and of any Security issued in exchange therefor, on
registration of transfer thereof or in place thereof, irrespective of whether or
not any notation in regard thereto is made upon such Security. Any action taken
by the holders of the majority or percentage in aggregate principal amount of
the Securities of a particular series specified in this Indenture in connection
with such action shall be conclusively binding upon the Company, the Trustee and
the holders of all the Securities of that series.

                                      -35-

<PAGE>

                                    ARTICLE 9

                             SUPPLEMENTAL INDENTURES

     SECTION 9.01 SUPPLEMENTAL INDENTURES WITHOUT THE CONSENT OF
SECURITYHOLDERS.

     In addition to any supplemental indenture otherwise authorized by this
Indenture, the Company and the Trustee may from time to time and at any time
enter into an indenture or indentures supplemental hereto (which shall conform
to the provisions of the Trust Indenture Act as then in effect), without the
consent of the Securityholders, for one or more of the following purposes:

          (a) to cure any ambiguity, defect, or inconsistency herein or in the
Securities of any series;

          (b) to comply with Article Ten;

          (c) to provide for uncertificated Securities in addition to or in
place of certificated Securities;

          (d) to add to the covenants, restrictions, conditions or provisions
relating to the Company for the benefit of the holders of all or any series of
Securities (and if such covenants, restrictions, conditions or provisions are to
be for the benefit of less than all series of Securities, stating that such
covenants, restrictions, conditions or provisions are expressly being included
solely for the benefit of such series), to make the occurrence, or the
occurrence and the continuance, of a default in any such additional covenants,
restrictions, conditions or provisions an Event of Default, or to surrender any
right or power herein conferred upon the Company;

          (e) to add to, delete from, or revise the conditions, limitations, and
restrictions on the authorized amount, terms, or purposes of issue,
authentication, and delivery of Securities, as herein set forth;

          (f) to make any change that does not adversely affect the rights of
any Securityholder in any material respect;

          (g) to provide for the issuance of and establish the form and terms
and conditions of the Securities of any series as provided in Section 2.01, to
establish the form of any certifications required to be furnished pursuant to
the terms of this Indenture or any series of Securities, or to add to the rights
of the holders of any series of Securities;

          (h) to evidence and provide for the acceptance of appointment
hereunder by a successor trustee; or

          (i) to comply with any requirements of the Securities and Exchange
Commission or any successor in connection with the qualification of this
Indenture under the Trust Indenture Act.

                                      -36-

<PAGE>

     The Trustee is hereby authorized to join with the Company in the execution
of any such supplemental indenture, and to make any further appropriate
agreements and stipulations that may be therein contained, but the Trustee shall
not be obligated to enter into any such supplemental indenture that affects the
Trustee's own rights, duties or immunities under this Indenture or otherwise.

     Any supplemental indenture authorized by the provisions of this Section may
be executed by the Company and the Trustee without the consent of the holders of
any of the Securities at the time Outstanding, notwithstanding any of the
provisions of Section 9.02.

     SECTION 9.02 SUPPLEMENTAL INDENTURES WITH CONSENT OF SECURITYHOLDERS.

     With the consent (evidenced as provided in Section 8.01) of the holders of
not less than a majority in aggregate principal amount of the Securities of each
series affected by such supplemental indenture or indentures at the time
Outstanding, the Company, when authorized by a Board Resolution, and the Trustee
may from time to time and at any time enter into an indenture or indentures
supplemental hereto (which shall conform to the provisions of the Trust
Indenture Act as then in effect) for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of this Indenture or
of any supplemental indenture or of modifying in any manner not covered by
Section 9.01 the rights of the holders of the Securities of such series under
this Indenture; provided, however, that no such supplemental indenture shall,
without the consent of the holders of each Security then Outstanding and
affected thereby, (a) extend the fixed maturity of any Securities of any series,
or reduce the principal amount thereof, or reduce the rate or extend the time of
payment of interest thereon, or reduce any premium payable upon the redemption
thereof or (b) reduce the aforesaid percentage of Securities, the holders of
which are required to consent to any such supplemental indenture.

     It shall not be necessary for the consent of the Securityholders of any
series affected thereby under this Section to approve the particular form of any
proposed supplemental indenture, but it shall be sufficient if such consent
shall approve the substance thereof.

     SECTION 9.03 EFFECT OF SUPPLEMENTAL INDENTURES.

     Upon the execution of any supplemental indenture pursuant to the provisions
of this Article or of Section 10.01, this Indenture shall, with respect to such
series, be and be deemed to be modified and amended in accordance therewith and
the respective rights, limitations of rights, obligations, duties and immunities
under this Indenture of the Trustee, the Company and the holders of Securities
of the series affected thereby shall thereafter be determined, exercised and
enforced hereunder subject in all respects to such modifications and amendments,
and all the terms and conditions of any such supplemental indenture shall be and
be deemed to be part of the terms and conditions of this Indenture for any and
all purposes.

     SECTION 9.04 SECURITIES AFFECTED BY SUPPLEMENTAL INDENTURES.

     Securities of any series affected by a supplemental indenture,
authenticated and delivered after the execution of such supplemental indenture
pursuant to the provisions of this Article or of Section 10.01, may bear a
notation in form approved by the Company, provided such form meets

                                      -37-

<PAGE>

the requirements of any securities exchange upon which such series may be
listed, as to any matter provided for in such supplemental indenture. If the
Company shall so determine, new Securities of that series so modified as to
conform, in the opinion of the Board of Directors, to any modification of this
Indenture contained in any such supplemental indenture may be prepared by the
Company, authenticated by the Trustee and delivered in exchange for the
Securities of that series then Outstanding.

     SECTION 9.05 EXECUTION OF SUPPLEMENTAL INDENTURES.

     Upon the request of the Company, accompanied by its Board Resolutions
authorizing the execution of any such supplemental indenture, and upon the
filing with the Trustee of evidence of the consent of Securityholders required
to consent thereto as aforesaid, the Trustee shall join with the Company in the
execution of such supplemental indenture unless such supplemental indenture
affects the Trustee's own rights, duties or immunities under this Indenture or
otherwise, in which case the Trustee may in its discretion but shall not be
obligated to enter into such supplemental indenture. The Trustee, subject to the
provisions of Section 7.01, may receive an Officers' Certificate or an Opinion
of Counsel as conclusive evidence that any supplemental indenture executed
pursuant to this Article is authorized or permitted by, and conforms to, the
terms of this Article and that it is proper for the Trustee under the provisions
of this Article to join in the execution thereof; provided, however, that such
Officers' Certificate or Opinion of Counsel need not be provided in connection
with the execution of a supplemental indenture that establishes the terms of a
series of Securities pursuant to Section 2.01 hereof.

     Promptly after the execution by the Company and the Trustee of any
supplemental indenture pursuant to the provisions of this Section, the Trustee
shall transmit by mail, first class postage prepaid, a notice, setting forth in
general terms the substance of such supplemental indenture, to the
Securityholders of all series affected thereby as their names and addresses
appear upon the Security Register. Any failure of the Trustee to mail such
notice, or any defect therein, shall not, however, in any way impair or affect
the validity of any such supplemental indenture.

                                   ARTICLE 10

                                SUCCESSOR ENTITY

     SECTION 10.01 COMPANY MAY CONSOLIDATE, ETC.

     Except as provided pursuant to Section 2.01 pursuant to a Board Resolution,
and set forth in an Officers' Certificate, or established in one or more
indentures supplemental to this Indenture, nothing contained in this Indenture
shall prevent any consolidation or merger of the Company with or into any other
Person (whether or not affiliated with the Company) or successive consolidations
or mergers in which the Company or its successor or successors shall be a party
or parties, or shall prevent any sale, conveyance, transfer or other disposition
of the property of the Company or its successor or successors as an entirety, or
substantially as an entirety, to any other corporation (whether or not
affiliated with the Company or its successor or successors) authorized to
acquire and operate the same; provided, however, the Company hereby covenants
and agrees that, upon any such consolidation or merger (in each case, if the
Company

                                      -38-

<PAGE>

is not the survivor of such transaction), sale, conveyance, transfer or other
disposition, the due and punctual payment of the principal of (premium, if any)
and interest on all of the Securities of all series in accordance with the terms
of each series, according to their tenor, and the due and punctual performance
and observance of all the covenants and conditions of this Indenture with
respect to each series or established with respect to such series pursuant to
Section 2.01 to be kept or performed by the Company shall be expressly assumed,
by supplemental indenture (which shall conform to the provisions of the Trust
Indenture Act, as then in effect) reasonably satisfactory in form to the Trustee
executed and delivered to the Trustee by the entity formed by such
consolidation, or into which the Company shall have been merged, or by the
entity which shall have acquired such property.

     SECTION 10.02 SUCCESSOR ENTITY SUBSTITUTED.

          (a) In case of any such consolidation, merger, sale, conveyance,
transfer or other disposition and upon the assumption by the successor entity by
supplemental indenture, executed and delivered to the Trustee and satisfactory
in form to the Trustee, of the obligations set forth under Section 10.01 on all
of the Securities of all series Outstanding, such successor entity shall succeed
to and be substituted for the Company with the same effect as if it had been
named as the Company herein, and thereupon the predecessor corporation shall be
relieved of all obligations and covenants under this Indenture and the
Securities.

          (b) In case of any such consolidation, merger, sale, conveyance,
transfer or other disposition, such changes in phraseology and form (but not in
substance) may be made in the Securities thereafter to be issued as may be
appropriate.

          (c) Nothing contained in this Article shall require any action by the
Company in the case of a consolidation or merger of any Person into the Company
where the Company is the survivor of such transaction, or the acquisition by the
Company, by purchase or otherwise, of all or any part of the property of any
other Person (whether or not affiliated with the Company).

     SECTION 10.03 EVIDENCE OF CONSOLIDATION, ETC. TO TRUSTEE.

     The Trustee, subject to the provisions of Section 7.01, may receive an
Officers' Certificate or an Opinion of Counsel as conclusive evidence that any
such consolidation, merger, sale, conveyance, transfer or other disposition, and
any such assumption, comply with the provisions of this Article.

                                   ARTICLE 11

                           SATISFACTION AND DISCHARGE

     SECTION 11.01 SATISFACTION AND DISCHARGE OF INDENTURE.

     If at any time: (a) the Company shall have delivered to the Trustee for
cancellation all Securities of a series theretofore authenticated and not
delivered to the Trustee for cancellation (other than any Securities that shall
have been destroyed, lost or stolen and that shall have been replaced or paid as
provided in Section 2.07 and Securities for whose payment money or Governmental
Obligations have theretofore been deposited in trust or segregated and held in

                                      -39-

<PAGE>

trust by the Company and thereupon repaid to the Company or discharged from such
trust, as provided in Section 11.05); or (b) all such Securities of a particular
series not theretofore delivered to the Trustee for cancellation shall have
become due and payable, or are by their terms to become due and payable within
one year or are to be called for redemption within one year under arrangements
satisfactory to the Trustee for the giving of notice of redemption, and the
Company or any Guarantor shall deposit or cause to be deposited with the Trustee
as trust funds the entire amount in moneys or Governmental Obligations or a
combination thereof, sufficient in the opinion of a nationally recognized firm
of independent public accountants expressed in a written certification thereof
delivered to the Trustee, to pay at maturity or upon redemption all Securities
of that series not theretofore delivered to the Trustee for cancellation,
including principal (and premium, if any) and interest due or to become due to
such date of maturity or date fixed for redemption, as the case may be, and if
the Company shall also pay or cause to be paid all other sums payable hereunder
with respect to such series by the Company then this Indenture shall thereupon
cease to be of further effect with respect to such series except for the
provisions of Sections 2.03, 2.05, 2.07, 4.01, 4.02, 4.03 and 7.10, that shall
survive until the date of maturity or redemption date, as the case may be, and
Sections 7.06 and 11.05, that shall survive to such date and thereafter, and the
Trustee, on demand of the Company and at the cost and expense of the Company
shall execute proper instruments acknowledging satisfaction of and discharging
this Indenture with respect to such series.

     SECTION 11.02 DISCHARGE OF OBLIGATIONS.

     If at any time all such Securities of a particular series not heretofore
delivered to the Trustee for cancellation or that have not become due and
payable as described in Section 11.01 shall have been paid by the Company or any
Guarantor by depositing irrevocably with the Trustee as trust funds moneys or an
amount of Governmental Obligations sufficient to pay at maturity or upon
redemption all such Securities of that series not theretofore delivered to the
Trustee for cancellation, including principal (and premium, if any) and interest
due or to become due to such date of maturity or date fixed for redemption, as
the case may be, and if the Company or any Guarantor shall also pay or cause to
be paid all other sums payable hereunder by the Company or any Guarantor with
respect to such series, then after the date such moneys or Governmental
Obligations, as the case may be, are deposited with the Trustee the obligations
of the Company and any Guarantor under this Indenture with respect to such
series shall cease to be of further effect except for the provisions of Sections
2.03, 2.05, 2.07, 4,01, 4.02, 4,03, 7.06, 7.10 and 11.05 hereof that shall
survive until such Securities shall mature and be paid.

     Thereafter, Sections 7.06 and 11.05 shall survive.

     SECTION 11.03 DEPOSITED MONEYS TO BE HELD IN TRUST.

     All moneys or Governmental Obligations deposited with the Trustee pursuant
to Sections 11.01 or 11.02 shall be held in trust and shall be available for
payment as due, either directly or through any paying agent (including the
Company acting as its own paying agent), to the holders of the particular series
of Securities for the payment or redemption of which such moneys or Governmental
Obligations have been deposited with the Trustee.

                                      -40-

<PAGE>

     SECTION 11.04 PAYMENT OF MONEYS HELD BY PAYING AGENTS.

     In connection with the satisfaction and discharge of this Indenture all
moneys or Governmental Obligations then held by any paying agent under the
provisions of this Indenture shall, upon demand of the Company, be paid to the
Trustee and thereupon such paying agent shall be released from all further
liability with respect to such moneys or Governmental Obligations.

     SECTION 11.05 REPAYMENT TO COMPANY.

     Any moneys or Governmental Obligations deposited with any paying agent or
the Trustee, or then held by the Company, in trust for payment of principal of
or premium, if any, or interest on the Securities of a particular series that
are not applied but remain unclaimed by the holders of such Securities for at
least two years after the date upon which the principal of (and premium, if any)
or interest on such Securities shall have respectively become due and payable,
or such other shorter period set forth in applicable escheat or abandoned or
unclaimed property law, shall be repaid to the Company on May 31 of each year or
upon the Company's request or (if then held by the Company) shall be discharged
from such trust; and thereupon the paying agent and the Trustee shall be
released from all further liability with respect to such moneys or Governmental
Obligations, and the holder of any of the Securities entitled to receive such
payment shall thereafter, as a general creditor, look only to the Company for
the payment thereof.

                                   ARTICLE 12

         IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

     SECTION 12.01 NO RECOURSE.

     No recourse under or upon any obligation, covenant or agreement of this
Indenture, or of any Security, or any guarantee thereof or for any claim based
thereon or otherwise in respect thereof, shall be had against any incorporator,
stockholder, officer or director, past, present or future as such, of the
Company or any Guarantor or of any predecessor or successor corporation of the
Company or any Guarantor, either directly or through the Company or any
Guarantor or any such predecessor or successor corporation of the Company or any
Guarantor, whether by virtue of any constitution, statute or rule of law, or by
the enforcement of any assessment or penalty or otherwise; it being expressly
understood that this Indenture and the obligations issued hereunder are solely
corporate obligations, and that no such personal liability whatever shall attach
to, or is or shall be incurred by, the incorporators, stockholders, officers or
directors as such, of the Company, or any Guarantor or of any predecessor or
successor corporation of the Company or any Guarantor, or any of them, because
of the creation of the indebtedness hereby authorized, or under or by reason of
the obligations, covenants or agreements contained in this Indenture or in any
of the Securities, or any guarantees thereof, or implied therefrom; and that any
and all such personal liability of every name and nature, either at common law
or in equity or by constitution or statute, of, and any and all such rights and
claims against, every such incorporator, stockholder, officer or director as
such, because of the creation of the indebtedness

                                      -41-

<PAGE>

hereby authorized, or under or by reason of the obligations, covenants or
agreements contained in this Indenture or in any of the Securities, or any
guarantees thereof, or implied therefrom, are hereby expressly waived and
released as a condition of, and as a consideration for, the execution of this
Indenture, the issuance of such Securities, and any guarantees thereof.

                                   ARTICLE 13

                            MISCELLANEOUS PROVISIONS

     SECTION 13.01 EFFECT ON SUCCESSORS AND ASSIGNS.

     All the covenants, stipulations, promises and agreements in this Indenture
made by or on behalf of the Company shall bind its successors and assigns,
whether so expressed or not.

     SECTION 13.02 ACTIONS BY SUCCESSOR.

     Any act or proceeding by any provision of this Indenture authorized or
required to be done or performed by any board, committee or officer of the
Company shall and may be done and performed with like force and effect by the
corresponding board, committee or officer of any corporation that shall at the
time be the lawful successor of the Company.

     SECTION 13.03 SURRENDER OF COMPANY POWERS.

     The Company by instrument in writing executed by authority of its Board of
Directors and delivered to the Trustee may surrender any of the powers reserved
to the Company, and thereupon such power so surrendered shall terminate both as
to the Company and as to any successor corporation.

     SECTION 13.04 NOTICES.

     Except as otherwise expressly provided herein, any notice, request or
demand that by any provision of this Indenture is required or permitted to be
given, made or served by the Trustee or by the holders of Securities or by any
other Person pursuant to this Indenture to or on the Company and/or any
Guarantor may be given or served by being deposited in first class mail, postage
prepaid, addressed (until another address is filed in writing by the Company
with the Trustee), as follows: US Airways, Inc., 111 West Rio Salado Parkway,
Tempe, Arizona 85281 or by facsimile or other electronic means as the Trustee
agrees to accept. Any notice, election, request or demand by the Company or any
Securityholder or by any other Person pursuant to this Indenture to or upon the
Trustee shall be deemed to have been sufficiently given or made, for all
purposes, if given or made in writing at the Corporate Trust Office of the
Trustee.

     SECTION 13.05 GOVERNING LAW.

     This Indenture and each Security (including any guarantee thereof) shall be
deemed to be a contract made under the internal laws of the State of New York,
and for all purposes shall be construed in accordance with the laws of said
State, except to the extent that the Trust Indenture Act is applicable.

                                      -42-

<PAGE>

     SECTION 13.06 TREATMENT OF SECURITIES AS DEBT.

     It is intended that the Securities will be treated as indebtedness and not
as equity for federal income tax purposes. The provisions of this Indenture
shall be interpreted to further this intention.

     SECTION 13.07 CERTIFICATES AND OPINIONS AS TO CONDITIONS PRECEDENT.

          (a) Upon any application or demand by the Company to the Trustee to
take any action under any of the provisions of this Indenture, the Company shall
furnish to the Trustee an Officers' Certificate stating that all conditions
precedent provided for in this Indenture (other than the certificate to be
delivered pursuant to Section 13.12) relating to the proposed action have been
complied with and an Opinion of Counsel stating that in the opinion of such
counsel all such conditions precedent have been complied with, except that in
the case of any such application or demand as to which the furnishing of such
documents is specifically required by any provision of this Indenture relating
to such particular application or demand, no additional certificate or opinion
need be furnished.

          (b) Each certificate or opinion provided for in this Indenture and
delivered to the Trustee with respect to compliance with a condition or covenant
in this Indenture shall include (i) a statement that the Person making such
certificate or opinion has read such covenant or condition; (ii) a brief
statement as to the nature and scope of the examination or investigation upon
which the statements or opinions contained in such certificate or opinion are
based; (iii) a statement that, in the opinion of such Person, he has made such
examination or investigation as is reasonably necessary to enable him to express
an informed opinion as to whether or not such covenant or condition has been
complied with; and (iv) a statement as to whether or not, in the opinion of such
Person, such condition or covenant has been complied with.

     SECTION 13.08 PAYMENTS ON BUSINESS DAYS.

     Except as provided pursuant to Section 2.01 pursuant to a Board Resolution,
and set forth in an Officers' Certificate, or established in one or more
indentures supplemental to this Indenture, in any case where the date of
maturity of interest or principal of any Security or the date of redemption of
any Security shall not be a Business Day, then payment of interest or principal
(and premium, if any) may be made on the next succeeding Business Day with the
same force and effect as if made on the nominal date of maturity or redemption,
and no interest shall accrue for the period after such nominal date.

     SECTION 13.09 CONFLICT WITH TRUST INDENTURE ACT.

     If and to the extent that any provision of this Indenture limits, qualifies
or conflicts with the duties imposed by Sections 310 to 317, inclusive, of the
Trust Indenture Act, such imposed duties shall control.

                                      -43-

<PAGE>

     SECTION 13.10 COUNTERPARTS.

     This Indenture may be executed in any number of counterparts, each of which
shall be an original, but such counterparts shall together constitute but one
and the same instrument.

     SECTION 13.11 SEPARABILITY.

     In case any one or more of the provisions contained in this Indenture or in
the Securities of any series shall for any reason be held to be invalid, illegal
or unenforceable in any respect, such invalidity, illegality or unenforceability
shall not affect any other provisions of this Indenture or of such Securities,
but this Indenture and such Securities shall be construed as if such invalid or
illegal or unenforceable provision had never been contained herein or therein.

     SECTION 13.12 COMPLIANCE CERTIFICATES.

     The Company or any Guarantors shall deliver to the Trustee, within 120 days
after the end of each fiscal year during which any Securities of any series were
outstanding, an officer's certificate stating whether or not the signers know of
any Default or Event of Default that occurred during such fiscal year. Such
certificate shall contain a certification from the principal executive officer,
principal financial officer or principal accounting officer of the Company that
a review has been conducted of the activities of the Company and the Company's
performance under this Indenture and that the Company has complied with all
conditions and covenants under this Indenture. For purposes of this Section
13.12, such compliance shall be determined without regard to any period of grace
or requirement of notice provided under this Indenture. If the officer of the
Company signing such certificate has knowledge of such a Default or Event of
Default, the certificate shall describe any such Default or Event of Default and
its status.

                                   ARTICLE 14

                           SUBORDINATION OF SECURITIES

     SECTION 14.01 SUBORDINATION TERMS.

     The payment by the Company of the principal of, premium, if any, and
interest on any series of securities issued hereunder may be subordinated in the
manner contemplated by Section 2.01.

                                   ARTICLE 15

                                   GUARANTEES

     SECTION 15.01 GUARANTEE.

     Any series of Securities may be guaranteed by one or more of the
Guarantors. The terms and the form of any such Guarantee will be established in
the manner contemplated by Section 2.01 for that particular series of
securities.

                                      -44-

<PAGE>

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

                                        US AIRWAYS, INC.

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

                                        THE BANK OF NEW YORK TRUST
                                        COMPANY, N.A., AS TRUSTEE

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

                                        GUARANTORS

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

                                      -45-

<PAGE>

                            CROSS-REFERENCE TABLE (1)

<TABLE>
<CAPTION>
SECTION OF TRUST INDENTURE ACT OF 1939, AS AMENDED   SECTION OF INDENTURE
--------------------------------------------------   --------------------
<S>                                                  <C>
310(a)                                                       7.09
310(b)                                                       7.08
7.10
310(c)                                                   Inapplicable
311(a)                                                       7.13
311(b)                                                       7.13
311(c)                                                   Inapplicable
312(a)                                                       5.01
5.02(a)
312(b)                                                      5.02(c)
312(c)                                                      5.02(c)
313(a)                                                      5.04(a)
313(b)                                                      5.04(b)
313(c)                                                      5.04(a)
5.04(b)
313(d)                                                      5.04(c)
314(a)                                                       5.03
13.12
314(b)                                                   Inapplicable
314(c)                                                     13.07(a)
314(d)                                                   Inapplicable
314(e)                                                     13.07(b)
314(f)                                                   Inapplicable
315(a)                                                      7.01(a)
7.01(b)
315(b)                                                       7.14
315(c)                                                       7.01
315(d)                                                      7.01(b)
315(e)                                                       6.07
316(a)                                                       6.06
8.04
316(b)                                                       6.04
316(c)                                                       8.01
317(a)                                                       6.02
317(b)                                                       4.03
318(a)                                                       13.09
</TABLE>

----------
(1)  This Cross-Reference Table does not constitute part of the Indenture and
     shall not have any bearing on the interpretation of any of its terms or
     provisions.<PAGE>

                                                                    EXHIBIT 4.18

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

                          PASS THROUGH TRUST AGREEMENT

                            DATED ____________, 20__

                                     BETWEEN

                           AMERICA WEST AIRLINES, INC.

                                       AND

                      U.S. BANK TRUST NATIONAL ASSOCIATION

                                   AS TRUSTEE

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

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                                             <C>
ARTICLE I          DEFINITIONS..............................................................................     2

     Section 1.01.      Definitions.........................................................................     2
     Section 1.02.      Compliance Certificates and Opinions................................................    11
     Section 1.03.      Form of Documents Delivered to Trustee..............................................    11
     Section 1.04.      Directions of Certificateholders....................................................    12

ARTICLE II         ORIGINAL ISSUANCE OF CERTIFICATES: ACQUISITION OF TRUST PROPERTY.........................    13

     Section 2.01.      Amount Unlimited; Issuable in Series................................................    13
     Section 2.02.      Acquisition of Equipment Notes......................................................    16
     Section 2.03.      Acceptance by Trustee...............................................................    18
     Section 2.04.      Limitation of Powers................................................................    18

ARTICLE III        THE CERTIFICATES.........................................................................    18

     Section 3.01.      Form, Denomination and Execution of Certificates....................................    18
     Section 3.02.      Authentication of Certificates......................................................    19
     Section 3.03.      Temporary Certificates..............................................................    19
     Section 3.04.      Transfer and Exchange...............................................................    20
     Section 3.05.      Book-Entry and Definitive Certificates..............................................    21
     Section 3.06.      Mutilated, Destroyed, Lost or Stolen Certificates...................................    23
     Section 3.07.      Persons Deemed Owners...............................................................    23
     Section 3.08.      Cancellation........................................................................    23
     Section 3.09.      Limitation of Liability for Payments................................................    24
     Section 3.10.      CUSIP Numbers.......................................................................    24

ARTICLE IV         DISTRIBUTIONS; STATEMENTS TO CERTIFICATEHOLDERS..........................................    24

     Section 4.01.      Certificate Account and Special Payments Account....................................    24
     Section 4.02.      Distributions from Certificate Account and Special Payments Account.................    25
     Section 4.03.      Statements to Certificateholders....................................................    26
     Section 4.04.      Investment of Special Payment Moneys................................................    27

ARTICLE V          THE COMPANY..............................................................................    28

     Section 5.01.      Maintenance of Corporate Existence..................................................    28
     Section 5.02.      Consolidation, Merger, Etc..........................................................    28

ARTICLE VI         DEFAULT..................................................................................    29

     Section 6.01.      Indenture Events of Default and Triggering Events...................................    29
     Section 6.02.      Incidents of Sale of Equipment Notes................................................    30
     Section 6.03.      Judicial Proceedings Instituted by Trustee; Trustee May Bring Suit..................    31
     Section 6.04.      Control by Certificateholders.......................................................    31
     Section 6.05.      Waiver of Past Defaults.............................................................    31
     Section 6.06.      Right of Certificateholders to Receive Payments Not to Be Impaired..................    32
     Section 6.07.      Certificateholders May Not Bring Suit Except Under Certain Conditions...............    32
</TABLE>

                                       i
<PAGE>
                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                                             <C>
     Section 6.08.      Remedies Cumulative.................................................................    33
     Section 6.09.      Undertaking for Costs...............................................................    33

ARTICLE VII        THE TRUSTEE..............................................................................    33

     Section 7.01.      Certain Duties and Responsibilities.................................................    33
     Section 7.02.      Notice of Defaults..................................................................    34
     Section 7.03.      Certain Rights of Trustee...........................................................    34
     Section 7.04.      Not Responsible for Recitals or Issuance of Certificates............................    36
     Section 7.05.      May Hold Certificates...............................................................    36
     Section 7.06.      Money Held in Trust.................................................................    36
     Section 7.07.      Compensation and Reimbursement......................................................    36
     Section 7.08.      Corporate Trustee Required; Eligibility.............................................    37
     Section 7.09.      Resignation and Removal; Appointment of Successor...................................    37
     Section 7.10.      Acceptance of Appointment by Successor..............................................    39
     Section 7.11.      Merger, Conversion, Consolidation or Succession to Business.........................    39
     Section 7.12.      Maintenance of Agencies.............................................................    40
     Section 7.13.      Money for Certificate Payments to Be Held in Trust..................................    41
     Section 7.14.      Registration of Equipment Notes in Trustee's Name...................................    41
     Section 7.15.      Representations and Warranties of Trustee...........................................    42
     Section 7.16.      Withholding Taxes; Information Reporting............................................    43
     Section 7.17.      Trustee's Liens.....................................................................    43
     Section 7.18.      Preferential Collection of Claims...................................................    43

ARTICLE VIII       CERTIFICATEHOLDERS' LISTS AND REPORTS BY TRUSTEE.........................................    44

     Section 8.01.      The Company to Furnish Trustee with Names and Addresses of Certificateholders.......    44
     Section 8.02.      Preservation of Information; Communications to Certificateholders...................    44
     Section 8.03.      Reports by Trustee..................................................................    44
     Section 8.04.      Reports by the Company..............................................................    44

ARTICLE IX         SUPPLEMENTAL AGREEMENTS..................................................................    45

     Section 9.01.      Supplemental Agreements Without Consent of Certificateholders.......................    45
     Section 9.02.      Supplemental Agreements with Consent of Certificateholders..........................    47
     Section 9.03.      Documents Affecting Immunity or Indemnity...........................................    48
     Section 9.04.      Execution of Supplemental Agreements................................................    48
     Section 9.05.      Effect of Supplemental Agreements...................................................    48
     Section 9.06.      Conformity with Trust Indenture Act.................................................    49
     Section 9.07.      Reference in Certificates to Supplemental Agreements................................    49

ARTICLE X          AMENDMENTS TO INDENTURES AND OTHER NOTE DOCUMENTS........................................    49

     Section 10.01.     Amendments and Supplements to Indentures and Other Note Documents...................    49

ARTICLE XI         TERMINATION OF TRUSTS....................................................................    50
</TABLE>

                                       ii
<PAGE>
                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                                            <C>
     Section 11.01.     Termination of the Trusts...........................................................    50

ARTICLE XII        MISCELLANEOUS PROVISIONS.................................................................    51

     Section 12.01.     Limitation on Rights of Certificateholders..........................................    51
     Section 12.02.     Certificates Nonassessable and Fully Paid...........................................    51
     Section 12.03.     Registration of Equipment Notes in Name of Subordination Agent......................    51
     Section 12.04.     Notices.............................................................................    52
     Section 12.05.     Governing Law and Venue; Waiver of Jury Trial.......................................    53
     Section 12.06.     Severability of Provisions..........................................................    54
     Section 12.07.     Trust Indenture Act Controls........................................................    54
     Section 12.08.     Effect of Headings and Table of Contents............................................    54
     Section 12.09.     Successors and Assigns..............................................................    54
     Section 12.10.     Benefits of Agreement...............................................................    54
     Section 12.11.     Legal Holidays......................................................................    55
     Section 12.12.     Counterparts........................................................................    55
     Section 12.13.     Communication by Certificateholders with Other Certificateholders...................    55
     Section 12.14.     Intention of Parties................................................................    55
     Section 12.15.     No Recourse Against Others..........................................................    55
EXHIBIT A
     FORM OF CERTIFICATE....................................................................................   A-1
</TABLE>

                                      iii
<PAGE>

Reconciliation and tie between America West Airlines Pass Through Trust
Agreement, dated _________, 20__ and the Trust Indenture Act of 1939. This
reconciliation does not constitute part of the Pass Through Trust Agreement.

<TABLE>
<CAPTION>
  Trust Indenture Act                Pass Through Trust
    of 1939 Section                  Agreement Section
-----------------------        ----------------------------
<S>                            <C>
  310(a)(1)                          7.08
  310(a)(2)                          7.08
  312(a)                             3.05; 7.12; 8.01; 8.02
  313(a)                             8.03
  313(b)                             8.03
  314(a)(1)-(3)                      8.04(a)-(c)
  314(a)(4)                          8.04(d)
  314 (c)(1)                         1.02
  314 (c)(2)                         1.02
  314 (d)(1)                         1.02; 7.13; 11.01
  314 (d)(2)                         1.02; 7.13; 11.01
  314 (d)(3)                         2.01
  314 (e)                            1.02
  315(b)                             7.02
  315(c)                             7.01(b)
  316(a)(last sentence)              1.04(c)
  316 (a)(1)(A)                      6.04
  316 (a)(1)(B)                      6.05
  316 (b)                            6.06
  316 (c)                            1.04(d)
  317(a)(1)                          6.03
  317(b)                             7.13
  318(a)                            12.07
</TABLE>

<PAGE>

                          PASS THROUGH TRUST AGREEMENT

      This PASS THROUGH TRUST AGREEMENT, dated as of _______, 20__ (the "BASIC
AGREEMENT"), between AMERICA WEST AIRLINES, INC., a Delaware corporation (the
"COMPANY"), and U.S. BANK TRUST NATIONAL ASSOCIATION, a national banking
association, as Trustee, is made with respect to the formation from time to time
of separate America West Airlines Pass Through Trusts, and the issuance from
time to time of separate series of Pass Through Certificates representing
fractional undivided interests in the respective Trusts.

                              W I T N E S S E T H:

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

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

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

      WHEREAS, to facilitate the sale of Equipment Notes to, and the purchase of
Equipment Notes by, the Trustee on behalf of each Trust created from time to
time pursuant to this Agreement, the Company as the "issuer," as such term is
defined in and solely for purposes of the Securities Act of 1933, as amended, of
the Certificates to be issued in respect of each Trust and as the "obligor", as
such term is defined in and solely for purposes of the Trust Indenture Act has
duly authorized the execution and delivery of this Basic Agreement and is
undertaking to perform certain administrative and ministerial duties under this
Agreement and is also undertaking to pay the fees and expenses of the Trustee;
and

      WHEREAS, this Basic Agreement, as supplemented from time to time, is
subject to the provisions of the Trust Indenture Act and shall, to the extent
applicable, be governed by such provisions;

<PAGE>

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

                                    ARTICLE I

                                   DEFINITIONS

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

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

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

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

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

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

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

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

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

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

                                       2
<PAGE>

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

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

      BOOK-ENTRY CERTIFICATES: Means, with respect to the Certificates of any
series, a beneficial interest in the Certificates of such series, ownership and
transfers of which shall be made through book entries as described in Section
3.05.

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

      CERTIFICATE: Means any one of the certificates executed and authenticated
by the Trustee, substantially in the form of Exhibit A hereto.

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

      CERTIFICATEHOLDER OR HOLDER: Means, with respect to the Certificates of
any series, the Person in whose name a Certificate of such series is registered
in the Register for Certificates of such series.

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

      CLEARING AGENCY: Means an organization registered as a "clearing agency"
pursuant to Section 17A of the Securities Exchange Act of 1934, as amended.

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

      COMPANY: Means America West Airlines, Inc., a Delaware corporation, or its
successor in interest pursuant to Section 5.02, or (only in the context of
provisions hereof, if any, when such reference is required for purposes of
compliance with the Trust Indenture Act) any other "obligor" (within the meaning
of the Trust Indenture Act) with respect to the Certificates of any series.

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

                                       3
<PAGE>

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

      CUT-OFF DATE: Means, with respect to the Certificates of any series, the
date designated as such in the Trust Supplement establishing such series.

      DEFINITIVE CERTIFICATES: Has the meaning, with respect to the Certificates
of any series, specified in Section 3.05.

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

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

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

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

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

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

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

      FRACTIONAL UNDIVIDED INTEREST: Means the fractional undivided interest in
a Trust that is evidenced by a Certificate relating to such Trust.

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

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

                                       4
<PAGE>

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

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

      ISSUANCE DATE: Means, with respect to the Certificates of any series, the
date of the issuance of such Certificates.

      LEASE: Means any lease between an Owner Trustee, as the lessor (or such
other Person acting as the lessor), and the Company, as the lessee, referred to
in the related Indenture, as such lease may be amended, supplemented or
otherwise modified in accordance with its terms; and "Leases" means all such
Leases.

      LETTER OF REPRESENTATIONS: Means, with respect to the Certificates of any
series, an agreement among the Company, the Trustee and the initial Clearing
Agency substantially in the form attached as an Exhibit to the related Trust
Supplement, as such letter may be modified or supplemented, or any successor
letter thereto.

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

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

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

      NOTE DOCUMENTS: Means, with respect to the Certificates of any series, the
Equipment Notes with respect to such Certificates and, with respect to such
Equipment Notes, the related Participation Agreement, Indenture, Note Purchase
Agreement, Purchase Agreement Assignment and, if the related Aircraft is leased
to the Company, the Lease and the Trust Agreement relating to such Aircraft,
and, if the Parent has guaranteed the obligations of the Company under any such
Equipment Notes or Leases, the Parent Guarantee.

                                       5
<PAGE>

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

      OFFICER'S CERTIFICATE: Means a certificate signed, (a) in the case of the
Company by (i) the Chairman or Vice Chairman of the Board of Directors, the
President, any Executive Vice President, any Senior Vice President or the
Treasurer of the Company signing alone, or (ii) any Vice President of the
Company signing together with the Secretary, the Assistant Secretary, the
Treasurer or any Assistant Treasurer of the Company or (b) in the case of the
Trustee or an Owner Trustee or a Loan Trustee, a Responsible Officer of the
Trustee or such Owner Trustee or such Loan Trustee, as the case may be.

      OPINION OF COUNSEL: Means a written opinion of legal counsel who (a) in
the case of counsel for the Company may be (i) a senior attorney of the Company
one of whose principal duties is furnishing advice as to legal matters, (ii)
McKenna Long & Aldridge LLP (and any affiliate thereof) or (iii) such other
counsel designated by the Company and reasonably acceptable to the Trustee and
(b) in the case of any Owner Trustee or any Loan Trustee, may be such counsel as
may be designated by any of them whether or not such counsel is an employee of
any of them, and who shall be reasonably acceptable to the Trustee.

      OTHER AGREEMENTS: Has the meaning specified in Section 6.01(b).

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

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

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

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

      OWNER PARTICIPANT: Means, with respect to any Equipment Note, the "Owner
Participant", if any, as referred to in the Indenture pursuant to which such
Equipment Note is issued and any permitted successor or assign of such Owner
Participant; and "Owner Participants" at any time of determination means all of
the Owner Participants thus referred to in the Indentures.

                                       6
<PAGE>

      OWNER TRUSTEE: Means, with respect to any Equipment Note, the "Owner
Trustee", if any, as referred to in the Indenture pursuant to which such
Equipment Note is issued, not in its individual capacity but solely as trustee;
and "Owner Trustees" means all of the Owner Trustees party to any of the related
Indentures.

      PARENT: Means US Airways Group, Inc., a Delaware corporation, and its
successors and assigns.

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

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

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

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

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

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

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

                                       7
<PAGE>

      POSTPONEMENT NOTICE: Means, with respect to any Trust or the related
series of Certificates, an Officer's Certificate of the Company (1) requesting
that the Trustee temporarily postpone purchase of the related Equipment Notes to
a date later than the Issuance Date of such series of Certificates, (2)
identifying the amount of the purchase price of each such Equipment Note and the
aggregate purchase price for all such Equipment Notes, (3) setting forth the
reasons for such postponement and (4) with respect to each such Equipment Note,
either (a) setting or resetting a new Transfer Date (which shall be on or prior
to the applicable Cut-off Date) for payment by the Trustee of such purchase
price and issuance of the related Equipment Note (subject to subsequent change
from time to time in accordance with the relevant Note Purchase Agreement), or
(b) indicating that such new Transfer Date (which shall be on or prior to the
applicable Cut-off Date) will be set by subsequent written notice not less than
one Business Day prior to such new Transfer Date (subject to subsequent change
from time to time in accordance with the relevant Note Purchase Agreement).

      POTENTIAL PURCHASER: Has the meaning, with respect to any
Certificateholder, specified in Section 6.01(b).

      PTC EVENT OF DEFAULT: Means, with respect to the Certificates of any
series, any failure to pay within ten Business Days of the due date thereof: (i)
the outstanding Pool Balance of such series of Certificates on the date
specified in any Trust Supplement for such payment or (ii) interest due on the
Certificates of such series on any Distribution Date (unless the related
Subordination Agent shall have made an Interest Drawing or Drawings (as defined
in the related Intercreditor Agreement), or a withdrawal or withdrawals pursuant
to a cash collateral account under such Intercreditor Agreement, with respect
thereto in an aggregate amount sufficient to pay such interest and shall have
distributed such amount to the Trustee).

      PURCHASE AGREEMENT ASSIGNMENT: Has the meaning, with respect to the
Certificates of any series, specified therefor in the related Participation
Agreement.

      PURCHASING CERTIFICATEHOLDER: Has the meaning, with respect to any
Certificateholder, specified in Section 6.01(b).

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

      REGISTER AND REGISTRAR: Means, each with respect to the Certificates of
any series, the register maintained and the registrar appointed pursuant to
Sections 3.04 and 7.12.

      REGULAR DISTRIBUTION DATE: Means, with respect to distributions of
Scheduled Payments in respect of any series of Certificates, each date
designated as such in this Agreement, until

                                       8
<PAGE>

payment of all the Scheduled Payments to be made under the Equipment Notes held
in the Trust have been made, or until such Equipment Notes have been redeemed or
otherwise prepaid in full.

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

      RESPONSIBLE OFFICER: Means, with respect to any Trustee, any Loan Trustee
and any Owner Trustee, any officer in the Corporate Trust Department or similar
department of the Trustee, Loan Trustee or Owner Trustee or any other officer
customarily performing functions similar to those performed by the persons who
at the time shall be such officers, respectively, or to whom any corporate trust
matter is referred because of his knowledge of and familiarity with a particular
subject.

      RESPONSIBLE PARTY: Means, with respect to the Certificates of any series,
the Person designated as such in the related Trust Supplement.

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

      SEC: Means the Securities and Exchange Commission, as from time to time
constituted or created under the Securities Exchange Act of 1934, as amended,
or, if at any time after the execution of this instrument such Commission is not
existing and performing the duties now assigned to it under the Trust Indenture
Act, then the body performing such duties on such date.

      SELLING CERTIFICATEHOLDER: Has the meaning, with respect to any
Certificateholder, specified in Section 6.01(b).

      SPECIAL DISTRIBUTION DATE: Means, with respect to the Certificates of any
series, each date on which a Special Payment is to be distributed as specified
in this Agreement.

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

                                       9
<PAGE>

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

      SPECIFIED INVESTMENTS: Means, with respect to any Trust, unless otherwise
specified in the related Trust Supplement, (i) obligations of, or guaranteed by,
the United States Government or agencies thereof, (ii) open market commercial
paper of any corporation incorporated under the laws of the United States of
America or any state thereof rated at least P-2 or its equivalent by Moody's
Investor Service, Inc. ("Moody's") or at least A-2 or its equivalent by Standard
& Poor's Rating Services, a division of the McGraw-Hill Companies, Inc. ("S&P"),
(iii) certificates of deposit issued by commercial banks organized under the
laws of the United States or of any political subdivision thereof having a
combined capital and surplus in excess of $500,000,000 which banks or their
holding companies have a rating of A or its equivalent by Moody's or A2 or its
equivalent by S&P; provided, however, that the aggregate amount at any one time
so invested in certificates of deposit issued by any one bank shall not exceed
5% of such bank's capital and surplus, (iv) U.S. dollar-denominated offshore
certificates of deposit issued by, or offshore time deposits with, any
commercial bank described in clause (iii) above or any subsidiary thereof and
(v) repurchase agreements with any financial institution having combined capital
and surplus of at least $500,000,000 with any of the obligations described in
clauses (i) through (iv) above as collateral; provided further, that if all of
the above investments are unavailable, the entire amounts to be invested may be
used to purchase federal funds from an entity described in clause (iii) above.

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

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

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

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

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

      TRUSTEE: Means U.S. Bank Trust National Association, a national banking
association, or its successor in interest, and any successor or other trustee
appointed as provided herein.

      TRUST INDENTURE ACT: Except as otherwise provided in Section 9.06, means,
with respect to any particular Trust, the Trust Indenture Act of 1939, as in
force at the date as of which the related Trust Supplement was executed.

                                       10
<PAGE>

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

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

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

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

            (1) a statement that (x) each individual signing such certificate or
      (y) each firm or person executing such Opinion of Counsel has read such
      covenant or condition and the definitions in this Basic Agreement or this
      Agreement relating thereto;

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

            (3) a statement that, in the opinion of each such individual or
      firm, he or it has made such examination or investigation as is necessary
      to enable him or it to express an

                                       11
<PAGE>

      informed opinion as to whether or not such covenant or condition has been
      complied with; and

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

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

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

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

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

            (c) In determining whether the Certificateholders of the requisite
Fractional Undivided Interests of Certificates of any series Outstanding have
given any Direction under this Agreement, Certificates owned by the Company, any
related Owner Trustee, any related Owner

                                       12
<PAGE>

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

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

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

            (f) Except as otherwise provided in Section 1.04(c), Certificates of
any series owned by or pledged to any Person shall have an equal and
proportionate benefit under the provisions of this Agreement, without
preference, priority or distinction as among all of the Certificates of such
series.

                                   ARTICLE II

                       ORIGINAL ISSUANCE OF CERTIFICATES:
                          ACQUISITION OF TRUST PROPERTY

      Section 2.01. Amount Unlimited; Issuable in Series. (a) The aggregate face
amount of Certificates that may be authenticated and delivered under this Basic
Agreement is unlimited. The Certificates may be issued from time to time in one
or more series and shall be designated

                                       13
<PAGE>

generally as the "Pass Through Certificates", with such further designations
added or incorporated in such title for the Certificates of each series as are
specified in the related Trust Supplement. Each Certificate shall bear upon its
face the designation so selected for the series to which it belongs. All
Certificates of the same series shall be substantially identical except that the
Certificates of a series may differ as to denomination and as may otherwise be
provided in the Trust Supplement establishing the Certificates of such series.
Each series of Certificates issued pursuant to this Agreement will evidence
fractional undivided interests in the related Trust and, except as may be
specified in any Intercreditor Agreement or in the applicable Trust Supplement,
will have no rights, benefits or interests in respect of any other Trust or the
Trust Property held therein. All Certificates of the same series shall be in all
respects equally and ratably entitled to the benefits of this Agreement without
preference, priority or distinction on account of the actual time or times of
authentication and delivery, all in accordance with the terms and provisions of
this Agreement.

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

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

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

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

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

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

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

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

                                       14
<PAGE>

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

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

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

      (11) a description of the Equipment Notes, and, if applicable, of any
notes issued by a trust or other entity secured by Equipment Notes, to be
acquired and held in the Trust formed by such Trust Supplement and of the
related Aircraft, if determined, and Note Documents, if determined;

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

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

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

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

      (16) whether such series will have the benefit of a Liquidity Facility or
other form of credit enhancement and, if so, any terms appropriate thereto;

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

                                       15
<PAGE>
            (18) whether there will be a deposit agreement, escrow agreement or
      other arrangement prior to the delivery of one or more Aircraft or the
      commencement of the Lease with respect to one or more Aircraft, and, if
      so, any terms appropriate thereto;

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

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

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

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

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

      Section 2.02. Acquisition of Equipment Notes. (a) Unless otherwise
specified in the related Trust Supplement, on or prior to the Issuance Date of
the Certificates of a series, the Trustee shall execute and deliver the related
Note Purchase Agreements in the form delivered to the Trustee by the Company and
shall, subject to the respective terms thereof, perform its obligations under
such Note Purchase Agreements. Unless otherwise specified in the related Trust
Supplement, the Trustee shall issue and sell such Certificates, in authorized
denominations and in such Fractional Undivided Interests, so as to result in the
receipt of consideration in an amount equal to the aggregate purchase price of
the Equipment Notes (and/or, if applicable, any notes issued by a trust or other
entity secured by Equipment Notes) contemplated to be purchased by the Trustee
under the related Note Purchase Agreements and, concurrently therewith (unless
the Company shall have delivered to the Trustee the Postponement Notice relating
to one or more Postponed Notes pursuant to Subsection (b) below), the Trustee
shall purchase, pursuant to the terms and conditions of the Note Purchase
Agreements, such Equipment Notes (except Postponed Notes, if any)(or other
notes) at a purchase price equal to the amount of such consideration so
received. Except as provided in Sections 3.03, 3.04, 3.05 and 3.06 hereof, the
Trustee shall not execute, authenticate or deliver Certificates of such series

                                       16
<PAGE>

in excess of the aggregate amount specified in this paragraph. The provisions of
this Subsection (a) are subject to the provisions of Subsection (b) below.

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

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

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

                                       17
<PAGE>

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

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

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

      Section 2.04. Limitation of Powers. Each Trust shall be constituted solely
for the purpose of making the investment in the Equipment Notes provided for in
the related Trust Supplement, and, except as set forth in this Agreement, the
Trustee shall not be authorized or empowered to acquire any other investments or
engage in any other activities and, in particular, the Trustee shall not be
authorized or empowered to do anything that would cause such Trust to fail to
qualify as a "grantor trust" for federal income tax purposes (including, as
subject to this restriction, acquiring any Aircraft (as defined in the related
Indentures) by bidding for such

                                       18
<PAGE>

Equipment Notes or otherwise, or taking any action with respect to any such
Aircraft once acquired).

                                   ARTICLE III

                                THE CERTIFICATES

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

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

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

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

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

            (b) No Certificate of any series shall be entitled to any benefit
under this Agreement, or be valid for any purpose, unless there appears on such
Certificate a certificate of authentication substantially in the form set forth
in Exhibit A executed by the Trustee by manual

                                       19
<PAGE>

signature, and such certificate of authentication upon any Certificate shall be
conclusive evidence, and the only evidence, that such Certificate has been duly
authenticated and delivered hereunder. All Certificates of any series shall be
dated the date of their authentication.

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

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

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

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

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

                                       20
<PAGE>

and the Registrar duly executed by the Certificateholder thereof or its attorney
duly authorized in writing.

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

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

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

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

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

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

                  (v) such Certificates of such series may be transferred in
            whole, but not in part, and in the manner provided in Section 3.04,
            by the Clearing Agency holding such Certificates to a nominee of
            such Clearing Agency, or by such

                                       21
<PAGE>

            Clearing Agency to a successor Clearing Agency that has been
            selected or approved by the Company or to a nominee of such
            successor Clearing Agency; and

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

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

            (c) Unless and until Definitive Certificates of a series are issued
pursuant to Subsection (d) below, on the Record Date prior to each applicable
Regular Distribution Date and Special Distribution Date, the Trustee will
request from the Clearing Agency a securities position listing setting forth the
names of all Clearing Agency Participants reflected on the Clearing Agency's
books as holding interests in the Certificates on such Record Date.

            (d) If with respect to the Certificates of any series (i) the
Company advises the Trustee in writing that the Clearing Agency is no longer
willing or able to discharge properly its responsibilities and the Trustee or
the Company is unable to locate a qualified successor, (ii) the Company, at its
option, advises the Trustee in writing that it elects to terminate the
book-entry system through the Clearing Agency or (iii) after the occurrence of
an Event of Default, Certificate Owners of Book-Entry Certificates of such
series evidencing Fractional Undivided Interests aggregating not less than a
majority in interest in the related Trust, by Act of such Certificate Owners
delivered to the Company and the Trustee, advise the Company, the Trustee and
the Clearing Agency through the Clearing Agency Participants in writing that the
continuation of a book-entry system through the Clearing Agency Participants is
no longer in the best interests of the Certificate Owners of such series, then
the Trustee shall notify all Certificate Owners of such series, through the
Clearing Agency, of the occurrence of any such event and of the availability of
Definitive Certificates. Upon surrender to the Trustee of all the Certificates
of such series held by the Clearing Agency, accompanied by registration
instructions from the Clearing Agency Participants for registration of
Definitive Certificates in the names of Certificate Owners of such series, the
Trustee shall issue and deliver the Definitive Certificates of such series in
accordance with the instructions of the Clearing Agency. None of the Company,
the Registrar, the Paying Agent or the Trustee shall be liable for any delay in
delivery of such instructions and may conclusively rely on, and shall be
protected in relying on, such

                                       22
<PAGE>

registration instructions. Upon the issuance of
Definitive Certificates of such series, the Trustee shall recognize the Persons
in whose names the Definitive Certificates are registered in the Register as
Certificateholders under this Agreement. Neither the Company nor the Trustee
shall be liable if the Trustee or the Company is unable to locate a qualified
successor Clearing Agency.

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

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

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

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

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

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

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

                                       23
<PAGE>

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

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

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

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

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

                                   ARTICLE IV

                          DISTRIBUTIONS; STATEMENTS TO
                               CERTIFICATEHOLDERS

      Section 4.01. Certificate Account and Special Payments Account. (a) The
Trustee shall establish and maintain on behalf of the Certificateholders of each
series a Certificate Account as one or more non-interest-bearing accounts. The
Trustee shall hold such Certificate Account in

                                       24
<PAGE>

trust for the benefit of the Certificateholders of such series, and shall make
or permit withdrawals therefrom only as provided in this Agreement or any
Intercreditor Agreement. On each day when a Scheduled Payment is made to the
Trustee with respect to the Certificates of any series, the Trustee, upon
receipt thereof, shall immediately deposit the aggregate amount of such
Scheduled Payment in the applicable Certificate Account.

            (b) The Trustee shall establish and maintain on behalf of the
Certificateholders of each series a Special Payments Account as one or more
accounts, which shall be non-interest bearing except as provided in Section
4.04. The Trustee shall hold the Special Payments Account in trust for the
benefit of the Certificateholders of such series and shall make or permit
withdrawals therefrom only as provided in this Agreement or any Intercreditor
Agreement. On each day when one or more Special Payments are made to the Trustee
with respect to the Certificates of any series, the Trustee, upon receipt
thereof, shall immediately deposit the aggregate amount of such Special Payments
in the applicable Special Payments Account.

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

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

            (b) Subject to the provisions of the Intercreditor Agreement, on
each Special Distribution Date with respect to any Special Payment with respect
to a series of Certificates or as soon thereafter as the Trustee has confirmed
receipt of any Special Payments due on the Equipment Notes held in the related
Trust or realized upon the sale of such Equipment Notes, the Trustee shall
distribute out of the applicable Special Payments Account the entire amount of
such applicable Special Payment deposited therein pursuant to Section 4.01(b).
There shall be so distributed to each Certificateholder of record of such series
on the Record Date with respect to such Special Distribution Date (other than as
provided in Section 11.01 concerning the final distribution) by check mailed to
such Certificateholder, at the address appearing in the Register,

                                       25
<PAGE>

such Certificateholder's pro rata share (based on the aggregate Fractional
Undivided Interest in the related Trust held by such Certificateholder) of the
total amount in the applicable Special Payments Account on account of such
Special Payment, except that, with respect to Certificates registered on the
Record Date in the name of a Clearing Agency (or its nominee), such distribution
shall be made by wire transfer in immediately available funds to the account
designated by such Clearing Agency (or such nominee).

            (c) The Trustee shall, at the expense of the Company, cause notice
of each Special Payment with respect to a series of Certificates to be mailed to
each Certificateholder of such series at such Certificateholder's address as it
appears in the Register. Subject to the provisions of the Intercreditor
Agreement: (i) in the event of redemption or purchase of Equipment Notes held in
the related Trust, such notice shall be mailed not less than 15 days prior to
the Special Distribution Date for the Special Payment resulting from such
redemption or purchase, which Special Distribution Date shall be the date of
such redemption or purchase; (ii) in the event that the Trustee receives a
notice from the Company pursuant to Section 2.02 that Postponed Notes will not
be purchased by the Trustee, such notice of Special Payment shall be mailed as
soon as practicable after receipt of such notice from the Company and shall
state the Special Distribution Date for such Special Payment, which shall occur
20 days after the date of such notice of Special Payment or (if such 20th day is
not practicable) as soon as practicable thereafter; (iii) in the event that any
Special Payment is to be made pursuant to the last paragraph of Section 2.02(b)
hereof, such notice of Special Payment shall be mailed on the Cut-off Date (or,
if such mailing on the Cut-off Date is not practicable, as soon as practicable
after the Cut-off Date), and shall state the Special Distribution Date for such
Special Payment, which shall occur 20 days after the date of such notice of
Special Payment (or, if such 20th day is not practicable, as soon as practicable
thereafter); and (iv) in the case of any other Special Payments, such notice of
Special Payment shall be mailed as soon as practicable after the Trustee has
confirmed that it has received funds for such Special Payment, and shall state
the Special Distribution Date for such Special Payment, which shall occur 20
days after the date of such notice of Special Payment or (if such 20th day is
not practicable) as soon as practicable thereafter. Notices mailed by the
Trustee as provided in the paragraphs above shall set forth:

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

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

            (iii) the reason for the Special Payment; and

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

      If the amount of premium, if any, payable upon the redemption or purchase
of an Equipment Note has not been calculated at the time that the Trustee mails
notice of a Special

                                       26
<PAGE>

Payment, it shall be sufficient if the notice sets forth the other amounts to be
distributed and states that any premium received will also be distributed.

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

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

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

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

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

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

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

      Section 4.04. Investment of Special Payment Moneys. Any money received by
the Trustee pursuant to Section 4.01(b) representing a Special Payment which is
not distributed on

                                       27
<PAGE>

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

                                    ARTICLE V

                                   THE COMPANY

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

      Section 5.02. Consolidation, Merger, Etc. The Company shall not
consolidate with or merge into any other corporation or convey, transfer or
lease substantially all of its assets as an entirety to any Person unless:

                  (a) the corporation formed by such consolidation or into which
      the Company is merged or the Person that acquires by conveyance, transfer
      or lease substantially all of the assets of the Company as an entirety
      shall (i) be organized and validly existing under the laws of the United
      States of America or any state thereof or the District of Columbia, (ii)
      be a "citizen of the United States" as defined in 49 U.S.C. Sections
      40102(a)(15), as amended, and (iii) hold an air carrier operating
      certificate issued pursuant to Chapter 447 of Title 49 of the United
      States Code for aircraft capable of carrying 10 or more individuals or
      6,000 pounds or more of cargo, if and so long as such status is a
      condition of entitlement to the benefits of Section 1110 of the Bankruptcy
      Reform Act of 1978, as amended (11 U.S.C. Sections 1110), with respect to
      the Leases or the Aircraft owned by the Company; and

                  (b) the corporation formed by such consolidation or into which
      the Company is merged or the Person which acquires by conveyance, transfer
      or lease substantially all of the assets of the Company as an entirety
      shall execute and deliver to the Trustee applicable to the Certificates of
      each series a duly authorized, valid, binding and enforceable agreement in
      form and substance reasonably satisfactory to the Trustee containing an
      assumption by such successor corporation or Person of the due and punctual
      performance and observance of each covenant and condition of the Note

                                       28
<PAGE>

      Documents and of this Agreement applicable to the Certificates of each
      series to be performed or observed by the Company.

      The Trustee may request an Officer's Certificate of the Company and an
Opinion of Counsel of the Company (that may be the Company's General Counsel,
Deputy General Counsel, Associate General Counsel or other senior attorney of
the Company) reasonably satisfactory to the Trustee, each stating that such
consolidation, merger, conveyance, transfer or lease and the assumption
agreement mentioned in clause (b) above comply with this Section 5.02 and that
all conditions precedent herein provided for relating to such transaction have
been complied with.

      Upon any consolidation or merger, or any conveyance, transfer or lease of
substantially all of the assets of the Company as an entirety in accordance with
this Section 5.02, the successor corporation or Person formed by such
consolidation or into which the Company is merged or to which such conveyance,
transfer or lease is made shall succeed to, and be substituted for, and may
exercise every right and power of, the Company under this Agreement applicable
to the Certificates of each series with the same effect as if such successor
corporation or Person had been named as the Company herein. No such conveyance,
transfer or lease of substantially all of the assets of the Company as an
entirety shall have the effect of releasing any successor corporation or Person
which shall have become such in the manner prescribed in this Section 5.02 from
its liability in respect of this Agreement and any Note Document applicable to
the Certificates of such series to which it is a party.

                                   ARTICLE VI

                                     DEFAULT

      Section 6.01. Indenture Events of Default and Triggering Events. (a) Upon
the occurrence and during the continuation of any Indenture Event of Default
under any Indenture, the Trustee may (i) to the extent it is the Controlling
Party at such time (as determined pursuant to the related Intercreditor
Agreement), direct the exercise of remedies as provided in such related
Intercreditor Agreement and (ii) if there is no related Intercreditor Agreement,
direct the exercise of remedies or take other action as provided in the relevant
Indenture to the extent that it may do so as the holder of the Equipment Notes
issued under such Indenture and held in the related Trust.

            (b) By acceptance of its Certificate, each Certificateholder agrees
that at any time after the occurrence and during the continuation of a
Triggering Event, each Certificateholder of Certificates of certain series
(each, a "POTENTIAL PURCHASER" and, collectively, the "POTENTIAL PURCHASERS")
may have certain rights to purchase the Certificates of one or more other
series, all as set forth in the Trust Supplement applicable to the Certificates
held by such Potential Purchaser. The purchase price with respect to the
Certificates of any series shall be equal to the Pool Balance of the
Certificates of such series, together with accrued and unpaid interest thereon
to the date of such purchase, without premium, but including any other amounts
then due and payable to the Certificateholders of such series under this
Agreement, any related Intercreditor Agreement or any other Note Document or on
or in respect of the Certificates of such series; provided, however, that if
such purchase occurs after a Record

                                       29
<PAGE>

Date, such purchase price shall be reduced by the amount to be distributed under
this Agreement on the related Distribution Date (which deducted amounts shall
remain distributable to, and may be retained by, the Certificateholder as of
such Record Date); provided, further, that no such purchase of Certificates of
such series shall be effective unless the purchasing Certificateholder (each, a
"PURCHASING CERTIFICATEHOLDER" and, collectively, the "PURCHASING
CERTIFICATEHOLDERS") shall certify to the Trustee that contemporaneously with
such purchase, one or more Purchasing Certificateholders are purchasing,
pursuant to the terms of this Agreement and the other Agreements, if any,
relating to the Certificates of a series that are subject to the same
Intercreditor Agreement (such other Agreements, the "OTHER AGREEMENTS"), the
Certificates of each such series that the Trust Supplement applicable to the
Certificates held by the Purchasing Certificateholder specifies may be purchased
by such Purchasing Certificateholder. Each payment of the purchase price of the
Certificates of any series shall be made to an account or accounts designated by
the Trustee and each such purchase shall be subject to the terms of this Section
6.01. By acceptance of its Certificate, each Certificateholder (each, a "SELLING
CERTIFICATEHOLDER" and, collectively, the "SELLING CERTIFICATEHOLDERS") of a
series that is subject to purchase by Potential Purchasers, all as set forth in
the Trust Supplement applicable to the Certificates held by the Selling
Certificateholders, agrees that, at any time after the occurrence and during the
continuance of a Triggering Event, it will, upon payment of the purchase price
specified in this Agreement by one or more Purchasing Certificateholders,
forthwith sell, assign, transfer and convey to such Purchasing Certificateholder
(without recourse, representation or warranty of any kind except for its own
acts), all of the right, title, interest and obligation of such Selling
Certificateholder in this Agreement, any related Intercreditor Agreement, the
related Liquidity Facility, the related Note Documents and all Certificates of
such series held by such Selling Certificateholder (excluding all right, title
and interest under any of the foregoing to the extent such right, title or
interest is with respect to an obligation not then due and payable as respects
any action or inaction or state of affairs occurring prior to such sale) and the
Purchasing Certificateholder shall assume all of such Selling
Certificateholder's obligations under this Agreement, any related Intercreditor
Agreement, any related Liquidity Facility and the related Note Documents. The
Certificates of such series will be deemed to be purchased on the date payment
of the purchase price is made notwithstanding the failure of any Selling
Certificateholder to deliver any Certificates of such series and, upon such a
purchase, (i) the only rights of the Selling Certificateholders will be to
deliver the Certificates to the Purchasing Certificateholder and receive the
purchase price for such Certificates of such series and (ii) if the Purchasing
Certificateholder shall so request, such Selling Certificateholder will comply
with all of the provisions of Section 3.04 hereof to enable new Certificates of
such series to be issued to the Purchasing Certificateholder in such
denominations as it shall request. All charges and expenses in connection with
the issuance of any such new Certificates shall be borne by the Purchasing
Certificateholder.

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

            (1) Certificateholders and Trustee May Purchase Equipment Notes. Any
      Certificateholder, the Trustee in its individual or any other capacity or
      any other Person may bid for and purchase any of the Equipment Notes held
      in the Trust, and upon

                                       30
<PAGE>

      compliance with the terms of sale, may hold, retain, possess and dispose
      of such Equipment Notes in their own absolute right without further
      accountability.

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

            (3) Application of Moneys Received upon Sale. Any moneys collected
      by the Trustee upon any sale made either under the power of sale given by
      this Agreement or otherwise for the enforcement of this Agreement shall be
      applied as provided in Section 4.02.

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

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

            (1) such Direction shall not in the opinion of the Trustee be in
      conflict with any rule of law or with this Agreement and would not involve
      the Trustee in personal liability or expense;

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

                                       31
<PAGE>

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

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

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

            (2) in the payment of the principal of, premium, if any, or
      interest, if any, on the Equipment Notes held in the related Trust; or

            (3) in respect of a covenant or provision hereof which under Article
      IX hereof cannot be modified or amended without the consent of each
      Certificateholder holding an Outstanding Certificate of the series
      affected thereby.

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

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

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

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

                                       32
<PAGE>

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

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

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

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

      Section 6.08. Remedies Cumulative. Every remedy given under this Agreement
to the Trustee or to any of the Certificateholders of any series shall not be
exclusive of any other remedy or remedies, and every such remedy shall be
cumulative and in addition to every other remedy given under this Agreement or
now or hereafter given by statute, law, equity or otherwise.

      Section 6.09. Undertaking for Costs. In any suit for the enforcement of
any right or remedy under this Agreement, or in any suit against the Trustee for
any action taken, suffered or omitted by it as Trustee, a court may require any
party litigant in such suit to file an undertaking to pay the costs of such
suit, and may assess costs against any such party litigant, in the manner and to
the extent provided in the Trust Indenture Act; provided, however, that neither
this Section 6.09 nor the Trust Indenture Act shall be deemed to authorize any
court to require such an undertaking or to make such an assessment in any suit
instituted by the Company.

                                   ARTICLE VII

                                   THE TRUSTEE

      Section 7.01. Certain Duties and Responsibilities. (a) Except during the
continuance of an Event of Default in respect of a Trust, the Trustee undertakes
to perform such duties in respect

                                       33
<PAGE>

of such Trust as are specifically set forth in this Agreement, and no implied
covenants or obligations shall be read into this Agreement against the Trustee.

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

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

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

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

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

      Section 7.02. Notice of Defaults. (a) As promptly as practicable after,
and in any event within 90 days after, the occurrence of any default (as such
term is defined below) hereunder known to the Trustee, the Trustee shall
transmit by mail to the Company, any related Owner Trustees, any related Owner
Participants, the related Loan Trustees and the Certificateholders holding
Certificates of the related series, in the manner and to the extent provided in
Section 313(c) of the Trust Indenture Act, notice of such default hereunder
known to the Trustee, unless such default shall have been cured or waived;
provided, however, that, except in the case of a default in the payment of the
principal, premium, if any, or interest on any Equipment Note, the Trustee shall
be protected in withholding such notice if and so long as the board of
directors, the executive committee or a trust committee of directors and/or
Responsible Officers of the Trustee in good faith shall determine that the
withholding of such notice is in the interests of the Certificateholders of the
related series. For the purpose of this Section 7.02 in respect of any Trust,
the term "default" means any event that is, or after notice or lapse of time or
both would become, an Event of Default in respect of that Trust.

            (b) The Trustee shall not be deemed to have knowledge of any Default
unless a Responsible Officer of the Trustee shall have received written notice
of such Default; provided, however, that the Trustee shall be deemed to have
notice of any failure to receive Scheduled Payments under this Agreement.

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

                                       34
<PAGE>

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

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

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

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

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

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

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

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

                                       35
<PAGE>
            (i) the Trustee shall not be required to expend or risk its own
      funds in the performance of any of its duties under this Agreement, or in
      the exercise of any of its rights or powers, if it shall have reasonable
      grounds for believing that repayment of such funds or adequate indemnity
      against such risk is not reasonably assured to it.

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

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

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

      Section 7.07. Compensation and Reimbursement. The Company agrees:

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

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

                                       36
<PAGE>

            (3) to indemnify, or cause to be indemnified, the Trustee with
      respect to the Certificates of any series, pursuant to the particular
      sections of the Note Purchase Agreement specified in the related Trust
      Supplement.

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

      Section 7.08. Corporate Trustee Required; Eligibility. Each Trust shall at
all times have a Trustee which shall be a bank, trust company or other financial
institution organized and doing business under the laws of the United States or
any state thereof, shall be eligible to act as a trustee under Section 310(a) of
the Trust Indenture Act and shall have a combined capital and surplus of at
least $75,000,000 (or a combined capital and surplus in excess of $5,000,000 and
the obligations of which, whether now in existence or hereafter incurred, are
fully and unconditionally guaranteed by a corporation organized and doing
business under the laws of the United States, any state or territory thereof or
the District of Columbia and having a combined capital and surplus of at least
$75,000,000). If such bank, trust company or other financial institution or such
corporation publishes reports of conditions at least annually, pursuant to law
or to the requirements of federal, state, territorial or District of Columbia
supervising or examining authority, then for the purposes of this Section 7.08
the combined capital and surplus of such bank, trust company or other financial
institution or such corporation shall be deemed to be its combined capital and
surplus as set forth in its most recent report of conditions so published.

      In case at any time the Trustee shall cease to be eligible in accordance
with the provisions of this Section 7.08 to act as Trustee of any Trust, the
Trustee shall resign immediately as Trustee of such Trust in the manner and with
the effect specified in Section 7.09.

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

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

                                       37
<PAGE>

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

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

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

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

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

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

            (e) If a Responsible Officer of the Trustee shall obtain actual
knowledge of an Avoidable Tax (as defined below) in respect of any Trust which
has been or is likely to be asserted, the Trustee shall promptly notify the
Company and shall, within 30 days of such notification, resign as Trustee of
such Trust hereunder unless within such 30-day period the Trustee shall have
received notice that the Company has agreed to pay such tax. The Company shall
promptly appoint a successor Trustee of such Trust in a jurisdiction where there
are no Avoidable Taxes. As used herein, an "AVOIDABLE TAX" in respect of such
Trust means a state or local tax: (i) upon (w) such Trust, (x) such Trust
Property, (y) Certificateholders of such Trust or (z) the Trustee for which the
Trustee is entitled to seek reimbursement from the Trust Property of such Trust,
and (ii) which would be avoided if the Trustee were located in another state, or
jurisdiction within a state, within the United States of America. A tax shall
not be an Avoidable Tax in respect of any Trust if the Company or any Owner
Trustee shall agree to pay, and shall pay, such tax.

            (f) If the Trustee shall resign, be removed or become incapable of
acting as Trustee of any Trust or if a vacancy shall occur in the office of the
Trustee of any Trust for any cause, the Company shall promptly appoint a
successor Trustee of such Trust. If, within one year after such resignation,
removal or incapability, or other occurrence of such vacancy, a successor
Trustee of such Trust shall be appointed by Direction of the Certificateholders
of the related series holding Certificates of such series evidencing Fractional
Undivided Interests aggregating not less than a majority in interest in such
Trust delivered to the Company, any related Owner Trustees, the related Loan
Trustee and the retiring Trustee, then the successor

                                       38
<PAGE>

Trustee of such Trust so appointed shall, with the approval of the Company of
such appointment, which approval shall not be unreasonably withheld, forthwith
upon its acceptance of such appointment, become the successor Trustee of such
Trust and supersede the successor Trustee of such Trust appointed by the Company
as provided above. If no successor Trustee shall have been so appointed by the
Company as provided above and accepted appointment in the manner hereinafter
provided, the resigning Trustee or any Certificateholder who has been a bona
fide Certificateholder of the related series for at least six months may, on
behalf of himself and all others similarly situated, petition any court of
competent jurisdiction for the appointment of a successor Trustee of such Trust.

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

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

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

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

                                       39
<PAGE>

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

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

            (b) There shall at all times be a Registrar and a Paying Agent
hereunder with respect to the Certificates of each series. Each such Authorized
Agent shall be a bank, trust company, or other financial institution organized
and doing business under the laws of the United States or any state thereof,
with a combined capital and surplus of at least $75,000,000 (or a combined
capital and surplus in excess of $5,000,000, the obligations of which are fully
and unconditionally guaranteed by a corporation organized and doing business
under the laws of the United States or any state or territory thereof or the
District of Columbia, with a combined capital and surplus of at least
$75,000,000), and shall be authorized under such laws to exercise corporate
trust powers, subject to supervision by federal or state authorities. The
Trustee shall initially be the Paying Agent and, as provided in Section 3.04,
Registrar hereunder with respect to the Certificates of each series. Each
Registrar other than the Trustee shall furnish to the Trustee, at stated
intervals of not more than six months, and at such other times as the Trustee
may request in writing, a copy of the Register maintained by such Registrar.

            (c) Any corporation into which any Authorized Agent may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger,

                                       40
<PAGE>

consolidation or conversion to which any Authorized Agent shall be a party, or
any corporation succeeding to the corporate trust business of any Authorized
Agent, shall be the successor of such Authorized Agent, if such successor
corporation is otherwise eligible under this Section 7.12, without the execution
or filing of any paper or any further act on the part of the parties hereto or
such Authorized Agent or such successor corporation.

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

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

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

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

      Section 7.14. Registration of Equipment Notes in Trustee's Name. Subject
to the provisions of any Intercreditor Agreement and Section 12.03 hereof, the
Trustee agrees that all Equipment Notes to be purchased by any Trust, Specified
Investments, if any, to be held by the Trustee on behalf of a Trust and
Permitted Investments, if any, to be held by the Trustee on behalf of a Trust
shall be issued in the name of the Trustee as trustee for the applicable Trust
or its nominee and held by the Trustee in trust for the benefit of the
Certificateholders of such

                                       41
<PAGE>

series, or, if not so held, the Trustee or its nominee shall be reflected as the
owner of such Equipment Notes, Specified Investments or Permitted Investments,
as the case may be, in the register of the issuer of such Equipment Notes,
Specified Investments or Permitted Investments, as the case may be. In no event
shall the Trustee invest in, or hold, Equipment Notes, Specified Investments or
Permitted Investments in a manner that would cause the Trustee not to have the
ownership interest in (or a securities entitlement with respect to) such
Equipment Notes, Specified Investments or Permitted Investments under the
applicable provisions of the Uniform Commercial Code in effect where the Trustee
holds such Equipment Notes, Specified Investments or Permitted Investments or
other applicable law then in effect.

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

                  (a) the Trustee is a national banking association duly
      organized and validly existing in good standing under the laws of the
      United States of America.

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

                  (c) the execution, delivery and performance by the Trustee of
      this Agreement, any Intercreditor Agreement, any Liquidity Facility, the
      Certificates and the Note Purchase Agreements (i) will not violate any
      provision of any United States federal law or the law of the state of the
      United States where it is located governing the banking and trust powers
      of the Trustee or any order, writ, judgment, or decree of any court,
      arbitrator or governmental authority applicable to the Trustee or any of
      its assets, (ii) will not violate any provision of the charter documents
      or by-laws of the Trustee, and (iii) will not violate any provision of, or
      constitute, with or without notice or lapse of time or both, a default
      under, or result in the creation or imposition of any lien on any
      properties included in the Trust Property pursuant to the provisions of
      any mortgage, indenture, contract, agreement or other undertaking to which
      it is a party, which violation, default or lien could reasonably be
      expected to have an adverse effect on the Trustee's performance or ability
      to perform its duties hereunder or thereunder or on the transactions
      contemplated herein or therein;

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

                                       42
<PAGE>

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

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

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

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

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

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

                                       43
<PAGE>

                                  ARTICLE VIII

                CERTIFICATEHOLDERS' LISTS AND REPORTS BY TRUSTEE

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

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

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

      Section 8.04. Reports by the Company. The Company shall:

                  (a) file with the Trustee, within 30 days after the Company is
      required to file the same with the SEC, copies of the annual reports and
      of the information, documents and other reports (or copies of such
      portions of any of the foregoing as the SEC may from time to time by rules
      and regulations prescribe) which the Company is required to file with the
      SEC pursuant to section 13 or section 15(d) of the Securities Exchange Act
      of 1934, as amended; or, if the Company is not required to file
      information, documents or reports pursuant to either of such sections,
      then to file with the Trustee and the SEC, in accordance with rules and
      regulations prescribed by the SEC, such of the supplementary and periodic
      information, documents and reports which may be required pursuant to
      section 13 of the Securities Exchange Act of 1934, as amended, in respect
      of a security listed and registered on a national securities exchange as
      may be prescribed in such rules and regulations;

                                       44
<PAGE>

                  (b) file with the Trustee and the SEC, in accordance with the
      rules and regulations prescribed by the SEC, such additional information,
      documents and reports with respect to compliance by the Company with the
      conditions and covenants of the Company provided for in this Agreement, as
      may be required by such rules and regulations, including, in the case of
      annual reports, if required by such rules and regulations, certificates or
      opinions of independent public accountants, conforming to the requirements
      of Section 1.02;

                  (c) transmit to all Certificateholders, in the manner and to
      the extent provided in Section 313(c) of the Trust Indenture Act, such
      summaries of any information, documents and reports required to be filed
      by the Company pursuant to subsections (a) and (b) of this Section 8.04 as
      may be required by rules and regulations prescribed by the SEC; and

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

                                   ARTICLE IX

                             SUPPLEMENTAL AGREEMENTS

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

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

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

            (3) to add to the covenants of the Company or the Parent for the
      benefit of the Certificateholders of any series, or to surrender any right
      or power conferred upon the

                                       45
<PAGE>

      Company or the Parent in this Agreement, any Note Purchase Agreement, any
      Intercreditor Agreement, any Liquidity Facility or any Parent Guarantee;
      or

            (4) to correct or supplement any provision in this Agreement, any
      Intercreditor Agreement, any Note Purchase Agreement, any Liquidity
      Facility or any Parent Guarantee which may be defective or inconsistent
      with any other provision herein or therein or to cure any ambiguity or to
      modify any other provision with respect to matters or questions arising
      under this Agreement, any Intercreditor Agreement, any Note Purchase
      Agreement, any Liquidity Facility or any Parent Guarantee, provided,
      however, that any such action shall not materially adversely affect the
      interests of the Certificateholders of any series; to correct any mistake
      in this Agreement, any Intercreditor Agreement, any Note Purchase
      Agreement, any Liquidity Facility or any Parent Guarantee; or, as provided
      in any Intercreditor Agreement, to give effect to or provide for a
      Replacement Liquidity Facility (as defined in such Intercreditor
      Agreement); or

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

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

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

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

            (9) to add to or change any of the provisions of the Certificate of
      any series or this Agreement to such extent as shall be necessary to
      facilitate the issuance of Certificates of such series in bearer form or
      to facilitate or provide for the issuance of

                                       46
<PAGE>

      Certificates of such series in global form in addition to or in place of
      Certificates in certificated form; or

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

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

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

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

            (14) to make any other amendments or modifications hereto, provided,
      however, that such amendments or modifications shall apply to Certificates
      of any series to be thereafter issued;

provided, however, that no such supplemental agreement shall adversely affect
the status of any Trust as a grantor trust under Subpart E, Part I of Subchapter
J of Chapter 1 of Subtitle A of the Internal Revenue Code of 1986, as amended,
for U.S. federal income tax purposes.

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

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

                                       47
<PAGE>

      of any such payment or distribution on or after the Regular Distribution
      Date or Special Distribution Date applicable thereto; or

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

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

            (4) reduce the specified percentage of the aggregate Fractional
      Undivided Interests of such Trust that is required for any such
      supplemental agreement, or reduce such specified percentage required for
      any waiver (of compliance with certain provisions of this Agreement or
      certain defaults hereunder and their consequences) provided for in this
      Agreement; or

            (5) modify any of the provisions of this Section 9.02 or Section
      6.05, except to increase any such percentage or to provide that certain
      other provisions of this Agreement cannot be modified or waived without
      the consent of the Certificateholder of each Certificate of such series
      affected thereby; or

            (6) adversely affect the status of any Trust as a grantor trust
      under Subpart E, Part I of Subchapter J of Chapter 1 of Subtitle A of the
      Internal Revenue Code of 1986, as amended, for U.S. federal income tax
      purposes.

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

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

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

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

                                       48
<PAGE>

      Section 9.06. Conformity with Trust Indenture Act. Every supplemental
agreement executed pursuant to this Article IX shall conform to the requirements
of the Trust Indenture Act as then in effect.

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

                                    ARTICLE X

                AMENDMENTS TO INDENTURES AND OTHER NOTE DOCUMENTS

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

                                       49
<PAGE>

own discretion and at its own direction, consent and notify the relevant Loan
Trustee of such consent (or direct the Subordination Agent to consent and notify
the Loan Trustee of such consent) to any amendment, modification, waiver or
supplement under any related Indenture or any other related Note Document if an
Event of Default hereunder shall have occurred and be continuing or if such
amendment, modification, waiver or supplement will not materially adversely
affect the interests of the Certificateholders of such series.

                                   ARTICLE XI

                              TERMINATION OF TRUSTS

      Section 11.01. Termination of the Trusts. In respect of each Trust created
by the Basic Agreement as supplemented by a related Trust Supplement, the
respective obligations and responsibilities of the Company and the Trustee and,
if applicable, the Parent, with respect to such Trust shall terminate upon the
distribution to all Holders of Certificates of the series of such Trust and the
Trustee of all amounts required to be distributed to them pursuant to this
Agreement and the disposition of all property held as part of the Trust Property
of such Trust; provided, however, that in no event shall such Trust continue
beyond 21 years less one day following the death of the last survivor of all
descendants living on the date hereof of Joseph P. Kennedy, Sr., unless
applicable law shall permit a longer term, in which case such longer term shall
apply.

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

      In the event that all of the Certificateholders of such series shall not
surrender their Certificates for cancellation within six months after the date
specified in the above-mentioned written notice, the Trustee shall give a second
written notice to the remaining Certificateholders of such series to surrender
their Certificates for cancellation and receive the final distribution with
respect thereto. No additional interest shall accrue on the Certificates of such
series after any Regular Distribution Date (or Special Distribution Date, as the
case may be) of such series,

                                       50
<PAGE>

as specified in the first written notice. In the event that any money held by
the Trustee for the payment of distributions on the Certificates of such series
shall remain unclaimed for two years (or such lesser time as the Trustee shall
be satisfied, after 60 days' notice from the Company, is one month prior to the
escheat period provided under applicable law) after the final distribution date
with respect thereto, the Trustee shall pay to each Loan Trustee the appropriate
amount of money relating to such Loan Trustee and shall give written notice
thereof to any related Owner Trustees and the Company.

                                   ARTICLE XII

                            MISCELLANEOUS PROVISIONS

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

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

      Section 12.02. Certificates Nonassessable and Fully Paid. Except as set
forth in the last sentence of this Section 12.02, Certificateholders of each
series shall not be personally liable for obligations of the related Trust, the
Fractional Undivided Interests represented by the Certificates of such series
shall be nonassessable for any losses or expenses of such Trust or for any
reason whatsoever, and Certificates of such series upon authentication thereof
by the Trustee pursuant to Section 3.02 are and shall be deemed fully paid. No
Certificateholder of such series shall have any right (except as expressly
provided herein) to vote or in any manner otherwise control the operation and
management of the related Trust Property, the related Trust, or the obligations
of the parties hereto, nor shall anything set forth herein, or contained in the
terms of the Certificates of such series, be construed so as to constitute the
Certificateholders of such series from time to time as partners or members of an
association. Neither the existence of the Trust nor any provision in this
Agreement is intended to or shall limit the liability the Certificateholders
would otherwise incur if the Certificateholders owned Trust Property as
co-owners, or incurred any obligations of the Trust, directly rather than
through the Trust.

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

                                       51
<PAGE>

be reflected as the owner of such Equipment Notes in the register of the issuer
of such Equipment Notes.

      Section 12.04. Notices. (a) Unless otherwise specifically provided or
permitted herein or in the applicable Trust Supplement with respect to any
Trust, all notices required or permitted under the terms and provisions of this
Basic Agreement or such Trust Supplement with respect to such Trust shall be in
English and in writing, and any such notice may be given by United States mail,
courier service or facsimile, or any other customary means of communication, and
any such notice shall be effective when delivered or received or, if mailed,
three days after deposit in the United States mail with proper postage for
ordinary mail prepaid, and if delivered by facsimile, upon completion of
transmission and confirmation by the sender (by a telephone call to a
representative of the recipient or by machine confirmation) that the
transmission was received),

                  if to the Company:

                  America West Airlines, Inc.
                  4000 East Sky Harbor Blvd.
                  Phoenix, AZ 85034
                  Attention:  Treasurer
                  Telephone:  (480) 693-3685
                  Fax:  (480) 693-5886

                  with a copy to the attention of the Company's Office
                  of the General Counsel at the same address:

                  Attention:  Aircraft Counsel
                  Fax:  (480) 693-5932

                  if to the Trustee:

                  U.S. Bank Trust National Association
                  Corporate Trust Services
                  300 Delaware Ave., 9th Floor
                  Wilmington, DE 19801
                  Facsimile: (302) 576-3717

                  with a copy to:

                  U.S. Bank Trust National Association
                  One Federal Street, 3rd Floor
                  Boston, MA 02110
                  Attention: John Brennan
                  Telephone: (617) 603-6576
                  Facsimile: (617) 603-6668

                                       52
<PAGE>

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

            (c) Any notice or communication to Certificateholders of any series
shall be mailed by first-class mail to the addresses for Certificateholders of
such series shown on the Register kept by the Registrar and to addresses filed
with the Trustee for Certificate Owners of such series; provided, however, that
if The Depository Trust Company, or Cede & Co., as its nominee, is the sole
Certificateholder of record, such notices or communications need only be sent to
The Depository Trust Company and may be sent by any means permitted under
subsection (a) above. Failure so to mail a notice or communication or any defect
in such notice or communication shall not affect its sufficiency with respect to
other Certificateholders or Certificate Owners of such series.

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

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

            (f) Notwithstanding the foregoing, all communications or notices to
the Trustee shall be deemed to be given only when received by a Responsible
Officer of the Trustee.

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

      Section 12.05. Governing Law and Venue; Waiver of Jury Trial. (a) THIS
BASIC AGREEMENT, TOGETHER WITH ALL TRUST SUPPLEMENTS AND CERTIFICATES, SHALL BE
DEEMED TO BE MADE IN AND IN ALL RESPECTS SHALL BE INTERPRETED, CONSTRUED AND
GOVERNED BY AND IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK WITHOUT
REGARD TO THE CONFLICTS OF LAW PRINCIPLES THEREOF. The parties hereby
irrevocably submit to the jurisdiction of the courts of the State of New York
and the federal courts of the United States of America located in the State of
New York, solely in respect of the interpretation and enforcement of the
provisions of this Basic Agreement and of the documents referred to in this
Basic Agreement, and in respect of the transactions contemplated hereby, and
hereby waive, and agree not to assert, as a defense in any action, suit or
proceeding for the interpretation or enforcement hereof or of any such document,
that it is not subject thereto or that such action, suit or proceeding may not
be brought or is not maintainable in said courts or that the venue thereof may
not be appropriate or that this Basic Agreement or any such document may not be
enforced in or by such courts, and the parties hereto irrevocably agree that all
claims with respect to such action or proceeding shall be heard and determine in
such courts. The parties hereby consent to and grant any such court jurisdiction
over the person of such parties and consent to the jurisdiction of any such
court over the subject matter of such dispute and agree that mailing of process
or other papers in connection with any

                                       53
<PAGE>

such action or proceeding in the manner provided in Section 12.04 or in such
other manner as may be permitted by law shall be valid and sufficient service
thereof.

            (b) EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH
MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT
ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY
WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY
LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS BASIC
AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED BY THIS BASIC AGREEMENT. EACH PARTY
CERTIFIES AND ACKNOWLEDGES THAT (i) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD
NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (ii) EACH
PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (iii) EACH
PARTY MAKES THIS WAIVER VOLUNTARILY, AND (iv) EACH PARTY HAS BEEN INDUCED TO
ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION 12.05.

      Section 12.06. Severability of Provisions. If any one or more of the
covenants, agreements, provisions or terms of this Agreement shall be for any
reason whatsoever held invalid, then such covenants, agreements, provisions, or
terms shall be deemed severable from the remaining covenants, agreements,
provisions or terms of this Agreement and shall in no way affect the validity or
enforceability of the other provisions of this Agreement or the related Trust,
or of the Certificates of such series or the rights of the Certificateholders
thereof.

      Section 12.07. Trust Indenture Act Controls. This Agreement is subject to
the provisions of the Trust Indenture Act and shall, to the extent applicable,
be governed by such provisions. If any provision of this Agreement limits,
qualifies or conflicts with another provision which is required to be included
in this Agreement by the Trust Indenture Act, the required provision shall
control.

      Section 12.08. Effect of Headings and Table of Contents. The Article and
Section headings herein and the Table of Contents are for convenience only and
shall not affect the construction hereof.

      Section 12.09. Successors and Assigns. All covenants, agreements,
representations and warranties in this Agreement by the Trustee and the Company
shall bind and, to the extent permitted hereby, shall inure to the benefit of
and be enforceable by their respective successors and assigns, whether so
expressed or not. Any request, notice, direction, consent, waiver or other
instrument or action by any Certificateholder shall bind the successors and
assigns of such Certificateholder.

      Section 12.10. Benefits of Agreement. Nothing in this Agreement or in the
Certificates of any series, express or implied, shall give to any Person, other
than the parties to this Agreement and their successors under this Agreement,
and the Certificateholders of each series,

                                       54
<PAGE>

any benefit or any legal or equitable right, remedy or claim under this
Agreement, except as provided expressly herein.

      Section 12.11. Legal Holidays. In any case where any Regular Distribution
Date or Special Distribution Date relating to any Certificate of any series
shall not be a Business Day with respect to such series, then (notwithstanding
any other provision of this Agreement) payment need not be made on such date,
but may be made on the next succeeding Business Day with the same force and
effect as if made on such Regular Distribution Date or Special Distribution
Date, and no interest shall accrue during the intervening period.

      Section 12.12. Counterparts. For the purpose of facilitating the execution
of this Agreement and for other purposes, this Agreement may be executed
simultaneously in any number of counterparts, each of which counterparts shall
be deemed to be an original, and all of which counterparts shall constitute but
one and the same instrument.

      Section 12.13. Communication by Certificateholders with Other
Certificateholders. Certificateholders of any series may communicate with other
Certificateholders of such series with respect to their rights under this Basic
Agreement, the related Trust Supplement or the Certificates of such series
pursuant to Section 312(b) of the Trust Indenture Act. The Company, the Trustee
and any and all other persons benefited by this Agreement shall have the
protection afforded by Section 312(c) of the Trust Indenture Act.

      Section 12.14. Intention of Parties. The parties to this Agreement intend
that each Trust be classified for U.S. federal income tax purposes as a grantor
trust under Subpart E, Part I of Subchapter J of the Internal Revenue Code of
1986, as amended, and not as a trust or association taxable as a corporation or
as a partnership. The powers granted and obligations undertaken pursuant to this
Agreement shall be construed so as to further such intent.

      Section 12.15. No Recourse Against Others. No past, present or future
director, officer, employee, agent, member, manager, trustee or stockholder, as
such, of the Company, the Parent or any successor Person or any Affiliate of any
thereof shall have any liability for any obligations of the Company, the Parent
or any successor Person or any Affiliate of any thereof, either directly or
through the Company, the Parent or any successor Person or any Affiliate of any
thereof, under the Certificates, this Agreement or any Parent Guarantee or for
any claim based on, in respect of or by reason of such obligations or their
creation, whether by virtue of any rule of law, statute or constitutional
provision or by the enforcement of any assessment or by any legal or equitable
proceeding or otherwise. By accepting a Certificate, each Certificateholder
agrees to the provisions of this Section 12.15 and waives and releases all such
liability. Such waiver and release shall be part of the consideration for the
issue of the Certificates.

                                       55
<PAGE>

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

                                      AMERICA WEST AIRLINES, INC.

                                      By: ______________________________________
                                          Name:
                                          Title:

                                      U.S. BANK TRUST NATIONAL ASSOCIATION,
                                      as Trustee

                                      By: ______________________________________
                                          Name:
                                          Title:

                                       56
<PAGE>

                                                                       EXHIBIT A

                               FORM OF CERTIFICATE

      UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO ISSUER OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.*

----------
*     This legend to appear on Book-Entry Certificates to be deposited with The
      Depository Trust Company.

              AMERICA WEST AIRLINES ____________ PASS THROUGH TRUST

                  Pass Through Certificate, Series ___________

                  Final Regular Distribution Date: _____, ____

evidencing a fractional undivided interest in a trust, the property of which
includes certain equipment notes each secured by Aircraft owned by or leased to
America West Airlines, Inc.

Certificate
No._________

$__________ Fractional Undivided Interest representing ._____% of the Trust per
$1,000 face amount

      THIS CERTIFIES THAT __________________, for value received, is the
registered owner of a $___________ (________ dollars) Fractional Undivided
Interest in the America West Airlines Pass Through Trust, Series [___] (the
"Trust") created by U.S. Bank Trust National Association, as trustee (the
"Trustee"), pursuant to a Pass Through Trust Agreement dated as of __________
__, 20__ (the "Basic Agreement"), between the Trustee and America West Airlines,
Inc., a corporation incorporated under Delaware law (the "Company"), as
supplemented by Trust Supplement No. _______ thereto dated __________, ____,
between the Trustee and the Company, (collectively, the "Agreement"), a summary
of certain of the pertinent provisions of which is set forth below. To the
extent not otherwise defined herein, the capitalized terms used herein have the
meanings assigned to them in the Agreement. This Certificate is one of the duly
authorized Certificates designated as "___% America West Airlines Pass Through
Certificate, Series ____" (herein called the "Certificates"). This Certificate
is issued under and is subject to the terms, provisions and conditions of the
Agreement. By virtue of its acceptance hereof, the Certificateholder of this
Certificate assents to and agrees to be bound by the provisions of the

                                       A-1
<PAGE>

Agreement and any related Intercreditor Agreement. The property of the Trust
includes certain Equipment Notes and all rights of the Trust to receive any
payments under any Intercreditor Agreement or Liquidity Facility (the "Trust
Property"). Each issue of the Equipment Notes is or will be secured by, among
other things, a security interest in aircraft leased to or owned by the Company.

      The Certificates represent fractional undivided interests in the Trust and
the Trust Property, and have no rights, benefits or interest in respect of any
other separate trust established pursuant to the terms of the Basic Agreement
for any other series of certificates issued pursuant thereto.

      Subject to and in accordance with the terms of the Agreement and any
related Intercreditor Agreement, from funds then available to the Trustee, there
will be distributed on each __________ and ___________ (a "Regular Distribution
Date"), commencing on _________, ____, to the Person in whose name this
Certificate is registered at the close of business on the 15th day preceding the
Regular Distribution Date, an amount in respect of the Scheduled Payments on the
Equipment Notes due on such Regular Distribution Date, the receipt of which has
been confirmed by the Trustee, equal to the product of the percentage interest
in the Trust evidenced by this Certificate and an amount equal to the sum of
such Scheduled Payments. Subject to and in accordance with the terms of the
Agreement and any related Intercreditor Agreement, in the event that Special
Payments on the Equipment Notes are received by the Trustee, from funds then
available to the Trustee, there shall be distributed on the applicable Special
Distribution Date, to the Person in whose name this Certificate is registered at
the close of business on the 15th day preceding the Special Distribution Date,
an amount in respect of such Special Payments on the Equipment Notes, the
receipt of which has been confirmed by the Trustee, equal to the product of the
percentage interest in the Trust evidenced by this Certificate and an amount
equal to the sum of such Special Payments so received. If a Regular Distribution
Date or Special Distribution Date is not a Business Day, distribution shall be
made on the immediately following Business Day with the same force and effect as
if made on such Regular Distribution Date or Special Distribution Date and no
interest shall accrue during the intervening period. The Trustee shall mail
notice of each Special Payment and the Special Distribution Date therefor to the
Certificateholder of this Certificate.

      Distributions on this Certificate will be made by the Trustee by check
mailed to the Person entitled thereto, without the presentation or surrender of
this Certificate or the making of any notation hereon. Except as otherwise
provided in the Agreement and notwithstanding the above, the final distribution
on this Certificate will be made after notice mailed by the Trustee of the
pendency of such distribution and only upon presentation and surrender of this
Certificate at the office or agency of the Trustee specified in such notice.

      The Certificates do not represent a direct obligation of, or an obligation
guaranteed by, or an interest in, the Company or the Trustee or any affiliate
thereof. The Certificates are limited in right of payment, all as more
specifically set forth on the face hereof and in the Agreement. All payments or
distributions made to Certificateholders under the Agreement shall be made only
from the Trust Property and only to the extent that the Trustee shall have
sufficient income or proceeds from the Trust Property to make such payments in
accordance with the terms of the Agreement. Each Certificateholder of this
Certificate, by its acceptance hereof, agrees that it will

                                       A-2
<PAGE>

look solely to the income and proceeds from the Trust Property to the extent
available for distribution to such Certificateholder as provided in the
Agreement. This Certificate does not purport to summarize the Agreement and
reference is made to the Agreement for information with respect to the
interests, rights, benefits, obligations, proceeds, and duties evidenced hereby.
A copy of the Agreement may be examined during normal business hours at the
principal office of the Trustee, and at such other places, if any, designated by
the Trustee, by any Certificateholder upon request.

      The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Certificateholders under the Agreement at any time
by the Company and the Trustee with the consent of the Certificateholders
holding Certificates evidencing Fractional Undivided Interests aggregating not
less than a majority in interest in the Trust. Any such consent by the
Certificateholder of this Certificate shall be conclusive and binding on such
Certificateholder and upon all future Certificateholders of this Certificate and
of any Certificate issued upon the transfer hereof or in exchange hereof or in
lieu hereof whether or not notation of such consent is made upon this
Certificate. The Agreement also permits the amendment thereof, in certain
limited circumstances, without the consent of the Certificateholders of any of
the Certificates.

      As provided in the Agreement and subject to certain limitations set forth
therein, the transfer of this Certificate is registrable in the Register upon
surrender of this Certificate for registration of transfer at the offices or
agencies maintained by the Trustee in its capacity as Registrar, or by any
successor Registrar duly endorsed or accompanied by a written instrument of
transfer in form satisfactory to the Trustee and the Registrar, duly executed by
the Certificateholder hereof or such Certificateholder's attorney duly
authorized in writing, and thereupon one or more new Certificates of authorized
denominations evidencing the same aggregate Fractional Undivided Interest in the
Trust will be issued to the designated transferee or transferees.

      The Certificates are issuable only as registered Certificates without
coupons in minimum denominations of $1,000 Fractional Undivided Interest and
integral multiples thereof except that one Certificate may be issued in a
different denomination. As provided in the Agreement and subject to certain
limitations therein set forth, the Certificates are exchangeable for new
Certificates of authorized denominations evidencing the same aggregate
Fractional Undivided Interest in the Trust, as requested by the
Certificateholder surrendering the same.

      No service charge will be made for any such registration of transfer or
exchange, but the Trustee shall require payment of a sum sufficient to cover any
tax or governmental charge payable in connection therewith.

      The Trustee, the Registrar, and any agent of the Trustee or the Registrar
may treat the person in whose name this Certificate is registered as the owner
hereof for all purposes, and neither the Trustee, the Registrar, nor any such
agent shall be affected by any notice to the contrary.

      The obligations and responsibilities created by the Agreement and the
Trust created thereby shall terminate upon the distribution to
Certificateholders of all amounts required to be

                                       A-3
<PAGE>
distributed to them pursuant to the Agreement and the disposition of all
property held as part of the Trust Property.

      THIS CERTIFICATE AND THE AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF
THE PARTIES AND CERTIFICATEHOLDERS HEREUNDER AND THEREUNDER SHALL BE DETERMINED
IN ACCORDANCE WITH SUCH LAWS.

      Unless the certificate of authentication hereon has been executed by the
Trustee, by manual signature, this Certificate shall not be entitled to any
benefit under the Agreement or be valid for any purpose.

      IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

                                      AMERICA WEST AIRLINES PASS THROUGH TRUST
                                      By: U.S. BANK TRUST NATIONAL ASSOCIATION,
                                      as Trustee

                                      By: ______________________________________

                                      Title: ___________________________________

Dated: _______________

                                      A-4
<PAGE>

              [FORM OF THE TRUSTEE'S CERTIFICATE OF AUTHENTICATION]

 This is one of the Certificates referred to in the within-mentioned Agreement.

                               U.S. BANK TRUST NATIONAL ASSOCIATION,
                               as Trustee

                               By: ___________________________
                                   Authorized Officer

                                      A-5

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