Document:

EXHIBIT 10.1.4

                      ASSIGNMENT AND ASSUMPTION AGREEMENT

      ASSIGNMENT AND ASSUMPTION AGREEMENT (this "AGREEMENT") dated as of August
27, 2004 (the "EFFECTIVE Date"), between DVB Bank AG ("ASSIGNOR") and Atlas Air,
Inc., a Delaware corporation ("ASSIGNEE").

                                  WITNESSETH:

      WHEREAS, the parties hereto desire to effect (a) the transfer by Assignor
to Assignee of all of the right, title and interest of Assignor, as Owner
Participant, in, under and with respect to, among other things, (i) the
Participation Agreement dated as of December 28, 2000 among Atlas Air, Inc., as
Lessee, DVB Bank AG (as assignee of NCC Key Company, a Delaware corporation), as
Owner Participant, Wells Fargo Bank Northwest, National Association (formerly
known as First Security Bank, National Association), not in its individual
capacity, except as expressly provided therein, but solely as Owner Trustee, and
Wilmington Trust Company, not in its individual capacity, except as expressly
provided therein, but solely as Mortgagee, Subordination Agent and Pass Through
Trustee, as amended, modified or supplemented and in effect from time to time
(as amended, supplemented or otherwise modified through the Effective Date, the
"PARTICIPATION AGREEMENT") relating to one Boeing model 747-47UF aircraft
bearing manufacturer's serial number 30558 and U.S. registration mark N409MC,
including, without limitation, any indemnity payments payable by the Lessee
directly or indirectly thereunder, (ii) the Trust Agreement dated as of Decenber
28, 2000, as amended by Amendment No. 1 to Trust Agreement dated as of August
29, 2003, identified in the Participation Agreement, (iii) the Trust Estate (as
defined in the Trust Agreement) and (iv) the proceeds therefrom and (b) the
assumption by Assignee of the obligations of Assignor accruing thereunder; and

      WHEREAS, such documents permit such transfer upon satisfaction of certain
conditions heretofore or concurrently herewith being complied with;

      NOW, THEREFORE, in consideration of the premises and of the mutual
covenants and agreements herein contained, the parties hereto agree as follows:

      1. DEFINITIONS. Capitalized terms used herein without definition shall
have the respective meanings ascribed thereto in the Participation Agreement.

      2. ASSIGNMENT. Assignor does hereby sell, convey, assign, transfer and set
over, unto Assignee, as of the Effective Date, all of its present and future
right, title and interest in, under and with respect to the Participation
Agreement, the Trust Agreement, the Trust Estate and all of the other Operative
Agreements to which Assignor is a party, and any proceeds therefrom, together
with all other documents and instruments evidencing any of such right, title and
interest, except (i) such rights of Assignor as have arisen or accrued to
Assignor prior to the Effective Date (including specifically, but without
limitation, the right to receive any amounts due or accrued to Assignor under
the Operative Agreements as of a time prior to such date and the right to
receive any indemnity payment pursuant to the Participation Agreement with
respect to events occurring prior to such date) (the "EXCLUDED MATTERS").

      3. RELEASE OF TAX CLAIMS. Assignor hereby expressly releases Assignee
from, and now and forever waives any claim for, any liability in respect of
taxes and any loss of any tax

<PAGE>

benefit (i) existing or arising on, or prior to, the date hereof or (ii) based
on any acts, omissions, or events occurring on or prior to, the date hereof,
except for any liability in respect of sales or transfer taxes arising from or
in connection with the assignment described in Section 2 hereof. In addition,
Assignee hereby expressly releases Assignor from, and now and forever waives any
claim for, any liability in respect of taxes and any realization of any tax
benefit (i) existing or arising on, or prior to, the date hereof of (ii) based
on any acts, omissions, or events occurring on, or prior to, the date hereof.

      4. ASSUMPTION. Assignee hereby accepts the assignment set forth in Section
2 hereof and assumes and undertakes all of the duties and obligations of
Assignor accruing from and after the Effective Date (excluding any duties and
obligations of Assignor required to be performed by it on or prior to the
Effective Date under the Operative Agreements to which the Owner Participant is
a party and any of the other Operative Agreements by which Assignor is bound or
any other contract, agreement, document and other instrument relating to the
Trust Estate to which the Owner Participant is a party or by which it is bound)
pursuant to the Trust Agreement, the Participation Agreement and each other
Operative Agreement to which Assignor is a party or by which Assignor is bound,
including, without limitation, any obligations it may have under any Operative
Agreement with regard to the Lessee, the Mortgagee or the Owner Trustee,
provided that the foregoing assumption shall exclude the Excluded Matters.
Assignee hereby confirms that, except in respect of the Excluded Matters, from
and after the Effective Date it (i) shall be deemed a party to the Participation
Agreement, the Trust Agreement and each other Operative Agreement to which the
Owner Participant is a party, (ii) shall be deemed the party named as the "Owner
Participant" in the Trust Agreement, the Participation Agreement, the Lease and
the Trust Indenture and (iii) shall be bound by all of the terms of each
Operative Agreement to which Assignor is a party or by which it is bound and
each of such other contracts, agreements, documents or other instruments
referred to in this Section 4 (including the agreements and obligations of the
Assignor set forth therein) as if therein named the Owner Participant.

      5. RELEASE OF ASSIGNOR. Except for liabilities not expressly assumed by
Assignee under Section 4 hereof, on the Effective Date, Assignor shall be
relieved of all of its liabilities under the Participation Agreement, the Trust
Agreement and other Operative Agreements; provided, however, that Assignor shall
in no event be released from any such liability arising or relating to any event
occurring prior to the Effective Date, or on account of any breach by Assignor
of any of its representations, warranties, covenants or obligations set forth in
the Participation Agreement or the Trust Agreement, or from any obligation that
relates to any indemnity claimed by Assignor or any Lessor Lien arising from or
attributable to Assignor.

      6. PAYMENTS. From and after the Effective Date, Assignor hereby covenants
and agrees to pay over to Assignee, if and when received following the Effective
Date, any amounts (including any sums payable as interest in respect thereof)
paid to or for the benefit of Assignor that, under Section 2 hereof, belong to
Assignee, and Assignee hereby covenants and agrees to pay over to Assignor, if
and when received following the Effective Date, any amounts (including any sums
payable as interest in respect thereof) paid to or for the benefit of Assignee
that, under Section 2 hereof, belong to Assignor.

                                      -2-
<PAGE>

      7. INVESTMENT PURPOSE. Other than as provided in Section 8.4.3 of
Amendment No. 1 to Lease Agreement (the "LEASE AMENDMENT") dated as of July
27, 2004, by and between Assignee and Lessor, Assignee hereby represents that it
is acquiring the Trust Estate interests and other interests hereby assigned to
it for its own account for the purpose of investment and not with a view to the
distribution or resale of either thereof, subject, nevertheless, to the
disposition of such interests being at all times within Assignee's control.

      8. REPRESENTATIONS AND WARRANTIES OF ASSIGNOR. Assignor represents and
warrants that:

            (a) it is a company duly organized, validly existing in good
standing under the Laws of Germany and has the requisite power, authority and
legal right to enter into and carry out the transactions contemplated hereby;

            (b) this Agreement has been duly authorized, executed and delivered
by it and constitutes the legal, valid and binding obligation of Assignor,
enforceable against it in accordance with its terms;

            (c) no action or proceeding is pending, has been instituted or, to
the knowledge of Assignor, is threatened, before any court or governmental
agency, nor has any order, judgment or decree been issued or, to the knowledge
of Assignor, is threatened by any court or governmental agency which would
materially adversely affect the ability of Assignor to complete and consummate
its obligations contemplated hereby;

            (d) the Trust Estate is free of Lessor Liens attributable to it;

            (e) it has fully performed all of its obligations under the
Participation Agreement and under each other Operative Agreement to which it is
a party or by which it is bound, which obligations by their terms are required
to be satisfied or performed prior to the Effective Date;

            (f) neither the execution, delivery and performance by it of this
Agreement, nor compliance by it with any of the provisions thereof requires or
will require any approval of its stockholders, or approval or consent of any
trustees or holders of any indebtedness or obligations of it or contravenes or
will contravene any law or any order of any court or governmental authority or
agency applicable to or binding on it or contravenes or will contravene the
provisions of, or constitute a default under, its Certificate of Incorporation
or By-Laws or any indenture, mortgage, contract or any agreement or instrument
to which it is a party or by which it or any of its property may be bound or
affected;

            (g) no authorization or approval or other action by, and no notice
to or filing with, any governmental authority or regulatory body (other than as
required by the Act, or the regulations promulgated thereunder) is required for
the due execution, delivery or performance by it of this Agreement or, if so
required, has been obtained or effected; and

            (h) the transfer to Assignee of all of the Assignor's right, title
and interest as Owner Participant will not violate any provision of the Act.
Notwithstanding the foregoing, no representation is being made in this Section 8
with respect to the absence of violations of ERISA;

                                      -3-
<PAGE>

      9. REPRESENTATIONS AND WARRANTIES OF ASSIGNEE. Assignee represents and
warrants that:

            (a) it is a corporation duly incorporated, validly existing and in
good standing under the Laws of the State of Delaware and has the requisite
power, authority and legal right to conduct the business in which it is
currently engaged and to own or hold under lease its properties and to enter
into, and perform its obligations under the Owner Participant Agreements;

            (b) Assignee's parent has a tangible net worth at least equal to $75
million;

            (c) Assignee has taken, or caused to be taken, all necessary
corporate action (including, without limitation, the obtaining of any consent or
approval of stockholders required by its constituent documents) to authorize the
execution and delivery of this Agreement and the performance of its obligations
hereunder;

            (d) the execution and delivery by Assignee of this Agreement, the
performance by Assignee of its obligation hereunder and under the agreements
assigned to and assumed by Assignee under this Agreement and the consummation by
Assignee on the Effective Date of the transactions contemplated hereby, do not
and will not (i) violate any provision of its constituent documents, (ii)
violate any Law applicable to or binding on Assignee (it being understood that
this representation is not made with respect to any Law to the extent that such
Law relates to ERISA or any Plan) or (iii) violate or constitute any default
under (other than any violation or default that would not result in a Material
Adverse Change to Assignee), or result in the creation of any Lien (other than
as provided for or otherwise permitted in the Operative Agreements) upon the
Trust Estate under, any indenture, mortgage, chattel mortgage, deed of trust,
conditional sales contract, lease, loan or other material agreement, instrument
or document to which Assignee is a party or by which Assignee or any of its
properties is bound or may be affected in any material respect;

            (e) the execution and delivery by Assignee of this Agreement, the
performance by Assignee of its obligations hereunder, and under the agreements
assigned to and assumed by Assignee under this Agreement, and the consummation
by Assignee on the Effective Date of the transactions contemplated hereby and
thereby do not and will not require the consent or approval of, or the giving of
notice to, or the registration with, or the recording or filing of any documents
with, or the taking of any other action in respect of (i) any trustee or other
holder of any Debt of Assignee and (ii) any Government Entity other than the
filing of (A) this Agreement, (B) Amendment No. 2 to Trust Agreement dated as of
August 27, 2004 between the Owner Trustee and the Assignee and (C) an affidavit
of citizenship by each of the Assignee and the Owner Trustee pursuant to Section
47.7(c)(2)(ii) of the Federal Aviation Regulations;

            (f) this Agreement has been duly authorized, executed and delivered
by Assignee, and this Agreement and the agreements assigned to and assumed by
Assignee under this Agreement (assuming the due authorization, execution and
delivery by each party to such documents other than Assignee) constitute the
legal, valid and binding obligations of Assignee and are enforceable against
Assignee in accordance with the respective terms thereof, except as such
enforceability may be limited by bankruptcy, insolvency, reorganization,
receivership,

                                      -4-
<PAGE>

moratorium and other similar Laws affecting the rights of creditors generally
and general principles of equity, whether considered in a proceeding at law or
in equity;

            (g) no part of the funds to be used by Assignee to acquire or hold
its interests in the Trust Estate to be acquired by it under this Agreement
directly or indirectly constitutes assets of a Plan;

            (h) there are no pending or, to the Actual Knowledge of Assignee,
threatened actions or proceedings against Assignee before any court,
governmental body, arbitration board, administrative agency or tribunal which,
if determined adversely to Assignee, would materially adversely affect the
ability of Assignee to perform its obligations under this Agreement or any of
the agreements assigned to and assumed by Assignee under this Agreement or
Assignee's parent to perform its obligations under the guaranty of Assignee's
obligations as Owner Participant, except as has been and disclosed by Assignee
and Assignee's parent in their public filings with the Securities and Exchange
Commission and in the disclosure statement, as amended, filed in connection with
the Assignee's Final Modified Second Amended Joint Plan of Reorganization which
was approved pursuant to a confirmation order entered on July 16, 2004 by the
United States Bankruptcy Court for the Southern District of Florida;

            (i) neither Assignee nor any person Assignee has authorized to act
on its behalf has directly or indirectly offered any beneficial interest in or
Security relating to the ownership of the Aircraft or any interest in the Trust
Estate, or any of the Equipment Notes or any other interest in or Security under
the Trust Indenture for sale to, or solicited any offer to acquire any of the
same from any Person in violation of the Securities Act or applicable state
securities Laws;

            (j) no Person acting on behalf of Assignee is or will be entitled to
any broker's fee, commission or finder's fee in connection with the transactions
contemplated by this Agreement;

            (k) it is a "Transferee" satisfying the requirements set forth in
Section 10.1.1 of the Participation Agreement (Assignee, as Lessee, consenting
to a transfer of an OP Interest to a commercial aircraft operator);

            (l) Assignee is a Citizen of the United States or, if not, has
established a voting trust sufficient to allow registration of the Aircraft in
the United States;

            (m) the Trust Estate is free of Lessor Liens attributable to it; and

            (n) after giving effect to this assignment, there will be no more
than one Owner Participant with respect to the Aircraft.

      10. GOVERNING LAW. THIS ASSIGNMENT AND ASSUMPTION AGREEMENT SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK
INCLUDING ALL MATTERS OF CONTRUCTION, VALIDITY AND PERFORMANCE.

                                      -5-
<PAGE>

      11. COUNTERPARTS. This Agreement may be executed in any number of
counterparts, all of which together shall constitute a single instrument. It
shall not be necessary that any counterpart be singed by both parties so long as
each party shall sign at least one counterpart.

      12. BENEFICIARIES. Each of the Owner Trustee, the Lessee, the Note Holders
and the Mortgagee, together with their respective successors and permitted
assigns, is and shall be deemed a third party beneficiary of this Agreement
entitled to enforce this Agreement directly and in its own name and enforce any
rights or claims of the parties hereto.

      13. FURTHER ASSURANCES. Each party agrees that from time to time after the
Effective Date, it shall execute and deliver or cause to be executed and
delivered such instruments, documents and papers, and take all such further
action as may be reasonably required in order to consummate fully the purposes
of this Agreement and to implement the transactions contemplated hereby.

      14. EXPENSES. Each of Assignee and Assignor hereby agrees that it shall
pay its own costs and expenses (including reasonable attorneys' fees) incurred
in connection with the negotiation, preparation, execution and delivery of this
Agreement. The OP Purchase Price (as defined in the Binding Term Sheet Agreement
(the "TERM SHEET") dated as of July 27, 2004 between Assignor and Assignee)
includes all interest, out-of-pocket expenses and all other amounts owing to
Assignor or Owner Trustee not otherwise covered by the Claim (as defined in the
Term Sheet). Assignee will not pay and will not be responsible for any other
interest, fees or expenses incurred by Assignor or Owner Trustee on or after the
Effective Date.

                                      -6-
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have executed this Assignment and
Assumption Agreement as of the day and year first above written.

                                       DVB BANK AG

                                       By: /s/ Constance Laudenschlager
                                           -------------------------------------
                                           Name: Constance Laudenschlager
                                           Title: Senior Vice President

                                       By: /s/ Marc Cho
                                           -------------------------------------
                                           Name: Marc Cho
                                           Title: Vice President

                                       ATLAS AIR, INC.

                                       By: /s/ William C. Bradley
                                           -------------------------------------
                                           Name: William C. Bradley
                                           Title: Vice President & TreasurerEXHIBIT 10.5.2

                                                                  EXECUTION COPY

                                HOLDINGS GUARANTY
================================================================================

                                    GUARANTY

                            Dated as of July 27, 2004

                                    given by

                       ATLAS AIR WORLDWIDE HOLDINGS, INC.

================================================================================
<PAGE>

                                TABLE OF CONTENTS

                                                                            PAGE
                                                                            ----

SECTION 1. GUARANTY .......................................................   1

SECTION 2. GENERAL PROVISIONS RELATING TO THE GUARANTY ....................   2

SECTION 3. COVENANTS OF GUARANTOR .........................................   6
   (a)    No Assignment by Guarantor ......................................   6
   (b)    Default Under Loan Documents ....................................   6

SECTION 4. REPRESENTATIONS AND WARRANTIES OF GUARANTOR ....................   6

SECTION 5. MISCELLANEOUS ..................................................   6
   (a)    Waivers; Cumulative Effect ......................................   6
   (b)    Amendments; Waivers .............................................   6
   (c)    Severability ....................................................   6
   (d)    Counterparts ....................................................   6
   (e)    Notices .........................................................   6
   (f)    Headings, References ............................................   7
   (g)    Governing Law ...................................................   7
   (h)    Benefit and Binding Effect ......................................   7
   (i)    Service of Process; Jurisdiction and Waiver .....................   7
   (j)    Savings                                                             8

Annex A - Address for Notices to Guarantor

Schedule I - Description of Credit Agreement

<PAGE>

                                HOLDINGS GUARANTY

            HOLDINGS  GUARANTY (this  "GUARANTY")  dated as of July 27, 2004, is
given by Atlas Air  Worldwide  Holdings,  Inc.  (the  "GUARANTOR"),  a  Delaware
corporation,  with respect to each and every  obligation of Atlas Air, Inc. (the
"COMPANY")  under the Fifth Amended and Restated Credit  Agreement,  dated as of
July 27, 2004, among the Guarantor,  the Company,  the Lenders from time to time
party thereto and Deutsche Bank Trust Company Americas,  as administrative agent
(the  "AGENT")  (as amended,  modified or  supplemented  from time to time,  the
"CREDIT  AGREEMENT") and the other Loan  Documents,  and is given to and for the
benefit  of  the  Agent  and  the   Lenders   (collectively,   the   "GUARANTEED
BENEFICIARIES" and individually,  a "GUARANTEED  BENEFICIARY").  All capitalized
terms used herein shall,  unless otherwise  defined herein,  have the respective
meanings set forth in the Credit Agreement.

                              W I T N E S S E T H:

            WHEREAS, as of the date hereof the Guarantor owns 100% of the issued
and outstanding capital stock of the Company;

            WHEREAS,  the Guarantor  entered into the Holdings Guaranty dated as
of October 31, 2002 (the "Original Holdings  Guaranty"),  in connection with the
Existing Credit Agreement;

            WHEREAS,  it is a condition  precedent to the  effectiveness  of the
Credit  Agreement,  that the Guarantor  guarantee the obligations of the Company
under  the  Credit  Agreement  and the  other  Loan  Documents  in  favor of the
Guaranteed  Beneficiaries  and  that  the  Guarantor  shall  have  executed  and
delivered to the Agent this Guaranty;

            WHEREAS,  the  Guarantor is entering  into this Guaranty in order to
induce the Agent and each Lender to enter into the Credit Agreement;

            WHEREAS,  the  Guarantor  will  obtain  benefits  from  the  Company
entering into the Credit  Agreement,  and  accordingly,  desires to execute this
Guaranty in order to satisfy the  conditions  described in the second  preceding
paragraph and to amend and restate the Original Holdings Guaranty in the form of
this Guaranty;

            NOW, THEREFORE, the Guarantor hereby agrees on behalf of and for the
benefit of the Guaranteed Beneficiaries as follows:

            SECTION 1. GUARANTY.  The Guarantor does hereby  unconditionally and
irrevocably  guarantee,  as  primary  obligor  and not  merely  as  surety,  the
following (such obligations being the "GUARANTEED OBLIGATIONS "):

            (a) to each  Guaranteed  Beneficiary,  the full and  prompt  payment
      when,  where  and as due,  of each and  every  payment  obligation  of the
      Company to each such Guaranteed Beneficiary under the Credit Agreement and
      each other Loan Document; and

<PAGE>

            (b) to each Guaranteed  Beneficiary entitled thereto under the terms
      of any Loan Document,  the full and timely  performance  and observance by
      the Company of each and all other  covenants and  agreements not described
      in clause (a) above  required to be  performed  or observed by the Company
      under such Loan Document.

            Without  limiting the generality of the foregoing,  the  Guarantor's
liability  hereunder shall extend to all obligations that constitute part of the
Guaranteed Obligations and would be owed by the Company under the Loan Documents
but for the  fact  that  they  are  unenforceable  or not  allowable  due to the
existence of a  bankruptcy,  suspension of payments,  reorganization  or similar
proceeding involving the Company.

            SECTION 2. GENERAL PROVISIONS RELATING TO THE GUARANTY.

            (a) Each and every  default  in any  payment or  performance  of any
obligation  of the  Company  under any Loan  Document  to which the Company is a
party shall give rise to a separate  claim and cause of action  hereunder to the
extent that each such default by the Company would give rise to a separate claim
or cause of action under the applicable  Loan Document,  and separate  claims or
suits  may be made  and  brought,  as the case may be,  hereunder  as each  such
default occurs.

            (b) This Guaranty shall be a continuing,  absolute,  irrevocable and
unconditional  guaranty of payment and  performance  and not of  collection  and
shall remain in full force and effect until each and all of the  obligations  of
the  Company  guaranteed  hereunder  shall  have  been  fully  and  indefeasibly
discharged or performed in accordance  with the terms and provisions of the Loan
Documents (and no longer subject to  recoupment,  preference  claims or clawback
under  applicable  bankruptcy,  insolvency or similar  laws),  and the Guarantor
shall have fully  discharged  or  performed  all of its  obligations  under this
Guaranty to each Guaranteed Beneficiary.

            (c) This Guaranty and the liability of the Guarantor provided for in
Section 1 hereunder shall remain in full force and effect irrespective of:

            (i) the legality,  validity,  regularity or  enforceability,  or the
      absence  of any  thereof,  of any Loan  Document  (or  other  document  or
      agreement) or of any assignment,  amendment,  modification, or termination
      of any Loan Document (or other document or agreement), and shall in no way
      be  affected  or  impaired  by (and no  notice to the  Guarantor  shall be
      required  in respect  of) any  compromise,  waiver,  settlement,  release,
      renewal, extension,  indulgence,  amendment, addition, deletion, change or
      modification  with  respect to, or release of any  security for any of the
      obligations or liabilities of the Company under,  any Loan Document or any
      redelivery,  repossession, sale, transfer or other disposition,  surrender
      or  destruction  of, or other event or  circumstance  with respect to, the
      Financed Aircraft (or any interest therein or portion  thereof),  in whole
      or part; or

            (ii) the transfer,  assignment,  subletting,  or mortgaging,  or the
      purported transfer,  assignment,  subletting, or mortgaging, of all or any
      part of the interest of any  Guaranteed  Beneficiary or the Company in the
      Financed  Aircraft  (or  any  interest  therein  or  portion  thereof)  in
      accordance with the Loan Documents; or

                                      -2-
<PAGE>

            (iii)  any  absence  or  defect  or  failure  of  title  or  lack of
      recordation or registration  with respect to any Guaranteed  Beneficiary's
      or the  Company's  interest  in the  Financed  Aircraft  (or any  interest
      therein or portion thereof); or

            (iv) any  failure  of  delivery  of,  or loss of  perfection  of any
      security  interest  with respect to, any portion of the Financed  Aircraft
      (or any interest therein or portion thereof); or

            (v) any matter relating to any agreement or approval (or the absence
      thereof) in connection with the Financed Aircraft (or any interest therein
      or portion thereof); or

            (vi) any failure,  neglect or omission on the part of any Guaranteed
      Beneficiary  or any  other  Person  to give the  Guarantor  notice  of the
      occurrence  of any  Default  or Event of  Default  or  Potential  Event of
      Default or Event of Default or to realize upon any collateral  held by any
      Guaranteed Beneficiary or any other Person with respect to any obligations
      or  liabilities  of the  Company,  or to provide for any  insurance on the
      Financed  Aircraft (or any  interest  therein or portion  thereof),  or to
      establish  or  maintain  a  security  or other  interest  in the  Financed
      Aircraft (or any interest  therein or portion  thereof) or any  collateral
      provided  under any Loan Document or to establish or maintain the priority
      or perfection of any thereof; or

            (vii) any defect in the compliance with  specifications,  warranties
      or any insurance policy or the condition, design, operation or fitness for
      use of, or any damage to or loss or destruction of, or any interruption or
      cessation in the use of, the Financed Aircraft (or any interest therein or
      any portion  thereof)  by the  Company or any other  Person for any reason
      whatsoever (including, without limitation, any governmental prohibition or
      restriction,  condemnation,  requisition,  seizure or any other act on the
      part of any  governmental or military  authority,  or any act of God or of
      the public  enemy)  regardless  of the duration  thereof (even though such
      duration  would  otherwise   constitute  a  frustration   under  any  Loan
      Document),  whether or not without fault on the part of the Company or any
      other Person; or

            (viii)  any  merger,   consolidation   or  other   restructuring  or
      termination of the corporate structure, reorganization or transaction with
      respect to the Company or the Guarantor  into,  with or in respect of, any
      other  Person or any sale,  lease,  assignment  or  transfer of any of the
      assets of the Company or Guarantor to any other Person; or

            (ix)  any  disposition  by  the  Guarantor  of its  interest  in the
      Company,  or any change in the ownership of any shares of capital stock of
      the Guarantor or the Company, or any change,  restructuring or termination
      of the corporate structure or existence of the Company; or

            (x) the  imposition of any Tax or other charge  against the Company,
      the Guarantor or any other Person; or

            (xi) any exchange, release or nonperfection, or lapse of perfection,
      of any security for any  Guaranteed  Obligation  or the  acceptance of any
      security therefor; or

                                      -3-
<PAGE>

            (xii)  any   bankruptcy,   insolvency,   winding  up,   dissolution,
      liquidation,  receivership,  or reorganization of, or similar  proceedings
      affecting,  the Company or the  Guarantor  or its assets or any  resulting
      release or discharge of any of the Guaranteed  Obligations  (except to the
      extent resulting from performance thereof); or

            (xiii) any regulatory change or other  governmental  action (whether
      or not adverse); or

            (xiv)  any  partial   payment  or   performance  of  the  Guaranteed
      Obligations  (whether as a result of the  exercise  of any right,  remedy,
      power or privilege  or  otherwise)  that is accepted or received  (except,
      subject to paragraph  (f) of this Section 2, to the extent of such payment
      or performance); or

            (xv)  any  other  occurrence  or  circumstance  whatsoever,  whether
      similar or dissimilar to the foregoing,  whether or not foreseeable,  that
      might  otherwise  constitute a legal or equitable  defense or discharge of
      the  liabilities  of a guarantor or surety or that might  otherwise  limit
      recourse against the Guarantor.

            The  obligations  of the Guarantor set forth herein  constitute  the
full recourse  obligations of the Guarantor  enforceable  against it to the full
extent of all its assets and properties.

            (d) The  obligation and liability of the Guarantor  hereunder  shall
not be impaired,  diminished,  abated or otherwise  affected (i) by any set-off,
defense or counterclaim that the Company,  the Guarantor or any other Person may
have  or  claim  to  have,  at any  time or from  time to  time,  or (ii) by the
commencement by or against the Company, the Guarantor or any other Person of any
proceedings  under any  bankruptcy  or  insolvency  law or laws  relating to the
relief of debtors, readjustment of indebtedness, reorganizations,  arrangements,
compositions or extension or other similar laws.

            (e) It is the intent and purpose hereof that the Guarantor shall not
be  entitled to and does  hereby  waive,  to the  fullest  extent  permitted  by
applicable law, any and all defenses available to guarantors, sureties and other
secondary  parties at law or in equity.  Without  limiting the generality of the
foregoing, the Guarantor hereby waives notice of acceptance of this Guaranty and
of the nonperformance by the Company, diligence, presentment, protest, dishonor,
demand for payment from the Company or any other Person and notice of nonpayment
or  failure  to  perform  on the  part  of the  Company  and all  other  notices
whatsoever.  The guaranty  hereunder is a guaranty of payment,  performance  and
compliance and not of  collectability  only. The Guarantor  specifically  agrees
that it shall not be necessary,  and the Guarantor shall not require,  before or
as a condition of enforcing the  liability of the Guarantor  under this Guaranty
or  requiring  payment  or  performance  of the  Guaranteed  Obligations  by the
Guarantor  hereunder,  or at any time  thereafter,  that  any of the  Guaranteed
Beneficiaries  (i) file suit or proceed to obtain or assert a claim for personal
judgment  against any Person that may be liable for any  Guaranteed  Obligation;
(ii) make any other effort to obtain  payment or  performance  of any Guaranteed
Obligation  from the  Company  or any other  Person  that may be liable for such
Guaranteed  Obligation;  (iii)  foreclose  against or seek to  realize  upon any
security now or hereafter existing for such Guaranteed Obligation; (iv) exercise
or assert any other right or remedy to which any of the Guaranteed Beneficiaries
is or may be  entitled  in  connection  with any  Guaranteed  Obligation  or any
security or other guaranty therefor; (v) assert or

                                      -4-
<PAGE>

file any claim  against the assets of the Company or any other Person liable for
any  Guaranteed  Obligation;  or (vi) join the Company or any other  Person as a
party to any proceeding  for the  enforcement of any provision of this Guaranty.
Without  limiting the foregoing,  it is understood  that repeated and successive
demands may be made and recoveries  may be had hereunder as and when,  from time
to  time,  a Event  of  Default  shall  have  occurred  and be  continuing  or a
Guaranteed  Obligation  shall  otherwise  arise (in  either  case,  a  "RECOVERY
EVENT"), and that,  notwithstanding  recovery hereunder for or in respect of any
such Recovery  Event,  this Guaranty  shall remain in force and effect and shall
apply to each and every subsequent  Recovery Event. The Guarantor further agrees
that,  without  limiting the generality of this Guaranty,  if any Recovery Event
shall have occurred and be continuing  and any  Guaranteed  Beneficiary  (or any
assignee  thereof) is prevented by applicable  law from  exercising its remedies
under any applicable Loan Document for any reason,  such Guaranteed  Beneficiary
(or any  assignee  thereof)  shall be  entitled  to receive  hereunder  from the
Guarantor,  upon demand  therefor,  the sums that otherwise  would have been due
from the Company had such remedies been  exercised.  If the Guarantor  makes any
payment  or  performs  any  obligation  hereunder  in  respect  of  any  of  the
obligations  to  be  performed  by  the  Company,  the  Guarantor  shall  become
subrogated  to the extent of such  payment or  performance  to the rights of the
Guaranteed  Beneficiary  under the relevant  agreement to which the Company is a
party  against the  Company in respect of such  obligations  and any  collateral
security or guaranty held by or for the benefit of such  Guaranteed  Beneficiary
for the  payment of such  obligations;  PROVIDED,  HOWEVER,  that such rights of
subrogation  shall not commence until such time as the Company or the Guarantor,
as the case may be,  shall  have paid and  performed  each and every  Guaranteed
Obligation to each  Guaranteed  Beneficiary  and the Guarantor  shall have fully
performed its obligations hereunder.

            (f) The guaranty  hereunder  shall not be deemed to have  terminated
and shall  continue to be effective  (or if  terminated  for any reason shall be
reinstated, as the case may be), if at any time payment, or any part thereof, of
any of the  obligations  hereunder or under any Loan  Document is rescinded  and
must be (and actually is) returned by any  Guaranteed  Beneficiary to the Person
who  made  the  payment  or on  behalf  of whom the  payment  was made  upon the
insolvency,  bankruptcy or reorganization (or similar event) with respect to the
Company,  the  Guarantor or  otherwise,  all as though such payment had not been
made.

            (g) If the Guarantor  fails to pay any amount  hereunder when due to
any  Guaranteed  Beneficiary,   the  Guarantor  shall  pay  to  such  Guaranteed
Beneficiary  interest,  on  demand,  on  such  amount  at the  appropriate  rate
described in Section 2.2E of the Credit Agreement.

            (h)  The  Guarantor   further  agrees  to  pay  to  each  Guaranteed
Beneficiary  any and all costs and  expenses,  including  reasonable  legal fees
(which shall include  allocated  costs of internal  counsel) and  disbursements,
incurred  by such party in  connection  with  enforcing  its  rights  under this
Guaranty.

                                      -5-
<PAGE>

            SECTION 3. COVENANTS OF GUARANTOR.  The Guarantor  hereby  covenants
for the benefit of each Guaranteed Beneficiary as follows:

            (a) NO  ASSIGNMENT  BY  GUARANTOR.  Except  as  expressly  permitted
herein,  the  Guarantor  agrees  that it shall not  assign  any of its rights or
obligations  hereunder  without the prior written consent of the Agent,  and the
Requisite Lenders.

            (b) DEFAULT UNDER LOAN DOCUMENTS. The Guarantor agrees that it shall
not take any action or fail to take any  action  that  would  cause a  Potential
Event of Default or Event of Default under any of the other Loan Documents.

            SECTION  4.   REPRESENTATIONS  AND  WARRANTIES  OF  GUARANTOR.   The
Guarantor  makes,  for the benefit of each Guaranteed  Beneficiary,  each of the
representations  and warranties made in the Credit Agreement by the Guarantor as
to its assets,  financial  condition,  operations,  organization,  legal status,
business, and the Loan Documents to which it is a party.

            SECTION 5. MISCELLANEOUS.

            (a)  WAIVERS;   CUMULATIVE   EFFECT.  A  waiver  by  any  Guaranteed
Beneficiary  of any right or remedy  hereunder on any one occasion  shall not be
construed as a bar to any right or remedy that such  Guaranteed  Beneficiary (or
any  other  Guaranteed  Beneficiary)  would  otherwise  have  had on any  future
occasion with regard to any  subsequent  breach.  No failure to exercise nor any
delay in exercising on the part of any Guaranteed  Beneficiary any right, power,
or privilege hereunder,  shall operate as a waiver thereof; nor shall any single
or partial  exercise of any right,  power, or privilege  hereunder  preclude any
other or further exercise thereof or the exercise of any other right,  power, or
privilege.  The rights and remedies  herein  provided are  cumulative and may be
exercised  singularly or  concurrently,  and are not exclusive of any rights and
remedies provided by law or by the Credit Agreement or the other Loan Documents.

            (b)  AMENDMENTS;  WAIVERS.  This  Guaranty  may  not be  terminated,
amended,  supplemented,  waived,  or  modified  orally,  but may be  terminated,
amended, supplemented, waived, or modified upon the prior written consent of the
Guarantor, the Agent, and the Requisite Lenders.

            (c) SEVERABILITY.  Any provision of this Guaranty that is prohibited
or  unenforceable  in  any  jurisdiction  shall,  as to  such  jurisdiction,  be
ineffective  to the  extent  of such  prohibition  or  unenforceability  without
invalidating  the  remaining  provisions  hereof,  and any such  prohibition  or
unenforceability   in  any   jurisdiction   shall  not   invalidate   or  render
unenforceable such provision in any other jurisdiction.

            (d)  COUNTERPARTS.  This  Guaranty  may be  executed  by the parties
hereto in separate  counterparts,  each of which when so executed and  delivered
shall be an original,  but all such counterparts  shall together  constitute but
one and the same instrument.

            (e) NOTICES.  Any notice to the Guarantor  hereunder may be directed
to the  Guarantor at its address set forth in Annex A, or to such other  address
as the Guarantor may designate by notice given to the other parties hereto.

                                      -6-
<PAGE>

            (f) HEADINGS, REFERENCES. The section and paragraph headings in this
Guaranty are for  convenience  of reference  only and shall not modify,  define,
expand or limit any of the terms or provisions hereof.

            (g) GOVERNING  LAW.  THIS GUARANTY  SHALL BE GOVERNED BY THE LAWS OF
THE STATE OF NEW YORK, EXCLUDING (TO THE GREATEST EXTENT PERMISSIBLE BY LAW) ANY
RULE OF LAW THAT WOULD  CAUSE THE  APPLICATION  OF THE LAWS OF ANY  JURISDICTION
OTHER THAN THE STATE OF NEW YORK.  THIS GUARANTY HAS BEEN DELIVERED IN THE STATE
OF NEW YORK.

            (h) BENEFIT AND BINDING EFFECT.  The terms of this Guaranty shall be
binding  upon the  Guarantor,  and shall inure to the benefit of the  Guarantor,
each  Guaranteed  Beneficiary,  and their  respective  successors  and permitted
assigns (to the extent permitted hereunder and under the Loan Documents).

            (i) SERVICE OF PROCESS;  JURISDICTION AND WAIVER.  The Guarantor (A)
hereby irrevocably  submits to the nonexclusive  jurisdiction of (i) the Supreme
Court of the State of New York, New York County (without  prejudice to the right
of any party to remove to the  United  States  District  Court for the  Southern
District of New York) and (ii) the United States District Court for the Southern
District of New York for the purposes of any suit,  action,  or other proceeding
arising  out of this  Guaranty  or the  subject  matter  hereof  brought  by any
Guaranteed  Beneficiary  or its  successors  or  permitted  assigns,  (B) hereby
irrevocably agrees that all claims in respect of such suit, action or proceeding
may be heard and  determined  in such New York  State  court or, to the  fullest
extent permitted by applicable law, in such Federal court, and (C) to the extent
permitted  by  applicable  law,  hereby  irrevocably  waives,  and agrees not to
assert, by way of motion, as a defense, or otherwise,  in any such suit, action,
or proceeding any claim that it is not personally subject to the jurisdiction of
the above-named  courts,  that the suit,  action, or proceeding is brought in an
inconvenient  forum,  that the  venue of the  suit,  action,  or  proceeding  is
improper, or that this Guaranty or the subject matter hereof may not be enforced
in or by such court.  THE  GUARANTOR  WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY
SUIT,  ACTION,  PROCEEDING,  OR COUNTERCLAIM  ARISING OUT OF OR RELATING TO THIS
GUARANTY.  A  final  judgment  obtained  in  respect  of any  suit,  action,  or
proceeding  referred  to in this  Section  5(i) shall be  conclusive  and may be
enforced  in other  jurisdictions  by suit on the  judgment  or in any manner as
provided by applicable law. The Guarantor  hereby consents to service of process
in connection  with the subject  matter  specified in the first sentence of this
Section 5(i) in connection with the above-  mentioned courts by registered mail,
FedEx,  DHL, or similar  courier at the address to which notices to it are to be
given as provided in Annex A hereto, it being agreed that service in such manner
shall constitute valid service upon the Guarantor and its successors and assigns
in connection with any such suit, action, or proceeding only; PROVIDED, HOWEVER,
that  nothing  in  this  Section  5(i)  shall  affect  the  right  of any of the
Guaranteed  Beneficiaries  or their successors or assigns to serve legal process
in any  other  matter  permitted  by  law  or  affect  the  right  of any of the
Guaranteed  Beneficiaries  or  their  successors  or  assigns to bring any suit,
action, or proceeding  against the Guarantor or its  properties in the courts of
other jurisdictions.

                                      -7-
<PAGE>

            (j) SAVINGS.  Each Guaranteed  Beneficiary (by its acceptance of the
benefits hereof) and the Guarantor hereby confirms that it is its intention that
this Guaranty not constitute a fraudulent transfer or conveyance for purposes of
the Bankruptcy Code, the Uniform Fraudulent  Transfer Act or any similar federal
or state law. To effectuate the foregoing intention, each Guaranteed Beneficiary
and the Guarantor  hereby  irrevocably  agrees that the  Guaranteed  Obligations
guaranteed by the Guarantor  under this Guaranty shall be limited to such amount
as will,  after giving effect to such maximum amount and all of the  Guarantor's
other  (contingent or otherwise)  liabilities that  are relevant under such laws
(but  excluding,  to  the  maximum  extent  permitted  by  applicable  law,  any
liabilities of the Guarantor arising under any indebtedness that is subordinated
to the Guaranteed Obligations or any obligations under this Guaranty), result in
the  Guaranteed  Obligations  of the Guarantor in respect of such maximum amount
not constituting a fraudulent transfer or conveyance.

                                    * * * * *

                                      -8-
<PAGE>

            IN WITNESS  WHEREOF,  the  Guarantor  has caused this Guaranty to be
executed  as of the day and year  first  written  above for the  benefit  of the
parties named herein.

                                           ATLAS AIR WORLDWIDE HOLDINGS, INC.

                                           By: /s/ William C. Bradley
                                               ---------------------------------
                                               Name: William C. Bradley
                                               Title: Vice President & Treasurer

<PAGE>

                                                                         ANNEX A

                        ADDRESS FOR NOTICES TO GUARANTOR

ATLAS AIR WORLDWIDE HOLDINGS, INC.

2000 Westchester Avenue
Purchase, New York 10577-2543

Attention: Treasurer/Corporate Finance

                                      (i)

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