Document:

<PAGE>

                                  EXHIBIT 10.1

CONTACT: CUSTOMER SERVICES -- CTSLINK
         WELLS FARGO BANK MINNESOTA, N.A.
         SECURITIES ADMINISTRATION SERVICES
         7485 NEW HORIZON WAY
         FREDERICK, MD 21703
         WWW.CTSLINK.COM
         TELEPHONE:        (301) 815-6600
         FAX:              (301) 315-6660

                                SMT SERIES 2004-5
                            RECORD DATE: MAY 28, 2004
                        DISTRIBUTION DATE: JUNE 21, 2004

                     CERTIFICATEHOLDER DISTRIBUTION SUMMARY

<TABLE>
<CAPTION>
                      Certificate                       Beginning
                        Class      Certificate Pass-   Certificate       Interest       Principal       Current
Class     CUSIP       Description   Through Rate         Balance       Distribution    Distribution   Realized Loss
-----     -----       -----------  -----------------  ---------------  ------------   --------------  ---------------
<S>     <C>           <C>          <C>                <C>              <C>            <C>             <C>
 A-1    81744FBS5       SEN              2.74715%     553,000,000.00   1,265,977.58    5,343,207.50        0.00
 A-2    81744FBT3       SEN              1.36000%     185,867,000.00     161,497.77      254,430.60        0.00
 A-3    81744FCF2       SEN              1.86250%      75,000,000.00      89,244.79      102,666.39        0.00
 X-1    81744FBU0        IO              0.80000%               0.00     173,911.33            0.00        0.00
 X-2    81744FBV8        IO              0.68843%               0.00     149,656.63            0.00        0.00
 X-B    81744FBX4        IO              0.39055%               0.00      27,084.48            0.00        0.00
 B-1    81744FBZ9       SUB              1.58000%      14,874,000.00      15,014.48            0.00        0.00
 B-2    81744FCA3       SUB              1.98000%       8,499,000.00      10,751.24            0.00        0.00
 B-3    81744FCB1       SUB              2.71340%       4,674,000.00      10,568.68            0.00        0.00
 B-4    81744FCC9       SUB              2.71340%       2,124,000.00       4,802.71            0.00        0.00
 B-5    81744FCD7       SUB              2.71340%       2,124,000.00       4,802.71            0.00        0.00
 B-6    81744FCE5       SUB              2.71340%       3,830,447.31       8,661.27            0.00        0.00
 A-R    81744FBY2       RES              2.74715%             100.00           0.23          100.00        0.00
                                                      --------------   ------------    ------------        ----
Totals                                                849,992,547.31   1,921,973.90    5,700,404.49        0.00
                                                      --------------   ------------    ------------        ----

<CAPTION>
                     Ending Certificate      Total         Cumulative
Class     CUSIP           Balance         Distribution    Realized Loss
-----     -----      ------------------   -------------   -------------
<S>     <C>          <C>                  <C>             <C>
 A-1    81744FBS5     547,656,792.50      6,609,185.08        0.00
 A-2    81744FBT3     185,612,569.61        415,928.37        0.00
 A-3    81744FCF2      74,897,333.61        191,911.18        0.00
 X-1    81744FBU0               0.00        173,911.33        0.00
 X-2    81744FBV8               0.00        149,656.63        0.00
 X-B    81744FBX4               0.00         27,084.48        0.00
 B-1    81744FBZ9      14,874,000.00         15,014.48        0.00
 B-2    81744FCA3       8,499,000.00         10,751.24        0.00
 B-3    81744FCB1       4,674,000.00         10,568.68        0.00
 B-4    81744FCC9       2,124,000.00          4,802.71        0.00
 B-5    81744FCD7       2,124,000.00          4,802.71        0.00
 B-6    81744FCE5       3,830,447.31          8,661.27        0.00
 A-R    81744FBY2               0.00            100.23        0.00
                      --------------      ------------        ----
Totals                884,292,142.82      7,622,378.39        0.00
                      --------------      ------------        ----
</TABLE>

All distributions required by the Pooling and Servicing Agreement have been
calculated by the Certificate Administrator on behalf of the Trustee.

<PAGE>

                        PRINCIPAL DISTRIBUTION STATEMENT

<TABLE>
<CAPTION>
                           Beginning       Scheduled    Unscheduled
         Original Face    Certificate      Principal     Principal                     Realized      Total Principal
Class      Amount          Balance        Distribution  Distribution      Accretion    Loss (1)         Reduction
-----    -------------  ---------------  -------------  -------------     ---------    --------      ---------------
<S>     <C>             <C>              <C>            <C>               <C>          <C>           <C>
 A-1    553,000,000.00  553,000,000.00       0.00        5,343,207.50       0.00         0.00           5,343,207.50
 A-2    185,867,000.00  185,867,000.00       0.00          254,430.60       0.00         0.00             254,430.60
 A-3     75,000,000.00   75,000,000.00       0.00          102,666.39       0.00         0.00             102,666.39
 X-1              0.00            0.00       0.00                0.00       0.00         0.00                   0.00
 X-2              0.00            0.00       0.00                0.00       0.00         0.00                   0.00
 X-B              0.00            0.00       0.00                0.00       0.00         0.00                   0.00
 B-1     14,874,000.00   14,874,000.00       0.00                0.00       0.00         0.00                   0.00
 B-2      8,499,000.00   8,499,0000.00       0.00                0.00       0.00         0.00                   0.00
 B-3      4,674,000.00    4,674,000.00       0.00                0.00       0.00         0.00                   0.00
 B-4      2,124,000.00    2,124,000.00       0.00                0.00       0.00         0.00                   0.00
 B-5      2,124,000.00    2,124,000.00       0.00                0.00       0.00         0.00                   0.00
 B-6      3,830,447.31    3,830,447.31       0.00                0.00       0.00         0.00                   0.00
 A-R            100.00          100.00       0.00              100.00       0.00         0.00                 100.00
        --------------  --------------       ----        ------------       ----         ----        ---------------
Totals  849,992,547.31  849,992,547.31       0.00        5,700,404.49       0.00         0.00           5,700,404.49
        --------------  --------------       ----        ------------       ----         ----        ---------------

<CAPTION>
          Ending Certificate     Ending  Certificate  Total Principal
Class          Balance              Percentage         Distribution
-----     ------------------     -------------------  ---------------
<S>       <C>                    <C>                  <C>
 A-1        547,656,792.50          0.99033778          5,343,207.50
 A-2        185,612,569.40          0.99863111            254,430.60
 A-3         74,897,333.61          0.99863111            102,666.39
 X-1                  0.00          0.00000000                  0.00
 X-2                  0.00          0.00000000                  0.00
 X-B                  0.00          0.00000000                  0.00
 B-1         14,874,000.00          1.00000000                  0.00
 B-2          8,499,000.00          1.00000000                  0.00
 B-3          4,674,000.00          1.00000000                  0.00
 B-4          2,124,000.00          1.00000000                  0.00
 B-5          2,124,000.00          1.00000000                  0.00
 B-6          3,830,447.31          1.00000000                  0.00
 A-R                  0.00          0.00000000                100.00
            --------------          ----------          ------------
Totals      844,292,142.82          0.99329358          5,700,404.49
            --------------          ----------          ------------
</TABLE>

(1)   Amount does not include excess special hazard, bankruptcy, or fraud losses
      unless otherwise disclosed. Please refer to the prospectus supplement for
      a full description.

                    PRINCIPAL DISTRIBUTION FACTORS STATEMENT

<TABLE>
<CAPTION>
                           Beginning       Scheduled     Unscheduled
         Original Face     Certificate      Principal      Principal                   Realized      Total Principal
Class       Amount          Balance       Distribution   Distribution    Accretion       Loss (3)       Reduction
-----       ------      ---------------  -------------  -------------    ---------     ----------    ---------------
<S>     <C>             <C>              <C>            <C>              <C>           <C>           <C>
 A-1    553,000,000.00   1000.00000000    0.00000000       9.66221971    0.00000000    0.00000000       9.66221971
 A-2    185,867,000.00   1000.00000000    0.00000000       1.36888528    0.00000000    0.00000000       1.36888528
 A-3     75,000,000.00   1000.00000000    0.00000000       1.36888520    0.00000000    0.00000000       1.36888520
 X-1              0.00      0.00000000    0.00000000       0.00000000    0.00000000    0.00000000       0.00000000
 X-2              0.00      0.00000000    0.00000000       0.00000000    0.00000000    0.00000000       0.00000000
 X-B              0.00      0.00000000    0.00000000       0.00000000    0.00000000    0.00000000       0.00000000
 B-1     14,874,000.00   1000.00000000    0.00000000       0.00000000    0.00000000    0.00000000       0.00000000
 B-2      8,499,000.00   1000.00000000    0.00000000       0.00000000    0.00000000    0.00000000       0.00000000
 B-3      4,674,000.00   1000.00000000    0.00000000       0.00000000    0.00000000    0.00000000       0.00000000
 B-4      2,124,000.00   1000.00000000    0.00000000       0.00000000    0.00000000    0.00000000       0.00000000
 B-5      2,124,000.00   1000.00000000    0.00000000       0.00000000    0.00000000    0.00000000       0.00000000
 B-6      3,830,447.31   1000.00000000    0.00000000       0.00000000    0.00000000    0.00000000       0.00000000
 A-R            100.00   1000.00000000    0.00000000    1000.00000000    0.00000000    0.00000000    1000.00000000

<CAPTION>
          Ending Certificate    Ending Certificate    Total Principal
Class          Balance             Percentage          Distribution
-----     ------------------     -------------------  ---------------
<S>       <C>                   <C>                   <C>
 A-1         990.33778029          0.99033778             9.66221971
 A-2         998.63111472          0.99863111             1.36888528
 A-3         998.63111480          0.99863111             1.36888520
 X-1           0.00000000          0.00000000             0.00000000
 X-2           0.00000000          0.00000000             0.00000000
 X-B           0.00000000          0.00000000             0.00000000
 B-1        1000.00000000          1.00000000             0.00000000
 B-2        1000.00000000          1.00000000             0.00000000
 B-3        1000.00000000          1.00000000             0.00000000
 B-4        1000.00000000          1.00000000             0.00000000
 B-5        1000.00000000          1.00000000             0.00000000
 B-6        1000.00000000          1.00000000             0.00000000
 A-R           0.00000000          0.00000000          1000.00000000
</TABLE>

(3)   Amount does not include excess special hazard, bankruptcy, or fraud losses
      unless otherwise disclosed. Please refer to the prospectus supplement for
      a full description.

<PAGE>

                         INTEREST DISTRIBUTION STATEMENT

<TABLE>
<CAPTION>
                                             Beginning                     Payment of                Non-
                                            Certificate/     Current         Unpaid     Current    Supported
        Original Face       Current           Notional       Accrued        Interest    Interest   Interest   Realized
Class      Amount       Certificate Rate      Balance        Interest      Shortfall   Shortfall   Shortfall   Loss(4)
-----   --------------  ----------------  ---------------   ----------    -----------  ---------   ---------  ----------
<S>     <C>             <C>               <C>              <C>            <C>          <C>         <C>        <C>
 A-1    553,000,000.00        2.74715%    553,000,000.00   1,265,977.57      0.00        0.00        0.00       0.00
 A-2    185,867,000.00        1.36000%    185,867,000.00     161,497.77      0.00        0.00        0.00       0.00
 A-3     75,000,000.00        1.86250%     75,000,000.00      89,244.79      0.00        0.00        0.00       0.00
 X-1              0.00        0.80000%    260,867,000.00     173,911.33      0.00        0.00        0.00       0.00
 X-2              0.00        0.68843%    260,867,000.00     149,656.63      0.00        0.00        0.00       0.00
 X-B              0.00        1.39055%     23,373,000.00      27,084.48      0.00        0.00        0.00       0.00
 B-1     14,874,000.00        1.58000%     14,874,000.00      15,014.48      0.00        0.00        0.00       0.00
 B-2      8,499,000.00        1.98000%      8,499,000.00      10,751.24      0.00        0.00        0.00       0.00
 B-3      4,674,000.00        2.71340%      4,674,000.00      10,568,68      0.00        0.00        0.00       0.00
 B-4      2,124,000.00        2.71340%      2,124,000.00       4,802.71      0.00        0.00        0.00       0.00
 B-5      2,124,000.00        2.71340%      2,124,000.00       4,802.71      0.00        0.00        0.00       0.00
 B-6      3,830,447.31        2.71340%      3,830,447.31       8,661.27      0.00        0.00        0.00       0.00
 A-R            100.00        2.74715%            100.00           0.23      0.00        0.00        0.00       0.00
        --------------                                     ------------      ----        ----        ----       ----
Totals  849,992,547.31                                     1,921,973.89      0.00        0.00        0.00       0.00
        --------------                                     ------------      ----        ----        ----       ----

<CAPTION>
                             Remaining         Ending
                               Unpaid       Certificate/
          Total Interest      Interest       Notational
Class      Distribution      Shortfall         Balance
-----     --------------    ----------    ---------------
<S>       <C>               <C>           <C>
 A-1       1,265,977.58         0.00       547,656,792.50
 A-2         161,497.77         0.00       185,612,569.40
 A-3          89,244.79         0.00        74,897,333.61
 X-1         173,911.33         0.00       251,260,118.76
 X-2         149,656.63         0.00       260,509,903.01
 X-B          27,084.48         0.00        23,373,000.00
 B-1          15,014.48         0.00        14,874,000.00
 B-2          10,751.24         0.00         8,499,000.00
 B-3          10,568.68         0.00         4,674,000.00
 B-4           4,802.71         0.00         2,124,000.00
 B-5           4,802.71         0.00         2,124,000.00
 B-6           8,661.27         0.00         3,830,447.31
 A-R               0.23         0.00                 0.00
           ------------         ----
Totals     1,921,973.90         0.00
           ------------         ----
</TABLE>

(4)   Amount does not include excess special hazard, bankruptcy, or fraud losses
      unless otherwise disclosed. Please refer to the prospectus supplement for
      a full description.
<PAGE>

                    INTEREST DISTRIBUTION FACTORS STATEMENT

<TABLE>
<CAPTION>
                                                                               Payment of
                               Current       Beginning                           Unpaid      Current      Non-Supported
  Class      Original Face   Certificate    Certificate/    Current Accrued     Interest     Interest        Interest     Realized
   (5)          Amount          Rate      Notional Balance      Interest        Shortfall    Shortfall      Shortfall     Loss (6)
---------   ---------------  -----------  ----------------  ---------------   ------------   ----------   -------------   --------
<S>         <C>              <C>          <C>               <C>               <C>            <C>          <C>            <C>
   A-1       553,000,000.00    2.74715%     1000.00000000        2.28929036     0.00000000   0.00000000    0.00000000     0.00000000
   A-2       185,867,000.00    1.36000%     1000.00000000        0.86888888     0.00000000   0.00000000    0.00000000     0.00000000
   A-3        75,000,000.00    1.86250%     1000.00000000        1.18993053     0.00000000   0.00000000    0.00000000     0.00000000
   X-1                 0.00    0.80000%     1000.00000000        0.66666665     0.00000000   0.00000000    0.00000000     0.00000000
   X-2                 0.00    0.68843%     1000.00000000        0.57368939     0.00000000   0.00000000    0.00000000     0.00000000
   X-B                 0.00    1.39055%     1000.00000000        1.15879348     0.00000000   0.00000000    0.00000000     0.00000000
   B-1        14,874,000.00    1.58000%     1000.00000000        1.00944467     0.00000000   0.00000000    0.00000000     0.00000000
   B-2         8,499,000.00    1.98000%     1000.00000000        1.26500059     0.00000000   0.00000000    0.00000000     0.00000000
   B-3         4,674,000.00    2.71340%     1000.00000000        2.26116389     0.00000000   0.00000000    0.00000000     0.00000000
   B-4         2,124,000.00    2.71340%     1000.00000000        2.26116290     0.00000000   0.00000000    0.00000000     0.00000000
   B-5         2,124,000.00    2.71340%     1000.00000000        2.26116290     0.00000000   0.00000000    0.00000000     0.00000000
   B-6         3,830,447.31    2.71340%     1000.00000000        2.26116411     0.00000000   0.00000000    0.00000000     0.00000000
   A-R               100.00    2.74715%     1000.00000000        2.30000000     0.00000000   0.00000000    0.00000000     0.00000000

<CAPTION>
                             Remaining
                               Unpaid
             Total Interest   Interest    Ending Certificate/
Class (5)     Distribution   Shortfall    Notational Balance
---------   ---------------  ----------   -------------------
<S>         <C>              <C>          <C>
   A-1         2.28929038    0.00000000       990.33778029
   A-2         0.86888888    0.00000000       998.63111472
   A-3         1.18993053    0.00000000       998.63111480
   X-1         0.66666665    0.00000000       963.17325978
   X-2         0.57368939    0.00000000       998.63111474
   X-B         1.15879348    0.00000000      1000.00000000
   B-1         1.00944467    0.00000000      1000.00000000
   B-2         1.26500059    0.00000000      1000.00000000
   B-3         2.26116389    0.00000000      1000.00000000
   B-4         2.26116290    0.00000000      1000.00000000
   B-5         2.26116290    0.00000000      1000.00000000
   B-6         2.26116411    0.00000000      1000.00000000
   A-R         2.30000000    0.00000000         0.00000000
</TABLE>

(5) Per $1 Denomination

(6) Amount does not include excess special hazard, bankcruptcy, or fraud losses
    unless otherwise disclosed.Please refer to other prospectus supplement for
    full description.

                      CERTIFICATEHOLDER ACCOUNT STATEMENT

                              CERTIFICATE ACCOUNT
<TABLE>
<S>                                                                           <C>
Beginning Balance                                                                     0.00

Deposits

         Payments of Interest and Principal                                   7,868,274.22
         Liquidations, Insurance Proceeds, Reserve Funds                              0.00
         Proceeds from Repurchased Loans                                              0.00
         Other Amounts (Servicer Advances)                                       26,454.17
         Realized Losses (Gains, Subsequent Expenses & Recoveries)                    0.00
         Prepayment Penalties                                                         0.00
                                                                              ------------
Total Deposits                                                                7,894,728.39

Withdrawals

         Reimbursement for Servicer Advances                                          0.00
         Payment of Service Fee                                                 272,350.00
         Payment of Interest and Principal                                    7,622,378.39
                                                                              ------------
Total Withdrawals (Pool Distribution Amount)                                  7,894,728.39

Ending Balance                                                                        0.00
                                                                              ============
</TABLE>

<PAGE>

                    PREPAYMENT/CURTAILMENT INTEREST SHORTFALL

<TABLE>
<S>                                                              <C>
Total Prepayment/Curtailment Interest Shortfall                  0.00
Servicing Fee Support                                            0.00
                                                                 ----
Non-Supported Prepayment Curtailment Interest Shortfall          0.00
                                                                 ====
</TABLE>

                                 SERVICING FEES
<TABLE>
<S>                                                         <C>
Gross Servicing Fee                                         265,825.33
Master Servicing Fee                                          5,312.48
PMI                                                           1,212.19
Supported Prepayment/Curtailment Interest Shortfall               0.00
                                                            ----------

Net Servicing Fee                                           272,350.00
                                                            ==========
</TABLE>

                                 OTHER ACCOUNTS
<TABLE>
<CAPTION>
                             Beginning          Current           Current        Ending
       Account Type           Balance         Withdrawals        Deposits       Balance
  ---------------------      ----------       ----------         --------       --------
  <S>                        <C>              <C>                <C>            <C>
  Class X-1 Sub Account        4,500.00             0.00             0.00       4,500.00
  Class X-2 Sub Account        4,500.00             0.00             0.00       4,500.00
  Class X-B Sub Account        1,000.00             0.00             0.00       1,000.00
</TABLE>

<PAGE>
             LOAN STATUS STRATIFICATION/CREDIT ENHANCEMENT STATEMENT

<TABLE>
<CAPTION>
              DELINQUENT                            BANKRUPTCY                         FORECLOSURE
---------------------------------------  ---------------------------------  ----------------------------------
                No. of      Principal                 No. of    Principal                 No. of    Principal
                 Loans       Balance                  Loans      Balance                  Loans      Balance
<S>            <C>        <C>            <C>        <C>         <C>         <C>         <C>         <C>
0-29 Days             0            0.00  0-29 Days         0        0.00    0-29 Days          0        0.00
30 Days              24   11,141,916.70  30 Days           0        0.00    30 Days            0        0.00
60 Days               0            0.00  60 Days           0        0.00    60 Days            0        0.00
90 Days               0            0.00  90 Days           0        0.00    90 Days            0        0.00
120 Days              0            0.00  120 Days          0        0.00    120 Days           0        0.00
150 Days              0            0.00  150 Days          0        0.00    150 Days           0        0.00
180+ Days             0            0.00  180+ Days         0        0.00    180+ Days          0        0.00
               --------   -------------             --------    --------                --------    --------
                     24   11,141,916.70                    0        0.00                       0        0.00

                No. of      Principal                 No. of    Principal                 No. of    Principal
                 Loans       Balance                  Loans      Balance                  Loans      Balance

0-29 Days      0.000000%       0.000000% 0-29 Days  0.000000%   0.000000%   0-29 Days   0.000000%   0.000000%
30 Days        0.988875%       1.319674% 30 Days    0.000000%   0.000000%   30 Days     0.000000%   0.000000%
60 Days        0.000000%       0.000000% 60 Days    0.000000%   0.000000%   60 Days     0.000000%   0.000000%
90 Days        0.000000%       0.000000% 90 Days    0.000000%   0.000000%   90 Days     0.000000%   0.000000%
120 Days       0.000000%       0.000000% 120 Days   0.000000%   0.000000%   120 Days    0.000000%   0.000000%
150 Days       0.000000%       0.000000% 150 Days   0.000000%   0.000000%   150 Days    0.000000%   0.000000%
180+ Days      0.000000%       0.000000% 180+ Days  0.000000%   0.000000%   180+ Days   0.000000%   0.000000%
               --------   -------------             --------    --------                --------    --------
               0.988875%       1.319674%            0.000000%   0.000000%               0.000000%   0.000000%

<CAPTION>
                REO                                  TOTAL
-----------------------------------  -------------------------------------
              No. of     Principal                 No. of      Principal
               Loans      Balance                  Loans        Balance
<S>          <C>         <C>         <C>         <C>         <C>
0-29 Days           0        0.00    0-29 Days          0             0.00
30 Days             0        0.00    30 Days           24    11,141,916.70
60 Days             0        0.00    60 Days            0             0.00
90 Days             0        0.00    90 Days            0             0.00
120 Days            0        0.00    120 Days           0             0.00
150 Days            0        0.00    150 Days           0             0.00
180+ Days           0        0.00    180+ Days          0             0.00
             --------    --------                --------    -------------
                    0        0.00                      24    11,141,916.70

              No. of     Principal                 No. of        Principal
               Loans      Balance                  Loans          Balance

0-29 Days    0.000000%   0.000000%   0-29 Days   0.000000%        0.000000%
30 Days      0.000000%   0.000000%   30 Days     0.988875%        1.319674%
60 Days      0.000000%   0.000000%   60 Days     0.000000%        0.000000%
90 Days      0.000000%   0.000000%   90 Days     0.000000%        0.000000%
120 Days     0.000000%   0.000000%   120 Days    0.000000%        0.000000%
150 Days     0.000000%   0.000000%   150 Days    0.000000%        0.000000%
180+ Days    0.000000%   0.000000%   180+ Days   0.000000%        0.000000%
             --------    --------                --------    -------------
             0.000000%   0.000000%               0.988875%        1.319674%
</TABLE>

<TABLE>
<S>                                         <C>   <C>                                           <C>   <C>               <C>
Current Period Class A Insufficient Funds:  0.00  Principal Balance of Contaminated Properties  0.00  Periodic Advance  26,454.17
</TABLE>

<TABLE>
<CAPTION>
                Original $          Original%          Current $           Current %          Current Class %      Prepayment %
               -------------       ----------        -------------         ----------         ---------------      ------------
<S>            <C>                 <C>               <C>                   <C>                <C>                  <C>
Class A        36,125,447.31       4.25008989%       36,125,447.31         4.27878521%           95.721215%          0.000000%
Class X-1      36,125,447.31       4.25008989%       36,125,447.31         4.27878521%            0.000000%          0.000000%
Class X-2      36,125,447.31       4.25008989%       36,125,447.31         4.27878521%            0.000000%          0.000000%
Class B-1      21,251,447.31       2.50019219%       21,251,447.31         2.51707273%            1.761712%         41.173193%
Class B-2      12,752,447.31       1.50030107%       12,752,447.31         1.51043065%            1.006642%         23.526352%
Class B-3       8,078,447.31       0.95041390%        8,078,447.31         0.95683081%            0.553600%         12.938248%
Class B-4       5,954,447.31       0.70052936%        5,954,447.31         0.70525912%            0.251572%          5.879512%
Class B-5       3,830,447.31       0.45064481%        3,830,447.31         0.45368743%            0.251572%          5.879512%
Class B-6               0.00       0.00000000%                0.00         0.00000000%            0.453687%         10.603183%
</TABLE>

Please refer to the prospectus supplement for a full description of loss
exposure

<PAGE>

                           DELINQUENCY STATUS BY GROUP

<TABLE>
<CAPTION>
              DELINQUENT                            BANKRUPTCY                         FORECLOSURE
---------------------------------------  ---------------------------------  ----------------------------------
GROUP ONE
                 No. of     Principal                 No. of    Principal                 No. of    Principal
                 Loans       Balance                  Loans      Balance                  Loans      Balance
<S>            <C>         <C>           <C>        <C>         <C>         <C>         <C>         <C>
0-29 Days             0            0.00  0-29 Days         0        0.00    0-29 Days          0        0.00
30 Days              13    6,772,905.70  30 Days           0        0.00    30 Days            0        0.00
60 Days               0            0.00  60 Days           0        0.00    60 Days            0        0.00
90 Days               0            0.00  90 Days           0        0.00    90 Days            0        0.00
120 Days              0            0.00  120 Days          0        0.00    120 Days           0        0.00
150 Days              0            0.00  150 Days          0        0.00    150 Days           0        0.00
180+ Days             0            0.00  180+ Days         0        0.00    180+ Days          0        0.00
               --------    ------------             --------    --------                --------    --------
                     13    6,772,905.70                    0        0.00                       0        0.00

                 No. of     Principal                 No. of    Principal                 No. of    Principal
                 Loans       Balance                  Loans      Balance                  Loans      Balance

0-29 Days      0.000000%       0.000000% 0-29 Days  0.000000%   0.000000%   0-29 Days   0.000000%   0.000000%
30 Days        0.765156%       1.183654% 30 Days    0.000000%   0.000000%   30 Days     0.000000%   0.000000%
60 Days        0.000000%       0.000000% 60 Days    0.000000%   0.000000%   60 Days     0.000000%   0.000000%
90 Days        0.000000%       0.000000% 90 Days    0.000000%   0.000000%   90 Days     0.000000%   0.000000%
120 Days       0.000000%       0.000000% 120 Days   0.000000%   0.000000%   120 Days    0.000000%   0.000000%
150 Days       0.000000%       0.000000% 150 Days   0.000000%   0.000000%   150 Days    0.000000%   0.000000%
180+ Days      0.000000%       0.000000% 180+ Days  0.000000%   0.000000%   180+ Days   0.000000%   0.000000%
               --------    ------------             --------    --------                --------    --------
               0.765156%       1.183654%            0.000000%   0.000000%               0.000000%   0.000000%

<CAPTION>
                REO                                  TOTAL
-----------------------------------  -------------------------------------
              No. of     Principal                 No. of      Principal
               Loans      Balance                  Loans        Balance
<S>          <C>         <C>         <C>         <C>          <C>
0-29 Days           0        0.00    0-29 Days          0             0.00
30 Days             0        0.00    30 Days           13     6,772,905.70
60 Days             0        0.00    60 Days            0             0.00
90 Days             0        0.00    90 Days            0             0.00
120 Days            0        0.00    120 Days           0             0.00
150 Days            0        0.00    150 Days           0             0.00
180+ Days           0        0.00    180+ Days          0             0.00
             --------    --------                --------     ------------
                    0        0.00                      13     6,772,905.70

              No. of     Principal                 No. of      Principal
               Loans      Balance                  Loans        Balance

0-29 Days    0.000000%   0.000000%   0-29 Days   0.000000%        0.000000%
30 Days      0.000000%   0.000000%   30 Days     0.765156%        1.183654%
60 Days      0.000000%   0.000000%   60 Days     0.000000%        0.000000%
90 Days      0.000000%   0.000000%   90 Days     0.000000%        0.000000%
120 Days     0.000000%   0.000000%   120 Days    0.000000%        0.000000%
150 Days     0.000000%   0.000000%   150 Days    0.000000%        0.000000%
180+ Days    0.000000%   0.000000%   180+ Days   0.000000%        0.000000%
             --------    --------                --------     ------------
             0.000000%   0.000000%               0.765156%        1.183654%
</TABLE>

<TABLE>
<CAPTION>
              DELINQUENT                            BANKRUPTCY                         FORECLOSURE
---------------------------------------  ---------------------------------  ----------------------------------
GROUP TWO                                           1.183654%
                No. of      Principal                 No. of    Principal                 No. of    Principal
                 Loans       Balance                  Loans      Balance                  Loans      Balance
<S>            <C>         <C>           <C>        <C>         <C>         <C>         <C>         <C>
0-29 Days             0            0.00  0-29 Days         0        0.00    0-29 Days          0        0.00
30 Days              11    4,369,011.00  30 Days           0        0.00    30 Days            0        0.00
60 Days               0            0.00  60 Days           0        0.00    60 Days            0        0.00
90 Days               0            0.00  90 Days           0        0.00    90 Days            0        0.00
120 Days              0            0.00  120 Days          0        0.00    120 Days           0        0.00
150 Days              0            0.00  150 Days          0        0.00    150 Days           0        0.00
180+ Days             0            0.00  180+ Days         0        0.00    180+ Days          0        0.00
               --------    ------------             --------    --------                --------    --------
                     11    4,369,011.00                    0        0.00                       0        0.00

                No. of      Principal                 No. of    Principal                 No. of    Principal
                 Loans       Balance                  Loans      Balance                  Loans      Balance

0-29 Days      0.000000%       0.000000% 0-29 Days  0.000000%   0.000000%   0-29 Days   0.000000%   0.000000%
30 Days        1.510989%       1.605723% 30 Days    0.000000%   0.000000%   30 Days     0.000000%   0.000000%
60 Days        0.000000%       0.000000% 60 Days    0.000000%   0.000000%   60 Days     0.000000%   0.000000%
90 Days        0.000000%       0.000000% 90 Days    0.000000%   0.000000%   90 Days     0.000000%   0.000000%
120 Days       0.000000%       0.000000% 120 Days   0.000000%   0.000000%   120 Days    0.000000%   0.000000%
150 Days       0.000000%       0.000000% 150 Days   0.000000%   0.000000%   150 Days    0.000000%   0.000000%
180+ Days      0.000000%       0.000000% 180+ Days  0.000000%   0.000000%   180+ Days   0.000000%   0.000000%
               --------    ------------             --------    --------                --------    --------
               1.510989%       1.605723%            0.000000%   0.000000%               0.000000%   0.000000%

<CAPTION>
                REO                                  TOTAL
-----------------------------------  -------------------------------------
              No. of     Principal                 No. of      Principal
               Loans      Balance                  Loans        Balance
<C>          <C>         <C>         <C>         <C>          <C>
0-29 Days           0        0.00    0-29 Days          0             0.00
30 Days             0        0.00    30 Days           11     4,369,011.00
60 Days             0        0.00    60 Days            0             0.00
90 Days             0        0.00    90 Days            0             0.00
120 Days            0        0.00    120 Days           0             0.00
150 Days            0        0.00    150 Days           0             0.00
180+ Days           0        0.00    180+ Days          0             0.00
             --------    --------                --------     ------------
                    0        0.00                      11     4,369,011.00

              No. of     Principal                 No. of       Principal
               Loans      Balance                  Loans         Balance

0-29 Days    0.000000%   0.000000%   0-29 Days   0.000000%        0.000000%
30 Days      0.000000%   0.000000%   30 Days     1.510989%        1.605723%
60 Days      0.000000%   0.000000%   60 Days     0.000000%        0.000000%
90 Days      0.000000%   0.000000%   90 Days     0.000000%        0.000000%
120 Days     0.000000%   0.000000%   120 Days    0.000000%        0.000000%
150 Days     0.000000%   0.000000%   150 Days    0.000000%        0.000000%
180+ Days    0.000000%   0.000000%   180+ Days   0.000000%        0.000000%
             --------    --------                --------     ------------
             0.000000%   0.000000%               1.510989%        1.605723%
</TABLE>

<PAGE>

                              COLLATERAL STATEMENT

<TABLE>
<CAPTION>
           Collateral Description                                  Mixed Arm
<S>                                                             <C>
Weighted Average Gross Coupon                                         3.097896%
Weighted Average Net Coupon                                           2.722610%
Weighted Average Pass-Through Rate                                    2.713399%
Weighted Average Maturity (Stepdown Calculation)                           342

Beginning Scheduled Collateral Loan Count                                2,436
Number of Loans Paid in Full                                                 9
Ending Scheduled Collateral Loan Count                                   2,427

Beginning Scheduled Collateral Balance                          849,992,547.31
Ending Scheduled Collateral Balance                             844,292,142.82
Ending Actual Collateral Balance at 28-May-2004                 844,293,073.50

Monthly P&I Constant                                              2,194,323.89
Special Servicing Fee                                                     0.00
Prepayment Penalties                                                      0.00
Realization Loss Amount                                                   0.00
Cumulative Realized Loss                                                  0.00

Class A Optimal Amount                                            7,540,692.82

Ending Scheduled Balance for Premium Loans                      844,292,142.82

Scheduled Principal                                                       0.00
Unscheduled Principal                                             5,700,404.49
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
            GROUP                     GROUP ONE            GROUP TWO              TOTAL
<S>                               <C>                    <C>                <C>
Collateral Description            6 Month LIBOR ARM           Mixed ARM          Mixed ARM
Weighted Average Coupon Rate               3.131794            3.026037           3.097896
Weighted Average Net Rate                  2.756373            2.651037           2.722610
Pass-Through Rate                          2.747148            2.641854           2.713399
Weighted Average Maturity                       344                 337                342
Record Date                              05/28/2004          05/28/2004         05/28/2004
Principal and Interest Constant        1,507,295.55          687,028.34       2,194,323.89
Beginning Loan Count                          1,708                 728              2,436
Loans Paid in Full                                9                   0                  9
Ending Loan Count                             1,699                 728              2,427
Beginning Scheduled Balance          577,545,770.75      272,446,776.56     849,992,547.31
Ending Scheduled Balance             572,202,463.25      272,089,679.57     844,292,142.82
Scheduled Principal                            0.00                0.00               0.00
Unscheduled Principal                  5,343,307.50          357,096.99       5,700,404.49
Scheduled Interest                     1,507,295.55          687,028.34       2,194,323.89
Servicing Fee                            180,685.71           85,139.62         265,825.33
Master Servicing Fee                       3,609.68            1,702.80           5,312.48
Trustee Fee                                    0.00                0.00               0.00
FRY Amount                                     0.00                0.00               0.00
Special Hazard Fee                             0.00                0.00               0.00
Other Fee                                    830.21              381.98           1,212.19
Pool Insurance Fee                             0.00                0.00               0.00
Spread 1                                       0.00                0.00               0.00
Spread 2                                       0.00                0.00               0.00
Spread 3                                       0.00                0.00               0.00
Net Interest                           1,322,169.95          599,803.94       1,921,973.89
Realized Loss Amount                           0.00                0.00               0.00
Cumulative Realized Loss                       0.00                0.00               0.00
Percentage of Cumulative Losses                0.00                0.00               0.00
Prepayment Penalties                           0.00                0.00               0.00
Special Servicing Fee                          0.00                0.00               0.00
</TABLE>

<PAGE>
MISCELLANEOUS REPORTING

<TABLE>
<S>                                 <C>
Group One

Six-Month Libor Loan Balance        72,202,463.25
Interest Transfer Amount                     0.00
Principal Transfer Amount                    0.00
Prorata Senior Percentage               95.750004%
Senior Percentage                      100.000000%
Senior Prepayment Percentage           100.000000%
Subordinate Percentage                   0.000000%
Subordinate Prepayment Percentage        0.000000%

Group Two

One-Month Libor Loan Balance        50,105,568.90
Six-Month Libor Loan Balance        21,984,110.67
Interest Transfer Amount                     0.00
Principal Transfer Amount                    0.00
Prorata Senior Percentage               95.749711%
Senior Percentage                      100.000000%
Senior Prepayment Percentage           100.000000%
Subordinate Percentage                   0.000000%
Subordinate Prepayment Percentage        0.000000%
</TABLE>TRUST SUPPLEMENT No. 2004-ERJ1

                            Dated as of June 29, 2004

                                     between

                            WILMINGTON TRUST COMPANY,
                                   as Trustee,

                                       and

                           CONTINENTAL AIRLINES, INC.

                                       to

                          PASS THROUGH TRUST AGREEMENT
                         Dated as of September 25, 1997

                                  $173,629,000

             Continental Airlines Pass Through Trust 2004-ERJ1
                           9.558% Continental Airlines
                           Pass Through Certificates,
                                Series 2004-ERJ1

<PAGE>

            This Trust Supplement No. 2004-ERJ1, dated as of June 29, 2004
(herein called the "TRUST SUPPLEMENT"), between Continental Airlines, Inc., a
Delaware corporation (the "COMPANY"), and Wilmington Trust Company (the
"TRUSTEE"), to the Pass Through Trust Agreement, dated as of September 25, 1997,
between the Company and the Trustee (the "BASIC AGREEMENT").

                            W I T N E S S E T H:
                            - - - - - - - - - -

            WHEREAS, the Basic Agreement, unlimited as to the aggregate
principal amount of Certificates (unless otherwise specified herein, capitalized
terms used herein without definition having the respective meanings specified in
the Basic Agreement) which may be issued thereunder, has heretofore been
executed and delivered;

            WHEREAS, the Company wishes to lease certain Aircraft from the
relevant Owner Trustees;

            WHEREAS, in the case of each Aircraft, the related Owner Trustee,
acting on behalf of the related Owner Participant, will issue pursuant to an
Indenture, on a non-recourse basis, one series of Equipment Notes in order to
finance the debt portion of the purchase price of such Aircraft;

            WHEREAS, the Trustee hereby declares the creation of this
Continental Airlines Pass Through Trust 2004-ERJ1 (the "APPLICABLE TRUST") for
the benefit of the Applicable Certificateholders, and the initial Applicable
Certificateholders as the grantors of the Applicable Trust, by their respective
acceptances of the Applicable Certificates, join in the creation of the
Applicable Trust with the Trustee;

            WHEREAS, all Certificates to be issued by the Applicable Trust will
evidence fractional undivided interests in the Applicable Trust and will convey
no rights, benefits or interests in respect of any property other than the Trust
Property except for those Certificates to which an Escrow Receipt has been
affixed;

            WHEREAS, the Escrow Agent and the Underwriters have
contemporaneously herewith entered into an Escrow Agreement with the Escrow
Paying Agent pursuant to which the Underwriters have delivered to the Escrow
Agent the proceeds from the sale of the Applicable Certificates, to the extent
not used to purchase Equipment Notes on the Issuance Date, and have irrevocably
instructed the Escrow Agent to withdraw and pay funds from such proceeds upon
request and proper certification by the Trustee to purchase Equipment Notes as
the Aircraft are financed under the NPA (as hereinafter defined) from time to
time prior to the Delivery Period Termination Date;

            WHEREAS, the Escrow Agent on behalf of the Applicable
Certificateholders has contemporaneously herewith entered into a Deposit
Agreement with the Depositary under which the Deposits referred to therein will
be made and from which it will withdraw funds to allow the Trustee to purchase
Equipment Notes from time to time prior to the Delivery Period Termination Date;

<PAGE>

            WHEREAS, pursuant to the terms and conditions of the Basic Agreement
as supplemented by this Trust Supplement (the "AGREEMENT") and the NPA, upon the
financing of an Aircraft, the Trustee on behalf of the Applicable Trust, using
funds withdrawn under the Escrow Agreement (or, if financed on the Issuance
Date, using a portion of the proceeds of the sale of the Applicable
Certificates), shall purchase one or more Equipment Notes having the same
interest rate as, and final maturity date not later than the final Regular
Distribution Date of, the Applicable Certificates issued hereunder and shall
hold such Equipment Notes in trust for the benefit of the Applicable
Certificateholders;

            WHEREAS, all of the conditions and requirements necessary to make
this Trust Supplement, when duly executed and delivered, a valid, binding and
legal instrument in accordance with its terms and for the purposes herein
expressed, have been done, performed and fulfilled, and the execution and
delivery of this Trust Supplement in the form and with the terms hereof have
been in all respects duly authorized; and

            WHEREAS, this Trust Supplement is subject to the provisions of the
Trust Indenture Act of 1939, as amended, and shall, to the extent applicable, be
governed by such provisions.

            NOW THEREFORE, in consideration of the premises herein, it is agreed
between the Company and the Trustee as follows:

                                    ARTICLE I
                                THE CERTIFICATES

            Section 1.01. THE CERTIFICATES. There is hereby created a series of
Certificates to be issued under the Agreement to be distinguished and known as
"9.558% Continental Airlines Pass Through Certificates, Series 2004-ERJ1"
(hereinafter defined as the "APPLICABLE CERTIFICATES"). Each Applicable
Certificate represents a fractional undivided interest in the Applicable Trust
created hereby. The Applicable Certificates shall be the only instruments
evidencing a fractional undivided interest in the Applicable Trust.

            The terms and conditions applicable to the Applicable Certificates
are as follows:

            (a) The aggregate principal amount of the Applicable Certificates
      that shall be authenticated under the Agreement (except for Applicable
      Certificates authenticated and delivered pursuant to Sections 3.03, 3.04,
      3.05 and 3.06 of the Basic Agreement) is $173,629,000.

            (b) The Regular Distribution Dates with respect to any payment of
      Scheduled Payments means the 1st day of each month, commencing on August
      1, 2004, until payment of all of the Scheduled Payments to be made under
      the Equipment Notes has been made.

<PAGE>

            (c) The Special Distribution Dates with respect to the Applicable
      Certificates means any Business Day on which a Special Payment is to be
      distributed pursuant to the Agreement.

            (d) At the Escrow Agent's request under the Escrow Agreement, the
      Trustee shall affix the corresponding Escrow Receipt to each Applicable
      Certificate. In any event, any transfer or exchange of any Applicable
      Certificate shall also effect a transfer or exchange of the related Escrow
      Receipt. Prior to the Final Withdrawal Date, no transfer or exchange of
      any Applicable Certificate shall be permitted unless the corresponding
      Escrow Receipt is attached thereto and also is so transferred or
      exchanged. By acceptance of any Applicable Certificate to which an Escrow
      Receipt is attached, each Holder of such an Applicable Certificate
      acknowledges and accepts the restrictions on transfer of the Escrow
      Receipt set forth herein and in the Escrow Agreement.

            (e) (i) The Applicable Certificates shall be in the form attached
      hereto as Exhibit A. Any Person acquiring or accepting an Applicable
      Certificate or an interest therein will, by such acquisition or
      acceptance, be deemed to represent and warrant to and for the benefit of
      each Owner Participant and the Company that either (i) the assets of an
      employee benefit plan subject to Title I of the Employee Retirement Income
      Security Act of 1974, as amended ("ERISA"), or of a plan subject to
      Section 4975 of the Internal Revenue Code of 1986, as amended (the
      "CODE"), have not been used to purchase Applicable Certificates or an
      interest therein or (ii) the purchase and holding of Applicable
      Certificates or an interest therein is exempt from the prohibited
      transaction restrictions of ERISA and the Code pursuant to one or more
      prohibited transaction statutory or administrative exemptions.

            (ii) The Applicable Certificates shall be Book-Entry Certificates
      and shall be subject to the conditions set forth in the Letter of
      Representations between the Company and the Clearing Agency attached
      hereto as Exhibit B.

            (f) The "Participation Agreements" as defined in this Trust
      Supplement are the "Note Purchase Agreements" referred to in the Basic
      Agreement.

            (g) The Applicable Certificates are subject to the Intercreditor
      Agreement, the Deposit Agreement and the Escrow Agreement.

            (h) The Applicable Certificates are entitled to the benefits of the
      Liquidity Facilities.

            (i) The Responsible Party is the Company.

            (j) The date referred to in clause (i) of the definition of the term
      "PTC Event of Default" in the Basic Agreement is the Final Maturity Date.

<PAGE>

            (k) The "particular sections of the Note Purchase Agreement", for
      purposes of clause (3) of Section 7.07 of the Basic Agreement, are Section
      9.1 of each Participation Agreement.

            (l) The Equipment Notes to be acquired and held in the Applicable
      Trust, and the related Aircraft and Note Documents, are described in the
      NPA.

                                   ARTICLE II
                                   DEFINITIONS

            Section 2.01. DEFINITIONS. For all purposes of the Basic Agreement
as supplemented by this Trust Supplement, the following capitalized terms have
the following meanings (any term used herein which is defined in both this Trust
Supplement and the Basic Agreement shall have the meaning assigned thereto in
this Trust Supplement for purposes of the Basic Agreement as supplemented by
this Trust Supplement):

            AGREEMENT:  Has the meaning specified in the recitals hereto.

            AIRCRAFT: Means each of the Aircraft (as defined in the NPA) or
      Substitute Aircraft in respect of which a Participation Agreement is to be
      or is, as the case may be, entered into in accordance with the NPA (or any
      substitute aircraft, including engines therefor, leased to the Company and
      securing one or more Equipment Notes).

            AIRCRAFT PURCHASE AGREEMENT:  Means the "Purchase Agreement" as
      defined in the NPA.

            APPLICABLE CERTIFICATE:  Has the meaning specified in
      Section 1.01 of this Trust Supplement.

            APPLICABLE CERTIFICATEHOLDER:  Means the Person in whose name
      an Applicable Certificate is registered on the Register for the
      Applicable Certificates.

            APPLICABLE CLOSING DATE:  Has the meaning specified in Section
      5.01(b) of this Trust Supplement.

            APPLICABLE PARTICIPATION AGREEMENT:  Has the meaning specified
      in Section 5.01(b) of this Trust Supplement.

            APPLICABLE TRUST:  Has the meaning specified in the recitals
      hereto.

            BASIC AGREEMENT:  Has the meaning specified in the first
      paragraph of this Trust Supplement.

            BUSINESS DAY: Means any day other than a Saturday, a Sunday or a day
      on which commercial banks are required or authorized to close in Houston,

<PAGE>

      Texas, New York, New York, Salt Lake City, Utah or, so long as any
      Applicable Certificate is Outstanding, the city and state in which the
      Trustee or any Loan Trustee maintains its Corporate Trust Office or
      receives and disburses funds.

            COMPANY:  Has the meaning specified in the first paragraph of
      this Trust Supplement.

            CONTROLLING PARTY:  Has the meaning specified in the
      Intercreditor Agreement.

            CUT-OFF DATE:  Means the earlier of (a) the Delivery Period
      Termination Date and (b) the date on which a Triggering Event occurs.

            DELIVERY NOTICE:  Has the meaning specified in the NPA.

            DELIVERY PERIOD TERMINATION DATE: Means the earlier of (a) December
      31, 2004, or, if the Equipment Notes relating to all of the Aircraft (or
      Substitute Aircraft in lieu thereof) have not been purchased by the
      Trustee on or prior to such date due to any reason beyond the control of
      the Company and not occasioned by the Company's fault or negligence, March
      31, 2005 and (b) the date on which Equipment Notes issued with respect to
      all of the Aircraft (or Substitute Aircraft in lieu thereof) have been
      purchased by the Applicable Trust in accordance with the NPA.

            DEPOSIT AGREEMENT: Means the Deposit Agreement dated as of June 29,
      2004 relating to the Applicable Certificates between the Depositary and
      the Escrow Agent, as the same may be amended, supplemented or otherwise
      modified from time to time in accordance with its terms.

            DEPOSITARY: Means WestLB AG, a joint stock company
      ("Aktiengesellschaft") organized under the laws of Germany, acting through
      its New York Branch.

            DEPOSITS:  Has the meaning specified in the Deposit Agreement.

            DISTRIBUTION DATE:  Means any Regular Distribution Date or
      Special Distribution Date as the context requires.

            EMBRAER:  Means Embraer-Empresa Brasileira de Aeronautica S.A.

            ESCROW AGENT: Means, initially, Wells Fargo Bank Northwest, National
      Association, and any replacement or successor therefor appointed in
      accordance with the Escrow Agreement.

            ESCROW AGREEMENT: Means the Escrow and Paying Agent Agreement dated
      as of June 29, 2004 relating to the Applicable Certificates, among the
      Escrow Agent, the Escrow Paying Agent, the Trustee and Underwriters, as
      the same may be amended, supplemented or otherwise modified from time to
      time in accordance with its terms.

<PAGE>

            ESCROW PAYING AGENT: Means the Person acting as paying agent under
      the Escrow Agreement.

            ESCROW RECEIPT: Means the receipt substantially in the form annexed
      to the Escrow Agreement representing a fractional undivided interest in
      the funds held in escrow thereunder.

            FINAL MATURITY DATE:  Means March 1, 2021.

            FINAL WITHDRAWAL:  Has the meaning specified in the Escrow
      Agreement.

            FINAL WITHDRAWAL DATE:  Has the meaning specified in the Escrow
      Agreement.

            FINAL WITHDRAWAL NOTICE:  Has the meaning specified in Section
      5.02 of this Trust Supplement.

            INDENTURE: Means each of the separate trust indentures and mortgages
      relating to the Aircraft, each as specified or described in a Delivery
      Notice delivered pursuant to the NPA or the related Participation
      Agreement, in each case as the same may be amended, supplemented or
      otherwise modified from time to time in accordance with its terms.

            INTERCREDITOR AGREEMENT: Means the Intercreditor Agreement dated as
      of June 29, 2004 among the Trustee, the Liquidity Providers and Wilmington
      Trust Company, as Subordination Agent and as trustee thereunder, as
      amended, supplemented or otherwise modified from time to time in
      accordance with its terms.

            INVESTORS: Means the Underwriters together with all subsequent
      beneficial owners of the Applicable Certificates.

            LIQUIDITY FACILITIES: Means, initially, (i) the Revolving Credit
      Agreement dated as of June 29, 2004 relating to the Applicable
      Certificates, between WestLB AG, New York Branch, and Wilmington Trust
      Company, as Subordination Agent, as agent and trustee for the Applicable
      Trust and (ii) the Revolving Credit Agreement dated as of June 29, 2004
      relating to the Applicable Certificates, between Citicorp North America,
      Inc. and Wilmington Trust Company, as Subordination Agent, as agent and
      trustee for the Applicable Trust, and, from and after the replacement of
      either such agreement pursuant to the Intercreditor Agreement, the
      replacement liquidity facility therefor, in each case as amended,
      supplemented or otherwise modified from time to time in accordance with
      their respective terms.

            LIQUIDITY PROVIDERS: Means, initially (i) WestLB AG, a joint stock
      company ("Aktiengesellschaft") organized under the laws of Germany, acting
      through its New York Branch, and (ii) Citicorp North America, Inc., a
      Delaware corporation, and any replacements or successors therefor
      appointed in accordance with the Intercreditor Agreement.

<PAGE>

            NOTE DOCUMENTS: Means the Equipment Notes with respect to the
      Applicable Certificates and, with respect to any such Equipment Note, the
      related Indenture, Participation Agreement and Lease.

            NOTICE OF PURCHASE WITHDRAWAL: Has the meaning specified in the
      Deposit Agreement.

            NPA: Means the Note Purchase Agreement dated as of June 29, 2004
      among the Trustee, the Company, the Escrow Agent, the Escrow Paying Agent
      and the Subordination Agent, providing for, among other things, the
      purchase of Equipment Notes by the Trustee on behalf of the Applicable
      Trust, as the same may be amended, supplemented or otherwise modified from
      time to time, in accordance with its terms.

            PARTICIPATION AGREEMENT: Means each Participation Agreement entered
      into or to be entered into, as the case may be, by the Trustee pursuant to
      the NPA, as the same may be amended, supplemented or otherwise modified
      from time to time in accordance with its terms.

            POOL BALANCE: Means, as of any date, (i) the original aggregate face
      amount of the Applicable Certificates less (ii) the aggregate amount of
      all payments made in respect of such Applicable Certificates or in respect
      of Deposits other than payments 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 any special distribution with respect to unused
      Deposits, payment of principal of the Equipment Notes or payment with
      respect to other Trust Property and the distribution thereof to be made on
      that date.

            POOL FACTOR: Means, as of any Distribution Date, the quotient
      (rounded to the seventh decimal place) computed by dividing (i) the Pool
      Balance by (ii) the original aggregate face amount of the Applicable
      Certificates. The Pool Factor as of any Distribution Date shall be
      computed after giving effect to any special distribution with respect to
      unused Deposits, payment of principal of the Equipment Notes or payments
      with respect to other Trust Property and the distribution thereof to be
      made on that date.

            PROSPECTUS SUPPLEMENT:  Means the final Prospectus Supplement
      dated June 18, 2004 relating to the offering of the Applicable
      Certificates.

            RATINGS CONFIRMATION:  Has the meaning specified in the
      Intercreditor Agreement.

            SCHEDULED CLOSING DATE:  Has the meaning specified in the NPA.

            SPECIAL PAYMENT: Means 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).

            SUBSTITUTE AIRCRAFT:  Has the meaning specified in the NPA.

<PAGE>

            TRIGGERING EVENT:  Has the meaning assigned to such term in the
      Intercreditor Agreement.

            TRUST PROPERTY: Means (i) subject to the Intercreditor Agreement,
      the Equipment Notes held as the property of the Applicable Trust, all
      monies at any time paid thereon and all monies due and to become due
      thereunder, (ii) funds from time to time deposited in the Certificate
      Account and the Special Payments Account and, subject to the Intercreditor
      Agreement, any proceeds from the sale by the Trustee pursuant to Article
      VI of the Basic Agreement of any Equipment Note and (iii) all rights of
      the Applicable Trust and the Trustee, on behalf of the Applicable Trust,
      under the Intercreditor Agreement, the Escrow Agreement, the NPA and the
      Liquidity Facilities, including, without limitation, all rights to receive
      certain payments thereunder, and all monies paid to the Trustee on behalf
      of the Applicable Trust pursuant to the Intercreditor Agreement or the
      Liquidity Facilities, PROVIDED that rights with respect to the Deposits or
      under the Escrow Agreement, except for the right to direct withdrawals for
      the purchase of Equipment Notes to be held herein, will not constitute
      Trust Property.

            TRUST SUPPLEMENT: Has the meaning specified in the first paragraph
      of this trust supplement.

            UNDERWRITERS:  Means, collectively, Citigroup Global Markets
      Inc. and Morgan Stanley & Co. Incorporated.

            UNDERWRITING AGREEMENT: Means the Underwriting Agreement dated June
      18, 2004 among the Underwriters, the Company, the Depositary and Embraer,
      as the same may be amended, supplemented or otherwise modified from time
      to time in accordance with its terms.

                                ARTICLE III
              DISTRIBUTIONS; STATEMENTS TO CERTIFICATEHOLDERS

            Section 3.01. STATEMENTS TO APPLICABLE CERTIFICATEHOLDERS. (a) On
each Distribution Date, the Trustee will include with each distribution to
Applicable Certificateholders of a Scheduled Payment or Special Payment, as the
case may be, a statement setting forth the information provided below (in the
case of a Special Payment, reflecting in part the information provided by the
Escrow Paying Agent under the Escrow Agreement). Such statement shall set forth
(per $1,000 face amount Applicable Certificate as to (ii), (iii), (iv) and (v)
below) the following information:

            (i) the aggregate amount of funds distributed on such Distribution
      Date under the Agreement and under the Escrow Agreement, indicating the
      amount allocable to each source;

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

<PAGE>

            (iii) the amount of such distribution under the Agreement allocable
      to interest;

            (iv) the amount of such distribution under the Escrow Agreement
      allocable to interest;

            (v) the amount of such distribution under the Escrow Agreement
      allocable to unused Deposits, if any; and

            (vi) the Pool Balance and the Pool Factor.

            With respect to the Applicable Certificates registered in the name
of a Clearing Agency, on the Record Date prior to each Distribution Date, the
Trustee will request from such Clearing Agency a securities position listing
setting forth the names of all Clearing Agency Participants reflected on such
Clearing Agency's books as holding interests in the Applicable Certificates on
such Record Date. On each Distribution Date, the 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 Applicable 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, the Trustee
shall furnish to each Person who at any time during such calendar year was an
Applicable Certificateholder of record a statement containing the sum of the
amounts determined pursuant to clauses (a)(i), (a)(ii), (a)(iii), (a)(iv) and
(a)(v) above for such calendar year or, in the event such Person was an
Applicable Certificateholder of record during a portion of such calendar year,
for such portion of such calendar year, and such other items as are readily
available to the Trustee and which an Applicable Certificateholder shall
reasonably request as necessary for the purpose of such Applicable
Certificateholder's preparation of its federal income tax returns. 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 Applicable Certificates in the manner described in Section 3.01(a) of
this Trust Supplement.

            (c) Promptly following (i) the Delivery Period Termination Date, if
there has been any change in the information set forth in clauses (y) and (z)
below from that set forth in pages S-32 through S-36 of the Prospectus
Supplement, and (ii) the date of any early redemption or purchase of, or any
default in the payment of principal or interest in respect of, any of the
Equipment Notes held in the Applicable Trust, or any Final Withdrawal, the
Trustee shall furnish to Applicable Certificateholders of record on such date a
statement setting forth (x) the expected Pool Balances for each subsequent
Regular Distribution Date following the Delivery Period Termination Date, (y)
the related Pool Factors for such Regular Distribution Dates and (z) the
expected principal distribution schedule of the Equipment Notes, in the
aggregate, held as Trust Property at the date of such notice. With respect to
the Applicable Certificates registered in the name of a Clearing Agency, on the
Delivery Period Termination Date, the Trustee will request from such Clearing

<PAGE>

Agency a securities position listing setting forth the names of all Clearing
Agency Participants reflected on such Clearing Agency's books as holding
interests in the Applicable Certificates on such date. The 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 Applicable
Certificates.

            (d) This Section 3.01 supersedes and replaces Section 4.03 of the
Basic Agreement, with respect to the Applicable Trust.

            Section 3.02. SPECIAL PAYMENTS ACCOUNT. (a) The Trustee shall
establish and maintain on behalf of the Applicable Certificateholders a Special
Payments Account as one or more accounts, which shall be non-interest bearing
except as provided in Section 4.04 of the Basic Agreement. The Trustee shall
hold the Special Payments Account in trust for the benefit of the Applicable
Certificateholders and shall make or permit withdrawals therefrom only as
provided in the Agreement. On each day when one or more Special Payments are
made to the Trustee under the Intercreditor Agreement, the Trustee, upon receipt
thereof, shall immediately deposit the aggregate amount of such Special Payments
in the Special Payments Account.

            (b) This Section 3.02 supersedes and replaces Section 4.01(b) of the
Basic Agreement in its entirety, with respect to the Applicable Trust.

            Section 3.03. DISTRIBUTIONS FROM SPECIAL PAYMENTS ACCOUNT. (a) On
each Special Distribution Date with respect to any Special Payment or as soon
thereafter as the Trustee has confirmed receipt of any Special Payments due on
the Equipment Notes held (subject to the Intercreditor Agreement) in the
Applicable Trust or realized upon the sale of such Equipment Notes, the Trustee
shall distribute out of the Special Payments Account the entire amount of such
Special Payment deposited therein pursuant to Section 3.02(a) of this Trust
Supplement. There shall be so distributed to each Applicable Certificateholder
of record on the Record Date with respect to such Special Distribution Date
(other than as provided in Section 11.01 of the Basic Agreement concerning the
final distribution) by check mailed to such Applicable Certificateholder, at the
address appearing in the Register, such Applicable Certificateholder's pro rata
share (based on the Fractional Undivided Interest in the Applicable Trust held
by such Applicable Certificateholder) of the total amount in the Special
Payments Account on account of such Special Payment, except that, with respect
to Applicable 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) The Trustee shall, at the expense of the Company, cause notice
of each Special Payment to be mailed to each Applicable Certificateholder at his
address as it appears in the Register. In the event of redemption or purchase of
Equipment Notes held in the Applicable 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. In the case of any other
Special Payments, such notice shall be mailed as soon as practicable after the
Trustee has confirmed that it has received funds for such Special Payment,
stating the Special Distribution Date for such Special Payment which shall occur

<PAGE>

not less than 15 days after the date of such notice and as soon as practicable
thereafter. Notices mailed by the Trustee shall set forth:

            (i) the Special Distribution Date and the Record Date therefor
      (except as otherwise provided in Section 11.01 of the Basic Agreement),

            (ii) the amount of the Special Payment for each $1,000 face amount
      Applicable 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, the total amount to be received on such date for each
      $1,000 face amount Applicable 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 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 of the Equipment Notes held in the Trust is
canceled, the Trustee, as soon as possible after learning thereof, shall cause
notice thereof to be mailed to each Applicable Certificateholder at its address
as it appears on the Register.

            (b) This Section 3.03 supersedes and replaces Section 4.02(b) and
Section 4.02(c) of the Basic Agreement in their entirety, with respect to the
Applicable Trust.

                                   ARTICLE IV
                                     DEFAULT

            Section 4.01. AMENDMENT OF SECTION 6.05 OF THE BASIC AGREEMENT.
Section 6.05 of the Basic Agreement shall be amended, with respect to the
Applicable Trust, by deleting the phrase "and thereby annul any Direction given
by such Certificateholders or the Trustee to such Loan Trustee with respect
thereto," set forth in the first sentence thereof.

                                    ARTICLE V
                                   THE TRUSTEE

            Section 5.01. DELIVERY OF DOCUMENTS; DELIVERY DATES. (a) The Trustee
is hereby directed (i) to execute and deliver the Intercreditor Agreement, the
Escrow Agreement and the NPA on or prior to the Issuance Date, each in the form
delivered to the Trustee by the Company, and (ii) subject to the respective
terms thereof, to perform its obligations thereunder. Upon request of the
Company and the satisfaction or waiver of the closing conditions specified in
the Underwriting Agreement, the Trustee shall execute, deliver, authenticate,
issue and sell Applicable Certificates in authorized denominations equaling in
the aggregate the amount set forth, with respect to the Applicable Trust, in

<PAGE>

Schedule I to the Underwriting Agreement evidencing the entire ownership
interest in the Applicable Trust, which amount equals the maximum aggregate
principal amount of Equipment Notes which may be purchased by the Trustee
pursuant to the NPA. Except as provided in Sections 3.03, 3.04, 3.05 and 3.06 of
the Basic Agreement, the Trustee shall not execute, authenticate or deliver
Applicable Certificates in excess of the aggregate amount specified in this
paragraph. The provisions of this Section 5.01(a) supersede and replace the
first sentence of Section 3.02(a) of the Basic Agreement, with respect to the
Applicable Trust.

            (b) On or after the Issuance Date, the Company may deliver from time
to time to the Trustee a Delivery Notice relating to one or more Equipment
Notes. After receipt of a Delivery Notice and in any case no later than one
Business Day prior to a Scheduled Closing Date as to which such Delivery Notice
relates (the "APPLICABLE CLOSING DATE"), the Trustee shall (as and when
specified in the Delivery Notice) instruct the Escrow Agent to provide a Notice
of Purchase Withdrawal to the Depositary requesting (A) the withdrawal of one or
more Deposits on the Applicable Closing Date in accordance with and to the
extent permitted by the terms of the Escrow Agreement and the Deposit Agreement
and (B) the payment of all, or a portion, of such Deposit or Deposits in an
amount equal in the aggregate to the purchase price of such Equipment Notes to
or on behalf of the Owner Trustee issuing such Equipment Notes, all as shall be
described in the Delivery Notice; PROVIDED that, if the Issuance Date is an
Applicable Closing Date, the Trustee shall not so instruct the Escrow Agent, and
the purchase price of such Equipment Notes shall be paid from a portion of the
proceeds of the sale of the Applicable Certificates. The Trustee shall (as and
when specified in such Delivery Notice), subject to the conditions set forth in
Section 2 of the NPA, enter into and perform its obligations under the
Participation Agreement specified in such Delivery Notice (the "APPLICABLE
PARTICIPATION AGREEMENT") and cause such certificates, documents and legal
opinions relating to the Trustee to be duly delivered as required by the
Applicable Participation Agreement. If at any time prior to the Applicable
Closing Date, the Trustee receives a notice of postponement pursuant to Section
1(e) or 1(f) of the NPA, then the Trustee shall give the Depositary (with a copy
to the Escrow Agent) a notice of cancellation of such Notice of Purchase
Withdrawal relating to such Deposit or Deposits on such Applicable Closing Date.
Upon satisfaction of the conditions specified in the NPA and the Applicable
Participation Agreement, the Trustee shall purchase the applicable Equipment
Notes with the proceeds of the withdrawals of one or more Deposits made on the
Applicable Closing Date in accordance with the terms of the Deposit Agreement
and the Escrow Agreement (or, if the Issuance Date is the Applicable Closing
Date with respect to such Applicable Participation Agreement, from a portion of
the proceeds of the sale of the Applicable Certificates; PROVIDED, that, if any
portion of such proceeds is not used to purchase Equipment Notes by 3:30 p.m.,
New York time, on such date, the Trustee (on behalf of the Investors) shall
immediately (but in no event later than 4:00 p.m., New York time, on such date)
deposit such unused proceeds with the Depositary (in Federal immediately
available funds by wire transfer) in accordance with the Deposit Agreement and
such deposit or deposits shall constitute a "Deposit" or "Deposits" (as defined
therein) for all purposes thereunder). The purchase price of such Equipment
Notes shall equal the principal amount of such Equipment Notes. Amounts
withdrawn from such Deposit or Deposits in excess of the purchase price of the
Equipment Notes or to the extent not applied on the Applicable Closing Date to
the purchase price of the Equipment Notes, shall be re-deposited by the Trustee

<PAGE>

with the Depositary on the Applicable Closing Date in accordance with the terms
of the Deposit Agreement. The provisions of this Section 5.01(b) supersede and
replace the provisions of Section 2.02 of the Basic Agreement with respect to
the Applicable Trust, and all provisions of the Basic Agreement relating to
Postponed Notes and Section 2.02 of the Basic Agreement shall not apply to the
Applicable Trust.

            (c) The Trustee acknowledges its acceptance of all right, title and
interest in and to the Trust Property to be acquired pursuant to Section 5.01(b)
of this Trust Supplement, the NPA and each Applicable Participation Agreement,
and declares that it holds and will hold such right, title and interest for the
benefit of all present and future Applicable Certificateholders, upon the trusts
set forth in the Agreement. By its acceptance of an Applicable Certificate, each
initial Applicable Certificateholder, as a grantor of the Applicable Trust,
joins with the Trustee in the creation of the Applicable Trust. The provisions
of this Section 5.01(c) supersede and replace the provisions of Section 2.03 of
the Basic Agreement, with respect to the Applicable Trust.

            Section 5.02. WITHDRAWAL OF DEPOSITS. If any Deposits remain
outstanding on the Business Day next succeeding the Cut-off Date, the Trustee
shall give the Escrow Agent notice that the Trustee's obligation to purchase
Equipment Notes under the NPA has terminated and instruct the Escrow Agent to
provide a notice of Final Withdrawal to the Depositary substantially in the form
of Exhibit B to the Deposit Agreement (the "FINAL WITHDRAWAL NOTICE").

            Section 5.03. THE TRUSTEE. (a) Subject to Section 5.04 of this Trust
Supplement and Section 7.15 of the Basic Agreement, the Trustee shall not be
responsible in any manner whatsoever for or in respect of the validity or
sufficiency of this Trust Supplement, the Deposit Agreement, the NPA or the
Escrow Agreement or the due execution hereof or thereof by the Company or the
other parties thereto (other than the Trustee), or for or in respect of the
recitals and statements contained herein or therein, all of which recitals and
statements are made solely by the Company, except that the Trustee hereby
represents and warrants that each of this Trust Supplement, the Basic Agreement,
each Applicable Certificate, the Intercreditor Agreement, the NPA and the Escrow
Agreement has been executed and delivered by one of its officers who is duly
authorized to execute and deliver such document on its behalf.

            (b) Except as herein otherwise provided and except during the
continuation of an Event of Default in respect of the Applicable Trust created
hereby, no duties, responsibilities or liabilities are assumed, or shall be
construed to be assumed, by the Trustee by reason of this Trust Supplement other
than as set forth in the Agreement, and this Trust Supplement is executed and
accepted on behalf of the Trustee, subject to all the terms and conditions set
forth in the Agreement, as fully to all intents as if the same were herein set
forth at length.

            Section 5.04. REPRESENTATIONS AND WARRANTIES OF THE TRUSTEE. The
Trustee hereby represents and warrants that:

            (a) the Trustee has full power, authority and legal right to
      execute, deliver and perform this Trust Supplement, the Intercreditor
      Agreement, the Escrow Agreement, the NPA and the Note Documents to which
      it is or is to become a party and has taken all necessary action to

<PAGE>

      authorize the execution, delivery and performance by it of this Trust
      Supplement, the Intercreditor Agreement, the Escrow Agreement, the NPA and
      the Note Documents to which it is or is to become a party;

            (b) the execution, delivery and performance by the Trustee of this
      Trust Supplement, the Intercreditor Agreement, the Escrow Agreement, the
      NPA and the Note Documents to which it is or is to become a party (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 articles
      of association or by-laws of the Trustee, and (iii) will not violate any
      provision of, or constitute, with or without notice or lapse of time, 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;

            (c) the execution, delivery and performance by the Trustee of this
      Trust Supplement, the Intercreditor Agreement, the Escrow Agreement, the
      NPA and the Note Documents to which it is or is to become a party 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; and

            (d) this Trust Supplement, the Intercreditor Agreement, the Escrow
      Agreement, the NPA and the Note Documents to which it is or is to become a
      party have been, or will be, as applicable, duly executed and delivered by
      the Trustee and constitute, or will constitute, as applicable, 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.

            Section 5.05. TRUSTEE LIENS. The Trustee in its individual capacity
agrees, in addition to the agreements contained in Section 7.17 of the Basic
Agreement, that it will at its own cost and expense promptly take any action as
may be necessary to duly discharge and satisfy in full any Trustee's Liens on or
with respect to the Trust Property which is attributable to the Trustee in its
individual capacity and which is unrelated to the transactions contemplated by
the Intercreditor Agreement or the NPA.

<PAGE>

                                 ARTICLE VI
               ADDITIONAL AMENDMENT; SUPPLEMENTAL AGREEMENTS

            Section 6.01. AMENDMENT OF SECTION 5.02 OF THE BASIC Agreement.
Section 5.02 of the Basic Agreement shall be amended, with respect to the
Applicable Trust, by (i) replacing the phrase "of the Note Documents and of this
Agreement" set forth in paragraph (b) thereof with the phrase "of the Note
Documents, of the NPA and of this Agreement" and (ii) replacing the phrase "of
this Agreement and any Note Document" set forth in the last paragraph of Section
5.02 with the phrase "of this Agreement, the NPA and any Note Document".

            Section 6.02. SUPPLEMENTAL AGREEMENTS WITHOUT CONSENT OF APPLICABLE
CERTIFICATEHOLDERS. Without limitation of Section 9.01 of the Basic Agreement,
under the terms of, and subject to the limitations contained in, Section 9.01 of
the Basic Agreement, the Company may (but will not be required to), and the
Trustee (subject to Section 9.03 of the Basic Agreement) shall, at the Company's
request, at any time and from time to time, enter into one or more agreements
supplemental to the Escrow Agreement, the NPA or the Deposit Agreement, for any
of the purposes set forth in clauses (1) through (9) of such Section 9.01, and
(without limitation of the foregoing or Section 9.01 of the Basic Agreement) (a)
clauses (2) and (3) of such Section 9.01 shall also be deemed to include the
Company's obligations under (in the case of clause (2)), and the Company's
rights and powers conferred by (in the case of clause (3)), the NPA, and (b)
references in clauses (4), (6) and (7) of such Section 9.01 to "any
Intercreditor Agreement or any Liquidity Facility" shall also be deemed to refer
to "the Intercreditor Agreement, the Liquidity Facilities, the Escrow Agreement,
the NPA or the Deposit Agreement".

            Section 6.03. SUPPLEMENTAL AGREEMENTS WITH CONSENT OF APPLICABLE
CERTIFICATEHOLDERS. Without limitation of Section 9.02 of the Basic Agreement,
the provisions of Section 9.02 of the Basic Agreement shall apply to agreements
or amendments for the purpose of adding any provisions to or changing in any
manner or eliminating any of the provisions of the Escrow Agreement, the Deposit
Agreement or the NPA or modifying in any manner the rights and obligations of
the Applicable Certificateholders under the Escrow Agreement, the Deposit
Agreement or the NPA; provided that the provisions of Section 9.02(1) of the
Basic Agreement shall be deemed to include reductions in any manner of, or delay
in the timing of, any receipt by the Applicable Certificateholders of payments
upon the Deposits.

                                   ARTICLE VII
                            MISCELLANEOUS PROVISIONS

            Section 7.01. BASIC AGREEMENT RATIFIED. Except and so far as herein
expressly provided, all of the provisions, terms and conditions of the Basic
Agreement are in all respects ratified and confirmed; and the Basic Agreement
and this Trust Supplement shall be taken, read and construed as one and the same
instrument. All replacements of provisions of, and other modifications of the
Basic Agreement set forth in this Trust Supplement are solely with respect to
the Applicable Trust.

<PAGE>

            SECTION 7.02. GOVERNING LAW. THE AGREEMENT AND THE APPLICABLE
CERTIFICATES HAVE BEEN DELIVERED IN THE STATE OF NEW YORK AND SHALL BE GOVERNED
BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAWS. THIS SECTION 7.02 SUPERSEDES AND REPLACES SECTION
12.05 OF THE BASIC AGREEMENT, WITH RESPECT TO THE APPLICABLE TRUST.

            Section 7.03. EXECUTION IN COUNTERPARTS. This Trust Supplement 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 7.04. INTENTION OF PARTIES. The parties hereto intend that
the Applicable 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. Each Applicable Certificateholder and Investor,
by its acceptance of its Applicable Certificate or a beneficial interest
therein, agrees to treat the Applicable Trust as a grantor trust for all U.S.
federal, state and local income tax purposes. The powers granted and obligations
undertaken pursuant to the Agreement shall be so construed so as to further such
intent.

<PAGE>

            IN WITNESS WHEREOF, the Company and the Trustee have caused this
Trust Supplement to be duly executed by their respective officers thereto duly
authorized, as of the day and year first written above.

                                    CONTINENTAL AIRLINES, INC.

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

                                    WILMINGTON TRUST COMPANY,
                                        as Trustee

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

<PAGE>

                                    EXHIBIT A

                               FORM OF CERTIFICATE

Certificate
No.____

            [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 the registered owner hereof,
Cede & Co., has an interest herein.]*

                CONTINENTAL AIRLINES PASS THROUGH TRUST 2004-ERJ1

     9.558% Continental Airlines Pass Through Certificate, Series 2004-ERJ1
                          Issuance Date: June 29, 2004

                       Final Maturity Date: March 1, 2021

      Evidencing A Fractional Undivided Interest In The Continental Airlines
      Pass Through Trust 2004-ERJ1, The Property Of Which Shall Include
      Certain Equipment Notes Each Secured By An Aircraft Leased To
      Continental Airlines, Inc.

                 $[_____________] Fractional Undivided Interest
        representing 0.000575940655% 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 Continental Airlines Pass Through
Trust 2004-ERJ1 (the "TRUST") created by Wilmington Trust Company, as trustee
(the "TRUSTEE"), pursuant to a Pass Through Trust Agreement, dated as of
September 25, 1997 (the "BASIC AGREEMENT"), between the Trustee and Continental
Airlines, Inc., a Delaware corporation (the "COMPANY"), as supplemented by Trust

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

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

<PAGE>

Supplement No. 2004-ERJ1 thereto, dated as of June 29, 2004 (the "TRUST
SUPPLEMENT" and, together with the Basic Agreement, the "AGREEMENT"), between
the Trustee and the Company, 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 "9.558% Continental Airlines Pass Through Certificates, Series
2004-ERJ1"(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 holder of this Certificate (the
"CERTIFICATEHOLDER" and, together with all other holders of Certificates issued
by the Trust, the "CERTIFICATEHOLDERS") assents to and agrees to be bound by the
provisions of the Agreement and the Intercreditor Agreement. The property of the
Trust includes certain Equipment Notes and all rights of the Trust to receive
payments under the Intercreditor Agreement and the Liquidity Facilities (the
"TRUST PROPERTY"). Each issue of the Equipment Notes is secured by, among other
things, a security interest in an Aircraft leased to 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 the
Intercreditor Agreement, from funds then available to the Trustee, there will be
distributed on the 1st day of each month (a "REGULAR DISTRIBUTION DATE")
commencing August 1, 2004, 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 the 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 presentation or surrender
of this Certificate or the making of any notation hereon, 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.

<PAGE>

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 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, privileges, 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

<PAGE>

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.

            Each Certificateholder and Investor, by its acceptance of this
Certificate or a beneficial interest herein, agrees to treat the Trust as a
grantor trust for all U.S. federal, state and local income tax purposes.

            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 distributed to them pursuant to
the Agreement and the disposition of all property held as part of the Trust
Property.

            Any Person acquiring or accepting this Certificate or an interest
herein will, by such acquisition or acceptance, be deemed to have represented
and warranted to and for the benefit of each Owner Participant and the Company
that either: (i) the assets of an employee benefit plan subject to Title I of
the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), or of
a plan subject to Section 4975 of the Internal Revenue Code of 1986, as amended
(the "CODE"), have not been used to purchase this Certificate or an interest
herein or (ii) the purchase and holding of this Certificate or an interest
herein are exempt from the prohibited transaction restrictions of ERISA and the
Code pursuant to one or more prohibited transaction statutory or administrative
exemptions.

            THE AGREEMENT AND THIS CERTIFICATE HAVE BEEN DELIVERED IN THE STATE
OF NEW YORK AND SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES
HEREUNDER 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.

<PAGE>

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

                                    CONTINENTAL AIRLINES PASS THROUGH TRUST
                                    2004-ERJ1

                                    By:  WILMINGTON TRUST COMPANY,
                                         as Trustee

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

<PAGE>

            FORM OF THE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

                                    WILMINGTON TRUST COMPANY,
                                          as Trustee

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

<PAGE>

                                    EXHIBIT B

                         [DTC Letter of Representations]

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