Document:

exv4w2

 

Exhibit 4.2

 

PASS THROUGH TRUST AGREEMENT

Dated as of July 1, 2005

between

SOUTHWEST AIRLINES CO.

and

WILMINGTON TRUST COMPANY,

as Trustee

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	ARTICLE I - DEFINITIONS	 	 	 	 
	 
	 	 	 	 	 	 
	Section 1.01.
	 	Definitions 	 	 	2	 
	Section 1.02.
	 	Compliance Certificates and Opinions 	 	 	11	 
	Section 1.03.
	 	Form of Documents Delivered to Trustee 	 	 	11	 
	Section 1.04.
	 	Directions of Certificateholders 	 	 	12	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE II - ORIGINAL ISSUANCE OF CERTIFICATES:	 	 	 	 
	 
	 	ACQUISITION OF TRUST PROPERTY	 	 	 	 
	 
	 	 	 	 	 	 
	Section 2.01.
	 	Amount Unlimited; Issuable in Series 	 	 	13	 
	Section 2.02.
	 	Acquisition of Equipment Notes 	 	 	15	 
	Section 2.03.
	 	Acceptance by Trustee 	 	 	17	 
	Section 2.04.
	 	Limitation of Powers 	 	 	17	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE III - THE CERTIFICATES	 	 	 	 
	 
	 	 	 	 	 	 
	Section 3.01.
	 	Form, Denomination and Execution of Certificates 	 	 	17	 
	Section 3.02.
	 	Authentication of Certificates 	 	 	18	 
	Section 3.03.
	 	Temporary Certificates 	 	 	18	 
	Section 3.04.
	 	Transfer and Exchange 	 	 	19	 
	Section 3.05.
	 	Book-Entry and Definitive Certificates 	 	 	19	 
	Section 3.06.
	 	Mutilated, Destroyed, Lost or Stolen Certificates 	 	 	21	 
	Section 3.07.
	 	Persons Deemed Owners 	 	 	22	 
	Section 3.08.
	 	Cancellation 	 	 	22	 
	Section 3.09.
	 	Limitation of Liability for Payments 	 	 	22	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE IV - DISTRIBUTIONS; STATEMENTS TO CERTIFICATEHOLDERS	 	 	 	 
	 
	 	 	 	 	 	 
	Section 4.01.
	 	Certificate Account and Special Payments Account	 	 	23	 
	Section 4.02.
	 	Distributions from Certificate Account and Special Payments Account	 	 	23	 
	Section 4.03.
	 	Statements to Certificateholders 	 	 	25	 
	Section 4.04.
	 	Investment of Special Payment Moneys 	 	 	26	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE V - THE COMPANY	 	 	 	 
	 
	 	 	 	 	 	 
	Section 5.01.
	 	Maintenance of Corporate Existence 	 	 	26	 
	Section 5.02.
	 	Consolidation, Merger, Etc.	 	 	26	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE VI - DEFAULT	 	 	 	 
	 
	 	 	 	 	 	 
	Section 6.01.
	 	Events of Default	 	 	27	 

 

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	Section 6.02.
	 	Incidents of Sale of Equipment Notes 	 	 	28	 
	Section 6.03.
	 	Judicial Proceedings Instituted by Trustee; Trustee May Bring Suit	 	 	29	 
	Section 6.04.
	 	Control by Certificateholders 	 	 	29	 
	Section 6.05.
	 	Waiver of Past Defaults 	 	 	30	 
	Section 6.06.
	 	Right of Certificateholders to Receive Payments Not to Be Impaired	 	 	30	 
	Section 6.07.
	 	Certificateholders May Not Bring Suit Except Under Certain Conditions	 	 	31	 
	Section 6.08.
	 	Remedies Cumulative 	 	 	31	 
	Section 6.09.
	 	Undertaking for Costs 	 	 	31	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE VII - THE TRUSTEE	 	 	 	 
	 
	 	 	 	 	 	 
	Section 7.01.
	 	Certain Duties and Responsibilities 	 	 	32	 
	Section 7.02.
	 	Notice of Defaults 	 	 	32	 
	Section 7.03.
	 	Certain Rights of Trustee 	 	 	32	 
	Section 7.04.
	 	Not Responsible for Recitals or Issuance of Certificates 	 	 	34	 
	Section 7.05.
	 	May Hold Certificates 	 	 	34	 
	Section 7.06.
	 	Money Held in Trust 	 	 	34	 
	Section 7.07.
	 	Compensation and Reimbursement 	 	 	34	 
	Section 7.08.
	 	Corporate Trustee Required; Eligibility 	 	 	35	 
	Section 7.09.
	 	Resignation and Removal; Appointment of Successor 	 	 	35	 
	Section 7.10.
	 	Acceptance of Appointment by Successor 	 	 	37	 
	Section 7.11.
	 	Merger, Conversion, Consolidation or Succession to Business 	 	 	38	 
	Section 7.12.
	 	Maintenance of Agencies 	 	 	38	 
	Section 7.13.
	 	Money for Certificate Payments to Be Held in Trust 	 	 	39	 
	Section 7.14.
	 	Registration of Equipment Notes in Trustee’s Name 	 	 	39	 
	Section 7.15.
	 	Representations and Warranties of Trustee 	 	 	40	 
	Section 7.16.
	 	Withholding Taxes; Information Reporting 	 	 	40	 
	Section 7.17.
	 	Trustee’s Liens 	 	 	41	 
	Section 7.18.
	 	Preferential Collection of Claims 	 	 	41	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE VIII - CERTIFICATEHOLDERS’ LISTS AND REPORTS BY TRUSTEE	 	 	 	 
	 
	 	 	 	 	 	 
	Section 8.01.
	 	The Company to Furnish Trustee with Names and Addresses of	 	 	 	 
	 
	 	Certificateholders	 	 	41	 
	Section 8.02.
	 	Preservation of Information; Communications to Certificateholders	 	 	41	 
	Section 8.03.
	 	Reports by Trustee 	 	 	42	 
	Section 8.04.
	 	Reports by the Company 	 	 	42	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE IX - SUPPLEMENTAL AGREEMENTS	 	 	 	 

 

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	Section 9.01.
	 	Supplemental Agreements Without Consent of Certificateholders	 	 	43	 
	Section 9.02.
	 	Supplemental Agreements with Consent of Certificateholders 	 	 	44	 
	Section 9.03.
	 	Documents Affecting Immunity or Indemnity 	 	 	45	 
	Section 9.04.
	 	Execution of Supplemental Agreements 	 	 	45	 
	Section 9.05.
	 	Effect of Supplemental Agreements 	 	 	45	 
	Section 9.06.
	 	Conformity with Trust Indenture Act 	 	 	46	 
	Section 9.07.
	 	Reference in Certificates to Supplemental Agreements 	 	 	46	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE X - AMENDMENTS TO INDENTURE AND NOTE DOCUMENTS	 	 	 	 
	 
	 	 	 	 	 	 
	Section 10.01.
	 	Amendments and Supplements to Indenture and Other Note Documents	 	 	46	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE XI - TERMINATION OF TRUSTS	 	 	 	 
	 
	 	 	 	 	 	 
	Section 11.01.
	 	Termination of the Trusts	 	 	47	 
	 
	 	 	 	 	 	 
	 
	 	ARTICLE XII - MISCELLANEOUS PROVISIONS	 	 	 	 
	 
	 	 	 	 	 	 
	Section 12.01.
	 	Limitation on Rights of Certificateholders 	 	 	48	 
	Section 12.02.
	 	Liabilities of Certificateholders 	 	 	48	 
	Section 12.03.
	 	Registration of Equipment Notes in Name of Subordination Agent	 	 	48	 
	Section 12.04.
	 	Notices 	 	 	48	 
	Section 12.05.
	 	Governing Law 	 	 	49	 
	Section 12.06.
	 	Severability of Provisions 	 	 	50	 
	Section 12.07.
	 	Trust Indenture Act Controls 	 	 	50	 
	Section 12.08.
	 	Effect of Headings and Table of Contents 	 	 	50	 
	Section 12.09.
	 	Successors and Assigns 	 	 	50	 
	Section 12.10.
	 	Benefits of Agreement 	 	 	50	 
	Section 12.11.
	 	Legal Holidays 	 	 	50	 
	Section 12.12.
	 	Counterparts 	 	 	50	 
	Section 12.13.
	 	Communication by Certificateholders with Other Certificateholders	 	 	50	 
	Section 12.14.
	 	Intention of Parties 	 	 	51	 

EXHIBITS

Exhibit A Form of Certificate

 

 

PASS THROUGH TRUST AGREEMENT

     This
PASS THROUGH TRUST AGREEMENT, dated as of July 1, 2005 (the “Basic
Agreement”), between SOUTHWEST AIRLINES CO., a Texas corporation (the “Company”), and
WILMINGTON TRUST COMPANY, a Delaware banking corporation, as Trustee, is made with respect to the
formation from time to time of separate Southwest Airlines Co. Pass Through Trusts, and the
issuance from time to time of separate series of Pass Through Certificates representing fractional
undivided interests in the respective Trusts.

WITNESSETH:

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

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

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

          WHEREAS, to facilitate the sale of Equipment Notes to, and the purchase of Equipment Notes by,
the Trustee on behalf of each Trust created from time to time pursuant to this Agreement, the
Company as the “issuer”, as such term is defined in and solely for purposes of the
Securities Act of 1933, as amended, of the Certificates to be issued in respect of each Trust and
as the “obligor”, as such term is defined in and solely for purposes of the Trust Indenture
Act of 1939, as amended, has duly authorized the execution and delivery of this Basic Agreement and
each Trust Supplement with respect to all such Certificates and is undertaking to perform certain
administrative and ministerial duties hereunder and is also undertaking to pay the fees and
expenses of the Trustee; and

          WHEREAS, this Basic Agreement, as supplemented from time to time, is subject to the provisions
of the Trust Indenture Act of 1939, as amended, and shall, to the extent applicable, be governed by
such provisions;

 

 

  2

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

ARTICLE I

DEFINITIONS

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

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

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

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

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

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

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

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

     Affiliate: Means, with respect to any specified Person, any other Person
directly or indirectly controlling or controlled by or under direct or indirect common
control with such Person. For the purposes of this definition, “control”, when used
with respect to any specified Person, means the power, directly or indirectly, to direct the
management and policies of such Person, whether through the ownership of voting securities
or by contract

 

3

or otherwise, and the terms “controlling” and “controlled” have
meanings correlative to the foregoing.

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

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

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

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

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

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

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

     Certificateholder or Holder: Means, with respect to the Certificates of any
series, the Person in whose name a Certificate of such series is registered in the Register
for Certificates of such series.

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

     Clearing Agency: Means an organization registered as a “clearing agency”
pursuant to Section 17A of the Securities Exchange Act of 1934, as amended.

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

     Company: Has the meaning set forth in the introductory paragraph hereof, or
its successor in interest pursuant to Section 5.02, or (only in the context of provisions
hereof,

 

4

if any, when such reference is required for purposes of compliance with the Trust
Indenture Act) any other “obligor” (within the meaning of the Trust Indenture Act) with
respect to the Certificates of any series.

     Controlling Party: Means the Person entitled to act as such pursuant to the
terms of any Intercreditor Agreement.

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

     Cut-off Date: Means, with respect to the Certificates of any series, the date
designated as such in the Trust Supplement establishing such series.

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

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

     Equipment Notes: Means, with respect to the Certificates of any series, all of
the equipment notes issued under the Indentures related to such series of Certificates.

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

     Escrow Account: Has the meaning, with respect to the Certificates of any
series, specified in Section 2.02(b).

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

     Event of Default: Means, in respect of any Trust, an Indenture Event of
Default under any Indenture pursuant to which Equipment Notes held by such Trust were
issued.

     Fractional Undivided Interest: Means the fractional undivided interest in a
Trust that is evidenced by a Certificate relating to such Trust.

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

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

 

5

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

     Intercreditor Agreement: Means any agreement by and among the Trustee, as
trustee hereunder with respect to one or more Trusts, one or more Liquidity Providers and a
Subordination Agent providing, among other things, for the distribution of payments made in
respect of Equipment Notes held by such Trusts.

     Issuance Date: Means, with respect to the Certificates of any series, the date
of the issuance of such Certificates.

     Lease: Means any lease between an Owner Trustee, as the lessor, and the
Company, as the lessee, referred to in the related Indenture, as such lease may be amended,
supplemented or otherwise modified in accordance with its terms; and “Leases” means
all such Leases.

     Letter of Representations: Means, with respect to the Certificates of any
series, an agreement among the Company, the Trustee and the initial Clearing Agency.

     Liquidity Facility: Means, with respect to the Certificates of any series, any
revolving credit agreement, letter of credit or similar facility relating to the
Certificates of such series between a bank or other financial institution and a
Subordination Agent, as amended, replaced, supplemented or otherwise modified from time to
time in accordance with its terms and the terms of any Intercreditor Agreement.

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

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

     Note Documents: Means, with respect to the Certificates of any series, the
Equipment Notes with respect to such Certificates and, with respect to such Equipment Notes,
the related Indenture, Note Purchase Agreement and, if the related Aircraft is leased to the
Company, the related Lease and the related Owner Trustee’s Purchase Agreement.

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

     Officer’s Certificate: Means a certificate signed, (a) in the case of the
Company, by the Chairman or Vice Chairman of the Board of Directors, the President, the
Chief

 

6

Executive Officer, any Vice President or the Treasurer of the Company, signing alone,
or (b) in the case of the Trustee or an Owner Trustee or a Loan Trustee, a Responsible
Officer of the Trustee or such Owner Trustee or such Loan Trustee, as the case may be.

     Opinion of Counsel: Means a written opinion of legal counsel who (a) in the
case of counsel for the Company may be (i) a senior attorney of the Company one of whose
principal duties is furnishing advice as to legal matters, (ii) Vinson & Elkins L.L.P. or
(iii) such other counsel designated by the Company and reasonably acceptable to the Trustee
and (b) in the case of any Owner Trustee or any Loan Trustee, may be such counsel as may be
designated by any of them whether or not such counsel is an employee of any of them, and who
shall be reasonably acceptable to the Trustee.

     Other Agreements: Has the meaning specified in Section 6.01(b).

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

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

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

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

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

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

     Owner Trustee’s Purchase Agreement: Has the meaning, with respect to the
Certificates of any series if the related Aircraft is leased to the Company, specified
therefor in the related Lease.

 

7

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

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

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

     Pool Balance: Means, with respect to the Certificates of any series as of any
date, (i) the original aggregate face amount of the Certificates of any series less (ii) the
aggregate amount of all payments made in respect of such Certificates 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 the payment of principal, if any, on the Equipment Notes or
other Trust Property held in the Trust and the distribution thereof to be made on such
Distribution Date.

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

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

     Postponement Notice: Means, with respect to any Trust or the related series of
Certificates, an Officer’s Certificate of the Company signed by an officer of the Company
(1) requesting that the Trustee temporarily postpone purchase of the related Equipment Notes
to a date later than the Issuance Date of such series of Certificates, (2) identifying the
amount of the purchase price of each such Equipment Note and the aggregate purchase price
for all such Equipment Notes, (3) setting forth the reasons for such postponement and (4)
with respect to each such Equipment Note, either (a) setting or resetting a new Transfer
Date (which shall be on or prior to the applicable Cut-off Date) for payment by the Trustee
of such purchase price and issuance of the related Equipment Note (subject to subsequent
change from time to time in accordance with the relevant

 

8

Note Purchase Agreement), or (b) indicating that such new Transfer Date (which shall be
on or prior to the applicable Cut-off Date) will be set by subsequent written notice not
less than one Business Day prior to such new Transfer Date (subject to subsequent change
from time to time in accordance with the relevant Note Purchase Agreement).

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

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

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

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

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

     Regular Distribution Date: Means, with respect to distributions of Scheduled
Payments in respect of any series of Certificates, each date designated as such in this
Agreement, until payment of all the Scheduled Payments to be made under the Equipment Notes
held in the Trust have been made.

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

     Responsible Officer: Means, with respect to any Trustee, any Loan Trustee and
any Owner Trustee, any officer in the Corporate Trust Department of the Trustee, Loan
Trustee or Owner Trustee or any other officer customarily performing functions similar to
those performed by the persons who at the time shall be such officers, respectively, or to

 

9

whom any corporate trust matter is referred because of his knowledge of and familiarity
with a particular subject.

     Responsible Party: Means, with respect to the Certificates of any series, the
person designated as such in the related Trust Supplement.

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

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

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

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

     Special Payment: Means (i) any payment (other than a Scheduled Payment) in
respect of, or any proceeds of, any Equipment Note or Trust Indenture Estate (as defined in
each Indenture), (ii) the amounts required to be distributed pursuant to the last paragraph
of Section 2.02(b) or (iii) the amounts required to be distributed pursuant to the
penultimate paragraph of Section 2.02(b).

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

     Specified Investments: Means, with respect to any Trust, unless otherwise
specified in the related Trust Supplement, (i) obligations of, or guaranteed by, the United
States Government or agencies thereof, (ii) open market commercial paper of any corporation
incorporated under the laws of the United States of America or any state thereof rated at
least P-2 or its equivalent by Moody’s Investors Service, Inc. or at least A-2 or its
equivalent by Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies,
Inc., (iii) certificates of deposit issued by commercial banks organized

 

10

under the laws of the United States or of any political subdivision thereof having a
combined capital and surplus in excess of $100,000,000 which banks or their holding
companies have a rating of A or its equivalent by Moody’s Investors Service, Inc. or
Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc.;
provided, however, that the aggregate amount at any one time so invested in
certificates of deposit issued by any one bank shall not exceed 5% of such bank’s capital
and surplus, (iv) U.S. dollar-denominated offshore certificates of deposit issued by, or
offshore time deposits with, any commercial bank described in clause (iii) above or any
subsidiary thereof and (v) repurchase agreements with any financial institution having
combined capital and surplus of at least $100,000,000 with any of the obligations described
in clauses (i) through (iv) above as collateral; provided further that if
all of the above investments are unavailable, the entire amounts to be invested may be used
to purchase federal funds from an entity described in clause (iii) above.

     Subordination Agent: Has the meaning specified therefor in any Intercreditor
Agreement.

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

     Transfer Date: Has the meaning assigned to that term or any of the terms
“Delivery Date”, “Funding Date” or “Closing Date” in a Note Purchase Agreement, and in any
event refers to any such date as it may be changed from time to time in accordance with the
terms of such Note Purchase Agreement.

     Triggering Event: Has the meaning specified therefor in any Intercreditor
Agreement.

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

     Trustee: Means Wilmington Trust Company, a Delaware banking corporation, or
its successor in interest, and any successor or other trustee appointed as provided herein.

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

     Trust Property: Means, with respect to any Trust, (i) subject to any related
Intercreditor Agreement, the Equipment Notes held as the property of such Trust, all monies
at any time paid thereon and all monies due and to become due thereunder, (ii) funds from
time to time deposited in the related Escrow Account, the related Certificate Account and
the related Special Payments Account and, subject to the related Intercreditor Agreement,
any proceeds from the sale by the Trustee pursuant to Article VI hereof of any such
Equipment Note, (iii) all rights of such Trust and the Trustee, on

 

11

behalf of the Trust, under any Intercreditor Agreement, including, without limitation,
all monies receivable in respect of such rights, and (iv) all monies receivable under any
Liquidity Facility for such Trust.

     Trust Supplement: Means an agreement supplemental hereto pursuant to which (i)
a separate Trust is created for the benefit of the Holders of the Certificates of a series,
(ii) the issuance of the Certificates of such series representing fractional undivided
interests in such Trust is authorized and (iii) the terms of the Certificates of such series
are established.

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

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

     (1) a statement that each individual signing such certificate or opinion has read such
covenant or condition and the definitions in this Basic Agreement or this Agreement relating
thereto;

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

     (3) a statement that, in the opinion of each such individual, he has made such
examination or investigation as is necessary to enable him to express an informed opinion as
to whether or not such covenant or condition has been complied with; and

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

          Section 1.03. Form of Documents Delivered to Trustee. In any case where several
matters are required to be certified by, or covered by an opinion of, any specified Person, it is
not necessary that all such matters be certified by, or covered by the opinion of, only one such
Person, or that they be so certified or covered by only one document, but one such Person

 

12

may certify or give an opinion
with respect to some matters and one or more other such Persons as to other matters and any such
Person may certify or give an opinion as to such matters in one or several documents.

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

          Section 1.04. Directions of Certificateholders. (a) Any direction, consent,
request, demand, authorization, notice, waiver or other action provided by this Agreement in
respect of the Certificates of any series to be given or taken by Certificateholders (a
“Direction”) may be embodied in and evidenced by one or more instruments of substantially
similar tenor signed by such Certificateholders in person or by an agent or proxy duly appointed in
writing or, in the case of Certificates evidenced by a Book-Entry Certificate, by any electronic
transmission or other message, whether or not in written format, that complies with the Clearing
Agency’s applicable procedures; and, except as herein otherwise expressly provided, such action
shall become effective when such instrument or instruments are delivered to the Trustee and, when
it is hereby expressly required pursuant to this Agreement, to the Company or any Loan Trustee.
Such instrument or instruments (and the action embodied therein and evidenced thereby) are herein
sometimes referred to as the “Act” of the Certificateholders signing such instrument or
instruments. Proof of execution of any such instrument or of a writing appointing any such agent
or proxy shall be sufficient for any purpose of this Trust Agreement and conclusive in favor of the
Trustee, the Company and the related Loan Trustee, if made in the manner provided in this Section
1.04.

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

          (c) In determining whether the Certificateholders of the requisite Fractional Undivided
Interests of Certificates of any series Outstanding have given any Direction under this Agreement,
Certificates owned by the Company or any Affiliate thereof shall be disregarded and deemed not to
be Outstanding for purposes of any such determination. In determining whether the Trustee shall be
protected in relying upon any such Direction, only Certificates which the Trustee knows to be so
owned shall be so disregarded. Notwithstanding the foregoing, (i) if any such Person owns 100% of
the Certificates of any series Outstanding, such Certificates shall not
be so disregarded, and (ii) if any amount of Certificates of any series so owned by any such
Person have been pledged in good faith, such Certificates shall not be disregarded if the pledgee

 

13

establishes to the
satisfaction of the Trustee the pledgee’s right so to act with respect to such Certificates and that the pledgee is not the Company or
any Affiliate thereof.

          (d) The Company may, at its option, by delivery of an Officer’s Certificate to the Trustee,
set a record date to determine the Certificateholders in respect of the Certificates of any series,
entitled to give any Direction. Notwithstanding Section 316(c) of the Trust Indenture Act, such
record date shall be the record date specified in such Officer’s Certificate, which shall be a date
not more than 30 days prior to the first solicitation of Certificateholders of the applicable
series in connection therewith. If such a record date is fixed, such Direction may be given before
or after such record date, but only the Certificateholders of record of the applicable series at
the close of business on such record date shall be deemed to be Certificateholders for the purposes
of determining whether Certificateholders of the requisite proportion of Outstanding Certificates
of such series have authorized or agreed or consented to such Direction, and for that purpose the
Outstanding Certificates shall be computed as of such record date; provided, however, that no such
Direction by the Certificateholders on such record date shall be deemed effective unless it shall
become effective pursuant to the provisions of this Agreement not later than one year after such
record date.

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

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

ARTICLE II

ORIGINAL ISSUANCE OF CERTIFICATES:

ACQUISITION OF TRUST PROPERTY

          Section 2.01. Amount Unlimited; Issuable in Series. (a) The aggregate principal
amount of Certificates which may be authenticated and delivered under this Basic Agreement is
unlimited. The Certificates may be issued from time to time in one or more series and shall be
designated generally as the “Pass Through Certificates”, with such further designations
added or incorporated in such title for the Certificates of each series as specified in the related
Trust Supplement. Each Certificate shall bear upon its face the designation so selected for the
series to which it belongs. All Certificates of the same series shall be substantially identical
except that the Certificates of a series may differ as to denomination and as may otherwise be
provided in the Trust Supplement establishing the Certificates of such series. Each series of
Certificates issued
pursuant to this Agreement will evidence fractional undivided interests in the related Trust
and, except as may be contained in any Intercreditor Agreement, will have no rights, benefits or
interests in respect of any other Trust or the Trust Property held therein. All Certificates of
the same series shall be in all respects equally and ratably entitled to the benefits of this
Agreement

 

14

without preference, priority or distinction on account of the actual time or times of
authentication and delivery, all in accordance with the terms and provisions of this Agreement.

          (b) The following matters shall be established with respect to the Certificates of each series
issued hereunder by a Trust Supplement executed and delivered by and among the Company and the
Trustee:

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

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

     (3) any limit upon the aggregate principal amount of the Certificates of such series
which may be authenticated and delivered (which limit shall not pertain to Certificates
authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu
of, other Certificates of the series pursuant to Sections 3.03, 3.04 and 3.06);

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

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

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

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

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

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

     (10) a description of the Equipment Notes to be acquired and held in the related Trust
and of the related Aircraft and Note Documents;

 

15

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

     (12) any restrictions (including legends) in respect of ERISA;

     (13) whether such series will be subject to an Intercreditor Agreement and, if so, the
specific designation of such Intercreditor Agreement;

     (14) whether such series will have the benefit of a Liquidity Facility and, if so, the
specific designation of such Liquidity Facility;

     (15) whether there will be a deposit agreement or other comparable arrangement prior to
the delivery of one or more Aircraft and, if so, any terms appropriate thereto; and

     (16) any other terms of the Certificates of such series (which terms shall not be
inconsistent with the provisions of the Trust Indenture Act), including any terms of the
Certificates of such series which may be required or advisable under United States laws or
regulations or advisable in connection with the marketing of Certificates of the series.

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

          Section 2.02. Acquisition of Equipment Notes. (a) Unless otherwise specified in the
related Trust Supplement, on or prior to the Issuance Date of the Certificates of a series, the
Trustee shall execute and deliver the related Note Purchase Agreements in the form delivered to the
Trustee by the Company and shall, subject to the respective terms thereof, perform its obligations
under such Note Purchase Agreements. The Trustee shall issue and sell such Certificates, in
authorized denominations and in such Fractional Undivided Interests, so as to result in the receipt
of consideration in an amount equal to the aggregate purchase price of the Equipment Notes
contemplated to be purchased by the Trustee under the related Note Purchase Agreements and,
concurrently therewith, the Trustee shall purchase, pursuant to the terms and conditions of the
Note Purchase Agreements, such Equipment Notes at a purchase price equal to the amount of such
consideration so received. Except as provided in Sections 3.03, 3.04 and 3.06 hereof, the Trustee
shall not execute, authenticate or deliver Certificates of such series in excess of the aggregate
amount specified in this paragraph. The provisions of this Subsection (a) are subject to the
provisions of Subsection (b) below.

          (b) If on or prior to the Issuance Date with respect to a series of Certificates the Company
shall deliver to the Trustee a Postponement Notice relating to one or more Postponed Notes, the
Trustee shall postpone the purchase of such Postponed Notes and shall deposit into an escrow
account (as to such Trust, the “Escrow Account”) to be maintained as part

 

16

of the related Trust an amount equal to the purchase price of such Postponed Notes (the “Escrowed Funds”).
The portion of the Escrowed Funds so deposited with respect to any particular Postponed Notes
shall be invested by the Trustee at the written direction and risk of, and for the benefit of, the
Responsible Party in Specified Investments (i) maturing no later than any scheduled Transfer Date
relating to such Postponed Notes or (ii) if no such Transfer Date has been scheduled, maturing on
the next Business Day, or (iii) if the Company has given notice to the Trustee that such Postponed
Notes will not be issued, maturing on the next applicable Special Distribution Date, if such
investments are reasonably available for purchase. The Trustee shall make withdrawals from the
Escrow Account only as provided in this Agreement. Upon request of the Company on one or more
occasions and the satisfaction or waiver of the closing conditions specified in the applicable Note
Purchase Agreements on or prior to the related Cut-off Date, the Trustee shall purchase the
applicable Postponed Notes with the Escrowed Funds withdrawn from the Escrow Account. The purchase
price shall equal the principal amount of such Postponed Notes.

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

          Any earnings on Specified Investments received from time to time by the Trustee shall be
promptly distributed to the Responsible Party. The Responsible Party shall pay to the Trustee for
deposit to the relevant Escrow Account an amount equal to any losses on such Specified Investments
as incurred. On the Initial Regular Distribution Date in respect of the Certificates of any
series, the Responsible Party will pay (in immediately available funds) to the Trustee an amount
equal to the interest that would have accrued on any Postponed Notes with respect to such
Certificates, if any, purchased after the Issuance Date if such Postponed Notes had been purchased
on the Issuance Date, from the Issuance Date to, but not including, the date of the purchase of
such Postponed Notes by the Trustee.

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

 

17

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

          Section 2.03. Acceptance by Trustee. The Trustee, upon the execution and delivery of
a Trust Supplement creating a Trust and establishing a series of Certificates, shall acknowledge
its acceptance of all right, title and interest in and to the Trust Property to be acquired
pursuant to Section 2.02 hereof and the related Note Purchase Agreements and shall declare that the
Trustee holds and will hold such right, title and interest for the benefit of all then present and
future Certificateholders of such series, upon the trusts herein and in such Trust Supplement set
forth. By the acceptance of each Certificate of such series issued to it under this Agreement,
each initial Holder of such series as grantor of such Trust shall thereby join in the creation and
declaration of such Trust.

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

ARTICLE III

THE CERTIFICATES

          Section 3.01. Form, Denomination and Execution of Certificates. The Certificates of
each series shall be issued in fully registered form without coupons and shall be substantially in
the form attached hereto as Exhibit A, with such omissions, variations and insertions as are
permitted by this Agreement, and may have such letters, numbers or other marks of identification
and such legends or endorsements placed thereon as may be required to comply with the rules of
any securities exchange on which such Certificates may be listed or to conform to any usage in
respect thereof, or as may, consistently herewith, be determined by the Trustee or

 

18

the officers
executing such Certificates, as evidenced by the Trustee’s or respective officers’ execution of the
Certificates.

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

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

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

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

          (b) No Certificate of any series shall be entitled to any benefit under this Agreement, or be
valid for any purpose, unless there appears on such Certificate a certificate of authentication
substantially in the form set forth in Exhibit A hereto executed by the Trustee by manual
signature, and such certificate of authentication upon any Certificate shall be conclusive
evidence, and the only evidence, that such Certificate has been duly authenticated and delivered
hereunder. All Certificates of any series shall be dated the date of their authentication.

          Section 3.03. Temporary Certificates. Until definitive Certificates are ready for
delivery, the Trustee shall execute, authenticate and deliver temporary Certificates of each
series. Temporary Certificates of each series shall be substantially in the form of definitive
Certificates of such series but may have insertions, substitutions, omissions and other variations
determined to be appropriate by the officers executing the temporary Certificates of such series,
as evidenced by their execution of such temporary Certificates. If temporary Certificates of any
series are issued, the Trustee will
cause definitive Certificates of such series to be prepared without unreasonable delay. After
the preparation of definitive Certificates of such series, the temporary Certificates shall be
exchangeable for definitive Certificates upon surrender of such temporary Certificates at the
office or agency of the Trustee designated for such purpose pursuant to Section 7.12, without
charge to the Certificateholder. Upon surrender for cancellation of any one or more

 

19

temporary
Certificates, the Trustee shall execute, authenticate and deliver in exchange therefor a like face
amount of definitive Certificates of like series, in authorized denominations and of a like
Fractional Undivided Interest. Until so exchanged, such temporary Certificates shall be entitled
to the same benefits under this Agreement as definitive Certificates.

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

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

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

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

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

          Section 3.05. Book-Entry and Definitive Certificates. (a) The Certificates of any
series may be issued in the form of one or more typewritten Certificates representing the
Book-Entry Certificates of such series, to be delivered to The Depository Trust Company, the
initial Clearing Agency, by, or on behalf of, the Company. In such case, the Certificates of
such series delivered to The Depository Trust Company shall initially be registered on the Register in
the name of CEDE & Co., the nominee of the initial Clearing Agency, and no Certificate Owner will
receive a definitive certificate representing such Certificate Owner’s interest in the Certificates
of

 

20

such series, except as provided above and in Subsection (d) below. As to the Certificates of
any series, unless and until definitive, fully registered Certificates (the “Definitive
Certificates”) have been issued pursuant to Subsection (d) below:

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

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

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

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

     (v) whenever this Agreement requires or permits actions to be taken based upon
instructions or directions of Certificateholders of such series holding Certificates of such
series evidencing a specified percentage of the Fractional Undivided Interests in the
related Trust, the Clearing Agency shall be deemed to represent such percentage only to the
extent that it has received instructions to such effect from Clearing Agency Participants
owning or representing, respectively, such required percentage of the beneficial interest in
Certificates of such series and has delivered such instructions to the Trustee. The Trustee
shall have no obligation to determine whether the Clearing Agency has in fact received any
such instructions.

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

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

 

21

          (d) If with respect to the Certificates of any series (i) the Company advises the Trustee in
writing that the Clearing Agency is no longer willing or able to discharge properly its
responsibilities and the Trustee or the Company is unable to locate a qualified successor, (ii) the
Company, at its option, advises the Trustee in writing that it elects to terminate the book-entry
system through the Clearing Agency or (iii) after the occurrence of an Event of Default,
Certificate Owners of Book-Entry Certificates of such series evidencing Fractional Undivided
Interests aggregating not less than a majority in interest in the related Trust, by Act of such
Certificate Owners delivered to the Company and the Trustee, advise the Company, the Trustee and
the Clearing Agency through the Clearing Agency Participants in writing that the continuation of a
book-entry system through the Clearing Agency Participants is no longer in the best interests of
the Certificate Owners of such series, then the Trustee shall notify all Certificate Owners of such
series, through the Clearing Agency, of the occurrence of any such event and of the availability of
Definitive Certificates. Upon surrender to the Trustee of all the Certificates of such series held
by the Clearing Agency, accompanied by registration instructions from the Clearing Agency
Participants for registration of Definitive Certificates in the names of Certificate Owners of such
series, the Trustee shall issue and deliver the Definitive Certificates of such series in
accordance with the instructions of the Clearing Agency. Neither the Company, the Registrar, the
Paying Agent nor the Trustee shall be liable for any delay in delivery of such instructions and may
conclusively rely on, and shall be protected in relying on, such registration instructions. Upon
the issuance of Definitive Certificates of such series, the Trustee shall recognize the Person in
whose name the Definitive Certificates are registered in the Register as Certificateholders
hereunder. Neither the Company nor the Trustee shall be liable if the Trustee or the Company is
unable to locate a qualified successor Clearing Agency.

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

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

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

          In connection with the issuance of any new Certificate under this Section 3.06, the Trustee
shall require the payment of a sum sufficient to cover any tax or other governmental

 

22

charge that
may be imposed in relation thereto and any other expenses (including the fees and expenses of the
Trustee and the Registrar) connected therewith.

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

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

          Section 3.07. Persons Deemed Owners. Prior to due presentment of a Certificate for
registration of transfer, the Trustee, the Registrar and any Paying Agent may treat the Person in
whose name any Certificate is registered (as of the day of determination) as the owner of such
Certificate for the purpose of receiving distributions pursuant to Article IV and for all other
purposes whatsoever, and none of the Trustee, the Registrar or any Paying Agent shall be affected
by any notice to the contrary.

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

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

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

 

23

ARTICLE IV

DISTRIBUTIONS; STATEMENTS TO

CERTIFICATEHOLDERS

          Section 4.01. Certificate Account and Special Payments Account. (a) The Trustee
shall establish and maintain on behalf of the Certificateholders of each series a Certificate
Account as one or more non-interest-bearing accounts. The Trustee shall hold such Certificate
Account in trust for the benefit of the Certificateholders of such series, and shall make or permit
withdrawals therefrom only as provided in this Agreement. On each day when a Scheduled Payment is
made to the Trustee (under an Intercreditor Agreement, if applicable) with respect to the
Certificates of such series, the Trustee, upon receipt thereof, shall immediately deposit the
aggregate amount of such Scheduled Payment in such Certificate Account.

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

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

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

          (b) On each Special Distribution Date with respect to any Special Payment with respect to a
series of Certificates or as soon thereafter as the Trustee has confirmed receipt

 

24

of any Special
Payments due on the Equipment Notes held (subject to the Intercreditor Agreement) in the related
Trust or realized upon the sale of such Equipment Notes, the Trustee shall distribute out of the
applicable Special Payments Account the entire amount of such applicable Special Payment deposited
therein pursuant to Section 4.01(b). There shall be so distributed to each Certificateholder of
record of such series on the Record Date with respect to such Special Distribution Date (other than
as provided in Section 11.01 concerning the final distribution) by check mailed to such
Certificateholder, at the address appearing in the Register, such Certificateholder’s pro rata
share (based on the Fractional Undivided Interest in the related Trust held by such
Certificateholder) of the total amount in the applicable Special Payments Account on account of
such Special Payment, except that, with respect to Certificates registered on the Record Date in
the name of a Clearing Agency (or its nominee), such distribution shall be made by wire transfer in
immediately available funds to the account designated by such Clearing Agency (or such nominee).

          (c) The Trustee shall, at the expense of the Company, cause notice of each Special Payment
with respect to a series of Certificates to be mailed to each Certificateholder of such series at
his address as it appears in the Register. In the event of redemption or purchase of Equipment
Notes held in the related Trust, such notice shall be mailed not less than 15 days prior to the
Special Distribution Date for the Special Payment resulting from such redemption or purchase, which
Special Distribution Date shall be the date of such redemption or purchase. In the event that the
Trustee receives a notice from the Company that Postponed Notes will not be purchased by the
Trustee pursuant to Section 2.02, such notice of Special Payment shall be mailed as soon as
practicable after receipt of such notice from the Company and shall state the Special Distribution
Date for such Special Payment, which shall occur 15 days after the date of such notice of Special
Payment or (if such 15th day is not practicable) as soon as practicable thereafter. In the event
that any Special Payment is to be made pursuant to the last paragraph of Section 2.02(b) hereof,
there shall be mailed on the Cut-off Date (or, if such mailing on the Cut-off Date is not
practicable, as soon as practicable after the Cut-off Date), notice of such Special Payment stating
the Special Distribution Date for such Special Payment, which shall occur 15 days after the date of
such notice of such Special Payment (or, if such 15th day is not practicable, as soon as
practicable thereafter). 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 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),

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

     (iii) the reason for the Special Payment, and

 

25

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

If the amount of premium, if any, payable upon the redemption or purchase of an Equipment Note has
not been calculated at the time that the Trustee mails notice of a Special 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 any Trust is cancelled, the Trustee, as soon
as possible after learning thereof, shall cause notice thereof to be mailed to each
Certificateholder of the related series at its address as it appears on the Register.

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

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

     (ii) the amount of such distribution hereunder allocable to interest; and

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

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

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

 

26

and such other items
shall be prepared on the basis of information supplied to the Trustee by the Clearing Agency
Participants and shall be delivered by the Trustee to such Clearing Agency Participants to be
available for forwarding by such Clearing Agency Participants to the holders of interests in the
Certificates in the manner described in Section 4.03(a).

          Section 4.04. Investment of Special Payment Moneys. Any money received by the
Trustee pursuant to Section 4.01(b) representing a Special Payment which is not distributed on the
date received shall, to the extent practicable, be invested in Permitted Investments by the Trustee
pending distribution of such Special Payment pursuant to Section 4.02. Any investment made
pursuant to this Section 4.04 shall be in such Permitted Investments having maturities not later
than the date that such moneys are required to be used to make the payment required under Section
4.02 on the applicable Special Distribution Date and the Trustee shall hold any such Permitted
Investments until maturity. The Trustee shall have no liability with respect to any investment
made pursuant to this Section 4.04, other than by reason of the willful misconduct or negligence of
the Trustee. All income and earnings from such investments shall be distributed on such Special
Distribution Date as part of such Special Payment.

ARTICLE V

THE COMPANY

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

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

     (a) the Person formed by such consolidation or into which the Company is merged or the
Person that acquires by conveyance, transfer or lease substantially all of the assets of the
Company as an entirety shall be (i) a corporation, limited partnership, limited liability
company or other Person organized and validly existing under the laws of the United States
of America or any state thereof or the District of Columbia, (ii) a “citizen of the United
States” as defined in 49 U.S.C. § 40102(a)(15), as amended, and (iii) a United States
certificated air carrier, if and so long as such status is a condition of entitlement to the
benefits of Section 1110 of the Bankruptcy Reform Act of 1978, as amended (11 U.S.C. §
1110), with respect to the Leases or the Aircraft owned by the Company;

     (b) the Person formed by such consolidation or into which the Company is merged or the
Person which acquires by conveyance, transfer or lease substantially all of

 

 

27

the assets of
the Company as an entirety shall execute and deliver to the Trustee applicable to the
Certificates of each series a duly authorized, valid, binding and enforceable agreement in
form and substance reasonably satisfactory to the Trustee containing an assumption by such
successor corporation or Person of the due and punctual performance and observance of each
covenant and condition of the Note Documents and of this Agreement applicable to the
Certificates of each series to be performed or observed by the Company; and

     (c) the Company shall have delivered to the Trustee an Officer’s Certificate of the
Company and an Opinion of Counsel of the Company reasonably satisfactory to the Trustee,
each stating that such consolidation, merger, conveyance, transfer or lease and the
assumption agreement mentioned in clause (b) above comply with this Section 5.02 and that
all conditions precedent herein provided for relating to such transaction have been complied
with.

          Upon any consolidation or merger, or any conveyance, transfer or lease of substantially all of
the assets of the Company as an entirety in accordance with this Section 5.02, the Person formed by
such consolidation or into which the Company is merged or to which such conveyance, transfer or
lease is made shall succeed to, and be substituted for, and may exercise every right and power of,
the Company under this Agreement applicable to the Certificates of each series with the same effect
as if such Person had been named as the Company herein. In the event of any such conveyance,
transfer or lease of substantially all of the assets of the Company as an entirety, the Company or
any successor Person which shall have become such in the manner prescribed in this Section 5.02
shall be released and discharged from its liability in respect of this Agreement and any Note
Document applicable to the Certificates of such series to which it is a party and may be dissolved
and liquidated.

ARTICLE VI

DEFAULT

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

          (b) Purchase Rights of Certificateholders. At any time after the occurrence and
during the continuation of a Triggering Event, each Certificateholder of Certificates of certain
series (each, a “Potential Purchaser” and, collectively, the “Potential
Purchasers”) will have certain rights to purchase the Certificates of one or more other series,
all as set forth in the Trust Supplement applicable to the Certificates held by such Potential
Purchaser. The purchase price with respect to the Certificates of any series shall be equal to the
Pool Balance of the

 

28

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

          Section 6.02. Incidents of Sale of Equipment Notes. Upon any sale of all or any part
of the Equipment Notes held in the Trust made either under the power of sale given under

 

29

this
Agreement or otherwise for the enforcement of this Agreement, the following shall be applicable:

     (1) Certificateholders and Trustee May Purchase Equipment Notes. Any
Certificateholder, the Trustee in its individual or any other capacity or any other Person
may bid for and purchase any of the Equipment Notes held in the Trust, and upon compliance
with the terms of sale, may hold, retain, possess and dispose of such Equipment Notes in
their own absolute right without further accountability.

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

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

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

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

 

30

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

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

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

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

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

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

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

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

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

 

31

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

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

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

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

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

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

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

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

 

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ARTICLE VII

THE TRUSTEE

          Section 7.01. Certain Duties and Responsibilities. (a) Except during the continuance
of an Event of Default in respect of a Trust, the Trustee undertakes to perform such duties in
respect of such Trust as are specifically set forth in this Agreement, and no implied covenants or
obligations shall be read into this Agreement against the Trustee.

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

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

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

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

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

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

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

 

33

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

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

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

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

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

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

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

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

 

34

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

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

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

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

          Section 7.07. Compensation and Reimbursement. The Company agrees:

     (1) to pay, or cause to be paid, to the Trustee from time to time reasonable
compensation for all services rendered by it hereunder (which compensation shall not be
limited by any provision of law in regard to the compensation of a trustee of an express
trust); and

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

 

35

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

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

          Section 7.08. Corporate Trustee Required; Eligibility. Each Trust shall at all times
have a Trustee which shall be eligible to act as a trustee under Section 310(a) of the Trust
Indenture Act and shall have a combined capital and surplus of at least $75,000,000 (or a combined
capital and surplus in excess of $1,000,000 and the obligations of which, whether now in existence
or hereafter incurred, are fully and unconditionally guaranteed by a corporation organized and
doing business under the laws of the United States, any state or territory thereof or of the
District of Columbia and having a combined capital and surplus of at least $75,000,000). If such
corporation publishes reports of conditions at least annually, pursuant to law or to the
requirements of federal, state, territorial or District of Columbia supervising or examining
authority, then for the purposes of this Section 7.08 the combined capital and surplus of such
corporation shall be deemed to be its combined capital and surplus as set forth in its most recent
report of conditions so published.

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

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

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

 

36

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

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

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

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

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

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

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

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

 

37

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

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

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

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

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

 

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

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

          (b) There shall at all times be a Registrar and a Paying Agent hereunder with respect to the
Certificates of each series. Each such Authorized Agent shall be a bank or trust company, shall be
a corporation organized and doing business under the laws of the United States or any state, with a
combined capital and surplus of at least $75,000,000, or a corporation having a combined capital
and surplus in excess of $1,000,000, the obligations of which are guaranteed by a corporation
organized and doing business under the laws of the United States or any state, with a combined
capital and surplus of at least $75,000,000, and shall be authorized under such laws to exercise
corporate trust powers, subject to supervision by federal or state authorities. The Trustee shall
initially be the Paying Agent and, as provided in Section 3.04, Registrar hereunder with respect to
the Certificates of each series. Each Registrar shall furnish to the Trustee, at stated intervals
of not more than six months, and at such other times as the Trustee may request in writing, a copy
of the Register maintained by such Registrar.

          (c) Any corporation into which any Authorized Agent may be merged or converted or with which
it may be consolidated, or any corporation resulting from any merger, consolidation or conversion
to which any Authorized Agent shall be a party, or any corporation

 

39

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

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

          (e) The Company agrees to pay, or cause to be paid, from time to time to each Authorized Agent
reasonable compensation for its services and to reimburse it for its reasonable expenses.

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

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

          Section 7.14. Registration of Equipment Notes in Trustee’s Name. Subject to the
provisions of any Intercreditor Agreement, the Trustee agrees that all Equipment Notes to be
purchased by any Trust and Permitted Investments, if any, shall be issued in the name of the
Trustee as trustee for the applicable Trust or its nominee and held by the Trustee in trust for the
benefit of the Certificateholders of such series, or, if not so held, the Trustee or its nominee
shall be reflected as the owner of such Equipment Notes or Permitted Investments, as the case may
be, in the register of the issuer of such Equipment Notes or Permitted Investments, as the case may
be.

 

40

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

     (a) the Trustee is a Delaware banking corporation organized and validly existing in
good standing under the laws of the State of Delaware;

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

     (c) the execution, delivery and performance by the Trustee of this Agreement, any
Intercreditor Agreement and the Note Purchase Agreements (i) will not violate any provision
of any United States federal law or the law of the state of the United States where it is
located governing the banking and trust powers of the Trustee or any order, writ, judgment,
or decree of any court, arbitrator or governmental authority applicable to the Trustee or
any of its assets, (ii) will not violate any provision of the 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;

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

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

          Section 7.16. Withholding Taxes; Information Reporting. As to the Certificates of
any series, the Trustee, as trustee of the related grantor trust created by this Agreement, shall
exclude and withhold from each distribution of principal, premium, if any, and interest and other
amounts due under this Agreement or under the Certificates of such series any and all withholding
taxes applicable thereto as required by law. The Trustee agrees to act as such withholding agent
and, in connection therewith, whenever any present or future taxes or similar charges are required
to be withheld with respect to any amounts payable in respect of the

 

41

Certificates of such series,
to withhold such amounts and timely pay the same to the appropriate authority in the name of and on
behalf of the Certificateholders of such series, that it will file any necessary withholding tax
returns or statements when due, and that, as promptly as possible after the payment thereof, it
will deliver to each such Certificateholder of such series appropriate documentation showing the
payment thereof, together with such additional documentary evidence as such Certificateholders may
reasonably request from time to time. The Trustee agrees to file any other information reports as
it may be required to file under United States law.

          Section 7.17. Trustee’s Liens. The Trustee in its individual capacity agrees that it
will, in respect of each Trust created by this Agreement, at its own cost and expense promptly take
any action as may be necessary to duly discharge and satisfy in full any mortgage, pledge, lien,
charge, encumbrance, security interest or claim (“Trustee’s Liens”) on or with respect to
the Trust Property of such Trust which is attributable to the Trustee either (i) in its individual
capacity and which is unrelated to the transactions contemplated by this Agreement or the related
Note Documents or (ii) as Trustee hereunder or in its individual capacity and which arises out of
acts or omissions which are not contemplated by this Agreement.

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

ARTICLE VIII

CERTIFICATEHOLDERS’ LISTS AND REPORTS BY TRUSTEE

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

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

 

42

          Section 8.03. Reports by Trustee. Within 60 days after May 15 of each year
commencing with the first full year following the issuance of any series of Certificates, the
Trustee shall transmit to the Certificateholders of such series, as provided in Section 313(c) of the Trust Indenture Act, a brief report dated as
of such May 15, if required by Section 313(a) of the Trust Indenture Act.

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

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

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

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

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

 

43

ARTICLE IX

SUPPLEMENTAL AGREEMENTS

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

     (1) to provide for the formation of a Trust, the issuance of a series of Certificates
and other matters contemplated by Section 2.01(b); or

     (2) to evidence the succession of another Person to the Company and the assumption by
any such successor of the covenants of the Company herein contained or of the Company’s
obligations under any Intercreditor Agreement or any Liquidity Facility; or

     (3) to add to the covenants of the Company for the benefit of the Certificateholders of
any series, or to surrender any right or power conferred upon the Company in this Agreement,
any Intercreditor Agreement or any Liquidity Facility; or

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

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

     (6) to modify, eliminate or add to the provisions of this Agreement, any Intercreditor
Agreement or any Liquidity Facility to such extent as shall be necessary to continue the
qualification of this Agreement, any Intercreditor Agreement or any Liquidity Facility
(including any supplemental agreement) under the Trust Indenture Act or under any similar
Federal statute hereafter enacted, and to add to this Agreement, any Intercreditor Agreement
or any Liquidity Facility such other provisions as may be expressly permitted by the Trust
Indenture Act, excluding, however, the provisions referred to in Section 316(a)(2) of the Trust Indenture Act as in effect at the date as
of

 

44

which this Basic Agreement was executed or any corresponding provision in any similar
Federal statute hereafter enacted; or

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

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

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

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

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

     (1) reduce in any manner the amount of, or delay the timing of, any receipt by the
Trustee of payments on the Equipment Notes held in such Trust or distributions that are
required to be made herein on any Certificate of such series, or change any date of payment
on any Certificate of such series, or change the place of payment where, or the coin or
currency in which, any Certificate of such series is payable, or impair the right to
institute suit for the enforcement of any such payment or distribution on or after the
Regular Distribution Date or Special Distribution Date applicable thereto; or

 

45

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

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

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

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

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

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

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

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

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

 

46

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

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

ARTICLE X

AMENDMENTS TO INDENTURE AND NOTE DOCUMENTS

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

 

47

to such Direction prior to one Business Day before the Trustee directs such action or casts
such vote or gives such consent. Notwithstanding the foregoing, but subject to Section 6.04 and
any Intercreditor Agreement, the Trustee may, with respect to the Certificates of any series, in
its own discretion and at its own direction, consent and notify the relevant Loan Trustee of such
consent (or direct the Subordination Agent to consent and notify the Loan Trustee of such consent)
to any amendment, modification, waiver or supplement under any related Indenture or any other
related Note Document if an Event of Default hereunder shall have occurred and be continuing or if
such amendment, modification, waiver or supplement will not materially adversely affect the
interests of the Certificateholders of such series.

ARTICLE XI

TERMINATION OF TRUSTS

          Section 11.01. Termination of the Trusts. In respect of each Trust created by the
Basic Agreement as supplemented by a related Trust Supplement, the respective obligations and
responsibilities of the Company and the Trustee with respect to such Trust shall terminate upon the
distribution to all Holders of Certificates of the series of such Trust and the Trustee of all
amounts required to be distributed to them pursuant to this Agreement and the disposition of all
property held as part of the Trust Property of such Trust; provided, however, that
in no event shall such Trust continue beyond one hundred ten (110) years following the date of the
execution of the Trust Supplement with respect to such Trust (or such other final expiration date
as may be specified in such Trust Supplement).

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

          In the event that all of the Certificateholders of such series shall not surrender their
Certificates for cancellation within six months after the date specified in the above-

 

48

mentioned written notice, the Trustee shall give a second written notice to the remaining Certificateholders
of such series to surrender their Certificates for cancellation and receive the final distribution
with respect thereto. No additional interest shall accrue on the Certificates of such series after
any Regular Distribution Date (or Special Distribution Date, as the case may be) of such series, as
specified in the first written notice. In the event that any money held by the Trustee for the
payment of distributions on the Certificates of such series shall remain unclaimed for two years
(or such lesser time as the Trustee shall be satisfied, after 60 days’ notice from the Company, is
one month prior to the escheat period provided under applicable law) after the final distribution
date with respect thereto, the Trustee shall pay to each Loan Trustee the appropriate amount of
money relating to such Loan Trustee and shall give written notice thereof to the related Owner
Trustees and the Company.

ARTICLE XII

MISCELLANEOUS PROVISIONS

          Section 12.01. Limitation on Rights of Certificateholders. The death or incapacity
of any Certificateholder of any series shall not operate to terminate this Agreement or the related
Trust, nor entitle such Certificateholder’s legal representatives or heirs to claim an accounting
or to take any action or commence any proceeding in any court for a partition or winding up of the
Trust, nor otherwise affect the rights, obligations, and liabilities of the parties hereto or any
of them.

          Section 12.02. Liabilities of Certificateholders. Neither the existence of the Trust
nor any provision in this Agreement is intended to or shall limit the liability the
Certificateholders would otherwise incur if the Certificateholders owned Trust Property as
co-owners, or incurred any obligations of the Trust, directly rather than through the Trust.

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

          Section 12.04. Notices. (a) Unless otherwise specifically provided herein or in the
applicable Trust Supplement with respect to any Trust, all notices required under the terms and
provisions of this Basic Agreement or such Trust Supplement with respect to such Trust shall be in
English and in writing, and any such notice may be given by United States mail, courier service or telecopy, and any such notice shall be
effective when delivered or received or, if mailed, three days after deposit in the United States
mail with proper postage for ordinary mail prepaid,

 

49

          if to the Company:

Southwest Airlines Co.

2702 Love Field Drive

Dallas, Texas 75235

Attention: Sr. Vice President and Chief Financial Officer

Facsimile: (214) 792-4022

Telephone: (214) 792-4000

          if to the Trustee:

Wilmington Trust Company

1100 N. Market St.

Wilmington, DE 19890

Attention: Corporate Trust Services

Facsimile: (302) 636 4140

Telephone: (302) 636 6302

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

          (c) Any notice or communication to Certificateholders of any series shall be mailed by
first-class mail to the addresses for Certificateholders of such series shown on the Register kept
by the Registrar and to addresses filed with the Trustee for Certificate Owners of such series.
Failure so to mail a notice or communication or any defect in such notice or communication shall
not affect its sufficiency with respect to other Certificateholders or Certificate Owners of such
series.

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

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

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

          (g) The Trustee shall promptly furnish the Company with a copy of any demand, notice or
written communication received by the Trustee hereunder from any Certificateholder, Owner Trustee
or Loan Trustee.

     Section 12.05. Governing Law. THIS BASIC AGREEMENT HAS BEEN DELIVERED IN THE STATE
OF NEW YORK AND, TOGETHER WITH ALL TRUST SUPPLEMENTS AND CERTIFICATES, SHALL BE CONSTRUED IN
ACCORDANCE

 

50

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.

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

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

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

          Section 12.09. Successors and Assigns. All covenants, agreements, representations
and warranties in this Agreement by the Trustee and the Company shall bind and, to the extent
permitted hereby, shall inure to the benefit of and be enforceable by their respective successors
and assigns, whether so expressed or not.

          Section 12.10. Benefits of Agreement. Nothing in this Agreement or in the
Certificates of any series, express or implied, shall give to any Person, other than the parties
hereto and their successors hereunder, and the Certificateholders of each series, any benefit or
any legal or equitable right, remedy or claim under this Agreement.

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

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

          Section 12.13. Communication by Certificateholders with Other Certificateholders.
Certificateholders of any series may communicate with other Certificateholders of such series with
respect to their rights under this Basic Agreement, the

 

51

related Trust Supplement or the Certificates of such series pursuant to Section 312(b) of the Trust Indenture Act. The Company,
the Trustee and any and all other persons benefited by this Agreement shall have the protection
afforded by Section 312(c) of the Trust Indenture Act.

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

 

52

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

	 	 	 	 	 
	 	 	SOUTHWEST AIRLINES CO.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Laura Wright
	 

	 	 	 	 
	 

	 	 	 	Name: Laura Wright

Title: Sr. Vice President — Chief

Financial Officer
	 
	 	 	 	 
	 	 	WILMINGTON TRUST COMPANY,
	 

	 	 	 	as Trustee
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Tracy M. McLamb
	 

	 	 	 	 
	 

	 	 	 	Name: Tracy M. McLamb
	 

	 	 	 	Title: Senior Financial Services Officer 

 

 

EXHIBIT A

FORM OF CERTIFICATE

          Unless this certificate is presented by an authorized representative of The Depository Trust
Company, a New York corporation (“DTC”), to Issuer or its agent for registration of
transfer, exchange or payment, and any certificate issued is registered in the name of Cede & Co.
or in such other name as is requested by an authorized representative of DTC (and any payment is
made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC),
ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
inasmuch as the registered owner hereof, Cede & Co., has an
interest herein.1

SOUTHWEST AIRLINES CO. ____________ PASS THROUGH TRUST

Pass Through

Certificate, Series __________

Final Regular Distribution Date: _____, ____

evidencing a fractional undivided interest in a

trust, the property of which includes certain

equipment notes each secured by Aircraft owned by or

leased to Southwest Airlines Co.

	 	 	 
	Certificate
	 	 
	No.                              

	 	Fractional Undivided Interest representing.         % of the Trust
	 

	 	per $1,000 face amount

          THIS CERTIFIES THAT                              , for value received, is the registered owner of a
Fractional Undivided Interest, having a face amount of $                (                dollars), in the
Southwest Airlines Co. Pass Through Trust, Series [        ] (the “Trust”) created by Wilmington
Trust Company, as trustee (the “Trustee”), pursuant to a Pass Through Trust Agreement dated
as of         , 200     (the “Basic Agreement”), as supplemented by Trust Supplement No.
        thereto dated             , 200___(collectively, the “Agreement”), between the Trustee
and Southwest Airlines Co., a corporation incorporated under Texas law (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 “        %
Southwest Airlines Co. Pass Through Certificate, Series         ” (herein called the
“Certificates”). This Certificate is issued under and is subject to the terms, provisions
and conditions of the Agreement. By virtue of its acceptance hereof, the

 

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

 

2

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

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

          Subject to and in accordance with the terms of the Agreement and any related Intercreditor
Agreement, from funds then available to the Trustee, there will be distributed on each                          
and                          (a “Regular Distribution Date”), commencing on                          , 200_, to the
Person in whose name this Certificate is registered at the close of business on the 15th day
preceding the Regular Distribution Date, an amount in respect of the Scheduled Payments on the
Equipment Notes due on such Regular Distribution Date, the receipt of which has been confirmed by
the Trustee, equal to the product of the percentage interest in the Trust evidenced by this
Certificate and an amount equal to the sum of such Scheduled Payments. Subject to and in
accordance with the terms of the Agreement and any related Intercreditor Agreement, in the event
that Special Payments on the Equipment Notes are received by the Trustee, from funds then available
to the Trustee, there shall be distributed on the applicable Special Distribution Date, to the
Person in whose name this Certificate is registered at the close of business on the 15th day
preceding the Special Distribution Date, an amount in respect of such Special Payments on the
Equipment Notes, the receipt of which has been confirmed by the Trustee, equal to the product of
the percentage interest in the Trust evidenced by this Certificate and an amount equal to the sum
of such Special Payments so received. If a Regular Distribution Date or Special Distribution Date
is not a Business Day, distribution shall be made on the immediately following Business Day with
the same force and effect as if made on such Regular Distribution Date or Special Distribution Date
and no interest shall accrue during the intervening period. The Trustee shall mail notice of each
Special Payment and the Special Distribution Date therefor to the Certificateholder of this
Certificate.

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

          The Certificates do not represent a direct obligation of, or an obligation guaranteed by, or
an interest in, the Company or the Trustee or any affiliate thereof. The Certificates are limited
in right of payment, all as more specifically set forth on the face hereof and in the Agreement.
All payments or distributions made to Certificateholders under the Agreement shall be made only
from the Trust Property and only to the extent that the Trustee

 

3

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,
proceeds, and duties evidenced hereby. A copy of the Agreement may be examined during normal
business hours at the principal office of the Trustee, and at such other places, if any, designated
by the Trustee, by any Certificateholder upon request.

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

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

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

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

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

 

4

          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.

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

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

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

	 	 	 	 	 
	 	 	SOUTHWEST AIRLINES CO.
	 
	 	 	 	 
	 

	 	By:
	 	WILMINGTON TRUST COMPANY,
	 

	 	 	 	as Trustee
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 

	 

	 	Title:	 	 
	 

	 	 	 	 

Dated:                                                       

[FORM OF THE TRUSTEE’S CERTIFICATE OF AUTHENTICATION]

This is one of the Certificates referred to

in the within-mentioned Agreement.

	 	 	 	 	 
	 

	 	WILMINGT
	 	ON TRUST COMPANY,
	 

	 	 	 	as Trustee
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	                    Authorized OfficerMCGOVERN, HURLEY, CUNNINGHAM, LLP
                              CHARTERED ACCOUNTANTS

                                     CONSENT

TO:      NORTHWESTERN MINERAL VENTURES INC. ("NORTHWESTERN")

AND TO:  BERNS & BERNS, COUNSELORS AT LAW

AND TO:  U.S. SECURITIES & EXCHANGE COMMISSION

FROM:    MCGOVERN, HURLEY, CUNNINGHAM, LLP

RE:      NORTHWESTERN MINERAL VENTURES INC. - AUDITED
         ANNUAL FINANCIAL STATEMENTS FOR THE PERIODS ENDED
         DECEMBER 31, 2004 AND 2003

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

We hereby consent to the inclusion of our report dated February 3, 2005 in
connection with our audits of the financial statements of Northwestern for the
periods ended December 31, 2004 and 2003, in Northwestern's Annual Report on
Form 20-F for the year ended December 31, 2004 ("Form 20-F"), for the purposes
of filing same with the U.S. Securities and Exchange Commission.

Dated this 15th day of July, 2005.

                                        MCGOVERN, HURLEY, CUNNINGHAM, LLP

                                        /s/ McGovern, Hurley, Cunningham, LLP

                                        Chartered Accountants

     2005 Sheppard Avenue East, Suite 300, Toronto, Ontario, Canada, M2J 5B4
                  Telephone (416) 496-1234 Fax: (416) 496-0124

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}]]