Document:

ESCROW AND PAYING AGENT AGREEMENT
                                    (Class C)

                            Dated as of June 26, 2001

                                      among

                        WELLS FARGO BANK NORTHWEST, N.A.

                                 as Escrow Agent

                       MORGAN STANLEY & CO. INCORPORATED,

                                 as Underwriter

                            WILMINGTON TRUST COMPANY,
                         not in its individual capacity,
                       but solely as Pass Through Trustee
                              for and on behalf of
                Continental Airlines Pass Through Trust 2001-1C-O

                             as Pass Through Trustee

                                       and

                            WILMINGTON TRUST COMPANY

                                 as Paying Agent

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                                TABLE OF CONTENTS
                                                                            PAGE

SECTION 1.  Escrow Agent.......................................................2
     Section 1.01.Appointment of Escrow Agent..................................2
     Section 1.02.Instruction; Etc.............................................2
     Section 1.03.Initial Escrow Amount; Issuance of Escrow Receipts...........3
     Section 1.04.Payments to Receiptholders...................................4
     Section 1.05.Mutilated, Destroyed, Lost or Stolen Escrow Receipt..........4
     Section 1.06.Additional Escrow Amounts....................................4
     Section 1.07.Resignation or Removal of Escrow Agent.......................5
     Section 1.08.Persons Deemed Owners........................................5
     Section 1.09.Further Assurances...........................................5

SECTION 2.  Paying Agent.......................................................5
     Section 2.01.Appointment of Paying Agent..................................5
     Section 2.02.Establishment of Paying Agent Account........................6
     Section 2.03.Payments from Paying Agent Account...........................6
     Section 2.04.Withholding Taxes............................................7
     Section 2.05.Resignation or Removal of Paying Agent.......................7
     Section 2.06.Notice of Final Withdrawal...................................7

SECTION 3.  Payments...........................................................8

SECTION 4.  Other Actions......................................................8

SECTION 5.  Representations and Warranties of the Escrow Agent.................8

SECTION 6.  Representations and Warranties of the Paying Agent.................9

SECTION 7.  Indemnification...................................................10

SECTION 8.  Amendment, Etc....................................................11

SECTION 9.  Notices...........................................................11

SECTION 10. Transfer..........................................................11

SECTION 11. Entire Agreement..................................................12

SECTION 12. Governing Law.....................................................12

SECTION 13. Waiver of Jury Trial Right........................................12

SECTION 14. Counterparts......................................................12

Exhibit A   Escrow Receipt

Exhibit B   Withdrawal Certificate

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            ESCROW AND PAYING AGENT AGREEMENT (Class C) dated as of June 26,
2001 (as amended, modified or supplemented from time to time, this "AGREEMENT")
among WELLS FARGO BANK NORTHWEST, N.A., a national banking association, as
Escrow Agent (in such capacity, together with its successors in such capacity,
the "ESCROW AGENT"); MORGAN STANLEY & CO. INCORPORATED, as Underwriter of the
Certificates referred to below (the "Underwriter" and together with its
transferees and assigns as registered owners of the Certificates, the
"INVESTORS") under the Underwriting Agreement referred to below; WILMINGTON
TRUST COMPANY, a Delaware banking corporation, not in its individual capacity
except as otherwise expressly provided herein, but solely as trustee (in such
capacity, together with its successors in such capacity, the "PASS THROUGH
TRUSTEE") under the Pass Through Trust Agreement referred to below; and
WILMINGTON TRUST COMPANY, a Delaware banking corporation, as paying agent
hereunder (in such capacity, together with its successors in such capacity, the
"PAYING AGENT").

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

            WHEREAS, Continental Airlines, Inc. ("CONTINENTAL") and the Pass
Through Trustee have entered into a Trust Supplement, dated as of June 26, 2001
(the "TRUST SUPPLEMENT"), to the Pass Through Trust Agreement, dated as of
September 25, 1997 (together, as amended, modified or supplemented from time to
time in accordance with the terms thereof, the "PASS THROUGH TRUST AGREEMENT")
relating to Continental Airlines Pass Through Trust 2001-1C-O (the "PASS THROUGH
TRUST") pursuant to which the Continental Airlines Pass Through Trust, Series
2001-1C-O Certificates referred to therein (the "CERTIFICATES") are being issued
(the date of such issuance, the "ISSUANCE DATE");

            WHEREAS, Continental and the Underwriter have entered into an
Underwriting Agreement dated as of June 12, 2001 (as amended, modified or
supplemented from time to time in accordance with the terms thereof, the
"UNDERWRITING AGREEMENT") pursuant to which the Pass Through Trustee will issue
and sell the Certificates to the Underwriter;

            WHEREAS, Continental, the Pass Through Trustee, certain other pass
through trustees and certain other persons concurrently herewith are entering
into an Amended and Restated Note Purchase Agreement, dated as of the date
hereof (the "NOTE PURCHASE AGREEMENT"), pursuant to which the Pass Through
Trustee has agreed to acquire from time to time on or prior to the Delivery
Period Termination Date (as defined in the Note Purchase Agreement) equipment
notes (the "EQUIPMENT NOTES") issued to finance the acquisition of aircraft by
Continental, as lessee or as owner, utilizing a portion of the proceeds from the
sale of the Certificates (the "NET PROCEEDS");

            WHEREAS, the Underwriter and the Pass Through Trustee intend that
the Net Proceeds (excluding any amount used to purchase Equipment Notes on the
Issuance Date) be held in escrow by the Escrow Agent on behalf of the Investors,
subject to withdrawal upon request by the Pass Through Trustee and satisfaction
of the conditions set forth in the Note Purchase Agreement for the purpose of
purchasing Equipment Notes, and that pending such withdrawal the Net Proceeds be
deposited on behalf of the Escrow Agent with Credit Suisse First Boston, acting
through its New York branch, as Depositary (the "DEPOSITARY") under the Deposit
Agreement, dated as of the date hereof between the Depositary and the Escrow

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Agent relating to the Pass Through Trust (as amended, modified or supplemented
from time to time in accordance with the terms thereof, the "DEPOSIT AGREEMENT")
pursuant to which, among other things, the Depositary will pay interest for
distribution to the Investors and establish accounts from which the Escrow Agent
shall make withdrawals upon request of and proper certification by the Pass
Through Trustee;

            WHEREAS, the Escrow Agent wishes to appoint the Paying Agent to pay
amounts required to be distributed to the Investors in accordance with this
Agreement; and

            WHEREAS, capitalized terms used but not defined herein shall have
the meanings ascribed to such terms in the Pass Through Trust Agreement.

            NOW, THEREFORE, in consideration of the obligations contained
herein, and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto hereby agree as
follows:

            SECTION 1. ESCROW AGENT.

            Section 1.01.  APPOINTMENT OF ESCROW AGENT. The Underwriter, for
and on behalf of each of the Investors, hereby irrevocably appoints, authorizes
and directs the Escrow Agent to act as escrow agent and fiduciary hereunder and
under the Deposit Agreement for such specific purposes and with such powers as
are specifically delegated to the Escrow Agent by the terms of this Agreement,
together with such other powers as are reasonably incidental thereto. Any and
all money received and held by the Escrow Agent under this Agreement or the
Deposit Agreement shall be held in escrow by the Escrow Agent in accordance with
the terms of this Agreement. This Agreement is irrevocable and the Investors'
rights with respect to any monies received and held in escrow by the Escrow
Agent under this Agreement or the Deposit Agreement shall only be as provided
under the terms and conditions of this Agreement and the Deposit Agreement. The
Escrow Agent (which term as used in this sentence shall include reference to its
affiliates and its own and its affiliates' officers, directors, employees and
agents): (a) shall have no duties or responsibilities except those expressly set
forth in this Agreement; (b) shall not be responsible to the Pass Through
Trustee or the Investors for any recitals, statements, representations or
warranties of any person other then itself contained in this Agreement or the
Deposit Agreement or for the failure by the Pass Through Trustee, the Investors
or any other person or entity (other than the Escrow Agent) to perform any of
its obligations hereunder (whether or not the Escrow Agent shall have any
knowledge thereof); and (c) shall not be responsible for any action taken or
omitted to be taken by it hereunder or provided for herein or in connection
herewith, except for its own willful misconduct or gross negligence (or simple
negligence in connection with the handling of funds).

            Section 1.02. INSTRUCTION; ETC. The Underwriter, for and on behalf
of each of the Investors, hereby irrevocably instruct the Escrow Agent, and the
Escrow Agent agrees, (a) to enter into the Deposit Agreement, (b) to appoint the
Paying Agent as provided in this Agreement, (c) upon receipt at any time and
from time to time prior to the Termination Date (as defined below) of a
certificate substantially in the form of Exhibit B hereto (a "WITHDRAWAL
CERTIFICATE") executed by the Pass Through Trustee, together with an attached
Notice of Purchase Withdrawal in substantially the form of Exhibit A to the

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Deposit Agreement duly completed by the Pass Through Trustee (the "APPLICABLE
NOTICE OF PURCHASE WITHDRAWAL" and the withdrawal to which it relates, a
"PURCHASE WITHDRAWAL"), immediately to execute the Applicable Notice of Purchase
Withdrawal as Escrow Agent and transmit it to the Depositary by facsimile
transmission in accordance with the Deposit Agreement; PROVIDED that, upon the
request of the Pass Through Trustee after such transmission, the Escrow Agent
shall cancel such Applicable Notice of Purchase Withdrawal, and (d) if there are
any undrawn Deposits (as defined in the Deposit Agreement) on the "TERMINATION
DATE", which shall mean the earlier of (i) December 31, 2002 (PROVIDED that, if
a labor strike occurs or continues at The Boeing Company after the Issuance Date
and prior to December 31, 2002 (a "LABOR STRIKE"), such date shall be extended
by adding thereto the number of days that such strike continued in effect after
the Issuance Date (the "ADDITIONAL DAYS")) and (ii) the day on which the Escrow
Agent receives notice from the Pass Through Trustee that the Pass Through
Trustee's obligation to purchase Equipment Notes under the Note Purchase
Agreement has terminated, to give notice to the Depositary (with a copy to the
Paying Agent) substantially in the form of Exhibit B to the Deposit Agreement
requesting a withdrawal of all of the remaining Deposits, together with accrued
and unpaid interest on such Deposits to the date of withdrawal, on the 25th day
after the date that such notice of withdrawal is given to the Depositary (or, if
not a Business Day, on the next succeeding Business Day) (a "FINAL WITHDRAWAL"),
PROVIDED that if the day scheduled for the Final Withdrawal in accordance with
the foregoing is within 10 days before or after a Regular Distribution Date,
then the Escrow Agent shall request that such requested Final Withdrawal be made
on such Regular Distribution Date (the date of such requested withdrawal, the
"FINAL WITHDRAWAL DATE"). If for any reason the Escrow Agent shall have failed
to give the Final Withdrawal Notice to the Depositary on or before January 8,
2003 (PROVIDED that if a Labor Strike occurs or continues, such date shall be
extended by the Additional Days), and there are unwithdrawn Deposits on such
date, the Final Withdrawal Date shall be deemed to be January 31, 2003 (PROVIDED
that if a Labor Strike occurs or continues, such date shall be extended by the
Additional Days).

            Section 1.03. INITIAL ESCROW AMOUNT; ISSUANCE OF ESCROW RECEIPTS.
The Escrow Agent hereby directs the Underwriter to, and the Underwriter hereby
acknowledges that on the date hereof it shall, irrevocably deliver to the
Depositary on behalf of the Escrow Agent, an amount in U.S. dollars ("DOLLARS")
and immediately available funds equal to $191,764,000 (or such lesser amount
equal to the Net Proceeds less amounts used to purchase Equipment Notes on the
Issuance Date) for deposit on behalf of the Escrow Agent with the Depositary in
accordance with Section 2.1 of the Deposit Agreement. The Underwriter hereby
instructs the Escrow Agent, upon receipt of such sum from the Underwriter, to
confirm such receipt by executing and delivering to the Pass Through Trustee an
Escrow Receipt in the form of Exhibit A hereto (an "ESCROW RECEIPT"), (a) to be
affixed by the Pass Through Trustee to each Certificate and (b) to evidence the
same percentage interest (the "ESCROW INTEREST") in the Account Amounts (as
defined below) as the Fractional Undivided Interest in the Pass Through Trust
evidenced by the Certificate to which it is to be affixed. The Escrow Agent
shall provide to the Pass Through Trustee for attachment to each Certificate
newly issued under and in accordance with the Pass Through Trust Agreement an
executed Escrow Receipt as the Pass Through Trustee may from time to time
request of the Escrow Agent. Each Escrow Receipt shall be registered by the
Escrow Agent in a register (the "REGISTER") maintained by the Escrow Agent in
the same name and same manner as the Certificate to which it is attached and may
not thereafter be detached from such Certificate to which it is to be affixed
prior to the distribution of the Final Withdrawal (the "FINAL DISTRIBUTION").
After the Final Distribution, no additional Escrow Receipts shall be issued and

<PAGE>

the Pass Through Trustee shall request the return to the Escrow Agent for
cancellation of all outstanding Escrow Receipts.

            Section 1.04. PAYMENTS TO RECEIPTHOLDERS. All payments and
distributions made to holders of an Escrow Receipt (collectively
"RECEIPTHOLDERS") in respect of the Escrow Receipt shall be made only from
amounts deposited in the Paying Agent Account (as defined below) ("ACCOUNT
AMOUNTS"). Each Receiptholder, by its acceptance of an Escrow Receipt, agrees
that (a) it will look solely to the Account Amounts for any payment or
distribution due to such Receiptholder pursuant to the terms of the Escrow
Receipt and this Agreement and (b) it will have no recourse to Continental, the
Pass Through Trustee, the Paying Agent or the Escrow Agent, except as expressly
provided herein or in the Pass Through Trust Agreement. No Receiptholder shall
have any right to vote or in any manner otherwise control the operation and
management of the Paying Agent Account or the obligations of the parties hereto,
nor shall anything set forth herein, or contained in the terms of the Escrow
Receipt, be construed so as to constitute the Receiptholders from time to time
as partners or members of an association.

            Section 1.05. MUTILATED, DESTROYED, LOST OR STOLEN ESCROW RECEIPT.
If (a) any mutilated Escrow Receipt is surrendered to the Escrow Agent or the
Escrow Agent receives evidence to its satisfaction of the destruction, loss or
theft of any Escrow Receipt and (b) there is delivered to the Escrow Agent and
the Pass Through Trustee such security, indemnity or bond, as may be required by
them to hold each of them harmless, then, absent notice to the Escrow Agent or
the Pass Through Trustee that such destroyed, lost or stolen Escrow Receipt has
been acquired by a bona fide purchaser, and provided that the requirements of
Section 8-405 of the Uniform Commercial Code in effect in any applicable
jurisdiction are met, the Escrow Agent shall execute, authenticate and deliver,
in exchange for or in lieu of any such mutilated, destroyed, lost or stolen
Escrow Receipt, a new Escrow Receipt or Escrow Receipts and of like Escrow
Interest in the Account Amounts and bearing a number not contemporaneously
outstanding.

            In connection with the issuance of any new Escrow Receipt under this
Section 1.05, the Escrow Agent may require the payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in relation
thereto and any other expenses (including the fees and expenses of the Pass
Through Trustee and the Escrow Agent) connected therewith.

            Any duplicate Escrow Receipt issued pursuant to this Section 1.05
shall constitute conclusive evidence of the appropriate Escrow Interest in the
Account Amounts, as if originally issued, whether or not the lost, stolen or
destroyed Escrow Receipt shall be found at any time.

            The provisions of this Section 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 Escrow Receipts.

            Section 1.06.  ADDITIONAL ESCROW AMOUNTS. On the date of any
Purchase Withdrawal, the Pass Through Trustee may re-deposit with the Depositary
some or all of the amounts so withdrawn in accordance with Section 2.4 of the
Deposit Agreement.

<PAGE>

            Section 1.07. RESIGNATION OR REMOVAL OF ESCROW AGENT. Subject to the
appointment and acceptance of a successor Escrow Agent as provided below, the
Escrow Agent may resign at any time by giving 30 days' prior written notice
thereof to the Investors, but may not otherwise be removed except for cause by
the written consent of the Investors with respect to Investors representing
Escrow Interests aggregating not less than a majority in interest in the Account
Amounts (an "ACTION OF INVESTORS"). Upon any such resignation or removal, the
Investors, by an Action of Investors, shall have the right to appoint a
successor Escrow Agent. If no successor Escrow Agent shall have been so
appointed and shall have accepted such appointment within 30 days after the
retiring Escrow Agent's giving of notice of resignation or the removal of the
retiring Escrow Agent, then the retiring Escrow Agent may appoint a successor
Escrow Agent. Any successor Escrow Agent shall be a bank which has an office in
the United States with a combined capital and surplus of at least $100,000,000.
Upon the acceptance of any appointment as Escrow Agent hereunder by a successor
Escrow Agent, such successor Escrow Agent shall enter into such documents as the
Pass Through Trustee shall require and shall thereupon succeed to and become
vested with all the rights, powers, privileges and duties of the retiring Escrow
Agent, and the retiring Escrow Agent shall be discharged from its duties and
obligations hereunder. No resignation or removal of the Escrow Agent shall be
effective unless a written confirmation shall have been obtained from each of
Moody's Investors Service, Inc. and Standard & Poor's Ratings Services, a
division of The McGraw-Hill Companies, Inc., that the replacement of the Escrow
Agent with the successor Escrow Agent will not result in (a) a reduction of the
rating for the Certificates below the then current rating for the Certificates
or (b) a withdrawal or suspension of the rating of the Certificates.

            Section 1.08. PERSONS DEEMED OWNERS. Prior to due presentment of a
Certificate for registration of transfer, the Escrow Agent and the Paying Agent
may treat the Person in whose name any Escrow Receipt is registered (as of the
day of determination) as the owner of such Escrow Receipt for the purpose of
receiving distributions pursuant to this Agreement and for all other purposes
whatsoever, and neither the Escrow Agent nor the Paying Agent shall be affected
by any notice to the contrary.

            Section 1.09. FURTHER ASSURANCES. The Escrow Agent agrees to take
such actions, and execute such other documents, as may be reasonably requested
by the Pass Through Trustee in order to effectuate the purposes of this
Agreement and the performance by the Escrow Agent of its obligations hereunder.

            SECTION 2. PAYING AGENT.

            Section 2.01. APPOINTMENT OF PAYING AGENT. The Escrow Agent hereby
irrevocably appoints and authorizes the Paying Agent to act as its paying agent
hereunder, for the benefit of the Investors, for such specific purposes and with
such powers as are specifically delegated to the Paying Agent by the terms of
this Agreement, together with such other powers as are reasonably incidental
thereto. Any and all money received and held by the Paying Agent under this
Agreement or the Deposit Agreement shall be held in the Paying Agent Account for
the benefit of the Investors. The Paying Agent (which term as used in this
sentence shall include reference to its affiliates and its own and its
affiliates' officers, directors, employees and agents): (a) shall have no duties
or responsibilities except those expressly set forth in this Agreement, and
shall not by reason of this Agreement be a trustee for the Escrow Agent; (b)

<PAGE>

shall not be responsible to the Escrow Agent for any recitals, statements,
representations or warranties of any person other then itself contained in this
Agreement or for the failure by the Escrow Agent or any other person or entity
(other than the Paying Agent) to perform any of its obligations hereunder
(whether or not the Paying Agent shall have any knowledge thereof); and (c)
shall not be responsible for any action taken or omitted to be taken by it
hereunder or provided for herein or in connection herewith, except for its own
willful misconduct or gross negligence (or simple negligence in connection with
the handling of funds).

            Section 2.02. ESTABLISHMENT OF PAYING AGENT ACCOUNT. The Paying
Agent shall establish a deposit account (the "PAYING AGENT ACCOUNT") at
Wilmington Trust Company in the name of the Escrow Agent. It is expressly
understood by the parties hereto that the Paying Agent is acting as the paying
agent of the Escrow Agent hereunder and that no amounts on deposit in the Paying
Agent Account constitute part of the Trust Property.

            Section 2.03. PAYMENTS FROM PAYING AGENT ACCOUNT. The Escrow Agent
hereby irrevocably instructs the Paying Agent, and the Paying Agent agrees to
act, as follows:

                    (a) On each Interest Payment Date (as defined in the Deposit
      Agreement) or as soon thereafter as the Paying Agent has confirmed receipt
      in the Paying Agent Account from the Depositary of any amount in respect
      of accrued interest on the Deposits, the Paying Agent shall distribute out
      of the Paying Agent Account the entire amount deposited therein by the
      Depositary. There shall be so distributed to each Receiptholder of record
      on the 15th day (whether or not a Business Day) preceding such Interest
      Payment Date by check mailed to such Receiptholder, at the address
      appearing in the Register, such Receiptholder's pro rata share (based on
      the Escrow Interest in the Account Amounts held by such Receiptholder) of
      the total amount of interest deposited by the Depositary in the Paying
      Agent Account on such date, except that, with respect to Escrow Receipts
      registered on the Record Date in the name of The Depository Trust Company
      ("DTC"), such distribution shall be made by wire transfer in immediately
      available funds to the account designated by DTC.

                    (b) Upon the confirmation by the Paying Agent of receipt in
      the Paying Agent Account from the Depositary of any amount in respect of
      the Final Withdrawal, the Paying Agent shall forthwith distribute the
      entire amount of the Final Withdrawal deposited therein by the Depositary.
      There shall be so distributed to each Receiptholder of record on the 15th
      day (whether or not a Business Day) preceding the Final Withdrawal Date by
      check mailed to such Receiptholder, at the address appearing in the
      Register, such Receiptholder's pro rata share (based on the Escrow
      Interest in the Account Amounts held by such Receiptholder) of the total
      amount in the Paying Agent Account on account of such Final Withdrawal,
      except that, with respect to Escrow Receipts registered on the Record Date
      in the name of DTC, such distribution shall be made by wire transfer in
      immediately available funds to the account designated by DTC.

                    (c) If any payment of interest or principal in respect of
      the Final Withdrawal is not received by the Paying Agent within five days
      of the applicable date when due, then it shall be distributed to
      Receiptholders after actual receipt by the Paying Agent on the same basis

<PAGE>

      as a Special Payment is distributed under the Pass Through Trust
      Agreement.

                    (d) The Paying Agent shall include with any check mailed
      pursuant to this Section any notice required to be distributed under the
      Pass Through Trust Agreement that is furnished to the Paying Agent by the
      Pass Through Trustee.

            Section 2.04. WITHHOLDING TAXES. The Paying Agent shall exclude and
withhold from each distribution of accrued interest on the Deposits (as defined
in the Deposit Agreement) and any amount in respect of any Final Withdrawal any
and all withholding taxes applicable thereto as required by law. The Paying
Agent 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 Deposits (as
defined in the Deposit Agreement) or the escrow amounts, to withhold such
amounts and timely pay the same to the appropriate authority in the name of and
on behalf of the Receiptholders, 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 Receiptholder appropriate
documentation showing the payment thereof, together with such additional
documentary evidence as such Receiptholder may reasonably request from time to
time. The Paying Agent agrees to file any other information reports as it may be
required to file under United States law.

            Section 2.05. RESIGNATION OR REMOVAL OF PAYING AGENT. Subject to the
appointment and acceptance of a successor Paying Agent as provided below, the
Paying Agent may resign at any time by giving 30 days' prior written notice
thereof to the Escrow Agent, but may not otherwise be removed except for cause
by the Escrow Agent. Upon any such resignation or removal, the Escrow Agent
shall have the right to appoint a successor Paying Agent. If no successor Paying
Agent shall have been so appointed and shall have accepted such appointment
within 30 days after the retiring Paying Agent's giving of notice of resignation
or the removal of the retiring Paying Agent, then the retiring Paying Agent may
appoint a successor Paying Agent. Any Successor Paying Agent shall be a bank
which has an office in the United States with a combined capital and surplus of
at least $100,000,000. Upon the acceptance of any appointment as Paying Agent
hereunder by a successor Paying Agent, such successor Paying Agent shall enter
into such documents as the Escrow Agent shall require and shall thereupon
succeed to and become vested with all the rights, powers, privileges and duties
of the retiring Paying Agent, and the retiring Paying Agent shall be discharged
from its duties and obligations hereunder.

            Section 2.06. NOTICE OF FINAL WITHDRAWAL. Promptly after receipt by
the Paying Agent of notice that the Escrow Agent has requested a Final
Withdrawal or that a Final Withdrawal will be made, the Paying Agent shall cause
notice of the distribution of the Final Withdrawal to be mailed to each of the
Receiptholders at its address as it appears in the Register. Such notice shall
be mailed not less than 15 days prior to the Final Withdrawal Date. Such notice
shall set forth:

                  (i) the Final Withdrawal Date and the date for determining
      Receiptholders of record who shall be entitled to receive distributions in
      respect of the Final Withdrawal,

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                  (ii) the amount of the payment in respect of the Final
      Withdrawal for each $1,000 face amount Certificate (based on information
      provided by the Pass Through Trustee) and the amount thereof constituting
      unused Deposits (as defined in the Deposit Agreement) and interest
      thereon, and

                  (iii) if the Final Withdrawal Date is the same date as a
      Regular Distribution Date, the total amount to be received on such date
      for each $1,000 face amount Certificate (based on information provided by
      the Pass Through Trustee).

            Such mailing may include any notice required to be given to
Certificateholders in connection with such distribution pursuant to the Pass
Through Trust Agreement.

            SECTION 3. PAYMENTS. If, notwithstanding the instructions in Section
4 of the Deposit Agreement that all amounts payable to the Escrow Agent under
the Deposit Agreement be paid by the Depositary directly to the Paying Agent or
the Pass Through Trustee (depending on the circumstances), the Escrow Agent
receives any payment thereunder, then the Escrow Agent shall forthwith pay such
amount in Dollars and in immediately available funds by wire transfer to (a) in
the case of a payment of accrued interest on the Deposits (as defined in the
Deposit Agreement) or any Final Withdrawal, directly to the Paying Agent Account
and (b) in the case of any Purchase Withdrawal, directly to the Pass Through
Trustee or its designee as specified and in the manner provided in the
Applicable Notice of Purchase Withdrawal. The Escrow Agent hereby waives any and
all rights of set-off, combination of accounts, right of retention or similar
right (whether arising under applicable law, contract or otherwise) it may have
against amounts payable to the Paying Agent howsoever arising.

            SECTION 4. OTHER ACTIONS. The Escrow Agent shall take such other
actions under or in respect of the Deposit Agreement (including, without
limitation, the enforcement of the obligations of the Depositary thereunder) as
the Investors, by an Action of Investors, may from time to time request.

            SECTION 5. REPRESENTATIONS AND WARRANTIES OF THE ESCROW AGENT. The
Escrow Agent represents and warrants to Continental, the Investors, the Paying
Agent and the Pass Through Trustee as follows:

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

                  (ii) it has full power, authority and legal right to conduct
      its business and operations as currently conducted and to enter into and
      perform its obligations under this Agreement and the Deposit Agreement;

                  (iii) the execution, delivery and performance of each of this
      Agreement and the Deposit Agreement have been duly authorized by all
      necessary corporate action on the part of it and do not require any
      stockholder approval, or approval or consent of any trustee or holder of
      any indebtedness or obligations of it, and each such document has been
      duly executed and delivered by it and constitutes its legal, valid and

<PAGE>

      binding obligations enforceable against it in accordance with the terms
      hereof or thereof except as such enforceability may be limited by
      bankruptcy, insolvency, moratorium, reorganization or other similar laws
      or equitable principles of general application to or affecting the
      enforcement of creditors' rights generally (regardless of whether such
      enforceability is considered in a proceeding in equity or at law);

                  (iv) no authorization, consent or approval of or other action
      by, and no notice to or filing with, any United States federal or state
      governmental authority or regulatory body is required for the execution,
      delivery or performance by it of this Agreement or the Deposit Agreement;

                  (v) neither the execution, delivery or performance by it of
      this Agreement or the Deposit Agreement, nor compliance with the terms and
      provisions hereof or thereof, conflicts or will conflict with or results
      or will result in a breach or violation of any of the terms, conditions or
      provisions of, or will require any consent or approval under, any law,
      governmental rule or regulation or the charter documents, as amended, or
      bylaws, as amended, of it or any similar instrument binding on it or any
      order, writ, injunction or decree of any court or governmental authority
      against it or by which it or any of its properties is bound or any
      indenture, mortgage or contract or other agreement or instrument to which
      it is a party or by which it or any of its properties is bound, or
      constitutes or will constitute a default thereunder or results or will
      result in the imposition of any lien upon any of its properties; and

                  (vi) there are no pending or, to its knowledge, threatened
      actions, suits, investigations or proceedings (whether or not purportedly
      on behalf of it) against or affecting it or any of its property before or
      by any court or administrative agency which, if adversely determined, (A)
      would adversely affect the ability of it to perform its obligations under
      this Agreement or the Deposit Agreement or (B) would call into question or
      challenge the validity of this Agreement or the Deposit Agreement or the
      enforceability hereof or thereof in accordance with the terms hereof or
      thereof, nor is the Escrow Agent in default with respect to any order of
      any court, governmental authority, arbitration board or administrative
      agency so as to adversely affect its ability to perform its obligations
      under this Agreement or the Deposit Agreement.

            SECTION 6. REPRESENTATIONS AND WARRANTIES OF THE PAYING AGENT. The
Paying Agent represents and warrants to Continental, the Investors, the Escrow
Agent and the Pass Through Trustee as follows:

                  (i) it is a Delaware banking company duly organized and
      validly existing in good standing under the laws of its jurisdiction of
      incorporation;

                  (ii) it has full power, authority and legal right to conduct
      its business and operations as currently conducted and to enter into and
      perform its obligations under this Agreement;

<PAGE>

                  (iii) the execution, delivery and performance of this
      Agreement has been duly authorized by all necessary corporate action on
      the part of it and does not require any stockholder approval, or approval
      or consent of any trustee or holder of any indebtedness or obligations of
      it, and such document has been duly executed and delivered by it and
      constitutes its legal, valid and binding obligations enforceable against
      it in accordance with the terms hereof except as such enforceability may
      be limited by bankruptcy, insolvency, moratorium, reorganization or other
      similar laws or equitable principles of general application to or
      affecting the enforcement of creditors' rights generally (regardless of
      whether such enforceability is considered in a proceeding in equity or at
      law);

                  (iv) no authorization, consent or approval of or other action
      by, and no notice to or filing with, any United States federal or state
      governmental authority or regulatory body is required for the execution,
      delivery or performance by it of this Agreement;

                  (v) neither the execution, delivery or performance by it of
      this Agreement, nor compliance with the terms and provisions hereof,
      conflicts or will conflict with or results or will result in a breach or
      violation of any of the terms, conditions or provisions of, or will
      require any consent or approval under, any law, governmental rule or
      regulation or the charter documents, as amended, or bylaws, as amended, of
      it or any similar instrument binding on it or any order, writ, injunction
      or decree of any court or governmental authority against it or by which it
      or any of its properties is bound or any indenture, mortgage or contract
      or other agreement or instrument to which it is a party or by which it or
      any of its properties is bound, or constitutes or will constitute a
      default thereunder or results or will result in the imposition of any lien
      upon any of its properties; and

                  (vi) there are no pending or, to its knowledge, threatened
      actions, suits, investigations or proceedings (whether or not purportedly
      on behalf of it) against or affecting it or any of its property before or
      by any court or administrative agency which, if adversely determined, (A)
      would adversely affect the ability of it to perform its obligations under
      this Agreement or (B) would call into question or challenge the validity
      of this Agreement or the enforceability hereof in accordance with the
      terms hereof, nor is the Paying Agent in default with respect to any order
      of any court, governmental authority, arbitration board or administrative
      agency so as to adversely affect its ability to perform its obligations
      under this Agreement.

            SECTION 7. INDEMNIFICATION. Except for actions expressly required of
the Escrow Agent or the Paying Agent hereunder, each of the Escrow Agent and the
Paying Agent shall in all cases be fully justified in failing or refusing to act
hereunder unless it shall have been indemnified by the party requesting such
action in a manner reasonably satisfactory to it against any and all liability
and expense which may be incurred by it by reason of taking or continuing to
take any such action. In the event Continental requests any amendment to any
Operative Agreement (as defined in the Note Purchase Agreement), the Pass
Through Trustee agrees to pay all reasonable fees and expenses (including,

<PAGE>

without limitation, fees and disbursements of counsel) of the Escrow Agent and
the Paying Agent in connection therewith.

            SECTION 8. AMENDMENT, ETC. Upon request of the Pass Through Trustee
and approval by an Action of Investors, the Escrow Agent shall enter into an
amendment to this Agreement, so long as such amendment does not adversely affect
the rights or obligations of the Escrow Agent or the Paying Agent, PROVIDED that
upon request of the Pass Through Trustee and without any consent of the
Investors, the Escrow Agent shall enter into an amendment to this Agreement for
any of the following purposes:

                  (1) to correct or supplement any provision in this Agreement
      which may be defective or inconsistent with any other provision herein or
      to cure any ambiguity or correct any mistake or to modify any other
      provision with respect to matters or questions arising under this
      Agreement, PROVIDED that any such action shall not materially adversely
      affect the interests of the Investors; or

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

                  (3) to evidence and provide for the acceptance of appointment
      under this Agreement of a successor Escrow Agent, successor Paying Agent
      or successor Pass Through Trustee.

            SECTION 9. NOTICES. Unless otherwise expressly provided herein, any
notice or other communication under this Agreement shall be in writing
(including by facsimile) and shall be deemed to be given and effective upon
receipt thereof. All notices shall be sent to (a) in the case of the Investors,
as their respective addresses shall appear in the Register, (b) in the case of
the Escrow Agent, Wells Fargo Bank Northwest, N.A., 79 South Main Street, Third
Floor, Salt Lake City, UT 84111, Attention: Corporate Trust Services
(Telecopier: (801) 246-5053), (c) in the case of the Pass Through Trustee,
Wilmington Trust Company, 1100 North Market Street, Wilmington, DE 19890,
Attention: Corporate Trust Administration (Telecopier: (302) 651-8882) or (d) in
the case of the Paying Agent, Wilmington Trust Company, 1100 North Market
Street, Wilmington, DE 19890, Attention: Corporate Trust Administration
(Telecopier: (302) 651-8882), in each case with a copy to Continental,
Continental Airlines, Inc., 1600 Smith Street, Dept. HQS-FN, Houston, TX 77002,
Attention: Treasurer (Telecopier: (713) 324-2447) (or at such other address as
any such party may specify from time to time in a written notice to the other
parties). On or prior to the execution of this Agreement, the Pass Through
Trustee has delivered to the Escrow Agent a certificate containing specimen
signatures of the representatives of the Pass Through Trustee who are authorized
to give notices and instructions with respect to this Agreement. The Escrow
Agent may conclusively rely on such certificate until the Escrow Agent receives
written notice from the Pass Through Trustee to the contrary.

            SECTION 10. TRANSFER. No party hereto shall be entitled to assign or
otherwise transfer this Agreement (or any interest herein) other than (in the
case of the Escrow Agent) to a successor escrow agent under Section 1.06 hereof
or (in the case of the Paying Agent) to a successor paying agent under Section

<PAGE>

2.04 hereof, and any purported assignment in violation thereof shall be void.
This Agreement shall be binding upon the parties hereto and their respective
successors and (in the case of the Escrow Agent and the Paying Agent) their
respective permitted assigns. Upon the occurrence of the Transfer (as defined
below) contemplated by the Assignment and Assumption Agreement (as defined
below), the Pass Through Trustee shall (without further act) be deemed to have
transferred all of its right, title and interest in and to this Agreement to the
trustee of the Successor Trust (as defined below) and, thereafter, the trustee
of the Successor Trust shall be deemed to be the "Pass Through Trustee"
hereunder with the rights and obligations of the "Pass Through Trustee"
hereunder and each reference herein to "Continental Airlines Pass Through Trust
2001-1C-O" shall be deemed to be a reference to "Continental Airlines Pass
Through Trust 2001-1C-S". The parties hereto hereby acknowledge and consent to
the Transfer contemplated by the Assignment and Assumption Agreement. As used
herein, "TRANSFER" means the transfers of the assets to the Successor Trust
contemplated by the Assignment and Assumption Agreement; "ASSIGNMENT AND
ASSUMPTION AGREEMENT" means the Assignment and Assumption Agreement to be
entered into between the Pass Through Trustee and the trustee of the Successor
Trust, substantially in the form of Exhibit C to the Trust Supplement;
"SUCCESSOR TRUST" means the Continental Airlines Pass Through Trust 2001-1C-S.

            SECTION 11. ENTIRE AGREEMENT. This Agreement sets forth all of the
promises, covenants, agreements, conditions and understandings among the Escrow
Agent, the Paying Agent, the Underwriter and the Pass Through Trustee with
respect to the subject matter hereof, and supersedes all prior and
contemporaneous agreements and undertakings, inducements or conditions, express
or implied, oral or written.

            SECTION 12. GOVERNING LAW. This Agreement shall be governed by, and
construed in accordance with, the laws of the State of New York.

            SECTION 13. WAIVER OF JURY TRIAL RIGHT. EACH OF THE ESCROW AGENT,
THE PAYING AGENT, THE INVESTORS AND THE PASS THROUGH TRUSTEE ACKNOWLEDGES AND
ACCEPTS THAT IN ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO
THIS AGREEMENT SUCH PARTY IRREVOCABLY WAIVES ITS RIGHT TO A TRIAL BY JURY.

            SECTION 14. COUNTERPARTS. This Agreement may be executed in one or
more counterparts, all of which taken together shall constitute one instrument.

<PAGE>

            IN WITNESS WHEREOF, the Escrow Agent, the Paying Agent, the
Underwriter and the Pass Through Trustee have caused this Escrow and Paying
Agent Agreement (Class C) to be duly executed as of the day and year first above
written.

                                              WELLS FARGO BANK NORTHWEST, N.A.,
                                                as Escrow Agent

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

                                              MORGAN STANLEY & CO. INCORPORATED,
                                                as Underwriter

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

                                              WILMINGTON TRUST COMPANY, not in
                                                its individual capacity, but
                                                solely as Pass Through Trustee
                                                for and on behalf of Continental
                                                Airlines Pass Through Trust
                                                2001-1C-O

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

<PAGE>

                                              WILMINGTON TRUST COMPANY,
                                                as Paying Agent

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

<PAGE>

                                                                       EXHIBIT A

                   CONTINENTAL AIRLINES 2001-1C ESCROW RECEIPT

                                     No. __

            This Escrow Receipt evidences a fractional undivided interest in
amounts ("ACCOUNT AMOUNTS") from time to time deposited into a certain paying
agent account (the "PAYING AGENT ACCOUNT") described in the Escrow and Paying
Agent Agreement (Class C) dated as of June 26, 2001 (as amended, modified or
supplemented from time to time, the "ESCROW AND PAYING AGENT AGREEMENT") among
Wells Fargo Bank Northwest, N.A., as Escrow Agent (in such capacity, together
with its successors in such capacity, the "ESCROW AGENT"), Morgan Stanley & Co.
Incorporated, as Underwriter, Wilmington Trust Company, as Pass Through Trustee
(in such capacity, together with its successors in such capacity, the "PASS
THROUGH TRUSTEE") and Wilmington Trust Company, as paying agent (in such
capacity, together with its successors in such capacity, the "PAYING AGENT").
Capitalized terms not defined herein shall have the meanings assigned to them in
the Escrow and Paying Agent Agreement.

            This Escrow Receipt is issued under and is subject to the terms,
provisions and conditions of the Escrow and Paying Agent Agreement. By virtue of
its acceptance hereof the holder of this Escrow Receipt assents and agrees to be
bound by the provisions of the Escrow and Paying Agent Agreement and this Escrow
Receipt.

            This Escrow Receipt represents a fractional undivided interest in
amounts deposited from time to time in the Paying Agent Account, and grants or
represents no rights, benefits or interests of any kind in respect of any assets
or property other than such amounts. This Escrow Receipt evidences the same
percentage interest in the Account Amounts as the Fractional Undivided Interest
in the Pass Through Trust evidenced by the Certificate to which this Escrow
Receipt is affixed.

            All payments and distributions made to Receiptholders in respect of
the Escrow Receipt shall be made only from Account Amounts deposited in the
Paying Agent Account. The holder of this Escrow Receipt, by its acceptance of
this Escrow Receipt, agrees that it will look solely to the Account Amounts for
any payment or distribution due to it pursuant to this Escrow Receipt and that
it will not have any recourse to Continental, the Pass Through Trustee, the
Paying Agent or the Escrow Agent, except as expressly provided herein or in the
Pass Through Trust Agreement. No Receiptholder of this Escrow Receipt shall have
any right to vote or in any manner otherwise control the operation and
management of the Paying Agent Account, nor shall anything set forth herein, or
contained in the terms of this Escrow Receipt, be construed so as to constitute
the Receiptholders from time to time as partners or members of an association.

            This Escrow Receipt may not be assigned or transferred except in
connection with the assignment or transfer of the Certificate to which this
Escrow Receipt is affixed. After payment to the holder hereof of its Escrow
Interest in the Final Distribution, upon the request of the Pass Through
Trustee, the holder hereof will return this Escrow Receipt to the Pass Through
Trustee.

<PAGE>

            The Paying Agent may treat the person in whose name the Certificate
to which this Escrow Receipt is attached as the owner hereof for all purposes,
and the Paying Agent shall not be affected by any notice to the contrary.

            THIS ESCROW RECEIPT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK.

<PAGE>

            IN WITNESS WHEREOF, the Escrow Agent has caused this Escrow Receipt
to be duly executed.

Dated: June 26, 2001

                                              WELLS FARGO BANK NORTHWEST, N.A,
                                                as Escrow Agent

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

<PAGE>

                                                                       EXHIBIT B

                             WITHDRAWAL CERTIFICATE
                                    (Class C)

                        Wells Fargo Bank Northwest, N.A.,
                                 as Escrow Agent

Dear Sirs:

            Reference is made to the Escrow and Paying Agent Agreement, dated as
of June 26, 2001 (the "Agreement"). We hereby certify to you that the conditions
to the obligations of the undersigned to execute a Participation Agreement
pursuant to the Note Purchase Agreement have been satisfied. Pursuant to Section
1.02(c) of the Agreement, please execute the attached Notice of Purchase
Withdrawal and immediately transmit by facsimile to the Depositary, at (212)
325-8319, Attention: Robert Finney and Mark Verbitsky.

                                              Very truly yours,

                                              WILMINGTON TRUST COMPANY,
                                                not in its individual capacity
                                                but solely as Pass Through
                                                Trustee

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

Dated:  ____________, 200_----------------------------------------------------------------

                              AMENDED AND RESTATED
                             NOTE PURCHASE AGREEMENT

                            Dated as of June 26, 2001

                                      Among

                           CONTINENTAL AIRLINES, INC.,

                            WILMINGTON TRUST COMPANY,
                    as Pass Through Trustee under each of the
                          Pass Through Trust Agreements

                            WILMINGTON TRUST COMPANY,
                             as Subordination Agent

                WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION,
                                 as Escrow Agent

                                       and

                            WILMINGTON TRUST COMPANY,
                                 as Paying Agent

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

<PAGE>

                        INDEX TO NOTE PURCHASE AGREEMENT

                                                                            Page

SECTION 1.  Financing of New Aircraft..........................................4
SECTION 2.  Conditions Precedent..............................................11
SECTION 3.  Representations and Warranties....................................12
SECTION 4.  Covenants.........................................................16
SECTION 5.  Notices...........................................................18
SECTION 6.  Expenses..........................................................18
SECTION 7.  Further Assurances................................................19
SECTION 8.  Miscellaneous.....................................................19
SECTION 9.  Governing Law.....................................................20

                                    SCHEDULES

Schedule I      New Aircraft and Scheduled Delivery Months
Schedule II     Trust Supplements
Schedule III    Deposit Agreements
Schedule IV     Escrow and Paying Agent Agreements
Schedule V      Mandatory Document Terms
Schedule VI     Mandatory Economic Terms

                                      ANNEX

Annex A  Definitions

                                    EXHIBITS

Exhibit A-1     Form of Leased Aircraft Participation Agreement
Exhibit A-2     Form of Lease
Exhibit A-3     Form of Leased Aircraft Indenture
Exhibit A-4     Form of Aircraft Purchase Agreement Assignment
Exhibit A-5     Form of Leased Aircraft Trust Agreement
Exhibit A-6     Form of Special Indenture
Exhibit B       Form of Delivery Notice
Exhibit C-1     Form of Owned Aircraft Participation Agreement
Exhibit C-2     Form of Owned Aircraft Indenture
Exhibit D       Form of Special Addition to Participation Agreement
Exhibit E       Special Revisions to Section 6.2 of the Participation Agreement
Exhibit F       Additional Subordination Provision for Series D Equipment Notes

<PAGE>

                  AMENDED AND RESTATED NOTE PURCHASE AGREEMENT

            This AMENDED AND RESTATED NOTE PURCHASE AGREEMENT, dated as of June
26, 2001, among (i)CONTINENTAL AIRLINES, INC., a Delaware corporation (the
"Company"), (ii)WILMINGTON TRUST COMPANY ("WTC"), a Delaware banking
corporation, not in its individual capacity except as otherwise expressly
provided herein, but solely as trustee (in such capacity together with its
successors in such capacity, the "Pass Through Trustee") under each of the four
separate Pass Through Trust Agreements (as defined below), (iii) WILMINGTON
TRUST COMPANY, a Delaware banking corporation, as subordination agent and
trustee (in such capacity together with its successors in such capacity, the
"Subordination Agent") under the Intercreditor Agreement (as defined below),
(iv) WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION, (formerly known as First
Security Bank, National Association) a national banking association, as Escrow
Agent (in such capacity together with its successors in such capacity, the
"Escrow Agent"), under each of the Escrow and Paying Agent Agreements (as
defined below) and (v) WILMINGTON TRUST COMPANY, a Delaware banking corporation,
as Paying Agent (in such capacity together with its successors in such capacity,
the "Paying Agent") under each of the Escrow and Paying Agent Agreements, which
amends and restates the Note Purchase Agreement, dated as of April 19, 2001,
among certain of the foregoing parties (the "ORIGINAL NOTE PURCHASE AGREEMENT").

                              W I T N E S S E T H:

            WHEREAS, capitalized terms used but not defined herein shall have
the meanings ascribed to such terms in Annex A hereto;

            WHEREAS, the Company has obtained commitments from the Manufacturer
pursuant to the Aircraft Purchase Agreements for the delivery of the 31 aircraft
listed in Schedule I hereto (together with any aircraft substituted therefor in
accordance with an Aircraft Purchase Agreement prior to the delivery thereof,
the "ELIGIBLE AIRCRAFT"), and the Company wishes to finance pursuant to this
Agreement a portion of the purchase price of nine of the twelve Boeing 737-824
aircraft, five of the seven Boeing 737-924 Aircraft, six of the ten Boeing
767-424ER aircraft, and one of the two Boeing 777-224ER aircraft included in the
Eligible Aircraft (such aircraft to be financed hereunder, the "NEW AIRCRAFT");

            WHEREAS, the Company, the Pass Through Trustee with respect to the
Class A-1 Certificates, Class A-2 Certificates, and Class B Certificates

<PAGE>

(collectively, the "PRIOR CERTIFICATES"), the Subordination Agent, the Escrow
Agent under the Escrow and Paying Agreements relating to the Prior Certificates
and the Paying Agent under such Escrow and Paying Agent Agreements entered into
the Original Note Purchase Agreement in connection with the original issuance of
the Prior Certificates;

            WHEREAS, the Original Note Purchase Agreement contemplated the
subsequent issuance of the Class C Certificates, which the Company has now
arranged, and in order to provide for the financing of the New Aircraft, as
contemplated by the Original Note Purchase Agreement, the parties hereto wish to
amend and restate the Original Note Purchase Agreement as provided herein;

            WHEREAS, pursuant to the Basic Pass Through Trust Agreement and each
of the Trust Supplements set forth in Schedule II hereto, separate grantor
trusts (collectively, the "PASS THROUGH TRUSTS" and, individually, a "PASS
THROUGH TRUST") have been created to facilitate certain of the transactions
contemplated hereby, including, without limitation, the issuance and sale of
pass through certificates pursuant thereto (collectively, the "CERTIFICATES") to
provide for a portion of the financing of the New Aircraft;

            WHEREAS, the Company entered into the Underwriting Agreement dated
as of April 4, 2001 (the "PRIOR UNDERWRITING AGREEMENT") with the several
underwriters named therein (the "PRIOR UNDERWRITERS") under which the Company
caused the Pass Through Trustees with respect to the Prior Certificates to issue
and sell the Prior Certificates to the Prior Underwriters, and the Company has
entered into the Underwriting Agreement, dated as of June 12, 2001 (the "CLASS C
UNDERWRITING AGREEMENT" and, together with the Prior Underwriting Agreement, the
"UNDERWRITING AGREEMENTS") with the underwriter named therein (the "CLASS C
UNDERWRITER" and, together with the Prior Underwriters, the "UNDERWRITERS")
which provides that the Company will cause the Pass Through Trustee with respect
to the Class C Certificates to issue and sell the Class C Certificates to the
Class C Underwriter;

            WHEREAS, (i) the Escrow Agents and the Depositary have entered into
the Deposit Agreements set forth in Schedule III hereto (the "DEPOSIT
AGREEMENTS") whereby the applicable Escrow Agent agreed to direct the applicable
Underwriters to make certain deposits referred to therein on the applicable
Issuance Date (the "INITIAL DEPOSITS") and to permit the applicable Pass Through

<PAGE>

Trustee to make additional deposits from time to time thereafter (the Initial
Deposits together with such additional deposits are collectively referred to as
the "DEPOSITS") and (ii) the applicable Pass Through Trustees, Underwriters,
Paying Agents and Escrow Agents have entered into the Escrow and Paying Agent
Agreements set forth in Schedule IV hereto (the "ESCROW AND PAYING AGENT
AGREEMENTS") whereby, among other things, (a) the applicable Underwriters agreed
to deliver an amount equal to the amount of the applicable Initial Deposits to
the Depositary on behalf of the applicable Escrow Agent and (b) the applicable
Escrow Agent, upon the Depositary receiving such amount, agreed to deliver
escrow receipts to be affixed to each Certificate;

            WHEREAS, as required by the Original Note Purchase Agreement and the
Class C Underwriting Agreement, the Company has obtained Rating Agency
Confirmation that the terms of the Class C Certificates will not result in a
withdrawal, suspension or downgrading of the ratings of the Class A-1
Certificates, Class A-2 Certificates or Class B Certificates;

            WHEREAS, prior to the financing of each New Aircraft, the Company
will determine whether to enter into a leveraged lease transaction as lessee
with respect to such New Aircraft (a "LEASED AIRCRAFT") or to purchase as owner
such New Aircraft (an "OWNED AIRCRAFT") and which series of Equipment Notes will
be issued with respect to such New Aircraft, and the Company will give to the
Pass Through Trustee a Delivery Notice (as defined below) specifying its
election;

            WHEREAS, upon receipt of a Delivery Notice with respect to a New
Aircraft, subject to the terms and conditions of this Agreement, the applicable
Pass Through Trustees will enter into the applicable Financing Agreements
relating to such New Aircraft;

            WHEREAS, upon the financing of each New Aircraft, each applicable
Pass Through Trustee will fund its purchase of Equipment Notes with the proceeds
of one or more Deposits withdrawn by the applicable Escrow Agent under the
related Deposit Agreement bearing the same interest rate as the Certificates
issued by such Pass Through Trust; and

            WHEREAS, (i) Landesbank Hessen-Thuringen Girozentrale (the
"LIQUIDITY PROVIDER"), has entered into four separate revolving credit
agreements, one each for the benefit of the Certificateholders of each Pass
Through Trust, in each case with the Subordination Agent, as agent for the Pass
Through Trustee on behalf of each such Pass Through Trust (each such revolving

<PAGE>

credit agreement with the Liquidity Provider, a "LIQUIDITY FACILITY") and (ii)
the Pass Through Trustee, the Liquidity Provider and the Subordination Agent
have entered into the Intercreditor Agreement, dated as of April 19, 2001, and
an amendment thereto dated the date hereof (the "INTERCREDITOR AGREEMENT");

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

            SECTION 1. FINANCING OF NEW AIRCRAFT. (a) The Company confirms that
it has entered into the Aircraft Purchase Agreements with the Manufacturer
pursuant to which the Company has agreed to purchase, and the Manufacturer has
agreed to deliver, the Eligible Aircraft in the months specified in Schedule I
hereto, all on and subject to terms and conditions specified in the applicable
Aircraft Purchase Agreement. The Company agrees to finance the New Aircraft in
the manner provided herein, all on and subject to the terms and conditions
hereof and of the relevant Financing Agreements.

            (b) In furtherance of the foregoing, the Company agrees to give the
parties hereto, the Depositary and each of the Rating Agencies not less than two
Business Days' prior notice substantially in the form of Exhibit B hereto (a
"DELIVERY NOTICE") of the scheduled delivery date (the "SCHEDULED DELIVERY
DATE") (or, in the case of a substitute Delivery Notice under Section 1(e) or
(f) hereof, one Business Day's prior notice) in respect of each New Aircraft
under the applicable Aircraft Purchase Agreement, which notice shall:

            (i) specify whether the Company has elected to treat such New
Aircraft as a Leased Aircraft or an Owned Aircraft;

            (ii) specify the Scheduled Delivery Date of such New Aircraft (which
shall be a Business Day before the Cut-off Date and, except as provided in
Section 1(f) hereof, the date (the "FUNDING DATE") on which the financing
therefor in the manner provided herein shall be consummated);

            (iii) instruct each Pass Through Trustee being requested to purchase
Equipment Notes pursuant to such Delivery Notice (the "APPLICABLE PASS THROUGH
TRUSTEES") to instruct the relevant Escrow Agent to provide a Notice of Purchase
Withdrawal to the Depositary with respect to the Equipment Notes to be issued in

<PAGE>

connection with the financing of such New Aircraft (except in the case of any
such financing on the Issuance Date);

            (iv) instruct each Applicable Pass Through Trustee to enter into the
Participation Agreement included in the Financing Agreements with respect to
such Aircraft in such form and at such a time on or before the Funding Date
specified in such Delivery Notice and to perform its obligations thereunder;

            (v) specify the aggregate principal amount of each series of
Equipment Notes, if any, to be issued, and purchased by the Applicable Pass
Through Trustees, in connection with the financing of such New Aircraft
scheduled to be delivered on such Funding Date (which shall in all respects
comply with the Mandatory Economic Terms); and

            (vi) if such New Aircraft is to be a Leased Aircraft, certify that
the related Owner Participant (A) is not an Affiliate of the Company and (B)
based on the representations of such Owner Participant, is either (1) a
Qualified Owner Participant or (2) any other person the obligations of which
under the Owner Participant Agreements (as defined in the applicable
Participation Agreement) are guaranteed by a Qualified Owner Participant.

            (c) Upon receipt of a Delivery Notice, the Applicable Pass Through
Trustees shall, and shall cause the Subordination Agent to, enter into and
perform their obligations under the Participation Agreement specified in such
Delivery Notice, PROVIDED that such Participation Agreement and the other Lease
Financing Agreements or Owner Financing Agreements to be entered into pursuant
to such Participation Agreement shall be in the forms thereof annexed hereto in
all material respects with such changes therein as shall have been requested by
the related Owner Participant (in the case of Lease Financing Agreements) or the
initial purchasers of the Series D Equipment Notes or Class D pass through
certificates, in any such case agreed to by the Company and, if modified in any
material respect, as to which Rating Agency Confirmation shall have been
obtained from each Rating Agency by the Company (to be delivered by the Company
to the Applicable Pass Through Trustees on or before the relevant Funding Date,
it being understood that if Rating Agency Confirmation shall have been received
with respect to any Financing Agreements and such Financing Agreements are
utilized for subsequent New Aircraft (or Substitute Aircraft) without material
modifications, no additional Rating Agency Confirmation shall be required);
PROVIDED, HOWEVER, that the relevant Financing Agreements as executed and
delivered shall not vary the Mandatory Economic Terms and shall contain the

<PAGE>

Mandatory Document Terms. Notwithstanding the foregoing, (i) if The Boeing
Company or General Electric Company, or any of their respective Affiliates, is
the Owner Participant with respect to any Leased Aircraft, the Leased Aircraft
Participation Agreement to be entered into pursuant to the Delivery Notice with
respect to such Leased Aircraft may be modified, if agreed to by the Company,
from the form annexed hereto (A) to add a Section 16 thereto substantially in
the form of Exhibit D hereto and (B) in the case of The Boeing Company or any of
its Affiliates, Section 6.2 may be changed as set forth in Exhibit E hereto, and
such Leased Aircraft Participation Agreement, as so modified, shall be deemed
(1) to be substantially in the form thereof annexed hereto and (2) by virtue of
such modification not to be inconsistent with the Mandatory Document Terms, (ii)
if any Financing Agreement annexed hereto shall not have been reviewed by either
Rating Agency prior to the Issuance Date, then, prior to the use thereof in
connection with the financing of any Aircraft hereunder, the Company shall
obtain from each Rating Agency a confirmation that the use of such Financing
Agreement would not result in (A) a reduction of the rating for any Class of
Certificates below the then current rating for such Class of Certificates or (B)
a withdrawal or suspension of the rating of any Class of Certificates, and (iii)
an Indenture may be modified to the extent required pursuant to Section 4(a)(vi)
of this Agreement. The Company shall pay the reasonable costs and expenses of
the Rating Agencies in connection with obtaining any such Rating Agency
Confirmation. With respect to each New Aircraft, the Company shall cause WTC (or
such other person that meets the eligibility requirements to act as loan trustee
under the Leased Aircraft Indenture, Owned Aircraft Indenture or Special
Indenture) to execute as Loan Trustee the Financing Agreements relating to such
Aircraft to which such Loan Trustee is intended to be a party, and shall
concurrently therewith execute such Financing Agreements to which the Company is
intended to be a party and perform its respective obligations thereunder. Upon
the request of either Rating Agency, the Company shall deliver or cause to be
delivered to each Rating Agency a true and complete copy of each Financing
Agreement relating to the financing of each New Aircraft together with a true
and complete set of the closing documentation (including legal opinions)
delivered to the related Loan Trustee, Subordination Agent and Pass Through
Trustee under the related Participation Agreement.

            (d) [Intentionally omitted.]

<PAGE>

            (e) If after giving any Delivery Notice, there shall be a delay in
the delivery of the Eligible Aircraft referred to therein, or if on the
Scheduled Delivery Date of the Eligible Aircraft the financing thereof in the
manner contemplated hereby shall not be consummated for whatever reason, the
Company shall give the parties hereto prompt notice thereof. Concurrently with
the giving of such notice of postponement or subsequently, the Company shall
give the parties hereto a substitute Delivery Notice specifying the date to
which delivery and related financing of such Eligible Aircraft or of another
Eligible Aircraft of the same type in lieu thereof shall have been re-scheduled
(which shall be a Business Day before the Cut-off Date on which the Escrow
Agents shall be entitled to withdraw one or more Deposits under each of the
applicable Deposit Agreements to enable each Applicable Pass Through Trustee to
fund its purchase of the related Equipment Notes). Upon receipt of any such
notice of postponement, each Applicable Pass Through Trustee shall comply with
its obligations under Section 5.01 of each of the Trust Supplements and
thereafter the financing of such Eligible Aircraft, as specified in such
substitute Delivery Notice, shall take place on the re-scheduled Delivery Date
therefor (all on and subject to the terms and conditions of the relevant
Financing Agreements or other financing agreements in the case of a Special
Structure) unless further postponed as provided herein.

            (f) Anything in this Section 1 to the contrary notwithstanding, the
Company shall have the right at any time on or before the Scheduled Delivery
Date of any New Aircraft, and subsequent to its giving a Delivery Notice
therefor, to postpone the Scheduled Delivery Date of such New Aircraft so as to
enable the Company to change its election to treat such New Aircraft as a Leased
Aircraft or an Owned Aircraft by written notice of such postponement to the
other parties hereto. The Company shall subsequently give the parties hereto a
substitute Delivery Notice complying with the provisions of Section 1(b) hereof
and specifying the new Funding Date for such postponed New Aircraft (which shall
be a Business Day occurring before the Cut-off Date and on which the Escrow
Agents shall be entitled to withdraw Deposits under each of the applicable
Deposit Agreements sufficient to enable each Applicable Pass Through Trustee to
fund its purchase of the related Equipment Notes). In addition, the Company
shall have the further right, anything in this Section 1 to the contrary
notwithstanding, to accept delivery of a New Aircraft under the applicable
Aircraft Purchase Agreement on the Delivery Date thereof by utilization of
bridge financing of such New Aircraft and promptly thereafter give the parties

<PAGE>

hereto a Delivery Notice specifying a Funding Date not later than 90 days after
the Delivery Date of such New Aircraft and no later than the Cut-off Date and
otherwise complying with the provisions of Section 1(b) hereof. All other terms
and conditions of this Note Purchase Agreement shall apply to the financing of
any such New Aircraft on the re-scheduled Funding Date therefor except (i) the
re-scheduled Funding Date shall be deemed the Delivery Date of such New Aircraft
for all purposes of this Section 1 and (ii) the related Financing Agreements
shall be amended to reflect the original delivery of such New Aircraft to the
Company.

            (g) If the Scheduled Delivery Date for any Eligible Aircraft is
delayed (a) more than 30 days beyond the last day of the month set forth
opposite such Eligible Aircraft under the heading "Scheduled Delivery Months" in
Schedule I hereto or (b) beyond September 30, 2002, the Company may identify for
delivery a substitute aircraft therefor meeting the following conditions (a
"SUBSTITUTE AIRCRAFT"): (i) a Substitute Aircraft must be a Boeing 737-800,
737-900, 767-400ER or 777-200ER aircraft manufactured after the date of this
Agreement, (ii) one or more Substitute Aircraft of the same or different types
may be substituted for one or more Eligible Aircraft of the same or different
types so long as after giving effect thereto such substitution does not vary the
Mandatory Economic Terms and (iii) the Company shall be obligated to obtain
Rating Agency Confirmation in respect of the replacement of any Eligible
Aircraft by Substitute Aircraft. Upon the satisfaction of the conditions set
forth above with respect to a Substitute Aircraft, the Eligible Aircraft to be
replaced shall cease to be subject to this Agreement and all rights and
obligations of the parties hereto concerning such Eligible Aircraft shall cease,
and such Substitute Aircraft shall become and thereafter be subject to the terms
and conditions of this Agreement to the same extent as such Eligible Aircraft.

            (h) The Company shall have no liability for the failure of the Pass
Through Trustees to purchase Equipment Notes with respect to any New Aircraft or
Substitute Aircraft.

            (i) The parties agree that if, in connection with the delivery of a
New Aircraft or Substitute Aircraft, any Owner Participant who is to be a party
to any Lease Financing Agreement shall not be a "Citizen of the United States"
within the meaning of Section 40102(a)(15) of the Act, then the applicable Lease
Financing Agreements shall be modified, consistent with the Mandatory Document

<PAGE>

Terms, to require such Owner Participant to enter into a voting trust, voting
powers or similar arrangement satisfactory to the Company that (A) enables such
New Aircraft or Substitute Aircraft to be registered in the United States and
(B) complies with the FAA regulations issued under the Act applicable thereto.

            (j) Anything herein to the contrary notwithstanding, the Company
shall not have the right, and shall not be entitled, at any time to request the
issuance of Equipment Notes of any series to any Pass Through Trustee in an
aggregate principal amount in excess of the amount of the Deposits then
available for withdrawal by the Escrow Agent under and in accordance with the
provisions of the related Deposit Agreement.

            (k) Notwithstanding the foregoing provisions of this Section 1, and
anything herein to the contrary notwithstanding, upon not less than 30 days'
prior written notice to the parties hereto, the Company shall have the right,
within 120 days after the date any Aircraft has been financed as an Owned
Aircraft, to sell such Owned Aircraft and transfer title to such Owned Aircraft
to an Owner Trustee for the benefit of an Owner Participant (which shall be a
Qualified Owner Participant) in a transaction in which such Owner Trustee
assumes all of the obligations of the Company under the relevant Equipment Notes
and the Owned Aircraft Indenture on a non-recourse basis (with the Company being
released from such obligations, except to the extent accrued prior thereto),
leases the Aircraft to the Company and assigns such lease to the Loan Trustee
pursuant to an amended and restated trust indenture (a "SALE/LEASEBACK
TRANSACTION"). In connection with such Sale/Leaseback Transaction, the Company
and the relevant Note Holders will execute and deliver appropriate documentation
permitting the Owner Trustee to assume the obligations of the Company under the
relevant Equipment Notes and the Owned Aircraft Indenture on a non-recourse
basis, releasing the Company from all obligations in respect of such Equipment
Notes and the Owned Aircraft Indenture (except to the extent accrued prior
thereto), and take all other actions as are reasonably necessary to permit such
assumption by the Owner Trustee. In connection with any such Sale/Leaseback
Transaction, the parties hereto agree that (a) the documents to be utilized
shall be (i) an amended and restated participation agreement amending and
restating the applicable Owned Aircraft Participation Agreement, to be
substantially in the form of the Leased Aircraft Participation Agreement, among
the Company, the relevant Note Holders, the Owner Participant, the Owner
Trustee, and the Loan Trustee, with (x) such changes to such form to reflect the

<PAGE>

assumption of such Equipment Notes by the Owner Trustee on a non-recourse basis
rather than the issuance thereof by the Owner Trustee and original purchase
thereof by the Note Holders and also to reflect the release of the Company from
all obligations under such Equipment Notes and the Owned Aircraft Indenture
(except to the extent accrued prior thereto) and (y) such other changes as may
be permitted under Section 1(c) hereof applicable to a Leased Aircraft
Participation Agreement in connection with a leveraged lease transaction, (ii) a
Lease, with such changes as may be permitted under Section 1(c) hereof
applicable to the Lease in connection with a leveraged lease transaction, (iii)
an amended and restated trust indenture amending and restating the relevant
Owned Aircraft Indenture, to be substantially in the form of a Leased Aircraft
Indenture, between the Owner Trustee and the Loan Trustee, with (x) such changes
to such form to reflect the assumption of all of the obligations of the Owner
Trustee under the relevant Equipment Notes and the relevant Owned Aircraft
Indenture on a non-recourse basis and the release of the obligations of the
Company under such Equipment Notes and the relevant Owned Aircraft Indenture and
(y) such other changes as may be permitted under Section 1(c) hereof applicable
to a Leased Aircraft Indenture in connection with a leveraged lease transaction,
(iv) a purchase agreement assignment, to be substantially in the form of the
Aircraft Purchase Agreement Assignment between the Company and the Owner Trustee
with (x) such changes to such form to reflect the prior purchase of the Aircraft
by the Company from the Manufacturer, and (y) such other changes as may be
permitted under Section 1(c) hereof applicable to an Aircraft Purchase Agreement
Assignment in connection with a leveraged lease transaction, and (v) a Trust
Agreement, between the Owner Trustee and the Owner Participant with such changes
as may be permitted in accordance with the provisions of Section 1(c) hereof
applicable to a Trust Agreement in connection with a leveraged lease transaction
and (b) the relevant Equipment Notes shall be delivered to the Loan Trustee for
cancellation in exchange for new equipment notes to be issued to the Note
Holders by the Owner Trustee upon the authentication thereof by the Loan
Trustee, such new equipment notes to be substantially in the form contained in
Section 2.01 of the Leased Aircraft Indenture. Such new equipment notes will
have the same payment terms except that in the event that the Company enters
into a Sale/Leaseback Transaction prior to the Delivery Period Termination Date,
the Company shall have the right to reoptimize the new equipment notes to be
issued to the Note Holders by the Owner Trustee in compliance with the Mandatory
Economic Terms and subject to obtaining Rating Agency Confirmation with respect
thereto.

<PAGE>

            Notwithstanding the foregoing, the Company shall not have the right
to enter into a Sale/Leaseback Transaction unless the Company (i) causes to be
delivered to the Loan Trustee an opinion of counsel (both counsel and opinion
satisfactory to the Loan Trustee) to the effect that the Pass Through Trusts
will not be subject to Federal income tax as a result of such Sale/Leaseback
Transaction, (ii) furnishes to the Loan Trustee either (A) an opinion of counsel
to the effect that the Certificateholders will not recognize gain or loss for
Federal income tax purposes as a result of such Sale/Leaseback Transaction and
will be subject to Federal income tax on the same amount, in the same manner and
at the same time as would have been the case if such Sale/Leaseback Transaction
had not occurred or (B) both an opinion of counsel (both counsel and opinion
satisfactory to the Loan Trustee) that the Certificateholders should not
recognize gain or loss for Federal income tax purposes in connection with such
Sale/Leaseback Transaction and should be subject to Federal income tax on the
same amount, in the same manner and at the same time as would have been the case
if such Sale/Leaseback Transaction had not occurred and an indemnification in
favor of the holders of the Certificates in form and substance reasonably
satisfactory to the Loan Trustee and (iii) obtains a Rating Agency Confirmation
with respect thereto. In addition, the Company agrees to otherwise comply with
the provisions of Sections 1(c) and 2 hereof in connection with any
Sale/Leaseback Transaction.

            SECTION 2. CONDITIONS PRECEDENT. The obligation of the Pass Through
Trustees to enter into, and to cause the Subordination Agent to enter into, any
Participation Agreement as directed pursuant to a Delivery Notice and to perform
its obligations thereunder is subject to satisfaction of the following
conditions:

            (a) no Triggering Event shall have occurred;

            (b) the Company shall have delivered a certificate to each such Pass
Through Trustee and the Liquidity Provider stating that (i) such Participation
Agreement and the other Financing Agreements to be entered into pursuant to such
Participation Agreement do not vary the Mandatory Economic Terms and contain the
Mandatory Document Terms, and (ii) any substantive modification of such
Financing Agreements from the forms of Financing Agreements attached to this
Agreement do not materially and adversely affect the Certificateholders, and
such certification shall be true and correct; and

<PAGE>

            (c) upon purchase hereunder of the Series A-1, Series A-2 or Series
B Equipment Notes relating to any New Aircraft, the Series C Equipment Notes
relating to such New Aircraft shall be concurrently purchased.

            Anything herein to the contrary notwithstanding, the obligation of
each Pass Through Trustee to purchase Equipment Notes shall terminate on the
Cut-off Date.

            SECTION 3. REPRESENTATIONS AND WARRANTIES. (a) The Company
represents and warrants that:

                  (i) the Company is duly incorporated, validly existing and in
            good standing under the laws of the State of Delaware and is a
            "citizen of the United States" as defined in Section 40102(a)(15) of
            the Act, and has the full corporate power, authority and legal right
            under the laws of the State of Delaware to execute and deliver this
            Agreement and each Financing Agreement to which it will be a party
            and to carry out the obligations of the Company under this Agreement
            and each Financing Agreement to which it will be a party;

                  (ii) the execution and delivery by the Company of this
            Agreement and the performance by the Company of its obligations
            under this Agreement have been duly authorized by the Company and
            will not violate its Certificate of Incorporation or by-laws or the
            provisions of any indenture, mortgage, contract or other agreement
            to which it is a party or by which it is bound; and

                  (iii) this Agreement constitutes the legal, valid and binding
            obligation of the Company, enforceable against it in accordance with
            its terms, except as the same may be limited by applicable
            bankruptcy, insolvency, reorganization, moratorium or similar laws
            affecting the rights of creditors generally and by general
            principles of equity, whether considered in a proceeding at law or
            in equity.

            (b) WTC represents and warrants that:

                  (i) WTC is duly incorporated, validly existing and in good
            standing under the laws of the State of Delaware and is a "citizen
            of the United States" as defined in Section 40102(a)(15) of the Act,

<PAGE>

            and has the full corporate power, authority and legal right under
            the laws of the State of Delaware and the United States pertaining
            to its banking, trust and fiduciary powers to execute and deliver
            this Agreement and each Financing Agreement to which it will be a
            party and to carry out the obligations of WTC, in its capacity as
            Subordination Agent, Pass Through Trustee or Paying Agent, as the
            case may be, under this Agreement and each Financing Agreement to
            which it will be a party;

                  (ii) the execution and delivery by WTC, in its capacity as
            Subordination Agent, Pass Through Trustee or Paying Agent, as the
            case may be, of this Agreement and the performance by WTC, in its
            capacity as Subordination Agent, Pass Through Trustee or Paying
            Agent, as the case may be, of its obligations under this Agreement
            have been duly authorized by WTC, in its capacity as Subordination
            Agent, Pass Through Trustee or Paying Agent, as the case may be, and
            will not violate its articles of association or by-laws or the
            provisions of any indenture, mortgage, contract or other agreement
            to which it is a party or by which it is bound; and

                  (iii) this Agreement constitutes the legal, valid and binding
            obligations of WTC, in its capacity as Subordination Agent, Pass
            Through Trustee or Paying Agent, as the case may be, enforceable
            against it in accordance with its terms, except as the same may be
            limited by applicable bankruptcy, insolvency, reorganization,
            moratorium or similar laws affecting the rights of creditors
            generally and by general principles of equity, whether considered in
            a proceeding at law or in equity.

            (c) The Pass Through Trustee hereby confirms to each of the other
parties hereto that its representations and warranties set forth in Section 7.15
of the Basic Pass Through Trust Agreement and Section 5.04 of each Trust
Supplement are true and correct as of the date hereof.

            (d) The Subordination Agent represents and warrants that:

                  (i) the Subordination Agent is duly incorporated, validly
            existing and in good standing under the laws of the State of
            Delaware, and has the full corporate power, authority and legal

<PAGE>

            right under the laws of the State of Delaware and the United States
            pertaining to its banking, trust and fiduciary powers to execute and
            deliver this Agreement and each Financing Agreement to which it is
            or will be a party and to perform its obligations under this
            Agreement and each Financing Agreement to which it is or will be a
            party;

                  (ii) this Agreement has been duly authorized, executed and
            delivered by the Subordination Agent; this Agreement constitutes the
            legal, valid and binding obligations of the Subordination Agent
            enforceable against it in accordance with its terms, except as the
            same may be limited by applicable bankruptcy, insolvency,
            reorganization, moratorium or similar laws affecting the rights of
            creditors generally and by general principles of equity, whether
            considered in a proceeding at law or in equity;

                  (iii) none of the execution, delivery and performance by the
            Subordination Agent of this Agreement contravenes any law, rule or
            regulation of the State of Delaware or any United States
            governmental authority or agency regulating the Subordination
            Agent's banking, trust or fiduciary powers or any judgment or order
            applicable to or binding on the Subordination Agent and do not
            contravene the Subordination Agent's articles of association or
            by-laws or result in any breach of, or constitute a default under,
            any agreement or instrument to which the Subordination Agent is a
            party or by which it or any of its properties may be bound;

                  (iv) neither the execution and delivery by the Subordination
            Agent of this Agreement nor the consummation by the Subordination
            Agent of any of the transactions contemplated hereby requires the
            consent or approval of, the giving of notice to, the registration
            with, or the taking of any other action with respect to, any
            Delaware governmental authority or agency or any federal
            governmental authority or agency regulating the Subordination
            Agent's banking, trust or fiduciary powers;

                  (v) there are no Taxes payable by the Subordination Agent
            imposed by the State of Delaware or any political subdivision or
            taxing authority thereof in connection with the execution, delivery

<PAGE>

            and performance by the Subordination Agent of this Agreement (other
            than franchise or other taxes based on or measured by any fees or
            compensation received by the Subordination Agent for services
            rendered in connection with the transactions contemplated by the
            Intercreditor Agreement or any of the Liquidity Facilities), and
            there are no Taxes payable by the Subordination Agent imposed by the
            State of Delaware or any political subdivision thereof in connection
            with the acquisition, possession or ownership by the Subordination
            Agent of any of the Equipment Notes (other than franchise or other
            taxes based on or measured by any fees or compensation received by
            the Subordination Agent for services rendered in connection with the
            transactions contemplated by the Intercreditor Agreement or any of
            the Liquidity Facilities); and

                  (vi) there are no pending or threatened actions or proceedings
            against the Subordination Agent before any court or administrative
            agency which individually or in the aggregate, if determined
            adversely to it, would materially adversely affect the ability of
            the Subordination Agent to perform its obligations under this
            Agreement.

            (e) The Escrow Agent represents and warrants that:

                  (i) the Escrow Agent is a national banking association duly
            incorporated, validly existing and in good standing under the laws
            of the United States and has the full corporate power, authority and
            legal right under the laws of the United States pertaining to its
            banking, trust and fiduciary powers to execute and deliver this
            Agreement, each Deposit Agreement and each Escrow and Paying Agent
            Agreement (collectively, the "ESCROW AGENT AGREEMENTS") and to carry
            out the obligations of the Escrow Agent under each of the Escrow
            Agent Agreements;

                  (ii) the execution and delivery by the Escrow Agent of each of
            the Escrow Agent Agreements and the performance by the Escrow Agent
            of its obligations hereunder and thereunder have been duly
            authorized by the Escrow Agent and will not violate its articles of
            association or by-laws or the provisions of any indenture, mortgage,
            contract or other agreement to which it is a party or by which it is
            bound; and

<PAGE>

                  (iii) each of the Escrow Agent Agreements constitutes the
            legal, valid and binding obligations of the Escrow Agent enforceable
            against it in accordance with its terms, except as the same may be
            limited by applicable bankruptcy, insolvency, reorganization,
            moratorium or similar laws affecting the rights of creditors
            generally and by general principles of equity, whether considered in
            a proceeding at law or in equity.

            (f) The Paying Agent represents and warrants that:

                  (i) the Paying Agent is duly incorporated, validly existing
            and in good standing under the laws of the State of Delaware and has
            the full corporate power, authority and legal right under the laws
            of the United States pertaining to its banking, trust and fiduciary
            powers to execute and deliver this Agreement and the Escrow and
            Paying Agent Agreement (collectively, the "PAYING AGENT AGREEMENTS")
            and to carry out the obligations of the Paying Agent under each of
            the Paying Agent Agreements;

                  (ii) the execution and delivery by the Paying Agent of each of
            the Paying Agent Agreements and the performance by the Paying Agent
            of its obligations hereunder and thereunder have been duly
            authorized by the Paying Agent and will not violate its articles of
            association or by-laws or the provisions of any indenture, mortgage,
            contract or other agreement to which it is a party or by which it is
            bound; and

                  (iii) each of the Paying Agent Agreements constitutes the
            legal, valid and binding obligations of the Paying Agent enforceable
            against it in accordance with its terms, except as the same may be
            limited by applicable bankruptcy, insolvency, reorganization,
            moratorium or similar laws affecting the rights of creditors
            generally and by general principles of equity, whether considered in
            a proceeding at law or in equity.

            SECTION 4. COVENANTS. (a) The Company covenants with each of the
other parties hereto that:

            (i) [Intentionally omitted];

<PAGE>

            (ii) subject to Section 4(a)(iv) of this Agreement, the Company
shall at all times maintain its corporate existence and shall not wind up,
liquidate or dissolve or take any action, or fail to take any action, that would
have the effect of any of the foregoing;

            (iii) the Company shall at all times remain a U.S. Air Carrier (as
defined in the Financing Agreements) and shall at all times be otherwise
certificated and registered to the extent necessary to entitle (A) in the case
of Leased Aircraft, the Owner Trustee (and the Loan Trustee as assignee of the
Owner Trustee's rights under each Lease) to the rights afforded to lessors of
aircraft equipment under Section 1110 and (B) in the case of Owned Aircraft, the
Loan Trustee to the rights afforded to secured parties of aircraft equipment
under Section 1110;

            (iv) Section 13.2.1 of each Lease is hereby incorporated by
reference herein;

            (v) the Company agrees to provide written notice to each of the
parties hereto of the occurrence of the Cut-off Date no later than one Business
Day after the date thereof; such notice to refer specifically to the Pass
Through Trustee's obligation to assign, transfer and deliver all of its right,
title and interest to the Trust Property (as defined in each Pass Through Trust
Agreement) to the trustee of the Related Trust (as defined in each Pass Through
Trust Agreement) in accordance with Section 7.01 of each of the Trust
Supplements; and

            (vi) the Company shall not issue Series D Equipment Notes pursuant
to any Indenture, unless it shall have obtained written confirmation from each
Rating Agency that the issuance of such Series D Equipment Notes will not result
in (i) a reduction of the rating for any Class of Certificates below the then
current rating for such Class of Certificates or (ii) a withdrawal or suspension
of the rating of any Class of Certificates. If Series D Equipment Notes are
initially issued to other than the pass through trustee for the Class D
Certificates, the Company will cause (i) such Series D Equipment Notes to be
subject to the provisions of the Intercreditor Agreement that allow the
"Controlling Party" (as defined in the Intercreditor Agreement), during the
continuance of an "Indenture Default" (as defined in the Intercreditor
Agreement), to direct the Loan Trustee in taking action under the applicable
Indenture and (ii) the Indenture under which such Series D Equipment Notes are
issued to include the provisions set forth in Exhibit F to this Agreement.

<PAGE>

            (b) WTC, in its individual capacity, covenants with each of the
other parties to this Agreement that it will, immediately upon obtaining
knowledge of any facts that would cast doubt upon its continuing status as a
"citizen of the United States" as defined in Section 40102(a)(15) of the Act and
promptly upon public disclosure of negotiations in respect of any transaction
which would or might adversely affect such status, notify in writing all parties
hereto of all relevant matters in connection therewith. Upon WTC giving any such
notice, WTC shall, subject to Section 8.02 of any Indenture then entered into,
resign as Loan Trustee in respect of such Indenture.

            SECTION 5. NOTICES. Unless otherwise specifically provided herein,
all notices required or permitted by the terms of this Agreement shall be in
English and in writing, and any such notice shall become effective upon being
delivered personally or, if promptly confirmed by mail, when dispatched by
facsimile or other written telecommunication, addressed to such party hereto at
its address or facsimile number set forth below the signature of such party at
the foot of this Agreement.

            SECTION 6. EXPENSES. (a) The Company agrees to pay to the
Subordination Agent when due an amount or amounts equal to the fees payable to
the Liquidity Provider under Section 2.03 of each Liquidity Facility and the
related Fee Letter (as defined in the Intercreditor Agreement) multiplied by a
fraction the numerator of which shall be the then outstanding aggregate amount
of the Deposits under the Deposit Agreements and the denominator of which shall
be the sum of (x) the then outstanding aggregate principal amount of the Series
A-1 Equipment Notes, Series A-2 Equipment Notes, Series B Equipment Notes and
Series C Equipment Notes issued under all of the Indentures and (y) the then
outstanding aggregate amount of the Deposits under the Deposit Agreements.

            (b) So long as no Equipment Notes have been issued in respect of any
Aircraft, the Company agrees to pay (i) to the Subordination Agent when due (A)
the amount equal to interest on any Downgrade Advance (other than any Applied
Downgrade Advance) payable under Section 3.07 of each Liquidity Facility minus
Investment Earnings while such Downgrade Advance shall be outstanding, (B) the
amount equal to interest on any Non-Extension Advance (other than any Applied
Non-Extension Advance) payable under Section 3.07 of each Liquidity Facility
minus Investment Earnings while such Non-Extension Advance shall be outstanding
and (C) any other amounts owed to the Liquidity Provider by the Subordination

<PAGE>

Agent as borrower under each Liquidity Facility (other than amounts due as
repayment of advances thereunder or as interest on such advances, except to the
extent payable pursuant to clause (A) or (B)), (ii) all compensation and
reimbursement of expenses, disbursements and advances payable by the Company
under the Pass Through Trust Agreements, (iii) all compensation and
reimbursement of expenses and disbursements payable to the Subordination Agent
under the Intercreditor Agreement except with respect to any income or franchise
taxes incurred by the Subordination Agent in connection with the transactions
contemplated by the Intercreditor Agreement and (iv) in the event the Company
requests any amendment to any Operative Agreement, all reasonable fees and
expenses (including, without limitation, fees and disbursements of counsel) of
the Escrow Agent and/or the Paying Agent in connection therewith. For purposes
of this Section 6(b), the terms "Applied Downgrade Advance", "Applied
Non-Extension Advance", "Downgrade Advance", "Investment Earnings" and
"Non-Extension Advance" shall have the meanings specified in each Liquidity
Facility.

            SECTION 7. FURTHER ASSURANCES. Each party hereto shall duly execute,
acknowledge and deliver, or shall cause to be executed, acknowledged and
delivered, all such further agreements, instruments, certificates or documents,
and shall do and cause to be done such further acts and things, in any case, as
any other party hereto shall reasonably request in connection with its
administration of, or to carry out more effectually the purposes of, or to
better assure and confirm unto it the rights and benefits to be provided under,
this Agreement.

            SECTION 8. MISCELLANEOUS. (a) Provided that the transactions
contemplated hereby have been consummated, and except as otherwise provided for
herein, the representations, warranties and agreements herein of the Company,
the Subordination Agent, the Escrow Agent, the Paying Agent and the Pass Through
Trustee, and the Company's, the Subordination Agent's, the Escrow Agent's, the
Paying Agent's and the Pass Through Trustee's obligations under any and all
thereof, shall survive the expiration or other termination of this Agreement and
the other agreements referred to herein.

            (b) This Agreement may be executed in any number of counterparts
(and each of the parties hereto shall not be required to execute the same
counterpart). Each counterpart of this Agreement, including a signature page
executed by each of the parties hereto, shall be an original counterpart of this

<PAGE>

Agreement, but all of such counterparts together shall constitute one
instrument. Neither this Agreement nor any of the terms hereof may be
terminated, amended, supplemented, waived or modified orally, but only by an
instrument in writing signed by the party against which the enforcement of the
termination, amendment, supplement, waiver or modification is sought. The index
preceding this Agreement and the headings of the various Sections of this
Agreement are for convenience of reference only and shall not modify, define,
expand or limit any of the terms or provisions hereof. The terms of this
Agreement shall be binding upon, and shall inure to the benefit of, the Company
and its successors and permitted assigns, the Pass Through Trustee and its
successors as Pass Through Trustee (and any additional trustee appointed) under
any of the Pass Through Trust Agreements, the Escrow Agent and its successors as
Escrow Agent under the Escrow and Paying Agent Agreements, the Paying Agent and
its successors as Paying Agent under the Escrow and Paying Agent Agreement and
the Subordination Agent and its successors as Subordination Agent under the
Intercreditor Agreement.

            (c) This Agreement is not intended to, and shall not, provide any
person not a party hereto (other than the Underwriters and each of the
beneficiaries of Section 6 hereof) with any rights of any nature whatsoever
against any of the parties hereto, and no person not a party hereto (other than
the Underwriters and each of the beneficiaries of Section 6 hereof) shall have
any right, power or privilege in respect of, or have any benefit or interest
arising out of, this Agreement.

            SECTION 9. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. THIS AGREEMENT
IS BEING DELIVERED IN THE STATE OF NEW YORK.

<PAGE>

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

                                            CONTINENTAL AIRLINES, INC.

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

                                            Address:  1600 Smith Street
                                                      Dept. HQS-FN
                                                      Houston, TX  77002
                                                      Attention:  Treasurer
                                                      Facsimile:  (713) 324-2447

                                            WILMINGTON TRUST COMPANY,
                                            not in its individual capacity,
                                            except as otherwise provided herein,
                                            but solely as Pass Through Trustee

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

                                            Address: Rodney Square North
                                                     1100 North Market Street
                                                     Wilmington, Delaware 19890
                                                     Attention: Corporate Trust
                                                     Administration
                                                     Facsimile:  (302) 651-8882

<PAGE>

                                            WILMINGTON TRUST COMPANY,
                                            not in its individual capacity,
                                            except as otherwise provided herein,
                                            but solely as Subordination Agent

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

                                            Address: Rodney Square North
                                                     1100 North Market Street
                                                     Wilmington, Delaware 19890
                                                     Attention: Corporate Trust
                                                     Administration
                                                     Facsimile:  (302) 651-8882

                                            WELLS FARGO BANK NORTHWEST,
                                            NATIONAL ASSOCIATION,
                                            as Escrow Agent

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

                                            Address: 79 South Main Street
                                                     Salt Lake City, Utah 84111
                                                     Attention: Corporate Trust
                                                     Department, 3rd Floor
                                                     Facsimile:  (801) 246-5053

<PAGE>

                                            WILMINGTON TRUST COMPANY,
                                            as Paying Agent

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

                                            Address: Rodney Square North
                                                     1100 North Market Street
                                                     Wilmington, Delaware 19890
                                                     Attention: Corporate Trust
                                                     Administration
                                                     Facsimile:  (302) 651-8882

<PAGE>

                                  SCHEDULE I to
                             NOTE PURCHASE AGREEMENT

                 ELIGIBLE AIRCRAFT AND SCHEDULED DELIVERY MONTHS

<TABLE>
<CAPTION>

                        Expected
   New Aircraft       Registration        Manufacturer's       Scheduled
      TYPE               NUMBER           SERIAL NUMBER      DELIVERY MONTH
-----------------   -----------------   -----------------   ----------------
<S>                      <C>                 <C>                <C>
Boeing 737-824           N76269              31588              Oct 2001
Boeing 737-824           N73270              31632              Oct 2001
Boeing 737-824           N35271              31589              Nov 2001
Boeing 737-824           N36272              31590              Nov 2001
Boeing 737-824           N37273              31591              Dec 2001
Boeing 737-824           N37274              31592              Jan 2002
Boeing 737-824           N73275              31593              Feb 2002
Boeing 737-824           N73276              31594              Feb 2002
Boeing 737-824           N37277              31595              Mar 2002
Boeing 737-824           N73278              31596              June 2002
Boeing 737-824           N79279              31597              June 2002
Boeing 737-824           N36280              31598              June 2002
Boeing 737-924           N37408              30125              Oct 2001
Boeing 737-924           N37409              30126              Nov 2001
Boeing 737-924           N75410              30127              Dec 2001
Boeing 737-924           N71411              30128              Jan 2002
Boeing 737-924           N31412              30129              Mar 2002
Boeing 737-924           N37413              30130              May 2002
Boeing 737-924           N30414              30131              June 2002
Boeing 767-424ER         N66057              29452              Jan 2002
Boeing 767-424ER         N67058              29453              Jan 2002
Boeing 767-424ER         N69059              29454              Feb 2002
Boeing 767-424ER         N78060              29455              Feb 2002
Boeing 767-424ER         N68061              29456              Mar 2002
Boeing 767-424ER         N76062              29457              Mar 2002
Boeing 767-424ER         N69063              29458              April 2002
Boeing 767-424ER         N76064              29459              April 2002
Boeing 767-424ER         N76065              29460              May 2002
Boeing 767-424ER         N77066              29461              May 2002
Boeing 777-224ER         N78017              31679              Mar 2002
Boeing 777-224ER         N37018              31680              April 2002
</TABLE>

<PAGE>

                                 SCHEDULE II to
                             NOTE PURCHASE AGREEMENT

                                TRUST SUPPLEMENTS

Trust Supplement dated as of the Prior Issuance Date between the Company and the
Pass Through Trustee in respect of Continental Airlines Pass Through Trust,
Series 2001-1A-1-O.

Trust Supplement dated as of the Prior Issuance Date between the Company and the
Pass Through Trustee in respect of Continental Airlines Pass Through Trust,
Series 2001-1A-2-O.

Trust Supplement dated as of the Prior Issuance Date between the Company and the
Pass Through Trustee in respect of Continental Airlines Pass Through Trust,
Series 2001-1B-O.

Trust Supplement dated as of the Class C Issuance Date between the Company and
the Pass Through Trustee in respect of Continental Airlines Pass Through Trust,
Series 2001-1C-O.

<PAGE>

                                 SCHEDULE III to
                             NOTE PURCHASE AGREEMENT

                               DEPOSIT AGREEMENTS

Deposit Agreement (Class A-1) dated as of the Prior Issuance Date between the
Depositary and the Escrow Agent.

Deposit Agreement (Class A-2) dated as of the Prior Issuance Date between the
Depositary and the Escrow Agent.

Deposit Agreement (Class B) dated as of the Prior Issuance Date between the
Depositary and the Escrow Agent.

Deposit Agreement (Class C) dated as of the Class C Issuance Date between the
Depositary and the Escrow Agent.

<PAGE>

                                 SCHEDULE IV to
                             NOTE PURCHASE AGREEMENT

                       ESCROW AND PAYING AGENT AGREEMENTS

Escrow and Paying Agent Agreement (Class A-1) dated as of the Prior Issuance
Date among the Escrow Agent, the Prior Underwriters, the Pass Through Trustee
and the Paying Agent.

Escrow and Paying Agent Agreement (Class A-2) dated as of the Prior Issuance
Date among the Escrow Agent, the Prior Underwriters, the Pass Through Trustee
and the Paying Agent.

Escrow and Paying Agent Agreement (Class B) dated as of the Prior Issuance Date
among the Escrow Agent, the Prior Underwriters, the Pass Through Trustee and the
Paying Agent.

Escrow and Paying Agent Agreement (Class C) dated as of the Class C Issuance
Date among the Escrow Agent, the Class C Underwriter, the Pass Through Trustee
and the Paying Agent.

<PAGE>

                                  SCHEDULE V TO
                             NOTE PURCHASE AGREEMENT

                            MANDATORY DOCUMENT TERMS

The terms "Trust Indenture Form," "Lease Form" and "Participation Agreement
Form" shall have the respective meanings specified in Schedule VI to the Note
Purchase Agreement.

1.   May not modify in any material adverse respect the Granting Clause of the
     Trust Indenture Form so as to deprive the Note Holders of a first priority
     security interest in and mortgage lien on the Aircraft and the Lease or to
     eliminate any of the obligations secured thereby or otherwise modify in any
     material adverse respect as regards the interests of the Note Holders, the
     Subordination Agent, the Liquidity Providers or the Mortgagee the
     provisions of Article II or III or Section 4.02, 4.03, 4.04, 5.02, 5.06,
     9.01(b), 10.04, 10.11 or 10.12 of the Trust Indenture Form.

2.   May not modify in any material adverse respect as regards the interests of
     the Note Holders, the Subordination Agent, the Liquidity Providers or the
     Mortgagee the provisions of Section 3.2.1(e), 3.3(c), 4.7, the final
     sentence of 7.1.1, 10.3.1(d)(ii), 13.3, 16, 18.3 or 18.7(a) of the Lease
     Form or otherwise modify the terms of the Lease Form so as to deprive the
     Mortgagee of rights expressly granted to the "Mortgagee" therein.

3.   May not modify in any material adverse respect as regards the interests of
     the Note Holders, the Subordination Agent, the Liquidity Providers or the
     Mortgagee the provisions of Section 5.1.9, 5.1.10, 5.1.11, 5.1.12, 7.5, 12,
     15.8(a) or 15.9 of the Participation Agreement Form or of the provisions of
     Section 5.1.2(xxiii) or 10.1.1(a)(iv) of the Participation Agreement Form
     so as to eliminate the requirement to deliver to the Loan Participant or
     the Mortgagee, as the case may be, the legal opinions to be provided to
     such Persons thereunder (recognizing that the lawyers rendering such
     opinions may be changed) or of the provisions of Section 7.6.11(a)(ii) of
     the Participation Agreement Form as regards the rights of the Mortgagee
     thereunder or otherwise modify the terms of the Participation Agreement
     Form to deprive the Trustees, the Subordination Agent, the Liquidity

<PAGE>

     Providers or the Mortgagee of any indemnity or right of reimbursement in
     its favor for Expenses or Taxes.

4.   May not modify, in any material adverse respect as regards the interests of
     the Note Holders, the Subordination Agent, the Liquidity Providers or the
     Mortgagee, the definition of "Make Whole Amount" in Annex A to the
     Participation Agreement Form.

     Notwithstanding the foregoing, any such Mandatory Document Term may be
     modified to correct or supplement any such provision which may be defective
     or to cure any ambiguity or correct any mistake, PROVIDED that any such
     action shall not materially adversely affect the interests of the Note
     Holders, the Subordination Agent, the Liquidity Providers, the Mortgagee or
     the Certificateholders.

<PAGE>

                                 SCHEDULE VI TO
                             NOTE PURCHASE AGREEMENT

                            MANDATORY ECONOMIC TERMS

EQUIPMENT NOTES

Obligor: Continental or an Owner Trust

Maximum Principal Amount:

The aggregate principal amount of all the Equipment Notes issued with respect to
an Aircraft shall not exceed the amounts set forth in the following table:

<TABLE>
<CAPTION>
                                                 MAXIMUM
                                                PRINCIPAL
                  MANUFACTURER'S                AMOUNT OF
                      SERIAL                    EQUIPMENT
AIRCRAFT TYPE         NUMBER                      NOTES
-------------         ------                      -----
<S>                   <C>                      <C>

Boeing 737-824        31588                    $31,772,000

Boeing 737-824        31632                     31,772,000

Boeing 737-824        31589                     31,828,333

Boeing 737-824        31590                     31,828,333

Boeing 737-824        31591                     31,886,833

Boeing 737-824        31592                     32,051,500

Boeing 737-824        31593                     32,107,833

Boeing 737-824        31594                     32,107,833

Boeing 737-824        31595                     32,164,167

Boeing 737-824        31596                     32,402,500

Boeing 737-824        31597                     32,402,500

Boeing 737-824        31598                     32,402,500

Boeing 737-924        30125                     32,226,133

Boeing 737-924        30126                     32,283,733

Boeing 737-924        30127                     32,339,200

Boeing 737-924        30128                     32,473,600

Boeing 737-924        30129                     32,608,000

Boeing 737-924        30130                     32,748,800

Boeing 737-924        30131                     32,812,800

Boeing 767-424ER      29452                     63,119,700

Boeing 767-424ER      29453                     63,119,700

</TABLE>

<PAGE>

<TABLE>
<CAPTION>

                                                 MAXIMUM
                                                PRINCIPAL
                  MANUFACTURER'S                AMOUNT OF
                      SERIAL                    EQUIPMENT
AIRCRAFT TYPE         NUMBER                      NOTES
-------------         ------                      -----
<S>                   <C>                       <C>

Boeing 767-424ER      29454                     63,252,000

Boeing 767-424ER      29455                     63,252,000

Boeing 767-424ER      29456                     63,384,300

Boeing 767-424ER      29457                     63,384,300

Boeing 767-424ER      29458                     63,516,600

Boeing 767-424ER      29459                     63,516,600

Boeing 767-424ER      29460                     63,642,600

Boeing 767-424ER      29461                     63,642,600

Boeing 777-224ER      31679                     90,059,667

Boeing 777-224ER      31680                     90,438,883

</TABLE>

The original aggregate principal amount of all Equipment Notes (other than
Series D Equipment Notes, if any) for all Aircraft shall not exceed the
aggregate face amount of all Certificates originally issued on the Issuance
Dates. The original aggregate principal amount of all Equipment Notes (other
than Series D Equipment Notes, if any) shall not exceed the original aggregate
face amount of all Certificates of the related Class originally issued on the
Issuance Dates.

The Loan to Aircraft Value for each series of Equipment Notes issued in respect
of each Aircraft computed on the date of issuance thereof (with (i) the
principal amount of the series of Equipment Notes that rank equally or senior
aggregated for purposes of the calculation and (ii) the value for such Aircraft
for these purposes equal to the value (the "ASSUMED APPRAISED VALUE") for such
Aircraft set forth in the Prospectus Supplement under "Description of the
Aircraft and the Appraisals--The Appraisals" in the column "Appraised Value")
and thereafter based on such value after giving effect to the Depreciation
Assumption (as defined in the Prospectus Supplement in "Description of the
Equipment Notes--Loan to Value Ratios of Equipment Notes")) will not exceed as
of the issuance date of such Equipment Notes and any December 15 Regular
Distribution Date thereafter (assuming no default in the payment of the
Equipment Notes and after giving effect to scheduled payments) the Loan to
Aircraft Value for such series of Equipment Notes for such Aircraft set forth in

<PAGE>

the applicable table in Appendix 1 to this Schedule (with the maximum at
issuance the same as the maximum at December 15, 2002).

As of the Delivery Period Termination Date and each December 15 Regular
Distribution Date thereafter, the Loan to Aircraft Value for each Class of
Certificates (computed (i) after aggregating the principal amount of the class
of Certificates that rank equally or senior and (ii) as of any such date on the
basis of the Assumed Appraised Value of all Aircraft that have been financed
pursuant to the Note Purchase Agreement and the Depreciation Assumption)will not
exceed (assuming no default in the payment of the Equipment Notes and after
giving effect to scheduled payments) the percentages set forth in the following
table for the applicable date:

<TABLE>
<CAPTION>

                                                         CLASS A-1       CLASS A-2        CLASS B         CLASS C
DATE <F1>                                              CERTIFICATES    CERTIFICATES    CERTIFICATES    CERTIFICATES
---------------------------------------------------    ------------    ------------    ------------    ------------
<S>                                                        <C>             <C>             <C>             <C>
December 15, 2002..................................        40.1%           40.1%           53.0%           62.0%

December 15, 2003..................................        39.2%           39.2%           52.1%           60.7%

December 15, 2004..................................        38.4%           38.4%           51.0%           59.5%

December 15, 2005..................................        37.8%           37.8%           50.2%           58.6%

December 15, 2006..................................        37.4%           37.4%           49.7%           57.9%

December 15, 2007..................................        36.9%           36.9%           49.1%           57.3%

December 15, 2008..................................        36.7%           36.7%           48.8%           56.9%

December 15, 2009..................................        36.4%           36.4%           48.4%           56.4%

December 15, 2010..................................        35.9%           35.9%           47.8%           55.7%

December 15, 2011 .................................        35.3%           35.3%           47.0%             N/A

December 15, 2012..................................        35.3%           35.3%           46.1%             N/A

December 15, 2013..................................        36.9%           36.9%           45.0%             N/A

December 15, 2014..................................        38.6%           38.6%           43.7%             N/A

December 15, 2015..................................        39.4%           39.4%           42.1%             N/A

December 15, 2016..................................        37.5%           37.5%            N/A              N/A

December 15, 2017..................................        34.6%           34.6%            N/A              N/A

December 15, 2018..................................        33.0%           33.0%            N/A              N/A

December 15, 2019..................................        31.1%           31.1%            N/A              N/A

December 15, 2020..................................        23.5%           23.5%            N/A              N/A

-------------
<FN>
<F1>
If the Delivery Period Termination Date is not a Regular Distribution Date, the
LTV applicable to the Delivery Period Termination Date shall be the LTV for the
next preceding Regular Distribution Date, unless the Delivery Period Termination
Date is before December 15, 2002, in which case the LTV for December 15, 2002,
shall apply.
</FN>
</TABLE>

Initial Average Life (in years) for any Aircraft:

     Series A-1:    not more than 14.0 years from the Prior
                    Issuance Date

<PAGE>

     Series B:      not more than 11.2 years from the Prior
                    Issuance Date

     Series C:      not more than 6.3 years from the Class C
                    Issuance Date

AVERAGE LIFE (IN YEARS)

     As of the Delivery Period Termination Date, the average life of the Class
     A-1 Certificates and the Class B Certificates shall not be more than 11.9
     years and 8.4 years, respectively, from the Prior Issuance Date and the
     average life of the Class C Certificates shall not be more than 5.3 years
     from the Class C Issuance Date(computed without regard to the acceleration
     of any Equipment Notes and after giving effect to any special distribution
     on the Certificates thereafter required in respect of unused Deposits).

FINAL MATURITY DATE

     There shall be a payment of principal scheduled on at least one Series A-1
     Equipment Note on June 15, 2021, and no Series A-1 Equipment Note shall
     mature after such date.

     Series A-2:    June 15, 2011, with no scheduled
                    amortization

     There shall be a payment of principal scheduled on at least one Series B
     Equipment Note on December 15, 2015, and no Series B Equipment Note shall
     mature after such date.

     There shall be a payment of principal scheduled on at least one Series C
     Equipment Note on June 15, 2011, and no Series C Equipment Note shall
     mature after such date.

As of the Delivery Period Termination Date (assuming Equipment Notes are
acquired by the Pass Through Trusts for all of the Aircraft), the aggregate
principal amount of the Series A-2 Equipment Notes shall equal the original face
amount of the Class A-2 Certificates.

Debt Rate (computed on the basis of a 360-day year consisting of twelve 30-day
months, payable semi-annually in arrears)

     Series A-1:    6.703%

     Series A-2:    6.503%

<PAGE>

     Series B:      7.373%

     Series C:      7.033%

Payment Due Rate:            Debt Rate plus 2% per annum

Payment Dates:               June 15 and December 15

Make-Whole                   Premiums: As provided in Article II of the form of
                             Trust Indenture marked as Exhibit A-3 or A-6
                             (whichever shall be utilized for a Leased Aircraft)
                             of the Note Purchase Agreement (the "TRUST
                             INDENTURE FORM") or the Owned Aircraft Indenture
                             marked as Exhibit C-2 of the Note Purchase
                             Agreement (the "OWNED INDENTURE FORM")

Redemption and Purchase:     As provided in Article II of the Trust Indenture
                             Form

All-risk hull insurance:     In the case of Leased Aircraft, not less than
                             Stipulated Loss Value and, in the case of Owned
                             Aircraft, not less than the unpaid principal amount
                             of the Series A-1, A-2, B and C Equipment Notes,
                             together with six months of interest accrued
                             thereon, subject to Continental's right to
                             self-insure on terms no more favorable to
                             Continental in any material respect than those set
                             forth in Section G of Annex D to the Lease Form, in
                             the case of Leased Aircraft, or Section G of Annex
                             B to the Owned Indenture Form, in the case of Owned
                             Aircraft

LEASE

Term:                        The Base Lease Term shall expire by its terms on or
                             after final maturity date of the latest maturity
                             date of the related Equipment Notes

Lease Payment Dates:         Not less frequently than June 15 and December 15

Minimum Rent:                Basic Rent due and payable on each Payment Date
                             shall be at least sufficient to pay in full, as of

<PAGE>

                             such Payment Date (assuming timely payment of the
                             related Equipment Notes prior to such Date), the
                             aggregate principal amount of scheduled
                             installments due on the related Equipment Notes
                             outstanding on such Payment Date, together with
                             accrued and unpaid interest thereon.

Supplemental Rent:           Sufficient to cover the sums described in clauses
                             (a) through (d) of such term as defined in Annex A
                             to the form of Lease (the "LEASE FORM") marked as
                             Exhibit A-2 of the Note Purchase Agreement

Stipulated Loss Value:       At all times equal to or greater than the then
                             outstanding principal amount of the related
                             Equipment Notes together with accrued interest
                             thereon

Termination Value:           At all times equal to or greater than the then
                             outstanding principal amount of the related
                             Equipment Notes together with accrued interest
                             thereon

Minimum Liability            As set forth in Schedule 1 to the
Insurance Amount:            Lease Form.

Payment Due Rate:            As set forth in Schedule 1 to the Lease Form.

SLV Rate:                    As set forth in Schedule 1 Lease Form.

PARTICIPATION AGREEMENT

Mortgagee, Subordination Agent, Liquidity Provider, Pass Through Trustees,
Escrow Agents and Note Holders indemnified against Expenses and Taxes to the
extent set forth in Section 9 of the form of the Participation Agreement (the
"PARTICIPATION AGREEMENT FORM") marked as Exhibit A-1 to the Note Purchase
Agreement

<PAGE>

<TABLE>
<CAPTION>
                                                                                                        APPENDIX 1

MAXIMUM LTVS BY AIRCRAFT

               ---------------------------------------------------------------------------------------------------
               SERIES A-1 / A-2
               ---------------------------------------------------------------------------------------------------
               Boeing    Boeing   Boeing   Boeing   Boeing   Boeing   Boeing   Boeing    Boeing   Boeing   Boeing
               737-824   737-824  737-824  737-824  737-824  737-824  737-824  737-924   737-924  737-924  737-924
                                                                      N73278
                                                                      ------
               N76269    N35271                     N73275            N79279
               ------    ------                     ------            ------
               N73270    N36272   N37273   N37274   N73276   N37277   N36280   N37408    N37409   N75410   N71411
               ------    ------   ------   ------   ------   ------   ------   ------    ------   ------   ------
   Date

<S>             <C>       <C>      <C>      <C>      <C>      <C>      <C>      <C>       <C>      <C>      <C>
Dec 15, 2002    45.0%     44.9%    44.8%    44.6%    44.5%    44.5%    42.8%    45.0%     45.0%    45.0%    45.0%
Dec 15, 2003    43.0%     42.9%    42.8%    42.6%    42.5%    42.4%    40.8%    43.3%     43.2%    43.1%    43.0%
Dec 15, 2004    42.0%     41.9%    41.8%    41.6%    41.5%    41.5%    39.8%    42.3%     42.2%    42.2%    42.0%
Dec 15, 2005    41.2%     41.1%    41.0%    40.8%    40.7%    40.7%    39.0%    41.5%     41.4%    41.3%    41.2%
Dec 15, 2006    40.6%     40.5%    40.4%    40.2%    40.1%    40.1%    38.4%    40.9%     40.8%    40.7%    40.6%
Dec 15, 2007    40.2%     40.1%    40.0%    39.8%    39.8%    39.7%    38.0%    40.5%     40.4%    40.4%    40.2%
Dec 15, 2008    39.8%     39.7%    39.6%    39.4%    39.4%    39.3%    37.6%    40.1%     40.0%    40.0%    39.8%
Dec 15, 2009    39.6%     39.5%    39.4%    39.2%    39.2%    39.1%    37.3%    39.9%     39.8%    39.7%    39.6%
Dec 15, 2010    39.3%     39.2%    39.1%    38.9%    38.9%    38.8%    37.0%    39.6%     39.5%    39.5%    39.3%
Dec 15, 2011    38.9%     38.8%    38.7%    38.5%    38.4%    38.4%    36.5%    39.2%     39.1%    39.0%    38.9%
Dec 15, 2012    38.3%     38.2%    38.2%    38.0%    37.9%    37.8%    36.0%    38.6%     38.5%    38.5%    38.3%
Dec 15, 2013    40.1%     40.0%    40.0%    39.8%    39.7%    39.6%    37.6%    40.4%     40.3%    40.3%    40.1%
Dec 15, 2014    42.1%     42.0%    41.9%    41.7%    41.6%    41.6%    39.3%    42.4%     42.3%    42.3%    42.1%
Dec 15, 2015    43.0%     42.9%    42.8%    42.6%    42.6%    42.5%    40.1%    43.4%     43.3%    43.3%    43.1%
Dec 15, 2016    41.2%     41.1%    41.0%    40.8%    40.7%    40.7%    38.3%    41.5%     41.4%    41.3%    41.2%
Dec 15, 2017    39.7%     39.6%    39.5%    39.3%    39.3%    39.2%    36.7%    40.0%     39.9%    39.8%    39.7%
Dec 15, 2018    37.7%     37.6%    37.5%    37.3%    37.3%    37.2%    34.7%    37.5%     37.5%    37.4%    37.2%
Dec 15, 2019    31.4%     31.3%    31.3%    31.1%    31.0%    31.0%    28.8%    34.0%     33.9%    33.8%    33.7%
Dec 15, 2020    29.5%     29.5%    29.4%    29.3%    29.2%    29.2%    26.9%    29.8%     29.7%    29.7%    29.6%
</TABLE>

<TABLE>
<CAPTION>
               --------------------------------------------------------------------------------------------------
               SERIES A-1 / A-2
               --------------------------------------------------------------------------------------------------
               Boeing     Boeing    Boeing    Boeing    Boeing    Boeing    Boeing    Boeing     Boeing    Boeing
               737-924    737-924   737-924    767-      767-      767-      767-      767-       777-      777-
                                              424ER     424ER     424ER     424ER     424ER      224ER     224ER
                                              N66057    N69059    N68061    N69063    N76065
                                              ------    ------    ------    ------    ------
               N31412     N37413    N30414    N67058    N78060    N76062    N76064    N77066     N78017    N37018
               ------     ------    ------    ------    ------    ------    ------    ------     ------    ------
   Date

<S>             <C>        <C>       <C>       <C>       <C>       <C>       <C>       <C>        <C>       <C>
Dec 15, 2002    44.8%      43.3%     43.2%     45.0%     45.0%     45.0%     45.0%     45.0%      45.0%     44.6%
Dec 15, 2003    42.8%      41.3%     41.2%     44.6%     44.6%     44.5%     43.0%     42.9%      44.1%     42.6%
Dec 15, 2004    41.8%      40.3%     40.2%     43.6%     43.5%     43.4%     42.0%     41.9%      43.1%     41.5%
Dec 15, 2005    41.0%      39.5%     39.4%     42.8%     42.7%     42.6%     41.1%     41.0%      42.3%     40.7%
Dec 15, 2006    40.4%      38.9%     38.8%     42.2%     42.1%     42.0%     40.5%     40.4%      41.7%     40.1%
Dec 15, 2007    40.0%      38.5%     38.4%     41.8%     41.7%     41.6%     40.0%     40.0%      41.3%     39.6%
Dec 15, 2008    39.6%      38.0%     37.9%     41.3%     41.3%     41.2%     39.6%     39.5%      40.8%     39.2%
Dec 15, 2009    39.4%      37.8%     37.7%     41.1%     41.0%     41.0%     39.3%     39.2%      40.6%     38.9%
Dec 15, 2010    39.1%      37.4%     37.4%     40.8%     40.7%     40.7%     39.0%     38.9%      40.3%     38.6%
Dec 15, 2011    38.7%      36.9%     36.9%     40.4%     40.3%     40.2%     38.5%     38.4%      39.9%     38.1%
Dec 15, 2012    38.2%      36.4%     36.3%     39.8%     39.7%     39.7%     37.9%     37.8%      39.3%     37.5%
Dec 15, 2013    39.9%      38.0%     37.9%     41.7%     41.6%     41.5%     39.6%     39.5%      41.2%     39.2%
Dec 15, 2014    41.9%      39.8%     39.7%     43.2%     43.1%     43.0%     40.9%     40.8%      43.0%     40.8%
Dec 15, 2015    42.9%      40.6%     40.5%     43.2%     43.1%     43.0%     40.8%     40.7%      43.0%     40.7%
Dec 15, 2016    41.0%      38.7%     38.6%     42.8%     42.7%     42.6%     40.3%     40.2%      42.3%     39.9%
Dec 15, 2017    39.5%      37.2%     37.1%     41.2%     41.1%     41.1%     38.7%     38.6%      40.7%     38.3%
Dec 15, 2018    37.1%      34.7%     34.6%     39.2%     39.1%     39.0%     36.6%     36.5%      38.7%     36.2%
Dec 15, 2019    33.6%      31.2%     31.2%     36.6%     36.5%     36.4%     34.0%     33.9%      36.1%     33.6%
Dec 15, 2020    29.4%      27.2%     27.2%     30.7%     30.6%     30.6%     28.3%     28.3%      30.3%     28.1%
</TABLE>

<PAGE>

MAXIMUM LTVS BY AIRCRAFT

<TABLE>
<CAPTION>
               ---------------------------------------------------------------------------------------------------
               SERIES B
               ---------------------------------------------------------------------------------------------------
               Boeing     Boeing    Boeing    Boeing    Boeing    Boeing    Boeing    Boeing     Boeing    Boeing
               737-824    737-824   737-824   737-824   737-824   737-824   737-824   737-924    737-924   737-924

               N76269     N35271                        N73275              N73278
               ------     ------                        ------              ------
               N73270     N36272    N37273    N37274    N73276    N37277    N79279    N37408     N37409    N75410
               ------     ------    ------    ------    ------    ------    ------    ------     ------    ------
                                                                            N36280
                                                                            ------
   Date

<S>             <C>        <C>       <C>       <C>       <C>       <C>       <C>       <C>        <C>       <C>
Dec 15, 2002    55.0%      55.0%     55.0%     55.0%     55.0%     55.0%     55.0%     55.0%      55.0%     55.0%
Dec 15, 2003    55.0%      55.0%     55.0%     55.0%     55.0%     55.0%     53.6%     55.0%      55.0%     55.0%
Dec 15, 2004    55.0%      55.0%     54.9%     54.6%     54.5%     54.4%     52.3%     55.0%      55.0%     55.0%
Dec 15, 2005    54.1%      54.0%     53.9%     53.6%     53.5%     53.4%     51.3%     54.5%      54.4%     54.3%
Dec 15, 2006    53.3%      53.2%     53.1%     52.8%     52.7%     52.6%     50.4%     53.7%      53.6%     53.5%
Dec 15, 2007    52.8%      52.7%     52.6%     52.3%     52.2%     52.1%     49.9%     53.2%      53.1%     53.0%
Dec 15, 2008    52.2%      52.1%     52.0%     51.8%     51.7%     51.6%     49.3%     52.6%      52.5%     52.5%
Dec 15, 2009    52.0%      51.9%     51.8%     51.5%     51.4%     51.3%     49.0%     52.4%      52.3%     52.2%
Dec 15, 2010    51.6%      51.5%     51.4%     51.1%     51.0%     50.9%     48.6%     52.0%      51.9%     51.8%
Dec 15, 2011    51.0%      50.9%     50.8%     50.6%     50.5%     50.4%     48.0%     51.4%      51.3%     51.2%
Dec 15, 2012    50.3%      50.2%     50.1%     49.9%     49.8%     49.7%     47.2%     50.7%      50.6%     50.5%
Dec 15, 2013    49.4%      49.3%     49.3%     49.0%     48.9%     48.8%     46.3%     49.8%      49.7%     49.6%
Dec 15, 2014    48.4%      48.3%     48.2%     48.0%     47.9%     47.8%     45.2%     48.8%      48.7%     48.6%
Dec 15, 2015    47.0%      46.9%     46.9%     46.6%     46.5%     46.5%     43.8%     47.4%      47.3%     47.2%
</TABLE>

<TABLE>
<CAPTION>

               ----------------------------------------------------------------------------------------------------------
               SERIES B
               ----------------------------------------------------------------------------------------------------------
               Boeing    Boeing   Boeing   Boeing   Boeing    Boeing    Boeing    Boeing    Boeing    Boeing  Boeing
               737-924   737-924  737-924  737-924  767-424ER 767-424ER 767-424ER 767-424ER 767-424ER 777-224 ER777-224ER

                                                    N66057    N69059    N68061    N69063    N76065
                                                    ------    ------    ------    ------    ------
               N71411    N31412   N37413   N30414   N67058    N78060    N76062    N76064    N77066    N78017  N37018
               ------    ------   ------   ------   ------    ------    ------    ------    ------    ------  ------

     Date
<S>             <C>       <C>      <C>      <C>      <C>       <C>       <C>       <C>       <C>       <C>     <C>
Dec 15, 2002    55.0%     55.0%    55.0%    55.0%    55.0%     55.0%     55.0%     55.0%     55.0%     55.0%   55.0%
Dec 15, 2003    55.0%     55.0%    54.2%    54.1%    55.0%     55.0%     55.0%     55.0%     55.0%     55.0%   55.0%
Dec 15, 2004    55.0%     54.9%    52.9%    52.8%    55.0%     55.0%     55.0%     55.0%     55.0%     55.0%   54.5%
Dec 15, 2005    54.1%     53.8%    51.8%    51.7%    55.0%     55.0%     55.0%     54.0%     53.9%     55.0%   53.4%
Dec 15, 2006    53.3%     53.1%    51.0%    50.9%    55.0%     55.0%     55.0%     53.1%     53.0%     54.7%   52.6%
Dec 15, 2007    52.8%     52.6%    50.5%    50.4%    54.8%     54.7%     54.6%     52.6%     52.5%     54.2%   52.0%
Dec 15, 2008    52.2%     52.0%    49.9%    49.8%    54.3%     54.2%     54.1%     52.0%     51.9%     53.6%   51.4%
Dec 15, 2009    52.0%     51.7%    49.6%    49.5%    54.0%     53.9%     53.8%     51.6%     51.5%     53.3%   51.1%
Dec 15, 2010    51.6%     51.4%    49.1%    49.0%    53.6%     53.5%     53.4%     51.2%     51.1%     53.0%   50.6%
Dec 15, 2011    51.0%     50.8%    48.5%    48.4%    53.0%     52.9%     52.8%     50.5%     50.4%     52.4%   50.0%
Dec 15, 2012    50.3%     50.1%    47.7%    47.6%    52.3%     52.2%     52.1%     49.7%     49.6%     51.6%   49.2%
Dec 15, 2013    49.4%     49.2%    46.8%    46.7%    51.4%     51.3%     51.2%     48.8%     48.7%     50.7%   48.3%
Dec 15, 2014    48.4%     48.2%    45.7%    45.6%    50.3%     50.2%     50.1%     47.6%     47.5%     49.7%   47.1%
Dec 15, 2015    47.0%     46.8%    44.3%    44.3%    48.9%     48.8%     48.7%     46.2%     46.1%     48.3%   45.7%
</TABLE>

<PAGE>

MAXIMUM LTVS BY AIRCRAFT

<TABLE>
<CAPTION>
               ---------------------------------------------------------------------------------------------------
               SERIES C
               ---------------------------------------------------------------------------------------------------
               Boeing    Boeing   Boeing   Boeing   Boeing   Boeing   Boeing   Boeing   Boeing    Boeing   Boeing
               737-824   737-824  737-824  737-824  737-824  737-824  737-824  737-924  737-924   737-924  737-924
                                                                      N73278
                                                                      ------
               N76269    N35271                     N73275            N79279
               ------    ------                     ------            ------
               N73270    N36272   N37273   N37274   N73276   N37277   N36280   N37408  N37409     N75410   N71411
               ------    ------   ------   ------   ------   ------   ------   ------  ------     ------   ------
   Date

<S>             <C>       <C>      <C>      <C>      <C>      <C>      <C>      <C>       <C>      <C>      <C>
Dec 15, 2002    65.0%     65.0%    65.0%    65.0%    65.0%    65.0%    65.0%    64.0%     64.0%    64.0%    64.0%
Dec 15, 2003    65.0%     65.0%    65.0%    64.8%    64.7%    64.6%    62.1%    64.0%     64.0%    64.0%    64.0%
Dec 15, 2004    63.9%     63.7%    63.6%    63.3%    63.2%    63.1%    60.6%    64.0%     64.0%    64.0%    63.9%
Dec 15, 2005    62.6%     62.5%    62.4%    62.1%    62.0%    61.9%    59.4%    63.1%     63.0%    62.9%    62.6%
Dec 15, 2006    61.7%     61.6%    61.5%    61.2%    61.1%    61.0%    58.5%    62.2%     62.1%    62.0%    61.7%
Dec 15, 2007    61.1%     61.0%    60.9%    60.6%    60.5%    60.4%    57.8%    61.6%     61.5%    61.4%    61.2%
Dec 15, 2008    60.5%     60.4%    60.3%    60.0%    59.9%    59.8%    57.2%    61.0%     60.9%    60.8%    60.5%
Dec 15, 2009    60.2%     60.1%    60.0%    59.7%    59.6%    59.5%    56.8%    60.7%     60.6%    60.5%    60.2%
Dec 15, 2010    59.8%     59.7%    59.6%    59.2%    59.1%    59.0%    56.3%    60.2%     60.1%    60.0%    59.8%
</TABLE>

<TABLE>
<CAPTION>
               --------------------------------------------------------------------------------------------------
               SERIES C
               --------------------------------------------------------------------------------------------------
               Boeing     Boeing    Boeing    Boeing    Boeing    Boeing    Boeing    Boeing     Boeing    Boeing
               737-924    737-924   737-924    767-      767-      767-      767-      767-       777-      777-
                                              424ER     424ER     424ER     424ER     424ER      224ER     224ER

                                              N66057    N69059    N68061    N69063    N76065
                                              ------    ------    ------    ------    ------
               N31412     N37413    N30414    N67058    N78060    N76062    N79064    N77066     N78017    N37018
               ------     ------    ------    ------    ------    ------    ------    ------     ------    ------

     Date
<S>             <C>        <C>       <C>       <C>       <C>       <C>       <C>       <C>        <C>       <C>
Dec 15, 2002    64.0%      64.0%     64.0%     63.0%     63.0%     63.0%     63.0%     63.0%      65.0%     65.0%
Dec 15, 2003    64.0%      62.8%     62.7%     63.0%     63.0%     63.0%     63.0%     63.0%      65.0%     64.7%
Dec 15, 2004    63.6%      61.3%     61.2%     63.0%     63.0%     63.0%     63.0%     63.0%      65.0%     63.2%
Dec 15, 2005    62.4%      60.1%     60.0%     63.0%     63.0%     63.0%     62.6%     62.4%      64.3%     61.9%
Dec 15, 2006    61.5%      59.1%     59.0%     63.0%     63.0%     63.0%     61.6%     61.5%      63.4%     61.0%
Dec 15, 2007    60.9%      58.5%     58.4%     63.0%     63.0%     63.0%     60.9%     60.8%      62.8%     60.3%
Dec 15, 2008    60.3%      57.8%     57.7%     62.9%     62.8%     62.6%     60.2%     60.1%      62.1%     59.6%
Dec 15, 2009    60.0%      57.4%     57.3%     62.6%     62.4%     62.3%     59.8%     59.7%      61.8%     59.2%
Dec 15, 2010    59.5%      56.9%     56.8%     62.1%     62.0%     61.9%     59.3%     59.2%      61.4%     58.7%
</TABLE>

<PAGE>

                                   ANNEX A to
                             NOTE PURCHASE AGREEMENT

                                   DEFINITIONS

"ACT" means 49 U.S.C.ss.ss.40101-46507.

"AFFILIATE" means, with respect to any person, any other person directly or
indirectly controlling, controlled by or under common control with such person.
For purposes of this definition, "control" means the power, directly or
indirectly, to direct or cause the direction of the management and policies of
such person, whether through the ownership of voting securities or by contract
or otherwise and "controlling," "controlled by" and "under common control with"
have correlative meanings.

"AIRCRAFT PURCHASE AGREEMENT" means, in the case of the Boeing 767-424ER
Aircraft, the Purchase Agreement No. 2060, dated as of October 10, 1997, in the
case of the Boeing 777-224ER Aircraft, the Purchase Agreement No. 2061, dated as
of October 10, 1997 or, in the case of the Boeing 737-924 Aircraft and the
Boeing 737-824 Aircraft, the Purchase Agreement No. 1951 dated July 23, 1996, as
amended, each between the Company and the Manufacturer (including all exhibits
thereto, together with all letter agreements entered into that by their terms
constitute part of any such Purchase Agreement); and "AIRCRAFT PURCHASE
AGREEMENTS" means all such agreements.

"AIRCRAFT PURCHASE AGREEMENT ASSIGNMENT" means a Purchase Agreement and Engine
Warranties Assignment substantially in the form of Exhibit A-4-I or A-4-II to
the Note Purchase Agreement.

"ASSUMED AMORTIZATION SCHEDULE" means the amortization schedule set forth on
page S-31 of the Prospectus Supplement.

"BANKRUPTCY CODE" means the United States Bankruptcy Code, 11 U.S.C.ss.ss.102 ET
SEQ.

"BASIC PASS THROUGH TRUST AGREEMENT" means the Pass Through Trust Agreement,
dated September 25, 1997, between the Company and Pass Through Trustee, as such
agreement may be supplemented, amended or modified, but does not include any
Trust Supplement.

"BUSINESS DAY" means any day, other than a Saturday, Sunday or other day on
which commercial banks are authorized or required by law to close in New York,
New York, Houston, Texas, Wilmington, Delaware or Salt Lake City, Utah.

<PAGE>

"CERTIFICATES" has the meaning set forth in the fifth recital to the Note
Purchase Agreement.

"CERTIFICATEHOLDER" means the Person in whose name a Certificate is registered
in the Register.

"CLASS" means the class of Certificates issued by each Pass Through Trust.

"CLASS A-1 CERTIFICATES" means Certificates issued by the Class A-1 Pass Through
Trust.

"CLASS A-2 CERTIFICATES" means Certificates issued by the Class A-2 Pass Through
Trust.

"CLASS B CERTIFICATES" means Certificates issued by the Class B Pass Through
Trust.

"CLASS C CERTIFICATES" means Certificates issued by the Class C Pass Through
Trust.

"CLASS C ISSUANCE DATE" means the date of the original issuance of the Class C
Certificates.

"CLASS C UNDERWRITER" has the meaning set forth in the sixth recital to the Note
Purchase Agreement.

"CLASS C UNDERWRITING AGREEMENT" has the meaning set forth in the sixth recital
to the Note Purchase Agreement.

"CLASS D CERTIFICATES" means pass through certificates issued by the Continental
Airlines Pass Through Trust, Series 2001-1D, if any.

"COMPANY" means Continental Airlines, Inc., a Delaware corporation.

"CORPORATE TRUST OFFICE" with respect to any Pass Through Trustee or any Loan
Trustee, means 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 the earlier of (a) the day after the Delivery Period
Termination Date and (b) the date on which a Triggering Event occurs.

<PAGE>

"DELIVERY PERIOD TERMINATION DATE" means the earlier of (a) September 30, 2002,
or, if the Equipment Notes relating to all of the New Aircraft (or Substitute
Aircraft in lieu thereof) have not been purchased by the Pass Through Trustees
on or prior to such date due to any reason beyond the control of the Company and
not occasioned by the Company's fault or negligence, December 31, 2002 (provided
that, if a labor strike occurs or continues at the Manufacturer after the
Issuance Date on or prior to either or both of such dates referred to in this
clause (a), such date or dates on or following the Issuance Date shall be
extended by adding thereto the number of days that such strike continued in
effect after the Issuance Date) and (b) the date on which Equipment Notes issued
with respect to all of the New Aircraft (or Substitute Aircraft in lieu thereof)
have been purchased by the Pass Through Trustees in accordance with the Note
Purchase Agreement.

"DELIVERY DATE" means the Business Day on which a New Aircraft is delivered to
and accepted by the Company.

"DEPOSIT" has the meaning set forth in the seventh recital to the Note Purchase
Agreement.

"DEPOSIT AGREEMENT" has the meaning set forth in the seventh recital to the Note
Purchase Agreement.

"DEPOSITARY" means Credit Suisse First Boston, a banking institution organized
under the laws of Switzerland, acting through its New York branch.

"ELIGIBLE AIRCRAFT" has the meaning set forth in the second recital to the Note
Purchase Agreement.

"EQUIPMENT NOTES" means and includes any equipment notes issued under any
Indenture in the form specified in Section 2.01 thereof (as such form may be
varied pursuant to the terms of such Indenture) and any Equipment Note issued
under any Indenture in exchange for or replacement of any other Equipment Note.

"ESCROW AGENT" has the meaning set forth in the first paragraph of the Note
Purchase Agreement.

"ESCROW AND PAYING AGENT AGREEMENT" has the meaning set forth in the seventh
recital to the Note Purchase Agreement.

"FAA" means the Federal Aviation Administration of the United States.

<PAGE>

"FINAL WITHDRAWAL" with respect to each Escrow and Paying Agent Agreement, has
the meaning set forth in Section 1.02 thereof.

"FINANCING AGREEMENTS" means, collectively, the Lease Financing Agreements and
the Owner Financing Agreements.

"GOVERNMENT ENTITY" means (a) any federal, state, provincial or similar
government, and any body, board, department, commission, court, tribunal,
authority, agency or other instrumentality of any such government or otherwise
exercising any executive, legislative, judicial, administrative or regulatory
functions of such government or (b) any other government entity having
jurisdiction over any matter contemplated by the Operative Agreements or
relating to the observance or performance of the obligations of any of the
parties to the Operative Agreements.

"INDENTURES" means, collectively, the Leased Aircraft Indentures, the Special
Indentures and the Owned Aircraft Indentures.

"INTERCREDITOR AGREEMENT" has the meaning set forth in the eleventh recital to
the Note Purchase Agreement.

"ISSUANCE DATE" means either the Prior Issuance Date or the Class C Issuance
Date.

"LAW" means (a) any constitution, treaty, statute, law, decree, regulation,
order, rule or directive of any Government Entity, and (b) any judicial or
administrative interpretation or application of, or decision under, any of the
foregoing.

"LEASE" means a Lease Agreement substantially in the form of Exhibit A-2 to the
Note Purchase Agreement.

"LEASE FINANCING AGREEMENTS" means, collectively, the Aircraft Purchase
Agreement Assignment, the Leased Aircraft Participation Agreement, the Lease,
the Leased Aircraft Indenture (or, in a case where The Boeing Company or any of
its Affiliates is the Owner Participant and if so specified in the Delivery
Notice, the Special Indenture), the Equipment Notes issued thereunder and the
Trust Agreement relating to the financing of a Leased Aircraft.

"LEASED AIRCRAFT" means a New Aircraft subject to a Lease.

"LEASED AIRCRAFT INDENTURE" means a Trust Indenture and Mortgage substantially
in the form of Exhibit A-3 to the Note Purchase Agreement.

<PAGE>

"LEASED AIRCRAFT PARTICIPATION AGREEMENT" means a Participation Agreement
substantially in the form of Exhibit A-1 to the Note Purchase Agreement.

"LIQUIDITY FACILITY" has the meaning set forth in the eleventh recital to the
Note Purchase Agreement.

"LIQUIDITY PROVIDER" has the meaning set forth in the eleventh recital to the
Note Purchase Agreement.

"LOAN TRUSTEE" means the "Mortgagee" as defined in the Financing Agreements.

"MANDATORY DOCUMENT TERMS" means the terms set forth on Schedule V to the Note
Purchase Agreement.

"MANDATORY ECONOMIC TERMS" means the terms set forth on Schedule VI to the Note
Purchase Agreement.

"MANUFACTURER" means The Boeing Company, a Delaware corporation, solely in its
capacity as manufacturer or seller of New Aircraft.

"NEW AIRCRAFT" has the meaning set forth in the second recital to the Note
Purchase Agreement.

"NOTE PURCHASE AGREEMENT" means the Amended and Restated Note Purchase Agreement
to which this Annex A is attached.

"NOTICE OF PURCHASE WITHDRAWAL" with respect to each Deposit Agreement, has the
meaning set forth in Section 2.3 thereof.

"OPERATIVE AGREEMENTS" means, collectively, the Pass Through Trust Agreements,
the Escrow and Paying Agent Agreements, the Deposit Agreements, the Liquidity
Facilities, the Intercreditor Agreement, the Trust Agreements, the Equipment
Notes, the Certificates and the Financing Agreements.

"ORIGINAL NOTE PURCHASE AGREEMENT" has the meaning set forth in the third
recital to the Note Purchase Agreement.

"OWNED AIRCRAFT" means a New Aircraft subject to an Owned Aircraft Indenture.

"OWNED AIRCRAFT INDENTURE" means a Trust Indenture and Mortgage substantially in
the form of Exhibit C-2 to the Note Purchase Agreement.

<PAGE>

"OWNED AIRCRAFT PARTICIPATION AGREEMENT" means a Participation Agreement
substantially in the form of Exhibit C-1 to the Note Purchase Agreement.

"OWNER FINANCING AGREEMENTS" means, collectively, the Owned Aircraft
Participation Agreement, the Owned Aircraft Indenture and the Equipment Notes
issued thereunder.

"OWNER PARTICIPANT" means, with respect to any Leased Aircraft, the Person named
as the Owner Participant in the Participation Agreement with respect to such
Leased Aircraft.

"OWNER TRUST" means with respect to any Leased Aircraft, the trust created by
the "Trust Agreement" referred to in the Leased Aircraft Indenture or Special
Indenture related thereto.

"OWNER TRUSTEE" means with respect to any Leased Aircraft, the "Owner Trustee"
party to the "Trust Agreement" referred to in the Leased Aircraft Indenture or
Special Indenture related thereto.

"PARTICIPATION AGREEMENTS" means, collectively, the Leased Aircraft
Participation Agreements and the Owned Aircraft Participation Agreements.

"PASS THROUGH TRUST" has the meaning set forth in the fifth recital to the Note
Purchase Agreement.

"PASS THROUGH TRUST AGREEMENT" means each of the four separate Trust
Supplements, together in each case with the Basic Pass Through Trust Agreement,
each dated as of the applicable Issuance Date, by and between the Lessee and
Pass Through Trustee.

"PASS THROUGH TRUSTEE" has the meaning set forth in the first paragraph of the
Note Purchase Agreement.

"PAYING AGENT" has the meaning set forth in the first paragraph of the Note
Purchase Agreement.

"PERSON" means any individual, firm, partnership, joint venture, trust, trustee,
Government Entity, organization, association, corporation, limited liability
company, government agency, committee, department, authority and other body,
corporate or incorporate, whether having distinct legal status or not, or any
member of any of the same.

<PAGE>

"PRIOR CERTIFICATES" has the meaning set forth in the third recital to the Note
Purchase Agreement.

"PRIOR ISSUANCE DATE" means the date of original issuance of the Prior
Certificates.

"PRIOR UNDERWRITER" has the meaning set forth in the sixth recital to the Note
Purchase Agreement.

"PRIOR UNDERWRITING AGREEMENT" has the meaning set forth in the sixth recital to
the Note Purchase Agreement.

"PROSPECTUS SUPPLEMENT" means the final Prospectus Supplement, dated June 12,
2001, to the Prospectus, dated March 23, 2001, of the Company relating to the
offering of the Certificates.

"QUALIFIED OWNER PARTICIPANT" means any bank, trust company, insurance company,
financial institution, partnership, limited liability company or corporation
(other than, without the Company's consent, a commercial air carrier, a
commercial aircraft operator, a freight forwarder or Affiliate of any of the
foregoing), in each case with a combined capital and surplus or net worth of at
least $50,000,000.

"RATING AGENCIES" means, collectively, at any time, each nationally recognized
rating agency which shall have been requested to rate the Certificates and which
shall then be rating the Certificates. The initial Rating Agencies will be
Moody's Investors Service, Inc. and Standard & Poor's Ratings Services, a
division of The McGraw-Hill Companies, Inc.

"RATING AGENCY CONFIRMATION" means, with respect to (1) any Financing Agreement
that has been modified in any material respect from the forms thereof attached
to the Note Purchase Agreement, (2) a Substitute Aircraft or (3) a
Sale/Leaseback Transaction, a written confirmation from each of the Rating
Agencies that (1) the use of such Financing Agreement with such modifications,
(2) the substituting of such Substitute Aircraft for an Eligible Aircraft or (3)
the consummation of such Sale/Leaseback Transaction, respectively, whichever of
the foregoing shall in a particular case require Rating Agency Confirmation,
would not result in (i) a reduction of the rating for any Class of Certificates
below the then current rating for such Class of Certificates or (ii) a
withdrawal or suspension of the rating of any Class of Certificates.

<PAGE>

"REGISTER" means the register maintained pursuant to Sections 3.04 and 7.12 of
the Basic Pass Through Trust Agreement with respect to each Pass Through Trust.

"REGULAR DISTRIBUTION DATES" shall mean June 15 and December 15 of each year,
commencing December 15, 2001.

"SALE/LEASEBACK TRANSACTION" has the meaning set forth in Section 1(k) of the
Note Purchase Agreement.

"SECTION 1110" means 11 U.S.C. ss. 1110 of the Bankruptcy Code or any successor
or analogous Section of the federal bankruptcy Law in effect from time to time.

"SERIES A-1 EQUIPMENT NOTES" means Equipment Notes issued under an Indenture and
designated as "Series A-1" thereunder.

"SERIES A-2 EQUIPMENT NOTES" means Equipment Notes issued under an Indenture and
designated as "Series A-2" thereunder.

"SERIES B EQUIPMENT NOTES" means Equipment Notes issued under an Indenture and
designated as "Series B" thereunder.

"SERIES C EQUIPMENT NOTES" means Equipment Notes issued under an Indenture and
designated as "Series C" thereunder.

"SERIES D EQUIPMENT NOTES" means Equipment Notes issued under an Indenture and
designated as "Series D" thereunder, if any.

"SPECIAL INDENTURE" means a Trust Indenture and Mortgage substantially in the
form of Exhibit A-6 to the Note Purchase Agreement.

"SUBORDINATION AGENT" has the meaning set forth in the first paragraph of the
Note Purchase Agreement.

"SUBSTITUTE AIRCRAFT" has the meaning set forth in Section 1(g) of the Note
Purchase Agreement.

"TAXES" means all license, recording, documentary, registration and other
similar fees and all taxes, levies, imposts, duties, charges, assessments or
withholdings of any nature whatsoever imposed by any Taxing Authority, together
with any penalties, additions to tax, fines or interest thereon or additions
thereto.

"TAXING AUTHORITY" means any federal, state or local government or other taxing
authority in the United States, any foreign government or any political
subdivision or taxing authority thereof, any international taxing authority or

<PAGE>

any territory or possession of the United States or any taxing authority
thereof.

"TRIGGERING EVENT" has the meaning assigned to such term in the Intercreditor
Agreement.

"TRUST AGREEMENT" means a Trust Agreement substantially in the form of Exhibit E
to the Note Purchase Agreement.

"TRUST SUPPLEMENT" means an agreement supplemental to the Basic Pass Through
Trust Agreement pursuant to which (i) a separate trust is created for the
benefit of the holders of the Pass Through Certificates of a class, (ii) the
issuance of the Pass Through Certificates of such class representing fractional
undivided interests in such trust is authorized and (iii) the terms of the Pass
Through Certificates of such class are established.

"UNDERWRITERS" has the meaning set forth in the sixth recital to the Note
Purchase Agreement.

"WTC" has the meaning set forth in the first paragraph of the Note Purchase
Agreement.

<PAGE>

                                 EXHIBIT A-1 to
                             NOTE PURCHASE AGREEMENT

                 FORM OF LEASED AIRCRAFT PARTICIPATION AGREEMENT

                               [Filed Separately]

<PAGE>

                                 EXHIBIT A-2 to
                             NOTE PURCHASE AGREEMENT

                                  FORM OF LEASE

                               [Filed Separately]

<PAGE>

                                 EXHIBIT A-3 to
                             NOTE PURCHASE AGREEMENT

                        FORM OF LEASED AIRCRAFT INDENTURE

                               [Filed Separately]

<PAGE>

                                EXHIBIT A-4-I to
                             NOTE PURCHASE AGREEMENT

              FORM OF AIRCRAFT PURCHASE AGREEMENT ASSIGNMENT - CFM

              ---------------------------------------------------
                    CONFIDENTIAL: SUBJECT TO RESTRICTIONS ON
                  DISSEMINATION SET FORTH IN SECTION 8 OF THE
                  PARTICIPATION AGREEMENT (AS DEFINED HEREIN)
              ---------------------------------------------------

            PURCHASE AGREEMENT AND ENGINE WARRANTIES ASSIGNMENT ___

            PURCHASE AGREEMENT AND ENGINE WARRANTIES ASSIGNMENT ___, dated as of
__________, between Continental Airlines, Inc., a Delaware corporation
("Assignor"), and Wells Fargo Bank Northwest, National Association, a national
banking association, not in its individual capacity but solely as Owner Trustee
("Assignee") under Trust Agreement ___ dated as of __________ (the "Trust
Agreement"), between the Owner Participant named therein and Assignee, in its
individual capacity, and otherwise not in its individual capacity but solely as
trustee thereunder.

            Assignor and Manufacturer (as such term and other capitalized terms
are hereinafter defined) are parties to the Purchase Agreement, providing, among
other things, for the manufacture and sale by Manufacturer or Manufacturer's
wholly owned subsidiary to Assignor of certain aircraft, engines and related
equipment, including the Aircraft. Assignor and Engine Manufacturer are parties
to the General Terms Agreement, containing, among other terms and conditions,
the Engine Warranties.

            Assignee wishes to acquire the Aircraft and Assignor, on the terms
and conditions hereinafter set forth, is willing to assign to Assignee certain
of Assignor's rights and interests under the Purchase Agreement and the General
Terms Agreement and Assignee is willing to accept such assignment, as
hereinafter set forth.

                                   AGREEMENTS

            The parties hereto agree as follows:

            Section 1. DEFINITIONS. For all purposes of this Assignment, except
as otherwise expressly provided or unless the context otherwise requires, the
following terms shall have the following meanings:

            AIRCRAFT - The Boeing Model 737-___ aircraft bearing Manufacturer's
Serial No. _______ and U.S. Registration No. __________, to be financed pursuant
to the Participation Agreement, including the Engines.

<PAGE>

            ENGINES - Two CFM Model ________ series engines bearing
manufacturer's serial numbers ________ and ________, respectively, installed on
the Aircraft.

            ENGINE MANUFACTURER - CFM International, Inc., a Delaware
corporation, and its successors and assigns.

            ENGINE WARRANTIES - Engine Manufacturer's "New Engine Warranty,"
"New Parts Warranty," "Ultimate Life Warranty" and "Campaign Change Warranty,"
as set forth in the Engine Manufacturer's Engine Product Support Plan which
forms a part of the General Terms Agreement, and as limited by the applicable
terms of the General Terms Agreement and such Engine Product Support Plan.

            GENERAL TERMS AGREEMENT - The Agreement No. 6-7075, dated as of June
10, 1985, by and between Engine Manufacturer and Assignor, including the "Engine
Product Support Plan" at Exhibit B thereto, insofar as such Engine Product
Support Plan relates to the Engine Warranties, but excluding any and all letter
agreements attached thereto, to the extent that such General Terms Agreement and
such Exhibit relate to the Engines, as such General Terms Agreement may
hereafter be amended, supplemented and modified to the extent permitted by the
terms of this Assignment to the extent relating to the Engines.

            LEASE - The Lease Agreement ___, dated as of __________, as at any
time amended, supplemented and modified, between Assignee, as lessor, and
Assignor, as lessee, providing for the lease of the Aircraft.

            MANUFACTURER - The Boeing Company, a Delaware corporation, and its
successors and assigns.

            PARTICIPATION AGREEMENT - The Participation Agreement ___, dated as
of ___________, among Assignor, the Participants, Assignee and Mortgagee, as at
any time amended, supplemented and modified.

            PURCHASE AGREEMENT - Purchase Agreement No. 1951, dated July 23,
1996, between Manufacturer and Assignor, providing, among other things, for the
manufacture and sale by Manufacturer to Assignor of certain Boeing Model 737
aircraft (including the Aircraft) and including as part thereof Exhibits A, B,
D, E and F thereto, but excluding all other exhibits and letter and supplemental
agreements, to the extent that such Purchase Agreement and such Exhibits relate
to the Aircraft, as such Purchase Agreement may hereafter be amended,

<PAGE>

supplemented and modified to the extent permitted by the terms of this
Assignment.

            Capitalized terms used but not defined herein shall have the
respective meanings set forth or incorporated by reference, and shall be
construed and interpreted in the manner described, in the Participation
Agreement.

            Section 2. ASSIGNMENT. Assignor does hereby sell, assign, transfer
and set over unto Assignee and its successors and permitted assigns all of
Assignor's rights and interests in and to the Purchase Agreement, as and only to
the extent that the same relates to the Aircraft, and in and to the General
Terms Agreement, as and only to the extent that the Engine Warranties contained
therein relate to the Engines, except to the extent reserved below, including
without limitation in such assignment (a) all claims for damages in respect of
the Aircraft and the Engines arising as a result of any default by Manufacturer
under the Purchase Agreement or Engine Manufacturer or any other vendor or
supplier of other parts or equipment installed on or in the Aircraft, including
without limitation all warranty service life policies, aircraft performance
guarantees and indemnity provisions contained in the Purchase Agreement and the
Engine Warranties, and all claims arising thereunder, in respect of the Aircraft
and the Engines, (b) any and all rights of Assignor to compel performance of the
terms of the Purchase Agreement in respect of the Aircraft and the Engine
Warranties in respect of the Engines and (c) the right to purchase and take
title to the Aircraft pursuant to the Purchase Agreement; reserving to Assignor,
however, with respect to the Aircraft and each Engine, (i) all rights to receive
any credits due to Assignor with respect to the purchase price of the Aircraft
pursuant to the Purchase Agreement and of the Engines pursuant to the General
Terms Agreement, (ii) all of Assignor's rights and interests in or arising out
of any payments or deposits made relating to the Aircraft or to be made by
Assignor on amounts credited or to be credited or paid or to be paid by the
Manufacturer to the Assignor in respect of the Aircraft and (iii) so long and
only so long as the Aircraft and each Engine shall be subject to the Lease and
no Lease Event of Default shall have occurred and be continuing thereunder, the
rights (A) to demand, accept and retain all rights in and to all property (other
than the Aircraft), data and services that Manufacturer or Engine Manufacturer
is obligated to provide or does provide pursuant to the Purchase Agreement or
the General Terms Agreement, as the case may be, and (B) to obtain services,

<PAGE>

training, data and demonstration and test flights pursuant to the Purchase
Agreement or the General Terms Agreement, as the case may be.

            Assignee hereby accepts such assignment subject to the terms hereof.
Assignor has furnished a true copy of the Purchase Agreement and a true copy of
the General Terms Agreement to Assignee and has specifically directed Assignee's
attention to Paragraph 10 of Part A, Paragraph 5 of Part C, Paragraph 3 of Part
D, Paragraph 2 of Part D-1, Paragraph 5 of Part F-1, and Paragraph 9 and 10 of
Part F-2 of Exhibit B to the Purchase Agreement.

            Section 3. EXERCISE OF RIGHTS OF "BUYER" UNDER PURCHASE AGREEMENT
AND OF "AIRLINE" UNDER GENERAL TERMS AGREEMENT. Notwithstanding the foregoing,
if and so long as no Lease Event of Default shall have occurred and be
continuing, Assignee authorizes Assignor, to the exclusion of Assignee, during
the Term, to exercise in Assignor's name all rights and powers of the "Buyer" in
respect of the Aircraft under the Purchase Agreement and of the "Airline" in
respect of each Engine under the General Terms Agreement, and of Assignee in
respect of a default by any vendor or supplier of parts and equipment (as
specified in clause (a) of Section 2 above) and to retain any recovery or
benefit resulting from the enforcement of any warranty or indemnity under the
Purchase Agreement or the General Terms Agreement in respect of the Aircraft or
each Engine, as the case may be, except that Assignor may not enter into any
change order or other amendment, modification or supplement to the Purchase
Agreement without the written consent or countersignature of Assignee if such
change order, amendment, modification or supplement would (i) result in any
rescission, cancellation or termination of the Purchase Agreement in respect of
the Aircraft or (ii) materially diminish the rights assigned hereunder to
Assignee. Assignee agrees that, as between Assignee and Manufacturer or Engine
Manufacturer, as the case may be (and without affecting Assignor's duties or
obligations under the Participation Agreement or the Lease), neither
Manufacturer nor Engine Manufacturer, as the case may be, shall be deemed to
have knowledge of any Lease Default, Lease Event of Default, declaration of
default or the discontinuance or remedy thereof or the Aircraft or either Engine
being no longer subject to the Lease or any change in the authority of Assignor
or Assignee, as the case may be, to exercise any of the rights established
hereunder unless and until Manufacturer shall have received written notice
thereof from Assignee or Mortgagee addressed to its Vice President - Contracts
at P.O. Box 3707, Mail Code 21-34, Seattle, Washington 98124-2207, if by mail,
or to (425) 237-1706, if by facsimile, or, in the case of Engine Manufacturer,

<PAGE>

Engine Manufacturer shall have received written notice thereof from Assignee or
Mortgagee addressed to its Commercial Contract Director at P.O. Box 15514,
Cincinnati, Ohio 45215-6301, if by mail, or to (513) 243-1345, if by facsimile.
So long as Manufacturer and Engine Manufacturer act in good faith, Manufacturer
and Engine Manufacturer may rely conclusively on any such notice without
inquiring as to the accuracy of, or the entitlement of the party to give, such
notice.

            The Engine Manufacturer shall not be deemed to have knowledge of the
replacement of an Engine with another CFM engine, until the Engine Manufacturer
has received written notice thereof. Such notice shall include the serial number
of the Engine being replaced, as well as the serial number of the replacement
Engine and shall be sent to: Lease Pool Manager, Customer Support Operation, GE
Aircraft Engines, 111 Merchant Street, Room 450, Cincinnati, Ohio 45246.

            Section 4. CERTAIN AGREEMENTS. It is expressly agreed that, anything
herein contained to the contrary notwithstanding:

            (a) Assignor shall at all times remain liable (i) to Manufacturer
       under the Purchase Agreement to perform all the duties and obligations of
       the "Buyer" thereunder and (ii) to Engine Manufacturer under the General
       Terms Agreement to perform all the duties and obligations of the
       "Airline" thereunder, in each case to the same extent as if this
       Assignment had not been executed,

            (b) the exercise by Assignee of any of the rights assigned hereunder
       shall not release Assignor from any of its duties or obligations to
       Manufacturer under the Purchase Agreement or to Engine Manufacturer under
       the General Terms Agreement except to the extent that such exercise by
       Assignee shall constitute performance of such duties and obligations, and

            (c) except as provided in the next sentence, none of Assignee,
       Mortgagee or any Participant shall have any obligation or liability under
       the Purchase Agreement or the General Terms Agreement by reason of, or
       arising out of, this Assignment or be obligated to perform any of the
       obligations or duties of Assignor under the Purchase Agreement or the

<PAGE>

     General Terms Agreement or to make any payment thereunder or to make any
     inquiry as to the sufficiency of any payment received by any of them or to
     present or file any claim or to take any other action to collect or enforce
     any claim for any payment assigned hereunder.

Anything contained in this Assignment, the Consent and Agreement or the Engine
Consent and Agreement to the contrary notwithstanding, but without in any way
releasing Assignor from any of its duties or obligations under the Purchase
Agreement, the General Terms Agreement or this Assignment, Assignee and
Mortgagee confirm for the benefit of Manufacturer and Engine Manufacturer,
respectively, that, insofar as the provisions of the Purchase Agreement or the
Engine Warranties relate to the Aircraft or the Engines, as the case may be, in
exercising any rights under the Purchase Agreement or the Engine Warranties, or
in making any claim with respect to the Aircraft or other goods and services
delivered or to be delivered pursuant to the Purchase Agreement or the Engine
Warranties, the terms and conditions of the Purchase Agreement and the Engine
Warranties including, without limitation, the Disclaimer and Release and
Exclusion of Liabilities provisions of Article 12, including without limitation
Exhibit B (the "Product Assurance Document") and Exhibit C (the "Customer
Support Document") of the Purchase Agreement shall apply to, and be binding
upon, Assignee and Mortgagee to the same extent as Assignor.

            Section 5. PRESERVATION OF RIGHTS. Nothing contained in this
Assignment shall in any way diminish or limit the provisions of Assignor's
indemnity in Section 9 of the Participation Agreement with respect to any
liability of Assignee to Manufacturer in any way relating to or arising out of
the Purchase Agreement. Nothing contained in this Assignment shall subject
Manufacturer or Engine Manufacturer to any obligation or liability to which it
would not otherwise be subject under the Purchase Agreement or under the General
Terms Agreement, as the case may be, or modify in any respect the contract
rights of Manufacturer or Engine Manufacturer thereunder, except as may be
provided in the Consent and Agreement and the Engine Consent and Agreement, or
require Manufacturer to divest itself of title to or possession of the Aircraft
or other goods and services until delivery thereof and payment therefor as
provided in the Purchase Agreement or subject Manufacturer or Engine
Manufacturer to any multiple or duplicative liability or obligation under the
Purchase Agreement or the General Terms Agreement, as the case may be. No
further assignment of the Engine Warranties, including without limitation

<PAGE>

assignments for security purposes (other than under the Trust Indenture), are
permitted without the express written consent of Engine Manufacturer.

            Section 6. APPOINTMENT OF ATTORNEY. Effective at any time when a
Lease Event of Default shall have occurred and be continuing, (i) unless
Assignee and Mortgagee (so long as the Lien of the Trust Indenture has not been
discharged), in their sole discretion, shall notify Manufacturer or Engine
Manufacturer, as the case may be, to the contrary, the authorization given to
Assignor under Section 3 hereof to enforce such rights and claims shall
henceforth cease to be effective and Assignee and its successors and permitted
assigns shall, to the exclusion of Assignor, be entitled to assert and enforce
such rights and claims as substitute party plaintiff or otherwise, and Assignor
shall, at the request of Assignee or its successors or permitted assigns and at
Assignor's expense, cooperate with and take such action as is reasonably
necessary to enable Assignee and its successors and permitted assigns to enforce
such rights and claims, and (ii) Assignor does hereby constitute Assignee, its
successors and permitted assigns, Assignor's true and lawful attorney,
irrevocably, with full power (in the name of Assignor or otherwise) to ask,
require, demand, receive, compound and give acquittance for any and all monies
and claims for monies due and to become due under, or arising out of, the
Purchase Agreement in respect of the Aircraft or the Engine Warranties in
respect of the Engines, as the case may be, to the extent that the same have
been assigned by this Assignment and, for such period as Assignee may exercise
rights with respect thereto under this Assignment, to endorse any checks or
other instruments or orders in connection therewith and to file any claims or
take any action or institute (or, if previously commenced, assume control of)
any proceeding and to obtain any recovery in connection therewith which Assignee
may deem to be necessary or advisable in the premises.

            Section 7. OTHER ACTION. Assignor agrees that, at Assignor's sole
cost and expense, at any time and from time to time, upon the written request of
Assignee or, so long as the Lien of the Trust Indenture has not been discharged,
Mortgagee, Assignor will promptly and duly execute and deliver any and all such
further instruments and documents and take such further action as Assignee or,
so long as the Lien of the Trust Indenture has not been discharged, Mortgagee,
may reasonably request in order to obtain the full benefits of this Assignment
and of the rights and powers herein granted.

            Section 8. ASSIGNOR'S REPRESENTATIONS AND WARRANTIES. Assignor does
hereby represent and warrant that the Purchase Agreement and the General Terms

<PAGE>

Agreement are in full force and effect as to Assignor and are enforceable
against Assignor in accordance with their respective terms. Assignor does hereby
further represent and warrant that Assignor has, with the authorized execution
of the Consent and Agreement and the Engine Consent and Agreement, (i) received
all necessary consents to the assignment and transfer contemplated herein
(including without limitation the assignment and transfer contemplated herein of
Assignor's rights under the Purchase Agreement and the General Terms Agreement)
and (ii) assuming that the Consent and Agreement and the Engine Consent and
Agreement are in full force and effect, such consents are in full force and
effect and Assignor further represents and warrants that Assignor has not
assigned (except as assigned hereby) or pledged (except pursuant to the 737
Purchase Agreement Assignment dated as of November 27, 1996 between Lessee and
Manufacturer, the Lien of which will have been released at or prior to the
delivery of this Agreement), and hereby covenants that it will not during the
Term assign (except as assigned hereby) or pledge so long as this Assignment
shall remain in effect, the whole or any part of the rights hereby assigned or
any of its rights with respect to the Aircraft under the Purchase Agreement or
with respect to the Engines under the General Terms Agreement not assigned
hereby to anyone other than Assignee.

            Section 9. PAYMENTS. Notwithstanding this Assignment and anything
herein to the contrary, all amounts that Manufacturer or Engine Manufacturer is
obligated to pay to Assignor under the Purchase Agreement with respect to the
Aircraft or under the General Terms Agreement with respect to the Engines,
including, without limitation, resulting from the enforcement of any warranty,
covenant, representation, indemnity or product support agreement thereunder or
the enforcement or exercise of any right or power thereunder or hereunder (in
the case of Manufacturer, a "Manufacturer Payment," and in the case of Engine
Manufacturer, an "Engine Manufacturer Payment") (excluding, however, from
Manufacturer Payments and Engine Manufacturer Payments any amounts Manufacturer
is obligated to pay to Assignor with respect to the rights reserved to Assignor
in Section 2 hereof), will be payable and applicable as follows: all
Manufacturer Payments and Engine Manufacturer Payments shall be paid to Assignor
unless and until Manufacturer or Engine Manufacturer, as the case may be, shall
have received written notice as set forth in Section 3 hereof from Assignee or
Mortgagee that a Lease Event of Default has occurred and is continuing,
whereupon Manufacturer or Engine Manufacturer, as the case may be, will, until
Manufacturer or Engine Manufacturer, as the case may be, shall have received

<PAGE>

written notice from Assignee or Mortgagee that all Lease Events of Default have
been cured or waived, make any and all such payments directly to Assignee (or,
so long as the Trust Indenture has not been discharged and Manufacturer or
Engine Manufacturer, as the case may be, shall have received notice thereof, to
Mortgagee). Any amounts received by Assignee pursuant to the immediately
preceding sentence shall, to the extent not theretofore applied in satisfaction
of sums owing to Assignee in accordance with the terms of the Operative
Agreements, be held and invested as provided in Section 4.4 of the Lease.

            Section 10. ASSIGNEE'S AGREEMENT. Assignee agrees that, during the
Term, except as otherwise contemplated by Section 2 hereof and unless a Lease
Event of Default shall have occurred and be continuing, it will not enter into
any agreement that would amend, modify, supplement, rescind, cancel or terminate
the Purchase Agreement or the General Terms Agreement in respect of the Aircraft
or the Engines without the prior written consent of Assignor.

            Section 11. EXECUTION; COUNTERPARTS, ETC. This Assignment is
executed by Assignor and Assignee concurrently with the execution and delivery
of the Lease. This Assignment may be executed by the parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original,
and all of which counterparts, taken together, shall constitute one and the same
instrument. The section headings in this Assignment are for convenience of
reference only and shall not modify, define, expand or limit any of the terms or
provisions hereof.

            Section 12. CONFIDENTIAL TREATMENT. Assignee agrees that it will not
disclose to any third party the terms of the Purchase Agreement or the General
Terms Agreement except (i) as required by applicable law or governmental
regulation, (ii) in connection with the financing of the Aircraft, (iii) as
permitted under Section 8 of the Participation Agreement as if this Assignment
were specifically referred to therein, (iv) with the consent of Assignor,
Manufacturer and the Engine Manufacturer (as the case may be) or (v) in
connection with any sale or lease of the Aircraft. Assignee further agrees that
in connection with any disclosures made as contemplated by clauses (ii) (except
in connection with the financing contemplated by the Participation Agreement),
(iii) (except as to clauses (C) and (E) and (F) of Section 8 of the

<PAGE>

Participation Agreement) or (iv) of the preceding sentence, Assignee shall
instruct the entity to which such information is disclosed to treat such
information as confidential on the terms set forth in this Section 12.

            Section 13. ASSIGNMENT TO MORTGAGEE. The right, title and interest
of Assignee in and to this Assignment has been assigned to and is subject to a
security interest in favor of Wilmington Trust Company, as Mortgagee under the
Trust Indenture, for the benefit of the Noteholders and the Indenture
Indemnitees referred to in such Trust Indenture, all to the extent provided in
such Trust Indenture. Assignor hereby consents to such assignment and to the
creation of such security interest in and to this Assignment.

            SECTION 14. GOVERNING LAW. THIS ASSIGNMENT SHALL IN ALL RESPECTS BE
GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, INCLUDING ALL MATTERS OF
CONSTRUCTION, VALIDITY AND PERFORMANCE, WITHOUT GIVING EFFECT TO PRINCIPLES OF
CONFLICTS OF LAWS.

                     [This space intentionally left blank.]

<PAGE>

            IN WITNESS WHEREOF, the parties hereto have caused this Purchase
Agreement and Engine Warranties Assignment ___ to be duly executed as of the day
and year first above written.

                                             CONTINENTAL AIRLINES, INC.

                                             By_________________________________
                                               Name:
                                               Title:

                                             WELLS FARGO BANK NORTHWEST,
                                             NATIONAL ASSOCIATION,
                                               not in its individual capacity
                                               but solely as Owner Trustee

                                             By_________________________________
                                               Name:
                                               Title:

<PAGE>

            The undersigned, as Mortgagee for the benefit of the Note Holders
and Indenture Indemnitees and as assignee of, and holder of a security interest
in, the estate, right, title and interest of Assignee in and to the foregoing
Assignment pursuant to the terms of the Trust Indenture agrees to the terms of
the foregoing Assignment and agrees that its rights and remedies under the Trust
Indenture shall be subject to the terms and conditions of the foregoing
Assignment, including Sections 4 and 5 therein, and of the Purchase Agreement
and the General Terms Agreement.

                                             WILMINGTON TRUST COMPANY,
                                               as Mortgagee

                                              By________________________________
                                               Name:
                                               Title:

<PAGE>

                     MANUFACTURER CONSENT AND AGREEMENT ___

            The undersigned, THE BOEING COMPANY, a Delaware corporation, hereby
acknowledges notice of and consents to all of the terms of Purchase Agreement
and Engine Warranties Assignment ___ (herein called the "Assignment") (the
defined terms therein being hereinafter used with the same meanings unless
otherwise defined herein) between Continental Airlines, Inc., as Assignor, and
Wells Fargo Bank Northwest, National Association, as Owner Trustee, as Assignee,
and hereby confirms to Assignee that: (i) all representations, warranties,
indemnities and agreements of Manufacturer under the Purchase Agreement with
respect to the Aircraft shall inure to the benefit of Assignee to the same
extent as if originally named the "Buyer" therein, except as provided by Section
2 of the Assignment; (ii) Assignee shall not be liable for any of the
obligations or duties of Assignor under the Purchase Agreement, nor shall the
Assignment give rise to any duties or obligations whatsoever on the part of
Assignee owing to Manufacturer, except as provided in Section 4 of the
Assignment; (iii) Manufacturer consents to the grant of a security interest in
the Aircraft pursuant to the Trust Indenture by Assignee and agrees that the
Assignment constitutes an agreement by Assignee as required by Article 10.2 of
the Purchase Agreement; and (iv) Manufacturer will continue to pay to Assignor
or its order all payments that Manufacturer may be required to make in respect
of the Aircraft under the Purchase Agreement unless and until Manufacturer shall
have received written notice from Assignee or Mortgagee addressed to its Vice -
President - Contracts at P.O. Box 3707, Mail Code 21-34, Seattle, Washington
98124-2207, if by mail, or to (425) 237-1706, if by facsimile, that a Lease
Event of Default has occurred and is continuing or the Lease has been terminated
(unless Assignor or its designee has acquired ownership of the Aircraft pursuant
to the Operative Agreements and Assignor has given written notice thereof to
Manufacturer), whereupon Manufacturer will not be required to make further
inquiry into the content of such notice and will make any and all payments that
it may be required thereafter to make in respect of the Aircraft under the
Purchase Agreement and the right to receive that has been assigned under the
Assignment, directly to Assignee at its address at 79 South Main Street, Third
Floor, Salt Lake City, Utah 84111, Attn: Corporate Trust Department (or, so long
as the Trust Indenture has not been discharged, directly to Mortgagee at its
address at Rodney Square North, 1100 North Market Street, Wilmington, Delaware

<PAGE>

19890, Attn: Corporate Trust Administration), unless and until Manufacturer
shall have received notice in writing from Assignee or Mortgagee that no Lease
Event of Default is continuing, whereupon Manufacturer shall make all payments
that Manufacturer may be required to make in respect of the Aircraft under the
Purchase Agreement to Assignor or its order, as aforesaid.

            Manufacturer hereby represents and warrants that: (i) Manufacturer
is a corporation duly organized, validly existing and in good standing under the
laws of the State of Delaware; (ii) the making and performance of the Purchase
Agreement and this Manufacturer Consent and Agreement ___ have been duly
authorized by all necessary corporate action on the part of Manufacturer, do not
require any stockholder approval and do not contravene Manufacturer's Restated
Certificate of Incorporation or By-laws or any indenture, credit agreement or
other contractual agreement to which Manufacturer is a party or by which it is
bound and the making of the Purchase Agreement and this Manufacturer Consent and
Agreement ___, the giving of the warranty obligations thereunder, do not, as to
such making or giving, contravene any law binding on Manufacturer; and (iii) the
Purchase Agreement constituted, as of the date thereof and at all times
thereafter to and including the date of this Manufacturer Consent and Agreement
___, and this Manufacturer Consent and Agreement ___ constitutes, binding
obligations of Manufacturer enforceable against Manufacturer in accordance with
their respective terms subject to (A) the limitations of applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the rights of
creditors generally and (B) general principles of equity (regardless of whether
such enforceability is considered in a proceeding in equity or at law), which
principles do not make the remedies available at law or in equity with respect
to the Purchase Agreement and this Manufacturer Consent and Agreement ___
inadequate for the practical realization of the benefits intended to be provided
thereby. It is understood that the execution of this Manufacturer Consent and
Agreement ___ by Manufacturer is subject to the condition that, concurrently
with the delivery of the Aircraft to Assignee, Assignee shall lease the Aircraft
to Assignor under the Lease.

<PAGE>

            THIS MANUFACTURER CONSENT AND AGREEMENT ___ SHALL IN ALL RESPECTS BE
GOVERNED BY THE INTERNAL LAWS OF THE STATE OF WASHINGTON, INCLUDING ALL MATTERS
OF CONSTRUCTION, VALIDITY AND PERFORMANCE, WITHOUT REFERENCE TO CONFLICTS OF
LAWS PRINCIPLES.

            Dated as of ____________.

                                             THE BOEING COMPANY

                                             By_________________________________
                                               Name:
                                               Title:

<PAGE>

                 ENGINE MANUFACTURER CONSENT AND AGREEMENT ___

            The undersigned, CFM INTERNATIONAL INC., a Delaware corporation,
hereby acknowledges notice of and consents to all of the terms of Purchase
Agreement and Engine Warranties Assignment ___ (herein called the "Assignment")
(the defined terms therein being hereinafter used with the same meanings unless
otherwise defined herein) between Continental Airlines, Inc., as Assignor, and
Wells Fargo Bank Northwest, National Association, as Owner Trustee, as Assignee.
Under the General Terms Agreement, Engine Manufacturer has agreed to support
certain CFM Model 56-7B26 engines and spare parts therefor purchased by Assignor
from Engine Manufacturer, as installed on certain Boeing Model 737 aircraft.
Engine Manufacturer hereby confirms to Assignor and Assignee that the Engine
Warranties, as and to the extent that such relate to the Engines, shall inure to
the benefit of Assignee (and, so long as the Trust Indenture has not been
discharged, Mortgagee) to the same extent as if originally named "Airline" in
the General Terms Agreement and to the benefit of Assignor (but only to the
extent provided for in the Assignment) in each case subject to the terms and
conditions of the Assignment; provided, that Engine Manufacturer shall not owe
any liability or obligation under the Engine Warranties more than once in total.

            Engine Manufacturer represents and warrants that:

            1. It is a corporation duly organized and validly existing in good
standing under the laws of the State of Delaware;

            2. The making and performance of this Engine Manufacturer Consent
and Agreement ___ in accordance with its terms have been duly authorized by all
necessary corporate action on the part of Engine Manufacturer, do not require
any stockholder approval and do not contravene its Certificate of Incorporation
or by-laws or any debenture, credit agreement or other contractual agreement to
which Engine Manufacturer is a party or by which it is bound or any law binding
on Engine Manufacturer;

            3. The making and performance of the Engine Warranties in accordance
with their terms have been duly authorized by all necessary corporate action on
the part of Engine Manufacturer, do not require any stockholder approval and do
not contravene Engine Manufacturer's Certificate of Incorporation or by-laws or

<PAGE>

any debenture, credit agreement or other contractual agreement to which Engine
Manufacturer is a party or by which it is bound, and do not, as to the making
thereof, contravene any law binding on Engine Manufacturer, and to the best of
its knowledge, do not as to the performance thereof contravene any law binding
on Engine Manufacturer; and

            4. The Engine Warranties constituted as of the date on which they
were made and at all times thereafter to and including the date of this Engine
Manufacturer Consent and Agreement ___, and this Engine Manufacturer Consent and
Agreement ___ constitute binding obligations of Engine Manufacturer enforceable
against Engine Manufacturer in accordance with their respective terms subject
to:

          (a)  the limitations of applicable bankruptcy, insolvency,
               reorganization, moratorium or similar laws affecting the rights
               of creditors generally; and

          (b)  general principles of equity (regardless of whether such
               enforceability is considered in a proceeding in equity or at
               law).

                     [This space intentionally left blank.]

<PAGE>

            THIS ENGINE MANUFACTURER CONSENT AND AGREEMENT ___ SHALL IN ALL
RESPECTS BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, INCLUDING ALL MATTERS
OF CONSTRUCTION, VALIDITY AND PERFORMANCE, WITHOUT GIVING EFFECT TO PRINCIPLES
OF CONFLICTS OF LAWS.

            Dated as of _____________.

                                             CFM INTERNATIONAL, INC.

                                             By_________________________________
                                               Name:
                                               Title:

<PAGE>

                                EXHIBIT A-4-II to
                             NOTE PURCHASE AGREEMENT

              FORM OF AIRCRAFT PURCHASE AGREEMENT ASSIGNMENT - GE

   -------------------------------------------------------------------------
             CONFIDENTIAL: SUBJECT TO RESTRICTIONS ON DISSEMINATION
   SET FORTH IN SECTION 8 OF THE PARTICIPATION AGREEMENT (AS DEFINED HEREIN)
   -------------------------------------------------------------------------

           PURCHASE AGREEMENT AND ENGINE WARRANTIES ASSIGNMENT [___]

            PURCHASE AGREEMENT AND ENGINE WARRANTIES ASSIGNMENT [___], dated as
of [___________], between Continental Airlines, Inc., a Delaware corporation
("Assignor"), and Wells Fargo Bank Northwest, National Association, a national
banking association, not in its individual capacity but solely as Owner Trustee
("Assignee") under Trust Agreement [___] dated as of [___________] (the "Trust
Agreement"), between the Owner Participant named therein and Assignee, in its
individual capacity, and otherwise not in its individual capacity but solely as
trustee thereunder.

            Assignor and Manufacturer (as such term and other capitalized terms
are hereinafter defined) are parties to the Purchase Agreement, providing, among
other things, for the manufacture and sale by Manufacturer or Manufacturer's
wholly owned subsidiary to Assignor of certain aircraft, engines and related
equipment, including the Aircraft. Assignor and Engine Manufacturer are parties
to the General Terms Agreement, containing, among other terms and conditions,
the Engine Warranties.

            Assignee wishes to acquire the Aircraft and Assignor, on the terms
and conditions hereinafter set forth, is willing to assign to Assignee certain
of Assignor's rights and interests under the Purchase Agreement and the General
Terms Agreement and Assignee is willing to accept such assignment, as
hereinafter set forth.

                                   AGREEMENTS

            The parties hereto agree as follows:

            Section 1. DEFINITIONS. For all purposes of this Assignment, except
as otherwise expressly provided or unless the context otherwise requires, the
following terms shall have the following meanings:

            AIRCRAFT - The Boeing Model [767-424] [767-224] [777-224] aircraft
bearing Manufacturer's Serial No. [______] and U.S. Registration No.

<PAGE>

N[_________], to be financed pursuant to the Participation Agreement, including
the Engines.

            AGTA - The Aircraft General Terms Agreement AGTA-CAL between the
Manufacturer and Lessee, dated October 10, 1997.

            ENGINES - Two General Electric Company [CF6-80C2B4F] [CF6-80C2B8F]
[GE90] series engines bearing manufacturer's serial numbers [______] and
[______], respectively, installed on the Aircraft.

            ENGINE MANUFACTURER - General Electric Company, a New York
corporation, and its successors and assigns.

            ENGINE WARRANTIES - Engine Manufacturer's "New Engine Warranty,"
"New Parts Warranty," "Ultimate Life Warranty" and "Campaign Change Warranty,"
as set forth in the Engine Manufacturer's Engine Product Support Plan which
forms a part of the General Terms Agreement, and as limited by the applicable
terms of the General Terms Agreement and such Engine Product Support Plan.

            GENERAL TERMS AGREEMENT - The Amended and Restated General Terms
Agreement No. 6-8057, dated as of November 1, 1994, by and between Engine
Manufacturer and Assignor, including the "Engine Product Support Plan" at
Exhibit B thereto, insofar as such Engine Product Support Plan relates to the
Engine Warranties, but excluding any and all letter agreements attached thereto,
to the extent that such General Terms Agreement and such Exhibit relate to the
Engine Warranties, as such General Terms Agreement may hereafter be amended,
supplemented and modified to the extent permitted by the terms of this
Assignment to the extent relating to the Engines.

            LEASE - The Lease Agreement [___], dated as of [___________], as at
any time amended, supplemented and modified, between Assignee, as lessor, and
Assignor, as lessee, providing for the lease of the Aircraft.

            MANUFACTURER - The Boeing Company, a Delaware corporation, and its
successors and assigns.

            PARTICIPATION AGREEMENT - The Participation Agreement [___], dated
as of [___________], among Assignor, the Participants, Assignee and Mortgagee,
as at any time amended, supplemented and modified.

<PAGE>

            PURCHASE AGREEMENT - Purchase Agreement No. [2060, dated as of
October 10, 1997,] [2211, dated as of November 16, 1998] [2061 (formerly known
as Purchase Agreement No. 1785), dated as of October 10, 1997] between
Manufacturer and Assignor, providing, among other things, for the manufacture
and sale by Manufacturer to Assignor of certain Boeing Model [767-424] [767-224]
[777-224] aircraft (including the Aircraft) and including as part thereof
Exhibits A, B, BFE1, EE1 and SLP1 thereto and the AGTA (as and to the extent
incorporated by reference in the Purchase Agreement and including Exhibit C to
the AGTA and excluding the other Exhibits and Letter Agreements hereto), but
excluding all other exhibits and letter and supplemental agreements, to the
extent that such Purchase Agreement and such Exhibits relate to the Aircraft, as
such Purchase Agreement may hereafter be amended, supplemented and modified to
the extent permitted by the terms of this Assignment.

            Capitalized terms used but not defined herein shall have the
respective meanings set forth or incorporated by reference, and shall be
construed and interpreted in the manner described, in the Participation
Agreement.

            Section 2. ASSIGNMENT. Assignor does hereby sell, assign, transfer
and set over unto Assignee and its successors and permitted assigns all of
Assignor's rights and interests in and to the Purchase Agreement, as and only to
the extent that the same relates to the Aircraft, and in and to the General
Terms Agreement, as and only to the extent that the Engine Warranties contained
therein relate to the Engines, except to the extent reserved below, including
without limitation in such assignment (a) all claims for damages in respect of
the Aircraft and the Engines arising as a result of any default by Manufacturer
under the Purchase Agreement or Engine Manufacturer or any other vendor or
supplier of other parts or equipment installed on or in the Aircraft, including
without limitation all warranty service life policies, aircraft performance
guarantees and indemnity provisions contained in the Purchase Agreement and the
Engine Warranties, and all claims arising thereunder, in respect of the Aircraft
and the Engines, (b) any and all rights of Assignor to compel performance of the
terms of the Purchase Agreement in respect of the Aircraft and the Engine
Warranties in respect of the Engines and (c) the right to purchase and take
title to the Aircraft pursuant to the Purchase Agreement; reserving to Assignor,
however, with respect to the Aircraft and each Engine, (i) all rights to receive

<PAGE>

any credits due to Assignor with respect to the purchase price of the Aircraft
pursuant to the Purchase Agreement and of the Engines pursuant to the General
Terms Agreement, (ii) all of Assignor's rights and interests in or arising out
of any payments or deposits made relating to the Aircraft or to be made by
Assignor on amounts credited or to be credited or paid or to be paid by the
Manufacturer to the Assignor in respect of the Aircraft and (iii) so long and
only so long as the Aircraft and each Engine shall be subject to the Lease and
no Lease Event of Default shall have occurred and be continuing thereunder, the
rights (A) to demand, accept and retain all rights in and to all property (other
than the Aircraft), data and services that Manufacturer or Engine Manufacturer
is obligated to provide or does provide pursuant to the Purchase Agreement or
the General Terms Agreement, as the case may be, and (B) to obtain services,
training, data and demonstration and test flights pursuant to the Purchase
Agreement or the General Terms Agreement, as the case may be.

            Assignee hereby accepts such assignment subject to the terms hereof.
Assignor has furnished a true copy of the Purchase Agreement and a true copy of
the General Terms Agreement to Assignee and has specifically directed Assignee's
attention to Section 12 of Part 2, Section 5 of Part 3, Section 6 of Part 5 and
Section 3 of Part 6 of Exhibit C to the AGTA.

            Section 3. EXERCISE OF RIGHTS OF "CUSTOMER" UNDER PURCHASE AGREEMENT
AND OF "AIRLINE" UNDER GENERAL TERMS AGREEMENT. Notwithstanding the foregoing,
if and so long as no Lease Event of Default shall have occurred and be
continuing, Assignee authorizes Assignor, to the exclusion of Assignee, during
the Term, to exercise in Assignor's name all rights and powers of the "Customer"
in respect of the Aircraft under the Purchase Agreement and of the "Airline" in
respect of each Engine under the General Terms Agreement, and of Assignee in
respect of a default by any vendor or supplier of parts and equipment (as
specified in clause (a) of Section 2 above) and to retain any recovery or
benefit resulting from the enforcement of any warranty or indemnity under the
Purchase Agreement or the General Terms Agreement in respect of the Aircraft or
each Engine, as the case may be, except that Assignor may not enter into any
change order or other amendment, modification or supplement to the Purchase
Agreement without the written consent or countersignature of Assignee if such
change order, amendment, modification or supplement would (i) result in any

<PAGE>

rescission, cancellation or termination of the Purchase Agreement in respect of
the Aircraft or (ii) materially diminish the rights assigned hereunder to
Assignee. Assignee agrees that, as between Assignee and Manufacturer or Engine
Manufacturer, as the case may be (and without affecting Assignor's duties or
obligations under the Participation Agreement or the Lease), neither
Manufacturer nor Engine Manufacturer, as the case may be, shall be deemed to
have knowledge of any Lease Default, Lease Event of Default, declaration of
default or the discontinuance or remedy thereof or the Aircraft or either Engine
being no longer subject to the Lease or any change in the authority of Assignor
or Assignee, as the case may be, to exercise any of the rights established
hereunder unless and until Manufacturer shall have received written notice
thereof from Assignee or Mortgagee addressed to its Vice President - Contracts
at P.O. Box 3707, Mail Code 21-34, Seattle, Washington 98124-2207, if by mail,
or to (425) 237-1706, if by facsimile, or, in the case of Engine Manufacturer,
Engine Manufacturer shall have received written notice thereof from Assignee or
Mortgagee addressed to General Electric Company, GE Aircraft Engines, One Neuman
Way, Cincinnati, Ohio 45215-6301, Attention: Director, Commercial Contracts, if
by facsimile. So long as Manufacturer and Engine Manufacturer act in good faith,
Manufacturer and Engine Manufacturer may rely conclusively on any such notice
without inquiring as to the accuracy of, or the entitlement of the party to
give, such notice.

            The Engine Manufacturer shall not be deemed to have knowledge of the
replacement of an Engine with another [CF6-80C2B4F] [CF6-80C2B8F] [GE90][
engine, until the Engine Manufacturer has received written notice thereof. Such
notice shall include the serial number of the Engine being replaced, as well as
the serial number of the replacement Engine and shall be sent to: Lease Pool
Manager, Customer Support Operation, GE Aircraft Engines, 111 Merchant Street,
Room 450, Cincinnati, Ohio 45246.

            Section 4. CERTAIN AGREEMENTS. It is expressly agreed that, anything
herein contained to the contrary notwithstanding:

          (a) Assignor shall at all times remain liable (i) to Manufacturer
     under the Purchase Agreement to perform all the duties and obligations of
     the "Customer" thereunder and (ii) to Engine Manufacturer under the General
     Terms Agreement to perform all the duties and obligations of the "Airline"

<PAGE>

     thereunder, in each case to the same extent as if this Assignment had not
     been executed,

          (b) the exercise by Assignee of any of the rights assigned hereunder
     shall not release Assignor from any of its duties or obligations to
     Manufacturer under the Purchase Agreement or to Engine Manufacturer under
     the General Terms Agreement except to the extent that such exercise by
     Assignee shall constitute performance of such duties and obligations, and

          (c) except as provided in the next sentence, none of Assignee,
     Mortgagee or any Participant shall have any obligation or liability under
     the Purchase Agreement or the General Terms Agreement by reason of, or
     arising out of, this Assignment or be obligated to perform any of the
     obligations or duties of Assignor under the Purchase Agreement or the
     General Terms Agreement or to make any payment thereunder or to make any
     inquiry as to the sufficiency of any payment received by any of them or to
     present or file any claim or to take any other action to collect or enforce
     any claim for any payment assigned hereunder.

Anything contained in this Assignment, the Consent and Agreement or the Engine
Consent and Agreement to the contrary notwithstanding, but without in any way
releasing Assignor from any of its duties or obligations under the Purchase
Agreement, the General Terms Agreement or this Assignment, Assignee and
Mortgagee confirm for the benefit of Manufacturer and Engine Manufacturer,
respectively, that, insofar as the provisions of the Purchase Agreement or the
Engine Warranties relate to the Aircraft or the Engines, as the case may be, in
exercising any rights under the Purchase Agreement or the Engine Warranties, or
in making any claim with respect to the Aircraft or other goods and services
delivered or to be delivered pursuant to the Purchase Agreement or the Engine
Warranties, the terms and conditions of the Purchase Agreement including,
without limitation, the Disclaimer and Release and the Exclusion of
Consequential and Other Damages provisions of Sections 12.1 through 12.3 of
Exhibit C to the AGTA and the Engine Warranties, including without limitation
Exhibit B to the General Terms Agreement shall apply to, and be binding upon,
Assignee and Mortgagee to the same extent as Assignor.

            Section 5. PRESERVATION OF RIGHTS. Nothing contained in this
Assignment shall in any way diminish or limit the provisions of Assignor's

<PAGE>

indemnity in Section 9 of the Participation Agreement with respect to any
liability of Assignee to Manufacturer in any way relating to or arising out of
the Purchase Agreement. Nothing contained in this Assignment shall subject
Manufacturer or Engine Manufacturer to any obligation or liability to which it
would not otherwise be subject under the Purchase Agreement or under the General
Terms Agreement, as the case may be, or modify in any respect the contract
rights of Manufacturer or Engine Manufacturer thereunder, except as may be
provided in the Consent and Agreement and the Engine Consent and Agreement, or
require Manufacturer to divest itself of title to or possession of the Aircraft
or other goods and services until delivery thereof and payment therefor as
provided in the Purchase Agreement or subject Manufacturer or Engine
Manufacturer to any multiple or duplicative liability or obligation under the
Purchase Agreement or the General Terms Agreement, as the case may be. No
further assignment of the Engine Warranties, including without limitation
assignments for security purposes (other than under the Trust Indenture), are
permitted without the express written consent of Engine Manufacturer.

            Section 6. APPOINTMENT OF ATTORNEY. Effective at any time when a
Lease Event of Default shall have occurred and be continuing, (i) unless
Assignee and Mortgagee (so long as the Lien of the Trust Indenture has not been
discharged), in their sole discretion, shall notify Manufacturer or Engine
Manufacturer, as the case may be, to the contrary, the authorization given to
Assignor under Section 3 hereof to enforce such rights and claims shall
henceforth cease to be effective and Assignee and its successors and permitted
assigns shall, to the exclusion of Assignor, be entitled to assert and enforce
such rights and claims as substitute party plaintiff or otherwise, and Assignor
shall, at the request of Assignee or its successors or permitted assigns and at
Assignor's expense, cooperate with and take such action as is reasonably
necessary to enable Assignee and its successors and permitted assigns to enforce
such rights and claims, and (ii) Assignor does hereby constitute Assignee, its
successors and permitted assigns, Assignor's true and lawful attorney,
irrevocably, with full power (in the name of Assignor or otherwise) to ask,
require, demand, receive, compound and give acquittance for any and all monies
and claims for monies due and to become due under, or arising out of, the
Purchase Agreement in respect of the Aircraft or the Engine Warranties in

<PAGE>

respect of the Engines, as the case may be, to the extent that the same have
been assigned by this Assignment and, for such period as Assignee may exercise
rights with respect thereto under this Assignment, to endorse any checks or
other instruments or orders in connection therewith and to file any claims or
take any action or institute (or, if previously commenced, assume control of)
any proceeding and to obtain any recovery in connection therewith which Assignee
may deem to be necessary or advisable in the premises.

            Section 7. OTHER ACTION. Assignor agrees that, at Assignor's sole
cost and expense, at any time and from time to time, upon the written request of
Assignee or, so long as the Lien of the Trust Indenture has not been discharged,
Mortgagee, Assignor will promptly and duly execute and deliver any and all such
further instruments and documents and take such further action as Assignee or,
so long as the Lien of the Trust Indenture has not been discharged, Mortgagee,
may reasonably request in order to obtain the full benefits of this Assignment
and of the rights and powers herein granted.

            Section 8. ASSIGNOR'S REPRESENTATIONS AND WARRANTIES. Assignor does
hereby represent and warrant that the Purchase Agreement and the General Terms
Agreement are in full force and effect as to Assignor and are enforceable
against Assignor in accordance with their respective terms. Assignor does hereby
further represent and warrant that Assignor has, with the authorized execution
of the Consent and Agreement and the Engine Consent and Agreement, (i) received
all necessary consents to the assignment and transfer contemplated herein
(including without limitation the assignment and transfer contemplated herein of
Assignor's rights under the Purchase Agreement and the General Terms Agreement)
and (ii) assuming that the Consent and Agreement and the Engine Consent and
Agreement are in full force and effect, such consents are in full force and
effect and Assignor further represents and warrants that Assignor has not
assigned (except as assigned hereby) or pledged (except pursuant to the
[___________________________] between Lessee and Manufacturer, the Lien of which
will have been released at or prior to the delivery of this Agreement), and
hereby covenants that it will not during the Term assign (except as assigned
hereby) or pledge so long as this Assignment shall remain in effect, the whole
or any part of the rights hereby assigned or any of its rights with respect to
the Aircraft under the Purchase Agreement or with respect to the Engines under
the General Terms Agreement not assigned hereby to anyone other than Assignee.

<PAGE>

            Section 9. PAYMENTS. Notwithstanding this Assignment and anything
herein to the contrary, all amounts that Manufacturer or Engine Manufacturer is
obligated to pay to Assignor under the Purchase Agreement with respect to the
Aircraft or under the General Terms Agreement with respect to the Engines,
including, without limitation, resulting from the enforcement of any warranty,
covenant, representation, indemnity or product support agreement thereunder or
the enforcement or exercise of any right or power thereunder or hereunder (in
the case of Manufacturer, a "Manufacturer Payment," and in the case of Engine
Manufacturer, an "Engine Manufacturer Payment") (excluding, however, from
Manufacturer Payments and Engine Manufacturer Payments any amounts Manufacturer
is obligated to pay to Assignor with respect to the rights reserved to Assignor
in Section 2 hereof), will be payable and applicable as follows: all
Manufacturer Payments and Engine Manufacturer Payments shall be paid to Assignor
unless and until Manufacturer or Engine Manufacturer, as the case may be, shall
have received written notice as set forth in Section 3 hereof from Assignee or
Mortgagee that a Lease Event of Default has occurred and is continuing,
whereupon Manufacturer or Engine Manufacturer, as the case may be, will, until
Manufacturer or Engine Manufacturer, as the case may be, shall have received
written notice from Assignee or Mortgagee that all Lease Events of Default have
been cured or waived, make any and all such payments directly to Assignee (or,
so long as the Trust Indenture has not been discharged and Manufacturer or
Engine Manufacturer, as the case may be, shall have received notice thereof, to
Mortgagee). Any amounts received by Assignee pursuant to the immediately
preceding sentence shall, to the extent not theretofore applied in satisfaction
of sums owing to Assignee in accordance with the terms of the Operative
Agreements, be held and invested as provided in Section 4.4 of the Lease.

            Section 10. ASSIGNEE'S AGREEMENT. Assignee agrees that, during the
Term, except as otherwise contemplated by Section 2 hereof and unless a Lease
Event of Default shall have occurred and be continuing, it will not enter into
any agreement that would amend, modify, supplement, rescind, cancel or terminate
the Purchase Agreement or the General Terms Agreement in respect of the Aircraft
or the Engines without the prior written consent of Assignor.

            Section 11. EXECUTION; COUNTERPARTS, ETC. This Assignment is
executed by Assignor and Assignee concurrently with the execution and delivery
of the Lease. This Assignment may be executed by the parties hereto in separate

<PAGE>

counterparts, each of which when so executed shall be deemed to be an original,
and all of which counterparts, taken together, shall constitute one and the same
instrument. The section headings in this Assignment are for convenience of
reference only and shall not modify, define, expand or limit any of the terms or
provisions hereof.

            Section 12. CONFIDENTIAL TREATMENT. Assignee agrees that it will not
disclose to any third party the terms of the Purchase Agreement or the General
Terms Agreement except (i) as required by applicable law or governmental
regulation, (ii) in connection with the financing of the Aircraft, (iii) as
permitted under Section 8 of the Participation Agreement as if this Assignment
were specifically referred to therein, (iv) with the consent of Assignor,
Manufacturer and the Engine Manufacturer (as the case may be) or (v) in
connection with any sale or lease of the Aircraft. Assignee further agrees that
in connection with any disclosures made as contemplated by clauses (ii) (except
in connection with the financing contemplated by the Participation Agreement),
(iii) (except as to clauses (C) and (E) and (F) of Section 8 of the
Participation Agreement) or (iv) of the preceding sentence, Assignee shall
instruct the entity to which such information is disclosed to treat such
information as confidential on the terms set forth in this Section 12.

            Section 13. ASSIGNMENT TO MORTGAGEE. The right, title and interest
of Assignee in and to this Assignment has been assigned to and is subject to a
security interest in favor of Wilmington Trust Company, as Mortgagee under the
Trust Indenture, for the benefit of the Noteholders and the Indenture
Indemnitees referred to in such Trust Indenture, all to the extent provided in
such Trust Indenture. Assignor hereby consents to such assignment and to the
creation of such security interest in and to this Assignment.

            SECTION 14. GOVERNING LAW. THIS ASSIGNMENT SHALL IN ALL RESPECTS BE
GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, INCLUDING ALL MATTERS OF
CONSTRUCTION, VALIDITY AND PERFORMANCE, WITHOUT GIVING EFFECT TO PRINCIPLES OF
CONFLICTS OF LAWS.

                     [This space intentionally left blank.]

<PAGE>

            IN WITNESS WHEREOF, the parties hereto have caused this Purchase
Agreement and Engine Warranties Assignment [___] to be duly executed as of the
day and year first above written.

                                             CONTINENTAL AIRLINES, INC.

                                             By_________________________________
                                               Name:
                                               Title:

                                             WELLS FARGO BANK NORTHWEST,
                                             NATIONAL ASSOCIATION,
                                               not in its individual capacity
                                               but solely as Owner Trustee

                                             By_________________________________
                                               Name:
                                               Title:

<PAGE>

            The undersigned, as Mortgagee for the benefit of the Note Holders
and Indenture Indemnitees and as assignee of, and holder of a security interest
in, the estate, right, title and interest of Assignee in and to the foregoing
Assignment pursuant to the terms of the Trust Indenture agrees to the terms of
the foregoing Assignment and agrees that its rights and remedies under the Trust
Indenture shall be subject to the terms and conditions of the foregoing
Assignment, including Sections 4 and 5 therein, and of the Purchase Agreement
and the General Terms Agreement.

                                             WILMINGTON TRUST COMPANY,
                                               as Mortgagee

                                             By_________________________________
                                               Name:
                                               Title:

<PAGE>

                       MANUFACTURER CONSENT AND AGREEMENT

            The undersigned, THE BOEING COMPANY, a Delaware corporation, hereby
acknowledges notice of and consents to all of the terms of Purchase Agreement
and Engine Warranties Assignment [___] (herein called the "Assignment") (the
defined terms therein being hereinafter used with the same meanings unless
otherwise defined herein) between Continental Airlines, Inc., as Assignor, and
Wells Fargo Bank Northwest, National Association, as Owner Trustee, as Assignee,
and hereby confirms to Assignee that: (i) all representations, warranties,
indemnities and agreements of Manufacturer under the Purchase Agreement with
respect to the Aircraft shall inure to the benefit of Assignee to the same
extent as if originally named the "Customer" therein, except as provided by
Section 2 of the Assignment; (ii) Assignee shall not be liable for any of the
obligations or duties of Assignor under the Purchase Agreement, nor shall the
Assignment give rise to any duties or obligations whatsoever on the part of
Assignee owing to Manufacturer, except as provided in Section 4 of the
Assignment; (iii) Manufacturer consents to the grant of a security interest in
the Aircraft pursuant to the Trust Indenture by Assignee and agrees that the
Assignment constitutes an agreement by Assignee as required by Article 9.2 of
the AGTA; and (iv) Manufacturer will continue to pay to Assignor or its order
all payments that Manufacturer may be required to make in respect of the
Aircraft under the Purchase Agreement unless and until Manufacturer shall have
received written notice from Assignee or Mortgagee addressed to its Vice -
President - Contracts at P.O. Box 3707, Mail Code 21-34, Seattle, Washington
98124-2207, if by mail, or to (425) 237-1706, if by facsimile, that a Lease
Event of Default has occurred and is continuing, whereupon Manufacturer will not
be required to make further inquiry into the content of such notice and will
make any and all payments that it may be required thereafter to make in respect
of the Aircraft under the Purchase Agreement and the right to receive that has
been assigned under the Assignment, directly to Assignee at its address at 79
South Main Street, Third Floor, Salt Lake City, Utah 84111, Attn: Corporate
Trust Department (or, so long as the Trust Indenture has not been discharged,
directly to Mortgagee at its address at Rodney Square North, 1100 North Market
Street, Wilmington, Delaware 19890, Attn: Corporate Trust Administration),
unless and until Manufacturer shall have received notice in writing from

<PAGE>

Assignee or Mortgagee that no Lease Event of Default is continuing, whereupon
Manufacturer shall make all payments that Manufacturer may be required to make
in respect of the Aircraft under the Purchase Agreement to Assignor or its
order, as aforesaid.

            Manufacturer hereby represents and warrants that: (i) Manufacturer
is a corporation duly organized, validly existing and in good standing under the
laws of the State of Delaware; (ii) the making and performance of the Purchase
Agreement and this Manufacturer Consent and Agreement [___] have been duly
authorized by all necessary corporate action on the part of Manufacturer, do not
require any stockholder approval and do not contravene Manufacturer's Restated
Certificate of Incorporation or By-laws or any indenture, credit agreement or
other contractual agreement to which Manufacturer is a party or by which it is
bound and the making of the Purchase Agreement and this Manufacturer Consent and
Agreement [___], the giving of the warranty obligations thereunder, do not, as
to such making or giving, contravene any law binding on Manufacturer; and (iii)
the Purchase Agreement constituted, as of the date thereof and at all times
thereafter to and including the date of this Manufacturer Consent and Agreement
[___], and this Manufacturer Consent and Agreement [___] constitutes, binding
obligations of Manufacturer enforceable against Manufacturer in accordance with
their respective terms subject to (A) the limitations of applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the rights of
creditors generally and (B) general principles of equity (regardless of whether
such enforceability is considered in a proceeding in equity or at law), which
principles do not make the remedies available at law or in equity with respect
to the Purchase Agreement and this Manufacturer Consent and Agreement [___]
inadequate for the practical realization of the benefits intended to be provided
thereby. It is understood that the execution of this Manufacturer Consent and
Agreement [___] by Manufacturer is subject to the condition that, concurrently
with the delivery of the Aircraft to Assignee, Assignee shall lease the Aircraft
to Assignor under the Lease.

<PAGE>

            THIS MANUFACTURER CONSENT AND AGREEMENT [___] SHALL IN ALL RESPECTS
BE GOVERNED BY THE INTERNAL LAWS OF THE STATE OF WASHINGTON, INCLUDING ALL
MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, WITHOUT REFERENCE TO
CONFLICTS OF LAWS PRINCIPLES.

            Dated as of _________ __, ____.

                                             THE BOEING COMPANY

                                             By_________________________________
                                               Name:
                                               Title:
                                               MSN:  ______

<PAGE>

                   ENGINE MANUFACTURER CONSENT AND AGREEMENT

            The undersigned, GENERAL ELECTRIC COMPANY, a New York corporation,
hereby acknowledges notice of and consents to all of the terms of Purchase
Agreement and Engine Warranties Assignment [___] (herein called the
"Assignment") (the defined terms therein being hereinafter used with the same
meanings unless otherwise defined herein) between Continental Airlines, Inc., as
Assignor, and Wells Fargo Bank Northwest, National Association, as Owner
Trustee, as Assignee. Under the General Terms Agreement, Engine Manufacturer has
agreed to support certain [CF6-80C2B8F] [CF6-80C2B4F] [GE90] engines and spare
parts therefor purchased by Assignor from Engine Manufacturer, as installed on
certain Boeing Model [767-424] [767-224] [777-224] aircraft. Engine Manufacturer
hereby confirms to Assignor and Assignee that the Engine Warranties, as and to
the extent that such relate to the Engines, shall inure to the benefit of
Assignee (and, so long as the Trust Indenture has not been discharged,
Mortgagee) to the same extent as if originally named "Airline" in the General
Terms Agreement and to the benefit of Assignor (but only to the extent provided
for in the Assignment) in each case subject to the terms and conditions of the
Assignment; PROVIDED, that Engine Manufacturer shall not owe any liability or
obligation under the Engine Warranties more than once in total.

            Engine Manufacturer represents and warrants that:

            1. It is a corporation duly organized and validly existing in good
standing under the laws of the State of New York;

            2. The making and performance of this Engine Manufacturer Consent
and Agreement [___] in accordance with its terms have been duly authorized by
all necessary corporate action on the part of Engine Manufacturer, do not
require any stockholder approval and do not contravene its Certificate of
Incorporation or by-laws or any debenture, credit agreement or other contractual
agreement to which Engine Manufacturer is a party or by which it is bound or any
law binding on Engine Manufacturer;

            3. The making and performance of the Engine Warranties in accordance
with their terms have been duly authorized by all necessary corporate action on
the part of Engine Manufacturer, do not require any stockholder approval and do

<PAGE>

not contravene Engine Manufacturer's Certificate of Incorporation or by-laws or
any debenture, credit agreement or other contractual agreement to which Engine
Manufacturer is a party or by which it is bound, and do not, as to the making
thereof, contravene any law binding on Engine Manufacturer, and to the best of
its knowledge, do not as to the performance thereof contravene any law binding
on Engine Manufacturer; and

            4. The Engine Warranties constituted as of the date on which they
were made and at all times thereafter to and including the date of this Engine
Manufacturer Consent and Agreement [___], and this Engine Manufacturer Consent
and Agreement [___] constitute binding obligations of Engine Manufacturer
enforceable against Engine Manufacturer in accordance with their respective
terms subject to:

          (a)  the limitations of applicable bankruptcy, insolvency,
               reorganization, moratorium or similar laws affecting the rights
               of creditors generally; and

          (b)  general principles of equity (regardless of whether such
               enforceability is considered in a proceeding in equity or at
               law).

                     [This space intentionally left blank.]

<PAGE>

            THIS ENGINE MANUFACTURER CONSENT AND AGREEMENT [___] SHALL IN ALL
RESPECTS BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, INCLUDING ALL MATTERS
OF CONSTRUCTION, VALIDITY AND PERFORMANCE, WITHOUT GIVING EFFECT TO PRINCIPLES
OF CONFLICTS OF LAWS.

            Dated as of _________ __, ____.

                                             GENERAL ELECTRIC COMPANY

                                             By_________________________________
                                               Name:
                                               Title:

<PAGE>

                                 EXHIBIT A-5 to
                             NOTE PURCHASE AGREEMENT

                     FORM OF LEASED AIRCRAFT TRUST AGREEMENT

                               [Filed Separately]

<PAGE>

                                 EXHIBIT A-6 to
                             NOTE PURCHASE AGREEMENT

                            FORM OF SPECIAL INDENTURE

                               [Filed Separately]

<PAGE>

                                    EXHIBIT B
                                       TO
                             NOTE PURCHASE AGREEMENT

                             FORM OF DELIVERY NOTICE

                                DELIVERY NOTICE

                            Dated as of [__________]

To each of the addressees listed
       in Schedule A hereto

           RE:  DELIVERY NOTICE IN ACCORDANCE WITH AMENDED AND RESTATED
                NOTE PURCHASE AGREEMENT REFERRED TO BELOW

Gentlemen:

       Reference is made to the Amended and Restated Note Purchase Agreement,
dated as of June [ ], 2001, among Continental Airlines, Inc. (the "COMPANY"),
Wilmington Trust Company, as Pass Through Trustee under each of the Pass Through
Trust Agreements (as defined therein) (the "PASS THROUGH TRUSTEE"), Wilmington
Trust Company, as Subordination Agent (the "SUBORDINATION AGENT"), Wells Fargo
Bank Northwest, National Association, as Escrow Agent (the "ESCROW AGENT") and
Wilmington Trust Company, as Paying Agent (the "PAYING AGENT") (as in effect
from time to time, the "NOTE PURCHASE AGREEMENT"). Unless otherwise defined
herein, capitalized terms used herein shall have the meanings set forth in the
Note Purchase Agreement or, to the extent not defined therein, the Intercreditor
Agreement.

       Pursuant to Sections 1(b) of the Note Purchase Agreement, the undersigned
hereby notifies you, in respect of the Boeing [_______] aircraft with
manufacturer's serial number [______] (the "AIRCRAFT"), of the following:

(1)  The Company has elected to treat the Aircraft as [a Leased Aircraft] [an
     Owned Aircraft];

(2)  The Scheduled Delivery Date of the Aircraft is [_________];

(3)  The Funding Date for the Aircraft shall be [__________]; and

(4)  The aggregate amount of each series of Equipment Notes to be issued, and
     purchased by the respective Pass Through Trustees referred to below (each,

<PAGE>

     an "APPLICABLE PASS THROUGH TRUSTEE"), on the Funding Date, in connection
     with the financing of such Aircraft is as follows:<F1>

     (a)  the Class A-1 Trustee shall purchase Series A-1 Equipment Notes in the
          amount of $[__________];

     (b)  The Class A-2 Trustee shall purchase Series A-2 Equipment Notes in the
          amount of $[__________];

     (c)  the Class B Trustee shall purchase Series B Equipment Notes in the
          amount of $[__________]; and

     (d)  the Class C Trustee shall purchase Series C Equipment Notes in the
          amount of $[__________].

       The Company hereby instructs the Class A-1 Trustee to (i) execute a
Withdrawal Certificate in the form of Annex A hereto dated as of [__________]
and attach thereto a Notice of Purchase Withdrawal dated such date completed as
set forth on Exhibit A-1 hereto and (ii) deliver such Withdrawal Certificate and
Notice of Purchase Withdrawal to the applicable Escrow Agent.<F2>

       The Company hereby instructs the Class A-2 Trustee to (i) execute a
Withdrawal Certificate in the form of Annex A hereto dated as of [__________]
and attach thereto a Notice of Purchase Withdrawal dated such date completed as
set forth on Exhibit A-2 hereto and (ii) deliver such Withdrawal Certificate and
Notice of Purchase Withdrawal to the applicable Escrow Agent.<F3>

       The Company hereby instructs the Class B Trustee to (i) execute a
Withdrawal Certificate in the form of Annex A hereto dated as of [__________]
and attach thereto a Notice of Purchase Withdrawal dated such date completed as
set forth on Exhibit B hereto and (ii) deliver such Withdrawal Certificate and
Notice of Purchase Withdrawal to the applicable Escrow Agent.<F4>

       The Company hereby instructs the Class C Trustee to (i) execute a
Withdrawal Certificate in the form of Annex A hereto dated as of [__________]
and attach thereto a Notice of Purchase Withdrawal dated such date completed as
set forth on Exhibit C hereto and (ii) deliver such Withdrawal Certificate and
Notice of Purchase Withdrawal to the applicable Escrow Agent.

       The Company hereby instructs each Applicable Pass Through Trustee to (i)
purchase Equipment Notes of a series and in an amount set forth opposite such
Pass Through Trustee in clause (4) above with a portion of the proceeds [of the
withdrawals of Deposits referred to in the applicable Notice of Purchase
Withdrawal referred to above] [received by it from the sale of Certificates on

--------------
<F1>
Eliminate each applicable clause if the specified Pass Through Trustee will not
purchase Equipment Notes for the Aircraft.
<F2>
Eliminate if the specified Pass Through Trustee will not purchase Equipment
Notes for the Aircraft.
<F3>
Eliminate if the specified Pass Through Trustee will not purchase Equipment
Notes for the Aircraft.
<F4>
Eliminate if the specified Pass Through Trustee will not purchase Equipment
Notes for the Aircraft.

<PAGE>

the Issuance Date] and (ii) re-deposit with the Depositary the excess, if any,
of the amount so withdrawn OVER the purchase price of such Equipment Notes.

       The Company hereby instructs each Applicable Pass Through Trustee to (a)
enter into the Participation Agreement [____] dated as of [__________] among the
Company, as Lessee, Wilmington Trust Company, as Mortgagee and Loan Participant,
First Security Bank, National Association, as Owner Trustee, and [__________],
as Owner Participant, (b) perform its obligations thereunder and (c) deliver
such certificates, documents and legal opinions relating to such Pass Through
Trustee as required thereby. [The Company confirms that the Special Indenture
shall be utilized in lieu of the Leased Aircraft Indenture.]

       The Company hereby certifies that the Owner Participant with respect to
the Aircraft (A) is not an Affiliate of the Company and (B) based on the
representations of such Owner Participant, is either a Qualified Owner
Participant or a person whose obligations under the Owner Participant Agreements
(as defined in the Participation Agreement) are guaranteed by a Qualified Owner
Participant.

Yours faithfully,

Continental Airlines, Inc.

By:______________________________
   Name:
   Title:

<PAGE>

                                   SCHEDULE A

Wilmington Trust Company, as
  Pass Through Trustee, Subordination
  Agent and Mortgagee
Rodney Square North
1100 North Market Street
Wilmington, Delaware  19890
Attention:  Corporate Trust Administration
Facsimile:  (302) 651-8882

Wells Fargo Bank Northwest, National Association,
  as Escrow Agent
79 South Main Street, 3rd Floor
Salt Lake City, Utah  84111
Attention:  Corporate Trust Department
Facsimile:  (801) 246-5053

Standard & Poor's Ratings Services
55 Water Street, 35th Floor
New York, New York 10004
Attention:  Michael K. Vernier
Facsimile:  (212) 438-6632

Moody's Investors Service, Inc.
99 Church Street
New York, New York 10007
Attention:  Richard Bittenbender
Facsimile:  (212) 553-3855

<PAGE>

                                                                         Annex A

                             WITHDRAWAL CERTIFICATE
                                  (Class ___)

Wells Fargo Bank Northwest, National Association,
as Escrow Agent

Ladies and Gentlemen:

            Reference is made to the Escrow and Paying Agent Agreement, dated as
of [April 19, 2001] [June [ ], 2001] (the "Agreement"). We hereby certify to you
that the conditions to the obligations of the undersigned to execute a
Participation Agreement pursuant to the Note Purchase Agreement have been
satisfied. Pursuant to Section 1.02(c) of the Agreement, please execute the
attached Notice of Withdrawal and immediately transmit by facsimile to the
Depositary, at (212) 325-8319.

            Capitalized terms used herein but not defined herein shall have the
meanings set forth in the Agreement.

                                Very truly yours,

                                WILMINGTON TRUST COMPANY,
                                not in its individual capacity by solely as Pass
                                Through Trustee

                                By:_____________________________________________
                                   Name:
                                   Title:

Dated: As of [__________]

<PAGE>

                                                                     Exhibit A-1

                         NOTICE OF PURCHASE WITHDRAWAL

CREDIT SUISSE FIRST BOSTON
New York Branch
11 Madison Avenue
New York, NY  10010
Attention: Robert Finney
Telecopier: 212-325-8319

Gentlemen:

            Reference is made to the Deposit Agreement (Class A-1) dated as of
April 19, 2001 (the "DEPOSIT AGREEMENT") between Wells Fargo Bank Northwest,
National Association (formerly known as First Security Bank, National
Association), as Escrow Agent, and Credit Suisse First Boston, New York branch,
as Depositary (the "DEPOSITARY").

            In accordance with Section 2.3(a) of the Deposit Agreement, the
undersigned hereby requests the withdrawal of the entire amount of the Deposit,
$[_______], Account No. [____].

            The undersigned hereby directs the Depositary to pay the proceeds of
the Deposit to [___________________], Account No. ____, Reference: _________] on
________ __, 20___, upon the telephonic request of a representative of the Pass
Through Trustee.

                                             WELLS FARGO BANK NORTHWEST,
                                             NATIONAL ASSOCIATION,
                                             as Escrow Agent

                                             By:________________________________
                                                Name:
                                                Title:

Dated: As of [__________]

<PAGE>

                                                                     Exhibit A-2

                         NOTICE OF PURCHASE WITHDRAWAL

CREDIT SUISSE FIRST BOSTON
New York Branch
11 Madison Avenue
New York, NY  10010
Attention: Robert Finney
Telecopier: 212-325-8319

Gentlemen:

            Reference is made to the Deposit Agreement (Class A-2) dated as of
April 19, 2001 (the "DEPOSIT AGREEMENT") between Wells Fargo Bank Northwest,
National Association (formerly known as First Security Bank, National
Association), as Escrow Agent, and Credit Suisse First Boston, New York branch,
as Depositary (the "DEPOSITARY").

            In accordance with Section 2.3(a) of the Deposit Agreement, the
undersigned hereby requests the withdrawal of the entire amount of the Deposit,
$[_______], Account No. [____].

            The undersigned hereby directs the Depositary to pay the proceeds of
the Deposit to [___________________], Account No. ____, Reference: _________] on
________ __, 20__, upon the telephonic request of a representative of the Pass
Through Trustee.

                                             WELLS FARGO BANK NORTHWEST,
                                             NATIONAL ASSOCIATION,
                                             as Escrow Agent

                                             By:________________________________
                                                Name:
                                                Title:

Dated: As of [__________]

<PAGE>

                                                                       Exhibit C

                         NOTICE OF PURCHASE WITHDRAWAL

CREDIT SUISSE FIRST BOSTON
New York Branch
11 Madison Avenue
New York, NY  10010
Attention: Robert Finney
Telecopier: 212-325-8319

Gentlemen:

            Reference is made to the Deposit Agreement (Class B) dated as of
April 19, 2001 (the "DEPOSIT AGREEMENT") between Wells Fargo Bank Northwest,
National Association, (formerly known as First Security Bank, National
Association), as Escrow Agent, and Credit Suisse First Boston, New York branch,
as Depositary (the "DEPOSITARY").

            In accordance with Section 2.3(a) of the Deposit Agreement, the
undersigned hereby requests the withdrawal of the entire amount of the Deposit,
$[_______], Account No. [_____].

            The undersigned hereby directs the Depositary to pay the proceeds of
the Deposit to ___________________], Account No. ____, Reference: _________] on
________ __, 20__, upon the telephonic request of a representative of the Pass
Through Trustee.

                                             WELLS FARGO BANK NORTHWEST,
                                             NATIONAL ASSOCIATION,
                                             as Escrow Agent

                                             By:________________________________
                                                Name:
                                                Title:

Dated: As of [__________]

<PAGE>

                                                                       Exhibit C

                         NOTICE OF PURCHASE WITHDRAWAL

CREDIT SUISSE FIRST BOSTON
New York Branch
11 Madison Avenue
New York, NY  10010
Attention: Robert Finney
Telecopier: 212-325-8319

Gentlemen:

            Reference is made to the Deposit Agreement (Class C) dated as of
June [ ], 2001 (the "DEPOSIT AGREEMENT") between Wells Fargo Bank Northwest,
National Association, as Escrow Agent, and Credit Suisse First Boston, New York
branch, as Depositary (the "DEPOSITARY").

            In accordance with Section 2.3(a) of the Deposit Agreement, the
undersigned hereby requests the withdrawal of the entire amount of the Deposit,
[_______], Account No. [_____].

            The undersigned hereby directs the Depositary to pay the proceeds of
the Deposit to ___________________], Account No. ____, Reference: _________] on
________ __, 20__, upon the telephonic request of a representative of the Pass
Through Trustee.

                                             WELLS FARGO BANK NORTHWEST,
                                             NATIONAL ASSOCIATION,
                                             as Escrow Agent

                                             By:________________________________
                                                Name:
                                                Title:

Dated: As of [__________]

<PAGE>

                                 EXHIBIT C-1 to
                             NOTE PURCHASE AGREEMENT

                 FORM OF OWNED AIRCRAFT PARTICIPATION AGREEMENT

                               [Filed Separately]

<PAGE>

                                 EXHIBIT C-2 to
                             NOTE PURCHASE AGREEMENT

                        FORM OF OWNED AIRCRAFT INDENTURE

                               [Filed Separately]

<PAGE>

                                  EXHIBIT D to
                             NOTE PURCHASE AGREEMENT

SECTION 16.      OWNER PARTICIPANT'S RIGHT TO RESTRUCTURE

            16.1 GENERAL RIGHT TO RESTRUCTURE

            Lessee, Loan Participant and each Note Holder agree that after the
Delivery Date and subject to the limitations of Section 16.2, the original Owner
Participant (or any transferee Owner Participant that is an Affiliate of the
original Owner Participant) shall have the right to restructure the Transactions
using (a) a "cross-border lease," a tax lease or a head-lease/sublease structure
and (b) any other type of transaction, which may involve special structural
arrangements, as such Owner Participant may elect (any such structure described
above, a "Special Structure"). Any Special Structure may result in additional
persons participating in the Transactions, which persons shall agree to
provisions comparable to Sections 7.6.4(a) and 7.6.13. Subject to the provisions
of Sections 16.2 and 16.3, Lessee, Loan Participant and each Note Holder agree
to cooperate in the implementation of any such restructuring and take such
action as may reasonably be requested by the original Owner Participant to
accomplish such restructuring, including taking such actions as may be
reasonable or customary in the type of Special Structure selected. In connection
with any proposed Special Structure, Owner Participant shall provide all
information reasonably requested by Lessee, Loan Participant or any Note Holder
with respect thereto. The original Owner Participant shall be entitled to retain
all of the benefits of any such transaction.

            16.2 LIMITATIONS ON RESTRUCTURING PROVISIONS; ADDITIONAL TERMS

                 16.2.1 LESSEE

            (a) Notwithstanding Section 16.1 or 16.2.1(b), in no event shall any
such Special Structure (a) change the terms and conditions of Lessee's rights
and obligations, from those which Lessee would otherwise possess or be subject
to in the absence of any such Special Structure, in a manner which is materially
adverse to Lessee, (b) expose Lessee to any additional risks (including overall
tax risks) beyond those to which Lessee would be exposed in the absence of any
such Special Structure unless Lessee shall have been indemnified against such
additional risks by the original Owner Participant, or other participants in
such transaction (so long as such original Owner Participant or other

<PAGE>

participants shall, as to their creditworthiness at the time any such indemnity
is given, be reasonably acceptable to Lessee) in a manner reasonably
satisfactory to Lessee. In no event shall Lessee be required to provide an
indemnity with respect to any foreign tax benefit of a Special Structure or to
indemnify against the failure of a head-lease not to constitute a true lease for
U.S. federal income tax purposes.

            (b) In any Special Structure that may be entered into pursuant to
this Section 16, the Termination Values under the Lease (as the same may be
restructured) shall not be affected by the termination values under any
head-lease, except that any prepayment premiums and any funding or swap breakage
costs under such head-lease or similar arrangement will be added in calculating
the Termination Values and Stipulated Loss Values under the Lease (as the same
may be restructured). Further, upon implementation of any Special Structure, the
Stipulated Loss Values payable by Lessee under the Lease (as the same may be
restructured) shall in no event be less than the stipulated loss values payable
under the applicable head-lease or similar arrangement.

                 16.2.2 LOAN PARTICIPANT AND CERTIFICATE HOLDERS

            Notwithstanding Section 16.1, any such Special Structure shall not,
and prior to the exercise of its rights thereunder, the Owner Participant shall
deliver an officer's certificate to the Pass Through Trustee that provides that
any such Special Structure shall not, (a) change the terms and conditions of
Loan Participant's, any Note Holder's or any Pass Through Indemnitee's rights
and obligations under the Operative Agreements or rights and obligations of
holders of Pass Through Certificates, from those which Loan Participant, Note
Holders, Pass Through Indemnitees and such Pass Through Certificate holders
would otherwise possess or be subject to in the absence of such Special
Structure (including, without limitation, the amount and timing of any payment
of principal, interest and Make-Whole Amount under the Equipment Notes, the
relative rights of the Note Holders with respect to such payments and such
holder of Pass Through Certificates and the priority of Mortgagee's Lien on the
Trust Indenture Estate under the Trust Indenture) or (b) expose Loan
Participant, any such Note Holder, any such Pass Through Indemnitee or any such
holder of Pass Through Certificates to any additional risks beyond those to
which Loan Participant, such Note Holder, Pass Through Indemnitee or such holder
of such Pass Through Certificates would be exposed in the absence of such

<PAGE>

Special Structure. In addition, in no event shall any Special Structure be
permitted unless a written confirmation from the Rating Agencies (as defined in
the Note Purchase Agreement) is obtained prior to the implementation of such
Special Structure to the effect that such Special Structure will not adversely
affect the ratings of the Pass Through Certificates.

            16.3 TRANSACTION EXPENSES

            Whether or not any proposed restructuring transaction under this
Section 16 is consummated, the original Owner Participant shall pay (or cause to
be paid) the reasonable costs and expenses incurred by all parties in connection
therewith and shall pay the reasonable costs and expenses of the Rating Agencies
in connection with obtaining the confirmations referred to in Section 16.2.2;
PROVIDED, that, only in connection with a consummated transaction (unless Lessee
shall have, by failing to act in good faith, caused a transaction not to be
consummated), Lessee shall pay or reimburse such original Owner Participant for
the original Owner Participant's reasonable estimate of the costs and expenses
that would have been incurred by all parties if the Transactions had been
restructured as a head-lease/sublease transaction in which the original Owner
Participant, or an Affiliate or designee thereof, were the head-lessee/sublessor
and Lessee were the sublessee.

<PAGE>

                                  EXHIBIT E to
                             NOTE PURCHASE AGREEMENT

       Section 6.2 may be amended to delete Section 6.2.9 in its entirety.

<PAGE>

                      EXHIBIT F TO NOTE PURCHASE AGREEMENT

            Subordination. (a) As between the Note Holders, this Trust Indenture
shall be a subordination agreement for purposes of Section 510 of the United
States Bankruptcy Code, as amended from time to time.

            (b) If any Note Holder receives any payment in respect of any
obligations owing hereunder, which is subsequently invalidated, declared
preferential, set aside and/or required to be repaid to a trustee, receiver or
other party, then, to the extent of such payment, such obligations intended to
be satisfied shall be revived and continue in full force and effect as if such
payment had not been received.

            (c) Each of the Note Holders may take any of the following actions
without impairing its rights under this Trust Indenture:

            (i) obtain a Lien on any property to secure any amounts owing to it
       hereunder,

            (ii) obtain the primary or secondary obligation of any other obligor
       with respect to any amounts owing to it hereunder,

            (iii) renew, extend, increase, alter or exchange any amounts owing
       to it hereunder, or release or compromise any obligation of any obligor
       with respect thereto,

            (iv) refrain from exercising any right or remedy, or delay in
       exercising such right or remedy, which it may have, or

            (v) take any other action which might discharge a subordinated party
       or a surety under applicable law;

provided, however, that the taking of any such actions by any of the Note
Holders shall not prejudice the rights or adversely affect the obligations of
any other party under this Trust Indenture.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00027-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00027-of-00352.parquet"}]]