Document:

Exhibit 4.2 - Revolving Credit Agreement

    
 

    EXECUTION
      VERSION

    

    

    

    

    

    

    

    _________________________________________________________________

     

    REVOLVING
      CREDIT AGREEMENT 

    (2005-ERJ1)

    

    Dated
      as
      of September 22, 2005

    

    between

     

    WILMINGTON
      TRUST COMPANY,

    as
      Subordination Agent, 

    as
      agent
      and trustee for the 

    Continental
      Airlines Pass Through Trust 2005-ERJ1,

    as
      Borrower,

     

    and

     

    LANDESBANK
      BADEN-WÜRTTEMBERG,

    as
      Liquidity Provider

    

    _________________________________________________________________

     

    

     

    Continental
      Airlines Pass Through Trust 2005-ERJ1 

    Continental
      Airlines 9.798% Pass Through Certificates,

    Series
      2005-ERJ1

    

     

    

     

    

     

    

    

    
      
        
          
            

             

          

          
          

        

        
          
          

          
            

          

        

        
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    TABLE
      OF CONTENTS

     

    Page

     

    
      	
              ARTICLE
                I DEFINITIONS

            	
              1

            
	
              Section
                1.01. Certain
                Defined Terms

            	
              1

            
	
              Section
                1.02. Interpretation

            	
              8

            
	
              ARTICLE
                II AMOUNT AND TERMS OF THE
                COMMITMENT

            	
              8

            
	
              Section
                2.01. The
                Advances

            	
              8

            
	
              Section
                2.02. Making
                the Advances

            	
              8

            
	
              Section
                2.03. Fees

            	
              10

            
	
              Section
                2.04. Reductions
                or Termination of the Maximum Commitment

            	
              11

            
	
              Section
                2.05. Repayments
                of Interest Advances, the Special Termination Advance or the Final
                Advance

            	
              11

            
	
              Section
                2.06. Repayments
                of Provider Advances

            	
              12

            
	
              Section
                2.07. Payments
                to the Liquidity Provider Under the Intercreditor
                Agreement

            	
              13

            
	
              Section
                2.08. Book
                Entries

            	
              13

            
	
              Section
                2.09. Payments
                from Available Funds Only

            	
              13

            
	
              Section
                2.10. Early
                Termination Advance

            	
              13

            
	
              ARTICLE
                III OBLIGATIONS OF THE
                BORROWER

            	
              14

            
	
              Section
                3.01. Increased
                Costs

            	
              14

            
	
              Section
                3.02. Capital
                Adequacy

            	
              14

            
	
              Section
                3.03. Payments
                Free of Deductions

            	
              15

            
	
              Section
                3.04. Payments

            	
              17

            
	
              Section
                3.05. Computations

            	
              17

            
	
              Section
                3.06. Payment
                on Non-Business Days

            	
              17

            
	
              Section
                3.07. Interest

            	
              17

            
	
              Section
                3.08. Replacement
                of Borrower

            	
              18

            
	
              Section
                3.09. Funding
                Loss Indemnification

            	
              19

            
	
              Section
                3.10. Illegality

            	
              19

            
	
              Section
                3.11. Mitigation

            	
              19

            
	
              ARTICLE
                IV CONDITIONS PRECEDENT

            	
              19

            
	
              Section
                4.01. Conditions
                Precedent to Effectiveness of Section 2.01

            	
              19

            
	
              Section
                4.02. Conditions
                Precedent to Borrowing

            	
              21

            
	
              ARTICLE
                V COVENANTS

            	
              21

            
	
              Section
                5.01. Affirmative
                Covenants of the Borrower

            	
              21

            
	
              Section
                5.02. Negative
                Covenants of the Borrower

            	
              22

            
	
              ARTICLE
                VI LIQUIDITY EVENTS OF DEFAULT AND SPECIAL
                TERMINATION

            	
              22

            
	
              Section
                6.01. Liquidity
                Events of Default

            	
              22

            
	
              Section
                6.02. Special
                Termination

            	
              22

            

    

    

    
      
        
          
          

        

        
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              ARTICLE
                VII MISCELLANEOUS

            	
              23

            
	
              Section
                7.01. Amendments,
                Etc.

            	
              23

            
	
              Section
                7.02. Notices,
                Etc.

            	
              23

            
	
              Section
                7.03. No
                Waiver; Remedies

            	
              24

            
	
              Section
                7.04. Further
                Assurances

            	
              24

            
	
              Section
                7.05. Indemnification;
                Survival of Certain Provisions

            	
              24

            
	
              Section
                7.06. Liability
                of the Liquidity Provider

            	
              24

            
	
              Section
                7.07. Costs,
                Expenses and Taxes

            	
              25

            
	
              Section
                7.08. Binding
                Effect; Participations

            	
              25

            
	
              Section
                7.09. Severability

            	
              27

            
	
              Section
                7.10. GOVERNING
                LAW

            	
              27

            
	
              Section
                7.11. Submission
                to Jurisdiction; Waiver of Jury Trial

            	
              27

            
	
              Section
                7.12. Execution
                in Counterparts

            	
              28

            
	
              Section
                7.13. Entirety

            	
              28

            
	
              Section
                7.14. Headings

            	
              28

            
	
              Section
                7.15. LIQUIDITY
                PROVIDER'S OBLIGATION TO MAKE ADVANCES

            	
              28

            

    

    

     

    ANNEX
      I Interest
      Advance Notice of Borrowing

     

    ANNEX
      II Early
      Termination Advance Notice of Borrowing

     

    ANNEX
      III [Reserved]

     

    ANNEX
      IV Downgrade
      Advance Notice of Borrowing

     

    ANNEX
      V Final
      Advance Notice of Borrowing

     

    ANNEX
      VI Notice
      of
      Termination

     

    ANNEX
      VII Notice
      of
      Replacement Subordination Agent

     

    ANNEX
      VIII Special
      Termination Advance Notice of Borrowing

     

    ANNEX
      IX Notice
      of
      Special Termination

     

    

    

    
      
        
          
            

             

          

          
          

        

        
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    REVOLVING
      CREDIT AGREEMENT (2005-ERJ1)

    
 

    
    

    This
      REVOLVING CREDIT AGREEMENT (2005-ERJ1), dated as of September 22, 2005, is
      made by and between WILMINGTON TRUST COMPANY, a Delaware corporation, not in
      its
      individual capacity but solely as Subordination Agent under the Intercreditor
      Agreement (each as defined below), as agent and trustee for the Trust (as
      defined below) (the "Borrower"),
      and
      LANDESBANK BADEN-WÜRTTEMBERG, a bank established in Germany as a public law
      institution with legal capacity (Rechtsf’hige
      Anstalt des Öffentlichen Rechts)
      (the
      "Liquidity
      Provider").

     

    W
      I T
      N E S S E T H:

     

    WHEREAS,
      pursuant to the Trust Agreement (such term and all other capitalized terms
      used
      in these recitals having the meanings set forth or referred to in Section 1.01),
      the Trust is issuing the Certificates; and

     

    WHEREAS,
      the Borrower, in order to support the timely payment of a portion of the
      interest on the Certificates in accordance with their terms, has requested
      the
      Liquidity Provider to enter into this Agreement, providing in part for the
      Borrower to request in specified circumstances that Advances be made
      hereunder.

     

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

     

     

    ARTICLE
      I

     

    
    

    DEFINITIONS

     

    Section
      1.01. Certain
      Defined Terms.
      

     

    (a) 
      As
      used
      in this Agreement and unless expressly indicated, or unless the context clearly
      requires otherwise, the following capitalized terms shall have the following
      respective meanings for all purposes of this Agreement:

     

    "Additional
      Costs"
      has the
      meaning assigned to such term in Section 3.01.

     

    "Advance"
      means
      an Interest Advance, a Final Advance, a Special Termination Advance, a Provider
      Advance or an Applied Provider Advance, as the case may be.

     

    "Agreement"
      means
      this Revolving Credit Agreement (2005-ERJ1), dated as of September 22,
      2005, between the Borrower and the Liquidity Provider, as the same may be
      amended, supplemented or otherwise modified from time to time in accordance
      with
      its terms.

     

    "Applicable
      Liquidity Rate"
      has the
      meaning assigned to such term in Section 3.07(f).

     

    
      
        
          
          

        

        
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    "Applicable
      Margin"
      means
      (i) with respect to any Unpaid Advance (other than an Unapplied Special
      Termination Advance) or Applied Provider Advance, 2.5% per annum, and
      (ii) with respect to any Unapplied Provider Advance or any Unapplied
      Special Termination Advance, the margin per annum specified in the Fee
      Letter.

     

    "Applied
      Downgrade Advance"
      has the
      meaning assigned to such term in Section 2.06(a).

     

    "Applied
      Early Termination Advance"
      has the
      meaning assigned to such term in Section 2.06(a).

     

    "Applied
      Provider Advance"
      has the
      meaning assigned to such term in Section 2.06(a).

     

    "Applied
      Special Termination Advance"
      has the
      meaning assigned to such term in Section 2.05.

     

    "Base
      Rate"
      means,
      on any day, a fluctuating interest rate per annum in effect from time to time,
      which rate per annum shall at all times be equal to (a) the weighted average
      of
      the rates on overnight Federal funds transactions with members of the Federal
      Reserve System arranged by Federal funds brokers, as published for such day
      (or,
      if such day is not a Business Day, for the next preceding Business Day) by
      the
      Federal Reserve Bank of New York, or if such rate is not so published for any
      day that is a Business Day, the average of the quotations for such day for
      such
      transactions received by the Liquidity Provider from three Federal funds brokers
      of recognized standing selected by it, plus (b) one-quarter of one percent
      (1/4
      of 1%).

     

    "Base
      Rate Advance"
      means
      an Advance that bears interest at a rate based upon the Base Rate.

     

    "Borrower"
      has the
      meaning assigned to such term in the recital of parties to this
      Agreement.

     

    "Borrowing"
      means
      the making of Advances requested by delivery of a Notice of
      Borrowing.

     

    "Business
      Day"
      means
      any day other than a Saturday, a Sunday or a day on which commercial banks
      are
      required or authorized to close in Houston, Texas, New York, New York or, so
      long as any Certificate is outstanding, the city and state in which the Trustee,
      the Borrower or any Loan Trustee maintains its Corporate Trust Office or
      receives or disburses funds, and, if the applicable Business Day relates to
      any
      Advance or other amount bearing interest based on LIBOR, on which dealings
      are
      carried on in the London interbank market.

     

    "Deposit
      Agreement"
      means
      the Deposit Agreement dated as of the date hereof between Wells Fargo Bank
      Northwest, National Association, as Escrow Agent, and Citibank, N.A., as
      Depositary, pertaining to the Certificates, as the same may be amended, modified
      or supplemented from time to time in accordance with the terms
      thereof.

     

    "Depositary"
      means
      Citibank, N.A.

     

    

    
      
        
          
          

        

        
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    "Deposits"
      has the
      meaning assigned to such term in the Deposit Agreement.

     

    "Dollars"
      or
      "$"
      means
      United States dollars.

     

    "Downgrade
      Advance"
      means
      an Advance made pursuant to Section 2.02(d).

     

    "Downgrade
      Event"
      means a
      downgrading of the Liquidity Provider's short-term unsecured debt rating or
      short-term issuer credit rating, as the case may be, issued by either Rating
      Agency below the applicable Threshold Rating unless each Rating Agency shall
      have confirmed in writing on or prior to the date of such downgrading that
      such
      downgrading will not result in the downgrading, withdrawal or suspension of
      the
      ratings of the Certificates.

     

    "Early
      Termination Advance"
      means
      an advance made pursuant to Section 2.02(b).

     

    "Early
      Termination Date"
      means
      the date specified in an Early Termination Notice delivered by the Liquidity
      Provider to the Borrower in accordance with Section 2.10, which date shall
      not
      be earlier than the 25th
      day
      following the receipt by the Borrower of such Early Termination
      Notice.

     

    "Early
      Termination Notice"
      has the
      meaning assigned to such term in Section 2.10.

     

    "Early
      Termination Notice Period"
      means
      the period from the 40th day to and including the 25th day prior to the
      anniversary of the Closing Date in each calendar year.

     

    "Effective
      Date"
      has the
      meaning assigned to such term in Section 4.01. The delivery of the certificate
      of the Liquidity Provider contemplated by Section 4.01(e) shall be conclusive
      evidence that the Effective Date has occurred.

     

    "Excluded
      Taxes"
      means
      (i) Taxes imposed on, based on or measured by the income of, or franchise Taxes
      imposed on, the Liquidity Provider or its Lending Office by the jurisdiction
      where such Liquidity Provider's principal office or such Lending Office is
      located or any other taxing jurisdiction in which such Tax is imposed as a
      result of the Liquidity Provider being, or having been, organized in, or
      conducting, or having conducted, any activities unrelated to the transactions
      contemplated by the Operative Agreements in, such jurisdiction or (ii)
      withholding taxes, whether or not indemnified under Section 3.03.

     

    "Excluded
      Withholding Taxes"
      means
      (i) withholding Taxes imposed by the United States except (a) if such Liquidity
      Provider is, on the date hereof (or, in the case of any successor Liquidity
      Provider, on the date it acquires its interest herein), a "resident" of an
      Applicable Treaty jurisdiction entitled to claim the benefits of an Applicable
      Treaty in respect of amounts payable hereunder, any such withholding Tax to
      the
      extent imposed as a result of a change in applicable law or treaty (other than
      any addition of, or change in, any "anti-treaty shopping", "limitation on
      benefits", or similar provision in any treaty or other applicable law
      restricting the availability of treaty benefits (including, without limitation
      any provision similar to the Protocol Amending the Convention Between the United
      States of America and the Kingdom of the Netherlands for the Avoidance of Double
      Taxation and the Prevention of Fiscal 

     

    

    
      
        
          
          

        

        
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    Evasion
      with respect to Taxes on Income, signed at Washington on October 13, 1993))
      after the date hereof (or, in the case of any successor Liquidity Provider,
      after the date it acquired its interest herein) and (b) any such withholding
      Tax
      to the extent the amount of such withholding Tax imposed on such successor
      Liquidity Provider does not exceed the amount of such withholding Tax that,
      in
      the absence of the transfer to such successor Liquidity Provider, would have
      been an Indemnified Tax imposed on payments to the predecessor Liquidity
      Provider pursuant to applicable law in effect on the date such successor
      Liquidity Provider acquired its interest herein, (ii) any Tax imposed or to
      the
      extent increased as a result of the Liquidity Provider failing to deliver to
      the
      Borrower any certificate or document (the delivery of which certificate or
      document in the good faith judgment of the Liquidity Provider will not expose
      the Liquidity Provider to any adverse consequence and which the Liquidity
      Provider is legally entitled to provide) which is reasonably requested by the
      Borrower to establish that payments under this Agreement are exempt from (or
      entitled to a reduced rate of) withholding Tax, and (iii) any Tax imposed by
      a
      jurisdiction as a result of the Liquidity Provider being, or having been,
      organized in, or maintaining, or having maintained, its principal office or
      Lending Office in, or conducting, or having conducted, any activities unrelated
      to the transactions contemplated by the Operative Agreements in, such
      jurisdiction. For purposes of this definition, "Applicable
      Treaty"
      means
      an income tax treaty between the United States and any of Australia, Austria,
      Canada, France, Germany, Ireland, Japan, Luxembourg, The Netherlands, Sweden,
      Switzerland or the United Kingdom.

     

    "Expenses"
      means
      liabilities, obligations, damages, settlements, penalties, claims, actions,
      suits, costs, expenses, and disbursements (including, without limitation,
      reasonable fees and disbursements of legal counsel and costs of investigation),
      provided that Expenses shall not include any Taxes other than sales, use and
      V.A.T. taxes imposed on fees and expenses payable pursuant to Section
      7.07.

     

    "Expiry
      Date"
      means
      October 16, 2022.

     

    "Final
      Advance"
      means
      an Advance made pursuant to Section 2.02(e).

     

    "Indemnified
      Tax"
      has the
      meaning assigned to such term in Section 3.03.

     

    "Intercreditor
      Agreement"
      means
      the Intercreditor Agreement dated as of the date hereof, among the Trustee,
      the
      Liquidity Provider and the Subordination Agent, as the same may be amended,
      supplemented or otherwise modified from time to time in accordance with its
      terms.

     

    "Interest
      Advance"
      means
      an Advance made pursuant to Section 2.02(a).

     

    "Interest
      Period"
      means,
      with respect to any LIBOR Advance, each of the following periods:

     

    
       

      (i)    the
        period
        beginning on (and including) the third London/Stuttgart Business Day following
        either (A) the Liquidity Provider's receipt of the Notice of Borrowing for
        such
        LIBOR Advance or (B) the date on which funds are withdrawn

       

    

    
      
        
          
          

        

        
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      from
        the
        Cash Collateral Account for the purpose of paying interest on the Certificates
        as contemplated by  Section 2.06(a) hereof and, in either case, ending on
        (but excluding) the next Regular Distribution Date; and

      
        
           

          (i)    each
            subsequent
            period commencing on (and including) the last day of the immediately
            preceding
            Interest Period and ending on (but excluding) the next Regular Distribution
            Date;

          
             

          

        

      

      provided,
        however,
        that if
        (x) the Final Advance shall have been made, or (y) other outstanding Advances
        shall have been converted into the Final Advance, then the Interest Periods
        shall be successive periods of one month beginning on the third London/Stuttgart
        Business Day following the Liquidity Provider's receipt of the Notice of
        Borrowing for such Final Advance (in the case of clause (x) above) or the
        Regular Distribution Date following such conversion (in the case of clause
        (y)
        above); provided further
        that if
        the last day of any Interest Period shall not be a Business Day, such Interest
        Period will end on the next succeeding Business Day.

       

    

    "Lending
      Office"
      means
      the lending office of the Liquidity Provider presently located at Stuttgart,
      Germany, or such other lending office as the Liquidity Provider from time to
      time shall notify the Borrower as its Lending Office hereunder; provided that
      the Liquidity Provider shall not change its Lending Office to another lending
      office outside Germany or the United States of America except in accordance
      with
      Section 3.11 hereof.

     

    "LIBOR"
      means,
      with respect to any Interest Period,

     

    (i)    the
      rate per annum
      appearing on display page 3750 (British Bankers Association-LIBOR) of the
      Telerate Service (or any successor or substitute therefor) at approximately
      11:00 a.m. (London time) two London/Stuttgart Business Days before the first
      day
      of such Interest Period, as the rate for dollar deposits with a maturity
      comparable to such Interest Period; or

     

    (ii)      
      if
      the
      rate calculated pursuant to clause (i) above is not available, the average
      (rounded upwards, if necessary, to the next 1/16 of 1%) of the rates per annum
      at which deposits in dollars are offered for the relevant Interest Period by
      three banks of recognized standing selected by the Liquidity Provider in the
      London interbank market at approximately 11:00 a.m. (London time) two
      London/Stuttgart Business Days before the first day of such Interest Period
      in
      an amount approximately equal to the principal amount of the LIBOR Advance
      to
      which such Interest Period is to apply and for a period comparable to such
      Interest Period; or

     

    (iii) 
if
      clause
      (ii) above is applicable but fewer than three banks in the London interbank
      market provide such rate, the average (rounded upwards, if necessary, to the
      next 1/16 of 1%) of the rates per annum quoted by three banks in New York City
      of recognized standing selected by the Liquidity Provider at approximately
      11:00
      a.m. (New York City time) two 

    
      
        
          
          

        

        
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    Business
      Days before the first day of such Interest Period for loans in Dollars to
      leading European banks in an amount approximately equal to the principal amount
      of the LIBOR Advance to which such Interest Period is to apply and for a period
      comparable to such Interest Period.

     

    "LIBOR
      Advance"
      means
      an Advance bearing interest at a rate based upon LIBOR.

     

    "Liquidity
      Event of Default"
      means
      the occurrence of either (a) the Acceleration of all of the Equipment Notes
      (provided
      that,
      with respect to the period prior to the Delivery Period Expiry Date, such
      Equipment Notes have an aggregate outstanding principal balance in excess of
      $195 million) or (b) a Continental Bankruptcy Event.

     

    "Liquidity
      Indemnitee"
      means
      (i) the Liquidity Provider, (ii) the directors, officers, employees and
      agents of the Liquidity Provider and (iii) the successors and permitted
      assigns of the persons described in clauses (i) and (ii).

     

    "Liquidity
      Provider"
      has the
      meaning assigned to such term in the recital of parties to this
      Agreement.

     

    "London/Stuttgart
      Business Day"
      means
      any day on which commercial banks are open for general business in London,
      England and Stuttgart, Germany.

     

    "Maximum
      Available Commitment"
      means,
      subject to the proviso contained in the third sentence of Section 2.02(a),
      at
      any time of determination, (a) the Maximum Commitment at such time less (b)
      the
      aggregate amount of each Interest Advance outstanding at such time; provided
      that
      following a Provider Advance, a Special Termination Advance or a Final Advance,
      the Maximum Available Commitment shall be zero.

     

    "Maximum
      Commitment"
      means
      initially $45,709,139.70, as the same may be reduced from time to time in
      accordance with Section 2.04(a).

     

    "Notice
      of Borrowing"
      has the
      meaning assigned to such term in Section 2.02(g).

     

    "Notice
      of Replacement Subordination Agent"
      has the
      meaning assigned to such term in Section 3.08.

     

    "Performing
      Note Deficiency"
      means
      any time that less than 65% of the then aggregate outstanding principal amount
      of all Equipment Notes are Performing Equipment Notes.

     

    "Prospectus
      Supplement"
      means
      the final Prospectus Supplement dated September 14, 2005 relating to the
      Certificates, as such Prospectus Supplement may be amended or
      supplemented.

     

    "Provider
      Advance"
      means a
      Downgrade Advance or an Early Termination Advance.

     

    

    
      
        
          
          

        

        
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    "Regulatory
      Change"
      has the
      meaning assigned to such term in Section 3.01.

     

    "Replenishment
      Amount"
      has the
      meaning assigned to such term in Section 2.06(b).

     

    "Special
      Termination Advance"
      means
      an Advance made pursuant to Section 2.02(f).

     

    "Special
      Termination Notice"
      means
      the Notice of Special Termination substantially in the form of Annex IX to
      this
      Agreement.

     

    "Termination
      Date"
      means
      the
      earliest to occur of the following: (i) the Expiry Date; (ii) the date on which
      the Borrower delivers to the Liquidity Provider a certificate, signed by a
      Responsible Officer of the Borrower, certifying that all of the Certificates
      have been paid in full (or provision has been made for such payment in
      accordance with the Intercreditor Agreement and the Trust Agreement) or are
      otherwise no longer entitled to the benefits of this Agreement; (iii) the date
      on which the Borrower delivers to the Liquidity Provider a certificate, signed
      by a Responsible Officer of the Borrower, certifying that a Replacement
      Liquidity Facility has been substituted for this Agreement in full pursuant
      to
      Section 3.6(e) of the Intercreditor Agreement; (iv) the fifth Business Day
      following the receipt by the Borrower of a Termination Notice or Special
      Termination Notice from the Liquidity Provider pursuant to Section 6.01
      hereof;
      and
      (v)
      the
      date on
      which no Advance is, or may (including by reason of reinstatement as herein
      provided) become available for a Borrowing hereunder.

     

    "Termination
      Notice"
      means
      the Notice of Termination substantially in the form of Annex VI to this
      Agreement.

     

    "Transferee"
      has the
      meaning assigned to such term in Section 7.08(b).

     

    "Unapplied
      Early Termination Advance"
      means
      any portion of an Early Termination Advance which is not an Applied Early
      Termination Advance.

     

    "Unapplied
      Provider Advance"
      means
      any portion of any Provider Advance that is not an Applied Provider
      Advance.

    

    "Unapplied
      Special Termination Advance"
      means
      any portion of a Special Termination Advance that is not an Applied Special
      Termination Advance.

    

    "Unpaid
      Advance"
      has the
      meaning assigned to such term in Section 2.05.

     

    (b) 
      For
      the
      purposes of this Agreement, the following terms shall have the respective
      meanings assigned to such terms in the Intercreditor Agreement:

     

    "Acceleration",
      "Cash
      Collateral Account",
      "Certificate",
      "Certificateholder",
      "Closing
      Date",
      "Continental",
      "Continental
      Bankruptcy Event",
      "Controlling
      Party",
      "Corporate
      Trust Office",
      "Delivery
      Period Expiry Date",
      "Distribution
      Date",
      "Downgraded
      Facility",
      "Early
      Terminated Facility",
      "Equipment
      Notes",
      "Fee
      Letter",
      "Final
      Legal Distribution Date",
      "Financing
      Agreement",
      "Indenture",
      "Investment
      Earnings",
      "Liquidity
      Obligations",
      "Loan
      

     

    
      
        
          
          

        

        
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    Trustee",
      "Moody's",
      "Note
      Purchase Agreement",
      "Operative
      Agreements",
      "Participation
      Agreement",
      "Performing
      Equipment Note",
      "Person",
      "Pool
      Balance",
      "Rating
      Agencies",
      "Ratings
      Confirmation",
      "Regular
      Distribution Dates",
      "Replacement
      Liquidity Facility",
      "Required
      Amount",
      "Responsible
      Officer",
      "Scheduled
      Payment",
      "Special
      Payment",
      "Standard
      & Poor's",
      "Stated
      Interest Rate",
      "Subordination
      Agent",
      "Taxes",
      "Threshold
      Rating",
      "Trust",
      "Trust
      Agreement",
      "Trustee",
      "Underwriter",
      "Underwriting
      Agreement"
      and
      "Written
      Notice".

     

    Section
      1.02. Interpretation.
      For
      purposes of this Agreement, except as expressly provided or unless the context
      otherwise requires:

     

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

     

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

     

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

     

    (d) 
      the
      term
      "including" shall mean "including without limitation".

     

     

    ARTICLE
      II

     

    AMOUNT
      AND TERMS OF THE COMMITMENT

    
    

    
    

     

    Section
      2.01. The
      Advances.
      The
      Liquidity Provider hereby irrevocably agrees, on the terms and conditions
      hereinafter set forth, to make Advances to the Borrower from time to time on
      any
      Business Day during the period from the Effective Date until 1:00 p.m. (New
      York
      City time) on the Expiry Date (unless the obligations of the Liquidity Provider
      shall be earlier terminated in accordance with the terms of Section 2.04(b))
      in
      an aggregate amount at any time outstanding not to exceed the Maximum
      Commitment.

     

    Section
      2.02. Making
      the Advances.
      

     

    (a) 
      Interest Advances shall be made in one or more Borrowings by delivery to the
      Liquidity Provider of one or more written and completed Notices of Borrowing
      in
      substantially the form of Annex I attached hereto, signed by a Responsible
      Officer of the Borrower, in an amount not exceeding the Maximum Available
      Commitment at such time and shall be used solely for the payment when due of
      interest with respect to the Certificates at the Stated Interest Rate therefor
      in accordance with Sections 3.6(a) and 3.6(b) of the Intercreditor Agreement.
      Each Interest Advance made hereunder shall automatically reduce the Maximum
      Available Commitment and the amount available to be borrowed hereunder by
      subsequent Advances by the amount of such Interest Advance (subject to
      reinstatement as provided in the next sentence). Upon repayment to the Liquidity
      Provider in full or in part of the amount of any Interest 

     

    

    
      
        
          
          

        

        
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    Advance
      made pursuant to this Section 2.02(a), together with accrued interest thereon
      (as provided herein), the Maximum Available Commitment shall be reinstated
      by an
      amount equal to the amount of such Interest Advance so repaid but not to exceed
      the Maximum Commitment; provided,
      however,
      that
      the Maximum Available Commitment shall not be so reinstated at any time if
      (x)
      both a Performing Note Deficiency exists and a Liquidity Event of Default shall
      have occurred and be continuing, or (y) a Final Advance, a Provider Advance
      or a Special Termination Advance has been made or an Advance has been converted
      into a Final Advance.

     

    (b) 
      Subject
      to Section 2.10, an Early Termination Advance shall be made in a single
      Borrowing if the Liquidity Provider has delivered an Early Termination Notice
      in
      accordance with Section 3.6(d) of the Intercreditor Agreement (unless a
      Replacement Liquidity Facility to replace this Agreement shall have been
      delivered to the Borrower as contemplated by said Section 3.6(d) within the
      time
      period specified in such Section 3.6(d)) by delivery to the Liquidity Provider
      of a written and completed Notice of Borrowing in substantially the form of
      Annex II attached hereto, signed by a Responsible Officer of the Borrower,
      in an
      amount equal to the Maximum Available Commitment at such time, and shall be
      used
      to fund the Cash Collateral Account in accordance with Sections 3.6(d) and
      3.6(f) of the Intercreditor Agreement.

     

    (c) 
      [reserved]

     

    (d) 
      A
      Downgrade Advance shall be made in a single Borrowing upon the occurrence of
      a
      Downgrade Event (as provided for in Section 3.6(c) of the Intercreditor
      Agreement) unless a Replacement Liquidity Facility to replace this Agreement
      shall have been previously delivered to the Borrower in accordance with such
      Section 3.6(c), by delivery to the Liquidity Provider of a written and
      completed Notice of Borrowing in substantially the form of Annex IV attached
      hereto, signed by a Responsible Officer of the Borrower, in an amount equal
      to
      the Maximum Available Commitment at such time, and shall be used to fund the
      Cash Collateral Account in accordance with Sections 3.6(c) and 3.6(f) of the
      Intercreditor Agreement.

     

    (e) 
      A
      Final
      Advance shall be made in a single Borrowing upon the receipt by the Borrower
      of
      a Termination Notice from the Liquidity Provider pursuant to Section 6.01 hereof
      by delivery to the Liquidity Provider of a written and completed Notice of
      Borrowing in substantially the form of Annex V attached hereto, signed by a
      Responsible Officer of the Borrower, in an amount equal to the Maximum Available
      Commitment at such time, and shall be used to fund the Cash Collateral Account
      in accordance with Sections 3.6(f) and 3.6(i) of the Intercreditor
      Agreement.

     

    (f) 
      A
      Special
      Termination Advance shall be made in a single Borrowing upon the receipt by
      the
      Borrower of a Special Termination Notice from the Liquidity Provider pursuant
      to
      Section 6.02, by delivery to the Liquidity Provider of a written and completed
      Notice of Borrowing in substantially the form of Annex VIII, signed by a
      Responsible Officer of the Borrower, in an amount equal to the Maximum Available
      Commitment at such time, and shall be used to fund the Cash Collateral Account
      in accordance with Sections 3.6(f) and 3.6(k) of the Intercreditor
      Agreement.

     

    (g) 
      Each
      Borrowing shall be made on notice in writing (a "Notice
      of Borrowing")
      in
      substantially the form required by Section 2.02(a), 2.02(b), 2.02(d), 2.02(e)
      or

     

    

    
      
        
          
          

        

        
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    2.02(f)
      as the case may be, given by the Borrower to the Liquidity Provider. Each Notice
      of Borrowing shall be effective upon delivery of a copy thereof to the Liquidity
      Provider's New York branch (with a copy to the Lending Office) at the address
      specified in Section 7.02. If a Notice of Borrowing is delivered by the Borrower
      in respect of any Borrowing no later than 1:00 p.m. (New York City time) on
      a
      Business Day, upon satisfaction of the conditions precedent set forth in Section
      4.02 with respect to a requested Borrowing, the Liquidity Provider shall make
      available to the Borrower, in accordance with its payment instructions, the
      amount of such Borrowing in U.S. dollars and in immediately available funds,
      before 4:00 p.m. (New York City time) on such Business Day or on such later
      Business Day specified in such Notice of Borrowing. If a Notice of Borrowing
      is
      delivered by the Borrower in respect of any Borrowing on a day that is not
      a
      Business Day or after 1:00 p.m. (New York City time) on a Business Day, upon
      satisfaction of the conditions precedent set forth in Section 4.02 with respect
      to a requested Borrowing, the Liquidity Provider shall make available to the
      Borrower, in accordance with its payment instructions, the amount of such
      Borrowing in U.S. dollars and in immediately available funds, before 1:00 p.m.
      (New York City time) on the first Business Day next following the day of receipt
      of such Notice of Borrowing or on such later Business Day specified by the
      Borrower in such Notice of Borrowing. Payments of proceeds of a Borrowing shall
      be made by wire transfer of immediately available funds to the Borrower in
      accordance with such wire transfer instructions as the Borrower shall furnish
      from time to time to the Liquidity Provider for such purpose. Each Notice of
      Borrowing shall be irrevocable and binding on the Borrower.

     

    (h) 
      Upon
      the
      making of any Advance requested pursuant to a Notice of Borrowing in accordance
      with the Borrower's payment instructions, the Liquidity Provider shall be fully
      discharged of its obligation hereunder with respect to such Notice of Borrowing,
      and the Liquidity Provider shall not thereafter be obligated to make any further
      Advances hereunder in respect of such Notice of Borrowing to the Borrower or
      to
      any other Person. If the Liquidity Provider makes an Advance requested pursuant
      to a Notice of Borrowing before 1:00 p.m. (New York City time) on the second
      Business Day after the date of payment specified in Section 2.02(g), the
      Liquidity Provider shall have fully discharged its obligations hereunder with
      respect to such Advance and an event of default shall not have occurred
      hereunder. Following the making of any Advance pursuant to Section 2.02(b),
      2.02(d), 2.02(e) or 2.02(f) hereof to fund the Cash Collateral Account, the
      Liquidity Provider shall have no interest in or rights to the Cash Collateral
      Account, the funds constituting such Advance or any other amounts from time
      to
      time on deposit in the Cash Collateral Account; provided
      that the
      foregoing shall not affect or impair the obligations of the Subordination Agent
      to make the distributions contemplated by Section 3.6(e) or 3.6(f) of the
      Intercreditor Agreement and provided further,
      that
      the foregoing shall not affect or impair the rights of the Liquidity Provider
      to
      provide written instructions with respect to the investment and reinvestment
      of
      amounts in the Cash Collateral Account to the extent provided in Section 2.2(b)
      of the Intercreditor Agreement. By paying to the Borrower proceeds of Advances
      requested by the Borrower in accordance with the provisions of this Agreement,
      the Liquidity Provider makes no representation as to, and assumes no
      responsibility for, the correctness or sufficiency for any purpose of the amount
      of the Advances so made and requested.

    

    Section
      2.03. Fees.
      The
      Borrower agrees to pay to the Liquidity Provider the fees set forth in the
      Fee
      Letter applicable to this Agreement.

    

    

    
      
        
          
          

        

        
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      Section
        2.04. Reductions
        or Termination of the Maximum Commitment. 

    

    

    (a) 
      Automatic
      Reduction.
      Promptly following each date on which the Required Amount is reduced as a result
      of a reduction (or deemed reduction) in the Pool Balance of the Certificates
      or
      otherwise, the Maximum Commitment shall automatically be reduced to an amount
      equal to such reduced Required Amount (as calculated by the Borrower);
provided
      that on
      the first Regular Distribution Date, the Maximum Commitment shall automatically
      be reduced to the then Required Amount. The Borrower shall give notice of any
      such automatic reduction of the Maximum Commitment to the Liquidity Provider
      within two Business Days thereof. The failure by the Borrower to furnish any
      such notice shall not affect such automatic reduction of the Maximum
      Commitment.

    

    (b) 
      Termination.
      The
      obligation of the Liquidity Provider to make further Advances hereunder shall
      automatically and irrevocably terminate, and the Borrower shall not be entitled
      to request any further Borrowing hereunder upon:

     

    (i)    the
      making of any Provider Advance;

     

    (ii)    the
      making of a Special Termination Advance;

     

    (iii)    the
      making of, or conversion to, a Final Advance; or

     

    (iv)    the
      occurrence of the Termination Date.

     

    Section
      2.05. Repayments
      of Interest Advances, the Special Termination Advance or the Final
      Advance.
      Subject
      to Sections 2.06, 2.07 and 2.09 hereof, the Borrower hereby agrees, without
      notice of an Advance or demand for repayment from the Liquidity Provider (which
      notice and demand are hereby waived by the Borrower), to pay, or to cause to
      be
      paid, to the Liquidity Provider on each date on which the Liquidity Provider
      shall make an Interest Advance, the Special Termination Advance or the Final
      Advance, an amount equal to (a) the amount of such Advance (any such
      Advance, until repaid, is referred to herein as an "Unpaid
      Advance"),
      plus
      (b) interest on the amount of each such Unpaid Advance as provided in Section
      3.07 hereof; provided
      that if
      (i) the Liquidity Provider shall make a Provider Advance at any time after
      making one or more Interest Advances which shall not have been repaid in
      accordance with this Section 2.05 or (ii) this Liquidity Facility shall become
      a
      Downgraded Facility or an Early Terminated Facility at any time when
      unreimbursed Interest Advances have reduced the Maximum Available Commitment
      to
      zero, then such Interest Advances shall cease to constitute Unpaid Advances
      and
      shall be deemed to have been changed into an Applied Downgrade Advance or an
      Applied Early Termination Advance, as the case may be, for all purposes of
      this
      Agreement (including, without limitation, for the purpose of determining when
      such Interest Advance is required to be repaid to the Liquidity Provider in
      accordance with Section 2.06 and for the purposes of Section 2.06(b));
provided,
      further,
      that
      amounts in respect of a Special Termination Advance withdrawn from the Cash
      Collateral Account for the purpose of paying interest on the Certificates in
      accordance with 3.6(f) of the Intercreditor Agreement (the amount of such
      withdrawal being an "Applied
      Special Termination Advance")
      shall
      thereafter be treated as an Interest Advance under this Agreement for the
      purposes of determining the Applicable Liquidity Rate for interest payable
      thereon; and provided,
      further,
      

     

    

    
      
        
          
          

        

        
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    that
      if,
      following the making of a Special Termination Advance, the Liquidity Provider
      delivers a Termination Notice to the Borrower pursuant to Section 6.01 hereof,
      such Special Termination Advance shall thereafter be treated as a Final Advance
      under this Agreement for purposes of determining the Applicable Liquidity Rate
      for interest payable thereon and the obligation of repayment thereof. The
      Borrower and the Liquidity Provider agree that the repayment in full of each
      Interest Advance, the Special Termination Advance and Final Advance on the
      date
      such Advance is made is intended to be a contemporaneous exchange for new value
      given to the Borrower by the Liquidity Provider. 

     

    Section
      2.06. Repayments
      of Provider Advances.
      

     

    (a) 
      Amounts advanced hereunder in respect of a Provider Advance shall be deposited
      in the Cash Collateral Account and invested and withdrawn from the Cash
      Collateral Account as set forth in Sections 3.6(c), 3.6(d), 3.6(e) and 3.6(f)
      of
      the Intercreditor Agreement. Subject to Sections 2.07 and 2.09, the Borrower
      agrees to pay to the Liquidity Provider, on each Regular Distribution Date,
      commencing on the first Regular Distribution Date after the making of a Provider
      Advance, interest on the principal amount of any such Provider Advance as
      provided in Section 3.07 hereof; provided,
      however,
      that
      amounts in respect of a Provider Advance withdrawn from the Cash Collateral
      Account for the purpose of paying interest on the Certificates in accordance
      with Section 3.6(f) of the Intercreditor Agreement (the amount of any such
      withdrawal being (x) in the case of a Downgrade Advance, an "Applied
      Downgrade Advance"
      and (y)
      in the case of an Early Termination Advance, an "Applied
      Early Termination Advance"
      and,
      together with an Applied Downgrade Advance, an "Applied
      Provider Advance")
      shall
      thereafter (subject to Section 2.06(b)) be treated as an Interest Advance under
      this Agreement for purposes of determining the Applicable Liquidity Rate for
      interest payable thereon; provided further,
      however,
      that
      if, following the making of a Provider Advance, the Liquidity Provider delivers
      a Termination Notice to the Borrower pursuant to Section 6.01 hereof, such
      Provider Advance shall thereafter be treated as a Final Advance under this
      Agreement for purposes of determining the Applicable Liquidity Rate for interest
      payable thereon and the obligation for repayment thereof. Subject to Sections
      2.07 and 2.09 hereof, immediately upon the withdrawal of any amounts from the
      Cash Collateral Account pursuant to Section 3.6(f) of the Intercreditor
      Agreement on account of a reduction (or deemed reduction) in the Required
      Amount, the Borrower shall repay to the Liquidity Provider a portion of the
      Provider Advances in a principal amount equal to such reduction, plus interest
      on the principal amount prepaid as provided in Section 3.07 hereof.

     

    (b) 
      At
      any
      time when an Applied Provider Advance (or any portion thereof) is outstanding,
      upon the deposit in the Cash Collateral Account of any amount pursuant to clause
      "third" of Section 2.4(b) of the Intercreditor Agreement, clause "third"
      of
      Section 3.2 of the Intercreditor Agreement or clause "fourth"
      of
      Section 3.3 of the Intercreditor Agreement (any such amount being a
      "Replenishment
      Amount")
      for
      the purpose of replenishing or increasing the balance thereof up to the Required
      Amount at such time, (i) the aggregate outstanding principal amount of all
      Applied Provider Advances (and of Provider Advances treated as an Interest
      Advance for purposes of determining the Applicable Liquidity Rate for interest
      payable thereon) shall be automatically reduced by the amount of such
      Replenishment Amount and (ii) the aggregate outstanding principal amount of
      all
      Unapplied Provider Advances shall be automatically increased by the amount
      of
      such Replenishment Amount.

     

    

    
      
        
          
          

        

        
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    (c) 
      Upon
      the
      provision of a Replacement Liquidity Facility in replacement of this Agreement
      in accordance with Section 3.6(e) of the Intercreditor Agreement, amounts
      remaining on deposit in the Cash Collateral Account after giving effect to
      any
      Applied Provider Advance on the date of such replacement shall be reimbursed
      to
      the replaced Liquidity Provider, but only to the extent such amounts are
      necessary to repay in full to the replaced Liquidity Provider all amounts owing
      to it hereunder.

     

    Section
      2.07. Payments
      to the Liquidity Provider Under the Intercreditor Agreement.
      In
      order to provide for payment or repayment to the Liquidity Provider of any
      amounts hereunder, the Intercreditor Agreement provides that amounts available
      and referred to in Articles II and III of the Intercreditor Agreement, to the
      extent payable to the Liquidity Provider pursuant to the terms of the
      Intercreditor Agreement (including, without limitation, Section 3.6(f) of the
      Intercreditor Agreement), shall be paid to the Liquidity Provider in accordance
      with the terms thereof. Amounts so paid to, and not required to be returned
      by,
      the Liquidity Provider shall be applied by the Liquidity Provider to Liquidity
      Obligations then due and payable in accordance with the Intercreditor Agreement
      and shall discharge in full the corresponding obligations of the Borrower
      hereunder (or, if not provided for in the Intercreditor Agreement, then in
      such
      manner as the Liquidity Provider shall deem appropriate).

     

    Section
      2.08. Book
      Entries.
      The
      Liquidity Provider shall maintain in accordance with its usual practice an
      account or accounts evidencing the indebtedness of the Borrower resulting from
      Advances made from time to time and the amounts of principal and interest
      payable hereunder and paid from time to time in respect thereof; provided,
      however,
      that
      the failure by the Liquidity Provider to maintain such account or accounts
      shall
      not affect the obligations of the Borrower in respect of Advances.

     

    Section
      2.09. Payments
      from Available Funds Only.
      All
      payments to be made by the Borrower under this Agreement shall be made only
      from
      the amounts that constitute Scheduled Payments, Special Payments or payments
      under the Fee Letter, Section 9.1 of the Participation Agreements and Section
      6
      of the Note Purchase Agreement and only to the extent that the Borrower shall
      have sufficient income or proceeds therefrom to enable the Borrower to make
      payments in accordance with the terms hereof after giving effect to the priority
      of payments and other applicable provisions set forth in the Intercreditor
      Agreement. The Liquidity Provider agrees that it will look solely to such
      amounts to the extent available for distribution to it as provided in the
      Intercreditor Agreement and this Agreement. The Borrower, in its individual
      capacity, is not personally liable to the Liquidity Provider for any amounts
      payable or liability under this Agreement, except as expressly provided in
      this
      Agreement, the Intercreditor Agreement or any Participation Agreement. Amounts
      on deposit in the Cash Collateral Account shall be available to the Borrower
      to
      make payments under this Agreement only to the extent and for the purposes
      expressly contemplated in Section 3.6(f) of the Intercreditor
      Agreement.

     

    Section
      2.10. Early
      Termination Advance.
      At any
      time during an Early Termination Notice Period, the Liquidity Provider shall
      have the right in its sole discretion to elect to terminate its obligations
      to
      make Advances under this Agreement upon not less than 25 days' written notice
      (the "Early
      Termination Notice")
      to the
      Borrower. If the Liquidity Provider delivers an Early Termination Notice to
      the
      Borrower during the Early Termination Notice Period (and if the Liquidity
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    3.6(e)
      of
      the Intercreditor Agreement on or before the expiry of the Early Termination
      Notice Period), the Borrower shall be entitled at any time prior to the Early
      Termination Date to request an Early Termination Advance in accordance with
      Section 2.02(b) hereof and Section 3.6(d) of the Intercreditor
      Agreement.

     

     

    ARTICLE
      III

     

    OBLIGATIONS
      OF THE BORROWER

     

    Section
      3.01. Increased
      Costs. 
      The
      Borrower shall pay to the Liquidity Provider from time to time such amounts
      as
      may be necessary to compensate the Liquidity Provider for any increased costs
      incurred by the Liquidity Provider which are attributable to its making or
      maintaining any Advances hereunder or its obligation to make any such Advances
      hereunder, or any reduction in any amount receivable by the Liquidity Provider
      under this Agreement or the Intercreditor Agreement in respect of any such
      Advances or such obligation (such increases in costs and reductions in amounts
      receivable being herein called "Additional
      Costs"),
      resulting from any change after the date of this Agreement in U.S. federal,
      state, municipal, or foreign laws or regulations (including Regulation D of
      the
      Board of Governors of the Federal Reserve System), or the adoption or making
      after the date of this Agreement of any interpretations, directives, or
      requirements applying to a class of banks including the Liquidity Provider
      under
      any U.S. federal, state, municipal, or any foreign laws or regulations (whether
      or not having the force of law) by any court, central bank or other supervisory
      authority charged with the interpretation or administration thereof (a
      "Regulatory
      Change"),
      which: (1) changes the basis of taxation of any amounts payable to the Liquidity
      Provider under this Agreement in respect of any such Advances or such obligation
      (other than with respect to Excluded Taxes); or (2) imposes or modifies any
      reserve, special deposit, compulsory loan or similar requirements relating
      to
      any extensions of credit or other assets of, or any deposits with or other
      liabilities of, the Liquidity Provider (including any such Advances or such
      obligation or any deposits referred to in the definition of LIBOR or related
      definitions).

     

    The
      Liquidity Provider will notify the Borrower of any event occurring after the
      date of this Agreement that will entitle the Liquidity Provider to compensation
      pursuant to this Section 3.01 as promptly as practicable after it obtains
      knowledge thereof and determines to request such compensation, which notice
      shall describe in reasonable detail the calculation of the amounts owed under
      this Section. Determinations by the Liquidity Provider for purposes of this
      Section 3.01 of the effect of any Regulatory Change on its costs of making
      or
      maintaining Advances or on amounts receivable by it in respect of Advances,
      and
      of the additional amounts required to compensate the Liquidity Provider in
      respect of any Additional Costs, shall be prima facie evidence of the amount
      owed under this Section.

     

    Notwithstanding
      the preceding two paragraphs, the Liquidity Provider and the Subordination
      Agent
      agree that any permitted assignee or participant of the initial Liquidity
      Provider which is not a bank shall not be entitled to the benefits of the
      preceding two paragraphs (but without limiting the provisions of Section 7.08
      hereof).

     

    Section
      3.02. Capital
      Adequacy.
      If (1)
      the adoption or change, after the date hereof, of any applicable governmental
      law, rule or regulation regarding capital adequacy, (2)  

     

    

    
      
        
          
          

        

        
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    any
      change, after the date hereof, in the interpretation or administration of any
      such law, rule or regulation by any central bank or other supervisory authority
      charged with the interpretation or administration thereof or (3) compliance
      by
      the Liquidity Provider or any corporation controlling the Liquidity Provider
      with any applicable guideline or request of general applicability, issued after
      the date hereof, by any central bank or other supervisory authority (whether
      or
      not having the force of law) that constitutes a change of the nature described
      in clause (2), has the effect of requiring an increase in the amount of capital
      required to be maintained by the Liquidity Provider or any corporation
      controlling the Liquidity Provider, and such increase is based upon the
      Liquidity Provider's obligations or Advances hereunder and other similar
      obligations or advances, the Borrower shall, subject to the provisions of
      Section 3.11, pay to the Liquidity Provider from time to time such additional
      amount or amounts as are necessary to compensate the Liquidity Provider for
      such
      portion of such increase as shall be reasonably allocable to the Liquidity
      Provider's obligations to the Borrower hereunder.

     

    The
      Liquidity Provider will notify the Borrower of any event occurring after the
      date of this Agreement that will entitle the Liquidity Provider to compensation
      pursuant to this Section 3.02 as promptly as practicable after it obtains
      knowledge thereof and determines to request such compensation, which notice
      shall describe in reasonable detail the calculation of the amounts owed under
      this Section. Determinations by the Liquidity Provider for purposes of this
      Section 3.02 of the effect of any increase in the amount of capital required
      to
      be maintained by the Liquidity Provider and of the amount allocable to the
      Liquidity Provider's obligations to the Borrower hereunder shall be prima facie
      evidence of the amounts owed under this Section.

     

    Notwithstanding
      the preceding two paragraphs, the Liquidity Provider and the Subordination
      Agent
      agree that any permitted assignee or participant of the initial Liquidity
      Provider which is not a bank shall not be entitled to the benefits of the
      preceding two paragraphs (but without limiting the provisions of Section 7.08
      hereof).

     

    Section
      3.03. Payments
      Free of Deductions.
      

     

    (a) 
      All
      payments made by the Borrower under this Agreement shall be made free and clear
      of and without reduction or withholding for or on account of any present or
      future Taxes of any nature whatsoever now or hereafter imposed, levied,
      collected, withheld or assessed, other than Excluded Withholding Taxes (such
      non-excluded Taxes being referred to herein, collectively, as "Indemnified
      Taxes"
      and,
      individually, as an "Indemnified
      Tax")
      unless
      any such reduction or withholding is required by applicable law. If any Taxes
      are required to be withheld from any amounts payable to the Liquidity Provider
      under this Agreement, (i) the Borrower shall within the time prescribed therefor
      by applicable law pay to the appropriate governmental or taxing authority the
      full amount of any such Taxes (including any additional Tax required to be
      deducted or withheld in respect of the additional amounts payable under clause
      (ii) hereof) and make such reports or returns in connection therewith at the
      time or times and in the manner prescribed by applicable law, and (ii) in the
      case of Indemnified Taxes, the amounts payable to the Liquidity Provider shall
      be increased to the extent necessary to yield to the Liquidity Provider (after
      deduction or withholding for or on account of all Indemnified Taxes and any
      additional Taxes required to be deducted or withheld or payable by the Liquidity
      Provider by reason of the receipt or accrual of the additional amounts payable
      pursuant to this clause (ii)) interest or any other such amounts payable under
      this Agreement at the rates or in the 

     

    

    
      
        
          
          

        

        
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    amounts
      which would have been due or received by it if no such reduction or withholding
      had been required. If the Liquidity Provider (including a successor Liquidity
      Provider) is not organized under the laws of the United States or any state
      thereof, to the extent it is eligible to do so, the Liquidity Provider agrees
      to
      provide to the Borrower, prior to the first date any amount is payable to it
      hereunder, two executed original copies of Internal Revenue Service Form W-8BEN
      or W-8ECI, as appropriate, or any successor or other form prescribed by the
      Internal Revenue Service, certifying that the Liquidity Provider is exempt
      from
      or entitled to a reduced rate of United States withholding Tax on payments
      pursuant to this Agreement. In addition, the Liquidity Provider will provide,
      from time to time upon the reasonable request of the Borrower, such additional
      forms or documentation as may be necessary to establish an available exemption
      from (or an entitlement to a reduced rate of) withholding Tax on payments
      hereunder. Within 30 days after the date of each payment hereunder, the Borrower
      shall furnish to the Liquidity Provider an original or certified copy of a
      receipt (or other documentary evidence reasonably acceptable to the Liquidity
      Provider) evidencing the payment of the Taxes applicable to such
      payment.

     

    (b) 
      If the Liquidity Provider (including a successor Liquidity Provider) is not
      organized under the laws of the United States or any state thereof, all Advances
      made by the Liquidity Provider under this Agreement shall be made free and
      clear
      of, and without reduction for or on account of, any Taxes that are imposed
      by a
      jurisdiction in which the Liquidity Provider is organized, has its Lending
      Office or maintains its principal place of business unless such reduction or
      withholding is required by applicable law. If any such Taxes are required to
      be
      withheld or deducted from any Advances, the Liquidity Provider shall
      (i) within the time prescribed therefor by applicable law pay to the
      appropriate governmental or taxing authority the full amount of any such Taxes
      (and any additional Taxes in respect of the additional amounts payable under
      clause (ii) hereof) and make such reports or returns in connection
      therewith at the time or times and in the manner prescribed by applicable law,
      and (ii) pay to the Borrower an additional amount which (after deduction of
      all such Taxes) shall be sufficient to yield to the Borrower the full amount
      that would have been received by it had no such withholding or deduction been
      required. The Borrower shall, for United States federal income tax purposes
      and
      for all purposes hereunder, treat such payments as Interest Advances, and,
      as
      such, will treat such payments as loans made by the Liquidity Provider to the
      Borrower, unless otherwise required by law (it being understood and agreed
      that
      the treatment of such additional amounts shall not reduce the Maximum Available
      Commitment hereunder). Within 30 days after the date of each payment hereunder,
      the Liquidity Provider shall furnish to the Borrower an original or certified
      copy of a receipt (or other documentary evidence reasonably acceptable to the
      Borrower) evidencing the payment of the Taxes applicable to such
      payment.

     

    (c) 
      If any exemption from, or reduction in the rate of, any Taxes required to be
      deducted or withheld from amounts payable by the Liquidity Provider hereunder
      is
      reasonably available to the Borrower to establish that payments under this
      Agreement are exempt from (or entitled to a reduced rate of) Tax, the Borrower
      shall deliver to the Liquidity Provider such form or forms and such other
      evidence of the eligibility of the Borrower for such exemption or reduction
      as
      the Liquidity Provider may reasonably identify to the Borrower as being required
      as a condition to exemption from, or reduction in the rate of, any such
      Taxes.

     

     

    

    
      
        
          
          

        

        
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      Section
        3.04. Payments.
        The Borrower shall make or cause to be made each payment to the Liquidity
        Provider under this Agreement so as to cause the same to be received by the
        Liquidity Provider not later than 1:00 p.m. (New York City time) on the day
        when
        due. The Borrower shall make all such payments in U.S. dollars, to the Liquidity
        Provider in immediately available funds, by wire transfer to Deutsche Bank
        Trust
        Company Americas, New York, ABA No. 021-001-033, Swift Code: BKTRUS33,
        Account Holder: Landesbank Baden-Württemberg, Stuttgart, Account
        No. 04-095-107, Swift Code: SOLADEST, Reference: Loan Administration,
        Continental EETC 2005-ERJ1; or to such other bank account in the United States
        as the Liquidity Provider may from time to time direct the Subordination
        Agent.

    

     

    Section
      3.05. Computations.
      All
      computations of interest based on the Base Rate shall be made on the basis
      of a
      year of 365 or 366 days, as the case may be, and all computations of interest
      based on LIBOR shall be made on the basis of a year of 360 days, in each case
      for the actual number of days (including the first day but excluding the last
      day) occurring in the period for which such interest is payable.

     

    Section
      3.06. Payment
      on Non-Business Days.
      Whenever any payment to be made hereunder shall be stated to be due on a day
      other than a Business Day, such payment shall be made on the next succeeding
      Business Day and such extension of time shall be included in the computation
      of
      interest payable hereunder (and if so made, shall be deemed to have been made
      when due).

     

    Section
      3.07. Interest.
      

     

    (a) 
      Subject
      to Section 2.09, the Borrower shall pay, or shall cause to be paid, without
      duplication, interest on (i) the unpaid principal amount of each Advance from
      and including the date of such Advance (or, in the case of an Applied Provider
      Advance or Applied Special Termination Advance, from and including the date
      on
      which the amount thereof was withdrawn from the Cash Collateral Account to
      pay
      interest on the Certificates) to but excluding the date such principal amount
      shall be paid in full (or, in the case of an Applied Provider Advance or Applied
      Special Termination Advance, the date on which the Cash Collateral Account
      is
      fully replenished in respect of such Advance) and (ii) any other amount due
      hereunder (whether fees, commissions, expenses or other amounts or, to the
      extent permitted by law, installments of interest on Advances or any such other
      amount) that is not paid when due (whether at stated maturity, by acceleration
      or otherwise) from and including the due date thereof to but excluding the
      date
      such amount is paid in full, in each such case, at a fluctuating interest rate
      per annum for each day equal to the Applicable Liquidity Rate (as defined below)
      for such Advance or such other amount, as the case may be, as in effect for
      such
      day, but in no event at a rate per annum greater than the maximum rate permitted
      by applicable law; provided,
      however,
      that,
      if at any time the otherwise applicable interest rate as set forth in this
      Section 3.07 shall exceed the maximum rate permitted by applicable law, then
      any
      subsequent reduction in such interest rate will not reduce the rate of interest
      payable pursuant to this Section 3.07 below the maximum rate permitted by
      applicable law until the total amount of interest accrued equals the amount
      of
      interest that would have accrued if such otherwise applicable interest rate
      as
      set forth in this Section 3.07 had at all times been in effect. 

     

    

    
      
        
          
          

        

        
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    (b) 
      Each
      Advance (including, without limitation, each outstanding Unapplied Provider
      Advance and Unapplied Special Termination Advance) will be either a Base Rate
      Advance or a LIBOR Advance as provided in this Section 3.07. Each such Advance
      will be a Base Rate Advance for the period from the date of its borrowing to
      (but excluding) the third London/Stuttgart Business Day following the Liquidity
      Provider's receipt of the Notice of Borrowing for such Advance. Thereafter,
      such
      Advance shall be a LIBOR Advance; provided
      that the
      Borrower (at the direction of the Controlling Party, so long as the Liquidity
      Provider is not the Controlling Party) may (x) convert the Final Advance into
      a
      Base Rate Advance on the last day of an Interest Period for such Advance by
      giving the Liquidity Provider no less than four Business Days' prior written
      notice of such election or (y) elect to maintain the Final Advance as a Base
      Rate Advance by not requesting a conversion of the Final Advance to a LIBOR
      Advance under Clause (5) of the applicable Notice of Borrowing (or, if such
      Final Advance is deemed to have been made, without delivery of a Notice of
      Borrowing pursuant to Section 2.06, by requesting, prior to 11:00 a.m. (New
      York
      City time) on the first Business Day immediately following the Borrower's
      receipt of the applicable Termination Notice, that such Final Advance not be
      converted from a Base Rate Advance to a LIBOR Advance).

     

    (c) 
      Each
      LIBOR Advance shall bear interest during each Interest Period at a rate per
      annum equal to LIBOR for such Interest Period plus the Applicable Margin for
      such LIBOR Advance, payable in arrears on the last day of such Interest Period
      and, in the event of the payment of principal of such LIBOR Advance on a day
      other than such last day, on the date of such payment (to the extent of interest
      accrued on the amount of principal repaid).

     

    (d) 
      Each
      Base
      Rate Advance shall bear interest at a rate per annum equal to the Base Rate
      in
      effect from time to time plus the Applicable Margin for such Base Rate Advance,
      payable in arrears on each Regular Distribution Date and, in the event of the
      payment of principal of such Base Rate Advance on a day other than a Regular
      Distribution Date, on the date of such payment (to the extent of interest
      accrued on the amount of principal repaid).

     

    (e) 
      Each
      amount not paid when due hereunder (whether fees, commissions, expenses or
      other
      amounts or, to the extent permitted by applicable law, installments of interest
      on Advances but excluding Advances) shall bear interest at a rate per annum
      equal to the Base Rate plus 2.00% until paid.

     

    (f) 
      Each
      change in the Base Rate shall become effective immediately. The rates of
      interest specified in this Section 3.07 with respect to any Advance or other
      amount shall be referred to as the "Applicable
      Liquidity Rate".

     

    Section
      3.08. Replacement
      of Borrower.
      From
      time to time and subject to the successor Borrower's meeting the eligibility
      requirements set forth in Section 6.9 of the Intercreditor Agreement applicable
      to the Subordination Agent, upon the effective date and time specified in a
      written and completed Notice of Replacement Subordination Agent in substantially
      the form of Annex VII attached hereto (a "Notice
      of Replacement Subordination Agent")
      delivered to the Liquidity Provider by the then Borrower, the successor Borrower
      designated therein shall be substituted for the Borrower for all purposes
      hereunder.

     

    

    
      
        
          
          

        

        
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      Section
        3.09. Funding
        Loss Indemnification. The Borrower shall pay to the Liquidity
        Provider, upon the request of the Liquidity Provider, such amount or amounts
        as
        shall be sufficient (in the reasonable opinion of the Liquidity Provider)
        to
        compensate it for any loss, cost, or expense incurred by reason of the
        liquidation or redeployment of deposits or other funds acquired by the Liquidity
        Provider to fund or maintain any LIBOR Advance (but excluding loss of
        anticipated profits) incurred as a result of:

    

     

    (a) 
      Any
      repayment of a LIBOR Advance on a date other than the last day of the Interest
      Period for such Advance; or

     

    (b) 
      Any
      failure by the Borrower to borrow a LIBOR Advance on the date for borrowing
      specified in the relevant notice under Section 2.02.

     

    Section
      3.10. Illegality.
      Notwithstanding any other provision in this Agreement, if any change in any
      applicable law, rule or regulation, or any change in the interpretation or
      administration thereof by any governmental authority, central bank or comparable
      agency charged with the interpretation or administration thereof, or compliance
      by the Liquidity Provider (or its Lending Office) with any request or directive
      (whether or not having the force of law) of any such authority, central bank
      or
      comparable agency shall make it unlawful or impossible for the Liquidity
      Provider (or its Lending Office) to maintain or fund its LIBOR Advances, then
      upon notice to the Borrower by the Liquidity Provider, the outstanding principal
      amount of LIBOR Advances shall be converted to Base Rate Advances (a)
      immediately upon demand of the Liquidity Provider, if such change or compliance
      with such request, in the judgment of the Liquidity Provider, requires immediate
      repayment; or (b) at the expiration of the last Interest Period to expire before
      the effective date of any such change or request.

     

    Section
      3.11. Mitigation.
      If a
      condition arises or an event occurs which would, or would upon the giving of
      notice, result in the payment of any additional costs or amounts pursuant to
      Section 3.01, 3.02 or 3.03 or require the conversion of any Advance pursuant
      to
      Section 3.10, the Liquidity Provider, promptly upon becoming aware of the same,
      shall notify the Borrower and shall use reasonable efforts (consistent with
      applicable legal and regulatory restrictions) to mitigate the effects of such
      condition or event, including the designation of a different Lending Office
      or
      furnishing of the proper certificates under any applicable tax laws, tax
      treaties and conventions to the extent that such certificates are legally
      available to the Liquidity Provider; provided,
      that
      the Liquidity Provider shall be under no obligation to take any step that,
      in
      its good-faith opinion would (i) result in its incurring any additional costs
      in
      performing its obligations hereunder unless the Borrower has agreed to reimburse
      it therefor or (ii) be otherwise disadvantageous to the Liquidity Provider
      in
      the reasonable judgment of the Liquidity Provider.

     

     

    ARTICLE
      IV

     

    CONDITIONS
      PRECEDENT

     

    Section
      4.01. Conditions
      Precedent to Effectiveness of Section 2.01.
      Section
      2.01 of this Agreement shall become effective on and as of the first date (the
      "Effective
      Date")
      on
      which the following conditions precedent have been satisfied or
      waived:

     

    

    
      
        
          
          

        

        
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     (a) 
      The
      Liquidity Provider shall have received each of the following, and in the case
      of
      each document delivered pursuant to paragraphs (i), (ii) and (iii), each in
      form
      and substance satisfactory to the Liquidity Provider:

    
       

      

        
          
            	
                     

                  	
                    (i)

                     

                  	
                    This
                      Agreement duly executed on behalf of the Borrower and the Fee
                      Letter
                      applicable to this Agreement duly executed on behalf of each
                      of the
                      parties thereto (other than the Liquidity Provider);

                     

                  
	 	
                    (ii)

                     

                  	
                    The
                      Intercreditor Agreement duly executed on behalf of each of
                      the parties
                      thereto (other than the Liquidity Provider);

                     

                  
	 	
                    (iii)

                     

                  	
                    Fully
                      executed copies of each of the Operative Agreements duly executed
                      and
                      delivered on or before the Closing Date (other than this Agreement,
                      the
                      Fee Letter applicable to this Agreement and the Intercreditor
                      Agreement);

                     

                  
	 	
                    (iv)

                     

                  	
                    A
                      copy of the Prospectus Supplement and specimen copies of the
                      Certificates;

                     

                  
	 	
                    (v)

                     

                  	
                    An
                      executed copy of each document, instrument, certificate and
                      opinion
                      delivered on or before the Closing Date pursuant to the Trust
                      Agreement,
                      the Intercreditor Agreement and the other Operative Agreements
                      (in the
                      case of each such opinion, other than the opinion of counsel
                      for the
                      Underwriter, either addressed to the Liquidity Provider or
                      accompanied by
                      a letter from the counsel rendering such opinion to the effect
                      that the
                      Liquidity Provider is entitled to rely on such opinion as of
                      its date as
                      if it were addressed to the Liquidity Provider);

                     

                  
	 	
                    (vi)

                     

                  	
                    Evidence
                      that there shall have been made and shall be in full force
                      and effect, all
                      filings, recordings and/or registrations, and there shall have
                      been given
                      or taken any notice or other similar action as may be reasonably
                      necessary
                      or, to the extent reasonably requested by the Liquidity Provider,
                      reasonably advisable, in order to establish, perfect, protect
                      and preserve
                      the right, title and interest, remedies, powers, privileges,
                      liens and
                      security interests of, or for the benefit of, the Trustee,
                      the Borrower
                      and the Liquidity Provider created by the Operative Agreements
                      executed
                      and delivered on or prior to the Closing Date; 

                     

                  
	 	
                    (vii)

                     

                  	
                    An
                      agreement from Continental, pursuant to which (A) Continental
                      agrees to
                      provide copies of quarterly financial statements and audited
                      annual
                      financial statements to the Liquidity Provider, and such other
                      information
                      as the Liquidity Provider shall reasonably request with respect
                      to the
                      transactions contemplated by the Operative Agreements, in each
                      case, only
                      to the extent that Continental is obligated to provide such
                      information
                      pursuant to Section 8.2.1 of the Leases to the parties thereto
                      and (B)
                      Continental agrees to allow the Liquidity Provider to inspect
                      

                  

          

           

        

      

    

    
 

    
      
        
          
          

        

        
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                Continental's
                  books and records regarding such transactions, and to discuss such
                  transactions with officers and employees of Continental; and

                 

              
	 	
                (viii)

                 

              	
                Such
                  other documents, instruments, opinions and approvals pertaining
                  to the
                  transactions contemplated hereby or by the other Operative Agreements
                  as
                  the Liquidity Provider shall have reasonably requested.

                 

              

      

    

     

    (b) 
      The
      following statement shall be true on and as of the Effective Date: no event
      has
      occurred and is continuing, or would result from the entering into of this
      Agreement or the making of any Advance, which constitutes a Liquidity Event
      of
      Default.

     

    (c) 
      The
      Liquidity Provider shall have received payment in full of all fees and other
      sums required to be paid to or for the account of the Liquidity Provider on
      or
      prior to the Effective Date.

     

    (d) 
      All
      conditions precedent to the issuance of the Certificates under the Trust
      Agreement shall have been satisfied or waived and all conditions precedent
      to
      the purchase of the Certificates by the Underwriter under the Underwriting
      Agreement shall have been satisfied or waived.

     

    (e) 
      The
      Borrower shall have received a certificate, dated the date hereof, signed by
      a
      duly authorized representative of the Liquidity Provider, certifying that all
      conditions precedent to the effectiveness of Section 2.01 have been satisfied
      or
      waived.

     

    Section
      4.02.  Conditions
      Precedent to Borrowing.
      The
      obligation of the Liquidity Provider to make an Advance on the occasion of
      each
      Borrowing shall be subject to the conditions precedent that the Effective Date
      shall have occurred and, on or prior to the date of such Borrowing, the Borrower
      shall have delivered a Notice of Borrowing which conforms to the terms and
      conditions of this Agreement and has been completed as may be required by the
      relevant form of the Notice of Borrowing for the type of Advance
      requested.

     

    ARTICLE
      V

     

    COVENANTS

     

    Section
      5.01.  Affirmative
      Covenants of the Borrower.
      So long
      as any Advance shall remain unpaid or the Liquidity Provider shall have any
      Maximum Commitment hereunder or the Borrower shall have any obligation to pay
      any amount to the Liquidity Provider hereunder, the Borrower will, unless the
      Liquidity Provider shall otherwise consent in writing:

     

    (a) 
      Performance
      of This and Other Agreements.
      Punctually pay or cause to be paid all amounts payable by it under this
      Agreement and the other Operative Agreements and observe and perform in all
      material respects the conditions, covenants and requirements applicable to
      it
      contained in this Agreement and the other Operative Agreements. 

     

    (b) 
      Reporting
      Requirements.
      Furnish
      to the Liquidity Provider with reasonable promptness, such other information
      and
      data with respect to the transactions 

    
      
        
          
          

        

        
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    contemplated
      by the Operative Agreements as from time to time may be reasonably requested
      by
      the Liquidity Provider; and permit the Liquidity Provider, upon reasonable
      notice, to inspect the Borrower's books and records with respect to such
      transactions and to meet with officers and employees of the Borrower to discuss
      such transactions.

     

    (c) 
      Certain
      Operative Agreements.
      Furnish
      to the Liquidity Provider with reasonable promptness, such Operative Agreements
      entered into after the date hereof as from time to time may be reasonably
      requested by the Liquidity Provider.

     

    Section
      5.02.  Negative
      Covenants of the Borrower.
      So long
      as any Advance shall remain unpaid or the Liquidity Provider shall have any
      Maximum Commitment hereunder or the Borrower shall have any obligation to pay
      any amount to the Liquidity Provider hereunder, the Borrower will not appoint
      or
      permit or suffer to be appointed any successor Borrower without the prior
      written consent of the Liquidity Provider, which consent shall not be
      unreasonably withheld or delayed.

     

     

    ARTICLE
      VI

     

    LIQUIDITY
      EVENTS OF DEFAULT
      AND
      SPECIAL TERMINATION

     

    Section
      6.01.  Liquidity
      Events of Default.
      If (a)
      any Liquidity Event of Default has occurred and is continuing and (b) there
      is a Performing Note Deficiency, the Liquidity Provider may, in its discretion,
      deliver to the Borrower a Termination Notice, the effect of which shall be
      to
      cause (i) the obligation of the Liquidity Provider to make Advances hereunder
      to
      expire on the fifth Business Day after the date on which such Termination Notice
      is received by the Borrower, (ii) the Borrower to promptly request, and the
      Liquidity Provider to promptly make, a Final Advance in accordance with Section
      2.02(e) hereof and Section 3.6(i) of the Intercreditor Agreement, (iii) all
      other outstanding Advances to be automatically converted into Final Advances
      for
      purposes of determining the Applicable Liquidity Rate for interest payable
      thereon, and (iv) subject to Sections 2.07 and 2.09 hereof, all Advances
      (including, without limitation, any Provider Advance and Applied Provider
      Advance), any accrued interest thereon and any other amounts outstanding
      hereunder to become immediately due and payable to the Liquidity
      Provider.

     

    Section
      6.02. Special
      Termination.
      If the
      aggregate Pool Balance of the Certificates is greater than the aggregate
      outstanding principal amount of the Equipment Notes (other than any Equipment
      Notes previously sold or with respect to which the collateral securing such
      Equipment Notes has been disposed of) at any time during the 18-month period
      prior to April 1, 2021, the Liquidity Provider may, in its discretion, deliver
      to the Borrower a Special Termination Notice, the effect of which shall be
      to
      cause (a) the obligation of the Liquidity Provider to make Advances hereunder
      to
      expire on the fifth Business Day after the date on which such Special
      Termination Notice is received by the Borrower, (b) the Borrower to
      promptly request, and the Liquidity Provider to promptly make, a Special
      Termination Advance in accordance with Section 2.02(f) hereof and
      Section 3.6(k) of the Intercreditor Agreement and (c) subject to
      Sections 2.07 and 2.09 hereof, all Advances (including, without limitation,
      any Provider Advance and Applied Provider Advance), any accrued interest thereon
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    amounts
      outstanding hereunder to become immediately due and payable to the Liquidity
      Provider.

     

    ARTICLE
      VII

     

    MISCELLANEOUS

     

    Section
      7.01. Amendments,
      Etc. 
      No
      amendment or waiver of any provision of this Agreement, nor consent to any
      departure by the Borrower therefrom, shall in any event be effective unless
      the
      same shall be in writing and signed by the Liquidity Provider and, in the case
      of an amendment or of a waiver by the Borrower, the Borrower, and then such
      waiver or consent shall be effective only in the specific instance and for
      the
      specific purpose for which given.

     

    Section
      7.02. Notices,
      Etc. 
      Except
      as
      otherwise expressly provided herein, all notices and other communications
      provided for hereunder shall be in writing (including mailed or delivered or
      sent by telecopier):

     

    
      	 	
              If
                to the Borrower, to:

            	
              
                Wilmington
                  Trust Company
Rodney
                  Square North
1100
                  North Market Street
Wilmington,
                  DE 19890-0001
Attention:
                  Corporate Trust Administration
Telephone:
                  (800) 733-8485
Telecopy:
                  (302) 651-8882

                 

              

            

    

    
      	
               

               

            	
              If
                to the Liquidity Provider, to:

            	
              
                Landesbank
                  Baden-Württemberg
Am
                  Hauptbahnhof 2
D-70173
                  Stuttgart
Germany
Attention:
                  Structured Finance
Telephone:
                  +49 711 1244 9757
Telecopy:
                  +49 711 1244 9747

              

            

    

     

    
      	 	
              with
                a copy of any Notice of Borrowing to:

            	
              Landesbank
                Baden-Württemberg
280
                Park Avenue, West Building, 31st Floor
New
                York, New York 10017
Attention:
                Claudia Rothe/Bette Smolen
Telephone:
                (212) 584-1700
Telecopy:
                (212) 584-1729

            

    

    

    or,
      as to
      each of the foregoing, at such other address as shall be designated by such
      Person in a written notice to the others. All such notices and communications
      shall be effective (i) if given by telecopier, when transmitted to the
      telecopier number specified above with receipt confirmed, (ii) if given by
      mail,
      five Business Days after being deposited in the mails addressed as specified
      above (for purposes of notices and communications other than Notices of
      Borrowing, the term "Business Day" shall, for purposes of this
      Section 7.02, be deemed to exclude any day in which 

    

    
      
        
          
          

        

        
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    commercial
      banks are required or authorized to close in Stuttgart, Germany), and (iii)
      if
      given by other means, when delivered at the address specified above, except
      that
      notices to the Liquidity Provider pursuant to the provisions of Article II
      and
      Article III hereof shall not be effective until received by the Liquidity
      Provider, subject to the provisions of the second sentence of Section 2.02(g).
      A
      copy of all notices delivered hereunder to either party shall in addition be
      delivered to each of the parties to the Participation Agreements at their
      respective addresses set forth therein.

    

    Section
      7.03. No
      Waiver; Remedies.
      No
      failure on the part of the Liquidity Provider to exercise, and no delay in
      exercising, any right under this Agreement shall operate as a waiver thereof;
      nor shall any single or partial exercise of any right under this Agreement
      preclude any other or further exercise thereof or the exercise of any other
      right. The remedies herein provided are cumulative and not exclusive of any
      remedies provided by law.

     

    Section
      7.04. Further
      Assurances.
      The
      Borrower agrees to do such further acts and things and to execute and deliver
      to
      the Liquidity Provider such additional assignments, agreements, powers and
      instruments as the Liquidity Provider may reasonably require or deem advisable
      to carry into effect the purposes of this Agreement and the other Operative
      Agreements or to better assure and confirm unto the Liquidity Provider its
      rights, powers and remedies hereunder and under the other Operative
      Agreements.

     

    Section
      7.05. Indemnification;
      Survival of Certain Provisions.
      The
      Liquidity Provider shall be indemnified hereunder to the extent and in the
      manner described in Section 9.1 of the Participation Agreements. In addition,
      the Borrower agrees to indemnify, protect, defend and hold harmless the
      Liquidity Provider from, against and in respect of, and shall pay on demand,
      all
      Expenses of any kind or nature whatsoever (other than any Expenses of the nature
      described in Section 3.01, 3.02 or 7.07 hereof or in the Fee Letter applicable
      to this Agreement (regardless of whether indemnified against pursuant to said
      Sections or in such Fee Letter)), that may be imposed on, incurred by or
      asserted against any Liquidity Indemnitee, in any way relating to, resulting
      from, or arising out of or in connection with any action, suit or proceeding
      by
      any third party against such Liquidity Indemnitee and relating to this
      Agreement, the Fee Letter applicable to this Agreement, the Intercreditor
      Agreement or any Financing Agreement; provided,
      however,
      that
      the Borrower shall not be required to indemnify, protect, defend and hold
      harmless any Liquidity Indemnitee in respect of any Expense of such Liquidity
      Indemnitee to the extent such Expense is (i) attributable to the gross
      negligence or willful misconduct of such Liquidity Indemnitee or any other
      Liquidity Indemnitee; (ii) ordinary and usual operating overhead expense;
      (iii) attributable to the failure by the Liquidity Provider to perform or
      observe any agreement, covenant or condition on its part to be performed or
      observed in this Agreement or the Intercreditor Agreement, or (iv) a Tax. The
      indemnities contained in Section 9.1 of the Participation Agreements, and the
      provisions of Sections 3.01, 3.02, 3.03, 3.09, 7.05 and 7.07 hereof, shall
      survive the termination of this Agreement.

     

    Section
      7.06. Liability
      of the Liquidity Provider.
      

     

    (a) 
      Neither
      the Liquidity Provider nor any of its officers, employees, directors or
      Affiliates shall be liable or responsible for: (i) the use which may be made
      of
      the Advances or any acts or omissions of the Borrower or any beneficiary or
      transferee in connection therewith; (ii) the validity, sufficiency or
      genuineness of documents, or of any endorsement thereon, even if 

     

    

    
      
        
          
          

        

        
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    such
      documents should prove to be in any or all respects invalid, insufficient,
      fraudulent or forged; or (iii) the making of Advances by the Liquidity Provider
      against delivery of a Notice of Borrowing and other documents which do not
      comply with the terms hereof; provided,
      however,
      that
      the Borrower shall have a claim against the Liquidity Provider, and the
      Liquidity Provider shall be liable to the Borrower, to the extent of any damages
      suffered by the Borrower which were the result of (A) the Liquidity Provider's
      willful misconduct or gross negligence in determining whether documents
      presented hereunder comply with the terms hereof, or (B) any breach by the
      Liquidity Provider of any of the terms of this Agreement, including, but not
      limited to, the Liquidity Provider's failure to make lawful payment hereunder
      after the delivery to it by the Borrower of a Notice of Borrowing strictly
      complying with the terms and conditions hereof. In no event, however, shall
      the
      Liquidity Provider be liable on any theory of liability for any special,
      indirect, consequential or punitive damages (including, without limitation,
      any
      loss of profits, business or anticipated savings).

     

    (b) 
      Neither
      the Liquidity Provider nor any of its officers, employees, directors or
      Affiliates shall be liable or responsible in any respect for (i) any error,
      omission, interruption or delay in transmission, dispatch or delivery of any
      message or advice, however transmitted, in connection with this Agreement or
      any
      Notice of Borrowing delivered hereunder, or (ii) any action, inaction or
      omission which may be taken by it in good faith, absent willful misconduct
      or
      gross negligence (in which event the extent of the Liquidity Provider's
      potential liability to the Borrower shall be limited as set forth in the
      immediately preceding paragraph), in connection with this Agreement or any
      Notice of Borrowing.

     

    Section
      7.07. Costs,
      Expenses and Taxes.
      The
      Borrower agrees to pay, or cause to be paid (a) on the Effective Date and on
      such later date or dates on which the Liquidity Provider shall make demand,
      all
      reasonable out-of-pocket costs and expenses (including, without limitation,
      the
      reasonable fees and expenses of outside counsel for the Liquidity Provider)
      of
      the Liquidity Provider in connection with the preparation, negotiation,
      execution, delivery, filing and recording of this Agreement, any other Operative
      Agreement and any other documents which may be delivered in connection with
      this
      Agreement and (b) on demand, all reasonable costs and expenses (including
      reasonable counsel fees and expenses) of the Liquidity Provider in connection
      with (i) the enforcement of this Agreement or any other Operative Agreement,
      (ii) the modification or amendment of, or supplement to, this Agreement or
      any
      other Operative Agreement or such other documents which may be delivered in
      connection herewith or therewith (whether or not the same shall become
      effective) or any waiver or consent thereunder (whether or not the same shall
      become effective) or (iii) any action or proceeding relating to any order,
      injunction, or other process or decree restraining or seeking to restrain the
      Liquidity Provider from paying any amount under this Agreement, the
      Intercreditor Agreement or any other Operative Agreement or otherwise affecting
      the application of funds in the Cash Collateral Account. In addition, the
      Borrower shall pay any and all recording, stamp and other similar taxes and
      fees
      payable or determined to be payable in connection with the execution, delivery,
      filing and recording of this Agreement, any other Operative Agreement and such
      other documents, and agrees to hold the Liquidity Provider harmless from and
      against any and all liabilities with respect to or resulting from any delay
      in
      paying or omission to pay such taxes or fees.

     

    
      Section
        7.08. Binding
        Effect; Participations.
        

       

    

    
      
        
          
          

        

        
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    (a) 
      This Agreement shall be binding upon and inure to the benefit of the Borrower
      and the Liquidity Provider and their respective successors and assigns, except
      that neither the Liquidity Provider (except as otherwise provided in this
      Section 7.08) nor (except as contemplated by Section 3.08) the Borrower shall
      have the right to assign its rights or obligations hereunder or any interest
      herein without the prior written consent of the other party, subject to the
      requirements of Section 7.08(b) and any assignment in violation thereof shall
      be
      void ab initio. The Liquidity Provider may grant
      participations herein or in any of its rights hereunder (including, without
      limitation, funded participations and participations in rights to receive
      interest payments hereunder) and under the other Operative Agreements to such
      Persons (other than Continental and its Affiliates) as the Liquidity Provider
      may in its sole discretion select, subject to the requirements of Section
      7.08(b). No such granting of participations by the Liquidity Provider, however,
      will relieve the Liquidity Provider of its obligations hereunder. In connection
      with any participation or any proposed participation, the Liquidity Provider
      may
      disclose to the participant or the proposed participant any information that
      the
      Borrower is required to deliver or to disclose to the Liquidity Provider
      pursuant to this Agreement. The Borrower acknowledges and agrees that the
      Liquidity Provider's source of funds may derive in part from its participants.
      Accordingly, references in this Agreement and the other Operative Agreements
      to
      determinations, reserve and capital adequacy requirements, increased costs,
      reduced receipts, additional amounts due pursuant to Section 3.03 and the like
      as they pertain to the Liquidity Provider shall be deemed also to include those
      of each of its participants that are banks (subject, in each case, to the
      maximum amount that would have been incurred by or attributable to the Liquidity
      Provider directly if the Liquidity Provider, rather than the participant, had
      held the interest participated).

     

    (b) 
      If,
      pursuant to subsection (a) above, the Liquidity Provider sells any participation
      in this Agreement to any bank or other entity (each, a "Transferee"),
      then,
      concurrently with the effectiveness of such participation, the Transferee shall
      (i) represent to the Liquidity Provider (for the benefit of the Liquidity
      Provider and the Borrower) either (A) that it is incorporated under the laws
      of
      the United States or a state thereof or (B) that under applicable law and
      treaties, no taxes will be required to be withheld with respect to any payments
      to be made to such Transferee in respect of this Agreement, (ii) furnish to
      the
      Liquidity Provider and the Borrower either (x) a statement that it is
      incorporated under the laws of the United States or a state thereof or (y)
      if it
      is not so incorporated, two copies of a properly completed United States
      Internal Revenue Service Form W-8ECI or Form W-8BEN, as appropriate, or other
      applicable form, certificate or document prescribed by the Internal Revenue
      Service certifying, in each case, such Transferee's entitlement to a complete
      exemption from United States federal withholding tax in respect to any and
      all
      payments to be made hereunder, and (iii) agree (for the benefit of the Liquidity
      Provider and the Borrower) to provide the Liquidity Provider and the Borrower
      a
      new Form W-8ECI or Form W-8BEN, as appropriate, or other applicable form, (A)
      on
      or before the date that any such form expires or becomes obsolete or (B) after
      the occurrence of any event requiring a change in the most recent form
      previously delivered by it and prior to the immediately following due date
      of
      any payment by the Borrower hereunder, certifying in the case of a Form W-8BEN
      or Form W-8ECI that such Transferee is entitled to a complete exemption from
      United States federal withholding tax on payments under this Agreement. Unless
      the Borrower has received forms or other documents reasonably satisfactory
      to it
      (and required by applicable law) indicating that payments hereunder are not
      subject to United States 

     

    

    
      
        
          
          

        

        
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    federal
      withholding tax, the Borrower will withhold taxes as required by law from such
      payments at the applicable statutory rate.

     

    (c) 
      Notwithstanding
      the other provisions of this Section 7.08, the Liquidity Provider may assign
      and
      pledge all or any portion of the Advances owing to it to any Federal Reserve
      Bank or the United States Treasury as collateral security pursuant to Regulation
      A of the Board of Governors of the Federal Reserve System and any Operating
      Circular issued by such Federal Reserve Bank, provided that any payment in
      respect of such assigned Advances made by the Borrower to the Liquidity Provider
      in accordance with the terms of this Agreement shall satisfy the Borrower's
      obligations hereunder in respect of such assigned Advance to the extent of
      such
      payment. No such assignment shall release the Liquidity Provider from its
      obligations hereunder.

     

    Section
      7.09. Severability.
      Any
      provision of this Agreement which is or becomes invalid, prohibited,
      unenforceable or not authorized in any jurisdiction shall, as to such
      jurisdiction, be ineffective to the extent of such invalidity, prohibition,
      unenforceability or non-authorization without affecting or invalidating the
      remaining provisions hereof as to such jurisdiction or affecting the validity,
      enforceability or legality of such provision in any other
      jurisdiction.

     

    Section
      7.10. GOVERNING
      LAW.
      THIS
      AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF
      THE
      STATE OF NEW YORK.

     

    Section
      7.11. Submission
      to Jurisdiction; Waiver of Jury Trial.
      

     

    (a) 
      Each
      of
      the parties hereto hereby irrevocably and unconditionally:

     

    (i) 
      submits
      for itself and its property in any legal action or proceeding relating to this
      Agreement or any other Operative Agreement, or for recognition and enforcement
      of any judgment in respect hereof or thereof, to the nonexclusive general
      jurisdiction of the courts of the State of New York (sitting in the City of
      New
      York), the courts of the United States of America for the Southern District
      of
      New York, and the appellate courts from any thereof;

     

    (ii) 
      consents
      that any such action or proceeding may be brought in such courts, and waives
      any
      objection that it may now or hereafter have to the venue of any such action
      or
      proceeding in any such court or that such action or proceeding was brought
      in an
      inconvenient court and agrees not to plead or claim the same;

     

    (iii) 
      agrees
      that service of process in any such action or proceeding may be effected by
      mailing a copy thereof by registered or certified mail (or any substantially
      similar form of mail), postage prepaid, to each party hereto at its address
      set
      forth in Section 7.02 hereof, or at such other address of which the Liquidity
      Provider shall have been notified pursuant thereto; and

     

    

    
      
        
          
          

        

        
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    (iv) 
      agrees
      that nothing herein shall affect the right to effect service of process in
      any
      other manner permitted by law or shall limit the right to sue in any other
      jurisdiction.

     

    (b) 
      THE
      BORROWER AND THE LIQUIDITY PROVIDER EACH HEREBY AGREE TO WAIVE THEIR RESPECTIVE
      RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING
      OUT
      OF THIS AGREEMENT OR ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER
      OF
      THIS AGREEMENT AND THE RELATIONSHIP THAT IS BEING ESTABLISHED, including,
      without limitation, contract claims, tort claims, breach of duty claims and
      all
      other common law and statutory claims. The Borrower and the Liquidity Provider
      each warrant and represent that it has reviewed this waiver with its legal
      counsel, and that it knowingly and voluntarily waives its jury trial rights
      following consultation with such legal counsel. THIS WAIVER IS IRREVOCABLE,
      AND
      CANNOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THIS WAIVER SHALL APPLY
      TO
      ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS
      AGREEMENT.

     

    (c) 
      The
      Liquidity Provider hereby waives any immunity it may have from the jurisdiction
      of the courts of the United States or of any state thereof and waives any
      immunity any of its properties located in the United States may have from
      attachment or execution upon a judgment entered by any such court under the
      United States Foreign Sovereign Immunities Act of 1976 or any similar successor
      legislation. 

     

    Section
      7.12. Execution
      in Counterparts. This
      Agreement may be executed in any number of counterparts and by different parties
      hereto on separate counterparts, each of which counterparts, when so executed
      and delivered, shall be deemed to be an original and all of which counterparts,
      taken together, shall constitute but one and the same Agreement.

     

    Section
      7.13. Entirety.
      This
      Agreement, the Intercreditor Agreement and the other Operative Agreements to
      which the Liquidity Provider is a party constitute the entire agreement of
      the
      parties hereto with respect to the subject matter hereof and supersedes all
      prior understandings and agreements of such parties.

     

    Section
      7.14. Headings.
      Section
      headings in this Agreement are included herein for convenience of reference
      only
      and shall not constitute a part of this Agreement for any other
      purpose.

     

    Section
      7.15. LIQUIDITY
      PROVIDER'S OBLIGATION TO MAKE ADVANCES.
      EXCEPT
      AS EXPRESSLY SET FORTH IN THIS AGREEMENT, THE OBLIGATIONS OF THE LIQUIDITY
      PROVIDER TO MAKE ADVANCES HEREUNDER, AND THE BORROWER'S RIGHTS TO DELIVER
      NOTICES OF BORROWING REQUESTING THE MAKING OF ADVANCES HEREUNDER, SHALL BE
      UNCONDITIONAL AND IRREVOCABLE, AND SHALL BE PAID OR PERFORMED, IN EACH CASE
      STRICTLY IN ACCORDANCE WITH THE TERMS OF THIS AGREEMENT. 

     

    
 

    
      
        
          
          

        

        
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    IN
      WITNESS WHEREOF, the parties have caused this Agreement to be duly executed
      and
      delivered by their respective officers or representatives thereunto duly
      authorized as of the date first set forth above.

     

    WILMINGTON
      TRUST COMPANY,

    not
      in
      its individual capacity but solely as

    Subordination
      Agent, as agent and trustee 

    for
      the
      Trust, as Borrower

    

    

    By___________________________________

    Name:

    Title:

    

    

    LANDESBANK
      BADEN-WÜRTTEMBERG,

    as
      Liquidity Provider

    

    

    By___________________________________

    Name:

    Title:

    

    

    

    By___________________________________

    Name:

    Title:

    

    

    

    

    
      
        
          
            

             

          

          
          

        

        
          
          

          
            

          

        

        
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    Annex
      I to 

    Revolving
      Credit Agreement

    

    INTEREST
      ADVANCE NOTICE OF BORROWING

     

    The
      undersigned, a duly authorized signatory of the undersigned borrower (the
      "Borrower"),
      hereby certifies to Landesbank Baden-Württemberg (the "Liquidity
      Provider"),
      with
      reference to the Revolving Credit Agreement (2005-ERJ1) dated as of
      September 22, 2005, between the Borrower and the Liquidity Provider (the
      "Liquidity
      Agreement";
      the
      terms defined therein and not otherwise defined herein being used herein as
      therein defined or referenced), that:

     

    (1) The
      Borrower is the Subordination Agent under the Intercreditor
      Agreement.

     

    (2) The
      Borrower is delivering this Notice of Borrowing for the making of an Interest
      Advance by the Liquidity Provider to be used, subject to clause (3)(v) below,
      for the payment of interest on the Certificates which was payable on
      ____________, ____ (the "Distribution
      Date")
      in
      accordance with the terms and provisions of the Trust Agreement and the
      Certificates, which Advance is requested to be made on ____________, ____.
      The
      Interest Advance should be transferred to [name of bank/wire instructions/ABA
      number] in favor of account number [ __ ], reference [ __ ].

     

    (3) The
      amount of the Interest Advance requested hereby (i) is $_______________.__,
      to
      be applied in accordance with Sections 3.6(a) and 3.6(b) of the Intercreditor
      Agreement in respect of the payment of the interest which was due and payable
      on
      the Certificates on the Distribution Date, (ii) does not include any amount
      with
      respect to the payment of principal of, or premium on, the Certificates, (iii)
      was computed in accordance with the provisions of the Certificates, the Trust
      Agreement and the Intercreditor Agreement (a copy of which computation is
      attached hereto as Schedule I), (iv) does not exceed the Maximum Available
      Commitment on the date hereof, (v) does not include any amount of interest
      which
      was due and payable on the Certificates on such Distribution Date but which
      remains unpaid due to the failure of the Depositary to pay any amount of accrued
      interest on the Deposits on such Distribution Date and (vi) has not been and
      is
      not the subject of a prior or contemporaneous Notice of Borrowing.

     

    (4) Upon
      receipt by or on behalf of the Borrower of the amount requested hereby, (a)
      the
      Borrower will apply the same in accordance with the terms of Section 3.6(b)
      of the Intercreditor Agreement, (b) no portion of such amount shall be applied
      by the Borrower for any other purpose and (c) no portion of such amount until
      so
      applied shall be commingled with other funds held by the Borrower.

     

    The
      Borrower hereby acknowledges that, pursuant to the Liquidity Agreement, the
      making of the Interest Advance as requested by this Notice of Borrowing shall
      automatically reduce, subject to reinstatement in accordance with the terms
      of
      the Liquidity Agreement, the Maximum Available Commitment by an amount equal
      to
      the amount of the Interest Advance requested to be made hereby as set forth
      in
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    Borrowing
      and such reduction shall automatically result in corresponding reductions in
      the
      amounts available to be borrowed pursuant to a subsequent Advance.

     

    IN
      WITNESS WHEREOF, the Borrower has executed and delivered this Notice of
      Borrowing as of the ____ day of _________, ____.

     

    

    WILMINGTON
      TRUST COMPANY, 

    not
      in
      its individual capacity but solely as

    Subordination
      Agent, as Borrower

    

    By:___________________________________

    Name:

    Title:

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
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    SCHEDULE
      I TO INTEREST ADVANCE NOTICE OF BORROWING

     

    [Insert
      copy of computations in accordance with Interest Advance Notice of
      Borrowing]

     

    

    

    
      
        
          
            

             

          

          
          

        

        
          
          

          
            

          

        

        
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    Annex
      II to

    Revolving
      Credit Agreement

     

    EARLY
      TERMINATION ADVANCE NOTICE OF BORROWING

     

    The
      undersigned, a duly authorized signatory of the undersigned borrower (the
      "Borrower"),
      hereby certifies to Landesbank Baden-Württemberg (the "Liquidity
      Provider"),
      with
      reference to the Revolving Credit Agreement (2005-ERJ1) dated as of
      September 22, 2005, between the Borrower and the Liquidity Provider (the
      "Liquidity Agreement";
      the
      terms defined therein and not otherwise defined herein being used herein as
      therein defined or referenced), that:

     

    (1) The
      Borrower is the Subordination Agent under the Intercreditor
      Agreement.

     

    (2) The
      Borrower is delivering this Notice of Borrowing for the making of the Early
      Termination Advance by the Liquidity Provider to be used for the funding of
      the
      Cash Collateral Account in accordance with Section 3.6(d) of the Intercreditor
      Agreement, which Advance is requested to be made on __________, ____. The Early
      Termination Advance should be transferred to [name of bank/wire instructions/ABA
      number] in favor of account number [ __ ], reference [ __ ].

     

    (3) The
      amount of the Early Termination Advance requested hereby (i) is
      $_______________.__, which equals the Maximum Available Commitment on the date
      hereof and is to be applied in respect of the funding of the Cash Collateral
      Account in accordance with Sections 3.6(d) and 3.6(f) of the Intercreditor
      Agreement, (ii) does not include any amount with respect to the payment of
      the
      principal of, or premium on, the Certificates, (iii) was computed in accordance
      with the provisions of the Certificates, the Trust Agreement and the
      Intercreditor Agreement (a copy of which computation is attached hereto as
      Schedule I), and (iv) has not been and is not the subject of a prior or
      contemporaneous Notice of Borrowing under the Liquidity Agreement.

     

    (4) Upon
      receipt by or on behalf of the Borrower of the amount requested hereby, (a)
      the
      Borrower will deposit such amount in the Cash Collateral Account and apply
      the
      same in accordance with the terms of Sections 3.6(d) and 3.6(f) of the
      Intercreditor Agreement, (b) no portion of such amount shall be applied by
      the
      Borrower for any other purpose and (c) no portion of such amount until so
      applied shall be commingled with other funds held by the Borrower.

     

    The
      Borrower hereby acknowledges that, pursuant to the Liquidity Agreement, (A)
      the
      making of the Early Termination Advance as requested by this Notice of Borrowing
      shall automatically and irrevocably terminate the obligation of the Liquidity
      Provider to make further Advances under the Liquidity Agreement; and (B)
      following the making by the Liquidity Provider of the Early Termination Advance
      requested by this Notice of Borrowing, the Borrower shall not be entitled to
      request any further Advances under the Liquidity Agreement.

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
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    IN
      WITNESS WHEREOF, the Borrower has executed and delivered this Notice of
      Borrowing as of the ____ day of _________, ____.

     

    

    WILMINGTON
      TRUST COMPANY,

    not
      in
      its individual capacity but solely as

    Subordination
      Agent, as Borrower

     

    By:___________________________________

    Name:

    Title:

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
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    SCHEDULE
      I TO EARLY TERMINATION ADVANCE NOTICE OF BORROWING

     

    [Insert
      copy of computations in accordance with Early Termination Advance Notice of
      Borrowing]

     

    

    

    
      
        
          
            

             

          

          
          

        

        
          
          

          
            

          

        

        
          Table
            of Contents

          
          

        

      

    

    

    Annex
      III to

    Revolving
      Credit Agreement

    

    [RESERVED]

     

    

     

    

    

    
      
        
          
            

             

          

          
          

        

        
          III-1

          
            

          

        

        
          Table
            of Contents

          
          

        

      

    

    

    Annex
      IV to

    Revolving
      Credit Agreement

     

    DOWNGRADE
      ADVANCE NOTICE OF BORROWING

     

    The
      undersigned, a duly authorized signatory of the undersigned borrower (the
      "Borrower"),
      hereby certifies to Landesbank Baden-Württemberg (the "Liquidity
      Provider"),
      with
      reference to the Revolving Credit Agreement (2005-ERJ1) dated as of
      September 22, 2005, between the Borrower and the Liquidity Provider (the
      "Liquidity
      Agreement";
      the
      terms defined therein and not otherwise defined herein being used herein as
      therein defined or referenced), that:

     

    (1) The
      Borrower is the Subordination Agent under the Intercreditor
      Agreement.

     

    (2) The
      Borrower is delivering this Notice of Borrowing for the making of the Downgrade
      Advance by the Liquidity Provider to be used for the funding of the Cash
      Collateral Account in accordance with Section 3.6(c) of the Intercreditor
      Agreement by reason of the occurrence of a Downgrade Event, which Advance is
      requested to be made on __________, ____. The Downgrade Advance should be
      transferred to [name of bank/wire instructions/ABA number] in favor of account
      number [ __ ], reference [ __ ].

     

    (3) The
      amount of the Downgrade Advance requested hereby (i) is $_______________.__,
      which equals the Maximum Available Commitment on the date hereof and is to
      be
      applied in respect of the funding of the Cash Collateral Account in accordance
      with Sections 3.6(c) and 3.6(f) of the Intercreditor Agreement, (ii) does not
      include any amount with respect to the payment of the principal of, or premium
      on, the Certificates, (iii) was computed in accordance with the provisions
      of
      the Certificates, the Trust Agreement and the Intercreditor Agreement (a copy
      of
      which computation is attached hereto as Schedule I), and (iv) has not been
      and
      is not the subject of a prior or contemporaneous Notice of Borrowing under
      the
      Liquidity Agreement.

     

    (4) Upon
      receipt by or on behalf of the Borrower of the amount requested hereby, (a)
      the
      Borrower will deposit such amount in the Cash Collateral Account and apply
      the
      same in accordance with the terms of Sections 3.6(c) and 3.6(f) of the
      Intercreditor Agreement, (b) no portion of such amount shall be applied by
      the
      Borrower for any other purpose and (c) no portion of such amount until so
      applied shall be commingled with other funds held by the Borrower.

     

    The
      Borrower hereby acknowledges that, pursuant to the Liquidity Agreement, (A)
      the
      making of the Downgrade Advance as requested by this Notice of Borrowing shall
      automatically and irrevocably terminate the obligation of the Liquidity Provider
      to make further Advances under the Liquidity Agreement; and (B) following the
      making by the Liquidity Provider of the Downgrade Advance requested by this
      Notice of Borrowing, the Borrower shall not be entitled to request any further
      Advances under the Liquidity Agreement.

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          Table
            of Contents

        

      

    

    

    IN
      WITNESS WHEREOF, the Borrower has executed and delivered this Notice of
      Borrowing as of the ____ day of _________, ____.

     

    WILMINGTON
      TRUST COMPANY,

    not
      in
      its individual capacity but solely as

    Subordination
      Agent, as Borrower

     

    By:___________________________________

    Name:

    Title:

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          Table
            of Contents

        

      

    

    

    SCHEDULE
      I TO DOWNGRADE ADVANCE NOTICE OF BORROWING

     

    [Insert
      copy of computations in accordance with Downgrade Advance Notice of
      Borrowing]

     

    

     

    

    

    
      
        
          
            

             

          

          
          

        

        
          
          

          
            

          

        

        
          Table
            of Contents

          
          

        

      

    

    

    Annex
      V to

    Revolving
      Credit Agreement

    

    FINAL
      ADVANCE NOTICE OF BORROWING

     

    The
      undersigned, a duly authorized signatory of the undersigned borrower (the
      "Borrower"),
      hereby certifies to Landesbank Baden-Württemberg (the "Liquidity
      Provider"),
      with
      reference to the Revolving Credit Agreement (2005-ERJ1) dated as of
      September 22, 2005, between the Borrower and the Liquidity Provider (the
      "Liquidity
      Agreement";
      the
      terms defined therein and not otherwise defined herein being used herein as
      therein defined or referenced), that:

     

    (1) The
      Borrower is the Subordination Agent under the Intercreditor
      Agreement.

     

    (2) The
      Borrower is delivering this Notice of Borrowing for the making of the Final
      Advance by the Liquidity Provider to be used for the funding of the Cash
      Collateral Account in accordance with Section 3.6(i) of the Intercreditor
      Agreement by reason of the receipt by the Borrower of a Termination Notice
      from
      the Liquidity Provider with respect to the Liquidity Agreement, which Advance
      is
      requested to be made on ____________, ____. The Final Advance should be
      transferred to [name of bank/wire instructions/ABA number] in favor of account
      number [ __ ], reference [ __ ].

     

    (3) The
      amount of the Final Advance requested hereby (i) is $_________________.__,
      which
      equals the Maximum Available Commitment on the date hereof and is to be applied
      in respect of the funding of the Cash Collateral Account in accordance with
      Sections 3.6(f) and 3.6(i) of the Intercreditor Agreement, (ii) does not include
      any amount with respect to the payment of principal of, or premium on, the
      Certificates, (iii) was computed in accordance with the provisions of the
      Certificates, the Trust Agreement and the Intercreditor Agreement (a copy of
      which computation is attached hereto as Schedule I), and (iv) has not been
      and
      is not the subject of a prior or contemporaneous Notice of
      Borrowing.

     

    (4) Upon
      receipt by or on behalf of the Borrower of the amount requested hereby, (a)
      the
      Borrower will deposit such amount in the Cash Collateral Account and apply
      the
      same in accordance with the terms of Sections 3.6(f) and 3.6(i) of the
      Intercreditor Agreement, (b) no portion of such amount shall be applied by
      the
      Borrower for any other purpose and (c) no portion of such amount until so
      applied shall be commingled with other funds held by the Borrower.

     

    (5)
      The
      Borrower hereby requests that the Advance requested hereby be a Base Rate
      Advance [and that such Base Rate Advance be converted into a LIBOR Advance
      on
      the third London/Stuttgart Business Day following your receipt of this
      notice.]1 

     

    ___________________

     

    1
      Bracketed language may be included at Borrower's option.

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          Table
            of Contents

        

      

    

    

    The
      Borrower hereby acknowledges that, pursuant to the Liquidity Agreement, (A)
      the
      making of the Final Advance as requested by this Notice of Borrowing shall
      automatically and irrevocably terminate the obligation of the Liquidity Provider
      to make further Advances under the Liquidity Agreement; and (B) following the
      making by the Liquidity Provider of the Final Advance requested by this Notice
      of Borrowing, the Borrower shall not be entitled to request any further Advances
      under the Liquidity Agreement.

     

    IN
      WITNESS WHEREOF, the Borrower has executed and delivered this Notice of
      Borrowing as of the ____ day of _________, ____.

     

    

        WILMINGTON
      TRUST COMPANY,

        not
      in its
      individual capacity but solely as

        Subordination
      Agent, as Borrower

    

    

      
      By___________________________________ 

      
      Name:

      
      Title:

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          Table
            of Contents

        

      

    

    

    SCHEDULE
      I TO FINAL ADVANCE NOTICE OF BORROWING

     

    [Insert
      copy of computations in accordance with Final Advance Notice of
      Borrowing]

     

    

     

    

    
 

    
      
        
          
            

             

          

          
          

        

        
          
          

          
            

          

        

        
          Table
            of Contents

          
          

        

      

    

    
    

    Annex
      VI to

    Revolving
      Credit Agreement

    
    

    NOTICE
      OF
      TERMINATION

     

    [Date]

     

    Wilmington
      Trust Company,

    as
      Subordination Agent, as Borrower

    [Rodney
      Square North

    1100
      North Market Street

    Wilmington,
      DE 19890-0001

    

    Attention:
      Corporate Trust Administration]

    

    Revolving
      Credit Agreement dated as of September 22, 2005, between Wilmington Trust
      Company, as Subordination Agent, as agent and trustee for the Continental
      Airlines Pass Through Trust 2005-ERJ1, as Borrower, and Landesbank
      Baden-Württemberg (the "Liquidity
      Agreement")

     

    Ladies
      and Gentlemen:

     

    You
      are
      hereby notified that, pursuant to Section 6.01 of the Liquidity Agreement,
      by
      reason of the occurrence of a Liquidity Event of Default and the existence
      of a
      Performing Note Deficiency (each as defined therein), we are giving this notice
      to you in order to cause (i) our obligations to make Advances (as defined
      therein) under such Liquidity Agreement to terminate on the fifth Business
      Day
      after the date on which you receive this notice and (ii) you to request a Final
      Advance under the Liquidity Agreement pursuant to Section 3.6(i) of the
      Intercreditor Agreement (as defined in the Liquidity Agreement) as a consequence
      of your receipt of this notice.

    

    THIS
      NOTICE IS THE "NOTICE OF TERMINATION" PROVIDED FOR UNDER THE LIQUIDITY
      AGREEMENT. OUR OBLIGATIONS TO MAKE ADVANCES UNDER THE LIQUIDITY AGREEMENT WILL
      TERMINATE ON THE FIFTH BUSINESS DAY AFTER THE DATE ON WHICH YOU RECEIVE THIS
      NOTICE.

    

    Very
      truly yours,

    

    LANDESBANK
      BADEN-WÜRTTEMBERG,

    as
      Liquidity Provider

    

    By_________________________________

    Name:

    Title:

     

    cc:     
      Wilmington Trust Company,

    as
      Trustee

    
      
        
          
            
              
              

            

            
              
              

              
                

              

            

            
              Table
                of
                Contents

            

          

        

      

    

    Annex
      VII to

    Revolving
      Credit Agreement

    

    NOTICE
      OF
      REPLACEMENT SUBORDINATION AGENT

    

    [Date]

    Attention:

    

    Revolving
      Credit Agreement dated as of September 22, 2005, between Wilmington Trust
      Company, as Subordination Agent, as agent and trustee for the Continental
      Airlines Pass Through Trust, 2005-ERJ1, as Borrower, and Landesbank
      Baden-Württemberg (the "Liquidity
      Agreement")

     

    Ladies
      and Gentlemen:

     

    For
      value
      received, the undersigned beneficiary hereby irrevocably transfers
      to:

     

    ______________________________

    [Name
      of
      Transferee]

    

    ______________________________

     

    [Address
      of Transferee]

     

    all
      rights and obligations of the undersigned as Borrower under the Liquidity
      Agreement referred to above. The transferee has succeeded the undersigned as
      Subordination Agent under the Intercreditor Agreement referred to in the first
      paragraph of the Liquidity Agreement, pursuant to the terms of Section 8.1
      of
      the Intercreditor Agreement.

     

    By
      this
      transfer, all rights of the undersigned as Borrower under the Liquidity
      Agreement are transferred to the transferee and the transferee shall hereafter
      have the sole rights and obligations as Borrower thereunder. The undersigned
      shall pay any costs and expenses of such transfer, including, but not limited
      to, transfer taxes or governmental charges.

     

    

    
      
        
          
          

        

        
          VII-1

          
            

          

        

        
          Table
            of Contents

        

      

    

    

    

     

    We
      ask
      that this transfer be effective as of __________, ____.

     

    WILMINGTON
      TRUST COMPANY,

    not
      in
      its individual capacity but solely as

    Subordination
      Agent, as Borrower

    

    By___________________________________

    Name:

    Title:

    

    

    

    
      
        
          
            

             

          

          
          

        

        
          VII-2

          
            

          

        

        
          Table
            of Contents

          
          

        

      

    

    

    Annex
      VIII to

    Revolving
      Credit Agreement

    

    SPECIAL
      TERMINATION ADVANCE NOTICE OF BORROWING

     

    The
      undersigned, a duly authorized signatory of the undersigned borrower (the
      "Borrower"),
      hereby certifies to Landesbank Baden-Württemberg (the "Liquidity
      Provider"),
      with
      reference to the Revolving Credit Agreement (2005-ERJ1) dated as of
      September 22, 2005, between the Borrower and the Liquidity Provider (the
      "Liquidity
      Agreement";
      the
      terms defined therein and not otherwise defined herein being used herein as
      therein defined or referenced), that:

     

    (1) The
      Borrower is the Subordination Agent under the Intercreditor
      Agreement.

     

    (2) The
      Borrower is delivering this Notice of Borrowing for the making of the Special
      Termination Advance by the Liquidity Provider to be used for the funding of
      the
      Cash Collateral Account in accordance with Section 3.6(k) of the Intercreditor
      Agreement by reason of the receipt by the Borrower of a Special Termination
      Notice from the Liquidity Provider with respect to the Liquidity Agreement,
      which Advance is requested to be made on ____________, ____. The Special
      Termination Advance should be transferred to [name of bank/wire instructions/ABA
      number] in favor of account number [ __ ], reference [ __ ].

     

    (3) The
      amount of the Special Termination Advance requested hereby (i) is
      $_________________.__, which equals the Maximum Available Commitment on the
      date
      hereof and is to be applied in respect of the funding of the Cash Collateral
      Account in accordance with Sections 3.6(f) and 3.6(k) of the Intercreditor
      Agreement, (ii) does not include any amount with respect to the payment of
      principal of, or premium on, the Certificates, (iii) was computed in accordance
      with the provisions of the Certificates, the Trust Agreement and the
      Intercreditor Agreement (a copy of which computation is attached hereto as
      Schedule I), and (iv) has not been and is not the subject of a prior or
      contemporaneous Notice of Borrowing.

     

    (4) Upon
      receipt by or on behalf of the Borrower of the amount requested hereby, (a)
      the
      Borrower will deposit such amount in the Cash Collateral Account and apply
      the
      same in accordance with the terms of Sections 3.6(f) and 3.6(k) of the
      Intercreditor Agreement, (b) no portion of such amount shall be applied by
      the
      Borrower for any other purpose and (c) no portion of such amount until so
      applied shall be commingled with other funds held by the Borrower.

     

    The
      Borrower hereby acknowledges that, pursuant to the Liquidity Agreement, (A)
      the
      making of the Special Termination Advance as requested by this Notice of
      Borrowing shall automatically and irrevocably terminate the obligation of the
      Liquidity Provider to make further Advances under the Liquidity Agreement;
      and
      (B) following the making by the Liquidity Provider of the Special Termination
      Advance requested by this Notice of Borrowing, the Borrower shall not be
      entitled to request any further Advances under the Liquidity
      Agreement.

     

    

    
      
        
          
          

        

        
          VIII-1

          
            

          

        

        
          Table
            of Contents

        

      

    

    

    IN
      WITNESS WHEREOF, the Borrower has executed and delivered this Notice of
      Borrowing as of the ____ day of _________, ____.

     

    

    WILMINGTON
      TRUST COMPANY,

    not
      in
      its individual capacity but solely as

    Subordination
      Agent, as Borrower

    

    

    By___________________________________

    Name:

    Title:

    

    
      
        
          
          

        

        
          VIII-2

          
            

          

        

        
          Table
            of Contents

        

      

    

    

    SCHEDULE
      I TO SPECIAL TERMINATION ADVANCE NOTICE OF BORROWING

     

    [Insert
      copy of computations in accordance with Special Termination Advance Notice
      of
      Borrowing]

    

    

    

    
      
        
          
            

             

          

          
          

        

        
          VIII-3

          
            

          

        

        
          Table
            of Contents

          
          

        

      

    

    

    Annex
      IX to

    Revolving
      Credit Agreement

    

    NOTICE
      OF
      SPECIAL TERMINATION

     

    [Date]

     

    Wilmington
      Trust Company,

    as
      Subordination Agent, as Borrower

    [Rodney
      Square North

    1100
      North Market Street

    Wilmington,
      DE 19890-0001

    

    Attention:
      Corporate Trust Administration]

    

    Revolving
      Credit Agreement dated as of September 22, 2005, between Wilmington Trust
      Company, as Subordination Agent, as agent and trustee for the Continental
      Airlines Pass Through Trust 2005-ERJ1, as Borrower, and Landesbank
      Baden-Wü;rttemberg (the "Liquidity
      Agreement")

     

    Ladies
      and Gentlemen:

     

    You
      are
      hereby notified that, pursuant to Section 6.02 of the Liquidity Agreement,
      by
      reason of the aggregate Pool Balance of the Certificates exceeding the aggregate
      outstanding principal amount of the Equipment Notes (other than any Equipment
      Notes previously sold or with respect to which the collateral securing such
      Equipment Notes has been disposed of) during the 18-month period prior to April
      1, 2021, we are giving this notice to you in order to cause (i) our obligations
      to make Advances under such Liquidity Agreement to terminate on the fifth
      Business Day after the date on which you receive this notice and (ii) you to
      request a Special Termination Advance under the Liquidity Agreement pursuant
      to
      Section 3.6(k) of the Intercreditor Agreement as a consequence of your receipt
      of this notice.

     

    Terms
      used but not defined herein shall have the respective meanings ascribed thereto
      in or pursuant to the Liquidity Agreement.

     

    

    
      
        
           

           

          
          

        

        
          IX-1

          
            

          

        

        
          Table
            of Contents

        

      

    

    

    THIS
      NOTICE IS THE "NOTICE OF SPECIAL TERMINATION" PROVIDED FOR UNDER THE LIQUIDITY
      AGREEMENT. OUR OBLIGATIONS TO MAKE ADVANCES UNDER THE LIQUIDITY AGREEMENT WILL
      TERMINATE ON THE FIFTH BUSINESS DAY AFTER THE DATE ON WHICH YOU RECEIVE THIS
      NOTICE.

     

    Very
      truly yours,

    

    LANDESBANK
      BADEN-WÜRTTEMBERG,

    as
      Liquidity Provider

    

    By_________________________________

    Name:

    Title:

    

    By_________________________________

    Name:

    Title:

    

    

    

    cc:
      Wilmington Trust Company, 

    as
      Trustee

    

    

     

     

     

     

     

     

     

     

     

     

     

    

    
      IX-2Exhibit 4.3 - Intercreditor Agreement

    

    EXECUTION
      VERSION

    

     

    INTERCREDITOR
      AGREEMENT

    (2005-ERJ1)

     

    Dated
      as
      of

     

    September 22,
      2005

     

    AMONG

     

    WILMINGTON
      TRUST COMPANY,

    not
      in
      its individual capacity

    but
      solely as Trustee under the

    Continental
      Airlines Pass Through Trust 2005-ERJ1

    

    

    LANDESBANK
      BADEN-WÜRTTEMBERG

    

    as
      Liquidity Provider

    

    AND

     

    WILMINGTON
      TRUST COMPANY, 

    not
      in
      its individual capacity except

    as
      expressly set forth herein but

    solely
      as
      Subordination Agent and trustee

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        Table
          of Contents

      

    

    

    

    TABLE
      OF CONTENTS

     

    Page

    
      	
              ARTICLE
                I DEFINITIONS

            	
              2

            
	
              SECTION
                1.1 Definitions

            	
              2

            
	
              ARTICLE
                II TRUST ACCOUNTS; CONTROLLING
                PARTY

            	
              15

            
	
              SECTION
                2.1 Agreement
                to Terms of Subordination; Payments from Monies Received
                Only

            	
              15

            
	
              SECTION
                2.2 Trust
                Accounts

            	
              16

            
	
              SECTION
                2.3 Deposits
                to the Collection Account and Special Payments Account

            	
              17

            
	
              SECTION
                2.4 Distributions
                of Special Payments

            	
              18

            
	
              SECTION
                2.5 Designated
                Representatives

            	
              20

            
	
              SECTION
                2.6 Controlling
                Party

            	
              20

            
	
              ARTICLE
                III RECEIPT, DISTRIBUTION AND APPLICATION OF
                AMOUNTS RECEIVED

            	
              22

            
	
              SECTION
                3.1 Written
                Notice of Distribution

            	
              22

            
	
              SECTION
                3.2 Distribution
                of Amounts on Deposit in the Collection Account

            	
              24

            
	
              SECTION
                3.3 Distribution
                of Amounts on Deposit Following a Triggering Event

            	
              25

            
	
              SECTION
                3.4 Other
                Payments

            	
              26

            
	
              SECTION
                3.5 Payments
                to the Trustee and the Liquidity Provider

            	
              27

            
	
              SECTION
                3.6 Liquidity
                Facilities

            	
              27

            
	
              ARTICLE
                IV EXERCISE OF REMEDIES

            	
              32

            
	
              SECTION
                4.1 Directions
                from the Controlling Party

            	
              32

            
	
              SECTION
                4.2 Remedies
                Cumulative

            	
              34

            
	
              SECTION
                4.3 Discontinuance
                of Proceedings

            	
              34

            
	
              SECTION
                4.4 Right
                of Certificateholders to Receive Payments Not to Be
                Impaired

            	
              34

            
	
              SECTION
                4.5 Undertaking
                for Costs

            	
              34

            
	
              ARTICLE
                V DUTIES OF THE SUBORDINATION AGENT; AGREEMENTS OF
                TRUSTEES, ETC.

            	
              35

            
	
              SECTION
                5.1 Notice
                of Indenture Default or Triggering Event

            	
              35

            
	
              SECTION
                5.2 Indemnification

            	
              36

            
	
              SECTION
                5.3 No
                Duties Except as Specified in Intercreditor Agreement

            	
              36

            
	
              SECTION
                5.4 Notice
                from the Liquidity Provider and Trustee

            	
              37

            
	
              ARTICLE
                VI THE SUBORDINATION AGENT

            	
              37

            
	
              SECTION
                6.1 Authorization;
                Acceptance of Trusts and Duties

            	
              37

            

    

    

    

    
      
        
          
          

        

        
          i

          
            

          

        

        
          Table
            of Contents

        

      

    

     

    
      TABLE
        OF
        CONTENTS

      (Continued)

      
         

        Page

      

    

    
      	
              SECTION
                6.2 Absence
                of Duties

            	
              37

            
	
              SECTION
                6.3 No
                Representations or Warranties as to Documents

            	
              37

            
	
              SECTION
                6.4 No
                Segregation of Monies; No Interest

            	
              37

            
	
              SECTION
                6.5 Reliance;
                Agents; Advice of Counsel

            	
              38

            
	
              SECTION
                6.6 Capacity
                in Which Acting

            	
              38

            
	
              SECTION
                6.7 Compensation

            	
              38

            
	
              SECTION
                6.8 May
                Become Certificateholder

            	
              38

            
	
              SECTION
                6.9 Subordination
                Agent Required; Eligibility

            	
              39

            
	
              SECTION
                6.10 Money
                to Be Held in Trust

            	
              39

            
	
              ARTICLE
                VII INDEMNIFICATION OF SUBORDINATION
                AGENT

            	
              39

            
	
              SECTION
                7.1 Scope
                of Indemnification

            	
              39

            
	
              ARTICLE
                VIII SUCCESSOR SUBORDINATION
                AGENT

            	
              39

            
	
              SECTION
                8.1 Replacement
                of Subordination Agent; Appointment of Successor

            	
              39

            
	
              ARTICLE
                IX SUPPLEMENTS AND AMENDMENTS

            	
              41

            
	
              SECTION
                9.1 Amendments,
                Waivers, Etc.

            	
              41

            
	
              SECTION
                9.2 Subordination
                Agent Protected

            	
              42

            
	
              SECTION
                9.3 Effect
                of Supplemental Agreements

            	
              42

            
	
              SECTION
                9.4  Notice
                to Rating Agencies

            	
              42

            
	
              ARTICLE
                X MISCELLANEOUS

            	
              43

            
	
              SECTION
                10.1 Termination
                of Intercreditor Agreement

            	
              43

            
	
              SECTION
                10.2 Intercreditor
                Agreement for Benefit of Trustees, Liquidity Provider and Subordination
                Agent

            	
              43

            
	
              SECTION
                10.3 Notices

            	
              43

            
	
              SECTION
                10.4 Severability

            	
              44

            
	
              SECTION
                10.5 No
                Oral Modifications or Continuing Waivers

            	
              44

            
	
              SECTION
                10.6 Successors
                and Assigns

            	
              44

            
	
              SECTION
                10.7 Headings

            	
              44

            
	
              SECTION
                10.8 Counterpart
                Form

            	
              45

            
	
              SECTION
                10.9 Subordination

            	
              45

            
	
              SECTION
                10.10 Governing
                Law

            	
              46

            
	
              SECTION
                10.11 Submission
                to Jurisdiction; Waiver of Jury Trial; Waiver of
                Immunity

            	
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    INTERCREDITOR
      AGREEMENT (2005-ERJ1)

     

    INTERCREDITOR
      AGREEMENT (2005-ERJ1) dated as of September 22, 2005 (this "Agreement"),
      among
      WILMINGTON TRUST COMPANY, a Delaware corporation ("WTC"),
      not
      in its individual capacity but solely as Trustee of the Trust (as defined
      below), LANDESBANK BADEN-WÜRTTEMBERG, a bank established in Germany as a public
      law institution with legal capacity (Rechtfähige
      Anstalt des
Öffentlichen Rechts)
      ("LBBW"),
      as
      Liquidity Provider, and WILMINGTON TRUST COMPANY, not in its individual capacity
      except as expressly set forth herein, but solely as Subordination Agent and
      trustee hereunder (in such capacity, together with any successor appointed
      pursuant to Article VIII hereof, the "Subordination
      Agent").

     

    WHEREAS,
      all capitalized terms used herein shall have the respective meanings referred
      to
      in Article I hereof;

     

    WHEREAS,
      pursuant to each Indenture, the related Owner Trustee proposes to issue on
      a
      non-recourse basis one series of Equipment Notes to finance the debt portion
      of
      the purchase price of the Aircraft referred to in such Indenture which will
      be
      leased to Continental pursuant to the related Lease;

     

    WHEREAS,
      pursuant to the Financing Agreements, the Trust will acquire the Equipment
      Notes;

     

    WHEREAS,
      pursuant to the Trust Agreement, the Trust proposes to issue Certificates
      bearing the interest rate and having the final distribution date described
      in
      the Trust Agreement on the terms and subject to the conditions set forth
      therein;

     

    WHEREAS,
      pursuant to the Underwriting Agreement, the Underwriter proposes to purchase
      Certificates issued by the Trust in the aggregate face amount set forth on
      Schedule I thereto on the terms and subject to the conditions set forth
      therein;

     

    WHEREAS,
      the Liquidity Provider proposes to enter into a Liquidity Facility with the
      Subordination Agent, as agent for the Trustee, for the benefit of the
      Certificateholders; 

     

    WHEREAS,
      it is a condition precedent to the obligations of the Underwriter under the
      Underwriting Agreement that the Subordination Agent, the Trustee and the
      Liquidity Provider agree to the terms of subordination set forth in this
      Agreement in respect of the Certificates, and the Subordination Agent, the
      Trustee and the Liquidity Provider, by entering into this Agreement, hereby
      acknowledge and agree to such terms of subordination and the other provisions
      of
      this Agreement.

     

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

    

    
      
        
          
          

        

        
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    ARTICLE
      I

     

    DEFINITIONS

     

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

     

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

     

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

     

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

     

    (4) the
      term
      "including" shall mean "including without limitation".

     

    "Acceleration"
      means,
      with respect to the amounts payable in respect of the Equipment Notes issued
      under any Indenture, such amounts becoming immediately due and payable by
      declaration or otherwise. "Accelerate",
      "Accelerated"
      and
      "Accelerating"
      have
      meanings correlative to the foregoing.

     

    "Advance",
      means
      any Advances as defined in the Liquidity Facility.

     

    "Affiliate"
      means,
      with respect to any Person, any other Person directly or indirectly controlling,
      controlled by or under common control with such Person. For the 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
      the
      terms "controlling" and "controlled" have meanings correlative to the
      foregoing.

     

    "Agreement"
      has the
      meaning assigned to such term in the first paragraph of this
      Agreement.

     

    "Aircraft"
      means,
      with respect to each Indenture, the "Aircraft" referred to therein.

     

    "Appraisal"
      has the
      meaning assigned to such term in Section 4.1(a)(iii).

     

    "Appraisers"
      means
      Aviation Specialists Group, Inc., BACK Aviation Solutions and BK Associates,
      Inc. or any other nationally recognized appraiser reasonably selected by the
      Subordination Agent or the Controlling Party.

     

    "Available
      Amount"
      means,
      on any drawing date, subject to the proviso contained in the first sentence
      of
      Section 3.6(g) hereof, an amount equal to (a) the Stated Amount at such

     

    

    
      
        
          
          

        

        
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    time,
      less
      (b) the
      aggregate amount of each Interest Drawing honored by the Liquidity Provider
      under the Liquidity Facility on or prior to such date which has not been
      reimbursed or reinstated as of such date; provided
      that,
      following a Downgrade Drawing, a Special Termination Drawing, an Early
      Termination Drawing or a Final Drawing under the Liquidity Facility, the
      Available Amount of the Liquidity Facility shall be zero.

     

    "Basic
      Agreement"
      means
      the Pass Through Trust Agreement dated as of September 25, 1997 between
      Continental and WTC, not in its individual capacity, except as otherwise
      expressly provided therein, but solely as trustee.

     

    "Business
      Day"
      means
      any day other than a Saturday or Sunday or a day on which commercial banks
      are
      required or authorized to close in Houston, Texas, New York, New York, or,
      so
      long as any Certificate is outstanding, the city and state in which the Trustee,
      the Subordination Agent or any Loan Trustee maintains its Corporate Trust Office
      or receives and disburses funds, and that, solely with respect to draws under
      the Liquidity Facility, also is a "Business Day" as defined in the Liquidity
      Facility.

     

    "Cash
      Collateral Account"
      means
      an Eligible Deposit Account in the name of the Subordination Agent maintained
      at
      an Eligible Institution, which shall be the Subordination Agent if it shall
      so
      qualify, into which all amounts drawn under the Liquidity Facility pursuant
      to
      Section 3.6(c), 3.6(d), 3.6(i), or 3.6(k) shall be deposited.

     

    "Certificates"
      means
      the certificates issued by the Trust, substantially in the form of Exhibit
      A to
      the Trust Agreement, and authenticated by the Trustee, representing fractional
      undivided interests in the Trust, and any certificates issued in exchange
      therefor or replacement thereof pursuant to the terms of the Trust
      Agreement.

     

    "Certificateholder"
      means,
      at any time, any holder of one or more Certificates.

     

    "Closing
      Date"
      means
      September 22, 2005.

     

    "Code"
      means
      the Internal Revenue Code of 1986, as amended from time to time, and the
      Treasury Regulations promulgated thereunder.

     

    "Collection
      Account"
      means
      the Eligible Deposit Account established by the Subordination Agent pursuant
      to
      Section 2.2 which the Subordination Agent shall make deposits in and withdrawals
      from in accordance with this Agreement.

     

    "Continental"
      means
      Continental Airlines, Inc., a Delaware corporation, and its successors and
      assigns.

     

    "Continental
      Bankruptcy Event"
      means
      the occurrence and continuation of any of the following:

     

     

    (a) Continental
      shall consent to the appointment of or the taking of possession by a receiver,
      trustee or liquidator of itself or of a substantial part of its 

    

    
      
        
          
          

        

        
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    property,
      or Continental shall admit in writing its inability to pay its debts generally
      as they come due, or does not pay its debts generally as they become due or
      shall make a general assignment for the benefit of creditors, or Continental
      shall file a voluntary petition in bankruptcy or a voluntary petition or an
      answer seeking reorganization, liquidation or other relief in a case under
      any
      bankruptcy laws or other insolvency laws (as in effect at such time) or an
      answer admitting the material allegations of a petition filed against
      Continental in any such case, or Continental shall seek relief by voluntary
      petition, answer or consent, under the provisions of any other bankruptcy or
      other similar law providing for the reorganization or winding-up of corporations
      (as in effect at such time) or Continental shall seek an agreement, composition,
      extension or adjustment with its creditors under such laws, or Continental's
      board of directors shall adopt a resolution authorizing corporate action in
      furtherance of any of the foregoing; or 

     

    (b) an
      order,
      judgment or decree shall be entered by any court of competent jurisdiction
      appointing, without the consent of Continental, a receiver, trustee or
      liquidator of Continental or of any substantial part of its property, or any
      substantial part of the property of Continental shall be sequestered, or
      granting any other relief in respect of Continental as a debtor under any
      bankruptcy laws or other insolvency laws (as in effect at such time), and any
      such order, judgment or decree of appointment or sequestration shall remain
      in
      force undismissed, unstayed and unvacated for a period of 60 days after the
      date
      of entry thereof; or

     

    (c) a
      petition against Continental in a case under any bankruptcy laws or other
      insolvency laws (as in effect at such time) is filed and not withdrawn or
      dismissed within 60 days thereafter, or if, under the provisions of any law
      providing for reorganization or winding-up of corporations which may apply
      to
      Continental, any court of competent jurisdiction assumes jurisdiction, custody
      or control of Continental or of any substantial part of its property and such
      jurisdiction, custody or control remains in force unrelinquished, unstayed
      and
      unterminated for a period of 60 days.

     

    "Continental
      Provisions"
      has the
      meaning specified in Section 9.1(a).

     

    "Controlling
      Party"
      means
      the Person entitled to act as such pursuant to the terms of Section
      2.6.

     

    "Corporate
      Trust Office"
      means,
      with respect to the Trustee, the Subordination Agent or any Loan Trustee, the
      office of such Person in the city at which, at any particular time, its
      corporate trust business shall be principally administered.

     

    "Current
      Distribution Date"
      means a
      Distribution Date specified as a reference date for calculating the Expected
      Distributions or the Triggering Event Distributions with respect to the
      Certificates as of such Distribution Date.

     

    "Delivery
      Period Expiry Date"
      means
      the earlier of (a) May 31, 2006, or, if the

     

    

    
      
        
          
          

        

        
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    Equipment
      Notes relating to all of the Aircraft (or Substitute Aircraft in lieu thereof)
      have not been purchased by the Trustee on or prior to such date due to any
      reason beyond the control of Continental and not occasioned by Continental's
      fault or negligence, August 31, 2006 and (b) the date on which Equipment Notes
      with respect to all Aircraft (or Substitute Aircraft in lieu thereof) have
      been
      purchased by the Trustee in accordance with the Note Purchase
      Agreement.

     

    "Deposit
      Agreement"
      shall
      mean the Deposit Agreement dated as of the date hereof between the Escrow Agent
      and the Depositary, as the same may be amended, modified or supplemented from
      time to time in accordance with the terms thereof.

     

    "Depositary"
      means
      Citibank, N.A.

     

    "Deposits"
      has the
      meaning set forth in the Deposit Agreement.

     

    "Designated
      Representatives"
      means
      the Subordination Agent Representatives, the Trustee Representatives and the
      LP
      Representatives identified under Section 2.5.

     

    "Distribution
      Date"
      means a
      Regular Distribution Date or a Special Distribution Date.

     

    "Dollars"
      or
      "$"
      means
      United States dollars.

     

    "Downgrade
      Drawing"
      has the
      meaning assigned to such term in Section 3.6(c).

     

    "Downgrade
      Event"
      has the
      meaning assigned to such term in the Liquidity Facility.

     

    "Downgraded
      Facility"
      has the
      meaning assigned to such term in Section 3.6(c).

     

    "Drawing"
      means
      an Interest Drawing, a Final Drawing, a Special Termination Drawing, an Early
      Termination Drawing or a Downgrade Drawing, as the case may be.

     

    "DTC"
      means
      the Depository Trust Company, a New York corporation.

     

    "Early
      Terminated Facility"
      has the
      meaning assigned to such term in Section 3.6(d).

     

    "Early
      Termination Drawing"
      has the
      meaning assigned to such term in Section 3.6(d).

     

    "Early
      Termination Date"
      means
      the date specified in an Early Termination Notice delivered by the Liquidity
      Provider to the Subordination Agent in accordance with Section 3.6(d), which
      date shall not be earlier than the 25th
      day
      following the receipt by the Subordination Agent of such Early Termination
      Notice.

     

    "Eligible
      Deposit Account"
      means
      either (a) a segregated account with an Eligible Institution or (b) a segregated
      trust account with the corporate trust department of a depository institution
      organized under the laws of the United States of America or any one of the
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    thereof
      or the District of Columbia (or any U.S. branch of a foreign bank), having
      corporate trust powers and acting as trustee for funds deposited in such
      account, so long as any of the securities of such depository institution has
      a
      long-term unsecured debt rating of at least A3 from Moody's and an issuer credit
      rating of at least A- from Standard & Poor's. An Eligible Deposit Account
      may be maintained with the Liquidity Provider so long as the Liquidity Provider
      is an Eligible Institution; provided
      that the
      Liquidity Provider shall have waived all rights of set-off and counterclaim
      with
      respect to such account.

     

    "Eligible
      Institution"
      means
      (a) the corporate trust department of the Subordination Agent or the Trustee,
      as
      applicable, or (b) a depository institution organized under the laws of the
      United States of America or any one of the states thereof or the District of
      Columbia (or any U.S. branch of a foreign bank), which has a long-term unsecured
      debt rating of at least A3 from Moody's and an issuer credit rating of at least
      A- from Standard & Poor's. 

     

    "Eligible
      Investments"
      means
      (a) investments in obligations of, or guaranteed by, the United States
      Government having maturities no later than 30 days following the date of such
      investment, (b) investments in open market commercial paper of any corporation
      incorporated under the laws of the United States of America or any state thereof
      with a short-term unsecured debt rating issued by Moody's and Standard &
Poor's of at least P-1 and A-1, respectively, having maturities no later than
      30
      days following the date of such investment or (c) investments in negotiable
      certificates of deposit, time deposits, banker's acceptances, commercial paper
      or other direct obligations of, or obligations guaranteed by, commercial banks
      organized under the laws of the United States or of any political subdivision
      thereof (or any U.S. branch of a foreign bank) with issuer ratings of at least
      B/C by Thomson Bankwatch, having maturities no later than 30 days following
      the
      date of such investment; provided,
      however,
      that
      (x) all Eligible Investments that are bank obligations shall be denominated
      in
      U.S. dollars; and (y) the aggregate amount of Eligible Investments at any one
      time that are bank obligations issued by any one bank shall not be in excess
      of
      5% of such bank's capital surplus; provided further
      that any
      investment of the types described in clauses (a), (b) and (c) above may be
      made
      through a repurchase agreement in commercially reasonable form with a bank
      or
      other financial institution qualifying as an Eligible Institution so long as
      such investment is held by a third party custodian also qualifying as an
      Eligible Institution; provided further,
      however,
      that in
      the case of any Eligible Investment issued by a domestic branch of a foreign
      bank, the income from such investment shall be from sources within the United
      States for purposes of the Code. Notwithstanding the foregoing, no investment
      of
      the types described in clause (b) above which is issued or guaranteed by
      Continental or any of its Affiliates, and no investment in the obligations
      of
      any one bank in excess of $10,000,000 shall be an Eligible Investment, unless
      written confirmation shall have been received from each Rating Agency that
      the
      making of such investment will not result in a withdrawal or downgrading of
      the
      ratings of the Certificates.

     

    "Embraer"
      means
      Embraer-Empresa Brasileira de Aeronáutica S.A., a company organized under the
      laws of Brazil, and its successors and assigns.

     

    "Equipment
      Notes"
      means
      the 9.798% Equipment Notes issued pursuant to any Indenture by the related
      Owner
      Trustee and authenticated by the Loan Trustee thereunder, and any such Equipment
      Notes issued in exchange therefor or replacement thereof pursuant to the

     

    

    
      
        
          
          

        

        
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    terms
      of
      such Indenture.

     

    "Escrow
      Agent"
      means
      Wells Fargo Bank Northwest, National Association, as escrow agent under each
      Escrow and Paying Agent Agreement, together with its successors in such
      capacity.

     

    "Escrow
      and Paying Agent Agreement"
      shall
      mean the Escrow and Paying Agent Agreement dated as of the date hereof among
      the
      Escrow Agent, the Underwriter, the Trustee and the Paying Agent, as the same
      may
      be amended, modified or supplemented from time to time in accordance with the
      terms thereof.

     

    "Expected
      Distributions"
      means,
      on any Current Distribution Date, the sum of (x) accrued and unpaid
      interest on the Certificates (excluding interest, if any, payable with respect
      to any Deposits) and (y) the difference between (A) the Pool Balance as of
      the immediately preceding Distribution Date (or, if the Current Distribution
      Date is the first Distribution Date, the original aggregate face amount of
      the
      Certificates), and (B) the Pool Balance as of the Current Distribution Date
      calculated on the basis that (i) the principal of the Equipment Notes has been
      paid when due (whether at stated maturity, upon redemption, prepayment,
      purchase, Acceleration or otherwise) and such payments have been distributed
      to
      the Certificateholders and (ii) the principal of any Equipment Notes formerly
      held in the Trust that have been sold pursuant to the terms hereof has been
      paid
      in full and such payments have been distributed to the Certificateholders,
      but
      without giving effect to any reduction in the Pool Balance as a result of any
      distribution attributable to Deposits occurring after the immediately preceding
      Distribution Date (or, if the Current Distribution Date is the first
      Distribution Date, occurring after the initial issuance of the Certificates).
      For purposes of calculating Expected Distributions, any premium paid on the
      Equipment Notes that has not been distributed to the Certificateholders (other
      than such premium or a portion thereof applied to the payment of interest on
      the
      Certificates or the reduction of the Pool Balance) shall be added to the amount
      of such Expected Distributions.

     

    "Expiry
      Date"
      has the
      meaning set forth in the Liquidity Facility.

     

    "Fee
      Letters"
      means,
      collectively, the Fee Letter dated the date hereof among LBBW, Embraer,
      Continental and the Subordination Agent with respect to the initial Liquidity
      Facility and any fee letter entered into between the Subordination Agent,
      Embraer, Continental and any Replacement Liquidity Provider in respect of the
      Liquidity Facility.

     

    "Final
      Drawing"
      has the
      meaning assigned to such term in Section 3.6(i).

     

    "Final
      Legal Distribution Date"
      means
      October 1, 2022.

     

    "Financing
      Agreements"
      means
      each of the Participation Agreements and the Note Purchase
      Agreement.

     

    "Indenture"
      means
      each of the Trust Indentures entered into by the Loan Trustee and the Owner
      Trustee pursuant to the Note Purchase Agreement, in each case as the same may
      be
      amended, supplemented or otherwise modified from time to time in accordance
      with
      its terms.

     

    

    
      
        
          
          

        

        
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    "Indenture
      Default"
      means,
      with respect to any Indenture, any Event of Default (as such term is defined
      in
      such Indenture) thereunder. 

     

    "Interest
      Drawing"
      has the
      meaning assigned to such term in Section 3.6(a).

     

    "Interest
      Payment Date"
      means
      each date on which interest is due and payable under the Liquidity Facility
      on a
      Downgrade Drawing, a Special Termination Drawing, an Early Termination Drawing
      or Final Drawing thereunder, other than any such date on which interest is
      due
      and payable under the Liquidity Facility only on an Applied Provider Advance
      (as
      such term is defined in the Liquidity Facility).

     

    "Investment
      Earnings"
      means
      investment earnings on funds on deposit in the Trust Accounts net of losses
      and
      investment expenses of the Subordination Agent in making such
      investments.

     

    "LBBW"
      has the
      meaning assigned to such term in the recital of parties to this
      Agreement.

     

    "Lease"
      means,
      with respect to each Indenture, the "Lease" referred to therein.

     

    "Lending
      Office"
      means,
      with respect to the Liquidity Facility of the initial Liquidity Provider, the
      lending office of the Liquidity Provider presently located at Stuttgart,
      Germany, or such other lending office as such Liquidity Provider from time
      to
      time shall notify the Trustee as its lending office under such Liquidity
      Facility; provided
      that
      such Liquidity Provider shall not change its Lending Office to a Lending Office
      outside Germany or the United States of America except in accordance with any
      such Liquidity Facility.

     

    "Lien"
      means
      any mortgage, pledge, lien, charge, claim, disposition of title, encumbrance,
      lease, sublease, sub-sublease or security interest of any kind, including,
      without limitation, any thereof arising under any conditional sales or other
      title retention agreement.

     

    "Liquidity
      Event of Default",
      has
      the meaning assigned to such term in the Liquidity Facility.

     

    "Liquidity
      Expenses"
      means
      all Liquidity Obligations other than (i) the principal amount of any Drawings
      under the Liquidity Facility and (ii) any interest accrued on any Liquidity
      Obligations.

     

    "Liquidity
      Facility"
      means,
      initially, the Revolving Credit Agreement, dated as of the date hereof, between
      the Subordination Agent, as agent and trustee for the Trust, and the initial
      Liquidity Provider, and, from and after the replacement of such Revolving Credit
      Agreement pursuant hereto, the Replacement Liquidity Facility therefor, if
      any,
      in each case as amended, supplemented or otherwise modified from time to time
      in
      accordance with its terms. 

     

    "Liquidity
      Obligations"
      means
      all principal, interest, fees and other amounts owing to the Liquidity Provider
      under the Liquidity Facility, Section 9.1 of the Participation Agreements or
      the
      Fee Letter.

     

    

    
      
        
          
          

        

        
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    "Liquidity
      Provider"
      means
      LBBW, together with any Replacement Liquidity Provider which has issued a
      Replacement Liquidity Facility to replace the Liquidity Facility pursuant to
      Section 3.6(e).

     

    "Loan
      Trustee"
      means,
      with respect to any Indenture, the mortgagee thereunder.

     

    "LP
      Incumbency Certificate"
      has the
      meaning assigned to such term in Section 2.5(c).

     

    "LP
      Representatives"
      has the
      meaning assigned to such term in Section 2.5(c).

     

    "Moody's"
      means
      Moody's Investors Service, Inc.

     

    "Non-Controlling
      Party"
      means,
      at any time, the Trustee or the Liquidity Provider, if such person is not the
      Controlling Party at such time.

     

    "Non-Performing
      Equipment Note"
      means
      an Equipment Note issued pursuant to an Indenture that is not a Performing
      Equipment Note.

     

    "Note
      Purchase Agreement"
      means
      the Note Purchase Agreement dated as of the date hereof, among Continental,
      the
      Trustee, the Escrow Agent, the Subordination Agent and the Paying Agent, as
      amended, supplemented or otherwise modified from time to time in accordance
      with
      its terms.

     

    "Officer's
      Certificate"
      of any
      Person means a certification signed by a Responsible Officer of such
      Person.

     

    "Operative
      Agreements"
      means
      this Agreement, the Liquidity Facility, the Underwriting Agreement, the
      Indentures, the Trust Agreement, the Leases, the Financing Agreements, the
      Fee
      Letter, the Equipment Notes and the Certificates, together with all exhibits
      and
      schedules included with any of the foregoing.

     

    "Outstanding"
      means,
      when used with respect to the Certificates, as of the date of determination,
      all
      Certificates theretofore authenticated and delivered under the Trust Agreement,
      except:

     

     

    (i) 
      Certificates theretofore canceled by the Registrar (as defined in the Trust
      Agreement) or delivered to the Trustee or such Registrar for
      cancellation;

     

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

    

    
      
        
          
          

        

        
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    (iii) Certificates
      in exchange for or in lieu of which other Certificates have been authenticated
      and delivered pursuant to the Trust Agreement;

     

    provided,
      however,
      that in
      determining whether the holders of the requisite Outstanding amount of the
      Certificates have given any request, demand, authorization, direction, notice,
      consent or waiver hereunder, any Certificates owned by Continental or any of
      its
      Affiliates shall be disregarded and deemed not to be Outstanding, except that,
      in determining whether the Trustee shall be protected in relying upon any such
      request, demand, authorization, direction, notice, consent or waiver, only
      Certificates that the Trustee knows to be so owned shall be so disregarded.
      Certificates so owned that have been pledged in good faith may be regarded
      as
      Outstanding if the pledgee establishes to the satisfaction of the Trustee the
      pledgee's right so to act with respect to such Certificates and that the pledgee
      is not Continental or any of its Affiliates.

     

    "Overdue
      Scheduled Payment"
      means
      any Scheduled Payment which is not in fact received by the Subordination Agent
      within five days after the Scheduled Payment Date relating thereto.

     

    "Owner
      Participant"
      means,
      with respect to any Participation Agreement, the owner participant
      thereunder.

     

    "Owner
      Trustee"
      means,
      with respect to any Indenture, the Owner Trustee (as defined therein) not in
      its
      individual capacity but solely as trustee under the related owner trust
      agreement, together with any successor trustee appointed pursuant to such owner
      trust agreement.

     

    "Participation
      Agreement"
      means,
      with respect to each Indenture, the "Participation Agreement" referred to
      therein.

     

    "Payee"
      has the
      meaning assigned to such term in Section 2.4(e).

     

    "Paying
      Agent"
      means
      Wilmington Trust Company, as paying agent under the Escrow and Paying Agent
      Agreement, together with its successors in such capacity.

     

    "Performing
      Equipment Note"
      means
      an Equipment Note with respect to which no payment default has occurred and
      is
      continuing (without giving effect to any Acceleration); provided
      that in
      the event of a bankruptcy proceeding under Title 11 of the United States Code
      (the "Bankruptcy
      Code")
      in
      which Continental is a debtor any payment default existing during the 60-day
      period under Section 1110(a)(2)(A) of the Bankruptcy Code (or such longer period
      as may apply under Section 1110(b) of the Bankruptcy Code or as may apply for
      the cure of such payment default under Section 1110(a)(2)(B) of the Bankruptcy
      Code) shall not be taken into consideration until the expiration of the
      applicable period.

     

    "Performing
      Note Deficiency"
      means
      any time that less than 65% of the then aggregate outstanding principal amount
      of all Equipment Notes are Performing Equipment Notes.

     

    "Person"
      means
      any individual, corporation, partnership, joint venture, 

     

    
      
        
          
          

        

        
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    association,
      limited liability company, joint-stock company, trust, trustee, unincorporated
      organization or government or any agency or political subdivision
      thereof.

     

    "Pool
      Balance"
      means,
      as of any date, (i) the original aggregate face amount of the Certificates
      less
      (ii) the
      aggregate amount of all payments made in respect of the Certificates or in
      respect of Deposits other than payments made in respect of interest or premium
      thereon or reimbursement of any costs and expenses in connection therewith.
      The
      Pool Balance as of any Distribution Date shall be computed after giving effect
      to any special distribution with respect to unused Deposits, payment of
      principal of the Equipment Notes or payment with respect to other Trust Property
      and the distribution thereof to be made on that date. 

     

    "Proceeding"
      means
      any suit in equity, action at law or other judicial or administrative
      proceeding.

     

    "PTC
      Event of Default"
      means
      the failure to pay within 10 Business Days of the due date thereof: (i) the
      outstanding Pool Balance of the Certificates on the Final Legal Distribution
      Date or (ii) interest due on the Certificates on any Distribution Date (unless
      the Subordination Agent shall have made an Interest Drawing, or a withdrawal
      from the Cash Collateral Account, with respect thereto in an aggregate amount
      sufficient to pay such interest and shall have distributed such amount to the
      Trustee).

     

    "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 and Standard &
Poor's.

     

    "Ratings
      Confirmation"
      means,
      with respect to any action proposed to be taken, a written confirmation from
      each of the Rating Agencies that such action would not result in (i) a reduction
      of the rating for the Certificates below the then current rating for the
      Certificates or (ii) a withdrawal or suspension of the rating of the
      Certificates.

     

    "Regular
      Distribution Dates"
      means
      the 1st
      day of
      each month, commencing on October 1, 2005; provided,
      however,
      that,
      if any such day shall not be a Business Day, the related distribution shall
      be
      made on the next succeeding Business Day.

     

    "Replacement
      Liquidity Facility"
      means
      an irrevocable revolving credit agreement (or agreements) in substantially
      the
      form of the replaced Liquidity Facility, including reinstatement provisions,
      or
      in such other form or forms (which may include a letter of credit, surety bond,
      financial insurance policy or guaranty) as shall permit the Rating Agencies
      to
      confirm in writing their respective ratings then in effect for the Certificates
      (before downgrading of such ratings, if any, as a result of the downgrading
      of
      the Liquidity Provider), in a face amount (or in an aggregate face amount)
      equal
      to the amount of interest payable on the Certificates (at the Stated Interest
      Rate and without regard to expected future principal payments) on the 18 Regular
      Distribution Dates following the date of replacement of the Liquidity Facility
      and issued by a Person (or Persons) having an unsecured short-term debt rating
      and a short-term issuer credit rating, as the case may be, issued by both Rating
      Agencies which are equal to or higher than the Threshold Rating or such other
      ratings and qualifications as shall permit the Rating 

     

    

    
      
        
          
          

        

        
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    Agencies
      to confirm in writing their respective ratings then in effect for the
      Certificates (before the downgrading of such ratings, if any, as a result of
      the
      downgrading of the replaced Liquidity Provider).

     

    "Replacement
      Liquidity Provider"
      means a
      Person (or Persons) who issues a Replacement Liquidity Facility.

     

    "Required
      Amount"
      means
      with respect to the Liquidity Facility or the Cash Collateral Account, for
      any
      day, the sum of the aggregate amount of interest, calculated at the rate per
      annum equal to the Stated Interest Rate, that would be payable on the
      Certificates on each of the eighteen successive Regular Distribution Dates
      immediately following such day or, if such day is a Regular Distribution Date,
      on such day and the succeeding seventeen Regular Distribution Dates, in each
      case calculated on the basis of the Pool Balance on such date and without regard
      to expected future payments of principal on the Certificates; provided
      that,
      for any date, the Pool Balance for determining the Required Amount shall, in
      the
      event of (A) the disposition of any Aircraft pursuant to the exercise of
      remedies under an Indenture on or prior to such date, be deemed to be reduced
      by
      an amount equal to the outstanding principal amount of the Equipment Note
      secured by such Aircraft that remains unpaid after giving effect to the
      application under such Indenture of proceeds from the disposition of such
      Aircraft and any amounts otherwise received from Continental in connection
      with
      such disposition at or prior to the time of such disposition or (B) the sale
      of
      any Equipment Note pursuant to the Intercreditor Agreement on or prior to such
      date, be deemed to be reduced by an amount equal to the excess of (x) the
      outstanding amount of principal as of the date of sale of such Equipment Note
      over (y) the excess of (A) the net purchase price received with respect to
      the
      sale of such Equipment Note over (B) the outstanding amount of interest accrued
      and payable under such Equipment Note as of the date of sale of such Equipment
      Note.

     

    "Reserve
      Account"
      means
      the Eligible Deposit Account established by the Subordination Agent pursuant
      to
      Section 2.2(a)(iii) from which the Subordination Agent shall make withdrawals
      to
      fund the Appraisals in accordance with Section 4.1 hereof.

     

    "Reserve
      Amount"
      means
      $75,000.

     

    "Responsible
      Officer"
      means
      (i) with respect to the Subordination Agent and the Trustee, any officer in
      the
      corporate trust administration department of the Subordination Agent or the
      Trustee or any other officer customarily performing functions similar to those
      performed by the Persons who at the time shall be such officers, respectively,
      or to whom any corporate trust matter is referred because of his knowledge
      of
      and familiarity with a particular subject, and (ii) with respect to the
      Liquidity Provider, two authorized signatories of such Liquidity
      Provider.

     

    "Scheduled
      Payment"
      means,
      with respect to any Equipment Note, (i) any payment of principal or interest
      on
      such Equipment Note (other than an Overdue Scheduled Payment) due from the
      obligor thereon, which payment represents the installment of principal at the
      stated maturity of such installment of principal on such Equipment Note, the
      payment of regularly scheduled interest accrued on the unpaid principal amount
      of such Equipment Note, or both, or (ii) any payment of interest on the
      Certificates with funds drawn under the Liquidity 

     

    

    
      
        
          
          

        

        
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    Facility
      or the Cash Collateral Account; provided
      that any
      payment of principal of, premium, if any, or interest resulting from the
      redemption or purchase of any Equipment Note shall not constitute a Scheduled
      Payment.

     

    "Scheduled
      Payment Date"
      means,
      with respect to any Scheduled Payment, the date on which such Scheduled Payment
      is scheduled to be made.

     

    "Section
      2.4(b) Fraction"
      has the
      meaning assigned to such term in Section 2.4(b).

     

    "Special
      Distribution Date"
      has the
      meaning assigned to such term in Section 2.4(a).

     

    "Special
      Payment"
      means
      any payment (other than a Scheduled Payment) in respect of, or any proceeds
      of,
      any Equipment Note or Trust Indenture Estate (as defined in each
      Indenture).

     

    "Special
      Payments Account"
      means
      the Eligible Deposit Account created pursuant to Section 2.2 as a sub-account
      to
      the Collection Account.

     

    "Special
      Termination Drawing"
      has the
      meaning assigned to such term in Section 3.6(k).

     

    "Special
      Termination Notice"
      has the
      meaning assigned to such term in the Liquidity Facility. 

     

    "Standard
      & Poor's"
      means
      Standard & Poor's Ratings Services, a division of The McGraw-Hill Companies,
      Inc.

     

    "Stated
      Amount"
      means
      the Maximum Commitment (as defined in the Liquidity Facility) of the Liquidity
      Provider.

     

    "Stated
      Interest Rate"
      means
      9.798% per annum.

     

    "Subordination
      Agent"
      has the
      meaning assigned to it in the preliminary statements to this
      Agreement.

     

    "Subordination
      Agent Incumbency Certificate"
      has the
      meaning assigned to such term in Section 2.5(a).

     

    "Subordination
      Agent Representatives"
      has the
      meaning assigned to such term in Section 2.5(a).

     

    "Substitute
      Aircraft"
      has the
      meaning set forth in the Note Purchase Agreement.

     

    "Tax"
      and
      "Taxes"
      mean
      any and all taxes, fees, levies, duties, tariffs, imposts, and other charges
      of
      any kind (together with any and all interest, penalties, loss, damage,
      liability, expense, additions to tax and additional amounts or costs incurred
      or
      imposed with respect thereto) imposed or otherwise assessed by the United States
      of America or by any state, local or 

     

    

    
      
        
          
          

        

        
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    foreign
      government (or any subdivision or agency thereof) or other taxing authority,
      including, without limitation: taxes or other charges on or with respect to
      income, franchises, windfall or other profits, gross receipts, property, sales,
      use, capital stock, payroll, employment, social security, workers' compensation,
      unemployment compensation or net worth and similar charges; taxes or other
      charges in the nature of excise, withholding, ad valorem, stamp, transfer,
      value
      added, taxes on goods and services, gains taxes, license, registration and
      documentation fees, customs duties, tariffs and similar charges.

     

    "Termination
      Notice"
      has the
      meaning assigned to such term in the Liquidity Facility.

     

    "Threshold
      Rating"
      means
      the short-term unsecured debt rating of P-1 by Moody's and short-term issuer
      credit rating of A-1 by Standard & Poor's.

     

    "Treasury
      Regulations"
      means
      regulations, including proposed or temporary regulations, promulgated under
      the
      Code. References herein to specific provisions of proposed or temporary
      regulations shall include analogous provisions of final Treasury Regulations
      or
      other successor Treasury Regulations.

     

    "Triggering
      Event"
      means
      (x) the occurrence of an Indenture Default under all of the Indentures resulting
      in a PTC Event of Default, (y) the Acceleration of all of the outstanding
      Equipment Notes (provided
      that,
      with respect to the period prior to the Delivery Period Expiry Date, the
      aggregate principal balance of such Equipment Notes is in excess of $195
      million) or (z) the occurrence of a Continental Bankruptcy Event.

     

    "Triggering
      Event Distributions"
      means,
      on any Current Distribution Date, the sum of (x) the aggregate amount of all
      accrued and unpaid interest on the Certificates (excluding interest, if any,
      payable with respect to the Deposits) and (y) the Pool Balance as of the
      immediately preceding Distribution Date (or, if the Current Distribution Date
      is
      the first Distribution Date, the original aggregate face amount of the
      Certificates) (less the amount of the Deposits as of such preceding Distribution
      Date (or, if the Current Distribution Date is the first Distribution Date,
      the
      Closing Date) other than any portion of such Deposits thereafter used to acquire
      Equipment Notes pursuant to the Note Purchase Agreement). For purposes of
      calculating the Triggering Event Distributions, any premium paid on the
      Equipment Notes that has not been distributed to the Certificateholders (other
      than such premium or a portion thereof applied to the payment of interest on
      the
      Certificates or the reduction of the Pool Balance) shall be added to the amount
      of the Triggering Event Distributions.

     

    "Trust"
      means
      the Continental Airlines Pass Through Trust 2005-ERJ1 created and administered
      pursuant to the Trust Agreement.

     

    "Trust
      Accounts"
      has the
      meaning assigned to such term in Section 2.2(a).

     

    "Trust
      Agreement"
      means
      the Basic Agreement, as supplemented by the Trust Supplement No. 2005-ERJ1
      thereto, dated the date hereof, governing the creation and administration of
      the
      Pass Through Trust 2005-ERJ1 and the issuance of the Certificates, as the

     

    

    
      
        
          
          

        

        
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    same
      may
      be amended, supplemented or otherwise modified from time to time in accordance
      with its terms.

     

    "Trustee"
      means
      WTC, not in its individual capacity except as expressly set forth in the Trust
      Agreement, but solely as trustee under the Trust Agreement, together with any
      successor trustee appointed pursuant thereto.

     

    "Trustee
      Incumbency Certificate"
      has the
      meaning assigned to such term in Section 2.5(b).

     

    "Trustee
      Representatives"
      has the
      meaning assigned to such term in Section 2.5(b).

     

    "Trust
      Indenture Estate"
      with
      respect to any Indenture, has the meaning assigned to such term in such
      Indenture.

     

    "Trust
      Property"
      has the
      meaning set forth in the Trust Agreement. 

     

    "Unapplied
      Provider Advance"
      has the
      meaning specified in the Liquidity Facility.

     

    "Underwriter"
      means
      Citigroup Global Markets Inc.

     

    "Underwriting
      Agreement"
      means
      the Underwriting Agreement dated September 14, 2005 among the Underwriter,
      the Depositary, Embraer and Continental, relating to the purchase of the
      Certificates by the Underwriter, as the same may be amended, supplemented or
      otherwise modified from time to time in accordance with its terms.

     

    "Written
      Notice"
      means,
      from the Subordination Agent, the Trustee or the Liquidity Provider, a written
      instrument executed by the Designated Representative of such Person. An invoice
      delivered by the Liquidity Provider pursuant to Section 3.1 in accordance with
      its normal invoicing procedures shall constitute Written Notice under such
      Section.

     

    "WTC"
      has the
      meaning assigned to such term in the recital of parties to this
      Agreement.

     

     

    ARTICLE
      II

     

    TRUST
      ACCOUNTS; CONTROLLING PARTY

     

    SECTION
      2.1 Agreement
      to Terms of Subordination; Payments from Monies Received Only.
      (a) The
      Trustee hereby acknowledges and agrees to the terms of subordination and
      distribution set forth in this Agreement in respect of the Certificates and
      agrees to enforce such provisions and cause all payments in respect of the
      Equipment Notes and the Liquidity Facility to be applied in accordance with
      the
      terms of this Agreement. In addition, the Trustee hereby agrees to cause the
      Equipment Notes purchased by the Trust to be registered in the name of the
      Subordination Agent or its nominee, as agent and trustee for the Trustee, to
      be
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    by
      the
      Subordination Agent solely for the purpose of facilitating the enforcement
      of
      the subordination and other provisions of this Agreement.

     

    (b) Except
      as
      otherwise expressly provided in the next succeeding sentence of this Section
      2.1(b), all payments to be made by the Subordination Agent hereunder shall
      be
      made only from amounts received by it that constitute Scheduled Payments,
      Special Payments or payments under Section 9.1 of the Participation Agreements
      or payments under Section 6 of the Note Purchase Agreement, and only to the
      extent that the Subordination Agent shall have received sufficient income or
      proceeds therefrom to enable it to make such payments in accordance with the
      terms hereof. The Trustee and the Subordination Agent hereby agree and, as
      provided in the Trust Agreement, each Certificateholder, by its acceptance
      of a
      Certificate, and the Liquidity Provider, by entering into the Liquidity Facility
      to which it is a party, have agreed to look solely to such amounts to the extent
      available for distribution to it as provided in this Agreement and to the
      relevant Deposits and that none of the Owner Trustees, Loan Trustees, Owner
      Participants nor the Trustee or the Subordination Agent is personally liable
      to
      any of them for any amounts payable or any liability under this Agreement,
      the
      Trust Agreement, the Liquidity Facility or such Certificate, except (in the
      case
      of the Subordination Agent) as expressly provided herein or (in the case of
      the
      Trustee) as expressly provided in the Trust Agreement or (in the case of the
      Owner Trustees and the Loan Trustees) as expressly provided in any Operative
      Agreement.

     

    SECTION
      2.2 Trust
      Accounts.
      (a)
      Upon the execution of this Agreement, the Subordination Agent shall establish
      and maintain in its name (i) the Collection Account as an Eligible Deposit
      Account, bearing a designation clearly indicating that the funds deposited
      therein are held in trust for the benefit of the Trustee, the Certificateholders
      and the Liquidity Provider, (ii) as a sub-account in the Collection Account,
      the
      Special Payments Account as an Eligible Deposit Account, bearing a designation
      clearly indicating that the funds deposited therein are held in trust for the
      benefit of the Trustee, the Certificateholders and the Liquidity Provider and
      (iii) the Reserve Account as an Eligible Deposit Account, bearing a designation
      clearly indicating that the funds deposited therein are held in trust for the
      benefit of the Trustee, the Liquidity Provider and the Certificateholders.
      The
      Subordination Agent shall establish and maintain the Cash Collateral Account
      and
      shall operate such Cash Collateral Account in accordance with
      Section 3.6(f) hereof. Upon such establishment and maintenance, the Cash
      Collateral Account shall, together with the Collection Account, constitute
      the
      "Trust
      Accounts"
      hereunder.

     

    (b) Funds
      on
      deposit in the Trust Accounts shall be invested and reinvested by the
      Subordination Agent in Eligible Investments selected by the Subordination Agent
      if such investments are reasonably available and have maturities no later than
      the earlier of (i) 30 days following the date of such investment and (ii) the
      Business Day immediately preceding the Regular Distribution Date or the date
      of
      the related distribution pursuant to Section 2.4 hereof, as the case may be,
      next following the date of such investment; provided,
      however,
      that
      following the making of a Downgrade Drawing, a Special Termination Drawing
      or an
      Early Termination Drawing under the Liquidity Facility, the Subordination Agent
      shall invest and reinvest such amounts in Eligible Investments at the direction
      of Continental; provided further,
      however,
      that
      upon the occurrence and during the continuation of a Triggering Event, the
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    shall
      invest and reinvest such amounts in accordance with the written instructions
      of
      the Controlling Party. Unless otherwise expressly provided in this Agreement
      (including, without limitation, with respect to Investment Earnings on amounts
      on deposit in the Cash Collateral Account, Section 3.6(f) hereof), any
      Investment Earnings shall be deposited in the Collection Account when received
      by the Subordination Agent and shall be applied by the Subordination Agent
      in
      the same manner as the other amounts on deposit in the Collection Account are
      to
      be applied and any losses shall be charged against the principal amount
      invested, in each case net of the Subordination Agent's reasonable fees and
      expenses in making such investments. The Subordination Agent shall not be liable
      for any loss resulting from any investment, reinvestment or liquidation required
      to be made under this Agreement other than by reason of its willful misconduct
      or gross negligence. Eligible Investments and any other investment required
      to
      be made hereunder shall be held to their maturities except that any such
      investment may be sold (without regard to its maturity) by the Subordination
      Agent without instructions whenever such sale is necessary to make a
      distribution required under this Agreement. Uninvested funds held hereunder
      shall not earn or accrue interest.

     

    (c) The
      Subordination Agent shall possess all right, title and interest in all funds
      on
      deposit from time to time in the Trust Accounts and in all proceeds thereof
      (including all income thereon, except as otherwise expressly provided in Section
      3.4(b) with respect to Investment Earnings). The Trust Accounts shall be held
      in
      trust by the Subordination Agent under the sole dominion and control of the
      Subordination Agent for the benefit of the Trustee, the Certificateholders
      and
      the Liquidity Provider, as the case may be. If, at any time, any of the Trust
      Accounts or the Reserve Account ceases to be an Eligible Deposit Account, the
      Subordination Agent shall within 10 Business Days (or such longer period, not
      to
      exceed 30 calendar days, for which a Ratings Confirmation shall have been
      obtained) establish a new Collection Account, Special Payments Account, Reserve
      Account or Cash Collateral Account, as the case may be, as an Eligible Deposit
      Account and shall transfer any cash and/or any investments to such new
      Collection Account, Special Payments Account, Reserve Account or Cash Collateral
      Account, as the case may be. So long as WTC is an Eligible Institution, the
      Trust Accounts and the Reserve Account shall be maintained with it as Eligible
      Deposit Accounts.

     

    (d) The
      Subordination Agent shall possess all right, title and interest in all funds
      on
      deposit from time to time in the Reserve Account. The Reserve Account shall
      be
      used by the Subordination Agent solely to fund the Appraisals when required
      to
      be obtained pursuant to Section 4.1 hereof.

     

    SECTION
      2.3  Deposits
      to the Collection Account and Special Payments Account.
      (a) The
      Subordination Agent shall, upon receipt thereof, deposit in the Collection
      Account all Scheduled Payments received by it.

     

    (b) The
      Subordination Agent shall, on each date when one or more Special Payments are
      made to the Subordination Agent as holder of the Equipment Notes, deposit in
      the
      Special Payments Account the aggregate amount of such Special
      Payments.

    

    
      
        
          
          

        

        
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    SECTION
      2.4 Distributions
      of Special Payments.
      (a)  Notice
      of Special Payment.
      Except
      as provided in Section 2.4(e) below, upon receipt by the Subordination Agent,
      as
      registered holder of the Equipment Notes, of any notice of a Special Payment
      (or, in the absence of any such notice, upon receipt by the Subordination Agent
      of a Special Payment), the Subordination Agent shall promptly give notice
      thereof to the Trustee and the Liquidity Provider. The Subordination Agent
      shall
      promptly calculate the amount of the redemption or purchase of Equipment Notes
      or the amount of any Overdue Scheduled Payment, as the case may be, comprising
      such Special Payment under the applicable Indenture or Indentures and shall
      promptly send to the Trustee a Written Notice of such amount. Such Written
      Notice shall also set the distribution date for such Special Payment (a
      "Special
      Distribution Date"),
      which
      shall be the Business Day which immediately follows the later to occur of (x)
      the 15th day after the date of such Written Notice or (y) the date the
      Subordination Agent has received or expects to receive such Special Payment.
      Amounts on deposit in the Special Payments Account shall be distributed in
      accordance with Sections 2.4(b) and 2.4(c) hereof, as applicable.

     

    (b) Redemptions
      and Purchases of Equipment Notes.
      (i) So
      long as no Triggering Event shall have occurred (whether or not continuing),
      the
      Subordination Agent shall make distributions pursuant to this Section 2.4(b)
      of
      amounts on deposit in the Special Payments Account on account of the redemption,
      purchase (including, without limitation, a purchase resulting from a sale of
      the
      Equipment Notes permitted by Article IV hereof) or prepayment of all of the
      Equipment Notes issued pursuant to an Indenture on the Special Distribution
      Date
      for such Special Payment in the following order of priority:

     

    first,
      such
      amount as shall be required to pay (A) all accrued and unpaid Liquidity Expenses
      then in arrears plus
      (B) the
      product of (x) the aggregate amount of all accrued and unpaid Liquidity Expenses
      not in arrears to such Special Distribution Date multiplied
      by
      (y) a
      fraction, the numerator of which is the aggregate outstanding principal amount
      of Equipment Notes being redeemed, purchased or prepaid on such Special
      Distribution Date and the denominator of which is the aggregate outstanding
      principal amount of all Equipment Notes (the "Section
      2.4(b) Fraction"),
      shall
      be distributed to the Liquidity Provider;

     

    second,
      such
      amount as shall be required to pay (i) (A) all accrued and unpaid interest
      then in arrears on all Liquidity Obligations plus
      (B) the
      product of (x) the aggregate amount of all accrued and unpaid interest on all
      Liquidity Obligations not in arrears to such Special Distribution Date (at
      the
      rate provided in the Liquidity Facility) multiplied by
      (y) the
      Section 2.4(b) Fraction and (ii) if a Special Termination Drawing has been
      made
      under the Liquidity Facility and has not been converted into a Final Drawing,
      the outstanding amount of such Special Termination Drawing, shall be distributed
      to the Liquidity Provider, pro rata on the basis of all amounts described in
      clauses (i) and (ii) above;

     

    third,
      such
      amount as shall be required (A) if the Cash Collateral Account had been
      previously funded as provided in Section 3.6(f), to fund the Cash Collateral
      Account up to its Required Amount shall be deposited in the Cash Collateral
      Account, (B) if the Liquidity Facility shall become a Downgraded Facility or
      an
      Early Terminated Facility at 

    

    
      
        
          
          

        

        
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    a
      time
      when unreimbursed Interest Drawings under the Liquidity Facility have reduced
      the Available Amount thereunder to zero, to fund the Cash Collateral Account
      up
      to an amount equal to the Required Amount shall be deposited in the Cash
      Collateral Account, and (C) if neither subclause (A) nor subclause (B) of this
      clause "third" are applicable, to pay or reimburse the Liquidity Provider an
      amount equal to the amount of any unreimbursed Interest Drawings under the
      Liquidity Facility shall be distributed to the Liquidity Provider;

     

    fourth,
      if any
      amounts are to be distributed pursuant to either subclause (A) or (B) of clause
      "third" above, then the Liquidity Provider shall be paid the excess of (x)
      the
      aggregate outstanding amount of unreimbursed Advances (whether or not then
      due)
      under the Liquidity Facility over (y) the Required Amount;

     

    fifth,
      such
      amount as shall be required to pay in full Expected Distributions to the holders
      of the Certificates on such Special Distribution Date shall be distributed
      to
      the Trustee; and

     

    sixth,
      the
      balance, if any, of such Special Payment shall be transferred to the Collection
      Account for distribution in accordance with Section 3.2 hereof.

     

    For
      the
      purposes of this Section 2.4(b)(i), clause (x) of the definition of "Expected
      Distributions" shall be deemed to read as follows: "(x) accrued, due and unpaid
      interest on the Certificates together with (without duplication) accrued and
      unpaid interest on a portion of the Certificates equal to the outstanding
      principal amount of the Equipment Notes held in the Trust and being redeemed,
      purchased or prepaid (immediately prior to such redemption, purchase or
      prepayment), in each case excluding interest, if any, payable with respect
      to
      the Deposits".

     

    (ii) Upon
      the
      occurrence of a Triggering Event (whether or not continuing), the Subordination
      Agent shall make distributions pursuant to this Section 2.4(b) of amounts on
      deposit in the Special Payments Account on account of the redemption or purchase
      of all of the Equipment Notes issued pursuant to an Indenture on the Special
      Distribution Date for such Special Payment in accordance with Section 3.3
      hereof.

     

    (c) Other
      Special Payments.
      Except
      as provided in clause (e) below, any amounts on deposit in the Special Payments
      Account other than amounts to be distributed pursuant to Section 2.4(b) shall
      be
      distributed on the Special Distribution Date therefor in accordance with Article
      III hereof.

     

    (d) Investment
      of Amounts in Special Payments Account.
      Any
      amounts on deposit in the Special Payments Account prior to the distribution
      thereof pursuant to Section 2.4(b) or (c) shall be invested in accordance with
      Section 2.2(b). Investment Earnings on such investments shall be distributed
      in
      accordance with Section 2.4(b) or (c), as the case may be.

     

    (e) Certain
      Payments.
      Except
      for amounts constituting Liquidity Obligations which shall be distributed as
      provided in Section 2.4(b), 3.2 or 3.3 (as the case may be), the Subordination
      Agent will distribute promptly upon receipt thereof (i) any indemnity payment
      

    

    
      
        
          
          

        

        
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    received
      by it from the Owner Participant, the Owner Trustee or Continental in respect
      of
      the Trustee, the Liquidity Provider, the Paying Agent, the Depositary or the
      Escrow Agent (collectively, the "Payees")
      and
      (ii) any compensation received by it from the Owner Participant, the Owner
      Trustee or Continental under any Operative Agreement in respect of any Payee,
      directly to the Payee entitled thereto.

     

    SECTION
      2.5 Designated
      Representatives.
      (a)
      With the delivery of this Agreement, the Subordination Agent shall furnish
      to
      the Liquidity Provider and the Trustee, and from time to time thereafter may
      furnish to the Liquidity Provider and the Trustee, at the Subordination Agent's
      discretion, or upon the Liquidity Provider's or Trustee's request (which request
      shall not be made more than one time in any 12-month period), a certificate
      (a
      "Subordination
      Agent Incumbency Certificate")
      of a
      Responsible Officer of the Subordination Agent certifying as to the incumbency
      and specimen signatures of the officers of the Subordination Agent and the
      attorney-in-fact and agents of the Subordination Agent (the "Subordination
      Agent Representatives")
      authorized to give Written Notices on behalf of the Subordination Agent
      hereunder. Until each of the Liquidity Provider and the Trustee receive a
      subsequent Subordination Agent Incumbency Certificate, it shall be entitled
      to
      rely on the last Subordination Agent Incumbency Certificate delivered to it
      hereunder.

     

    (b) With
      the
      delivery of this Agreement, the Trustee shall furnish to the Subordination
      Agent, and from time to time thereafter may furnish to the Subordination Agent,
      at the Trustee's discretion, or upon the Subordination Agent's request (which
      request shall not be made more than one time in any 12-month period), a
      certificate (a "Trustee
      Incumbency Certificate")
      of a
      Responsible Officer of the Trustee certifying as to the incumbency and specimen
      signatures of the officers of the Trustee and the attorney-in-fact and agents
      of
      the Trustee (the "Trustee
      Representatives")
      authorized to give Written Notices on behalf of the Trustee hereunder. Until
      the
      Subordination Agent receives a subsequent Trustee Incumbency Certificate, it
      shall be entitled to rely on the last Trustee Incumbency Certificate delivered
      to it hereunder.

     

    (c) With
      the
      delivery of this Agreement, the Liquidity Provider shall furnish to the
      Subordination Agent, and from time to time thereafter may furnish to the
      Subordination Agent, at the Liquidity Provider's discretion, or upon the
      Subordination Agent's request (which request shall not be made more than one
      time in any 12-month period), a certificate (an "LP
      Incumbency Certificate")
      of any
      Responsible Officer of the Liquidity Provider certifying as to the incumbency
      and specimen signatures of any officer, attorney-in-fact, agent or other
      designated representative of the Liquidity Provider (the "LP
      Representatives"
      and,
      together with the Subordination Agent Representatives and the Trustee
      Representatives, the "Designated
      Representatives")
      authorized to give Written Notices on behalf of the Liquidity Provider
      hereunder. Until the Subordination Agent receives a subsequent LP Incumbency
      Certificate, it shall be entitled to rely on the last LP Incumbency Certificate
      delivered to it hereunder.

     

    SECTION
      2.6 Controlling
      Party.
      (a) The
      Trustee and the Liquidity Provider hereby agree that, with respect to any
      Indenture at any given time, the Loan Trustee thereunder will be directed (i)
      in
      taking, or refraining from taking, any action under such Indenture or with
      respect to the Equipment Notes issued thereunder, so long as no Indenture
      Default has occurred 

    

    
      
        
          
          

        

        
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    and
      is
      continuing thereunder, by the holders of at least a majority of the outstanding
      principal amount of such Equipment Notes (provided
      that,
      for so long as the Subordination Agent is the registered holder of the Equipment
      Notes, the Subordination Agent shall act with respect to this clause (i) in
      accordance with the directions of the Trustee (with respect to the Equipment
      Notes issued under such Indenture and held as Trust Property of the Trust)
      constituting, in the aggregate, directions with respect to at least a majority
      of outstanding principal amount of Equipment Notes), and (ii) after the
      occurrence and during the continuance of an Indenture Default thereunder (which
      has not been cured by the applicable Owner Trustee or the applicable Owner
      Participant, if applicable, pursuant to Section 4.03 of such Indenture), in
      taking, or refraining from taking, any action under such Indenture or with
      respect to such Equipment Notes, including exercising remedies thereunder
      (including Accelerating the Equipment Notes issued thereunder or foreclosing
      the
      Lien on the Aircraft securing such Equipment Notes), by the Controlling
      Party.

     

    (b) The
      Person who shall be the "Controlling
      Party"
      with
      respect to any Indenture upon the occurrence of an Indenture Default thereunder
      shall be the Trustee. For purposes of giving effect to the rights of the
      Controlling Party, the Trustee shall irrevocably agree, and the
      Certificateholders will be deemed to agree by virtue of their purchase of
      Certificates, that the Subordination Agent, as record holder of the Equipment
      Notes, shall exercise its voting rights in respect of the Equipment Notes as
      directed by the Controlling Party and any vote so exercised shall be binding
      upon the Trustee and all Certificateholders.

     

    The
      Subordination Agent shall give Written Notice to all of the other parties to
      this Agreement promptly upon a change in the identity of the Controlling Party.
      Each of the parties hereto agrees that it shall not exercise any of the rights
      of the Controlling Party at such time as it is not the Controlling Party
      hereunder; provided,
      however,
      that
      nothing herein contained shall prevent or prohibit any Non-Controlling Party
      from exercising such rights as shall be specifically granted to such
      Non-Controlling Party hereunder and under the other Operative
      Agreements.

     

    (c) Notwithstanding
      the foregoing, at any time after 18 months from the earlier to occur of (i)
      the
      date on which the entire Available Amount under the Liquidity Facility shall
      have been drawn (for any reason other than a Downgrade Drawing, an Early
      Termination Drawing or a Special Termination Drawing unless such Downgrade
      Drawing, Early Termination Drawing or Special Termination Drawing shall have
      been converted to a Final Drawing under such Liquidity Facility) and remain
      unreimbursed, (ii) the date on which the entire amount of any Downgrade Drawing,
      Early Termination Drawing or Special Termination Drawing shall have become
      and
      remain "Applied Downgrade Advances", "Applied Early Termination Advances" or
      "Applied Special Termination Advances", as the case may be, under and as defined
      in the Liquidity Facility and (iii) the date on which all Equipment Notes shall
      have been Accelerated (provided
      that,
      with respect to the period prior to the Delivery Period Expiry Date, such
      Equipment Notes have an aggregate outstanding principal balance of in excess
      of
      $195 million), the Liquidity Provider shall have the right to elect, by Written
      Notice to the Subordination Agent and the Trustee, to become the Controlling
      Party hereunder with respect to any Indenture at any time from and including
      the
      last day of such 18-month period. 

    

    
      
        
          
          

        

        
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    (d) The
      Controlling Party shall not be entitled to require or obligate any
      Non-Controlling Party to provide funds necessary to exercise any right or remedy
      hereunder.

     

    ARTICLE
      III

     

    RECEIPT,
      DISTRIBUTION AND APPLICATION OF

     

    AMOUNTS
      RECEIVED

     

    SECTION
      3.1 Written
      Notice of Distribution.
      (a) No
      later than 3:00 P.M. (New York City time) on the Business Day immediately
      preceding each Regular Distribution Date (or Special Distribution Date for
      purposes of Section 2.4(b) hereof, as the case may be), each of the following
      Persons shall deliver to the Subordination Agent a Written Notice setting forth
      the following information as at the close of business on such Business
      Day:

     

    (i) With
      respect to the Certificates, the Trustee shall separately set forth the amounts
      to be paid in accordance with clause "fifth"
      of
      Section 3.2 or 2.4(b)(i), as the case may be, hereof;

     

    (ii) With
      respect to the Liquidity Facility, the Liquidity Provider shall separately
      set
      forth the amounts to be paid in accordance with clauses "first",
      "second",
      "third"
      and
      "fourth"
      of
      Section 3.2 or 2.4(b)(i), as the case may be, hereof; and

     

    (iii) The
      Trustee shall set forth the amounts to be paid in accordance with clause
      "sixth"
      of
      Section 3.2 hereof.

     

    The
      notices required under this Section 3.1(a) may be in the form of a schedule
      or
      similar document provided to the Subordination Agent by the parties referenced
      therein or by any one of them, which schedule or similar document may state
      that, unless there has been a prepayment of the Certificates, such schedule
      or
      similar document is to remain in effect until any substitute notice or amendment
      shall be given to the Subordination Agent by the party providing such
      notice.

     

    (b) Following
      the occurrence of a Triggering Event, the Subordination Agent shall request
      the
      following information from the following Persons, and each of the following
      Persons shall, upon the request of the Subordination Agent, deliver a Written
      Notice to the Subordination Agent setting forth for such Person the following
      information:

     

    (i) 
      With
      respect to the Certificates, the Trustee shall separately set forth the amounts
      to be paid in accordance with clause "first"
      (to
      reimburse payments made by such Trustee or the Certificateholders, as the case
      may be, pursuant to subclause (ii) or (iii) of clause "first"
      of
      Section 3.3 hereof), clause "sixth"
      (to
      reimburse payments made by the Certificateholders pursuant to subclause (iii)
      of
      clause "sixth"
      of
      Section 3.3 hereof) and clause "seventh"
      of
      Section 3.3 hereof;

     

    (ii) 
      With
      respect to the Liquidity Facility, the Liquidity Provider shall separately
      set
      forth the amounts to be paid to it in accordance with subclause (iii) of

    
      
        
          
          

        

        
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    clause
      "first"
      of
      Section 3.3 hereof and clauses "second",
      "third",
      "fourth"
      and
      "fifth"
      of
      Section 3.3 hereof; and 

     

    (iii) The
      Trustee shall set forth the amounts to be paid in accordance with clause
      "sixth"
      of
      Section 3.3 hereof.

     

    (c) At
      such
      time as the Trustee or the Liquidity Provider shall have received all amounts
      owing to it (and, in the case of the Trustee, the Certificateholders for which
      it is acting) pursuant to Section 2.4, 3.2 or 3.3 hereof, as applicable, and,
      in
      the case of the Liquidity Provider, its commitment under the Liquidity Facility
      shall have terminated or expired, such Person shall, by a Written Notice, so
      inform the Subordination Agent and each other party to this
      Agreement.

     

    (d) As
      provided in Section 6.5 hereof, the Subordination Agent shall be fully protected
      in relying on any of the information set forth in a Written Notice provided
      by
      the Trustee or the Liquidity Provider pursuant to paragraphs (a) through (c)
      above and shall have no independent obligation to verify, calculate or
      recalculate any amount set forth in any Written Notice delivered in accordance
      with such paragraphs.

     

    (e) Any
      Written Notice delivered by the Trustee or the Liquidity Provider, as
      applicable, pursuant to Section 3.1(a), 3.1(b) or 3.1(c) hereof, if made prior
      to 10:00 A.M. (New York City time) on any Business Day shall be effective on
      the
      date delivered (or if delivered later on a Business Day or if delivered on
      a day
      which is not a Business Day shall be effective as of the next Business Day).
      Subject to the terms of this Agreement, the Subordination Agent shall as
      promptly as practicable comply with any such instructions; provided,
      however,
      that
      any transfer of funds pursuant to any instruction received after 10:00 A.M.
      (New
      York City time) on any Business Day may be made on the next succeeding Business
      Day.

     

    (f) In
      the
      event the Subordination Agent shall not receive from any Person any information
      set forth in paragraph (a) or (b) above which is required to enable the
      Subordination Agent to make a distribution to such Person pursuant to Section
      2.4(b)(i), 3.2 or 3.3 hereof, the Subordination Agent shall request such
      information and, failing to receive any such information, the Subordination
      Agent shall not make such distribution(s) to such Person. In such event, the
      Subordination Agent shall make distributions pursuant to clauses "first"
      through
      "sixth"
      of
      Section 2.4(b)(i), clauses "first"
      through
      "seventh"
      of
      Section 3.2 and clauses "first"
      through
      "eighth"
      of
      Section 3.3 to the extent it shall have sufficient information to enable it
      to
      make such distributions, and shall continue to hold any funds remaining, after
      making such distributions, until the Subordination Agent shall receive all
      necessary information to enable it to distribute any funds so
      withheld.

     

    (g) On
      such
      dates (but not more frequently than monthly) as the Liquidity Provider or the
      Trustee shall request, but in any event automatically at the end of each
      calendar quarter, the Subordination Agent shall send to such party a written
      statement reflecting all amounts on deposit with the Subordination Agent
      pursuant to Section 3.1(f) hereof.

    

    
      
        
          
          

        

        
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    SECTION
      3.2 Distribution
      of Amounts on Deposit in the Collection Account.
      Except
      as otherwise provided in Sections 2.4, 3.1(f), 3.3, 3.4 and 3.6(b), amounts
      on
      deposit in the Collection Account (or, in the case of any amount described
      in
      Section 2.4(c), on deposit in the Special Payments Account) shall be promptly
      distributed on each Regular Distribution Date (or, in the case of any amount
      described in Section 2.4(c), on the Special Distribution Date thereof) in the
      following order of priority and in accordance with the information provided
      to
      the Subordination Agent pursuant to Section 3.1(a) hereof:

     

    first,
      such
      amount as shall be required to pay all accrued and unpaid Liquidity Expenses
      owed to the Liquidity Provider shall be distributed to the Liquidity
      Provider;

     

    second,
      (i) such amount as shall be required to pay in full the aggregate amount of
      accrued and unpaid interest on all Liquidity Obligations (at the rate, or in
      the
      amount, provided in the Liquidity Facility) and (ii) if a Special Termination
      Drawing has been made under the Liquidity Facility and has not been converted
      into a Final Drawing, the outstanding amount of such Special Termination
      Drawing, shall be distributed to the Liquidity Provider, pro rata on the basis
      of all amounts described in clauses (i) and (ii) above;

     

    third,
      such
      amount as shall be required (A) if the Cash Collateral Account had been
      previously funded as provided in Section 3.6(f), to fund the Cash Collateral
      Account up to its Required Amount shall be deposited in the Cash Collateral
      Account, (B) if the Liquidity Facility shall become a Downgraded Facility or
      an
      Early Terminated Facility at a time when unreimbursed Interest Drawings under
      the Liquidity Facility have reduced the Available Amount thereunder to zero,
      to
      fund the Cash Collateral Account up to an amount equal to the Required Amount
      shall be deposited in the Cash Collateral Account, and (C) if neither subclause
      (A) nor subclause (B) of this clause "third" is applicable, to pay or reimburse
      the Liquidity Provider an amount equal to the amount of all Liquidity
      Obligations then due under the Liquidity Facility (other than amounts payable
      pursuant to clause "first" or "second" of this Section 3.2) shall be distributed
      to the Liquidity Provider;

     

    fourth,
      if any
      amounts are to be distributed pursuant to either subclause (A) or (B) of clause
      "third" above, then the Liquidity Provider shall be paid the excess of (x)
      the
      aggregate outstanding amount of unreimbursed Advances (whether or not then
      due)
      under the Liquidity Facility over (y) the Required Amount;

     

    fifth,
      such
      amount as shall be required to pay in full Expected Distributions to the holders
      of the Certificates on such Distribution Date shall be distributed to the
      Trustee;

     

    sixth,
      such
      amount as shall be required to pay in full the aggregate unpaid amount of fees
      and expenses payable as of such Distribution Date to the Subordination Agent
      and
      the Trustee pursuant to the terms of this Agreement and the Trust Agreement,
      as
      the case may be, shall be distributed to the Subordination Agent and the
      Trustee; and

    

    
      
        
          
          

        

        
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    seventh,
      the
      balance, if any, of any such amount remaining thereafter shall be held in the
      Collection Account for later distribution in accordance with this
      Article III.

     

    SECTION
      3.3 Distribution
      of Amounts on Deposit Following a Triggering Event.
      Except
      as otherwise provided in Sections 3.1(f) and 3.6(b) hereof, upon the occurrence
      of a Triggering Event and at all times thereafter, all funds in the Collection
      Account or the Special Payments Account shall be promptly distributed by the
      Subordination Agent in the following order of priority:

     

    first,
      such
      amount as shall be required (A) to reimburse (i) the Subordination Agent for
      any
      out-of-pocket costs and expenses actually incurred by it (to the extent not
      previously reimbursed) in the protection of, or the realization of the value
      of,
      the Equipment Notes or Trust Indenture Estate, shall be applied by the
      Subordination Agent in reimbursement of such costs and expenses, (ii) the
      Trustee for any amounts of the nature described in clause (i) above actually
      incurred by it under the Trust Agreement (to the extent not previously
      reimbursed), shall be distributed to the Trustee, and (iii) any Liquidity
      Provider or any Certificateholder for payments, if any, made by it to the
      Subordination Agent or the Trustee in respect of amounts described in clause
      (i)
      above, shall be distributed to such Liquidity Provider or to the Trustee for
      the
      account of such Certificateholder and (B) if the Subordination Agent shall
      have
      requested the initial Appraisals and only so long as a Triggering Event shall
      be
      continuing, to fund or replenish the Reserve Account up to the Reserve Amount,
      but in no event (other than the initial funding of the Reserve Account) more
      than $25,000 in the aggregate during any calendar year, shall be distributed
      to
      the Subordination Agent for deposit in the Reserve Account, in each such case,
      pro rata on the basis of all amounts described in clauses (A)(i), (A)(ii),
      (A)(iii) and (B) above;

     

    second,
      such
      amount remaining as shall be required to pay all accrued and unpaid Liquidity
      Expenses shall be distributed to the Liquidity Provider;

     

    third,
      (i)
      such amount remaining as shall be required to pay accrued and unpaid interest
      on
      the Liquidity Obligations as provided in the Liquidity Facility and (ii) if
      a
      Special Termination Drawing has been made under the Liquidity Facility and
      has
      not been converted into a Final Drawing, the outstanding amount of such Special
      Termination Drawing, shall be distributed to the Liquidity Provider, pro rata
      on
      the basis of all amounts described in clauses (i) and (ii) above;

     

    fourth,
      such
      amount remaining as shall be required (A) if the Cash Collateral Account had
      been previously funded as provided in Section 3.6(f), unless (i) a Performing
      Note Deficiency exists and a Liquidity Event of Default shall have occurred
      and
      be continuing or (ii) a Final Drawing shall have occurred, to fund the Cash
      Collateral Account up to its Required Amount (less the amount of any repayments
      of Interest Drawings under the Liquidity Facility while subclause (A)(i) above
      is applicable) shall be deposited in the Cash Collateral Account, (B) if any
      Liquidity Facility shall become a Downgraded Facility or an Early Terminated
      Facility at a time when unreimbursed Interest
      Drawings under the Liquidity Facility have reduced the Available Amount

    

    
      
        
          
          

        

        
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    thereunder
      to zero, unless (i) a Performing Note Deficiency exists and a Liquidity Event
      of
      Default shall have occurred and be continuing or (ii) a Final Drawing shall
      have
      occurred, to fund the Cash Collateral Account up to an amount equal to the
      Required Amount (less the amount of any repayments of Interest Drawings under
      the Liquidity Facility while subclause (B)(i) above is applicable) shall be
      deposited in the Cash Collateral Account, and (C) if neither subclause (A)
      nor
      subclause (B) of this clause "fourth" are applicable, to pay in full the
      outstanding amount of all Liquidity Obligations then due under the Liquidity
      Facility (other than amounts payable pursuant to clause "second"
      or
      "third"
      of this
      Section 3.3) shall be distributed to the Liquidity Provider;

     

    fifth,
      if any
      amounts are to be distributed pursuant to either subclause (A) or (B) of clause
      "fourth"
      above,
      then the Liquidity Provider shall be paid the excess of (x) the aggregate
      outstanding amount of unreimbursed Advances (whether or not then due) under
      the
      Liquidity Facility over (y) the Required Amount (less the amount of any
      repayments of Interest Drawings under the Liquidity Facility while subclause
      (A)(i) or (B)(i), as the case may be, of clause "fourth"
      above
      is applicable);

     

    sixth,
      such
      amount as shall be required to reimburse or pay (i) the Subordination Agent
      for
      any Tax (other than Taxes imposed on compensation paid hereunder), expense,
      fee,
      charge or other loss incurred by or any other amount payable to the
      Subordination Agent in connection with the transactions contemplated hereby
      (to
      the extent not previously reimbursed), shall be applied by the Subordination
      Agent in reimbursement of such amount, (ii) the Trustee for any Tax (other
      than
      Taxes imposed on compensation paid under the Trust Agreement), expense, fee,
      charge, loss or any other amount payable to the Trustee under the Trust
      Agreement (to the extent not previously reimbursed), shall be distributed to
      the
      Trustee, and (iii) each Certificateholder for payments, if any, made by it
      pursuant to Section 5.2 hereof in respect of amounts described in clause (i)
      above, shall be distributed to the Trustee for the account of such
      Certificateholder, in each such case, pro rata on the basis of all amounts
      described in clauses (i) through (iii) above; 

     

    seventh,
      such
      amount remaining as shall be required to pay in full Triggering Event
      Distributions on the Certificates shall be distributed to the Trustee;
      and

     

    eighth,
      the
      balance, if any, of any such amount remaining thereafter shall be held in the
      Collection Account for later distribution in accordance with this Article
      III.

     

    SECTION
      3.4 Other
      Payments.
      (a) Any
      payments received by the Subordination Agent for which no provision as to the
      application thereof is made in this Agreement shall be distributed by the
      Subordination Agent (i) in the order of priority specified in Section 3.3 hereof
      and (ii) to the extent received or realized at any time after the Triggering
      Event Distributions have been made in full, in the manner provided in clause
      "first"
      of
      Section 3.3 hereof.

     

    (b) Notwithstanding
      the priority of payments specified in Sections 2.4(b)(i), 3.2 and 3.3, in the
      event any Investment Earnings on amounts on deposit in the Cash Collateral
      Account resulting from an Unapplied Provider Advance are deposited in the
      Collection Account 

    

    
      
        
          
          

        

        
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    or
      the
      Special Payments Account, such Investment Earnings shall be used to pay interest
      payable in respect of such Unapplied Provider Advance to the extent of such
      Investment Earnings.

     

    (c) Except
      as
      otherwise provided in Section 3.3 hereof, if the Subordination Agent receives
      any Scheduled Payment after the Scheduled Payment Date relating thereto, but
      prior to such payment becoming an Overdue Scheduled Payment, then the
      Subordination Agent shall deposit such Scheduled Payment in the Collection
      Account and promptly distribute such Scheduled Payment in accordance with the
      priority of distributions set forth in Section 3.2 hereof; provided
      that,
      for the purposes of this Section 3.4(c) only, each reference in clause
      "sixth"
      of
      Section 3.2 to "Distribution Date" shall be deemed to mean the actual date
      of
      payment of such Scheduled Payment and each reference in clause "fifth"
      of
      Section 3.2 to "Distribution Date" shall be deemed to refer to such Scheduled
      Payment Date.

     

    (d) If
      the
      scheduled date for the distribution of any Expected Distributions under this
      Agreement is extended due to the proviso in the definition of "Regular
      Distribution Dates", no additional interest will accrue in respect of such
      Expected Distributions during such extension.

     

    SECTION
      3.5 Payments
      to the Trustee and the Liquidity Provider.
      Any
      amounts distributed hereunder to the Liquidity Provider shall be paid to the
      Liquidity Provider by wire transfer of funds to the address the Liquidity
      Provider shall provide to the Subordination Agent. The Subordination Agent
      shall
      provide a Written Notice of any such transfer to the Liquidity Provider at
      the
      time of such transfer. Any amounts distributed hereunder by the Subordination
      Agent to the Trustee, if the Trustee shall not be the same institution as the
      Subordination Agent, shall be paid to the Trustee by wire transfer of funds
      at
      the address the Trustee shall provide to the Subordination Agent.

     

    SECTION
      3.6 Liquidity
      Facility.
      (a)
Interest
      Drawings.
      If on
      any Distribution Date, after giving effect to the subordination provisions
      of
      this Agreement, the Subordination Agent shall not have sufficient funds for
      the
      payment of any amounts due and owing in respect of accrued interest on the
      Certificates (at the Stated Interest Rate), then, prior to 1:00 p.m. (New York
      City time) on such Distribution Date, the Subordination Agent shall request
      a
      drawing (each such drawing, an "Interest
      Drawing")
      under
      the Liquidity Facility in an amount equal to the lesser of (i) an amount
      sufficient to pay the amount of such accrued interest (at the Stated Interest
      Rate) and (ii) the Available Amount under the Liquidity Facility, and shall
      pay
      such amount to the Trustee in payment of such accrued interest.

     

    (b) Application
      of Interest Drawings.
      Notwithstanding anything to the contrary contained in this Agreement, all
      payments received by the Subordination Agent in respect of an Interest Drawing
      under the Liquidity Facility and all amounts withdrawn by the Subordination
      Agent from the Cash Collateral Account, and payable in each case to the
      Certificateholders or the Trustee, shall be promptly distributed to the
      Trustee.

    

    (c) Downgrade
      Drawings.
      (i)
      With respect to the Liquidity Facility, a Downgrade Drawing shall be requested
      by the Subordination Agent thereunder as provided in Section 3.6(c)(iii), if
      at
      any time, a Downgrade Event shall have occurred with respect to such

    

    
      
        
          
          

        

        
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    Liquidity
      Facility (a "Downgraded
      Facility"),
      unless an event described in Section 3.6(c)(ii) occurs with respect to the
      Liquidity Facility.

    

    (ii) If
      at any
      time the Liquidity Facility becomes a Downgraded Facility, the Subordination
      Agent shall request a Downgrade Drawing thereunder in accordance with Section
      3.6(c)(iii), unless the Liquidity Provider or Continental arranges for a
      Replacement Liquidity Provider to issue and deliver a Replacement Liquidity
      Facility to the Subordination Agent within 10 days after receiving notice of
      a
      Downgrade Event (but not later than the expiration date of such Downgraded
      Facility).

     

    (iii) Upon
      the
      occurrence of any Downgrade Event with respect to the Liquidity Facility, unless
      any event described in Section 3.6(c)(ii) occurs with respect thereto, the
      Subordination Agent shall, on the 10th day referred to in Section 3.6(c)(ii)
      (or
      if such 10th day is not a Business Day, on the next succeeding Business Day)
      (or, if earlier, the expiration date of the Downgraded Facility), request a
      drawing in accordance with and to the extent permitted by the Downgraded
      Facility (such drawing, a "Downgrade
      Drawing")
      of the
      Available Amount thereunder. Amounts drawn pursuant to a Downgrade Drawing
      shall
      be maintained and invested as provided in Section 3.6(f) hereof. The Liquidity
      Provider may also arrange for a Replacement Liquidity Provider to issue and
      deliver a Replacement Liquidity Facility at any time after such Downgrade
      Drawing so long as such Downgrade Drawing has not been reimbursed in full to
      the
      Liquidity Provider.

     

    (d) Early
      Termination Drawings.
      LBBW
      shall
      have the right in its sole discretion to elect to terminate the Liquidity
      Facility at any time during the period from the 40th
      day to
      and including the 25th
      day
      prior to each anniversary of the Closing Date (the "Early
      Termination Notice Period")
      upon
      not less than 25 days' written notice (the "Early
      Termination Notice")
      to the
      Subordination Agent. If
      LBBW
      delivers
      an Early Termination Notice to the Subordination Agent during the Early
      Termination Notice Period (and,
      if
      LBBW shall not have been replaced in accordance with Section 3.6(e) on or before
      the last day of the Early Termination Notice Period), the Subordination Agent
      shall,
      as
      soon
      as possible after the last
      day
      of the
      Early Termination Notice Period but prior to the Early
      Termination Date,
      in
      accordance with and to the extent permitted by the terms of the terminating
      Liquidity Facility (an "Early
      Terminated Facility"),
      request a drawing under the Early Terminated Facility of all available and
      undrawn amounts thereunder (such drawing, an "Early
      Termination Drawing").
      Amounts drawn pursuant to an Early Termination Drawing shall be maintained
      and
      invested in accordance with Section 3.6(f). 

     

    (e) Issuance
      of Replacement Liquidity Facility.
      (i) At
      any time, Continental may, at its option, with cause or without cause, arrange
      for a Replacement Liquidity Facility to replace the Liquidity Facility
      (including any Replacement Liquidity Facility provided pursuant to Section
      3.6(e)(ii) hereof). If such Replacement Liquidity Facility is provided at any
      time after a Downgrade Drawing, Early Termination Drawing or Special Termination
      Drawing has been made, all funds on deposit in the Cash Collateral Account
      will
      be returned to the Liquidity Provider being replaced. 

    

    
      
        
          
          

        

        
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    (ii) If
      LBBW
      shall elect to terminate
      its Liquidity Facility early in accordance with Section 3.6(d), then LBBW
      may, at its option, arrange for a Replacement Liquidity Facility to replace
      such
      Liquidity Facility on or prior to the last day of the Early Termination
      Period.

     

    (iii) No
      Replacement Liquidity Facility arranged by Continental or the Liquidity Provider
      in accordance with clause (i) or (ii) above or pursuant to Section 3.6(c),
      respectively, shall become effective and no such Replacement Liquidity Facility
      shall be deemed a "Liquidity Facility" under the Operative Agreements, unless
      and until (A) each of the conditions referred to in sub clauses (iv)(x) and
      (z)
      below shall have been satisfied, (B) if such Replacement Liquidity Facility
      shall materially adversely affect the rights, remedies, interests or obligations
      of the Certificateholders under any of the Operative Agreements, the applicable
      Trustee shall have consented, in writing, to the execution and issuance of
      such
      Replacement Liquidity Facility and (C) in the case of a Replacement Liquidity
      Facility arranged by the Liquidity Provider under Section 3.6(e)(ii) or pursuant
      to Section 3.6(c), such Replacement Liquidity Facility is acceptable to
      Continental.

     

    (iv) In
      connection with the issuance of each Replacement Liquidity Facility, the
      Subordination Agent shall (x) prior to the issuance of such Replacement
      Liquidity Facility, obtain written confirmation from each Rating Agency that
      such Replacement Liquidity Facility will not cause a reduction of any rating
      then in effect for the Certificates by such Rating Agency (without regard to
      any
      downgrading of any rating of any Liquidity Provider being replaced pursuant
      to
      Section 3.6(c) hereof), (y) pay all Liquidity Obligations then owing to the
      replaced Liquidity Provider (which payment shall be made first from available
      funds in the Cash Collateral Account as described in clause (iii) of Section
      3.6(f) hereof, and thereafter from any other available source, including,
      without limitation, a drawing under the Replacement Liquidity Facility) and
      (z)
      cause the issuer of the Replacement Liquidity Facility to deliver the
      Replacement Liquidity Facility to the Subordination Agent, together with a
      legal
      opinion opining that such Replacement Liquidity Facility is an enforceable
      obligation of such Replacement Liquidity Provider.

     

    (v) Upon
      satisfaction of the conditions set forth in clauses (iii) and (iv) of this
      Section 3.6(e) with respect to a Replacement Liquidity Facility, (w) the
      replaced Liquidity Facility shall terminate, (x) the Subordination Agent shall,
      if and to the extent so requested by Continental or the Liquidity Provider
      being
      replaced, execute and deliver any certificate or other instrument required
      in
      order to terminate the replaced Liquidity Facility, shall surrender the replaced
      Liquidity Facility to the Liquidity Provider being replaced and shall execute
      and deliver the Replacement Liquidity Facility and any associated Fee Letter,
      (y) each of the parties hereto shall enter into any amendments to this Agreement
      necessary to give effect to (1) the replacement of the Liquidity Provider with
      the Replacement Liquidity Provider and (2) the replacement of the Liquidity
      Facility with the applicable Replacement Liquidity Facility and (z) such
      Replacement Liquidity Provider shall be deemed to be the Liquidity Provider
      with
      the rights and obligations of the Liquidity Provider hereunder and under the
      other Operative Agreements and such Replacement Liquidity Facility shall be
      deemed to be the Liquidity Facility hereunder and under the other Operative
      Agreements.

    

    
      
        
          
          

        

        
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    (f) Cash
      Collateral Account; Withdrawals; Investments.
      In the
      event the Subordination Agent shall draw all available amounts under the
      Liquidity Facility pursuant to Section 3.6(c), 3.6(d), 3.6(i) or 3.6(k) hereof,
      or in the event amounts are to be deposited in the Cash Collateral Account
      pursuant to subclause (A) or (B) of clause "third"
      of
      Section 2.4(b)(i), subclause (A) or (B) of clause "third"
      of
      Section 3.2 or subclause (A) or (B) of clause "fourth"
      of
      Section 3.3, amounts so drawn or to be deposited, as the case may be, shall
      be
      deposited by the Subordination Agent in the Cash Collateral Account. All amounts
      on deposit in the Cash Collateral Account shall be invested and reinvested
      in
      Eligible Investments in accordance with Section 2.2(b) hereof. On each Interest
      Payment Date (or, in the case of any Special Distribution Date with respect
      to a
      distribution pursuant to Section 2.4(b) hereof occurring prior to the occurrence
      of a Triggering Event, on such Special Distribution Date), Investment Earnings
      on amounts on deposit in the Cash Collateral Account (or, in the case of any
      Special Distribution Date with respect to a distribution pursuant to Section
      2.4(b) hereof occurring prior to the occurrence of a Triggering Event, a
      fraction of such Investment Earnings equal to the Section 2.4(b) Fraction)
      shall
      be deposited in the Collection Account (or, in the case of any Special
      Distribution Date with respect to a distribution pursuant to Section 2.4(b)
      hereof occurring prior to the occurrence of a Triggering Event, the Special
      Payments Account) and applied on such Interest Payment Date (or Special
      Distribution Date, as the case may be) in accordance with Section 2.4, 3.2,
      3.3
      or 3.4 (as applicable). The Subordination Agent shall deliver a written
      statement to Continental and the Liquidity Provider one day prior to each
      Interest Payment Date and Special Distribution Date setting forth the aggregate
      amount of Investment Earnings held in the Cash Collateral Account as of such
      date. In addition, from and after the date funds are so deposited, the
      Subordination Agent shall make withdrawals from such account as
      follows:

     

    (i) on
      each
      Distribution Date, the Subordination Agent shall, to the extent it shall not
      have received funds to pay accrued and unpaid interest due and owing on the
      Certificates (at the Stated Interest Rate) from any other source, withdraw
      from
      the Cash Collateral Account, and pay to the Trustee, an amount equal to the
      lesser of (x) an amount necessary to pay accrued and unpaid interest (at the
      Stated Interest Rate) on the Certificates and (y) the amount on deposit in
      the
      Cash Collateral Account;

     

    (ii) on
      each
      date on which the Pool Balance of the Trust shall have been reduced by payments
      made to the Certificateholders pursuant to Section 2.4, 3.2 or 3.3 hereof or
      pursuant to Section 2.03 of the Escrow and Paying Agent Agreement or deemed
      reduced pursuant to the proviso in the definition of "Required Amount", the
      Subordination Agent shall withdraw from the Cash Collateral Account such amount
      as is necessary so that, after giving effect to the reduction or deemed
      reduction of the Pool Balance on such date (and any reduction in the amounts
      on
      deposit in the Cash Collateral Account resulting from a prior withdrawal of
      amounts on deposit in the Cash Collateral Account on such date) and any transfer
      of Investment Earnings from the Cash Collateral Account to the Collection
      Account or the Special Payments Account on such date, an amount equal to the
      sum
      of the Required Amount (with respect to the Liquidity Facility) plus Investment
      Earnings on deposit in the Cash Collateral Account (after giving effect to
      any
      such transfer of Investment Earnings) will be on deposit in the Cash Collateral
      Account and shall first,
      pay
      such withdrawn amount to the Liquidity Provider until the 

    

    
      
        
          
          

        

        
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    Liquidity
      Obligations owing to the Liquidity Provider shall have been paid in full, and
      second,
      deposit
      any remaining withdrawn amount in the Collection Account;

     

    (iii) if
      a
      Replacement Liquidity Facility for the Certificates shall be delivered to the
      Subordination Agent following the date on which funds have been deposited into
      the Cash Collateral Account, the Subordination Agent shall withdraw all amounts
      on deposit in the Cash Collateral Account and shall pay such amounts to the
      replaced Liquidity Provider until all Liquidity Obligations owed to such Person
      shall have been paid in full, and shall deposit any remaining amount in the
      Collection Account; and

     

    (iv) following
      the payment of Triggering Event Distributions in full, on the date on which
      the
      Subordination Agent shall have been notified by the Liquidity Provider that
      the
      Liquidity Obligations owed to the Liquidity Provider have been paid in full,
      the
      Subordination Agent shall withdraw all amounts on deposit in the Cash Collateral
      Account and shall deposit such amount in the Collection Account.

     

    (g) Reinstatement.
      With
      respect to any Interest Drawing under the Liquidity Facility, upon the
      reimbursement of the Liquidity Provider in full or in part of the amount of
      such
      Interest Drawing, together with any accrued interest thereon, the Available
      Amount of the Liquidity Facility shall be reinstated by an amount equal to
      the
      amount of such Interest Drawing so reimbursed to the Liquidity Provider but
      not
      to exceed the Stated Amount for the Liquidity Facility; provided,
      however,
      that
      the Liquidity Facility shall not be so reinstated in part or in full at any
      time
      if (x) both a Performing Note Deficiency exists and a Liquidity Event of Default
      shall have occurred and be continuing or (y) a Final Drawing, Downgrade Drawing,
      Early Termination Drawing or Special Termination Drawing shall have occurred
      or
      a Drawing has been converted into a Final Drawing. In the event that (i) funds
      are withdrawn from the Cash Collateral Account pursuant to clause (i), (ii)
      or
      (iii) of Section 3.6(f) hereof or (ii) the Liquidity Facility shall become
      a Downgraded Facility or an Early Terminated Facility at a time when
      unreimbursed Interest Drawings under the Liquidity Facility have reduced the
      Available Amount thereunder to zero, then funds received by the Subordination
      Agent at any time other than (x) any time when a Liquidity Event of Default
      shall have occurred and be continuing and a Performing Note Deficiency exists
      or
      (y) any time after a Final Drawing shall have occurred shall be deposited
      in the Cash Collateral Account as and to the extent provided in clause
      "third"
      of
      Section 2.4(b)(i), clause "third"
      of
      Section 3.2 or clause "fourth"
      of
      Section 3.3, as applicable, and applied in accordance with Section 3.6(f)
      hereof.

     

    (h) Reimbursement.
      The
      amount of each drawing under the Liquidity Facility shall be due and payable,
      together with interest thereon, on the dates and at the rates, respectively,
      provided in the Liquidity Facility.

     

    (i) Final
      Drawing.
      Upon
      receipt from the Liquidity Provider of a Termination Notice, the Subordination
      Agent shall, not later than the date specified in such Termination Notice,
      in
      accordance with the terms of the Liquidity Facility, request a drawing under
      the
      Liquidity Facility of all available and undrawn amounts thereunder (a
      "Final
      Drawing").
      Amounts drawn pursuant to a Final Drawing shall be maintained and invested
      in
      accordance with Section 3.6(f) hereof.

    

    
      
        
          
          

        

        
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    (j) Reduction
      of Stated Amount.
      On the
      first Regular Distribution Date, the Stated Amount under each Liquidity Facility
      shall automatically be reduced to the Required Amount then in effect with
      respect to such Liquidity Facility. On each date on which the Pool Balance
      of
      the Trust shall have been reduced by payments made to the Certificateholders
      pursuant to Section 2.4, 3.2 or 3.3 hereof or pursuant to Section 2.03 of the
      Escrow and Paying Agent Agreement or deemed reduced pursuant to the proviso
      in
      the definition of "Required Amount", the Stated Amount under the Liquidity
      Facility shall automatically be reduced to an amount equal to the Required
      Amount for the Liquidity Facility (as calculated by the Subordination Agent
      after giving effect to such payment).

     

    (k) Special
      Termination Drawing.
      Upon
      receipt from the Liquidity Provider of a Special Termination Notice with respect
      to the Liquidity Facility, the Subordination Agent shall, not later than the
      date specified in such Special Termination Notice, in accordance with the terms
      of the Liquidity Facility, request a drawing under the Liquidity Facility of
      all
      available and undrawn amounts thereunder (a "Special
      Termination Drawing").
      Amounts drawn pursuant to a Special Termination Drawing shall be maintained
      and
      invested in accordance with Section 3.6(f) hereof.

     

    (l) Relation
      to Subordination Provisions.
      Interest Drawings under the Liquidity Facility and withdrawals from the Cash
      Collateral Account, in each case, in respect of interest on the Certificates,
      will be distributed to the Trustee, notwithstanding Sections 2.4, 3.2 and 3.3
      hereof.

     

    (m) Assignment
      of Liquidity Facility.
      The
      Subordination Agent agrees not to consent to the assignment by the Liquidity
      Provider of any of its rights or obligations under the Liquidity Facility or
      any
      interest therein, unless (i) Continental shall have consented to such assignment
      and (ii) each Rating Agency shall have provided a Ratings Confirmation in
      respect of such assignment; provided,
      that
      the Subordination Agent shall consent to such assignment if the conditions
      in
      the foregoing clauses (i) and (ii) are satisfied, and the foregoing is not
      intended to and shall not be construed to limit the rights of the Liquidity
      Provider under Section 3.6(e)(ii). 

     

    ARTICLE
      IV

     

    EXERCISE
      OF REMEDIES

     

    SECTION
      4.1 Directions
      from the Controlling Party.
      (a) (i)
      Following the occurrence and during the continuation of an Indenture Default
      under any Indenture, the Controlling Party shall direct the Subordination Agent,
      which in turn shall direct the Loan Trustee under such Indenture, in the
      exercise of remedies available to the holders of the Equipment Notes issued
      pursuant to such Indenture, including, without limitation, the ability to vote
      all such Equipment Notes in favor of Accelerating such Equipment Notes in
      accordance with the provisions of such Indenture. Subject to the Owner Trustees'
      and the Owner Participants' rights, if any, set forth in the Indentures to
      purchase the Equipment Notes and the provisions of the next paragraph, if the
      Equipment Notes issued pursuant to any Indenture have been Accelerated following
      an Indenture Default with respect thereto, the Controlling Party may direct
      the
      Subordination Agent to sell, assign, contract to sell or otherwise dispose
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    all
      (but
      not less than all) of such Equipment Notes, or sell the Aircraft subject to
      the
      Lien of such Indenture, in either case, to any Person at public or private
      sale,
      at any location at the option of the Controlling Party, all upon such terms
      and
      conditions as it may reasonably deem advisable in accordance with applicable
      law.

     

    (ii) At
      the
      request of the Controlling Party, the Subordination Agent may from time to
      time
      during the continuance of an Indenture Default (and before the occurrence of
      a
      Triggering Event) commission Appraisals with respect to the Aircraft subject
      to
      such Indenture.

     

    (iii) After
      a
      Triggering Event occurs and any Equipment Note becomes a Non-Performing
      Equipment Note, the Subordination Agent shall obtain a desktop appraisal from
      each of three Appraisers setting forth the current market value, current lease
      rate and immediate or distress sale value (in each case, as defined by the
      International Society of Transport Aircraft Trading) with respect to all of
      the
      Aircraft (the "Appraisals")
      as
      soon as practicable and thereafter during the continuance of such Triggering
      Event additional Appraisals on or prior to each six-month anniversary of the
      date of such initial Appraisals; provided,
      that,
      the Controlling Party shall have the right to obtain or cause to be obtained
      additional Appraisals (including any Appraisals based upon physical inspection
      of the Aircraft) at any time.

     

    (iv) After
      the
      Subordination Agent has requested the Appraisers to deliver the initial
      Appraisals, the Reserve Account will be funded initially up to the Reserve
      Amount from amounts distributed under clause "first"
      of
      Section 3.3 hereof. The Subordination Agent shall have the right to withdraw
      funds from the Reserve Account to pay for the initial and any subsequent
      Appraisals. The Reserve Account will subsequently be replenished up to the
      Reserve Amount pursuant to clause "first"
      of
      Section 3.3 hereof; provided, that, except for the initial funding of the
      Reserve Account up to the Reserve Amount, no more than $25,000 will be deposited
      in the Reserve Account in any calendar year and no more than $100,000 shall
      be
      on deposit in the Reserve Account at any time. On the first Business Day
      following the earliest of (w) the first day after the initial funding of the
      Reserve Account on which no Triggering Event exists, (x) the Final Legal
      Distribution Date, (y) the date of the disposition of the last Aircraft or
      the
      related Equipment Note hereunder, and (z) the date on which payment of the
      Triggering Event Distributions is made in full, the Subordination Agent shall
      withdraw all amounts (if any) on deposit in the Reserve Account and deposit
      such
      amounts in the Collection Account.

     

    (b) Following
      the occurrence and during the continuance of an Indenture Default under any
      Indenture, the Controlling Party shall take such actions as it may reasonably
      deem most effectual to complete the sale or other disposition of the relevant
      Aircraft or Equipment Notes. In addition, in lieu of any sale, assignment,
      contract to sell or other disposition, the Controlling Party may maintain
      possession of such Equipment Notes and continue to apply monies received in
      respect of such Equipment Notes in accordance with Articles II and III hereof.
      In addition, in lieu of such sale, assignment, contract to sell or other
      disposition, or in lieu of such maintenance of possession, the Controlling
      Party
      may, subject to the terms and conditions of the related Indenture, instruct
      the
      Loan Trustee under such Indenture to foreclose on the Lien on the related
      Aircraft.

    

    
      
        
          
          

        

        
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    SECTION
      4.2 Remedies
      Cumulative.
      Each
      and every right, power and remedy given to the Trustee, the Liquidity Provider,
      the Controlling Party or the Subordination Agent specifically or otherwise
      in
      this Agreement shall be cumulative and shall be in addition to every other
      right, power and remedy herein specifically given or now or hereafter existing
      at law, in equity or by statute, and each and every right, power and remedy
      whether specifically herein given or otherwise existing may, subject always
      to
      the terms and conditions hereof, be exercised from time to time and as often
      and
      in such order as may be deemed expedient by the Trustee, the Liquidity Provider,
      the Controlling Party or the Subordination Agent, as appropriate, and the
      exercise or the beginning of the exercise of any power or remedy shall not
      be
      construed to be a waiver of the right to exercise at the same time or thereafter
      any other right, power or remedy. No delay or omission by the Trustee, the
      Liquidity Provider, the Controlling Party or the Subordination Agent in the
      exercise of any right, remedy or power or in the pursuit of any remedy shall
      impair any such right, power or remedy or be construed to be a waiver of any
      default or to be an acquiescence therein.

     

    SECTION
      4.3 Discontinuance
      of Proceedings.
      In case
      any party to this Agreement (including the Controlling Party in such capacity)
      shall have instituted any Proceeding to enforce any right, power or remedy
      under
      this Agreement by foreclosure, entry or otherwise, and such Proceeding shall
      have been discontinued or abandoned for any reason or shall have been determined
      adversely to the Person instituting such Proceeding, then and in every such
      case
      each such party shall, subject to any determination in such Proceeding, be
      restored to its former position and rights hereunder, and all rights, remedies
      and powers of such party shall continue as if no such Proceeding had been
      instituted.

     

    SECTION
      4.4 Right
      to Receive Payments Not to Be Impaired.
      Anything in this Agreement to the contrary notwithstanding but subject to the
      Trust Agreement, the right of any Certificateholder or the Liquidity Provider,
      respectively, to receive payments hereunder (including, without limitation,
      pursuant to Section 2.4, 3.2 or 3.3 hereof) when due, or to institute suit
      for
      the enforcement of any such payment on or after the applicable Distribution
      Date, shall not be impaired or affected without the consent of such
      Certificateholder or the Liquidity Provider, respectively.

     

    SECTION
      4.5 Undertaking
      for Costs.
      In any
      Proceeding for the enforcement of any right or remedy under this Agreement
      or in
      any Proceeding against any Controlling Party or the Subordination Agent for
      any
      action taken or omitted by it as Controlling Party or Subordination Agent,
      as
      the case may be, a court in its discretion may require the filing by any party
      litigant in the suit of an undertaking to pay the costs of the suit, and the
      court in its discretion may assess reasonable costs, including reasonable
      attorneys' fees and expenses, against any party litigant in the suit, having
      due
      regard to the merits and good faith of the claims or defenses made by the party
      litigant. The provisions of this Section do not apply to a suit instituted
      by
      the Subordination Agent, the Liquidity Provider or the Trustee or a suit by
      Certificateholders holding more than 10% of the original principal amount of
      the
      Certificates.

    

    
      
        
          
          

        

        
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    ARTICLE
      V

     

    DUTIES
      OF
      THE SUBORDINATION AGENT;

     

    AGREEMENTS
      OF TRUSTEE, ETC.

     

    SECTION
      5.1 Notice
      of Indenture Default or Triggering Event; Other Notices; Reports.
      (a) In
      the event the Subordination Agent shall have actual knowledge of the occurrence
      of an Indenture Default or a Triggering Event, as promptly as practicable,
      and
      in any event within 10 days after obtaining knowledge thereof, the Subordination
      Agent shall transmit by mail or courier to the Rating Agencies, the Liquidity
      Provider and the Trustee notice of such Indenture Default or Triggering Event,
      unless such Indenture Default or Triggering Event shall have been cured or
      waived. For all purposes of this Agreement, in the absence of actual knowledge
      on the part of a Responsible Officer, the Subordination Agent shall not be
      deemed to have knowledge of any Indenture Default or Triggering Event unless
      notified in writing by the Trustee, one or more Liquidity Provider or one or
      more Certificateholders.

     

    (b) The
      Subordination Agent will furnish to the Liquidity Provider and the Trustee,
      promptly upon receipt thereof, duplicates or copies of all reports, notices,
      requests, demands, certificates, financial statements and other instruments
      furnished to the Subordination Agent as registered holder of the Equipment
      Notes
      or otherwise in its capacity as Subordination Agent to the extent the same
      shall
      not have been otherwise directly distributed to the Liquidity Provider or
      Trustee, as applicable, pursuant to the express provision of any other Operative
      Agreement.

     

    (c) Upon
      the
      occurrence of an Indenture Default, the Subordination Agent shall instruct
      the
      Trustee to, and the Trustee shall, request that DTC post on its internet
      bulletin board a securities position listing setting forth the names of all
      the
      parties reflected on DTC's books as holding interests in the
      certificates.

     

    (d) Promptly
      after the occurrence of a Triggering Event or an Indenture Default resulting
      from the failure of Continental to make payments on any Equipment Note and
      on
      every sixth Regular Distribution Date while the Triggering Event or such
      Indenture Default shall be continuing, the Subordination Agent will provide
      to
      the Trustee, Liquidity Provider, Rating Agencies and Continental a statement
      setting forth the following information:

     

    (i)
      after
      a bankruptcy of Continental, with respect to each Aircraft, whether such
      Aircraft is (A) subject to the 60-day period of Section 1110 of the
      Bankruptcy Code, (B) subject to an election by Continental under
      Section 1110(a) of the Bankruptcy Code, (C) covered by an agreement
      contemplated by Section 1110(b) of the Bankruptcy Code or (D) not
      subject to any of (A), (B) or (C);

     

    (ii)
      to
      the best of the Subordination Agent's knowledge, after requesting such
      information from Continental, (A) whether the Aircraft are currently in
      service or parked in storage, (B) the maintenance status of the Aircraft
      and (C) the location of the Engines (as defined in the
      Indentures);

     

    
      
        
          
          

        

        
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    (iii)
      the
      current Pool Balance of the Certificates and outstanding principal 
      amount
      of all Equipment Notes;

     

    (iv)
      the
      expected amount of interest which will have accrued on the Equipment Notes
      and
      on the Certificates as of the next Regular Distribution Date;

     

    (v)
      the
      amounts paid to each person on such Distribution Date pursuant to this
      Agreement;

     

    (vi)
      details of the amounts paid on such Distribution Date identified by reference
      to
      the relevant provision of this Agreement and the source of payment (by Aircraft
      and party);

     

    (vii)
      if
      the Subordination Agent has made a Final Drawing under the Liquidity
      Facility;

     

    (viii)
      the amounts currently owed to the Liquidity Provider;

     

    (ix)
      the
      amounts drawn under the Liquidity Facility; and 

     

    (x)
      after
      a bankruptcy of Continental, any operational reports filed by Continental with
      the bankruptcy court which are available to the Subordination Agent on a
      non-confidential basis.

     

    SECTION
      5.2 Indemnification.
      The
      Subordination Agent shall not be required to take any action or refrain from
      taking any action under Section 5.1 (other than the first sentence thereof)
      or
      Article IV hereof unless the Subordination Agent shall have been indemnified
      (to
      the extent and in the manner reasonably satisfactory to the Subordination Agent)
      against any liability, cost or expense (including counsel fees and expenses)
      which may be incurred in connection therewith. The Subordination Agent shall
      not
      be under any obligation to take any action under this Agreement and nothing
      contained in this Agreement shall require the Subordination Agent to expend
      or
      risk its own funds or otherwise incur any financial liability in the performance
      of any of its duties hereunder or in the exercise of any of its rights or powers
      if it shall have reasonable grounds for believing that repayment of such funds
      or adequate indemnity against such risk or liability is not reasonably assured
      to it. The Subordination Agent shall not be required to take any action under
      Section 5.1 (other than the first sentence thereof) or Article IV
      hereof, nor shall any other provision of this Agreement be deemed to impose
      a
      duty on the Subordination Agent to take any action, if the Subordination Agent
      shall have been advised by counsel that such action is contrary to the terms
      hereof or is otherwise contrary to law.

     

    SECTION
      5.3 No
      Duties Except as Specified in Intercreditor Agreement.
      The
      Subordination Agent shall not have any duty or obligation to take or refrain
      from taking any action under, or in connection with, this Agreement, except
      as
      expressly provided by the terms of this Agreement; and no implied duties or
      obligations shall be read into this Agreement against the Subordination Agent.
      The Subordination Agent agrees that it will, in its individual capacity and
      at
      its own cost and expense (but without any right of indemnity in respect of
      any
      such cost or expense under Section 5.2 or 7.1 hereof) promptly take such
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    discharge
      all Liens on any of the Trust Accounts or any monies deposited therein which
      result from claims against it in its individual capacity not related to its
      activities hereunder or any other Operative Agreement.

     

    SECTION
      5.4 Notice
      from the Liquidity Provider and Trustee.
      If the
      Liquidity Provider or the Trustee has received notice of an Indenture Default
      or
      a Triggering Event, such Person shall promptly give notice thereof to the
      Trustee or Liquidity Provider, as the case may be, and to the Subordination
      Agent, provided,
      however,
      that no
      such Person shall have any liability hereunder as a result of its failure to
      deliver any such notice.

     

    ARTICLE
      VI

     

    THE
      SUBORDINATION AGENT

     

    SECTION
      6.1 Authorization;
      Acceptance of Trusts and Duties.
      The
      Trustee hereby designates and appoints the Subordination Agent as the agent
      and
      trustee of the Trustee under the Liquidity Facility and authorizes the
      Subordination Agent to enter into the Liquidity Facility as agent and trustee
      for such Trustee. Each of the Liquidity Provider and the Trustee hereby
      designates and appoints the Subordination Agent as the Subordination Agent
      under
      this Agreement. WTC hereby accepts the duties hereby created and applicable
      to
      it as the Subordination Agent and agrees to perform the same but only upon
      the
      terms of this Agreement and agrees to receive and disburse all monies received
      by it in accordance with the terms hereof. The Subordination Agent shall not
      be
      answerable or accountable under any circumstances, except (a) for its own
      willful misconduct or gross negligence (or ordinary negligence in the handling
      of funds), (b) as provided in Sections 2.2 or 5.3 hereof and (c) for
      liabilities that may result from the material inaccuracy of any representation
      or warranty of the Subordination Agent made in its individual capacity in any
      Operative Agreement. The Subordination Agent shall not be liable for any error
      of judgment made in good faith by a Responsible Officer of the Subordination
      Agent, unless it is proved that the Subordination Agent was negligent in
      ascertaining the pertinent facts.

     

    SECTION
      6.2 Absence
      of Duties.
      The
      Subordination Agent shall have no duty to see to any recording or filing of
      this
      Agreement or any other document, or to see to the maintenance of any such
      recording or filing.

     

    SECTION
      6.3 No
      Representations or Warranties as to Documents.
      The
      Subordination Agent in its individual capacity does not make nor shall be deemed
      to have made any representation or warranty as to the validity, legality or
      enforceability of this Agreement or any other Operative Agreement or as to
      the
      correctness of any statement contained in any thereof, except for the
      representations and warranties of the Subordination Agent, made in its
      individual capacity, under any Operative Agreement to which it is a party.
      The
      Certificateholders, the Trustee and the Liquidity Provider make no
      representation or warranty hereunder whatsoever.

     

    SECTION
      6.4 No
      Segregation of Monies; No Interest.
      Any
      monies paid to or retained by the Subordination Agent pursuant to any provision
      hereof and not then required to be distributed to the Trustee or the Liquidity
      Provider as provided in Articles II and III hereof or 

    

    
      
        
          
          

        

        
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    deposited
      into one or more Trust Accounts need not be segregated in any manner except
      to
      the extent required by such Articles II and III and by law, and the
      Subordination Agent shall not (except as otherwise provided in Section 2.2
      hereof) be liable for any interest thereon; provided,
      however,
      that
      any payments received or applied hereunder by the Subordination Agent shall
      be
      accounted for by the Subordination Agent so that any portion thereof paid or
      applied pursuant hereto shall be identifiable as to the source
      thereof.

     

    SECTION
      6.5 Reliance;
      Agents; Advice of Counsel.
      The
      Subordination Agent shall not incur liability to anyone in acting upon any
      signature, instrument, notice, resolution, request, consent, order, certificate,
      report, opinion, bond or other document or paper believed by it to be genuine
      and believed by it to be signed by the proper party or parties. As to the Pool
      Balance as of any date, the Subordination Agent may for all purposes hereof
      rely
      on a certificate signed by any Responsible Officer of the Trustee, and such
      certificate shall constitute full protection to the Subordination Agent for
      any
      action taken or omitted to be taken by it in good faith in reliance thereon.
      As
      to any fact or matter relating to the Liquidity Provider or the Trustee the
      manner of ascertainment of which is not specifically described herein, the
      Subordination Agent may for all purposes hereof rely on a certificate, signed
      by
      any Responsible Officer of the Liquidity Provider or Trustee, as the case may
      be, as to such fact or matter, and such certificate shall constitute full
      protection to the Subordination Agent for any action taken or omitted to be
      taken by it in good faith in reliance thereon. The Subordination Agent shall
      assume, and shall be fully protected in assuming, that the Liquidity Provider
      and the Trustee are authorized to enter into this Agreement and to take all
      action to be taken by them pursuant to the provisions hereof, and shall not
      inquire into the authorization of the Liquidity Provider or the Trustee with
      respect thereto. In the administration of the trusts hereunder, the
      Subordination Agent may execute any of the trusts or powers hereof and perform
      its powers and duties hereunder directly or through agents or attorneys and
      may
      consult with counsel, accountants and other skilled persons to be selected
      and
      retained by it, and the Subordination Agent shall not be liable for the acts
      or
      omissions of any agent selected with due care or for anything done, suffered
      or
      omitted in good faith by it in accordance with the advice or written opinion
      of
      any such counsel, accountants or other skilled persons.

     

    SECTION
      6.6 Capacity
      in Which Acting.
      The
      Subordination Agent acts hereunder solely as agent and trustee herein and not
      in
      its individual capacity, except as otherwise expressly provided in the Operative
      Agreements.

     

    SECTION
      6.7 Compensation.
      The
      Subordination Agent shall be entitled to reasonable compensation, including
      expenses and disbursements, for all services rendered hereunder and shall have
      a
      priority claim to the extent set forth in Article III hereof on all monies
      collected hereunder for the payment of such compensation, to the extent that
      such compensation shall not be paid by others. The Subordination Agent agrees
      that it shall have no right against the Trustee or the Liquidity Provider for
      any fee as compensation for its services as agent under this Agreement. The
      provisions of this Section 6.7 shall survive the termination of this
      Agreement.

     

    SECTION
      6.8 May
      Become Certificateholder.
      The
      institution acting as Subordination Agent hereunder may become a
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    of
      a
      Certificateholder to the same extent as if it were not the institution acting
      as
      the Subordination Agent.

     

    SECTION
      6.9 Subordination
      Agent Required; Eligibility.
      There
      shall at all times be a Subordination Agent hereunder which shall be a
      corporation organized and doing business under the laws of the United States
      of
      America or of any State or the District of Columbia having a combined capital
      and surplus of at least $100,000,000 (or the obligations of which, whether
      now
      in existence or hereafter incurred, are fully and unconditionally guaranteed
      by
      a corporation organized and doing business under the laws of the United States
      of America, any State thereof or of the District of Columbia and having a
      combined capital and surplus of at least $100,000,000), if there is such an
      institution willing and able to perform the duties of the Subordination Agent
      hereunder upon reasonable or customary terms. Such corporation shall be a
      citizen of the United States and shall be authorized under the laws of the
      United States or any State thereof or of the District of Columbia to exercise
      corporate trust powers and shall be subject to supervision or examination by
      federal, state or District of Columbia authorities. If such corporation
      publishes reports of condition at least annually, pursuant to law or to the
      requirements of any of the aforesaid supervising or examining authorities,
      then,
      for the purposes of this Section 6.9, the combined capital and surplus of such
      corporation shall be deemed to be its combined capital and surplus as set forth
      in its most recent report of condition so published.

     

    In
      case
      at any time the Subordination Agent shall cease to be eligible in accordance
      with the provisions of this Section, the Subordination Agent shall resign
      immediately in the manner and with the effect specified in
      Section 8.1.

     

    SECTION
      6.10 Money
      to Be Held in Trust.
      All
      Equipment Notes, monies and other property deposited with or held by the
      Subordination Agent pursuant to this Agreement shall be held in trust for the
      benefit of the parties entitled to such Equipment Notes, monies and other
      property. All such Equipment Notes, monies or other property shall be held
      in
      the Trust Department of the institution acting as Subordination Agent
      hereunder.

     

    ARTICLE
      VII

     

    INDEMNIFICATION
      OF SUBORDINATION AGENT

     

    SECTION
      7.1 Scope
      of Indemnification.
      The
      Subordination Agent shall be indemnified hereunder to the extent and in the
      manner described in Section 9.1 of the Participation Agreements and Section
      6 of the Note Purchase Agreement. The indemnities contained in such Sections
      of
      such agreements shall survive the termination of this Agreement.

     

    ARTICLE
      VIII

     

    SUCCESSOR
      SUBORDINATION AGENT

     

    SECTION
      8.1 Replacement
      of Subordination Agent; Appointment of Successor.
      The
      Subordination Agent may resign at any time by so notifying the Trustee and
      the
      Liquidity Provider. The Controlling Party may remove the Subordination Agent
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    the
      Subordination Agent and may appoint a successor Subordination Agent. The
      Controlling Party shall remove the Subordination Agent if:

     

    
      
        
          	 	
                  (1)

                	
                  the
                    Subordination Agent fails to comply with Section 6.9
                    hereof;

                

        

         

      

      
        	 	
                (2)

              	
                the
                  Subordination Agent is adjudged bankrupt or
                  insolvent;

              

      

       

    

    
      	 	
              (3)

            	
              a
                receiver or other public officer takes charge of the Subordination
                Agent
                or its property; or

            

    

     

    
      
        	 	
                (4)

              	
                the
                  Subordination Agent otherwise becomes incapable of
                  acting.

              

      

    

     

    If
      the
      Subordination Agent resigns or is removed or if a vacancy exists in the office
      of Subordination Agent for any reason (the Subordination Agent in such event
      being referred to herein as the retiring Subordination Agent), the Controlling
      Party shall promptly appoint a successor Subordination Agent.

     

    A
      successor Subordination Agent shall deliver (x) a written acceptance of its
      appointment as Subordination Agent hereunder to the retiring Subordination
      Agent
      and (y) a written assumption of its obligations hereunder and under the
      Liquidity Facility to each party hereto, upon which the resignation or removal
      of the retiring Subordination Agent shall become effective, and the successor
      Subordination Agent shall have all the rights, powers and duties of the
      Subordination Agent under this Agreement. The successor Subordination Agent
      shall mail a notice of its succession to the Liquidity Provider and the Trustee.
      The retiring Subordination Agent shall promptly transfer its rights under the
      Liquidity Facility and all of the property held by it as Subordination Agent
      to
      the successor Subordination Agent.

     

    If
      a
      successor Subordination Agent does not take office within 60 days after the
      retiring Subordination Agent resigns or is removed, the retiring Subordination
      Agent or the Trustee may petition any court of competent jurisdiction for the
      appointment of a successor Subordination Agent.

     

    If
      the
      Subordination Agent fails to comply with Section 6.9 hereof (to the extent
      applicable), the Trustee or the Liquidity Provider may petition any court of
      competent jurisdiction for the removal of the Subordination Agent and the
      appointment of a successor Subordination Agent.

     

    Notwithstanding
      the foregoing, no resignation or removal of the Subordination Agent shall be
      effective unless and until a successor has been appointed. No appointment of
      a
      successor Subordination Agent shall be effective unless and until the Rating
      Agencies shall have delivered a Ratings Confirmation.

    

    
      
        
          
          

        

        
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    ARTICLE
      IX

     

    SUPPLEMENTS
      AND AMENDMENTS

     

    SECTION
      9.1 Amendments,
      Waivers, etc.
      (a)
      This Agreement may not be supplemented, amended or modified without the consent
      of the Trustee (acting, except in the case of any amendment pursuant to
      Section 3.6(e)(v)(y) hereof with respect to any Replacement Liquidity
      Facility or any amendment contemplated by the last sentence of this Section
      9.1(a), with the consent of holders of the Certificates evidencing interests
      in
      the Trust aggregating not less than a majority in interest in the Trust or
      as
      otherwise authorized pursuant to the Trust Agreement), the Subordination Agent
      and the Liquidity Provider; provided,
      however,
      that
      this Agreement may be supplemented, amended or modified without the consent
      of
      the Trustee if such supplement, amendment or modification cures an ambiguity
      or
      inconsistency or does not materially adversely affect the Trustee, the Liquidity
      Provider or the holders of the Certificates; provided further,
      however,
      that,
      if such supplement, amendment or modification (A) would (x) directly
      or indirectly modify or supersede, or otherwise conflict with,
      Section 2.2(b), Section 3.6(e), Section 3.6(f) (other than the last
      sentence thereof), Section 3.6(n), the last sentence of this Section 9.1(a),
      the
      second sentence of Section 10.6 or this proviso (collectively, the
      "Continental
      Provisions")
      or
      (y) otherwise adversely affect the interests of a potential Replacement
      Liquidity Provider or of Continental with respect to its ability to replace
      any
      Liquidity Facility or with respect to its payment obligations under any
      Operative Agreement or (B) is made pursuant to the last sentence of this Section
      9.1(a), then such supplement, amendment or modification shall not be effective
      without the additional written consent of Continental. Notwithstanding the
      foregoing, without the consent of each Certificateholder and the Liquidity
      Provider, no supplement, amendment or modification of this Agreement may
      (i) reduce the percentage of the interest in the Trust evidenced by the
      Certificates issued by the Trust necessary to consent to modify or amend any
      provision of this Agreement or to waive compliance therewith or (ii) except
      as provided in the last sentence of this Section 9.1(a), modify
      Section 2.4, 3.2 or 3.3 hereof, relating to the distribution of monies
      received by the Subordination Agent hereunder from the Equipment Notes or
      pursuant to the Liquidity Facilities. Nothing contained in this Section shall
      require the consent of the Trustee at any time following the payment of
      Triggering Event Distributions in full. If any Replacement Liquidity Facility
      in
      accordance with Section 3.6(e) hereof is to be comprised of more than one
      instrument or an instrument other than a revolving credit agreement, in each
      case, as contemplated by the definition of the term "Replacement Liquidity
      Facility", then each of the parties hereto agrees to amend this Agreement to
      incorporate appropriate mechanics for multiple Liquidity Facilities or for
      such
      instrument, as the case may be.

     

    (b) In
      the
      event that the Subordination Agent, as the registered holder of any Equipment
      Notes, receives a request for its consent to any amendment, modification,
      consent or waiver under such Equipment Notes, the Indenture pursuant to which
      such Equipment Notes were issued, or the related Lease, Participation Agreement
      or other related document, (i) if no Indenture Default shall have occurred
      and be continuing with respect to such Indenture, the Subordination Agent shall
      request directions with respect to such Equipment Notes from the Trustee and
      shall vote or consent in accordance with the directions of the Trustee and
      (ii) if any Indenture Default (which has not been cured by the applicable
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    Owner
      Participant, if applicable, pursuant to Section 4.03 of such Indenture)
      shall have occurred and be continuing with respect to such Indenture, the
      Subordination Agent will exercise its voting rights as directed by the
      Controlling Party, subject to Sections 4.1 and 4.4 hereof; provided
      that no
      such amendment, modification or waiver shall, without the consent of the
      Liquidity Provider, reduce the amount of rent, supplemental rent or stipulated
      loss values payable by Continental under any Lease. 

     

    SECTION
      9.2 Subordination
      Agent Protected.
      If, in
      the reasonable opinion of the institution acting as the Subordination Agent
      hereunder, any document required to be executed pursuant to the terms of
      Section 9.1 affects any right, duty, immunity or indemnity with respect to
      it under this Agreement or the Liquidity Facility, the Subordination Agent
      may
      in its discretion decline to execute such document.

     

    SECTION
      9.3 Effect
      of Supplemental Agreements.
      Upon
      the execution of any amendment, consent or supplement hereto pursuant to the
      provisions hereof, this Agreement shall be and be deemed to be and shall be
      modified and amended in accordance therewith and the respective rights,
      limitations of rights, obligations, duties and immunities under this Agreement
      of the parties hereto and beneficiaries hereof shall thereafter be determined,
      exercised and enforced hereunder subject in all respects to such modifications
      and amendments, and all the terms and conditions of any such supplemental
      agreement shall be and be deemed to be and shall be part of the terms and
      conditions of this Agreement for any and all purposes. In executing or accepting
      any supplemental agreement permitted by this Article IX, the Subordination
      Agent shall be entitled to receive, and shall be fully protected in relying
      upon, an opinion of counsel stating that the execution of such supplemental
      agreement is authorized or permitted by this Agreement.

     

    SECTION
      9.4 Notice
      to Rating Agencies.
      Promptly following its receipt of each amendment, consent, modification,
      supplement or waiver contemplated by this Article IX, the Subordination
      Agent shall send a copy thereof to each Rating Agency.

     

    Upon
      the
      reasonable request of any Rating Agency in writing, the Subordination Agent
      and
      Trustee shall provide to such Rating Agency such information available to the
      Subordination Agent and the Trustee as may be relevant to maintaining such
      Rating Agency's rating on the Certificates. During the continuance of a
      Triggering Event or an Indenture Default resulting from a payment default under
      any Equipment Note, the Subordination Agent and Trustee
      shall permit each Rating Agency, upon reasonable notice and on a
      periodic basis, to be provided copies of documents in the possession of the
      Subordination Agent and Trustee in their respective capacities as such
      reasonably related to the transactions contemplated by the Operative Agreements
      and, on a reasonable periodic basis, to meet or confer with officers and
      employees of the Subordination Agent and Trustee in their respective capacities
      as such to discuss such transactions, so long as such actions are reasonably
      related to maintaining such Rating Agency's rating on the Certificates.

    

    
      
        
          
          

        

        
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    ARTICLE
      X

     

    MISCELLANEOUS

     

    SECTION
      10.1 Termination
      of Intercreditor Agreement.
      Following payment in full of Triggering Event Distributions and the payment
      in
      full of all Liquidity Obligations to the Liquidity Provider and provided
      that
      there shall then be no other amounts due to the Certificateholders, the Trustee,
      the Liquidity Provider and the Subordination Agent hereunder or under the Trust
      Agreement, and that the commitment of the Liquidity Provider under the Liquidity
      Facility shall have expired or been terminated, this Agreement and the trusts
      created hereby shall terminate and this Agreement shall be of no further force
      or effect. Except as aforesaid or otherwise provided, this Agreement and the
      trusts created hereby shall continue in full force and effect in accordance
      with
      the terms hereof.

     

    SECTION
      10.2 Intercreditor
      Agreement for Benefit of the Trustee, the Liquidity Provider and the
      Subordination Agent.
      Subject
      to the second sentence of Section 10.6 and the provisions of
      Section 4.4, nothing in this Agreement, whether express or implied, shall
      be construed to give to any Person other than the Trustee, the Liquidity
      Provider and the Subordination Agent any legal or equitable right, remedy or
      claim under or in respect of this Agreement.

     

    SECTION
      10.3 Notices.
      Unless
      otherwise expressly specified or permitted by the terms hereof, all notices,
      requests, demands, authorizations, directions, consents, waivers or documents
      provided or permitted by this Agreement to be made, given, furnished or filed
      shall be in writing, mailed by certified mail, postage prepaid, or by confirmed
      telecopy and

     

    (i) if
      to the
      Subordination Agent, addressed to at its office at:

     

    WILMINGTON
      TRUST COMPANY

    One
      Rodney Square

    1100
      N.
      Market Street

    Wilmington,
      DE 19890-0001

    Attention:
      Corporate Trust Administration

    Telecopy:
      (302) 651-8882

     

    (ii) if
      to the
      Trustee, addressed to it at its office at:

     

    WILMINGTON
      TRUST COMPANY

    One
      Rodney Square

    1100
      N.
      Market Street

    Wilmington,
      DE 19890-0001

    Attention:
      Corporate Trust Administration

    Telecopy:
      (302) 651-8882

    
       

      (iii) if
        to the
        Liquidity Provider, addressed to it at its office at:

       

    

    Landesbank
      Baden-Wü;rttemberg

    Am
      Hauptbahnhof 2

    
      
        
          
          

        

        
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    D-70173
      Stuttgart

    Germany

    Attention:
      Structured Finance

    Telephone:
      +49 711 1244 9757

    Telecopy:
      +49 711 1244 9747

    

    with
      a
      copy to:

    

    Landesbank
      Baden-Württemberg

    280
      Park
      Avenue, West Building, 31st Floor

    New
      York,
      New York 10017

    Attention:
      Claudia Rothe/Bette Smolen

    Telephone:
      (212) 584-1700

    Telecopy:
      (212) 584-1729

     

    Whenever
      any notice in writing is required to be given by the Trustee, the Liquidity
      Provider or the Subordination Agent to any of the other of them, such notice
      shall be deemed given and such requirement satisfied when such notice is
      received. Any party hereto may change the address to which notices to such
      party
      will be sent by giving notice of such change to the other parties to this
      Agreement.

     

    SECTION
      10.4 Severability.
      Any
      provision of this Agreement which is or becomes invalid, prohibited or
      unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
      to the extent of such invalidity, prohibition or unenforceability without
      invalidating the remaining provisions hereof, and any such invalidity,
      prohibition or unenforceability in any jurisdiction shall not invalidate or
      render unenforceable such provision in any other jurisdiction.

     

    SECTION
      10.5 No
      Oral Modifications or Continuing Waivers.
      No
      terms or provisions of this Agreement may be changed, waived, discharged or
      terminated orally, but only by an instrument in writing signed by the party
      or
      other Person against whom enforcement of the change, waiver, discharge or
      termination is sought and any other party or other Person whose consent is
      required pursuant to this Agreement and any waiver of the terms hereof shall
      be
      effective only in the specific instance and for the specific purpose
      given.

     

    SECTION
      10.6 Successors
      and Assigns.
      All
      covenants and agreements contained herein shall be binding upon, and inure
      to
      the benefit of, each of the parties hereto and the successors and assigns of
      each, all as herein provided. In addition, the Continental Provisions shall
      inure to the benefit of Continental and its successors and assigns, and (without
      limitation of the foregoing) Continental is hereby constituted, and agreed
      to
      be, an express third party beneficiary of the Continental
      Provisions.

     

    SECTION
      10.7 Headings.
      The
      headings of the various Articles and Sections herein and in the table of
      contents hereto are for convenience of reference only and shall not define
      or
      limit any of the terms or provisions hereof.

    

    
      
        
          
          

        

        
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    SECTION
      10.8 Counterpart
      Form.
      This
      Agreement may be executed by the parties hereto
      in
      separate counterparts, each of which when so executed and delivered shall be
      an
      original, but all such counterparts shall together constitute but one and the
      same agreement.

     

    SECTION
      10.9 Subordination.
      (a) As
      between the Liquidity Provider, on the one hand, and the Trustee and the
      Certificateholders, on the other hand, and as among the Trustee and the
      Certificateholders, this Agreement shall be a subordination agreement for
      purposes of Section 510 of the United States Bankruptcy Code, as amended
      from time to time.

     

    (b) Notwithstanding
      the provisions of this Agreement, if prior to the payment in full to the
      Liquidity Provider of all Liquidity Obligations then due and payable, any party
      hereto shall have received any payment or distribution in respect of Equipment
      Notes or any other amount under the Indentures or other Operative Agreements
      which, had the subordination provisions of this Agreement been properly applied
      to such payment, distribution or other amount, would not have been distributed
      to such Person, then such payment, distribution or other amount shall be
      received and held in trust by such Person and paid over or delivered to the
      Subordination Agent for application as provided herein.

     

    (c) If
      the
      Trustee, the Liquidity Provider or the Subordination Agent receives any payment
      in respect of any obligations owing hereunder (or, in the case of the Liquidity
      Provider, in respect of the Liquidity Obligations), 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 (or, in the case of the Liquidity Provider, such Liquidity
      Obligations) intended to be satisfied shall be revived and continue in full
      force and effect as if such payment had not been received.

     

    (d) The
      Trustee (on behalf of itself and the holders of Certificates), the Liquidity
      Provider and the Subordination Agent confirm that the payment priorities
      specified in Sections 2.4, 3.2 and 3.3 shall apply in all circumstances,
      notwithstanding the fact that the obligations owed to the Trustee and the
      holders of Certificates are secured by certain assets and the Liquidity
      Obligations may not be so secured. The Trustee expressly agrees (on behalf
      of
      itself and the holders of Certificates) not to assert priority over the holders
      of Liquidity Obligations due to their status as secured creditors in any
      bankruptcy, insolvency or other legal proceeding.

     

    (e) Each
      of
      the Trustee (on behalf of itself and the holders of the Certificates), the
      Liquidity Provider and the Subordination Agent may take any of the following
      actions without impairing its rights under this Agreement:

     

    (i) obtain
      a
      Lien on any property to secure any amounts owing to it hereunder, including,
      in
      the case of the Liquidity Provider, the Liquidity Obligations, 

     

    (ii) obtain
      the primary or secondary obligation of any other obligor with respect to any
      amounts owing to it hereunder, including, in the case of the Liquidity Provider,
      any of the Liquidity Obligations,

    

    
      
        
          
          

        

        
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    (iii) renew,
      extend, increase, alter or exchange any amounts owing to it hereunder,
      including, in the case of the Liquidity Provider, any of the Liquidity
      Obligations, 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 the Trustee, the Liquidity Provider or the
      Subordination Agent shall not prejudice the rights or adversely affect the
      obligations of any other party under this Agreement.

     

    SECTION
      10.10 Governing
      Law.
      THIS
      AGREEMENT SHALL IN ALL RESPECTS BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
      WITH, THE LAW OF THE STATE OF NEW YORK, INCLUDING ALL MATTERS OF CONSTRUCTION,
      VALIDITY AND PERFORMANCE.

     

    SECTION
      10.11 Submission
      to Jurisdiction; Waiver of Jury Trial; Waiver of Immunity.
      (a)
      Each of the parties hereto hereby irrevocably and unconditionally:

     

    (i) submits
      for itself and its property in any legal action or proceeding relating to this
      Agreement or any other Operative Agreement, or for recognition and enforcement
      of any judgment in respect hereof or thereof, to the nonexclusive general
      jurisdiction of the courts of the State of New York (sitting in the City of
      New
      York), the courts of the United States of America for the Southern District
      of
      New York, and the appellate courts from any thereof;

     

    (ii) consents
      that any such action or proceeding may be brought in such courts, and waives
      any
      objection that it may now or hereafter have to the venue of any such action
      or
      proceeding in any such court or that such action or proceeding was brought
      in an
      inconvenient court and agrees not to plead or claim the same;

     

    (iii) agrees
      that service of process in any such action or proceeding may be effected by
      mailing a copy thereof by registered or certified mail (or any substantially
      similar form of mail), postage prepaid, to each party hereto at its address
      set
      forth in Section 10.3 hereof, or at such other address of which the other
      parties shall have been notified pursuant thereto; and

     

    (iv) agrees
      that nothing herein shall affect the right to effect service of process in
      any
      other manner permitted by law or shall limit the right to sue in any other
      jurisdiction.

     

    (b) EACH
      OF
      THE PARTIES HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL
      OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT
      OR
      ANY DEALINGS 

    

    
      
        
          
          

        

        
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    BETWEEN
      THEM RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT AND THE RELATIONSHIP
      THAT
      IS BEING ESTABLISHED, including, without limitation, contract claims, tort
      claims, breach of duty claims and all other common law and statutory claims.
      Each of the parties warrants and represents that it has reviewed this waiver
      with its legal counsel, and that it knowingly and voluntarily waives its jury
      trial rights following consultation with such legal counsel. THIS WAIVER IS
      IRREVOCABLE, AND CANNOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THIS WAIVER
      SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS
      TO THIS AGREEMENT.

     

    (c) The
      Liquidity Provider (and any successor Liquidity Provider not organized under
      the
      laws of the United States or any political subdivision thereof) hereby waives
      any immunity it may have from the jurisdiction of the courts of the United
      States or of any State and waives any immunity any of its properties located
      in
      the United States may have from attachment or execution upon a judgment entered
      by any such court under the United States Foreign Sovereign Immunities Act
      of
      1976 or any similar successor legislation.

    

    
      
        
          
          

        

        
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    IN
      WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
      executed by their respective officers or representatives thereunto duly
      authorized, as of the day and year first above written, and acknowledge that
      this Agreement has been made and delivered in the City of New York, and this
      Agreement has become effective only upon such execution and
      delivery.

     

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

     

    By 
      ___________________________

    Name:

    Title:

     

    LANDESBANK
      BADEN-WÜRTTEMBERG, as Liquidity Provider

     

    By 
      ___________________________

    Name:

    Title:

     

    By 
      ___________________________

    Name:

    Title:

     

    WILMINGTON
      TRUST COMPANY, not in its individual capacity except as expressly set forth
      herein but solely as Subordination Agent and trustee

     

    By 
      ___________________________

    Name:

    Title:

    
 

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
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