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                                                                    Exhibit 10.1

                       AMENDED AND RESTATED LOAN AGREEMENT

         THIS AMENDED AND RESTATED LOAN AGREEMENT (this "AGREEMENT"), is entered
into as of May 15, 2001, by and among VASTERA, INC., a Delaware corporation (the
"BORROWER"), the lenders listed on the signature pages hereto, and each other
lender which, from time to time becomes a party hereto in accordance with
Subsection 10.7 (individually a "LENDER" and collectively the "LENDERS"), PNC
BANK, NATIONAL ASSOCIATION as the issuer of letters of credit (in such capacity
the "ISSUING BANK"), PNC BANK, NATIONAL ASSOCIATION as the administrative agent
for itself and the other Lenders (in such capacity the "ADMINISTRATIVE AGENT").

         The Borrower and PNC Bank, National Association have previously
executed and delivered that certain Loan Agreement, dated as of March 5, 1999 as
amended by Amendments dated as of September 15, 1999, March 31, 2000 and June
20, 2000 respectively (the "ORIGINAL LOAN AGREEMENT"); and

         The Borrower and PNC Bank, National Association have determined it to
be advisable to consolidate all of the amendments to the Original Loan Agreement
through the date hereof and to further amend the Original Loan Agreement in
accordance with the terms hereof to, among other things, provide the Borrower
with additional credit support. Accordingly, this Amended and Restated Loan
Agreement amends, restates and supersedes in their entirety all of the terms and
conditions set forth in the Original Loan Agreement and shall constitute the
legal equivalent of the Original Loan Agreement, as amended as aforesaid
(hereinafter, as amended, the "LOAN AGREEMENT").

         Subject to the terms and conditions hereof and relying upon the
representations and warranties herein set forth in this Agreement, and intending
to be legally bound, the Borrower, the Administrative Agent, the Lenders and the
Issuing Bank agree as follows:

SECTION 1. DEFINITIONS.

         As used in this Agreement, the following terms shall have the following
meanings:

         "ACCOUNT" shall mean an "ACCOUNT" or a "GENERAL INTANGIBLE" as defined
in the Uniform Commercial Code as in effect in the jurisdiction whose Law
governs the perfection of the Administrative Agent's security interest therein,
whether now owned or hereafter acquired or arising.

         "ACCOUNT DEBTOR" shall mean, with respect to any Account, each Person
who is obligated to make payments to the Borrower on such Account.

         "ADMINISTRATIVE AGENT" means PNC Bank, National Association, in its
capacity as the Administrative Agent.

         "AFFILIATE" means, with respect to any Person, (a) any other Person who
(either alone or with a group of Persons, and either directly or indirectly
through one or more intermediaries) is in control of, is controlled by or is
under common control with such Person, (b) any director,

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officer, partner, employee or agent of such Person, and (c) any member of the
immediate family of such Person or any natural Person described in the preceding
clauses (a) and (b). A Person or group of Persons shall be deemed to be in
control of another Person when such Person or group of Persons possesses,
directly or indirectly, the power to direct or cause the direction of the
management or policies of such other Person, whether through the ownership of
voting securities, by contract or otherwise.

         "AGREEMENT" is defined in the Preamble to this Agreement.

         "APPLICATION FOR LETTER OF CREDIT" means any application and agreement
for irrevocable letter of credit executed by an Authorized Officer, on behalf of
the Borrower, in connection with the issuance by the Issuing Bank of a Letter of
Credit hereunder.

         "ASSET RESTORATION AMOUNT" is defined in Section 2.5(c) of this
Agreement.

         "ASSIGNMENT AND ASSUMPTION AGREEMENT" means an Assignment and
Assumption Agreement in the form of EXHIBIT H hereto.

         "AUTHORIZED OFFICER" is defined in Section 5.2 of this Agreement.

         "BANKRUPTCY CODE" means the Federal Bankruptcy Reform Act of 1978 (11
U.S.C. -101, et seq.), as amended and in effect from time to time and the
regulations issued from time to time thereunder.

         "BASE RATE" means the greater of (i) the Administrative Agent's Prime
Rate or (ii) the sum of the Federal Funds Effective Rate and fifty basis points
(0.50%).

         "BORROWER" is defined in the Preamble to this Agreement.

         "BORROWING BASE" at any time shall mean an amount equal to 80% of
Qualified Accounts as of the date of determination. The value of Qualified
Accounts at any time shall be determined by reference to the most recent
Borrowing Base Certificate delivered by the Borrower to the Administrative
Agent.

         "BORROWING BASE CERTIFICATE" shall mean each Borrowing Base Certificate
to be delivered by the Borrower to the Administrative Agent pursuant to Section
2.2(a) hereof, in substantially the form attached as Exhibit J hereto, with
blanks appropriately completed, as amended, supplemented or otherwise modified
from time to time.

         "BORROWING DATE" means with respect to any Loan, the date for the
making thereof, which shall be a Business Day.

         "BUSINESS DAY" means any day other than a Saturday, Sunday, Federal
holiday or any other day on which commercial banks are authorized or required to
be closed for business in Pittsburgh, Pennsylvania.

         "CAPITALIZED LEASE" means any lease of property by the Borrower or a
Subsidiary of the Borrower, as lessee, which would be capitalized in accordance
with GAAP.

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         "CAPITALIZED LEASE OBLIGATIONS" means the amount of the obligations of
the Borrower and its Subsidiaries under Capitalized Leases which would be shown
as a liability of the Borrower or such Subsidiary in accordance with GAAP.

         "CASH" means cash, Cash Equivalents and marketable securities as shown
on the balance sheet of the Borrower delivered to the Administrative Agent
pursuant to Sections 6.2 and 6.3 of this Agreement.

         "CASH EQUIVALENTS" means (a) securities issued or fully guaranteed or
insured by the United States government or any agency thereof maturing not more
than six (6) months from the date of acquisition; (b) certificates of deposit,
time deposits, repurchase agreements, reverse repurchase agreements, or bankers'
acceptances, having in each case a tenor of not more than six (6) months, issued
by the Lenders, any affiliate of the Lenders or any U.S. commercial bank or any
branch or agency of any non-U.S. bank licensed to conduct business in the United
States having combined capital and surplus of not less than $250,000,000; (c)
commercial paper of any issuer rated at least a-1 by Standard & Poor's Rating
Group, a division of McGraw-Hill Companies, or P-1 by Moody's Investors Service
Inc. and in either case having a tenor of not more than three (3) months.

         "CHANGE OF CONTROL" means within a period of twelve (12) consecutive
calendar months (i) (a) together with individuals who were directors of the
Borrower on the first day of such period (b) individuals whose election by the
Borrower's Board of Directors or whose nomination by shareholders of the
Borrower was approved by a majority of the Borrower's Board of Directors then
still in office who were either directors at the beginning of such period or
whose election or nomination for election was previously so approved,
collectively shall cease to constitute a majority of the board of directors of
the Borrower, or (ii) a Person or group of Persons acting in concert and who is
not (a) an Existing Shareholder or (b) an Affiliate of shareholders of the
Borrower on the first day of such period or (c) a Person who is eligible to
report their ownership of capital stock of the Borrower on Form 13G filed with
the Securities and Exchange Commission shall acquire thirty percent (30%) or
more of the issued and outstanding capital stock of the Borrower on a fully
diluted basis, taking into account all issued and outstanding stock options and
warrants to purchase capital stock.

         "CLOSING DATE" means May 14, 2001 or such later date as is mutually
agreeable to the parties hereto.

         "CLOSING FEE" means a fee of $52,500 due to the Lenders on the Closing
Date, which fee is to be allocated among the Lenders pro rata in accordance with
each Lender's Commitment Percentage.

         "COMMITMENT" means as to each Lender, the obligation of such Lender to
make Loans available to the Borrower pursuant to Section 2.1 in an aggregate
principal amount not to exceed the amount set forth opposite such Lender's name
on the signature pages hereto.

         "COMMITMENT FEE" means the fee payable to the Lenders set forth in
Section 2.9.

         "COMMITMENT PERCENTAGE" means the proportion that a Lender's Commitment
bears to the Commitments of all of the Lenders, collectively.

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         "COMPLIANCE CERTIFICATE" is defined in Section 6.3(a) of this
Agreement.

         "CONSOLIDATED" means the consolidation in accordance with GAAP of the
items as to which such term applies.

         "CURRENT ASSETS" means Cash plus accounts receivable and Cash
Equivalents (with maturity less than 90 days) of the Borrower determined in
accordance with GAAP and as shown on the balance sheet of the Borrower
referenced in Sections 6.2 and 6.3 of this Agreement.

         "CURRENT LIABILITIES" means all current liabilities of the Borrower,
determined in accordance with GAAP and as shown on the balance sheet of the
Borrower referenced in Sections 6.2 and 6.3 of this Agreement.

         "DEFAULT" means any condition, event, omission or act which with the
giving of notice, the passage of time or both would constitute an Event of
Default.

         "DISBURSEMENT" means each advance of funds hereunder as a Loan.

         "EBITDA" means earnings computed without regard to and before taking
charges for depreciation, interest, taxes and amortization, in each case, as
computed in accordance with GAAP and as shown in the Financial Statements of the
Borrower referenced in Sections 6.2 and 6.3 of this Agreement.

         "ELIGIBLE EQUIPMENT" means new or used equipment, including computer
equipment, office equipment and new or used furnishings acquired by the Borrower
and leasehold improvements made by the Borrower to its leased office locations
and soft costs related thereto; provided, however, that (a) any such equipment
shall not be eligible unless the Administrative Agent's security interest
created pursuant to the Security Agreement attaches to such equipment either at
the time of the filing by the Administrative Agent of the financing statements
signed and delivered by the Borrower on the Closing Date or upon the subsequent
purchase by the Borrower of such equipment, and (b) the invoice amount or cost
of transferable software licenses, leasehold improvements and other soft costs
shall be eligible only to the extent that the aggregate amount thereof purchased
with proceeds of the Equipment Loans does not exceed ten percent (10%) of the
aggregate amount advanced under the Equipment Loans as of the date of
determination.

         "ENVIRONMENTAL LAWS" is defined in Section 5.10 of this Agreement.

         "EQUIPMENT LOAN" is defined in Section 2.1(b) of this Agreement.

         "EQUIPMENT LOAN AMOUNT" is defined in Section 2.1(b) of this Agreement.

         "EQUIPMENT LOAN NOTE" means a First Equipment Loan Note or a Second
Equipment Loan Note.

         "EQUITY EVENT" means the closing and completion of a private placement
of common or preferred stock of the Borrower or equity securities convertible
into preferred or common stock of the Borrower, as the case may be, to
professional or institutional investors or other investors

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who may lawfully purchase such securities, including, but not limited to, then
existing owners of the Borrower's equity securities, resulting in any net
proceeds to the Borrower upon commercially reasonable terms prevailing in the
marketplace at the time and negotiated at arm's length.

         "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended.

         "EVENT OF DEFAULT" is defined in Section 8.1 of this Agreement.

         "EXISTING SHAREHOLDER" means a holder of the Borrower's capital stock
as of the date hereof.

         "FEDERAL FUNDS EFFECTIVE RATE" means, for any day, the weighted average
(rounded upwards, if necessary, to the next 1/100 of 1 %) of the rates on
overnight Federal funds transactions with members of the Federal Reserve System
arranged by Federal funds brokers, as published on the next succeeding 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 (rounded upwards, if
necessary, to the next 1/100 of 1 %) of the quotations for such day for
transactions received by the Lenders from three Federal funds brokers of
recognized standing selected by the Lenders.

         "FEES" means any fee payable by the Borrower to the Administrative
Agent, the Lenders, the Issuing Bank or PNC Capital Markets, Inc. ("PNC
CAPITAL") hereunder, under any of the other Loan Documents, or under that
certain letter agreement dated as of February 2, 2001 between PNC Capital and
the Borrower (the "LETTER AGREEMENT") including without limitation the Agent's
Fee (as defined in the Letter Agreement), the Arrangement Fee (as defined in the
Letter Agreement) and the Closing Fee.

         "FINANCIAL STATEMENTS" means the Consolidated and, if required by the
Lenders in its sole discretion, consolidating balance sheets, income statements
and statements of cash flows of the Borrower for the year, month or quarter
together with year-to-date figures and comparative figures for the corresponding
periods of the prior year.

         "FIRST EQUIPMENT LOAN ADVANCE REQUEST" is defined in Section 2.6(b) of
this Agreement.

         "FIRST EQUIPMENT LOAN NOTE" is defined in Section 2.3(b) of this
Agreement.

         "FIRST EQUIPMENT LOAN NOTE AMOUNT" is defined in Section 2.2(b) of this
Agreement.

         "FIRST EQUIPMENT LOAN NOTE CONVERSION DATE" is defined in Section
2.4(b) of this Agreement.

         "FISCAL QUARTER" Each three-month fiscal period of the Borrower
beginning respectively on each successive July 1, October 1, January 1 and April
1 during the term hereof and ending on the immediately succeeding September 30,
December 31, March 31 and June 30.

         "FISCAL YEAR" means each annual fiscal period of the Borrower beginning
January 1 and ending on the immediately succeeding December 31.

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         "GAAP" means generally accepted accounting principles set forth from
time to time in the opinions and pronouncements of the Accounting Principles
Board and the American Institute of Certified Public Accountants and statements
and pronouncements of the Financial Accounting Standards Board (or agencies with
similar functions of comparable stature and authority within the accounting
profession), which are applicable in the circumstances as of the date of
determination.

         "GOVERNMENTAL AUTHORITY" means any nation or government, any state or
other political subdivision thereof, any central bank (or similar monetary or
regulatory authority) thereof, any entity exercising executive, legislative,
judicial, regulatory or administrative functions of or pertaining to government,
and any corporation or other entity owned or controlled, through stock of
capital ownership or otherwise, by any of the foregoing. any government or
political subdivision or any agency, authority, bureau, central bank,
commission, department or instrumentality of any government or political
subdivision, or any court, tribunal, grand jury or arbitrator, in each case
whether foreign or domestic.

         "GOVERNMENTAL RULE" means any law, statute, rule, regulation, treaty,
ordinance, order, writ, injunction, decree, judgment, guideline, directive or
decision of any Governmental Authority, including without limitation
Environmental Laws, all whether in existence on the Closing Date or whether
issued, enacted or adopted after the Closing Date, and any change therein or in
the interpretation or application thereof following the Closing Date.

         "GUARANTOR" means each Subsidiary of the Borrower in existence on the
Closing Date and each Person which becomes a Subsidiary of the Borrower on and
after the Closing Date.

         "GUARANTOR SECURITY AGREEMENT" means a Guarantor Security Agreement in
the form of EXHIBIT K hereto, together with all extensions, renewals,
amendments, supplements, substitutions and replacements thereof and thereto.

         "GUARANTY AGREEMENT" means a Guaranty Agreement in the form of EXHIBIT
J hereto, together with all extensions, renewals, amendments, supplements,
substitutions and replacements thereof and thereto.

         "INITIAL LOAN BALANCE" is defined in Section 2.7 of this Agreement.

         "INITIAL NOTE" means that certain Second Amended and Restated
Promissory Note dated March 31, 2000 made by the Borrower in favor of PNC Bank,
National Association.

         "INTELLECTUAL PROPERTY" means and includes all of the Borrower's right,
title and interest in all patents, patent applications, copyrights, copyright
applications, trademarks, trademark applications, trade names, tradestyles,
service marks, goodwill, computer information, computer software, source codes
and object codes and trade secrets.

         "ISSUING BANK" means PNC Bank National Association, in its capacity as
the issuer of Letters of Credit hereunder.

         "LAW" means any law (including common law), constitution, statute,
treaty, regulation, rule, ordinance, order, injunction, writ, decree or award of
any Governmental Authority.

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         "LENDERS" is defined in the Preamble to this Agreement.

         "LETTER AGREEMENT" is defined in the definition of "FEE" above.

         "LETTER OF CREDIT" is defined in the Letter of Credit Rider attached
hereto as EXHIBIT I.

         "LETTER OF CREDIT EXPOSURE" is defined in the Letter of Credit Rider.

         "LETTER OF CREDIT RIDER" means the Letter of Credit Rider in the form
attached hereto as EXHIBIT I.

          "LIEN" means any mortgage, pledge, security interest, bailment,
encumbrance, claim, lien, right of set-off or charge of any kind, including any
agreement to give any of the foregoing, any conditional sale or other title
retention agreement and any lease in the nature thereof, and the filing of or
agreement to give any financing statement under the Uniform Commercial Code.

         "LOAN" means, as to any Lender as of any date, the aggregate amount of
all Disbursements made by such Lender under such Lender's Commitment.

         "LOAN DOCUMENTS" is defined in Section 3 of this Agreement.

         "LOAN PARTY" means the Borrower and each Guarantor.

         "MATERIAL" means material in relation to the business, operations,
affairs, financial condition, assets, properties, or prospects of such party.

         "MATERIAL ADVERSE EFFECT" means a material adverse effect on (a) the
business, operations, affairs, financial condition, assets, properties or
prospects of the Borrower or any of its Subsidiaries taken as a whole, or (b)
the ability of any Loan Party to perform any of its obligations under the Loan
Documents, or (c) the enforceability of this Agreement, the Notes or any of the
other Loan Documents.

         "MAXIMUM AVAILABLE LETTER OF CREDIT AMOUNT" means the lesser of (a) (x)
the lesser of (i) the Borrowing Base and (ii) the Revolving Credit Loan Amount,
minus (y) the sum of the aggregate outstanding advances on the Revolving Credit
Loan, and (b) Two Million Five Hundred Thousand Dollars ($2,500,000), each as of
the date of determination.

         "MAXIMUM AVAILABLE REVOLVING CREDIT LOAN AMOUNT" means (i) the lesser
of (A) the Borrowing Base or (B) the Revolving Credit Loan Amount minus (ii) the
aggregate amount of all Letters of Credit Exposure, each as of the date of
determination.

         "NOTES" is defined in Section 2.3(c) of this Agreement.

         "NEGATIVE OPERATING INCOME" is defined as loss from operations plus, to
the extent they have been deducted in determining the loss from operations, the
sum of non-cash expenses including amortization of goodwill, amortization of
intangibles and stock based compensation expenses, less the sum of non-cash
items of income, plus net interest income/expense, as calculated in accordance
with GAAP.

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         "OBLIGATIONS" is defined in Section 3 of this Agreement.

         "PERMITTED ACQUISITIONS" means the acquisition by the Borrower of the
capital stock or all or substantially all of the assets of another entity or
entities for which the cash component of the aggregate consideration (including
cash consideration paid and debt assumed) paid by Borrower, in all such
transactions after the Closing Date, does not exceed Fifteen Million Dollars
($15,000,000) (and specifically exclusive of any earn-out amounts).

         "PERMITTED INDEBTEDNESS" means the indebtedness permitted under clauses
(a) through (h) of Section 7.1 hereof.

         "PERMITTED LIENS" means Liens (a) for current taxes and assessments not
yet due and payable, (b), if any, reflected on or in the notes to the most
recent balance sheet of the Borrower delivered to the Lenders on or prior to the
Closing Date, (c), if any, specified on the SCHEDULE 5.6, (d) securing the
payment of taxes or charges of Governmental Authorities not yet delinquent or
being contested in good faith by appropriate proceeding, for which adequate
reserves are maintained in accordance with GAAP; (e) securing claims or demands
of materialmen, mechanics, carriers, warehousemen, landlords and other like
Persons, imposed without action of such parties, provided that the payment
thereof is not yet past due or for which adequate reserves are maintained in
accordance with GAAP; (f) incurred or deposits made in the ordinary course of
Borrower's business in connection with worker's compensation, unemployment
insurance, social security and other like laws; (g) in the nature of
non-exclusive licenses and sublicenses of the Intellectual Property granted to
Persons in the ordinary course of business; (h) arising from judgments, decrees
or attachments to the extent and only so long as such judgment, decree or
attachment has not caused or resulted in an Event of Default; (i) in favor of
customs and revenue authorities arising as a matter of law to secure payment of
customs duties in connection with the importation of goods; (j) which constitute
rights of set-off of a customary nature or bankers' liens with respect to
amounts on deposit, whether arising by operation of law or by contract, in
connection with arrangements entered into with banks in the ordinary course of
business; (k) in favor of lessors of tangible personal property arising under
operating leases, provided that such Liens are limited to the leased property,
any improvements made thereto and the proceeds thereof; (l) to secure (x)
purchase money security interests, as the that term is defined in the Uniform
Commercial Code, in property that secures the indebtedness that was incurred to
acquire the property or (y) Capitalized Lease Obligations; (m) securing interest
hedge agreements; (n) deposits or other temporary cash investments to secure
trade contracts and operating leases; (o) on real estate consisting of
easements, rights of way, zoning restrictions and restrictions on the use of
real property; or (p) in favor of or approved by the Administrative Agent or the
Required Lenders.

         "PERSON" means an individual, sole proprietorship, corporation,
partnership (general or limited), trust, business trust, limited liability
company, unincorporated organization or association, joint venture, joint-stock
company, Governmental Authority, or any other entity of whatever nature.

         "PNC BANK" means PNC Bank, National Association, a national
association.

         "PNC CAPITAL" is defined in the definition of "FEE" above.

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         "PRIME RATE" means the rate of interest per annum generally announced
by the Administrative Agent from time to time as its prime rate or, if the
Administrative Agent ceases to announce its prime rate or its prime rate
otherwise becomes unavailable for any reason, the prime rate published in the
Wall Street Journal. The Prime Rate is not tied to any external rate or index
and does not necessarily reflect the lowest rate of interest actually charged to
any particular class or category of customers of the Administrative Agent. If
and when the Prime Rate changes, the rate of interest on the Loans bearing
interest at the Prime Rate will change automatically without notice to the
Borrower, effective on the date of any such change.

         "PROFITABILITY" means positive Consolidated net income after taxes,
measured in accordance with GAAP.

         "PROHIBITED TRANSACTION" is defined in Section 5.9 of this Agreement.

         "PURCHASING LENDER" is defined in Section 10.7(a) of this Agreement.

         "QUALIFIED ACCOUNTS" shall mean Accounts which meet and at all times
continue to meet the following requirements or are otherwise satisfactory to the
Administrative Agent and the Required Lenders; provided, however, amounts owing
thereunder shall be subject to the specified limitations herein:

                  (a) It complies with all requirements of applicable Law,
including, without limitation, if applicable, usury Laws, the Federal Truth in
Lending Act, the Federal Consumer Credit Protection Act, the Fair Credit Billing
Act, and Regulation Z of the Board of Governors of the Federal Reserve System;

                  (b) It was not originated in any jurisdiction the Laws of
which, nor is it subject to any Law the effect of which, would make it or the
grant of a security interest in the Account to the Administrative Agent
unlawful, invalid or unenforceable;

                  (c) It was originated by the Borrower in connection with (i) a
sale of goods by the Borrower in the ordinary course of business, which sale has
been consummated and the goods sold therein delivered in accordance with the
terms of such sale, or (ii) the rendering of services by the Borrower in the
ordinary course of business, which services have been fully rendered, in each
case, such that the performance of the related contract has been completed by
the Borrower and by all parties other than the Account Debtor to the extent
necessary thereunder to enforce payment of the Account against the Account
Debtor;

                  (d) It arises from an enforceable contract and is evidenced by
a written invoice or other documentation in form and substance satisfactory to
the Administrative Agent;

                  (e) It does not arise out of a contract with, or order from,
an Account Debtor that, by its terms, forbids or makes void or unenforceable the
grant of the security interest by the Borrower to the Administrative Agent in
and to the Account arising with respect thereto;

                  (f) The title of the Borrower to the Account and, except as to
the Account Debtor, to any related goods is absolute and is not subject to any
Lien except Liens in favor of the Administrative Agent or any Lender;

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                  (g) It or the contract giving rise to it provides for payment
in United States Dollars by the Account Debtor;

                  (h) The amounts owing under it are not less than the amounts
represented by the Borrower to be owing under it in the applicable Borrowing
Base Certificate;

                  (i) Any portion of an Account for which income has not yet
been earned or which constitutes unearned discount, service charges or deferred
interest shall be ineligible and all such amounts shall be deducted in the
computing the amounts represented by the Borrower to be owing under it in the
applicable Borrowing Base Certificate;

                  (j) It is not subject to any defense, claim of reduction,
counterclaim, set-off, recoupment, or any dispute or claim for credits,
allowances or adjustments by the Account Debtor because of returned, inferior,
damaged goods or unsatisfactory service, or for any other reason;

                  (k) The goods the sale of which gave rise to the Account were
shipped or delivered or provided to the Account Debtor on an absolute sale basis
and not (i) on a bill and hold sale basis, (ii) a consignment sale basis, (iii)
a guaranteed sale basis, (iv) a sale or return basis, or (v) on the basis of any
other similar terms making the Account Debtor's payment obligations conditional;

                  (l) No default exists under the Account by any party thereto,
and all rights and remedies of the Borrower under the Account are freely
assignable by the Borrower;

                  (m) It has not been outstanding for more than ninety 90
calendar days past the invoice date;

                  (n) It shall be ineligible if 50% or more, in amount, of the
Accounts of the Account Debtor and its Affiliates are more than ninety 90
calendar days past due from the date of original invoice therefor;

                  (o) If, when added to the outstanding Accounts of the Account
Debtor and its Affiliates, such Accounts in the aggregate would exceed 10% (the
"AGGREGATE LIMIT") of all of the Borrower's Accounts, then only that portion of
such Accounts up to but not exceeding the Aggregate Limit shall be eligible;

                  (p) The Borrower has not received any note, trade acceptance,
draft, chattel paper or other instrument with respect to, or in payment of, the
Account, unless, if any such instrument has been received, the Borrower
immediately notifies the Administrative Agent and, at the Administrative Agent's
request, endorses or assigns and delivers such instrument to the Administrative
Agent;

                  (q) The Borrower has not received any notice of (i) the death
of the Account Debtor or a partner thereof; (ii) the filing by or against the
Account Debtor of any proceeding in bankruptcy, receivership, insolvency,
reorganization, liquidation, conservatorship or any similar proceeding, or (iii)
any assignment by the Account Debtor for the benefit of creditors. Upon

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receipt by the Borrower of any such notice, it will give the Administrative
Agent prompt written notice thereof;

                  (r) The Account Debtor is not an Affiliate of the Borrower;

                  (s) The Account Debtor is domiciled in the United States of
America;

                  (t) It shall be ineligible if the Account Debtor is a
Governmental Authority, unless the Borrower shall have taken all actions
deemed necessary by the Administrative Agent in order to perfect the
Administrative Agent's security interest therein, including but not limited
to any notices or filings required under the Federal Assignment of Claims Act
of 1940, as amended, or other applicable Laws; and

                  (u) The Administrative Agent has not reasonably deemed such
Account ineligible because of uncertainty about the creditworthiness of the
Account Debtor (including, without limitation, unsatisfactory past
experiences of the Borrower or the Administrative Agent with the Account
Debtor or unsatisfactory reputation of the Account Debtor) or because the
Administrative Agent otherwise makes a reasonable determination that the
collateral value of the Account to the Administrative Agent and the Lenders
is impaired or that the Administrative Agent's and the Lenders' ability to
realize such value is insecure.

In the case of any dispute about whether an Account is or has ceased to be a
Qualified Account, the decision of the Administrative Agent shall be final.

         "QUICK RATIO" means Current Assets divided by Current Liabilities.

         "REINVESTMENT ACCOUNT" is defined in Section 2.5(c) of this Agreement.

         "REGISTER" is defined in Section 10.7(b) of this Agreement.

         "REPORTABLE EVENT" is defined in Section 5.9 of this Agreement.

         "REQUIRED LENDERS" means, as of a particular day (i) prior to the
termination of the Commitments, the Lenders whose Commitment Percentages
aggregate at least sixty-six and two-thirds (66-2/3%) of the aggregate
Commitment Percentages of all the Lenders and (ii) after the termination of the
Commitments, the Lenders whose Loans outstanding aggregate at least sixty-six
and two-thirds percent (66-2/3%) of the aggregate principal amount of the Loans
at the particular time outstanding; provided, however, that if the foregoing
would designate only one Required Lender then "Required Lenders" shall mean that
Lender and at least one other Lender.

         "REVOLVING CREDIT LOAN" is defined in Section 2.1(a) of this Agreement.

         "RESERVE ACCOUNT" is defined in Section 2.5(c) of this Agreement.

         "REVOLVING CREDIT LOAN ADVANCE REQUEST" is defined in Section 2.6(a) of
this Agreement.

         "REVOLVING CREDIT LOAN AMOUNT" is defined in Section 2.1(a) of this
Agreement.

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<PAGE>

         "REVOLVING CREDIT LOAN COMMITMENT" means as to each Lender, the
obligation of such Lender to make Revolving Credit Loans available to the
Borrower pursuant to Section 2.1(a) in an aggregate amount not to exceed such
Lender's Commitment Percentage of the Revolving Credit Loan Amount.

         "REVOLVING CREDIT LOAN MATURITY DATE" is defined in Section 2.4(a) of
this Agreement.

         "REVOLVING CREDIT LOAN NOTE" is defined in Section 2.3(a) of this
Agreement.

         "SECOND EQUIPMENT LOAN ADVANCE REQUEST" is defined in Section 2.6(b) of
this Agreement.

         "SECOND EQUIPMENT LOAN NOTE" is defined in Section 2.3(b) of this
Agreement.

         "SECOND EQUIPMENT LOAN NOTE AMOUNT" is defined in Section 2.2(b) of
this Agreement.

         "SECOND EQUIPMENT LOAN NOTE CONVERSION DATE" is defined in Section
2.4(b) of this Agreement.

         "SECURITY DOCUMENTS" is defined in Section 3 of this Agreement.

         "STATED AMOUNT" means the amount available to beneficiaries of Letters
of Credit for one or more drawings thereunder as such amount is increased,
reduced or reinstated from time to time in accordance with the provisions of any
Letter of Credit and this Agreement.

         "SUBORDINATED INDEBTEDNESS" means any debt incurred by the Borrower
that is subordinated to the debt owing by the Borrower to the Lenders on terms
reasonably acceptable to the Lenders (and identified as being such by the
Borrower and the Lenders).

         "SUBSIDIARY" means either (i) any corporation more than 50% of the
outstanding voting securities of which shall at the time be owned or controlled,
directly or indirectly, by the affected Person or one or more Subsidiaries of
such Person, or by the affected Person and one or more Subsidiaries, or (ii) any
other Person which is so owned or controlled.

         "TANGIBLE NET WORTH" means preferred and common shareholders' equity of
the Borrower as shown in the Financial Statements of the Borrower delivered to
the Lenders pursuant to Sections 6.2 and 6.3 of this Agreement, minus good will
and other intangible assets of the Borrower determined in accordance with GAAP.

         "TERM LOAN COMMITMENT" means as to each Lender, the obligation of such
Lender to make Equipment Loans available to the Borrower pursuant to Section
2.1(b) in an aggregate amount not to exceed such Lender's Commitment Percentage
of the Equipment Loan Amount.

         "TOTAL LIABILITIES" means at any date as of which the amount thereof
shall be determined, all obligations that should, in accordance with GAAP be
classified as liabilities on the Consolidated balance sheet of Borrower,
including in any event all Indebtedness (less any Subordinated Indebtedness).

                                       12

<PAGE>

         "TRANSFEROR LENDER" is defined in Section 10.7(a) of this Agreement.

SECTION 2. LOAN FACILITIES; AMOUNTS; INTEREST RATES; ETC.

         SECTION 2.1 FACILITIES AND AMOUNTS; LETTERS OF CREDIT.

                  (a) REVOLVING CREDIT LOAN. The Lenders will make from time to
time revolving credit loans (the "REVOLVING CREDIT LOAN") to the Borrower in the
maximum aggregate principal amount not to exceed $10,000,000.00 (the "REVOLVING
CREDIT LOAN AMOUNT") at any one time outstanding. The proceeds of the Revolving
Credit Loan will be advanced to and repaid by the Borrower in accordance with
the terms and conditions set forth hereafter, may be borrowed, repaid and
borrowed again at any time prior to the Revolving Credit Loan Maturity Date and
will be used for general corporate purposes of the Borrower, including without
limitation, working capital and Permitted Acquisitions.

                  (b) EQUIPMENT LOAN. The Lenders will from time to time make
equipment loans (the "EQUIPMENT LOAN") to the Borrower in the maximum aggregate
principal amount of $6,318,394.64 (the "EQUIPMENT LOAN AMOUNT"), the proceeds of
which will be advanced to and repaid by the Borrower in accordance with the
terms and conditions set forth hereafter and which may not be borrowed again
after being repaid by the Borrower. The Borrower will use the proceeds of the
Equipment Loan to finance its purchases of Eligible Equipment.

                  (c) LETTERS OF CREDIT. The Issuing Bank will issue one or more
Letters of Credit for the account of the Borrower or a Subsidiary of the
Borrower in accordance with the terms and conditions set forth in the Letter of
Credit Rider attached hereto as EXHIBIT I and incorporated herein by reference;
provided, however, at no time will the aggregate amount of Letters of Credit
Exposure outstanding exceed the Maximum Available Letter of Credit Amount.

         SECTION 2.2 AVAILABILITY.

                  (a) REVOLVING CREDIT LOAN. The Lenders will advance the
proceeds of the Revolving Credit Loan to the Borrower from time to time, as
requested by the Borrower, prior to the Revolving Credit Loan Maturity Date;
provided, however, the aggregate outstanding advances on the Revolving Credit
Loan shall not at any time exceed the Maximum Available Revolving Credit Loan
Amount. The Borrower shall deliver a Borrowing Base Certificate to the
Administrative Agent not less than 5 calendar days prior to the date of each
requested advance under the Revolving Credit Loan.

                  (b) BORROWING BASE. The Borrower may borrow, repay and borrow
again from time to time under the Revolving Credit Loan in principal amounts
outstanding at any one time up to but not exceeding an amount equal to the
Maximum Available Credit Loan Amount. If at any time the aggregate principal
amount of indebtedness outstanding under the Revolving Credit Loan exceeds the
Maximum Available Credit Loan Amount, then the Borrower shall immediately prepay
principal to the Lenders in immediately available funds to reduce aggregate
principal amount outstanding thereon, to an amount equal to the Maximum
Available Credit Loan Amount, or if zero, then cash collateralize an amount of
the Letter of Credit Exposure sufficient to achieve compliance; provided,
however, the Borrower shall not be required to prepay principal in the amount of
any such excess resulting from a return of goods by an

                                       13

<PAGE>

Account Debtor such that the Account represented thereby ceases to constitute a
Qualified Account, if the Account Debtor accepts replacement goods within 30
calendar days after the date of such return or if, during such 30-day period,
the Maximum Available Credit Loan Amount again exceeds the aggregate principal
amount then outstanding under the Revolving Credit Loan as evidenced by an
updated Borrowing Base Certificate delivered to the Administrative Agent.

                  (c) EQUIPMENT LOAN. The Lenders will advance the proceeds of
the Equipment Loan to the Borrower from time to time, as requested by the
Borrower, prior to the Second Equipment Loan Note Conversion Date. The Lenders
will make up to but not more than two advances of the proceeds of the Equipment
Loan that in the aggregate shall not, together with all other amounts advanced
under the Equipment Loan, exceed the Equipment Loan Amount, to finance up to 90%
of the invoice amount (less invoiced charges for installation, delivery and
taxes) of Eligible Equipment purchased by the Borrower prior to the close of
business on the Business Day immediately preceding the First Equipment Loan Note
Conversion Date, which advances shall each become principal under the First
Equipment Loan Note and shall collectively be referred to as the "FIRST
EQUIPMENT LOAN NOTE AMOUNT". The Lenders will make up to but not more than two
advances of the proceeds of the Equipment Loan that in the aggregate shall not,
together with all other amounts advanced under the Equipment Loan, exceed the
Equipment Loan Amount, to finance up to 90% of the invoice amount (less invoiced
charges for installation, delivery and taxes) of Eligible Equipment purchased by
the Borrower during the period commencing on the First Equipment Loan Note
Conversion Date and ending at the close of business on the Business Day
immediately preceding Second Equipment Loan Note Conversion Date, which advances
shall each become principal under the Second Equipment Loan Note and shall
collectively be referred to hereunder as the "SECOND EQUIPMENT LOAN NOTE
AMOUNT".

         SECTION 2.3 NOTES AND LENDERS' RECORDS.

                  (a) REVOLVING CREDIT LOAN. The obligation of the Borrower to
repay the Revolving Credit Loan, together with interest accrued thereon, will be
evidenced by the several promissory notes, each substantially in the form of
EXHIBIT A hereto, made payable by the Borrower to the order of a Lender in the
maximum amount of such Lender's Revolving Credit Loan Commitment. (the
"REVOLVING CREDIT LOAN NOTES"). The principal amount actually due and owing to a
Lender at any time under its Revolving Credit Loan Note shall be the then
aggregate unpaid principal amount of all Revolving Credit Loans made by such
Lender as shown on the Loan Account established and maintained by such Lender in
accordance with Section 2.3(c).

                  (b) EQUIPMENT LOAN. The obligation of the Borrower to repay
the First Equipment Loan Note Amount, together with interest thereon, will be
evidenced by the several convertible-term promissory notes, each substantially
in the form of EXHIBIT B hereto, made payable by the Borrower to the order of a
Lender in the maximum amount of such Lender's Term Loan Commitment, which notes
shall have an aggregate face amount equal to the First Equipment Loan Note
Amount (the "FIRST EQUIPMENT LOAN NOTES"). The obligation of the Borrower to
repay the Second Equipment Loan Note Amount, together with interest thereon,
shall be evidenced by the several convertible-term promissory notes, each
substantially in the form of EXHIBIT B hereto, made payable by the Borrower to
the order of a Lender in the

                                       14

<PAGE>

maximum amount of such Lender's Term Loan Commitment, which notes shall have an
aggregate face amount equal to the Second Equipment Loan Note Amount (the
"SECOND EQUIPMENT LOAN NOTES").

                  (c) LENDERS' RECORDS. All Loans evidenced by the Revolving
Credit Loan Notes, the First Equipment Loan Notes, the Second Equipment Loan
Notes, the Initial Notes (together, the "NOTES") and all payments of the
principal thereof and interest thereon and the respective dates thereof shall be
recorded in the books and records of the Lenders; provided, however, that the
failure of the Lenders to make such a notation or any error in such a notation
shall not affect the obligations of the Borrower under the Notes.

         SECTION 2.4 METHOD OF PAYMENTS; NO SET-OFFS BY BORROWER. All payments
of principal, interest, Fees, costs and other amounts due hereunder and under
the other Loan Documents shall be made by the Borrower to the Administrative
Agent at the Administrative Agent's principal office at One PNC Plaza, 249 Fifth
Avenue, Pittsburgh Pennsylvania 15222 not later than 2:00 p.m. (Eastern time) on
the due date. All such payments shall be made in immediately available funds
delivered by the Borrower to the Administrative Agent. All sums payable by
Borrower pursuant to this Agreement, the Notes or any of the other Loan
Documents shall be payable without notice or demand and shall be payable in
United States Dollars without set-off or reduction of any manner whatsoever.

         SECTION 2.5 MATURITY AND CONVERSION DATES; REQUIRED PAYMENTS.

                  (a) REVOLVING CREDIT LOAN. The Revolving Credit Loan will
mature on May 13,(1) 2002 (the "REVOLVING CREDIT LOAN MATURITY DATE"), at which
time all principal and unpaid interest under the Revolving Credit Loan Notes
will be due and payable. Interest accrued on the principal amount of the
Revolving Credit Loans shall be due and payable on the dates set forth in the
Revolving Credit Loan Notes.

                  (b) EQUIPMENT LOAN.

                           (i) Prior to November 14(2), 2001 (the "FIRST
EQUIPMENT LOAN NOTE CONVERSION DATE"), interest accrued on the principal
amount of the First Equipment Loan Note shall be due and payable on the first
day of June, 2001 and on the first day of each month thereafter until the
First Equipment Loan Note Conversation Date, when all accrued interest shall
be due and payable. On the First Equipment Loan Note Conversation Date, the
principal amount then outstanding under the First Equipment Loan Note shall
convert to a single term loan that will be amortized in equal monthly
installments of principal over a period of 30 months, with payments due on
the first day of each month commencing December 1, 2001, and with payments of
accrued interest due on the first day of each quarter commencing on January 1,
2002 and continuing on the first day of each January, April, July and
October thereafter.

                           (ii) Prior to May 13(3), 2002 (the "SECOND EQUIPMENT
LOAN CONVERSION DATE"), interest accrued on the principal amount of the Second
Equipment Loan Note shall be

-----------------------
(1) Insert the date 364 days after the Closing Date.
(2) Insert the date 6 months after the Closing Date.
(3) Insert the date 364 days after the Closing Date

                                       15

<PAGE>

due and payable on the first day of October and on the first day of each month
thereafter until the Second Equipment Loan Conversion Date, when all accrued
interest shall be due and payable. On the Second Equipment Loan Note Conversion
Date, the principal amount then outstanding under the Second Equipment Loan Note
shall convert to a single term loan that will be amortized in equal monthly
installments of principal over a period of 30 months, with payments due on the
first day of each month commencing June 1, 2002, and with payments of accrued
interest due on the first day of each quarter commencing on July 1, 2002 and
continuing on the first day of each October, January, April and July thereafter.

                  (c) MANDATORY PREPAYMENT OF LOANS. The Borrower shall prepay
principal amounts outstanding under the Loans within five Business Days of the
Borrower's receipt thereof, in an amount equal to one hundred percent (100%) of
the cash proceeds (net of reasonable transaction costs (including commissions,
placement agent's discounts, reserves for liabilities, escrows and purchase
price adjustments and taxes) from (A) non-ordinary course sales of assets or
other dispositions of property owned by the Borrower, (B) the issuance of equity
or equity-linked products of the Borrower, (C) the issuance of debt other than
Permitted Indebtedness, and (D) insurance and condemnation recoveries. Mandatory
prepayments shall be applied to reduce the Equipment Loans, in the inverse order
of their maturities, and then to the Revolving Credit Loans.

         Notwithstanding the foregoing, if in connection with an asset sale the
Borrower notifies the Administrative Agent in writing that it intends to use the
net cash proceeds of such asset sale to acquire productive assets to be used by
the Borrower in its business, the Borrower shall not be required to make a
prepayment under this Section 2.5(c) until the day that is 90 days after the day
on which such net cash proceeds were received and the amount of such prepayment
shall be the excess, if any, of such net cash proceeds over the amount thereof
so reinvested prior to such 90th day. Any net cash proceeds that are the subject
of a notice of the nature referred to in the preceding sentence shall be
deposited in an interest-bearing account (the "REINVESTMENT ACCOUNT") which
shall be maintained by the Borrower with the Administrative Agent, and which
shall be under the sole dominion and control of the Administrative Agent. During
a period of 90 days from the date of receipt of the applicable net cash
proceeds, the Administrative Agent shall release to the Borrower or its designee
amounts in such Reinvestment Account from time to time as the Borrower provides
evidence satisfactory to the Administrative Agent of the purchase of productive
assets of the kind then used or usable in the business of the Borrower, and on
the Business Day following the 90th day of such 90-day period, or upon the
earlier occurrence of an Event of Default, the Administrative Agent shall apply
all amounts remaining in the Reinvestment Account in the manner set forth above.

                  Notwithstanding the foregoing, if in connection with an
insurance or condemnation recovery the Borrower notifies the Administrative
Agent in writing that it intends to use any portion (the "ASSET RESTORATION
AMOUNT") of the net cash proceeds of such recovery to repair or replace
productive assets of a kind then used or usable by the Borrower in its business,
the Borrower shall not be required to make a prepayment under this Section
2.5(c) on the Asset Restoration Amount until the day that is 90 days after the
day on which such net cash proceeds were received and the amount of such
prepayment shall be the excess, if any, of such Asset Restoration Amount over
the amount thereof used by the Borrower for repairs or replacements prior to
such 90th day. The Asset Restoration Amount shall be deposited in an

                                       16

<PAGE>

interest-bearing account (the "RESERVE ACCOUNT") which shall be maintained by
the Borrower with the Administrative Agent, and which shall be under the sole
dominion and control of the Administrative Agent. During a period of 90 days
from the date of receipt of the applicable net cash proceeds, the Administrative
Agent shall release to the Borrower or its designee amounts in such Reserve
Account from time to time as the Borrower provides evidence satisfactory to the
Administrative Agent of the repair or replacement of productive assets of the
kind then used or usable in the business of the Borrower, and on the Business
Day following the 90th day of such 90-day period, or upon the earlier occurrence
of an Event of Default, the Administrative Agent shall apply all amounts
remaining in the Reserve Account in the manner set forth above.

                  (d) VOLUNTARY PREPAYMENT OF LOANS. The Borrower may
voluntarily prepay any Loans without penalty or premium.

                  (e) VOLUNTARY REDUCTIONS OF COMMITMENT.

                           (i) VOLUNTARY REDUCTIONS. Upon two Business Days'
written notice to the Administrative Agent, the Borrower may from time to time
voluntarily permanently reduce the Revolving Credit Loan Commitments. Each
voluntary reduction shall be in a minimum amount of $2,000,000 or, if greater
than $2,000,000, in integral multiples of $1,000,000.

                           (ii) EFFECT OF REDUCTIONS. Simultaneously with each
voluntary permanent reduction, the Borrower shall make a payment of the
outstanding Revolving Credit Loans equal to the excess, if any, of (A) the
aggregate principal amount of the outstanding Revolving Credit Loans and the
Stated Amount of any Letters of Credit over (B) the Revolving Credit Loan
Commitments, as so reduced. Notice of a reduction, once given, shall be
irrevocable. All such reductions shall be without penalty or premium.

         SECTION 2.6 INTEREST RATES AND COMPUTATION.

                  (a) REVOLVING CREDIT LOAN. Principal amounts outstanding under
the Revolving Credit Loan shall bear interest at a rate per annum equal to the
Base Rate, but in no event greater than the maximum rate permitted by law.

                  (b) EQUIPMENT LOAN. Principal amounts outstanding under the
Equipment Loan shall bear interest at a rate per annum equal to the sum of the
Base Rate plus 50 basis points (0.50%), but in no event greater than the maximum
rate permitted by law.

                  (c) COMPUTING INTEREST. Interest will be calculated on the
basis of a year of 365 or 366-days, as the case may be, for the actual number of
days elapsed, and will be payable in arrears.

         SECTION 2.7 LOAN REQUESTS.

                  (a) REVOLVING CREDIT LOAN. Subject to the limitations and
conditions set forth elsewhere in this Agreement, the Borrower may from time to
time prior to the Revolving Credit Loan Maturity Date request the Administrative
Agent to make a Disbursement under the Revolving Credit Loan by making a
telephonic request to the Administrative Agent, not later

                                       17

<PAGE>

than 11:00 a.m. Eastern Standard Time on the Business Day that the Disbursement
is to be made (each a "REVOLVING CREDIT LOAN ADVANCE REQUEST"), which shall be
immediately confirmed in writing in the form attached hereto as EXHIBIT C and
delivered by mail, facsimile or telex, it being understood that the
Administrative Agent may rely on the authority of any individual identifying
himself or herself as an Authorized Officer of the Borrower making a telephonic
request without the necessity of receipt of such written confirmation. Each
Revolving Loan Advance Request shall be irrevocable and shall specify (i) the
proposed Borrowing Date, and (ii) the aggregate amount of the requested loan
advance, which shall not exceed the Maximum Available Revolving Credit Loan
Amount.

                  (b) EQUIPMENT LOANS.

                           (i) FIRST EQUIPMENT LOAN NOTE. Subject to the
limitations and conditions set forth elsewhere in this Agreement, the Borrower
may from time to time prior to the First Equipment Loan Note Conversion Date
request the Administrative Agent to make a Disbursement under the First
Equipment Loan Note by delivering by mail, facsimile or telex a written request
in the form attached hereto as EXHIBIT D (each a "FIRST EQUIPMENT LOAN ADVANCE
REQUEST"), accompanied by supporting invoices, to the Administrative Agent not
less than one (1) Business Day prior to the date of the proposed borrowing.

                           (ii) SECOND EQUIPMENT LOAN NOTE. Subject to the
limitations and conditions set forth elsewhere in this Agreement, the Borrower
may from time to time prior to the Second Equipment Loan Note Conversion Date
request the Administrative Agent to make a Disbursement under the Second
Equipment Loan Note by delivering by mail, facsimile or telex a written request
in the form attached hereto as EXHIBIT E (each a "SECOND EQUIPMENT LOAN ADVANCE
REQUEST"), accompanied by supporting invoices, to the Administrative Agent not
less than one (1) Business Day prior to the date of the proposed borrowing.

                  (c) DISBURSEMENTS BY ADMINISTRATIVE AGENT.

                           (i) The Administrative Agent shall promptly notify
each Lender of each request for a Disbursement by the Borrower.

                           (ii) Not later than 2:00 p.m. Eastern Standard Time
on the Borrowing Date, each Lender shall make available to the Administrative
Agent in immediately available funds at the principal office of the
Administrative Agent such Lender's pro-rata share of the Disbursements, for the
account of the Borrower. No Lender's obligation to make a Disbursement shall be
affected by any other Lender's failure to make funds available for the same or
any other Disbursement. Nothing in this Subsection 2.6(c) shall be deemed to
relieve any Lender from its obligation to fulfill its obligations to the
Borrower under this Agreement or to prejudice any rights which the Borrower may
have against any Lender as a result of any default by such Lender under this
Agreement.

         SECTION 2.8 OBLIGATIONS UNDER THE ORIGINAL LOAN AGREEMENT. The parties
hereto hereby acknowledge and agree that (a) as of the date hereof there are no
Obligations (as such terms are defined in the Original Loan Agreement)
outstanding under the Revolving Credit (as defined in the Original Loan
Agreement), (b) Obligations in the amount of $2,439,649 (the

                                       18

<PAGE>

"INITIAL LOAN BALANCE") are outstanding under the Equipment Loan (as defined in
the Original Loan Agreement) as of the date hereof, and such Initial Loan
Balance (i) shall be deemed to be Equipment Loans hereunder and shall be
included in determining availability under the Equipment Loan (but not the
number of advances), (ii) shall be evidenced by, and continue to bear interest
and amortize at the rates and in the manner set forth in the Initial Note as
amended and restated contemporaneously herewith, and (iii) shall otherwise be
subject to the terms and conditions hereof, including without limitation, the
provisions of Section 8 hereof, and of the other Loan Documents, and (c) all
Letters of Credit (as defined in the Original Loan Agreement) shall be deemed to
be Letters of Credit outstanding hereunder, and such Letters of Credit shall
hereafter be subject to the terms and conditions hereof and of the other Loan
Documents. PNC Bank has, effective on the date hereof, assigned to the other
Lenders their respective Commitment Percentage of PNC Bank's rights and
obligations under the Initial Note.

         SECTION 2.9 COMMITMENT FEE. Beginning on June 30, 2001, and continuing
on the last day of each calendar quarter thereafter until the earlier of the
Revolving Credit Loan Maturity Date or the date on which the Revolving Credit
Loan Commitments shall be permanently terminated and on the Revolving Credit
Loan Maturity Date, the Borrower shall pay a Commitment Fee to the
Administrative Agent for the benefit of the Lenders, in arrears, at an annual
rate of thirty-seven and one-half basis points (0.375%) on the average daily
unused portion of the Revolving Credit Loan Commitment during the calendar
quarter or period then ended. The Commitment Fee shall be computed on the basis
of the year of 365 or 366 days, as the case may be, and paid on the actual
number of days elapsed. The Commitment Fee shall be calculated from the Closing
Date.

SECTION 3. SECURITY.

         To secure repayment of the Loans, and to evidence certain restrictions
on the Borrower's and the Guarantors' ability to pledge certain of their assets,
the Borrower will on the Closing Date execute and deliver to the Administrative
Agent the Amended and Restated Security Agreement between the Borrower and the
Administrative Agent of even date herewith (including any Riders thereto), and
the Pledge Agreement between the Borrower and the Administrative Agent of even
date herewith (including any Riders thereto), and each Guarantor will on the
Closing Date execute and deliver to the Administrative Agent a Guarantor
Security Agreement (such Amended and Restated Security Agreement, Pledge
Agreement and Guarantor Security Agreements shall hereinafter be collectively
referred to as the "SECURITY DOCUMENTS"), which Security Documents shall secure
repayment of the Loans, the Notes, and all other loans, advances, debts,
liabilities, obligations, covenants and duties owing by the Borrower to the
Administrative Agent, the Lenders and the Issuing Bank which may arise out of or
in connection with this Agreement, the Notes or the other Loan Documents,
whether direct or indirect (including those acquired by assignment or
participation), absolute or contingent, joint or several, due or to become due,
now existing or hereafter arising, and any amendments, extensions, renewals or
increases and all reasonable costs and expenses of the Administrative Agent, the
Lenders and the Issuing Bank incurred in the documentation, negotiation,
modification, enforcement, collection or otherwise in connection with any of the
foregoing, including but not limited to reasonable attorneys' fees and expenses
(hereinafter referred to collectively as the "OBLIGATIONS"). Unless expressly
provided to the contrary in documentation for any other loan or loans, it is the
express intent of the Borrower, Administrative Agent, the

                                       19

<PAGE>

Lenders and the Issuing Bank that all Obligations, including those included in
the Loans, be cross-collateralized and cross-defaulted, such that collateral
securing any of the Obligations shall secure repayment of all Obligations and a
default under any Obligation shall be a default under all Obligations. This
Agreement (including the Addendum, the Riders and the Schedules hereto), the
Notes, the Security Documents, the Guaranty Agreements, and all other documents
executed and delivered in connection herewith or related hereto are collectively
referred to as the "LOAN DOCUMENTS."

SECTION 4. CONDITIONS TO MAKING ADVANCES.

         SECTION 4.1 ALL LOANS AND LETTERS OF CREDIT. The obligation of the
Lenders to make each Loan and the Issuing Bank to issue each Letter of Credit is
subject to the satisfaction of each of the following conditions precedent:

                  (a) REQUEST FOR LOAN OR LETTER OF CREDIT. Receipt by (i) the
Administrative Agent, as to each Loan, of a request in accordance with the
requirements of Section 2.6 and (ii) the Issuing Bank, as to each Letter of
Credit, of a request in accordance with the Letter of Credit Rider.

                  (b) NO DEFAULT OR EVENT OF DEFAULT. The Borrower shall have
performed and complied with all agreements and conditions herein required to be
performed or complied with by it prior to any Loan or Letter of Credit being
made or issued and, at the time such Loan or Letter of Credit is made or as a
result of making such Loan or issuing such Letter of Credit, no Default or Event
of Default has occurred and is continuing or will be caused by the making of
such Loan or issuing such Letter of Credit.

                  (c) REPRESENTATIONS CORRECT. The representations and
warranties contained in Section 5 hereof and otherwise made in writing by or on
behalf of the Borrower in connection with the transactions contemplated by the
Loan Documents shall be (i) correct in all material respects when made and (ii)
correct in all material respects at the time of each Loan (except to the extent
of changes resulting from transactions contemplated by or permitted by this
Agreement or the other Loan Documents and changes occurring in the ordinary
course of business that singly or in the aggregate are not materially adverse
and to the extent that such representations and warranties relate expressly to
an earlier date).

                  (d) NO MATERIAL ADVERSE EFFECT. At the time of making such
Loan or issuing such Letter of Credit, no Material Adverse Effect has occurred
and is continuing.

         Each request for a Loan or a Letter of Credit, whether made orally or
in writing, shall be deemed to be, as of the time made, a representation and
warranty by the Borrower as to the accuracy of the matters set forth in Sections
4.1(b), 4.1(c) and 4.1(d).

         SECTION 4.2 INITIAL LOAN. The obligation of the Lenders to make the
first Loan is subject to the satisfaction of each of the following conditions
precedent, each of which must be satisfactory to the Administrative Agent, the
Lenders and the Issuing Bank, in addition to the applicable conditions precedent
set forth in Section 4.1:

                                       20

<PAGE>

                  (a) LOAN AGREEMENT. Receipt by the Administrative Agent of
fully executed counterparts of this Agreement.

                  (b) SCHEDULES TO LOAN AGREEMENT; OTHER LOAN DOCUMENTS. Receipt
by the Administrative Agent of all schedules to this Agreement and the other
Loan Documents prepared by the Borrower or any Guarantor, in form and substance
satisfactory to the Administrative Agent.

                  (c) NOTES. Receipt by the Administrative Agent of each
Revolving Credit Note and Equipment Loan Note executed by the Borrower payable
to the applicable Lender in the amount of such Lender's Commitment.

                  (d) GUARANTY AGREEMENTS. Receipt by the Administrative Agent
of Guaranty Agreements executed by each of the Guarantors.

                  (e) CORPORATE DOCUMENTS FOR BORROWER. Receipt by the
Administrative Agent of the following corporate documents for the Borrower:

                           (i) a copy of its certificate of incorporation,
certified as true and correct by the Secretary of the State of Delaware not more
than twenty (20) days prior to the date hereof;

                           (ii) resolutions of the board of directors, in form
and substance reasonably satisfactory to the Administrative Agent, authorizing
the execution of the Loan Documents to be executed by the Borrower and the
performance by the Borrower pursuant thereto, certified by the secretary of the
Borrower as being true, correct, complete and in effect;

                           (iii) a copy of the by-laws and all amendments
thereto, certified by the secretary of the Borrower as being true, correct,
complete and in effect; and

                           (iv) an incumbency certificate for the Borrower,
showing the names of the Authorized Officers of the Borrower authorized to
execute this Agreement and any of the Loan Documents on behalf of the Borrower,
their titles and containing their true signatures.

                  (f) CORPORATE DOCUMENTS FOR GUARANTORS. Receipt by the
Administrative Agent of the following corporate documents for each Guarantor:

                           (i) a copy of its articles or certificate of
incorporation, certified as true and correct by the Secretary of the State of
incorporation or other applicable Governmental Authority not more than twenty
(20) days prior to the date hereof;

                           (ii) resolution of the board of directors, in form
and substance satisfactory to the Administrative Agent, authorizing the
execution of the Loan Documents to which such Guarantor is a party and
performance by such Guarantor pursuant thereto, certified by the secretary of
such Guarantor as being true, correct, complete and in effect;

                                       21

<PAGE>

                           (iii) a copy of the by-laws of such Guarantor and all
amendments thereto, certified by the secretary of such Guarantor as being true,
correct, complete and in effect; and

                           (iv) an incumbency certificate for such Guarantor
showing the names of each Authorized Officer of such Guarantor, their titles and
containing their true signature.

                  (g) CLOSING CERTIFICATE. Receipt by the Administrative Agent
of a certificate substantially in the form of EXHIBIT F, dated as of the Closing
Date and executed by an Authorized Officer of the Borrower, stating that, as of
the Closing Date and after giving effect to the Loans made on such date and
Letters of Credit issued on such date, all of the representations and warranties
made by the Borrower herein and in the other Loan Documents are true and correct
in all material respects; no Default or Event of Default exists; and that since
December 31, 2000, no Material Adverse Effect has occurred.

                  (h) REQUEST FOR INITIAL LOANS. Receipt by the Administrative
Agent of written instructions addressed to the Administrative Agent and executed
by the Borrower, instructing the Administrative Agent as to the disbursement of
the Loans.

                  (i) ADEQUACY OF LEGAL MATTERS. All legal matters incident to
the Loans and the Loan Documents shall be reasonably satisfactory to the
Administrative Agent and its counsel.

                  (j) OPINION OF BORROWER'S LEGAL COUNSEL. Receipt by the
Administrative Agent of a satisfactory opinion of BROBECK, PHLEGER & HARRISON,
LLP, counsel to the Borrower, addressed to the Administrative Agent, the Lenders
and the Issuing Bank. In rendering such opinion, BROBECK, PHLEGER & HARRISON,
LLP may rely (i) on an opinion of Borrower's in-house counsel as to legal
matters other than enforceability and the creation and perfection of security
interests, and (ii) on certificates from officers of the Borrower as to factual
matters on which such opinion is based.

                  (k) FEES. Receipt by the applicable party of any fee payable
by the Borrower to the Administrative Agent, the Lenders, the Issuing Bank or
PNC Capital Markets, Inc. ("PNC CAPITAL") hereunder, under any of the other Loan
Documents, or under that certain letter agreement dated as of February 2, 2001
between PNC Capital and the Borrower (the "LETTER AGREEMENT") including without
limitation the annual Agent's Fee of $15,000 (as defined in the Letter
Agreement), the Arrangement Fee (as defined in the Letter Agreement) and the
Closing Fee.

SECTION 5. REPRESENTATIONS AND WARRANTIES OF THE BORROWER.

         To induce the Administrative Agent, the Lenders and Issuing Bank to
enter into this Agreement and to make the Loans and other extensions of credit
herein provided for, the Borrower makes the following representations and
warranties to the Administrative Agent, the Lenders and the Issuing Bank, all of
which shall survive the execution and delivery of this Agreement and the making
of the Loans and other extensions of credit:

         SECTION 5.1 ORGANIZATION, POWER AND AUTHORITY. The Borrower is a
corporation duly organized, validly existing and in good standing under the laws
of the State of Delaware;

                                       22

<PAGE>

each Subsidiary of the Borrower is duly organized, validly existing and in good
standing under the laws of the state of its incorporation or organization; and
the Borrower and each Subsidiary of the Borrower are in good standing as foreign
corporations authorized to do business in each jurisdiction where the nature of
their respective activities or the ownership of their respective properties
makes such qualification or licensing necessary, other than jurisdictions in
which failure to be so qualified would not, individually or in the aggregate,
have a Material Adverse Effect. The Borrower and each of its Subsidiaries has
the corporate power and authority to own or hold under lease the properties it
purports to own or hold under lease, to transact the business it transacts or
proposes to transact, to execute and deliver the Loan Documents to which it is a
party and to perform the provisions thereof.

         SECTION 5.2 AUTHORIZATION; ETC. The Loan Documents to which each Loan
Party is a party have been duly authorized by all necessary corporate action on
the part of such Loan Party, and each of the Loan Documents constitute a legal,
valid and binding obligation of the Loan Party executing the same, enforceable
against such Loan Party in accordance with its terms except as such
enforceability may be limited by (a) applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting the enforceability of
creditor's rights generally and (b) general principles of equity (regardless of
whether such enforceability is considered in a proceeding in equity or at law).
The individuals who represent themselves to the Administrative Agent, the
Lenders and the Issuing Bank as holding one or more of the following executive
officer positions with the Borrower at the time of making a certification
hereunder shall be authorized to execute and deliver on behalf of the Borrower
the certifications contemplated under this Agreement to be delivered in the
future (each an "AUTHORIZED OFFICER"): Philip J. Balsamo.

         SECTION 5.3 FINANCIAL STATEMENTS. The Borrower has delivered or caused
to be delivered to the Administrative Agent copies of the Consolidated financial
statements of the Borrower. All of said financial statements (including in each
case the related schedules and notes) fairly present in all material respects
the financial condition of the Borrower and its Subsidiaries, on a consolidated
basis, as of the respective dates specified therein and the results of
operations and cash flows for the respective periods so specified and have been
prepared in accordance with GAAP consistently applied throughout the periods
involved except as set forth in the notes thereto (subject, in the case of any
interim financial statements, to the omission of notes thereto and normal
year-end adjustments).

         SECTION 5.4 NO MATERIAL ADVERSE EFFECT. Since the most recent balance
sheet of the Borrower delivered to the Administrative Agent, neither the
Borrower nor any Subsidiary of the Borrower has suffered any damage, destruction
or loss to any Material part of its assets (tangible or intangible), and no
event or circumstance has occurred or exists, which individually or in the
aggregate has resulted or could reasonably be expected to result in a Material
Adverse Effect.

         SECTION 5.5 NO DEFAULTS, VIOLATIONS OR CONFLICTS; ETC. The execution,
delivery and performance by the Loan Parties of the Loan Documents will not (a)
contravene, result in any breach of, or constitute a default under, or result in
the creation of any Lien in respect of any property of any Loan Party under, the
corporate charter, by-laws, or similar constituent documents, or any Material
indenture, mortgage, deed of trust, loan, purchase or credit agreement, lease,
or any other Material agreement or instrument to which any Loan Party is

                                       23

<PAGE>

bound or by which any Loan Party or any of its properties may be bound or
affected, (b) conflict with or result in a breach of any of the terms,
conditions or provisions of any order, judgment, decree, or ruling of any court,
arbitrator or Governmental Authority applicable to any Loan Party, or (c)
violate any provision of any statute or other rule or regulation of any
Governmental Authority applicable to any Loan Party, which default or violation,
individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect.

         SECTION 5.6 CONDITIONS OF AND TITLE TO PROPERTY; LEASES. Except as
disclosed on SCHEDULE 5.6, each Loan Party has good and sufficient title to or a
valid leasehold interest in all of its Material properties, including all such
properties reflected in the most recent balance sheet of the Borrower delivered
to the Administrative Agent or purported to have been acquired by the Borrower
after the date of said balance sheet (except as sold or otherwise disposed of in
the ordinary course of business), in each case free and clear of all Liens,
except for Permitted Liens.

         SECTION 5.7 LITIGATION. Except as disclosed on SCHEDULE 5.7, there are
no actions, suits, proceedings or governmental investigations pending or, to
each Loan Party's knowledge, threatened against any Loan Party, in any court or
before any arbitrator of any kind or before any Governmental Authority, which,
individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect, or which purport to affect the rights and remedies of
the Administrative Agent, the Lenders, or the Issuing Bank pursuant to this
Agreement and the other Loan Documents or which purport to restrain or enjoin
(either temporarily, preliminarily or permanently) the performance by any Loan
Party of any action contemplated by any of the Loan Documents.

         SECTION 5.8 TAX RETURNS. Except as disclosed on SCHEDULE 5.8, each Loan
Party has filed all returns and reports that are required to be filed by it in
connection with any federal, state or local tax, duty or charge levied, assessed
or imposed upon it or its property or withheld by it, including unemployment,
social security and similar taxes and all of such taxes, have been either paid
or adequate reserves or other provision for the payment thereof have been made
in accordance with GAAP, except for any non-filing of returns or reports or any
non-payment of taxes or assessments that could not individually or in the
aggregate reasonably be expected to have a Material Adverse Effect.

         SECTION 5.9 EMPLOYEE BENEFIT PLANS. To the best knowledge of each Loan
Party, each employee benefit plan as to which any Loan Party may have any
liability complies in all material respects with all applicable provisions of
ERISA, including minimum funding requirements, and (a) no Prohibited Transaction
(as defined under ERISA) has occurred with respect to any such plan, (b) no
Reportable Event (as defined under Section 4043 of ERISA) has occurred with
respect to any such plan which would cause the Pension Benefit Guaranty
Corporation to institute proceedings under Section 4042 of ERISA, (c) the
Borrower has not withdrawn from any such plan or initiated steps to do so, and
(d) no steps have been taken to terminate any such plan.

         SECTION 5.10 ENVIRONMENTAL MATTERS. Except as disclosed on SCHEDULE
5.10, each Loan Party is (or, in respect of prior owned or operated real
property, was) in compliance, in all material respects, with all Environmental
Laws, including, without limitation, all Environmental Laws in jurisdictions in
which such Loan Party owns or operates, or had owned or operated, a

                                       24

<PAGE>

facility or site, stores or has stored Collateral, arranges or has arranged for
disposal or treatment of hazardous substances, solid waste or other waste,
accepts or has accepted for transport any hazardous substances, solid waste or
other wastes. No litigation or proceeding arising under, relating to or in
connection with any Environmental Law is pending or, to each Loan Party's
knowledge, threatened against any Loan Party, any real property which any Loan
Party holds or has held an interest or any past or present operation of any Loan
Party that could reasonably be expected to result in a Material Adverse Effect.
To each Loan Party's knowledge, no release, threatened release or disposal of
hazardous waste, solid waste or other wastes is occurring, or to each Loan
Party's knowledge has occurred, on, under or to any real property in which any
Loan Party holds any interest or performs any of its operations, in violation of
any Environmental Law that could reasonably be expected to result in a Material
Adverse Effect. As used in this Section, "LITIGATION OR PROCEEDING" means any
demand, claim notice, suit, suit in equity, action, administrative action,
investigation or inquiry whether brought by a Governmental Authority or other
person; "ENVIRONMENTAL LAWS" means all provisions of laws, statutes, ordinances,
rules, regulations, permits, licenses, judgments, writs, injunctions, decrees,
orders, awards and standards promulgated by any Governmental Authority
concerning health, safety and protection of, or regulation of the discharge of
substances into, the environment; and the terms "REAL PROPERTY," "FACILITY" and
"SITE," when referring to real property, a facility or site leased and not owned
by any Loan Party, shall refer only to the portion of such real property,
facility or site actually or previously leased by any Loan Party.

         SECTION 5.11 INTELLECTUAL PROPERTY. Each Loan Party owns or has a valid
and enforceable right to use all patents and patent rights owned or used by it
as set forth on Schedule 5.11 free and clear of all Liens except Permitted
Liens. To the knowledge each Loan Party, each Loan Party owns or has a valid and
enforceable right to use all trademarks, trade names, service marks, copyrights,
and other Intellectual Property, technology, know-how and processes necessary
for the conduct of its business as currently conducted, in each case, that are
Material, free and clear of all Liens except Permitted Liens. Except for the
patents, trademarks and copyrights described on SCHEDULE 5.11, the Loan Parties
do not own any patents, trademarks or copyrights.

         SECTION 5.12 USE OF PROCEEDS; MARGIN REGULATIONS. The Borrower will use
the proceeds of the Loan only for lawful purposes in accordance with the terms
of this Loan Agreement. No part of the proceeds of the Loan will be used
directly or indirectly for the purpose of "PURCHASING" or "CARRYING" any "MARGIN
STOCK" within the respective meanings of each of the quoted terms under
Regulation U of the Board of Governors of the Federal Reserve System as now and
from time to time in effect or for any purpose which violates the provisions of
the Regulations of such Board of Governors.

         SECTION 5.13 SOLVENCY. As of the date hereof and after giving effect to
the transactions contemplated by the Loan Documents, the Borrower will have
sufficient cash flow to enable it to generally pay its debts as and when they
mature and will not have an unreasonably small amount of capital relative to the
Borrower's business and operations.

         SECTION 5.14 FULL DISCLOSURE. None of the Loan Documents contains any
untrue statement of material fact or omits to state a material fact necessary in
order to make the statements contained in this Agreement or the Loan Documents,
taken as a whole, not

                                       25

<PAGE>

misleading. There is no fact known to the Borrower which, individually or in the
aggregate with other facts known to the Borrower, could reasonably be expected
to have a Material Adverse Effect, and which has not otherwise been fully set
forth in this Agreement, the Addendum, the Schedules hereto or in the Loan
Documents. Each of the certificates delivered or to be delivered by each Loan
Party or any of its officers pursuant to the terms of the Loan Documents will be
true, accurate and complete in all material respects as of the date made.

         SECTION 5.15 COMPLIANCE WITH LAWS. Each Loan Party has duly complied
with, and its properties, business operations and leaseholds are in compliance
in all material respects with all Governmental Rules applicable to it, its
properties and the conduct of its business, except where the failure to comply
will not have a Material Adverse Effect.

SECTION 6. AFFIRMATIVE COVENANTS.

         The Borrower will comply with the covenants and agreements set forth in
this Section 6 from the date of execution of this Agreement unless and until all
Obligations have been fully paid and any commitments of the Administrative
Agent, the Lenders and the Issuing Bank to the Borrower have been terminated.

         SECTION 6.1 BOOKS AND RECORDS. The Borrower will maintain and will
cause its Subsidiaries to maintain accurate and complete books and records. The
Borrower will give and will cause its Subsidiaries to give representatives of
the Administrative Agent (who may be accompanied by representatives of the
Lenders) access, upon request and during normal business hours and in accordance
with the provisions of this Section 6.1, to books and records of account,
including permission to examine, copy and make abstracts from any of such books
and records and such other information as the Administrative Agent may from time
to time reasonably request, and the Borrower will make available to the
Administrative Agent, and will cause its Subsidiaries to make available to the
Administrative Agent, during normal business hours and in accordance with the
provisions of this Section 6.1, for examination copies of any reports,
statements or returns which the Borrower or any of its Subsidiaries may make to
or file with any governmental department, bureau or agency, federal or state. So
long as an Event of Default does not exist, the Administrative Agent will give
reasonable written notice at least one (1) Business Day prior to conducting any
examination under the preceding sentence and shall not conduct such examinations
at Borrower's expense more than once in any calendar year. Administrative Agent
agrees that it will conduct such review in a manner so as not to unreasonably
interfere with Borrower's business. Except as permitted under Section 10.7
hereof in connection with an assignment or grant of a participation interest in
the Loan, the Administrative Agent, the Lenders and the Issuing Bank will treat
as confidential all non-public information contained in such books and records;
provided, however, that if the Administrative Agent, the Lenders or the Issuing
Bank is required to disclose confidential information pursuant to a court order,
subpoena or similar process, prior to disclosure the Administrative Agent, the
Lenders and the Issuing Bank will: (a) promptly provide the Borrower with a copy
of the court order or subpoena; (b) cooperate with the Borrower at the
Borrower's expense in obtaining a protective or similar order; and (c) in any
event, disclose only such confidential information as the Administrative Agent,
the Lenders and the Issuing Bank, with the advice of its counsel, shall deem
necessary to comply with such court order or subpoena.

                                       26

<PAGE>

         SECTION 6.2 ACCOUNTS RECEIVABLE AGING; BORROWING BASE CERTIFICATE. The
Borrower will deliver to the Administrative Agent within 30 days after the end
of each month (a) a report on its accounts receivable aging and accounts payable
aging in such reasonable detail consistent with the form currently used by the
Borrower's management, and (b) an updated Borrowing Base Certificate, certified
as of such date by an Authorized Officer.

         SECTION 6.3 FINANCIAL STATEMENTS; COPIES OF OTHER STATEMENTS.

                  (a) the Borrower will deliver to the Administrative Agent (x)
as soon as available but not later than forty-five (45) days after the last day
of each of the first three Fiscal Quarters of each Fiscal Year, the Borrower's
quarterly report to shareholders, if any, and its quarterly report on Form 10-Q
as filed with the Securities and Exchange Commission and, (y) within 90 days
after the end of each fiscal year beginning with the fiscal year ending December
31, 2001, the Borrower's annual report to shareholders and its annual report on
Form 10-K, as filed with the Securities and Exchange Commission, in each case
accompanied by a completed certificate signed by an Authorized Officer in the
form attached hereto as EXHIBIT G (a "COMPLIANCE CERTIFICATE") stating that (i)
such Authorized Officer has reviewed the terms of the Agreement and has made, or
caused to be made under his supervision, a review of the transactions and
condition of the Borrower during the accounting period covered by such financial
statements and that such review has not disclosed the existence during such
accounting period, and that such Authorized Officer does not have knowledge of
the existence as at the date of such Compliance Certificate, of any condition or
event which constitutes, an Event of Default or, if any Event of Default did
exist, a statement describing such Event of Default and the action the Borrower
has taken or proposes to take with respect thereto, (ii) the Borrower was in
compliance with the applicable financial covenants set forth in this Agreement
during such period, and (iii) calculations evidencing compliance with the
applicable financial covenants.

                  (b) the Borrower will deliver to the Administrative Agent
promptly upon their becoming available, copies of all financial statements,
reports, notices and information statements sent or made available generally by
the Borrower to its security holders (including, without limitation, Form 8-K)
filed by the Borrower with the Securities and Exchange Commission or any
Governmental Authority succeeding to any of its functions.

         SECTION 6.4 FINANCIAL PROJECTIONS. The Borrower will deliver to the
Administrative Agent projections, forecasts, financial pro formas and such other
information reasonably requested by the Administrative Agent from time to time
that is in the nature of information presented to the Borrower's Board of
Directors or is in the nature of information generally disclosed to any of the
Borrower's existing stockholders or prospective investors, which at a minimum
shall include financial projections for each fiscal year, commencing with the
fiscal year beginning January 1, 2002, delivered to the Administrative Agent
prior to the beginning of each such fiscal year.

         SECTION 6.5 PAYMENT OF TAXES AND OTHER CHARGES. The Borrower will and
will cause its Subsidiaries to pay and discharge when due all indebtedness and
all taxes, assessments, charges, levies and other liabilities imposed upon them,
their income, profits, property or business, except those which currently are
being contested in good faith by appropriate proceedings and for which they will
have set aside adequate reserves in accordance with GAAP

                                       27

<PAGE>

or made other adequate provision with respect thereto acceptable to the
Administrative Agent in its reasonable discretion; provided, however, that they
need not pay any such tax or assessment or claims if the nonpayment of all such
taxes and assessments and claims in the aggregate could not reasonably be
expected to have a Material Adverse Effect.

         SECTION 6.6 MAINTENANCE OF EXISTENCE, OPERATION AND ASSETS. The
Borrower will and will cause its Subsidiaries to do all things reasonably
necessary to maintain, renew and keep in full force and effect their
organizational existence and all rights, permits and franchises necessary to
enable them to continue their business; continue in operation in substantially
the same manner as at present; keep their properties in good operating condition
and repair subject to normal wear and tear; and will make all reasonably
necessary and proper repairs, renewals, replacements, additions and improvements
thereto; provided that nothing in this Section 6.6 shall prevent the Borrower or
any of its subsidiaries from discontinuing the operations and maintenance of any
of their properties if such discontinuance is, in the judgment of the Borrower
or such subsidiary, desirable in the conduct of its business and would not have
a Material Adverse Effect.

         SECTION 6.7 INSURANCE. The Borrower will and will cause its
Subsidiaries to maintain with financially sound and reputable insurers, as
reasonably determined in good faith by them, insurance with respect to their
property and business against such casualties and contingencies, of such types
and in such amounts as is customary for established companies engaged in the
same or similar business and similarly situated, including, without limitation,
hazard and business interruption coverage, and will deliver to the
Administrative Agent at least once each year evidence of insurance (i.e.,
certificate of insurance) in form satisfactory to the Administrative Agent and
as otherwise provided in the Security Documents.

         SECTION 6.8 COMPLIANCE WITH LAWS. The Borrower will and will cause its
Subsidiaries to comply in all material respects with all laws applicable to them
and to the operation of their business (including any statute, rule or
regulation relating to employment practices and pension benefits or to
environmental, occupational and health standards and controls), except where
failure to comply could not reasonably be expected to have, either individually
or in the aggregate, a Material Adverse Effect.

         SECTION 6.9 FINANCIAL COVENANTS. The Borrower will comply with all of
the financial covenants set forth in this Section 6.9, and shall deliver to the
Administrative Agent, no later than 45 days following the end of each fiscal
quarter, a Compliance Certificate stating, among other things, whether the
Borrower is in compliance with the applicable financial covenants for the period
then ended. Each of the following financial covenants will be tested for
compliance at the end of each calendar quarter.

                  (a) The Borrower will not permit or suffer its ratio of Total
Liabilities to Tangible Net Worth to exceed (a) 1.00 to 1.00 during Fiscal Year
2001 and (b) 1.50 to 1.00 during Fiscal Year 2002 and thereafter.

                  (b) The Borrower shall not suffer Negative Operating Income in
excess of the amounts specified below for each Fiscal Quarter:

                                       28

<PAGE>

<TABLE>
<CAPTION>
                  FISCAL QUARTER                                                MAXIMUM OPERATING LOSS
                  --------------                                                ----------------------
<S>                                                                             <C>
                  Fiscal Quarter ending 3/31/01                                 $6.5 Million
                  Fiscal Quarter ending 6/30/01                                 $6.5 Million
                  Fiscal Quarter ending 9/30/01                                 $5.0 Million
                  Fiscal Quarter ending 12/31/01                                $3.5 Million
                  Fiscal Quarter ending 3/31/02                                 $2.5 Million
                  Fiscal Quarter ending 6/30/02                                 $1.0 Million
                  Fiscal Quarter ending 9/30/02 and thereafter                  $0.0 Million
</TABLE>

                  (c) The Borrower will not permit or suffer its Quick Ratio to
be less than 2.00 to 1.00 at any time.

         SECTION 6.10 ADDITIONAL REPORTS. The Borrower will and will cause its
Subsidiaries to deliver written notice to the Administrative Agent promptly
after receiving notice or knowledge of the occurrence of any of the following,
together with a description of the action that the Borrower is taking or
proposes to take with respect thereto: (a) a Default or an Event of Default, (b)
any litigation filed by or against any Loan Party expressly claiming or
asserting damages in excess of $500,000, (c) any Reportable Event or Prohibited
Transaction with respect to any Employee Benefit Plan(s) (as defined in ERISA);
(d) any event that could reasonably be expected to have a Material Adverse
Effect; or (e) an Equity Event.

         SECTION 6.11 BOARD REPORTS. After the occurrence and during the
continuance of an Event of Default, the Borrower will and will cause its
Subsidiaries to deliver to the Administrative Agent copies of all regular
periodic reports provided by management of any Loan Party to its Board of
Directors.

         SECTION 6.12 RESERVED.

         SECTION 6.13 RESERVED.

         SECTION 6.14 INTELLECTUAL PROPERTY. The Borrower will not enter into
any agreement or undertaking pursuant to which the Borrower assigns for security
or grants or agrees to assign for security or grant to any Person a lien or
security interest in or otherwise encumber any of Borrower's present and future
right, title and interest in and to (a) any Intellectual Property, (b) the
registration of any Intellectual Property, (c) the right to sue for past,
present and future infringements of any Intellectual Property, (d) the proceeds
of any Intellectual Property, including, without limitation, license royalties
and proceeds of infringement suits, or (e) the goodwill associated with any
Intellectual Property; provided, however, nothing herein shall restrict or
prohibit the Borrower from granting licenses of any Intellectual Property in the
ordinary course of business that are not for the purpose of granting security.
The Borrower will not enter into any agreement, covenant or undertaking with any
Person the terms of which would restrict or prohibit the Borrower from, or would
be violated upon, granting or assigning for security to the Administrative Agent
or the Lenders a lien or security interest in or otherwise encumbering in favor
of the Administrative Agent or the Lenders or assigning outright to the
Administrative Agent or the Lenders any Intellectual Property or other rights
and benefits described in the preceding sentence. The Borrower will not abandon
any Material Intellectual Property registration without the written consent of
the Administrative Agent. The Borrower

                                       29

<PAGE>

will maintain the Intellectual Property in full force and effect until all of
the Obligations are satisfied in full except for Intellectual Property rights
that expire automatically upon completion of their terms or as otherwise
provided in the immediately preceding sentence. Upon request of the
Administrative Agent after the occurrence and during the continuance of an Event
of Default, the Borrower will deliver to the Administrative Agent a description
of all such Intellectual Property existing at such time.

SECTION 7. NEGATIVE COVENANTS.

         The Borrower will comply with the covenants and agreements set forth in
this Section 7 from the date of execution of this Agreement until all
Obligations have been fully paid and any commitments of the Lenders and the
Issuing Bank to the Borrower have been terminated.

         SECTION 7.1 INDEBTEDNESS. The Borrower will not and will not permit its
Subsidiaries to incur or suffer to exist any indebtedness for borrowed money
other than: (a) the Loans and any subsequent indebtedness to the Lenders and the
Issuing Bank; (b) existing indebtedness of the Borrower and its Subsidiaries
disclosed on the most recent balance sheet of the Borrower delivered to the
Administrative Agent on or prior to the Closing Date, including extensions and
refinancings thereof which do not increase the principal amount of such
indebtedness as of the date of such extension or refinancing; (c) trade payables
incurred in the ordinary course of business; (d) indebtedness secured by a lien
described in clause (l) of the defined term "PERMITTED LIENS;" (e) Subordinated
Indebtedness, (f) loans in favor of the Borrower or any wholly-owned subsidiary
of the Borrower (and provided such subsidiary has entered into a Guaranty
Agreement and a Guarantor Security Agreement with the Administrative Agent);
provided, however, that loans in favor of a foreign subsidiary shall not exceed
$15,000,000 in the aggregate at any time outstanding; and (g) additional
unsecured indebtedness of the Borrower and its Subsidiaries not to exceed in the
aggregate $3,000,000 at any time outstanding.

         SECTION 7.2 LIENS AND ENCUMBRANCES. Except for Permitted Liens, the
Borrower will not and will not permit its Subsidiaries to create, assume or
permit to exist any Lien upon any assets now owned or hereafter acquired or
enter into any lease or any arrangement for the acquisition of property subject
to any conditional sales agreement.

         SECTION 7.3 GUARANTEES. Except for the guarantees described in SCHEDULE
7.3, the Borrower will not and will not permit its Subsidiaries to guarantee,
endorse or become contingently liable for the obligations of any person, firm or
corporation, except in connection with the endorsement and deposit of checks in
the ordinary course of business for collection.

         SECTION 7.4 LOANS, INVESTMENTS AND ACQUISITIONS. The Borrower shall not
and shall not permit its Subsidiaries to purchase or hold beneficially any
stock, other securities or evidences of indebtedness, or make any investment or
acquire any interest whatsoever in, or make any advance, loan, extension of
credit or capital contribution to, any other Person, including, without
limitation, any Affiliate of the Borrower, or create or acquire any subsidiary,
or acquire all or any significant portion of the assets or equity interest of
another Person, except (a) investments (i) disclosed on the most recent balance
sheet of the Borrower delivered to the Administrative Agent on or prior to the
Closing Date or (ii) described in SCHEDULE 7.4, (b) loans and advances to
employees in the ordinary course of business not to exceed $1,000,000 in the

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aggregate at any time outstanding, (c) investments in cash or Cash Equivalents,
(d) investments acceptable to the Required Lenders in their reasonable
discretion; (e) Permitted Acquisitions, provided that (i) no Event of Default
shall have occurred and be continuing or would result from such transaction or
transactions or the incurrance of any debt by the Borrower in connection
therewith, (ii) if such Permitted Acquisition is being effectuated by means of
the acquisition of equity interests of any Person (or the formation of a new
subsidiary to acquire assets of another Person), such acquired Person shall,
immediately upon the consummation of such Permitted Acquisition, become a
Guarantor hereunder and shall execute and deliver to the Administrative Agent a
Guaranty Agreement in substantially the form attached hereto as EXHIBIT K, a
Guarantor Security Agreement in the form attached hereto as EXHIBIT L, and such
other documentation as is reasonably required by the Administrative Agent in
connection with such Guaranty Agreement and Guarantor Security Agreement, (iii)
if such Permitted Acquisition is being effectuated by means of the acquisition
of equity interests of any Person (or the formation of a new Subsidiary to
acquire assets of another Person), the Borrower shall, immediately upon the
consummation of such Permitted Acquisition, pledge all (or 65% of equity
interests in foreign Persons) to the Administrative Agent, on behalf of the
Lenders, and shall deliver to the Administrative Agent stock certificates
representing such equity interests, stock transfers in blank and such other
documentation as is reasonably required by the Administrative Agent in
connection therewith, (iv) the Administrative Agent shall, immediately upon the
consummation of such Permitted Acquisition, obtain a first priority Lien subject
to existing liens securing Permitted Indebtedness, for the benefit of the
Lenders as collateral for the payment of the Obligations, in the assets and
equity interests being purchased or acquired by virtue of such acquisition
(including, without limitation, all of the outstanding equity interests of any
newly-formed subsidiary created for the purpose of effecting such acquisition),
and the Borrower shall have complied in all respects with the provisions of
Section 3 with respect to such assets and equity interests; (v) after giving
effect to such acquisition, the representations and warranties set forth in
Section 4 hereof shall be true and correct in all material respects on and as of
the date, and (vi) after giving effect to such acquisition, the Borrower is in
compliance with the financial covenants herein on a pro forma basis for the
periods ending prior to the closing of such acquisition; and (f) loans permitted
under Section 7.1(f) hereof.

         SECTION 7.5 MERGER OR TRANSFER OF ASSETS. The Borrower will not and
will not permit its Subsidiaries to (a) lease, sell, transfer or otherwise
dispose of its property, assets and business whether now owned or hereafter
acquired except in the ordinary course consistent with past practice or as
contemplated in the financial projections delivered to the Administrative Agent
prior to the Closing Date, or (b) merge or consolidate with or into any Person,
except for mergers constituting investments permitted under Section 7.4.

         SECTION 7.6 CHANGE IN BUSINESS, MANAGEMENT OR OWNERSHIP. The Borrower
will not and will not permit its Subsidiaries to make, suffer or permit any
material change (a) in the nature of its business as carried on as of the date
hereof, (b) in the composition of its current executive management if, as a
result of such change, both the person then serving as Chief Executive Officer
and the person serving as Chief Operating Officer of the Borrower would cease
serving in such capacity unless such change has been approved by one of the
individuals, or a majority of the individuals, if more than two, who are then
serving on the Borrower's Board of Directors as the designees or representatives
of institutional or professional investors that hold

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<PAGE>

shares of the capital stock of the Borrower; (c) in the Borrower's fiscal year,
or (d) in the Borrower's accounting method.

         SECTION 7.7 DIVIDENDS. The Borrower will not and will not permit its
Subsidiaries to declare or pay any cash dividends on or make any cash
distribution with respect to any class of its equity or ownership or membership
interests, or purchase, redeem, retire or otherwise acquire any of its equity or
ownership or membership interests other than in connection with employee
repurchase agreements entered into by the Borrower or any of Borrower's
Subsidiaries pursuant to (i) an Equity Event or (ii) the grant of stock options,
stock grants or options or grants to acquire ownership or membership interests
issued to employees under an existing plan approved by the Borrower's or such
Subsidiary's Board of Directors (a copy of which has been made available to the
Administrative Agent); provided, however, that the restrictions contained in
this Section 7.7 shall be lifted and this Section 7.7 shall be of no further
effect, after the Borrower has achieved Profitability, on a quarterly basis, for
a period of two consecutive fiscal quarters.

         SECTION 7.8 AFFILIATE TRANSACTIONS. The Borrower shall not, without the
prior written consent of the Required Lenders, not unreasonably withheld, enter
into or carry out any Material transaction with an Affiliate (including, without
limitation, purchasing property or services from or selling property or services
to any Affiliate or other Person) unless such transaction (i) is entered into in
the ordinary course of business upon terms and conditions that are fair and
reasonable arm's-length transaction with a person not an Affiliate which are
fully disclosed to the Administrative Agent and the Lenders, and (ii) is in
accordance with all applicable Governmental Rules.

         SECTION 7.9 SALE AND LEASEBACK TRANSACTIONS. The Borrower shall not and
shall not permit its Subsidiaries to, directly or indirectly, enter into any
arrangement with any Person providing for the Borrower, or any of its
Subsidiaries, to lease or rent property that the Borrower, or any of its
Subsidiaries, has sold or will sell or otherwise transfer to such Person.

         SECTION 7.10 PREPAYMENTS OF OTHER INDEBTEDNESS. The Borrower will not
and will not permit its Subsidiaries to make, suffer or permit any prepayments
of or amend any provisions contained in documentation relating to any
indebtedness owed by the Borrower, or any of its Subsidiaries, to any Person
(which in the case of an amendment would make such provisions less favorable)
other than the Administrative Agent, the Lenders or the Issuing Bank, including,
without limitation, prepayment of indebtedness subordinated to the rights of the
Administrative Agent, the Lenders or the Issuing Bank, other than (a)
refinancings with respect to which the indebtedness owed by the Borrower or any
of its Subsidiaries is not changed and (b) payment of accrued and unpaid
interest of Permitted Indebtedness, provided that such payment is not prohibited
under the terms of a subordination agreement or other intercreditor agreement
with the Administrative Agent or any Lender.

SECTION 8. EVENTS OF DEFAULT; REMEDIES.

         SECTION 8.1 EVENTS OF DEFAULT. The occurrence of any of the following
will be deemed to be an "EVENT OF DEFAULT:"

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<PAGE>

                  (a) PAYMENT DEFAULT. The Borrower shall fail to pay any
payment of principal when due or any payment of interest within 5 calendar days
following the date when due, in respect of the Obligations.

                  (b) COVENANT DEFAULT. (i) The Borrower shall default in the
performance of, or violate any of, the covenants or agreements contained in
Sections 6.7, 6.9, 6.14 or 7; or (ii) the Borrower shall default in the
performance of, or violate any of, the covenants or agreements contained in this
Agreement (other than the Obligation to pay principal and interest on the Notes
or those contained in Sections 6.7, 6.9, 6.14 or 7) and, if capable of being
cured, such default or violation shall continue uncured for a period of 20
calendar days in the case of defaults or violations of Sections 6.2 or 6.3, and
a period of 30 calendar days in the case of all other covenants and agreements.

                  (c) BREACH OF WARRANTY. Any Financial Statement,
representation, warranty or certificate made or furnished by the Borrower to the
Administrative Agent, the Lenders or the Issuing Bank in connection with this
Agreement shall be false, incorrect or incomplete in any Material respect when
made.

                  (d) BANKRUPTCY OR INSOLVENCY. A proceeding shall have been
instituted in a court having jurisdiction over any Loan Party seeking a decree
or order for relief in respect of any Loan Party in an involuntary case under
the Bankruptcy Code or any other applicable bankruptcy, insolvency
reorganization or other similar law and such involuntary case shall remain
undismissed or unstayed and in effect for a period of 60 consecutive days, or
any Loan Party shall commence a voluntary case under any such law or consent to
the appointment of a receiver, liquidator, assignee, custodian, trustee,
sequestrator, conservator (or other similar official).

                  (e) OTHER DEFAULT. The occurrence of an Event of Default as
defined in the Notes, any of the Security Documents, any Guaranty, or in the
Borrowing Base Rider or Letter of Credit Rider, subject to any applicable cure
periods or notice provisions contained therein.

                  (f) PAYMENT DEFAULTS UNDER OTHER INDEBTEDNESS DOCUMENTS. Any
Loan Party shall default in the payment of any Indebtedness (other than the
Obligations owed under this Agreement), which Indebtedness has an aggregate
outstanding principal balance of $500,000 or more when such payment is due
(whether by acceleration or otherwise) after giving effect to any grace or cure
period, or default by any Loan Party in the performance of any term of any
agreement or instrument under which any such Indebtedness is created or by which
it is governed or evidenced, if the effect of any such default is to cause such
Indebtedness to become, or to permit the holder or holders of such Indebtedness
(or any Person on behalf of such holder) to declare such Indebtedness due prior
to its expressed maturity.

                  (g) MATERIAL ADVERSE EFFECT. The occurrence of any event or
circumstance or any combinations of events or circumstances that alone or taken
together results in a Material Adverse Effect.

                  (h) ADVERSE JUDGMENTS. The aggregate amount of unbonded or
unstayed final judgments against the Borrower for which no further appellate
review exists shall, at any

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<PAGE>

one time, exceed, by $1,000,000 or more, the aggregate amount of insurance
proceeds available to pay such judgments.

                           (i) CHANGE OF CONTROL. The occurrence of a Change of
Control.

         SECTION 8.2 REMEDIES. Upon the occurrence of an Event of Default
described in Section 8.1(d) and during the continuance thereof, the principal of
and accrued interest and all other amounts due and owing on the Loans (if not
then due and payable) shall become due and payable immediately, without
presentment, demand, notice, protest, declaration or any other requirement of
any kind, all which the Borrower expressly waives. Upon the occurrence and
continuance of an Event of Default other than as described in Section 8.1(d),
the Administrative Agent may, and shall upon request of the Required Lenders,
provide written notice to the Borrower stating that an Event of Default has
occurred and declaring that the principal of and accrued interest and all other
amounts due and owing on the Loans (if not then due and payable) shall become
due and payable immediately, without any further notice, presentment, demand,
protest, declaration or other requirement of any kind, all which the Borrower
expressly waives. Upon the occurrence and continuance of an Event of Default,
the Lenders shall have no further obligation to make any additional Loans
hereunder nor shall the Issuing Bank have any obligation to issue any additional
Letters of Credit. Upon the occurrence and continuance of an Event of Default,
and irrespective of whether the Loan has been declared due and payable pursuant
to the first sentence of this paragraph, the Administrative Agent, the Lenders
and the Issuing Bank will have all rights and remedies specified in the Notes
and the Security Documents and all rights and remedies (which are cumulative and
not exclusive) available under applicable law or in equity. Upon the occurrence
and continuance of an Event of Default, the Administrative Agent, the Lenders
and the Issuing Bank may notify any persons who are account debtors of the
Borrower to submit all payments in respect of the Borrower's accounts receivable
directly to the Administrative Agent, the Lenders or the Issuing Bank and shall
provide written notice to the Borrower that it has done so.

         SECTION 8.3 ADDITIONAL REMEDIES. In addition to the remedies set forth
above, upon the occurrence of any Event of Default, (i) the Issuing Bank and the
Required Lenders shall have the right to require the Borrower establish with the
Issuing Bank and fund a cash collateral account to cash collateralize the Stated
Amount of each outstanding Letter of Credit, and (ii) the Administrative Agent,
the Lenders and the Issuing Bank shall have all of the rights and remedies
granted to them under this Agreement and the other Loan Documents and all other
rights and remedies granted by law to creditors.

         SECTION 8.4 RIGHTS OF SET-OFF. In addition to any rights now or
hereafter granted under applicable law or otherwise, and not by way of
limitation of any such rights, upon the occurrence and during the continuance of
an Event of Default, the Administrative Agent, the Lenders and the Issuing Bank
are hereby authorized at any time or from time to time, without presentment,
demand, protest or other notice of any kind to the Borrower or to any other
Person, any such notice being hereby expressly waived, to set off and to
appropriate and apply any and all deposits (general or special) and any other
indebtedness at any time held or owing by the Administrative Agent, the Lenders
or the Issuing Bank (including, without limitation, by branches and agencies of
the Administrative Agent, the Lenders and the Issuing Bank wherever located) to
or for the credit or the account of the Borrower against and on account of the

                                       34

<PAGE>

Obligations of the Borrower to the Administrative Agent, the Lenders or the
Issuing Bank under this Agreement or under any of the other Loan Documents,
including, without limitation, all other claims of any nature or description
arising out of or connected with this Agreement or any other Loan Document,
irrespective of whether or not the Administrative Agent, the Lenders or the
Issuing Bank shall have made any demand hereunder and although said Obligations,
liabilities or claims, or any of them, shall be contingent or unmatured.

SECTION 9. ADMINISTRATIVE AGENT

         SECTION 9.1 APPOINTMENT AND GRANT OF AUTHORITY. Each of the Lenders
hereby appoints PNC Bank, and PNC Bank hereby agrees to act as, the
Administrative Agent under this Agreement, the Notes and the other Loan
Documents. As such Administrative Agent, the Administrative Agent shall have and
may exercise such powers under this Agreement as are specifically delegated to
them in their respective capacities, by the terms hereof, of the Notes or of the
other Loan Documents, together with such other powers as are incidental thereto.
Without limiting the foregoing, the Administrative Agent, on behalf of the
Lenders, is authorized to execute all of the Loan Documents (other than this
Agreement) and to accept all of the Loan Documents and all other agreements,
documents or instruments reasonably required to carry out the intent of the
parties to this Agreement.

         SECTION 9.2 NON-RELIANCE ON THE ADMINISTRATIVE AGENT. Each Lender
agrees that it has, independently and without reliance on the Administrative
Agent and based on such documents and information as it has deemed appropriate,
made its own credit analysis and evaluation of the Borrower and their operations
and independently made its own decision to enter into this Agreement. Each
Lender further agrees that it will, independently and without reliance upon the
Administrative Agent and based on such documents and information as it shall
deem appropriate at the time, continue to make its own analysis and decisions in
taking or not taking action under this Agreement. Except as otherwise provided
herein, the Administrative Agent shall have no duty to keep the Lenders informed
as to the performance or observance by the Borrower of this Agreement or the
other Loan Documents, nor shall the Administrative Agent be required to inspect
the properties or books of the Borrower. The Administrative Agent, in the
absence of gross negligence or willful misconduct, shall not be liable to any
Lender for any failure to relay or furnish to such Lender any information. The
preceding provisions of this Section 9.2 to the contrary notwithstanding, the
Administrative Agent shall notify each of the Lenders as soon as practicable
after it receives any certificates, reports or notices delivered by the Borrower
to the Administrative Agent hereunder, including, without limitation, under
Sections 6.2, 6.3, 6.4, 6.10 and 6.11 hereof.

         SECTION 9.3 RESPONSIBILITY OF ADMINISTRATIVE AGENT AND OTHER MATTERS.

                  (a) MINISTERIAL NATURE OF DUTIES. As among the Lenders and the
Administrative Agent, the Administrative Agent shall have no duties or
responsibilities except those expressly set forth in this Agreement, the Notes
or in the other Loan Documents, and those duties and responsibilities shall be
subject to the limitations and qualifications set forth in this Section 9. The
duties of the Administrative Agent shall be ministerial and administrative in
nature.

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<PAGE>

                  (b) LIMITATION OF LIABILITY. As among the Lenders and the
Administrative Agent, neither the Administrative Agent nor any of their
respective directors, officers, employees or agents shall be liable for any
action taken or omitted (whether or not such action taken or omitted is within
or without the Administrative Agent's respective responsibilities and duties
expressly set forth in this Agreement) under or in connection with this
Agreement or any other instrument or document in connection herewith except for
gross negligence or willful misconduct. Without limiting the foregoing, neither
the Administrative Agent nor any of their respective directors, officers or
employees shall be responsible for, or have any duty to examine (i) the
genuineness, execution, validity, effectiveness, enforceability, value or
sufficiency of (A) this Agreement, the Notes or any of the other Loan Documents
or (B) any other document or instrument furnished pursuant to or in connection
with this Agreement, (ii) the collectability of any amounts owed by the Borrower
to the Lenders, (iii) the truthfulness of any recitals, statements,
representations or warranties made to the Administrative Agent or the Lenders in
connection with this Agreement, (iv) any failure of any party to this Agreement
to receive any communication sent, including any telegram, teletype, electronic
data transmission, facsimile transmission or telephone message or any writing,
application, notice, report, statement, certificate, resolution, request, order,
consent letter or other instrument or paper or communication entrusted to the
mails or to a delivery service, or (v) the assets, liabilities, financial
condition, results of operations or business, or creditworthiness of the
Borrower.

                  (c) RELIANCE. The Administrative Agent shall be entitled to
act, and shall be fully protected in acting upon, any telegram, teletype,
electronic data transmission, facsimile transmission or any writing,
application, notice, report, statement, certificate, resolution, request, order,
consent, letter or other instrument, paper or communication believed by the
Administrative Agent in good faith to be genuine and correct and to have been
signed or sent or made by a proper Person. The Administrative Agent may consult
counsel and shall be entitled to act, and shall be fully protected in any action
taken in good faith, in accordance with advice given by counsel. The
Administrative Agent may employ agents and attorneys-in-fact and shall not be
liable for the default or misconduct of any such Administrative agents or
attorneys-in-fact selected by the Administrative Agent with reasonable care. The
Administrative Agent shall not be bound to ascertain or inquire as to the
performance or observance of any of the terms, provisions or conditions of this
Agreement or any of the other Loan Documents on the part of the Borrower or any
other party thereto.

         SECTION 9.4 ACTION ON INSTRUCTIONS. The Administrative Agent shall be
required to act and shall be fully protected in so acting and shall be entitled
to refrain from acting, and shall be fully protected in refraining from so
acting, under this Agreement, the Notes, the other Loan Documents or any other
instrument or document executed or delivered in connection herewith or
therewith, in accordance with written instructions from the Required Lenders or,
in the case of the matters set forth in items (a) through (g) of Section 10.2,
from all of the Lenders.

         SECTION 9.5 INDEMNIFICATION. To the extent the Borrower does not
reimburse and save harmless the Administrative Agent according to the terms
hereof for and from all costs, expenses and disbursements in connection
herewith, such costs, expenses and disbursements shall be borne by the Lenders
ratably in accordance with their respective Commitment Percentages. Each Lender
hereby agrees on such basis (i) to reimburse the Administrative Agent for such
Lender's pro rata share of all such reasonable costs, expenses and disbursements
on request and (ii) to the

                                       36

<PAGE>

extent of each such Lender's pro rata share, to indemnify and save harmless the
Administrative Agent against and from any and all losses, obligations,
penalties, actions, judgments and suits and other costs, expenses and
disbursements of any kind or nature whatsoever which may be imposed on, incurred
by or asserted against the Administrative Agent, other than as a consequence of
gross negligence or willful misconduct on the part of the Administrative Agent,
arising out of or in connection with (i) this Agreement, the Notes, the other
Loan Documents or any other agreement, instrument or document executed or
delivered in connection herewith or therewith, or (ii) any action taken at the
request of the Required Lenders or all of the Lenders hereunder, as the case may
be, including without limitation the reasonable costs, expenses and
disbursements in connection with defending themselves against any claim or
liability, or answering any subpoena or other process related to the exercise or
performance of any of their powers or duties under this Agreement, the other
Loan Documents, or any of the other agreements, instruments or documents
executed or delivered in connection herewith or the taking or refraining from
any action under or in connection with any of the foregoing.

         SECTION 9.6 ADMINISTRATIVE AGENT'S RIGHTS AS LENDER. With respect to
the Commitments of the Administrative Agent as Lenders hereunder, and any Loans
of the Administrative Agent under this Agreement, the other Loan Documents and
any other agreements, instruments and documents delivered pursuant hereto and
any other amounts due to the Administrative Agent under this Agreement, the
Administrative Agent shall have the same rights and powers, duties and
obligations under this Agreement, the Notes, the other Loan Documents or other
agreement, instrument or document as any Lender and may exercise such rights and
powers and shall perform such duties and fulfill such obligations as though it
were not an Administrative Agent hereunder. The Administrative Agent may accept
deposits from, lend money to, and generally engage, and continue to engage, in
any kind of business with the Borrower as if it were not an Administrative Agent
hereunder.

         SECTION 9.7 PAYMENT TO LENDERS. Promptly after receipt from the
Borrower of any principal repayment of the Loans, interest due on the Loans and
any Fees owing to the Lenders or other amounts due under any of the Loan
Documents (except for such amounts which are payable for the sole account of any
Lender or the Administrative Agent), the Administrative Agent shall distribute
to each Lender that Lender's share of the funds so received.

         SECTION 9.8 PRO RATA SHARING. All interest and principal payments on
the Loans and all Commitment Fees and Letter of Credit Fees are to be divided
pro rata among the Lenders in accordance with their respective Commitment
Percentages. Any sums obtained from the Borrower by any Lender by reason of the
exercise of its rights of set-off, banker's lien or in collection shall be
shared (net of costs) pro rata among the Lenders on the basis of the principal
amount of Loans outstanding. Nothing in this Section 9.8 shall be deemed to
require the sharing among the Lenders of collections specifically relating to,
or of the proceeds of any collateral securing, any other Indebtedness of the
Borrower to any Lender.

         SECTION 9.9 SUCCESSOR AGENT.

                  (a) RESIGNATION OF ADMINISTRATIVE AGENT. The Administrative
Agent may resign as Administrative Agent hereunder by giving ninety (90) days
prior written notice to the Lenders and the Borrower. If such notice shall be
given, the Required Lenders shall appoint a

                                       37

<PAGE>

successor agent for the Lenders, during such ninety (90) day period, which
successor agent shall be reasonably satisfactory to the Borrower, to serve an
Administrative Agent hereunder and under the several Loan Documents. If at the
end of such ninety (90) day period, the Lenders have not appointed such a
successor, the resigning Administrative Agent shall use reasonable commercial
efforts to procure a successor reasonably satisfactory to the Lenders and the
Borrower, to serve as a successor agent for the Lenders hereunder and under the
several Loan Documents. Any such successor agent shall succeed to the rights,
powers and duties of the resigning Administrative Agent.

                           (b) RIGHTS OF THE FORMER ADMINISTRATIVE AGENT. Upon
the appointment of such successor agent or upon the expiration of such ninety
(90) day period (or any longer period to which the resigning Administrative
Agent has agreed), the resigning Administrative Agent's rights, powers and
duties hereunder shall be terminated, without any other or further act or deed
on the part of such former Administrative Agent or any of the parties to this
Agreement. After any resigning Administrative Agent's resignation hereunder as
an Administrative Agent hereunder, the provisions of this Section 9 shall inure
to the benefit of such retiring Administrative Agent as to any actions taken or
omitted to be taken by it while it was an Administrative Agent under this
Agreement.

SECTION 10. GENERAL PROVISIONS

         SECTION 10.1 SET-OFF. If the unpaid principal amount of the Notes,
interest accrued on the unpaid principal amount of the Notes or other amount
owing by the Borrower under this Agreement, the Notes or the other Loan
Documents shall have become due and payable (at maturity, by acceleration or
otherwise upon the occurrence of an Event of Default and during the continuance
thereof), each Lender will have the right, in addition to all other rights and
remedies available to it, to set-off against and to appropriate and apply to
such due and payable amounts any debt owing to, and any other funds held in any
manner for the account of, the Borrower by such Lender including, without
limitation, all funds in all deposit accounts (whether time or demand, general
or special, provisionally credited or finally credit, or otherwise) now or in
the future maintained by the Borrower with such Lender (but excluding in any
event accounts held by such Lender in a fiduciary capacity or as trustee, such
as Borrower's 401(k) Plan account). The Borrower consents to and confirms the
foregoing arrangements and confirms each Lender's right of banker's lien and
set-off. Nothing in this Agreement will be deemed a waiver or prohibition of or
restriction on each Lender's rights of banker's lien or set-off.

         SECTION 10.2 AMENDMENTS AND WAIVERS. Subject to the remaining
provisions of this Section 10.2, the Agent, the Lenders and the Borrower may,
from time to time, enter into amendments, extensions, renewals, modifications,
supplements and replacements to and of this Agreement, the Notes or the other
Loan Documents and the Lenders or the Required Lenders, as the case may be, may,
from time to time, waive compliance with a provision thereof. No amendment,
renewal, modification, extension, supplement, replacement or waiver of any
provision of the Agreement, the Notes or the other Loan Documents or consent to
any departure therefrom by the Borrower shall be effective unless it is in
writing and is signed by the Required Lenders (or the Administrative Agent with
the written consent of the Required Lenders), and then such waiver or consent
shall be effective only for the specific instance and for the specific purpose
for which it is given; provided, however, that no amendment, renewal,
modification,

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<PAGE>

waiver or consent, unless in writing and signed by all of the Lenders (or the
Administrative Agent with the written consent of all of the Lenders), shall do
any of the following:

                  (a) increase the Commitment of any Lender or subject any
Lender to any additional obligations hereunder;

                  (b) except for changes made pursuant to an Assignment and
Assumption Agreement, change any Lender's Commitment Percentage or the aggregate
or individual unpaid principal amount of the Notes, or forgive the payment of
the principal or interest payable on the Notes;

                  (c) waive an Event of Default in the payment of principal
and/or interest due hereunder and under any of the Notes;

                  (d) decrease the interest rate relating to the Loans;

                  (e) postpone any date fixed for any payment of principal of or
interest on the Loans, the Commitment Fee, the Letter of Credit Fee, or any
other obligations of the Borrower to the Lenders set forth in Section 2;

                  (f) reduce the Commitment Fee or the Letter of Credit Fee;

                  (g) amend the definition of the term "REQUIRED LENDERS",
"MAXIMUM AVAILABLE REVOLVING CREDIT LOAN AMOUNT" or "BORROWING BASE" as used
herein, or amend or waive the provisions of Section 2.2(a), 7.4(e), 9.8, 10.10
or this Section 10.2 hereof;

                  (h) release any Guarantor from its obligations pursuant to any
Guaranty Agreement;

                  (i) release any collateral securing the Obligations from the
security interest therein in favor of the Administrative Agent, for itself and
on behalf of the Lenders and the Issuing Bank; or

                  (j) amend or waive the provisions of this Section 10.2 in any
manner.

         Any such supplemental agreement shall apply equally to the Borrower and
each of the Lenders and shall be binding upon the Borrower, the Lenders, the
Administrative Agent and all future holders of the Notes. In the case of any
waiver, the Borrower, the Lenders and the Administrative Agent shall be restored
to their former positions and rights, and any Event of Default waived shall be
deemed to be cured and not continuing, but no such waiver shall extend to any
subsequent or other Event of Default, or impair any right consequent thereon.

         SECTION 10.3 TAXES. The Borrower shall pay any and all stamp, document,
transfer and recording taxes, filing fees and similar impositions payable or
hereafter reasonably determined by the Administrative Agent to be payable in
connection with this Agreement, the other Loan Documents and any other
documents, instruments and transactions pursuant to or in connection with any of
the Loan Documents other than for any tax which is measured on each Lender's net
income. The Borrower agrees to save the Lenders harmless from and against any
and all present

                                       39

<PAGE>

and future claims or liabilities with respect to, or resulting from, any delay
in paying or failure to pay any such taxes or similar impositions (other than
taxes or similar impositions remitted by the Borrower to a Lender and which such
Lender fails to pay in a timely or appropriate manner). The obligations of the
Borrower pursuant to this Section 10.3 shall survive the termination of this
Agreement and the repayment of the Obligations.

         SECTION 10.4 INCREASED COSTS. Within 30 calendar days following written
demand, together with the written evidence of the justification therefore
(including in reasonable detail, the calculation thereof), the Borrower will pay
to the Administrative Agent, all direct increased costs incurred and any losses
suffered or increased payments made by the Lenders as a consequence of making
the Loan by reason of any change in law or regulation or the interpretation of
any law or regulation imposing any reserve, deposit, allocation of capital or
similar requirement; provided that (i) each Lender shall take commercially
reasonable steps to mitigate or reduce amounts otherwise payable by the Borrower
and (ii) Borrower is not responsible for costs arising more than 90 days prior
to receipt of notice.

         SECTION 10.5 EXPENSES. The Borrower shall pay:

                  (a) All (A) out-of-pocket costs and expenses incurred by the
Administrative Agent in connection with the preparation, execution and delivery
of this Agreement, the other Loan Documents, and any and all other documents and
instruments prepared in connection herewith, including the Administrative
Agent's legal fees and expenses in connection therewith, and (B) reasonable
costs and expenses of the Administrative Agent (including but not limited to
reasonable fees and expenses of the Administrative Agent's counsel) in
connection with all amendments, waivers, consents and other documents and
instruments prepared or entered into from time to time in connection with this
Agreement and the other Loan Documents, after the Closing Date; and

                  (b) All reasonable costs and expenses of the Administrative
Agent, the Lenders and the Issuing Bank (including without limitation the
reasonable fees and disbursements of each such Person's counsel) in connection
with (A) the enforcement of this Agreement and the other Loan Documents arising
pursuant to a breach by Borrower of any of the terms, conditions,
representations, warranties or covenants of any Loan Document to which it is a
party including without limitation workouts and renegotiations; or (B) defending
or prosecuting any actions, suits or proceedings relating to any of the Loan
Documents.

         All of such costs and expenses shall be payable by the Borrower to the
Administrative Agent, upon demand or as otherwise agreed upon by the
Administrative Agent and the Lenders, and shall constitute Obligations under
this Agreement. The Borrower's obligations to pay such costs and expenses shall
survive the termination of this Agreement and the repayment of the Obligations.

         SECTION 10.6 NOTICES.

                  (a) NOTICE TO THE BORROWER. All notices required to be
delivered to the Borrower pursuant to this Agreement shall be in writing and
shall be sent to the following

                                       40

<PAGE>

address, by hand delivery, recognized national overnight courier service, telex,
telegram or facsimile transmission:

                            Philip Balsamo, Chief Financial Officer
                            Vastera, Inc.
                            45025 Aviation Drive - Suite 300
                            Dulles, Virginia  20166
                            Telephone: (703) 661-9006
                            Facsimile: (703) 661-8497

                            with a copy to:

                            Brian D. Henderson, Vice President
                            Corporate and Legal Affairs
                            Vastera, Inc.
                            45025 Aviation Drive - Suite 300
                            Dulles, Virginia  20166
                            Telephone: (703) 661-9006
                            Facsimile: (703) 661-8497

                  (b) NOTICE TO THE ADMINISTRATIVE AGENT OR THE ISSUING BANK.
All notices required to be delivered to the Administrative Agent or the Issuing
Bank pursuant to this Agreement shall be in writing and shall be sent to the
following address, by hand delivery, recognized national overnight courier
service, telex, telegram, facsimile transmission or by the United States mail,
first class, postage prepaid:

                            PNC Bank, National Association
                            One PNC Plaza
                            249 Fifth Avenue
                            Pittsburgh, Pennsylvania 15222
                            Attention: Ms. Lisa Pierce
                            Telephone: (412) 762-6442
                            Facsimile: (412) 762-8672

                            with a copy to:

                            PNC Bank, National Association
                            600 Grant Street
                            Suite 2970
                            Pittsburgh, Pennsylvania 15219
                            Attention: Mr. Thomas Majeski
                            Telephone: (412) 762-2431
                            Facsimile: (412) 768-9259

                  (c) NOTICE TO THE LENDERS. All notices required to be
delivered to the Lenders pursuant to this Agreement shall be in writing (unless
otherwise provided herein) and shall be sent to the addresses set forth on the
signature pages of the Agreement, by hand delivery,

                                       41

<PAGE>

recognized national overnight courier service, telex, telegram, facsimile
transmission or by the United States mail, first class, postage prepaid.

                  (d) RECEIPT OF NOTICES. All such notices shall be effective
three (3) days after mailing, or when received, whichever is earlier. The
Borrower, the Lenders and the Administrative Agent may each change the address
for service of notice upon it by a notice in writing to the other parties hereto
in accordance with the above terms.

         SECTION 10.7 ASSIGNMENTS AND PARTICIPATIONS.

                  (a) ASSIGNMENTS. Subject to the remaining provisions of this
Subsection 10.7(a), any Lender (a "TRANSFEROR LENDER"), at any time, in the
ordinary course of its commercial banking business and in accordance with
applicable law, may sell to one or more financial institutions (individually a
"PURCHASING LENDER"), a portion or all of its rights and obligations under this
Agreement and the Notes then held by it, pursuant to an Assignment and
Assumption Agreement substantially in the form of EXHIBIT H executed by the
Transferor Lender, such Purchasing Lender and the Administrative Agent; subject,
however to the following requirements:

                           (i) Each such assignment must be in a minimum amount
of $4,000,000, or, if in excess thereof, in integral multiples of $1,000,000,
unless the Transferor Lender's Commitment is less than $4,000,000, in which case
such assignment shall be in the full amount of the Transferor Lender's
Commitment;

                           (ii) The Borrower and the Administrative Agent shall
consent to each such assignment, which consent shall not be unreasonably
withheld or delayed; and

                           (iii) The Transferor Lender shall pay to the
Administrative Agent a $3,500 service fee for each such transfer at the time of
each such transfer;

provided, however, the restrictions set forth in item (i) above shall not apply
(x) in the case of an assignment by a Lender to an Affiliate of such Lender or
(y) in the case of any assignment by any Transferor Lender upon the occurrence
and during the continuation of an Event of Default; and provided, further, that
upon the occurrence and during the continuance of an Event of Default the
consent of the Borrower to any assignment shall not be required.

         Upon the execution, delivery, acceptance and recording of any such
Assignment and Assumption Agreement, from and after the Transfer Effective Date
determined pursuant to such Assignment and Assumption Agreement, all parties
hereto agree that (a) the Purchasing Lender thereunder shall be a party hereto
as a Lender and, to the extent provided in such Assignment and Assumption
Agreement, shall have the rights and obligations of a Lender hereunder with a
Commitment as set forth therein, and (b) the Transferor Lender thereunder shall,
to the extent provided in such Assignment and Assumption Agreement, be released
from its obligations as a Lender under this Agreement. Such Assignment and
Assumption Agreement shall be deemed to amend this Agreement (without further
action) to the extent, and only to the extent, necessary to reflect the addition
of such Purchasing Lender as a Lender and the resulting adjustment of Commitment
Percentages arising from the purchase by such Purchasing Lender of all or a
portion of the rights and obligations of such Transferor Lender under this
Agreement and its

                                       42

<PAGE>

Notes. On or prior to the Transfer Effective Date, the Borrower shall execute
and deliver to the Administrative Agent, in exchange for the surrendered Notes
held by the Transferor Lender, to the order of such Purchasing Lender in an
amount equal to the Commitment or the Loans assumed by it and purchased by it
pursuant to such Assignment and Assumption Agreement, and new Notes payable to
the order of the Transferor Lender in an amount equal to the Commitment or the
Loans retained by it hereunder.

         In addition to the assignments permitted above, any Lender may assign
and pledge all or any portion of its Loans and Notes to any Federal Reserve Bank
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. No such assignment shall release the assigning Lender from its obligations
and duties hereunder.

                  (b) ASSIGNMENT REGISTER. The Administrative Agent shall
maintain, at its address referred to in Subsection 10.6(b), a copy of each
Assignment and Assumption Agreement delivered to it and a register (the
"REGISTER") for the recordation of the names and addresses of the Lenders and
the amount of the Loans owing to each Lender from time to time. The entries in
the Register shall be conclusive, in the absence of manifest error, and the
Borrower, the Administrative Agent and the Lenders may treat each Person whose
name is recorded in the Register as the owner of the Loans recorded therein for
all purposes of this Agreement. The Register shall be available at the office of
the Administrative Agent set forth in Subsection 10.6(b) for inspection by
either the Borrower or any Lender at any reasonable time and from time to time
upon reasonable prior notice.

                  (c) PARTICIPATIONS. Each Lender, in the ordinary course of its
commercial banking business and in accordance with applicable law, may sell to
one or more Participants a participating interest (in minimum amounts of
$4,000,000) in any Loan owing to such Lender, the interest of such Lender in any
Notes or the Commitment of such Lender. In the event of any such sale by a
Lender of a participating interest to a Participant, such Lender's obligations
under this Agreement to the other parties to this Agreement shall remain
unchanged, such Lender shall remain solely responsible for the performance
thereof, such Lender shall remain the holder of its Notes for all purposes under
this Agreement and the Borrower, the other Lenders and the Administrative Agent
shall continue to deal solely and directly with such Lender in connection with
such Lender's rights and obligations under this Agreement or its Notes. No
participation interest may be sold to a direct competitor of the Borrower.

         SECTION 10.8 WITHHOLDING OF INCOME TAXES. At least five (5) Business
Days prior to the first date on which interest or fees are payable hereunder for
the account of any Lender or Participant each Lender or Participant that is not
incorporated under the laws of the United States or a state thereof shall
deliver to the Borrower and the Administrative Agent two (2) duly completed
copies of United States Internal Revenue Service Form W-9, 4224 or 1001 or other
applicable form prescribed by the Internal Revenue Service. Such form shall
certify that such Lender or Participant is entitled to receive payments under
this Agreement and any applicable Note without deduction or withholding of any
United States Federal income taxes, or is subject to such tax at a reduced rate
under an applicable tax treaty or under United States Internal Revenue Service
Form W-8, or another applicable form or a certificate of such Lender or
Participant indicating that no such exemption or reduced rate is allowable with
respect to such

                                       43

<PAGE>

payments. Each Lender or Participant which delivers a Form W-8, W-9, 4224 or
1001 further undertakes to deliver to the Borrower and the Administrative Agent
two additional copies of such form (or a successor form) on or before the date
that such form expires or becomes obsolete or after the occurrence of any event
requiring a change in the most recent form so delivered by it, and such
amendments thereto or extensions or renewals thereof as may be reasonably
required by the Borrower or the Administrative Agent, either certifying that
such Lender or Participant is entitled to receive payments under this Agreement
and the Notes without deduction or withholding of any United States Federal
income taxes or is subject to such tax at a reduced rate under an applicable tax
treaty or stating that no such exemption or reduced rate is allowable. The
Administrative Agent shall be entitled to withhold United States Federal income
taxes at the full withholding rate, unless the Lender or Participant establishes
an exemption, or at the applicable reduced rate, as established pursuant to the
provisions of this Section 10.8.

         SECTION 10.9 INDEMNITY. The Borrower hereby agrees to indemnify the
Administrative Agent, the Lenders and the Issuing Bank and each of their
respective directors, officers, employees, attorneys, agents and Affiliates
against, and hold each of them harmless from, any loss, liabilities, damages,
claims, costs and expenses (including reasonable attorneys' fees and
disbursements) suffered or incurred by any of them arising out of, resulting
from or in any manner connected with, the execution, delivery and performance of
each of the Loan Documents, the Loans, the Notes and any and all transactions
related to or consummated in connection with the Loans, including, without
limitation, losses, liabilities, damages, claims, costs and expenses suffered or
incurred by the Administrative Agent, the Lenders and the Issuing Bank or any of
their respective directors, officers, employees, attorneys, agents or Affiliates
arising out of or related to investigating, preparing for, defending against, or
providing evidence, producing documents or taking any other action in respect of
any commenced or threatened litigation, administrative proceeding or
investigation under any Federal Securities Law or any other Governmental Rule of
any jurisdiction, or at common law or otherwise, that is alleged to arise out of
or is based on (i) any untrue statement or alleged untrue statement of any
material fact of the Borrower or any Affiliate of the Borrower in any document
or schedule filed with the Securities and Exchange Commission or any other
Governmental Authority; (ii) any omission or alleged omission to state any
material fact required to be stated in such document or schedule, or necessary
to make the statements made therein, in light of the circumstances under which
made, not misleading; (iii) any actual or alleged acts, practices or omissions
of the Borrower or its directors, officers, partners, employees, attorneys,
agents or Affiliates related to the making of any acquisition, purchase of
shares or assets pursuant thereto, financing of such purchases or the
consummation of any other transactions contemplated by any such acquisitions
that are alleged to be in violation of any Federal securities law or of any
other statute, regulation or other law of any jurisdiction applicable to the
making of any such acquisition, the purchase of shares or assets pursuant
thereto, the financing of such purchases or the consummation of the other
transactions contemplated by any such acquisition; or (iv) any withdrawals,
termination or cancellation of any such proposed acquisition for any reason
whatsoever. Excluding, however, any claim arising due to the gross negligence or
willful misconduct of the indemnified party. The indemnity set forth in this
Section 10.9 shall be in addition to any other obligations or liabilities of the
Borrower to the Administrative Agent, the Lenders of the Issuing Bank, or at
common law or otherwise. The provisions of this Section 10.9 shall survive the
payment of the Obligations and the termination of this Agreement.

                                       44

<PAGE>

         SECTION 10.10 SUCCESSORS AND ASSIGNS. This Agreement shall be binding
upon the Borrower, the Administrative Agent, the Lenders, the Issuing Bank and
their respective successors and assigns, and shall inure to the benefit of the
Borrower, the Administrative Agent, the Lenders, the Issuing Bank and their
respective successors and assigns; provided, however, that the Borrower shall
not assign its rights or duties hereunder or under any of the other Loan
Documents without the prior written consent of all of the Lenders and the
Lenders shall not assign their interest hereunder except in accordance with
Section 10.7 hereof.

         SECTION 10.11 CONFIDENTIALITY. The Administrative Agent, the Lenders
and the Issuing Bank shall keep confidential and not disclose to any Person,
other than to its directors, officers, employees, Affiliates and agents, and to
actual and potential Purchasing Lenders or Participants (and then, only on a
confidential basis), all non-public information concerning the Borrower and its
Affiliates which comes into the possession of the Administrative Agent, the
Lenders and the Issuing Bank during the term hereof. Notwithstanding the
foregoing, the Administrative Agent, the Lenders and the Issuing Bank may
disclose information concerning the Borrower (i) pursuant to the lawful
requirements or request of any Governmental Authority regulating banks or
banking, (ii) as required by Governmental Rule, judicial process or subpoena and
(iii) to their respective attorneys, accountants and auditors; provided that the
Administrative Agent, each Lender and the Issuing Bank shall advise the Borrower
of such disclosure.

         SECTION 10.12 SEVERABILITY. Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or enforceability without
invalidating the remaining portions hereof or affecting the validity or
enforceability of such provision in any other jurisdiction.

         SECTION 10.13 SURVIVAL. All representations, warranties, covenants and
agreements of the Borrower contained herein or in the other Loan Documents or
made in writing in connection herewith shall survive the issuance of the Notes
and shall continue in full force and effect so long as the Borrower may borrow
hereunder and so long thereafter until payment in full of the Loans, the Notes
and the Obligations is made.

         SECTION 10.14 PRESERVATION OF RIGHTS. No delay or omission on the part
of the Lenders to exercise any right or power arising hereunder will impair any
such right or power or be considered a waiver of any such right or power or any
acquiescence therein, nor will the action or inaction of the Lenders impair any
right or power arising hereunder. The Lenders' rights and remedies hereunder are
cumulative and not exclusive of any other rights or remedies which the Lenders
may have under other agreements, at law or in equity.

         SECTION 10.15 ILLEGALITY. In case any one or more of the provisions
contained in this Agreement should be invalid, illegal or unenforceable in any
respect, the validity, legality and enforceability of the remaining provisions
contained herein shall not in any way be affected or impaired thereby.

         SECTION 10.16 CHANGES IN WRITING. No modification, amendment or waiver
of any provision of this Agreement nor consent to any departure by the Borrower
therefrom, will in any event be effective unless the same is in writing and
signed by the Lenders and, in the case of amendments and modifications, by the
Borrower, and then such waiver or consent shall be

                                       45

<PAGE>

effective only in the specific instance and for the purpose for which given. No
notice to or demand on the Borrower in any case will entitle the Borrower to any
other or further notice or demand in the same, similar or other circumstance.

         SECTION 10.17 INTERPRETATION. In this Agreement, unless the Lenders and
the Borrower otherwise agree in writing, the singular includes the plural and
the plural the singular; words importing any gender include the other genders;
references to statutes are to be construed as including all statutory provisions
consolidating, amending or replacing the statute referred to; the word "OR"
shall be deemed to include "AND/OR," the words "INCLUDING," "INCLUDES" and
"INCLUDE" shall be deemed to be followed by the words "WITHOUT LIMITATION";
references to sections (or subdivisions of sections), schedules or exhibits are
to those of this Agreement unless otherwise indicated; and references to
agreements and other contractual instruments shall be deemed to include all
subsequent amendments and other modifications to such instruments, but only to
the extent such amendments and other modifications are not prohibited by or are
entered into in accordance with the terms of this Agreement. Section headings in
this Agreement are included for convenience of reference only and shall not
constitute a part of this Agreement for any other purpose. Unless otherwise
specified in this Agreement, all accounting terms shall be interpreted and all
accounting determinations shall be made in accordance with GAAP. If this
Agreement is executed by more than one party as Borrower, the obligations of
such persons or entities will be joint and several.

         SECTION 10.18 TERMINATION; REINSTATEMENT. Except as otherwise provided
in Section 10.9 and the other indemnification obligations and waivers under the
Loan Documents, this Agreement will terminate upon satisfaction of the following
events: (a) payment to the Lenders in full (unconditionally and indefeasibly) of
all monetary Obligations due hereunder and under the Loan Documents, and (b) the
termination of the Lenders' commitment to lend under the Revolving Credit Loan
and the Equipment Loan; provided, however, that this Agreement and the other
Loan Documents will, to the maximum extent not prohibited by applicable law, be
reinstated and the Obligations correspondingly increased (as though such
payment(s) had not been made) if at any time any amount received by the Lenders
in respect of any Obligations is rescinded or must otherwise be restored,
refunded or returned by the Lenders to the Borrower or any other person or
entity (i) upon or as a result of the insolvency, bankruptcy, dissolution,
liquidation or reorganization of the Borrower or (ii) upon or as a result of the
appointment of any receiver, intervenor, conservator, trustee or similar
official for the Borrower or for any substantial part of the assets of the
Borrower.

         SECTION 10.19 GOVERNING LAW. THIS AGREEMENT AND THE OTHER LOAN
DOCUMENTS SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
COMMONWEALTH OF PENNSYLVANIA, WITHOUT REGARD TO THE PRINCIPLES THEREOF REGARDING
CONFLICT OF LAWS, EXCEPTING APPLICABLE FEDERAL LAW AND EXCEPT ONLY TO THE EXTENT
PRECLUDED BY THE MANDATORY APPLICATION OF THE LAW OF ANOTHER JURISDICTION.

         SECTION 10.20 FORUM. THE PARTIES HERETO AGREE THAT ANY ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE OTHER LOAN
DOCUMENTS TO WHICH THE BORROWER IS A PARTY MAY

                                       46

<PAGE>

BE COMMENCED IN THE COURT OF COMMON PLEAS OF ALLEGHENY COUNTY, PENNSYLVANIA OR
IN THE DISTRICT COURT OF THE UNITED STATES FOR THE WESTERN DISTRICT OF
PENNSYLVANIA, AND THE PARTIES HERETO AGREE THAT A SUMMONS AND COMPLAINT
COMMENCING AN ACTION OR PROCEEDING IN EITHER OF SUCH COURTS SHALL BE PROPERLY
SERVED AND SHALL CONFER PERSONAL JURISDICTION IF SERVED PERSONALLY OR BY
CERTIFIED MAIL TO THE PARTIES AT THEIR ADDRESSES SET FORTH IN SECTION 10.6, OR
AS OTHERWISE PROVIDED UNDER THE LAWS OF THE COMMONWEALTH OF PENNSYLVANIA.
FURTHER, THE BORROWER HEREBY SPECIFICALLY CONSENTS TO THE PERSONAL JURISDICTION
OF THE COURT OF COMMON PLEAS OF ALLEGHENY COUNTY, PENNSYLVANIA AND THE DISTRICT
COURT OF THE UNITED STATES FOR THE WESTERN DISTRICT OF PENNSYLVANIA AND WAIVES
AND HEREBY ACKNOWLEDGES THAT IT IS ESTOPPED FROM RAISING ANY OBJECTION BASED ON
FORUM NON CONVENIENS, ANY CLAIM THAT EITHER SUCH COURT LACKS PROPER VENUE OR ANY
OBJECTION THAT EITHER SUCH COURT LACKS PERSONAL JURISDICTION OVER THE BORROWER
SO AS TO PROHIBIT EITHER SUCH COURT FROM ADJUDICATING ANY ISSUES RAISED IN A
COMPLAINT FILED WITH EITHER SUCH COURT AGAINST THE BORROWER BY THE
ADMINISTRATIVE AGENT, THE LENDERS OR THE ISSUING BANK CONCERNING THIS AGREEMENT
OR THE OTHER LOAN DOCUMENTS OR PAYMENT TO THE ADMINISTRATIVE AGENT, THE LENDERS
OR THE ISSUING BANK. THE BORROWER HEREBY ACKNOWLEDGES AND AGREES THAT THE CHOICE
OF FORUM CONTAINED IN THIS SECTION 10.20 SHALL NOT BE DEEMED TO PRECLUDE THE
ENFORCEMENT OF ANY JUDGMENT OBTAINED IN ANY FORUM OR THE TAKING OF ANY ACTION
UNDER THE LOAN DOCUMENTS TO ENFORCE THE SAME IN ANY APPROPRIATE JURISDICTION.

         SECTION 10.21 NON-BUSINESS DAYS. Whenever any payment under any of the
Loan Documents is due and payable on a day which is not a Business Day, except
as otherwise provided in this Agreement, such payment may be made on the next
succeeding Business Day, and such extension of time shall in each such case
shall be included in computing interest in connection with such payment. The
foregoing notwithstanding, all interest payments received by the Administrative
Agent shall be applied to the monthly, quarterly or other interest periods to
which they relate, regardless of when received by the Administrative Agent.

         SECTION 10.22 INTEGRATION. This Agreement is the entire agreement among
the parties relating to this financing transaction and it supersedes all prior
understandings and agreements, whether written or oral, between the parties
hereto relating to the transactions provided for herein.

         SECTION 10.23 HEADINGS. Section, Subsection and other headings used in
this Agreement are intended for convenience only and shall not affect the
meaning or construction of this Agreement.

         SECTION 10.24 WAIVER OF JURY TRIAL. EACH OF THE ADMINISTRATIVE AGENT,
THE LENDERS, THE ISSUING BANK AND THE BORROWER

                                       47

<PAGE>

IRREVOCABLY WAIVE ANY AND ALL RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY
ACTION, PROCEEDING OR CLAIM OF ANY NATURE RELATING TO THIS AGREEMENT OR ANY OF
THE OTHER LOAN DOCUMENTS, OR ANY TRANSACTION CONTEMPLATED IN ANY OF SUCH
DOCUMENTS. THE ADMINISTRATIVE AGENT, THE LENDERS, THE ISSUING BANK AND THE
BORROWER EACH ACKNOWLEDGE THAT THE FOREGOING WAIVER IS KNOWING AND VOLUNTARY.

         SECTION 10.25 ENTIRE AGREEMENT. This Agreement (including the documents
and instruments referred to herein) constitutes the entire agreement and
supersedes all other prior agreements and understandings, both written and oral,
between the parties with respect to the subject matter hereof.

         SIGNATURES; COUNTERPARTS. This Agreement may be signed in any number of
counterpart copies and by the parties hereto on separate counterparts and
delivered by telecopier, but all such copies shall constitute one and the same
instrument.

                           [SIGNATURE PAGES TO FOLLOW]

                                       48

<PAGE>

         The Borrower acknowledges that it has read and understood all the
provisions of this agreement, including the waiver of jury trial, and has been
advised by counsel as necessary or appropriate.

         WITNESS the due execution of this Loan Agreement as of the date first
written above.

ATTEST:                                    VASTERA, INC.

By:  /s/ Brian D. Henderson                By: /s/ Philip J. Balsamo
   -------------------------------            ----------------------------------

Print Name: Brian D. Henderson             Print Name: Philip J. Balsamo
           -----------------------                    --------------------------

Title:   Secretary                         Title:  Chief Financial Officer
      ----------------------------               -------------------------------

                                           PNC BANK, NATIONAL ASSOCIATION, IN
                                           ITS CAPACITY AS THE ADMINISTRATIVE
                                           AGENT AND THE ISSUING BANK

                                           By:  /s/ Thomas A. Majeski
                                              ----------------------------------

                                           Print Name:  Thomas A. Majeski
                                                      --------------------------

                                           Title:  Vice President and Director
                                                 -------------------------------

                    [SIGNATURES CONTINUED ON FOLLOWING PAGE]

                                 Signature Page

<PAGE>

         IN WITNESS WHEREOF, intending to be legally bound hereby, the
undersigned Lender has caused this Agreement by and among the Borrower, the
Lenders party hereto, the Issuing Bank and PNC BANK, NATIONAL Association, as
the Administrative Agent, to be executed by its duly authorized officers as of
the date first above written.

Commitment: $8,818,394.64                   PNC BANK, NATIONAL ASSOCIATION, IN
                                            ITS CAPACITY AS A LENDER
Commitment Percentage: 54.04%

                                            By: /s/ Thomas A. Majeski
                                               -------------------------------
                                            Name: Thomas A. Majeski
                                                 -----------------------------
                                            Title: Vice President and Director
                                                  ----------------------------

                    [SIGNATURES CONTINUED ON FOLLOWING PAGE]

                                 Signature Page

<PAGE>

         IN WITNESS WHEREOF, intending to be legally bound hereby, the
undersigned Lender has caused this Agreement by and among the Borrower, the
Lenders party hereto, the Issuing Bank and PNC BANK, NATIONAL Association, as
the Administrative Agent, to be executed by its duly authorized officers as of
the date first above written.

Commitment: $7,500,000                           COMERICA BANK - CALIFORNIA, AS
                                                 A LENDER

Commitment Percentage: 45.96%

                                                 By: /s/ Robert Shutt
                                                    ----------------------------
                                                 Name: Robert Shutt
                                                      --------------------------
                                                 Title: Vice President
                                                       -------------------------

                                 Signature Page

<PAGE>

ATTACHMENTS; SCHEDULES AND EXHIBITS:

Addendum
Schedule 5.6  Title to Property; Leases
Schedule 5.7  Litigation
Schedule 5.8  Tax Returns
Schedule 5.10 Environmental Matters
Schedule 5.11 Intellectual Property
Schedule 7.3  Guarantees
Schedule 7.4  Loans, Investments or Advances
Exhibit A     Form of Revolving Credit Loan Note
Exhibit B     Form of Equipment Loan Note
Exhibit C     Form of Revolving Loan Advance Request
Exhibit D     Form of First Equipment Loan Advance Request
Exhibit E     Form of Second Equipment Loan Advance Request
Exhibit F     Form of Closing Certificate
Exhibit G     Form of Compliance Certificate
Exhibit H     Form of Assignment and Assumption Agreement
Exhibit I     Letter of Credit Rider
Exhibit J     Form of Guaranty Agreement
Exhibit K     Form of Guarantor Security Agreement

<PAGE>

                                  SCHEDULE 5.6

                            TITLE TO PROPERTY; LEASES

                                Schedule 5.6 - 1.

<PAGE>

                                  SCHEDULE 5.7

                                   LITIGATION

                                Schedule 5.7 - 1.

<PAGE>

                                  SCHEDULE 5.8

                                   TAX RETURN

                                Schedule 5.8 - 1.

<PAGE>

                                  SCHEDULE 5.10

                              ENVIRONMENTAL MATTERS

                               Schedule 5.10 - 1.

<PAGE>

                                  SCHEDULE 5.11

                              INTELLECTUAL PROPERTY

                               Schedule 5.11 - 1.

<PAGE>

                                  SCHEDULE 7.3

                                   GUARANTEES

                                Schedule 7.3 - 1.

<PAGE>

                                  SCHEDULE 7.4

                         LOANS, INVESTMENTS AND ADVANCES

                                Schedule 7.4 - 1.<PAGE>

                                                                  Exhibit 10.1

                                    (The Company has applied to the Commission
                                                 for confidential treatment of
                                              certain portions of this exhibit)

                         AIRBUS A330 PURCHASE AGREEMENT

                          Dated as of December 21, 2000

                                     between

                                 AVSA, S.A.R.L.,

                                       and

                            NORTHWEST AIRLINES, INC.

<PAGE>

                                 C O N T E N T S

<TABLE>
<CAPTION>
         CLAUSES                    TITLE                                                 PAGE
         -------                    -----                                                 ----
         <S>                        <C>                                                  <C>
          0                         PURCHASE AGREEMENT                                      3

          1                         DEFINITIONS                                             4

          2                         SALE AND PURCHASE                                      10

          3                         CHANGES                                                11

          4                         PRICE                                                  13

          5                         PRICE REVISION                                         17

          6                         PAYMENT TERMS                                          18

          7                         PLANT REPRESENTATIVES - INSPECTION                     20

          8                         NORTHWEST'S ACCEPTANCE                                 22

          9                         DELIVERY                                               26

         10                         EXCUSABLE DELAY                                        28

         11                         INEXCUSABLE DELAY                                      32

         12                         WARRANTIES AND SERVICE LIFE POLICY                     34

         13                         PATENT INDEMNITY                                       57

         14                         TECHNICAL PUBLICATIONS                                 61

         15                         FIELD ASSISTANCE                                       62

         16                         TRAINING AND TRAINING AIDS                             63

         17                         VENDORS' PRODUCT SUPPORT                               64

         18                         BUYER FURNISHED EQUIPMENT AND DATA                     65

                                                                             ii

<PAGE>

                                 C O N T E N T S

       CLAUSES                      TITLE                                                 PAGE
       -------                      -----                                                 ----
       <S>                         <C>                                                   <C>
         19                         ASSIGNMENT                                             68

         20                         DATA RETRIEVAL                                         70

         21                         TERMINATION FOR CERTAIN EVENTS                         71

         22                         MISCELLANEOUS PROVISIONS                               73

                                                                            iii

<PAGE>

                                   C O N T E N T S

EXHIBITS
--------
<S>                               <C>
EXHIBIT A                           STANDARD SPECIFICATION

EXHIBIT B                           A330-300 OPTIONS SUMMARY

EXHIBIT C                           SCN FORM

EXHIBIT D                           AIRFRAME PRICE REVISION FORMULA

EXHIBIT E (GE)                      GENERAL ELECTRIC PRICE REVISION FORMULA

EXHIBIT E (PW)                      PRATT & WHITNEY PRICE REVISION FORMULA

EXHIBIT E (RR)                      ROLLS ROYCE PRICE REVISION FORMULA

EXHIBIT F                           CERTIFICATE OF ACCEPTANCE

EXHIBIT G                           SELLER SERVICE LIFE POLICY

EXHIBIT H                           BILL OF SALE

                                                                               1
<PAGE>

                                                  C O N T E N T S

LETTER AGREEMENTS
-----------------

LETTER AGREEMENT No. 1     PURCHASE INCENTIVES

LETTER AGREEMENT No. 2     OPTIONS AND FLEXIBILITY

LETTER AGREEMENT No. 3     CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT) GUARANTEE

LETTER AGREEMENT No. 4     DISPATCH RELIABILITY GUARANTEE

LETTER AGREEMENT No. 5A    PERFORMANCE GUARANTEES FOR GENERAL ELECTRIC POWERED
                           AIRCRAFT

LETTER AGREEMENT No. 5B    PERFORMANCE GUARANTEES FOR PRATT & WHITNEY POWERED
                           AIRCRAFT

LETTER AGREEMENT No. 5C    PERFORMANCE GUARANTEES FOR ROLLS ROYCE POWERED
                           AIRCRAFT

LETTER AGREEMENT No. 6     A330-500

LETTER AGREEMENT No. 7     MISCELLANEOUS ISSUES

LETTER AGREEMENT No. 8     PREDELIVERY PAYMENTS

LETTER AGREEMENT No. 9     CUSTOMIZATION

LETTER AGREEMENT No. 10   (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT)

LETTER AGREEMENT No. 11    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT)
</TABLE>

                                                                               2
<PAGE>

                   P  U  R  C  H  A  S  E      A  G  R  E  E  M  E  N  T

This agreement is made this 21st day of December 2000

between
                  AVSA, a societe a responsabilite limitee organized and
                  existing under the laws of the Republic of France, having its
                  registered office located at

                  2, rond-point Maurice Bellonte
                  31700 BLAGNAC
                  FRANCE

                  (hereinafter referred to as "AVSA")

and
                  Northwest Airlines, Inc., a corporation organized and existing
                  under the laws of the State of Minnesota, United States of
                  America, having its principal corporate offices located at

                  2700 Lone Oak Parkway
                  Eagan, Minnesota 55121, USA

                  (hereinafter referred to as "Northwest")

WHEREAS,

a)       Northwest wishes to purchase, and AVSA is willing to sell, twenty-four
         (24) firm Airbus Industrie A330-300 model aircraft, upon the terms and
         conditions herein provided;

                                                                     3

<PAGE>

b) AVSA is willing to grant Northwest options to purchase (CONFIDENTIAL
MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) option and
CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITOES AND
EXCHANGE COMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)GUARANTEE
(CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)
purchase right Airbus A330-300 model aircraft, upon the terms and conditions
herein provided;
         and

c)       AVSA is a sales subsidiary of Airbus Industrie, G.I.E., and shall
         purchase the Aircraft from Airbus Industrie, G.I.E., for resale to
         Northwest.

NOW THEREFORE IT IS AGREED AS FOLLOWS:

                                                                     4

<PAGE>

1 -      DEFINITIONS

         For all purposes of this Agreement, except as otherwise expressly
         provided or unless the context otherwise requires, the following terms
         shall have the following meanings:

A330 PRODUCT SUPPORT AGREEMENT - the Airbus Product Support Agreement for
A330 Aircraft dated as of even date herewith among Northwest, ASCO and AVSA,
together with all exhibits, appendixes and letter agreements thereto.
(CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)

         AFFILIATE - with respect to any person or entity, any other person or
         entity directly or indirectly controlling, controlled by or under
         common control with such person or entity, not including any of the
         Associated Contractors. For purposes of the preceding sentence,
         "control" of an entity shall mean the direct or indirect ownership of
         voting securities having the power to direct or cause the direction of
         the management and policies of such entity.

         AGREEMENT - this Airbus A330-300 Purchase Agreement, including all
         exhibits, appendixes and letter agreements attached hereto, as the same
         may be amended or modified and in effect from time to time.

         AIRCRAFT - any or all of the (i) Firm Aircraft, (ii) Option Aircraft
         that have been converted to a firm order, or (iii) Purchase Right
         Aircraft that have been converted to a firm order, to be purchased by
         AVSA and sold to Northwest pursuant to this Agreement, together with
         all components, equipment, parts and accessories installed in or on
         such aircraft and the Propulsion Systems installed thereon upon
         delivery.

         AIRFRAME - any Aircraft, excluding the Propulsion Systems therefor.

         ASCO - Airbus Service Company, Inc., a corporation organized and
         existing under the laws of Delaware, having its registered office
         located at 198 Van Buren Street, Suite 300, Herndon, VA 20170, or any
         successor thereto.

         ASSOCIATED CONTRACTORS - collectively, the members and, for certain
         purposes, subcontractors of the Manufacturer from time to time, which
         members presently are:

         (1)      EADS Airbus S.A. (formerly known as Aerospatiale Matra
                  Airbus S.A.) ("Aerospatiale"), whose principal office is at
                  37, Boulevard de Montmorency
                  75016 Paris
                  France

                  or any successor thereto

                                                                     5

<PAGE>

         (2)      Airbus UK Ltd , whose principal office is at
                  Warwick House
                  PO Box 87
                  Farnborough Aerospace Centre
                  Farnborough
                  Hants GU14 6YU
                  England

                  or any successor thereto

         (3)      Construcciones Aeronauticas S.A., whose principal office is at
                  404 Avenida de Aragon
                  28022 Madrid
                  Spain

                  or any successor thereto

         (4)      EADS Airbus GmbH (formerly known as DaimlerChrysler Aerospace
                  Airbus GmbH), whose principal office is at
                  Kreetslag 10
                  Postfach 95 01 09
                  21111 Hamburg
                  Germany

                  or any successor thereto

         ATA SPECIFICATION 100 - the specification issued by the Air Transport
         Association of America relating to manufacturers' technical data.

         ATA SPECIFICATION 101 - the specification issued by the Air Transport
         Association of America relating to ground equipment technical data.

         ATA SPECIFICATION 102 - the specification issued by the Air Transport
         Association of America relating to software programs.

         ATA SPECIFICATION 200 - the specification issued by the Air Transport
         Association of America relating to integrated data processing.

         ATA SPECIFICATION 300 - the specification issued by the Air Transport
         Association of America relating to the packaging of spare parts
         shipments.

         ATA SPECIFICATION 2000 - the specification issued by the Air Transport
         Association of America relating to an industry-wide communication
         system linking suppliers and users for the purposes of spares
         provisioning, purchasing, order administration, invoicing and
         information or data exchange.

                                                                     6

<PAGE>

         ATA SPECIFICATION 2100 - the specification issued by the Air Transport
         Association of America relating to the standards for the presentation
         of technical information prepared as digital media (magnetic tape or CD
         ROM).

         AVSA-SUPPLIED BUYER FURNISHED EQUIPMENT - as referred to in Subclause
         18.7 of this Agreement.

         BASE PRICE - for any Aircraft, Airframe or Propulsion Systems, as
         defined in Subclause 4.1 of this Agreement.

         BUYER FURNISHED EQUIPMENT - for any Aircraft, all the items of
         equipment that shall be furnished by Northwest and installed in the
         Aircraft by AVSA, as defined in the Specification.

         DEVELOPMENT CHANGES - as defined in Subclause 3.2 of this Agreement.

         DGAC - the Direction Generale de l'Aviation Civile of France, or any
         successor agency thereto.

         EXCUSABLE DELAY - as defined in Subclause 10.1 of this Agreement.

         FAA - the U.S. Federal Aviation Administration, or any successor agency
         thereto.

         FAILURE - as defined in Subclause 12.2.1.2 of this Agreement.

         FINAL CONTRACT PRICE - as defined in Subclause 4.2 of this Agreement.

         FIRM AIRCRAFT - any or all of the twenty-four (24) Airbus Industrie
         A330-300 model aircraft to be purchased by AVSA and sold to Northwest
         pursuant to this Agreement, together with all components, equipment,
         parts and accessories installed in or on such aircraft and the
         Propulsion Systems installed thereon upon delivery.

         IN-HOUSE WARRANTY - as defined in Subclause 12.1.7 (i) of this
         Agreement.

         IN-HOUSE WARRANTY LABOR RATE - as defined in Subclause 12.1.7(v)(a) of
         this Agreement.

         INTERFACE PROBLEM - as defined in Subclause 12.4.1 of this Agreement.

         ITEM - as defined in Subclause 12.2.1.1 of this Agreement.

         LIBOR - for each stated interest period, the rate determined on the
         basis of the offered rates for deposits in US dollars, which appear on
         the Reuters Screen LIBO Page as of 11:00 a.m., London time, on the day
         that is two (2) days (other than a Saturday, Sunday or a day that is a
         legal holiday or a day on which banking institutions are authorized to
         close in the City of New York, New York, London, England, or Paris,
         France) before the first

                                                                     7

<PAGE>

         day of an interest period. If at least two (2) such offered rates
         appear on the Reuters Screen LIBO Page, the rate for that interest
         period shall be the arithmetic mean of such offered rates (rounded
         upwards, if necessary, to the nearest one hundred thousandth of a
         percentage point). If only one (1) offered rate appears, the rate
         for that interest period shall be the average (rounded upwards, if
         necessary, to the nearest one hundred thousandth of a percentage point)
         of the respective rates notified to AVSA by four (4) major banks in the
         London interbank market selected by AVSA and Northwest as the rate at
         which such bank is offered deposits in US dollars at or about 11:00
         a.m., London time, on the date that is two (2) days (other than a
         Saturday, Sunday or a day that is a legal holiday or a day on which
         banking institutions are authorized to close in the City of New York,
         New York, London, England, or Paris, France) prior to the first day of
         such interest period in the interbank Eurodollar market on such date
         for that interest period and in a principal amount equal to an amount
         of not less than $1,000,000, provided, however, that if the banks
         selected as aforesaid are not quoting as set forth in this sentence,
         the rate in respect of such interest period shall be determined on the
         basis of LIBOR in effect for the previous interest period. "Reuters
         Screen LIBO Page" means the display designated as page "LIBO" on the
         Reuters Monitor Money Rates Service (or any successor to such page or
         service).

         MANUFACTURER - Airbus Industrie, a "Groupement d'Interet Economique"
         established under "Ordonnance" No. 67-821 dated September 23, 1967, of
         the Republic of France.

         MATERIAL BREACH - as defined in Subclause 21.1 of this Agreement.

OPTION AIRCRAFT - any or all of the (CONFIDENTIAL MATERIAL OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT)
         Airbus Industrie A330-300 aircraft for which AVSA has granted Northwest
         an option to purchase (excluding the Purchase Right Aircraft), together
         with all components, equipment, parts and accessories installed in or
         on such aircraft and the Propulsion Systems installed thereon upon
         delivery.

         PREDELIVERY PAYMENT - any payment made against the Final Contract Price
         of an Aircraft in accordance with Subclause 6.2 of this Agreement.

         PRIME RATE - the rate of interest per annum publicly announced from
         time to time by Citibank, N.A. in New York, New York, as its prime or
         base or equivalent lending rate.

         PRODUCT SUPPORT AGREEMENTS - as referred to in Subclause 17.1.1 of this
         Agreement.

         PROPULSION SYSTEMS - the two (2) General Electric CF6-80-E1A3, Pratt &
         Whitney PW 4168A or Rolls Royce Trent 772B powerplants to be installed
         on an Aircraft at delivery, each composed of the powerplant (as such
         term is defined in Chapters 70-80 of ATA Specification 100 (Revision
         22), but limited to the equipment, components, parts and accessories
         included in the powerplant, as so defined), that have been sold to the
         Manufacturer by, as applicable, General Electric, Pratt & Whitney or
         Rolls Royce.

                                                                     8

<PAGE>

PURCHASE RIGHT AIRCRAFT - any or all of the (CONFIDENTIAL MATERIAL OMITTED AND
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT)

         Airbus Industrie A330-300 model aircraft for which Northwest has a
         purchase right, together with all components, equipment, parts and
         accessories installed in or on such aircraft and the Propulsion Systems
         installed thereon upon delivery.

         RFC - as defined in Subclause 3.3 of this Agreement.

         SCN - as defined in Subclause 3.1 of this Agreement.

         SELLER FURNISHED EQUIPMENT - for any Aircraft, all of the items of
         equipment that shall be furnished by AVSA and installed in the Aircraft
         by AVSA, as defined in the Specification.

         SELLER SERVICE LIFE POLICY - as referred to in Subclause 12.2 of this
         Agreement.

         SPECIFICATION - as defined in Subclause 2.2 of this Agreement.

         STANDARD SPECIFICATION - as defined in Subclause 2.2 of this Agreement.

         VENDOR - each manufacturer (other than the manufacturer of the
         Propulsion Systems) and any successor thereof, of a component,
         equipment, accessory or part installed in an Aircraft at its delivery
         to Northwest under this Agreement, or any replacement therefor, other
         than a Warranted Part, and listed in the Supplier Product Support
         Agreements manual referred to in Subclause 12.3.1 of this Agreement.

         VENDOR COMPONENT - as defined in Subclause 12.4.3 of this Agreement.

         VENDOR PARTS - as defined in Subclause 12.3.1 of this Agreement.

         WARRANTED PART - as defined in Subclause 12.1.1 of this Agreement.

         WARRANTY CLAIM - as defined in Subclause 12.1.6(v) of this Agreement.

         WORKING DAY - with respect to any action to be taken hereunder, a day
         other than a Saturday, Sunday or other day designated as a holiday in
         the jurisdiction in which such action is required to be taken.

         The following rules of construction apply to this Agreement:

         (i)    the definition of a singular shall apply to plurals of the same
                words;

         (ii)   "include" and "including" are not limiting;

                                                                     9

<PAGE>

         (iii)  "hereby," "herein," "hereof," "hereunder," "the Agreement,"
                "this Agreement," and any like words refer to this Agreement and
                not a particular Clause thereof; and

         (iv)   a reference herein to a Clause, Subclause, Exhibit, Attachment
                or Appendix without further reference is to the relevant Clause,
                Subclause, Exhibit, Attachment or Appendix of this Agreement.

         Technical and trade terms not otherwise defined herein shall have the
         meanings assigned to them as generally accepted in the aircraft
         manufacturing industry.

                                                                    10

<PAGE>

2 -      SALE AND PURCHASE

2.1      GENERAL

         AVSA shall cause to be manufactured and shall sell and deliver, and
         Northwest shall buy and take delivery of, the Aircraft subject to the
         terms and conditions contained in this Agreement.

2.2      SPECIFICATION DOCUMENTS

         The Aircraft shall be manufactured in accordance with the A330-300
         Standard Specification, Document No. G.000.03000, Issue 6, including
         Revision 1, dated July 15, 1998 (the "Standard Specification"). Such
         Standard Specification, a copy of which is annexed hereto as Exhibit A
         to this Agreement, as amended by the change orders set forth in Exhibit
         B hereto, is hereinafter referred to as the "Specification." The
         Specification may be further modified from time to time pursuant to the
         provisions of Clause 3 below.

2.3      CERTIFICATION

         Each Aircraft shall be delivered to Northwest with the Certificate of
         Airworthiness for Export issued by the DGAC and in a condition enabling
         Northwest (or a person eligible to obtain such certificate under then
         applicable law) to obtain at the time of delivery a Standard
         Airworthiness Certificate issued pursuant to Part 21 of the US Federal
         Aviation Regulations permitting Northwest to operate the Aircraft under
         Part 121 of the US Federal Aviation Regulations. AVSA shall have no
         obligation, whether before, at or after delivery of any Aircraft, to
         make any alterations to such Aircraft to enable such Aircraft to meet
         FAA requirements for non-standard operation on Northwest's routes.
         Except as set forth in this Subclause 2.3, AVSA shall not be required
         to obtain any other certificate or approval with respect to the
         Aircraft.

2.4      AVSA shall deliver each Aircraft with provisions suitable for that
         equipment required to be incorporated on such Aircraft to meet those
         additional requirements of the US Federal Aviation Regulations which
         (i) are generally applicable with respect to transport category
         aircraft to be used in United States certificated air carriage and (ii)
         are required to be complied with on or before the date of delivery of
         such Aircraft, provided that any required amendment to the
         Specification resulting from such additional requirements shall be set
         forth in an SCN which shall be effected as provided in Clause 3 hereof.
         Northwest shall cooperate with AVSA in complying with the foregoing
         requirements.

                                                                    11

<PAGE>

3 -      CHANGES

3.1      SPECIFICATION CHANGE NOTICES

         The Specification may be amended from time to time by a Specification
         Change Notice (each such Specification Change Notice being herein
         called an "SCN" and being in the form of Exhibit C hereto). Each SCN
         shall set forth in detail the particular changes to be made in the
         Specification, any materials to be deleted from the Aircraft by AVSA in
         connection with such SCN, and the effect, if any, of such changes on
         design, performance, weight, balance, time of delivery, Buyer Furnished
         Equipment and price of each Aircraft affected thereby and
         interchangeability or replaceability of parts. SCNs shall not be
         binding on either party until signed by persons duly authorized in
         writing by Northwest and AVSA, but upon being so signed shall
         constitute amendments to this Agreement.

3.2      DEVELOPMENT CHANGES

         The Specification may also be revised by AVSA without an SCN or
         Northwest's consent to incorporate Manufacturer-decided changes that
         are deemed necessary or useful to correct defects, improve the Aircraft
         or its process of manufacture, prevent delay, or ensure compliance with
         this Agreement and that do not increase the price or adversely affect
         the delivery, overall dimensions, guaranteed weight, maintenance
         requirements or performance of the Aircraft or adversely change the
         interchangeability or replaceability requirements of the Specification
         (hereinafter called "Development Changes"). AVSA shall notify Northwest
         of all Development Changes prior to incorporation in the Specification.

3.3      REQUESTS AND APPROVALS

3.3.1    In the event that Northwest requests a change to the Specification,
         AVSA shall issue a Request for Change (RFC) and carry out a feasibility
         study of such change. If AVSA determines that such RFC is feasible to
         incorporate, AVSA shall produce an SCN and submit such SCN to Northwest
         for Northwest's approval. If such SCN is rejected by Northwest, such
         RFC and proposed SCN shall be canceled without charge to Northwest.

3.3.2    In the event that Northwest requests AVSA in writing to incorporate a
         proposed change (excluding Development Changes) in an Aircraft and AVSA
         agrees to such request but the change is not subsequently made the
         subject of an SCN for any reason (other than AVSA's unreasonable
         refusal to sign the SCN or otherwise acting in bad faith), Northwest
         shall pay AVSA the full cost of design and other work resulting from
         such request and incurred by AVSA, provided that in the event AVSA's
         reasonable estimate of the cost of developing such proposed change is
         higher than US$ (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
         WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)

         AVSA shall have notified Northwest in writing within (CONFIDENTIAL
         MATERIAL

                                                                    12

<PAGE>

         OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) Working
         Days after AVSA's receipt of Northwest's request of such cost estimate
         and secured Northwest's agreement prior to incurring any such costs.

         In the event that Northwest requests AVSA in writing to proceed with a
         proposed change before any requisite approval of the DGAC and FAA has
         been obtained and such DGAC or FAA approval is not subsequently
         obtained, any SCN executed in connection with such proposed change
         shall be(CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT).

3.4      SPECIFICATION CHANGES BEFORE DELIVERY

         If, pursuant to the promulgation of any applicable law or regulation,
         any change in the Specification has to be made before delivery of any
         Aircraft to enable Northwest to obtain a Standard Airworthiness
         Certificate for such Aircraft referred to in Subclause 2.3, AVSA shall
         make or cause to be made the required change or modification to the
         Aircraft. For each such change, the parties shall sign an SCN
         specifying the effect, if any, of such change on design, performance,
         weight, balance, time of delivery, and Buyer Furnished Equipment of
         each Aircraft affected thereby and interchangeability or replaceability
         of parts. If AVSA anticipates that the scheduled delivery of any
         Aircraft shall be postponed by reason of such change, the delivery date
         of such Aircraft as provided in Subclause 9.1 shall be extended to the
         extent of such postponement.

         The effect on price of such a change shall be borne by(CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT).

3.5      SPECIFICATION CHANGES AFTER DELIVERY

         Subclause 3.4 shall not require AVSA to make any changes or
         modifications to or to make any payments or take any other action with
         respect to any Aircraft delivered to Northwest prior to the time any
         law or regulation referred to in Subclause 3.4 becomes effective. Any
         such changes or modifications made to an Aircraft after its delivery to
         Northwest shall be at Northwest's expense.

                                                                    13

<PAGE>

4 -      PRICE

4.1      BASE PRICE OF THE AIRCRAFT

         The Base Price of each Aircraft is the sum of:

         (i)      the Base Price of the Airframe, and

         (ii)     the Base Price of the Propulsion Systems.

4.1.1    BASE PRICE OF THE AIRFRAME

4.1.1.1  The Base Price of the Airframe shall be the sum of the Base Prices set
         forth below in (i), (ii) and (iii):

         (i)      the Base Price of the Standard A330 Airframe, as defined in
                  the Standard Specification set forth in Exhibit A hereto
                  (excluding Buyer Furnished Equipment, Propulsion Systems and
                  SCNs), at delivery conditions prevailing in January 2000,
                  which is:

                           US$ (CONFIDENTIAL MATERIAL OMITTED AND FILED
                           SEPARATELY WITH THE SECURITIES AND EXCHANGE
                           COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                           TREATMENT)

                           (US dollars(CONFIDENTIAL MATERIAL OMITTED AND FILED
                           SEPARATELY WITH THE SECURITIES AND EXCHANGE
                           COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                           TREATMENT)) and

         (ii)     the Base Price of SCNs covering options selected by Northwest
                  from Exhibit B, as it may be supplemented, which, at delivery
                  conditions prevailing in January 2000, is estimated at:

                           US$ (CONFIDENTIAL MATERIAL OMITTED AND FILED
                           SEPARATELY WITH THE SECURITIES AND EXCHANGE
                           COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                           TREATMENT)

                           (US dollars-(CONFIDENTIAL MATERIAL OMITTED AND FILED
                           SEPARATELY WITH THE SECURITIES AND EXCHANGE
                           COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                           TREATMENT)), and

         (iii)    the Base Price of seats and galleys, the price and scope for
                  which will be agreed between AVSA and Northwest in an SCN.

                                                                    14

<PAGE>

4.1.1.2  The Base Price of the Airframe of each Aircraft shall be revised to the
         actual delivery date of such Aircraft in accordance with the Airframe
         Price Revision Formula set forth in Subclause 5.1 hereto.

                                                                    15

<PAGE>

4.1.2    BASE PRICE OF THE PROPULSION SYSTEMS

4.1.2.1  The Base Price of the Propulsion Systems (General Electric CF6-80-E1A3)
         and additional standard equipment at delivery conditions prevailing in
         January 2000 is:

                           US$ --(CONFIDENTIAL MATERIAL OMITTED AND FILED
                           SEPARATELY WITH THE SECURITIES AND EXCHANGE
                           COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                           TREATMENT)

                           (US dollars --(CONFIDENTIAL MATERIAL OMITTED AND
                           FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
                           COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                           TREATMENT)).

         Said Base Price has been calculated with reference to the Reference
         Price indicated by General Electric of US$(CONFIDENTIAL MATERIAL
         OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) (US
         dollars --(CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT) )in accordance with delivery conditions
         prevailing in April 1998 (CPI 151.09).

         Said Reference Price is subject to adjustment to the date of delivery
         of the Aircraft in accordance with the General Electric Price Revision
         Formula set forth in Subclause 5.2 hereto.

4.1.2.1  The Base Price of the Propulsion Systems (Pratt & Whitney PW 4168A) and
         additional standard equipment at delivery conditions prevailing in
         January 2000 is:

                           US$ (CONFIDENTIAL MATERIAL OMITTED AND FILED
                           SEPARATELY WITH THE SECURITIES AND EXCHANGE
                           COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                           TREATMENT)

                           (US dollars --(CONFIDENTIAL MATERIAL OMITTED AND
                           FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
                           COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                           TREATMENT) ).

         Said Base Price has been calculated with reference to the Reference
         Price indicated by Pratt & Whitney of US$(CONFIDENTIAL MATERIAL OMITTED
         AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
         PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) (US
         dollars(CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY

                                                                    16

<PAGE>

         WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)) in accordance with economic conditions
         prevailing in December 1998.

         Said Reference Price is subject to adjustment to the date of delivery
         of the Aircraft in accordance with the Pratt & Whitney Revision Formula
         set forth in Subclause 5.2 hereto.

4.1.2.1  The Base Price of the Propulsion Systems (Rolls Royce Trent 772B) and
         additional standard equipment at delivery conditions prevailing in
         January 2000 is:

                           US$ (CONFIDENTIAL MATERIAL OMITTED AND FILED
                           SEPARATELY WITH THE SECURITIES AND EXCHANGE
                           COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                           TREATMENT)

                           (US dollars(CONFIDENTIAL MATERIAL OMITTED AND FILED
                           SEPARATELY WITH THE SECURITIES AND EXCHANGE
                           COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                           TREATMENT) ).

         Said Base Price has been calculated with reference to the Reference
         Price indicated by Rolls Royce of US(CONFIDENTIAL MATERIAL OMITTED AND
         FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
         TO A REQUEST FOR CONFIDENTIAL TREATMENT) (US dollars (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) ) in
         accordance with delivery conditions prevailing in January 2000.

         Said Reference Price is subject to adjustment to the date of delivery
         of the Aircraft in accordance with the Rolls Royce Revision Formula set
         forth in Subclause 5.2 hereto.

4.2      FINAL CONTRACT PRICE

         The Final Contract Price of an Aircraft shall be the sum of:

         (i)      the Base Price of the Airframe constituting a part of such
                  Aircraft, as adjusted to the date of delivery of such Aircraft
                  in accordance with Subclause 5.1 of this Agreement;

         (ii)     the price (as of delivery conditions prevailing in January
                  2000), of any SCNs constituting a part of such Aircraft that
                  are entered into pursuant to Clause 3 (excluding Subclause
                  3.4) after the date of execution of this Agreement, as
                  adjusted to the date of delivery of such Aircraft in
                  accordance with Subclause 5.1

                                                                    17

<PAGE>

                  of this Agreement;

         (iii)    the Reference Price of the installed Propulsion Systems
                  constituting a part of such Aircraft, as adjusted to the date
                  of delivery of such Aircraft in accordance with Subclause 5.2
                  of this Agreement; and

         (iv)     any other amount resulting from any other provisions of this
                  Agreement and/or any other written agreement between Northwest
                  and AVSA relating to the Aircraft and specifically making
                  reference to the Final Contract Price of an Aircraft.

4.3      TAXES, DUTIES AND IMPOSTS

4.3.1    AVSA shall bear and pay the amount of any and all taxes, duties,
         imposts or similar charges of any nature whatsoever (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) that are
         (i) imposed upon Northwest, (ii) imposed upon AVSA with an obligation
         on Northwest to withhold or collect the amount thereof from AVSA or
         (iii) imposed upon Northwest with an obligation on AVSA to withhold or
         collect such amount from Northwest, and that are levied, assessed,
         charged or collected for or in connection with the fabrication,
         manufacture, modification, assembly, sale, delivery, use of or payment
         under this Agreement for any Aircraft, component, accessory, equipment
         or part delivered or furnished hereunder, provided such taxes, duties,
         imposts or similar charges have been levied, assessed, charged or
         collected under laws promulgated and enforceable in France
         (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

4.3.2    Northwest shall bear and pay the amount of any and all taxes, duties,
         imposts or similar charges of any nature whatsoever that are (i)
         imposed upon AVSA, (ii) imposed upon Northwest with an obligation on
         AVSA to collect the amount thereof for Northwest or (iii) imposed upon
         AVSA with an obligation for Northwest to withhold such amount from
         AVSA, and that are levied, assessed, charged or collected for or in
         connection with the fabrication, manufacture, modification, assembly,
         sale, delivery or use of or payment under this Agreement for any
         Aircraft, component, accessory, equipment or part delivered or
         furnished hereunder, provided such taxes, duties, imposts or similar
         charges have been levied, assessed, charged or collected under laws
         promulgated and enforceable in countries other than France
         (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT) If Northwest is compelled by law to pay such taxes, duties,
         imposts or similar charges as a deduction or withholding , then
         Northwest shall ensure that the sums received by AVSA under this
         Agreement shall be equal to the full amounts expressed to be due AVSA
         hereunder, without deduction or withholding on account of and free from
         any and all taxes, levies, imposts, duties or charges of whatever
         nature, and Northwest shall pay such

                                                                    18

<PAGE>

         additional amounts as may be necessary so that the net amount received
         by AVSA after such deduction or withholding shall equal the amounts
         that would have been received in the absence of such deduction or
         withholding.

4.3.3    AVSA shall in its own name do all things necessary with respect to the
         export of the Aircraft from France and shall pay any customs duties,
         taxes and fees required to be paid with respect to such export of the
         Aircraft which are imposed under laws promulgated and enforceable in
         France(CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)

4.3.4    It is expressly understood and agreed that AVSA's undertaking in
         Subclause 4.3.1 shall not apply to taxes, duties, imposts or similar
         charges of any nature whatsoever, relating to the use of or payment for
         any Aircraft (excluding income, franchise, and doing business taxes
         imposed on AVSA), component, accessory, equipment or part delivered or
         furnished under this Agreement in the United States of America.

4.3.5    It is expressly understood and agreed that Northwest's undertaking in
         Subclause 4.3.2 shall not apply to taxes imposed on AVSA that are based
         on or measured by gross or net income or receipts or that are based on
         or measured by AVSA's doing business, capital or net worth, or other
         taxes, however denominated, in the nature of such taxes.

                                                                    19

<PAGE>

5 -      PRICE REVISION

5.1      AIRFRAME PRICE REVISION FORMULA

         The Base Price of each Airframe for each Aircraft shall be revised to
         the actual delivery date of such Aircraft in accordance with the
         revision formula set forth in the Airframe Price Revision Formula
         attached hereto in Exhibit D.

5.2      PROPULSION SYSTEMS PRICE REVISION FORMULA

         The Reference Price of the Propulsion Systems shall be revised to the
         actual delivery date of the Aircraft on which such Propulsion Systems
         are installed in accordance with the revision formula set forth in
         Exhibit E hereto.

                                                                    20

<PAGE>

6 -      PAYMENT TERMS

6.1      Northwest shall pay all sums due hereunder in immediately available
         funds in United States dollars by credit to Credit Lyonnais, New York
         Branch, for transfer by Credit Lyonnais to AVSA's account with Credit
         Lyonnais at 1, Esplanade Compans Caffarelli, 31000 Toulouse, France, or
         to such other account at any New York Clearing House Member Bank as
         AVSA shall designate by notice to Northwest.

6.2      PREDELIVERY PAYMENTS

         Predelivery Payments shall be paid by Northwest to AVSA for each
         Aircraft in accordance with the provisions of this Agreement.

6.3      PAYMENT OF FINAL CONTRACT PRICE

         Concurrently with the delivery of each Aircraft, Northwest shall pay to
         AVSA the Final Contract Price therefor, less the total amount of the
         Predelivery Payments theretofore received by AVSA for such Aircraft
         under Subclause 6.2 above. AVSA's receipt of the full amount of such
         payments shall be a condition precedent to AVSA's obligation to deliver
         such Aircraft.

6.4      PAYMENT OF OTHER AMOUNTS

6.4.1    Unless otherwise expressly provided for herein, any payments due
         hereunder or in respect of an Aircraft in addition to those referred to
         in Subclauses 6.2 and 6.3 above shall be paid by Northwest concurrently
         with the delivery of the corresponding Aircraft or, if invoiced after
         delivery of such Aircraft, within (CONFIDENTIAL MATERIAL OMITTED AND
         FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
         TO A REQUEST FOR CONFIDENTIAL TREATMENT)after the invoice date. AVSA
         and Northwest agree that with respect to payments to be made under this
         Subclause 6.4.1, and for the purposes of Clause 21, Northwest shall not
         be deemed to be in default unless such payment is not made within
         (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)after invoice date.

6.4.2    Notwithstanding any other rights AVSA may have at contract or at law,
         Northwest and AVSA hereby agree that should any amount under this
         Agreement become due and payable by Northwest, and not be paid in full
         in immediately available funds on the date due (unless contested by
         Northwest in good faith), then AVSA shall have the right to debit and
         apply, in whole or in part, the unused amount of any credit made
         available by AVSA to Northwest against such unpaid amount. AVSA shall
         promptly notify Northwest in writing after such debiting and
         application.

6.5      OVERDUE PAYMENTS

                                                                    21

<PAGE>

         If any payment due AVSA is not received by AVSA on the date or dates as
         agreed upon between Northwest and AVSA, AVSA shall have the right to
         claim from Northwest, and Northwest shall promptly pay to AVSA, upon
         receipt of such claim, interest (on the basis of a 365 day year) at a
         rate per annum equal to the sum of (CONFIDENTIAL MATERIAL OMITTED AND
         FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
         TO A REQUEST FOR CONFIDENTIAL TREATMENT) on the amount of such overdue
         payment, to be calculated from and including the due date of such
         payment to (but excluding) the date such payment is received by AVSA.
         AVSA's right to receive such interest shall be in addition to any other
         rights of AVSA hereunder or at law.

6.6      REFUND OF PREDELIVERY PAYMENTS

         Northwest shall have no right to any refund of any deposit or
         Predelivery Payment received by AVSA, except as provided under this
         Agreement.

6.7      PROPRIETARY INTEREST

         Northwest shall not, by virtue of anything contained in this Agreement
         (including, without limitation, any Predelivery Payments hereunder, or
         any designation or identification by AVSA of a particular Aircraft as
         an Aircraft to which any of the provisions of this Agreement refer),
         and notwithstanding any provision of law to the contrary, acquire any
         proprietary, insurable or other interest whatsoever in any Aircraft
         prior to delivery of and payment in full for such Aircraft as provided
         in this Agreement.

6.8      TENDER OF DELIVERY

         In addition to any other rights and remedies available to AVSA, AVSA
         shall not be obligated to tender delivery of any Aircraft to Northwest
         and shall have no further liability to Northwest with respect thereto,
         if Northwest fails to make any Predelivery Payment (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)or if AVSA
         has terminated this Agreement pursuant to Clause 21.

6.9      PAYMENT IN FULL

         Except as provided for herein (including, but not limited to, Subclause
         4.3), Northwest's obligation to make payments to AVSA hereunder shall
         not be affected by and shall be determined without regard to any set
         off, counterclaim, recoupment, defense or other right that Northwest
         may have against AVSA and all such payments shall be made without
         deduction or withholding of any kind.

                                                                    22

<PAGE>

7 -      PLANT REPRESENTATIVES - INSPECTION

7.1      INSPECTION PROCEDURES

7.1.1    All work to be carried out on the Aircraft and all materials and parts
         thereof shall at all reasonable times during business hours be open to
         inspection by duly authorized representatives of Northwest or its
         designee at the respective works of the Associated Contractors and, if
         possible, at the works of their respective subcontractors, and such
         representatives shall, to carry out the aforesaid inspection, have
         access to such relevant technical data as is reasonably necessary for
         this purpose (except that, if access to any part of the respective
         works where construction is in progress or materials or parts are
         stored is restricted for security reasons, the Associated Contractors
         shall be allowed a reasonable time to make the items available for
         inspection elsewhere). The procedures for such inspections shall be
         agreed upon between AVSA's and Northwest's representatives prior to any
         inspection.

7.1.2    For the purposes of Subclause 7.1.1 above and commencing with the date
         of this Agreement until the delivery of the last Aircraft, AVSA shall
         furnish free-of-charge adequate secretarial assistance and suitable
         space, office equipment and facilities in or conveniently located with
         respect to Aerospatiale's works in Toulouse, France, for the use of not
         more than four (4) representatives of Northwest during the
         aforementioned period(CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT).

7.1.3    All inspections, examinations and discussions with AVSA's, the
         Associated Contractors' or their respective subcontractors' engineering
         or other personnel by Northwest and its said representatives shall be
         performed in such manner as not to delay or hinder the work to be
         carried out on the Aircraft or the proper performance of this
         Agreement. In no event shall Northwest or its representatives be
         permitted to inspect any aircraft other than the Aircraft.

7.2      INDEMNITY

         SELLER'S INDEMNITY

         AVSA SHALL INDEMNIFY AND HOLD HARMLESS NORTHWEST, ITS DIRECTORS,
         OFFICERS, AGENTS AND EMPLOYEES FROM AND AGAINST ALL LIABILITIES,
         DAMAGES, LOSSES, COSTS AND EXPENSES (I) FOR ALL INJURIES TO AND DEATHS
         OF PERSONS (EXCEPTING INJURIES TO OR DEATH OF NORTHWEST'S
         REPRESENTATIVES PARTICIPATING IN ANY TESTS, CHECKOUTS OR INSPECTIONS
         UNDER THIS CLAUSE 7) CAUSED BY NORTHWEST OR ITS REPRESENTATIVES, AND
         (II) FOR ANY LOSS OF OR DAMAGE TO PROPERTY (EXCEPTING LOSS OF OR DAMAGE
         TO PROPERTY OF NORTHWEST'S SAID REPRESENTATIVES) CAUSED BY NORTHWEST OR
         ITS REPRESENTATIVES, IN EITHER CASE WHEN ARISING OUT OF OR IN

                                                                    23

<PAGE>

         CONNECTION WITH ANY SUCH TESTS, CHECKOUTS, OR INSPECTIONS UNDER THIS
         CLAUSE 7. THIS INDEMNITY OF AVSA SHALL NOT APPLY FOR ANY SUCH
         LIABILITIES, DAMAGES, LOSSES, COSTS OR EXPENSES ARISING OUT OF OR
         CAUSED BY THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF NORTHWEST'S
         SAID REPRESENTATIVES.

         NORTHWEST SHALL INDEMNIFY AND HOLD HARMLESS AVSA, THE MANUFACTURER,
         EACH OF THE ASSOCIATED CONTRACTORS AND THEIR RESPECTIVE SUBCONTRACTORS
         AND THEIR RESPECTIVE OFFICERS, AGENTS AND EMPLOYEES FROM AND AGAINST
         ALL LIABILITIES, DAMAGES, LOSSES, COSTS AND EXPENSES (I) FOR INJURIES
         TO OR DEATHS OF NORTHWEST'S REPRESENTATIVES PARTICIPATING IN ANY TESTS,
         CHECKOUTS, OR INSPECTIONS UNDER THIS CLAUSE 7, (II) FOR LOSS OF OR
         DAMAGE TO PROPERTY OF NORTHWEST'S SAID REPRESENTATIVES, AND (III)
         ARISING OUT OF OR CAUSED BY THE WILLFUL MISCONDUCT OR GROSS NEGLIGENCE
         OF NORTHWEST'S SAID REPRESENTATIVES. WITH RESPECT TO SUBCLAUSES (I) AND
         (II) OF THE PRECEDING SENTENCE, NORTHWEST SHALL NOT BE OBLIGATED TO
         INDEMNIFY OR HOLD HARMLESS AVSA WHERE THE LIABILITIES, DAMAGES, LOSSES,
         COSTS OR EXPENSES ARISE FROM AVSA'S NEGLIGENCE OR WILLFUL MISCONDUCT.

         IN THE EVENT ANY CLAIM IS MADE OR LAWSUIT IS BROUGHT AGAINST EITHER
         PARTY (OR ITS RESPECTIVE DIRECTORS, OFFICERS, AGENTS OR EMPLOYEES) FOR
         DAMAGES FOR DEATH OR INJURY, OR FOR PROPERTY DAMAGE, THE LIABILITY FOR
         WHICH HAS BEEN ASSUMED BY THE OTHER PARTY PURSUANT TO THIS SUBCLAUSE
         7.2, THE FORMER (INDEMNITEE) SHALL PROMPTLY GIVE NOTICE TO THE OTHER
         PARTY (INDEMNITOR), AND THE INDEMNITOR SHALL ASSUME AND CONDUCT THE
         DEFENSE THEREOF, AND SHALL HAVE THE RIGHT TO EFFECT ANY SETTLEMENT
         WHICH IT, IN ITS OPINION, DEEMS PROPER AND WHICH IMPOSES NO LIABILITY
         OR OTHER OBLIGATION ON THE INDEMNITEE.

         IN THE EVENT THAT THE INDEMNITOR DOES NOT ASSUME AND CONDUCT THE
         DEFENSE OF THE CLAIM OR LAWSUIT, THEN THE INDEMNITEE SHALL HAVE THE
         RIGHT TO PROCEED WITH DEFENSE OF THE CLAIM OR LAWSUIT AS IT DEEMS
         APPROPRIATE AND SHALL HAVE AN ACTION AGAINST THE INDEMNITOR FOR ANY
         JUDGMENTS, SETTLEMENTS, COSTS OR EXPENSES INCURRED IN CONDUCTING SAID
         DEFENSE. FOR THE PURPOSE OF THIS SUBCLAUSE 7.2, A CLAIM OR LAWSUIT
         AGAINST THE MANUFACTURER OR ANY OF THE ASSOCIATED CONTRACTORS OR ANY OF
         THEIR RESPECTIVE SUBCONTRACTORS OR ANY OF THEIR RESPECTIVE DIRECTORS,
         OFFICERS, AGENTS OR EMPLOYEES SHALL BE DEEMED TO BE A LAWSUIT AGAINST
         AVSA.
                                                                    24

<PAGE>

8 -      NORTHWEST'S ACCEPTANCE

8.1      ACCEPTANCE PROCEDURES

8.1.1    AVSA or any Affiliate thereof acting as AVSA's designee shall give to
         Northwest not less than (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT) days prior written notice of the
         proposed time when acceptance tests of an Aircraft shall be conducted,
         and, in the event that Northwest elects to attend such tests, Northwest
         shall comply with the reasonable requirements of AVSA with the
         intention of completing all tests within(CONFIDENTIAL MATERIAL OMITTED
         AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
         PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) Working Days after
         commencement. The tests shall take place at Aerospatiale's works in
         Toulouse, France, and shall be carried out by the personnel of the
         Manufacturer (accompanied, if Northwest so wishes, by representatives
         of Northwest up to a total of (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)acting as observers, of whom not
         more than (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)shall have access to the cockpit at any one
         time). During flight tests, these representatives shall comply with the
         instructions of the Manufacturer's representatives. The Manufacturer
         shall not normally be required in the course of such acceptance tests
         to fly any of the Aircraft for more than an aggregate of(CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) hours.

8.1.2    AVSA shall offer to Northwest a briefing prior to acceptance of each
         Aircraft and (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH
         THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)hour simulator session for(CONFIDENTIAL MATERIAL
         OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) pilots,
         prior to acceptance of the first Aircraft. This briefing shall provide
         specific information related to acceptance flights.

8.1.3    The acceptance tests must demonstrate the satisfactory functioning of
         the Aircraft at the time of delivery in accordance with the
         Specification (except for immaterial variances from the Specification).
         In the event that Northwest, after having received proper notice in
         accordance with Subclause 8.1.1, does not attend the tests scheduled
         for an Aircraft or fails to so cooperate, AVSA may complete them in the
         absence of Northwest, whereupon Northwest shall be deemed to have
         accepted the tests, if such tests demonstrate the

                                                                    25

<PAGE>

         satisfactory functioning of the Aircraft as aforesaid, and AVSA shall
         furnish such data with respect to such tests as Northwest may
         reasonably request.

8.1.4    If the acceptance tests for an Aircraft are not successfully completed
         or there is a defect, Northwest, within(CONFIDENTIAL MATERIAL OMITTED
         AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
         PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) Working Days after
         such tests, shall give notice to AVSA specifying such unsuccessful
         completion or defect. Thereafter AVSA shall, without hindrance from
         Northwest, carry out any necessary changes and, as soon as practicable
         thereafter, resubmit the Aircraft for new acceptance tests to
         demonstrate the elimination of the defect, such tests to be held and
         carried out in accordance with Subclause 8.1, provided, however, that
         rather than accept a delay in delivery of any such Aircraft, Northwest
         and AVSA may agree to deliver such Aircraft with subsequent correction
         of the defect by Northwest(CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT).

                                                                    26

<PAGE>

8.2      USE OF AIRCRAFT

         AVSA shall be entitled to use any Aircraft prior to its delivery to
Northwest:

         (i)      without Northwest's prior consent, to the extent necessary to
                  carry out the normal manufacturing process of the Aircraft
                  (but in no event for more than (CONFIDENTIAL MATERIAL OMITTED
                  AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
                  COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                  TREATMENT)flight hours in the case of each Aircraft),

         (ii)     without Northwest's prior consent, to obtain the certificates
                  required under Clause 2 hereof (CONFIDENTIAL MATERIAL OMITTED
                  AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
                  COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) ,
                  or

         (iii)    with Northwest's prior consent (such consent not to be
                  unreasonably withheld), for the purposes of demonstration
                  flights to third parties (the "Demonstration Flights").

         Such use shall not affect either AVSA's obligation to deliver any
         Aircraft hereunder or Northwest's obligation to accept delivery of any
         Aircraft hereunder. (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
         WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)Northwest shall accept delivery of any Aircraft
         used in accordance with this Subclause 8.2 without any reduction in
         price for depreciation, or wear and tear resulting from such use.

8.3      CERTIFICATE OF ACCEPTANCE

         When the Aircraft is "ready for delivery" as defined below in Subclause
         9.2, Northwest shall forthwith give to AVSA a signed Certificate of
         Acceptance in the form attached as Exhibit F in respect of the relevant
         Aircraft. Should Northwest fail to so deliver the said Certificate,
         then Northwest shall be deemed to be in default as though it had
         without cause rejected delivery of such Aircraft when duly tendered to
         it hereunder and shall thereafter bear all costs and expenses resulting
         from such delay in delivery.

8.4      FINALITY OF ACCEPTANCE

         Northwest's acceptance of delivery of each Aircraft shall constitute
         waiver by Northwest of any right it may have under the Uniform
         Commercial Code as adopted by the State of New York or otherwise to
         revoke such acceptance for any reason, whether known or unknown to
         Northwest at the time of acceptance.

8.5      INDEMNITY

                                                                    27

<PAGE>

8.5.1    SCOPE

         IN CONNECTION WITH THE PROVISION OF SERVICES UNDER THIS CLAUSE 8, AVSA
         AND NORTHWEST PROVIDE THE INDEMNITIES SET FORTH IN SUBCLAUSES 8.5.2 AND
         8.5.3.

8.5.2    AVSA'S INDEMNITY

         AVSA SHALL INDEMNIFY AND HOLD HARMLESS NORTHWEST, ITS DIRECTORS,
         OFFICERS, AGENTS AND EMPLOYEES FROM AND AGAINST ALL LIABILITIES,
         DAMAGES, LOSSES, COSTS AND EXPENSES

         (I)      FOR ALL INJURIES TO AND DEATHS OF PERSONS (EXCEPTING INJURIES
                  TO AND DEATHS OF NORTHWEST'S REPRESENTATIVES PARTICIPATING IN
                  ANY GROUND OR FLIGHT TESTS UNDER THIS CLAUSE 8) CAUSED BY
                  NORTHWEST OR ITS REPRESENTATIVES, AND

         (II)     FOR ANY LOSS OF OR DAMAGE TO PROPERTY (EXCEPTING LOSS OF OR
                  DAMAGE TO PROPERTY OF NORTHWEST'S SAID REPRESENTATIVES) CAUSED
                  BY NORTHWEST OR ITS REPRESENTATIVES,

         IN EITHER CASE WHEN ARISING OUT OF OR IN CONNECTION WITH THE OPERATION
         OF THE AIRCRAFT DURING ANY GROUND OR FLIGHT TESTS UNDER THIS CLAUSE 8.

         THIS INDEMNITY OF AVSA SHALL NOT APPLY FOR ANY SUCH LIABILITIES,
         DAMAGES, LOSSES, COSTS OR EXPENSES ARISING OUT OF OR CAUSED BY THE
         GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF NORTHWEST'S SAID
         REPRESENTATIVES.

8.5.3    NORTHWEST'S INDEMNITY

         NORTHWEST SHALL INDEMNIFY AND HOLD HARMLESS AVSA, THE MANUFACTURER,
         EACH OF THE ASSOCIATED CONTRACTORS AND THEIR RESPECTIVE SUBCONTRACTORS
         AND EACH OF THEIR RESPECTIVE DIRECTORS, OFFICERS, AGENTS AND EMPLOYEES
         FROM AND AGAINST ALL LIABILITIES, DAMAGES, LOSSES, COSTS AND EXPENSES

         (I)      FOR INJURIES TO OR DEATHS OF NORTHWEST'S SAID REPRESENTATIVES
                  PARTICIPATING IN ANY GROUND OR FLIGHT TESTS UNDER THIS CLAUSE
                  8,

         (II)     FOR LOSS OF OR DAMAGE TO PROPERTY OF NORTHWEST'S SAID
                  REPRESENTATIVES, AND

                                                                    28

<PAGE>

         (III)    ARISING OUT OF OR CAUSED BY THE WILLFUL MISCONDUCT OR GROSS
                  NEGLIGENCE OF NORTHWEST'S SAID REPRESENTATIVES.

         WITH RESPECT TO SUBCLAUSES (I) AND (II) OF THE PRECEDING SENTENCE,
         NORTHWEST SHALL NOT BE OBLIGATED TO INDEMNIFY OR HOLD HARMLESS AVSA
         WHERE THE LIABILITIES, DAMAGES, LOSSES, COSTS OR EXPENSES ARISE FROM
         AVSA'S NEGLIGENCE OR WILLFUL MISCONDUCT.

8.5.4    CLAIMS

         IN THE EVENT ANY CLAIM IS MADE OR LAWSUIT IS BROUGHT AGAINST EITHER
         PARTY (OR ITS RESPECTIVE DIRECTORS, OFFICERS, AGENTS OR EMPLOYEES) FOR
         DAMAGES FOR DEATH OR INJURY OR FOR PROPERTY DAMAGE, THE LIABILITY FOR
         WHICH HAS BEEN ASSUMED BY THE OTHER PARTY PURSUANT TO THIS SUBCLAUSE
         8.5, THE FORMER (INDEMNITEE) SHALL PROMPTLY GIVE NOTICE TO THE OTHER
         PARTY (INDEMNITOR), AND THE INDEMNITOR SHALL ASSUME AND CONDUCT THE
         DEFENSE THEREOF, AND SHALL EFFECT ANY SETTLEMENT WHICH IT, IN ITS
         OPINION, DEEMS PROPER AND WHICH DOES NOT IMPOSE ANY LIABILITY OR OTHER
         OBLIGATION ON THE INDEMNITEE.

         IN THE EVENT THAT THE INDEMNITOR DOES NOT ASSUME AND CONDUCT THE
         DEFENSE OF THE CLAIM OR SUIT, THEN THE INDEMNITEE SHALL HAVE THE RIGHT
         TO PROCEED WITH DEFENSE OF THE CLAIM OR LAWSUIT AS IT DEEMS APPROPRIATE
         AND SHALL HAVE AN ACTION AGAINST THE INDEMNITOR FOR ANY JUDGMENTS,
         SETTLEMENTS, COSTS OR EXPENSES INCURRED IN CONDUCTING SAID DEFENSE
         (INCLUDING LEGAL FEES AND RELATED EXPENSES AS WELL AS THOSE COSTS
         INCURRED BY IT ESTABLISHING ITS RIGHT TO INDEMNIFICATION HEREUNDER).
         FOR THE PURPOSE OF THIS SUBCLAUSE 8.5, A CLAIM OR LAWSUIT AGAINST THE
         MANUFACTURER OR ANY OF THE ASSOCIATED CONTRACTORS OR ANY OF THEIR
         RESPECTIVE SUBCONTRACTORS OR ANY OF THEIR RESPECTIVE DIRECTORS,
         OFFICERS, AGENTS OR EMPLOYEES SHALL BE DEEMED TO BE A LAWSUIT AGAINST
         AVSA.

                                                                    29

<PAGE>

9 -      DELIVERY

9.1      DELIVERY SCHEDULE

         Subject to the provisions of this Agreement, AVSA shall have the Firm
         Aircraft ready for delivery at Aerospatiale's works in Toulouse,
         France, and Northwest shall accept the same, during the months set
         forth below. (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH
         THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT).

<TABLE>
<CAPTION>
      ................ .......................... .............. .............. ..........................

       AIRCRAFT NO.     MONTH/YEAR OF DELIVERY                   AIRCRAFT NO.    MONTH/YEAR OF DELIVERY
      ................ .......................... .............. .............. ..........................
      <S>              <C>                        <C>            <C>            <C>
                       (CONFIDENTIAL MATERIAL                                   (CONFIDENTIAL MATERIAL
             1         OMITTED AND FILED                              13        OMITTED AND FILED
                       SEPARATELY WITH THE                                      SEPARATELY WITH THE
                       SECURITIES AND EXCHANGE                                  SECURITIES AND EXCHANGE
                       COMMISSION PURSUANT TO A                                 COMMISSION PURSUANT TO A
                       REQUEST FOR CONFIDENTIAL                                 REQUEST FOR CONFIDENTIAL
                       TREATMENT)2003                                           TREATMENT)  2004
      ................ .......................... .............. .............. ..........................
                       (CONFIDENTIAL MATERIAL                                   (CONFIDENTIAL MATERIAL
             2         OMITTED AND FILED                              14        OMITTED AND FILED
                       SEPARATELY WITH THE                                      SEPARATELY WITH THE
                       SECURITIES AND EXCHANGE                                  SECURITIES AND EXCHANGE
                       COMMISSION PURSUANT TO A                                 COMMISSION PURSUANT TO A
                       REQUEST FOR CONFIDENTIAL                                 REQUEST FOR CONFIDENTIAL
                       TREATMENT)2003                                           TREATMENT)2004
      ................ .......................... .............. .............. ..........................

                                                                    30

<PAGE>

      ................ .......................... .............. .............. ..........................
                       (CONFIDENTIAL MATERIAL                                   (CONFIDENTIAL MATERIAL
             3         OMITTED AND FILED                              15        OMITTED AND FILED
                       SEPARATELY WITH THE                                      SEPARATELY WITH THE
                       SECURITIES AND EXCHANGE                                  SECURITIES AND EXCHANGE
                       COMMISSION PURSUANT TO A                                 COMMISSION PURSUANT TO A
                       REQUEST FOR CONFIDENTIAL                                 REQUEST FOR CONFIDENTIAL
                       TREATMENT)2003                                           TREATMENT)2005
      ................ .......................... .............. .............. ..........................
                       (CONFIDENTIAL MATERIAL                                   (CONFIDENTIAL MATERIAL
             4         OMITTED AND FILED                              16        OMITTED AND FILED
                       SEPARATELY WITH THE                                      SEPARATELY WITH THE
                       SECURITIES AND EXCHANGE                                  SECURITIES AND EXCHANGE
                       COMMISSION PURSUANT TO A                                 COMMISSION PURSUANT TO A
                       REQUEST FOR CONFIDENTIAL                                 REQUEST FOR CONFIDENTIAL
                       TREATMENT)2003                                           TREATMENT)2005
      ................ .......................... .............. .............. ..........................

                                                                    31

<PAGE>

      ................ .......................... .............. .............. ..........................
                       (CONFIDENTIAL MATERIAL                                   (CONFIDENTIAL MATERIAL
             5         OMITTED AND FILED                              17        OMITTED AND FILED
                       SEPARATELY WITH THE                                      SEPARATELY WITH THE
                       SECURITIES AND EXCHANGE                                  SECURITIES AND EXCHANGE
                       COMMISSION PURSUANT TO A                                 COMMISSION PURSUANT TO A
                       REQUEST FOR CONFIDENTIAL                                 REQUEST FOR CONFIDENTIAL
                       TREATMENT)2003                                           TREATMENT)2005
      ................ .......................... .............. .............. ..........................
                       (CONFIDENTIAL MATERIAL                                   (CONFIDENTIAL MATERIAL
             6         OMITTED AND FILED                              18        OMITTED AND FILED
                       SEPARATELY WITH THE                                      SEPARATELY WITH THE
                       SECURITIES AND EXCHANGE                                  SECURITIES AND EXCHANGE
                       COMMISSION PURSUANT TO A                                 COMMISSION PURSUANT TO A
                       REQUEST FOR CONFIDENTIAL                                 REQUEST FOR CONFIDENTIAL
                       TREATMENT)2003                                           TREATMENT)2005
      ................ .......................... .............. .............. ..........................

                                                                    32

<PAGE>

      ................ .......................... .............. .............. ..........................
                       (CONFIDENTIAL MATERIAL                                   (CONFIDENTIAL MATERIAL
             7         OMITTED AND FILED                              19        OMITTED AND FILED
                       SEPARATELY WITH THE                                      SEPARATELY WITH THE
                       SECURITIES AND EXCHANGE                                  SECURITIES AND EXCHANGE
                       COMMISSION PURSUANT TO A                                 COMMISSION PURSUANT TO A
                       REQUEST FOR CONFIDENTIAL                                 REQUEST FOR CONFIDENTIAL
                       TREATMENT)2004                                           TREATMENT)2005
      ................ .......................... .............. .............. ..........................
                       (CONFIDENTIAL MATERIAL                                   (CONFIDENTIAL MATERIAL
             8         OMITTED AND FILED                              20        OMITTED AND FILED
                       SEPARATELY WITH THE                                      SEPARATELY WITH THE
                       SECURITIES AND EXCHANGE                                  SECURITIES AND EXCHANGE
                       COMMISSION PURSUANT TO A                                 COMMISSION PURSUANT TO A
                       REQUEST FOR CONFIDENTIAL                                 REQUEST FOR CONFIDENTIAL
                       TREATMENT)2004                                           TREATMENT)2005
      ................ .......................... .............. .............. ..........................

                                                                    33

<PAGE>

      ................ .......................... .............. .............. ..........................
                       (CONFIDENTIAL MATERIAL                                   (CONFIDENTIAL MATERIAL
             9         OMITTED AND FILED                              21        OMITTED AND FILED
                       SEPARATELY WITH THE                                      SEPARATELY WITH THE
                       SECURITIES AND EXCHANGE                                  SECURITIES AND EXCHANGE
                       COMMISSION PURSUANT TO A                                 COMMISSION PURSUANT TO A
                       REQUEST FOR CONFIDENTIAL                                 REQUEST FOR CONFIDENTIAL
                       TREATMENT)2004                                           TREATMENT)2005
      ................ .......................... .............. .............. ..........................
                       (CONFIDENTIAL MATERIAL                                   (CONFIDENTIAL MATERIAL
            10         OMITTED AND FILED                              22        OMITTED AND FILED
                       SEPARATELY WITH THE                                      SEPARATELY WITH THE
                       SECURITIES AND EXCHANGE                                  SECURITIES AND EXCHANGE
                       COMMISSION PURSUANT TO A                                 COMMISSION PURSUANT TO A
                       REQUEST FOR CONFIDENTIAL                                 REQUEST FOR CONFIDENTIAL
                       TREATMENT)2004                                           TREATMENT) 2005
      ................ .......................... .............. .............. ..........................

                                                                    34

<PAGE>

      ................ .......................... .............. .............. ..........................
                       (CONFIDENTIAL MATERIAL                                   (CONFIDENTIAL MATERIAL
            11         OMITTED AND FILED                              23        OMITTED AND FILED
                       SEPARATELY WITH THE                                      SEPARATELY WITH THE
                       SECURITIES AND EXCHANGE                                  SECURITIES AND EXCHANGE
                       COMMISSION PURSUANT TO A                                 COMMISSION PURSUANT TO A
                       REQUEST FOR CONFIDENTIAL                                 REQUEST FOR CONFIDENTIAL
                       TREATMENT)2004                                           TREATMENT)2006
      ................ .......................... .............. .............. ..........................
                       (CONFIDENTIAL MATERIAL                                   (CONFIDENTIAL MATERIAL
            12         OMITTED AND FILED                              24        OMITTED AND FILED
                       SEPARATELY WITH THE                                      SEPARATELY WITH THE
                       SECURITIES AND EXCHANGE                                  SECURITIES AND EXCHANGE
                       COMMISSION PURSUANT TO A                                 COMMISSION PURSUANT TO A
                       REQUEST FOR CONFIDENTIAL                                 REQUEST FOR CONFIDENTIAL
                       TREATMENT)t 2004                                         TREATMENT)2006
      ................ .......................... .............. .............. ..........................
</TABLE>

         Not later than(CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH
         THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT) days prior to the date scheduled for acceptance
         tests for a particular Aircraft, AVSA shall give Northwest notice of
         the anticipated date within the relevant month set forth above on which
         such Aircraft shall be ready for delivery. Not later than (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)days prior
         to such date notified to Northwest, AVSA shall (i) confirm to Northwest
         that such anticipated delivery date is firm or (ii) in the event AVSA
         cannot confirm such date as being firm, confirm a new date, which shall
         be no more than (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
         WITH THE SECURITIES AND EXCHANGE COMMISSION

                                                                    35

<PAGE>

         PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)Working Days in
         France before or after the originally scheduled date.

9.2      CERTIFICATE OF AIRWORTHINESS

         Each Aircraft shall for the purpose of this Agreement be deemed to be
         "ready for delivery" upon the satisfactory completion of its acceptance
         tests in accordance with Clause 8 and the issuance of an DGAC
         Certificate of Airworthiness for Export in the "Transport Category"
         with respect thereto and AVSA's compliance with the other obligations
         to be performed by it under Clause 2 hereof.

9.3      TITLE

         Title to and risk of loss of and damage to the Aircraft shall pass to
         Northwest upon delivery following execution of the Certificate of
         Acceptance and upon payment of the Final Contract Price for such
         Aircraft. AVSA shall provide Northwest with such appropriate documents
         of title or other documents as Northwest may reasonably request.

9.4      OVERDUE PAYMENT OR FLYAWAY

         In the event that:

         (i)      the delivery of and payment of the Final Contract Price for
                  the Aircraft is delayed more than (CONFIDENTIAL MATERIAL
                  OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
                  COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                  TREATMENT)Working Days after the firm delivery date
                  established pursuant to Subclause 9.1 due to the fault of
                  Northwest, or

         (ii)     within (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
                  WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
                  REQUEST FOR CONFIDENTIAL TREATMENT)days after delivery of the
                  Aircraft Northwest has failed to remove such Aircraft from the
                  place of delivery for whatever reason (except for reasons
                  attributable to AVSA)

         then Northwest shall on demand reimburse AVSA for all reasonable costs
         and expenses (including, without limitation, costs and expenses
         attributable to storage, preservation and protection, insurance and
         taxes) actually sustained by AVSA and resulting from any such delay or
         failure. Such reimbursement shall be in addition to any other rights
         that AVSA may have as a result of any such delay or failure.

9.5      FLYAWAY EXPENSES

         Except for expenses to be borne by AVSA as provided in Subclause 4.3 of
         this Agreement, all expenses of, and in connection with, fly-away from
         Aerospatiale's works

                                                                          36
<PAGE>

         in Toulouse, France, shall be borne by Northwest (CONFIDENTIAL
         MATERIAL OMMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
         EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)

                                                                          37
<PAGE>

10 -     EXCUSABLE DELAY

10.1     SCOPE

         Neither AVSA nor the Manufacturer shall be responsible for or be deemed
         to be in default on account of delays in delivery or failure to deliver
         or otherwise in the performance of this Agreement or any part hereof
         (i) due to causes reasonably beyond AVSA's, the Manufacturer's or any
         Associated Contractor's control (unless such cause is beyond such
         control due to AVSA's, the Manufacturer's or the Associated
         Contractor's fault or negligence) or (ii) not occasioned by AVSA's, the
         Manufacturer's or any Associated Contractor's fault or negligence
         ("Excusable Delay"), including, but not limited to: acts of God or the
         public enemy, natural disasters, fires, floods, hail storms, explosions
         or earthquakes; epidemics or quarantine restrictions; serious
         accidents; actual total or constructive total loss; any law, decision,
         regulation, directive or other act (whether or not having the force of
         law) of any government or of the Council of the European Community or
         the Commission of the European Community or of any national, Federal,
         State, municipal or other governmental department, commission, board,
         bureau, agency, court or instrumentality, domestic or foreign;
         governmental priorities, regulations or orders affecting allocation of
         materials, facilities or a completed Aircraft; war, civil war or
         warlike operations, terrorism, insurrection or riots; failure of
         transportation; strikes or labor troubles causing cessation, slow down
         or interruption of work; delay in obtaining any airworthiness
         certification for a previously uncertificated Aircraft part, component
         or computer software after due and timely diligence to procure such
         certification; inability after due and timely diligence to procure
         materials, accessories, equipment or parts.

         It is expressly understood and agreed that each of (i) any delay caused
         by Northwest's negligence or fault, and (ii) delay in delivery or
         otherwise in the performance of this Agreement by AVSA due in whole or
         in part to any delay in or failure of the delivery of, or any other
         event or circumstance relating to, the Propulsion Systems or Buyer
         Furnished Equipment, shall constitute Excusable Delay for AVSA. AVSA
         shall as soon as practicable after becoming aware of any delay falling
         within the provisions of this Subclause 10.1 (a) notify Northwest of
         such delay and of the probable extent thereof and (b) subject to the
         following provisions, as soon as practicable after the removal of the
         cause or causes for delay, resume, (CONFIDENTIAL MATERIAL OMITTED AND
         FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
         TO A REQUEST FOR CONFIDENTIAL TREATMENT) , the performance of those
         obligations affected under this Agreement.

         AVSA and Northwest acknowledge that nothing in this Subclause 10.1
         shall be deemed to obligate AVSA to undertake or forgo any action
         with respect to any strike or labor troubles which AVSA would not
         otherwise undertake or forgo in the exercise of sound business
         judgment.

                                                                        38
<PAGE>

10.2     UNANTICIPATED DELAY

         In the event that the delivery of any Aircraft is delayed by reason of
         an Excusable Delay for a period of more than(CONFIDENTIAL MATERIAL
         OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) months
         after the end of the calendar month in which delivery is otherwise
         required hereunder, Northwest shall be entitled to terminate this
         Agreement with respect only to the Aircraft so affected upon written
         notice given to AVSA within(CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT) days after the expiration of
         such(CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT) month period. In the event such delay continues
         for an additional (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
         WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)month period after the expiration of
         such(CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT) month period and Northwest has not theretofore
         terminated this Agreement with respect to such Aircraft, either party
         shall have the option to terminate this Agreement with respect to the
         Aircraft so affected upon written notice given to the other
         within(CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT) days after the end of such
         additional(CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)month period. Such termination, as aforesaid,
         shall discharge all obligations and liabilities of the parties
         hereunder with respect to such affected Aircraft, except that AVSA
         shall repay to Northwest all amounts required under this Agreement with
         respect to such affected Aircraft, (CONFIDENTIAL MATERIAL OMITTED AND
         FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
         TO A REQUEST FOR CONFIDENTIAL TREATMENT) Northwest shall not be
         entitled to receive such repayment nor to terminate this Agreement as
         to any Aircraft under this Clause 10 by reason of an Excusable Delay if
         such delay is caused solely by Northwest's negligence or Northwest's
         fault.

10.3     ANTICIPATED DELAY

         In respect of any Aircraft, AVSA may conclude, based on a reasonable
         and good faith appraisal of the facts, that Excusable Delays shall (i)
         cause delay in delivery of such Aircraft for a period of more
         than (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE

                                                                           39
<PAGE>

         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) months
         after the end of the calendar month in which delivery is otherwise
         required or (ii) prevent delivery of such Aircraft. In such event,
         in good faith and in accordance with its normal scheduling
         procedures, AVSA shall give written notice to Northwest of either
         (i) such delay and its related rescheduling reflecting such delay(s)
         or (ii) such nondelivery. Within (CONFIDENTIAL MATERIAL OMITTED AND
         FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
         PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)days after
         Northwest's receipt of such notice, Northwest (and, (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
         EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)AVSA) may terminate this Agreement as to such rescheduled
         or nondeliverable Aircraft by giving written notice to the other
         party. Such termination shall discharge all obligations and
         liabilities of the parties hereunder with respect to such affected
         Aircraft, except that AVSA shall repay to Northwest all amounts
         required under this Agreement with respect to such affected Aircraft
         (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT). Northwest shall not be entitled to receive
         such repayment nor to terminate this Agreement as to any Aircraft
         under this Clause 10 by reason of an Excusable Delay if such delay
         is caused solely by Northwest's negligence or Northwest's fault.

                                                                       40
<PAGE>

10.4     DELIVERY DATE

         If, following notice of an anticipated delay under Subclause 10.3, this
         Agreement is not terminated in accordance with the provisions of such
         Subclause (with respect to the affected Aircraft), then the date of
         delivery otherwise required hereunder shall be extended by a period
         equal to the delay specified in such notice.

10.5     LOST, DESTROYED OR DAMAGED AIRCRAFT

         In the event that prior to delivery any Aircraft is lost, destroyed or
         damaged beyond economic repair, AVSA shall notify Northwest in writing
         within(CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)) days after such event. Such notice shall
         specify the earliest date, consistent with AVSA's and the
         Manufacturer's other contractual commitments and production
         capabilities, by which AVSA would be able to deliver a replacement for
         such Aircraft. This Agreement shall terminate as to such Aircraft
         unless Northwest gives AVSA written notice, within (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)days after
         receipt by Northwest of the notice from AVSA of such loss, destruction
         or damage, that Northwest desires AVSA to deliver to Northwest a
         replacement for such Aircraft. If Northwest gives such notice to AVSA,
         AVSA shall deliver to Northwest, at the earliest date consistent with
         AVSA's and the Manufacturer's other contractual commitments and
         production capabilities, an aircraft to replace the Aircraft lost,
         destroyed or damaged beyond repair, and the parties shall execute an
         amendment to this Agreement to evidence the delivery date for such
         replacement aircraft; provided, however, that nothing herein shall
         obligate AVSA to deliver such replacement aircraft if its manufacture
         would require the reactivation of the Manufacturer's production line
         for the model of aircraft purchased hereunder. The terms and conditions
         of this Agreement applicable to the Aircraft lost, destroyed or damaged
         beyond economic repair (including without limitation, the price and
         price revision provisions in Clauses 4 and 5 hereof) shall apply to the
         replacement aircraft (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT) In the event of termination of this
         Agreement as to a particular Aircraft as a result of such loss,
         destruction or damage the obligations and liabilities of the parties
         hereunder with respect to such Aircraft shall be discharged. AVSA shall
         repay to Northwest the amount required under this Agreement with
         respect to such lost, destroyed or damaged Aircraft, (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) Northwest
         shall not be entitled to receive repayment nor to terminate this
         Agreement as to any Aircraft under this Subclause 10.5 if such loss,
         destruction or damage is caused by Northwest's or its representatives'
         gross negligence or willful misconduct.

                                                                        41
<PAGE>

                                                                        42
<PAGE>

10.6     In the event this Agreement is terminated with respect to an Aircraft
         pursuant to the provisions of this Clause 10, (CONFIDENTIAL MATERIAL
         OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)

10.7     REMEDIES

         THIS CLAUSE 10 (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH
         THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)SET FORTH THE SOLE AND EXCLUSIVE REMEDY OF
         NORTHWEST FOR EXCUSABLE DELAYS IN DELIVERY OR FAILURE TO DELIVER, AND
         NORTHWEST HEREBY WAIVES ALL RIGHTS, INCLUDING WITHOUT LIMITATION ANY
         RIGHTS TO DAMAGES OR SPECIFIC PERFORMANCE, TO WHICH IT WOULD OTHERWISE
         BE ENTITLED IN RESPECT THEREOF. NORTHWEST SHALL NOT BE ENTITLED TO
         CLAIM THE REMEDIES AND RECEIVE THE BENEFITS PROVIDED IN THIS CLAUSE 10
         TO THE EXTENT THE DELAY REFERRED TO IN THIS CLAUSE 10 IS CAUSED SOLELY
         BY THE NEGLIGENCE OR FAULT OF NORTHWEST OR ITS REPRESENTATIVES.

                                                                         43
<PAGE>

11 -     INEXCUSABLE DELAY

11.1     LIQUIDATED DAMAGES

         Should an Aircraft not be ready for delivery to Northwest within
         (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)days after the month of delivery specified in this Agreement
         (as such month may otherwise be changed pursuant to this Agreement) for
         reasons other than as are covered by Clause 10, Northwest shall, in
         respect of any subsequent delay in delivery of such Aircraft, have the
         right to claim and AVSA shall in respect of any subsequent delay pay to
         Northwest as liquidated damages for the delay in delivery of such
         Aircraft US$(CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH
         THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT).

11.2     TOTAL LIABILITY

         Notwithstanding Subclause 11.1, the total liability of AVSA under this
         Clause 11 with respect to any Aircraft shall in no event exceed the
         total sum of US$ (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
         WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT).

11.3     WRITTEN CLAIM

         Northwest's right to recover such damages in respect of an Aircraft is
         conditional upon a claim therefor being submitted in writing to AVSA by
         Northwest no later than days after the date when such Aircraft was
         scheduled to have been ready for delivery.

11.4     SIX-MONTH DELAY

         In the event that such subsequent delay in delivery exceeds six (6)
         months (a "Six-month Delay"), Northwest shall have the further right,
         exercisable by written notice to AVSA given after such Six-month Delay,
         to terminate this Agreement in respect only of the Aircraft that is the
         subject of such delay, whereupon AVSA shall repay to Northwest
         hereunder all amounts required under this Agreement in relation to such
         Aircraft, (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT).

                                                                       44
<PAGE>

11.5     TWELVE-MONTH DELAY

         In the event that such subsequent delay in delivery exceeds twelve (12)
         months, AVSA shall have the right, exercisable by written notice to
         Northwest given no more than (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)months after such twelve (12) month
         period, to terminate this Agreement in respect only of the Aircraft
         that is subject to such delay, (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT) AVSA shall repay to Northwest all
         amounts required under this Agreement in relation to such
         Aircraft(CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT).

11.6     BUYER FURNISHED EQUIPMENT

         (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)pursuant to the provisions of this Clause 11, at Northwest's
         election prior to exercising its rights under this Subclause 11.6.

11.7     REMEDIES

         THIS CLAUSE 11(CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH
         THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT) SET FORTH THE SOLE REMEDY OF NORTHWEST FOR
         DELAYS IN DELIVERY OR FAILURE TO DELIVER, OTHER THAN SUCH DELAYS AS ARE
         COVERED BY CLAUSE 10, AND NORTHWEST HEREBY WAIVES ALL RIGHTS, INCLUDING
         WITHOUT LIMITATION ANY RIGHTS TO INCIDENTAL AND CONSEQUENTIAL DAMAGES
         OR SPECIFIC PERFORMANCE, TO WHICH IT WOULD OTHERWISE BE ENTITLED IN
         RESPECT THEREOF. NORTHWEST SHALL NOT BE ENTITLED TO CLAIM THE REMEDIES
         AND RECEIVE THE BENEFITS PROVIDED IN THIS CLAUSE 11 WHERE THE DELAY
         REFERRED TO IN THIS CLAUSE 11 IS CAUSED SOLELY BY THE NEGLIGENCE OR
         FAULT OF NORTHWEST OR ITS REPRESENTATIVES.

                                                                       45
<PAGE>

12 -       WARRANTIES AND SERVICE LIFE POLICY

12.1       STANDARD WARRANTY

12.1.1     Nature of Warranty

12.1.2     Exceptions

12.1.3     Warranty Periods

12.1.4     Buyer's Remedy and Seller's Obligation

12.1.5     Warranty Claim Requirements

12.1.6     Warranty Administration

12.1.7     In-house Warranty

12.1.8     Standard Warranty Transferability

12.1.9     Warranty for Corrected, Replacement or Repaired
           Warranted Parts

12.1.10    Good Airline Operation - Normal Wear and Tear

12.2       SELLER SERVICE LIFE POLICY

12.2.1     Definitions

12.2.2     Periods and Seller's Undertakings

12.2.3     Seller's Participation in the Cost

12.2.4     General Conditions and Limitations

12.2.5     Transferability

12.3       VENDOR WARRANTIES

12.3.1     Seller's Support

12.3.2     Vendor's Default

12.4       INTERFACE COMMITMENT

                                                                           46
<PAGE>

12.4.1     Interface Problem

12.4.2     Seller's Responsibility

12.4.3     Vendor's Responsibility

12.4.4     Joint Responsibility

12.4.5     General

12.5       EXCLUSIVITY OF WARRANTIES AND GENERAL LIMITATIONS OF LIABILITY

12.6       DUPLICATE REMEDIES

12.7       NEGOTIATED AGREEMENT

                                                                           47
<PAGE>

12 -              WARRANTIES AND SERVICE LIFE POLICY

                  AVSA represents and warrants that the Manufacturer has
                  provided to AVSA the following Standard Warranty, Service Life
                  Policy, Vendor Warranties and Interface Commitment with
                  respect to the Aircraft, subject to the terms, conditions,
                  limitations and restrictions (including, but not limited to,
                  the Exclusivity of Warranties and Duplicate Remedies
                  provisions) as hereinafter set out, and that the same are in
                  full force and effect and have not been amended. AVSA hereby
                  assign to Northwest, and Northwest hereby accepts, all of
                  AVSA's rights and obligations as the "Buyer" under the said
                  Standard Warranty, Service Life Policy, Vendor Warranties and
                  Interface Commitment, and AVSA subrogates Northwest to all
                  such rights and obligations in respect of the Aircraft. AVSA
                  hereby warrants to Northwest that (i) it has all requisite
                  authority to make the foregoing assignment and to effect the
                  foregoing subrogation in favor of Northwest, (ii) such
                  assignment and subrogation are effective to confer on
                  Northwest all of the foregoing rights and obligations of AVSA,
                  and (iii) AVSA shall not enter into any amendment of the
                  provisions so assigned without the prior written consent of
                  Northwest.

                  It is understood that, in the provisions below between the
                  words QUOTE and UNQUOTE, capitalized terms have the meanings
                  assigned thereto in this Agreement, except that (i) the term
                  "Seller," which means the Manufacturer as between the
                  Manufacturer and AVSA, also means the Manufacturer in this
                  Agreement, and (ii) the term "Buyer" which means AVSA as
                  between the Manufacturer and AVSA, means Northwest in this
                  Agreement.

QUOTE

12.1       STANDARD WARRANTY

12.1.1     NATURE OF WARRANTY

           Subject to the limitations and conditions as hereinafter provided,
           and except as provided in Subclause 12.1.2, the Seller warrants to
           the Buyer that each Aircraft and each Warranted Part shall at the
           time of delivery to the Buyer:

           (i)    be free from defects in material,

           (ii)   be free from defects in workmanship, including, without
                  limitation, processes of manufacture,

           (iii)  be free from defects in design (including, without limitation,
                  selection of materials) having regard to the state of the art
                  at the date of such design, and

           (iv)   be free from defects arising from failure to conform to the
                  Specification, except as

                                                                         48
<PAGE>

                  to those portions of the Specification relating to
                  performance or where it is expressly stated that such
                  portions of the Specification are estimates or approximations
                  or design aims.

           For the purposes of this Agreement, the term "Warranted Part" shall
           mean any Seller proprietary component, equipment, accessory or part
           that is installed on an Aircraft at the time of delivery of such
           Aircraft and that (a) is manufactured to the detail design of the
           Seller or a subcontractor of it and (b) bears a part number of the
           Seller at the time of such delivery.

12.1.2     EXCEPTIONS

           The warranties set forth in Subclause 12.1.1 shall not apply to Buyer
           Furnished Equipment, nor to the engine and its associated parts, nor
           to any component, accessory, equipment or part purchased by the Buyer
           that is not a Warranted Part, provided, however, that:

           (i)    any defect in the Seller's workmanship in respect of the
                  installation of such items in the Aircraft, including any
                  failure by the Seller to conform to the installation
                  instructions of the manufacturers of such items that
                  invalidates any applicable warranty from such manufacturers,
                  shall constitute a defect in workmanship for the purpose of
                  this Subclause 12.1 and be covered by the warranty set forth
                  in Subclause 12.1.1(ii), and

           (ii)   any defect inherent in the Seller's design of the
                  installation, in view of the state of the art at the date of
                  such design, that impairs the use of such items shall
                  constitute a defect in design for the purposes of this
                  Subclause 12.1 and be covered by the warranty set forth in
                  Subclause 12.1.1(iii).

12.1.3     WARRANTY PERIOD

           The warranties described in Subclauses 12.1.1 and 12.1.2 hereinabove
           shall be limited to those defects that become apparent within
           (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
           SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
           CONFIDENTIAL TREATMENT) months after delivery of the affected
           Aircraft.

12.1.4     BUYER'S REMEDY AND SELLER'S OBLIGATION

12.1.4.1   The Buyer's remedy and the Seller's obligation and liability under
           Subclauses 12.1.1 and 12.1.2 hereinabove are limited to, at the
           Seller's expense and option, the repair, replacement or correction
           of, or the supply of modification kits rectifying the defect to, any
           defective Warranted Part. Alternatively, the Seller may at its sole
           option furnish a credit to the Buyer for the future purchase of
           Material equal to the price at which the Buyer is then entitled to
           acquire a replacement for the defective Warranted Part. Nothing
           herein contained shall obligate the Seller to correct any failure to
           conform to

                                                                        49
<PAGE>

           the Specification with respect to components, equipment, accessories
           or parts that the parties agree in writing at the time of delivery of
           the affected Aircraft are acceptable deviations or have no material
           adverse effect on the use, operation or performance of an Aircraft.

12.1.4.2   In the event a defect covered by Subclause 12.1.1(iii) becomes
           apparent within the applicable period set forth in
           Subclause 12.1.3(ii), and the Seller is obligated to correct such
           defect, the Seller shall also, if so requested by the Buyer in
           writing, make such correction in any Aircraft that has not already
           been delivered to the Buyer. However, the Seller shall not be
           responsible nor deemed to be in default on account of any delay in
           delivery of any Aircraft or otherwise, in respect of performance of
           this Agreement, due to the Seller's undertaking to make such
           correction and, rather than accept a delay in delivery of any such
           Aircraft, the Buyer and the Seller may agree to deliver such Aircraft
           with subsequent correction of the defect by the Buyer at the Seller's
           expense, or the Buyer may elect to accept delivery and thereafter
           file a Warranty Claim as though the defect had become apparent
           immediately after delivery of such Aircraft.

12.1.5     WARRANTY CLAIM REQUIREMENTS

           The Buyer's remedy and the Seller's obligation and liability under
           this Subclause 12.1, with respect to each claimed defect, are subject
           to the following conditions precedent:

           (i)    the existence of a defect covered by the provisions of this
                  Subclause 12.1,

           (ii)   the defect's having become apparent within the applicable
                  warranty period, as set forth in Subclause 12.1.3,

           (iii)  the Buyer's having submitted to the Seller proof reasonably
                  satisfactory to the Seller that the claimed defect is due to a
                  matter embraced within this Subclause 12.1, and that such
                  defect did not result from any act or omission of the Buyer,
                  including, but not limited to, any failure to operate and
                  maintain the affected Aircraft or part thereof in accordance
                  with the standards or any matter set forth or covered in
                  Subclause 12.1.10,

            (iv)  the Buyer's having returned as soon as reasonably practicable
                  the Warranted Part claimed to be defective to such repair
                  facilities as may be designated by the Seller, except where
                  the Buyer elects to repair a defective Warranted Part in
                  accordance with the provisions of Subclause 12.1.7, and

            (v)   the Seller's having received a Warranty Claim fulfilling the
                  conditions of and in accordance with the provisions of
                  Subclause 12.1.6 below.

12.1.6     WARRANTY ADMINISTRATION

                                                                        50
<PAGE>

           The warranties set forth in Subclause 12.1 shall be administered as
           hereinafter provided:

           (i)    CLAIM DETERMINATION

                  Warranty Claim determination by the Seller shall be reasonably
                  based upon the claim details, reports from the Seller's
                  regional representative, historical data logs, inspections,
                  tests, findings during repair, defect analysis and other
                  suitable documents and information.

           (ii)   TRANSPORTATION (CONFIDENTIAL MATERIAL OMITTED AND FILED
                  SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
                  PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)

                  Transportation (CONFIDENTIAL MATERIAL OMITTED AND FILED
                  SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
                  PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)for sending a
                  defective Warranted Part to the facilities designated by the
                  Seller shall be borne by the Buyer (CONFIDENTIAL MATERIAL
                  OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
                  COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT).

           (iii)  RETURN OF AN AIRCRAFT

                  In the event that the Buyer desires to return an Aircraft to
                  the Seller for consideration of a Warranty Claim, the Buyer
                  shall notify the Seller of its intention to do so and the
                  Seller shall, prior to such return, have the right to inspect
                  such Aircraft and thereafter, without prejudice to its rights
                  hereunder, to repair such Aircraft, at its sole option, either
                  at the Buyer's facilities or at another place acceptable to
                  the Seller. Return of any Aircraft by the Buyer to the Seller
                  (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT).

           (iv)   ON-AIRCRAFT WORK BY THE SELLER

                  In the event that a defect necessitates the dispatch by the
                  Seller of a working team to repair or correct such defect at
                  the Buyer's facilities, or in the event that the Seller
                  accepts the return of an Aircraft to perform or have performed
                  such repair or correction, then all related expenses incurred
                  in performing such repair or correction shall be borne
                  (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT).

                                                                          51
<PAGE>

                  Any work performed by the Seller to rectify defects, which if
                  performed by the Buyer would not be eligible for a warranty
                  credit under the terms of Subclause 12.1.7 (v), shall be at
                  the Buyer's expense. (CONFIDENTIAL MATERIAL OMITTED AND FILED
                  SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
                  PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT).

                  The Seller shall perform on-Aircraft work, subject to either
                  of the following conditions being met:

                  (a)      in the Seller's opinion, such work must require the
                           technical expertise of the Seller, or

                  (b)      both of

                           (i)      the downtime of each affected Aircraft would
                                    exceed (CONFIDENTIAL MATERIAL OMITTED AND
                                    FILED SEPARATELY WITH THE SECURITIES AND
                                    EXCHANGE COMMISSION PURSUANT TO A REQUEST
                                    FOR CONFIDENTIAL TREATMENT)days, not
                                    including any scheduled maintenance
                                    downtime, and

                           (ii)     the number of man hours quoted in the
                                    Seller's Service Bulletin or batch of
                                    Service Bulletins for their embodiment on
                                    any Aircraft would EXCEED(CONFIDENTIAL
                                    MATERIAL OMITTED AND FILED SEPARATELY WITH
                                    THE SECURITIES AND EXCHANGE COMMISSION
                                    PURSUANT TO A REQUEST FOR CONFIDENTIAL
                                    TREATMENT), it being understood that for
                                    batches of Service Bulletins, the Seller
                                    shall only count individual Service
                                    Bulletins with more than (CONFIDENTIAL
                                    MATERIAL OMITTED AND FILED SEPARATELY WITH
                                    THE SECURITIES AND EXCHANGE COMMISSION
                                    PURSUANT TO A REQUEST FOR CONFIDENTIAL
                                    TREATMENT)hours of elapsed time.

                  If the Seller is requested to perform the work, the Seller and
                  the Buyer shall agree on a schedule and place for the work to
                  be performed.

           (v)    WARRANTY CLAIM SUBSTANTIATION

                  In connection with each claim by the Buyer under this
                  Subclause 12.1, the Buyer shall file a claim on the Buyer's
                  form ("Warranty Claim") within (CONFIDENTIAL MATERIAL OMITTED
                  AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
                  COMMISSION PURSUANT

                                                                    52

<PAGE>

                  TO A REQUEST FOR CONFIDENTIAL TREATMENT)days after such defect
                  becomes apparent. Such form must contain at least the
                  following(CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
                  WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
                  REQUEST FOR CONFIDENTIAL TREATMENT) :

                  (a)      description of defect and action taken, if any,

                  (b)      date of incident and/or of removal,

                  (c)      description of the defective part,

                  (d)      part number,

                  (e)      serial number (if applicable),

                  (f)      position on Aircraft, according to Catalog Sequence
                           Number (CSN) of the Illustrated Parts Catalog,
                           Component Maintenance Manual or Structural Repair
                           Manual (as such documents are defined in the A330
                           Product Support Agreement) as applicable,

                  (g)      total flying hours or calendar times, as applicable,
                           at the date of appearance of a defect,

                  (h)      time since last shop visit at the date of defect
                           appearance,

                  (i)      Manufacturer's serial number of the Aircraft and/or
                           its registration number,

                  (j)      Aircraft total flying hours and/or number of landings
                           at the date of defect appearance,

                  (k)      claim number,

                  (l)      date of claim, and

                  (m)      date of delivery of an Aircraft or part to the Buyer.

                  and in the case of a Warranty Claim under Subclause 12.1.7,
                  the additional data required under Subclause 12.1.7(iv).

                  Claims are to be addressed as follows:

                           Warranty Administration
                           ASCO

                                                                    53

<PAGE>

                           198 Van Buren Street
                           Suite 300
                           Herndon, VA, 20170

                  or any other address of which the Seller provides three (3)
                  Working Days' notice to the Buyer.

                  (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

           (vi)   REPLACEMENTS

                  Replacements made pursuant to this Subclause 12.1 shall be
                  made within the lead time defined in the Seller's Spare Parts
                  Price List. Replaced components, equipment, accessories or
                  parts shall become the Seller's property.

                                                                    54

<PAGE>

                  Title to and risk of loss of any Aircraft, component,
                  accessory, equipment or part returned by the Buyer to the
                  Seller shall at all times remain with the Buyer, except that
                  (i) when the Seller has possession of a returned Aircraft,
                  component, accessory, equipment or part to which the Buyer has
                  title, the Seller shall have such responsibility therefor as
                  is chargeable by law to a bailee for hire, but the Seller
                  shall not be liable for loss of use, and (ii) title to and
                  risk of loss of a returned component, accessory, equipment or
                  part shall pass to the Seller upon shipment by the Seller to
                  the Buyer of any item furnished by the Seller to the Buyer as
                  a replacement therefor. Upon the Seller's shipment to the
                  Buyer of any replacement component, accessory, equipment or
                  part provided by the Seller pursuant to this Subclause 12.1,
                  title to and risk of loss of such component, accessory,
                  equipment or part shall pass to the Buyer.

           (vii)  REJECTION

                  The Seller shall provide reasonable written substantiation in
                  case of rejection of a claim. In such event the Buyer shall
                  pay to the Seller reasonable inspection and test charges
                  incurred by the Seller in connection with the investigation
                  and processing of such claim. Transportation, insurance, and
                  any other costs associated with the return of any Warranted
                  Part or any other item, equipment, component or part for which
                  the Buyer's warranty claim is rejected by the Seller shall be
                  borne by the Buyer.

           (viii) INSPECTION

                  The Seller shall have the right to inspect the affected
                  Aircraft and documents and other records relating thereto in
                  the event of any claim under this Subclause 12.1.

12.1.7     IN-HOUSE WARRANTY

           (i)    AUTHORIZATION

                  The Buyer is hereby authorized to perform the repair of
                  Warranted Parts, subject to the terms of this Subclause 12.1.7
                  ("In-house Warranty"). The Buyer shall notify the Seller's
                  representative of its decision to perform any in-house repairs
                  before such repairs are commenced, unless it is not practical
                  to do so, in which case the Buyer shall notify the Seller of
                  the in-house repair as soon as reasonably practicable.

           (ii)   CONDITIONS OF AUTHORIZATION

                  The Buyer shall be entitled to the benefits under this
                  Subclause 12.1.7 for repair of Warranted Parts:

                  (a)      only if adequate facilities and qualified personnel
                           are available to the Buyer,

                                                                    55

<PAGE>

                  (b)      in accordance with the Seller's written instructions
                           set forth in documents such as the Aircraft
                           Maintenance Manual, Component Maintenance Manual
                           (Manufacturer), Component Maintenance Manual (Vendor)
                           and Structural Repair Manual, and

                  (c)      only to the extent specified by the Seller, or, in
                           the absence of such specification, to the extent
                           reasonably necessary to correct the defect, in
                           accordance with the standards set forth in Subclause
                           12.1.10.

           (iii)  SELLER'S RIGHTS

                  The Seller shall have the right(CONFIDENTIAL MATERIAL OMITTED
                  AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
                  COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)
                  to have any Warranted Part, or any part removed therefrom,
                  which is claimed to be defective, returned to the Seller, as
                  set forth in Subclause 12.1.6(ii), if, in the reasonable
                  judgment of the Seller, the nature of the defect requires
                  technical investigation.

                  The Seller shall further have the right (CONFIDENTIAL MATERIAL
                  OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
                  COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)
                  to have a representative present during the disassembly,
                  inspection and testing of any Warranted Part claimed to be
                  defective.

           (iv)   IN-HOUSE WARRANTY CLAIM SUBSTANTIATION

                  Claims for In-house Warranty credit shall be filed within the
                  time period set forth in and shall contain the same
                  information required in, Warranty Claims under Subclause
                  12.1.6(v) and in addition shall include:

                  (a)      a report of technical findings with respect to the
                           defect,

                  (b)      for parts required to remedy the defect:

                           - part numbers,

                           - serial numbers (if applicable),

                           - description of the parts,

                           - quantity of parts,

                           - unit price of parts,

                           - total price of parts,

                                                                    56

<PAGE>

                           - related Seller's or third party's invoices
                             (if applicable),

                  (c)      detailed number of labor hours,

                  (d)      agreed In-house Warranty Labor Rate (defined below in
                           Subclause 12.1.7 (v) (a)), and

                  (e)      total claim value.

           (v)    CREDIT

                  The Buyer's sole remedy, and the Seller's sole obligation and
                  liability, in respect of In-house Warranty claims, shall be a
                  credit to the Buyer's account in U.S. Dollars. The credit to
                  the Buyer's account shall be equal to the direct labor cost
                  expended in performing a repair and to the direct cost of
                  materials incorporated in the repair. Such costs shall be
                  determined as set forth below.

                  (a)      To determine direct labor costs, only man hours spent
                           on disassembly, inspection, repair, reassembly, and
                           final inspection and test (including flight tests if
                           flight tests prove necessary to complete a repair
                           under the In-house Warranty) of the Warranted Part
                           alone shall be counted. Man hours required for
                           maintenance work concurrently being carried out on
                           the Aircraft or Warranted Part shall not be included.

                           The man hours counted as set forth above shall be
                           multiplied by an agreed labor rate representing
                           (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
                           WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
                           TO A REQUEST FOR CONFIDENTIAL TREATMENT)the Buyer's
                           composite average hourly labor rate (excluding all
                           fringe benefits, premium time allowances, social
                           security charges, business taxes and similar items)
                           paid to the Buyer's employees whose jobs are directly
                           related to the performance of the repair (the
                           "In-house Warranty Labor Rate").

                  (b)      Direct material costs are determined by the prices at
                           which the Buyer acquired such material, excluding any
                           parts and materials used for overhaul and furnished
                           free of charge by the Seller.

           (vi)   LIMITATION ON CREDIT

                  The Buyer shall in no event be credited for repair costs
                  (including labor and material) for any Warranted Part
                  exceeding (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
                  WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
                  REQUEST FOR CONFIDENTIAL TREATMENT) of the Seller's then
                  current catalog price

                                                                    57

<PAGE>

                  (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT) for a replacement of such defective
                  Warranted Part.

                  Such cost shall be substantiated in writing by the Seller upon
                  reasonable request by the Buyer.

           (vii)  SCRAPPED MATERIAL

                  The Buyer shall retain any Warranted Part defective beyond
                  economic repair and any defective part removed from a
                  Warranted Part during repair until the earlier of
                  (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)after submission of a claim for
                  In-house Warranty credit relating thereto or the Seller's
                  written advice to the Buyer that such Warranted Part should be
                  scrapped. Such parts shall be returned to the Seller
                  within(CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH
                  THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST
                  FOR CONFIDENTIAL TREATMENT) of receipt of the Seller's request
                  to that effect.

                  Notwithstanding the foregoing, the Buyer may, with the
                  agreement of the Seller's Field Representative, scrap any such
                  defective parts that are beyond economic repair and not
                  required for technical evaluation.

                  Scrapped Warranted Parts shall be evidenced by a record of
                  scrapped material certified by an authorized representative of
                  the Buyer, which shall be kept in the Buyer's file for at
                  least the duration of the warranty periods set forth in this
                  Subclause 12.1.

           (viii) LIMITATIONS ON LIABILITY OF SELLER

                  THE SELLER SHALL NOT BE LIABLE FOR ANY RIGHT, CLAIM OR REMEDY,
                  AND THE BUYER SHALL INDEMNIFY THE SELLER AGAINST THE CLAIMS OF
                  ANY THIRD PARTIES FOR ANY DEFECT, NONCONFORMANCE OR PROBLEM OF
                  ANY KIND, ARISING OUT OF OR IN CONNECTION WITH ANY REPAIR OF
                  WARRANTED PARTS OR ANY OTHER ACTIONS UNDERTAKEN BY THE BUYER
                  UNDER THIS SUBCLAUSE 12.1.7 WHICH WAS NOT IN COMPLIANCE WITH
                  THE TERMS THEREOF, INCLUDING BUT NOT LIMITED TO: (I) LIABILITY
                  IN CONTRACT OR TORT, (II) LIABILITY ARISING FROM THE BUYER'S
                  ACTUAL OR IMPUTED NEGLIGENCE, INTENTIONAL TORTS AND/OR STRICT
                  LIABILITY, AND/OR (III) LIABILITY TO ANY THIRD PARTIES.

                                                                    58

<PAGE>

12.1.8     STANDARD WARRANTY TRANSFERABILITY

           The warranties provided for in this Subclause 12.1 for any Warranted
           Part shall accrue to the benefit of any airline in revenue service
           other than the Buyer, if the Warranted Part enters into the
           possession of any such airline as a result of a pooling or leasing
           agreement between such airline and the Buyer or upon the Buyer's sale
           of the Aircraft to any such airline in accordance with Subclause
           19.3, in accordance with the terms and subject to the limitations and
           exclusions of the foregoing warranties and to applicable laws or
           regulations.

12.1.9     WARRANTY FOR CORRECTED, REPLACEMENT OR REPAIRED WARRANTED PARTS

           Whenever any Warranted Part that contains a defect for which the
           Seller is liable under Subclause 12.1 has been corrected, repaired or
           replaced pursuant to the terms of this Clause 12, the period of the
           Seller's warranty with respect to such corrected, repaired or
           replacement Warranted Part, whichever may be the case, shall be the
           remaining portion of the original warranty in respect of such
           corrected, repaired or replacement Warranted Part. In the event that
           a defect is attributable to a defective repair or replacement by the
           Buyer, a Warranty Claim with respect to such defect shall not be
           allowable, notwithstanding any subsequent correction or repairs, and
           shall immediately terminate the remaining warranties under this
           Subclause 12.1 in respect of the affected Warranted Part.

12.1.10    GOOD AIRLINE OPERATION - NORMAL WEAR AND TEAR

           The Buyer's rights under this Subclause 12.1 are subject to the
           Aircraft and each component, equipment, accessory and part thereof
           being maintained, overhauled, repaired and operated in accordance
           with good commercial airline practice and in general compliance with
           all technical documentation and maintenance recommendations of the
           Seller (if any), the Manufacturer, the Vendors or the manufacturer of
           the Propulsion Systems and its associated parts and all applicable
           rules, regulations and directives of the FAA.

           The Seller's liability under this Subclause 12.1 shall not extend to
normal wear and tear nor to:

           (i)    any Aircraft or component, equipment, accessory or part
                  thereof that has been repaired, altered or modified after
                  delivery by a party other than the Seller or in a manner other
                  than that set forth in Subclause 12.1.7 or otherwise approved
                  by the Seller;

           (ii)   any Aircraft or component, equipment, accessory or part
                  thereof that has been operated in a damaged state; or

           (iii)  any component, equipment, accessory or part from which the
                  trademark, trade name, part or serial number or other
                  identification marks have been removed.

                                                                    59

<PAGE>

           This waiver of the Seller's liability by the Buyer shall not apply in
           the cases of Subclause 12.1.10 (i) and Subclause 12.1.10 (ii) above
           if the Buyer submits reasonable evidence that the defect did not
           arise from nor was contributed to by either of said cases.

12.2       SELLER SERVICE LIFE POLICY

           In addition to the warranties set forth in Subclause 12.1 above, the
           Seller further agrees that should a Failure (as defined below) occur
           in any Item (as defined below), then, subject to the general
           conditions and limitations set forth in Subclause 12.2.4 below, the
           provisions of this Subclause 12.2 shall apply.

12.2.1     DEFINITIONS

           For the purposes of this Subclause 12.2, the following definitions
           shall apply:

12.2.1.1   "Item" means any of the Seller components, equipment, accessories or
           parts listed in Exhibit G hereto which are installed on an Aircraft
           at any time during the period of effectiveness of the Service Life
           Policy as defined below in Subclause 12.2.2.

12.2.1.2   "Failure" means any breakage of, or defect in, an Item that has
           occurred, that can reasonably be expected to occur on a repetitive or
           fleet wide basis, and that materially impairs the utility or safety
           of the Item, provided that any such breakage of, or defect in, any
           Item did not result from any breakage or defect in any other Aircraft
           part or component or from any other extrinsic force.

12.2.2     PERIODS AND SELLER'S UNDERTAKING

           Subject to the general conditions and limitations set forth in
           Subclause 12.2.4 below, the Seller agrees that if a Failure occurs in
           an Item within (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
           WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
           CONFIDENTIAL TREATMENT)years after the delivery of said Aircraft to
           the Buyer, the Seller shall, at its own discretion, as promptly as
           practicable and for a price that reflects the Seller's financial
           participation in the cost as hereinafter provided, either:

12.2.2.1   design and furnish to the Buyer a correction for such Item subject to
           a Failure and provide any parts required for such correction
           (including Seller designed standard parts but excluding industry
           standard parts unless a part of an Item), or,

12.2.2.2   replace such Item.

12.2.3     SELLER'S PARTICIPATION IN THE COST

           Any part or Item that the Seller is required to furnish to the Buyer
           under this Service

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           Life Policy in connection with the correction or replacement of an
           Item shall be furnished to the Buyer at the Seller's current sales
           price therefor, less the Seller's financial participation, which
           shall be determined in accordance with the following formula:

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                      C  (N  -  T)
                      ------------
           P =             N

           where

           P:     financial participation of the Seller,

           C:     the Seller's then current sales price for the required Item or
                  required Seller designed parts,

           T:     total time in months, at time of Failure, since delivery of
                  the particular Aircraft in which the Item subject to such
                  Failure was originally installed,

           N:     (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)months.

12.2.4     GENERAL CONDITIONS AND LIMITATIONS

12.2.4.1   Notwithstanding Subclause 12.2.3, the undertakings given in this
           Subclause 12.2 shall not be valid during the period applicable to an
           Item under Subclause 12.1.

12.2.4.2   The Buyer's remedy and the Seller's obligation and liability under
           this Service Life Policy are subject to compliance by the Buyer with
           the following conditions precedent:

           (i)    The Buyer shall maintain log books and other historical
                  records with respect to each Item adequate to enable
                  determination as to whether the alleged Failure is covered by
                  this Service Life Policy and, if so, to define the portion of
                  the cost to be borne by the Seller in accordance with
                  Subclause 12.2.3 above.

           (ii)   The Buyer shall keep the Seller informed of any significant
                  incidents relating to an Aircraft, howsoever occurring or
                  recorded (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
                  WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
                  REQUEST FOR CONFIDENTIAL TREATMENT).

           (iii) The conditions of Subclause 12.1.10 shall have been complied
                 with.

           (iv)   The Buyer shall carry out specific structural inspection
                  programs for monitoring purposes as may be established from
                  time to time by the Seller. Such programs shall be, to the
                  extent possible, compatible with the Buyer's operational
                  requirements and shall be carried out at the Buyer's expense.
                  Reports relating thereto shall be regularly furnished to the
                  Seller.

           (v)    In the case of any breakage or defect, the Buyer shall report
                  the same in writing to the Seller within (CONFIDENTIAL
                  MATERIAL OMITTED AND

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<PAGE>

                  FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
                  PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) days after
                  any breakage or defect in an Item becomes apparent, whether or
                  not said breakage or defect can reasonably be expected to
                  occur in any other Aircraft, and the Buyer shall inform the
                  Seller in sufficient detail about the breakage or defect to
                  enable the Seller to determine whether said breakage or defect
                  is subject to this Service Life Policy.

12.2.4.3   Except as otherwise provided in this Subclause 12.2, any claim under
           this Service Life Policy shall be administered as provided in, and
           shall be subject to the terms and conditions of, Subclause 12.1.6.

12.2.4.4   In the event that the Seller shall have issued a modification
           applicable to an Aircraft, the purpose of which is to avoid a
           Failure, the Seller may elect to offer to supply to the Buyer the
           necessary modification kit free of charge (CONFIDENTIAL MATERIAL
           OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
           COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT). If such
           a kit is so offered to the Buyer, then, in respect of such Failure
           and any Failures that could ensue therefrom, the validity of the
           Seller's commitment under this Subclause 12.2 shall be subject to the
           Buyer's incorporating such modification in the relevant Aircraft,
           within a reasonable time, as promulgated by the Seller and in
           accordance with the Seller's instructions.

12.2.4.5   THIS SERVICE LIFE POLICY IS NEITHER A WARRANTY, PERFORMANCE
           GUARANTEE, NOR AN AGREEMENT TO MODIFY ANY AIRCRAFT OR AIRFRAME
           COMPONENTS TO CONFORM TO NEW DEVELOPMENTS OCCURRING IN THE STATE OF
           AIRFRAME DESIGN AND MANUFACTURING ART. THE SELLER'S OBLIGATION UNDER
           THIS SUBCLAUSE 12.2 IS TO MAKE ONLY THOSE CORRECTIONS TO THE ITEMS OR
           FURNISH REPLACEMENTS THEREFOR AS PROVIDED IN THIS SUBCLAUSE 12.2. THE
           BUYER'S SOLE REMEDY AND RELIEF FOR THE NONPERFORMANCE OF ANY
           OBLIGATION OR LIABILITY OF THE SELLER ARISING UNDER OR BY VIRTUE OF
           THIS SERVICE LIFE POLICY SHALL BE IN MONETARY DAMAGES, LIMITED TO THE
           AMOUNT THE BUYER REASONABLY EXPENDS IN PROCURING A CORRECTION OR
           REPLACEMENT FOR ANY ITEM THAT IS THE SUBJECT OF A FAILURE COVERED BY
           THIS SERVICE LIFE POLICY AND TO WHICH SUCH NONPERFORMANCE IS RELATED,
           LESS THE AMOUNT THAT THE BUYER OTHERWISE WOULD HAVE BEEN REQUIRED TO
           PAY UNDER THIS SUBCLAUSE 12.2 IN RESPECT OF SUCH CORRECTED OR
           REPLACEMENT ITEM. WITHOUT LIMITING THE EXCLUSIVITY OF WARRANTIES AND
           GENERAL LIMITATIONS OF LIABILITY PROVISIONS SET FORTH IN SUBCLAUSE
           12.5, THE BUYER HEREBY WAIVES, RELEASES AND RENOUNCES ALL CLAIMS TO
           ANY FURTHER DIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES, INCLUDING
           LOSS OF PROFITS AND ALL OTHER RIGHTS, CLAIMS AND REMEDIES, ARISING
           UNDER OR BY VIRTUE OF THIS SERVICE LIFE POLICY.

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<PAGE>

12.2.5     TRANSFERABILITY

           Except as provided in Subclause 19.3, the Buyer's rights under this
           Subclause 12.2 shall not be assigned, sold, leased, transferred or
           otherwise alienated by operation of law or otherwise, without the
           Seller's prior written consent.

           Any unauthorized assignment, sale, lease, transfer or other
           alienation of the Buyer's rights under this Service Life Policy
           shall, as to the particular Aircraft involved, immediately void this
           Service Life Policy in its entirety.

12.3       VENDOR WARRANTIES

12.3.1     SELLER'S SUPPORT

           Prior to delivery of the first Aircraft under this Agreement, the
           Seller shall obtain from all Vendors listed in the Supplier Product
           Support Agreements manual enforceable and transferable warranties and
           indemnities against patent infringements for all of the components,
           equipment, accessories and parts of the Vendors that are installed in
           an Aircraft at the time of delivery thereof ("Vendor Parts," it being
           understood that such term shall not include the Propulsion Systems,
           Buyer Furnished Equipment or other equipment selected by the Buyer to
           be supplied by Vendors with whom the Seller has no existing
           enforceable warranty agreements). The Seller shall also obtain
           enforceable and transferable Vendor service life policies from
           landing gear Vendors for structural landing gear elements. The Seller
           undertakes to supply to the Buyer such Vendor warranties, Vendor
           service life policies and indemnities against patent infringements
           substantially in the form summarized in the Supplier Product Support
           Agreements manual.

12.3.2     VENDOR'S DEFAULT

12.3.2.1   In the event that any Vendor under any standard warranty or indemnity
           against patent infringements obtained by the Seller pursuant to
           Subclause 12.3.1 or Clause 13 hereof defaults in the performance of
           any material obligation under such warranty or indemnity against
           patent infringements with respect to a Vendor Part, and the Buyer
           submits within a reasonable time to the Seller reasonable proof that
           such default has occurred, then Subclause 12.1 or Clause 13 of this
           Agreement shall apply to the extent the same would have been
           applicable had such Vendor Part been a Warranted Part except that,
           for obligations covered under Subclause 12.1(CONFIDENTIAL MATERIAL
           OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
           COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT).

12.3.2.2   In the event that any Vendor under any Vendor service life policy
           obtained by the Seller pursuant to Subclause 12.3.1 hereof defaults
           in the performance of any material obligation with respect thereto,
           and the Buyer submits within reasonable time to the

                                                                           64

<PAGE>

           Seller reasonable proof that such default has occurred, then
           Subclause 12.2 of this Agreement shall apply to the extent the same
           would have been applicable had such component, equipment, accessory
           or part been listed in Exhibit G hereto.

12.3.2.3   At the Seller's request, the Buyer shall assign to the Seller, and
           the Seller shall be subrogated to, all of the Buyer's rights against
           the relevant Vendor, with respect to and arising by reason of such
           default and the Buyer shall provide reasonable assistance to enable
           the Seller to enforce the rights so assigned.

12.4       INTERFACE COMMITMENT

12.4.1     INTERFACE PROBLEM

           If the Buyer experiences any technical problem in the operation of an
           Aircraft or its systems due to a malfunction (CONFIDENTIAL MATERIAL
           OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
           COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) the
           cause of which, after due and reasonable investigation, is not
           readily identifiable by the Buyer, but which the Buyer reasonably
           believes to be attributable to the design characteristics of one or
           more components of the Aircraft (an "Interface Problem"), the Seller
           shall, if requested by the Buyer, and without additional charge to
           the Buyer, except for transportation of the Seller's personnel to the
           Buyer's facilities, promptly conduct or have conducted an
           investigation and analysis of such problem to determine, if possible,
           the cause or causes of the problem and to recommend such corrective
           action as may be feasible, provided, however, that if the Seller
           determines, after such due and reasonable investigation, that the
           Interface Problem was due to or caused by any default by the Buyer in
           performance of its obligations hereunder, the Buyer shall pay to the
           Seller all reasonable costs and expenses incurred by the Seller
           during such investigation. The Buyer shall furnish to the Seller all
           data and information in the Buyer's possession relevant to the
           Interface Problem and shall cooperate with the Seller in the conduct
           of the Seller's investigations and such tests as may be required.

           At the conclusion of such investigation the Seller shall promptly
           advise the Buyer in writing of the Seller's opinion as to the cause
           or causes of the Interface Problem and the Seller's recommendations
           as to corrective action.

12.4.2     SELLER'S RESPONSIBILITY

           If the Seller determines that the Interface Problem is primarily
           attributable to the design of a Warranted Part, the Seller shall, if
           requested by the Buyer, correct the design of such Warranted Part,
           pursuant to the terms and conditions of Subclause 12.1.

12.4.3     VENDOR'S RESPONSIBILITY

           If the Seller determines that the Interface Problem is primarily
           attributable to the design

                                                                    65

<PAGE>

           of a component, equipment, accessory or part other than a Warranted
           Part ("Vendor Component"), the Seller shall, if requested by the
           Buyer, reasonably assist the Buyer in processing any warranty claim
           the Buyer may have against the manufacturer of such Vendor Component.

12.4.4     JOINT RESPONSIBILITY

           If the Seller determines that the Interface Problem is attributable
           partially to the design of a Warranted Part and partially to the
           design of any Vendor Component, the Seller shall, if requested by the
           Buyer, seek a solution to the Interface Problem through cooperative
           efforts of the Seller and any Vendor involved. The Seller shall
           promptly advise the Buyer of such corrective action as may be
           proposed by the Seller and any such Vendor. Such proposal shall be
           consistent with any then existing obligations of the Seller hereunder
           and of any such Vendor to the Buyer. Such corrective action, when
           reasonably accepted by the Buyer, shall constitute full satisfaction
           of any claim the Buyer may have against either the Seller or any such
           Vendor with respect to such Interface Problem.

12.4.5     GENERAL

12.4.5.1   All requests under this Subclause 12.4 shall be directed both to the
           Seller and the affected Vendors.

12.4.5.2   Except as specifically set forth in this Subclause 12.4, this
           Subclause 12.4 shall not be deemed to impose on the Seller any
           obligations not expressly set forth elsewhere in this Agreement.

12.4.5.3   All reports, recommendations, data and other documents furnished by
           the Seller to the Buyer pursuant to this Subclause 12.4 shall be
           deemed to be delivered under this Agreement and shall be subject to
           the terms, covenants and conditions set forth in this Clause 12 and
           in Subclause 22.4.

12.5       EXCLUSIVITY OF WARRANTIES AND
           GENERAL LIMITATIONS OF LIABILITY

           THIS CLAUSE 12 (INCLUDING ITS SUBPROVISIONS) SETS FORTH THE EXCLUSIVE
           WARRANTIES, EXCLUSIVE LIABILITIES AND EXCLUSIVE OBLIGATIONS OF THE
           SELLER, AND THE EXCLUSIVE REMEDIES AVAILABLE TO THE BUYER, WHETHER
           UNDER THIS AGREEMENT OR OTHERWISE, ARISING FROM ANY DEFECT OR
           NONCONFORMITY OR PROBLEM OF ANY KIND IN ANY AIRCRAFT, COMPONENT,
           EQUIPMENT, ACCESSORY, PART OR SERVICE DELIVERED UNDER THIS AGREEMENT.

           THE BUYER RECOGNIZES THAT THE RIGHTS, WARRANTIES AND REMEDIES IN THIS
           CLAUSE 12 ARE ADEQUATE AND SUFFICIENT TO PROTECT THE BUYER FROM ANY
           DEFECT OR NONCONFORMITY OR

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<PAGE>

           PROBLEM OF ANY KIND IN THE GOODS AND SERVICES SUPPLIED UNDER THIS
           AGREEMENT. THE BUYER HEREBY WAIVES, RELEASES AND RENOUNCES ALL OTHER
           WARRANTIES, OBLIGATIONS, GUARANTEES AND LIABILITIES OF THE SELLER AND
           ALL OTHER RIGHTS, CLAIMS AND REMEDIES OF THE BUYER AGAINST THE
           SELLER, WHETHER EXPRESS OR IMPLIED BY CONTRACT, TORT, OR STATUTORY
           LAW OR OTHERWISE, WITH RESPECT TO ANY NONCONFORMITY OR DEFECT OR
           PROBLEM OF ANY KIND IN ANY AIRCRAFT, COMPONENT, EQUIPMENT, ACCESSORY,
           PART OR SERVICE DELIVERED UNDER THIS AGREEMENT, INCLUDING BUT NOT
           LIMITED TO:

           (1)    ANY IMPLIED WARRANTY OF MERCHANTABILITY AND/OR FITNESS FOR ANY
                  GENERAL OR PARTICULAR PURPOSE;

           (2)    ANY IMPLIED OR EXPRESS WARRANTY ARISING FROM COURSE OF
                  PERFORMANCE, COURSE OF DEALING OR USAGE OF TRADE;

           (3)    ANY RIGHT, CLAIM OR REMEDY FOR BREACH OF CONTRACT;

           (4)    ANY RIGHT, CLAIM OR REMEDY FOR TORT, UNDER ANY THEORY OF
                  LIABILITY, HOWEVER ALLEGED, INCLUDING, BUT NOT LIMITED TO,
                  ACTIONS AND/OR CLAIMS FOR NEGLIGENCE, GROSS NEGLIGENCE,
                  INTENTIONAL ACTS, WILLFUL DISREGARD, IMPLIED WARRANTY, PRODUCT
                  LIABILITY, STRICT LIABILITY OR FAILURE TO WARN;

           (5)    ANY RIGHT, CLAIM OR REMEDY ARISING UNDER THE UNIFORM
                  COMMERCIAL CODE OR ANY OTHER STATE OR FEDERAL STATUTE;

           (6)    ANY RIGHT, CLAIM OR REMEDY ARISING UNDER ANY REGULATIONS OR
                  STANDARDS IMPOSED BY ANY INTERNATIONAL, NATIONAL, STATE OR
                  LOCAL STATUTE OR AGENCY;

           (7)    ANY RIGHT, CLAIM OR REMEDY TO RECOVER OR BE COMPENSATED FOR:

                  (a)      LOSS OF USE OR REPLACEMENT OF ANY AIRCRAFT,
                           COMPONENT, EQUIPMENT, ACCESSORY OR PART PROVIDED
                           UNDER THIS AGREEMENT;

                  (b)      LOSS OF, OR DAMAGE OF ANY KIND TO, ANY AIRCRAFT,
                           COMPONENT, EQUIPMENT, ACCESSORY OR PART PROVIDED
                           UNDER THIS AGREEMENT;

                  (c)      LOSS OF PROFITS AND/OR REVENUES;

                  (d)      ANY OTHER INCIDENTAL OR CONSEQUENTIAL DAMAGE.

                                                                    67

<PAGE>

           THE WARRANTIES AND SERVICE LIFE POLICY PROVIDED BY THIS AGREEMENT
           SHALL NOT BE EXTENDED, ALTERED OR VARIED EXCEPT BY A WRITTEN
           INSTRUMENT SIGNED BY THE SELLER AND THE BUYER. IN THE EVENT THAT ANY
           PROVISION OF THIS CLAUSE 12 SHOULD FOR ANY REASON BE HELD UNLAWFUL,
           OR OTHERWISE UNENFORCEABLE, THE REMAINDER OF THIS CLAUSE 12 SHALL
           REMAIN IN FULL FORCE AND EFFECT.

12.6       DUPLICATE REMEDIES

           The remedies provided to the Buyer under this Clause 12 as to any
           defect in respect of the Aircraft or any part thereof are mutually
           exclusive and not cumulative. The Buyer shall be entitled to the
           remedy that provides the maximum benefit to it, as the Buyer may
           elect, pursuant to the terms and conditions of this Clause 12 for any
           such particular defect for which remedies are provided under this
           Clause 12; provided, however, that the Buyer shall not be entitled to
           elect a remedy under one part of this Clause 12 that constitutes a
           duplication of any remedy elected by it under any other part hereof
           for the same defect. The Buyer's rights and remedies herein for the
           nonperformance of any obligations or liabilities of the Seller
           arising under these warranties shall be in monetary damages limited
           to the amount the Buyer expends in procuring a correction or
           replacement for any covered part subject to a defect or
           nonperformance covered by this Clause 12, and the Buyer shall not
           have any right to require specific performance by the
           Seller(CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
           SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
           CONFIDENTIAL TREATMENT).

UNQUOTE

           In consideration of the assignment and subrogation by AVSA under this
           Clause 12 in favor of Northwest in respect of AVSA's rights against
           and obligations to the Manufacturer under the provisions quoted
           above, Northwest hereby accepts such assignment and subrogation and
           agrees to be bound by all of the terms, conditions and limitations
           therein contained, specifically including, without limitation, the
           following:

           THIS CLAUSE 12 (INCLUDING ITS SUBCLAUSES) SETS FORTH THE EXCLUSIVE
           WARRANTIES, EXCLUSIVE LIABILITIES AND EXCLUSIVE OBLIGATIONS OF AVSA,
           AND THE EXCLUSIVE REMEDIES AVAILABLE TO NORTHWEST, WHETHER UNDER THIS
           AGREEMENT OR OTHERWISE, ARISING FROM ANY DEFECT OR NONCONFORMITY OR
           PROBLEM OF ANY KIND IN ANY AIRCRAFT, COMPONENT, EQUIPMENT, ACCESSORY,
           PART OR SERVICE DELIVERED UNDER THIS AGREEMENT.

           NORTHWEST RECOGNIZES THAT THE RIGHTS, WARRANTIES AND REMEDIES IN THIS
           CLAUSE 12 ARE ADEQUATE AND SUFFICIENT TO PROTECT NORTHWEST FROM ANY
           DEFECT OR NONCONFORMITY OR

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<PAGE>

           PROBLEM OF ANY KIND IN THE GOODS AND SERVICES SUPPLIED UNDER THIS
           AGREEMENT. NORTHWEST HEREBY WAIVES, RELEASES AND RENOUNCES ALL
           OTHER WARRANTIES, OBLIGATIONS, GUARANTEES AND LIABILITIES OF AVSA
           AND ALL OTHER RIGHTS, CLAIMS AND REMEDIES OF NORTHWEST AGAINST AVSA,
           WHETHER EXPRESS OR IMPLIED BY CONTRACT, TORT, OR STATUTORY LAW OR
           OTHERWISE, WITH RESPECT TO ANY NONCONFORMITY OR DEFECT OR PROBLEM OF
           ANY KIND IN ANY AIRCRAFT, COMPONENT, EQUIPMENT, ACCESSORY, PART OR
           SERVICE DELIVERED UNDER THIS AGREEMENT, INCLUDING, BUT NOT LIMITED
           TO:

           (1)    ANY IMPLIED WARRANTY OF MERCHANTABILITY AND/OR FITNESS FOR ANY
                  GENERAL OR PARTICULAR PURPOSE;

           (2)    ANY IMPLIED OR EXPRESS WARRANTY ARISING FROM COURSE OF
                  PERFORMANCE, COURSE OF DEALING OR USAGE OF TRADE;

           (3)    ANY RIGHT, CLAIM OR REMEDY FOR BREACH OF CONTRACT;

           (4)    ANY RIGHT, CLAIM OR REMEDY FOR TORT, UNDER ANY THEORY OF
                  LIABILITY, HOWEVER ALLEGED, INCLUDING, BUT NOT LIMITED TO,
                  ACTIONS AND/OR CLAIMS FOR NEGLIGENCE, GROSS NEGLIGENCE,
                  INTENTIONAL ACTS, WILLFUL DISREGARD, IMPLIED WARRANTY, PRODUCT
                  LIABILITY, STRICT LIABILITY OR FAILURE TO WARN;

           (5)    ANY RIGHT, CLAIM OR REMEDY ARISING UNDER THE UNIFORM
                  COMMERCIAL CODE OR ANY OTHER STATE OR FEDERAL STATUTE;

           (6)    ANY RIGHT, CLAIM OR REMEDY ARISING UNDER ANY REGULATIONS OR
                  STANDARDS IMPOSED BY ANY INTERNATIONAL, NATIONAL, STATE OR
                  LOCAL STATUTE OR AGENCY;

           (7)    ANY RIGHT, CLAIM OR REMEDY TO RECOVER OR BE COMPENSATED FOR:

                  (a)      LOSS OF USE OR REPLACEMENT OF ANY AIRCRAFT,
                           COMPONENT, EQUIPMENT, ACCESSORY OR PART PROVIDED
                           UNDER THIS AGREEMENT;

                  (b)      LOSS OF, OR DAMAGE OF ANY KIND TO, ANY AIRCRAFT,
                           COMPONENT, EQUIPMENT, ACCESSORY OR PART PROVIDED
                           UNDER THIS AGREEMENT;

                  (c)      LOSS OF PROFITS AND/OR REVENUES;

                  (d)      ANY OTHER INCIDENTAL OR CONSEQUENTIAL DAMAGE.

                                                                    69

<PAGE>

           THE WARRANTIES AND SERVICE LIFE POLICY PROVIDED BY THIS AGREEMENT
           SHALL NOT BE EXTENDED, ALTERED OR VARIED EXCEPT BY A WRITTEN
           INSTRUMENT SIGNED BY AVSA AND NORTHWEST. IN THE EVENT THAT ANY
           PROVISION OF THIS CLAUSE 12 SHOULD FOR ANY REASON BE HELD UNLAWFUL,
           OR OTHERWISE UNENFORCEABLE, THE REMAINDER OF THIS CLAUSE 12 SHALL
           REMAIN IN FULL FORCE AND EFFECT.

           The remedies provided to Northwest under this Clause 12 as to any
           defect in respect of the Aircraft or any part thereof are mutually
           exclusive and not cumulative. Northwest shall be entitled to the
           remedy that provides the maximum benefit to it, as Northwest may
           elect, pursuant to the terms and conditions of this Clause 12 for any
           such particular defect for which remedies are provided under this
           Clause 12; provided, however, that Northwest shall not be entitled to
           elect a remedy under one part of this Clause 12 that constitutes a
           duplication of any remedy elected by it under any other part hereof
           for the same defect. Northwest's rights and remedies herein for the
           nonperformance of any obligations or liabilities of AVSA arising
           under these warranties shall be in monetary damages limited to the
           amount Northwest expends in procuring a correction or replacement for
           any covered part subject to a defect or nonperformance covered by
           this Clause 12, and Northwest shall not have any right to require
           specific performance by AVSA,(CONFIDENTIAL MATERIAL OMITTED AND FILED
           SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
           REQUEST FOR CONFIDENTIAL TREATMENT).

12.7       NEGOTIATED AGREEMENT

           Northwest and AVSA agree that this Clause 12 has been the subject of
           discussion and negotiation and is fully understood by the parties and
           that the price of the Aircraft and the other mutual agreements of the
           parties set forth in this Agreement were arrived at in consideration
           of, INTER ALIA, the provisions of this Clause 12, specifically
           including the Exclusivity of Warranties and General Limitations of
           Liability provisions and the Duplicate Remedies provisions set forth
           in Subclause 12.5 and following Subclause 12.6.

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13 -       PATENT INDEMNITY

           AVSA (in the case of the Aircraft and Warranted Parts) and ASCO (in
           the case of Seller Parts) represent and warrant that the Manufacturer
           has provided to AVSA and ASCO the following indemnity against patent
           infringements with respect to the Aircraft, Warranted Parts and
           Seller Parts, subject to the terms, conditions, limitations and
           restrictions (including, but not limited to, the Exclusivity of
           Warranties and Duplicate Remedies provisions) as hereinafter set out,
           and that the same are in full force and effect and have not been
           amended. AVSA and ASCO hereby assign to Northwest, and Northwest
           hereby accepts, all of AVSA's and ASCO's rights and obligations as
           the "Buyer" under the said indemnity against patent infringements,
           and AVSA and ASCO subrogate Northwest to all such rights and
           obligations in respect of the Aircraft. AVSA and ASCO each hereby
           warrants to Northwest that (i) it has all requisite authority to make
           the foregoing assignment and to effect the foregoing subrogation in
           favor of Northwest, (ii) such assignment and subrogation are
           effective to confer on Northwest all of the foregoing rights and
           obligations of AVSA and ASCO, and (iii) AVSA and ASCO shall not enter
           into any amendment of the provisions so assigned without the prior
           written consent of Northwest.

           It is understood that, in the provisions below between the words
           QUOTE and UNQUOTE, capitalized terms have the meanings assigned
           thereto in this Agreement, except that (i) the term "Seller," which
           means the Manufacturer as between the Manufacturer and AVSA and ASCO,
           also means the Manufacturer in this Agreement, and (ii) the term
           "Buyer" which means AVSA and ASCO as between the Manufacturer and
           AVSA and ASCO, means Northwest in this Agreement.

QUOTE

13.1       SCOPE

           The Seller shall indemnify the Buyer from and against any damages,
           costs and expenses including reasonable legal costs (excluding
           damages, costs, expenses, loss of profits and other liabilities in
           respect of or resulting from loss of use of any Aircraft):

           (1)    to the extent of (CONFIDENTIAL MATERIAL OMITTED AND FILED
                  SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
                  PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)thereof in
                  case of any actual or alleged infringement by any Aircraft or
                  any Warranted Part or the use thereof of

                  (a)      any British, French, German, Spanish or US patent, or

                  (b)      any patent issued under the laws of any other country
                           in which Northwest may lawfully operate the Aircraft,
                           provided that:

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<PAGE>

                           (i)      from the time of design of such Aircraft,
                                    accessory, equipment or part and until
                                    infringement claims are resolved, such
                                    country and the flag country of the Aircraft
                                    is each a party to the Chicago Convention on
                                    International Civil Aviation of December 7,
                                    1944, and is fully entitled to all benefits
                                    of Article 27 thereof, or in the
                                    alternative,

                           (ii)     from such time of design and until
                                    infringement claims are resolved, such
                                    country and the flag country of the Aircraft
                                    is each a party to the International
                                    Convention for the Protection of Industrial
                                    Property of March 20, 1883 (known as the
                                    "Paris Convention").

           (2)    to the extent of(CONFIDENTIAL MATERIAL OMITTED AND FILED
                  SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
                  PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) thereof in
                  case of any actual or alleged infringement by any Aircraft or
                  any Warranted Part or the use thereof of any patent issued
                  under the laws of any country not covered by (1) above in
                  which the Buyer is from time to time lawfully operating the
                  Aircraft.

           The Seller's undertaking under this Clause 13 shall not apply to
           components, accessories, equipment or parts which are not Warranted
           Parts.

13.2       SELLER'S ACTION

           Should the Buyer be enjoined from using any part of an Aircraft by
           reason of infringement of a patent covered by Subclause 13.1, the
           Seller shall, at its option and expense, either (i) procure for the
           Buyer the right to use such part free of any liability for patent
           infringement or (ii) as soon as possible replace such part with a
           noninfringing substitute otherwise complying with the requirements of
           this Agreement.

13.3       SELLER'S OBLIGATION

           The Seller's obligation hereunder with respect to any actual or
           alleged infringement is conditioned upon commencement of suit against
           the Buyer for infringement or the Buyer's receipt of a written claim
           alleging infringement, and upon written notice by the Buyer to the
           Seller (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE
           SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
           CONFIDENTIAL TREATMENT) after receipt by the Buyer of notice of the
           institution of such suit or receipt of such claim, giving particulars
           thereof. The Seller shall have the option but not the obligation at
           any time to conduct negotiations with the party or parties charging
           infringement and may intervene in any suit commenced. Whether or not
           the Seller intervenes in any such suit, it shall be entitled at any
           stage of the proceedings to assume, conduct or control the defense
           thereof.

                                                                    72

<PAGE>

           The Seller's obligation hereunder with respect to any actual or
           alleged infringement is also conditioned upon (i) the Buyer's
           promptly furnishing to the Seller all the data, papers, records and
           other assistance within the control of the Buyer material to the
           resistance of or defense against any such charge or suits for
           infringement, (ii) the Buyer's use of diligent efforts in full
           cooperation with the Seller to reduce royalties, damages, costs and
           expenses involved, (iii) the Seller's prior approval of the Buyer's
           payment, assumption or admission of any liabilities, expenses, costs
           or royalties for which the Seller is asked to respond and (iv) the
           Buyer's not otherwise acting in a manner prejudicial to its or the
           Seller's defense of the action.

13.4       WAIVER

           THE INDEMNITY PROVIDED IN THIS CLAUSE 13 AND THE OBLIGATIONS AND
           LIABILITIES OF THE SELLER UNDER THIS CLAUSE 13 ARE EXCLUSIVE AND IN
           SUBSTITUTION FOR, AND THE BUYER HEREBY WAIVES, RELEASES AND RENOUNCES
           ALL OTHER INDEMNITIES, WARRANTIES, OBLIGATIONS, GUARANTEES AND
           LIABILITIES ON THE PART OF THE SELLER AND RIGHTS, CLAIMS AND REMEDIES
           OF THE BUYER AGAINST THE SELLER, EXPRESS OR IMPLIED, ARISING BY LAW
           OR OTHERWISE (INCLUDING WITHOUT LIMITATION ANY OBLIGATION, LIABILITY,
           RIGHT, CLAIM OR REMEDY ARISING FROM OR WITH RESPECT TO LOSS OF USE OR
           REVENUE OR CONSEQUENTIAL DAMAGES), WITH RESPECT TO ANY ACTUAL OR
           ALLEGED PATENT INFRINGEMENT OR THE LIKE BY ANY AIRCRAFT, ACCESSORY,
           EQUIPMENT OR PART, OR THE USE OR SALE THEREOF, PROVIDED THAT, IN THE
           EVENT THAT ANY OF THE AFORESAID PROVISIONS SHOULD FOR ANY REASON BE
           HELD UNLAWFUL OR OTHERWISE INEFFECTIVE, THE REMAINDER OF THIS
           SUBCLAUSE 13.4 SHALL REMAIN IN FULL FORCE AND EFFECT. THIS PATENT
           INDEMNITY SHALL NOT BE EXTENDED, ALTERED OR VARIED EXCEPT BY A
           WRITTEN INSTRUMENT SIGNED BY THE SELLER AND THE BUYER.

UNQUOTE

           In consideration of the assignment and subrogation by AVSA under this
           Clause 13 in favor of Northwest in respect of AVSA's rights against
           and obligations to the Manufacturer under the provisions quoted
           above, Northwest hereby accepts such assignment and subrogation and
           agrees to be bound by all of the terms, conditions and limitations
           therein contained (specifically including, without limitation, the
           waiver, release and renunciation provision).

           THE INDEMNITY PROVIDED IN THIS CLAUSE 13 AND THE OBLIGATIONS AND
           LIABILITIES OF AVSA UNDER THIS CLAUSE 13 ARE EXCLUSIVE AND IN
           SUBSTITUTION FOR, AND NORTHWEST HEREBY WAIVES, RELEASES AND RENOUNCES
           ALL OTHER INDEMNITIES, WARRANTIES, OBLIGATIONS, GUARANTEES AND
           LIABILITIES ON THE PART OF AVSA AND RIGHTS,

                                                                    73

<PAGE>

           CLAIMS AND REMEDIES OF NORTHWEST AGAINST AVSA, EXPRESS OR IMPLIED,
           ARISING BY LAW OR OTHERWISE (INCLUDING WITHOUT LIMITATION ANY
           OBLIGATION, LIABILITY,  RIGHT, CLAIM OR REMEDY ARISING FROM OR WITH
           RESPECT TO LOSS OF USE OR REVENUE OR CONSEQUENTIAL DAMAGES), WITH
           RESPECT TO ANY ACTUAL OR ALLEGED PATENT INFRINGEMENT OR THE LIKE BY
           ANY AIRCRAFT, ACCESSORY, EQUIPMENT OR PART, OR THE USE OR SALE
           THEREOF, PROVIDED THAT, IN THE EVENT THAT ANY OF THE AFORESAID
           PROVISIONS SHOULD FOR ANY REASON BE HELD UNLAWFUL OR

           OTHERWISE INEFFECTIVE, THE REMAINDER OF THIS CLAUSE SHALL REMAIN IN
           FULL FORCE AND EFFECT. THIS PATENT INDEMNITY SHALL NOT BE EXTENDED,
           ALTERED OR VARIED EXCEPT BY A WRITTEN INSTRUMENT SIGNED BY AVSA AND
           NORTHWEST.

                                                                    74

<PAGE>

14 -       TECHNICAL PUBLICATIONS

           Technical publications shall be supplied to Northwest pursuant to
           Clause 2 of the A330 Product Support Agreement.

                                                                    75

<PAGE>

15 -       FIELD ASSISTANCE

           Field services shall be provided to Northwest pursuant to Clause 3 of
           the A330 Product Support Agreement.
16 -       TRAINING

Training and training aids shall be provided to Northwest pursuant to Clause 4
of the A330 Product Support Agreement
17 -       VENDORS' PRODUCT SUPPORT

17.1       VENDOR PRODUCT SUPPORT AGREEMENTS

17.1.1     AVSA has obtained product support agreements transferable to
           Northwest from Vendors of Seller Furnished Equipment listed in the
           Specification ("Product Support Agreements").

17.1.2     These Product Support Agreements are based on the "World Airlines and
           Suppliers Guide" and include Vendor commitments as contained in the
           Supplier Product Support Agreements with respect to warranties and
           guarantees (copies of which have been provided to Northwest).

17.2       VENDOR COMPLIANCE

           AVSA shall monitor Vendor compliance with support commitments defined
           in the Product Support Agreements and shall take remedial action
           together with Northwest if requested by Northwest in writing.

17.3       VENDOR PART REPAIR STATIONS

17.3.1     The Manufacturer has developed with the Vendors a program aimed at
           building a comprehensive network of repair stations in North America
           for those Vendor Parts originating from outside this territory.

17.3.2     As a result of the above, most Vendor Parts are now repairable in
           North America, and corresponding repair stations are listed in a
           document, the AOG and Repair Guide, which is issued and regularly
           updated by the Manufacturer.

           Vendor Parts that have to be repaired outside North America shall be
           sent by Northwest to(CONFIDENTIAL MATERIAL OMITTED AND FILED
           SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
           REQUEST FOR CONFIDENTIAL TREATMENT). All such Vendor Parts shall be
           returned to Northwest with all applicable FAA tagging.

17.3.3     AVSA shall support Northwest in cases where the agreed repair turn
           time of an approved repair station is not met by causing
           free-of-charge loans or exchanges (as specified in the relevant
           Supplier Product Support Agreements manual) to be offered to

                                                                    76

<PAGE>

           Northwest.

                                                                    77

<PAGE>

18 -       BUYER FURNISHED EQUIPMENT AND DATA

18.1       INSTALLATION AND DELIVERY

18.1.1     Without additional charge, and in accordance with the Specification,
           AVSA shall cause the Manufacturer to provide for the installation of
           the Buyer Furnished Equipment.

18.1.2     AVSA shall cause the Manufacturer to advise Northwest of the dates by
           which, in the planned release of engineering for an Aircraft, the
           Manufacturer reasonably requires a written detailed description of
           the dimensions and weight of Buyer Furnished Equipment for such
           Aircraft and information necessary for the installation and operation
           thereof, and Northwest shall furnish such detailed description and
           information by the dates so specified. Such dimensions and weights
           shall not thereafter be revised unless mutually agreed and set forth
           in an SCN.

18.1.3     AVSA shall also cause the Manufacturer to furnish in sufficient time
           to Northwest a schedule of dates by and locations to which Buyer
           Furnished Equipment for such Aircraft must be delivered to the
           Manufacturer to permit installation in and delivery of such Aircraft
           in accordance with the delivery schedule referred to in Clause 9.
           Northwest shall furnish such equipment to the Manufacturer at such
           locations by such dates. Northwest, at its own expense, shall also
           furnish or cause to be present at the works where such Buyer
           Furnished Equipment is to be installed, when reasonably requested by
           the Manufacturer, field service representatives to provide the
           Manufacturer technical advice regarding the installation and
           calibration of Buyer Furnished Equipment.

18.2       SPECIFICATION AND AIRWORTHINESS APPROVALS

           Northwest warrants that all Buyer Furnished Equipment (other than
           Buyer Furnished Equipment manufactured by the Manufacturer) shall
           meet the requirements of the Specification, shall comply with
           applicable DGAC and FAA regulations and shall be approved by the DGAC
           and the FAA for installation and use on an Aircraft at the time of
           delivery of such Aircraft. AVSA shall bear no expense in connection
           with adjusting and calibrating Buyer Furnished Equipment to the
           extent necessary to obtain DGAC and FAA approval, unless such work is
           due to an Aircraft Interface Problem, mishandling or excessive use on
           the part of AVSA or the Manufacturer.

18.3       DELAY AND NONPERFORMANCE

           Any delay or failure in complying with the warranty in the foregoing
           Subclause 18.2, in providing the descriptive information and services
           mentioned in Subclause 18.1 hereof, in furnishing the Buyer Furnished
           Equipment or in obtaining any required approval of such equipment
           under the DGAC or FAA regulations shall be the responsibility of
           Northwest, to the extent that such delay or failure shall in turn,

                                                                    78

<PAGE>

           (i)    delay the performance of any act to be performed by or on
                  behalf of AVSA or the Manufacturer, or

           (ii)   cause the Final Contract Price of the Aircraft to be increased
                  by the amount of AVSA's additional reasonable and
                  substantiated costs, if any, attributable to such delay or
                  failure by Northwest, including, without limitation, storage,
                  taxes, insurance and costs of out-of-sequence installation,

           and any resulting cost shall be borne by Northwest.

           Further, in any such event, AVSA shall give written notice to
           Northwest and, unless Northwest has cured such noncompliance within
           (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
           SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
           CONFIDENTIAL TREATMENT) Working Days after such notice, AVSA may
           elect to take any of the actions set forth below in Subclauses
           18.3.2, 18.3.3 or 18.3.4.

18.3.2     At Northwest's request, AVSA shall be entitled to cause the
           Manufacturer to purchase and install the Buyer Furnished Equipment
           involved, in which event the Final Contract Price of the affected
           Aircraft shall be increased by the purchase price of such Buyer
           Furnished Equipment plus reasonable costs and expenses incurred by
           the Manufacturer for handling charges, transportation, insurance,
           packaging and, if so required and not already provided for in the
           Final Contract Price of such Aircraft, for adjustment and
           calibration.

18.3.3     If (i) delivery of the Buyer Furnished Equipment is delayed by more
           than (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
           SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
           CONFIDENTIAL TREATMENT) days after the date specified by the
           Manufacturer for the delivery of such Buyer Furnished Equipment or
           (ii) the Buyer Furnished Equipment required to obtain certification
           of the Aircraft in accordance with Subclause 2.3 hereof is not
           approved by the DGAC or the FAA within (CONFIDENTIAL MATERIAL OMITTED
           AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
           PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)days after the date
           specified by the Manufacturer for the delivery of such Buyer
           Furnished Equipment, then, notwithstanding the terms of Subclause
           2.3, AVSA shall be entitled to deliver the affected Aircraft where it
           is then located with no obligation to install such Buyer Furnished
           Equipment. Upon such delivery AVSA shall be relieved of all
           obligations to install such Buyer Furnished Equipment.

18.3.4     If (i) the Buyer Furnished Equipment is delayed by more than
           (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
           SECURITIES

                                                                              79
<PAGE>

           AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
           CONFIDENTIAL TREATMENT)days after the date specified by the
           Manufacturer for the delivery of such Buyer Furnished Equipment or
           (ii) the Buyer Furnished Equipment is not required for certification
           of the Aircraft and is not approved by the DGAC or the FAA within
           (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
           SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
           CONFIDENTIAL TREATMENT)days after the date specified by the
           Manufacturer for the delivery of such Buyer Furnished Equipment, then
           AVSA shall be entitled to deliver the Aircraft with no obligation to
           install such Buyer Furnished Equipment. Northwest may also elect to
           have the Aircraft so delivered, whereupon AVSA shall be relieved of
           all obligations to install such Buyer Furnished Equipment.

18.4       Any Buyer Furnished Equipment installed on an Aircraft and
           subsequently removed due to the fault of Northwest shall be removed
           at Northwest's expense.

18.5       TAX-FREE ZONES

           Northwest shall cause all Buyer Furnished Equipment to be delivered
           at its own expense to the following address, unless AVSA notifies
           Northwest otherwise in writing.

           For all Buyer Furnished Equipment

                  EADS Airbus S.A. (formerly known as Aerospatiale Matra
                  Airbus S.A.)
                  316 Route de Bayonne
                  31300 TOULOUSE
                  FRANCE

18.6       RISK OF LOSS

           Title to and risk of loss of Buyer Furnished Equipment shall at all
           times remain with Northwest. When Buyer Furnished Equipment is in the
           possession of AVSA, AVSA shall have only such responsibility therefor
           as is chargeable by law to a bailee for hire, but shall not be liable
           for loss of use. (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
           WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
           CONFIDENTIAL TREATMENT)

18.7       AVSA-SUPPLIED BUYER FURNISHED EQUIPMENT

           If Northwest requests AVSA to cause the Manufacturer to supply
           directly certain items that are considered Buyer Furnished Equipment
           pursuant to the Specification, and if

                                                                              80
<PAGE>

           compliance with such request by AVSA and the Manufacturer in their
           judgment shall not affect the delivery date of an Aircraft referred
           to in Clause 9, then AVSA shall order such items subject to the
           execution of an SCN reflecting the effect on price and any other
           items and conditions of this Agreement. In such a case, AVSA shall be
           entitled to the payment of a reasonable handling charge and shall
           bear no liability in respect of product support commitments assumed
           by the Vendor of such Buyer Furnished Equipment. The provisions of
           Subclauses 18.2 and 18.3 shall apply to Buyer Furnished Equipment
           covered under this Subclause 18.7 except in the event of any delay
           in approval or delivery of such Buyer Furnished Equipment
           attributable to the action of AVSA, the Manufacturer or the
           Associated Contractor.

                                                                              81
<PAGE>

19 -       ASSIGNMENT

19.1       SUCCESSORS AND ASSIGNS

           Subject to the provisions of this Clause 19, this Agreement shall
           inure to the benefit of and be binding upon the successors and
           assigns of the parties hereto. This Agreement and/or the rights of
           either party hereunder shall not be assigned or transferred in any
           manner whatsoever, in whole or in part, by either party without the
           prior written consent of the other party, such consent not to be
           unreasonably withheld by AVSA in the case of any assignment by
           Northwest of its rights hereunder to (CONFIDENTIAL MATERIAL OMITTED
           AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
           PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT).

           Notwithstanding anything herein to the contrary, AVSA may at any time
           without Northwest's consent, assign any of its rights to receive
           money and any of its duties to effect the sale and delivery of any
           Aircraft or any of its responsibilities, duties or obligations to
           perform any other obligations hereunder to the Manufacturer, any of
           the Associated Contractor, ASCO or to any Affiliate of the Seller,
           the Manufacturer or any Associated Contractor (CONFIDENTIAL MATERIAL
           OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
           COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT).

19.2       AVSA'S DESIGNATIONS

           AVSA may at any time by notice to Northwest designate particular
           facilities or particular personnel of the Manufacturer, ASCO, any of
           the Associated Contractors or any Affiliate of the Manufacturer or
           any Associated Contractor at which or by whom the services to be
           performed under this Agreement shall be performed. AVSA may also
           designate the Manufacturer, any Associated Contractor or any
           Affiliate of the Manufacturer or any Associated Contractor as the
           party responsible on behalf of AVSA for providing to Northwest all or
           any of the services described in this Agreement. No such designation
           shall amend or modify, and AVSA shall remain fully obligated to
           perform, all of the obligations of AVSA in this Agreement.

19.3       ASSIGNMENT IN CASE OF RESALE OR LEASE

           In the event of the resale or lease of any Aircraft by Northwest
           following delivery thereof to Northwest, and subject to the delivery
           to AVSA of reasonable financial guarantees and protections and other
           terms as AVSA may reasonably require, Northwest's rights with respect
           to such Aircraft solely under Clauses 12, 13 and 17 and this
           Subclause 19.3 of this Agreement, shall inure to the benefit of such
           purchaser or

                                                                              82

<PAGE>

           lessee, as the case may be. Northwest shall furnish to AVSA a true
           copy of such agreement with such purchaser or lessor, clearly stating
           that such purchaser or lessor acknowledges that it is bound by and
           shall comply with all applicable terms, conditions and limitations of
           this Agreement. (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
           WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
           CONFIDENTIAL TREATMENT)

19.4       FINANCING FOR PREDELIVERY Payments

           Nothwithstanding the provisions of Subclause 19.1, AVSA and Northwest
           will negotiate by a date no later than ninety (90) days following the
           execution of this Agreement, the terms under which AVSA will consent
           to the collateral assignment by Northwest of its rights and benefits
           under this Agreement to the extent necessary to secure, in the
           reasonable opinion of Northwest and AVSA, a financing facility to be
           negotiated between Northwest and the Propulsion Systems manufacturer
           under which Northwest will finance some or all of the Predelivery
           Payments paid or payable by Northwest hereunder.

                                                                              83
<PAGE>

20 -       DATA RETRIEVAL

           On AVSA's reasonable request, Northwest shall provide AVSA with all
           the necessary data, as customarily compiled by Northwest and
           pertaining to the operation of the Aircraft, to assist AVSA in making
           an efficient and coordinated survey of all reliability, maintenance,
           operational and cost data with a view to improving the safety,
           availability and operational costs of the Aircraft.

                                                                              84
<PAGE>

21 -       TERMINATION FOR CERTAIN EVENTS

21.1       Any of the following shall be considered a material breach of, as
           applicable, Northwest's or AVSA's obligations under this Agreement
           ("Material Breach"):

           (1)    AVSA, Northwest or any other party shall commence any case,
                  proceeding or other action with respect to AVSA or Northwest
                  in any jurisdiction relating to bankruptcy, insolvency,
                  reorganization or relief from debtors or seeking a
                  reorganization, arrangement, winding-up, liquidation,
                  dissolution or other relief with respect to its debts and such
                  case, proceeding or action is not dismissed
                  within(CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH
                  THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST
                  FOR CONFIDENTIAL TREATMENT).

           (2)    An action is commenced seeking the appointment of a receiver,
                  trustee, custodian or other similar official for AVSA or
                  Northwest for all or substantially all of its assets and such
                  action is not stayed or dismissed within (CONFIDENTIAL
                  MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
                  EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                  TREATMENT), or AVSA or Northwest makes a general assignment
                  for the benefit of its creditors.

           (3)    An action is commenced against AVSA or Northwest seeking
                  issuance of a warrant of attachment, execution, distraint or
                  similar process against all or any substantial part of its
                  assets and such action is not dismissed within(CONFIDENTIAL
                  MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
                  EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                  TREATMENT).

           (4)    AVSA or Northwest is generally unable to pay its debts as they
                  come due.

           (5)    There is a liquidation, winding up or analogous event with
                  respect to Northwest or AVSA.

           (6)    Northwest fails to make any Predelivery Payment required to be
                  made pursuant to this Agreement when such payment comes due or
                  fails to make payment of all or part of the Final Contract
                  Price required to be made pursuant to Subclause 6.3 of this
                  Agreement.

           (7)    Northwest defaults on any payment of principal or interest on
                  any indebtedness or

                                                                        85
<PAGE>

                  in the payment of any guarantee obligation, to AVSA or any of
                  its Affiliates.

           (8)    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

           (9)    Northwest defaults in its obligation to take delivery of an
                  Aircraft, or AVSA defaults in its obligation to deliver an
                  Aircraft as provided in this Agreement.

                                                                         86
<PAGE>

           (10)   Northwest or AVSA, or any of AVSA's affiliates, defaults in
                  any material respect in the observance or performance of any
                  other material covenant or undertaking contained in this
                  Agreement, and such default continues beyond the applicable
                  grace period (if any).

           (11)   AVSA or any of its Affiliates defaults in any material respect
                  in the observance or performance of any material covenant or
                  undertaking in the(CONFIDENTIAL MATERIAL OMITTED AND FILED
                  SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
                  PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT), and such
                  default continues beyond the applicable grace period (if any).

21.2     In the event of any Material Breach by either party, the other party
         shall at its option have the right to resort to any remedy under
         applicable law, including, without limitation, the right by written
         notice, effective immediately, to (i) suspend its performance under the
         Agreement, (ii) in the case of a Material Breach by Northwest,
         reschedule the delivery dates for Aircraft or for other goods and
         services, (iii) terminate this Agreement with respect to any or all
         Aircraft, services, data and other items undelivered or unfurnished on
         the effective date of such termination, (CONFIDENTIAL MATERIAL OMITTED
         AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
         PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT).

                                                                        87
<PAGE>

22 -       MISCELLANEOUS PROVISIONS

22.1       NOTICES

           All notices and requests required or authorized hereunder shall be
           given in writing either by personal delivery to a responsible officer
           of the party to whom the same is given or by commercial courier,
           certified air mail (return receipt requested), facsimile or other
           electronic transmission at the addresses and numbers set forth below.
           The date upon which any such notice or request is so personally
           delivered, or if such notice or request is given by commercial
           courier, certified air mail, facsimile or other electronic
           transmission, the date upon which sent, shall be deemed to be the
           effective date of such notice or request.

           AVSA shall be addressed at:

           2, rond-point Maurice Bellonte
           31700 BLAGNAC  FRANCE
           Attention:  Director - Contracts
           Telephone:      33 561 30 40 12
           Facsimile:      33 561 30 40 11

           NORTHWEST SHALL BE ADDRESSED AT:

           Treasurer
           Northwest Airlines, Inc.
           5101 Northwest Drive
           St. Paul, MN  55111

           COURIER:

           Treasurer
           Northwest Airlines, Inc.
           2700 Lone Oak Parkway
           Eagan, MN  55121
           Telephone:  (612) 727-4882
           Facsimile:   (612) 726-0665

           From time to time, the party receiving the notice or request may
           designate another address or another person.

                                                                    88
<PAGE>

22.2       WAIVER

           The failure of either party to enforce at any time any of the
           provisions of this Agreement, to exercise any right herein provided
           or to require at any time performance by the other party of any of
           the provisions hereof shall in no way be construed to be a present or
           future waiver of such provisions nor in any way to affect the
           validity of this Agreement or any part hereof or the right of the
           other party thereafter to enforce each and every such provision. The
           express waiver by either party of any provision, condition or
           requirement of this Agreement shall not constitute a waiver of any
           future obligation to comply with such provision, condition or
           requirement.

22.3       INTERPRETATION AND LAW

           THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND THE PERFORMANCE
           THEREOF SHALL BE DETERMINED IN ACCORDANCE WITH THE LAWS OF THE STATE
           OF NEW YORK.

           THE PARTIES HEREBY ALSO AGREE THAT THE UNITED NATIONS CONVENTION ON
           CONTRACTS FOR THE INTERNATIONAL SALE OF GOODS SHALL NOT APPLY TO THIS
           TRANSACTION.

22.4       CONFIDENTIALITY

           Subject to any legal or governmental requirements of disclosure, the
           parties (which for this purpose shall include their employees, agents
           and advisors) shall maintain the terms and conditions of this
           Agreement and any reports or other data furnished hereunder strictly
           confidential. Without limiting the generality of the foregoing,
           Northwest shall use reasonable efforts to limit the disclosure of the
           contents of this Agreement to the extent legally permissible in any
           filing required to be made by Northwest with any governmental agency
           and shall make such applications as shall be necessary to implement
           the foregoing.(CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
           WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
           CONFIDENTIAL TREATMENT) Northwest and AVSA shall consult with each
           other prior to the making of any public disclosure or filing,
           permitted hereunder, of this Agreement or the terms and conditions
           thereof. The provisions of this Subclause 22.4 shall survive any
           termination of this Agreement.

22.5       SEVERABILITY

           In the event that any provision of this Agreement should for any
           reason be held to be without effect, the remainder of this Agreement
           shall remain in full force and effect. To

                                                                           89
<PAGE>

           the extent permitted by applicable law, each party hereto hereby
           waives any provision of law which renders any provision of this
           Agreement prohibited or unenforceable in any respect.

22.6       ALTERATIONS TO CONTRACT

           This Agreement contains the entire agreement between the parties with
           respect to the subject matter hereof and thereof and supersedes any
           previous understanding, commitments or representations whatsoever,
           whether oral or written. This Agreement shall not be varied except by
           an instrument in writing of even date herewith or subsequent hereto
           executed by both parties or by their fully authorized
           representatives.

22.7       INCONSISTENCIES

           In the event of any inconsistency between the terms of this Agreement
           and the terms contained in either (i) the Specification, or (ii) any
           other Exhibit attached to this Agreement, in each such case the terms
           of such Specification or Exhibit shall prevail over the terms of this
           Agreement. For the purpose of this Subclause 22.7, the term Agreement
           shall not include the Specification or any other Exhibit hereto.

22.8       LANGUAGE

           All correspondence, documents and any other written matters in
           connection with this Agreement shall be in English.

22.9       HEADINGS

           All headings in this Agreement are for convenience of reference only
           and do not constitute a part of this Agreement.

22.10      COUNTERPARTS

           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 instrument.

                                                                       90
<PAGE>

22.11      OPINION OF COUNSEL

           Northwest shall, concurrently with the execution of this Agreement,
           deliver to AVSA an opinion of counsel for Northwest reasonably
           satisfactory to AVSA and dated as of such date to the effect that (i)
           the execution, delivery and performance of this Agreement and the
           A330 Product Support Agreement are within the corporate power of
           Northwest, and (ii) this Agreement and the A330 Product Support
           Agreement have been duly executed and delivered by and constitute
           legal, valid and binding obligations of Northwest enforceable in
           accordance with their terms.

                                                                       91
<PAGE>

IN WITNESS WHEREOF, these presents were entered into as of the day and year
first above written.

AVSA, S.A.R.L.

By:   /s/ Francois Bensier
      ____________________________________

TITLE:   AVSA Chief Executive Officer

NORTHWEST AIRLINES, INC.

By: /s/ Gregory A. May
    ____________________________________

TITLE:   Vice President Aircraft Transactions

                                                                              92
<PAGE>

                                                                       EXHIBIT A

                             STANDARD SPECIFICATION

The A330 Standard Specification is contained in a separate folder.

                                                                       Exh. A-1

<PAGE>

                            A330-300 OPTIONS SUMMARY                   EXHIBIT B

  (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
     EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)

                                                                       Exh. B-1

<PAGE>

                                                                       EXHIBIT C

================================================================================
                      AVSA                      SCN No.
           SPECIFICATION CHANGE NOTICE          Issue
                      (SCN)                     Dated
                                                Page No.
--------------------------------------------------------------------------------

TITLE

DESCRIPTION

EFFECT ON WEIGHT
Manufacturer's Weight Empty Change:

Operational Weight Empty Change:

Allowable Payload Change:

REMARKS/REFERENCES
Response to RFC

SPECIFICATION CHANGED BY THIS SCN

THIS SCN REQUIRES PRIOR OR CONCURRENT ACCEPTANCE OF THE FOLLOWING SCN(s)

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

PRICE PER AIRCRAFT

US DOLLARS:

AT DELIVERY CONDITIONS:

This change will be effective on ________________ Aircraft No.______________ and
subsequent provided approval is received by _________________________.

BUYER APPROVAL                                   SELLER APPROVAL

By:                                              By:

Title: (Authorized Finance Department Officer)   Date:

By:

Title:  (Authorized maintenance or flight operations officer)

Date:

================================================================================

                                                                       Exh. C-1

<PAGE>

================================================================================
                      AVSA                      SCN No.
           SPECIFICATION CHANGE NOTICE          Issue
                      (SCN)                     Dated
                                                Page No.
--------------------------------------------------------------------------------

SCOPE OF CHANGE  (FOR INFORMATION ONLY)

================================================================================

                                                                       Exh. C-2

<PAGE>

                                                                       EXHIBIT D

                         AIRFRAME PRICE REVISION FORMULA

1.       BASE PRICE

         The Base Price of the Airframe is as quoted in Subclause 4.1.1 of the
         Agreement.

2.       BASE PERIOD

         The above Base Prices have been established in accordance with the
         averaged economic conditions prevailing in December 1998/January
         1999/February 1999 and corresponding to theoretical delivery conditions
         prevailing in January 2000 as defined by ECIb and ICb index values
         indicated in Paragraph 4 of this Appendix D.

         These Base Prices are subject to adjustment for changes in economic
         conditions as measured by data obtained from the US Department of
         Labor, Bureau of Labor Statistics, and in accordance with the
         provisions of Paragraphs 4 and 5 of this Appendix D.

         ECIb and ICb index values indicated in Paragraph 4 of this Appendix D
         will not be subject to any revision of these indexes.

3.       REFERENCE INDEXES

         LABOR INDEX: Published quarterly by the US Department of Labor, Bureau
         of Labor Statistics, in "News" (Table 6: "Employment Cost Index for
         wages and salaries for private industry workers by industry and
         occupational group" (NOT SEASONALLY ADJUSTED)), or such other names
         that may be from time to time used for the publication title and/or
         table. The index is found under aircraft manufacturing with a standard
         industrial classification code of SIC 3721 (hereinafter referred to as
         "ECI-SIC-3721W") (Base month and year June 1989 = 100).

         MATERIAL INDEX: Published monthly by the US Department of Labor, Bureau
         of Labor Statistics, in "PPI Detailed Report" (Table 6: "Producer
         prices indexes and percent changes for commodity groupings and
         individual items, not seasonally adjusted"), or such other names that
         may be from time to time used for the publication title and/or table.
         The index is found under industrial commodities (hereinafter referred
         to as "IC-Index") (Base year 1982 = 100).

                                                                       Exh. D-1

<PAGE>

4 -      REVISION FORMULA

         Pn       =        (Pb + F) (0.75 ECIn/ECIb + 0.25 ICn/ICb)

         Where

         Pn       =        Revised Base Price of the Airframe at delivery of the
                           Aircraft.

         Pb                = Base Price of the Airframe at economic conditions
                           December 1998/January 1999/February 1999 averaged
                           (January 2000 delivery conditions).

         F        =        (0.005 x N x Pb) Where  N = The calendar year of
                           delivery of the Aircraft minus 2000.

         ECIn     =        The arithmetic average of the latest published values
                           available at the date of Aircraft delivery for
                           ECI-SIC-3721W for the llth, l2th and l3th months
                           prior to the month of delivery of the Aircraft (1
                           decimal), where the quarterly value for the third
                           month of a quarter (March, June, September and
                           December) will be deemed to apply for the two
                           preceding months.

         ECIb     =        ECI-SIC-3721W for December l998/January 1999/February
                           1999 averaged (= 139.0).

         ICn      =        The arithmetic average of the latest published values
                           available at the date of Aircraft delivery for the
                           IC-Index for the llth, l2th and l3th months prior to
                           the month of delivery of the Aircraft (l decimal).

         ICb      =        IC-Index for December 1998/January 1999/February 1999
                           averaged (=123.0).

         In determining the Revised Base Price at delivery of the Aircraft, each
         quotient will be calculated to the nearest ten thousandth (4 decimals).
         If the next succeeding place is five (5) or more, the preceding decimal
         place will be raised to the next higher figure. The final factor will
         be rounded to the nearest ten thousandth (4 decimals). After final
         computation, Pn will be rounded to the next whole number (0.5 or more
         rounded to l).

                                                                       Exh. D-2

<PAGE>

5.       GENERAL PROVISIONS

5.1      SUBSTITUTION OF INDEXES

         In the event that:

         (i)      the U.S. Department of Labor substantially revises the
                  methodology of calculation of any of the indexes referred to
                  hereabove, or

         (ii)     the U.S. Department of Labor discontinues, either temporarily
                  or permanently, any of the indexes referred to hereabove, or

         (iii)    the data samples used to calculate any of the indexes referred
                  to hereabove are substantially changed,

         AVSA will select a substitute index.

         Such substitute index will reflect as closely as possible the actual
         variations of the wages or of the material costs, as the case may be,
         used in the calculation of the original index.

         As a result of this selection of a substitute index, AVSA will make an
         appropriate adjustment to its price revision formula, allowing to
         combine the successive utilization of the original index and of the
         substitute index.

5.2      FINAL INDEX VALUES

         The Revised Base Price at the date of Aircraft delivery will be final
         and will not be subject to further adjustments of any kind and for any
         reason to the applicable indexes as published at the date of Aircraft
         delivery.

                                                                       Exh. D-3

<PAGE>

                                                                  EXHIBIT E (GE)

                     GENERAL ELECTRIC PRICE REVISION FORMULA

l.       REFERENCE PRICE

         The Reference Price of the General Electric CF6-80E1-A3 Propulsion
         Systems is as quoted in Subclause 4.1.2.1 of the Agreement

         This Reference Price is valid for Aircraft delivered no later than
         December 31, 2008, and is subject to adjustment for changes in economic
         conditions as measured by data obtained from the US Department of
         Labor, Bureau of Labor Statistics, and in accordance with the
         provisions of Paragraphs 4 and 5 of this Exhibit E.

2.       REFERENCE PERIOD - REFERENCE COMPOSITE PRICE INDEX

         The above Reference Price has been established in accordance with
         economic conditions averaged for the 11th, 12th and 13th months prior
         to delivery (April 1998 theoretical delivery conditions), as defined by
         General Electric by the Reference Composite Price Index of 151.09.

3.       REFERENCE INDEXES

         LABOR INDEX: "Aircraft Engines and Engine Parts," Standard Industrial
         Classification 3724--Average hourly earnings (hereinafter referred to
         as "HE SIC 3724") published by the US Department of Labor, Bureau of
         Labor Statistics, in "Employment and Earnings," (Table B-15: Average
         hours and earnings of production or nonsupervisory workers on private
         nonfarm payrolls by detailed industry) or such other names that may be
         from time to time used for the publication title and/or table.

         MATERIAL INDEX: "Industrial Commodities" (hereinafter referred to as
         "IC-Index"), published monthly by the US Department of Labor, Bureau of
         Labor Statistics, in "PPI Detailed Report" (Table 6: Producer prices
         indexes and percent changes for commodity groupings and individual
         items, not seasonally adjusted) or such other names that may be from
         time to time used for the publication title and/or table. (Base year
         1982 = 100).

                                                                  Exh. E. (GE)-1

<PAGE>

4.       REVISION FORMULA

         Pn       =        Pb  x  CPIn/151.09

         Where

         Pn       =        Revised Reference Price the Propulsion Systems at
                           delivery of the Aircraft.

         Pb       =        Reference Price as defined in Paragraph 1 of this
                           Exhibit E.

         CPIn     =        Composite Price Index applicable for the month of
                           delivery of the Aircraft.

                           Said Composite Price Index is composed as follows:

                           CPIn = 0.65 x HEn + 0.35 x ICn

         Where

         HEn      =        The arithmetic average of the HE SIC 3724 Index
                           available at the delivery date of the Aircraft for
                           the 11th, 12th and 13th months prior to the month of
                           delivery of the Aircraft each of which is divided by
                           11.16 and multiplied by 100.

         ICn      =        The arithmetic average of the IC-Index available at
                           the delivery date of the Aircraft for the 11th, 12th
                           and 13th months prior to the month of delivery of the
                           Aircraft.

         In each computation, if the next succeeding place is five (5) or more,
         the preceding decimal place will be raised to the next higher figure.

         The division of HE SIC 3724 Index by 11.16 as described in HEn above
         will be rounded to the nearest third decimal place. The HE SIC 3724
         Index average (HEn) and the IC-Index average (ICn) will be rounded to
         the nearest second decimal place.

         Each product (0.65xHEn and 0.35xICn) will be rounded to the nearest
         fourth decimal place.

         CPIn will be rounded to the nearest second decimal place.

                                                                  Exh. E(GE)-2

<PAGE>

         The final factor (CPIn/151.09) will be rounded to the nearest third
         decimal place.

         After final computation, Pn will be rounded to the nearest whole
         number.

5.       GENERAL PROVISIONS

5.1      The Revised Reference Price at delivery of the Aircraft will be the
         final price and will not be subject to further adjustments in the
         indexes.

5.2      If the US Department of Labor substantially revises the methodology of
         calculation of the published indexes "Standard Industrial
         Classification 3724" or "Industrial Commodities" or discontinues either
         of these indexes, AVSA will reflect the substitute for the revised or
         discontinued index selected by General Electric, such substitute index
         to lead in application to the same adjustment result, insofar as
         possible, as would have been achieved by continuing the use of the
         original index as it may have fluctuated had it not been revised or
         discontinued.

         Appropriate revision of the formula will be made to accomplish this
         result.

5.4      Should the above escalation provisions become null and void by action
         of the US Government, the Reference Price will be adjusted to reflect
         increases in the cost of labor and material which have occurred from
         the period represented by the applicable Reference Price Indexes to the
         twelfth (12) month prior to the scheduled delivery month of the
         Aircraft.

5.5      Should the ratio CPIn/151.09 be lower than 1.000, then Pn will be equal
         to Pb.

                                                                  Exh. E(GE)-3

<PAGE>

                                                                  EXHIBIT E (PW)

                     PRATT & WHITNEY PRICE REVISION FORMULA

1.       REFERENCE PRICE

         The Reference Price of the Pratt & Whitney PW 4168A Propulsion Systems
         is as quoted in Subclause 4.1.2.2 of the Agreement.

         This Reference Price is subject to adjustment for changes in economic
         conditions as measured by data obtained from the US Department of
         Labor, Bureau of Labor Statistics, and in accordance with the
         provisions of Paragraphs 4 and 5 of this Exhibit E.

2.       REFERENCE PERIOD

         The above Reference Price has been established in accordance with the
         economic conditions prevailing in December 1998, as defined, according
         to Pratt & Whitney, by the HEb and ICb index values indicated in
         Paragraph 4 of this Exhibit E.

3.       REFERENCE INDEXES

         LABOR INDEX: "Aircraft Engines and Engine Parts," Standard Industrial
         Classification 3724--Average hourly earnings (hereinafter referred to
         as "HE SIC 3724"), published by the US Department of Labor, Bureau of
         Labor Statistics, in "Employment and Earnings," (Table B-15: Average
         hours and earnings of production or nonsupervisory workers on private
         nonfarm payrolls by detailed industry) or such other names that may be
         from time to time used for the publication title and/or table.

         MATERIAL INDEX: "Industrial Commodities" (hereinafter referred to as
         "IC-Index"), published monthly by the US Department of Labor, Bureau of
         Labor Statistics, in "PPI Detailed Report" (Table 6: Producer prices
         indexes and percent changes for commodity groupings and individual
         items, not seasonally adjusted) or such other names that may be from
         time to time used for the publication title and/or table. (Base year
         1982 = 100).

                                                                    Exh. E(PW)-1
<PAGE>

4.       REVISION FORMULA

         Pn       =        Pb x [0.65(HEn/HEb) + 0.35(ICn/ICb)]

         Where

         Pn       =        Revised Reference Price of the Propulsion Systems at
                           delivery of the Aircraft

         Pb       =        Reference Price at economic conditions December 1998

         HEn      =        HE SIC 3724 for the sixth month prior to the month of
                           delivery of the Aircraft

         HEb      =        HE SIC 3724 for December 1998 (= 19.33)

         ICn      =        IC-Index for the sixth month prior to the month of
                           delivery of the Aircraft

         ICb      =        IC-Index for December 1998 (= 123.3)

         In each computation, if the next succeeding place is five (5) or more
         the preceding decimal place will be raised to the next higher figure.
         In determining the Revised Reference Price, each quotient will be
         calculated to the nearest ten thousandth (4 decimals). The final factor
         will be rounded to the nearest ten-thousandth (4 decimals).

         After final computation, Pn will be rounded to the next whole number.

5.       GENERAL PROVISIONS

5.1      The Revised Reference Price at delivery of the Aircraft will be the
         final price and will not be subject to further adjustments in the
         indexes.

5.2      The Revised Reference Price at delivery of the Aircraft will in no
         event be less than the Reference Price defined in Paragraph 1 of this
         Exhibit E.

5.3      If no final index value is available for any of the applicable months,
         the published preliminary figures will be the basis on which the
         Revised Reference Price will be computed.

                                                                    Exh. E(PW)-2
<PAGE>

5.4      If the US Department of Labor substantially revises the methodology of
         calculation of the indexes referred to in this Exhibit E or
         discontinues any of these indexes, AVSA will, reflect the substitute
         for the revised or discontinued index selected by Pratt & Whitney, such
         substitute index to lead in application to the same adjustment result,
         insofar as possible, as would have been achieved by continuing the use
         of the original index as it may have fluctuated had it not been revised
         or discontinued.

         Appropriate revision of the formula will be made to accomplish this
         result.

5.5      Should the above escalation provisions become null and void by action
         of the US Government, the Reference Price will be adjusted to reflect
         increases in the cost of labor and material, which have occurred from
         the period represented by the applicable Reference Price Indexes to the
         sixth month prior to the scheduled delivery of the Aircraft.

                                                                    Exh. E(PW)-3
<PAGE>

                                                                  EXHIBIT E (RR)

                       ROLLS ROYCE PRICE REVISION FORMULA

1.       REFERENCE PRICE

         The Reference Price of the Rolls Royce RB 211 Trent 772 Propulsion
         Systems is as quoted in Subclause 4.1.2.3 of the Agreement.

         This Reference Price is subject to adjustment for changes in economic
         conditions as measured by data obtained from the US Department of
         Labor, Bureau of Labor Statistics, and in accordance with the
         provisions of Paragraphs 4 and 5 of this Exhibit E.

2.       REFERENCE PERIOD - REFERENCE COMPOSITE PRICE INDEX

         The above Reference Price has been established in accordance with the
         averaged economic conditions prevailing in December 1998, January 1999
         and February 1999 (theoretical delivery conditions of January 2000), as
         defined, according to Rolls Royce, by the HEb, MMPb and EPb index
         values indicated in Paragraph 4 of this Exhibit E.

3.       REFERENCE INDEXES

         LABOR INDEX: "Aircraft Engines and Engine Parts," Standard Industrial
         Classification 3724--Average hourly earnings (hereinafter referred to
         as "HE SIC 3724"), published by the US Department of Labor, Bureau of
         Labor Statistics, in "Employment and Earnings," (Table B-15: Average
         hours and earnings of production or nonsupervisory workers on private
         nonfarm payrolls by detailed industry) or such other names that may be
         from time to time used for the publication title and/or table.

         MATERIAL INDEX: "Metals and Metal Products" Code l0 (hereinafter
         referred to as "MMP-Index"), published monthly by the US Department of
         Labor, Bureau of Labor Statistics, in "PPI Detailed Report" (Table 6:
         Producer prices indexes and percent changes for commodity groupings and
         individual items, not seasonally adjusted) or such other names that may
         be from time to time used for the publication title and/or table. (Base
         year 1982 = 100).

         ENERGY INDEX: "Fuels and Related Products and Power" Code 5
         (hereinafter referred to as "EP-Index"), published monthly by the US
         Department of Labor, Bureau of Labor Statistics, in "PPI Detailed
         Report" (Table 6: Producer prices indexes and percent changes for
         commodity groupings and individual items, not seasonally adjusted) or
         such other names that may be from time to time used for the publication
         title and/or table.
         (Base year 1982 = 100).

                                                                    Exh. E(RR)-1
<PAGE>

4.       REVISION FORMULA

         Pn       =        (Pb + F) x (0.60 x HEn/HEb + 0.30 x MMPn/MMPb + 0.10
                           x EPn/EPb)

         Where

         Pn       =        Revised Reference Price of the Propulsion Systems at
                           delivery of the Aircraft

         Pb       =        Reference Price at averaged economic conditions
                           December 1998/January 1999/February 1999

         F        =        (0.005 x N x Pb) Where N = the calendar year of
                           delivery of the Aircraft minus 2000

         HEn      =        HE SIC 3724 for the 13th, 12th and 11th months
                           averaged prior to the month of delivery of the
                           Aircraft (rounded to the third decimal place).

         HEb      =        HE SIC 3724 for December 1998/January 1999/February
                           1999 averaged (= 19.267)

         MMPn     =        MMP-Index for the 13th, 12th and 11th months
                           averaged prior to the month of delivery of the
                           Aircraft (rounded to the second decimal place).

         MMPb     =        MMP-Index for December 1998/January 1999/February
                           1999 averaged (= 123.63)

         EPn      =        EP-Index for the 13th, 12th and 11th months
                           averaged prior to the month of delivery of the
                           Aircraft (rounded to the second decimal place).

         EPb      =        EP-Index for averaged December 1998/January
                           1999/February 1999 (= 69.70)

         Each quotient ((0.60 HEn)/HEb, (0.30 MMPn)/MMPb, (0.10 EPn)/EPb) will
         be calculated to the nearest ten thousandth (4 decimals). If the next
         succeeding decimal place is five (5) or more, the preceding decimal
         place will be raised to the next higher figure.

         After final computation, Pn will be rounded to the next whole number.

                                                                    Exh. E(RR)-2
<PAGE>

5.       GENERAL PROVISIONS

5.1      The Revised Reference Price at delivery of the Aircraft will be the
         final price and will not be subject to further adjustments in the
         indexes.

5.2      If the US Department of Labor substantially revises the methodology of
         calculation of the indexes referred to in this Exhibit E or
         discontinues any of these indexes, AVSA will, reflect the substitute
         for the revised or discontinued index selected by Rolls Royce, such
         substitute index to lead in application to the same adjustment result,
         insofar as possible, as would have been achieved by continuing the use
         of the original index as it may have fluctuated had it not been revised
         or discontinued.

         Appropriate revision of the formula will be made to accomplish this
         result.

5.3      Should the above escalation provisions become null and void by action
         of the US Government, the Reference Price will be adjusted to reflect
         increases in the cost of labor, material and fuel which have occurred
         from the period represented by the applicable Reference Price Indexes
         to the twelfth month prior to the scheduled month of delivery of the
         Aircraft.

                                                                    Exh. E(RR)-3
<PAGE>

                                                                       EXHIBIT F

                            CERTIFICATE OF ACCEPTANCE
                                FOR A330 AIRCRAFT

In accordance with the terms of that certain A330 Purchase Agreement dated as of
____________, between Northwest Airlines, Inc., ("NORTHWEST") and AVSA, S.A.R.L.
("AVSA") (the "Purchase Agreement"), the acceptance tests relating to the Airbus
A330 aircraft, Manufacturer's Serial Number: _____, U.S. Registration Number:
______ with two (2) [Pratt & Whitney PW 4168A] [General Electric
CF6-80-E1A3][Rolls Royce Trent 772B] series propulsion systems installed
thereon, serial nos. ______ (position #1) and _______ (position #2) (the "A330
Aircraft"), have taken place at _______________ on the ____ day of
_____________, ____.

In view of said tests having been carried out with satisfactory results,
NORTHWEST hereby approves the A330 Aircraft as being in conformity with the
provisions of the Purchase Agreement.

Said acceptance does not impair the rights of NORTHWEST that may be derived from
the warranties relating to the A330 Aircraft set forth in the Purchase
Agreement.

NORTHWEST specifically recognizes that it has waived any right it may have at
law or otherwise to revoke this acceptance of the A330 Aircraft.

                                   RECEIPT AND ACCEPTANCE OF THE ABOVE-DESCRIBED
                                   A330 AIRCRAFT ACKNOWLEDGED

                                   NORTHWEST AIRLINES, INC.

                                   By: /s/ Gregory A. May
                                       _____________________________________

                                   Its: Vice President Aircraft Transactions
                                        ____________________________________

                                                                        Exh. F-1
<PAGE>

                                                                       EXHIBIT G

                           SELLER SERVICE LIFE POLICY

1.            The Items of primary and auxiliary structure described hereunder
              are covered by the Service Life Policy described in Subclause 12.2
              of the Agreement.

2.            WINGS - CENTER AND OUTER WING BOX

2.1           SPARS

2.2           RIBS INSIDE THE WING BOX

2.3           UPPER AND LOWER PANELS OF THE WING BOX

2.4           FITTINGS

2.4.1         Attachment fittings for the flap structure

2.4.2         Attachment fittings for the engine pylons

2.4.3         Attachment fittings for the main landing gear

2.4.4         Attachment fittings for the center wing box

2.5           AUXILIARY SUPPORT STRUCTURE

2.5.1         FOR THE SLATS:

2.5.1.1       Ribs supporting the track rollers on wing box structure

2.5.1.2       Ribs supporting the actuators on wing box structure

2.5.2         FOR THE AILERONS:

2.5.2.1       Hinge brackets and ribs on wing box rear spar or shroud box

2.5.2.2       Actuator fittings on wing box rear spar or shroud box

2.5.3         FOR AIRBRAKES, SPOILERS, LIFT DUMPERS:

2.5.3.1       Hinge brackets and ribs on wing box rear spar or shroud box

                                                                       Exh. G-1
<PAGE>

2.5.3.2       Actuator fittings on wing box rear spar or shroud box

3.            FUSELAGE

3.1           FUSELAGE STRUCTURE

3.1.1         Fore and aft bulkheads

3.1.2         Pressurized floors and bulkheads surrounding the main and nose
              gear wheel well and center wing box

3.1.3         Skins with doublers, stringers and frames from the forward
              pressure bulkheads to the frame supporting the rear attachment of
              horizontal stabilizer

3.1.4         Window and windscreen attachment structure but excluding
              transparencies

3.1.5         Passenger and cargo doors internal structure

3.1.6         Sills excluding scuff plates and upper beams surrounding passenger
              and cargo door apertures

3.1.7         Cockpit floor structure and passenger cabin floor beams excluding
              floor panels and seat rails

3.1.8         Keel beam structure

3.2           FITTINGS

3.2.1         Landing gear attachment fittings

3.2.2         Support structure and attachment fittings for the vertical and
              horizontal stabilizers

                                                                       Exh. G-2
<PAGE>

4.            STABILIZERS

4.1           HORIZONTAL STABILIZER MAIN STRUCTURAL BOX

4.1.1         Spars

4.1.2         Ribs

4.1.3         Upper and lower skins and stringers

4.1.4         Attachment fittings to fuselage and trim screw actuator

4.1.5         Elevator support structure

4.1.5.1       Hinge bracket

4.1.5.2       Servocontrol attachment brackets

4.2           VERTICAL STABILIZER MAIN STRUCTURAL BOX

4.2.1         Spars

4.2.2         Ribs

4.2.3         Skins and stringers

4.2.4         Attachment fittings to fuselage

4.2.5         Rudder support structure

4.2.5.1       Hinge brackets

4.2.5.2       Servocontrol attachment brackets

5.            Bearing and roller assemblies, bearing surfaces, bushings, bolts,
              rivets, access and inspection doors, including manhole doors,
              latching mechanisms, all system components, commercial interior
              parts, insulation and related installation and connecting devices
              are excluded from this Seller Service Life Policy.

                                                                       Exh. G-3
<PAGE>

                                                                       EXHIBIT H

                                  BILL OF SALE
                                FOR A330 AIRCRAFT

Know all persons by these presents that AVSA, S.A.R.L. ("AVSA"), a SOCIETE A
RESPONSABILITE LIMITEE organized and existing under the laws of the Republic of
France,whose address is 2 rond-point Maurice Bellonte, 31700 Blagnac, FRANCE, is
the owner of the title to the following airframe (the "AIRFRAME"), the attached
engines as specified (the "ENGINES") and all appliances, components, parts,
instruments, accessories, furnishings, modules and other equipment of any
nature, excluding buyer furnished equipment, incorporated therein, installed
thereon or attached thereto on the date hereof (the "PARTS"):

MANUFACTURER OF AIRFRAME:           MANUFACTURER OF ENGINES:
------------------------            ------------------------

AIRBUS INDUSTRIE G.I.E.             [GENERAL ELECTRIC]
                                    [PRATT & WHITNEY]
                                    [ROLLS ROYCE]

MODEL:                              MODEL:
-----                               -----

A330-300                            [CF6-80-E1A3] [PW 4168A] [TRENT 772B]

                                    SERIAL NUMBERS:
MANUFACTURER'S                      --------------
SERIAL NUMBER:    [        ]        LH :  [        ]
-------------                       RH :  [        ]

REGISTRATION NO:  [        ]
---------------

The Airframe, Engines and Parts are hereafter together referred to as the
aircraft (the "A318 AIRCRAFT").

AVSA does this ___ day of _______________ sell, transfer and deliver all of
its above described rights, title and interest to the A330 Aircraft to the
following company forever, said A330 Aircraft to be the property thereof:

NORTHWEST AIRLINES, INC. (the "Buyer")

AVSA hereby warrants to the Buyer that it has on the date hereof good and
lawful right to sell, deliver and transfer title to the A330 Aircraft to the
Buyer and that there is hereby conveyed to the Buyer on the date hereof good,
legal and valid title to the A330 Aircraft, free and clear of all liens,
claims, charges, encumbrances and rights of others.

                                                                     Exh. H-1

<PAGE>

IN WITNESS WHEREOF, the undersigned has caused this instrument to be executed by
its duly authorized representative this ______ day of [       ]

AVSA, S.A.R.L.

By:   Francois Bensier

Title:   AVSA Chief Executive Officer

Signature:  /s/ Francois Bensier

                                                                     Exh. H-2

<PAGE>

                             LETTER AGREEMENT NO. 1

                                                         As of December 21, 2000

Northwest Airlines, Inc.
2700 Lone Oak Parkway
Eagan, Minnesota 55121

Re:  PURCHASE INCENTIVES

Dear Ladies and Gentlemen:

         Northwest Airlines, Inc. ("Northwest"), and AVSA, S.A.R.L. ("AVSA"),
have entered into an Airbus A330 Purchase Agreement, dated as of even date
herewith (the "Agreement"), which covers, among other things, the sale by
AVSA and the purchase by Northwest of certain Aircraft, under the terms and
conditions set forth in said Agreement. The parties hereto have agreed to set
forth in this Letter Agreement No. 1 (the "Letter Agreement") certain
additional terms and conditions regarding the sale of the Aircraft provided
for in the Agreement. Capitalized terms used herein and not otherwise defined
in this Letter Agreement shall have the meanings assigned thereto in the
Agreement. The terms "herein," "hereof" and "hereunder" and words of similar
import refer to this Letter Agreement.

         The parties hereto agree that this Letter Agreement shall constitute
an integral, nonseverable part of said Agreement, that the provisions of said
Agreement are hereby incorporated herein by reference, and that this Letter
Agreement shall be governed by the provisions of said Agreement, except that
if the Agreement and this Letter Agreement have specific provisions that are
inconsistent, the specific provisions contained in this Letter Agreement
shall govern.

1.           AVSA CREDIT MEMORANDA FOR ALL AIRCRAFT

1.1          AVSA will provide to Northwest upon delivery of each Aircraft the
             credit memoranda listed below in Subparagraphs 1.1(i) through
             1.1(v):

                  (i)      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
                           WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
                           TO A REQUEST FOR CONFIDENTIAL TREATMENT)

                                                                          LA1-1

<PAGE>

                  (ii)     (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
                           WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
                           TO A REQUEST FOR CONFIDENTIAL TREATMENT)

                  (iii)    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
                           WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
                           TO A REQUEST FOR CONFIDENTIAL TREATMENT)

                  (iv)     (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
                           WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
                           TO A REQUEST FOR CONFIDENTIAL TREATMENT)

                  (v)      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
                           WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
                           TO A REQUEST FOR CONFIDENTIAL TREATMENT)

                  (vi)     (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
                           WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
                           TO A REQUEST FOR CONFIDENTIAL TREATMENT)

                  Hereinafter, the (CONFIDENTIAL MATERIAL OMITTED AND FILED
                  SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
                  PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)are
                  collectively referred to as the "AVSA Credit Memoranda."

1.2               The AVSA Credit Memoranda have been established in accordance
                  with January 2000 delivery conditions (dollars) and will be
                  revised to the actual delivery date of each Aircraft in
                  accordance with the Airframe Price Revision Formula set forth
                  in Exhibit D to the Agreement.

1.3               Each AVSA Credit Memorandum will be applied by AVSA against
                  the Final Contract Price of each Aircraft.

2.                CREDIT MEMORANDA FOR FIRM AIRCRAFT

2.1               AVSA will provide to Northwest upon delivery of each of the
                  twenty-four (24) Firm Aircraft the credit memoranda listed
                  below in Subparagraphs 1.1(i) through 1.1(ii):

                                                                          LA1-2

<PAGE>

                  (i)      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
                           WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
                           TO A REQUEST FOR CONFIDENTIAL TREATMENT)

                  (ii)     (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
                           WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
                           TO A REQUEST FOR CONFIDENTIAL TREATMENT)

2.2               The (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH
                  THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST
                  FOR CONFIDENTIAL TREATMENT) has been established in accordance
                  with January 2000 delivery conditions (dollars) and will be
                  revised to the actual delivery date of each Aircraft in
                  accordance with the Airframe Price Revision Formula set forth
                  in Exhibit D to the Agreement. (CONFIDENTIAL MATERIAL OMITTED
                  AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
                  COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)

2.3               Each (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH
                  THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST
                  FOR CONFIDENTIAL TREATMENT) and (CONFIDENTIAL MATERIAL OMITTED
                  AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
                  COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)
                  will be applied by AVSA against the Final Contract Price of
                  each Firm Aircraft.

3.                CREDITS AS PRICE ADJUSTMENT

                  AVSA and Northwest agree that credits offered to Northwest
                  pursuant to the provisions of this Letter Agreement are
                  intended to constitute an adjustment to the purchase price of
                  the Aircraft associated thereto. Nothing in this Letter
                  Agreement should be read to provide an inference as to the
                  characterization of credits found in clauses or paragraphs of
                  the Agreement other than this Letter Agreement.

4.                ASSIGNMENT

                  Notwithstanding any other provision of this Letter Agreement
                  or of the

                                                                          LA1-3

<PAGE>

                  Agreement, this Letter Agreement and the rights and
                  obligations of Northwest hereunder shall not be assigned or
                  transferred in any manner without the prior written consent of
                  AVSA, and any attempted assignment or transfer in
                  contravention of the provisions of this Paragraph 4 shall be
                  void and of no force or effect.

                  If the foregoing correctly sets forth our understanding,
                  please execute the original and one (1) copy hereof in the
                  space provided below and return both copies to AVSA.

                                              Very truly yours,

                                              AVSA, S.A.R.L.

                                              By:  /s/ Francois Bensier
                                                   _____________________________

                                              Its: AVSA Chief Executive Officer
                                                   _____________________________

Accepted and Agreed

NORTHWEST AIRLINES, INC.

By:  /s/ Gregory A. May
     ____________________________________

Its: Vice President Aircraft Transactions
     ____________________________________

                                                                          LA1-4

<PAGE>

                             LETTER AGREEMENT NO. 2

                                                         As of December 21, 2000

Northwest Airlines, Inc.
2700 Lone Oak Parkway
Eagan, Minnesota 55121

Re:  OPTIONS AND FLEXIBILITY

Dear Ladies and Gentlemen:

         Northwest Airlines, Inc. ("Northwest"), and AVSA, S.A.R.L. ("AVSA"),
have entered into an Airbus A330 Purchase Agreement, dated as of even date
herewith (the "Agreement"), which covers, among other things, the sale by AVSA
and the purchase by Northwest of certain Aircraft, under the terms and
conditions set forth in said Agreement. The parties hereto have agreed to set
forth in this Letter Agreement No. 2 (the "Letter Agreement") certain additional
terms and conditions regarding the sale of the Aircraft provided for in the
Agreement. Capitalized terms used herein and not otherwise defined in this
Letter Agreement will have the meanings assigned thereto in the Agreement. The
terms "herein," "hereof" and "hereunder" and words of similar import refer to
this Letter Agreement.

         The parties hereto agree that this Letter Agreement will constitute an
integral, nonseverable part of said Agreement, that the provisions of said
Agreement are hereby incorporated herein by reference, and that this Letter
Agreement will be governed by the provisions of said Agreement, except that if
the Agreement and this Letter Agreement have specific provisions that are
inconsistent, the specific provisions contained in this Letter Agreement will
govern.

1.       DELIVERY SCHEDULE

         Unless otherwise specifically requested by Northwest, (CONFIDENTIAL
         MATERIAL OMMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT).

                                                                           LA2-1
<PAGE>

2.       OPTION AIRCRAFT

2.1      DELIVERY SCHEDULE

         The Option Aircraft will be scheduled for delivery at the rate of two
         per quarter starting in the calendar quarter immediately after the
         month of delivery of the last Firm Aircraft.

2.2      OPTION EXERCISE

         Northwest may exercise its option to purchase each Option Aircraft
         scheduled for delivery (CONFIDENTIAL MATERIAL OMMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT) by (i) giving written notice to
         AVSA (the "Option Exercise Notice") no later than(CONFIDENTIAL MATERIAL
         OMMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)months
         prior to the (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH
         THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT) and (ii) concurrently with such notice, paying
         AVSA any Predelivery Payments due accordance with Letter Agreement No.
         8 to the Agreement. On AVSA's receipt of the Option Exercise Notice and
         receipt of any Predelivery Payments due in respect of an Option
         Aircraft, such Option Aircraft will be converted to a firm order and
         will be deemed an "Aircraft" for all purposes of the Agreement.

2.3      (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)

         In respect of each Option Aircraft refused by Northwest, Northwest and
         AVSA will have no more rights or obligations.

3.       PURCHASE  RIGHT AIRCRAFT

3.1       PURCHASE RIGHT AIRCRAFT EXERCISE

3.1.1    In addition to the Option Aircraft AVSA grants Northwest the right to
         purchase up to (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY
         WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)additional Aircraft (the "Purchase Right
         Aircraft"). On Northwest's written request, AVSA will, subject to
         availability and AVSA's and the Manufacturer's industrial and
         commercial constraints, offer Northwest all Available Delivery
         Positions within the timeframe requested by Northwest, for a Purchase
         Right Aircraft. Northwest

                                                                           LA2-2
<PAGE>

         will accept any of such Available Delivery Positions by paying all
         Predelivery Payments(CONFIDENTIAL MATERIAL OMMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
         A REQUEST FOR CONFIDENTIAL TREATMENT). Payment will be due within
         (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT) Working Days of AVSA's advice regarding a
         delivery position and will constitute Northwest's exercise of its
         right to convert a Purchase Right Aircraft into a firmly ordered
         Aircraft (a "Purchase Right Aircraft Exercise").

3.1.2    For the purpose of this Paragraph 3, the term "Available Delivery
         Position(s)" in the singular or plural will mean any delivery
         positions(CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT), it being understood that such Available
         Delivery Positions will be subject to (CONFIDENTIAL MATERIAL OMMITTED
         AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
         PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)Available Delivery
         Positions pursuant to the provisions of this Letter Agreement.

3.1.3    In respect of each Purchase Right Aircraft for which AVSA has offered
         Northwest Available Delivery Positions and Northwest fails to pay the
         applicable Predelivery Payments, Northwest and AVSA will have no more
         rights or obligations with respect to the offer of such Available
         Delivery Positions in response to Northwest's current request.

3.2      APPLICABLE TERMS

         On Purchase Right Aircraft Exercise, (i) the price terms that apply to
         Option Aircraft will be extended to the applicable Purchase Right
         Aircraft, so long as such Purchase Right Aircraft is scheduled for
         delivery to Northwest before the end of(CONFIDENTIAL MATERIAL OMMITTED
         AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
         PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT), (ii) all other terms
         and conditions in the Agreement that apply to Aircraft will apply to
         such Purchase Right Aircraft, and (iii) such Purchase Right Aircraft
         will be deemed to be an Aircraft.

3.3      PURCHASE RIGHT AIRCRAFT AS A340 AIRCRAFT

         In the event that Northwest desires an A340-500 or A340-600 aircraft as
         a Purchase Right Aircraft, it will so inform AVSA and AVSA and
         Northwest willcomply with Subparagraphs 3.1 and 3.2 MUTATIS MUTANDIS,
         subject to agreement between AVSA and Northwest on the terms and
         conditions applicable

                                                                           LA2-3
<PAGE>

         to the Converted Firm A340-500 Aircraft or Converted Firm A340-600
         Aircraft defined below in Subparagraph 4.3.

4.       CONVERSION

4.1      CONVERSION RIGHTS TO A330-200

         AVSA grants Northwest the right to convert each Firm Aircraft starting
         with the (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)Firm Aircraft scheduled for delivery, each
         Option Aircraft that has become an A330-300 model Aircraft as the
         result of an option exercise, and each Purchase Right Aircraft that has
         been converted to an Aircraft in accordance with Paragraph 3 above into
         a firmly ordered A330-200 aircraft (the "Converted Firm A330-200
         Aircraft"). Northwest may exercise this right by giving written notice
         to AVSA no later than (CONFIDENTIAL MATERIAL OMMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)months prior to the first day of the
         month in which the Aircraft to be converted is scheduled for delivery
         (the "A330-200 Conversion Right"). The delivery position for a
         Converted Firm A330-200 Aircraft will be(CONFIDENTIAL MATERIAL OMMITTED
         AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
         PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)

4.2      CONVERSION RIGHTS TO A330-500

         AVSA grants Northwest the right to convert each Option Aircraft that
         has become an A330-300 model Aircraft as the result of an option
         exercise and each Purchase Right Aircraft that has been converted to an
         Aircraft in accordance with Paragraph 3 above into a firmly ordered
         A330-500 aircraft (the "Converted Firm A330-500 Aircraft"). Northwest
         may exercise this right (the "A330-500 Conversion Right") subject to
         the following conditions:

         (i)      The A330-500 program having been launched industrially by the
                  Manufacturer at the time the A330-500 Conversion Right is
                  exercised.

         (ii)     The A330-500 aircraft having been available for delivery by
                  the Manufacturer for (CONFIDENTIAL MATERIAL OMMITTED AND FILED
                  SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
                  PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)months before
                  the Converted Firm A330-500 Aircraft is scheduled for
                  delivery.

                                                                           LA2-4
<PAGE>

         (iii)    Northwest's giving AVSA notice no fewer than (CONFIDENTIAL
                  MATERIAL OMMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
                  EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                  TREATMENT)months prior to the first day of the month in which
                  the Aircraft to be converted is scheduled for delivery, except
                  as set forth below in Subparagraph 4.2(iv).

         (iv)     In respect of Aircraft scheduled to be delivered within the
                  first year after delivery of the first A330-500 to any
                  customer, Northwest's giving AVSA notice no fewer than
                  (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)months prior to the first day of the
                  month in which the Aircraft to be converted is scheduled for
                  delivery.

         Subject to the conditions in this Subparagraph 4.2 (i) through (iv),
         AVSA will(CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT), subject further to AVSA's and the
         Manufacturer's industrial and commercial constraints, including
         industrial sequence of engine type certification.

4.3      CONVERSION RIGHTS TO A340-500 OR A340-600

         AVSA grants Northwest the right to convert (the "A340 Conversion
         Rights") each Option Aircraft and each Purchase Right Aircraft that has
         been converted to an Aircraft in accordance with Paragraph 3 above (an
         "Exercised Purchase Right Aircraft") into an A340-500 Firm Aircraft (a
         "Converted Firm A340-500 Aircraft") or an A340-600 Firm Aircraft (a
         "Converted Firm A340-600 Aircraft") under the following terms:

         (i)      Northwest's exercising A340 Conversion Rights for Option
                  Aircraft scheduled for delivery(CONFIDENTIAL MATERIAL OMMITTED
                  AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
                  COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)by
                  giving written notice to AVSA concurrent with exercise of its
                  option to purchase an Option Aircraft in accordance with
                  Subparagraph 2.2 above. The scheduled delivery date of the
                  Converted Firm A340-500 Aircraft or Converted Firm A340-600
                  Aircraft will be(CONFIDENTIAL MATERIAL OMMITTED AND FILED
                  SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
                  PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT), subject to
                  AVSA's and the Manufacturer's industrial and commercial
                  constraints.

                                                                           LA2-5
<PAGE>

                  Northwest's exercise of an A340 Conversion Right for an Option
                  Aircraft will constitute exercise of the option to firmly
                  order this Option Aircraft, in accordance with Subparagraph
                  2.2 above

         (ii)     Northwest's giving written notice to AVSA no later than
                  (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT) months prior to the scheduled delivery
                  month of the Exercised Purchase Right Aircraft of its
                  intention to exercise an A340 Conversion Right and AVSA's
                  receiving any Predelivery Payments due in respect of a
                  Converted Firm A340-500 Aircraft or Converted Firm A340-600
                  Aircraft(CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY
                  WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
                  REQUEST FOR CONFIDENTIAL TREATMENT).

         (iii)    Each A340 Conversion Right being subject to the agreement of
                  the manufacturer of the propulsion systems to be incorporated
                  as selected by Northwest. Northwest will indemnify AVSA for
                  any incremental costs imposed by the Propulsion Systems
                  manufacturer on AVSA, as the result of any contracts between
                  Northwest and the Propulsion Systems manufacturer, as a direct
                  result of this A340 Conversion Right.

         (iv)     Northwest's and AVSA's agreeing on the terms and conditions
                  applicable to the Converted Firm A340-500 Aircraft or
                  Converted Firm A340-600 Aircraft.

                                                                           LA2-6
<PAGE>

4.4      TERMS AND CONDITIONS OF A330 CONVERSION RIGHTS

         The A330-200 Conversion Right and the A330-500 Conversion Right will be
         referred to individually and collectively as an "A330 Conversion
         Right." All terms and conditions for Aircraft which have been the
         object of an A330 Conversion Right will remain the same as those terms
         and conditions applicable to the Aircraft before it was converted,
         except as follows:

4.4.1    Subclause 2.2 of the Agreement will be deleted in its entirety and
         replaced by the following:

         (i)      For Converted Firm A330-200 Aircraft

         QUOTE

         The Converted Firm A330-200 Aircraft will be manufactured in accordance
         with the A330-200 Standard Specification, Document No. G.000.02000,
         Issue 3, Revision 1, dated July 17, 1998 (the "Specification"). The
         Specification is annexed to Letter Agreement No. 2 as Exhibit 1 to
         Appendix A. The Specification may be further modified from time to time
         pursuant to the provisions of Clause 3 below.

         UNQUOTE

         (ii)     For Converted Firm A330-500 Aircraft

         QUOTE

         The Converted Firm A330-500 Aircraft will be manufactured in accordance
         with the A330-500 Standard Specification, Document No. TBD, Issue 1,
         dated TBD (the "Specification"). The Specification will include an MTOW
         of 228 metric tons and the enhanced cabin. The Specification may be
         further modified from time to time pursuant to the provisions of Clause
         3 below.

         UNQUOTE

4.4.2    Subclauses 4.1.1 and 4.1.2 of the Purchase Agreement will be deleted in
         their entirety and replaced by the following:

         (i)      For Converted Firm A330-200 Aircraft: Appendix A to this
                  Letter Agreement.

         (ii)     For Converted Firm A330-500 Aircraft: Appendix B to this
                  Letter Agreement.

                                                                           LA2-7
<PAGE>

4.4.3    Subclause 9.1 of the Agreement will be modified as appropriate.

4.4.4    Paragraphs 1 and 2 of Letter Agreement No. 1 to the Agreement will not
         apply. The pricing in Appendix A to this Letter Agreement will apply.

4.4.5    The(CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)to the Agreement will apply to Converted Firm
         A330-200 Aircraft. (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY
         WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT) for the A330-500 aircraft will be developed
         using the same agreed principles and will be of a similar level of
         aggressiveness as the A330-300 guarantees.

4.4.6    The dispatch reliability guarantees contained in Letter Agreement No. 4
         to the Agreement will apply to Converted Firm A330-200 Aircraft.
         Dispatch reliability guarantees for the A330-500 aircraft will be
         developed using the same agreed principles and will be of a similar
         level of aggressiveness as the A330-300 guarantees.

4.4.7    The performance guarantees contained in Letter Agreement No. 5 to the
         Agreement will be developed for Converted Firm A330-200 Aircraft and
         Converted Firm A330-500 Aircraft using the same agreed principles and
         will be of a similar level of aggressiveness as the A330-300
         guarantees.

4.4.8    The terms and conditions of Letter Agreement No. 8 to the Agreement
         will be modified to reflect the(CONFIDENTIAL MATERIAL OMMITTED AND
         FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
         TO A REQUEST FOR CONFIDENTIAL TREATMENT).

5.       (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT) RIGHTS

               Northwest will have the right to request, at any time, the
         (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT). AVSA will endeavor to satisfy Northwest's
         request consistent with (CONFIDENTIAL MATERIAL OMMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT). Should an (CONFIDENTIAL MATERIAL

                                                                           LA2-8
<PAGE>

         OMMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)be
         exercised, then Northwest will pay to AVSA within (CONFIDENTIAL
         MATERIAL OMMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)Working
         Days(CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT).

6.       (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT) RIGHTS

6.1      Starting with(CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH
         THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)

         (i)      (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         (ii)     (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         (iii)    (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         (iv)     (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         (v)      (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

                                                                           LA2-9
<PAGE>

6.2      (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)

6.3      (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)

7.       (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)

7.1      (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT

                  (i)      (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY
                           WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
                           TO A REQUEST FOR CONFIDENTIAL TREATMENT)

                  (ii)     (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY
                           WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
                           TO A REQUEST FOR CONFIDENTIAL TREATMENT)

                  (iii)    (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY
                           WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
                           TO A REQUEST FOR CONFIDENTIAL TREATMENT)

7.2      (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)

8.       (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)

         (i)      (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

                                                                          LA2-10
<PAGE>

         (ii)     (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         (iii)    (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

9.       IRREVOCABLE EXERCISE OF FLEXIBILITY RIGHTS

         The A330 Conversion Right, A340 Conversion Right,(CONFIDENTIAL MATERIAL
         OMMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) be
         referred to individually and collectively as a "Flexibility Right." A
         Firm Aircraft may benefit both from a (CONFIDENTIAL MATERIAL OMMITTED
         AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
         PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)and a(CONFIDENTIAL
         MATERIAL OMMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT), but
         otherwise no Aircraft may be the object of more than one Flexibility
         Right, except that an Aircraft which has benefited from the exercise of
         a (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT) may also be the subject of a subsequent A330
         Conversion Right or A340 Conversion Right, unless agreed otherwise
         between Northwest and AVSA.

10.      ASSIGNMENT

         Notwithstanding any other provision of this Letter Agreement or of the
         Agreement, this Letter Agreement and the rights and obligations of
         Northwest hereunder will not be assigned or transferred in any manner
         without the prior written consent of AVSA, and any attempted assignment
         or transfer in contravention of the provisions of this Paragraph 10
         will be void and of no force or effect.

         If the foregoing correctly sets forth our understanding, please execute
the original and one (1) copy hereof in the space provided below and return both
copies to AVSA.

                                                                          LA2-11
<PAGE>

                                              Very truly yours, AVSA,
                                              S.A.R.L.

                                              By:  /s/ Francois Bensier
                                                   _____________________________

                                              Its: AVSA Chief Executive Officer
                                                   _____________________________

Accepted and Agreed

NORTHWEST AIRLINES, INC.

By:  /s/ Gregory A. May
     ____________________________________

Its: Vice President Aircraft Transactions
     ____________________________________

                                                                          LA2-12

<PAGE>

                                                                   APPENDIX A TO
                                                          LETTER AGREEMENT NO. 2

1.       PRICES FOR CONVERTED FIRM A330-200 AIRCRAFT

1.1      BASE PRICE OF THE AIRFRAME

1.1.1    The Base Price of the Airframe of the Converted Firm A330-200 Aircraft
         will be the sum of the Base Prices set forth below in (i) and (ii):

         (i)      the Base Price of the Standard Airframe for the Converted Firm
                  A330-200 Aircraft, as defined in the A330-200 Standard
                  Specification set forth in Exhibit 1 hereto hereto (excluding
                  Buyer Furnished Equipment, Propulsion Systems and SCNs), at
                  delivery conditions prevailing in January 2000, which is:

                           US$(CONFIDENTIAL MATERIAL OMITTED AND FILED
                           SEPARATELY WITH THE SECURITIES AND EXCHANGE
                           COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                           TREATMENT)

                           (US dollars--(CONFIDENTIAL MATERIAL OMITTED AND FILED
                           SEPARATELY WITH THE SECURITIES AND EXCHANGE
                           COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                           TREATMENT)), and

         (ii)     the Base Price of SCNs covering options selected by Northwest
                  from Exhibit 2 hereto, as it may be supplemented, which, at
                  delivery conditions prevailing in January 2000, is estimated
                  at:

                           US$--(CONFIDENTIAL MATERIAL OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT)

                           (US dollars--(CONFIDENTIAL MATERIAL OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT)).

1.1.2    The Base Price of the Airframe of each Converted Firm A330-200 Aircraft
         will be revised to the actual delivery date of such Converted Firm
         A330-200 Aircraft in accordance with the Airframe Price Revision
         Formula set forth in Subclause 5.1 of the Agreement.

1.2      BASE PRICE OF THE PROPULSION SYSTEMS

NWA - A330 - PA
<PAGE>

                                                                   APPENDIX A TO
                                                          LETTER AGREEMENT NO. 2

         The Base Price of the Propulsion Systems is set forth in Subclause
         4.1.2 of the Agreement.

2.       PURCHASE INCENTIVES

2.1      AVSA will provide to Northwest upon delivery of each applicable
         Converted Firm A330-200 Aircraft the credit memoranda listed below in
         Subparagraphs 2.1(i) to 2.1(vi), inclusive.

         (i)      for all Converted Firm A330-200 Aircraft, (CONFIDENTIAL
                  MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
                  EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                  TREATMENT)

         (ii)     for all Converted Firm A330-200 Aircraft, (CONFIDENTIAL
                  MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
                  EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                  TREATMENT)

         (iii)    for all Converted Firm A330-200 Aircraft, (CONFIDENTIAL
                  MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
                  EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                  TREATMENT)

         (iv)     for all Converted Firm A330-200 Aircraft, (CONFIDENTIAL
                  MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
                  EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                  TREATMENT)

         (v)      for all Converted Firm A330-200 Aircraft, (CONFIDENTIAL
                  MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
                  EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                  TREATMENT)

         (vi)     for all Converted Firm A330-200 Aircraft, (CONFIDENTIAL
                  MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
                  EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                  TREATMENT)

         (vii)    for each Converted Firm A330-200 Aircraft converted from Firm
                  Aircraft, (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
                  WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
                  REQUEST FOR CONFIDENTIAL TREATMENT)

NWA - A330 - PA
<PAGE>

                                                                   APPENDIX A TO
                                                          LETTER AGREEMENT NO. 2

         (viii)   for each Converted Firm A330-200 Aircraft converted from Firm
                  Aircraft, (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
                  WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
                  REQUEST FOR CONFIDENTIAL TREATMENT)

         Hereinafter, the (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
         WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT) are collectively referred to as the "Converted
         Firm A330-200 Aircraft Credit Memoranda."

2.2      The Converted Firm A330-200 Aircraft Credit Memoranda have been
         established in accordance with January 2000 delivery conditions
         (dollars) and will be revised to the actual delivery date of each
         Converted Firm A330-200 Aircraft in accordance with the Airframe Price
         Revision Formula set forth in Exhibit D to the Agreement.

2.3      The Converted Firm A330-200 Aircraft Credit Memoranda will be applied
         by AVSA against the Final Contract Price of each Converted Firm
         A330-200 Aircraft.

3.       CREDITS AS PRICE ADJUSTMENT

         AVSA and Northwest agree that credits offered to Northwest pursuant to
         the provisions of this Letter Agreement are intended to constitute an
         adjustment to the purchase price of the Aircraft associated thereto.
         Nothing in this Letter Agreement should be read to provide an inference
         as to the characterization of credits found in clauses or paragraphs of
         the Agreement other than this Letter Agreement.

                                                                       EXHIBIT 1

                             STANDARD SPECIFICATION

The A330-200 Standard Specification is contained in a separate folder.

NWA - A330 - PA
<PAGE>
                                                                   APPENDIX A TO
                                                          LETTER AGREEMENT NO. 2

                                                                       EXHIBIT 2

For the A330-200 option summary, see Exhibit B to the Agreement.

NWA - A330 - PA

<PAGE>

                                                                   APPENDIX B TO
                                                          LETTER AGREEMENT NO. 2

1.       PRICES FOR CONVERTED FIRM A330-500 AIRCRAFT

1.1      BASE PRICE OF THE AIRFRAME

1.1.1    The Base Price of the Airframe will be the sum of the Base Prices set
         forth below in (i) and (ii):

         (i)      the Base Price of the Standard Airframe for the Converted Firm
                  A330-500 Aircraft, as defined in the A330-500 Standard
                  Specification set forth in Exhibit 1 hereto (excluding Buyer
                  Furnished Equipment, Propulsion Systems and SCNs), at delivery
                  conditions prevailing in January 2000, which is:

                           US$ (CONFIDENTIAL MATERIAL OMITTED AND FILED
                           SEPARATELY WITH THE SECURITIES AND EXCHANGE
                           COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                           TREATMENT)

                           (US dollars--(CONFIDENTIAL MATERIAL OMITTED AND FILED
                           SEPARATELY WITH THE SECURITIES AND EXCHANGE
                           COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                           TREATMENT)), and

         (ii)     the Base Price of SCNs covering options selected by Northwest
                  from Exhibit 2 hereto, as it may be supplemented, which, at
                  delivery conditions prevailing in January 2000, is estimated
                  at:

                           US$ (CONFIDENTIAL MATERIAL OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT)

                           (US dollars--(CONFIDENTIAL MATERIAL OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT)).

1.1.2    The Base Price of the Airframe of each Converted Firm A330-500 Aircraft
         will be revised to the actual delivery date of such Converted Firm
         A330-500 Aircraft in accordance with the Airframe Price Revision
         Formula set forth in Subclause 5.1 of the Agreement.

1.2      BASE PRICE OF THE PROPULSION SYSTEMS

<PAGE>

         The Converted Firm A330-500 Aircraft will be equipped with either the
         General Electric CF6-80E1A2, Pratt & Whitney PW 4164 or Rolls Royce
         Trent 768 propulsion systems (each the "A330-500 Propulsion Systems").

1.2.1    The Base Price of the CF6-80E1A2 propulsion system and additional
         standard equipment at delivery conditions prevailing in January 2000
         is:

                           US$ (CONFIDENTIAL MATERIAL OMITTED AND FILED
                           SEPARATELY WITH THE SECURITIES AND EXCHANGE
                           COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                           TREATMENT)

                           (US dollars--(CONFIDENTIAL MATERIAL OMITTED AND FILED
                           SEPARATELY WITH THE SECURITIES AND EXCHANGE
                           COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                           TREATMENT) ).

         Said Base Price has been calculated with reference to the Reference
         Price indicated by General Electric of US$ 22,665,150 (US
         dollars--twenty-two million six hundred sixty-five thousand one hundred
         fifty) in accordance with delivery conditions prevailing in April 1998
         (CPI 151.09).

         Said Reference Price is subject to adjustment to the date of delivery
         of the Aircraft in accordance with the General Electric Price Revision
         Formula set forth in Subclause 5.2 of the Agreement.

1.2.2    The Base Price of the Pratt & Whitney PW 4164 propulsion systems and
         additional standard equipment at delivery conditions prevailing in
         January 2000 is:

                           US$ (CONFIDENTIAL MATERIAL OMMITTED AND FILED
                           SEPARATELY WITH THE SECURITIES AND EXCHANGE
                           COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                           TREATMENT)

                           (US dollars--(CONFIDENTIAL MATERIAL OMMITTED AND
                           FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
                           COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                           TREATMENT))

         Said Base Price has been calculated with reference to the Reference
         Price indicated by Pratt & Whitney of US$ 22,554,480 (US
         dollars--twenty-two million five hundred fifty-four thousand four
         hundred eighty) in accordance with economic conditions prevailing in
         December 1998.

<PAGE>

         Said Reference Price is subject to adjustment to the date of delivery
         of the Aircraft in accordance with the Pratt & Whitney Revision Formula
         set forth in Subclause 5.2 hereto.

1.2.3    The Base Price of the Rolls Royce Trent 768 propulsion systems and
         additional standard equipment at delivery conditions prevailing in
         January 2000 is:

                           US$ (CONFIDENTIAL MATERIAL OMMITTED AND FILED
                           SEPARATELY WITH THE SECURITIES AND EXCHANGE
                           COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                           TREATMENT)

                           (US dollars--(CONFIDENTIAL MATERIAL OMMITTED AND
                           FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
                           COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                           TREATMENT))

         Said Base Price has been calculated with reference to the Reference
         Price indicated by Rolls Royce of US$ 20,577,330 (US dollars--twenty
         million five hundred seventy-seven thousand three hundred thirty) in
         accordance with delivery conditions prevailing in January 1994.

         Said Reference Price is subject to adjustment to the date of delivery
         of the Aircraft in accordance with the Rolls Royce Revision Formula set
         forth in Subclause 5.2 hereto.

1.2.4    VALIDITY OF PROPULSION SYSTEMS PRICES

         It is understood that the prices cited above and the price revision
         formula referred to in Subparagraph 2.3 concerning the A330-500
         Propulsion Systems and related equipment are based on information
         received from the A330-500 Propulsion Systems manufacturer and remain
         subject to any modifications that might be communicated by the A330-500
         Propulsion Systems manufacturer to the Seller, the Manufacturer and/or
         the Buyer.

2.       PURCHASE INCENTIVES

2.1      AVSA will provide to Northwest upon delivery of each applicable
         Converted Firm A330-500 Aircraft the credit memoranda listed below in
         Subparagraphs 2.1(i) to 2.1(iii), inclusive.

         (i)      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

<PAGE>

         (ii)     (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         (iii)    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         Hereinafter, the (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
         WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT) are collectively referred to as the "Converted
         Firm A330-500 Aircraft Credit Memoranda."

2.2      The Converted Firm A330-500 Aircraft Credit Memoranda have been
         established in accordance with January 2000 delivery conditions
         (dollars) and will be revised to the actual delivery date of each
         applicable Converted Firm A330-500 Aircraft in accordance with the
         Airframe Price Revision Formula set forth in Exhibit D to the
         Agreement.

2.3      The Converted Firm A330-500 Aircraft Credit Memoranda will be applied
         by AVSA against the Final Contract Price of each Converted Firm
         A330-500 Aircraft.

3.       CREDITS AS PRICE ADJUSTMENT

         AVSA and Northwest agree that credits offered to Northwest pursuant to
         the provisions of this Letter Agreement are intended to constitute an
         adjustment to the purchase price of the Aircraft associated thereto.
         Nothing in this Letter Agreement should be read to provide an inference
         as to the characterization of credits found in clauses or paragraphs of
         the Agreement other than this Letter Agreement.

<PAGE>

                                                                       EXHIBIT 1

                             STANDARD SPECIFICATION

The A330-500 Standard Specification will be provided when available.

<PAGE>

                                                                       EXHIBIT 2

The A330-500 option summary will be generally in line with Exhibit B to the
Agreement.
<PAGE>

                             LETTER AGREEMENT NO. 3

                                                         As of December 21, 2000

Northwest Airlines, Inc.
2700 Lone Oak Parkway
Eagan, Minnesota 55121

RE: (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) GUARANTEE

Dear Ladies and Gentlemen:

         Northwest Airlines, Inc. ("Northwest") and AVSA, S.A.R.L. ("AVSA"),
have entered into an A330 Purchase Agreement, dated as of even date herewith
(the "Agreement"), which covers, among other matters, the sale by AVSA and the
purchase by Northwest of certain Aircraft, under the terms and conditions set
forth in said Agreement. Northwest and AVSA have agreed to set forth in this
Letter Agreement No. 3 (the "Letter Agreement") certain additional terms and
conditions regarding the sale of the Aircraft. Capitalized terms used herein and
not otherwise defined in this Letter Agreement shall have the meanings assigned
thereto in the Agreement. The terms "herein," "hereof" and "hereunder" and words
of similar import refer to this Letter Agreement.

         Both parties agree that this Letter Agreement shall constitute an
integral, nonseverable part of said Agreement, that the provisions of said
Agreement are hereby incorporated herein by reference, and that this Letter
Agreement shall be governed by the provisions of said Agreement, except that if
the Agreement and this Letter Agreement have specific provisions that are
inconsistent, the specific provisions contained in this Letter Agreement shall
govern.

         AVSA represents and warrants that the Manufacturer has provided to AVSA
the following (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT) guarantees with respect to the Aircraft, subject to the terms,
conditions, limitations and restrictions all as hereinafter set out, and that
such guarantees are in full force and effect and have not been amended. AVSA
hereby assigns to Northwest and Northwest hereby accepts, all of AVSA's rights
and obligations as the "Buyer" under the said performance guarantees, and AVSA
subrogates Northwest to all such rights and obligations in respect of the
Aircraft. AVSA hereby warrants to Northwest that (i) it has all the requisite
authority to make the foregoing assignment to and effect the foregoing
subrogation in favor of Northwest, (ii) such

                                                                           LA3-1

<PAGE>

assignment and subrogation are effective to confer on Northwest all of the
foregoing rights and obligations of AVSA, and (iii) AVSA shall not enter into
any amendment of the provisions so assigned or subrogated without the prior
written consent of Northwest.

         It is understood that, in the provisions below between the words QUOTE
and UNQUOTE, capitalized terms have the meanings assigned thereto in this
Agreement, except that (i) the term "Seller," which means the Manufacturer as
between the Manufacturer and AVSA, also means the Manufacturer in this
Agreement, and (ii) the term "Buyer," which means AVSA as between the
Manufacturer and the Seller, means Northwest.

QUOTE

     1.   (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
          SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
          CONFIDENTIAL TREATMENT)

     2.   (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
          SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
          CONFIDENTIAL TREATMENT).

     3.   (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
          SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
          CONFIDENTIAL TREATMENT)

     4.   (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
          SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
          CONFIDENTIAL TREATMENT)

UNQUOTE

         THIS LETTER AGREEMENT SETS FORTH THE EXCLUSIVE GUARANTEES, WARRANTIES,
         EXCLUSIVE LIABILITIES AND EXCLUSIVE OBLIGATIONS OF AVSA, AND THE
         EXCLUSIVE REMEDIES AVAILABLE TO NORTHWEST, ARISING FROM (BUT SOLELY TO
         THE EXTENT ARISING FROM) ANY FAILURE OF ANY AIRCRAFT (AS SUCH TERM IS
         DEFINED IN THIS LETTER AGREEMENT) TO DEMONSTRATE COMPLIANCE WITH ANY OF
         THE GUARANTEES SET FORTH IN THIS LETTER AGREEMENT, INCLUDING BUT NOT
         LIMITED TO ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS, ANY
         IMPLIED WARRANTY ARISING FROM COURSE OF PERFORMANCE, COURSE OF DEALING
         OR USAGE OF TRADE, ANY OBLIGATION OR LIABILITY OF AVSA OR ANY RIGHT,
         CLAIM OR REMEDY OF NORTHWEST IN CONTRACT OR IN TORT, WHETHER OR NOT
         ARISING FROM AVSA'S NEGLIGENCE, ACTUAL OR IMPUTED, INTENTIONAL ACT, OR
         STRICT LIABILITY AND ANY OBLIGATION OR LIABILITY OF AVSA OR ANY RIGHT,
         CLAIM OR REMEDY OF NORTHWEST FOR LOSS OF OR DAMAGE TO ANY AIRCRAFT,
         COMPONENT, EQUIPMENT, ACCESSORY OR PART, FOR LOSS OF USE, REVENUE OR
         PROFIT WITH RESPECT TO ANY AIRCRAFT, COMPONENT, EQUIPMENT, ACCESSORY OR
         PART, OR FOR ANY OTHER DIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES,
         PROVIDED THAT IN THE EVENT THAT ANY OF THE AFORESAID

                                                                           LA3-2

<PAGE>

         PROVISIONS SHOULD FOR ANY REASON BE HELD UNLAWFUL OR OTHERWISE
         INEFFECTIVE THE REMAINDER OF THIS PARAGRAPH SHALL REMAIN IN FULL FORCE
         AND EFFECT AND PROVIDED, FURTHER, THAT NOTHING IN THIS LETTER AGREEMENT
         SHALL BE DEEMED TO MODIFY, SETTLE, COMPROMISE, LIMIT, RELEASE OR
         OTHERWISE AFFECT ANY OTHER CLAIM, RIGHT OR REMEDY OF NORTHWEST AGAINST
         AVSA OR THE MANUFACTURER. THE GUARANTEES SET FORTH IN THIS LETTER
         AGREEMENT SHALL NOT BE EXTENDED, ALTERED OR VARIED EXCEPT BY A WRITTEN
         INSTRUMENT SIGNED BY AVSA AND NORTHWEST.

         ASSIGNMENT

         Notwithstanding any other provision of this Letter Agreement or of the
         Agreement, this Letter Agreement and the rights and obligations of
         Northwest hereunder shall not be assigned or transferred in any manner
         without the prior written consent of AVSA, and any attempted assignment
         or transfer in contravention of the provisions of this paragraph shall
         be void and of no force or effect.

                                                                           LA3-3

<PAGE>

If the foregoing correctly sets forth our understanding, please execute the
original and one (1) copy hereof in the space provided below and return a copy
to AVSA.

                                              Very truly yours,

                                              AVSA, S.A.R.L.

                                              By:  /s/ Francois Bensier
                                                   _____________________________

                                              Its: AVSA Chief Executive Officer
                                                   _____________________________

Accepted and Agreed

NORTHWEST AIRLINES, INC.

By:  /s/ Gregory A. May
     ____________________________________

Its: Vice President Aircraft Transactions
     ____________________________________

                                                                       LA3-4

<PAGE>

                             LETTER AGREEMENT NO. 4

                                                         As of December 21, 2000

Northwest Airlines, Inc.
2700 Lone Oak Parkway
Eagan, Minnesota 55121

Re:   RELIABILITY GUARANTEES

Ladies and Gentlemen:

      Northwest Airlines, Inc. ("Northwest") and AVSA, S.A.R.L. ("AVSA"), have
entered into an A330 Purchase Agreement, dated as of even date herewith (the
"Agreement"), which covers, among other matters, the sale by AVSA and the
purchase by Northwest of certain Aircraft, under the terms and conditions set
forth in said Agreement. Northwest and AVSA have agreed to set forth in this
Letter Agreement No. 4 (the "Letter Agreement") certain additional terms and
conditions regarding the sale of the Aircraft. Capitalized terms used herein and
not otherwise defined in this Letter Agreement shall have the meanings assigned
thereto in the Agreement. The terms "herein," "hereof" and "hereunder" and words
of similar import refer to this Letter Agreement.

      Both parties agree that this Letter Agreement shall constitute an
integral, nonseverable part of said Agreement, that the provisions of said
Agreement are hereby incorporated herein by reference, and that this Letter
Agreement shall be governed by the provisions of said Agreement, except that if
the Agreement and this Letter Agreement have specific provisions that are
inconsistent, the specific provisions contained in this Letter Agreement shall
govern.

      AVSA represents and warrants that the Manufacturer has provided to AVSA
the following reliability guarantees with respect to the Aircraft, subject to
the terms, conditions, limitations and restrictions all as hereinafter set out,
and that such guarantees are in full force and effect and have not been amended.
AVSA hereby assigns to Northwest and Northwest hereby accepts, all of AVSA's
rights and obligations as the "Buyer" under the said performance guarantees, and
AVSA subrogates Northwest to all such rights and obligations in respect of the
Aircraft. AVSA hereby warrants to Northwest that (i) it has all the requisite
authority to make the foregoing assignment to and effect the foregoing
subrogation in favor of Northwest, (ii) such

                                     LA4-1
<PAGE>

assignment and subrogation are effective to confer on Northwest all of the
foregoing rights and obligations of AVSA, and (iii) AVSA shall not enter into
any amendment of the provisions so assigned or subrogated without the prior
written consent of Northwest.

      It is understood that, in the provisions below between the words QUOTE and
UNQUOTE, capitalized terms have the meanings assigned thereto in this Agreement,
except that (i) the term "Seller," which means the Manufacturer as between the
Manufacturer and AVSA, also means the Manufacturer in this Agreement, and (ii)
the term "Buyer," which means AVSA as between the Manufacturer and the Seller,
means Northwest.

QUOTE

1.    SCOPE, COMMENCEMENT, DURATION

      The guarantees relating to Achieved ODI Performance, Achieved On-Time
      Performance, Achieved 30-Minute On-Time Performance and Completion Factor
      (as such terms are defined in Subparagraphs 2.1, 2.2, 2.3 and 2.8)
      contained in this Letter Agreement (the "Guarantees") extend to the fleet
      of Aircraft. The Guarantees shall commence with delivery of the first
      Aircraft and (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE
      SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
      TREATMENT).

2.    DEFINITIONS

      Definitions are listed below in alphabetical order.

2.1   ACHIEVED ODI PERFORMANCE

      "Achieved ODI Performance" shall be computed as of the end of each
      calendar quarter (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH
      THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
      CONFIDENTIAL TREATMENT)as follows:

                                    Total number of Scheduled Departures
            Achieved ODI            with ODI Events in the
            Performance       =     previous four (4) calendar quarters
                                    -----------------------------------
                                    The total number of Scheduled Departures
                                    in the previous four (4) calendar quarters

2.2   ACHIEVED ON-TIME PERFORMANCE

      "Achieved On-Time Performance," expressed as a percentage, shall be
      computed as of the end of each calendar quarter(CONFIDENTIAL MATERIAL
      OMMITTED AND

                                     LA4-2
<PAGE>

      FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
      REQUEST FOR CONFIDENTIAL TREATMENT) as follows:

                                  Total number of Scheduled
            Achieved              Departures without
            On-Time         =     Chargeable Events during the
            Performance           previous four (4) calendar quarters    X 100
                                  -----------------------------------
                                  Total number of Scheduled Departures
                                  during the previous four (4) calendar

      quarters

2.3   ACHIEVED 30-MINUTE ON-TIME PERFORMANCE

      "Achieved 30-Minute On-Time Performance," expressed as a percentage, shall
      be computed as of the end of each calendar quarter (CONFIDENTIAL MATERIAL
      OMMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
      PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) as follows:

                                  Total number of Scheduled
            Achieved              Departures without
            30-Minute       =     30-Minute Chargeable Events during
            On-Time               the previous four (4) calendar quarters  X 100
            Performance           ---------------------------------------
                                  Total number of Scheduled Departures
                                  during the previous four (4) calendar
                                  quarters

2.4   ANNUAL ASSESSMENT QUARTER

      An "Annual Assessment Quarter" shall be each fourth consecutive calendar
      quarter(CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE
      SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
      TREATMENT).

2.5   CANCELLATION EVENT

      A "Cancellation Event" shall be deemed to have occurred when an Aircraft
      does not complete the scheduled arrival of a Scheduled Departure for any
      reason described in any of the Codes that start with "X."

2.6   CHARGEABLE EVENT/30-MINUTE CHARGEABLE EVENT

      A "Chargeable Event" shall be deemed to have occurred when an Aircraft
      does not leave

                                     LA4-3
<PAGE>

      the gate within one (1) minute after its scheduled departure time for any
      Buyer delay code reason listed in the Codes.

      A "30-Minute Chargeable Event" shall be deemed to have occurred when an
      Aircraft does not leave the gate within thirty (30) minutes after its
      scheduled departure time because of any Buyer delay code reason listed in
      the Codes.

2.7   CODES

      "Codes" shall be deemed the Buyer delay codes defined in Northwest
      Airlines' System Delay Code Bulletin dated November 17, 1999. These Codes
      may be changed(CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH
      THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
      CONFIDENTIAL TREATMENT), provided, however, that material changes in the
      Codes shall be mutually agreed between the Buyer and the Seller.

      Included Codes:

      CIM         -     RESET / RECYCLE / EXERCISE COMPONENTS
      DFM         -     DEFERRAL
      EQM         -     EQUIPMENT CHANGE DUE TO MECHANICAL MALFUNCTION
      IRM         -     IRREGULAR ROUTING - MAINTENANCE
      LQM         -     LATE EQUIPMENT - MAINTENANCE
      MTM         -     MECHANICAL MALFUNCTION
      NOM         -     MAINTENANCE - CHECKED OK
      RBM         -     RETURN TO GATE DUE TO MAINTENANCE
      XMM         -     MEL/CDL DEFERRAL
      XOM         -     MAINTENANCE - CHECKED OK
      XTM         -     MECHANICAL MALFUNCTION

      The following codes shall also be included where the Buyer can reasonably
      demonstrate that the root cause of the Chargeable Event, 30-Minute
      Chargeable Event or Cancellation Event was in the Aircraft or Aircraft
      systems.

      ADM         -     AIRCRAFT DAMAGE
      CDM         -     CARGO LOADING SYSTEM INOP
      EIM         -     ENGINEERING INSPECTION
      PBM         -     PART(S) UNSERVICEABLE
      VEM         -     PASSENGER COMM/ENTERTAINMENT EQUIP
      XDM         -     AIRCRAFT DAMAGE/MAINTENANCE
      XLM         -     LINE MAINTENANCE
      XPM         -     PART(S) UNSERVICEABLE

                                     LA4-4
<PAGE>

      XQM         -     EQUIPMENT MAINTENANCE

2.8   COMPLETION FACTOR

      "Completion Factor," expressed as a percentage, shall be computed as of
      the end of each calendar quarter (CONFIDENTIAL MATERIAL OMMITTED AND FILED
      SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
      REQUEST FOR CONFIDENTIAL TREATMENT)as follows:

                                    Total number of Scheduled
                                    Departures without
                                    Cancellation Events during the
            Completion Factor =     previous four (4) calendar quarters    X 100
                                    -----------------------------------
                                    Total number of Scheduled Departures
                                    during the previous four (4) calendar
                                    quarters

2.9   EXCLUSIONS

      The following shall not be counted as Chargeable Events, 30-Minute
      Chargeable Events, Cancellation Events or, notwithstanding Subparagraph
      2.10, as ODI Events:

      (i)   Repetitive delays, cancellations or operational difficulties that
            occur as a result of failure to apply correct trouble shooting
            procedures in accordance with the Trouble Shooting Manual.

      (ii)  Repetitive delays, cancellations or operational difficulties
            attributable to the Propulsion Systems, except where the Buyer can
            reasonably demonstrate that the root cause of the Chargeable Event,
            30-Minute Chargeable Event, Cancellation Event or ODI Event was in
            the Aircraft or systems of the Aircraft.

2.10  ODI EVENT

      An "ODI Event" shall mean, with respect to any Scheduled Departure, the
      occurrence of any operational difficulty incident described in the ODI
      Categories and Definitions dated December 23, 1999 (SEE Exhibit A attached
      hereto). These ODI Categories and Definitions may be changed(CONFIDENTIAL
      MATERIAL OMMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
      COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT), provided,
      however, that material changes in the ODI Categories and Definitions shall
      be mutually agreed between the Buyer and the Seller.

2.11  SCHEDULED DEPARTURE

                                     LA4-5
<PAGE>

      A "Scheduled Departure" is a departure of an Aircraft as set forth in the
      Buyer's time table, and any scheduled charter flight of an Aircraft.

3.    GUARANTEES

      The Guarantees are listed below in alphabetical order.

3.1   ACHIEVED ODI PERFORMANCE GUARANTEE

      (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE SECURITIES
      AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)

3.2   ACHIEVED ON-TIME PERFORMANCE GUARANTEE

      (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE SECURITIES
      AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)

3.3   ACHIEVED 30-MINUTE ON-TIME PERFORMANCE GUARANTEE

      (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE SECURITIES
      AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)

3.4   COMPLETION FACTOR GUARANTEE

      (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE SECURITIES
      AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)

4.    BUYER'S AND SELLER'S OBLIGATION

4.1   BUYER'S AND SELLER'S OBLIGATIONS

      The Buyer's and Seller's specialists shall meet, not later than six (6)
      months before delivery of the first Aircraft, to mutually agree on the
      details of the appropriate electronic data interface (EDI) reporting
      procedure(s) for the Guarantees.

4.2   BUYER'S OBLIGATIONS

      (i)   (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY

                                     LA4-6
<PAGE>

            WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST
            FOR CONFIDENTIAL TREATMENT)

      (ii)  (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE
            SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
            CONFIDENTIAL TREATMENT)(a)(b)

      (iii) (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE
            SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
            CONFIDENTIAL TREATMENT)

      (iv)  (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE
            SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
            CONFIDENTIAL TREATMENT)

4.3   SELLER'S OBLIGATIONS

      (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE SECURITIES
      AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT),
      the Seller shall provide technical and operational analyses of delays and
      cancellations and shall develop corrections intended to reduce delays,
      and, in the event that the Achieved On-Time Performance, the Achieved
      30-Minute On-Time Performance or the Completion Factor falls below (or the
      Achieved ODI Performance exceeds) the guaranteed levels set forth in
      Paragraph 3 herein, the Seller shall, not later than six (6) months after
      notification by the Buyer and at no charge to the Buyer:

      (i)   (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE
            SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
            CONFIDENTIAL TREATMENT)

      (ii)  (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE
            SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
            CONFIDENTIAL TREATMENT)

      (iii) (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE
            SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
            CONFIDENTIAL TREATMENT)

      (iv)  (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE
            SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
            CONFIDENTIAL TREATMENT)

                                     LA4-7
<PAGE>

      (v)   (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE
            SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
            CONFIDENTIAL TREATMENT)

5.    SUSPENSION AND ADJUSTMENT

5.1   SUSPENSION OF GUARANTEES

      The remedies in Subparagraph 8.1 for each of the following Guarantees
      shall be suspended with respect to any Annual Assessment Quarter when the
      following occurs:

      (i)   Achieved ODI Performance, when Achieved ODI Performance as of the
            end of such Annual Assessment Quarter is above (CONFIDENTIAL
            MATERIAL OMMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
            TREATMENT)cycles.

      (ii)  Achieved On-Time Performance, when Achieved On-Time Performance as
            of the end of such Annual Assessment Quarter is below (CONFIDENTIAL
            MATERIAL OMMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
            EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
            TREATMENT)

      (iii) Achieved 30-Minute On-Time Performance, when Achieved 30-Minute
            On-Time Performance as of the end of such Annual Assessment Quarter
            is below (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH
            THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
            CONFIDENTIAL TREATMENT).

      (iv)  Completion Factor, when Completion Factor as of the end of such
            Annual Assessment Quarter is below (CONFIDENTIAL MATERIAL OMMITTED
            AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
            PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)

      However, if subsequent investigations show that the root cause of a
      failure to meet the applicable Guarantee was in the Aircraft or Aircraft
      systems, then(CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE
      SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
      TREATMENT)

      The obligations of the Seller described above in Subparagraph 4.3 shall
      remain in force

                                     LA4-8
<PAGE>

      during any suspension.

5.2   ADJUSTMENT OF GUARANTEES

      The Guarantees are based on the following operational parameters:

      (i)   an average flight leg of eight (8) hours,

      (ii)  an annual average of 4950 flight hours per Aircraft.

      Any significant change in the operational parameters above implemented by
      the Buyer or any significant certification or regulatory change that has a
      material adverse effect on the operational characteristics of the Aircraft
      shall be cause for reevaluation or adjustment of the guaranteed levels set
      forth in Paragraph 3, by mutual agreement between the Buyer and the
      Seller.

6.    REVIEW MEETINGS

6.1   SPECIALISTS' REVIEW MEETING

      A review meeting between the Seller's and the Buyer's representatives
      shall be scheduled at the end of each six (6) month period during the
      Term, or at more frequent intervals to be mutually agreed. Representatives
      of the Buyer and the Seller shall participate in the meeting and shall:

      (i)   (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE
            SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
            CONFIDENTIAL TREATMENT)

      (ii)  (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE
            SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
            CONFIDENTIAL TREATMENT)

      (iii) (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE
            SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
            CONFIDENTIAL TREATMENT)

      (iv)  (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE
            SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
            CONFIDENTIAL TREATMENT)

6.2   RELIABILITY CONTROL BOARD

                                     LA4-9
<PAGE>

      On the Buyer's request, in each meeting of the Buyer's Reliability Control
      Board at which the Aircraft is being evaluated, the Seller shall make a
      presentation including a description of the corrective actions which the
      Seller is making available to the Buyer in connection with any shortfall
      under the Guarantees.

7.    LIABILITY LIMITATION

      The Seller's liability for failure to meet the Guarantees shall be
      governed solely by the terms hereof.

8.    (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE SECURITIES
      AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)

8.1   (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE SECURITIES
      AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)
      (i) (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE
      SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
      TREATMENT)

      (ii)  (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE
            SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
            CONFIDENTIAL TREATMENT)

      (iii) (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE
            SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
            CONFIDENTIAL TREATMENT)

      (iv)  (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE
            SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
            CONFIDENTIAL TREATMENT)

8.2   (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE SECURITIES
      AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)

8.3   (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE SECURITIES
      AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)

                                     LA4-10
<PAGE>

8.4   (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE SECURITIES
      AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)

UNQUOTE

      THIS LETTER AGREEMENT SETS FORTH THE EXCLUSIVE GUARANTEES, WARRANTIES,
      EXCLUSIVE LIABILITIES AND EXCLUSIVE OBLIGATIONS OF AVSA, AND THE EXCLUSIVE
      REMEDIES AVAILABLE TO NORTHWEST, ARISING FROM (BUT SOLELY TO THE EXTENT
      ARISING FROM) ANY FAILURE OF ANY AIRCRAFT (AS SUCH TERM IS DEFINED IN THIS
      LETTER AGREEMENT) TO DEMONSTRATE COMPLIANCE WITH ANY OF THE GUARANTEES SET
      FORTH IN THIS LETTER AGREEMENT, INCLUDING BUT NOT LIMITED TO ANY IMPLIED
      WARRANTY OF MERCHANTABILITY OR FITNESS, ANY IMPLIED WARRANTY ARISING FROM
      COURSE OF PERFORMANCE, COURSE OF DEALING OR USAGE OF TRADE, ANY OBLIGATION
      OR LIABILITY OF AVSA OR ANY RIGHT, CLAIM OR REMEDY OF NORTHWEST IN
      CONTRACT OR IN TORT, WHETHER OR NOT ARISING FROM AVSA'S NEGLIGENCE, ACTUAL
      OR IMPUTED, INTENTIONAL ACT, OR STRICT LIABILITY AND ANY OBLIGATION OR
      LIABILITY OF AVSA OR ANY RIGHT, CLAIM OR REMEDY OF NORTHWEST FOR LOSS OF
      OR DAMAGE TO ANY AIRCRAFT, COMPONENT, EQUIPMENT, ACCESSORY OR PART, FOR
      LOSS OF USE, REVENUE OR PROFIT WITH RESPECT TO ANY AIRCRAFT, COMPONENT,
      EQUIPMENT, ACCESSORY OR PART, OR FOR ANY OTHER DIRECT, INCIDENTAL OR
      CONSEQUENTIAL DAMAGES, PROVIDED THAT IN THE EVENT THAT ANY OF THE
      AFORESAID PROVISIONS SHOULD FOR ANY REASON BE HELD UNLAWFUL OR OTHERWISE
      INEFFECTIVE THE REMAINDER OF THIS PARAGRAPH SHALL REMAIN IN FULL FORCE AND
      EFFECT AND PROVIDED, FURTHER, THAT NOTHING IN THIS LETTER AGREEMENT SHALL
      BE DEEMED TO MODIFY, SETTLE, COMPROMISE, LIMIT, RELEASE OR OTHERWISE
      AFFECT ANY OTHER CLAIM, RIGHT OR REMEDY OF NORTHWEST AGAINST AVSA OR THE
      MANUFACTURER. THE GUARANTEES SET FORTH IN THIS LETTER AGREEMENT SHALL NOT
      BE EXTENDED, ALTERED OR VARIED EXCEPT BY A WRITTEN INSTRUMENT SIGNED BY
      AVSA AND NORTHWEST.

      ASSIGNMENT

      Notwithstanding any other provision of this Letter Agreement or of the
      Agreement, this Letter Agreement and the rights and obligations of
      Northwest hereunder shall not be assigned or transferred in any manner
      without the prior written consent of AVSA, and any attempted assignment or
      transfer in contravention of the provisions of this paragraph shall be
      void and of no force or effect.

                                     LA4-11
<PAGE>

If the foregoing correctly sets forth our understanding, please execute the
original and one (1) copy hereof in the space provided below and return a copy
to AVSA.

                                    Very truly yours,

                                    AVSA, S.A.R.L.

                                    By:  /s/ Francois Bensier
                                         _____________________________

                                    Its: AVSA Chief Executive Officer
                                         _____________________________

Accepted and Agreed

NORTHWEST AIRLINES, INC.

By:  /s/ Gregory A. May
     ____________________________________

Its: Vice President Aircraft Transactions
     ____________________________________

                                     LA4-12

<PAGE>

                                                                       EXHIBIT A

                         ODI CATEGORIES AND DEFINITIONS

The ODI categories and definitions, are listed below.

     1)   (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
          SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
          CONFIDENTIAL TREATMENT)

     2)   (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
          SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
          CONFIDENTIAL TREATMENT)

     3)   (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
          SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
          CONFIDENTIAL TREATMENT

     4)   (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
          SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
          CONFIDENTIAL TREATMENT)

     5)   (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
          SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
          CONFIDENTIAL TREATMENT)

     6)   (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
          SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
          CONFIDENTIAL TREATMENT)

     7)   (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
          SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
          CONFIDENTIAL TREATMENT)

     8)   (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
          SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
          CONFIDENTIAL TREATMENT).

                                  LA4,App.A-1
<PAGE>

     9)   (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
          SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
          CONFIDENTIAL TREATMENT)

     10)  (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
          SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
          CONFIDENTIAL TREATMENT)

                                  LA4,App.A-2
<PAGE>

                             LETTER AGREEMENT NO. 5A

                                                         As of December 21, 2000

Northwest Airlines, Inc.
2700 Lone Oak Parkway
Eagan, Minnesota 55121

Re:  PERFORMANCE GUARANTEES FOR GENERAL ELECTRIC POWERED AIRCRAFT

Ladies and Gentlemen:

         Northwest Airlines, Inc., ("Northwest") and AVSA, S.A.R.L., ("Seller"),
have entered into an A330 Purchase Agreement, dated as of even date herewith
(the "Agreement"), which covers, among other matters, the sale by Seller and the
purchase by Northwest of certain Aircraft, under the terms and conditions set
forth in said Agreement. Northwest and Seller have agreed to set forth in this
Letter Agreement No. 5A (the "Letter Agreement") certain additional terms and
conditions regarding the sale of the Aircraft. Capitalized terms used herein and
not otherwise defined in this Letter Agreement shall have the meanings assigned
thereto in the Agreement. The terms "herein," "hereof" and "hereunder" and words
of similar import refer to this Letter Agreement.

         Both parties agree that this Letter Agreement shall constitute an
integral, nonseverable part of said Agreement, that the provisions of said
Agreement are hereby incorporated herein by reference, and that this Letter
Agreement shall be governed by the provisions of said Agreement, except that if
the Agreement and this Letter Agreement have specific provisions that are
inconsistent, the specific provisions contained in this Letter Agreement shall
govern.

         AVSA represents and warrants that the Manufacturer has provided to AVSA
the following performance guarantees with respect to the Aircraft, subject to
the terms, conditions, limitations and restrictions all as hereinafter set out,
and that such guarantees are in full force and effect and have not been amended.
AVSA hereby assigns to Northwest and Northwest hereby accepts, all of AVSA's
rights and obligations as the "Buyer" under the said performance guarantees and
AVSA subrogates Northwest to all such rights and obligations in respect of the
Aircraft. AVSA hereby warrants to Northwest that (i) it has all the requisite
authority to make the foregoing assignment to and effect the foregoing
subrogation in favor of Northwest, (ii) such assignment and subrogation are
effective to confer on Northwest all of the foregoing rights and obligations of
AVSA, and (iii) AVSA shall not enter into any amendment of the provisions so
assigned or subrogated without the prior written consent of Northwest.

         It is understood that, in the provisions below between the words QUOTE
and UNQUOTE, capitalized terms have the meanings assigned thereto in this
Agreement, except that (i) the term "Seller," which means the Manufacturer as
between the Manufacturer and AVSA, also means the Manufacturer in this
Agreement, and (ii) the term "Buyer," which means AVSA as between the
Manufacturer and the Seller, means Northwest.

                                  LA5A (GE)-1

<PAGE>

QUOTE

PART A                      A330-300 PERFORMANCE GUARANTEES

         PREAMBLE

         A.   Assumptions:

              The guarantees defined below in this Part A are applicable at the
              time of delivery to each A330-300 as described in the A330-300
              Standard Specification Ref. G 000 03000 Issue 6 Revision 1, dated
              15th July 1998, amended by Specification Change Notices ("SCN")
              for:

              i)      increase of design weights

                      Maximum Taxi Weight: (CONFIDENTIAL MATERIAL OMITTED AND
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT)pounds

                      Maximum Takeoff Weight: (CONFIDENTIAL MATERIAL OMITTED AND
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT)pounds

                      Maximum Landing Weight: (CONFIDENTIAL MATERIAL OMITTED AND
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT)pounds

                      Maximum Zero Fuel Weight: (CONFIDENTIAL MATERIAL OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT)pounds

              ii)     fitting of either:
                      (x) General Electric CF6-80E1A3 engines
                      (y) Pratt and Whitney PW4168A engines with Kevlar fan case
                      (z) Rolls-Royce Trent 772B engines except where otherwise
                      noted.

              These guarantees are comprehensive including the performance of
              both the airframe and engine in combination.

              For information only:

              For establishing FAA certified performance these guarantees have
              been based on:

              (x) the FAA certified Flight Manual of the A330-200 fitted with
              General Electric CF6-80E1A4 engines plus best estimated
              corrections for longer fuselage of the A330-300 and higher
              take-off thrust of the CF6-80E1A3 engines

              (y) the FAA certified Flight Manual of the A330-300 fitted with
              Pratt and Whitney PW4168A engines

              (z) the FAA certified Flight Manual of the A330-300 fitted with
              Rolls Royce Trent 772B engines, with, in each case, a take-off
              thrust rating flat rated to 86(degree)F (ISA+15(degree)C) at sea
              level.

                                  LA5A (GE)-2

<PAGE>

              For establishing uncertified performance these guarantees have
              been based on the In Flight Performance level relevant at the date
              of signature of the Purchase Agreement (the "IFP Level") and
              consistent with the Aircraft Performance Document (the "Orange
              Book")

              (x)     for CF6-80E1A3 engines : ref. AI/CM-T P3302 Issue 3
              (y)     for PW4168A engines : ref. AI/CM-T P3322 Issue 3
              (z)     for Trent 772B engines : ref. AI/CM-T P3342 Issue 3

         B.   Definitions:

              (i)     For the purpose of this Part A of this Letter Agreement
                      only, the term "Aircraft" is defined as any and all of the
                      A330-300 model aircraft to be acquired by the Buyer under
                      the Agreement.

              (ii)    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH
                      THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
                      REQUEST FOR CONFIDENTIAL TREATMENT)

1.       GUARANTEED PERFORMANCE

1.1      SPEED

         The level flight airspeed at an Aircraft gross weight of 460,000 pounds
         at a pressure altitude of 35,000 feet using maximum cruise thrust in
         ISA conditions shall not be less than a true Mach number of:
         (x) for CF6-80E1A3 engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)
         (y) for PW4168A engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)
         (z) for Trent 772B engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)

1.2      EN-ROUTE ONE ENGINE INOPERATIVE

         Each Aircraft shall meet minimum en-route climb gradient (currently
         1.1%) with one engine inoperative, the other operating at the maximum
         continuous thrust available at the altitude with air conditioning
         bleeds on, without anti-icing, at a gross weight of pounds in the
         cruise configuration in ISA conditions, at a geometric altitude of:
         (x) for CF6-80E1A3 engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)feet
         (y) for PW4168A engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)feet

                                  LA5A (GE)-3

<PAGE>

         (z) for Trent 772B engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)feet

1.3      TAKE-OFF PERFORMANCE

1.3.1    The FAR permissible take-off weight shall not be less than:

         (x) for CF6-80E1A3 engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)pounds
         (y) for PW4168A engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)pounds
         (z) for Trent 772B engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)pounds

         in the following conditions (assumed representative of):

         Pressure altitude: (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
         WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT) Ambient temperature: (CONFIDENTIAL MATERIAL
         OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) Runway
         length: (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT) Slope: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT) Obstacles (8): (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)

1.3.2    The FAR permissible take-off weight shall not be less than
         (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)pounds in the following conditions (assumed representative
         of(CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)):

         Pressure altitude: (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
         WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)

         Ambient temperature: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)Runway length: (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) Slope:
         (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE

                                  LA5A (GE)-4
<PAGE>

         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)
         Obstacles (11): (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
         WITH THE SECURITIES AND EXCHANBE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)(CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)(CONFIDENTIAL MATERIAL OMITTED AND
         FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
         TO A REQUEST FOR CONFIDENTIAL TREATMENT)(CONFIDENTIAL MATERIAL OMITTED
         AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
         PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)

1.4       ALL ENGINE CLIMB

         The time, fuel burn and distance in still air to climb from an initial
         climb altitude of 1,500 feet to a final climb altitude of 35,000 feet
         on a standard day, using the conditions and operating rules defined
         below and using not more than maximum climb thrust, shall not be more
         than the following guarantee values:
         (x) for CF6-80E1A3 engines:
              Time (minutes):
               NOMINAL: 27.6 mn TOLERANCE: 1.0 mn GUARANTEE: (CONFIDENTIAL
          MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
          COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)mn
          Fuel burn (pounds):
               NOMINAL: 11,890 lb TOLERANCE: 530 lb GUARANTEE: (CONFIDENTIAL
          MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
          COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)lb
               Distance (nautical miles)
               NOMINAL: 197 nm TOLERANCE: 8 nm GUARANTEE: (CONFIDENTIAL MATERIAL
          OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
          COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) nm
          (y) for PW4168A engines:
               Time (minutes):
               NOMINAL: 33.0 mn TOLERANCE: 1.5 mn GUARANTEE: (CONFIDENTIAL
          MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
          COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) mn
               Fuel burn (pounds):
               NOMINAL: 13,185 lb TOLERANCE:705 lb GUARANTEE: (CONFIDENTIAL
          MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
          COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)lb
               Distance (nautical miles)
               NOMINAL: 238 nm TOLERANCE: 12 nm GUARANTEE: (CONFIDENTIAL
          MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
          COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)nm
         (z) for Trent 772B engines:
              Time (minutes):
               NOMINAL: 25.0 mn TOLERANCE: 0.8 mn GUARANTEE: (CONFIDENTIAL
          MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
          COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)mn

                                  LA5A (GE)-5
<PAGE>

               Fuel burn (pounds):
               NOMINAL: 11,110 lb TOLERANCE: 450 lb GUARANTEE: (CONFIDENTIAL
          MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
          COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)lb
              Distance (nautical miles)
               NOMINAL: 178 nm TOLERANCE: 6 nm GUARANTEE: (CONFIDENTIAL MATERIAL
          OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
          COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)nm

         Conditions and operating rules:
         Initial Conditions:            A gross weight of 512,020 pounds
                                        A speed of 250 KCAS.
                                        The flaps and landing gear are
                                        retracted.
         Climb:                         The Aircraft climbs from the initial
                                        climb altitude to 10,000 feet altitude
                                        at 250 KCAS.
                                        The Aircraft then accelerates to a climb
                                        speed of 330 KCAS.
                                        The climb continues at 330 KCAS until
                                        0.82 Mach number is reached.
                                        The climb continues at 0.82 Mach number
                                        to the final climb altitude at a rate of
                                        climb not less than 300 feet per minute.

1.5   LANDING DISTANCE

         The FAR certified dry landing field length at an Aircraft gross weight
         of (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)pounds at sea level pressure altitude shall not
         be greater than:
         (x) for CF6-80E1A3 engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)feet
         (y) for PW4168A engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)feet
         (z) for Trent 772B engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)feet

2.       FUEL BURN GUARANTEE

2.1      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)AIRCRAFT SPECIFIC RANGE

The still air range expressed in nautical miles at an initial cruise altitude of
35,000 feet on a standard day at 0.82 Mach number, starting at a gross weight of
(CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) pounds and
consuming 140,000 pounds of fuel, and using not more than maximum cruise thrust
(except maximum climb thrust may be used during a step climb) and using the
conditions and operating rules defined below, shall not be less than the
following guarantee value for each Aircraft (the "Guaranteed (CONFIDENTIAL
MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) Specific Range"):
         (x) for CF6-80E1A3 engines:

                                  LA5A (GE)-6
<PAGE>

               NOMINAL: 5,311 nm TOLERANCE: 106 nm GUARANTEE: (CONFIDENTIAL
          MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
          COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)nm
         (y) for PW4168A engines:
               NOMINAL: 5,292 nm TOLERANCE: 106 nm GUARANTEE: (CONFIDENTIAL
          MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
          COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)nm
         (z) for Trent 772B engines:
               NOMINAL: 5,312 nm TOLERANCE: 106 nm GUARANTEE: (CONFIDENTIAL
          MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
          COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)nm

         Conditions and operating rules:
         A step climb or multiple step climbs of 4,000 feet altitude may be used
         when beneficial to minimize fuel burn.

2.2      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)SPECIFIC RANGE

         The still air range expressed in nautical miles at an initial cruise
         altitude of 35,000 feet on a standard day at 0.82 Mach number, starting
         at a gross weight of (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)pounds and consuming 140,000 pounds
         of fuel, and using not more than maximum cruise thrust (except maximum
         climb thrust may be used during a step climb) and using the conditions
         and operating rules defined below, shall not be less than the following
         guarantee value (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
         WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)(the "Guaranteed (CONFIDENTIAL MATERIAL OMITTED
         AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
         PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)Specific Range"):
         (x) for CF6-80E1A3 engines:
               NOMINAL: 5,311 nm TOLERANCE: 53 nm GUARANTEE: (CONFIDENTIAL
          MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
          COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) nm
         (y) for PW4168A engines:
               NOMINAL: 5,292 nm TOLERANCE: 53 nm GUARANTEE: (CONFIDENTIAL
          MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
          COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)nm
         (z) for Trent 772B engines:
               NOMINAL: 5,312 nm TOLERANCE: 53 nm GUARANTEE: (CONFIDENTIAL
          MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
          COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)nm

         Conditions and operating rules:
         A step climb or multiple step climbs of 4,000 feet altitude may be used
         when beneficial to minimize fuel burn.

3.       MISSION PAYLOAD RANGE GUARANTEE

                                  LA5A (GE)-7

<PAGE>

For each Aircraft the payload for a stage length of (CONFIDENTIAL MATERIAL
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) nautical miles in still air
(representative of a (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT) route) using the conditions and operating rules defined below, shall
not be less than the following guarantee value in pounds:
         (x) for CF6-80E1A3 engines:
               NOMINAL: 84,600 lb TOLERANCE: 4,100 lb GUARANTEE: (CONFIDENTIAL
          MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
          COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)lb
         (y) for PW4168A engines:
               NOMINAL: 82,900 lb TOLERANCE: 4,100 lb GUARANTEE: (CONFIDENTIAL
          MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
          COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) lb
         (z) for Trent 772B engines:
               NOMINAL: 84,000 lb TOLERANCE: 4,100 lb GUARANTEE: (CONFIDENTIAL
          MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
          COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)lb

         Conditions and operating rules:
         Stage                          The stage length is defined as the sum
         Length:                        of the distances
                                        for climb, cruise, and descent.

         Takeoff:                       The airport altitude is 14 feet.
                                        The takeoff gross weight is 513,677
                                        pounds.

         Climbout                       Following the takeoff to 800 feet, the
         Maneuver:                      aircraft accelerates to 250 KCAS while
                                        climbing to 1,500 feet above the
                                        departure airport altitude and
                                        retracting flaps and landing gear.

         Climb:                         The aircraft climbs from 1,500 feet
                                        above the departure airport altitude to
                                        10,000 feet altitude at 250 KCAS.
                                        The aircraft then accelerates to a climb
                                        speed of 330 KCAS.
                                        The climb continues at 330 KCAS until
                                        0.82 Mach number is reached.
                                        The climb continues at 0.82 Mach number
                                        to the initial cruise altitude at a rate
                                        of climb not less than 300 feet per
                                        minute.
                                        The temperature is standard day during
                                        climb. Maximum climb thrust is used
                                        during climb.

         Cruise:                        The Aircraft cruises at 0.82 Mach
                                        number.
                                        The initial cruise altitude is 35,000
                                        feet. A step climb or multiple step
                                        climb of 4,000 feet altitude may be used
                                        when beneficial to minimize fuel burn.
                                        The temperature is standard day during
                                        cruise.

                                  LA5A (GE)-8
<PAGE>

                                        The cruise thrust is not to exceed
                                        maximum cruise thrust except during a
                                        step climb when maximum climb thrust
                                        may be used.

         Descent:                       The Aircraft descends from the final
                                        cruise altitude at 0.82 Mach number
                                        until 330 KCAS is reached.
                                        The descent continues at 330 KCAS to an
                                        altitude of 10,000 feet.
                                        At that altitude the Aircraft
                                        decelerates to 250 KCAS.
                                        The descent continues at 250 KCAS to an
                                        altitude of 1,500 feet above the
                                        destination airport altitude.
                                        Throughout the descent, the cabin
                                        pressure will be controlled to a maximum
                                        rate of descent equivalent to 350 feet
                                        per minute at sea level.
                                        The temperature is standard day during
                                        descent.

         Approach and                   The Aircraft decelerates to the final
         Landing Maneuver:              approach speed while extending landing
                                        gear and flaps, then descends and lands.

                                        The destination airport altitude is 841
                                        feet.

         Usable Reserve Fuel:           At the end of approach and landing, an
                                        amount of fuel corresponding to the
                                        profile defined below shall remain in
                                        the tanks :

                                        FAR Reserve - 31.5 minutes hold
                                        (representative of 30 minutes hold
                                        with 5% mark-up for racetrack pattern)
                                        at 1500ft, ISA,at actual Zero Fuel
                                        Weight.

                                        Alternate - alternate is assumed to be
                                        67 NM (Rochester, MN).
                                           Fuel burn and time include the
                                           following:
                                           Fuel for takeoff to operational climb
                                           speed with 2 minutes time allowance
                                           and no distance credit
                                           Optimum climb airspeed for fuel
                                           economy
                                           Cruise at LRC at optimum altitude
                                           Optimum descent airspeed for fuel
                                           economy
                                           Approach and land fuel with 5 minutes
                                           time allowance and no distance credit
                                        (alternate fuel will never be less than
                                        fuel to a 15 minute alternate)

                                        International 10% - 10 minutes of fuel
                                        at end of cruise altitude, LRC, ISA,
                                        actual landing weight.

                                        Contingency (Holding) - 21 minutes hold
                                        (representative of 20 minutes hold with
                                        5% mark-up for racetrack pattern),
                                        FL150, ISA, actual landing weight.

         Fixed Allowances:              For the purpose of this guarantee and
                                        for the purpose of establishing
                                        compliance with this guarantee, the
                                        following shall be used as fixed
                                        quantities and allowances:

         Engine Start and Taxi-out:     800 pounds of fuel

                                  LA5A (GE)-9
<PAGE>

         Takeoff and Climbout Maneuver: 1,650 pounds of fuel for mission
                                        departure and 1,150 pounds of fuel for
                                        alternate

         Approach and Landing Maneuver: 420 pounds of fuel for mission and 420
                                        pounds of fuel for alternate

                                        Taxi-in (shall be consumed from the
                                        reserve fuel): 500 pounds of fuel

         The Operating Weight Empty (OWE) derived in Subparagraph 4.2 of this
         Part A is the basis for this mission guarantee.

4.       WEIGHT GUARANTEES

4.1      MANUFACTURER'S WEIGHT EMPTY

         The Seller guarantees that the Manufacturer's Weight Empty (as defined
         in the A330-300 Standard Specification set forth in the Preamble) of
         each Aircraft as defined in the Preamble, which will be derived from
         the weighing of each Aircraft, shall not be more than:
         (x) for CF6-80E1A3 engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)pounds for any (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)Aircraft
         (y) for PW4168A engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)pounds for any (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)Aircraft
         (z) for Trent 772B engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)pounds for ANY(CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) Aircraft

         and shall not be more than:
         (x) for CF6-80E1A3 engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)pounds for (CONFIDENTIAL MATERIAL
         OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)
         (y) for PW4168A engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)pounds for(CONFIDENTIAL MATERIAL
         OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)
         (z) for Trent 772B engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)pounds for (CONFIDENTIAL MATERIAL
         OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)

                                  LA5A (GE)-10
<PAGE>

4.2      STRUCTURAL USABLE LOAD

         The Seller guarantees that the excess of the Maximum Zero Fuel Weight
         (as defined in the A330-300 Standard Specification set forth in the
         Preamble) of each Aircraft as defined in the Preamble over the
         Operating Weight Empty (as defined below) of such Aircraft, shall not
         be less than:
         (x) for CF6-80E1A3 engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)pounds for any (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
         EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)
         Aircraft
         (y) for PW4168A engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)pounds for any(CONFIDENTIAL MATERIAL
         OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)Aircraft
         (z) for Trent 772B engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)pounds for ANY(CONFIDENTIAL MATERIAL
         OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) Aircraft

         and shall not be less than:
         (x) for CF6-80E1A3 engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)pounds for the (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)
         (y) for PW4168A engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)pounds for the (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)
         (z) for Trent 772B engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)pounds for the (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)

         Operating Weight Empty is the sum of the Manufacturer's Weight Empty
         (as defined in the Type Specification set forth in the Preamble) plus
         the following fixed allowances:

         (x) for CF6-80E1A3 engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)pounds for customer changes
         (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)pounds for operator items
         (y) for PW4168A engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)pounds for customer changes

                                  LA5A (GE)-11
<PAGE>

                                     (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)pounds for operator items

         (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)pounds for operator items
         (z) for Trent 772B engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)pounds for customer changes

5.       GENERAL GUARANTEE CONDITIONS

5.1      AIRCRAFT CONFIGURATION

         Seller reserves the right to make reasonable and appropriate
         adjustments to the guarantees set forth in this Part A for any
         configuration change or deviation from the A330-300 Standard
         Specification which is agreed between Buyer and Seller subsequent to
         the date hereof, provided that any such adjustment is made
         contemporaneously with such A330-300 Standard Specification change or
         deviation.

5.2      PERFORMANCE DEFINITIONS

5.2.1    Performance and noise certification rules will be those required to
         obtain FAR certification under the FAA Airworthiness Code as defined in
         the Type Specification.

5.2.2    All performance data is based on the International Standard Atmosphere
         and specified variations. Unless otherwise stated all altitudes are
         pressure altitudes.

5.2.3    Unless otherwise stated, take-off and landing performance is based upon
         a hard, smooth, dry and level runway surface with zero wind, and
         assumes no line-up allowance.

5.2.4    Take-off and landing performance is based on the brakes and tires as
         specified in the aircraft configuration defined in the Preamble.

5.2.5    Devices such as flaps, landing gear, speed brakes, wheel brakes,
         anti-skid and engines will be employed in the manner which provides the
         best performance standard consistent with approved operations.

5.2.6    All guaranteed performance in this Part A is based upon no air bleed
         from the engines for airframe or engine anti-icing.

5.2.7    For take-off and take-off climb performance, landing and landing climb
         performance, no air will be bled from the engine for air conditioning.

5.2.8    For en route performance, engine bleeds consistent with normal
         operation of the air conditioning system, including recirculation, are
         assumed.

5.2.9    Normal electrical services will be in use consistent with the typical
         load schedule given in the A330-300 Standard Specification.

                                  LA5A (GE)-12
<PAGE>

5.2.10   All guaranteed performance in this Part A assumes the use of approved
         fuel with a Lower Heating Value (the "LHV") of 18,590 BTU/lb and with a
         specific gravity of 6.7 pounds/gallon as such.

5.2.11   The speed, specific range and all-engine climb guarantees and the
         climb, cruise and descent portions of the mission guarantees are based
         on an Aircraft center of gravity location of 33 percent of the mean
         aerodynamic chord.

5.3      COMPLIANCE

5.3.1    The Seller shall provide to Buyer a guarantee compliance report
         providing the compliance data for each Aircraft (the "Guarantee
         Compliance Report"), in a timely manner after final data is collected,
         but in no event later than ten (10) Working Days after acceptance by
         Buyer of the Aircraft. The Guarantee Compliance Report shall contain
         compliance results determined in accordance with this Subparagraph 5.3.

5.3.2    Compliance with the en-route one engine inoperative, takeoff
         performance and landing distance guarantees will be demonstrated with
         reference to performance data contained in the approved Flight Manual.
         Compliance with climb performance and speed will be demonstrated with
         reference to the IFP Level.

5.3.3    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

         a)       (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         b)       (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         c)       (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         d)       (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         e)       (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         f)       (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

5.3.4    The actual (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR

                                  LA5A (GE)-13
<PAGE>

         CONFIDENTIAL TREATMENT)Aircraft specific range, used for determining
         compliance with the fuel burn and mission payload guarantees, will be
         defined as the IFP Level corrected by the Correction Factor.

5.3.5    The actual (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)specific range, used for determining compliance
         with the fuel burn guarantee, will be defined upon delivery of each
         individual Aircraft as (CONFIDENTIAL

<PAGE>

         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)

5.3.6    Compliance with fuel burn guarantees shall be determined as follows:

         (i)    with respect to each Aircraft, if its actual (CONFIDENTIAL
                MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
                EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                TREATMENT)Aircraft specific range meets the guarantee level set
                forth in Subparagraph 2.1 of this Part A.

         (ii)   with respect to the(CONFIDENTIAL MATERIAL OMITTED AND FILED
                SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
                TO A REQUEST FOR CONFIDENTIAL TREATMENT), if, upon delivery of
                any Aircraft, the (CONFIDENTIAL MATERIAL OMITTED AND FILED
                SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
                TO A REQUEST FOR CONFIDENTIAL TREATMENT)specific range meets the
                guarantee level set forth in Subparagraph 2.2 of this Part A.
                (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                CONFIDENTIAL TREATMENT)

5.3.7    Compliance with the mission payload guarantee, as defined in Paragraph
         3 of this Part A, will be based on the actual individual Aircraft
         specific range as defined in Subparagraph 5.3.4 of this Part A and the
         actual Manufacturer's Weight Empty of the applicable Aircraft as
         determined pursuant to Subparagraph 5.3.8 of this Part A.

5.3.8    Compliance with the weight guarantees set forth in Subparagraphs 4.1
         and 4.2 of this Part A shall be demonstrated in a weight compliance
         report with reference to actual aircraft weighing results.

6        ADJUSTMENT OF GUARANTEES

         Should any change be made to any law, governmental regulation or
         requirement or interpretation thereof ("Rule Change") by any
         governmental agency subsequent to the date of the Agreement, and should
         such Rule Change (i) more than minimally affect the Aircraft
         configuration or performance or both, and (ii) be required to obtain
         the Standard Airworthiness Certificate for the Aircraft, the guarantees
         set forth herein shall be appropriately modified to reflect the
         effect(s) of any such Rule Change(s).

7.       EXCLUSIVE GUARANTEES

         The guarantees set forth in this Part A supersede any similar
         guarantees from Seller that may be stated in the A330-300 Standard
         Specification or any other document, except for the guarantees set
         forth in Part B of this Letter Agreement.

                                  LA5A (GE)-14
<PAGE>

8.       REMEDIES

8.1      GENERAL

8.1.1    In the event that the Seller fails to demonstrate compliance by one or
         more Aircraft (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH
         THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)with any of the guarantees set forth in this
         Part A, the Seller shall

         (i)      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         (ii)     (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

8.1.2    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

8.1.3    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

8.1.4    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

8.1.5    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

8.1.6    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

8.2      FUEL BURN

         The Compensation for failure to comply with either the guarantee set
         forth in Subparagraph 2.1 or Subparagraph 2.2 of this Part A shall be
         (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

8.2.1    DEFICIENCY OF (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH
         THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)AIRCRAFT

         In the event that an (CONFIDENTIAL MATERIAL OMITTED AND FILED
                  SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
                  PURSUANT TO A REQUEST FOR

                                  LA5A (GE)-15
<PAGE>

                  CONFIDENTIAL TREATMENT)Aircraft fails to comply with the
                  guarantee set forth in Subparagraph 2.1 of this Part A, the
                  amount of Compensation (CONFIDENTIAL MATERIAL OMITTED AND
                  FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
                  PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)

8.2.2    DEFICIENCY OF AIRCRAFT FLEET

         In the event that the (CONFIDENTIAL MATERIAL OMITTED AND FILED
                  SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
                  PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)fails to
                  comply with the guarantee set forth in Subparagraph 2.2 of
                  this Part A, the amount of Compensation (CONFIDENTIAL MATERIAL
                  OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
                  COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)

8.3      PAYLOAD

         The Compensation for failure to comply with either the guarantees set
         forth in Subparagraph 1.3, Paragraph 3 or Subparagraph 4.2 of Part A of
         this Letter Agreement shall be (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)

8.3.1    MISSION PAYLOAD RANGE

         In the event that any Aircraft fails to meet the mission payload range
         guarantee in Paragraph 3 of this Part A, the amount of Compensation
         (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

8.3.2    STRUCTURAL USABLE LOAD

         In the event that any Aircraft (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)fail to meet the guarantee levels
         specified in Subparagraph 4.2 of this Part A, the Compensation shall
         BE(CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)

(i)      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

         (ii)     (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

8.3.3    TAKE-OFF

         In the event that an Aircraft fails to meet the take-off guarantees set
         forth in Subparagraph 1.3 of this Part A, the amount of Compensation
         shall be (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT). The amount of

                                  LA5A (GE)-16
<PAGE>

         Compensation hereunder shall (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)

8.3.4    LANDING

         In the event that an Aircraft fails to meet the landing guarantee set
         forth in Subparagraph 1.5 of this Part A, the amount of Compensation
         shall be(CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT), provided that the Buyer demonstrates to the
         Seller that such deficiency adversely impacts the Buyer's operation of
         the affected Aircraft.

8.4      MANUFACTURER'S WEIGHT EMPTY

In the event that the Manufacturer's Weight Empty (MWE) of an (CONFIDENTIAL
MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)Aircraft or of the
(CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) exceeds
the guarantee levels specified in Subparagraph 4.1 of this Part A the amount of
Compensation shall be (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT).

8.5      SPEED

         In the event that an Aircraft fails to meet the speed guarantee set
         forth in Subparagraph 1.1 of this Part A, the amount of Compensation
         shall be(CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT), subject to the limitations and conditions set
         forth in Subparagraph 8.8 of this Part A, provided that the Buyer
         demonstrates to the Seller that such deficiency adversely impacts the
         Buyer's operation of the affected Aircraft.

8.6      ONE ENGINE INOPERATIVE

         In the event that an Aircraft fails to meet the one engine inoperative
         guarantee set forth in Subparagraph 1.2 of this Part A, the amount of
         Compensation shall be(CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT), subject to the limitations and
         conditions set forth in Subparagraph 8.8 of this Part A, provided that
         the Buyer demonstrates to the Seller that such deficiency adversely
         impacts the Buyer's operation of the affected Aircraft.

8.7      ALL ENGINE CLIMB

         In the event that an Aircraft fails to meet the all engine climb
         guarantee set forth in Subparagraph 1.4 of this Part A, the amount of
         Compensation shall be(CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT), subject to the limitations and
         conditions set forth in Subparagraph 8.8 of this Part A, provided that
         the

                                  LA5A(GE)-17
<PAGE>

         Buyer demonstrates to the Seller that such deficiency adversely impacts
         the Buyer's operation of the affected Aircraft.

8.8      LIMITATIONS AND CONDITIONS

         (i)      The Seller shall have the right to review and verify data
                  collected by the Buyer, which is provided to Seller for Seller
                  to perform the calculations of Compensation due hereunder.

         (ii)     If at any time following delivery of an Aircraft the Seller
                  restores the required performance level of an Aircraft which
                  has initially failed to meet the performance guarantee
                  requirements of Paragraphs 1, 2, 3 or 4 of this Part A, and
                  the Seller demonstrates compliance for such specific Aircraft
                  in accordance with the applicable compliance provisions of
                  this Part A, all further payments of Compensation required
                  under this Part A with respect to such initial failure shall
                  cease and the Seller shall have no further obligation to the
                  Buyer under this Part A for such initial failure in respect of
                  such Aircraft. Seller shall demonstrate compliance
                  by(CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT), gathering data and producing a
                  Guarantee Compliance Report which demonstrates compliance for
                  such specific Aircraft in accordance with the applicable
                  compliance provisions of this Part A. The compliance level
                  achieved by such Aircraft shall be taken into account for all
                  (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)calculations for the purposes of this
                  Part A.

         (iii)    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         (iv)     (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         (v)      The Seller's maximum liability (CONFIDENTIAL MATERIAL OMITTED
                  AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
                  COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)

                  (x)      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
                           WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
                           TO A REQUEST FOR CONFIDENTIAL TREATMENT)
                  (y)      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
                           WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
                           TO A REQUEST FOR CONFIDENTIAL TREATMENT)

         (vi)     (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)as aforesaid shall be deemed to settle
                  any and all claims and remedies of the Buyer against the
                  Seller under this Part A provided that the Seller has first
                  endeavored to restore the required performance as per
                  Paragraph 8.1.1(i) above, but shall not settle or modify in
                  any respect any other claim or remedy

                                  LA5A(GE)-18
<PAGE>

                  of the Buyer against the Seller. Nothing in this Paragraph
                  8.8 (vi) shall oblige the Seller to (CONFIDENTIAL MATERIAL
                  OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
                  COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)

                                  LA5A(GE)-19
<PAGE>

               PART B     A330-300 (CONFIDENTIAL MATERIAL OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT)GUARANTEES

                  Seller hereby extends and grants to Buyer the (CONFIDENTIAL
                  MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
                  EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                  TREATMENT)guarantees with respect to the Aircraft set forth in
                  this Part B of this Letter Agreement, subject to the terms,
                  conditions, limitations and restrictions all as hereinafter
                  set out.

                  PREAMBLE

                  A.  Assumptions:

                  The guarantees defined below in this Part B are applicable to
                  each A330-300 Aircraft as described in the A330-300 Standard
                  Specification Ref. G 000 03000 Issue 6 Revision 1, dated 15th
                  July 1998, amended by Specification Change Notices ("SCN")
                  (the "Specification") for:

                  i)       increase of design weights
                           Maximum Taxi Weight: (CONFIDENTIAL MATERIAL OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT)pounds
                           Maximum Takeoff Weight: (CONFIDENTIAL MATERIAL
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)pounds
                           Maximum Landing Weight: (CONFIDENTIAL MATERIAL
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)pounds
                           Maximum Zero Fuel Weight: (CONFIDENTIAL MATERIAL
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)pounds

                      ii)      fitting of:
                               General Electric CF6-80E1A3 engines.

                  These guarantees are comprehensive including the performance
                  of both the airframe and engine in combination.

                      For information only:
                      For establishing uncertified performance these guarantees
                      have been based on the In Flight Performance level
                      relevant at the date of the signature of the Purchase
                      Agreement (the "IFP Level") and consistent with the
                      Aircraft Performance Document (the "Orange Book") ref.
                      AI/CM-T P3302 Issue 3.

                  B.  Definitions:

                                  LA5A(GE)-20
<PAGE>

                      (i)      For the purpose of this Part B of this Letter
                               Agreement only, the term "Aircraft" is defined as
                               any and all of the A330-300 model aircraft to be
                               purchased by the Buyer under the Agreement.

                      (ii)     (CONFIDENTIAL MATERIAL OMITTED AND FILED
                               SEPARATELY WITH THE SECURITIES AND EXCHANGE
                               COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                               TREATMENT)

                                  LA5A(GE)-21
<PAGE>

1.       GENERAL PROVISIONS

1.1      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

1.2      The (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)Guarantees in this Part B are contingent upon:

         -        (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

1.3      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

         (i)      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         (ii)     (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         (iii)    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         (iv)     (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         (v)      (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT).

2.       FUEL BURN GUARANTEE

2.1      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT) (expressed as a percentage) determined in accordance with
         the In-Flight Performance Program (IFP).

2.2      The Seller guarantees to the Buyer that the (CONFIDENTIAL MATERIAL
         OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) shall not
         be worse than the IFP Level

                                  LA5A(GE)-22
<PAGE>

(CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT).

3.       MISSION PAYLOAD GUARANTEE

         The (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT) as stated in Paragraph 2.2 of this Part B shall
         allow the carrying of a guaranteed payload of not less than:

         (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
                AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                TREATMENT)

                over an equivalent still air stage distance of (CONFIDENTIAL
                MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
                EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                TREATMENT)nautical miles (assumed representative of
                (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                CONFIDENTIAL TREATMENT)for a winter operation) when operated
                under the conditions described below.

         a)     If the (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH
                THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                CONFIDENTIAL TREATMENT) as stated in Subparagraph 2.2 of this
                Part B is modified according to Subparagraph 1.3 of this PART B,
                the above guaranteed payload shall be modified accordingly,
                using the following relationship:

                (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                CONFIDENTIAL TREATMENT)

         b)     Available takeoff weight is assumed to be (CONFIDENTIAL MATERIAL
                OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
                COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                TREATMENT)pounds.

         c)     The destination airport conditions are such as to allow the
                required landing weight to be used without performance
                restrictions and without exceeding the Maximum Landing Weight as
                defined in Type Specification referenced in the Preamble.

         d)     Conditions and operating rules:
                Stage                   The stage length is defined as the sum
                Length:                 of the distances for climb, cruise, and
                                        descent.

                Takeoff:                The airport altitude is 14 feet. The
                                        takeoff gross weight is (CONFIDENTIAL
                                        MATERIAL OMITTED AND FILED SEPARATELY
                                        WITH THE SECURITIES AND EXCHANGE
                                        COMMISSION PURSUANT TO A REQUEST FOR
                                        CONFIDENTIAL TREATMENT)pounds.

                                  LA5A(GE)-23
<PAGE>

                Climbout                Following the takeoff to 800 feet, the
                Maneuver:               aircraft accelerates to 250 KCAS while
                                        climbing to 1,500 feet above the
                                        departure airport altitude and
                                        retracting flaps and landing gear.

                Climb:                  The aircraft climbs from 1,500 feet
                                        above the departure airport altitude to
                                        10,000 feet altitude at 250 KCAS. The
                                        aircraft then accelerates to a climb
                                        speed of 330 KCAS. The climb continues
                                        at 330 KCAS until 0.82 Mach number is
                                        reached. The climb continues at 0.82
                                        Mach number to the initial cruise
                                        altitude at a rate of climb not less
                                        than 300 feet per minute. The
                                        temperature is standard day during
                                        climb. Maximum climb thrust is used
                                        during climb.

                Cruise:                 The Aircraft cruises at 0.82 Mach
                                        number. The initial cruise altitude is
                                        35,000 feet. A step climb or multiple
                                        step climb of 4,000 feet altitude may be
                                        used when beneficial to minimize fuel
                                        burn. The temperature is standard day
                                        during cruise. The cruise thrust is not
                                        to exceed maximum cruise thrust except
                                        during a step climb when maximum climb
                                        thrust may be used.

                Descent:                The Aircraft descends from the final
                                        cruise altitude at 0.82 Mach number
                                        until 330 KCAS is reached. The descent
                                        continues at 330 KCAS to an altitude of
                                        10,000 feet. At that altitude the
                                        Aircraft decelerates to 250 KCAS. The
                                        descent continues at 250 KCAS to an
                                        altitude of 1,500 feet above the
                                        destination airport altitude. Throughout
                                        the descent, the cabin pressure will be
                                        controlled to a maximum rate of descent
                                        equivalent to 350 feet per minute at sea
                                        level. The temperature is standard day
                                        during descent.

                Approach and            The Aircraft decelerates to the final
                Landing Maneuver:       approach speed while extending landing
                                        gear and flaps, then descends and lands.

                                        The destination airport altitude is 841
                                        feet.

                Usable Reserve Fuel:    At the end of approach and landing, an
                                        amount of fuel defined as follows shall
                                        remain in the tanks:

                                        FAR Reserve - 31.5 minutes hold
                                        (representative of 30 minutes hold with
                                        5% mark-up for racetrack pattern) at
                                        1500ft, ISA,at actual Zero Fuel Weight.

                                    Alternate - alternate is assumed to be 67 NM
                                    (Rochester, MN). Fuel burn and time include
                                    the following:
                                    Fuel for takeoff to operational climb speed
                                    with 2 minutes time allowance and no
                                    distance credit
                                    Optimum climb airspeed for fuel economy
                                    Cruise at LRC at optimum altitude

                                  LA5A(GE)-24
<PAGE>

                                    Optimum descent airspeed for fuel
                                    economy Approach and land fuel with 5
                                    minutes time allowance and no distance
                                    credit (alternate fuel will never be less
                                    than fuel to a 15 minute alternate)

                                    International 10% - 10 minutes of fuel at
                                    end of cruise altitude, LRC, ISA, actual
                                    landing weight.

                                    Contingency (Holding) - 21 minutes hold
                                    (representative of 20 minutes hold with 5%
                                    mark-up for racetrack pattern), FL150, ISA,
                                    actual landing weight.

                Fixed Allowances:       For the purpose of this guarantee and
                                        for the purpose of establishing
                                        compliance with this guarantee, the
                                        following shall be used as fixed
                                        quantities and allowances:

                                        Engine Start and Taxi-out: (CONFIDENTIAL
                                            MATERIAL OMITTED AND FILED
                                            SEPARATELY WITH THE SECURITIES
                                            AND EXCHANGE COMMISSION PURSUANT TO
                                            A REQUEST FOR CONFIDENTIAL
                                            TREATMENT) pounds of fuel

                                        Takeoff and Climbout Maneuver:
                                            (CONFIDENTIAL MATERIAL OMITTED AND
                                            FILED SEPARATELY WITH THE SECURITIES
                                            AND EXCHANGE COMMISSION PURSUANT TO
                                            A REQUEST FOR CONFIDENTIAL
                                            TREATMENT)pounds of fuel for mission
                                            departure and (CONFIDENTIAL MATERIAL
                                            OMITTED AND FILED SEPARATELY WITH
                                            THE SECURITIES AND EXCHANGE
                                            COMMISSION PURSUANT TO A REQUEST FOR
                                            CONFIDENTIAL TREATMENT) pounds of
                                            fuel for alternate

                                        Approach and Landing Maneuver:
                                            (CONFIDENTIAL MATERIAL OMITTED AND
                                            FILED SEPARATELY WITH THE SECURITIES
                                            AND EXCHANGE COMMISSION PURSUANT TO
                                            A REQUEST FOR CONFIDENTIAL
                                            TREATMENT)pounds of fuel for
                                            mission and (CONFIDENTIAL MATERIAL
                                            OMITTED AND FILED SEPARATELY WITH
                                            THE SECURITIES AND EXCHANGE
                                            COMMISSION PURSUANT TO A REQUEST
                                            FOR CONFIDENTIAL TREATMENT) pounds
                                            of fuel for alternate

                                        Taxi-in (shall be consumed from the
                                            reserve fuel): (CONFIDENTIAL
                                            MATERIAL OMITTED AND FILED
                                            SEPARATELY WITH THE SECURITIES AND
                                            EXCHANGE COMMISSION PURSUANT TO A
                                            REQUEST FOR CONFIDENTIAL TREATMENT)
                                            pounds of fuel

         e)     The mission payload guarantee is based on an Operating Weight
                Empty (OWE) composed of the actual Aircraft Fleet average
                Manufacturer's Weight Empty (MWE) as

                                  LA5A(GE)-25
<PAGE>

                demonstrated at delivery of the Aircraft Fleet (but in no event
                more than (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
                WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
                REQUEST FOR CONFIDENTIAL TREATMENT)pounds) plus the following
                fixed allowances:

                      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH
                      THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
                      REQUEST FOR CONFIDENTIAL TREATMENT)pounds for customer
                      changes (CONFIDENTIAL MATERIAL OMITTED AND FILED
                      SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
                      PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)pounds
                      for operator items (CONFIDENTIAL MATERIAL OMITTED AND
                      FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
                      COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                      TREATMENT)pounds for in-service growth

4.       GENERAL GUARANTEE CONDITIONS

4.1      AIRCRAFT CONFIGURATION

         Seller reserves the right to make reasonable and appropriate
         adjustments to the guarantees in this Part B for any configuration
         change or deviation from the Specification which is agreed between
         Buyer and Seller subsequent to the date hereof, provided that any such
         adjustment is made contemporaneously with such Specification change or
         deviation.

4.2      COMPLIANCE

4.2.1    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

4.2.2    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

         a)       (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         b)       (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         c)       (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         d)       (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

4.2.3    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

                                  LA5A(GE)-26
<PAGE>

4.2.4    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

4.2.5    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

4.2.6    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

4.2.7    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

4.2.8    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

4.2.9    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

5.       REMEDIES

5.1      GENERAL
         In the event that the (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)exceeds the guaranteed levels set
         forth in Subparagraph 2.2 of this Part B, then the Buyer and the Seller
         (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

                  (i)      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
                           WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
                           TO A REQUEST FOR CONFIDENTIAL TREATMENT)

                  (ii)     (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
                           WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
                           TO A REQUEST FOR CONFIDENTIAL TREATMENT)

5.1.2    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

5.1.3    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

5.2      FUEL BURN(CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)-

                                   LA5A (GE)-27
<PAGE>
         In the event that the (CONFIDENTIAL MATERIAL OMITTED AND FILED
                  SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
                  PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)fails to
                  comply with the guarantee set forth in Subparagraph 2.2 of
                  this Part B, (CONFIDENTIAL MATERIAL OMITTED AND FILED
                  SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
                  PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)

5.3      MISSION PAYLOAD RANGE

         In the event that the (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)fails to meet the mission payload
         range guarantee set forth in Paragraph 3 of this Part B, (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)

5.4      LIMITATIONS AND CONDITIONS

         (i)      The Seller shall have the right to review and verify data
                  collected by the Buyer, which is provided to Seller for Seller
                  to perform the calculations of compensation due hereunder.

         (ii)     (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         (iii)    The Seller's maximum liability pursuant to (CONFIDENTIAL
                  MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
                  EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                  TREATMENT)

                  (x)      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
                           WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
                           TO A REQUEST FOR CONFIDENTIAL TREATMENT)

                  (y)      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
                           WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
                           TO A REQUEST FOR CONFIDENTIAL TREATMENT)

         (iv)     (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)as aforesaid shall be deemed to settle
                  any and all claims and remedies of the Buyer against the
                  Seller under this Part B (CONFIDENTIAL MATERIAL OMITTED AND
                  FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
                  PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)but shall not
                  settle or modify in any respect any other claim or remedy of
                  the Buyer against the Seller. Nothing in this Paragraph 5.4
                  (iv) shall (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
                  WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
                  REQUEST FOR CONFIDENTIAL TREATMENT)

         (v)      The intent of Part B of this Letter Agreement is to provide
                  benefits to the Buyer as a result of the failure of the
                  Buyer's Aircraft to achieve the performance level stipulated

                                   LA5A (GE)-28
<PAGE>

                  in the guarantees set forth in this Part B. It is not the
                  intent, however, to duplicate benefits provided to the Buyer
                  by the Seller under Part A of this Letter Agreement as a
                  result of the same failure. (CONFIDENTIAL MATERIAL OMITTED AND
                  FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
                  PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)

UNQUOTE

         THIS LETTER AGREEMENT SETS FORTH THE EXCLUSIVE GUARANTEES, WARRANTIES,
         EXCLUSIVE LIABILITIES AND EXCLUSIVE OBLIGATIONS OF AVSA, AND THE
         EXCLUSIVE REMEDIES AVAILABLE TO NORTHWEST, ARISING FROM (BUT SOLELY TO
         THE EXTENT ARISING FROM) ANY FAILURE OF ANY AIRCRAFT (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)TO
         DEMONSTRATE COMPLIANCE WITH ANY OF THE GUARANTEES SET FORTH IN THIS
         LETTER AGREEMENT, INCLUDING BUT NOT LIMITED TO ANY IMPLIED WARRANTY OF
         MERCHANTABILITY OR FITNESS, ANY IMPLIED WARRANTY ARISING FROM COURSE OF
         PERFORMANCE, COURSE OF DEALING OR USAGE OF TRADE, ANY OBLIGATION OR
         LIABILITY OF AVSA OR ANY RIGHT, CLAIM OR REMEDY OF BUYER IN CONTRACT OR
         IN TORT, WHETHER OR NOT ARISING FROM SELLER'S NEGLIGENCE, ACTUAL OR
         IMPUTED, INTENTIONAL ACT, OR STRICT LIABILITY AND ANY OBLIGATION OR
         LIABILITY OF SELLER OR ANY RIGHT, CLAIM OR REMEDY OF BUYER FOR LOSS OF
         OR DAMAGE TO ANY AIRCRAFT, COMPONENT, EQUIPMENT, ACCESSORY OR PART, FOR
         LOSS OF USE, REVENUE OR PROFIT WITH RESPECT TO ANY AIRCRAFT, COMPONENT,
         EQUIPMENT, ACCESSORY OR PART, OR FOR ANY OTHER DIRECT, INCIDENTAL OR
         CONSEQUENTIAL DAMAGES, PROVIDED THAT IN THE EVENT THAT ANY OF THE
         AFORESAID PROVISIONS SHOULD FOR ANY REASON BE HELD UNLAWFUL OR
         OTHERWISE INEFFECTIVE THE REMAINDER OF THIS PARAGRAPH SHALL REMAIN IN
         FULL FORCE AND EFFECT AND PROVIDED, FURTHER, THAT NOTHING IN THIS
         LETTER AGREEMENT SHALL BE DEEMED TO MODIFY, SETTLE, COMPROMISE, LIMIT,
         RELEASE OR OTHERWISE AFFECT ANY OTHER CLAIM, RIGHT OR REMEDY OF
         NORTHWEST AGAINST AVSA OR THE MANUFACTURER. THE GUARANTEES SET FORTH IN
         THIS LETTER AGREEMENT SHALL NOT BE EXTENDED, ALTERED OR VARIED EXCEPT
         BY A WRITTEN INSTRUMENT SIGNED BY AVSA AND NORTHWEST.

         ASSIGNMENT

         Notwithstanding any other provision of this Letter Agreement or of the
         Agreement, this Letter Agreement and the rights and obligations of
         Northwest hereunder shall not be assigned or transferred in any manner
         without the prior written consent of AVSA, and any attempted assignment
         or transfer in contravention of the provisions of this paragraph shall
         be void and of no force or effect.

                                   LA5A (GE)-29
<PAGE>

If the foregoing correctly sets forth our understanding, please execute the
original and one (1) copy hereof in the space provided below and return a copy
to AVSA.

                                              Very truly yours,

                                              AVSA, S.A.R.L.

                                              By:  /s/ Francois Bensier
                                                   _____________________________

                                              Its: AVSA Chief Executive Officer
                                                   _____________________________

Accepted and Agreed

NORTHWEST AIRLINES, INC.

By:  /s/ Gregory A. May
     ____________________________________

Its: Vice President Aircraft Transactions
     ____________________________________

                                                                      APPENDIX 1

(CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
         EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)
         (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)(CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)

                                   LA5A (GE)-30
<PAGE>

                             LETTER AGREEMENT NO 5B

                                                         As of December 21, 2000

Northwest Airlines, Inc.
2700 Lone Oak Parkway
Eagan, Minnesota 55121

Re:      PERFORMANCE GUARANTEES FOR PRATT & WHITNEY POWERED AIRCRAFT

Ladies and Gentlemen:

         Northwest Airlines, Inc., ("Northwest") and AVSA, S.A.R.L. ("Seller"),
have entered into an A330 Purchase Agreement, dated as of even date herewith
(the "Agreement"), which covers, among other matters, the sale by Seller and the
purchase by Northwest of certain Aircraft, under the terms and conditions set
forth in said Agreement. Northwest and Seller have agreed to set forth in this
Letter Agreement No. 5B (the "Letter Agreement") certain additional terms and
conditions regarding the sale of the Aircraft. Capitalized terms used herein and
not otherwise defined in this Letter Agreement shall have the meanings assigned
thereto in the Agreement. The terms "herein," "hereof" and "hereunder" and words
of similar import refer to this Letter Agreement.

         Both parties agree that this Letter Agreement shall constitute an
integral, nonseverable part of said Agreement, that the provisions of said
Agreement are hereby incorporated herein by reference, and that this Letter
Agreement shall be governed by the provisions of said Agreement, except that if
the Agreement and this Letter Agreement have specific provisions that are
inconsistent, the specific provisions contained in this Letter Agreement shall
govern.

         AVSA represents and warrants that the Manufacturer has provided to AVSA
the following performance guarantees with respect to the Aircraft, subject to
the terms, conditions, limitations and restrictions all as hereinafter set out,
and that such guarantees are in full force and effect and have not been amended.
AVSA hereby assigns to Northwest and Northwest hereby accepts, all of AVSA's
rights and obligations as the "Buyer" under the said performance guarantees and
AVSA subrogates Northwest to all such rights and obligations in respect of the
Aircraft. AVSA hereby warrants to Northwest that (i) it has all the requisite
authority to make the foregoing assignment to and effect the foregoing
subrogation in favor of Northwest, (ii) such assignment and subrogation are
effective to confer on Northwest all of the foregoing rights and obligations of
AVSA, and (iii) AVSA shall not enter into any amendment of the provisions so
assigned or subrogated without the prior written consent of Northwest.

         It is understood that, in the provisions below between the words QUOTE
and UNQUOTE, capitalized terms have the meanings assigned thereto in this
Agreement, except that (i) the term "Seller," which means the Manufacturer as
between the Manufacturer and AVSA, also means the Manufacturer in this
Agreement, and (ii) the term "Buyer," which means AVSA as between the
Manufacturer and the Seller, means Northwest.

                                   LA5B (PW)-1
<PAGE>

QUOTE

PART A                      A330-300 PERFORMANCE GUARANTEES

         PREAMBLE

         A.   Assumptions:

              The guarantees defined below in this Part A are applicable at the
              time of delivery to each A330-300 as described in the A330-300
              Standard Specification Ref. G 000 03000 Issue 6 Revision 1, dated
              15th July 1998, amended by Specification Change Notices ("SCN")
              for:

              i)      increase of design weights

                      Maximum Taxi Weight: (CONFIDENTIAL MATERIAL OMITTED AND
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT)pounds
                      Maximum Takeoff Weight: (CONFIDENTIAL MATERIAL OMITTED AND
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT)pounds
                      Maximum Landing Weight: (CONFIDENTIAL MATERIAL OMITTED AND
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT)pounds
                      Maximum Zero Fuel Weight: (CONFIDENTIAL MATERIAL OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT)pounds

              ii)     fitting of either:
                      (x) General Electric CF6-80E1A3 engines
                      (y) Pratt and Whitney PW4168A engines with Kevlar fan case
                      (z) Rolls-Royce Trent 772B engines except where otherwise
                      noted.

              These guarantees are comprehensive including the performance of
              both the airframe and engine in combination.

              For information only:

              For establishing FAA certified performance these guarantees have
              been based on:

              (x) the FAA certified Flight Manual of the A330-200 fitted with
              General Electric CF6-80E1A4 engines plus best estimated
              corrections for longer fuselage of the A330-300 and higher
              take-off thrust of the CF6-80E1A3 engines

              (y) the FAA certified Flight Manual of the A330-300 fitted with
              Pratt and Whitney PW4168A engines

              (z) the FAA certified Flight Manual of the A330-300 fitted with
              Rolls Royce Trent 772B engines,

                                   LA5B (PW)-2
<PAGE>

              with, in each case, a take-off thrust rating flat rated to 86
              (degree)F (ISA+15(degree)C) at sea level.

              For establishing uncertified performance these guarantees have
              been based on the In Flight Performance level relevant at the date
              of signature of the Purchase Agreement (the "IFP Level") and
              consistent with the Aircraft Performance Document (the "Orange
              Book")

              (x)     for CF6-80E1A3 engines : ref. AI/CM-T P3302 Issue 3
              (y)     for PW4168A engines : ref. AI/CM-T P3322 Issue 3
              (z)     for Trent 772B engines : ref. AI/CM-T P3342 Issue 3

         D.   Definitions:

              (i)     For the purpose of this Part A of this Letter Agreement
                      only, the term "Aircraft" is defined as any and all of the
                      A330-300 model aircraft to be acquired by the Buyer under
                      the Agreement.

              (ii)    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH
                      THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
                      REQUEST FOR CONFIDENTIAL TREATMENT)

1.       GUARANTEED PERFORMANCE

1.1      SPEED

         The level flight airspeed at an Aircraft gross weight of 460,000 pounds
         at a pressure altitude of 35,000 feet using maximum cruise thrust in
         ISA conditions shall not be less than a true Mach number of:
         (x) for CF6-80E1A3 engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)
         (y) for PW4168A engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)
         (z) for Trent 772B engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)

1.2      EN-ROUTE ONE ENGINE INOPERATIVE

         Each Aircraft shall meet minimum en-route climb gradient (currently
         1.1%) with one engine inoperative, the other operating at the maximum
         continuous thrust available at the altitude with air conditioning
         bleeds on, without anti-icing, at a gross weight of pounds in the
         cruise configuration in ISA conditions, at a geometric altitude of:
         (x) for CF6-80E1A3 engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)feet
         (y) for PW4168A engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)feet

                                   LA5B (PW)-3
<PAGE>

         (z) for Trent 772B engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)feet

1.3      TAKE-OFF PERFORMANCE

1.3.1    The FAR permissible take-off weight shall not be less than:
         (x) for CF6-80E1A3 engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)pounds
         (y) for PW4168A engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)pounds
         (z) for Trent 772B engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)pounds

         in the following conditions (assumed representative of):

         Pressure altitude: (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
         WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)
         Ambient temperature: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)
         Runway length: (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH
         THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)
         Slope: (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)
         Obstacles (8): (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
         WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)

1.3.2    The FAR permissible take-off weight shall not be less than
         (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)pounds in the following conditions (assumed representative
         of(CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)):

         Pressure altitude: (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
         WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)
         Ambient temperature: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)
         Runway length: (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
         WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)Slope: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE

                                   LA5B (PW)-4
<PAGE>

         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)
         Obstacles (11): (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
         WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT) (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)(CONFIDENTIAL MATERIAL OMITTED AND
         FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
         TO A REQUEST FOR CONFIDENTIAL TREATMENT)(CONFIDENTIAL MATERIAL OMITTED
         AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
         PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)(CONFIDENTIAL MATERIAL
         OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)

1.4       ALL ENGINE CLIMB

         The time, fuel burn and distance in still air to climb from an initial
         climb altitude of 1,500 feet to a final climb altitude of 35,000 feet
         on a standard day, using the conditions and operating rules defined
         below and using not more than maximum climb thrust, shall not be more
         than the following guarantee values:
         (x) for CF6-80E1A3 engines:
               Time (minutes):
               NOMINAL: 27.6 mn TOLERANCE: 1.0 mn GUARANTEE: (CONFIDENTIAL
          MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
          COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)mn
               Fuel burn (pounds):
               NOMINAL: 11,890 lb TOLERANCE: 530 lb GUARANTEE: (CONFIDENTIAL
          MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
          COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)lb
               Distance (nautical miles)
               NOMINAL: 197 nm TOLERANCE: 8 nm GUARANTEE: (CONFIDENTIAL MATERIAL
          OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
          COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) nm
          (y) for PW4168A engines:
               Time (minutes):
               NOMINAL: 33.0 mn TOLERANCE: 1.5 mn GUARANTEE: (CONFIDENTIAL
          MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
          COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) mn
               Fuel burn (pounds):
               NOMINAL: 13,185 lb TOLERANCE:705 lb GUARANTEE: (CONFIDENTIAL
          MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
          COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)lb
               Distance (nautical miles)
               NOMINAL: 238 nm TOLERANCE: 12 nm GUARANTEE: (CONFIDENTIAL
          MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
          COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)nm
          (z) for Trent 772B engines:
               Time (minutes):
               NOMINAL: 25.0 mn TOLERANCE: 0.8 mn GUARANTEE: (CONFIDENTIAL
          MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
          COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)mn

                                   LA5B (PW)-5
<PAGE>

               Fuel burn (pounds):
               NOMINAL: 11,110 lb TOLERANCE: 450 lb GUARANTEE: (CONFIDENTIAL
          MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
          COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)lb
               Distance (nautical miles)
               NOMINAL: 178 nm TOLERANCE: 6 nm GUARANTEE: (CONFIDENTIAL MATERIAL
          OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
          COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)nm

         Conditions and operating rules:
         Initial Conditions:      A gross weight of 512,020 pounds
                                  A speed of 250 KCAS.
                                  The flaps and landing gear are retracted.
         Climb:                   The Aircraft climbs from the initial
                                  climb altitude to 10,000 feet altitude
                                  at 250 KCAS.
                                  The Aircraft then accelerates to a climb speed
                                  of 330 KCAS.
                                  The climb continues at 330 KCAS until 0.82
                                  Mach number is reached. The climb continues
                                  at 0.82 Mach number to the final climb
                                  altitude at a rate of climb not less than
                                  300 feet per minute.

1.5   LANDING DISTANCE

         The FAR certified dry landing field length at an Aircraft gross weight
         of (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)pounds at sea level pressure altitude shall not
         be greater than:
         (x) for CF6-80E1A3 engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)feet
         (y) for PW4168A engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)feet
         (z) for Trent 772B engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)feet

2.       FUEL BURN GUARANTEE

2.1      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)AIRCRAFT SPECIFIC RANGE

The still air range expressed in nautical miles at an initial cruise altitude of
35,000 feet on a standard day at 0.82 Mach number, starting at a gross weight of
(CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)

         pounds and consuming 140,000 pounds of fuel, and using not more than
         maximum cruise thrust (except maximum climb thrust may be used during a
         step climb) and using the conditions and operating rules defined below,
         shall not be less than the following guarantee value for each Aircraft
         (the "Guaranteed (CONFIDENTIAL MATERIAL OMITTED AND

                                   LA5B (PW)-6

<PAGE>

         FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
         TO A REQUEST FOR CONFIDENTIAL TREATMENT) Specific Range"):

         (x) for CF6-80E1A3 engines:
              NOMINAL: 5,311 nm TOLERANCE: 106 nm GUARANTEE: (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)nm

         (y) for PW4168A engines:
              NOMINAL: 5,292 nm TOLERANCE: 106 nm GUARANTEE: (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)nm

         (z) for Trent 772B engines:
              NOMINAL: 5,312 nm TOLERANCE: 106 nm GUARANTEE: (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)nm

         Conditions and operating rules:
         A step climb or multiple step climbs of 4,000 feet altitude may be used
         when beneficial to minimize fuel burn.

2.2      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)SPECIFIC RANGE

         The still air range expressed in nautical miles at an initial cruise
         altitude of 35,000 feet on a standard day at 0.82 Mach number, starting
         at a gross weight of (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)pounds and consuming 140,000 pounds
         of fuel, and using not more than maximum cruise thrust (except maximum
         climb thrust may be used during a step climb) and using the conditions
         and operating rules defined below, shall not be less than the following
         guarantee value (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
         WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)(the "Guaranteed (CONFIDENTIAL MATERIAL OMITTED
         AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
         PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)Specific Range"): (x)
         for CF6-80E1A3 engines:

              NOMINAL: 5,311 nm TOLERANCE: 53 nm GUARANTEE: (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) nm

         (y) for PW4168A engines:
              NOMINAL: 5,292 nm TOLERANCE: 53 nm GUARANTEE: (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)nm

         (z) for Trent 772B engines:
              NOMINAL: 5,312 nm TOLERANCE: 53 nm GUARANTEE: (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)nm

         Conditions and operating rules:

                                  LA5B(PW)-7

<PAGE>

         A step climb or multiple step climbs of 4,000 feet altitude may be used
         when beneficial to minimize fuel burn.

3.       MISSION PAYLOAD RANGE GUARANTEE

For each Aircraft the payload for a stage length of (CONFIDENTIAL MATERIAL
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) nautical miles in still air
(representative of a (CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT)

         route) using the conditions and operating rules defined below, shall
         not be less than the following guarantee value in pounds:

         (x) for CF6-80E1A3 engines:
              NOMINAL: 84,600 lb TOLERANCE: 4,100 lb GUARANTEE: (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)lb

         (y) for PW4168A engines:
              NOMINAL: 82,900 lb TOLERANCE: 4,100 lb GUARANTEE: (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) lb

         (z) for Trent 772B engines:
              NOMINAL: 84,000 lb TOLERANCE: 4,100 lb GUARANTEE: (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)lb

         Conditions and operating rules:

<TABLE>
<S>                           <C>
         Stage                The stage length is defined as the sum of the
         Length:              distances for climb, cruise, and descent.

         Takeoff:             The airport altitude is 14 feet.
                              The takeoff gross weight is 513,677 pounds.

         Climbout             Following the takeoff to 800 feet, the aircraft
         Maneuver:            accelerates to 250 KCAS while climbing to 1,500
                              feet above the departure airport altitude and
                              retracting flaps and landing gear.

         Climb:               The aircraft climbs from 1,500 feet above the
                              departure airport altitude to 10,000 feet altitude
                              at 250 KCAS. The aircraft then accelerates to a
                              climb speed of 330 KCAS. The climb continues at
                              330 KCAS until 0.82 Mach number is reached. The
                              climb continues at 0.82 Mach number to the
                              initial cruise altitude at a rate of climb not
                              less than 300 feet per minute. The temperature
                              is standard day during climb. Maximum climb
                              thrust is used during climb.

         Cruise:              The Aircraft cruises at 0.82 Mach number.
                              The initial cruise altitude is 35,000 feet.

                                  LA5B(PW)-8

<PAGE>

                              A step climb or multiple step climb of 4,000
                              feet altitude may be used when beneficial to
                              minimize fuel burn. The temperature is standard
                              day during cruise. The cruise thrust is not to
                              exceed maximum cruise thrust except during a
                              step climb when maximum climb thrust may be
                              used.

         Descent:             The Aircraft descends from the final cruise
                              altitude at 0.82 Mach number until 330 KCAS is
                              reached. The descent continues at 330 KCAS to
                              an altitude of 10,000 feet. At that altitude
                              the Aircraft decelerates to 250 KCAS. The
                              descent continues at 250 KCAS to an altitude of
                              1,500 feet above the destination airport
                              altitude. Throughout the descent, the cabin
                              pressure will be controlled to a maximum rate
                              of descent equivalent to 350 feet per minute at
                              sea level. The temperature is standard day
                              during descent.

         Approach and         The Aircraft decelerates to the final approach
         Landing Maneuver:    speed while extending landing gear and flaps, then
                              descends and lands.

                              The destination airport altitude is 841 feet.

         Usable Reserve       At the end of approach and landing, an amount of
         Fuel:                fuel corresponding to the profile defined below
                              shall remain in the tanks :

                              FAR Reserve - 31.5 minutes hold (representative
                              of 30 minutes hold with 5% mark-up for
                              racetrack pattern) at 1500ft, ISA,at actual
                              Zero Fuel Weight.

                              Alternate - alternate is assumed to be 67 NM
                              (Rochester, MN).
                              Fuel burn and time include the following:

                                 Fuel for takeoff to operational climb speed
                                 with 2 minutes time allowance and no
                                 distance credit
                                 Optimum climb airspeed for fuel economy
                                 Cruise at LRC at optimum altitude Optimum
                                 descent airspeed for fuel economy Approach
                                 and land fuel with 5 minutes time allowance
                                 and no distance credit
                              (alternate fuel will never be less than fuel to
                              a 15 minute alternate)

                              International 10% - 10 minutes of fuel at end
                              of cruise altitude, LRC, ISA, actual landing
                              weight.

                              Contingency (Holding) - 21 minutes hold
                              (representative of 20 minutes hold with 5%
                              mark-up for racetrack pattern), FL150, ISA,
                              actual landing weight.

         Fixed Allowances:    For the purpose of this guarantee and for the
                              purpose of establishing compliance with this
                              guarantee, the following shall be used as fixed
                              quantities and allowances:

                                  LA5B(PW)-9

<PAGE>

                              Engine Start and Taxi-out: 800 pounds of fuel

                              Takeoff and Climbout Maneuver: 1,650 pounds of
                              fuel for mission departure and 1,150 pounds of
                              fuel for alternate

                              Approach and Landing Maneuver: 420 pounds of fuel
                              for mission and 420 pounds of fuel for alternate

                              Taxi-in (shall be consumed from the reserve fuel):
                              500 pounds of fuel

</TABLE>

         The Operating Weight Empty (OWE) derived in Subparagraph 4.2 of this
         Part A is the basis for this mission guarantee.

4.       WEIGHT GUARANTEES

4.1      MANUFACTURER'S WEIGHT EMPTY

         The Seller guarantees that the Manufacturer's Weight Empty (as
         defined in the A330-300 Standard Specification set forth in the
         Preamble) of each Aircraft as defined in the Preamble, which will be
         derived from the weighing of each Aircraft, shall not be more than:
         (x) for CF6-80E1A3 engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)pounds for any (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
         EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)Aircraft

         (y) for PW4168A engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)pounds for any (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
         EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)Aircraft

         (z) for Trent 772B engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)pounds for ANY(CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
         EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT) Aircraft

         and shall not be more than:

         (x) for CF6-80E1A3 engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)pounds for (CONFIDENTIAL MATERIAL
         OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)

         (y) for PW4168A engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)pounds for(CONFIDENTIAL MATERIAL
         OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)

         (z) for Trent 772B engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A

                                  LA5B(PW)-10

<PAGE>

         REQUEST FOR CONFIDENTIAL TREATMENT)pounds for (CONFIDENTIAL MATERIAL
         OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)

4.2      STRUCTURAL USABLE LOAD

         The Seller guarantees that the excess of the Maximum Zero Fuel Weight
         (as defined in the A330-300 Standard Specification set forth in the
         Preamble) of each Aircraft as defined in the Preamble over the
         Operating Weight Empty (as defined below) of such Aircraft, shall not
         be less than:

         (x) for CF6-80E1A3 engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)pounds for any (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
         EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)Aircraft

         (y) for PW4168A engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)pounds for any(CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
         EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)Aircraft

         (z) for Trent 772B engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)pounds for ANY(CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
         EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT) Aircraft

         and shall not be less than:

         (x) for CF6-80E1A3 engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)pounds for the (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
         EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

         (y) for PW4168A engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)pounds for the (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
         EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

         (z) for Trent 772B engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)pounds for the (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
         EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)

         Operating Weight Empty is the sum of the Manufacturer's Weight Empty
         (as defined in the Type Specification set forth in the Preamble) plus
         the following fixed allowances:

         (x) for CF6-80E1A3 engines:
                                            (CONFIDENTIAL MATERIAL OMITTED AND
         FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
         TO A REQUEST FOR CONFIDENTIAL TREATMENT)pounds for customer changes

                                            (CONFIDENTIAL MATERIAL OMITTED AND
         FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
         TO A REQUEST FOR CONFIDENTIAL TREATMENT)pounds for operator items

         (y) for PW4168A engines:

                                  LA5B(PW)-11
<PAGE>

                                            (CONFIDENTIAL MATERIAL OMITTED AND
         FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
         TO A REQUEST FOR CONFIDENTIAL TREATMENT)pounds for customer changes

                                            (CONFIDENTIAL MATERIAL OMITTED AND
         FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
         TO A REQUEST FOR CONFIDENTIAL TREATMENT)pounds for operator items

         (z) for Trent 772B engines:
                                            (CONFIDENTIAL MATERIAL OMITTED AND
         FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
         TO A REQUEST FOR CONFIDENTIAL TREATMENT)pounds for customer changes

                                            (CONFIDENTIAL MATERIAL OMITTED AND
         FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
         TO A REQUEST FOR CONFIDENTIAL TREATMENT)pounds for operator items

5.      GENERAL GUARANTEE CONDITIONS

5.1     AIRCRAFT CONFIGURATION

         Seller reserves the right to make reasonable and appropriate
         adjustments to the guarantees set forth in this Part A for any
         configuration change or deviation from the A330-300 Standard
         Specification which is agreed between Buyer and Seller subsequent to
         the date hereof, provided that any such adjustment is made
         contemporaneously with such A330-300 Standard Specification change or
         deviation.

5.2     PERFORMANCE DEFINITIONS

5.2.1    Performance and noise certification rules will be those required to
         obtain FAR certification under the FAA Airworthiness Code as defined in
         the Type Specification.

5.2.3    All performance data is based on the International Standard Atmosphere
         and specified variations. Unless otherwise stated all altitudes are
         pressure altitudes.

5.2.3    Unless otherwise stated, take-off and landing performance is based upon
         a hard, smooth, dry and level runway surface with zero wind, and
         assumes no line-up allowance.

5.2.4    Take-off and landing performance is based on the brakes and tires as
         specified in the aircraft configuration defined in the Preamble.

5.2.5    Devices such as flaps, landing gear, speed brakes, wheel brakes,
         anti-skid and engines will be employed in the manner which provides the
         best performance standard consistent with approved operations.

5.2.6    All guaranteed performance in this Part A is based upon no air bleed
         from the engines for airframe or engine anti-icing.

5.2.7    For take-off and take-off climb performance, landing and landing climb
         performance, no air will be bled from the engine for air conditioning.

5.2.8    For en route performance, engine bleeds consistent with normal
         operation of the air conditioning system, including recirculation, are
         assumed.

                                  LA5B(PW)-12

<PAGE>

5.2.9    Normal electrical services will be in use consistent with the typical
         load schedule given in the A330-300 Standard Specification.

5.2.10   All guaranteed performance in this Part A assumes the use of approved
         fuel with a Lower Heating Value (the "LHV") of 18,590 BTU/lb and with a
         specific gravity of 6.7 pounds/gallon as such.

5.2.11   The speed, specific range and all-engine climb guarantees and the
         climb, cruise and descent portions of the mission guarantees are based
         on an Aircraft center of gravity location of 33 percent of the mean
         aerodynamic chord.

5.3     COMPLIANCE

5.3.1    The Seller shall provide to Buyer a guarantee compliance report
         providing the compliance data for each Aircraft (the "Guarantee
         Compliance Report"), in a timely manner after final data is collected,
         but in no event later than ten (10) Working Days after acceptance by
         Buyer of the Aircraft. The Guarantee Compliance Report shall contain
         compliance results determined in accordance with this Subparagraph 5.3.

5.3.2    Compliance with the en-route one engine inoperative, takeoff
         performance and landing distance guarantees will be demonstrated with
         reference to performance data contained in the approved Flight Manual.
         Compliance with climb performance and speed will be demonstrated with
         reference to the IFP Level.

5.3.3    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

         a)       (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         b)       (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         c)       (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         d)       (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         e)       (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         f)       (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

                                  LA5B(PW)-13

<PAGE>

5.3.4    The actual (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)Aircraft specific range, used for determining
         compliance with the fuel burn and mission payload guarantees, will be
         defined as the IFP Level corrected by the Correction Factor.

5.3.5    The actual (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)specific range, used for determining compliance
         with the fuel burn guarantee, will be defined upon delivery of each
         individual Aircraft as (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)

5.3.6    Compliance with fuel burn guarantees shall be determined as follows:

         (i)      with respect to each Aircraft, if its actual (CONFIDENTIAL
                MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
                EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                TREATMENT)Aircraft specific range meets the guarantee level
                set forth in Subparagraph 2.1 of this Part A.

         (ii)     with respect to the(CONFIDENTIAL MATERIAL OMITTED AND FILED
                SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
                TO A REQUEST FOR CONFIDENTIAL TREATMENT), if, upon delivery of
                any Aircraft, the (CONFIDENTIAL MATERIAL OMITTED AND FILED
                SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
                TO A REQUEST FOR CONFIDENTIAL TREATMENT)specific range meets the
                guarantee level set forth in Subparagraph 2.2 of this Part A.
                (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                CONFIDENTIAL TREATMENT)

5.3.7    Compliance with the mission payload guarantee, as defined in Paragraph
         3 of this Part A, will be based on the actual individual Aircraft
         specific range as defined in Subparagraph 5.3.4 of this Part A and the
         actual Manufacturer's Weight Empty of the applicable Aircraft as
         determined pursuant to Subparagraph 5.3.8 of this Part A.

5.3.8    Compliance with the weight guarantees set forth in Subparagraphs 4.1
         and 4.2 of this Part A shall be demonstrated in a weight compliance
         report with reference to actual aircraft weighing results.

6        ADJUSTMENT OF GUARANTEES

         Should any change be made to any law, governmental regulation or
         requirement or interpretation thereof ("Rule Change") by any
         governmental agency subsequent to the date of the Agreement, and should
         such Rule Change (i) more than minimally affect the Aircraft
         configuration or performance or both, and (ii) be required to obtain
         the Standard Airworthiness Certificate for the Aircraft, the guarantees
         set forth herein shall be appropriately modified to reflect the
         effect(s) of any such Rule Change(s).

7.       EXCLUSIVE GUARANTEES

                                  LA5B(PW)-14

<PAGE>

         The guarantees set forth in this Part A supersede any similar
         guarantees from Seller that may be stated in the A330-300 Standard
         Specification or any other document, except for the guarantees set
         forth in Part B of this Letter Agreement.

8.       REMEDIES

8.1      GENERAL

8.1.1    In the event that the Seller fails to demonstrate compliance by one or
         more Aircraft (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH
         THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)with any of the guarantees set forth in this
         Part A, the Seller shall

         (i)      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         (ii)     (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

8.1.2    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

8.1.3    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

8.1.4    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

8.1.5    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

8.1.6    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

8.2      FUEL BURN

         The Compensation for failure to comply with either the guarantee set
         forth in Subparagraph 2.1 or Subparagraph 2.2 of this Part A shall be
         (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

8.2.1    DEFICIENCY OF (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH
         THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)AIRCRAFT

                                  LA5B(PW)-15

<PAGE>

         In the event that an (CONFIDENTIAL MATERIAL OMITTED AND FILED
                  SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
                  PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)Aircraft
                  fails to comply with the guarantee set forth in Subparagraph
                  2.1 of this Part A, the amount of Compensation (CONFIDENTIAL
                  MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
                  EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                  TREATMENT)

8.2.2    DEFICIENCY OF AIRCRAFT FLEET

         In the event that the (CONFIDENTIAL MATERIAL OMITTED AND FILED
                  SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
                  PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)fails to
                  comply with the guarantee set forth in Subparagraph 2.2 of
                  this Part A, the amount of Compensation (CONFIDENTIAL MATERIAL
                  OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
                  COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)

8.3      PAYLOAD

         The Compensation for failure to comply with either the guarantees set
         forth in Subparagraph 1.3, Paragraph 3 or Subparagraph 4.2 of Part A of
         this Letter Agreement shall be (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)

8.3.1    MISSION PAYLOAD RANGE

         In the event that any Aircraft fails to meet the mission payload range
         guarantee in Paragraph 3 of this Part A, the amount of Compensation
         (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

8.3.2    STRUCTURAL USABLE LOAD

         In the event that any Aircraft (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)fail to meet the guarantee levels
         specified in Subparagraph 4.2 of this Part A, the Compensation shall
         BE(CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)

         (i)      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         (ii)     (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

8.3.3    TAKE-OFF

                                  LA5B(PW)-16
<PAGE>

         In the event that an Aircraft fails to meet the take-off guarantees set
         forth in Subparagraph 1.3 of this Part A, the amount of Compensation
         shall be (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT). The amount of Compensation hereunder shall
         (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

8.3.4    LANDING

         In the event that an Aircraft fails to meet the landing guarantee set
         forth in Subparagraph 1.5 of this Part A, the amount of Compensation
         shall be(CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT), provided that the Buyer demonstrates to the
         Seller that such deficiency adversely impacts the Buyer's operation of
         the affected Aircraft.

8.4      MANUFACTURER'S WEIGHT EMPTY

In the event that the Manufacturer's Weight Empty (MWE) of an (CONFIDENTIAL
MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)Aircraft or of the
(CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT).

         exceeds the guarantee levels specified in Subparagraph 4.1 of this Part
         A the amount of Compensation shall be (CONFIDENTIAL MATERIAL OMITTED
         AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
         PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)

8.5      SPEED

         In the event that an Aircraft fails to meet the speed guarantee set
         forth in Subparagraph 1.1 of this Part A, the amount of Compensation
         shall be(CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT), subject to the limitations and conditions set
         forth in Subparagraph 8.8 of this Part A, provided that the Buyer
         demonstrates to the Seller that such deficiency adversely impacts the
         Buyer's operation of the affected Aircraft.

8.6      ONE ENGINE INOPERATIVE

         In the event that an Aircraft fails to meet the one engine inoperative
         guarantee set forth in Subparagraph 1.2 of this Part A, the amount of
         Compensation shall be(CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT), subject to the limitations and
         conditions set forth in Subparagraph 8.8 of this Part A, provided that
         the Buyer demonstrates to the Seller that such deficiency adversely
         impacts the Buyer's operation of the affected Aircraft.

8.7      ALL ENGINE CLIMB

                                  LA5B(PW)-17

<PAGE>

         In the event that an Aircraft fails to meet the all engine climb
         guarantee set forth in Subparagraph 1.4 of this Part A, the amount of
         Compensation shall be(CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT), subject to the limitations and
         conditions set forth in Subparagraph 8.8 of this Part A, provided that
         the Buyer demonstrates to the Seller that such deficiency adversely
         impacts the Buyer's operation of the affected Aircraft.

8.8      LIMITATIONS AND CONDITIONS

         (i)      The Seller shall have the right to review and verify data
                  collected by the Buyer, which is provided to Seller for Seller
                  to perform the calculations of Compensation due hereunder.

         (ii)     If at any time following delivery of an Aircraft the Seller
                  restores the required performance level of an Aircraft which
                  has initially failed to meet the performance guarantee
                  requirements of Paragraphs 1, 2, 3 or 4 of this Part A, and
                  the Seller demonstrates compliance for such specific Aircraft
                  in accordance with the applicable compliance provisions of
                  this Part A, all further payments of Compensation required
                  under this Part A with respect to such initial failure shall
                  cease and the Seller shall have no further obligation to the
                  Buyer under this Part A for such initial failure in respect of
                  such Aircraft. Seller shall demonstrate compliance
                  by(CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT), gathering data and producing a
                  Guarantee Compliance Report which demonstrates compliance for
                  such specific Aircraft in accordance with the applicable
                  compliance provisions of this Part A. The compliance level
                  achieved by such Aircraft shall be taken into account for all
                  (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)calculations for the purposes of this
                  Part A.

         (iii)    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         (iv)     (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         (v)      The Seller's maximum liability (CONFIDENTIAL MATERIAL OMITTED
                  AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
                  COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)

                  (x)      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
                           WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
                           TO A REQUEST FOR CONFIDENTIAL TREATMENT)
                  (y)      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
                           WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
                           TO A REQUEST FOR CONFIDENTIAL TREATMENT)

                                  LA5B(PW)-18

<PAGE>

         (vi)     (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)as aforesaid shall be deemed to settle
                  any and all claims and remedies of the Buyer against the
                  Seller under this Part A provided that the Seller has first
                  endeavored to restore the required performance as per
                  Paragraph 8.1.1(i) above, but shall not settle or modify in
                  any respect any other claim or remedy of the Buyer against the
                  Seller. Nothing in this Paragraph 8.8 (vi) shall oblige the
                  Seller to (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
                  WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
                  REQUEST FOR CONFIDENTIAL TREATMENT)

                                  LA5B(PW)-19

<PAGE>

     PART B

     A330-300 (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
     SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
     TREATMENT)GUARANTEES

                  Seller hereby extends and grants to Buyer the (CONFIDENTIAL
                  MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
                  EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                  TREATMENT)guarantees with respect to the Aircraft set forth in
                  this Part B of this Letter Agreement, subject to the terms,
                  conditions, limitations and restrictions all as hereinafter
                  set out.

                  PREAMBLE

                  A.  Assumptions:

                  The guarantees defined below in this Part B are applicable to
                  each A330-300 Aircraft as described in the A330-300 Standard
                  Specification Ref. G 000 03000 Issue 6 Revision 1, dated 15th
                  July 1998, amended by Specification Change Notices ("SCN")
                  (the "Specification") for:

                      i)       increase of Design weights
                               Maximum Taxi Weight: (CONFIDENTIAL MATERIAL
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)pounds
                               Maximum Takeoff Weight: (CONFIDENTIAL MATERIAL
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)pounds
                               Maximum Landing Weight: (CONFIDENTIAL MATERIAL
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)pounds
                               Maximum Zero Fuel Weight: (CONFIDENTIAL MATERIAL
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)pounds

                      ii)      fitting of:
                               Pratt and Whitney PW4168A engines with Kevlar fan
                               case

                  These guarantees are comprehensive including the performance
                  of both the airframe and engine in combination.

                      For information only:
                      For establishing uncertified performance these guarantees
                      have been based on the In Flight Performance Level
                      relevant at the date of the signature of the Purchase
                      Agreement

                                  LA5B(PW)-20

<PAGE>

                      (the "IFP Level") and consistent with the Aircraft
                      Performance Document (the "Orange Book") ref. AI/CM-T
                      P3322 Issue 3.

                  B.  Definitions:

                      (i)      For the purpose of this Part B of this Letter
                               Agreement only, the term "Aircraft" is defined as
                               any and all of the A330-300 model aircraft to be
                               acquired by the Buyer under the Agreement.

                      (ii)     (CONFIDENTIAL MATERIAL OMITTED AND FILED
                               SEPARATELY WITH THE SECURITIES AND EXCHANGE
                               COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                               TREATMENT)

                                  LA5B(PW)-21

<PAGE>

1.       GENERAL PROVISIONS

1.1      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

1.2      The (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)Guarantees in this Part B are contingent
         upon:(CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT).

1.3      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT):

         (i)      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         (ii)     (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         (iii)    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         (iii)    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         (iv)     (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

2.       FUEL BURN GUARANTEE

2.1      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT) (expressed as a percentage) determined in accordance with
         the In-Flight Performance Program (IFP).

         -    2.2   The Seller guarantees to the Buyer that the (CONFIDENTIAL
              MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
              EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
              TREATMENT)shall not be worse than the IFP Level (CONFIDENTIAL
              MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
              EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
              TREATMENT)

                                  LA5B(PW)-22

<PAGE>
3.       MISSION PAYLOAD GUARANTEE

         The (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT) as stated in Paragraph 2.2 of this Part B shall
         allow the carrying of a guaranteed payload of not less than:

         (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
                AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                TREATMENT)(CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
                WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
                REQUEST FOR CONFIDENTIAL TREATMENT)

                over an equivalent still air stage distance of (CONFIDENTIAL
                MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
                EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                TREATMENT) nautical miles (assumed representative of
                (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                CONFIDENTIAL TREATMENT)for a winter operation) when operated
                under the conditions described below.

         a)     If the (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH
                THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                CONFIDENTIAL TREATMENT)as stated in Subparagraph 2.2 of this
                Part B is modified according to Subparagraph 1.3 of this Part B,
                the above guaranteed payload shall be modified accordingly,
                using the following relationship:

                (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                CONFIDENTIAL TREATMENT)

         b)     Available takeoff weight is assumed to be (CONFIDENTIAL MATERIAL
                OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
                COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)
                pounds.

         c)     The destination airport conditions are such as to allow the
                required landing weight to be used without performance
                restrictions and without exceeding the Maximum Landing Weight as
                defined in Type Specification referenced in the Preamble.

         d)     .
         Conditions and operating rules:

         Stage                The stage length is defined as the sum of the
         Length:              distances for climb, cruise, and descent.

         Takeoff:             The airport altitude is 14 feet.
                              The takeoff gross weight is (CONFIDENTIAL
                              MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                              SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
                              A REQUEST FOR CONFIDENTIAL TREATMENT)pounds.

         Climbout             Following the takeoff to 800 feet, the aircraft
                              accelerates to

                                  LA5B(PW)-23

<PAGE>
         Maneuver:            250 KCAS while climbing to 1,500
                              feet above the departure airport altitude and
                              retracting flaps and landing gear.

         Climb:               The aircraft climbs from 1,500 feet above the
                              departure airport altitude to 10,000 feet
                              altitude at 250 KCAS.
                              The aircraft then accelerates to a climb speed of
                              330 KCAS.
                              The climb continues at 330 KCAS until 0.82 Mach
                              number is reached.
                              The climb continues at 0.82 Mach number to the
                              initial cruise altitude at a rate of climb not
                              less than 300 feet per minute.
                              The temperature is standard day during climb.
                              Maximum climb thrust is used during climb.

         Cruise:              The Aircraft cruises at 0.82 Mach number.
                              The initial cruise altitude is 35,000 feet.
                              A step climb or multiple step climb of 4,000 feet
                              altitude may be used when beneficial to
                              minimize fuel burn.
                              The temperature is standard day during cruise.
                              The cruise thrust is not to exceed maximum cruise
                              thrust except during a step climb when maximum
                              climb thrust may be used.

         Descent:             The Aircraft descends from the final cruise
                              altitude at 0.82 Mach number until 330 KCAS is
                              reached.
                              The descent continues at 330 KCAS to an altitude
                              of 10,000 feet. At that altitude the Aircraft
                              decelerates to 250 KCAS.
                              The descent continues at 250 KCAS to an altitude
                              of 1,500 feet above the destination airport
                              altitude.
                              Throughout the descent, the cabin pressure will be
                              controlled to a maximum rate of descent equivalent
                              to 350 feet per minute at sea level.

                              The temperature is standard day during descent.

         Approach and         The Aircraft decelerates to the final approach
         Landing Maneuver:    speed while extending landing gear and flaps, then
                              descends and lands.

                              The destination airport altitude is 841 feet.

         Usable Reserve       At the end of approach and landing, an amount of
         Fuel:                fuel defined as follows shall remain in the tanks:

                              FAR Reserve - 31.5 minutes hold (representative
                              of 30 minutes hold with 5% mark-up for
                              racetrack pattern) at 1500ft, ISA,at actual
                              Zero Fuel Weight.

                              Alternate - alternate is assumed to be 67 NM
                              (Rochester, MN). Fuel burn and time
                              include the following:

                                 Fuel for takeoff to operational climb speed
                                 with 2 minutes time allowance and no distance
                                 credit
                                 Optimum climb airspeed for fuel economy
                                 Cruise at LRC at optimum altitude
                                 Optimum descent airspeed for fuel economy

                                  LA5B(PW)-24

<PAGE>

                                 Approach and land fuel with 5 minutes time
                                 allowance and no distance credit
                              (alternate fuel will never be less than fuel to a
                              15 minute alternate)

                              International 10% - 10 minutes of fuel at end
                              of cruise altitude, LRC, ISA, actual landing
                              weight.

                              Contingency (Holding) - 21 minutes hold
                              (representative of 20 minutes hold with 5%
                              mark-up for racetrack pattern), FL150, ISA,
                              actual landing weight.

         Fixed Allowances:    For the purpose of this guarantee and
                              for the purpose of establishing compliance with
                              this guarantee, the following shall be used as
                              fixed quantities and allowances:

                              Engine Start and Taxi-out: (CONFIDENTIAL MATERIAL
                                      OMITTED AND FILED SEPARATELY WITH THE
                                      SECURITIES AND EXCHANGE COMMISSION
                                      PURSUANT TO A REQUEST FOR CONFIDENTIAL
                                      TREATMENT)pounds of fuel

                              Takeoff and Climbout Maneuver: (CONFIDENTIAL
                              MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                              SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
                              A REQUEST FOR CONFIDENTIAL TREATMENT)pounds of
                              fuel for mission departure and (CONFIDENTIAL
                              MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                              SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
                              A REQUEST FOR CONFIDENTIAL TREATMENT)pounds of
                              fuel for alternate

                              Approach and Landing Maneuver: (CONFIDENTIAL
                              MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                              SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
                              A REQUEST FOR CONFIDENTIAL TREATMENT)pounds of
                              fuel for mission and (CONFIDENTIAL MATERIAL
                              OMITTED AND FILED SEPARATELY WITH THE
                              SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
                              A REQUEST FOR CONFIDENTIAL TREATMENT)pounds of
                              fuel for alternate

                              Taxi-in (shall be consumed from the reserve fuel):
                                      (CONFIDENTIAL MATERIAL OMITTED AND FILED
                                      SEPARATELY WITH THE SECURITIES AND
                                      EXCHANGE COMMISSION PURSUANT TO A REQUEST
                                      FOR CONFIDENTIAL TREATMENT)pounds of fuel

         e)     The mission payload guarantee is based on an Operating Weight
                Empty (OWE) composed of the actual Aircraft Fleet average
                Manufacturer's Weight Empty (MWE) as demonstrated at delivery of
                the Aircraft Fleet (but in no event more than (CONFIDENTIAL
                MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
                EXCHANGE

                                  LA5B(PW)-25

<PAGE>

                COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)
                pounds), plus the following fixed allowances:

                      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH
                      THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
                      REQUEST FOR CONFIDENTIAL TREATMENT)pounds for customer
                      changes
                      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH
                      THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
                      REQUEST FOR CONFIDENTIAL TREATMENT)pounds for operator
                      items
                      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
                      WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
                      REQUEST FOR CONFIDENTIAL TREATMENT)pounds for in-service
                      growth

4.       GENERAL GUARANTEE CONDITIONS

4.1      AIRCRAFT CONFIGURATION

         Seller reserves the right to make reasonable and appropriate
         adjustments to the guarantees in this Part B for any configuration
         change or deviation from Specification which is agreed between Buyer
         and Seller subsequent to the date hereof, provided that any such
         adjustment is made contemporaneously with such Specification change or
         deviation.

4.2      COMPLIANCE

4.2.1    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

4.2.2    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

         a)       (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         b)       (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         c)       (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         d)       (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

4.2.3    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

                                  LA5B(PW)-26
<PAGE>

4.2.4    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

4.2.5    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

4.2.6    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

4.2.7    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

4.2.8    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

4.2.8    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

5.       REMEDIES

5.1      GENERAL

5.1.1    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

5.1.2    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

5.1.3    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

5.1.4    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

         FUEL BURN-(CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)

                                 LA5B (PW)-27

<PAGE>

         In the event that the(CONFIDENTIAL MATERIAL OMITTED AND FILED
                  SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
                  PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) fails to
                  comply with the guarantee set forth in Subparagraph 2.2 of
                  this Part B, (CONFIDENTIAL MATERIAL OMITTED AND FILED
                  SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
                  PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)

5.2.2    If the Buyer believes the (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)Specific Range Deterioration is
         within 1% of the guarantee set forth in Subparagraph 2.2 of this Part
         B, Buyer shall give prompt written notice thereof. Upon Seller's
         receipt of any notice that the Aircraft Fleet Specific Range
         Deterioration is within 1% of the guarantee set forth in Subparagraph
         2.2 of this Part B, Buyer, Seller and EM will work together to evaluate
         the basic data.

5.3      MISSION PAYLOAD RANGE

         In the event that the (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)fails to meet the mission payload
         range guarantee set forth in Paragraph 3 of this Part B, (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)

5.4      LIMITATIONS AND CONDITIONS

         (i)      The Seller shall have the right to review and verify data
                  collected by the Buyer, which is provided to Seller for Seller
                  to perform the calculations of compensation due hereunder.

         (ii)     (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         (iii)    The Seller's maximum liability, over the Guarantee Period,
                  pursuant to (CONFIDENTIAL MATERIAL OMITTED AND FILED
                  SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
                  PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)

                  (x)      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
                           WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
                           TO A REQUEST FOR CONFIDENTIAL TREATMENT)
                  (y)      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
                           WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
                           TO A REQUEST FOR CONFIDENTIAL TREATMENT)

         (iv)     (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT) as aforesaid shall be deemed to settle
                  any and all claims and remedies of the Buyer against the
                  Seller under this Part B(CONFIDENTIAL MATERIAL OMITTED AND
                  FILED SEPARATELY WITH THE SECURITIES AND

                                 LA5B (PW)-28

<PAGE>

                  EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                  TREATMENT), but shall not settle or modify in any respect any
                  other claim or remedy of the Buyer against the Seller. Nothing
                  in this Paragraph 5.4 (iv) shall (CONFIDENTIAL MATERIAL
                  OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
                  COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)

         (v)      The intent of Part B of this Letter Agreement is to provide
                  benefits to the Buyer as a result of the failure of the
                  Buyer's Aircraft to achieve the performance level stipulated
                  in the guarantees set forth in this Part B. It is not the
                  intent, however, to duplicate benefits provided to the Buyer
                  by the Seller under Part A of this Letter Agreement as a
                  result of the same failure. (CONFIDENTIAL MATERIAL OMITTED AND
                  FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
                  PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)

                  Further, it is not the intent of the EM to provide duplicate
                  benefits to Buyer under this Letter Agreement and EM's direct
                  commitments to Buyer to the extent that such benefits are
                  duplicative.

UNQUOTE

         THIS LETTER AGREEMENT SETS FORTH THE EXCLUSIVE GUARANTEES, WARRANTIES,
         EXCLUSIVE LIABILITIES AND EXCLUSIVE OBLIGATIONS OF AVSA, AND THE
         EXCLUSIVE REMEDIES AVAILABLE TO NORTHWEST, ARISING FROM (BUT SOLELY TO
         THE EXTENT ARISING FROM) ANY FAILURE OF ANY AIRCRAFT (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)TO
         DEMONSTRATE COMPLIANCE WITH ANY OF THE GUARANTEES SET FORTH IN THIS
         LETTER AGREEMENT, INCLUDING BUT NOT LIMITED TO ANY IMPLIED WARRANTY OF
         MERCHANTABILITY OR FITNESS, ANY IMPLIED WARRANTY ARISING FROM COURSE OF
         PERFORMANCE, COURSE OF DEALING OR USAGE OF TRADE, ANY OBLIGATION OR
         LIABILITY OF AVSA OR ANY RIGHT, CLAIM OR REMEDY OF BUYER IN CONTRACT OR
         IN TORT, WHETHER OR NOT ARISING FROM SELLER'S NEGLIGENCE, ACTUAL OR
         IMPUTED, INTENTIONAL ACT, OR STRICT LIABILITY AND ANY OBLIGATION OR
         LIABILITY OF SELLER OR ANY RIGHT, CLAIM OR REMEDY OF BUYER FOR LOSS OF
         OR DAMAGE TO ANY AIRCRAFT, COMPONENT, EQUIPMENT, ACCESSORY OR PART, FOR
         LOSS OF USE, REVENUE OR PROFIT WITH RESPECT TO ANY AIRCRAFT, COMPONENT,
         EQUIPMENT, ACCESSORY OR PART, OR FOR ANY OTHER DIRECT, INCIDENTAL OR
         CONSEQUENTIAL DAMAGES, PROVIDED THAT IN THE EVENT THAT ANY OF THE
         AFORESAID PROVISIONS SHOULD FOR ANY REASON BE HELD UNLAWFUL OR
         OTHERWISE INEFFECTIVE THE REMAINDER OF THIS PARAGRAPH SHALL REMAIN IN
         FULL FORCE AND EFFECT AND PROVIDED, FURTHER, THAT NOTHING IN THIS
         LETTER AGREEMENT SHALL BE DEEMED TO MODIFY, SETTLE, COMPROMISE, LIMIT,
         RELEASE OR OTHERWISE AFFECT ANY OTHER CLAIM, RIGHT OR REMEDY OF
         NORTHWEST AGAINST AVSA OR THE MANUFACTURER. THE GUARANTEES SET FORTH IN
         THIS LETTER AGREEMENT SHALL NOT BE EXTENDED, ALTERED OR VARIED EXCEPT
         BY A WRITTEN INSTRUMENT SIGNED BY AVSA AND NORTHWEST.

         ASSIGNMENT

                                 LA5B (PW)-29

<PAGE>

         Notwithstanding any other provision of this Letter Agreement or of the
         Agreement, this Letter Agreement and the rights and obligations of
         Northwest hereunder shall not be assigned or transferred in any manner
         without the prior written consent of AVSA, and any attempted assignment
         or transfer in contravention of the provisions of this paragraph shall
         be void and of no force or effect.

                                 LA5B (PW)-30

<PAGE>

If the foregoing correctly sets forth our understanding, please execute the
original and one (1) copy hereof in the space provided below and return a copy
to AVSA.

                                              Very truly yours,

                                              AVSA. S.A.R.L.

                                              By:  /s/ Francois Bensier
                                                   _____________________________

                                              Its: AVSA Chief Executive Officer
                                                   _____________________________

Accepted and Agreed

NORTHWEST AIRLINES, INC.

By:  /s/ Gregory A. May
     ____________________________________

Its: Vice President Aircraft Transactions
     ____________________________________

                                 LA5B (PW)-31

<PAGE>

                                                                      APPENDIX 1

(CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
         EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)(CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)

                                 LA5B (PW)-32

<PAGE>

                             LETTER AGREEMENT NO. 5C

                                                         As of December 21, 2000

Northwest Airlines, Inc.
2700 Lone Oak Parkway
Eagan, Minnesota 55121

Re:      PERFORMANCE GUARANTEES FOR ROLLS ROYCE POWERED AIRCRAFT

Ladies and Gentlemen:

         Northwest Airlines, Inc., ("Northwest") and AVSA, S.A.R.L., ("AVSA"),
have entered into an A330 Purchase Agreement, dated as of even date herewith
(the "Agreement"), which covers, among other matters, the sale by Seller and the
purchase by Northwest of certain Aircraft, under the terms and conditions set
forth in said Agreement. Northwest and Seller have agreed to set forth in this
Letter Agreement No. 5C (the "Letter Agreement") certain additional terms and
conditions regarding the sale of the Aircraft. Capitalized terms used herein and
not otherwise defined in this Letter Agreement shall have the meanings assigned
thereto in the Agreement. The terms "herein," "hereof" and "hereunder" and words
of similar import refer to this Letter Agreement.

         Both parties agree that this Letter Agreement shall constitute an
integral, nonseverable part of said Agreement, that the provisions of said
Agreement are hereby incorporated herein by reference, and that this Letter
Agreement shall be governed by the provisions of said Agreement, except that if
the Agreement and this Letter Agreement have specific provisions that are
inconsistent, the specific provisions contained in this Letter Agreement shall
govern.

         AVSA represents and warrants that the Manufacturer has provided to AVSA
the following performance guarantees with respect to the Aircraft, subject to
the terms, conditions, limitations and restrictions all as hereinafter set out,
and that such guarantees are in full force and effect and have not been amended.
AVSA hereby assigns to Northwest and Northwest hereby accepts, all of AVSA's
rights and obligations as the "Buyer" under the said performance guarantees and
AVSA subrogates Northwest to all such rights and obligations in respect of the
Aircraft. AVSA hereby warrants to Northwest that (i) it has all the requisite
authority to make the foregoing assignment to and effect the foregoing
subrogation in favor of Northwest, (ii) such assignment and subrogation are
effective to confer on Northwest all of the foregoing rights and obligations of
AVSA, and (iii) AVSA shall not enter into any amendment of the provisions so
assigned or subrogated without the prior written consent of Northwest.

         It is understood that, in the provisions below between the words QUOTE
and UNQUOTE, capitalized terms have the meanings assigned thereto in this
Agreement, except that (i) the term "Seller," which means the Manufacturer as
between the Manufacturer and AVSA, also means the Manufacturer in this
Agreement, and (ii) the term "Buyer," which means AVSA as between the
Manufacturer and the Seller, means Northwest.

QUOTE

                                 LA5C (RR)-1

<PAGE>

PART A                      A330-300 PERFORMANCE GUARANTEES

         PREAMBLE

         A.   Assumptions:

              The guarantees defined below in this Part A are applicable at the
              time of delivery to each A330-300 as described in the A330-300
              Standard Specification Ref. G 000 03000 Issue 6 Revision 1, dated
              15th July 1998, amended by Specification Change Notices ("SCN")
              for:

              i)      increase of design weights
                      Maximum Taxi Weight: (CONFIDENTIAL MATERIAL OMITTED AND
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT)pounds

                      Maximum Takeoff Weight: (CONFIDENTIAL MATERIAL OMITTED AND
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT)pounds

                      Maximum Landing Weight: (CONFIDENTIAL MATERIAL OMITTED AND
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT)pounds

                      Maximum Zero Fuel Weight: (CONFIDENTIAL MATERIAL OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT)pounds

              ii)     fitting of either:
                      (x) General Electric CF6-80E1A3 engines
                      (y) Pratt and Whitney PW4168A engines with Kevlar fan case
                      (z) Rolls-Royce Trent 772B engines except where otherwise
                      noted.

              These guarantees are comprehensive including the performance of
              both the airframe and engine in combination.

              For information only:

              For establishing FAA certified performance these guarantees have
              been based on:

              (x) the FAA certified Flight Manual of the A330-200 fitted with
              General Electric CF6-80E1A4 engines plus best estimated
              corrections for longer fuselage of the A330-300 and higher
              take-off thrust of the CF6-80E1A3 engines

              (y) the FAA certified Flight Manual of the A330-300 fitted with
              Pratt and Whitney PW4168A engines

              (z) the FAA certified Flight Manual of the A330-300 fitted with
              Rolls Royce Trent 772B engines, with, in each case, a take-off
              thrust rating flat rated to 86(degree)F (ISA+15(degree)C) at sea
              level.

                                 LA5C (RR)-2

<PAGE>

              For establishing uncertified performance these guarantees have
              been based on the In Flight Performance level relevant at the date
              of signature of the Purchase Agreement (the "IFP Level") and
              consistent with the Aircraft Performance Document (the "Orange
              Book")

              (x)     for CF6-80E1A3 engines : ref. AI/CM-T P3302 Issue 3
              (c)     for PW4168A engines : ref. AI/CM-T P3322 Issue 3
              (d)     for Trent 772B engines : ref. AI/CM-T P3342 Issue 3

         F.   Definitions:

              (i)     For the purpose of this Part A of this Letter Agreement
                      only, the term "Aircraft" is defined as any and all of the
                      A330-300 model aircraft to be acquired by the Buyer under
                      the Agreement.

              (ii)    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH
                      THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
                      REQUEST FOR CONFIDENTIAL TREATMENT)

1.      GUARANTEED PERFORMANCE

1.1     SPEED

        The level flight airspeed at an Aircraft gross weight of 460,000 pounds
        at a pressure altitude of 35,000 feet using maximum cruise thrust in
        ISA conditions shall not be less than a true Mach number of:
        (x) for CF6-80E1A3 engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
        SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
        REQUEST FOR CONFIDENTIAL TREATMENT)
        (y) for PW4168A engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
        SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
        REQUEST FOR CONFIDENTIAL TREATMENT)
        (z) for Trent 772B engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
        SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
        REQUEST FOR CONFIDENTIAL TREATMENT)

1.2     EN-ROUTE ONE ENGINE INOPERATIVE

        Each Aircraft shall meet minimum en-route climb gradient (currently
        1.1%) with one engine inoperative, the other operating at the maximum
        continuous thrust available at the altitude with air conditioning
        bleeds on, without anti-icing, at a gross weight of pounds in the
        cruise configuration in ISA conditions, at a geometric altitude of:
        (x) for CF6-80E1A3 engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
        SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
        REQUEST FOR CONFIDENTIAL TREATMENT)feet
        (y) for PW4168A engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
        SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
        REQUEST FOR CONFIDENTIAL TREATMENT)feet
        (z) for Trent 772B engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
        SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
        REQUEST FOR CONFIDENTIAL TREATMENT)feet

1.3      TAKE-OFF PERFORMANCE

                                 LA5C (RR)-3

<PAGE>

1.3.1    The FAR permissible take-off weight shall not be less than:
         (x) for CF6-80E1A3 engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)pounds
         (y) for PW4168A engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)pounds
         (z) for Trent 772B engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)pounds

         in the following conditions (assumed representative of):

         Pressure altitude: (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
         WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)
         Ambient temperature: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)
         Runway length: (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH
         THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)
         Slope: (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)
         Obstacles (8): (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
         WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)

1.3.2    The FAR permissible take-off weight shall not be less than
         (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)pounds in the following conditions (assumed representative
         of(CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)):

         Pressure altitude: (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
         WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)
         Ambient temperature: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT) Runway length: (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)Slope:
         (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)
         Obstacles (11): (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
         WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)(CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A

                                 LA5C (RR)-4

<PAGE>
         REQUEST FOR CONFIDENTIAL TREATMENT)(CONFIDENTIAL MATERIAL OMITTED AND
         FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
         TO A REQUEST FOR CONFIDENTIAL TREATMENT)(CONFIDENTIAL MATERIAL OMITTED
         AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
         PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)(CONFIDENTIAL MATERIAL
         OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)

1.4       ALL ENGINE CLIMB

          The time, fuel burn and distance in still air to climb from an initial
          climb altitude of 1,500 feet to a final climb altitude of 35,000 feet
          on a standard day, using the conditions and operating rules defined
          below and using not more than maximum climb thrust, shall not be more
          than the following guarantee values:
          (x) for CF6-80E1A3 engines:
               Time (minutes):
               NOMINAL: 27.6 mn TOLERANCE: 1.0 mn GUARANTEE: (CONFIDENTIAL
          MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
          COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)mn
               Fuel burn (pounds):
               NOMINAL: 11,890 lb TOLERANCE: 530 lb GUARANTEE: (CONFIDENTIAL
          MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
          COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)lb
               Distance (nautical miles)
               NOMINAL: 197 nm TOLERANCE: 8 nm GUARANTEE: (CONFIDENTIAL MATERIAL
          OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
          COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) nm
          (y) for PW4168A engines:
               Time (minutes):
               NOMINAL: 33.0 mn TOLERANCE: 1.5 mn GUARANTEE: (CONFIDENTIAL
          MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
          COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) mn
               Fuel burn (pounds):
               NOMINAL: 13,185 lb TOLERANCE:705 lb GUARANTEE: (CONFIDENTIAL
          MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
          COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)lb
               Distance (nautical miles)
               NOMINAL: 238 nm TOLERANCE: 12 nm GUARANTEE: (CONFIDENTIAL
          MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
          COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)nm
          (z) for Trent 772B engines:
               Time (minutes):
               NOMINAL: 25.0 mn TOLERANCE: 0.8 mn GUARANTEE: (CONFIDENTIAL
          MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
          COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)mn
               Fuel burn (pounds):
               NOMINAL: 11,110 lb TOLERANCE: 450 lb GUARANTEE: (CONFIDENTIAL
          MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
          COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)lb
               Distance (nautical miles)

                                 LA5C (RR)-5

<PAGE>

              NOMINAL: 178 nm TOLERANCE: 6 nm GUARANTEE: (CONFIDENTIAL MATERIAL
         OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)nm

         Conditions and operating rules:
         Initial Conditions:            A gross weight of 512,020 pounds
                                        A speed of 250 KCAS.
                                        The flaps and landing gear are
                                        retracted.
         Climb:                         The Aircraft climbs from the initial
                                        climb altitude to 10,000 feet altitude
                                        at 250 KCAS.
                                        The Aircraft then accelerates to a
                                        climb speed of 330 KCAS.
                                        The climb continues at 330 KCAS until
                                        0.82 Mach number is reached.
                                        The climb continues at 0.82 Mach number
                                        to the final climb altitude at a rate of
                                        climb not less than 300 feet per minute.

1.5   LANDING DISTANCE

         The FAR certified dry landing field length at an Aircraft gross weight
         of (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)pounds at sea level pressure altitude shall not
         be greater than:
         (x) for CF6-80E1A3 engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)feet
         (y) for PW4168A engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)feet
         (z) for Trent 772B engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)feet

2.       FUEL BURN GUARANTEE

2.1      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)AIRCRAFT SPECIFIC RANGE

The still air range expressed in nautical miles at an initial cruise altitude of
35,000 feet on a standard day at 0.82 Mach number, starting at a gross weight of
(CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) pounds and
consuming 140,000 pounds of fuel, and using not more than maximum cruise thrust
(except maximum climb thrust may be used during a step climb) and using the
conditions and operating rules defined below, shall not be less than the
following guarantee value for each Aircraft (the "Guaranteed (CONFIDENTIAL
MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) Specific Range"):
         (x) for CF6-80E1A3 engines:
              NOMINAL: 5,311 nm TOLERANCE: 106 nm GUARANTEE: (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)nm
         (y) for PW4168A engines:

                                  LA5C (RR)-6

<PAGE>

              NOMINAL: 5,292 nm TOLERANCE: 106 nm GUARANTEE: (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)nm
         (z) for Trent 772B engines:
              NOMINAL: 5,312 nm TOLERANCE: 106 nm GUARANTEE: (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)nm

         Conditions and operating rules:
         A step climb or multiple step climbs of 4,000 feet altitude may be used
         when beneficial to minimize fuel burn.

2.2      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)SPECIFIC RANGE

         The still air range expressed in nautical miles at an initial cruise
         altitude of 35,000 feet on a standard day at 0.82 Mach number, starting
         at a gross weight of (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)pounds and consuming 140,000 pounds
         of fuel, and using not more than maximum cruise thrust (except maximum
         climb thrust may be used during a step climb) and using the conditions
         and operating rules defined below, shall not be less than the following
         guarantee value (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
         WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)(the "Guaranteed (CONFIDENTIAL MATERIAL OMITTED
         AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
         PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)Specific Range"):
         (x) for CF6-80E1A3 engines:
              NOMINAL: 5,311 nm TOLERANCE: 53 nm GUARANTEE: (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) nm
         (y) for PW4168A engines:
              NOMINAL: 5,292 nm TOLERANCE: 53 nm GUARANTEE: (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)nm
         (z) for Trent 772B engines:
              NOMINAL: 5,312 nm TOLERANCE: 53 nm GUARANTEE: (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)nm

         Conditions and operating rules:
         A step climb or multiple step climbs of 4,000 feet altitude may be used
         when beneficial to minimize fuel burn.

3.       MISSION PAYLOAD RANGE GUARANTEE

For each Aircraft the payload for a stage length of (CONFIDENTIAL MATERIAL
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) nautical miles in still air
(representative of a (CONFIDENTIAL MATERIAL

                                  LA5C (RR)-7

<PAGE>

OMMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) route) using the conditions
and operating rules defined below, shall not be less than the following
guarantee value in pounds:
         (x) for CF6-80E1A3 engines:
              NOMINAL: 84,600 lb TOLERANCE: 4,100 lb GUARANTEE: (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)lb
         (y) for PW4168A engines:
              NOMINAL: 82,900 lb TOLERANCE: 4,100 lb GUARANTEE: (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) lb
         (z) for Trent 772B engines:
              NOMINAL: 84,000 lb TOLERANCE: 4,100 lb GUARANTEE: (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)lb

         Conditions and operating rules:
         Stage                          The stage length is defined as the sum
         Length:                        of the distances for climb, cruise, and
                                        descent.

         Takeoff:                       The airport altitude is 14 feet.
                                        The takeoff gross weight is 513,677
                                        pounds.

         Climbout                       Following the takeoff to 800 feet, the
         Maneuver:                      aircraft accelerates to 250 KCAS while
                                        climbing to 1,500 feet above the
                                        departure airport altitude and
                                        retracting flaps and landing gear.

         Climb:                         The aircraft climbs from 1,500 feet
                                        above the departure airport altitude to
                                        10,000 feet altitude at 250 KCAS.
                                        The aircraft then accelerates to a climb
                                        speed of 330 KCAS.
                                        The climb continues at 330 KCAS until
                                        0.82 Mach number is reached.
                                        The climb continues at 0.82 Mach number
                                        to the initial cruise altitude at a rate
                                        of climb not less than 300 feet per
                                        minute.
                                        The temperature is standard day during
                                        climb.
                                        Maximum climb thrust is used during
                                        climb.

         Cruise:                        The Aircraft cruises at 0.82 Mach
                                        number.
                                        The initial cruise altitude is 35,000
                                        feet.
                                        A step climb or multiple step climb of
                                        4,000 feet altitude may be used when
                                        beneficial to minimize fuel burn.
                                        The temperature is standard day during
                                        cruise.
                                        The cruise thrust is not to exceed
                                        maximum cruise thrust except during a
                                        step climb when maximum climb thrust may
                                        be used.

         Descent:                       The Aircraft descends from the final
                                        cruise altitude at 0.82 Mach number
                                        until 330 KCAS is reached.
                                        The descent continues at 330 KCAS to an
                                        altitude of 10,000 feet. At that
                                        altitude the Aircraft decelerates to 250
                                        KCAS.

                                  LA5C (RR)-8

<PAGE>

                                        The descent continues at 250 KCAS to an
                                        altitude of 1,500 feet above the
                                        destination airport altitude.
                                        Throughout the descent, the cabin
                                        pressure will be controlled to a maximum
                                        rate of descent equivalent to 350 feet
                                        per minute at sea level.
                                        The temperature is standard day during
                                        descent.

         Approach and                   The Aircraft decelerates to the final
         Landing Maneuver:              approach speed while extending landing
                                        gear and flaps, then descends and lands.

                                        The destination airport altitude is 841
                                        feet.

         Usable Reserve Fuel:           At the end of approach and landing, an
                                        amount of fuel corresponding to the
                                        profile defined below shall remain in
                                        the tanks:

                                        FAR Reserve - 31.5 minutes hold
                                        (representative of 30 minutes hold with
                                        5% mark-up for racetrack pattern) at
                                        1500ft, ISA,at actual Zero Fuel Weight.

                                        Alternate - alternate is assumed to be
                                        67 NM (Rochester, MN). Fuel burn and
                                        time include the following:
                                            Fuel for takeoff to operational
                                            climb speed with 2 minutes time
                                            allowance and no distance credit
                                            Optimum climb airspeed for fuel
                                            economy
                                            Cruise at LRC at optimum altitude
                                            Optimum descent airspeed for fuel
                                            economy
                                            Approach and land fuel with 5
                                            minutes time allowance and no
                                            distance credit
                                        (alternate fuel will never be less than
                                        fuel to a 15 minute alternate)

                                        International 10% - 10 minutes of fuel
                                        at end of cruise altitude, LRC, ISA,
                                        actual landing weight.

                                        Contingency (Holding) - 21 minutes hold
                                        (representative of 20 minutes hold with
                                        5% mark-up for racetrack pattern),
                                        FL150, ISA, actual landing weight.

         Fixed Allowances:              For the purpose of this guarantee and
                                        for the purpose of establishing
                                        compliance with this guarantee, the
                                        following shall be used as fixed
                                        quantities and allowances:

                                        Engine Start and Taxi-out: 800 pounds of
                                        fuel

                                        Takeoff and Climbout Maneuver: 1,650
                                            pounds of fuel for mission departure
                                            and 1,150 pounds of fuel for
                                            alternate

                                        Approach and Landing Maneuver: 420
                                            pounds of fuel for mission and 420
                                            pounds of fuel for alternate

                                        Taxi-in (shall be consumed from the
                                        reserve fuel): 500 pounds of fuel

                                  LA5C (RR)-9

<PAGE>

         The Operating Weight Empty (OWE) derived in Subparagraph 4.2 of this
         Part A is the basis for this mission guarantee.

4.       WEIGHT GUARANTEES

4.1      MANUFACTURER'S WEIGHT EMPTY

         The Seller guarantees that the Manufacturer's Weight Empty (as defined
         in the A330-300 Standard Specification set forth in the Preamble) of
         each Aircraft as defined in the Preamble, which will be derived from
         the weighing of each Aircraft, shall not be more than:

         (x) for CF6-80E1A3 engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)pounds for any (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
         EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)Aircraft
         (y) for PW4168A engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)pounds for any (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)Aircraft
         (z) for Trent 772B engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)pounds for any(CONFIDENTIAL MATERIAL
         OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) Aircraft

         and shall not be more than:
         (x) for CF6-80E1A3 engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)pounds for (CONFIDENTIAL MATERIAL
         OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)
         (y) for PW4168A engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)pounds for(CONFIDENTIAL MATERIAL
         OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)
         (z) for Trent 772B engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)pounds for (CONFIDENTIAL MATERIAL
         OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)

4.2      STRUCTURAL USABLE LOAD

         The Seller guarantees that the excess of the Maximum Zero Fuel Weight
         (as defined in the A330-300 Standard Specification set forth in the
         Preamble) of each Aircraft as defined in the Preamble over the
         Operating Weight Empty (as defined below) of such Aircraft, shall not
         be less than:
         (x) for CF6-80E1A3 engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A

                                  LA5C (RR)-10

<PAGE>

         REQUEST FOR CONFIDENTIAL TREATMENT)pounds for any (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
         EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)Aircraft
         (y) for PW4168A engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)pounds for any(CONFIDENTIAL MATERIAL
         OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)Aircraft
         (z) for Trent 772B engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)pounds for any(CONFIDENTIAL MATERIAL
         OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) Aircraft

         and shall not be less than:
         (x) for CF6-80E1A3 engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)pounds for the (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)
         (y) for PW4168A engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)pounds for the (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)
         (z) for Trent 772B engines: (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)pounds for the (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)

         Operating Weight Empty is the sum of the Manufacturer's Weight Empty
         (as defined in the Type Specification set forth in the Preamble) plus
         the following fixed allowances:
         (x) for CF6-80E1A3 engines:
                                            (CONFIDENTIAL MATERIAL OMITTED AND
         FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
         TO A REQUEST FOR CONFIDENTIAL TREATMENT)pounds for customer changes
                                            (CONFIDENTIAL MATERIAL OMITTED AND
         FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
         TO A REQUEST FOR CONFIDENTIAL TREATMENT)pounds for operator items
         (y) for PW4168A engines:
                                            (CONFIDENTIAL MATERIAL OMITTED AND
         FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
         TO A REQUEST FOR CONFIDENTIAL TREATMENT)pounds for customer changes
                                            (CONFIDENTIAL MATERIAL OMITTED AND
         FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
         TO A REQUEST FOR CONFIDENTIAL TREATMENT)pounds for operator items

         (z) for Trent 772B engines:
                                            (CONFIDENTIAL MATERIAL OMITTED AND
         FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
         TO A REQUEST FOR CONFIDENTIAL TREATMENT)pounds for customer changes

                                  LA5C (RR)-11

<PAGE>

                                            (CONFIDENTIAL MATERIAL OMITTED AND
         FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
         TO A REQUEST FOR CONFIDENTIAL TREATMENT)pounds for operator items

5.       GENERAL GUARANTEE CONDITIONS

5.1      AIRCRAFT CONFIGURATION

         Seller reserves the right to make reasonable and appropriate
         adjustments to the guarantees set forth in this Part A for any
         configuration change or deviation from the A330-300 Standard
         Specification which is agreed between Buyer and Seller subsequent to
         the date hereof, provided that any such adjustment is made
         contemporaneously with such A330-300 Standard Specification change or
         deviation.

5.2      PERFORMANCE DEFINITIONS

5.2.1    Performance and noise certification rules will be those required to
         obtain FAR certification under the FAA Airworthiness Code as defined in
         the Type Specification.

5.2.4    All performance data is based on the International Standard Atmosphere
         and specified variations. Unless otherwise stated all altitudes are
         pressure altitudes.

5.2.3    Unless otherwise stated, take-off and landing performance is based upon
         a hard, smooth, dry and level runway surface with zero wind, and
         assumes no line-up allowance.

5.2.4    Take-off and landing performance is based on the brakes and tires as
         specified in the aircraft configuration defined in the Preamble.

5.2.5    Devices such as flaps, landing gear, speed brakes, wheel brakes,
         anti-skid and engines will be employed in the manner which provides the
         best performance standard consistent with approved operations.

5.2.6    All guaranteed performance in this Part A is based upon no air bleed
         from the engines for airframe or engine anti-icing.

5.2.7    For take-off and take-off climb performance, landing and landing climb
         performance, no air will be bled from the engine for air conditioning.

5.2.8    For en route performance, engine bleeds consistent with normal
         operation of the air conditioning system, including recirculation, are
         assumed.

5.2.9    Normal electrical services will be in use consistent with the typical
         load schedule given in the A330-300 Standard Specification.

5.3.10   All guaranteed performance in this Part A assumes the use of approved
         fuel with a Lower Heating Value (the "LHV") of 18,590 BTU/lb and with a
         specific gravity of 6.7 pounds/gallon as such.

5.2.11   The speed, specific range and all-engine climb guarantees and the
         climb, cruise and descent portions of the mission guarantees are based
         on an Aircraft center of gravity location of 33 percent of the mean
         aerodynamic chord.

                                  LA5C (RR)-12

<PAGE>

5.3     COMPLIANCE

5.3.1    The Seller shall provide to Buyer a guarantee compliance report
         providing the compliance data for each Aircraft (the "Guarantee
         Compliance Report"), in a timely manner after final data is collected,
         but in no event later than ten (10) Working Days after acceptance by
         Buyer of the Aircraft. The Guarantee Compliance Report shall contain
         compliance results determined in accordance with this Subparagraph 5.3.

5.3.2    Compliance with the en-route one engine inoperative, takeoff
         performance and landing distance guarantees will be demonstrated with
         reference to performance data contained in the approved Flight Manual.
         Compliance with climb performance and speed will be demonstrated with
         reference to the IFP Level.

5.3.3    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

         a)       (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         b)       (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         c)       (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         d)       (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         e)       (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         f)       (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

5.3.4    The actual (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)Aircraft specific range, used for determining
         compliance with the fuel burn and mission payload guarantees, will be
         defined as the IFP Level corrected by the Correction Factor.

5.3.5    The actual (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)specific range, used for determining compliance
         with the fuel burn guarantee, will be defined upon delivery of each
         individual Aircraft as (CONFIDENTIAL

                                  LA5C (RR)-13

<PAGE>

         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)

5.3.6    Compliance with fuel burn guarantees shall be determined as follows:

         (i)      with respect to each Aircraft, if its actual (CONFIDENTIAL
                  MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
                  EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                  TREATMENT)Aircraft specific range meets the guarantee level
                  set forth in Subparagraph 2.1 of this Part A.

         (ii)   with respect to the(CONFIDENTIAL MATERIAL OMITTED AND FILED
                SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
                TO A REQUEST FOR CONFIDENTIAL TREATMENT), if, upon delivery of
                any Aircraft, the (CONFIDENTIAL MATERIAL OMITTED AND FILED
                SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
                TO A REQUEST FOR CONFIDENTIAL TREATMENT)specific range meets the
                guarantee level set forth in Subparagraph 2.2 of this Part A.
                (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                CONFIDENTIAL TREATMENT)

5.3.7    Compliance with the mission payload guarantee, as defined in Paragraph
         3 of this Part A, will be based on the actual individual Aircraft
         specific range as defined in Subparagraph 5.3.4 of this Part A and the
         actual Manufacturer's Weight Empty of the applicable Aircraft as
         determined pursuant to Subparagraph 5.3.8 of this Part A.

5.3.8    Compliance with the weight guarantees set forth in Subparagraphs 4.1
         and 4.2 of this Part A shall be demonstrated in a weight compliance
         report with reference to actual aircraft weighing results.

6.       ADJUSTMENT OF GUARANTEES

         Should any change be made to any law, governmental regulation or
         requirement or interpretation thereof ("Rule Change") by any
         governmental agency subsequent to the date of the Agreement, and should
         such Rule Change (i) more than minimally affect the Aircraft
         configuration or performance or both, and (ii) be required to obtain
         the Standard Airworthiness Certificate for the Aircraft, the guarantees
         set forth herein shall be appropriately modified to reflect the
         effect(s) of any such Rule Change(s).

7.       EXCLUSIVE GUARANTEES

         The guarantees set forth in this Part A supersede any similar
         guarantees from Seller that may be stated in the A330-300 Standard
         Specification or any other document, except for the guarantees set
         forth in Part B of this Letter Agreement.

8.       REMEDIES

8.1      GENERAL

8.1.1    In the event that the Seller fails to demonstrate compliance by one or
         more Aircraft (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH
         THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)with any of the guarantees set forth in this
         Part A, the Seller shall

                                 LA5C (RR)-14
<PAGE>

         (i)      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         (ii)     (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

8.1.2    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

8.1.3    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

8.1.4    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

8.1.5    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

8.1.6    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

8.2      FUEL BURN

         The Compensation for failure to comply with either the guarantee set
         forth in Subparagraph 2.1 or Subparagraph 2.2 of this Part A shall be
         (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

8.2.1    DEFICIENCY OF (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH
         THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)AIRCRAFT

         In the event that an (CONFIDENTIAL MATERIAL OMITTED AND FILED
                  SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
                  PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)Aircraft
                  fails to comply with the guarantee set forth in Subparagraph
                  2.1 of this Part A, the amount of Compensation (CONFIDENTIAL
                  MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
                  EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                  TREATMENT)

8.2.2    DEFICIENCY OF AIRCRAFT FLEET

         In the event that the (CONFIDENTIAL MATERIAL OMITTED AND FILED
                  SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
                  PURSUANT TO A REQUEST FOR

                                 LA5C (RR)-15
<PAGE>

                  CONFIDENTIAL TREATMENT)fails to comply with the guarantee set
                  forth in Subparagraph 2.2 of this Part A, the amount of
                  Compensation (CONFIDENTIAL MATERIAL OMITTED AND FILED
                  SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
                  PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)

8.3      PAYLOAD

         The Compensation for failure to comply with either the guarantees set
         forth in Subparagraph 1.3, Paragraph 3 or Subparagraph 4.2 of Part A of
         this Letter Agreement shall be (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)

8.3.1    MISSION PAYLOAD RANGE

         In the event that any Aircraft fails to meet the mission payload range
         guarantee in Paragraph 3 of this Part A, the amount of Compensation
         (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

8.3.2    STRUCTURAL USABLE LOAD

         In the event that any Aircraft (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)fail to meet the guarantee levels
         specified in Subparagraph 4.2 of this Part A, the Compensation shall
         be(CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)

         (i)      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         (ii)     (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

8.3.3    TAKE-OFF

         In the event that an Aircraft fails to meet the take-off guarantees set
         forth in Subparagraph 1.3 of this Part A, the amount of Compensation
         shall be (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT). The amount of Compensation hereunder shall
         (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

8.3.4    LANDING

         In the event that an Aircraft fails to meet the landing guarantee set
         forth in Subparagraph 1.5 of this Part A, the amount of Compensation
         shall be(CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT), provided that the Buyer demonstrates to the
         Seller that such deficiency adversely impacts the Buyer's operation of
         the affected Aircraft.

                                 LA5C (RR)-16
<PAGE>

8.4      MANUFACTURER'S WEIGHT EMPTY

In the event that the Manufacturer's Weight Empty (MWE) of an (CONFIDENTIAL
MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)Aircraft or of the
(CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) exceeds
the guarantee levels specified in Subparagraph 4.1 of this Part A the amount of
Compensation shall be (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT).

8.5      SPEED

         In the event that an Aircraft fails to meet the speed guarantee set
         forth in Subparagraph 1.1 of this Part A, the amount of Compensation
         shall be(CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT), subject to the limitations and conditions set
         forth in Subparagraph 8.8 of this Part A, provided that the Buyer
         demonstrates to the Seller that such deficiency adversely impacts the
         Buyer's operation of the affected Aircraft.

8.6      ONE ENGINE INOPERATIVE

         In the event that an Aircraft fails to meet the one engine inoperative
         guarantee set forth in Subparagraph 1.2 of this Part A, the amount of
         Compensation shall be(CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT), subject to the limitations and
         conditions set forth in Subparagraph 8.8 of this Part A, provided that
         the Buyer demonstrates to the Seller that such deficiency adversely
         impacts the Buyer's operation of the affected Aircraft.

8.7      ALL ENGINE CLIMB

         In the event that an Aircraft fails to meet the all engine climb
         guarantee set forth in Subparagraph 1.4 of this Part A, the amount of
         Compensation shall be(CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT), subject to the limitations and
         conditions set forth in Subparagraph 8.8 of this Part A, provided that
         the Buyer demonstrates to the Seller that such deficiency adversely
         impacts the Buyer's operation of the affected Aircraft.

8.8      LIMITATIONS AND CONDITIONS

         (i)      The Seller shall have the right to review and verify data
                  collected by the Buyer, which is provided to Seller for Seller
                  to perform the calculations of Compensation due hereunder.

         (ii)     If at any time following delivery of an Aircraft the Seller
                  restores the required performance level of an Aircraft which
                  has initially failed to meet the performance guarantee
                  requirements of Paragraphs 1, 2, 3 or 4 of this Part A, and
                  the Seller demonstrates compliance for such specific Aircraft
                  in accordance with the applicable compliance provisions of
                  this Part A, all further payments of Compensation required
                  under this Part A with respect to such initial failure shall
                  cease and the Seller shall have no further obligation to the
                  Buyer under this Part A for such initial failure in respect of
                  such Aircraft. Seller shall demonstrate compliance

                                 LA5C (RR)-17
<PAGE>

                  by(CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT), gathering data and producing a
                  Guarantee Compliance Report which demonstrates compliance for
                  such specific Aircraft in accordance with the applicable
                  compliance provisions of this Part A. The compliance level
                  achieved by such Aircraft shall be taken into account for all
                  (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)calculations for the purposes of this
                  Part A.

         (iii)    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         (iv)     (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         (v)      The Seller's maximum liability (CONFIDENTIAL MATERIAL OMITTED
                  AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
                  COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)

                  (x)      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
                           WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
                           TO A REQUEST FOR CONFIDENTIAL TREATMENT)

                  (y)      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
                           WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
                           TO A REQUEST FOR CONFIDENTIAL TREATMENT)

         (vi)     (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)as aforesaid shall be deemed to settle
                  any and all claims and remedies of the Buyer against the
                  Seller under this Part A provided that the Seller has first
                  endeavored to restore the required performance as per
                  Paragraph 8.1.1(i) above, but shall not settle or modify in
                  any respect any other claim or remedy of the Buyer against the
                  Seller. Nothing in this Paragraph 8.8 (vi) shall oblige the
                  Seller to (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
                  WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
                  REQUEST FOR CONFIDENTIAL TREATMENT)

                                 LA5C (RR)-18
<PAGE>

         PART B                A330-300 (CONFIDENTIAL MATERIAL OMITTED AND
         FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
         TO A REQUEST FOR CONFIDENTIAL TREATMENT) GUARANTEES

                  Seller hereby extends and grants to Buyer the (CONFIDENTIAL
                  MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
                  EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                  TREATMENT)guarantees with respect to the Aircraft set forth in
                  this Part B of this Letter Agreement, subject to the terms,
                  conditions, limitations and restrictions all as hereinafter
                  set out.

                  PREAMBLE

                  A.  Assumptions:

                  The guarantees defined below in this Part B are applicable to
                  each A330-300 Aircraft as described in the A330-300 Standard
                  Specification Ref. G 000 03000 Issue 6 Revision 1, dated 15th
                  July 1998, amended by Specification Change Notices ("SCN")
                  (the "Specification") for:

                      i)       increase of design weights
                               Maximum Taxi Weight:      (CONFIDENTIAL MATERIAL
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)pounds

                               Maximum Takeoff Weight:   (CONFIDENTIAL MATERIAL
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)pounds

                               Maximum Landing Weight:   (CONFIDENTIAL MATERIAL
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)pounds

                               Maximum Zero Fuel Weight: (CONFIDENTIAL MATERIAL
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)pounds

                      ii)      fitting of:
                               New Rolls-Royce Trent 772B engines

                  These guarantees are comprehensive including the performance
                  of both the airframe and engine in combination.

                      For information only:
                      For establishing uncertified performance these guarantees
                      have been based on the In Flight Performance level
                      relevant at the date of the signature of the Purchase
                      Agreement (the "IFP Level") and consistent with the
                      Aircraft Performance Document (the "Orange Book") ref.
                      AI/CM-T P3342 Issue 3.

                  B.  Definitions:

                                 LA5C (RR)-19
<PAGE>

                      (i)      For the purpose of this Part B of this Letter
                               Agreement only, the term "Aircraft" is defined as
                               any and all of the A330-300 model aircraft to be
                               acquired by the Buyer under the Agreement.

                      (ii)     (CONFIDENTIAL MATERIAL OMITTED AND FILED
                               SEPARATELY WITH THE SECURITIES AND EXCHANGE
                               COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                               TREATMENT)

1.       GENERAL PROVISIONS

1.1      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

1.2      The (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)Guarantees in this Part B are contingent upon:

          (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
          SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
          CONFIDENTIAL TREATMENT)(CONFIDENTIAL MATERIAL OMITTED AND FILED
          SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
          REQUEST FOR CONFIDENTIAL TREATMENT)

1.3      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

         (i)      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         (ii)     (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         (ii)     (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         (iii)    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT

         (iv)     (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

2.       FUEL BURN GUARANTEE

                                 LA5C (RR)-20
<PAGE>

2.1      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT) (expressed as a percentage) determined in accordance with
         the In-Flight Performance Program (IFP).

2.2      The Seller guarantees to the Buyer that the (CONFIDENTIAL MATERIAL
         OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) shall not
         be worse than the IFP Level (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT)

3.       MISSION PAYLOAD GUARANTEE

         The (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)as stated in Paragraph 2.2 of this Part B shall
         allow the carrying of a guaranteed payload of not less than:

         (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
                AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                TREATMENT) over an equivalent still air stage distance of
                (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                CONFIDENTIAL TREATMENT)nautical miles (assumed representative of
                (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                CONFIDENTIAL TREATMENT) for a winter operation) when operated
                under the conditions described below.

         a)     If the (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH
                THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                CONFIDENTIAL TREATMENT)as stated in Subparagraph 2.2 of this
                Part B is modified according to Subparagraph 1.3 of this Part B,
                the above guaranteed payload shall be modified accordingly,
                using the following relationship:

                (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                CONFIDENTIAL TREATMENT)

         b)     Available takeoff weight is assumed to be(CONFIDENTIAL MATERIAL
                OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
                COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)
                pounds.

         c)     The destination airport conditions are such as to allow the
                required landing weight to be used without performance
                restrictions and without exceeding the Maximum Landing Weight as
                defined in Type Specification referenced in the Preamble.

         d)     Conditions and operating rules:
                      Stage             The stage length is defined as the sum
                      Length:           of the distances for climb, cruise, and
                                        descent.

                                 LA5C (RR)-21
<PAGE>

                      Takeoff:          The airport altitude is 14 feet.
                                        The takeoff gross weight is
                                        (CONFIDENTIAL MATERIAL OMITTED AND FILED
                                        SEPARATELY WITH THE SECURITIES AND
                                        EXCHANGE COMMISSION PURSUANT TO A
                                        REQUEST FOR CONFIDENTIAL
                                        TREATMENT)pounds.

         Climbout                       Following the takeoff to 800 feet, the
         Maneuver:                      aircraft accelerates to 250 KCAS while
                                        climbing to 1,500 feet above the
                                        departure airport altitude and
                                        retracting flaps and landing gear.

         Climb:                         The aircraft climbs from 1,500 feet
                                        above the departure airport altitude to
                                        10,000 feet altitude at 250 KCAS.
                                        The aircraft then accelerates to a
                                        climb speed of 330 KCAS.
                                        The climb continues at 330 KCAS until
                                        0.82 Mach number is reached.
                                        The climb continues at 0.82 Mach number
                                        to the initial cruise altitude at a
                                        rate of climb not less than 300 feet
                                        per minute.
                                        The temperature is standard day during
                                        climb.
                                        Maximum climb thrust is used during
                                        climb.

         Cruise:                        The Aircraft cruises at 0.82 Mach
                                        number.
                                        The initial cruise altitude is 35,000
                                        feet.
                                        A step climb or multiple step climb of
                                        4,000 feet altitude may be used when
                                        beneficial to minimize fuel burn.
                                        The temperature is standard day during
                                        cruise.
                                        The cruise thrust is not to exceed
                                        maximum cruise thrust except during a
                                        step climb when maximum climb thrust
                                        may be used.

         Descent:                       The Aircraft descends from the final
                                        cruise altitude at 0.82 Mach number
                                        until 330 KCAS is reached.
                                        The descent continues at 330 KCAS to an
                                        altitude of 10,000 feet.
                                        At that altitude the Aircraft
                                        decelerates to 250 KCAS.
                                        The descent continues at 250 KCAS to an
                                        altitude of 1,500 feet above the
                                        destination airport altitude.
                                        Throughout the descent, the cabin
                                        pressure will be controlled to a
                                        maximum rate of descent equivalent to
                                        350 feet per minute at sea level.
                                        The temperature is standard day during
                                        descent.

         Approach and                   The Aircraft decelerates to the final
         Landing Maneuver:              approach speed while extending landing
                                        gear and flaps, then descends and lands.

                                        The destination airport altitude is 841
                                        feet.

         Usable Reserve Fuel:           At the end of approach and landing, an
                                        amount of fuel defined as follows shall
                                        remain in the tanks :

                                        FAR Reserve - 31.5 minutes hold
                                        (representative of 30 minutes hold with
                                        5% mark-up for racetrack pattern) at
                                        1500ft, ISA,at actual Zero Fuel Weight.

                                 LA5C (RR)-22
<PAGE>

                                   Alternate - alternate is assumed to be 67 NM
                                   (Rochester, MN). Fuel burn and time include
                                   the following:
                                            Fuel for takeoff to operational
                                            climb speed with 2 minutes time
                                            allowance and no distance credit
                                            Optimum climb airspeed for fuel
                                            economy
                                            Cruise at LRC at optimum altitude
                                            Optimum descent airspeed for fuel
                                            economy
                                            Approach and land fuel with 5
                                            minutes time allowance and no
                                            distance credit
                                   (alternate fuel will never be less than fuel
                                   to a 15 minute alternate)

                                   International 10% - 10 minutes of fuel at
                                   end of cruise altitude, LRC, ISA, actual
                                   landing weight.

                                   Contingency (Holding) - 21 minutes hold
                                   representative of 20 minutes hold with 5%
                                   mark-up for racetrack pattern), FL150, ISA,
                                   actual landing weight.

         Fixed Allowances:         For the purpose of this guarantee and for
                                   the purpose of establishing compliance with
                                   this guarantee, the following shall be used
                                   as fixed quantities and allowances:

                                   Engine Start and Taxi-out: (CONFIDENTIAL
                                        MATERIAL OMITTED AND FILED
                                        SEPARATELY WITH THE SECURITIES AND
                                        EXCHANGE COMMISSION PURSUANT TO A
                                        REQUEST FOR CONFIDENTIAL TREATMENT)
                                        pounds of fuel

                                   Takeoff and Climbout Maneuver:
                                   (CONFIDENTIAL MATERIAL OMITTED AND FILED
                                   SEPARATELY WITH THE SECURITIES AND
                                   EXCHANGE COMMISSION PURSUANT TO A
                                   REQUEST FOR CONFIDENTIAL TREATMENT)
                                   pounds of fuel for mission departure and
                                   (CONFIDENTIAL MATERIAL OMITTED AND FILED
                                   SEPARATELY WITH THE SECURITIES AND
                                   EXCHANGE COMMISSION PURSUANT TO A
                                   REQUEST FOR CONFIDENTIAL TREATMENT)
                                   pounds of fuel for alternate

                                   Approach and Landing Maneuver:
                                   (CONFIDENTIAL MATERIAL OMITTED AND FILED
                                   SEPARATELY WITH THE SECURITIES AND
                                   EXCHANGE COMMISSION PURSUANT TO A
                                   REQUEST FOR CONFIDENTIAL
                                   TREATMENT)pounds of fuel for mission and
                                   (CONFIDENTIAL MATERIAL OMITTED AND FILED
                                   SEPARATELY WITH THE SECURITIES AND
                                   EXCHANGE COMMISSION PURSUANT TO A
                                   REQUEST FOR CONFIDENTIAL
                                   TREATMENT)pounds of fuel for alternate

                                   Taxi-in (shall be consumed from the
                                   reserve fuel): (CONFIDENTIAL MATERIAL
                                        OMITTED AND FILED SEPARATELY WITH THE
                                        SECURITIES AND EXCHANGE COMMISSION
                                        PURSUANT TO A

                                 LA5C (RR)-23
<PAGE>

                                        REQUEST FOR CONFIDENTIAL
                                        TREATMENT)pounds of fuel

         e)     The mission payload guarantee is based on an Operating Weight
                Empty (OWE) composed of the actual Aircraft Fleet average
                Manufacturer's Weight Empty (MWE) as demonstrated at delivery of
                the Aircraft Fleet (but in no event more than (CONFIDENTIAL
                MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
                EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
                TREATMENT)pounds), plus the following fixed allowances:

                      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH
                      THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
                      REQUEST FOR CONFIDENTIAL TREATMENT)pounds for customer
                      changes
                      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH
                      THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
                      REQUEST FOR CONFIDENTIAL TREATMENT)pounds for operator
                      items
                      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH
                      THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
                      REQUEST FOR CONFIDENTIAL TREATMENT)pounds for in-service
                      growth

4.       GENERAL GUARANTEE CONDITIONS

4.1      AIRCRAFT CONFIGURATION

         Seller reserves the right to make reasonable and appropriate
         adjustments to the guarantees in this Part B for any configuration
         change or deviation from the Specification which is agreed between
         Buyer and Seller subsequent to the date hereof, provided that any such
         adjustment is made contemporaneously with such Specification change or
         deviation.

4.2      COMPLIANCE

4.2.1    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

4.2.2    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

         a)       (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         b)       (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         c)       (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

                                 LA5C (RR)-24

<PAGE>

         d)       (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

4.2.3    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

4.2.4    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

4.2.5    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

4.2.6    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

4.2.7    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

4.2.8    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

5        REMEDIES

5.1      General

5.1.1    In the event that the (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT) exceeds the guaranteed levels set
         forth in Subparagraph 2.2 of this Part B, then the Buyer and the
         Seller, (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)
         (i)      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)
         (ii)     (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)
         (iii)    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

                                 LA5C (RR)-25

<PAGE>

5.1.2    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

5.1.3    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

5.2      FUEL BURN-(CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT)

5.2.1    In the event that the (CONFIDENTIAL MATERIAL OMITTED AND FILED
                SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
                TO A REQUEST FOR CONFIDENTIAL TREATMENT fails to comply with the
                guarantee set forth in Subparagraph 2.2 of this Part B,
                (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                CONFIDENTIAL TREATMENT

5.2.2    If the Buyer believes the (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT) is within (CONFIDENTIAL MATERIAL
         OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) of the
         guarantee set forth in Subparagraph 2.2 of this Part B, Buyer shall
         give prompt written notice thereof. Upon Seller's receipt of any notice
         that the (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT) is within (CONFIDENTIAL MATERIAL OMITTED AND
         FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
         TO A REQUEST FOR CONFIDENTIAL TREATMENT ) is within (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) of the
         guarantee set forth in Subparagraph 2.2 of this Part B, (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT).

5.3      MISSION PAYLOAD RANGE

         In the event that the (CONFIDENTIAL MATERIAL OMITTED AND FILED
         SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
         REQUEST FOR CONFIDENTIAL TREATMENT) fails to meet the mission payload
         range guarantee set forth in Paragraph 3 of this Part B, (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT).

5.4      LIMITATIONS AND CONDITIONS

         (i)      The Seller shall have the right to review and verify data
                  collected by the Buyer, which is provided to Seller for Seller
                  to perform the calculations of compensation due hereunder.

                                 LA5C (RR)-26

<PAGE>

         (ii)     (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)
         (iii)    The Seller's maximum liability for the entire Guarantee Period
                  pursuant to
                  (x)      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
                           WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
                           TO A REQUEST FOR CONFIDENTIAL TREATMENT)
                  (y)      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
                           WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
                           TO A REQUEST FOR CONFIDENTIAL TREATMENT

         (iv)     The intent of Part B of this Letter Agreement is to provide
                  benefits to the Buyer as a result of the failure of the
                  Buyer's Aircraft to achieve the performance level stipulated
                  in the guarantees set forth in this Part B. It is not the
                  intent, however, to duplicate benefits provided to the Buyer
                  by the Seller under Part A of this Letter Agreement as a
                  result of the same failure. (CONFIDENTIAL MATERIAL OMITTED AND
                  FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
                  PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)

         (v)      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT) as aforesaid shall be deemed to settle
                  any and all claims and remedies of the Buyer against the
                  Seller under this Part B, but shall not settle or modify in
                  any respect any other claim or remedy of the Buyer against the
                  Seller.

UNQUOTE

         THIS LETTER AGREEMENT SETS FORTH THE EXCLUSIVE GUARANTEES, WARRANTIES,
         EXCLUSIVE LIABILITIES AND EXCLUSIVE OBLIGATIONS OF AVSA, AND THE
         EXCLUSIVE REMEDIES AVAILABLE TO NORTHWEST, ARISING FROM (BUT SOLELY TO
         THE EXTENT ARISING FROM) ANY FAILURE OF ANY AIRCRAFT (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) TO
         DEMONSTRATE COMPLIANCE WITH ANY OF THE GUARANTEES SET FORTH IN THIS
         LETTER AGREEMENT, INCLUDING BUT NOT LIMITED TO ANY IMPLIED WARRANTY OF
         MERCHANTABILITY OR FITNESS, ANY IMPLIED WARRANTY ARISING FROM COURSE OF
         PERFORMANCE, COURSE OF DEALING OR USAGE OF TRADE, ANY OBLIGATION OR
         LIABILITY OF AVSA OR ANY RIGHT, CLAIM OR REMEDY OF BUYER IN CONTRACT OR
         IN TORT, WHETHER OR NOT ARISING FROM SELLER'S NEGLIGENCE, ACTUAL OR
         IMPUTED, INTENTIONAL ACT, OR STRICT LIABILITY AND ANY OBLIGATION OR
         LIABILITY OF SELLER OR ANY RIGHT, CLAIM OR REMEDY OF BUYER FOR LOSS OF
         OR DAMAGE TO ANY AIRCRAFT, COMPONENT, EQUIPMENT, ACCESSORY OR PART, FOR
         LOSS OF USE, REVENUE OR PROFIT WITH RESPECT TO ANY AIRCRAFT, COMPONENT,
         EQUIPMENT, ACCESSORY OR PART, OR FOR ANY OTHER DIRECT, INCIDENTAL OR
         CONSEQUENTIAL DAMAGES, PROVIDED THAT IN THE EVENT THAT ANY OF THE
         AFORESAID PROVISIONS SHOULD FOR ANY REASON BE HELD UNLAWFUL OR
         OTHERWISE INEFFECTIVE THE REMAINDER OF THIS PARAGRAPH SHALL REMAIN IN
         FULL FORCE AND EFFECT AND PROVIDED, FURTHER, THAT NOTHING IN THIS
         LETTER AGREEMENT SHALL BE DEEMED TO MODIFY, SETTLE, COMPROMISE, LIMIT,
         RELEASE OR OTHERWISE AFFECT ANY OTHER CLAIM, RIGHT OR REMEDY OF
         NORTHWEST

                                 LA5C (RR)-27

<PAGE>

         AGAINST AVSA OR THE MANUFACTURER. THE GUARANTEES SET FORTH IN THIS
         LETTER AGREEMENT SHALL NOT BE EXTENDED, ALTERED OR VARIED EXCEPT BY A
         WRITTEN INSTRUMENT SIGNED BY AVSA AND NORTHWEST.

         ASSIGNMENT

         Notwithstanding any other provision of this Letter Agreement or of the
         Agreement, this Letter Agreement and the rights and obligations of
         Northwest hereunder shall not be assigned or transferred in any manner
         without the prior written consent of AVSA, and any attempted assignment
         or transfer in contravention of the provisions of this paragraph shall
         be void and of no force or effect.

                                 LA5C (RR)-28

<PAGE>

If the foregoing correctly sets forth our understanding, please execute the
original and one (1) copy hereof in the space provided below and return a copy
to AVSA.

                                            Very truly yours,

                                            AVSA, S.A.R.L.

                                            By:  /s/ Francois Bensier
                                                 _____________________________

                                            Its: AVSA Chief Executive Officer
                                                 _____________________________

Accepted and Agreed

NORTHWEST AIRLINES, INC.

By:  /s/ Gregory A. May
     ____________________________________

Its: Vice President Aircraft Transactions
     ____________________________________

(CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
         EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)

                                 LA5C (RR)-29

<PAGE>

                             LETTER AGREEMENT NO. 6

                                                         As of December 21, 2000

Northwest Airlines, Inc.
2700 Lone Oak Parkway
Eagan, Minnesota 55121

Re:  A330-500

Dear Ladies and Gentlemen:

         Northwest Airlines, Inc. ("Northwest"), and AVSA, S.A.R.L. ("AVSA"),
have entered into an Airbus A330 Purchase Agreement, dated as of even date
herewith (the "Agreement"), which covers, among other things, the sale by AVSA
and the purchase by Northwest of certain Aircraft, under the terms and
conditions set forth in said Agreement. The parties hereto have agreed to set
forth in this Letter Agreement No. 6 (the "Letter Agreement") certain additional
terms and conditions regarding the sale of the Aircraft provided for in the
Agreement. Capitalized terms used herein and not otherwise defined in this
Letter Agreement shall have the meanings assigned thereto in the Agreement. The
terms "herein," "hereof" and "hereunder" and words of similar import refer to
this Letter Agreement.

         The parties hereto agree that this Letter Agreement shall constitute an
integral, nonseverable part of said Agreement, that the provisions of said
Agreement are hereby incorporated herein by reference, and that this Letter
Agreement shall be governed by the provisions of said Agreement, except that if
the Agreement and this Letter Agreement have specific provisions that are
inconsistent, the specific provisions contained in this Letter Agreement shall
govern.

1.       A330-500 LAUNCH

         Northwest has expressed serious interest in placing future orders for
         the Converted Firm A330-500 Aircraft, under the terms of Paragraph 3 of
         Letter Agreement No. 2 to the Agreement. Currently, the A330-500
         aircraft is under study with the Manufacturer. In response to
         Northwest's interest, AVSA shall make reasonable efforts to cause the
         Manufacturer to launch the A330-500 aircraft into production, subject
         to the Manufacturer's industrial and commercial constraints and the
         Manufacturer's board approval. (CONFIDENTIAL MATERIAL

                                                                           LA6-1

<PAGE>

         OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)
2.       ASSIGNMENT

         Notwithstanding any other provision of this Letter Agreement or of the
         Agreement, this Letter Agreement and the rights and obligations of
         Northwest hereunder shall not be assigned or transferred in any manner
         without the prior written consent of AVSA, and any attempted assignment
         or transfer in contravention of the provisions of this Paragraph 2
         shall be void and of no force or effect.

                                                                           LA6-2
<PAGE>

         If the foregoing correctly sets forth our understanding, please execute
the original and one (1) copy hereof in the space provided below and return both
copies to AVSA.

                                              Very truly yours,

                                              AVSA, S.A.R.L.

                                              By:  /s/ Francois Bensier
                                                   _____________________________

                                              Its: AVSA Chief Executive Officer
                                                   _____________________________

Accepted and Agreed

NORTHWEST AIRLINES, INC.

By:  /s/ Gregory A. May
     ____________________________________

Its: Vice President Aircraft Transactions
     ____________________________________

                                                                           LA6-3

<PAGE>

                             LETTER AGREEMENT NO. 7

                                                         As of December 21, 2000

Northwest Airlines, Inc.
2700 Lone Oak Parkway
Eagan, Minnesota 55121

Re:  MISCELLANEOUS ISSUES

Dear Ladies and Gentlemen:

         Northwest Airlines, Inc. ("Northwest"), and AVSA, S.A.R.L. ("AVSA"),
have entered into an Airbus A330 Purchase Agreement, dated as of even date
herewith (the "Agreement"), which covers, among other things, the sale by AVSA
and the purchase by Northwest of certain Aircraft, under the terms and
conditions set forth in said Agreement. The parties hereto have agreed to set
forth in this Letter Agreement No. 7 (the "Letter Agreement") certain additional
terms and conditions regarding the sale of the Aircraft provided for in the
Agreement. Capitalized terms used herein and not otherwise defined in this
Letter Agreement shall have the meanings assigned thereto in the Agreement. The
terms "herein," "hereof" and "hereunder" and words of similar import refer to
this Letter Agreement.

         The parties hereto agree that this Letter Agreement shall constitute an
integral, nonseverable part of said Agreement, that the provisions of said
Agreement are hereby incorporated herein by reference, and that this Letter
Agreement shall be governed by the provisions of said Agreement, except that if
the Agreement and this Letter Agreement have specific provisions that are
inconsistent, the specific provisions contained in this Letter Agreement shall
govern.

1.       SUBCLAUSE (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)

         (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

         is hereby superseded and replaced by the following quoted provisions:

                                                                           LA7-1
<PAGE>

         QUOTE

         (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

         UNQUOTE

2.       (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

3.       (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

4.       (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT) DELAYS

         (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

5.       ASSIGNMENT

         Notwithstanding any other provision of this Letter Agreement or of the
         Agreement, this Letter Agreement and the rights and obligations of
         Northwest hereunder shall not be assigned or transferred in any manner
         without the prior written consent of AVSA, and any attempted assignment
         or transfer in contravention of the provisions of this Paragraph 5
         shall be void and of no force or effect.

         If the foregoing correctly sets forth our understanding, please execute
the original and one (1) copy hereof in the space provided below and return both
copies to AVSA.

                                              Very truly yours,

                                              AVSA, S.A.R.L.

                                              By:  /s/ Francois Bensier
                                                   _____________________________

                                              Its: AVSA Chief Executive Officer
                                                   _____________________________

                                                                          LA7-2

<PAGE>

Accepted and Agreed

NORTHWEST AIRLINES, INC.

By:  /s/ Gregory A. May
     ____________________________________

Its: Vice President Aircraft Transactions
     ____________________________________

                                                                          LA7-3

<PAGE>

                             LETTER AGREEMENT NO. 8

                                                         As of December 21, 2000

Northwest Airlines, Inc.
2700 Lone Oak Parkway
Eagan, Minnesota 55121

Re:  PREDELIVERY PAYMENTS

Dear Ladies and Gentlemen:

         Northwest Airlines, Inc. ("Northwest"), and AVSA, S.A.R.L. ("AVSA"),
have entered into an Airbus A330 Purchase Agreement, dated as of even date
herewith (the "Agreement"), which covers, among other things, the sale by AVSA
and the purchase by Northwest of certain Aircraft, under the terms and
conditions set forth in said Agreement. The parties hereto have agreed to set
forth in this Letter Agreement No. 8 (the "Letter Agreement") certain additional
terms and conditions regarding the sale of the Aircraft provided for in the
Agreement. Capitalized terms used herein and not otherwise defined in this
Letter Agreement shall have the meanings assigned thereto in the Agreement. The
terms "herein," "hereof" and "hereunder" and words of similar import refer to
this Letter Agreement.

         The parties hereto agree that this Letter Agreement shall constitute an
integral, nonseverable part of said Agreement, that the provisions of said
Agreement are hereby incorporated herein by reference, and that this Letter
Agreement shall be governed by the provisions of said Agreement, except that if
the Agreement and this Letter Agreement have specific provisions that are
inconsistent, the specific provisions contained in this Letter Agreement shall
govern.

1.       PREDELIVERY PAYMENT SCHEDULE

1.1      Predelivery Payments for the Aircraft will be as set forth in the
         payment schedule below in Subparagraph 1.2. The predelivery payment
         reference price will be the sum of the Base Price of the Airframe and
         the Base Price of the Propulsion Systems at January 2000 delivery
         conditions, escalated at a noncompounded annual rate of (CONFIDENTIAL
         MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT) to the
         year of delivery of the applicable Aircraft. The Predelivery Payments
         are nonrefundable, except as otherwise provided in the

                                                                          LA8-1

<PAGE>

         Agreement, and will be paid to AVSA for each Aircraft according to the
         following schedule.

                                                                          LA8-2

<PAGE>

1.2      PREDELIVERY PAYMENT SCHEDULE FOR THE AIRCRAFT

<TABLE>
<CAPTION>

                  PAYMENT                          PAYMENT DATE                   PERCENTAGE OF PREDELIVERY
                                                                                   PAYMENT REFERENCE PRICE
                 --------------------------------------------------------------------------------------------
<S>                                     <C>                                     <C>
                                                                                (CONFIDENTIAL MATERIAL
                                                                                      OMITTED AND FILED
                                        On signature of the Agreement, in             SEPARATELY WITH THE
                                        respect of Firm Aircraft, and at              SECURITIES AND
                  1ST                   option exercise, in respect of                EXCHANGE COMMISSION
                                        Option Aircraft                               PURSUANT TO A REQUEST
                                                                                      FOR CONFIDENTIAL
                                                                                      TREATMENT)
                 --------------------------------------------------------------------------------------------
                                        In respect of all Aircraft, no later
                                        than the first Working Day of the
                                        following months
                 --------------------------------------------------------------------------------------------
                                                                                (CONFIDENTIAL MATERIAL OMITTED
                                                                                      AND FILED SEPARATELY
                                                                                      WITH THE SECURITIES AND
                                                                                      EXCHANGE COMMISSION
                  2ND                   month before delivery                         PURSUANT TO A REQUEST
                                                                                      FOR CONFIDENTIAL
                                                                                      TREATMENT)
                 --------------------------------------------------------------------------------------------

                                                                          LA8-3

<PAGE>

<CAPTION>
                 --------------------------------------------------------------------------------------------
<S>                                     <C>                                     <C>
                                                                                (CONFIDENTIAL MATERIAL OMITTED
                                                                                      AND FILED SEPARATELY
                                                                                      WITH THE SECURITIES AND
                                                                                      EXCHANGE COMMISSION
                  3RD                   month before delivery                         PURSUANT TO A REQUEST
                                                                                      FOR CONFIDENTIAL
                                                                                      TREATMENT)
                 --------------------------------------------------------------------------------------------
                                                                                (CONFIDENTIAL MATERIAL OMITTED
                                                                                      AND FILED SEPARATELY
                                                                                      WITH THE SECURITIES AND
                                                                                      EXCHANGE COMMISSION
                  4TH                   month before delivery                         PURSUANT TO A REQUEST
                                                                                      FOR CONFIDENTIAL
                                                                                      TREATMENT)
                 --------------------------------------------------------------------------------------------

                                                                          LA8-4

<PAGE>

<CAPTION>
                 --------------------------------------------------------------------------------------------
<S>                                     <C>                                     <C>
                                                                                (CONFIDENTIAL MATERIAL OMITTED
                                                                                      AND FILED SEPARATELY
                                                                                      WITH THE SECURITIES AND
                                                                                      EXCHANGE COMMISSION
                                        TOTAL PAYMENT BEFORE DELIVERY                 PURSUANT TO A REQUEST
                                                                                      FOR CONFIDENTIAL
                                                                                      TREATMENT)
                 --------------------------------------------------------------------------------------------
</TABLE>

2.       (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

2.1      FIRM AIRCRAFT

2.1.1    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

2.1.2    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

2.1.3    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

2.1.4    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

                                                                          LA8-5

<PAGE>

2.1.5    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

2.2      OPTION AIRCRAFT AND PURCHASE RIGHT AIRCRAFT

2.2.1    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

2.2.2    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

2.2.3    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

2.2.4    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

2.3      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

2.3.1    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

2.3.2    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

2.3.3    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

2.4      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

2.4.1    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)
                                                                          LA8-6

<PAGE>

2.4.2    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

2.4.2.1  (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

                  (i)      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
                           WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
                           TO A REQUEST FOR CONFIDENTIAL TREATMENT)

                  (ii)     (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
                           WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
                           TO A REQUEST FOR CONFIDENTIAL TREATMENT)

                           (1)      (CONFIDENTIAL MATERIAL OMITTED AND FILED
                                    SEPARATELY WITH THE SECURITIES AND EXCHANGE
                                    COMMISSION PURSUANT TO A REQUEST FOR
                                    CONFIDENTIAL TREATMENT)

                           (2)      (CONFIDENTIAL MATERIAL OMITTED AND FILED
                                    SEPARATELY WITH THE SECURITIES AND EXCHANGE
                                    COMMISSION PURSUANT TO A REQUEST FOR
                                    CONFIDENTIAL TREATMENT)

                           (3)      (CONFIDENTIAL MATERIAL OMITTED AND FILED
                                    SEPARATELY WITH THE SECURITIES AND EXCHANGE
                                    COMMISSION PURSUANT TO A REQUEST FOR
                                    CONFIDENTIAL TREATMENT)

                  (iii)    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
                           WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
                           TO A REQUEST FOR CONFIDENTIAL TREATMENT)

                  (iv)     (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
                           WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
                           TO A REQUEST FOR CONFIDENTIAL TREATMENT)

                                                                          LA8-7

<PAGE>

2.4.2.2  (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

2.5      MISCELLANEOUS

2.5.1    Upon the termination of the Agreement as to an Aircraft either (i) in
         the circumstances contemplated in Subclauses 10.2, 10.3 or 10.5 of the
         Agreement, or (ii) in the circumstances contemplated in Subclauses 11.4
         or 11.5 of the Agreement, in the event that the (CONFIDENTIAL MATERIAL
         OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT).

2.5.2    Upon the termination of the Agreement by Northwest pursuant to
         Subclause 21.2 of the Agreement, (CONFIDENTIAL MATERIAL OMITTED AND
         FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
         TO A REQUEST FOR CONFIDENTIAL TREATMENT).

3.       ASSIGNMENT

         Notwithstanding any other provision of this Letter Agreement or of the
         Agreement, this Letter Agreement and the rights and obligations of
         Northwest hereunder shall not be assigned or transferred in any manner
         without the prior written consent of AVSA, and any attempted assignment
         or transfer in contravention of the provisions of this Paragraph 3
         shall be void and of no force or effect.

         If the foregoing correctly sets forth our understanding, please execute
         the original and one (1) copy hereof in the space provided below and
         return both copies to AVSA.

                                              Very truly yours,

                                              AVSA, S.A.R.L.

                                              By:  /s/ Francois Bensier
                                                   _____________________________

                                              Its: AVSA Chief Executive Officer
                                                   _____________________________

Accepted and Agreed

NORTHWEST AIRLINES, INC.

                                                                          LA8-8

<PAGE>

By:  /s/ Gregory A. May
     ____________________________________

Its: Vice President Aircraft Transactions
     ____________________________________

                                                                          LA8-9

<PAGE>

                                                                       EXHIBIT 1

(CONFIDENTIAL MATERIAL OMMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT).

                                                                          LA8-10

<PAGE>

                             LETTER AGREEMENT NO. 9

                                                         As of December 21, 2000

Northwest Airlines, Inc.
2700 Lone Oak Parkway
Eagan, Minnesota 55121

Re:  AIRCRAFT CUSTOMIZATION

Dear Ladies and Gentlemen:

         Northwest Airlines, Inc. ("Northwest"), and AVSA, S.A.R.L. ("AVSA"),
have entered into an Airbus A330 Purchase Agreement, dated as of even date
herewith (the "Agreement"), which covers, among other things, the sale by AVSA
and the purchase by Northwest of certain Aircraft, under the terms and
conditions set forth in said Agreement. The parties hereto have agreed to set
forth in this Letter Agreement No. 9 (the "Letter Agreement") certain additional
terms and conditions regarding the sale of the Aircraft provided for in the
Agreement. Capitalized terms used herein and not otherwise defined in this
Letter Agreement will have the meanings assigned thereto in the Agreement. The
terms "herein," "hereof" and "hereunder" and words of similar import refer to
this Letter Agreement.

         The parties hereto agree that this Letter Agreement will constitute an
integral, nonseverable part of said Agreement, that the provisions of said
Agreement are hereby incorporated herein by reference, and that this Letter
Agreement will be governed by the provisions of said Agreement, except that if
the Agreement and this Letter Agreement have specific provisions that are
inconsistent, the specific provisions contained in this Letter Agreement will
govern.

1.       AVSA-SUPPLIED  BUYER FURNISHED EQUIPMENT

         Northwest and AVSA agree that the seats, galleys and stowages that are
         defined as Buyer Furnished Equipment in this Agreement will be
         converted into Seller Furnished Equipment (the "AVSA-Supplied Buyer
         Furnished Equipment") as contemplated in Subclause 18.7 of the
         Agreement. Northwest and AVSA will, as soon as feasible after the date
         hereof, enter into applicable SCN's with respect to these Buyer
         Furnished Equipment to Seller Furnished Equipment
         conversions.(CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY

                                                                           LA9-1

<PAGE>

         WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT) All other terms and conditions of Subclause
         18.7 of the Agreement will apply.

2        (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)CHANGES TO THE STANDARD SPECIFICATION

         The Aircraft will be delivered with

                  (i)      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
                           WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
                           TO A REQUEST FOR CONFIDENTIAL TREATMENT)

                  (ii)     (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
                           WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
                           TO A REQUEST FOR CONFIDENTIAL TREATMENT)

                  (iii)    (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
                           WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
                           TO A REQUEST FOR CONFIDENTIAL TREATMENT)

                  (iv)     (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
                           WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
                           TO A REQUEST FOR CONFIDENTIAL TREATMENT)

                  (v)      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
                           WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
                           TO A REQUEST FOR CONFIDENTIAL TREATMENT)

         Northwest and AVSA will, as soon as feasible after the date hereof,
         enter into applicable SCN's with respect to the above modifications.
         AVSA confirms that there will be no additional charge to Northwest with
         respect to such SCN's.

3.       ASSIGNMENT

         Notwithstanding any other provision of this Letter Agreement or of the
         Agreement, this Letter Agreement and the rights and obligations of
         Northwest hereunder will not be assigned or transferred in any manner
         without the prior

                                                                           LA9-2

<PAGE>

         written consent of AVSA, and any attempted assignment or transfer in
         contravention of the provisions of this Paragraph 3 will be void and of
         no force or effect.

                                                                           LA9-3

<PAGE>

         If the foregoing correctly sets forth our understanding, please execute
the original and one (1) copy hereof in the space provided below and return both
copies to AVSA.

                                              Very truly yours,

                                              AVSA, S.A.R.L.

                                              By:  /s/ Francois Bensier
                                                   _____________________________

                                              Its: AVSA Chief Executive Officer
                                                   _____________________________

Accepted and Agreed

NORTHWEST AIRLINES, INC.

By:  /s/ Gregory A. May
     ____________________________________

Its: Vice President Aircraft Transactions
     ____________________________________

                                                                           LA9-4

<PAGE>

                             LETTER AGREEMENT NO. 10

                                                         As of December 21, 2000

Northwest Airlines, Inc.
2700 Lone Oak Parkway
Eagan, Minnesota 55121

Re: (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)

Dear Ladies and Gentlemen:

         Northwest Airlines, Inc. ("Northwest"), and AVSA, S.A.R.L. ("AVSA"),
have entered into an Airbus A330 Purchase Agreement, dated as of even date
herewith (the "Agreement"), which covers, among other matters, the sale by AVSA
and the purchase by Northwest of certain Aircraft, under the terms and
conditions set forth in said Agreement. Northwest and AVSA have agreed to set
forth in this Letter Agreement No. 10 (the "Letter Agreement") certain
additional terms and conditions regarding the sale of the Aircraft. Capitalized
terms used herein and not otherwise defined in this Letter Agreement will have
the meanings assigned thereto in the Agreement. The terms "herein," "hereof" and
"hereunder" and words of similar import refer to this Letter Agreement.

         Both parties agree that this Letter Agreement will constitute an
integral, nonseverable part of said Agreement, that the provisions of said
Agreement are hereby incorporated herein by reference, and that this Letter
Agreement will be governed by the provisions of said Agreement, except that if
the Agreement and this Letter Agreement have specific provisions that are
inconsistent, the specific provisions contained in this Letter Agreement will
govern.

1.       (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

1.1      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

1.2      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

                                                                          LA10-1

<PAGE>

1.3      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

1.4      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

         (i)      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         (ii)     (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

2.       (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

         (i)      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         (ii)     (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

                  (a)      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
                           WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
                           TO A REQUEST FOR CONFIDENTIAL TREATMENT)

                  (b)      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
                           WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
                           TO A REQUEST FOR CONFIDENTIAL TREATMENT)

     ASSIGNMENT

         Notwithstanding any other provision of this Letter Agreement or of the
         Agreement, this Letter Agreement and the rights and obligations of
         Northwest hereunder will not be assigned or transferred in any manner
         without the prior written consent of AVSA, and any attempted assignment
         or transfer in contravention of the provisions of this Paragraph 3 will
         be void and of no force or effect.

                                                                          LA10-2

<PAGE>

         If the foregoing correctly sets forth our understanding, please execute
the original and one (1) copy hereof in the space provided below and return a
copy to AVSA.

                                              Very truly yours,

                                              AVSA, S.A.R.L.

                                              By:  /s/ Francois Bensier
                                                   _____________________________

                                              Its: AVSA Chief Executive Officer
                                                   _____________________________

Accepted and Agreed

NORTHWEST AIRLINES, INC.

By:  /s/ Gregory A. May
     ____________________________________

Its: Vice President Aircraft Transactions
     ____________________________________

                                                                          LA10-3

<PAGE>

                             LETTER AGREEMENT NO. 11

                                                         As of December 21, 2000

Northwest Airlines, Inc.
2700 Lone Oak Parkway
Eagan, Minnesota 55121

Re: (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT)

Dear Ladies and Gentlemen:

         Northwest Airlines, Inc. ("Northwest"), and AVSA, S.A.R.L. ("AVSA"),
have entered into an Airbus A330 Purchase Agreement, dated as of even date
herewith (the "Agreement"), which covers, among other things, the sale by AVSA
and the purchase by Northwest of certain Aircraft, under the terms and
conditions set forth in said Agreement. The parties hereto have agreed to set
forth in this Letter Agreement No. 11 (the "Letter Agreement") certain
additional terms and conditions regarding the sale of the Aircraft provided for
in the Agreement. Capitalized terms used herein and not otherwise defined in
this Letter Agreement will have the meanings assigned thereto in the Agreement.
The terms "herein," "hereof" and "hereunder" and words of similar import refer
to this Letter Agreement.

         The parties hereto agree that this Letter Agreement will constitute an
integral, nonseverable part of said Agreement, that the provisions of said
Agreement are hereby incorporated herein by reference, and that this Letter
Agreement will be governed by the provisions of said Agreement, except that if
the Agreement and this Letter Agreement have specific provisions that are
inconsistent, the specific provisions contained in this Letter Agreement will
govern.

1.       EXCUSABLE DELAY

         In the event AVSA does not deliver an Aircraft during its original
         scheduled delivery month due to circumstances constituting an Excusable
         Delay, (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)

                                                                          LA11-1

<PAGE>

         (i)      (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
                  SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
                  CONFIDENTIAL TREATMENT)

         (ii)     (ii) (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH
                  THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST
                  FOR CONFIDENTIAL TREATMENT)

2.       INEXCUSABLE DELAY

         In the event AVSA does not deliver an Aircraft during its original
         scheduled delivery month due to circumstances not constituting an
         Excusable Delay, (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY
         WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
         CONFIDENTIAL TREATMENT)

3.       (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

3.1      FIRM AIRCRAFT

         (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

         UNQUOTE

3.2      OPTION AIRCRAFT AND PURCHASE RIGHT AIRCRAFT

         (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

         QUOTE

         (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITHTHE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

         UNQUOTE

                                                                          LA11-2

<PAGE>

4.       (CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES
         AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
         TREATMENT)

5.       PRICE ADJUSTMENT

         If AVSA selects a substitute index by pursuant to Subparagraph 5.1 of
         Exhibit D to the Agreement, it will be one that is generally applied to
         other customers and not applied solely to the Agreement.

6.       ASSIGNMENT

         Notwithstanding any other provision of this Letter Agreement or of the
         Agreement, this Letter Agreement and the rights and obligations of
         Northwest hereunder will not be assigned or transferred in any manner
         without the prior written consent of AVSA, and any attempted assignment
         or transfer in contravention of the provisions of this Paragraph 6 will
         be void and of no force or effect.

If the foregoing correctly sets forth our understanding, please execute the
original and one (1) copy hereof in the space provided below and return both
copies to AVSA.

                                              Very truly yours,

                                              AVSA, S.A.R.L.

                                              By:  /s/ Francois Bensier
                                                   _____________________________

                                              Its: AVSA Chief Executive Officer
                                                   _____________________________

Accepted and Agreed

NORTHWEST AIRLINES, INC.

By:  /s/ Gregory A. May
     ____________________________________

Its: Vice President Aircraft Transactions
     ____________________________________

                                                                          LA11-3

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