Document:

<PAGE>

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                          TRUST INDENTURE AND MORTGAGE
                                    [N___TZ]

                                [OWNED AIRCRAFT]

                          Dated as of _______ __, ____

                                     Between

                            AMERICAN TRANS AIR, INC.,

                                      Owner

                                       and

                            WILMINGTON TRUST COMPANY,
                         not in its individual capacity,
                       except as expressly stated herein,
                            but solely as Mortgagee,

                                    Mortgagee

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Equipment Notes Covering One Boeing model 737-800 aircraft bearing United States
registration no. N___TZ and manufacturer's serial no. _____, including two CFM
International model CFM56-7B27 engines bearing manufacturer's serial nos. _____
and _____ .

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2002 EETC - Mortgage (Owned) (10)

<PAGE>

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>

                                                                                                                Page

<S>                                                                                                              <C>
GRANTING CLAUSE...................................................................................................1

ARTICLE I  DEFINITIONS............................................................................................5

ARTICLE II  THE EQUIPMENT NOTES...................................................................................5
         SECTION 2.01.  Form of Equipment Notes...................................................................5
         SECTION 2.02.  Issuance and Terms of Equipment Notes....................................................11
         SECTION 2.03.  [Intentionally Omitted]..................................................................14
         SECTION 2.04.  Method of Payment........................................................................14
         SECTION 2.05.  Application of Payments..................................................................16
         SECTION 2.06.  Termination of Interest in Collateral....................................................17
         SECTION 2.07.  Registration Transfer and Exchange of Equipment Notes....................................17
         SECTION 2.08.  Mutilated, Destroyed, Lost or Stolen Equipment Notes.....................................19
         SECTION 2.09.  Payment of Expenses on Transfer; Cancellation............................................19
         SECTION 2.10.  Mandatory Redemptions of Equipment Notes.................................................20
         SECTION 2.11.  Voluntary Redemptions of Equipment Notes.................................................20
         SECTION 2.12.  Redemptions; Notice of Redemption........................................................20
         SECTION 2.13.  Subordination............................................................................21

ARTICLE III  RECEIPT, DISTRIBUTION AND APPLICATION OF PAYMENTS...................................................22
         SECTION 3.01.  Basic Distributions......................................................................22
         SECTION 3.02.  Event of Loss; Replacement; Optional Redemption..........................................22
         SECTION 3.03.  Payments After Event of Default..........................................................23
         SECTION 3.04.  Certain Payments.........................................................................25
         SECTION 3.05.  Other Payments...........................................................................26
         SECTION 3.06.  Application of Payments Under Guarantee..................................................26

ARTICLE IV  COVENANTS OF THE OWNER...............................................................................26
         SECTION 4.01.  Liens....................................................................................26
         SECTION 4.02.  Possession, Operation and Use, Registration and Markings.................................27
         SECTION 4.03.  Inspection...............................................................................33
         SECTION 4.04.  Replacement and Pooling of Parts, Alterations,
              Modifications and Additions; Substitution of Engines ..............................................33
         SECTION 4.05.  Loss, Destruction or Requisition.........................................................37
         SECTION 4.06.  Insurance................................................................................42
         SECTION 4.07.  Merger of Owner..........................................................................43
</TABLE>

2002 EETC - Mortgage (Owned) (10)

<PAGE>
                               TABLE OF CONTENTS
                                   (Continued)

<TABLE>
<CAPTION>
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                                                                                                                ----
<S>                                                                                                              <C>
ARTICLE V  EVENTS OF DEFAULT; REMEDIES OF MORTGAGEE..............................................................44
         SECTION 5.01.  Event of Default.........................................................................44
         SECTION 5.02.  Remedies.................................................................................46
         SECTION 5.03.  Return of Aircraft, Etc..................................................................48
         SECTION 5.04.  Remedies Cumulative......................................................................49
         SECTION 5.05.  Discontinuance of Proceedings............................................................49
         SECTION 5.06.  Waiver of Past Defaults..................................................................49
         SECTION 5.07.  Appointment of Receiver..................................................................50
         SECTION 5.08.  Mortgagee Authorized to Execute Bills of Sale, Etc.......................................50
         SECTION 5.09.  Rights of Note Holders to Receive Payment................................................50

ARTICLE VI  DUTIES OF THE MORTGAGEE..............................................................................51
         SECTION 6.01.  Notice of Event of Default...............................................................51
         SECTION 6.02.  Action Upon Instructions; Certain Rights and Limitations.................................51
         SECTION 6.03.  Indemnification..........................................................................52
         SECTION 6.04.  No Duties Except as Specified in Trust Indenture or Instructions.........................52
         SECTION 6.05.  No Action Except Under Trust Indenture or Instructions...................................53
         SECTION 6.06.  Investment of Amounts Held by Mortgagee..................................................53

ARTICLE VII  THE MORTGAGEE.......................................................................................54
         SECTION 7.01.  Acceptance of Trusts and Duties..........................................................54
         SECTION 7.02.  Absence of Duties........................................................................54
         SECTION 7.03.  No Representations or Warranties as to Aircraft or Documents.............................54
         SECTION 7.04.  No Segregation of Monies; No Interest....................................................55
         SECTION 7.05.  Reliance; Agreements; Advice of Counsel..................................................55
         SECTION 7.06.  Compensation.............................................................................56
         SECTION 7.07.  Instructions from Note Holders...........................................................56

ARTICLE VIII  INDEMNIFICATION....................................................................................57
         SECTION 8.01.  Scope of Indemnification.................................................................57

ARTICLE IX  SUCCESSOR AND SEPARATE TRUSTEES......................................................................57
         SECTION 9.01.  Resignation of Mortgagee; Appointment of Successor.......................................57
         SECTION 9.02.  Appointment of Additional and Separate Trustees..........................................58
</TABLE>

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2002 EETC - Mortgage (Owned) (10)

<PAGE>

                               TABLE OF CONTENTS
                                   (Continued)

<TABLE>
<CAPTION>
                                                                                                                Page
                                                                                                                ----
<S>                                                                                                              <C>
ARTICLE X  SUPPLEMENTS AND AMENDMENTS TO THIS TRUST INDENTURE AND OTHER DOCUMENTS................................60
         SECTION 10.01.  Instructions of Majority; Limitations...................................................60
         SECTION 10.02.  Mortgagee Protected.....................................................................61
         SECTION 10.03.  Documents Mailed to Note Holders........................................................62
         SECTION 10.04.  No Request Necessary for Mortgage Supplement............................................62
         SECTION 10.05.  Notices to Liquidity Provider...........................................................62

ARTICLE XI  MISCELLANEOUS........................................................................................62
         SECTION 11.01.  Termination of Trust Indenture..........................................................62
         SECTION 11.02.  No Legal Title to Collateral in Note Holders............................................63
         SECTION 11.03.  Sale of Aircraft by Mortgagee Is Binding................................................63
         SECTION 11.04.  Trust Indenture for Benefit of Owner, Mortgagee,
              Note Holders and the other Mortgage Indemnitees ...................................................63
         SECTION 11.05.  Notices.................................................................................63
         SECTION 11.06.  Severability............................................................................64
         SECTION 11.07.  No Oral Modification or Continuing Waivers..............................................64
         SECTION 11.08.  Successors and Assigns..................................................................64
         SECTION 11.09.  Headings................................................................................65
         SECTION 11.10.  Normal Commercial Relations.............................................................65
         SECTION 11.11   Governing Law; Counterpart Form.........................................................65
         SECTION 11.12.  Voting By Note Holders..................................................................65
         SECTION 11.13.  Bankruptcy..............................................................................65

ANNEX A               Definitions
ANNEX B               Insurance
EXHIBIT A             Form of Trust Indenture and Mortgage Supplement
SCHEDULE I            Equipment Notes Amortization and Interest Rates
</TABLE>

                                      iii

2002 EETC - Mortgage (Owned) (10)

<PAGE>
                          TRUST INDENTURE AND MORTGAGE
                                    [N___TZ]

         TRUST INDENTURE AND MORTGAGE [N___TZ], dated as of ______________ __,
____ ("Trust Indenture"), between AMERICAN TRANS AIR, INC., an Indiana
corporation ("Owner"), and WILMINGTON TRUST COMPANY, a Delaware banking
corporation, not in its individual capacity, except as expressly stated herein,
but solely as Mortgagee hereunder (together with its successors hereunder, the
"Mortgagee").

                               W I T N E S S E T H

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

         WHEREAS, the parties hereto desire by this Trust Indenture, among other
things, (i) to provide for the issuance by the Owner of the Equipment Notes and
(ii) to provide for the assignment, mortgage and pledge by the Owner to the
Mortgagee, as part of the Collateral hereunder, among other things, of all of
the Owner's right, title and interest in and to the Aircraft and, except as
hereinafter expressly provided, all payments and other amounts received
hereunder in accordance with the terms hereof, as security for, among other
things, the Owner's obligations to the Note Holders and the Mortgage
Indemnitees;

         WHEREAS, all things have been done to make the Equipment Notes, when
executed by the Owner and authenticated and delivered by the Mortgagee
hereunder, the valid, binding and enforceable obligations of the Owner; and

         WHEREAS, all things necessary to make this Trust Indenture the valid,
binding and legal obligation of the Owner for the uses and purposes herein set
forth, in accordance with its terms, have been done and performed and have
happened:

                                 GRANTING CLAUSE

         NOW, THEREFORE, THIS TRUST INDENTURE AND MORTGAGE WITNESSETH, that, to
secure the prompt payment of the Original Amount of, interest on, Make-Whole
Amount, if any, and all other amounts due with respect to, all Equipment Notes
from time to time outstanding hereunder according to their tenor and effect and
to secure the performance and observance by the Owner of all the agreements,
covenants and provisions contained herein and in the Participation Agreement and
in the Equipment Notes, for the benefit of the Note Holders and each of the
Mortgage

2002 EETC - Mortgage (Owned) (10)

<PAGE>

Indemnitees, and in consideration of the premises and of the covenants
herein contained, and of the acceptance of the Equipment Notes by the holders
thereof, and for other good and valuable consideration the receipt and adequacy
whereof are hereby acknowledged, the Owner has granted, bargained, sold,
assigned, transferred, conveyed, mortgaged, pledged and confirmed, and does
hereby grant, bargain, sell, assign, transfer, convey, mortgage, pledge and
confirm, unto the Mortgagee, its successors in trust and assigns, for the
security and benefit of, the Note Holders and each of the Mortgage
Indemnitees, a first priority security interest in and mortgage lien on all
right, title and interest of the Owner in, to and under the following described
property, rights and privileges, whether now or hereafter acquired (which,
collectively, together with all property hereafter specifically subject to the
Lien of this Trust Indenture by the terms hereof or any supplement hereto, are
included within, and are referred to as, the "Collateral"), to wit:

         (1) The Airframe which is one Boeing 737-800 aircraft with the FAA
Registration number of N____TZ and the manufacturer's serial number of _____ and
Engines, each of which is a CFM International model CFM56-7B27 engine with the
manufacturer's serial numbers of _____ and _____, is of 750 or more rated
takeoff horsepower or the equivalent of such horsepower (such Airframe and
Engines more particularly described in the Mortgage Supplement executed and
delivered as provided herein) as the same is now and will hereafter be
constituted, whether now owned by the Owner or hereafter acquired, and in the
case of such Engines, whether or not any such Engine shall be installed in or
attached to the Airframe or any other airframe, together with (a) all Parts of
whatever nature, which are from time to time included within the definitions of
"Airframe" or "Engines", whether now owned or hereafter acquired, including all
substitutions, renewals and replacements of and additions, improvements,
accessions and accumulations to the Airframe and Engines (other than additions,
improvements, accessions and accumulations which constitute appliances, parts,
instruments, appurtenances, accessories, furnishings or other equipment excluded
from the definition of Parts) and (b) all Aircraft Documents;

         (2) The Purchase Agreement (to the extent such Agreement relates to the
Aircraft) and the Bills of Sale to the extent the same relate to continuing
rights of the Owner in respect of any warranty, indemnity or agreement, express
or implied, as to title, materials, workmanship, design or patent infringement
or related matters with respect to the Airframe or the Engines (reserving to the
Owner, however, all of the Owner's other rights and interest in and to the
Purchase Agreement) together with all rights, powers, privileges, options and
other benefits of the Owner in respect of such provisions (subject to such
reservation) with respect to the Airframe or the Engines, including, without
limitation, the right to make all waivers and agreements, to

                                       2

2002 EETC - Mortgage (Owned) (10)

<PAGE>

give and receive all notices and other instruments or communications, and to
take such action upon the occurrence of a default in respect of such provisions,
including the commencement, conduct and consummation of legal, administrative or
other proceedings, as shall be permitted thereby or by law, and to do any and
all other things which the Owner is or may be entitled to do in respect of such
provisions (subject to such reservation), subject, with respect to the Purchase
Agreement, to the terms and conditions of the Consent and Agreement and the
Engine Consent and Agreement;

         (3) All proceeds with respect to the requisition of title to or use of
the Aircraft or any Engine by any Government Entity or from the sale or other
disposition of the Aircraft, the Airframe, any Engine or other property
described in any of these Granting Clauses by the Mortgagee pursuant to the
terms of this Trust Indenture, and all insurance proceeds with respect to the
Aircraft, the Airframe, any Engine or any part thereof, but excluding any
insurance maintained by the Owner and not required under Section 4.06;

         (4) All rents, revenues and other proceeds collected by the Mortgagee
pursuant to Section 5.03(b) and all monies and securities from time to time
deposited or required to be deposited with the Mortgagee by or for the account
of the Owner pursuant to any terms of this Trust Indenture held or required to
be held by the Mortgagee hereunder; and

         (5) All proceeds of the foregoing;

         PROVIDED, HOWEVER, that notwithstanding any of the foregoing
provisions, so long as no Event of Default shall have occurred and be
continuing, (a) the Mortgagee shall not take or cause to be taken any action
contrary to the Owner's or any Permitted Lessee's right hereunder to quiet
enjoyment of the Airframe and Engines, and to possess, use, retain and control
the Airframe and Engines and all revenues, income and profits derived therefrom,
and (b) the Owner shall have the right, to the exclusion of the Mortgagee, with
respect to the Purchase Agreement, to exercise in the Owner's name all rights
and powers assigned hereunder under the Purchase Agreement (other than to amend,
modify or waive any of the warranties or indemnities contained therein and
assigned hereunder, except in the exercise of the Owner's reasonable business
judgment) and to retain any recovery or benefit resulting from the enforcement
of any warranty or indemnity under the Purchase Agreement; and provided further
that, notwithstanding the occurrence or continuation of an Event of Default, the
Mortgagee shall not enter into any amendment of the Purchase Agreement which
would increase the obligations of the Owner thereunder.

                                       3

2002 EETC - Mortgage (Owned) (10)

<PAGE>

         TO HAVE AND TO HOLD all and singular the aforesaid property unto the
Mortgagee, and its successors and assigns, in trust for the equal and
proportionate benefit and security of the Note Holders and the Mortgage
Indemnitees, except as provided in Section 2.13 and Article III hereof, without
any preference, distinction or priority of any one Equipment Note over any other
by reason of priority of time of issue, sale, negotiation, date of maturity
thereof or otherwise for any reason whatsoever, and for the uses and purposes
and in all cases and as to all property specified in paragraphs (1) through (5)
inclusive above, subject to the terms and provisions set forth in this Trust
Indenture.

         It is expressly agreed that anything herein contained to the contrary
notwithstanding, the Owner shall remain liable under the Indenture Agreements to
perform all of the obligations assumed by it thereunder, except to the extent
prohibited or excluded from doing so pursuant to the terms and provisions
thereof, and the Mortgagee, the Note Holders and the Mortgage Indemnitees shall
have no obligation or liability under the Indenture Agreements by reason of or
arising out of the assignment hereunder, nor shall the Mortgagee, the Note
Holders or the Mortgage Indemnitees be required or obligated in any manner to
perform or fulfill any obligations of the Owner under or pursuant to the
Indenture Agreements, or, except as herein expressly provided, to make any
payment, or to make any inquiry as to the nature or sufficiency of any payment
received by it, or present or file any claim, or take any action to collect or
enforce the payment of any amounts which may have been assigned to it or to
which it may be entitled at any time or times.

         The Owner does hereby constitute the Mortgagee the true and lawful
attorney of the Owner, irrevocably, granted for good and valuable consideration
and coupled with an interest and with full power of substitution, and with full
power (in the name of the Owner or otherwise) to ask for, require, demand and
receive any and all monies and claims for monies (in each case including
insurance and requisition proceeds) due and to become due under or arising out
of the Indenture Agreements, and all other property which now or hereafter
constitutes part of the Collateral, to endorse any checks or other instruments
or orders in connection therewith and to file any claims or to take any action
or to institute any proceedings which the Mortgagee may deem to be necessary or
advisable in the premises; provided that the Mortgagee shall not exercise any
such rights except upon the occurrence and during the continuance of an Event of
Default hereunder.

         The Owner agrees that at any time and from time to time, upon the
written request of the Mortgagee, the Owner will promptly and duly execute and
deliver or cause to be duly executed and delivered any and all such further
instruments and documents (including without limitation UCC continuation

                                       4

2002 EETC - Mortgage (Owned) (10)

<PAGE>

statements) as the Mortgagee may reasonably deem necessary to perfect, preserve
or protect the mortgage, security interests and assignments created or intended
to be created hereby or to obtain for the Mortgagee the full benefits of the
assignment hereunder and of the rights and powers herein granted.

         IT IS HEREBY COVENANTED AND AGREED by and between the parties hereto as
follows:

                                    ARTICLE I

                                   DEFINITIONS

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

                                   ARTICLE II

                               THE EQUIPMENT NOTES

SECTION 2.01. FORM OF EQUIPMENT NOTES

         The Equipment Notes shall be substantially in the form set forth below:

 THIS EQUIPMENT NOTE HAS NOT BEEN REGISTERED PURSUANT TO THE SECURITIES ACT OF
  1933, AS AMENDED (THE "ACT"), OR PURSUANT TO THE SECURITIES LAWS OF ANY
STATE. ACCORDINGLY, THIS EQUIPMENT NOTE MAY NOT BE SOLD UNLESS EITHER REGISTERED
     UNDER THE ACT AND SUCH APPLICABLE STATE LAWS OR AN EXEMPTION FROM SUCH
                          REGISTRATIONS IS AVAILABLE.

                                       5

2002 EETC - Mortgage (Owned) (10)

<PAGE>

                            AMERICAN TRANS AIR, INC.

     SERIES [_____] EQUIPMENT NOTE DUE [____] ISSUED IN CONNECTION WITH THE
BOEING MODEL 737-800 AIRCRAFT BEARING UNITED STATES REGISTRATION NUMBER N___TZ.

No. ____                                    Date: [__________, ____]
_______________________

INTEREST RATE                                                     MATURITY DATE
[___________]                                                     [____________]

         AMERICAN TRANS AIR, INC., an Indiana corporation ("Owner"), hereby
promises to pay to WILMINGTON TRUST COMPANY, as Subordination Agent under the
Intercreditor Agreement, or the registered assignee thereof, the principal sum
of $____________ (the "Original Amount"), together with interest on the amount
of the Original Amount

 remaining unpaid from time to time (calculated on the
basis of a year of 360 days comprised of twelve 30-day months) from the date
hereof until paid in full at a rate per annum equal to the Debt Rate. The
Original Amount of this Equipment Note shall be payable in installments on the
dates set forth in Schedule I hereto equal to the corresponding percentage of
the Original Amount of this Equipment Note set forth in Schedule I hereto.
Accrued but unpaid interest shall be due and payable in quarterly installments
commencing on ______ __, 200_, and thereafter on [February 20], [May 20],
[August 20] and [November 20] of each year, to and including _______________.
Notwithstanding the foregoing, the final payment made on this Equipment Note
shall be in an amount sufficient to discharge in full the unpaid Original Amount
and all accrued and unpaid interest on, and any other amounts due under, this
Equipment Note. Notwithstanding anything to the contrary contained herein,
whenever the date scheduled for any payment to be made hereunder or under the
Trust Indenture shall not be a Business Day, then such payment shall not be due
on such scheduled date but shall be due on the next succeeding Business Day with
the same effect as if paid on the originally scheduled due date.

         For purposes hereof, the term "Trust Indenture" means the Trust
Indenture and Mortgage [N____TZ] dated as of _______ __, ____, between the Owner
and Wilmington Trust Company (the "Mortgagee"), as the same may be amended or
supplemented from time to time. All other capitalized terms used in this
Equipment Note and not defined herein shall have the respective meanings
assigned in the Trust Indenture.

         This Equipment Note shall bear interest, payable on demand, at the Past
Due Rate (calculated on the basis of a year of 360 days comprised of twelve
30-day months) on any overdue Original Amount, any overdue Make-Whole Amount, if
any, and (to the extent permitted by applicable Law) any

                                       6

2002 EETC - Mortgage (Owned) (10)

<PAGE>

overdue interest and any other amounts payable hereunder which are overdue, in
each case for the period the same is overdue. Amounts shall be overdue if not
paid when due (whether at stated maturity, by acceleration or otherwise).

         The interest rate borne by this Equipment Note shall be subject to
adjustments to the extent, and under the circumstances, specified by the
Registration Rights Agreement.

         There shall be maintained an Equipment Note Register for the purpose of
registering transfers and exchanges of Equipment Notes at the Corporate Trust
Office of the Mortgagee or at the office of any successor in the manner provided
in Section 2.07 of the Trust Indenture.

         The Original Amount and interest and other amounts due hereunder shall
be payable in Dollars in immediately available funds at the Corporate Trust
Office of the Mortgagee, or as otherwise provided in the Trust Indenture. Each
such payment shall be made on the date such payment is due and without any
presentment or surrender of this Equipment Note, except that in the case of any
final payment with respect to this Equipment Note, the Equipment Note shall be
surrendered promptly thereafter to the Mortgagee for cancellation.

         The holder hereof, by its acceptance of this Equipment Note, agrees
that, except as provided in the Trust Indenture, each payment of the Original
Amount, Make-Whole Amount, if any, and interest received by it hereunder shall
be applied, first, to the payment of accrued interest on this Equipment Note (as
well as any interest on any overdue Original Amount, any overdue Make-Whole
Amount, if any, or, to the extent permitted by Law, any overdue interest and
other amounts hereunder) to the date of such payment, second, to the payment of
the Original Amount of this Equipment Note then due, third, to the payment of
Make-Whole Amount, if any, and any other amount due hereunder or under the Trust
Indenture, and fourth, the balance, if any, remaining thereafter, to the payment
of installments of the Original Amount of this Equipment Note remaining unpaid
in the inverse order of their maturity.

         This Equipment Note is one of the Equipment Notes referred to in the
Trust Indenture which have been or are to be issued by the Owner pursuant to the
terms of the Trust Indenture. The Collateral is held by the Mortgagee as
security, in part, for the Equipment Notes. The provisions of this Equipment
Note are subject to the Trust Indenture. Reference is hereby made to the Trust
Indenture and the Participation Agreement for a complete statement of the rights
and obligations of the holder of, and the nature and extent of the security for,
this Equipment Note and the rights and obligations of the holders of, and the
nature and extent of the security for, any other

                                       7

2002 EETC - Mortgage (Owned) (10)

<PAGE>

Equipment Notes executed and delivered under the Trust Indenture, as well as for
a statement of the terms and conditions of the Trust created by the Trust
Indenture, to all of which terms and conditions in the Trust Indenture and the
Participation Agreement each holder hereof agrees by its acceptance of this
Equipment Note.

         As provided in the Trust Indenture and subject to certain limitations
therein set forth, this Equipment Note is exchangeable for a like aggregate
Original Amount of Equipment Notes of different authorized denominations, as
requested by the holder surrendering the same.

         Prior to due presentment for registration of transfer of this Equipment
Note, the Owner and the Mortgagee shall treat the person in whose name this
Equipment Note is registered as the owner hereof for all purposes, whether or
not this Equipment Note be overdue, and neither the Owner nor the Mortgagee
shall be affected by notice to the contrary.

         This Equipment Note is subject to redemption as provided in Sections
2.10, 2.11 and 2.12 of the Trust Indenture but not otherwise. In addition, this
Equipment Note may be accelerated as provided in Section 5.02 of the Trust
Indenture.

         [The indebtedness evidenced by this Equipment Note is, to the extent
and in the manner provided in the Trust Indenture, subordinate and subject in
right of payment to the prior payment in full of the Secured Obligations (as
defined in the Trust Indenture) in respect of Series A Equipment Notes and this
Equipment Note is issued subject to such provisions. The Note Holder of this
Equipment Note, by accepting the same, (a) agrees to and shall be bound by such
provisions, (b) authorizes and directs the Mortgagee on his behalf to take such
action as may be necessary or appropriate to effectuate the subordination as
provided in the Trust Indenture and (c) appoints the Mortgagee his
attorney-in-fact for such purpose.](1)

         Unless the certificate of authentication hereon has been executed by or
on behalf of the Mortgagee by manual signature, this Equipment Note shall not be
entitled to any benefit under the Trust Indenture or be valid or obligatory for
any purpose.

         THIS EQUIPMENT NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAW OF THE STATE OF NEW YORK.

                                      * * *
-----------------------
(1) This provision to appear in Series B Equipment Notes only.

                                       8

2002 EETC - Mortgage (Owned) (10)

<PAGE>

         IN WITNESS WHEREOF, the Owner has caused this Equipment Note to be
executed in its corporate name by its officer thereunto duly authorized on the
date hereof.

                  AMERICAN TRANS AIR, INC.

                  By:___________________________
                     Name:
                     Title:

                                       9

2002 EETC - Mortgage (Owned) (10)

<PAGE>

                    MORTGAGEE'S CERTIFICATE OF AUTHENTICATION

         This is one of the Equipment Notes referred to in the within-mentioned
Trust Indenture.

                  WILMINGTON TRUST COMPANY, as
     Mortgagee

                  By:__________________________
     Name:
     Title:

                                   SCHEDULE I
                           EQUIPMENT NOTE AMORTIZATION

Payment Date                            Percentage of Original Amount to Be Paid
------------                            ----------------------------------------
                       [SEE SCHEDULE I TO TRUST INDENTURE
                        WHICH IS INSERTED UPON ISSUANCE]
                                      * * *

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2002 EETC - Mortgage (Owned) (10)

<PAGE>

SECTION 2.02. ISSUANCE AND TERMS OF EQUIPMENT NOTES

         The Equipment Notes shall be dated the date of issuance thereof, shall
be issued in two separate series consisting of Series A and Series B and in the
maturities and principal amounts and shall bear interest as specified in
Schedule I hereto. On the date thereof, each Equipment Note shall be issued to
the Subordination Agent on behalf of the Pass Through Trustee under the Pass
Through Trust Agreements. The Equipment Notes shall be issued in registered form
only. The Equipment Notes shall be issued in denominations of $1,000 and
integral multiples thereof, except that one Equipment Note of each Series may be
in an amount that is not an integral multiple of $1,000.

         Each Equipment Note shall bear interest at the Debt Rate for the
applicable Series of such Equipment Note (calculated on the basis of a year of
360 days comprised of twelve 30-day months) on the unpaid Original Amount
thereof from time to time outstanding, payable in arrears on _____ __, ____, and
on each [January 15], [April 15], [July 15] and [October 15] thereafter until
maturity. The Original Amount of each Equipment Note shall be payable on the
dates and in the installments equal to the corresponding percentage of the
Original Amount as set forth in Schedule I hereto which shall be attached as
Schedule I to the Equipment Notes. Notwithstanding the foregoing, the final
payment made under each Equipment Note shall be in an amount sufficient to
discharge in full the unpaid Original Amount and all accrued and unpaid interest
on, and any other amounts due under, such Equipment Note. Each Equipment Note
shall bear interest at the Past Due Rate (calculated on the basis of a year of
360 days comprised of twelve 30-day months) on any part of the Original Amount,
Make-Whole Amount, if any, and, to the extent permitted by applicable Law,
interest and any other amounts payable thereunder not paid when due for any
period during which the same shall be overdue, in each case for the period the
same is overdue. Amounts shall be overdue if not paid when due (whether at
stated maturity, by acceleration or otherwise). Notwithstanding anything to the
contrary contained herein, whenever the date scheduled for any payment to be
made hereunder or under any Equipment Note shall not be a Business Day, then
such payment shall not be due on such scheduled date but shall be due on the
next succeeding Business Day with the same effect as if paid on the originally
scheduled due date. The interest rate borne by the Equipment Notes shall be
subject to adjustments to the extent, and under the circumstances, specified by
the Registration Rights Agreement.

         The Owner agrees, without duplication, to pay to the Mortgagee for
distribution in accordance with Section 3.04 hereof (1) all Expenses,
Transaction Expenses, and all other amounts, liabilities, indemnities, and
obligations (including any Make-Whole Amount) that Owner assumes or

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<PAGE>

becomes obligated to pay or agrees to pay under any Operative Agreement to or on
behalf of Mortgagee or any other Person including indemnity payments under
Section 7 of the Participation Agreement, but excluding any amount as to which
Owner is obligated to pay a pro rata share pursuant to clause (5) of this
definition, (2)(a) to the extent not payable (whether or not in fact paid) under
Section 6(a) or Section 6(b), as applicable, of the Note Purchase Agreement (as
originally in effect or amended with Mortgagee's consent), the fees payable to
Liquidity Provider under Section 2.3 of each Liquidity Facility, multiplied by a
fraction the numerator of which is the then-outstanding aggregate principal
amount of all the series of Equipment Notes, and the denominator of which is the
then-outstanding aggregate principal amount of all "Series A Equipment Notes"
and "Series B Equipment Notes" (each as defined in the Note Purchase Agreement);
(b) (x) the amount equal to interest on any Downgrade Advance (other than any
Applied Downgrade Advance) payable under Section 3.7 of each Liquidity Facility
minus Investment Earnings from such Downgrade Advance, multiplied by (y) the
fraction specified in the foregoing clause (a); (c) (x) the amount equal to
interest on any Non-Extension Advance (other than any Applied Non-Extension
Advance) payable under Section 3.7 of each Liquidity Facility, multiplied by (y)
the fraction specified in the forgoing clause (a); (d) if any payment default
exists with respect to interest on any series of Equipment Notes, (x) an amount
equal to interest on any Unpaid Advance, Applied Downgrade Advance, or Applied
Non-Extension Advance payable under Section 3.7 of each Liquidity Facility plus
any interest at the Past-Due Rate actually payable (whether or not in fact paid)
by Owner in respect of the overdue scheduled interest on the Equipment Notes in
respect of which such Unpaid Advance, Applied Downgrade Advance, or Applied
Non-Extension Advance was made by the applicable Liquidity Provider multiplied
by (y) a fraction the numerator of which is the sum of all then-overdue interest
on the Equipment Notes (other than interest becoming due and payable solely as a
result of acceleration of any Equipment Notes), and the denominator of which
shall be the sum of all then-overdue interest on all "Series A Equipment Notes"
and "Series B Equipment Notes" (each as defined in the Note Purchase Agreement)
(other than interest becoming due and payable solely as a result of acceleration
of any such "Equipment Notes"); and (e) Owner's pro rata share of any other
amounts owed to Liquidity Provider by Subordination Agent as borrower under each
Liquidity Facility (other than amounts due as repayment of advances thereunder
or as interest on such advances), except to the extent payable pursuant to
clause (a), (b), (c), or (d) above, (3) Owner's pro rata share of all
compensation and reimbursement of expenses, disbursements, and advances payable
by Owner under the Pass-Through Trust Agreements, (4) Owner's pro rata share of
all compensation and reimbursement of expenses and disbursements (including
payments of indemnities) payable to Subordination Agent under the Intercreditor
Agreement, except with respect to

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<PAGE>

any income or franchise taxes incurred by Subordination Agent in connection with
the transactions contemplated by the Intercreditor Agreement, (5) Owner's pro
rata share of any amount payable under Section 7.1 (and, if attributable
thereto, Section 7.5) of the Participation Agreement to any Pass-Through
Indemnitee to the extent such amount relates to, results from, or arises out of
or in connection with (a) the Pass-Through Agreements or the enforcement of any
of the terms of any of the Pass-Through Agreements, (b) the offer, sale, or
delivery of the Pass-Through Certificates or any interest therein or represented
thereby, or (c) any breach of or failure to perform or observe, or any other
noncompliance with, any covenant or agreement or other obligation to be
performed by Owner under any Pass-Through Agreement, or the falsity of any
representation or warranty of Owner in any Pass-Through Agreement, and (6) if
Owner requests any amendment to any Operative Agreement or Pass-Through
Agreement, Owner's pro rata share of all reasonable fees and expenses (including
fees and disbursements of counsel) of Escrow Agents and Paying Agents in
connection therewith payable by Pass-Through Trustees under the Escrow
Agreements. As used herein, "Owner's pro rata share" means as of any time a
fraction, the numerator of which is the then-outstanding principal balance of
Equipment Notes, and the denominator of which is the aggregate then-outstanding
principal balance of all "Equipment Notes" (as each such term is defined in each
of the Operative Indentures). For purposes of this definition, "Applied
Downgrade Advance", "Applied Non-Extension Advance", "Cash Collateral Account",
"Downgrade Advance", "Final Advance", "Investment Earnings", "Non-Extension
Advance", and "Unpaid Advance" have the same meanings as in each Liquidity
Facility.

         The Equipment Notes shall be executed on behalf of the Owner by its
President or one of its Vice Presidents, Assistant Vice Presidents or Assistant
Secretaries or other authorized officer. Equipment Notes bearing the signatures
of individuals who were at any time the proper officers of the Owner shall bind
the Owner, notwithstanding that such individuals or any of them have ceased to
hold such offices prior to the authentication and delivery of such Equipment
Notes or did not hold such offices at the respective dates of such Equipment
Notes. The Owner may from time to time execute and deliver Equipment Notes with
respect to the Aircraft to the Mortgagee for authentication upon original issue
and such Equipment Notes shall thereupon be authenticated and delivered by the
Mortgagee upon the written request of the Owner signed by a Vice President or
Assistant Vice President or other authorized officer of the Owner; provided,
however, that each such request shall specify the aggregate Original Amount of
all Equipment Notes to be authenticated hereunder on original issue with respect
to the Aircraft. No Equipment Note shall be secured by or entitled to any
benefit under this Trust Indenture or be valid or obligatory for any purposes,
unless there appears on such Equipment Note a certificate of authentication in
the form provided for

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<PAGE>

herein executed by the Mortgagee by the manual signature of one of its
authorized officers and such certificate upon any Equipment Notes be conclusive
evidence, and the only evidence, that such Equipment Note has been duly
authenticated and delivered hereunder.

         The aggregate Original Amount of the Equipment Notes issued hereunder
shall not exceed ____________________.

SECTION 2.03. [INTENTIONALLY OMITTED]

SECTION 2.04. METHOD OF PAYMENT

         (a) The Original Amount of, interest on, Make-Whole Amount, if any, and
other amounts due under each Equipment Note or hereunder will be payable in
Dollars by wire transfer of immediately available funds not later than 11:00
a.m., New York City time, on the due date of payment to the Mortgagee at the
Corporate Trust Office for distribution among the Note Holders in the manner
provided herein. The Owner shall not have any responsibility for the
distribution of such payment to any Note Holder. Notwithstanding the foregoing
or any provision in any Equipment Note to the contrary, the Mortgagee will use
reasonable efforts to pay or cause to be paid, if so directed in writing by any
Note Holder (with a copy to the Owner), all amounts paid by the Owner hereunder
and under such holder's Equipment Note or Equipment Notes to such holder or a
nominee therefor (including all amounts distributed pursuant to Article III of
this Trust Indenture) by transferring, or causing to be transferred, by wire
transfer of immediately available funds in Dollars, prior to 2:00 p.m., New York
City time, on the due date of payment, to an account maintained by such holder
with a bank located in the continental United States the amount to be
distributed to such holder, for credit to the account of such holder maintained
at such bank. If the Mortgagee shall fail to make any such payment as provided
in the immediately foregoing sentence after its receipt of funds at the place
and prior to the time specified above, the Mortgagee, in its individual capacity
and not as trustee, agrees to compensate such holders for loss of use of funds
at Debt Rate until such payment is made and the Mortgagee shall be entitled to
any interest earned on such funds until such payment is made. Any payment made
hereunder shall be made without any presentment or surrender of any Equipment
Note, except that, in the case of the final payment in respect of any Equipment
Note, such Equipment Note shall be surrendered to the Mortgagee for cancellation
promptly after such payment. Notwithstanding any other provision of this Trust
Indenture to the contrary, the Mortgagee shall not be required to make, or cause
to be made, wire transfers as aforesaid prior to the first Business Day on which
it is practicable for the Mortgagee to do so in view of the time of day when the
funds to be so transferred were received by it if

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<PAGE>

such funds were received after 12:00 noon, New York City time, at the place of
payment. Prior to the due presentment for registration of transfer of any
Equipment Note, the Owner and the Mortgagee shall deem and treat the Person in
whose name any Equipment Note is registered on the Equipment Note Register as
the absolute owner and holder of such Equipment Note for the purpose of
receiving payment of all amounts payable with respect to such Equipment Note and
for all other purposes, and none of the Owner or the Mortgagee shall be affected
by any notice to the contrary. So long as any signatory to the Participation
Agreement or nominee thereof shall be a registered Note Holder, all payments to
it shall be made to the account of such Note Holder specified in Schedule I
thereto and otherwise in the manner provided in or pursuant to the Participation
Agreement unless it shall have specified some other account or manner of payment
by notice to the Mortgagee consistent with this Section 2.04.

         (b) The Mortgagee, as agent for the Owner, shall exclude and withhold
at the appropriate rate from each payment of Original Amount of, interest on,
Make-Whole Amount, if any, and other amounts due hereunder or under each
Equipment Note (and such exclusion and withholding shall constitute payment in
respect of such Equipment Note) any and all United States withholding taxes
applicable thereto as required by Law. The Mortgagee agrees to act as such
withholding agent and, in connection therewith, whenever any present or future
United States taxes or similar charges are required to be withheld with respect
to any amounts payable hereunder or in respect of the Equipment Notes, to
withhold such amounts (and such withholding shall constitute payment in respect
of such Equipment Note) and timely pay the same to the appropriate authority in
the name of and on behalf of the Note Holders, that it will file any necessary
United States withholding tax returns or statements when due, and that as
promptly as possible after the payment thereof it will deliver to each Note
Holder (with a copy to the Owner) appropriate receipts showing the payment
thereof, together with such additional documentary evidence as any such Note
Holder may reasonably request from time to time.

         If a Note Holder which is a Non-U.S. Person has furnished to the
Mortgagee a properly completed, accurate and currently effective U.S. Internal
Revenue Service Form W-8BEN (or such successor form or forms as may be required
by the United States Treasury Department) during the calendar year in which the
payment hereunder or under the Equipment Note(s) held by such holder is made
(but prior to the making of such payment), or in either of the two preceding
calendar years, and has not notified the Mortgagee of the withdrawal or
inaccuracy of such form prior to the date of such payment (and the Mortgagee has
no reason to believe that any information set forth in such form is inaccurate),
the Mortgagee shall withhold only the amount, if any,

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<PAGE>

required by Law (after taking into account any applicable exemptions properly
claimed by the Note Holder) to be withheld from payments hereunder or under the
Equipment Notes held by such holder in respect of United States federal income
tax (and such withholding shall constitute payment in respect of such Equipment
Note). If a Note Holder (x) which is a Non-U.S. Person has furnished to the
Mortgagee a properly completed, accurate and currently effective U.S. Internal
Revenue Service Form W-8ECI in duplicate (or such successor certificate, form or
forms as may be required by the United States Treasury Department as necessary
in order to properly avoid withholding of United States federal income tax), for
each calendar year in which a payment is made (but prior to the making of any
payment for such year), and has not notified the Mortgagee of the withdrawal or
inaccuracy of such certificate or form prior to the date of such payment (and
the Mortgagee has no reason to believe that any information set forth in such
form is inaccurate) or (y) which is a U.S. Person has furnished to the Mortgagee
a properly completed, accurate and currently effective U.S. Internal Revenue
Service Form W-9, if applicable, prior to a payment hereunder or under the
Equipment Notes held by such holder, no amount shall be withheld from payments
in respect of United States federal income tax. If any Note Holder has notified
the Mortgagee that any of the foregoing forms or certificates is withdrawn or
inaccurate, or if such holder has not filed a form claiming an exemption from
United States withholding tax or if the Code or the regulations thereunder or
the administrative interpretation thereof is at any time after the date hereof
amended to require such withholding of United States federal income taxes from
payments under the Equipment Notes held by such holder, the Mortgagee agrees to
withhold from each payment due to the relevant Note Holder withholding taxes at
the appropriate rate under Law and will, on a timely basis as more fully
provided above, deposit such amounts with an authorized depository and make such
returns, statements, receipts and other documentary evidence in connection
therewith as required by Law.

         Owner shall not have any liability for the failure of the Mortgagee to
withhold taxes in the manner provided for herein or for any false, inaccurate or
untrue evidence provided by any Note Holder hereunder.

SECTION 2.05. APPLICATION OF PAYMENTS

         In the case of each Equipment Note, each payment of Original Amount,
Make-Whole Amount, if any, and interest due thereon shall be applied:

         First: to the payment of accrued interest on such Equipment Note (as
    well as any interest on any overdue Original Amount, any overdue Make-Whole
    Amount, if any, and to the extent permitted by Law, any

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<PAGE>

    overdue interest and any other overdue amounts thereunder) to the date of
    such payment;

         Second: to the payment of the Original Amount of such Equipment Note
    (or a portion thereof) then due thereunder;

         Third: to the payment of Make-Whole Amount, if any, and any other
    amount due hereunder or under such Equipment Note; and

         Fourth: the balance, if any, remaining thereafter, to the payment of
    the Original Amount of such Equipment Note remaining unpaid (provided that
    such Equipment Note shall not be subject to redemption except as provided in
    Sections 2.10, 2.11 and 2.12 hereof).

The amounts paid pursuant to clause "Fourth" above shall be applied to the
installments of Original Amount of such Equipment Note in the inverse order of
their normal maturity.

SECTION 2.06. TERMINATION OF INTEREST IN COLLATERAL

         No Note Holder or any other Mortgage Indemnitee shall, as such, have
any further interest in, or other right with respect to, the Collateral when and
if the Original Amount of, Make-Whole Amount, if any, and interest on and other
amounts due under all Equipment Notes held by such Note Holder and all other
sums then due and payable to such Note Holder, such Mortgage Indemnitee or the
Mortgagee hereunder (including, without limitation, under the third paragraph of
Section 2.02 hereof) and under the other Operative Agreements by the Owner
(collectively, the "Secured Obligations") shall have been paid in full.

SECTION 2.07. REGISTRATION TRANSFER AND EXCHANGE OF EQUIPMENT NOTES

         The Mortgagee shall keep a register (the "Equipment Note Register") in
which the Mortgagee shall provide for the registration of Equipment Notes and
the registration of transfers of Equipment Notes. No such transfer shall be
given effect unless and until registration hereunder shall have occurred. The
Equipment Note Register shall be kept at the Corporate Trust Office of the
Mortgagee. The Mortgagee is hereby appointed "Equipment Note Registrar" for the
purpose of registering Equipment Notes and transfers of Equipment Notes as
herein provided. A holder of any Equipment Note intending to exchange such
Equipment Note shall surrender such Equipment Note to the Mortgagee at the
Corporate Trust Office, together with a written request from the registered
holder thereof for the issuance of a new Equipment Note, specifying, in the case
of a surrender for transfer, the name and address of the new holder or holders.
Upon surrender for registration of transfer of any

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2002 EETC - Mortgage (Owned) (10)

<PAGE>

Equipment Note, the Owner shall execute, and the Mortgagee shall authenticate
and deliver, in the name of the designated transferee or transferees, one or
more new Equipment Notes of a like aggregate Original Amount and of the same
Series. At the option of the Note Holder, Equipment Notes may be exchanged for
other Equipment Notes of any authorized denominations of a like aggregate
Original Amount and of the same Series, upon surrender of the Equipment Notes to
be exchanged to the Mortgagee at the Corporate Trust Office. Whenever any
Equipment Notes are so surrendered for exchange, the Owner shall execute, and
the Mortgagee shall authenticate and deliver, the Equipment Notes which the Note
Holder making the exchange is entitled to receive. All Equipment Notes issued
upon any registration of transfer or exchange of Equipment Notes (whether under
this Section 2.07 or under Section 2.08 hereof or otherwise under this Trust
Indenture) shall be the valid obligations of the Owner evidencing the same
respective obligations, and entitled to the same security and benefits under
this Trust Indenture, as the Equipment Notes surrendered upon such registration
of transfer or exchange. Every Equipment Note presented or surrendered for
registration of transfer, shall (if so required by the Mortgagee) be duly
endorsed, or be accompanied by a written instrument of transfer in form
satisfactory to the Mortgagee duly executed by the Note Holder or such holder's
attorney duly authorized in writing, and the Mortgagee shall require evidence
satisfactory to it as to the compliance of any such transfer with the Securities
Act, and the securities Laws of any applicable state. The Mortgagee shall make a
notation on each new Equipment Note of the amount of all payments of Original
Amount previously made on the old Equipment Note or Equipment Notes with respect
to which such new Equipment Note is issued and the date to which interest on
such old Equipment Note or Equipment Notes has been paid. Interest shall be
deemed to have been paid on such new Equipment Note to the date on which
interest shall have been paid on such old Equipment Note, and all payments of
the Original Amount marked on such new Equipment Note, as provided above, shall
be deemed to have been made thereon. The Owner shall not be required to exchange
any surrendered Equipment Notes as provided above during the ten-day period
preceding the due date of any payment on such Equipment Note. The Owner shall in
all cases deem the Person in whose name any Equipment Note shall have been
issued and registered as the absolute owner and holder of such Equipment Note
for the purpose of receiving payment of all amounts payable by the Owner with
respect to such Equipment Note and for all purposes until a notice stating
otherwise is received from the Mortgagee and such change is reflected on the
Equipment Note Register. The Mortgagee will promptly notify the Owner of each
registration of a transfer of an Equipment Note. Any such transferee of an
Equipment Note, by its acceptance of an Equipment Note, agrees to the provisions
of this Indenture and the Participation Agreement applicable to Note Holders,
including Sections 5.3, 5.4

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2002 EETC - Mortgage (Owned) (10)

<PAGE>

and 8.1 thereof and shall be deemed to have covenanted to the parties to the
Participation Agreement as to the matters covenanted by the original Note Holder
in the Participation Agreement. Subject to compliance by the Note Holder and its
transferee (if any) of the requirements set forth in this Section 2.07,
Mortgagee and Owner shall use all reasonable efforts to issue new Equipment
Notes upon transfer or exchange within ten Business Days of the date an
Equipment Note is surrendered for transfer or exchange.

SECTION 2.08. MUTILATED, DESTROYED, LOST OR STOLEN EQUIPMENT NOTES

         If any Equipment Note shall become mutilated, destroyed, lost or
stolen, the Owner shall, upon the written request of the holder of such
Equipment Note, execute and the Mortgagee shall authenticate and deliver in
replacement thereof a new Equipment Note of the same Series payable in the same
Original Amount dated the same date and captioned as issued in connection with
the Aircraft. If the Equipment Note being replaced has become mutilated, such
Equipment Note shall be surrendered to the Mortgagee and a photocopy thereof
shall be furnished to the Owner. If the Equipment Note being replaced has been
destroyed, lost or stolen, the holder of such Equipment Note shall furnish to
the Owner and the Mortgagee such security or indemnity as may be required by
them to save the Owner and the Mortgagee harmless and evidence satisfactory to
the Owner and the Mortgagee of the destruction, loss or theft of such Equipment
Note and of the ownership thereof. If a "qualified institutional buyer" of the
type referred to in paragraph (a)(1)(i)(A), (B), (D) or (E) of Rule 144A under
the Securities Act (a "QIB") is the holder of any such destroyed, lost or stolen
Equipment Note, then the written indemnity of such QIB, signed by an authorized
officer thereof, in favor of, delivered to and in form reasonably satisfactory
Owner and the Mortgagee shall be accepted as satisfactory indemnity and security
and no further indemnity or security shall be required as a condition to the
execution and delivery of such new Equipment Note. Subject to compliance by the
Note Holder with the requirements set forth in this Section 2.08, Mortgagee and
Owner shall use all reasonable efforts to issue new Equipment Notes within ten
Business Days of the date of the written request therefor from the Note Holder.

SECTION 2.09.  PAYMENT OF EXPENSES ON TRANSFER; CANCELLATION

         (a) No service charge shall be made to a Note Holder for any
registration of transfer or exchange of Equipment Notes, but the Mortgagee, as
Equipment Note Registrar, may require payment of a sum sufficient to cover any
tax or other governmental charge that may be imposed in connection with any
registration of transfer or exchange of Equipment Notes.

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2002 EETC - Mortgage (Owned) (10)

<PAGE>

         (b) The Mortgagee shall cancel all Equipment Notes surrendered for
replacement, redemption, transfer, exchange, payment or cancellation and shall
destroy the canceled Equipment Notes.

SECTION 2.10.  MANDATORY REDEMPTIONS OF EQUIPMENT NOTES

         On the date on which the Owner is required pursuant to Section 4.05
hereof to make payment for an Event of Loss with respect to the Airframe, all of
the Equipment Notes shall be redeemed in whole at a redemption price equal to
100% of the unpaid Original Amount thereof, together with all accrued interest
thereon to the date of redemption and all other Secured Obligations owed or then
due and payable to the Note Holders but without Make-Whole Amount.

SECTION 2.11.  VOLUNTARY REDEMPTIONS OF EQUIPMENT NOTES

         All (but not less than all) of the Equipment Notes may be redeemed by
the Owner upon at least 30 days' revocable prior written notice to the Mortgagee
and the Note Holders, and the Equipment Notes shall be redeemed in whole at a
redemption price equal to 100% of the unpaid Original Amount thereof, together
with accrued interest thereon to the date of redemption and all other Secured
Obligations owed or then due and payable to the Note Holders plus Make-Whole
Amount, if any. Simultaneously with such redemption, the Owner shall also pay
all other Secured Obligations (if any) owed to the Mortgagee and the Mortgage
Indemnitee.

SECTION 2.12.  REDEMPTIONS; NOTICE OF REDEMPTION

         (a) No redemption of any Equipment Note may be made except to the
extent and in the manner expressly permitted by this Trust Indenture. No
purchase of any Equipment Note may be made by the Mortgagee.

         (b) Notice of redemption with respect to the Equipment Notes shall be
given by the Mortgagee by first-class mail, postage prepaid, mailed not less
than 25 nor more than 60 days prior to the applicable redemption date, to each
Note Holder of such Equipment Notes to be redeemed, at such Note Holder's
address appearing in the Equipment Note Register; provided that such notice
shall be revocable by written notice from the Owner to Mortgagee given not later
than three days prior to the redemption date. All notices of redemption shall
state: (1) the redemption date, (2) the applicable basis for determining the
redemption price, (3) that on the redemption date, the redemption price will
become due and payable upon each such Equipment Note, and that, if any such
Equipment Notes are then outstanding, interest on such Equipment Notes shall
cease to accrue on and after such redemption

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2002 EETC - Mortgage (Owned) (10)

<PAGE>

date, and (4) the place or places where such Equipment Notes are to be
surrendered for payment of the redemption price.

         (c) On or before the redemption date, the Owner (or any person on
behalf of the Owner) shall, to the extent an amount equal to the redemption
price for the Equipment Notes to be redeemed on the redemption date shall not
then be held by the Mortgagee, deposit or cause to be deposited with the
Mortgagee by 12:30 p.m. New York City time on the redemption date in immediately
available funds the redemption price of the Equipment Notes to be redeemed.

         (d) Notice of redemption having been given and not revoked as
aforesaid, the Equipment Notes to be redeemed shall, on the redemption date,
become due and payable at the Corporate Trust Office of the Mortgagee or at any
office or agency maintained for such purposes pursuant to Section 2.07, and from
and after such redemption date (unless there shall be a default in the payment
of the redemption price) any such Equipment Notes then outstanding shall cease
to bear interest. Upon surrender of any such Equipment Note for redemption in
accordance with said notice, such Equipment Note shall be redeemed at the
redemption price. If any Equipment Note called for redemption shall not be so
paid upon surrender thereof for redemption, the principal amount thereof shall,
until paid, continue to bear interest from the applicable redemption date at the
interest rate in effect for such Equipment Note as of such redemption date.

SECTION 2.13. SUBORDINATION

         (a) The Owner and, by acceptance of its Equipment Notes of any Series,
each Note Holder of such Series, hereby agree that no payment or distribution
shall be made on or in respect of the Secured Obligations owed to such Note
Holder of such Series, including any payment or distribution of cash, property
or securities after the commencement of a proceeding of the type referred to in
Section 5.01(vi) hereof, except as expressly provided in Article III hereof.

         (b) By the acceptance of its Equipment Notes of any Series (other than
Series A), each Note Holder of such Series agrees that in the event that such
Note Holder, in its capacity as a Note Holder, shall receive any payment or
distribution on any Secured Obligations in respect of such Series which it is
not entitled to receive under this Section 2.13 or Article III hereof, it will
hold any amount so received in trust for the Senior Holder (as defined in
Section 2.13(c) hereof) and will forthwith turn over such payment to the
Mortgagee in the form received to be applied as provided in Article III hereof.

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2002 EETC - Mortgage (Owned) (10)

<PAGE>

         (c) As used in this Section 2.13, the term "Senior Holder" shall mean,
(i) the Note Holders of Series A until the Secured Obligations in respect of
Series A Equipment Notes have been paid in full and (ii) after the Secured
Obligations in respect of Series A Equipment Notes have been paid in full, the
Note Holders of Series B until the Secured Obligations in respect of Series B
Equipment Notes have been paid in full.

                                   ARTICLE III

                RECEIPT, DISTRIBUTION AND APPLICATION OF PAYMENTS

SECTION 3.01. BASIC DISTRIBUTIONS

         Except as otherwise provided in Section 3.03 hereof, each periodic
payment of principal or interest on the Equipment Notes received by the
Mortgagee shall be promptly distributed in the following order of priority:

         (i) so much of such payment as shall be required to pay in full the
    aggregate amount of the payment or payments of Original Amount and interest
    (as well as any interest on any overdue Original Amount and, to the extent
    permitted by Law, on any overdue interest) then due under all Series A
    Equipment Notes shall be distributed to the Note Holders of Series A
    ratably, without priority of one over the other, in the proportion that the
    amount of such payment or payments then due under each Series A Equipment
    Note bears to the aggregate amount of the payments then due under all Series
    A Equipment Notes; and

         (ii) after giving effect to paragraph (i) above, so much of such
    payment remaining as shall be required to pay in full the aggregate amount
    of the payment or payments of Original Amount and interest (as well as any
    interest on any overdue Original Amount and, to the extent permitted by Law,
    on any overdue interest) then due under all Series B Equipment Notes shall
    be distributed to the Note Holders of Series B ratably, without priority of
    one over the other, in the proportion that the amount of such payment or
    payments then due under each Series B Equipment Note bears to the aggregate
    amount of the payments then due under all Series B Equipment Notes.

SECTION 3.02.  EVENT OF LOSS; REPLACEMENT; OPTIONAL REDEMPTION

         Except as otherwise provided in Section 3.03 hereof, any payments
received by the Mortgagee (i) with respect to the Airframe or the Airframe and
one or more Engines as the result of an Event of Loss or (ii) pursuant to an
optional redemption of the Equipment Notes pursuant to Section 2.11 hereof

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shall be applied to redemption of the Equipment Notes and to all other Secured
Obligations by applying such funds in the following order of priority:

First,   (a) to reimburse the Mortgagee and the Note Holders for any reasonable
         costs or expenses incurred in connection with such redemption for which
         they are entitled to reimbursement, or indemnity by Owner, under the
         Operative Agreements and then (b) to pay any other amounts then due
         (except as provided in clause "Second" below) to the Mortgagee, the
         Note Holders and the other Mortgage Indemnitees under this Trust
         Indenture (other than the amounts specified in clause "Second" below),
         the Participation Agreement or the Equipment Notes;

Second,  (i) to pay the amounts specified in paragraph (i) of clause "Third" of
         Section 3.03 hereof plus Make-Whole Amount, if any, then due and
         payable in respect of the Series A Equipment Notes; and

   (ii)  after giving effect to paragraph (i) above, to pay the amounts
         specified in paragraph (ii) of clause "Third" of Section 3.03 hereof
         plus Make-Whole Amount, if any, then due and payable in respect of the
         Series B Equipment Notes; and

Third,   as provided in clause "Fourth" of Section 3.03 hereof;

         provided, however, that if a Replacement Airframe or Replacement Engine
shall be substituted for the Airframe or Engine subject to such Event of Loss as
provided in Section 4.05 hereof, any insurance, condemnation or similar proceeds
which result from such Event of Loss and are paid over to the Mortgagee shall be
held by the Mortgagee as permitted by Section 7.04 hereof (provided that such
moneys shall be invested as provided in Section 6.06 hereof) as additional
security for the obligations of Owner under Operative Agreements and such
proceeds (and such investment earnings), to the extent not theretofore applied
as provided herein, shall be released to the Owner at the Owner's written
request upon the release of such Airframe or Engine and the replacement thereof
as provided herein; provided, further, that no Make-Whole Amount shall be
payable in connection with a redemption resulting from an Event of Loss.

SECTION 3.03. PAYMENTS AFTER EVENT OF DEFAULT

         Except as otherwise provided in Section 3.04 hereof, all payments
received and amounts held or realized by the Mortgagee (including any amounts
realized by the Mortgagee from the exercise of any remedies pursuant to Article
V hereof) after an Event of Default shall have occurred and be

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2002 EETC - Mortgage (Owned) (10)

<PAGE>

continuing and after the declaration specified in Section 5.02(b) hereof, as
well as all payments or amounts then held by the Mortgagee as part of the
Collateral, shall be promptly distributed by the Mortgagee in the following
order of priority:

First,        so much of such payments or amounts as shall be required to (i)
              reimburse the Mortgagee or WTC for any tax, expense or other loss
              (including, without limitation, all amounts to be expended at the
              expense of, or charged upon the rents, revenues, issues, products
              and profits of, the property included in the Collateral (all such
              property being herein called the "Mortgaged Property") pursuant to
              Section 5.03(b) hereof) incurred by the Mortgagee or WTC (to the
              extent not previously reimbursed), the expenses of any sale, or
              other proceeding, reasonable attorneys' fees and expenses, court
              costs, and any other expenditures incurred or expenditures or
              advances made by the Mortgagee, WTC or the Note Holders in the
              protection, exercise or enforcement of any right, power or remedy
              or any damages sustained by the Mortgagee, WTC or any Note Holder,
              liquidated or otherwise, upon such Event of Default shall be
              applied by the Mortgagee as between itself, WTC and the Note
              Holders in reimbursement of such expenses and any other expenses
              for which the Mortgagee, WTC or the Note Holders are entitled to
              reimbursement under any Operative Agreement and (ii) all amounts
              payable to the other Mortgage Indemnitees hereunder and under the
              Participation Agreement; and in the case the aggregate amount to
              be so distributed is insufficient to pay as aforesaid in clauses
              (i) and (ii), then ratably, without priority of one over the
              other, in proportion to the amounts owed each hereunder;

Second,       so much of such payments or amounts remaining as shall be required
              to reimburse the then existing or prior Note Holders for payments
              made pursuant to Section 6.03 hereof (to the extent not previously
              reimbursed) shall be distributed to such then existing or prior
              Note Holders ratably, without priority of one over the other, in
              accordance with the amount of the payment or payments made by each
              such then existing or prior Note Holder pursuant to said Section
              6.03 hereof;

Third, (i)    so much of such payments or amounts remaining as shall be required
              to pay in full the aggregate unpaid Original Amount of all Series
              A Equipment Notes, and the accrued but unpaid interest and other
              amounts due thereon (other than Make-Whole Amount which shall not
              be due and payable) and all other Secured Obligations in respect
              of the Series A Equipment Notes (other than

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2002 EETC - Mortgage (Owned) (10)

<PAGE>

              Make-Whole Amount) to the date of distribution, shall be
              distributed to the Note Holders of Series A, and in case the
              aggregate amount so to be distributed shall be insufficient to
              pay in full as aforesaid, then ratably, without priority of one
              over the other, in the proportion that the aggregate unpaid
              Original Amount of all Series A Equipment Notes held by each
              holder plus the accrued but unpaid interest and other amounts due
              hereunder or thereunder (other than Make-Whole Amount, if any) to
              the date of distribution, bears to the aggregate unpaid Original
              Amount of all Series A Equipment Notes held by all such holders
              plus the accrued but unpaid interest and other amounts due thereon
              (other than Make-Whole Amount) to the date of distribution; and

      (ii)    after giving effect to paragraph (i) above, so much of such
              payments or amounts remaining as shall be required to pay in full
              the aggregate unpaid Original Amount of all Series B Equipment
              Notes, and the accrued but unpaid interest and other amounts due
              thereon (other than Make-Whole Amount which shall not be due and
              payable) and all other Secured Obligations in respect of the
              Series B Equipment Notes (other than Make-Whole Amount) to the
              date of distribution, shall be distributed to the Note Holders of
              Series B, and in case the aggregate amount so to be distributed
              shall be insufficient to pay in full as aforesaid, then ratably,
              without priority of one over the other, in the proportion that the
              aggregate unpaid Original Amount of all Series B Equipment Notes
              held by each holder plus the accrued but unpaid interest and other
              amounts due hereunder or thereunder (other than the Make-Whole
              Amount, if any) to the date of distribution, bears to the
              aggregate unpaid Original Amount of all Series B Equipment Notes
              held by all such holders plus the accrued but unpaid interest and
              other amounts due thereon (other than the Make-Whole Amount) to
              the date of distribution; and

Fourth,       the balance, if any, of such payments or amounts remaining
              thereafter shall be distributed to the Owner.

              No Make-Whole Amount shall be due and payable on the Equipment
Notes as a consequence of the acceleration of the Equipment Notes as a result of
an Event of Default.

SECTION 3.04. CERTAIN PAYMENTS

              (a) Any payments received by the Mortgagee for which no provision
as to the application thereof is made in this Trust Indenture and for

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2002 EETC - Mortgage (Owned) (10)

<PAGE>

which such provision is made in any other Operative Agreement shall be applied
forthwith to the purpose for which such payment was made in accordance with the
terms of such other Operative Agreement, as the case may be.

         (b) Notwithstanding anything to the contrary contained in this Article
III, the Mortgagee will distribute promptly upon receipt any indemnity payment
received by it from the Owner in respect of the Mortgagee in its individual
capacity, any Note Holder or any other Mortgage Indemnitee, in each case whether
pursuant to Section 7 of the Participation Agreement or otherwise, directly to
the Person entitled thereto. Any payment received by the Mortgagee under the
third paragraph of Section 2.02 shall be distributed to the Subordination Agent
to be distributed in accordance with the terms of the Intercreditor Agreement.

SECTION 3.05. OTHER PAYMENTS

         Any payments received by the Mortgagee for which no provision as to the
application thereof is made elsewhere in this Trust Indenture or in any other
Operative Agreement shall be distributed by the Mortgagee to the extent received
or realized at any time, in the order of priority specified in Section 3.01
hereof, and after payment in full of all amounts then due in accordance with
Section 3.01 in the manner provided in clause "Fourth" of Section 3.03 hereof.

SECTION 3.06. APPLICATION OF PAYMENTS UNDER GUARANTEE

         All payments received by the Mortgagee pursuant to the Guarantee shall
be distributed forthwith by the Mortgagee in the same order of priority, and in
the same manner, as it would have distributed the payment in respect of which
such payment under the Guarantee was received.

                                   ARTICLE IV

                             COVENANTS OF THE OWNER

SECTION 4.01. LIENS

         The Owner will not directly or indirectly create, incur, assume or
suffer to exist any Lien or with respect to the Aircraft, the Airframe or any
Engine or any Part, title to any of the foregoing or any interest of Owner
therein, except Permitted Liens. The Owner shall promptly, at its own expense,
take (or cause to be taken) such action as may be necessary to duly discharge
(by bonding or otherwise) any Lien other than a Permitted Lien arising at any
time in respect of the Aircraft, the Airframe, any Engine or any Part.

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<PAGE>

SECTION 4.02.  POSSESSION, OPERATION AND USE, REGISTRATION AND MARKINGS

         (a) General. Except as otherwise expressly provided herein, the Owner
shall be entitled to operate, use, locate, employ or otherwise utilize or not
utilize the Airframe, any Engine or any Parts in any lawful manner or place in
accordance with the Owner's business judgment.

         (b) Possession. The Owner, without the prior consent of Mortgagee,
shall not lease or otherwise in any manner deliver, transfer or relinquish
possession of the Aircraft, the Airframe or any Engine or install any Engine, or
permit any Engine to be installed, on any airframe other than the Airframe;
except that so long as no Event of Default shall have occurred and be continuing
at the time of such lease, delivery, transfer or relinquishment, the Owner may,
without such prior written consent of Mortgagee:

         (i) Subject or permit any Permitted Lessee to subject (aa) the Airframe
    to normal interchange agreements, or (bb) any Engine to normal interchange
    agreements or pooling agreements or arrangements, in each case customary in
    the commercial airline industry and entered into by Owner or such Permitted
    Lessee, as the case may be, in the ordinary course of business; provided,
    however, that if Owner's title to any such Engine is divested under any such
    agreement or arrangement, then such Engine shall be deemed to have suffered
    an Event of Loss as of the date of such divestiture, and Owner shall comply
    with Section 4.04(e) in respect thereof;

         (ii) Deliver or permit any Permitted Lessee to deliver possession of
    the Aircraft, Airframe, any Engine or any Part (x) to the manufacturer
    thereof or to any third-party maintenance provider for testing, service,
    repair, maintenance or overhaul work on the Aircraft, Airframe, any Engine
    or any Part, or, to the extent required or permitted by Section 4.04, for
    alterations or modifications in or additions to the Aircraft, Airframe or
    any Engine or (y) to any Person for the purpose of transport to a Person
    referred to in the preceding clause (x);

         (iii) Install or permit any Permitted Lessee to install an Engine on an
    airframe owned by Owner or such Permitted Lessee, as the case may be, free
    and clear of all Liens, except (x) Permitted Liens and those that do not
    apply to the Engines, and (y) the rights of third parties under normal
    interchange or pooling agreements and arrangements of the type that would be
    permitted under Section 4.02(b)(i);

         (iv) Install or permit any Permitted Lessee to install an Engine on an
    airframe leased to Owner or such Permitted Lessee, or purchased

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2002 EETC - Mortgage (Owned) (10)

<PAGE>

    by Owner or such Permitted Lessee subject to a mortgage, security agreement,
    conditional sale or other secured financing arrangement, but only if (x)
    such airframe is free and clear of all Liens, except (A) the rights of the
    parties to such lease, or any such secured financing arrangement, covering
    such airframe and (B) Liens of the type permitted by clause (iii) above and
    (y) Owner or Permitted Lessee, as the case may be, shall have received from
    the lessor, mortgagee, secured party or conditional seller, in respect of
    such airframe, a written agreement (which may be a copy of the lease,
    mortgage, security agreement, conditional sale or other agreement covering
    such airframe), whereby such Person agrees that it will not acquire or claim
    any right, title or interest in, or Lien on, such Engine by reason of such
    Engine being installed on such airframe at any time while such Engine is
    subject to the Lien of this Trust Indenture;

         (v) Install or permit any Permitted Lessee to install an Engine on an
    airframe owned by Owner or such Permitted Lessee, leased to Owner or such
    Permitted Lessee, or purchased by Owner or such Permitted Lessee subject to
    a conditional sale or other security agreement under circumstances where
    neither clause (iii) or (iv) above is applicable; provided, however, that
    any such installation shall be deemed an Event of Loss with respect to such
    Engine, and Owner shall comply with Section 4.04(e) hereof in respect
    thereof;

         (vi) Transfer or permit any Permitted Lessee to transfer possession of
    the Aircraft, Airframe or any Engine to the U.S. Government, in which event
    Owner shall promptly notify Mortgagee in writing of any such transfer of
    possession and, in the case of any transfer pursuant to CRAF, in such
    notification shall identify by name, address and telephone numbers the
    Contracting Office Representative or Representatives for the Military
    Airlift Command of the United States Air Force to whom notices must be given
    and to whom requests or claims must be made to the extent applicable under
    CRAF;

         (vii) Enter into a charter or Wet Lease or other similar arrangement
    with respect to the Aircraft or any other aircraft on which any Engine may
    be installed (which shall not be considered a transfer of possession
    hereunder); provided that the Owner's obligations hereunder shall continue
    in full force and effect notwithstanding any such charter or Wet Lease or
    other similar arrangement;

         (viii) So long as no Event of Default shall have occurred and be
    continuing, and subject to the provisions of the immediately following
    paragraph, enter into a lease with respect to the Aircraft, Airframe or any
    Engine with any Permitted Air Carrier that is not the subject to any

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2002 EETC - Mortgage (Owned) (10)

<PAGE>

    bankruptcy, insolvency, liquidation, reorganization, dissolution or similar
    proceeding and shall not have substantially all of its property in the
    possession of any liquidator, trustee, receiver or similar person; provided
    that, in the case only of a lease to a Permitted Foreign Air Carrier, (A)
    the United States maintains diplomatic relations with the country of
    domicile of such Permitted Foreign Air Carrier (or, in the case of Taiwan,
    diplomatic relations at least as good as those in effect on the Closing
    Date) and (B) Owner shall have furnished Mortgagee a favorable opinion of
    counsel, reasonably satisfactory to Mortgagee, in the country of domicile of
    such Permitted Foreign Air Carrier, that (v) the terms of such lease are the
    legal, valid and binding obligations of the parties thereto enforceable
    under the laws of such jurisdiction (subject to customary exceptions), (w)
    it is not necessary for Mortgagee to register or qualify to do business in
    such jurisdiction, if not already so registered or qualified, as a result,
    in whole or in part, of the proposed lease, (x) Mortgagee's Lien in respect
    of, the Aircraft, Airframe and Engines will be recognized in such
    jurisdiction, (y) the Laws of such jurisdiction of domicile require fair
    compensation by the government of such jurisdiction, payable in a currency
    freely convertible into Dollars, for the loss of title to the Aircraft,
    Airframe or Engines in the event of the requisition by such government of
    such title (unless Owner shall provide insurance in the amounts required
    with respect to hull insurance under this Trust Indenture covering the
    requisition of title to the Aircraft, Airframe or Engines by the government
    of such jurisdiction so long as the Aircraft, Airframe or Engines are
    subject to such lease) and (z) the agreement of such Permitted Air Carrier
    that its rights under the lease are subject and subordinate to all the terms
    of this Trust Indenture is enforceable against such Permitted Air Carrier
    under applicable Law (subject to customary exceptions);

provided that (1) the rights of any transferee who receives possession by reason
of a transfer permitted by this Section 4.02(b) (other than by a transfer of an
Engine which is deemed an Event of Loss) shall be subject and subordinate to all
the terms of this Trust Indenture, (2) the Owner shall remain primarily liable
for the performance of all of the terms of this Trust Indenture and all the
terms and conditions of this Trust Indenture and the other Operative Agreements
shall remain in effect and (3) Owner shall ensure that no lease or transfer of
possession otherwise in compliance with this Section 4.02(b) shall (x) adversely
affect the United States registration of the Aircraft, unless the Aircraft is
subject to reregistration in accordance with the provisions of Section 4.02(d)
or the maintenance, operation or use thereof except in compliance with Sections
4.02(c) and 4.04(a) or (y) permit any action not permitted to the Owner
hereunder.

         In the case of any lease permitted under this Section 4.02(b), the
Owner will include in such lease appropriate provisions which (t) make such

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2002 EETC - Mortgage (Owned) (10)

<PAGE>

lease expressly subject and subordinate to all of the terms of this Trust
Indenture, including the rights of the Mortgagee to avoid such lease in the
exercise of its rights to repossession of the Airframe and Engines hereunder;
(u) require the Permitted Lessee to comply with the terms of Section 4.06; and
(v) require that the Airframe or any Engine subject thereto be used in
accordance with the limitations applicable to the Owner's possession and use
provided in this Trust Indenture and provisions for the maintenance and
inspection of the Aircraft that are the same in all material respects as are
contained herein. No lease permitted under this Section 4.02(b) shall be entered
into unless (w) Owner shall provide written notice to Mortgagee and Moody's
(such notice in the event of a lease to a U.S. Air Carrier to be given promptly
after entering into any such lease or, in the case of a lease to any other
Permitted Air Carrier, at least 10 days in advance of entering into such lease);
(x) Owner shall furnish to Mortgagee evidence reasonably satisfactory to
Mortgagee that the insurance required by Section 4.06 remains in effect; (y) all
necessary documents shall have been duly filed, registered or recorded in such
public offices as may be required fully to preserve the first priority security
interest (subject to Permitted Liens) of Mortgagee in the Aircraft, Airframe and
Engines; and (z) Owner shall reimburse Mortgagee for all of its reasonable
out-of-pocket fees and expenses, including, without limitation, reasonable fees
and disbursements of counsel, incurred by Mortgagee in connection with any such
lease, and any such lease for a term of more than a year shall be assigned to
Mortgagee to secure Owner's obligations hereunder. Except as otherwise provided
herein and without in any way relieving the Owner from its primary obligation
for the performance of its obligations under this Trust Indenture, the Owner may
in its sole discretion permit a lessee to exercise any or all rights which the
Owner would be entitled to exercise under Sections 4.02 and 4.04, and may cause
a lessee to perform any or all of the Owner's obligations under Article IV, and
the Mortgagee agrees to accept actual and full performance thereof by a lessee
in lieu of performance by the Owner.

         Mortgagee hereby agrees, and each Note Holder by acceptance of an
Equipment Note agrees, for the benefit of each lessor, conditional seller,
indenture trustee or secured party of any engine leased to, or purchased by,
Owner or any Permitted Lessee subject to a lease, conditional sale, trust
indenture or other security agreement that Mortgagee, each Note Holder and their
respective successors and assigns will not acquire or claim, as against such
lessor, conditional seller, indenture trustee or secured party, any right, title
or interest in any engine as the result of such engine being installed on the
Airframe at any time while such engine is subject to such lease, conditional
sale, trust indenture or other security agreement and owned by such lessor or
conditional seller or subject to a trust indenture or security interest in favor
of such indenture trustee or secured party.

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<PAGE>

         (c) Operation and Use. So long as the Aircraft, Airframe or any Engine
is subject to the Lien of this Trust Indenture, the Owner shall not operate, use
or locate the Aircraft, Airframe or any Engine, or allow the Aircraft, Airframe
or any Engine to be operated, used or located, (i) in any area excluded from
coverage by any insurance required by the terms of Section 4.06, except in the
case of a requisition by the U.S. Government where the Owner obtains indemnity
in lieu of such insurance from the U.S. Government, or insurance from the U.S.
Government covering such area in accordance with Section 4.06(c), or (ii) in any
recognized area of hostilities unless covered in accordance with Annex B by War
Risk Insurance as required by the terms of Section 4.06 (including, without
limitation, Section 4.06(c)), unless in any case referred to in this Section
4.02(c) the Aircraft, the Airframe or any Engine is only temporarily operated,
used or located in such area as a result of an emergency, equipment malfunction,
navigational error, hijacking, weather condition or other similar unforeseen
circumstance, so long as Owner diligently and in good faith proceeds to remove
the Aircraft from such area. So long as the Aircraft, the Airframe or any Engine
is subject to the Lien of this Trust Indenture, the Owner shall not permit such
Aircraft, Airframe or any Engine, as the case may be, to be used, operated,
maintained, serviced, repaired or overhauled (x) in violation of any Law binding
on or applicable to such Aircraft, Airframe or Engine or (y) in violation of any
airworthiness certificate, license or registration of any Government Entity
relating to the Aircraft, the Airframe or any Engine, except (i) immaterial or
non-recurring violations with respect to which corrective measures are taken
promptly by Owner or Permitted Lessee, as the case may be, upon discovery
thereof, or (ii) to the extent the validity or application of any such Law or
requirement relating to any such certificate, license or registration is being
contested in good faith by Owner or Permitted Lessee in any reasonable manner
which does not involve any material risk of the sale, forfeiture or loss of the
Aircraft, Airframe or any Engine or materially and adversely affect the interest
of any Note Holder therein, any material risk of criminal liability against
Mortgagee or impair the Mortgagee's security interest in the Aircraft, Airframe
or any Engine.

         (d) Maintenance and Repair. So long as the Aircraft, Airframe or any
Engine is subject to the Lien of this Trust Indenture, the Owner shall cause the
Aircraft, Airframe and each Engine to be maintained, serviced, repaired and
overhauled in accordance with (i) maintenance standards required by or
substantially equivalent to those required by the FAA or the central aviation
authority of Canada, Japan, or the Joint Aviation Authority (being the central
aviation authority of France, Germany, Japan, the Netherlands, and the United
Kingdom, inter alia) for the Aircraft, Airframe and Engines (the "Maintenance
Program"), so as to (A) keep the Aircraft, the Airframe and each Engine in as
good operating condition as on the Closing Date, ordinary wear and tear
excepted, (B) keep the Aircraft in such operating

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2002 EETC - Mortgage (Owned) (10)

<PAGE>

condition as may be necessary to enable the applicable airworthiness
certification of such Aircraft to be maintained under the regulations of the FAA
or other Aviation Authority then having jurisdiction over the operation of the
Aircraft, except during (x) temporary periods of storage in accordance with
applicable regulations, (y) maintenance and modification permitted hereunder or
(z) periods when the FAA or such other Aviation Authority has revoked or
suspended the airworthiness certificates for Similar Aircraft; and (ii) except
during periods when a Permitted Lease is in effect, the same standards as Owner
uses with respect to similar aircraft of similar size in its fleet operated by
Owner in similar circumstances and, during any period in which a Permitted Lease
is in effect, the same standards used by the Permitted Lessee with respect to
similar aircraft of similar size in its fleet and operated by the Permitted
Lessee in similar circumstances. Owner further agrees that the Aircraft,
Airframe and Engines will be maintained, used, serviced, repaired, overhauled or
inspected in compliance with applicable Laws with respect to the maintenance of
the Aircraft and in compliance with each applicable airworthiness certificate,
license and registration relating to the Aircraft, Airframe or any Engine issued
by the Aviation Authority, other than minor or nonrecurring violations with
respect to which corrective measures are taken upon discovery thereof and except
to the extent Owner or Permitted Lessee is contesting in good faith the validity
or application of any such Law or requirement relating to any such certificate,
license or registration in any reasonable manner which does not create a
material risk of sale, loss or forfeiture of the Aircraft, the Airframe or any
Engine or the interest of Mortgagee therein, or any material risk of criminal
liability or material civil penalty against Mortgagee. The Owner shall maintain
or cause to be maintained the Aircraft Documents in the English language.

         (e) Registration. The Owner on or prior to the date of the Closing
shall cause the Aircraft to be duly registered with the FAA in its name under
the Act and except as otherwise permitted by this Section 4.02(e) at all times
thereafter shall cause the Aircraft to remain so registered. So long as no
Special Default or Event of Default shall have occurred and be continuing, Owner
may, by written notice to Mortgagee, request to change the country of
registration of the Aircraft. Any such change in registration shall be effected
only in compliance with, and subject to all of the conditions set forth in,
Section 5.4.5 of the Participation Agreement. Unless the Trust Indenture has
been discharged, Owner shall also cause the Trust Indenture to be duly recorded
and at all times maintained of record as a first-priority perfected mortgage
(subject to Permitted Liens) on the Aircraft, the Airframe and each of the
Engines (except to the extent such perfection or priority cannot be maintained
solely as a result of the failure by Mortgagee to execute and deliver any
necessary documents).

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2002 EETC - Mortgage (Owned) (10)

<PAGE>

         (f) Markings. If permitted by applicable Law, on or reasonably promptly
after the Closing Date, Owner will cause to be affixed to, and maintained in,
the cockpit of the Airframe and on each Engine, in each case, in a clearly
visible location, a placard of a reasonable size and shape bearing the legend:
"Subject to a security interest in favor of Wilmington Trust Company, not in its
individual capacity but solely as Mortgagee." Such placards may be removed
temporarily, if necessary, in the course of maintenance of the Airframe or
Engines. If any such placard is damaged or becomes illegible, Owner shall
promptly replace it with a placard complying with the requirements of this
Section 4.02(e).

SECTION 4.03. INSPECTION

         (a) At all reasonable times and upon reasonable advance notice (taking
into consideration the availability of the Aircraft and Owner (or Permitted
Lessee) personnel), so long as the Aircraft is subject to the Lien of this Trust
Indenture, Mortgagee and its authorized representatives (the "Inspecting
Parties") may (not more than once every 12 months unless an Event of Default has
occurred and is continuing then such inspection right shall not be so limited)
inspect the Aircraft, Airframe and Engines (including without limitation, the
Aircraft Documents) and any such Inspecting Party may make copies of such
Aircraft Documents not reasonably deemed confidential by Owner or such Permitted
Lessee.

         (b) Any inspection of the Aircraft hereunder shall be limited to a
visual, walk-around inspection and shall not include the opening of any panels,
bays or other components of the Aircraft, and no such inspection shall interfere
with Owner's or any Permitted Lessee's maintenance and operation of the
Aircraft, Airframe and Engines.

         (c) With respect to such rights of inspection, Mortgagee shall not have
any duty or liability to make, or any duty or liability by reason of not making,
any such visit, inspection or survey.

         (d) Each Inspecting Party shall bear its own expenses in connection
with any such inspection (including the cost of any copies made in accordance
with Section 4.03(a)).

SECTION 4.04. REPLACEMENT AND POOLING OF PARTS, ALTERATIONS, MODIFICATIONS AND
ADDITIONS; SUBSTITUTION OF ENGINES

         (a) Replacement of Parts. Except as otherwise provided herein, so long
as the Airframe or Engine is subject to the Lien of this Trust Indenture, Owner,
at its own cost and expense, will, or will cause a Permitted Lessee to, at its
own cost and expense, promptly replace (or cause to be replaced) all Parts

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2002 EETC - Mortgage (Owned) (10)

<PAGE>

which may from time to time be incorporated or installed in or attached to the
Aircraft, Airframe or any Engine and which may from time to time become worn
out, lost, stolen, destroyed, seized, confiscated, damaged beyond repair or
permanently rendered unfit for use for any reason whatsoever. In addition, Owner
may, at its own cost and expense, or may permit a Permitted Lessee at its own
cost and expense to, remove (or cause to be removed) in the ordinary course of
maintenance, service, repair, overhaul or testing any Parts, whether or not worn
out, lost, stolen, destroyed, seized, confiscated, damaged beyond repair or
permanently rendered unfit for use; provided, however, that Owner, except as
otherwise provided herein, at its own cost and expense, will, or will cause a
Permitted Lessee at its own cost and expense to, replace such Parts as promptly
as practicable. All replacement Parts shall be free and clear of all Liens,
except for Permitted Liens and pooling arrangements to the extent permitted by
Section 4.04(c) below (and except in the case of replacement property
temporarily installed on an emergency basis) and shall be in good operating
condition and have a value and utility not less than the value and utility of
the Parts replaced (assuming such replaced Parts were in the condition required
hereunder).

         (b) Parts. Except as otherwise provided herein, any Part at any time
removed from the Airframe or any Engine shall remain subject to the Lien of this
Trust Indenture, no matter where located, until such time as such Part shall be
replaced by a Part that has been incorporated or installed in or attached to
such Airframe or any Engine and that meets the requirements for replacement
Parts specified above. Immediately upon any replacement Part becoming
incorporated or installed in or attached to such Airframe or any Engine as
provided in Section 4.04(a), without further act, (i) the replaced Part shall
thereupon be free and clear of all rights of the Mortgagee and shall no longer
be deemed a Part hereunder, and (ii) such replacement Part shall become subject
to this Trust Indenture and be deemed part of such Airframe or any Engine, as
the case may be, for all purposes hereof to the same extent as the Parts
originally incorporated or installed in or attached to such Airframe or any
Engine.

         (c) Pooling of Parts. Any Part removed from the Aircraft, Airframe or
an Engine may be subjected by the Owner or a Permitted Lessee to a normal
pooling arrangement customary in the airline industry and entered into in the
ordinary course of business of Owner or Permitted Lessee, provided that the part
replacing such removed Part shall be incorporated or installed in or attached to
such Airframe or any Engine in accordance with Sections 4.04(a) and 4.04(b) as
promptly as practicable after the removal of such removed Part. In addition, any
replacement part when incorporated or installed in or attached to the Airframe
or any Engine may be owned by any third party, subject to a normal pooling
arrangement, so long as the Owner or a Permitted Lessee, at its

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2002 EETC - Mortgage (Owned) (10)

<PAGE>

own cost and expense, as promptly thereafter as reasonably possible, either (i)
causes such replacement part to become subject to the Lien of this Trust
Indenture, free and clear of all Liens except Permitted Liens, at which time
such replacement part shall become a Part or (ii) replaces (or causes to be
replaced) such replacement part by incorporating or installing in or attaching
to the Aircraft, Airframe or any Engine a further replacement Part owned by the
Owner free and clear of all Liens except Permitted Liens and which shall become
subject to the Lien of this Trust Indenture in accordance with Section 4.04(b).

         (d) Alterations, Modifications and Additions. The Owner shall, or shall
cause a Permitted Lessee to, make (or cause to be made) alterations and
modifications in and additions to the Aircraft, Airframe and each Engine as may
be required to be made from time to time to meet the applicable standards of the
FAA or other Aviation Authority having jurisdiction over the operation of the
Aircraft, to the extent made mandatory in respect of the Aircraft (a "Mandatory
Modification"); provided however, that the Owner or a Permitted Lessee may, in
good faith and by appropriate procedure, contest the validity or application of
any law, rule, regulation or order in any reasonable manner which does not
materially adversely affect Mortgagee's interest in the Aircraft and does not
involve any material risk of sale, forfeiture or loss of the Aircraft or the
interest of Mortgagee therein, or any material risk of material civil penalty or
any material risk of criminal liability being imposed on Mortgagee or the holder
of any Equipment Note. In addition, the Owner, at its own expense, may, or may
permit a Permitted Lessee at its own cost and expense to, from time to time make
or cause to be made such alterations and modifications in and additions to the
Airframe or any Engine (each an "Optional Modification") as the Owner or such
Permitted Lessee may deem desirable in the proper conduct of its business
including, without limitation, removal of Parts which Owner deems are obsolete
or no longer suitable or appropriate for use in the Aircraft, Airframe or such
Engine; provided, however, that no such Optional Modification shall (i)
materially diminish the fair market value, utility, or useful life of the
Aircraft or any Engine below its fair market value, utility or useful life
immediately prior to such Optional Modification (assuming the Aircraft or such
Engine was in the condition required by the Trust Indenture immediately prior to
such Optional Modification) or (ii) cause the Aircraft to cease to have the
applicable standard certificate of airworthiness. All Parts incorporated or
installed in or attached to any Airframe or any Engine as the result of any
alteration, modification or addition effected by the Owner shall be free and
clear of any Liens except Permitted Liens and become subject to the Lien of this
Trust Indenture; provided that the Owner or any Permitted Lessee may, at any
time so long as the Airframe or any Engine is subject to the Lien of this Trust
Indenture, remove any such Part (such Part being referred to herein as a
"Removable Part") from such Airframe or an Engine if (i) such Part is in

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2002 EETC - Mortgage (Owned) (10)

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addition to, and not in replacement of or in substitution for, any Part
originally incorporated or installed in or attached to such Airframe or any
Engine at the time of delivery thereof hereunder or any Part in replacement of,
or in substitution for, any such original Part, (ii) such Part is not required
to be incorporated or installed in or attached or added to such Airframe or any
Engine pursuant to the terms of Section 4.02(d) or the first sentence of this
Section 4.04(d) and (iii) such Part can be removed from such Airframe or any
Engine without materially diminishing the fair market value, utility or
remaining useful life which such Airframe or any Engine would have had at the
time of removal had such removal not been effected by the Owner, assuming the
Aircraft was otherwise maintained in the condition required by this Trust
Indenture and such Removable Part had not been incorporated or installed in or
attached to the Aircraft, Airframe or such Engine. Upon the removal by the Owner
of any such Part as above provided, title thereto shall, without further act, be
free and clear of all rights of the Mortgagee and such Part shall no longer be
deemed a Part hereunder. Removable Parts may be leased from or financed by third
parties other than Mortgagee.

         (e) Substitution of Engines. Upon the occurrence of an Event of Loss
with respect to an Engine under circumstances in which an Event of Loss with
respect to the Airframe has not occurred, Owner shall promptly (and in any event
within 15 days after such occurrence) give the Mortgagee written notice of such
Event of Loss. The Owner shall have the right at its option at any time, on at
least five Business Days' prior notice to the Mortgagee, to substitute, and if
an Event of Loss shall have occurred with respect to an Engine under
circumstances in which an Event of Loss with respect to the Airframe has not
occurred, shall within 60 days of the occurrence of such Event of Loss
substitute, a Replacement Engine for any Engine. In such event, immediately upon
the effectiveness of such substitution and without further act, (i) the replaced
Engine shall thereupon be free and clear of all rights of the Mortgagee and the
Lien of this Trust Indenture and shall no longer be deemed an Engine hereunder
and (ii) such Replacement Engine shall become subject to this Trust Indenture
and be deemed part of the Aircraft for all purposes hereof to the same extent as
the replaced Engine. Such Replacement Engine shall be an engine manufactured by
Engine Manufacturer that is the same model as the Engine to be replaced thereby,
or an improved model, and that is suitable for installation and use on the
Airframe, and that has a value, utility and remaining useful life (without
regard to hours and cycles remaining until overhaul) at least equal to the
Engine to be replaced thereby (assuming that such Engine had been maintained in
accordance with this Trust Indenture). The Owner's right to make a replacement
hereunder shall be subject to the fulfillment (which may be simultaneous with
such replacement) of the applicable conditions precedent set forth in Section
4.05(c) at the Owner's sole

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<PAGE>

cost and expense, and the Mortgagee agrees to cooperate with the Owner to the
extent necessary to enable it to timely satisfy such conditions.

SECTION 4.05. LOSS, DESTRUCTION OR REQUISITION

                  (a) Event of Loss With Respect to the Airframe.

         Upon the occurrence of an Event of Loss with respect to the Airframe,
the Owner shall promptly (and in any event within 15 days after such occurrence)
give the Mortgagee written notice of such Event of Loss. The Owner shall, within
45 days after such occurrence, give the Mortgagee written notice of Owner's
election to either replace the Airframe as provided under Section 4.05(a)(i) or
to make payment in respect of such Event of Loss as provided under Section
4.05(a)(ii) (it being agreed that if Owner shall not have given the Mortgagee
such notice of such election within the above specified time period, the Owner
shall be deemed to have elected to make payment in respect of such Event of Loss
as provided under Section 4.05(a)(ii)):

                  (i) if Owner elects to replace the Airframe, Owner shall,
         subject to the satisfaction of the conditions contained in Section
         4.05(c), as promptly as possible and in any event within 120 days after
         the occurrence of such Event of Loss, cause to be subjected to the Lien
         of this Trust Indenture, in replacement of the Airframe with respect to
         which the Event of Loss occurred, a Replacement Airframe and, if any
         Engine shall have been installed on the Airframe when it suffered the
         Event of Loss, a Replacement Engine therefor, such Replacement Airframe
         and Replacement Engines to be free and clear of all Liens except
         Permitted Liens and to have a value, utility and remaining useful life
         (without regard to hours or cycles remaining until the next regular
         maintenance check) at least equal to the Airframe or Engine, as the
         case may be, to be replaced thereby (assuming that such Airframe or
         Engine had been maintained in accordance with this Trust Indenture);
         provided that if the Owner shall not perform its obligation to effect
         such replacement under this clause (i) during the 120-day period of
         time provided herein, it shall pay the amounts required to be paid
         pursuant to and within the time frame specified in clause (ii) below;
         or

                  (ii) if Owner elects to make a payment in respect of such
         Event of Loss of the Airframe, Owner shall make a payment to the
         Mortgagee for purposes of redeeming Equipment Notes in accordance with
         Section 2.10 hereof on a date on or before the Business Day next
         following the earlier of (x) the 120th day following the date of the
         occurrence of such Event of Loss with respect to an Airframe or within
         60 days of such Event of Loss with respect to any Engine, and (y) the
         fourth Business

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         Day following the receipt of insurance proceeds with respect to such
         Event of Loss (but in any event not earlier than the date of Owner's
         election under Section 4.05(a) to make payment under this Section 4.05
         (a)(ii)); and upon such payment and payment of all other Secured
         Obligations then due and payable, the Mortgagee shall, at the cost and
         expense of the Owner, release from the Lien of this Trust Indenture the
         Airframe and the Engines, by executing and delivering to the Owner all
         documents and instruments as the Owner may reasonably request to
         evidence such release.

                  (b) Effect of Replacement. Should the Owner have provided a
Replacement Airframe and Replacement Engines, if any, as provided for in Section
4.05(a)(i), (i) the Lien of this Trust Indenture shall continue with respect to
such Replacement Airframe and Replacement Engines, if any, as though no Event of
Loss had occurred; (ii) the Mortgagee shall, at the cost and expense of the
Owner, release from the Lien of this Trust Indenture the replaced Airframe and
Engines, if any, by executing and delivering to the Owner such documents and
instruments as the Owner may reasonably request to evidence such release; and
(iii) in the case of a replacement upon an Event of Loss, the Mortgagee shall
assign to the Owner (or if directed by the Owner, the insurers having made
payment in respect of the applicable Event of Loss) all claims the Mortgagee may
have against any other Person arising from the Event of Loss and the Owner shall
receive all insurance proceeds (other than those reserved to others under
Section 4.06(b)) and proceeds from any award in respect of condemnation,
confiscation, seizure or requisition, including any investment interest thereon,
to the extent not previously applied to the purchase price of the Replacement
Airframe and Replacement Engines, if any, as provided in Sections 4.05(d).

                  (c) Conditions to Airframe and Engine Replacement. The Owner's
right to substitute a Replacement Airframe and Replacement Engines, if any, as
provided in Section 4.04(e) or 4.05(a)(i), as the case may be, shall be subject
to the fulfillment, at the Owner's sole cost and expense, in addition to the
conditions contained in such Section 4.04(e) or 4.05(a)(i), as the case may be,
of the following conditions precedent:

                  (i) on the date when the Replacement Airframe and Replacement
         Engines, if any, is subjected to the Lien of this Trust Indenture (such
         date being referred to in this Section 4.05 as the "Replacement Closing
         Date"), an executed counterpart of each of the following documents (or,
         in the case of the FAA Bill of Sale and full warranty bill of sale
         referred to below, a photocopy thereof) shall have been delivered to
         the Mortgagee:

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2002 EETC - Mortgage (Owned) (10)

<PAGE>
                           (A) a Mortgage Supplement covering the Replacement
                  Airframe and Replacement Engines, if any, which shall have
                  been duly filed for recordation pursuant to the Act or such
                  other applicable law of such jurisdiction other than the
                  United States in which the Replacement Airframe and
                  Replacement Engines, if any, are to be registered in
                  accordance with Section 4.02(d), as the case may be;

                           (B) an FAA Bill of Sale (or a comparable document, if
                  any, of another Aviation Authority, if applicable) covering
                  the Replacement Airframe and Replacement Engines, if any,
                  executed by the former owner thereof in favor of the Owner;

                           (C) a full warranty (as to title) bill of sale,
                  covering the Replacement Airframe and Replacement Engines, if
                  any, executed by the former owner thereof in favor of the
                  Owner (or, at the Owner's option, other evidence of the
                  Owner's ownership of such Replacement Airframe and Replacement
                  Engines, if any, reasonably satisfactory to the Mortgagee);
                  and

                           (D) Uniform Commercial Code financing statements (or
                  any similar statements or other documents required to be filed
                  or delivered pursuant to the laws of the jurisdiction in which
                  the Replacement Airframe and Replacement Engines, if any, may
                  be registered in accordance with Section 4.02(d)) as are
                  deemed necessary or desirable by counsel for the Mortgagee to
                  protect the security interests of the Mortgagee in the
                  Replacement Airframe and Replacement Engines, if any;

                  (ii) the Replacement Airframe and Replacement Engines, if any,
         shall be of the same model as the Airframe or Engines, as the case may
         be, or an improved model of such aircraft or engines of the
         manufacturer thereof, shall have a value and utility (without regard to
         hours or cycles remaining until the next regular maintenance check) at
         least equal to, and be in as good operating condition and repair as,
         the Airframe and any Engines replaced (assuming such Airframe and
         Engines had been maintained in accordance with this Trust Indenture);

                  (iii) the Mortgagee (acting directly or by authorization to
         its special counsel) shall have received satisfactory evidence as to
         the compliance with Section 4.06 with respect to the Replacement
         Airframe and Replacement Engines, if any;

                  (iv) on the Replacement Closing Date, (A) the Owner shall
         cause the Replacement Airframe and Replacement Engines, if any, to be
         subject
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2002 EETC - Mortgage (Owned) (10)

<PAGE>

         to the Lien of this Trust Indenture free and clear of Liens (other
         than Permitted Liens), (B) the Replacement Airframe shall have
         been duly certified by the FAA or other applicable Aviation Authority
         as to type and airworthiness in accordance with the terms of this Trust
         Indenture and (C) application for registration of the Replacement

         Airframe in accordance with Section 4.02(e) shall have been duly made
         with the FAA or other applicable Aviation Authority and the Owner shall
         have authority to operate the Replacement Airframe;

                  (v) the Mortgagee at the expense of the Owner, shall have
         received (acting directly or by authorization to its special counsel)
         (A) an opinion of counsel, addressed to the Mortgagee, to the effect
         that (1) the Replacement Airframe and Replacement Engine, if any, has
         or have duly been made subject to the Lien of this Trust Indenture, and
         Mortgagee will be entitled to the benefits of Section 1110 with respect
         to the Replacement Airframe, provided that such opinion with respect to
         Section 1110 need not be delivered to the extent that immediately prior
         to such replacement the benefits of Section 1110 were not, solely by
         reason of a change in law or court interpretation thereof, available to
         Mortgagee, and (2) the FAA Bills of Sale constitutes an effective
         instrument for the conveyance of title to the Replacement Airframe or
         Replacement Engine, and (B) an opinion of Owner's aviation law counsel
         reasonably satisfactory to and addressed to Mortgagee as to the due
         registration of any such Replacement Airframe and the due filing for
         recordation of each Mortgage Supplement with respect to such
         Replacement Airframe or Replacement Engine under the Act or such other
         applicable law of the jurisdiction other than the United States in
         which the Replacement Airframe is to be registered in accordance with
         Section 4.02(e), as the case may be; and

                  (vi) the Owner shall have furnished to the Mortgagee a
         certificate of a qualified aircraft engineer (who may be an employee of
         Owner) certifying that the Replacement Airframe and Replacement
         Engines, if any, have a value and utility and remaining useful life
         (without regard to hours and cycles remaining until overhaul) at least
         equal to the Airframe and any Engines so replaced (assuming that such
         Airframe and Engines had been maintained in accordance with this Trust
         Indenture).

         Owner and Mortgagee understand and agree that if, at the time of any
replacement of the Airframe or any Engine(s) as contemplated in this Section
4.05, the Airframe was registered in a jurisdiction other than the United
States, then the requirements set forth above in this Section 4.05 relating to
compliance with the requirements of the Transportation Code or the

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2002 EETC - Mortgage (Owned) (10)

<PAGE>

FAA shall be deemed to refer to the comparable applicable Law of, and the
Aviation Authority of, such other jurisdiction.

                  (d) Non-Insurance Payments Received on Account of an Event of
Loss. Any amounts, other than insurance proceeds in respect of damage or loss
not constituting an Event of Loss (the application of which is provided for in
Annex B), received at any time by Mortgagee or Owner from any Government Entity
or any other Person in respect of any Event of Loss will be applied as follows:

                  (i) If such amounts are received with respect to the Airframe,
         and any Engine installed thereon at the time of such Event of Loss,
         upon compliance by Owner with the applicable terms of Section 4.05(c)
         with respect to the Event of Loss for which such amounts are received,
         such amounts shall be paid over to, or retained by, Owner;

                  (ii) If such amounts are received with respect to an Engine
         (other than an Engine installed on the Airframe at the time such
         Airframe suffers an Event of Loss), upon compliance by Owner with the
         applicable terms of Section 4.04(e) with respect to the Event of Loss
         for which such amounts are received, such amounts shall be paid over
         to, or retained by, Owner;

                  (iii) If such amounts are received, in whole or in part, with
         respect to the Airframe, and Owner makes, has made or is deemed to have
         made the election set forth in Section 4.05(a)(ii), such amounts shall
         be applied as follows:

                           first, if the sum described in Section 4.05(a)(ii)
                  has not then been paid in full by Owner, such amounts shall
                  be paid to Mortgagee to the extent necessary to pay in full
                  such sum; and

                           second, the remainder, if any, shall be paid to
                  Owner.

                  (e) Requisition for Use. In the event of a requisition for use
by any Government Entity of the Airframe and the Engines, if any, or engines
installed on such Airframe while such Airframe is subject to the Lien of this
Trust Indenture, the Owner shall promptly notify the Mortgagee of such
requisition and all of the Owner's obligations under this Trust Indenture shall
continue to the same extent as if such requisition had not occurred. Any
payments received by the Mortgagee or the Owner or Permitted Lessee from such
Government Entity with respect to such requisition of use shall be paid over to,
or retained by, the Owner. In the event of the requisition for use by a
Government Entity of such Engine (but not the Airframe), the Owner will replace
such Engine hereunder by complying with the terms of Section 4.04(e)

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2002 EETC - Mortgage (Owned) (10)

<PAGE>

to the same extent as if an Event of Loss in respect of such Engine had occurred
and any payments received by the Mortgagee or the Owner from such Government
Entity with respect to such requisition shall be paid over to, or retained by,
the Owner.

                  (f) Certain Payments to be Held As Security. Any amount
referred to in this Section 4.05 or Section 4.06 which is payable or creditable
to, or retainable by, the Owner shall not be paid or credited to, or retained by
the Owner if at the time of such payment, credit or retention a Special Default
shall have occurred and be continuing, but shall be paid to and held by the
Mortgagee as security for the obligations of the Owner under this Trust
Indenture and the Operative Agreements, and at such time as there shall not be
continuing any such Special Default such amount and any gain realized as a
result of investments required to be made pursuant to Section 6.06 shall to the
extent not theretofore applied as provided herein, be paid over to the Owner.

SECTION 4.06.  INSURANCE

                  (a) Owner's Obligation to Insure. Owner shall comply with, or
cause to be complied with, each of the provisions of Annex B, which provisions
are hereby incorporated by this reference as if set forth in full herein.

                  (b) Insurance for Own Account. Nothing in Section 4.06 shall
limit or prohibit (a) Owner from maintaining the policies of insurance required
under Annex B with higher limits than those specified in Annex B, or (b)
Mortgagee from obtaining insurance for its own account (and any proceeds payable
under such separate insurance shall be payable as provided in the policy
relating thereto); provided, however, that no insurance may be obtained or
maintained that would limit or otherwise adversely affect the coverage of any
insurance required to be obtained or maintained by Owner pursuant to this
Section 4.06 and Annex B.

                  (c) Indemnification by Government in Lieu of Insurance.
Mortgagee agrees to accept, in lieu of insurance against any risk with respect
to the Aircraft described in Annex B, indemnification from, or insurance
provided by, the U.S. Government, or upon the written consent of Mortgagee,
other Government Entity, against such risk in an amount that, when added to the
amount of insurance (including permitted self-insurance), if any, against such
risk that Owner (or any Permitted Lessee) may continue to maintain, in
accordance with this Section 4.06, during the period of such requisition or
transfer, shall be at least equal to the amount of insurance against such risk
otherwise required by this Section 4.06.

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2002 EETC - Mortgage (Owned) (10)

<PAGE>

                  (d) Application of Insurance Proceeds. As between Owner and
Mortgagee, all insurance proceeds received as a result of the occurrence of an
Event of Loss with respect to the Aircraft or any Engine under policies required
to be maintained by Owner pursuant to this Section 4.06 will be applied in
accordance with Section 4.05(d). All proceeds of insurance required to be
maintained by Owner, in accordance with Section 4.06 and Section B of Annex B,
in respect of any property damage or loss not constituting an Event of Loss with
respect to the Aircraft, Airframe or any Engine will be applied in payment (or
to reimburse Owner or any Permitted Lessee) for repairs or for replacement
property, and any balance remaining after such repairs or replacement with
respect to such damage or loss shall be paid over to, or retained by, Owner (or
as Owner shall direct).

SECTION 4.07.  MERGER OF OWNER

                  (a) In General.

         Owner shall not consolidate with or merge into any other person under
circumstances in which Owner is not the surviving corporation, or convey,
transfer or lease in one or more transactions all or substantially all of its
assets to any other person, unless:

                  (i) such person is organized, existing and in good standing
         under the Laws of the United States, any State of the United States or
         the District of Columbia and, upon consummation of such transaction,
         such person will be a U.S. Air Carrier;

                  (ii) such person executes and delivers to Mortgagee a duly
         authorized, legal, valid, binding and enforceable agreement, reasonably
         satisfactory in form and substance to Mortgagee, containing an
         effective assumption by such person of the due and punctual performance
         and observance of each covenant, agreement and condition in the
         Operative Agreements to be performed or observed by Owner;

                  (iii) if the Aircraft is, at the time, registered with the
         FAA, such person makes such filings and recordings with the FAA
         pursuant to the Act as shall be necessary to evidence such
         consolidation or merger or, if the Aircraft is, at the time, not
         registered with the FAA, such person makes such filings and recordings
         with the Aviation Authority as shall be necessary to evidence such
         consolidation or merger; and

                  (iv) Owner furnishes Mortgagee an opinion of counsel
         reasonably satisfactory to Mortgagee to the effect that such
         consolidation or merger

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2002 EETC - Mortgage (Owned) (10)

<PAGE>
         has satisfied at the closing of such consolidation or merger items (i),
         (ii) and (iii) above; and

                  (v) immediately after giving effect to such consolidation or
         merger no Event of Default shall have occurred and be continuing.

                  (b)      Effect of Merger.

         Upon any such consolidation or merger of Owner with or into, or the
conveyance, transfer or lease by Owner of all or substantially all of its assets
to, any Person in accordance with this Section 4.07, such Person will succeed
to, and be substituted for, and may exercise every right and power of, Owner
under the Operative Agreements with the same effect as if such person had been
named as "Owner" therein. No such consolidation or merger, or conveyance,
transfer or lease, shall have the effect of releasing Owner or such Person from
any of the obligations, liabilities, covenants or undertakings of Owner under
the Trust Indenture.

                                    ARTICLE V

                    EVENTS OF DEFAULT; REMEDIES OF MORTGAGEE

SECTION 5.01.  EVENT OF DEFAULT

         "Event of Default" means any of the following events (whatever the
reason for such Event of Default and whether such event shall be voluntary or
involuntary or come about or be effected by operation of Law or pursuant to or
in compliance with any judgment, decree or order of any court or any order, rule
or regulation of any administrative or Governmental Entity):

                  (i) the failure of the Owner or Guarantor to pay (i) principal
         of, interest on or Make-Whole Amount, if any, under any Equipment Note
         when due, and such failure shall continue unremedied for a period of
         ten Business Days, or (ii) any other amount payable by it to the Note
         Holders or any Mortgage Indemnitee under this Trust Indenture or the
         Participation Agreement when due, and such failure shall continue for a
         period in excess of 10 days after Owner has received written notice
         from Mortgagee of the failure to make such payment when due;

                  (ii) Owner or Guarantor shall fail to carry and maintain, or
         cause to be carried and maintained, insurance on and in respect of the
         Aircraft, Airframe and Engines in accordance with the provisions of
         Section 4.06;

                  (iii) Owner or Guarantor shall fail to observe or perform (or
         caused to be observed and performed) in any material respect any other
         covenant, agreement or obligation set forth herein or in any other

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         Operative Agreement to which it is a party and such failure shall
         continue unremedied for a period of 30 days from and after the date of
         written notice thereof to Owner or Guarantor, as the case may be, from
         Mortgagee, unless such failure is capable of being corrected and Owner
         or Guarantor shall be diligently proceeding to correct such failure, in
         which case there shall be no Event of Default unless and until such
         failure shall continue unremedied for a period of 270 days after
         receipt of such notice;

                  (iv) any representation or warranty made by Owner or Guarantor
         herein, in the Participation Agreement or in any other Operative
         Agreement to which it is a party (a) shall prove to have been untrue or
         inaccurate in any material respect as of the date made, (b) is material
         at the time in question, and (c) remains uncured (to the extent of the
         adverse impact of such incorrectness on the interest of the Mortgagee)
         for a period in excess of 30 days from and after the date of written
         notice thereof from Mortgagee to Owner or Guarantor;

                  (v) the Owner or Guarantor shall consent to the appointment of
         or taking possession by a receiver, trustee or liquidator of itself or
         of a substantial part of its property, or the Owner or Guarantor shall
         admit in writing its inability to pay its debts generally as they come
         due or shall make a general assignment for the benefit of its
         creditors, or the Owner or Guarantor shall file a voluntary petition in
         bankruptcy or a voluntary petition or an answer seeking reorganization,
         liquidation or other relief under any bankruptcy laws or insolvency
         laws (as in effect at such time), or an answer admitting the material
         allegations of a petition filed against it in any such case, or the
         Owner or Guarantor shall seek relief by voluntary petition, answer or
         consent, under the provisions of any other bankruptcy or similar law
         providing for the reorganization or winding-up of corporations (as in
         effect at such time), or the Owner or Guarantor shall seek an
         agreement, composition, extension or adjustment with its creditors
         under such laws;

                  (vi) an order, judgment or decree shall be entered by any
         court of competent jurisdiction appointing, without the consent of the
         Owner, a receiver, trustee or liquidator of the Owner or of any
         substantial part of its property, or any substantial part of the
         property of the Owner shall be sequestered, or granting any other
         relief in respect of the Owner as a debtor under any bankruptcy laws or
         other insolvency laws (as in effect at such time), and any such order,
         judgment, decree, or decree of appointment or sequestration shall
         remain in force undismissed, unstayed or unvacated for a period of 90
         days after the date of entry thereof;

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2002 EETC - Mortgage (Owned) (10)

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                  (vii) a petition against the Owner in a proceeding under any
         bankruptcy laws or other insolvency laws (as in effect at such time) is
         filed and not withdrawn or dismissed within 90 days thereafter, or if,
         under the provisions of any law providing for reorganization or
         winding-up of corporations which may apply to the Owner, any court of
         competent jurisdiction shall assume jurisdiction, custody or control of
         the Owner of any substantial part of its property and such
         jurisdiction, custody or control shall remain in force unrelinquished,
         unstayed or unterminated for a period of 90 days; or

                  (viii) the Guarantee shall for any reason whatsoever cease to
         be in full force and effect or Guarantor shall, in writing, repudiate
         the Guarantee or deny that its obligations thereunder are valid,
         binding and enforceable.

SECTION 5.02.  REMEDIES

                  (a) If an Event of Default shall have occurred and be
continuing and so long as the same shall continue unremedied, then and in every
such case the Mortgagee may exercise any or all of the rights and powers and
pursue any and all of the remedies pursuant to this Article V and shall have and
may exercise all of the rights and remedies of a secured party under the Uniform
Commercial Code and may take possession of all or any part of the properties
covered or intended to be covered by the Lien created hereby or pursuant hereto
and may exclude the Owner and all persons claiming under it wholly or partly
therefrom; provided, that the Mortgagee shall give the Owner fifteen days' prior
written notice of its intention to sell the Aircraft. Without limiting any of
the foregoing, it is understood and agreed that the Mortgagee may exercise any
right of sale of the Aircraft available to it, even though it shall not have
taken possession of the Aircraft and shall not have possession thereof at the
time of such sale.

                  (b) If an Event of Default shall have occurred and be
continuing, then and in every such case the Mortgagee may (and shall, upon
receipt of a written demand therefor from a Majority in Interest of Note
Holders), at any time, by delivery of written notice or notices to the Owner,
declare all the Equipment Notes to be due and payable, whereupon the unpaid
Original Amount of all Equipment Notes then outstanding, together with accrued
but unpaid interest thereon (without Make-Whole Amount) and other amounts due
thereunder or otherwise payable hereunder, shall immediately become due and
payable without presentment, demand, protest or notice, all of which are hereby
waived; provided that if an Event of Default referred to in clause (v), (vi) or
(vii) of Section 5.01 hereof shall have occurred, then and in every such case
the unpaid Original Amount then outstanding, together with accrued but

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unpaid interest (without Make-Whole Amount) and all other amounts due hereunder
and under the Equipment Notes shall immediately and without further act become
due and payable without presentment, demand, protest or notice, all of which are
hereby waived.

         This Section 5.02(b), however, is subject to the condition that, if at
any time after the Original Amount of the Equipment Notes shall have become so
due and payable, and before any judgment or decree for the payment of the money
so due, or any thereof, shall be entered, all overdue payments of interest upon
the Equipment Notes and all other amounts payable hereunder or under the
Equipment Notes (except the Original Amount of the Equipment Notes which by such
declaration shall have become payable) shall have been duly paid, and every
other Default and Event of Default with respect to any covenant or provision of
this Trust Indenture shall have been cured, then and in every such case a
Majority in Interest of Note Holders may (but shall not be obligated to), by
written instrument filed with the Mortgagee, rescind and annul the Mortgagee's
declaration (or such automatic acceleration) and its consequences; but no such
rescission or annulment shall extend to or affect any subsequent Default or
Event of Default or impair any right consequent thereon.

                  (c) The Note Holders shall be entitled, at any sale pursuant
to this Section 5.02, to credit against any purchase price bid at such sale by
such holder all or any part of the unpaid obligations owing to such Note Holder
and secured by the Lien of this Trust Indenture (only to the extent that such
purchase price would have been paid to such Note Holder pursuant to Article III
hereof if such purchase price were paid in cash and the foregoing provisions of
this subsection (c) were not given effect).

                  (d) In the event of any sale of the Collateral, or any part
thereof, pursuant to any judgment or decree of any court or otherwise in
connection with the enforcement of any of the terms of this Trust Indenture, the
unpaid Original Amount of all Equipment Notes then outstanding, together with
accrued interest thereon (without Make-Whole Amount), and other amounts due
thereunder, shall immediately become due and payable without presentment,
demand, protest or notice, all of which are hereby waived.

                  (e) Notwithstanding anything contained herein, so long as the
Pass Through Trustee under any Pass Through Trust Agreement (or its designee) is
a Note Holder, the Mortgagee will not be authorized or empowered to acquire
title to any Collateral or take any action with respect to any Collateral so
acquired by it if such acquisition or action would cause any Trust to fail to
qualify as a "grantor trust" for federal income tax purposes.

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SECTION 5.03.  RETURN OF AIRCRAFT, ETC.

                  (a) If an Event of Default shall have occurred and be
continuing and the Equipment Notes have been accelerated, at the request of the
Mortgagee, the Owner shall promptly execute and deliver to the Mortgagee such
instruments of title and other documents as the Mortgagee may deem necessary or
advisable to enable the Mortgagee or an agent or representative designated by
the Mortgagee, at such time or times and place or places as the Mortgagee may
specify, to obtain possession of all or any part of the Collateral to which the
Mortgagee shall at the time be entitled hereunder. If the Owner shall for any
reason fail to execute and deliver such instruments and documents after such
request by the Mortgagee, the Mortgagee may (i) obtain a judgment conferring on
the Mortgagee the right to immediate possession and requiring the Owner to
execute and deliver such instruments and documents to the Mortgagee, to the
entry of which judgment the Owner hereby specifically consents to the fullest
extent permitted by Law, and (ii) pursue all or part of such Collateral wherever
it may be found and may enter any of the premises of Owner wherever such
Collateral may be or be supposed to be and search for such Collateral and take
possession of and remove such Collateral. All expenses of obtaining such
judgment or of pursuing, searching for and taking such property shall, until
paid, be secured by the Lien of this Trust Indenture.

                  (b) Upon every such taking of possession, the Mortgagee may,
from time to time, at the expense of the Collateral, make all such expenditures
for maintenance, use, operation, storage, insurance, leasing, control,
management, disposition, modifications or alterations to and of the Collateral,
as it may deem proper. In each such case, the Mortgagee shall have the right to
maintain, use, operate, store, insure, lease, control, manage, dispose of,
modify or alter the Collateral and to exercise all rights and powers of the
Owner relating to the Collateral, as the Mortgagee shall deem best, including
the right to enter into any and all such agreements with respect to the
maintenance, use, operation, storage, insurance, leasing, control, management,
disposition, modification or alteration of the Collateral or any part thereof as
the Mortgagee may determine, and the Mortgagee shall be entitled to collect and
receive directly all rents, revenues and other proceeds of the Collateral and
every part thereof, without prejudice, however, to the right of the Mortgagee
under any provision of this Trust Indenture to collect and receive all cash held
by, or required to be deposited with, the Mortgagee hereunder. Such rents,
revenues and other proceeds shall be applied to pay the expenses of the
maintenance, use, operation, storage, insurance, leasing, control, management,
disposition, improvement, modification or alteration of the Collateral and of
conducting the business thereof, and to make all payments which the Mortgagee
may be required or may elect to make, if any, for taxes, assessments, insurance
or other proper charges upon the Collateral or any part thereof (including the

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employment of engineers and accountants to examine, inspect and make reports
upon the properties and books and records of the Owner), and all other payments
which the Mortgagee may be required or authorized to make under any provision of
this Trust Indenture, as well as just and reasonable compensation for the
services of the Mortgagee, and of all persons properly engaged and employed by
the Mortgagee with respect hereto.

SECTION 5.04.  REMEDIES CUMULATIVE

         Each and every right, power and remedy given to the Mortgagee
specifically or otherwise in this Trust Indenture shall be cumulative and shall
be in addition to every other right, power and remedy herein specifically given
or now or hereafter existing at Law, in equity or by statute, and each and every
right, power and remedy whether specifically herein given or otherwise existing
may be exercised from time to time and as often and in such order as may be
deemed expedient by the Mortgagee, and the exercise or the beginning of the
exercise of any power or remedy shall not be construed to be a waiver of the
right to exercise at the same time or thereafter any other right, power or
remedy. No delay or omission by the Mortgagee in the exercise of any right,
remedy or power or in the pursuance of any remedy shall impair any such right,
power or remedy or be construed to be a waiver of any default on the part of the
Owner or to be an acquiescence therein.

SECTION 5.05.  DISCONTINUANCE OF PROCEEDINGS

         In case the Mortgagee shall have instituted any proceeding to enforce
any right, power or remedy under this Trust Indenture by foreclosure, entry or
otherwise, and such proceedings shall have been discontinued or abandoned for
any reason or shall have been determined adversely to the Mortgagee, then and in
every such case the Owner and the Mortgagee shall, subject to any determination
in such proceedings, be restored to their former positions and rights hereunder
with respect to the Collateral, and all rights, remedies and powers of the Owner
or the Mortgagee shall continue as if no such proceedings had been instituted.

SECTION 5.06.  WAIVER OF PAST DEFAULTS

         Upon written instruction from a Majority in Interest of Note Holders,
the Mortgagee shall waive any past Default hereunder and its consequences and
upon any such waiver such Default shall cease to exist and any Event of Default
arising therefrom shall be deemed to have been cured for every purpose of this
Trust Indenture, but no such waiver shall extend to any subsequent or other
Default or impair any right consequent thereon; provided, that in the absence of
written instructions from all the Note Holders, the Mortgagee shall not waive
any Default (i) in the payment of the Original Amount, Make-Whole Amount, if
any, and interest and other amounts due under any Equipment

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Note then outstanding, or (ii) in respect of a covenant or provision hereof
which, under Article X hereof, cannot be modified or amended without the consent
of each Note Holder.

SECTION 5.07. APPOINTMENT OF RECEIVER

         The Mortgagee shall, as a matter of right, be entitled to the
appointment of a receiver (who may be the Mortgagee or any successor or nominee
thereof) for all or any part of the Collateral, whether such receivership be
incidental to a proposed sale of the Collateral or the taking of possession
thereof or otherwise, and the Owner hereby consents to the appointment of such a
receiver and will not oppose any such appointment. Any receiver appointed for
all or any part of the Collateral shall be entitled to exercise all the rights
and powers of the Mortgagee with respect to the Collateral.

SECTION 5.08. MORTGAGEE AUTHORIZED TO EXECUTE BILLS OF SALE, ETC.

         The Owner irrevocably appoints, while an Event of Default has occurred
and is continuing, the Mortgagee, effective during the continuance of any Event
of Default, the true and lawful attorney-in-fact of the Owner (which appointment
is coupled with an interest) in its name and stead and on its behalf, for the
purpose of effectuating any sale, assignment, transfer or delivery for the
enforcement of the Lien of this Trust Indenture, whether pursuant to foreclosure
or power of sale, assignments and other instruments as may be necessary or
appropriate, with full power of substitution, the Owner hereby ratifying and
confirming all that such attorney or any substitute shall do by virtue hereof in
accordance with applicable Law. Nevertheless, if so requested by the Mortgagee
or any purchaser, the Owner shall ratify and confirm any such sale, assignment,
transfer or delivery, by executing and delivering to the Mortgagee or such
purchaser all bills of sale, assignments, releases and other proper instruments
to effect such ratification and confirmation as may be designated in any such
request.

SECTION 5.09. RIGHTS OF NOTE HOLDERS TO RECEIVE PAYMENT

         Notwithstanding any other provision of this Trust Indenture, the right
of any Note Holder to receive payment of principal of, and premium, if any, and
interest on an Equipment Note on or after the respective due dates expressed in
such Equipment Note, or to bring suit for the enforcement of any such payment on
or after such respective dates in accordance with the terms hereof, shall not be
impaired or affected without the consent of such Note Holder.

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                                   ARTICLE VI

                             DUTIES OF THE MORTGAGEE

SECTION 6.01.  NOTICE OF EVENT OF DEFAULT

         If the Mortgagee shall have Actual Knowledge of an Event of Default or
of a Default arising from a failure to pay any installment of principal and
interest on any Equipment Note, the Mortgagee shall give prompt written notice
thereof to each Note Holder. Subject to the terms of Sections 5.06, 6.02 and
6.03 hereof, the Mortgagee shall take such action, or refrain from taking such
action, with respect to such Event of Default or Default (including with respect
to the exercise of any rights or remedies hereunder) as the Mortgagee shall be
instructed in writing by a Majority in Interest of Note Holders. Subject to the
provisions of Section 6.03, if the Mortgagee shall not have received
instructions as above provided within 20 days after mailing notice of such Event
of Default to the Note Holders, the Mortgagee may, subject to instructions
thereafter received pursuant to the preceding provisions of this Section 6.01,
take such action, or refrain from taking such action, but shall be under no duty
to take or refrain from taking any action, with respect to such Event of Default
or Default as it shall determine advisable in the best interests of the Note
Holders; provided, however, that the Mortgagee may not sell the Aircraft or any
Engine without the consent of a Majority in Interest of Note Holders. For all
purposes of this Trust Indenture, in the absence of Actual Knowledge on the part
of the Mortgagee, the Mortgagee shall not be deemed to have knowledge of a
Default or an Event of Default (except, the failure of Owner to pay any
installment of principal or interest within one Business Day after the same
shall become due, which failure shall constitute knowledge of a Default) unless
notified in writing by the Owner or one or more Note Holders.

SECTION 6.02.  ACTION UPON INSTRUCTIONS; CERTAIN RIGHTS AND LIMITATIONS

         Subject to the terms of Sections 5.02(a), 5.06, 6.01 and 6.03 hereof,
upon the written instructions at any time and from time to time of a Majority in
Interest of Note Holders, the Mortgagee shall, subject to the terms of this
Section 6.02, take such of the following actions as may be specified in such
instructions: (i) give such notice or direction or exercise such right, remedy
or power hereunder as shall be specified in such instructions and (ii) give such
notice or direction or exercise such right, remedy or power hereunder with
respect to any part of the Collateral as shall be specified in such
instructions; it being understood that without the written instructions of a
Majority in Interest of Note Holders, the Mortgagee shall not, except as
provided in Section 6.01, approve any such matter as satisfactory to the
Mortgagee.

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         The Mortgagee will execute and the Owner will file such continuation
statements with respect to financing statements relating to the security
interest created hereunder in the Collateral as may be specified from time to
time in written instructions of a Majority in Interest of Note Holders (which
instructions shall be accompanied by the form of such continuation statement so
to be filed). The Mortgagee will furnish to each Note Holder, promptly upon
receipt thereof, duplicates or copies of all reports, notices, requests,
demands, certificates and other instruments furnished to the Mortgagee
hereunder.

SECTION 6.03.  INDEMNIFICATION

         The Mortgagee shall not be required to take any action or refrain from
taking any action under Section 6.01 (other than the first sentence thereof),
6.02 or Article V hereof unless the Mortgagee shall have been indemnified to its
reasonable satisfaction against any liability, cost or expense (including
counsel fees) which may be incurred in connection therewith pursuant to a
written agreement with one or more Note Holders. The Mortgagee agrees that it
shall look solely to the Note Holders for the satisfaction of any indemnity
(except expenses for foreclosure of the type referred to in clause "First" of
Section 3.03 hereof) owed to it pursuant to this Section 6.03. The Mortgagee
shall not be under any obligation to take any action under this Trust Indenture
or any other Operative Agreement and nothing herein or therein shall require the
Mortgagee to expend or risk its own funds or otherwise incur the risk of any
financial liability in the performance of any of its rights or powers if it
shall have reasonable grounds for believing that repayment of such funds or
adequate indemnity against such risk or liability is not reasonably assured to
it (the written indemnity of any Note Holder who is a QIB (or a Note Holder who
has all of its obligations guaranteed by a QIB), signed by an authorized officer
thereof, in favor of, delivered to and in form reasonably satisfactory to the
Mortgagee shall be accepted as reasonable assurance of adequate indemnity). The
Mortgagee shall not be required to take any action under Section 6.01 (other
than the first sentence thereof) or 6.02 or Article V hereof, nor shall any
other provision of this Trust Indenture or any other Operative Agreement be
deemed to impose a duty on the Mortgagee to take any action, if the Mortgagee
shall have been advised by counsel that such action is contrary to the terms
hereof or is otherwise contrary to Law.

SECTION 6.04.  NO DUTIES EXCEPT AS SPECIFIED IN TRUST INDENTURE OR INSTRUCTIONS

         The Mortgagee shall not have any duty or obligation to use, operate,
store, lease, control, manage, sell, dispose of or otherwise deal with the
Aircraft or any other part of the Collateral, or to otherwise take or refrain

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from taking any action under, or in connection with, this Trust Indenture or any
part of the Collateral, except as expressly provided by the terms of this Trust
Indenture or as expressly provided in written instructions from Note Holders as
provided in this Trust Indenture; and no implied duties or obligations shall be
read into this Trust Indenture against the Mortgagee. The Mortgagee agrees that
it will in its individual capacity and at its own cost and expense (but without
any right of indemnity in respect of any such cost or expense under Section 8.01
hereof), promptly take such action as may be necessary duly to discharge all
liens and encumbrances on any part of the Collateral which result from claims
against it in its individual capacity not related to the ownership of the
Aircraft or the administration of the Collateral or any other transaction
pursuant to this Trust Indenture or any document included in the Collateral.

SECTION 6.05.  NO ACTION EXCEPT UNDER TRUST INDENTURE OR INSTRUCTIONS

         The Mortgagee will not use, operate, store, lease, control, manage,
sell, dispose of or otherwise deal with the Aircraft or any other part of the
Collateral except in accordance with the powers granted to, or the authority
conferred upon the Mortgagee pursuant to this Trust Indenture and in accordance
with the express terms hereof.

SECTION 6.06.  INVESTMENT OF AMOUNTS HELD BY MORTGAGEE

         Any amounts held by the Mortgagee pursuant to the proviso to the first
sentence of Section 3.01, pursuant to Section 3.02, or pursuant to any provision
of any other Operative Agreement providing for amounts to be held by the
Mortgagee which are not distributed pursuant to the other provisions of Article
III hereof shall be invested by the Mortgagee from time to time in Cash
Equivalents as directed by the Owner so long as the Mortgagee may acquire the
same using its best efforts. All Cash Equivalents held by the Mortgagee pursuant
to this Section 6.06 shall either be (a) registered in the name of, payable to
the order of, or specially endorsed to, the Mortgagee, or (b) held in an
Eligible Account. Unless otherwise expressly provided in this Trust Indenture,
any income realized as a result of any such investment, net of the Mortgagee's
reasonable fees and expenses in making such investment, shall be held and
applied by the Mortgagee in the same manner as the principal amount of such
investment is to be applied and any losses, net of earnings and such reasonable
fees and expenses, shall be charged against the principal amount invested. The
Mortgagee shall not be liable for any loss resulting from any investment
required to be made by it under this Trust Indenture other than by reason of its
willful misconduct or gross negligence or negligence in the handling of funds,
and any such investment may be sold (without regard to its

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maturity) by the Mortgagee without instructions whenever such sale is necessary
to make a distribution required by this Trust Indenture.

                                   ARTICLE VII

                                  THE MORTGAGEE

SECTION 7.01. ACCEPTANCE OF TRUSTS AND DUTIES

         The Mortgagee accepts the duties hereby created and applicable to it
and agrees to perform the same but only upon the terms of this Trust Indenture
and agrees to receive and disburse all monies constituting part of the Trust
Indenture Estate in accordance with the terms hereof. The Mortgagee, in its
individual capacity, shall not be answerable or accountable under any
circumstances, except (i) for its own willful misconduct or gross negligence
(other than for the handling of funds, for which the standard of accountability
shall be willful misconduct or negligence), (ii) as provided in the fourth
sentence of Section 2.04(a) hereof and the last sentence of Section 6.04 hereof,
and (iii) from the inaccuracy of any representation or warranty of the Mortgagee
(in its individual capacity) in the Participation Agreement or expressly made
hereunder.

SECTION 7.02. ABSENCE OF DUTIES

         Except in accordance with written instructions furnished pursuant to
Section 6.01 or 6.02 hereof, and except as provided in, and without limiting the
generality of, Sections 6.03, 6.04 and 7.07 hereof the Mortgagee shall have no
duty (i) to see to any registration of the Aircraft or any recording or filing
of this Trust Indenture or any other document, or to see to the maintenance of
any such registration, recording or filing, (ii) to see to any insurance on the
Aircraft or to effect or maintain any such insurance, whether or not Owner shall
be in default with respect thereto, (iii) to see to the payment or discharge of
any lien or encumbrance of any kind against any part of the Collateral, (iv) to
confirm, verify or inquire into the failure to receive any financial statements
from Owner, or (v) to inspect the Aircraft at any time or ascertain or inquire
as to the performance or observance of any of Owner's covenants herein or any
Permitted Lessee's covenants under any assigned Permitted Lease with respect to
the Aircraft.

SECTION 7.03.  NO REPRESENTATIONS OR WARRANTIES AS TO AIRCRAFT OR DOCUMENTS

         THE MORTGAGEE IN ITS INDIVIDUAL OR TRUST CAPACITY DOES NOT MAKE AND
SHALL NOT BE DEEMED TO HAVE MADE AND HEREBY EXPRESSLY DISCLAIMS ANY
REPRESENTATION OR WARRANTY,

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EXPRESS OR IMPLIED, AS TO THE TITLE, AIRWORTHINESS, VALUE, COMPLIANCE WITH
SPECIFICATIONS, CONDITION, DESIGN, QUALITY, DURABILITY, OPERATION,
MERCHANTABILITY OR FITNESS FOR USE FOR A PARTICULAR PURPOSE OF THE AIRCRAFT OR
ANY ENGINE, AS TO THE ABSENCE OF LATENT OR OTHER DEFECTS, WHETHER OR NOT
DISCOVERABLE, AS TO THE ABSENCE OF ANY INFRINGEMENT OF ANY PATENT, TRADEMARK OR
COPYRIGHT, AS TO THE ABSENCE OF OBLIGATIONS BASED ON STRICT LIABILITY IN TORT OR
ANY OTHER REPRESENTATION OR WARRANTY WHATSOEVER. The Mortgagee, in its
individual or trust capacities, does not make or shall not be deemed to have
made any representation or warranty as to the validity, legality or
enforceability of this Trust Indenture, the Participation Agreement, the
Equipment Notes, or the Purchase Agreement or the Guarantee, or as to the
correctness of any statement contained in any thereof, except for the
representations and warranties of the Owner made in its individual capacity and
the representations and warranties of the Mortgagee in its individual capacity,
in each case expressly made in this Trust Indenture or in the Participation
Agreement. The Note Holders make no representation or warranty hereunder
whatsoever.

SECTION 7.04. NO SEGREGATION OF MONIES; NO INTEREST

         Any monies paid to or retained by the Mortgagee pursuant to any
provision hereof and not then required to be distributed to the Note Holders, or
the Owner as provided in Article III hereof need not be segregated in any manner
except to the extent required by Law or Section 6.06 hereof, and may be
deposited under such general conditions as may be prescribed by Law, and the
Mortgagee shall not be liable for any interest thereon (except that the
Mortgagee shall invest all monies held as directed by Owner so long as no Event
of Default or Default has occurred and is continuing (or in the absence of such
direction, by the Majority In Interest of Note Holders) in Cash Equivalents
either registered in the name of the Mortgagee or credited to an Eligible
Account of the type described in clause (a) of the definition thereof; provided,
however, that any payments received, or applied hereunder, by the Mortgagee
shall be accounted for by the Mortgagee so that any portion thereof paid or
applied pursuant hereto shall be identifiable as to the source thereof.

SECTION 7.05. RELIANCE; AGREEMENTS; ADVICE OF COUNSEL

         The Mortgagee shall not incur any liability to anyone in acting upon
any signature, instrument, notice, resolution, request, consent, order,
certificate, report, opinion, bond or other document or paper believed by it to
be genuine and believed by it to be signed by the proper party or parties. The
Mortgagee may accept a copy of a resolution of the Board of Directors (or

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Executive Committee thereof) of the Owner, certified by the Secretary or an
Assistant Secretary thereof as duly adopted and in full force and effect, as
conclusive evidence that such resolution has been duly adopted and that the same
is in full force and effect. As to the aggregate unpaid Original Amount of
Equipment Notes outstanding as of any date, the Owner may for all purposes
hereof rely on a certificate signed by any Vice President or other authorized
corporate trust officer of the Mortgagee. As to any fact or matter relating to
the Owner the manner of which is not specifically described herein, the
Mortgagee may for all purposes hereof rely on a certificate, signed by a duly
authorized officer of the Owner, as to such fact or matter, and such certificate
shall constitute full protection to the Mortgagee for any action taken or
omitted to be taken by it in good faith in reliance thereon. In the
administration of the trusts hereunder, the Mortgagee may execute any of the
trusts or powers hereof and perform its powers and duties hereunder directly or
through agents or attorneys and may, at the expense of the Collateral, advise
with counsel, accountants and other skilled persons to be selected and retained
by it, and the Mortgagee shall not be liable for anything done, suffered or
omitted in good faith by it in accordance with the written advice or written
opinion of any such counsel, accountants or other skilled persons.

SECTION 7.06. COMPENSATION

         (a) The Mortgagee shall be entitled to reasonable compensation for all
services rendered hereunder and shall, on and subsequent to an Event of Default
hereunder, have a priority claim on the Collateral for the payment of such
compensation (and for expenses and disbursements, including the reasonable fees
and expenses of counsel), to the extent that such compensation shall not be paid
by Owner, and shall have the right, on and subsequent to an Event of Default
hereunder, to use or apply any monies held by it hereunder in the Collateral
toward such payments. The Mortgagee agrees that it shall have no right against
the Note Holders for any fee as compensation for its services as trustee under
this Trust Indenture.

         (b) The Owner agrees to indemnify the Mortgagee against any taxes
imposed upon it relating to, or arising out of the performance of its
responsibilities hereunder other than taxes, fees or charges based on, or
measured by any fees or compensation received by the Mortgagee for services
rendered in connection with the Transaction.

SECTION 7.07.  INSTRUCTIONS FROM NOTE HOLDERS

         In the administration of the trusts created hereunder, the Mortgagee
shall have the right to seek instructions from a Majority in Interest of Note
Holders should any provision of this Trust Indenture appear to conflict with any

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other provision herein or should the Mortgagee's duties or obligations hereunder
be unclear, and the Mortgagee shall incur no liability in refraining from acting
until it receives such instructions. The Mortgagee shall be fully protected for
acting in accordance with any instructions received under this Section 7.07.

                                  ARTICLE VIII

                                 INDEMNIFICATION

SECTION 8.01.  SCOPE OF INDEMNIFICATION

         The Mortgagee shall be indemnified by the Owner to the extent and in
the manner provided in Section 7 of the Participation Agreement.

                                   ARTICLE IX

                         SUCCESSOR AND SEPARATE TRUSTEES

SECTION 9.01. RESIGNATION OF MORTGAGEE; APPOINTMENT OF SUCCESSOR

         (a) The Mortgagee or any successor thereto may resign at any time
without cause by giving at least 30 days' prior written notice to the Owner and
each Note Holder, such resignation to be effective upon the acceptance of the
trusteeship by a successor Mortgagee. In addition, a Majority in Interest of
Note Holders may at any time (but only with the consent of Owner, which consent
shall not be unreasonably withheld, except that such consent shall not be
necessary if an Event of Default is continuing) remove the Mortgagee without
cause by an instrument in writing delivered to the Owner and the Mortgagee, and
the Mortgagee shall promptly notify each Note Holder thereof in writing, such
removal to be effective upon the acceptance of the trusteeship by a successor
Mortgagee. In the case of the resignation or removal of the Mortgagee, a
Majority in Interest of Note Holders may appoint a successor Mortgagee by an
instrument signed by such holders, which successor, so long as no Event of
Default shall have occurred and be continuing, shall be subject to Owner's
reasonable approval. If a successor Mortgagee shall not have been appointed
within 30 days after such notice of resignation or removal, the Mortgagee, the
Owner or any Note Holder may apply to any court of competent jurisdiction to
appoint a successor Mortgagee to act until such time, if any, as a successor
shall have been appointed as above provided. The successor Mortgagee so
appointed by such court shall immediately and without further act be superseded
by any successor Mortgagee appointed as above provided.

         (b) Any successor Mortgagee, however appointed, shall execute and
deliver to the Owner and the predecessor Mortgagee an instrument accepting such
appointment and assuming the obligations of the Mortgagee

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arising from and after the time of such appointment, and thereupon such
successor Mortgagee, without further act, shall become vested with all the
estates, properties, rights, powers and duties of the predecessor Mortgagee
hereunder in the trust hereunder applicable to it with like effect as if
originally named the Mortgagee herein; but nevertheless upon the written request
of such successor Mortgagee, such predecessor Mortgagee shall execute and
deliver an instrument transferring to such successor Mortgagee, upon the trusts
herein expressed applicable to it, all the estates, properties, rights and
powers of such predecessor Mortgagee, and such predecessor Mortgagee shall duly
assign, transfer, deliver and pay over to such successor Mortgagee all monies or
other property then held by such predecessor Mortgagee hereunder.

         (c) Any successor Mortgagee, however appointed, shall be a bank or
trust company having its principal place of business in the Borough of
Manhattan, City and State of New York; Chicago, Illinois; Hartford, Connecticut;
Wilmington, Delaware; or Salt Lake City, Utah; and having (or whose obligations
under the Operative Agreements are guaranteed by an affiliated entity having) a
combined capital and surplus of at least $100,000,000, if there be such an
institution willing, able and legally qualified to perform the duties of the
Mortgagee hereunder upon reasonable or customary terms.

         (d) Any corporation into which the Mortgagee may be merged or converted
or with which it may be consolidated, or any corporation resulting from any
merger, conversion or consolidation to which the Mortgagee shall be a party, or
any corporation to which substantially all the corporate trust business of the
Mortgagee may be transferred, shall, subject to the terms of paragraph (c) of
this Section 9.01, be a successor Mortgagee and the Mortgagee under this Trust
Indenture without further act.

SECTION 9.02.  APPOINTMENT OF ADDITIONAL AND SEPARATE TRUSTEES

         (a) Whenever (i) the Mortgagee shall deem it necessary or desirable in
order to conform to any Law of any jurisdiction in which all or any part of the
Collateral shall be situated or to make any claim or bring any suit with respect
to or in connection with the Collateral this Trust Indenture, any other
Indenture Agreement, the Equipment Notes or any of the transactions contemplated
by the Participation Agreement, (ii) the Mortgagee shall be advised by counsel
satisfactory to it that it is so necessary or prudent in the interests of the
Note Holders (and the Mortgagee shall so advise the Owner), or (iii) the
Mortgagee shall have been requested to do so by a Majority in Interest of Note
Holders, then in any such case, the Mortgagee and, upon the written request of
the Mortgagee, the Owner, shall execute and deliver an indenture supplemental
hereto and such other instruments as may from time to time be

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<PAGE>

necessary or advisable either (1) to constitute one or more bank or trust
companies or one or more persons approved by the Mortgagee, either to act
jointly with the Mortgagee as additional trustee or trustees of all or any part
of the Collateral, or to act as separate trustee or trustees of all or any part
of the Collateral, in each case with such rights, powers, duties and obligations
consistent with this Trust Indenture as may be provided in such supplemental
indenture or other instruments as the Mortgagee or a Majority in Interest of
Note Holders may deem necessary or advisable, or (2) to clarify, add to or
subtract from the rights, powers, duties and obligations theretofore granted any
such additional or separate trustee, subject in each case to the remaining
provisions of this Section 9.02. If the Owner shall not have taken any action
requested of it under this Section 9.02(a) that is permitted or required by its
terms within 15 days after the receipt of a written request from the Mortgagee
so to do, or if an Event of Default shall have occurred and be continuing, the
Mortgagee may act under the foregoing provisions of this Section 9.02(a) without
the concurrence of the Owner, and the Owner hereby irrevocably appoints (which
appointment is coupled with an interest) the Mortgagee, its agent and
attorney-in-fact to act for it under the foregoing provisions of this Section
9.02(a) in either of such contingencies. The Mortgagee may, in such capacity,
execute, deliver and perform any such supplemental indenture, or any such
instrument, as may be required for the appointment of any such additional or
separate trustee or for the clarification of, addition to or subtraction from
the rights, powers, duties or obligations theretofore granted to any such
additional or separate trustee. In case any additional or separate trustee
appointed under this Section 9.02(a) shall die, become incapable of acting,
resign or be moved, all the assets, property, rights, powers, trusts, duties and
obligations of such additional or separate trustee shall revert to the Mortgagee
until a successor additional or separate trustee is appointed as provided in
this Section 9.02(a).

         (b) No additional or separate trustee shall be entitled to exercise any
of the rights, powers, duties and obligations conferred upon the Mortgagee in
respect of the custody, investment and payment of monies and all monies received
by any such additional or separate trustee from or constituting part of the
Collateral or otherwise payable under any Operative Agreement to the Mortgagee
shall be promptly paid over by it to the Mortgagee. All other rights, powers,
duties and obligations conferred or imposed upon any additional or separate
trustee shall be exercised or performed by the Mortgagee and such additional or
separate trustee jointly except to the extent that applicable Law of any
jurisdiction in which any particular act is to be performed renders the
Mortgagee incompetent or unqualified to perform such act, in which event such
rights, powers, duties and obligations (including the holding of title to all or
part of the Collateral in any such jurisdiction) shall be exercised and
performed by such additional or separate trustee. No additional or separate
trustee shall

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<PAGE>

take any discretionary action except on the instructions of the Mortgagee or a
Majority in Interest of Note Holders. No trustee hereunder shall be personally
liable by reason of any act or omission of any other trustee hereunder, except
that the Mortgagee shall be liable for the consequences of its lack of
reasonable care in selecting, and the Mortgagee's own actions in acting with,
any additional or separate trustee. Each additional or separate trustee
appointed pursuant to this Section 9.02 shall be subject to, and shall have the
benefit of Articles V through IX and Article XI hereof insofar as they apply to
the Mortgagee. The powers of any additional or separate trustee appointed
pursuant to this Section 9.02 shall not in any case exceed those of the
Mortgagee hereunder.

         (c) If at any time the Mortgagee shall deem it no longer necessary or
in order to conform to any such Law or take any such action or shall be advised
by such counsel that it is no longer so necessary or desirable in the interest
of the Note Holders, or in the event that the Mortgagee shall have been
requested to do so in writing by a Majority in Interest of Note Holders, the
Mortgagee and, upon the written request of the Mortgagee, the Owner, shall
execute and deliver an indenture supplemental hereto and all other instruments
and agreements necessary or proper to remove any additional or separate trustee.
The Mortgagee may act on behalf of the Owner under this Section 9.02(c) when and
to the extent it could so act under Section 9.02(a) hereof.

                                    ARTICLE X

               SUPPLEMENTS AND AMENDMENTS TO THIS TRUST INDENTURE
                               AND OTHER DOCUMENTS

SECTION 10.01. INSTRUCTIONS OF MAJORITY; LIMITATIONS

         (a) The Mortgagee agrees with the Note Holders that it shall not enter
into any amendment, waiver or modification of, supplement or consent to this
Trust Indenture, or any other Operative Agreement to which it is a party, unless
such supplement, amendment, waiver, modification or consent is consented to in
writing by a Majority in Interest of Note Holders, but upon the written request
of a Majority in Interest of Note Holders, the Mortgagee shall from time to time
enter into any such supplement or amendment, or execute and deliver any such
waiver, modification or consent, as may be specified in such request and as may
be (in the case of any such amendment, supplement or modification), to the
extent such agreement is required, agreed to by the Owner, as may be
appropriate, the Airframe Manufacturer or the Engine Manufacturer; provided,
however, that, without the consent of each holder of an affected Equipment Note
then outstanding and of the Liquidity Provider, no such amendment, waiver or
modification of the terms of, or consent under, any

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thereof, shall (i) modify any of the provisions of this Section 10.01, or of
Article II or III or Section 5.01, 5.02(c), 5.02(d), 6.01 or 6.02 hereof, the
definitions of "Event of Default," "Default," "Majority in Interest of Note
Holders," "Make-Whole Amount" or "Note Holder," or the percentage of Note
Holders required to take or approve any action hereunder, (ii) reduce the
amount, or change the time of payment or method of calculation of any amount, of
Original Amount, Make-Whole Amount, if any, or interest with respect to any
Equipment Note, (iii) reduce, modify or amend any indemnities in favor of the
Mortgagee or the Note Holders (except that the Mortgagee may consent to any
waiver or reduction of an indemnity payable to it), or (iv) permit the creation
of any Lien on the Trust Indenture Estate or any part thereof other than
Permitted Liens or deprive any Note Holder of the benefit of the Lien of this
Trust Indenture on the Collateral, except as provided in connection with the
exercise of remedies under Article V hereof.

         (b) The Owner and the Mortgagee may enter into one or more agreements
supplemental hereto without the consent of any Note Holder for any of the
following purposes: (i) (a) to cure any defect or inconsistency herein or in the
Equipment Notes, or to make any change not inconsistent with the provisions
hereof (provided that such change does not adversely affect the interests of any
Note Holder in its capacity solely as Note Holder) or (b) to cure any ambiguity
or correct any mistake; (ii) to evidence the succession of another party as the
Owner in accordance with the terms hereof or to evidence the succession of a new
trustee hereunder pursuant hereto, the removal of the trustee hereunder or the
appointment of any co-trustee or co-trustees or any separate or additional
trustee or trustees; (iii) to convey, transfer, assign, mortgage or pledge any
property to or with the Mortgagee or to make any other provisions with respect
to matters or questions arising hereunder so long as such action shall not
adversely affect the interests of the Note Holders in its capacity solely as
Note Holder; (iv) to correct or amplify the description of any property at any
time subject to the Lien of this Trust Indenture or better to assure, convey and
confirm unto the Mortgagee any property subject or required to be subject to the
Lien of this Trust Indenture, the Airframe or Engines or any Replacement
Airframe or Replacement Engine; (v) to add to the covenants of the Owner for the
benefit of the Note Holders, or to surrender any rights or power herein
conferred upon the Owner; (vi) to add to the rights of the Note Holders; (vii)
to include on the Equipment Notes any legend as may be required by Law; and
(viii) subject to the provisions of Section 8.3 of the Participation Agreement
and Section 1 (j) of the Note Purchase Agreement, to give effect to a
sale-leaseback transaction.

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<PAGE>

SECTION 10.02.  MORTGAGEE PROTECTED

         If, in the opinion of the institution acting as Mortgagee hereunder,
any document required to be executed by it pursuant to the terms of Section
10.01 hereof affects any right, duty, immunity or indemnity with respect to such
institution under this Trust Indenture, such institution may in its discretion
decline to execute such document.

SECTION 10.03. DOCUMENTS MAILED TO NOTE HOLDERS

         Promptly after the execution by the Owner or the Mortgagee of any
document entered into pursuant to Section 10.01 hereof, the Mortgagee shall
mail, by first class mail, postage prepaid, a copy thereof to Owner (if not a
party thereto) and to each Note Holder at its address last set forth in the
Equipment Note Register, but the failure of the Mortgagee to mail such copies
shall not impair or affect the validity of such document.

SECTION 10.04. NO REQUEST NECESSARY FOR MORTGAGE SUPPLEMENT

         No written request or consent of the Note Holders pursuant to Section
10.01 hereof shall be required to enable the Mortgagee to execute and deliver a
Mortgage Supplement specifically required by the terms hereof.

SECTION 10.05. NOTICES TO LIQUIDITY PROVIDER.

         Any request made to any Note Holder for consent to any amendment or
supplement to this Trust Indenture or the Equipment Notes pursuant to this
Article X shall be promptly furnished by the Loan Trustee to each Liquidity
Provider.

                                   ARTICLE XI

                                  MISCELLANEOUS

SECTION 11.01. TERMINATION OF TRUST INDENTURE

         Upon (or at any time after) payment in full of the Original Amount of,
Make-Whole Amount, if any, and interest on and all other amounts due under all
Equipment Notes and provided that there shall then be no other Secured
Obligations due to the Mortgage Indemnitees, the Note Holders and the Mortgagee
hereunder or under the Participation Agreement or other Operative Agreement, the
Owner shall direct the Mortgagee to execute and deliver to or as directed in
writing by the Owner an appropriate instrument releasing the Aircraft and the
Engines and all other Collateral from the Lien of the Trust Indenture and the
Mortgagee shall execute and deliver such instrument as aforesaid; provided,
however, that this Trust Indenture and the

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<PAGE>

trusts created hereby shall earlier terminate and this Trust Indenture shall be
of no further force or effect upon any sale or other final disposition by the
Mortgagee of all property constituting part of the Collateral and the final
distribution by the Mortgagee of all monies or other property or proceeds
constituting part of the Collateral in accordance with the terms hereof. Except
as aforesaid otherwise provided, this Trust Indenture and the trusts created
hereby shall continue in full force and effect in accordance with the terms
hereof.

SECTION 11.02. NO LEGAL TITLE TO COLLATERAL IN NOTE HOLDERS

         No holder of an Equipment Note shall have legal title to any part of
the Collateral. No transfer, by operation of law or otherwise, of any Equipment
Note or other right, title and interest of any Note Holder in and to the
Collateral or hereunder shall operate to terminate this Trust Indenture or
entitle such holder or any successor or transferee of such holder to an
accounting or to the transfer to it of any legal title to any part of the
Collateral.

SECTION 11.03.  SALE OF AIRCRAFT BY MORTGAGEE IS BINDING

         Any sale or other conveyance of the Collateral, or any part thereof
(including any part thereof or interest therein), by the Mortgagee made pursuant
to the terms of this Trust Indenture shall bind the Note Holders and shall be
effective to transfer or convey all right, title and interest of the Mortgagee,
the Owner and such holders in and to such Collateral or part thereof. No
purchaser or other grantee shall be required to inquire as to the authorization,
necessity, expediency or regularity of such sale or conveyance or as to the
application of any sale or other proceeds with respect thereto by the Mortgagee.

SECTION 11.04. TRUST INDENTURE FOR BENEFIT OF OWNER, MORTGAGEE, NOTE HOLDERS AND
THE OTHER MORTGAGE INDEMNITEES

         Nothing in this Trust Indenture, whether express or implied, shall be
construed to give any person other than the Owner, the Mortgagee, the Note
Holders and the other Mortgage Indemnitees, any legal or equitable right, remedy
or claim under or in respect of this Trust Indenture, except that the persons
referred to in the last paragraph of Section 4.02(b) shall be third party
beneficiaries of such paragraph.

SECTION 11.05. NOTICES

         Unless otherwise expressly specified or permitted by the terms hereof,
all notices, requests, demands, authorizations, directions, consents,

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<PAGE>

waivers or documents provided or permitted by this Trust Indenture to be made,
given, furnished or filed shall be in writing, personally delivered or mailed by
certified mail, postage prepaid, or by facsimile or confirmed telex, and (i) if
to the Owner, addressed to it at Indianapolis International Airport, 7337 West
Washington Street, Indianapolis, Indiana 46231, Attention: Executive Vice
President and Chief Financial Officer, facsimile number (317) 240-7091, (ii) if
to Mortgagee, addressed to it at its office at Rodney Square North, 1100 North
Market Street, Wilmington, Delaware 19890, Attention: Corporate Trust
Administration, facsimile number (302) 651-8882, (iii) if to any Note Holder or
any Indenture Indemnitee, addressed to such party at such address as such party
shall have furnished by notice to the Owner and the Mortgagee, or, until an
address is so furnished, addressed to the address of such party (if any) set
forth on Schedule 1 to the Participation Agreement or in the Equipment Note
Register. Whenever any notice in writing is required to be given by the Owner or
the Mortgagee or any Note Holder to any of the other of them, such notice shall
be deemed given and such requirement satisfied when such notice is received, or
if made, given, furnished or filed by facsimile or telecommunication
transmission, when received unless received outside of business hours, in which
case on the next open of business on a Business Day. Any party hereto may change
the address to which notices to such party will be sent by giving notice of such
change to the other parties to this Trust Indenture.

SECTION 11.06. SEVERABILITY

         Any provision of this Trust Indenture which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof. Any such prohibition or unenforceability in any
particular jurisdiction shall not invalidate or render unenforceable such
provision in any other jurisdiction.

SECTION 11.07. NO ORAL MODIFICATION OR CONTINUING WAIVERS

         No term or provision of this Trust Indenture or the Equipment Notes may
be changed, waived, discharged or terminated orally, but only by an instrument
in writing signed by the Owner and the Mortgagee, in compliance with Section
10.01 hereof. Any waiver of the terms hereof or of any Equipment Note shall be
effective only in the specific instance and for the specific purpose given.

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2002 EETC - Mortgage (Owned) (10)

<PAGE>

SECTION 11.08. SUCCESSORS AND ASSIGNS

         All covenants and agreements contained herein shall be binding upon,
and inure to the benefit of, each of the parties hereto and the permitted
successors and assigns of each, all as herein provided. Any request, notice,
direction, consent, waiver or other instrument or action by any Note Holder
shall bind the successors and assigns of such holder. Each Note Holder by its
acceptance of an Equipment Note agrees to be bound by this Trust Indenture and
all provisions of the Operative Agreements applicable to a Note Holder.

SECTION 11.09. HEADINGS

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

SECTION 11.10. NORMAL COMMERCIAL RELATIONS

         Anything contained in this Trust Indenture to the contrary
notwithstanding. Owner and Mortgagee may conduct any banking or other financial
transactions, and have banking or other commercial relationships, with Owner,
fully to the same extent as if this Trust Indenture were not in effect,
including without limitation the making of loans or other extensions of credit
to Owner for any purpose whatsoever, whether related to any of the transactions
contemplated hereby or otherwise.

SECTION 11.11 GOVERNING LAW; COUNTERPART FORM

         THIS TRUST INDENTURE SHALL IN ALL RESPECTS BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK, INCLUDING ALL
MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE. THIS TRUST INDENTURE IS BEING
DELIVERED IN THE STATE OF NEW YORK. This Trust Indenture may be executed by the
parties hereto in separate counterparts (or upon separate signature pages bound
together into one or more 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.

SECTION 11.12. VOTING BY NOTE HOLDERS

         All votes of the Note Holders shall be governed by a vote of a Majority
in Interest of Note Holders, except as otherwise provided herein.

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<PAGE>

SECTION 11.13. BANKRUPTCY

         It is the intention of the parties that the Mortgagee shall be entitled
to the benefits of Section 1110 with respect to the right to take possession of
the Aircraft. Airframe, Engines and Parts as provided herein in the event of a
case under Chapter 11 of the Bankruptcy Code in which Owner is a debtor, and in
any instance where more than one construction is possible of the terms and
conditions hereof or any other pertinent Operative Agreement, each such party
agrees that a construction which would preserve such benefits shall control over
any construction which would not preserve such benefits.

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

                                          AMERICAN TRANS AIR, INC.

                                          By:___________________________________
                                          Name:
                                          Title:

                                          WILMINGTON TRUST COMPANY,
                                          as Mortgagee

                                          By:___________________________________
                                             Name:
                                             Title:

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2002 EETC - Mortgage (Owned) (10)

<PAGE>

                                     ANNEX A

                                   DEFINITIONS

                                   [Attached]

2002 EETC - Mortgage (Owned) (10)

<PAGE>

                                                           ANNEX B - INSURANCE
                                                            TRUST INDENTURE ____

                                     ANNEX B

                                    INSURANCE

         Capitalized terms used but not defined herein shall have the respective
meanings set forth or incorporated by reference in Annex A to the Trust
Indenture.

A. LIABILITY INSURANCE

         1. Except as provided in Section A.2 below, Owner will carry or cause
to be carried at all times, at no expense to Mortgagee, comprehensive airline
legal liability (including, but not limited to passenger liability, property
damage, and contractual liability insurance) with respect to the Aircraft, the
Airframe and the Engines, which is (i) in an amount not less than the greater of
(x) the amount of comprehensive airline legal liability insurance from time to
time applicable to aircraft owned or leased and operated by Owner of the same
type and operating on similar routes as the Aircraft and (y) the Minimum
Liability Insurance Amount per occurrence;(ii) of the type and covering the same
risks as from time to time applicable to aircraft operated by Owner of the same
type as the Aircraft; and (iii) maintained in effect with insurers of nationally
or internationally recognized responsibility (such insurers being referred to
herein as "Approved Insurers").

         2. During any period that the Aircraft is on the ground and not in
operation, Owner may carry or cause to be carried, in lieu of the insurance
required by Section A.1 above, insurance otherwise conforming with the
provisions of said Section A.1 except that (i) the amounts of coverage shall not
be required to exceed the amounts of public liability and property damage
insurance from time to time applicable to aircraft owned or operated by Owner of
the same type as the Aircraft which are on the ground and not in operation and
(ii) the scope of the risks covered and the type of insurance shall be the same
as from time to time shall be applicable to aircraft owned or operated by Owner
of the same type which are on the ground and not in operation.

B. HULL INSURANCE

         1. Except as provided in Section B.2 below, Owner will carry or cause
to be carried at all times, at no expense to Mortgagee, with Approved Insurers
"all-risk" ground and flight aircraft hull insurance covering each Aircraft
(including the Engines when they are installed on the Airframe or any other
airframe) which is of the type as from time to time applicable to aircraft owned

FORM OF OWNED AIRCRAFT INDENTURE
2002 EETC - Mortgage (Owned) (10)

<PAGE>

by Owner of the same type as the Aircraft for an amount denominated in United
States Dollars not less than the unpaid Original Amount together with six months
of interest accrued thereon (the "Debt Balance").

         Any policies of insurance carried in accordance with this Section B.1
covering the Aircraft and any policies taken out in substitution or replacement
for any such policies (i) shall name Mortgagee as exclusive loss payee for any
proceeds to be paid under such policies up to an amount equal to the Debt
Balance and (ii) shall provide that (A) in the event of a loss involving
proceeds in excess of the Threshold Amount, the proceeds in respect of such loss
up to an amount equal to the Debt Balance shall be payable to the Mortgagee,
except in the case of a loss with respect to an Engine installed on an airframe
other than the Airframe, in which case Owner (or any Permitted Lessee) shall
endeavor to arrange for any payment of insurance proceeds in respect of such
loss to be held for the account of the Mortgagee whether such payment is made to
Owner (or any Permitted Lessee) or any third party, it being understood and
agreed that in the case of any payment to Mortgagee otherwise than in respect of
an Event of Loss, the Mortgagee shall, upon receipt of evidence satisfactory to
it that the damage giving rise to such payment shall have been repaired or that
such payment shall then be required to pay for repairs then being made, pay the
amount of such payment to Owner or its order, and (B) the entire amount of any
loss involving proceeds of the Threshold Amount or less or the amount of any
proceeds of any loss in excess of the Debt Balance shall be paid to Owner or its
order unless an Event of Default shall have occurred and be continuing and the
insurers have been notified thereof by the Mortgagee. In the case of a loss with
respect to an engine (other than an Engine) installed on the Airframe, Mortgagee
shall hold any payment to it of any insurance proceeds in respect of such loss
for the account of Owner or any other third party that is entitled to receive
such proceeds.

         2. During any period that the Aircraft is on the ground and not in
operation, Owner may carry or cause to be carried, in lieu of the insurance
required by Section B.1 above, insurance otherwise conforming with the
provisions of said Section B.1 except that the scope of the risks and the type
of insurance shall be the same as from time to time applicable to aircraft owned
by Owner of the same type similarly on the ground and not in operation, provided
that Owner shall maintain insurance against risk of loss or damage to the
Aircraft in an amount equal to the Debt Balance during such period that the
Aircraft is on the ground and not in operation.

FORM OF OWNED AIRCRAFT INDENTURE                                               2
2002 EETC - Mortgage (Owned) (10)

<PAGE>

C. WAR-RISK, HIJACKING AND ALLIED PERILS INSURANCE

         If Owner (or any Permitted Lessee) shall at any time operate or propose
to operate the Aircraft, Airframe or any Engine (i) in any area of recognized
hostilities or (ii) on international routes and war-risk, hijacking or allied
perils insurance is maintained by Owner (or any Permitted Lessee) with respect
to other aircraft owned or operated by Owner (or any Permitted Lessee) on such
routes or in such areas, Owner shall maintain or cause to be maintained
war-risk, hijacking and allied perils insurance of substantially the same type
carried by similar United States commercial air carriers operating the same or
comparable models of aircraft on similar routes or in such areas and in no event
in an amount less than the unpaid Original Amount.

D. GENERAL PROVISIONS

         Any policies of insurance carried in accordance with Sections A, B and
C, including any policies taken out in substitution or replacement for such
policies:

                  (i) shall name Mortgagee, each Note Holder and each Liquidity
         Provider (collectively, the "Additional Insureds"), as its interests
         may appear;

                  (ii) shall apply worldwide and have no territorial
         restrictions or limitations (except only in the case of war, hijacking
         and allied perils insurance required under Section C, which shall apply
         to the fullest extent available in the international insurance market);

                 (iii) shall provide that, in respect of the interests of the
         Additional Insureds in such policies, the insurance shall not be
         invalidated or impaired by any act or omission (including
         misrepresentation and nondisclosure) by Owner (or any Permitted Lessee)
         or any other Person (including, without limitation, use for illegal
         purposes of the Aircraft or any Engine) and shall insure the Additional
         Insureds regardless of any breach or violation of any representation,
         warranty, declaration, term or condition contained in such policies by
         Owner (or any Permitted Lessee);

                  (iv) shall provide that, if the insurers cancel such insurance
         for any reason whatsoever, or if the same is allowed to lapse for
         nonpayment of premium, or if any material change is made in the
         insurance which adversely affects the interest of any of the Additional
         Insureds, such cancellation, lapse or change shall not be effective as
         to the Additional

FORM OF OWNED AIRCRAFT INDENTURE                                               3
2002 EETC - Mortgage (Owned) (10)

<PAGE>

         Insureds for 30 (seven days in the case of war risk, hijacking and
         allied perils insurance) days after receipt by the Additional Insureds
         of written notice by such insurers of such cancellation, lapse or
         change, provided that if any notice period specified above is not
         reasonably obtainable, such policies shall provide for as long a period
         of prior notice as shall then be reasonably obtainable;

                  (v) shall waive any rights of recourse, subrogation, setoff
         (including for unpaid premiums), recoupment, counterclaim or other
         deduction, whether by attachment or otherwise, against each Additional
         Insured;

                  (vi) shall be primary without right of contribution from any
         other insurance that may be available to any Additional Insured;

                  (vii) shall provide that all of the liability insurance
         provisions thereof, except the limits of liability, shall operate in
         all respects as if a separate policy had been issued covering each
         party insured thereunder;

                  (ix) shall provide that none of the Additional Insureds shall
         be liable for any insurance premium; and

                  (x) shall contain a 50/50% Clause per Lloyd's Aviation
         Underwriters' Association Standard Policy Form AVS 103;

         provided, that any such endorsements may be subject to any limitations
         on endorsements generally prevailing in the airline insurance
         marketplace at the time (e.g. AVN67B).

E. REPORTS AND CERTIFICATES; OTHER INFORMATION

         On or prior to the Closing Date and on or prior to each renewal date of
the insurance policies required hereunder, Owner will furnish or cause to be
furnished to Mortgagee insurance certificates describing in reasonable detail
the insurance maintained by Owner hereunder and a report, signed by Owner's or
Permitted Lessee's regular independent insurance broker (the "Insurance
Broker"), stating the opinion of such Insurance Broker that (a) all premiums in
connection with the insurance then due have been paid and (b) such insurance
complies with the terms of this Annex B. To the extent such agreement is
reasonably obtainable Owner will also cause the Insurance Broker to agree to
notify Mortgagee in writing of any default in the payment of any premium and of
any other act or omission on the part of Owner of which it has knowledge and
which might invalidate or render unenforceable, in whole or in part, any
insurance on the Aircraft or Engines or cause the cancellation or termination of
such insurance, and to notify Mortgagee in writing at least 30 days (seven days

FORM OF OWNED AIRCRAFT INDENTURE                                               4
2002 EETC - Mortgage (Owned) (10)

<PAGE>

in the case of war-risk and allied perils coverage or such shorter period as may
be available in the international insurance market, as the case may be) prior to
the cancellation, lapse or material adverse change of any insurance maintained
pursuant to this Annex B.

F. RIGHT TO PAY PREMIUMS

         Each Additional Insured shall have the rights but not the obligations
of an additional named insured. No Additional Insured shall have any obligation
to pay any premium, commission, assessment or call due on any such insurance
(including reinsurance). Notwithstanding the foregoing, in the event of
cancellation of any required insurance due to the nonpayment of premium,
Mortgagee shall have the option, in its sole discretion, to pay any such premium
in respect of the Aircraft that is due in respect of the coverage pursuant to
this Trust Indenture and to maintain such coverage, as Mortgagee may require,
until the scheduled expiry date of such insurance and, in such event, Owner
shall, upon demand, reimburse Mortgagee for amounts so paid by them.

G. DEDUCTIBLES; SELF-INSURANCE

         Owner may self-insure by way of deductible, premium adjustment or
franchise provisions or otherwise (including, with respect to insurance
maintained pursuant to Section B, insuring for a maximum amount which is less
than the Debt Balance) in the insurance covering the risks required to be
insured against pursuant to Section 4.06 and this Annex B under a program
applicable to all aircraft in Owner's fleet, but in no case shall the aggregate
amount of self-insurance in regard to Section 11 and this Annex B exceed during
any policy year, with respect to all of the aircraft in Owner's fleet
(including, without limitation, the Aircraft), the lesser of (a) 50% of the
largest replacement value of any single aircraft in Owner's fleet and (b) 1-1/2%
of the average aggregate insurable value (during the preceding policy year) of
all aircraft (including, without limitation, the Aircraft) on which Owner
carries insurance, unless an insurance broker of national standing shall certify
that the standard among all other major U.S. airlines is a higher level of
self-insurance, in which case Owner may self-insure to such higher level. In
addition, Owner (and any Permitted Lessee) may self-insure to the extent of any
applicable deductible per aircraft that does not exceed industry standards for
major U.S. airlines.

FORM OF OWNED AIRCRAFT INDENTURE                                               5
2002 EETC - Mortgage (Owned) (10)

<PAGE>

                                                                       EXHIBIT A
                                                                              TO
                                                    TRUST INDENTURE AND MORTGAGE

                TRUST INDENTURE AND MORTGAGE [N___TZ] SUPPLEMENT

         This TRUST INDENTURE AND MORTGAGE [N___TZ] SUPPLEMENT NO. 1, dated
______________ ___, ____ (herein called this "Mortgage Supplement") of AMERICAN
TRANSAIR, INC., as Owner (the "Owner").

                              W I T N E S S E T H:

         WHEREAS, the Trust Indenture and Mortgage, dated as of ______________
__, ____ (as amended and supplemented to the date hereof, the "Trust Indenture")
between the Owner and Wilmington Trust Company, as Mortgagee (the "Mortgagee"),
provides for the execution and delivery of a supplement thereto substantially in
the form hereof, which shall particularly describe the Aircraft, and shall
specifically mortgage such Aircraft to the Mortgagee; and

         WHEREAS, each of the Trust Agreement and Trust Indenture relates to the
Airframe and Engines described below, and a counterpart of the Trust Indenture
is attached hereto and made a part hereof and this Mortgage Supplement, together
with such counterpart of the Trust Indenture, is being filed for recordation on
the date hereof with the FAA as one document;

         NOW, THEREFORE, this Mortgage Supplement WITNESSETH that the Owner
hereby confirms that the Lien of the Trust Indenture on the Collateral covers
all of Owner's right, title and interest in and to the following described
property:

                                    AIRFRAME

One airframe identified as follows:
                                     FAA Registration           Manufacturer's
Manufacturer               Model         Number                  Serial Number
------------               -----         ------                  -------------

The Boeing Company

together with all of the Owner's right, title and interest in and to all Parts
of whatever nature, whether now owned or hereinafter acquired and which are from
time to time incorporated or installed in or attached to said airframe.

2002 EETC - Mortgage (Owned) (10)

<PAGE>

                                AIRCRAFT ENGINES

                  Two aircraft engines, each such engine having 750 or more
rated take-off horsepower or the equivalent thereof, identified as follows:

Manufacturer             Manufacturer's Model                      Serial Number
------------             --------------------                      -------------
CFM International             CFM56-7B27
CFM International             CFM56-7B27

together with all of Owner's right, title and interest in and to all Parts of
whatever nature, whether now owned or hereafter acquired and which are from time
to time incorporated or installed in or attached to either of such engines.

         Together with all of Owner's right, title and interest in and to (a)
all Parts of whatever nature, which from time to time are included within the
definition of "Airframe" or "Engine", whether now owned or hereafter acquired,
including all substitutions, renewals and replacements of and additions,
improvements, accessions and accumulations to the Airframe and Engines (other
than additions, improvements, accessions and accumulations which constitute
appliances, parts, instruments, appurtenances, accessories, furnishings or other
equipment excluded from the definition of Parts) and (b) all Aircraft Documents.

         TO HAVE AND TO HOLD all and singular the aforesaid property unto the
Mortgagee, its successors and assigns, in trust for the equal and proportionate
benefit and security of the Note Holders and the Mortgage Indemnitees, except as
provided in Section 2.14 and Article III of the Trust Indenture without any
preference, distinction or priority of any one Equipment Note over any other by
reason of priority of time of issue, sale, negotiation, date of maturity thereof
or otherwise for any reason whatsoever, and for the uses and purposes and
subject to the terms and provisions set forth in the Trust Indenture.

         This Mortgage Supplement shall be construed as supplemental to the
Trust Indenture and shall form a part thereof. The Trust Indenture is each
hereby incorporated by reference herein and is hereby ratified, approved and
confirmed.

         AND, FURTHER, the Owner hereby acknowledges that the Aircraft referred
to in this Mortgage Supplement has been delivered to the Owner and is included
in the property of the Owner subject to the pledge and mortgage thereof under
the Trust Indenture.

                                      * * *

2002 EETC - Mortgage (Owned) (10)

<PAGE>

         IN WITNESS WHEREOF, the Owner has caused this Mortgage Supplement to be
duly executed by one of its officers, thereunto duly authorized, on the day and
year first above written.

                                      AMERICAN TRANS AIR, INC.

                                      By:___________________________________
                                         Name:
                                         Title:

2002 EETC - Mortgage (Owned) (10)

<PAGE>

                                   SCHEDULE I

                            ORIGINAL AMOUNT                      INTEREST RATE
                            ---------------                      -------------
Series A:

Series B:

2002 EETC - Mortgage (Owned) (10)

<PAGE>

                          Trust Indenture and Mortgage
                           Equipment Note Amortization

                                                  Percentage of Original
         Payment Date                                Amount to be Paid
------------------------------            --------------------------------------

2002 EETC - Mortgage (Owned) (10)<PAGE>

                                                                  EXECUTION COPY

                                  AMTRAN, INC.

                            AMERICAN TRANS AIR, INC.

                                       and

                            WILMINGTON TRUST COMPANY

                                   as Trustee

                          PASS THROUGH TRUST AGREEMENT

                           Dated as of March 28, 2002

                  American Trans Air 2002-1A Pass Through Trust
       8.328% Initial American Trans Air 2002-1A Pass Through Certificates
      8.328% Exchange American Trans Air 2002-1A Pass Through Certificates

<PAGE>

Reconciliation and tie between American Trans Air Pass Through Trust Agreement,
Series 2002-1A dated as of March 28, 2002, and the Trust Indenture Act of 1939.
This reconciliation does not constitute part of the Pass Through Trust
Agreement.

      Trust Indenture Act                                   Pass Through Trust
        of 1939 Section                                     Agreement Section
        ---------------                                     -----------------
          310(a)(1)                                          7.08

             (a)(2)                                          7.08

          312(a)                                             3.05; 8.01; 8.02

          313(a)                                             7.06; 8.03

          314(a)                                             8.04(a),(c) & (d)

             (a)(4)                                          8.04(e)

             (c)(1)                                          1.02

             (c)(2)                                          1.02

             (d)(1)                                          7.13; 11.01

             (d)(2)                                          7.13; 11.01

             (d)(3)                                          2.01

             (e)                                             1.02

          315(b)                                             7.02

          316(a)(last sentence)                              1.04(c)

             (a)(1)(A)                                       6.04

             (a)(1)(B)                                       6.05

             (b)                                             6.06

             (c)                                             1.04(e)

          317(a)(1)                                          6.03

             (b)                                             7.13

          318(a)                                             12.05

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                                Page
                                                                                                                ----
<S>                                                                                                              <C>
ARTICLE I DEFINITIONS.............................................................................................3
         Section 1.01.       Definitions..........................................................................3
         Section 1.02.       Compliance Certificates and Opinions................................................13
         Section 1.03.       Form of Documents Delivered to Trustee..............................................14
         Section 1.04.       Directions of Certificateholders....................................................14

ARTICLE II ORIGINAL ISSUANCE OF CERTIFICATES; ACQUISITION OF EQUIPMENT NOTES.....................................16
         Section 2.01.       Issuance of Certificates; Acquisition of Equipment Notes............................16
         Section 2.02.       Withdrawal of Deposits..............................................................17
         Section 2.03.       Acceptance by Trustee...............................................................18
         Section 2.04.       Limitation of Powers................................................................18

ARTICLE III THE CERTIFICATES.....................................................................................18
         Section 3.01.       Title, Form, Denomination and Execution of Certificates.............................18
         Section 3.02.       Restrictive Legends.................................................................20
         Section 3.03.       Authentication of Certificates......................................................21
         Section 3.04.       Transfer and Exchange...............................................................22
         Section 3.05.       Book-Entry Provisions for U.S. Global Certificate and Offshore Global Certificates..22
         Section 3.06.       Special Transfer Provisions.........................................................24
         Section 3.07.       Mutilated, Destroyed, Lost or Stolen Certificates...................................26
         Section 3.08.       Persons Deemed Owners...............................................................26
         Section 3.09.       Cancellation........................................................................27
         Section 3.10.       Limitation of Liability for Payments................................................27
         Section 3.11.       Temporary Certificates..............................................................27

ARTICLE IV DISTRIBUTIONS; STATEMENTS TO CERTIFICATEHOLDERS.......................................................27
         Section 4.01.       Certificate Account and Special Payments Account....................................27
         Section 4.02.       Distributions from Certificate Account and Special Payments Account.................28
         Section 4.03.       Statements to Certificateholders....................................................29
         Section 4.04.       Investment of Special Payment Moneys................................................31

ARTICLE V THE COMPANY............................................................................................31
         Section 5.01.       Maintenance of Corporate Existence..................................................31
         Section 5.02.       Consolidation, Merger, Etc..........................................................31
         Section 5.03.       Rule 144A(d)(4) Information.........................................................32
</TABLE>

                                       i
<PAGE>

<TABLE>
<CAPTION>
<S>                                                                                                              <C>
ARTICLE VI DEFAULT...............................................................................................33
         Section 6.01.       Events of Default...................................................................33
         Section 6.02.       Incidents of Sale of Equipment Notes................................................35
         Section 6.03.       Judicial Proceedings Instituted by Trustee; Trustee May Bring Suit..................35
         Section 6.04.       Control by Certificateholders.......................................................36
         Section 6.05.       Waiver of Past Defaults.............................................................36
         Section 6.06.       Right of Certificateholders to Receive Payments Not to Be Impaired..................37
         Section 6.07.       Certificateholders May Not Bring Suit Except Under Certain Conditions...............37
         Section 6.08.       Remedies Cumulative.................................................................37
         Section 6.09.       Undertaking for Costs...............................................................37

ARTICLE VII THE TRUSTEE..........................................................................................38
         Section 7.01.       Notice of Defaults..................................................................38
         Section 7.02.       Certain Rights of Trustee...........................................................38
         Section 7.03.       Not Responsible for Recitals or Issuance of Certificates............................39
         Section 7.04.       May Hold Certificates...............................................................40
         Section 7.05.       Money Held in Trust.................................................................40
         Section 7.06.       Compensation and Reimbursement......................................................40
         Section 7.07.       Corporate Trustee Required, Eligibility.............................................41
         Section 7.08.       Resignation and Removal: Appointment of Successor...................................42
         Section 7.09.       Acceptance of Appointment by Successor..............................................43
         Section 7.10.       Merger, Conversion, Consolidation or Succession to Business.........................44
         Section 7.11.       Maintenance of Agencies.............................................................44
         Section 7.12.       Money for Certificate Payments to Be Held in Trust..................................45
         Section 7.13.       Registration of Equipment Notes in Name of Subordination Agent......................45
         Section 7.14.       Representations and Warranties of Trustee...........................................45
         Section 7.15.       Withholding Taxes, Information Reporting............................................46
         Section 7.16.       Trustee's Liens.....................................................................48
         Section 7.17.       Preferential Collection of Claims...................................................48

ARTICLE VIII CERTIFICATEHOLDERS'LISTS AND REPORTS BY TRUSTEE.....................................................48
         Section 8.01.       The Company to Furnish Trustee with Names and Addresses of Certificateholders.......48
         Section 8.02.       Preservation of Information; Communications to Certificateholders...................48
         Section 8.03.       Reports by Trustee..................................................................48
         Section 8.04.       Reports by the Guarantor and Company................................................48

ARTICLE IX SUPPLEMENTAL AGREEMENTS...............................................................................49
</TABLE>

                                       ii
<PAGE>

<TABLE>
<CAPTION>
<S>                                                                                                              <C>
         Section 9.01.       Supplemental Agreements Without Consent of Certificateholders.......................49
         Section 9.02.       Supplemental Agreements with Consent of Certificateholders..........................51
         Section 9.03.       Documents Affecting Immunity or Indemnity...........................................52
         Section 9.04.       Execution of Supplemental Agreements................................................52
         Section 9.05.       Effect of Supplemental Agreements...................................................52
         Section 9.06.       Conformity with Trust Indenture Act.................................................52
         Section 9.07.       Reference in Certificates to Supplemental Agreements................................52

ARTICLE X AMENDMENTS TO INDENTURES AND NOTE DOCUMENTS............................................................53
         Section 10.01.      Amendments and Supplements to Indentures and Other Note Documents...................53

ARTICLE XI TERMINATION OF TRUST..................................................................................54
         Section 11.01.      Termination of the Trust............................................................54

ARTICLE XII MISCELLANEOUS PROVISIONS.............................................................................55
         Section 12.01.      Limitation on Rights of Certificateholders..........................................55
         Section 12.02.      Liabilities of Certificateholders...................................................55
         Section 12.03.      Certificates Nonassessable and Fully Paid...........................................55
         Section 12.04.      Notices ............................................................................55
         Section 12.05.      Governing Law.......................................................................56
         Section 12.06.      Severability of Provisions..........................................................56
         Section 12.07.      Effect of Headings and Table of Contents............................................56
         Section 12.08.      Successors and Assigns..............................................................57
         Section 12.09.      Benefits of Agreement...............................................................57
         Section 12.10.      Legal Holidays......................................................................57
         Section 12.11.      Counterparts........................................................................57
         Section 12.12.      Communication by Certificateholders with Other Certificateholders...................57
         Section 12.13.      Intention of Parties................................................................57
</TABLE>

Exhibit A  -   Form of Certificate
Exhibit B  -   Form of Certificate to be Delivered in Connection with Transfers
               Pursuant to Regulation S
Exhibit C  -   [Reserved]
Exhibit D  -   [Reserved]
Exhibit E  -   Form of Certificate to be Delivered in Connection with Transfers
               to QIBs

                                      iii
<PAGE>

         This PASS THROUGH TRUST AGREEMENT, dated as of March 28, 2002, among
AMTRAN, INC., an Indiana corporation (the "Guarantor"), AMERICAN TRANS AIR,
INC., an Indiana corporation (the "Company"), and WILMINGTON TRUST COMPANY, a
Delaware banking corporation, as Trustee, is made with respect to the formation
of the American Trans Air 2002-1A Pass Through Trust, and the issuance of 8.328
% American Trans Air 2002-1A Pass Through Certificates representing fractional
undivided interests in the Trust.

                                   WITNESSETH:

         WHEREAS, the Company has obtained (either directly or through General
Electric Credit Corporation) commitments from The Boeing Company for the
delivery of, or has taken delivery of, certain Aircraft;

         WHEREAS, the Company intends to finance the acquisition of each such
Aircraft either (i) through separate leveraged lease transactions in which the
Company will lease such aircraft (collectively, the "Leased Aircraft") or (ii)
through separate secured loan transactions in which the Company will own such
Aircraft (collectively, the "Owned Aircraft");

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

         WHEREAS, in the case of each Owned Aircraft, the Company, will issue
pursuant to an Indenture, on a recourse basis, two series of Equipment Notes to
finance a portion of the purchase price of each such Owned Aircraft;

         WHEREAS, the Company has entered into a Certificate Purchase Agreement
dated as of March 26, 2002 (as the same may be amended, supplemented or
otherwise modified from time to time in accordance with its terms, the
"Certificate Purchase Agreement") with the Guarantor and Nyala Funding LLC (the
"Purchaser") which provides for the issuance and sale of the Certificates to the
Purchaser;

         WHEREAS, the Company, the Guarantor, the Trustee, the Subordination
Agent, the Escrow Agent, the Liquidity Provider and the Paying Agent and certain
other parties named therein concurrently herewith are entering into a Delayed
Funding Implementation Agreement, dated as of the date hereof (the "Delayed
Funding Implementation Agreement") pursuant to which the parties thereto agree
to supplement and modify the Operative Agreements, as defined therein;

         WHEREAS, the Trustee, upon execution and delivery of this Agreement,
hereby declares the creation of this Trust (the "2002-1A Trust") for the benefit
of the Certificateholders, and the Certificateholders, as the grantors of the
2002-1A Trust, by their respective acceptances of the Certificates, join in the
creation of this 2002-1A Trust with the Trustee;

         WHEREAS, all Certificates to be issued by the Trust will evidence
fractional undivided interests in the Trust and will convey no rights, benefits
or interests in respect of any

<PAGE>

property other than the Trust Property;

         WHEREAS, the Escrow Agent, the Purchaser, the Trustee and the Escrow
Paying Agent have contemporaneously herewith entered into an Escrow Agreement
pursuant to which the Purchaser has delivered to the Escrow Agent the purchase
price for the Certificates and has irrevocably instructed the Escrow Agent to
withdraw and pay funds from such amount upon request and proper certification by
the Trustee to purchase Equipment Notes at the times at which the Aircraft are
to be financed as contemplated by the Note Purchase Agreement from time to time
prior to the Delivery Period Termination Date (other than the financing of an
Aircraft on the Issuance Date, if applicable);

         WHEREAS, the Escrow Agent on behalf of the Certificateholders has
contemporaneously herewith entered into the Deposit Agreement (Class A) and the
Delayed Deposit Agreement (Class A) with the Depositary;

         WHEREAS, pursuant to the terms and conditions of this Agreement and the
Note Purchase Agreement, the Trustee, on behalf of the Trust, shall (subject to
certain conditions) purchase Equipment Notes having the same interest rate as,
and final maturity date not later than the final Regular Distribution Date of,
the Certificates issued hereunder and shall hold such Equipment Notes in trust
for the benefit of the Certificateholders;

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

         WHEREAS, to facilitate the sale of Equipment Notes to, and the purchase
of Equipment Notes by, the Trustee on behalf of the 2002-1A Trust, (i) the
Company has duly authorized the execution and delivery of this Agreement as the
"issuer", as such term is defined in and solely for purposes of the Securities
Act of 1933, as amended, of the Certificates to be issued pursuant hereto, and
as the "obligor", as such term is defined in and solely for purposes of the
Trust Indenture Act or 1939, as amended, and (ii) the Guarantor has duly
authorized the execution and delivery of this Agreement with respect to all such
Certificates and the Company and the Guarantor are undertaking to perform
certain administrative and ministerial duties hereunder and are also undertaking
to pay the fees and expenses of the Trustee;

         WHEREAS, the Trustee, the Other Trustee, the Investors (as defined in
the Registration Rights Agreement), the Guarantor and the Company, have
contemporaneously herewith entered into a Registration Rights Agreement that
provides for, among other things, the possible issuance of Exchange
Certificates; and

         WHEREAS, upon issuance of the Exchange Certificates, if any, or the
effectiveness of the Shelf Registration Statement, this Agreement, as amended or
supplemented from time to time, will be subject to the provisions of the Trust
Indenture Act of 1939, and shall, to the extent applicable, be governed by such
provisions.

                                       2
<PAGE>

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

                                    ARTICLE I

                                   DEFINITIONS

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

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

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

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

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

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

         Accountants: Has the meaning specified in Section 7.15(b).

         Affiliate: With respect to any specified Person, means any other Person
directly or indirectly controlling or controlled by or under direct or indirect
common control with such Person. For the purposes of this definition, "control",
when used with respect to any specified Person, means the power to direct the
management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise, and the terms
"controlling" and "controlled" have meanings correlative to the foregoing.

         Agent Members: Has the meaning specified in Section 3.05(a).

         Aircraft: Means each of the Aircraft or Substitute Aircraft in respect
of which a Participation Agreement is entered into in accordance with the Note
Purchase Agreement.

         Applicable Delivery Date: Has the meaning specified in Section 2.01(b).

         Applicable Participation Agreement: Has the meaning specified in
Section 2.01(b).

                                       3
<PAGE>

         Authorized Agent: Means any Paying Agent or Registrar for the
Certificates.

         Avoidable Tax: Has the meaning specified in Section 7.08(e) hereof.

         Book-Entry Certificates: With respect to the Certificates, means a
beneficial interest in the Certificates, ownership and transfers of which shall
be made through book entries as described in Section 3.04.

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

         Certificate: Means any one of the Initial Certificates or Exchange
Certificates and any Initial Certificates or Exchange Certificates issued in
exchange therefor or replacement thereof pursuant to this Agreement and
authenticated hereunder substantially in the form of Exhibit A hereto.

         Certificate Account: Means the account or accounts created and
maintained pursuant to Section 4.01(a).

         Certificateholder or Holder: Means the Person in whose name a
Certificate is registered in the Register.

         Certificate Purchase Agreement: Has the meaning specified in the fifth
recital to this Agreement.

         Class C Certificateholder: Means, at any time, any holder of one or
more pass through certificates issued by the American Trans Air Pass Through
Trust, Series 2002-1C, if and when established.

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

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

         Code: Means the Internal Revenue Code of 1986, as amended.

         Company: Means American Trans Air, Inc., an Indiana corporation, or its
successor in interest pursuant to Section 5.02.

         Controlling Party: Has the meaning specified in the Intercreditor
Agreement.

                                       4
<PAGE>

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

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

         Delayed Funding Implementation Agreement: Has the meaning specified in
the sixth recital to this Agreement.

         Delivery Date: Has the meaning specified in Annex A to the Note
Purchase Agreement.

         Delivery Notice: Has the meaning specified in Section 1(b) of the Note
Purchase Agreement.

         Delivery Period Termination Date: Has the meaning specified in Annex A
to the Note Purchase Agreement.

         Deposit Agreement: Means (i) prior to the Delayed Funding Date (as
defined in the Delayed Funding Implementation Agreement) the Deposit Agreement
(Class A) and (ii) on and after the Delayed Funding Date, such Deposit Agreement
(to the extent of any payment to be made by the Depositary thereunder on or
after the Delayed Funding Date) and the Delayed Deposit Agreement (Class A),
each dated as of March 28, 2002 relating to the Certificates, between the
Depositary and the Escrow Agent, as the same may be amended, supplemented or
otherwise modified from time to time in accordance with its terms and shall
include any Replacement Deposit Agreement (as defined in the Note Purchase
Agreement).

         Depositary: Means IntesaBci S.p.A., acting through its New York Branch.

         Deposits: Has the meaning specified in the Deposit Agreement.

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

         Distribution Date: Means each Regular Distribution Date and each
Special Distribution Date.

         DTC: Means The Depository Trust Company, its nominees and their
respective successors.

         Equipment Note: Means the Series A Equipment Notes issued under (and as
defined in) the Indentures.

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

                                       5
<PAGE>

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

         Escrow Agreement: Means the Escrow and Paying Agent Agreement (Class A)
dated as of March 28, 2002 relating to the Certificates, among the Escrow Agent,
the Escrow Paying Agent, the Purchaser and the Trustee, as the same may be
amended, supplemented or otherwise modified from time to time in accordance with
its terms.

         Escrow Paying Agent: Means the Person acting as paying agent under the
Escrow Agreement.

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

         Euroclear: Means the Euroclear System.

         Event of Default: Means the occurrence of an Indenture Default under
any Indenture.

         Exchange Act: Has the meaning specified in Section 5.03.

         Exchange Certificates: Means the pass through certificates
substantially in the form of Exhibit A hereto issued in exchange for the Initial
Certificates or upon sale of the Initial Certificates under the Shelf
Registration Statement, in each case pursuant to the Registration Rights
Agreement and authenticated hereunder.

         Exchange Offer: Means the exchange offer which may be made pursuant to
the Registration Rights Agreement to exchange Initial Certificates for Exchange
Certificates.

         Exchange Offer Registration Statement: Means the registration statement
that, pursuant to the Registration Rights Agreement, is filed by the Company
with the SEC with respect to the exchange of Initial Certificates for Exchange
Certificates.

         FAA: Has the meaning specified in Section 5.02(a).

         Final Withdrawal: Has the meaning specified in the Escrow Agreement.

         Final Withdrawal Date: Has the meaning specified in the Escrow
Agreement.

         Final Withdrawal Notice: Has the meaning specified in Section 2.02.

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

         Funding Date: Has the meaning specified in Annex A to the Note Purchase
Agreement.

                                       6
<PAGE>

         Global Certificates: Has the meaning assigned to such term in Section
3.01(d).

         Global Exchange Certificate: Has the meaning specified in Section
3.01(h).

         Guarantor: Means Amtran, Inc., an Indiana corporation, or its successor
in interest.

         Indenture: Means each separate trust indenture and mortgage agreement
relating to the Aircraft, each entered into pursuant to the related
Participation Agreement, in each case as the same may be amended, supplemented
or otherwise modified from time to time in accordance with its terms.

         Indenture Default: With respect to an Indenture, a Mortgage Event of
Default under (and as defined in) any Indenture relating to a Leased Aircraft or
an Event of Default under (and as defined in ) an Indenture relating to an Owned
Aircraft.

         Initial Certificates: Means the certificates issued and authenticated
hereunder substantially in the form of Exhibit A hereto (including the
Additional Certificates (as defined in the Delayed Funding Implementation
Agreement)), other than the Exchange Certificates.

         Initial Regular Distribution Date: Means the first Regular Distribution
Date on which a Scheduled Payment is to be made.

         Institutional Accredited Investor: Means an institutional investor that
is an "accredited investor" within the meaning set forth in Rule 501(a)(1), (2),
(3) or (7) of Regulation D under the Securities Act.

         Intercreditor Agreement: Means the Intercreditor Agreement dated March
28, 2002 among the Trustee, the Other Trustee, the Liquidity Provider, the
liquidity provider relating to the Certificates issued under (and as defined in)
the Other Pass Through Trust Agreement, and Wilmington Trust Company, as
Subordination Agent thereunder, as amended, supplemented or otherwise modified
from time to time in accordance with its terms.

         Issuance Date: Means the initial date of the issuance of the
Certificates.

         Lease: Means, with respect to each Leased Aircraft, the lease between
an Owner Trustee, as the lessor, and the Company, as the lessee, referred to in
the related Indenture, as each such lease may be amended, supplemented or
otherwise modified in accordance with its terms.

         Leased Aircraft: Has the meaning specified in the second recital to
this Agreement.

         Letter of Representations: Means the agreement dated the Issuance Date
among the Company, the Trustee and the initial Clearing Agency.

         Liquidity Facility: Means the Revolving Credit Agreement (2002-1A)
dated March 28, 2002 relating to the Certificates between the Liquidity Provider
and the Subordination

                                       7
<PAGE>

Agent, as amended, replaced, supplemented or otherwise modified from time to
time in accordance with its terms and the terms of the Intercreditor Agreement.

         Liquidity Provider: Means, initially, AIG Matched Funding Corp., and
any replacement or successor therefor appointed in accordance with the Liquidity
Facility and the Intercreditor Agreement.

         Loan Trustee: With respect to any Equipment Note or the Indenture
applicable thereto, means the bank or trust company designated as loan or
indenture trustee under such Indenture, not in its individual capacity but
solely as trustee; and any successor to such Loan Trustee as such trustee; and
Loan Trustees means all of the Loan Trustees under the Indentures.

         Non-U.S. Person: Means a Person that is not a U.S. Person as defined in
Regulation S.

         Note Documents: With respect to any Equipment Note, means the related
Indenture, Lease (if the related Aircraft is leased to the Company) and
Participation Agreement.

         Note Purchase Agreement: Means the Note Purchase Agreement dated as of
March 28, 2002 among the Trustee, the Other Trustee, the Company, the Guarantor,
the Escrow Agent, the Escrow Paying Agent and the Subordination Agent, providing
for, among other things, the purchase of Equipment Notes by the Trustee on
behalf of the Trust, as the same may be amended, supplemented or otherwise
modified from time to time, in accordance with its terms.

         Notice of Purchase Withdrawal: Has the meaning specified in the Deposit
Agreement.

         Officer's Certificate: Means a certificate signed (a) in the case of
the Guarantor or the Company, by (i) the President or any Executive Vice
President or Senior Vice President of the Guarantor or the Company,
respectively, signing alone or (ii) any Vice President of the Guarantor or the
Company signing together with the Secretary, the Assistant Secretary, the
Treasurer or any Assistant Treasurer of the Guarantor or the Company,
respectively, or (b) in the case of the Trustee or an Owner Trustee or a Loan
Trustee, a Responsible Officer of the Trustee or such Owner Trustee or such Loan
Trustee, as the case may be.

         Offshore Global Certificates: Has the meaning assigned to such term in
Section 3.01(d).

         Offshore Physical Certificates: Means the Initial Certificates, issued
pursuant to Section 3.05(b) in exchange for interests in any Offshore Global
Certificate, in the form of permanent certificated Certificates in registered
form substantially in the form set forth in Exhibit A hereto.

         Opinion of Counsel: Means a written opinion of legal counsel who (a) in
the case of counsel for the Guarantor or the Company, may be (i) a senior
attorney in rank of the officers of the Guarantor or the Company a principal
duty of which is furnishing advice as to legal

                                       8
<PAGE>

matters or (ii) such other counsel designated by the Guarantor or the Company
and reasonably acceptable to the Trustee and (b) in the case of any Owner
Trustee or any Loan Trustee, may be such counsel as may be designated by any of
them whether or not such counsel is an employee of any of them, and who shall be
reasonably acceptable to the Trustee.

         Other Pass Through Trust Agreement: Means the American Trans Air
2002-1B Pass Through Trust Agreement relating to the American Trans Air 2002-1B
Pass Through Trust, dated the date hereof.

         Other Trust: Means the American Trans Air 2002-1B Pass Through Trust.

         Other Trustee: Means the trustee under the Other Pass Through Trust
Agreement, and any successor or other trustee appointed as provided therein.

         Outstanding: With respect to Certificates, means, as of the date of
determination, all Certificates theretofore authenticated and delivered under
this Agreement, except:

         (i) Certificates theretofore canceled by the Registrar or delivered to
     the Trustee or the Registrar for cancellation;

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

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

         Owned Aircraft: Has the meaning specified in the second recital to this
Agreement.

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

         Owner Trustee: With respect to any Equipment Note relating to a Leased
Aircraft, means the "Owner Trustee", as referred to in the Indenture pursuant to
which such Equipment Note is issued, not in its individual capacity but solely
as trustee; and Owner Trustees means all of the Owner Trustees party to any of
the Indentures.

         Participation Agreement: Means each Participation Agreement to be
entered into by the Trustee and the Other Trustee pursuant to the Note Purchase
Agreement, as the same may be amended, supplemented or otherwise modified in
accordance with its terms; and Participation Agreements means all such
agreements.

                                       9
<PAGE>

         Paying Agent: Means the paying agent maintained and appointed for the
Certificates pursuant to Section 7.11.

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

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

         Physical Certificates: Has the meaning specified in Section 3.01(e).

         Pool Balance: Has the meaning specified in the Intercreditor Agreement.

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

         Private Placement Memorandum: Means the Private Placement Memorandum
dated March 26, 2002 relating to the offering of the Certificates and the
certificates issued under the Other Pass Through Trust Agreement.

         Private Placement Legend: Has the meaning specified in Section 3.02.

         PTC Event of Default: Means any failure to pay within 10 Business Days
of the due date thereof: (i) the outstanding Pool Balance on the Final Legal
Distribution Date or (ii) interest due on the Certificates on any Distribution
Date (unless the Subordination Agent shall have made an Interest Drawing (as
defined in the Intercreditor Agreement) or a withdrawal or withdrawals from a
cash collateral account pursuant to Section 3.6(f) of the Intercreditor
Agreement with respect thereto in an amount sufficient to pay such interest (or
such Pool Balance, as the case may be) and shall have distributed such amount to
the Trustee entitled thereto).

         QIB: Means a qualified institutional buyer as defined in Rule 144A.
Rating Agency: Means Moody's Investor Service, Inc. and its successors in
interest.

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

                                       10
<PAGE>

Special Distribution Date, other than the final distribution, the 15th day
(whether or not a Business Day) preceding such Special Distribution Date.

         Register and Registrar: Mean the register maintained and the registrar
appointed pursuant to Sections 3.04 and 7.11.

         Registration Rights Agreement: Means the Registration Rights Agreement
dated March 26, 2002, among the Trustee, the Other Trustee, the Investors (as
defined in the Registration Rights Agreement), the Guarantor and the Company, as
amended, supplemented or otherwise modified from time to time in accordance with
its terms.

         Regular Distribution Date: With respect to distributions of Scheduled
Payments in respect of the Certificates, means each date designated as a Regular
Distribution Date in the Certificates issued pursuant to this Agreement, until
payment of all the Scheduled Payments to be made under the Equipment Notes held
in the Trust have been made; provided, however, that, if any such day shall not
be a Business Day, the related distribution shall be made on the next succeeding
Business Day without additional interest.

         Regulation S: Means Regulation S under the Securities Act and any
successor regulation thereto.

         Regulation S Restricted Date: Means, with respect to each Initial
Certificate, the date 40 days after the later of the commencement of the initial
offering of such Initial Certificate and the date of initial issuance thereof.

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

         Responsible Officer: With respect to the Trustee, any Loan Trustee and
any Owner Trustee, means any officer in the Corporate Trust Office of the
Trustee, Loan Trustee or Owner Trustee or any other officer customarily
performing functions similar to those performed by the persons who at the time
shall be such officers, respectively, or to whom any corporate trust matter is
referred because of his knowledge of and familiarity with a particular subject.

         Rule 144A: Means Rule 144A under the Securities Act and any successor
rule thereto.

         Scheduled Payment: With respect to any Equipment Note, means (i) any
payment of principal or interest on or in respect of such Equipment Note (other
than any such payment which is not in fact received by the Trustee or any
Subordination Agent within five days of the date on which such payment is
scheduled to be made) due from the obligor thereon or (ii) any payment of
interest on the Certificates with funds drawn under the Liquidity Facility,
which payment in any such case represents the installment of principal at the
stated maturity of such installment of principal on such Equipment Note, the
payment of regularly scheduled interest accrued on the unpaid principal amount
of such Equipment Note, or both; provided that any

                                       11
<PAGE>

payment of principal, premium, if any, or interest resulting from the redemption
or purchase of any Equipment Note shall not constitute a Scheduled Payment.

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

         Securities Act: Means the United States Securities Act of 1933, as
amended from time to time, or any successor thereto.

         Shelf Registration Statement: Means the shelf registration statement
which may be required to be filed by the Company with the SEC pursuant to the
Registration Rights Agreement, other than an Exchange Offer Registration
Statement.

         Special Distribution Date: Means each date on which a Special Payment
is to be distributed as specified in this Agreement; provided, however, that, if
any such day shall not be a Business Day, the related distribution shall be made
on the next succeeding Business Day without additional interest.

         Special Redemption Premium: Means the premium payable by the Company in
respect of a Prepayment Withdrawal (as defined in the Escrow Agreement) or the
Final Withdrawal pursuant to the Note Purchase Agreement.

         Special Payment: Means any payment (other than a Scheduled Payment) in
respect of, or any proceeds of, any Equipment Note or Trust Indenture Estate (as
defined in each Indenture) or the Special Redemption Premium (if applicable).

         Special Payments Account: Means the account or accounts created and
maintained pursuant to Section 4.01(b).

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

         Substitute Aircraft: Has the meaning specified in Section 1(g) of the
Note Purchase Agreement.

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

         Trust: Means the trust created by this Agreement, the estate of which
consists of Trust Property.

         Trust Indenture Act: Means the United States Trust Indenture Act of
1939, as amended from time to time.

                                       12
<PAGE>

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

         Trustee: Means Wilmington Trust Company, not in its individual capacity
but solely as trustee, or its successor in interest, and any successor trustee
appointed as provided herein.

         Trustee's Lien: Has the meaning specified in section 7.16.

         U.S. Global Certificate: Has the meaning specified in Section 3.01(c).

         U.S. Physical Certificates: Means the Initial Certificates offered and
sold to Institutional Accredited Investors issued in the form of permanent
certificated Certificates in registered form in substantially the form set forth
as Exhibit A hereto with such applicable legends as are provided for in clauses
(a) and (b) of Section 3.02 hereto.

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

         Every certificate or opinion with respect to compliance with a
condition or covenant provided for in this Agreement (other than a certificate
provided pursuant to Section 8.04(d)) shall include:

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

                                       13
<PAGE>

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

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

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

         Section 1.03. Form of Documents Delivered to Trustee. In any case where
several matters are required to be certified by, or covered by an opinion of,
any specified Person, it is not necessary that all such matters be certified by,
or covered by the opinion of, only one such Person, or that they be so certified
or covered by only one document, but one such Person may certify or give an
opinion with respect to some matters and one or more other such Persons as to
other matters and any such Person may certify or give an opinion as to such
matters in one or several documents.

         Any Opinion of Counsel stated to be based on the opinion of other
counsel shall be accompanied by a copy of such other opinion.

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

         Section 1.04. Directions of Certificateholders.

         (a) Any direction, consent, request, demand, authorization, notice,
waiver or other action provided by this Agreement to be given or taken by
Certificateholders (a "Direction") may be embodied in and evidenced by one or
more instruments of substantially similar tenor signed by such
Certificateholders in person or by an agent or proxy duly appointed in writing;
and, except as herein otherwise expressly provided, such action shall become
effective when such instrument or instruments are delivered to the Trustee and,
where it is hereby expressly required pursuant to this Agreement, to the Company
or any Loan Trustee. Such instrument or instruments (and the action embodied
therein and evidenced thereby) are herein sometimes referred to as the
Directions of the Certificateholders signing such instrument or instruments.
Proof of execution of any such instrument or of a writing appointing any such
agent or proxy shall be sufficient for any purpose of this Agreement and
conclusive in favor of the Trustee, the Company and any Loan Trustee, if made in
the manner provided in this Section.

         (b) The fact and date of the execution by any Person of any such
instrument or writing may be proved by the certificate of any notary public or
other officer of any jurisdiction authorized to take acknowledgments of deeds or
administer oaths that the Person executing such instrument acknowledged to him
the execution thereof, or by an affidavit of a witness to such execution sworn
to before any such notary or such other officer and where such execution is by
an officer of a corporation or association or a member of a partnership, on
behalf of such

                                       14
<PAGE>

corporation, association or partnership, such certificate or affidavit shall
also constitute sufficient proof of his authority. The fact and date of the
execution of any such instrument or writing, or the authority of the Person
executing the same, may also be proved in any other reasonable manner which the
Trustee deems sufficient.

         (c) In determining whether the Certificateholders of the requisite
Fractional Undivided Interests of Certificates Outstanding have given any
Direction under this Agreement, Certificates owned by the Company, the
Guarantor, any Owner Trustee, any Owner Participant or any Affiliate of any such
Person (other than an Affiliate of any Owner Participant) shall be disregarded
and deemed not to be Outstanding for purposes of any such determination. In
determining whether the Trustee shall be protected in relying upon any such
Direction, only Certificates which the Trustee knows to be so owned shall be so
disregarded. Notwithstanding the foregoing, (i) if any such Person owns 100% of
the Certificates Outstanding, such Certificates shall not be so disregarded as
aforesaid, and (ii) if any amount of Certificates so owned by any such Person
have been pledged in good faith, such Certificates shall not be disregarded as
aforesaid if the pledgee establishes to the satisfaction of the Trustee the
pledgee's right so to act with respect to such Certificates and that the pledgee
is not the Company, the Guarantor, any Owner Trustee, any Owner Participant or
any Affiliate of any such Person.

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

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

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

         (g) For all purposes of this Agreement, all Initial Certificates and
all Exchange Certificates shall vote and take all actions of Certificateholders
together as one series of Certificates.

                                       15
<PAGE>

                                   ARTICLE II

                       ORIGINAL ISSUANCE OF CERTIFICATES;
                         ACQUISITION OF EQUIPMENT NOTES

         Section 2.01. Issuance of Certificates; Acquisition of Equipment Notes.

         (a) The Trustee is hereby (i) authorized and directed to execute and
deliver the Intercreditor Agreement, the Registration Rights Agreement, the
Delayed Funding Implementation Agreement, the Escrow Agreement and the Note
Purchase Agreement on or prior to the Issuance Date, each in the form delivered
to the Trustee by the Company and (ii) authorized, subject to the respective
terms thereof, to perform its obligations thereunder. Upon the request of the
Company and the satisfaction or waiver of the closing conditions specified in
the Certificate Purchase Agreement, the Trustee shall, execute, deliver,
authenticate, issue and sell Certificates in authorized denominations equaling
in the aggregate the amount set forth in Schedule A to the Certificate Purchase
Agreement, and evidencing the entire ownership interest in the Trust, which
amount equals the maximum aggregate principal amount of Equipment Notes which
may be purchased by the Trustee pursuant to the Note Purchase Agreement. Except
as provided in Sections 3.04, 3.05, 3.06, 3.07 and 3.10 hereof and subject to
the Delayed Funding Implementation Agreement, the Trustee shall not execute,
authenticate or deliver Certificates in excess of the aggregate amount specified
in this paragraph.

         (b) On or after the Issuance Date, the Company may deliver from time to
time to the Trustee (but in any case no later than one Business Day prior to the
date on which the Trustee must instruct the Escrow Agent as described below) a
Delivery Notice relating to one or more Equipment Notes. After receipt of a
Delivery Notice and in any case no later than one Business Day prior to a
Delivery Date or Funding Date as to which such Delivery Notice relates (the
"Applicable Delivery Date") (or, if the Issuance Date is an Applicable Delivery
Date, on the Issuance Date), the Trustee shall (as and when specified in the
Delivery Notice) instruct the Escrow Agent to provide a Notice of Purchase
Withdrawal to the Depositary requesting (i) the withdrawal of one or more
Deposits on the Applicable Delivery Date in accordance with and to the extent
permitted by the terms of the Escrow Agreement and the Deposit Agreement and
(ii) the payment of all, or a portion, of such Deposit or Deposits, in an
aggregate amount equal to the purchase price of the Equipment Notes relating to
the Aircraft to be delivered on such Applicable Delivery Date, to or on behalf
of the Owner Trustee or the Company, as the case may be, issuing such Equipment
Notes, all as shall be described in the Delivery Notice; provided that, if the
Issuance Date is an Applicable Delivery Date, such purchase price shall be paid
from a portion of the proceeds of the sale of the Certificates. The Trustee
shall (as and when specified in such Delivery Notice), subject to the conditions
set forth in Sections 1 and 2 of the Note Purchase Agreement, enter into and
perform its obligations under the Participation Agreement specified in such
Delivery Notice (the "Applicable Participation Agreement") and cause such
certificates, documents and legal opinions relating to the Trustee to be duly
delivered as required by the Applicable Participation Agreement. If at any time
prior to the Applicable Delivery Date, the Trustee receives a notice of
postponement pursuant to Section 1(d) or 1(e) of the Note Purchase Agreement,
then the Trustee shall give the Depositary (with a copy to the Escrow Agent) a
notice of cancellation of such Notice of Purchase Withdrawal relating to such
Deposit

                                       16
<PAGE>

or Deposits on such Applicable Delivery Date. Upon satisfaction of the
conditions specified in the Note Purchase Agreement and the Applicable
Participation Agreement, the Trustee shall purchase the applicable Equipment
Notes with the proceeds of the withdrawals of one or more Deposits made on the
Applicable Delivery Date in accordance with the terms of the Deposit Agreement
and the Escrow Agreement (or, if the Issuance Date is the Applicable Delivery
Date with respect to such Applicable Participation Agreement, from a portion of
the proceeds of the sale of the Certificates). The purchase price of such
Equipment Notes shall equal the principal amount of such Equipment Notes.
Amounts withdrawn from such Deposit or Deposits in excess of the purchase price
of the Equipment Notes or to the extent not applied on the Applicable Delivery
Date to the purchase price of the Equipment Notes, shall be re-deposited with
the Depositary on the Applicable Delivery Date in accordance with the terms of
the Deposit Agreement.

         Section 2.02. Withdrawal of Deposits. (a) If the Trustee is notified
that any Deposits remain outstanding on the Business Day next succeeding the
Cut-Off Date, (i) the Trustee shall give the Escrow Agent notice that the
Trustee's obligation to purchase Equipment Notes under the Note Purchase
Agreement has terminated and instruct the Escrow Agent to provide a notice of
Final Withdrawal to the Depositary substantially in the form of Exhibit B to the
Deposit Agreement (the "Final Withdrawal Notice") and (ii) the Trustee will make
a demand upon the Company under the Note Purchase Agreement for an amount equal
to the Special Redemption Premium, if applicable, such payment to be made on the
Final Withdrawal Date.

         (b) If (i) as a result of a downgrading of the Company's corporate
credit ratings, General Electric Capital Corporation has elected to exercise its
contractual rights not to act as an Owner Participant with respect to a GE
Aircraft (as defined in the Note Purchase Agreement), (ii) pursuant to the
separate aircraft financing agreement between the Company and General Electric
Capital Corporation, the Company will not own or lease such GE Aircraft and
(iii) the Company will not identify and substitute a Substitute Aircraft for
such GE Aircraft, the Company may deliver to the Trustee written notice
requesting that the Trustee deliver to the Escrow Agent a Prepayment Withdrawal
Certificate (as defined in the Escrow Agreement) pursuant to the Escrow
Agreement directing the Escrow Agent to provide a Notice of Prepayment
Withdrawal (as defined in the Deposit Agreement) to the Depositary requesting
the withdrawal of all or a portion of the Deposit relating to the Equipment
Notes in respect of such GE Aircraft in accordance with and to the extent
permitted by the terms of the Escrow Agreement and the Deposit Agreement. In
connection with the Trustee's delivery of a Prepayment Withdrawal Certificate,
the Trustee shall make a demand upon the Company under the Note Purchase
Agreement for an amount equal to the Special Redemption Premium, if applicable,
to be payable on the Prepayment Withdrawal Date (as defined in the Escrow
Agreement).

         Section 2.03. Acceptance by Trustee. The Trustee, upon the execution
and delivery of this Agreement, acknowledges its acceptance of all right, title,
and interest in and to the Trust Property and declares that the Trustee holds
and will hold such right, title, and interest for the benefit of all then
present and future Certificateholders, upon the trusts herein set forth. Subject
to Section 7.13, the Trustee shall take all actions reasonably necessary to
effect the registration of all such Equipment Notes in the name of the
Subordination Agent. By its payment

                                       17
<PAGE>

for and acceptance of each Certificate issued to it under this Agreement, each
Certificateholder as grantor of the Trust thereby joins in the creation and
declaration of the Trust.

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

                                   ARTICLE III

                                THE CERTIFICATES

         Section 3.01. Title, Form, Denomination and Execution of Certificates.

         (a) The Initial Certificates shall be known as the "8.328% Initial Pass
Through Certificates, Series 2002-1A" and the Exchange Certificates shall be
known as the "8.328% Exchange Pass Through Certificates, Series 2002-1A." Each
Certificate will represent a fractional undivided interest in the Trust and
shall be substantially in the form set forth as Exhibit A hereto, with such
appropriate insertions, omissions, substitutions and other variations as are
required or permitted by this Agreement and may have such letters, numbers or
other marks of identification and such legends or endorsements placed thereon as
may be required to comply with the rules of any securities exchange or as may,
consistently herewith, be determined by the Trustee or the officers executing
such Certificates, as evidenced by the Trustee's or the officer's execution of
the Certificates. Any portion of the text of any Certificate may be set forth on
the reverse thereof, with an appropriate reference thereto on the face of the
Certificate. At the Escrow Agent's request under the Escrow Agreement, the
Trustee shall affix the corresponding Escrow Receipt to each Certificate. Any
transfer or exchange of any Certificate shall also effect a transfer or exchange
of the related Escrow Receipt. Prior to the Final Withdrawal Date, no transfer
or exchange of any Certificate shall be permitted unless the corresponding
Escrow Receipt is attached thereto and also is so transferred or exchanged. By
acceptance of any Certificate to which an Escrow Receipt is attached, each
Holder of such a Certificate acknowledges and accepts the restrictions on
transfer of the Escrow Receipt set forth herein and in the Escrow Agreement.

         (b) The Initial Certificates shall be issued only in fully registered
form without coupons in minimum denominations of $100,000 or integral multiples
of $1,000 in excess thereof, except that one Certificate may be issued in a
denomination of less than $100,000. The Exchange Certificates shall be issued
only in fully registered form without coupons in minimum denominations of $1,000
or integral multiples thereof. Each Certificate shall be dated the date of its
authentication. The aggregate Fractional Undivided Interest of Certificates
shall not at any time exceed $111,716,000.

                                       18
<PAGE>

         (c) The Initial Certificates shall be issued initially in the form of
one or more permanent global Certificates in registered form, substantially in
the form set forth as Exhibit A hereto with such applicable legends as are
provided for in clauses (a) and (b) of Section 3.02 (each, a "U.S. Global
Certificate"), duly executed and authenticated by the Trustee as hereinafter
provided. Each U.S. Global Certificate will be registered in the name of a
nominee for DTC and deposited with the Trustee, as custodian for DTC. The
aggregate principal amount of any U.S. Global Certificate may from time to time
be increased or decreased by adjustments made on the records of DTC or its
nominee, or of the Trustee, as custodian for DTC or its nominee, as hereinafter
provided.

         (d) Any Initial Certificates transferred in reliance on Regulation S
shall be issued in the form of a single global Certificate in registered form,
substantially in the form set forth as Exhibit A hereto with such applicable
legends as are provided for in clause (b) of Section 3.02 (the "Offshore Global
Certificate") duly executed and authenticated by the Trustee as hereinafter
provided. The U.S. Global Certificates and the Offshore Global Certificates are
sometimes referred to as the "Global Certificates".

         (e) [Reserved]

         (f) [Reserved]

         (g) The Certificates shall be in registered form and shall be typed,
printed, lithographed or engraved or produced by any combination of these
methods or may be produced in any other manner, all as determined by the
officers executing such Certificates, as evidenced by their execution of such
Certificates.

         (h) The Exchange Certificates shall be issued in the form of one or
more Global Certificates substantially in the form of Exhibit A hereto (each, a
"Global Exchange Certificate"), except that (i) the Private Placement Legend
(hereinafter defined) shall be omitted and (ii) such Exchange Certificates shall
contain such appropriate insertions, omissions, substitutions and other
variations from the form set forth in Exhibit A hereto relating to the nature of
the Exchange Certificates as the Responsible Officer of the Trustee executing
such Exchange Certificates on behalf of the Trust may determine, as evidenced by
such officer's execution on behalf of the Trust of such Exchange Certificates.
Such Global Exchange Certificates shall be in registered form and be registered
in the name of DTC and deposited with the Trustee, at its Corporate Trust
Office, as custodian for DTC. The aggregate principal amount of any Global
Exchange Certificate may from time to time be increased or decreased by
adjustments made on the records of the Trustee, as custodian for DTC for such
Global Exchange Certificate, which adjustments shall be conclusive as to the
aggregate principal amount of any such Global Exchange Certificate. Subject to
clause (i) and (ii) of the first sentence of this Section 3.01(h), the terms
hereof applicable to U.S. Global Certificates and/or Global Certificates shall
apply to the Global Exchange Certificates mutatis mutandis.

         Section 3.02. Restrictive Legends.

                                       19
<PAGE>

         (a) Subject to Section 3.01 and 3.06, each U.S. Global Certificate and
each U.S. Physical Certificate shall bear the following legend (the "Private
Placement Legend") on the face thereof:

         THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT
OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED
OR SOLD WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S.
PERSONS EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. BY ITS ACQUISITION
HEREOF, THE HOLDER (1) REPRESENTS THAT (A) IT IS A "QUALIFIED INSTITUTIONAL
BUYER" (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT), (B) IT IS AN
INSTITUTIONAL "ACCREDITED INVESTOR" (AS DEFINED IN RULE 501(A)(1), (2), (3) OR
(7) OF REGULATION D UNDER THE SECURITIES ACT) (AN "INSTITUTIONAL ACCREDITED
INVESTOR") OR (C) IT IS NOT A U.S. PERSON AND IS ACQUIRING THIS CERTIFICATE IN
AN OFFSHORE TRANSACTION IN COMPLIANCE WITH REGULATION S UNDER THE SECURITIES
ACT, (2) AGREES THAT IT WILL NOT, WITHIN THE TIME PERIOD REFERRED TO IN RULE
144(K) UNDER THE SECURITIES ACT (OR ANY SUCCESSOR PROVISION), RESELL OR
OTHERWISE TRANSFER THIS CERTIFICATE EXCEPT (A) TO ATA OR ANY SUBSIDIARY THEREOF,
(B) TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE
SECURITIES ACT, (C) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN
COMPLIANCE WITH RULE 904 UNDER THE SECURITIES ACT, (D) PURSUANT TO THE EXEMPTION
FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE)
OR (E) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT,
AND (3) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS CERTIFICATE IS
TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. IN CASE THIS
CERTIFICATE IS IN DEFINITIVE FORM, IN CONNECTION WITH ANY TRANSFER OF THIS
CERTIFICATE WITHIN THE TIME PERIOD REFERRED TO IN RULE 144(K) UNDER THE
SECURITIES ACT (OR ANY SUCCESSOR PROVISION), THE HOLDER MUST CHECK THE
APPROPRIATE BOX SET FORTH ON THE REVERSE HEREOF RELATING TO THE MANNER OF SUCH
TRANSFER AND SUBMIT THIS CERTIFICATE TO THE APPLICABLE TRUSTEE. IF THE PROPOSED
TRANSFEREE IS AN INSTITUTIONAL ACCREDITED INVESTOR OR IS A PURCHASER WHO IS NOT
A U.S. PERSON, THE HOLDER MUST, PRIOR TO SUCH TRANSFER, FURNISH TO THE TRUSTEE,
SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS IT MAY REASONABLY
REQUIRE TO CONFIRM THAT SUCH TRANSFER IS BEING MADE PURSUANT TO AN EXEMPTION
FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT. THIS LEGEND WILL BE REMOVED UPON THE EARLIER OF THE TRANSFER OF
THE CERTIFICATES PURSUANT TO CLAUSE 2(E) ABOVE OR UPON ANY TRANSFER OF THE
CERTIFICATES UNDER RULE 144(K) UNDER THE SECURITIES ACT (OR ANY SUCCESSOR
PROVISION). AS USED HEREIN, THE TERMS "OFFSHORE

                                       20
<PAGE>

TRANSACTION", "UNITED STATES" AND "U.S. PERSON" HAVE THE MEANINGS GIVEN TO THEM
BY REGULATION S UNDER THE SECURITIES ACT. THE PASS THROUGH TRUST AGREEMENT
CONTAINS A PROVISION REQUIRING THE TRUSTEE TO REFUSE TO REGISTER ANY TRANSFER OF
THIS CERTIFICATE IN VIOLATION OF THE FOREGOING RESTRICTIONS.

         (b) Each Global Certificate shall also bear the following legend on the
face thereof:

     UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
     DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR
     ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY
     CERTIFICATE ISSUED IN EXCHANGE FOR THIS CERTIFICATE IS REGISTERED IN THE
     NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
     REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO
     SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
     ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
     ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO.,
     HAS AN INTEREST HEREIN. TRANSFERS OF THIS GLOBAL CERTIFICATE SHALL BE
     LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A
     SUCCESSOR THEREOF OR SUCH SUCCESSOR'S NOMINEE AND TRANSFERS OF PORTIONS OF
     THIS GLOBAL CERTIFICATE SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE
     WITH THE RESTRICTIONS SET FORTH IN SECTIONS 3.05 AND 3.06 OF THE PASS
     THROUGH TRUST AGREEMENT REFERRED TO HEREIN.

         Section 3.03. Authentication of Certificates.

         (a) On the Issuance Date, the Trustee shall duly execute, authenticate
and deliver Certificates in authorized denominations in the aggregate amount of
$111,716,000, evidencing the entire ownership interest of the Trust, which
amount equals the maximum aggregate principal amount of Equipment Notes which
may be purchased by the Trustee pursuant to the Note Purchase Agreement.

         (b) No Certificate shall be entitled to any benefit under this
Agreement or be valid or obligatory for any purpose, unless there appears on
such Certificate a certificate of authentication substantially in the form
provided for herein executed by the Trustee by the manual signature of one of
its authorized signatories, and such certificate upon any Certificate shall be
conclusive evidence, and the only evidence, that such Certificate has been duly
authenticated and delivered hereunder.

                                       21
<PAGE>

         Section 3.04. Transfer and Exchange.

         (a) The Trustee shall cause to be kept at the office or agency to be
maintained by it in accordance with the provisions of Section 7.11 of this
Agreement a register (the "Register") for the Certificates in which, subject to
such reasonable regulations as it may prescribe, the Trustee shall provide for
the registration of the Certificates and of transfers and exchanges of the
Certificates as herein provided. The Trustee shall initially be the registrar
(the "Registrar") for the purpose of registering the Certificates and transfers
and exchanges of the Certificates as herein provided. A Certificateholder may
transfer a Certificate by written application to the Registrar stating the name
of the proposed transferee and otherwise complying with the terms of this
Agreement, including providing a written certificate or other evidence of
compliance with any restrictions on transfer, in form satisfactory to the
Trustee and the Registrar. No such transfer shall be effected until, and such
transferee shall succeed to the rights of a Certificateholder only upon, final
acceptance and registration of the transfer by the Registrar in the Register.
Prior to the registration of any transfer by a Certificateholder as provided
herein, the Trustee shall treat the person in whose name the Certificate is
registered as the owner thereof for all purposes, and the Trustee shall not be
affected by notice to the contrary. Furthermore, DTC shall, by acceptance of a
Global Certificate, agree that transfers of beneficial interests in such Global
Certificate may be effected only through a book-entry system maintained by DTC
(or its agent), and that ownership of a beneficial interest in the Certificate
shall be required to be reflected in a book entry. When Certificates are
presented to the Registrar with a request to register the transfer thereof or to
exchange them for an equal face amount of Certificates of other authorized
denominations, the Registrar shall register the transfer or make the exchange as
requested if its requirements for such transactions are met. To permit
registrations of transfers and exchanges in accordance with the terms,
conditions and restrictions hereof, the Trustee shall execute and authenticate
Certificates at the Registrar's request. No service charge shall be made to a
Certificateholder for any registration of transfer or exchange of the
Certificates, but the Trustee shall require payment of a sum sufficient to cover
any tax or similar governmental charge payable in connection therewith. All
Certificates surrendered for registration of transfer or exchange shall be
canceled and subsequently destroyed by the Trustee.

         Section 3.05. Book-Entry Provisions for U.S. Global Certificate and
Offshore Global Certificates.

         (a) Members of, or participants in, DTC ("Agent Members") shall have no
rights under this Agreement with respect to any Global Certificate held on their
behalf by DTC, or the Trustee as its custodian, and DTC may be treated by the
Trustee and any agent of the Trustee as the absolute owner of such Global
Certificate for all purposes whatsoever. Notwithstanding the foregoing, nothing
herein shall prevent the Trustee or any agent of the Trustee from giving effect
to any written certification, proxy or other authorization furnished by DTC or
shall impair, as between DTC and its Agent Members, the operation of customary
practices governing the exercise of the rights of a holder of any Certificate.
Upon the issuance of any Global Certificate, the Registrar or its duly appointed
agent shall record a nominee of DTC as the registered holder of such Global
Certificate.

                                       22
<PAGE>

         (b) Transfers of any Global Certificate shall be limited to transfers
of such Global Certificate in whole, but not in part, to nominees of DTC, its
successor or such successor's nominees. Beneficial interests in the U.S. Global
Certificate and any Offshore Global Certificate may be transferred in accordance
with the rules and procedures of DTC and the provisions of Section 3.06.
Beneficial interests in the U.S. Global Certificate or an Offshore Global
Certificate shall be delivered to all beneficial owners in the form of U.S.
Physical Certificates or Offshore Physical Certificates, as the case may be, if
(i) the Company notifies the Trustee in writing that DTC is unwilling or unable
to discharge properly its responsibilities as depositary for the U.S. Global
Certificate or such Offshore Global Certificate, as the case may be, and the
Company is unable to locate a qualified successor depositary within 90 days of
such notice or (ii) after the occurrence of an Event of Default, beneficial
owners of the U.S. Global Certificate or Offshore Global Certificates evidencing
Fractional Undivided Interests aggregating not less than a majority in interest
in the Trust, by Direction of such Certificateholders delivered to the Company
and the Trustee, advise the Company, the Trustee and DTC through its Clearing
Agency Participants in writing that the continuation of a book-entry system
through DTC is no longer in the best interests of the Certificateholders, then
the Trustee shall notify all owners of beneficial interests in the U.S. Global
Certificate or an Offshore Global Certificate, through DTC, of the occurrence of
any such event and the availability of definitive Certificates.

         (c) Any beneficial interest in one of the Global Certificates that is
transferred to a Person who takes delivery in the form of an interest in the
other Global Certificate will, upon such transfer, cease to be an interest in
such Global Certificate and become an interest in another Global Certificate
and, accordingly, will thereafter be subject to all transfer restrictions, if
any, and other procedures applicable to beneficial interests in such other
Global Certificate for as long as it remains such an interest.

         (d) In connection with the transfer of the entire U.S. Global
Certificate or an entire Offshore Global Certificate to the beneficial owners
thereof pursuant to paragraph (b) of this Section 3.05, such U.S. Global
Certificate or Offshore Global Certificate, as the case may be, shall be deemed
to be surrendered to the Trustee for cancellation, and the Trustee shall
execute, authenticate and deliver, to each beneficial owner identified by DTC in
exchange for its beneficial interest in such U.S. Global Certificate or Offshore
Global Certificate, as the case may be, an equal aggregate principal amount of
U.S. Physical Certificates or Offshore Physical Certificates, as the case may
be, of authorized denominations.

         (e) Any U.S. Physical Certificate delivered in exchange for an interest
in the U.S. Global Certificate pursuant to paragraph (b) of this Section 3.05
shall, except as otherwise provided by paragraph (f) of Section 3.06, bear the
Private Placement Legend.

         (f) Any Offshore Physical Certificate delivered in exchange for an
interest in an Offshore Global Certificate pursuant to paragraph (b) of this
Section shall, except as otherwise provided by paragraph (f) of Section 3.06,
bear the applicable legend regarding transfer restrictions set forth in Section
3.02(a).

         (g) The registered holder of the U.S. Global Certificate or any
Offshore Global Certificate may grant proxies and otherwise authorize any
Person, including Agent

                                       23
<PAGE>

Members and Persons that may hold interests through Agent Members, to take any
action which a Holder is entitled to take under this Agreement or the
Certificates.

         Section 3.06. Special Transfer Provisions. Unless and until (i) an
Initial Certificate is sold under an effective Shelf Registration Statement, or
(ii) an Initial Certificate is exchanged for an Exchange Certificate pursuant to
an effective Exchange Offer Registration Statement, in each case pursuant to the
terms of the Registration Rights Agreement, the following provisions shall apply
to the Initial Certificates:

         (a) [Reserved]

         (b) Transfers to QIBS. The following provisions shall apply with
     respect to the registration of any proposed transfer of an Initial
     Certificate to a QIB (excluding Non-U.S. Persons):

               (i) If the Initial Certificate to be transferred consists of an
         interest in any Offshore Global Certificate prior to the Regulation S
         Restricted Date, the Registrar shall register the transfer if such
         transfer is being made by a proposed transferor who has checked the box
         provided for on the form of U.S. Physical Certificate or delivered a
         certificate to the Trustee in the form of Exhibit E hereto stating, or
         has otherwise advised the Trustee and the Registrar in writing, that
         the sale has been made in compliance with the provisions of Rule 144A
         to a transferee who, in the case of an Offshore Global Certificate
         transferred prior to the Regulation S Restricted Date, has signed the
         certification provided for in Exhibit E hereto, stating, or has
         otherwise advised the Trustee and the Registrar in writing, that it is
         purchasing the Initial Certificate for its own account or an account
         with respect to which it exercises sole investment discretion and that
         it, or the Person on whose behalf it is acting with respect to any such
         account, is a QIB within the meaning of Rule 144A, and is aware that
         the sale to it is being made in reliance on Rule 144A and has been
         advised of the applicable transfer restrictions relating to the Initial
         Certificates and acknowledges that it has received such information
         regarding the Trust and/or the Company as it has requested pursuant to
         Rule 144A or has determined not to request such information and that it
         is aware that the transferor is relying upon its foregoing
         representations in order to claim the exemption from registration
         provided by Rule 144A.

               (ii) Upon receipt by the Registrar of the documents referred to
         in clause (i) above and instructions given in accordance with DTC's and
         the Registrar's procedures therefor, the Registrar shall reflect on its
         books and records the date of such transfer and an increase in the
         principal amount of the U.S. Global Certificate in an amount equal to
         the principal amount of the interests in the Offshore Global
         Certificate being transferred, and the Trustee shall decrease the
         amount of such Offshore Global Certificate so transferred.

         (c) Transfers of Interests in the Offshore Global Certificate on or
     after the Regulation S Restricted Date. The Registrar shall register any
     transfer of interests in the

                                       24
<PAGE>

     Offshore Global Certificate on or after the Regulation S Restricted Date
     without requiring any additional certification.

         (d) Transfers to Non-U.S. Persons at Any Time. The following provisions
     shall apply with respect to any registration of any transfer of an Initial
     Certificate to a Non-U.S. Person:

               (i) The Registrar shall register any proposed transfer of a U.S.
         Global Certificate to any Non-U.S. Person, upon receipt of a
         certificate substantially in the form of Exhibit B hereto from the
         proposed transferor. The Registrar shall promptly send a copy of such
         certificate to the Company.

               (ii) (A) Upon receipt by the Registrar of (x) the documents, if
         any, required by paragraph (i) and (y) instructions in accordance with
         DTC's and the Registrar's procedures, the Registrar shall reflect on
         its books and records the date of such transfer and shall decrease the
         principal amount of any such U.S. Global Certificate in an amount equal
         to the principal amount of the beneficial interest in such U.S. Global
         Certificate to be transferred, and (B) upon receipt by the Registrar of
         instructions given in accordance with DTC's and the Registrar's
         procedures, the Registrar shall reflect on its books and records the
         date and an increase in the principal amount of the Offshore Global
         Certificate in an amount equal to the principal amount of the U.S.
         Global Certificate to be transferred, and the Trustee shall decrease
         the amount of such U.S. Global Certificate.

         (e) Private Placement Legend. Upon the transfer, exchange or
     replacement of Certificates not bearing the Private Placement Legend, the
     Registrar shall deliver Certificates that do not bear the Private Placement
     Legend. Upon the transfer, exchange or replacement of Certificates bearing
     the Private Placement Legend, the Registrar shall deliver only Certificates
     that bear the Private Placement Legend unless either (i) the circumstances
     contemplated by paragraph (a)(i)(x) or (e)(ii) of this Section 3.06 exist
     or (ii) there is delivered to the Registrar an Opinion of Counsel to the
     effect that neither such legend nor the related restrictions on transfer
     are required in order to maintain compliance with the provisions of the
     Securities Act.

         (f) General. By its acceptance of any Certificate bearing the Private
     Placement Legend, each Holder of such a Certificate acknowledges the
     restrictions on transfer of such Certificate set forth in this Agreement
     and agrees that it will transfer such Certificate only as provided in this
     Agreement. The Registrar shall not register a transfer of any Certificate
     unless such transfer complies with the restrictions on transfer of such
     Certificate set forth in this Agreement. In connection with any transfer of
     Certificates, each Certificateholder agrees by its acceptance of the
     Certificates to furnish the Registrar or the Trustee such certifications,
     legal opinions or other information as either of them may reasonably
     require to confirm that such transfer is being made pursuant to an
     exemption from, or a transaction not subject to, the registration
     requirements of the Securities Act; provided that the Registrar shall not
     be required to determine the sufficiency of any such certifications, legal
     opinions or other information.

                                       25
<PAGE>

         Until such time as no Certificates remain Outstanding, the Registrar
shall retain copies of all letters, notices and other written communications
received pursuant to Section 3.05 or this Section 3.06. The Trustee, if not the
Registrar at such time, shall have the right to inspect and make copies of all
such letters, notices or other written communications at any reasonable time
upon the giving of reasonable written notice to the Registrar.

         Section 3.07. Mutilated, Destroyed, Lost or Stolen Certificates. If (a)
any mutilated Certificate is surrendered to the Registrar, or the Registrar
receives evidence to its satisfaction of the destruction, loss or theft of any
Certificate, and (b) there is delivered to the Registrar and the Trustee such
security, indemnity or bond, as may be required by them to save each of them
harmless, then, in the absence of notice to the Registrar or the Trustee that
such destroyed, lost or stolen Certificate has been acquired by a protected
purchaser, and provided that the requirements of Section 8-405 of the Uniform
Commercial Code in effect in any applicable jurisdiction are met, the Trustee
shall execute, authenticate and deliver, in exchange for or in lieu of any such
mutilated, destroyed, lost or stolen Certificate, a new Certificate or
Certificates, in authorized denominations and of like Fractional Undivided
Interest.

         In connection with the issuance of any new Certificate under this
Section 3.07, the Trustee shall require the payment of a sum sufficient to cover
any tax or other governmental charge that may be imposed in relation thereto and
any other expenses (including the fees and expenses of the Trustee and the
Registrar) connected therewith. Any duplicate Certificate issued pursuant to
this Section 3.07 shall constitute conclusive evidence of the appropriate
Fractional Undivided Interest in the related Trust, as if originally issued,
whether or not the lost stolen or destroyed Certificate shall be found at any
time.

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

         Section 3.08. Persons Deemed Owners. Prior to due presentment of a
Certificate for registration of transfer, the Trustee, the Registrar, and any
Paying Agent of the Trustee may treat the Person in whose name any Certificate
is registered (as of the day of determination) as the owner of such Certificate
for the purpose of receiving distributions pursuant to Section 4.02 and for all
other purposes whatsoever, and neither the Trustee, the Registrar, nor any
Paying Agent of the Trustee shall be affected by any notice to the contrary.

         Section 3.09. Cancellation. All Certificates surrendered for payment or
transfer or exchange shall, if surrendered to any Person party hereto other than
the Registrar, be delivered to the Registrar for cancellation. No Certificates
shall be authenticated in lieu of or in exchange for any Certificates cancelled
as provided in this Section, except as expressly permitted by this Agreement.
All cancelled Certificates held by the Registrar shall be destroyed and a
certification of their destruction delivered to the Trustee.

         Section 3.10. Limitation of Liability for Payments. All payments or
distributions made to Certificateholders shall be made only from the Trust
Property and only to the extent that the Trustee shall have sufficient income or
proceeds from the Trust Property to make such

                                       26
<PAGE>

payments in accordance with the terms of Article IV of this Agreement. Each
Certificateholder, by its acceptance of a Certificate, agrees that it will look
solely to the income and proceeds from the Trust Property for any payment or
distribution due to such Certificateholder pursuant to the terms of this
Agreement and that it will not have any recourse to the Company, the Trustee,
the Loan Trustee, the Liquidity Provider, the Owner Trustees or the Owner
Participants, except as otherwise expressly provided herein or in the
Intercreditor Agreement. The Company is a party to this Agreement solely for
purposes of meeting the requirements of the Trust Indenture Act.

         Section 3.11. Temporary Certificates. Until definitive Certificates are
ready for delivery, the Trustee shall authenticate temporary Certificates.
Temporary Certificates shall be substantially in the form of definitive
Certificates but may have insertions, substitutions, omissions and other
variations determined to be appropriate by the officers executing the temporary
Certificates, as evidenced by their execution of such temporary Certificates. If
temporary Certificates are issued, the Trustee will cause definitive
Certificates to be prepared without unreasonable delay. After the preparation of
definitive Certificates, the temporary Certificates shall be exchangeable for
definitive Certificates upon surrender of the temporary Certificates at the
office or agency of the Trustee designated for such purpose pursuant to Section
7.11, without charge to the Certificateholder. Upon surrender for cancellation
of any one or more temporary Certificates, the Trustee shall execute,
authenticate and deliver in exchange therefor a like face amount of definitive
Certificates of authorized denominations. Until so exchanged, the temporary
Certificates shall be entitled to the same benefits under this Agreement as
definitive Certificates.

                                   ARTICLE IV

                          DISTRIBUTIONS; STATEMENTS TO
                               CERTIFICATEHOLDERS

         Section 4.01. Certificate Account and Special Payments Account.

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

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

                                       27
<PAGE>

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

         Section 4.02. Distributions from Certificate Account and Special
Payments Account.

         (a) On each Regular Distribution Date or as soon thereafter as the
Trustee has confirmed receipt of the payment of all or any part of the Scheduled
Payments due on such date, the Trustee shall distribute out of the Certificate
Account the entire amount deposited therein pursuant to Section 4.01 (a). There
shall be so distributed to each Certificateholder of record on the Record Date
with respect to such Regular Distribution Date (other than as provided in
Section 11.01 concerning the final distribution), by check mailed to such
Certificateholder at the address appearing in the Register, such
Certificateholder's pro rata share (based on the aggregate Fractional Undivided
Interest in the Trust held by such Certificateholder) of the aggregate amount in
the Certificate Account, except that, with respect to Certificates registered on
the Record Date in the name of the nominee of DTC (initially, such nominee to be
Cede & Co.), such distribution shall be made by wire transfer in immediately
available funds to the account designated by such nominee.

         (b) On each Special Distribution Date with respect to any Special
Payment or as soon thereafter as the Trustee has confirmed receipt of any
Special Payments due on the Equipment Notes or realized upon the sale of such
Equipment Notes, the Trustee shall distribute out of the Special Payments
Account the entire amount deposited therein pursuant to Section 4.01(b) of such
Special Payment. There shall be so distributed to each Certificateholder of
record on the Record Date with respect to such Special Distribution Date (other
than as provided in Section 11.01 concerning the final distribution), by check
mailed to such Certificateholder at the address appearing in the Register, such
Certificateholder's pro rata share (based on the aggregate Fractional Undivided
Interest in the Trust held by such Certificateholder) of the aggregate amount in
the Special Payments Account on account of such Special Payment, except that,
with respect to Certificates registered on the Record Date in the name of the
nominee of DTC (initially, such nominee to be Cede & Co.), such distribution
shall be made by wire transfer in immediately available funds to the account
designated by such nominee.

         (c) The Trustee shall, at the expense of the Company, cause notice of
each Special Payment to be mailed to each Certificateholder at his address as it
appears in the Register. In the event of redemption or purchase of Equipment
Notes held in the Trust, such notice shall be mailed not less than 20 days prior
to the date any such Special Payment is scheduled to be distributed. In the
event the Company is required to pay a Special Redemption Premium to the Trustee
under the Note Purchase Agreement, such notice shall be mailed, together with
the notice by the Escrow Paying Agent under Section 2.06 of the Escrow
Agreement, not less than 20 days prior to the Special Distribution Date for such
amount, which Special Distribution Date shall be the date of a Prepayment
Withdrawal (as defined in the Escrow Agreement) or the Final Withdrawal Date. In
the case of any other Special Payments, such notice shall be mailed as soon as
practicable after the Trustee has confirmed that it has received

                                       28
<PAGE>

funds for such Special Payment, stating the Special Distribution Date for such
Special Payment which shall occur not less than 15 days after the date of such
notice and as soon as practicable thereafter. Notices mailed by the Trustee
shall set forth:

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

         (ii) the amount of the Special Payment for each $1,000 face amount
     Certificate and the amount thereof constituting principal, premium, if any,
     and interest,

         (iii) the reason for the Special Payment, and

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

         If the amount of (i) premium, if any, payable upon the redemption or
purchase of an Equipment Note or (ii) the Special Redemption Premium, if any,
has not been calculated at the time that the Trustee mails notice of a Special
Payment, it shall be sufficient if the notice sets forth the other amounts to be
distributed and states that any premium received will also be distributed.

         If any redemption of the Equipment Notes held in the Trust is
cancelled, the Trustee, as soon as possible after learning thereof, shall cause
notice thereof to be mailed to each Certificateholder at its address as it
appears on the Register.

         Section 4.03. Statements to Certificateholders.

         (a) On each Regular Distribution Date and Special Distribution Date,
the Trustee will include with each distribution to Certificateholders a
statement, giving effect to such distribution to be made on such Regular
Distribution Date or Special Distribution Date, as the case may be, setting
forth the following information (in the case of a Special Payment, including any
Special Redemption Premium, reflecting in part the information provided by the
Escrow Paying Agent under the Escrow Agreement) (per a $1,000 face amount
Certificate as to clauses (ii), (iii), (iv) and (v) below):

         (i) the aggregate amount of funds distributed on such Distribution Date
     hereunder and under the Escrow Agreement, indicating the amount allocable
     to each source including any portion thereof paid by the Liquidity
     Provider;

         (ii) the amount of such distribution allocable to principal and the
     amount allocable to premium (including any Special Redemption Premium), if
     any;

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

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

                                       29
<PAGE>

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

         (vi) the Pool Balance and the Pool Factor.

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

         (b) Within a reasonable period of time after the end of each calendar
year but not later than the latest date permitted by law, the Trustee shall
furnish to each Person who at any time during such calendar year was a
Certificateholder of record a statement containing the sum of the amounts
determined pursuant to clauses (a)(i) through (a)(v), inclusive, above with
respect to the Trust for such calendar year or, in the event such Person was a
Certificateholder of record during a portion of such calendar year, for the
applicable portion of such year, and such other items as are readily available
to the Trustee and which a Certificateholder shall reasonably request as
necessary for the purpose of such Certificateholder's preparation of its federal
income tax returns. With respect to Certificates registered in the name of a
Clearing Agency or its nominee, such report and such other items shall be
prepared on the basis of information supplied to the Trustee by the Clearing
Agency Participants and shall be delivered by the Trustee to such Clearing
Agency Participants to be available for forwarding by such Clearing Agency
Participants.

         (c) Promptly following (i) the Delivery Period Termination Date, if
there has been any change in the information set forth in clauses (x), (y) and
(z) below from that set forth on pages 34 and Appendix III of the Private
Placement Memorandum, and (ii) any early redemption or purchase of, or any
default in the payment of principal or interest in respect of, any of the
Equipment Notes held in the Trust, or any Final Withdrawal, the Trustee shall
furnish to Certificateholders of record on such date a statement setting forth
(x) the expected Pool Balances for each subsequent Regular Distribution Date
following the Delivery Period Termination Date, (y) the related Pool Factors for
such Regular Distribution Dates and (z) the expected principal distribution
schedule of the Equipment Notes, in the aggregate, held as Trust Property at the
date of such notice. With respect to the Certificates registered in the name of
a Clearing Agency or its nominee, on the Delivery Period Termination Date, the
Trustee will request from the Clearing Agency a securities position listing
setting forth the names of all the Clearing Agency Participants reflected on the
Clearing Agency's books as holding interests in the Certificates on such date.
The Trustee will mail to each such Clearing Agency Participant the statement
described above and will make available additional copies as requested by such
Clearing Agency Participant for forwarding to holders of Certificates.

         Section 4.04. Investment of Special Payment Moneys. Any money received
by the Trustee pursuant to Section 4.01(b) representing a Special Payment which
is not to be

                                       30
<PAGE>

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

                                    ARTICLE V

                                   THE COMPANY

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

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

         (a) the corporation formed by such consolidation or into which the
     Company is merged or the Person which acquires by conveyance, transfer or
     lease substantially all of the assets of the Company as an entirety shall
     be organized and validly existing under the laws of the United States of
     America or any state thereof or the District of Columbia and a "citizen of
     the United States" (as defined in Section 40102(a)(15) of Title 49 of the
     United States Code) holding an air carrier operating certificate issued by
     the Federal Aviation Administration, or any successor agency thereto (the
     "FAA"), pursuant to Chapter 447 of Title 49, United States Code,
     authorizing the operation in air transportation of aircraft capable of
     carrying 10 or more individuals or 6,000 pounds or more of cargo pursuant
     to Part 121 of the FAA's regulations (14 CFR Part 121);

         (b) the corporation formed by such consolidation or into which the
     Company is merged or the Person which acquires by conveyance, transfer or
     lease substantially all of the assets of the Company as an entirety shall
     execute and deliver to the Trustee a duly authorized, valid, binding and
     enforceable agreement in form and substance reasonably satisfactory to the
     Trustee containing an assumption by such successor corporation or Person of
     the due and punctual performance and observance of each covenant and
     condition of the Note Documents, the Note Purchase Agreement, the Other
     Pass Through Trust Agreements and this Agreement to be performed or
     observed by the Company;

                                       31
<PAGE>

         (c) immediately after giving effect to such transaction, no Event of
     Default applicable to the Certificates shall have occurred and be
     continuing; and

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

         (e) Upon any consolidation or merger, or any conveyance, transfer or
     lease of substantially all of the assets of the Company as an entirety in
     accordance with this Section 5.02, the successor corporation or Person
     formed by such consolidation or into which the Company is merged or to
     which such conveyance, offer or lease is made shall succeed to, and be
     substituted for, and may exercise every right and power of, the Company
     under this Agreement with the same effect as if such successor corporation
     or Person had been named as the Company herein. No such conveyance,
     transfer or lease of substantially all of the assets of the Company as an
     entirety shall have the effect of releasing the Company or any successor
     corporation or Person which shall theretofore have become such in the
     manner prescribed in this Section 5.02 from its liability in respect of
     this Agreement, the Note Purchase Agreement or any Note Document to which
     it is a party.

         Section 5.03. Rule 144A(d)(4) Information. So long as any of the
Certificates are "restricted securities" within the meaning of Rule 144(a)(3)
under the Securities Act, at any time when the Guarantor is neither subject to
Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), the Company and the Guarantor will provide to any holder of
such restricted securities, or to any prospective purchaser of such restricted
securities designated by a holder, upon the request of such holder or
prospective purchaser, any information required to be delivered to holders and
prospective purchasers of the Certificates pursuant to Rule 144A(d)(4) under the
Securities Act.

                                   ARTICLE VI

                                     DEFAULT

         Section 6.01. Events of Default.

         (a) Exercise of Remedies. Upon the occurrence and during the
continuation of any Indenture Default under any Indenture, the Trustee may, to
the extent it is the Controlling Party at such time (as determined pursuant to
the Intercreditor Agreement), direct the exercise of remedies as provided in the
Intercreditor Agreement.

         (b) Purchase Rights of Certificateholders. By acceptance of its
Certificate, each Certificateholder agrees that at any time after the occurrence
and during the continuation of a Triggering Event:

                                       32
<PAGE>

         (i) each Class B Certificateholder shall have the right to purchase
     all, but not less than all, of the Certificates upon ten days' written
     notice to the Trustee and each other Class B Certificateholder, provided
     that (A) if prior to the end of such ten-day period any other Class B
     Certificateholder notifies such purchasing Class B Certificateholder that
     such other Class B Certificateholder wants to participate in such purchase,
     then such other Class B Certificateholder may join with the purchasing
     Class B Certificateholder to purchase all, but not less than all, of the
     Certificates pro rata based on the Fractional Undivided Interest in the
     Class B Trust held by each such Class B Certificateholder and (B) if prior
     to the end of such ten-day period any other Class B Certificateholder fails
     to notify the purchasing Class B Certificateholder of such other Class B
     Certificateholder's desire to participate in such a purchase, then such
     other Class B Certificateholder shall lose its right to purchase the
     Certificates pursuant to this Section 6.01(b); and

         (ii) each Class C Certificateholder shall have the right (which shall
     not expire upon any purchase of the Certificates pursuant to clause (i)
     above) to purchase all, but not less than all, of the Certificates and the
     Class B Certificates upon ten days' written notice to the Trustee, the
     Class B Trustee and each other Class C Certificateholder, provided that (A)
     if prior to the end of such ten-day period any other Class C
     Certificateholder notifies such purchasing Class C Certificateholder that
     such other Class C Certificateholder wants to participate in such purchase,
     then such other Class C Certificateholder may join with the purchasing
     Class C Certificateholder to purchase all, but not less than all, of the
     Certificates and the Class B Certificates pro rata based on the Fractional
     Undivided Interest in the Class C Trust, taken as a whole, held by each
     such Class C Certificateholder and (B) if prior to the end of such ten-day
     period any other Class C Certificateholder fails to notify the purchasing
     Class C Certificateholder of such other Class C Certificateholder's desire
     to participate in such a purchase, then such other Class C
     Certificateholder shall lose its right to purchase the Certificates
     pursuant to this Section 6.01(b);

         The purchase price with respect to the Certificates shall be equal to
the Pool Balance of the Certificates, together with accrued and unpaid interest
thereon to the date of such purchase, without premium, but including any other
amounts then due and payable to the Certificateholders under this Agreement, the
Intercreditor Agreement, the Escrow Agreement, the Note Purchase Agreement or
any Note Document or on or in respect of the Certificates; provided, however,
that (i) if such purchase occurs after the Record Date with respect to the Final
Withdrawal Date, such purchase price shall be reduced by the aggregate amount of
unused Deposits and interest to be distributed under the Escrow Agreement (which
deducted amounts shall remain distributable to, and may be retained by, the
Certificateholder as of such Record Date) and (ii) if such purchase occurs after
a Record Date but prior to the Distribution Date relating to such Record Date,
such purchase price shall be reduced by the amount to be distributed hereunder
on such related Distribution Date (which deducted amounts shall remain
distributable to, and may be retained by, the Certificateholder as of such
Record Date); provided, further, that no such purchase of Certificates shall be
effective unless the purchaser shall certify to the Trustee that
contemporaneously with such purchase, such purchaser is purchasing, pursuant to
the terms of this Agreement and the Other Pass Through Trust Agreement, the

                                       33
<PAGE>

Certificates and the Class B Certificates which are senior to the securities
held by such purchaser. Each payment of the purchase price of the Certificates
referred to in the first sentence hereof shall be made to an account or accounts
designated by the Trustee and each such purchase shall be subject to the terms
of this Section. Each Certificateholder agrees by its acceptance of its
Certificate that it will, subject to Section 3.04 hereof, upon payment from such
Class B Certificateholder(s) or Class C Certificateholder(s), as the case may
be, of the purchase price set forth in the first sentence of this paragraph,
forthwith sell, assign, transfer and convey to the purchaser thereof (without
recourse, representation or warranty of any kind except for its own acts), all
of the right, title, interest and obligation of such Certificateholder in, this
Agreement, the Escrow Agreement, the Deposit Agreement, the Intercreditor
Agreement, the Liquidity Facility, the Note Documents, the Note Purchase
Agreement and all Certificates and Escrow Receipts held by such
Certificateholder (excluding all right, title and interest under any of the
foregoing to the extent such right, title or interest is with respect to an
obligation not then due and payable as respects any action or inaction or state
of affairs occurring prior to such sale) and the purchaser shall assume all of
such Certificateholder's obligations under this Agreement, the Escrow Agreement,
the Deposit Agreement, the Intercreditor Agreement, the Liquidity Facility, the
Note Documents and the Note Purchase Agreement and all such Certificates and
Escrow Receipts. The Certificates will be deemed to be purchased on the date
payment of the purchase price is made notwithstanding the failure of the
Certificateholders to deliver any Certificates (whether in the form of Physical
Certificates or beneficial interests in Global Certificates) and, upon such a
purchase, (i) the only rights of the Certificateholders will be to deliver the
Certificates to the purchaser and receive the purchase price for such
Certificates and (ii) if the purchaser shall so request such Certificateholder
will comply with all of the provisions of Section 3.04 hereof to enable new
Certificates to be issued to the purchaser in such denominations as it shall
request. All charges and expenses in connection with the issuance of any such
new Certificates shall be borne by the purchaser thereof.

         As used in this Section 6.01(b), the terms "Class B Certificate",
"Class B Certificateholder", "Class B Trust", "Class B Trustee", "Class C
Certificateholder", "Class C Certificate", "Class C Trust" and "Class C
Trustee", shall have the respective meanings assigned to such terms in the
Intercreditor Agreement.

         Section 6.02. Incidents of Sale of Equipment Notes. Upon any sale of
all or any part of the Equipment Notes made either under the power of sale given
under this Agreement or otherwise for the enforcement of this Agreement, the
following shall be applicable:

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

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

                                       34
<PAGE>

     application of such purchase money, or be in any way answerable for any
     loss, misapplication or non-application thereof.

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

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

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

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

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

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

         Section 6.05. Waiver of Past Defaults. Subject to the Intercreditor
Agreement and the rights of the Controlling Party thereunder, the
Certificateholders holding Certificates evidencing Fractional Undivided
Interests aggregating not less than a majority in interest in the Trust (i) may
on behalf of all of the Certificateholders waive any past Event of Default
hereunder and its consequences or (ii) if the Trustee is the Controlling Party,
may direct the Trustee to

                                       35
<PAGE>

instruct the applicable Loan Trustee to waive any past Indenture Default under
any Indenture and its consequences, and thereby annul any Direction given by
such Certificateholders or the Trustee to such Loan Trustee with respect
thereto, except a default:

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

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

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

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

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

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

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

         (2) Certificateholders holding Certificates evidencing Fractional
     Undivided Interests aggregating not less than 25% of the Trust shall have
     requested the Trustee in writing to institute such action, suit or
     proceeding and shall have offered to the Trustee indemnity as provided in
     Section 7.02(e);

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

                                       36
<PAGE>

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

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

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

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

                                   ARTICLE VII

                                   THE TRUSTEE

         Section 7.01. Notice of Defaults. As promptly as practicable after, and
in any event within 90 days after the occurrence of any default (as such term is
defined below) hereunder actually known to the Trustee, the Trustee shall
transmit by mail to the Company, the related Owner Trustees, the related Loan
Trustees and the Certificateholders in accordance with Section 313(c) of the
Trust Indenture Act, notice of such default hereunder actually known to the
Trustee, unless such default shall have been cured or waived; provided, however,
that, except in the case of a default in the payment of the principal of
(premium, if any) or interest on any Equipment Note, the Trustee shall be
protected in withholding such notice if and so long as the board of directors,
the executive committee or a trust committee of directors and/or Responsible
Officers of the Trustee in good faith determine that the withholding of such
notice is in the interests of the Certificateholders. For the purpose of this
Section, the term "default" means any event that is, or after notice or lapse of
time or both would become, an Event of Default.

                                       37
<PAGE>

         Section 7.02. Certain Rights of Trustee. Subject to the provisions of
Section 315 of the Trust Indenture Act:

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

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

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

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

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

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

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

         (h) the Trustee shall not be liable with respect to any action taken or
     omitted to be taken by it in good faith in accordance with the direction of
     the Certificateholders holding Certificates evidencing Fractional Undivided
     Interests aggregating not less than a majority in interest in the Trust
     relating to the time, method and place of conducting any

                                       38
<PAGE>

     proceeding for any remedy available to the Trustee, or exercising any trust
     or power conferred upon the Trustee, under this Agreement or the
     Intercreditor Agreement;

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

         (j) except during the continuance of an Event of Default, the Trustee
     undertakes and shall be responsible to perform only such duties as are
     specifically set forth herein and no implied covenants or obligations shall
     be read into this Agreement or be enforceable against Trustee.

         Section 7.03. Not Responsible for Recitals or Issuance of Certificates.
The recitals contained herein and in the Certificates, except the certificates
of authentication, shall not be taken as the statements of the Trustee, and the
Trustee assumes no responsibility for their correctness. Subject to Section
7.14, the Trustee makes no representations as to the validity or sufficiency of
this Agreement, the Note Purchase Agreement, any Note Documents, any
Participation Agreement or any Intercreditor Agreement, the Delayed Funding
Implementation Agreement, the Deposit Agreement, the Escrow Agreement and
Equipment Notes or the Certificates, except that the Trustee hereby represents
and warrants that this Agreement has been, and each Certificate, the
Intercreditor Agreement, the Registration Rights Agreement, the Delayed Funding
Implementation Agreement, the Note Purchase Agreement, the Escrow Agreement and
each Certificate will be, executed, authenticated and delivered by one of its
officers who is duly authorized to execute, authenticate and deliver such
document on its behalf.

         Section 7.04. May Hold Certificates. The Trustee, any Paying Agent,
Registrar or any of their Affiliates or any other agent, in their respective
individual or any other capacity, may become the owner or pledgee of
Certificates and subject to Sections 310(b) and 311 of the Trust Indenture Act,
if applicable, may otherwise deal with the Company, the Guarantor, the Owner
Trustees or the Loan Trustees with the same rights it would have if it were not
Trustee, Paying Agent, Registrar or such other agent.

         Section 7.05. Money Held in Trust. Money held by the Trustee or the
Paying Agent in trust hereunder need not be segregated from other funds except
to the extent required herein or by law and neither the Trustee nor the Paying
Agent shall have any liability for interest upon any such moneys except as
provided for herein.

         Section 7.06. Compensation and Reimbursement. The Company agrees with
respect to the trustee in its individual capacity:

         (1) to pay, or cause to be paid, to the Trustee compensation (as set
     out in a separate fee agreement between the Trustee and the Company) for
     all services rendered by it hereunder (which compensation shall not be
     limited by any provision of law in regard to the compensation of a trustee
     of an express trust);

                                       39
<PAGE>

         (2) except as otherwise expressly provided herein to reimburse, or
     cause to be reimbursed, the Trustee upon its request for all reasonable
     out-of-pocket expenses, disbursements and advances incurred or made by the
     Trustee in accordance with any provision of this Agreement or the
     Intercreditor Agreement (including the reasonable compensation and the
     expenses and disbursements of its agents and counsel), except any such
     expense, disbursement or advance as may be attributable to its negligence,
     willful misconduct or bad faith or as may be incurred due to the Trustee's
     breach of its representations and warranties set forth in Section 7.14;

         (3) to indemnify, or cause to be indemnified, the Trustee for, and to
     hold it harmless against, any loss, liability or expense (other than for or
     with respect to any tax) incurred without negligence, willful misconduct or
     bad faith, on its part, arising out of or in connection with the acceptance
     or administration of this Trust, including the costs and expenses of
     defending itself against any claim or liability in connection with the
     exercise or performance of any of its powers or duties hereunder, except
     for any such loss, liability or expense incurred by reason of the Trustee's
     breach of its representations and warranties set forth in Section 7.14. The
     Trustee shall notify the Company and the Guarantor promptly of any claim
     for which it may seek indemnity. The Company and the Guarantor shall defend
     the claim and the Trustee shall cooperate in the defense. The Trustee may
     have separate counsel with the consent of the Company and the Guarantor and
     the Company and the Guarantor will pay the reasonable fees and expenses of
     such counsel. Neither the Company nor the Guarantor need pay for any
     settlement made without its consent; and

         (4) to indemnify, or cause to be indemnified, the Trustee, solely in
     its individual capacity, for, and to hold it harmless against, any tax
     (except to the extent the Trustee actually receives reimbursement therefor
     pursuant to the next paragraph, provided that no indemnification shall be
     available with respect to any tax attributable to the Trustee's
     compensation for serving as such) incurred without negligence, willful
     misconduct or bad faith, on its part, arising out of or in connection with
     the acceptance or administration of this Trust, including any costs and
     expenses incurred in contesting the imposition of any such tax. The
     Trustee, in its individual capacity, shall notify the Company and the
     Guarantor promptly of any claim for any tax for which it may seek
     indemnity. The Trustee shall permit the Company and the Guarantor to
     contest the imposition of such tax and the Trustee, in its individual
     capacity, shall cooperate in the defense. The Trustee, in its individual
     capacity, may have separate counsel with the consent of the Company and the
     Guarantor and the Company and the Guarantor will pay the reasonable fees
     and expenses of such counsel. Neither the Company nor the Guarantor need
     pay for any taxes paid, in settlement or otherwise, without its consent.

         (5) The Trustee shall be entitled to reimbursement from, and shall have
     a lien prior to the Certificates upon, the Trust Property for any tax
     incurred without negligence, bad faith or willful misconduct on its part,
     arising out of or in connection with the acceptance or administration of
     such Trust (other than any tax attributable to the Trustee's compensation
     for serving as such), including any costs and expenses incurred in
     contesting the imposition of any such tax. The Trustee shall notify the
     Company of any

                                       40
<PAGE>

     claim for any tax for which it may seek reimbursement. The Trustee shall
     cooperate in the contest by the Company of any such claim. If the Trustee
     reimburses itself from the Trust Property for any such tax it will within
     30 days mail a brief report setting forth the amount of such tax and the
     circumstances thereof to all Certificateholders as their names and
     addresses appear in the Register.

         As security for the performance of the obligations of the Company under
this Section the Trustee shall have a lien prior to the Certificates upon the
Trust Property.

         Section 7.07. Corporate Trustee Required, Eligibility. There shall at
all times be a Trustee hereunder which shall be eligible to act as a trustee
under Section 310(a) of the Trust Indenture Act and shall have a combined
capital and surplus of at least $75,000,000 (or a combined capital and surplus
in excess of $5,000,000 and the obligations of which, whether now in existence
or hereafter incurred, are fully and unconditionally guaranteed by a corporation
organized and doing business under the laws of the United States, any State or
Territory thereof or of the District of Columbia that has a combined capital and
surplus of at least $75,000,000). If such corporation publishes reports of
conditions at least annually, pursuant to law or to the requirements of federal,
state, territorial or District of Columbia supervising or examining authority,
then for the purposes of this Section 7.07, the combined capital and surplus of
such corporation shall be deemed to be its combined capital and surplus as set
forth in its most recent report of conditions so published.

         In case at any time the Trustee shall cease to be eligible in
accordance with the provisions of this Section 7.07 to act as Trustee, the
Trustee shall resign immediately as Trustee in the manner and with the effect
specified in Section 7.08.

         Section 7.08. Resignation and Removal: Appointment of Successor.

         (a) No resignation or removal of the Trustee and no appointment of a
successor Trustee pursuant to this Article shall become effective until the
acceptance of appointment by the successor Trustee under Section 7.09.

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

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

         (d) If at any time:

                                       41
<PAGE>

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

         (2) the Trustee shall cease to be eligible under Section 7.07 and shall
     fail to resign after written request therefor by the Company or by any such
     Certificateholder; or

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

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

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

         (f) If the Trustee shall resign, be removed or become incapable of
acting as trustee or if a vacancy shall occur in the office of the Trustee for
any cause, the Company shall promptly appoint a successor Trustee. If, within 90
days after such resignation, removal or incapability, or other occurrence of
such vacancy, a successor Trustee shall be appointed by Direction of the
Certificateholders holding Certificates evidencing Fractional Undivided
Interests aggregating not less than a majority in interest in the Trust
delivered to the Company, the Owner Trustees, the Loan Trustee and the retiring
Trustee, the successor Trustees so appointed shall, with the approval of the
Company, which approval shall not be unreasonably withheld, forthwith upon its
acceptance of such appointment, become the successor Trustee and supersede the
successor Trustee appointed as provided above. If no successor Trustee shall
have been so appointed as provided above and accepted appointment in the manner
hereinafter provided, the resigning Trustee or any Certificateholder who has
been a bona fide Certificateholder for at least six months may, on behalf of
himself and all others similarly situated, petition any court of competent
jurisdiction for the appointment of a successor Trustee.

         (g) The successor Trustee of a Trust shall give notice of the
resignation and removal of the Trustee and appointment of the successor Trustee
by mailing written notice of

                                       42
<PAGE>

such event by first-class mail, postage prepaid, to the Certificateholders as
their names and addresses appear in the Register. Each notice shall include the
name of such successor Trustee and the address of its Corporate Trust Office.

         Section 7.09. Acceptance of Appointment by Successor. Every successor
Trustee appointed hereunder shall execute, acknowledge and deliver to the
Company and to the retiring Trustee an instrument accepting such appointment,
and thereupon the resignation or removal of the retiring Trustee shall become
effective and such successor Trustee, without any further act, deed or
conveyance, shall become vested with all the rights, powers, trusts and duties
of the retiring Trustee; but, on request of the Company or the successor
Trustee, such retiring Trustee shall execute and deliver an instrument
transferring to such successor Trustee all such rights, powers and trusts of the
retiring Trustee and shall duly assign, transfer and deliver to such successor
Trustee all property and money held by such retiring Trustee, subject
nevertheless to its lien, if any, provided for in Section 7.06. Upon request of
any such successor Trustee, the Company, the retiring Trustee and such successor
Trustee shall execute and deliver any and all instruments containing such
provisions as shall be necessary or desirable to transfer and confirm to, and
for more fully and certainly vesting in, such successor Trustee all such rights,
powers and trusts.

         No successor Trustee shall accept its appointment unless at the time of
such acceptance such successor Trustee shall be qualified and eligible under
this Article.

         Section 7.10. Merger, Conversion, Consolidation or Succession to
Business. Any corporation into which the Trustee may be merged or converted or
with which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any
corporation succeeding to all or substantially all of the corporate trust
business of the Trustee, shall be the successor of the Trustee hereunder,
provided such corporation shall be otherwise qualified and eligible under this
Article, without the execution or filing of any paper or any further act on the
part of any of the parties hereto. In case any Certificates shall have been
executed or authenticated, but not delivered, by the Trustee then in office, any
successor by merger, conversion or consolidation to such authenticating Trustee
may adopt such execution or authentication and deliver the Certificates so
executed or authenticated with the same effect as if such successor Trustee had
itself executed or authenticated such Certificates.

         Section 7.11. Maintenance of Agencies.

         (a) There shall at all times be maintained an office or agency where
Certificates may be presented or surrendered for registration of transfer or for
exchange, and for payment thereof and where notices and demands to or upon the
Trustee in respect of such Certificates may be served. Presentations and demands
may be made and notices may be served at the Corporate Trust Office of the
Trustee.

         (b) There shall at all times be a Registrar and a Paying Agent
hereunder with respect to the Certificates. Each such Authorized Agent shall be
a bank or trust company, shall be a corporation organized and doing business
under the laws of the United States or any state,

                                       43
<PAGE>

with a combined capital and surplus of at least $75,000,000, or a corporation
having a combined capital and surplus in excess of $5,000,000 the obligations of
which are guaranteed by a corporation organized and doing business under the
laws of the United States or any state, with a combined capital and surplus of
at least $75,000,000, and shall be authorized under such laws to exercise
corporate trust powers, subject to supervision by federal or state authorities.
The Trustee shall initially be the Paying Agent and, as provided in Section
3.04, Registrar hereunder with respect to the Certificates. Each Registrar shall
furnish to the Trustee, at stated intervals of not more than six months, and at
such other times as the Trustee may request in writing, a copy of the Register
maintained by such Registrar.

         (c) Any corporation into which any Authorized Agent may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger, consolidation or conversion to which any Authorized Agent,
shall be a party, or any corporation succeeding to the corporate trust business
of any Authorized Agent, shall be the successor of such Authorized Agent
hereunder, if such successor corporation is otherwise eligible under this
Section, without the execution or filing of any paper or any further act on the
part of the parties hereto or such Authorized Agent or such successor
corporation.

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

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

         Section 7.12. Money for Certificate Payments to Be Held in Trust. All
moneys deposited with any Paying Agent for the purpose of any payment on
Certificates shall be deposited and held in trust for the benefit of the
Certificateholders entitled to such payment, subject to the provisions of this
Section. Moneys so deposited and held in trust shall constitute a separate trust
fund for the benefit of the Certificateholders with respect to which such money
was deposited.

         The Trustee may at any time, for the purpose of obtaining the
satisfaction and discharge of this Agreement or for any other purpose, direct
any Paying Agent to pay to the

                                       44
<PAGE>

Trustee all sums held in trust by such Paying Agent, such sums to be held by the
Trustee upon the same trusts as those upon which such sums were held by such
Paying Agent and, upon such payment by any Paying Agent to the Trustee, such
Paying Agent shall be released from all further liability with respect to such
money.

         Section 7.13. Registration of Equipment Notes in Name of Subordination
Agent. The Trustee agrees that all Equipment Notes to be purchased by the Trust
shall be issued in the name of the Subordination Agent or its nominee and held
by the Subordination Agent in trust for the benefit of the Certificateholders,
or, if not so held, the Subordination Agent or its nominee shall be reflected as
the owner of such Equipment Notes in the register of the issuer of such
Equipment Notes.

         Section 7.14. Representations and Warranties of Trustee. The Trustee
hereby represents and warrants that:

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

         (b) the Trustee has full corporate power, authority and legal right to
     execute, deliver and perform this Agreement, the Intercreditor Agreement,
     the Registration Rights Agreement, the Delayed Funding Implementation
     Agreement, the Escrow Agreement, the Note Purchase Agreement and the Note
     Documents to which it is a party and has taken all necessary corporate
     action to authorize the execution, delivery and performance by it of this
     Agreement, the Intercreditor Agreement, the Registration Rights Agreement,
     the Delayed Funding Implementation Agreement, the Escrow Agreement, the
     Note Purchase Agreement and the Note Documents to which it is a party;

         (c) the execution, delivery and performance by the Trustee of this
     Agreement, the Intercreditor Agreement, the Registration Rights Agreement,
     the Delayed Funding Implementation Agreement, the Escrow Agreement, the
     Note Purchase Agreement and the Note Documents to which it is a party (i)
     will not violate any provision of the law of the State of Delaware or
     governing the banking and trust powers of the Trustee or any order, writ,
     judgment, or decree of any court, arbitrator, or governmental authority
     applicable to the Trustee or any of its assets, (ii) will not violate any
     provision of the articles of association or by-laws of the Trustee, or
     (iii) will not violate any provision of, or constitute, with or without
     notice or lapse of time, a default under, or result in the creation or
     imposition of any lien on any properties included in the Trust Property
     pursuant to the provisions of, any mortgage, indenture, contract, agreement
     or other undertaking to which it is a party, which violation, default or
     lien could reasonably be expected to have an adverse effect on the
     Trustee's performance or ability to perform its duties hereunder or
     thereunder or on the transactions contemplated herein or therein;

         (d) the execution, delivery and performance by the Trustee of this
     Agreement, the Intercreditor Agreement, the Registration Rights Agreement,
     the Delayed Funding Implementation Agreement, the Escrow Agreement, the
     Note Purchase Agreement and the Note Documents to which it is a party will
     not require the authorization, consent, or

                                       45
<PAGE>

     approval of, the giving of notice to, the filing or registration with, or
     the taking of any other action in respect of, any governmental authority or
     agency of the State of Delaware or the United States regulating the banking
     and corporate trust activities of the Trustee; and

         (e) this Agreement, the Intercreditor Agreement, the Delayed Funding
     Implementation Agreement, the Escrow Agreement, the Note Purchase Agreement
     and the Note Documents to which it is a party have been duly executed and
     delivered by the Trustee and constitute the legal, valid, and binding
     agreements of the Trustee, enforceable against it in accordance with their
     respective terms, provided that enforceability may be limited by (i)
     applicable bankruptcy, insolvency, reorganization, moratorium or similar
     laws affecting the rights of creditors generally and (ii) general
     principles of equity, regardless of whether applied in a proceeding at
     equity or at law.

         Section 7.15. Withholding Taxes, Information Reporting. (a) The
Trustee, as trustee of the grantor trust created by this Agreement, shall
exclude and withhold from each distribution of principal, premium, if any, and
interest and other amounts due under this Agreement or under the Certificates
any and all federal United States withholding taxes applicable thereto as
required by law. The Trustee agrees to act as such withholding agent and, in
connection therewith, whenever any taxes or similar charges are required to be
withheld with respect to any amounts paid by or on behalf of the Trustee in
respect of the Certificates, to withhold such amounts and timely pay the same to
the authority in the name of and on behalf of the Certificateholders, that it
will file any necessary withholding tax returns or statements when due, and
that, as promptly as possible after the payment thereof, it will deliver to each
such Certificateholder necessary documentation showing the payment thereof,
together with such additional documentary evidence as such Certificateholders
may reasonably request from time to time. The Trustee agrees to file any other
information reports as it may be required to file under United States law. In
the event that any withholding tax is imposed on a payment to a
Certificateholder, such tax shall reduce the amount otherwise distributable to
the Certificateholder in accordance with this Section.

         (b) Any Certificateholder which is organized under the laws of a
jurisdiction outside the United States shall, on or prior to the date such
Certificateholder becomes a Certificateholder, (a) so notify the Trustee, (b)(i)
provide the Trustee with Internal Revenue Service form W-8BEN, W-8ECI, W-8IMY or
W-8EXP, or any substitute or successor form, or (ii) notify the Trustee that it
is not entitled to an exemption from United States withholding tax or a
reduction in the rate thereof on payments of interest. Any such
Certificateholder agrees by its acceptance of a Trust Security, on an ongoing
basis, to provide like certification should any previously provided form become
invalid and to notify the Trustee should subsequent circumstances arise
affecting the information provided the Trustee in clauses (a) and (b) above. The
Trustee shall be fully protected in relying upon, and each Certificateholder by
its acceptance of a Security agrees to indemnify and hold the Trustee harmless
against all claims or liability of any kind arising in connection with or
related to the Trustee's reliance upon any documents, forms or information
provided by any Certificateholder to the Trustee. In addition, if the Trustee
has not withheld taxes on any payment made to any Certificateholder, and the
Trustee is subsequently required to remit to any taxing authority any such
amount not withheld, such

                                       46
<PAGE>

Certificateholder shall return such amount to the Trustee upon written demand by
the Trustee. The Trustee shall be liable only for direct (but not consequential)
damages to any Certificateholder due to the Trustee's violation of the Code and
only to the extent such liability is caused by the Trustee's gross negligence or
willful misconduct.

         (c) The Trustee may satisfy certain of its obligations with respect to
this Agreement by retaining, at the expense of the Company, a firm of
independent public accountants (the "Accountants") which shall (i) be
responsible for all tax filing requirements and (ii) perform the obligations of
the Trustee in respect of tax filing requirements. The Trustee shall be deemed
to have discharged its tax filing obligations under this Agreement upon its
retention of the Accountants, and, if the Trustee shall have selected the
Accountants in good faith and without gross negligence or with the prior
approval of or notice to the Company, the Trustee shall not have any liability
with respect to the default or misconduct of the Accountants.

         (d) The Trustee, at the request and instruction of the Company, will
make such United States federal income tax elections as may be necessary to
prevent the Trust from being classified for federal income tax purposes as an
association taxable as a corporation.

         Section 7.16. Trustee's Liens. The Trustee in its individual capacity
agrees that it will at its own cost and expense promptly take any action as may
be necessary to duly discharge and satisfy in full any mortgage, pledge, lien,
charge, encumbrance, security interest or claim ("Trustee's Liens") on or with
respect to the Trust Property which is attributable to the Trustee either (i) in
its individual capacity and which is unrelated to the transactions contemplated
by this Agreement, the Registration Rights Agreement, the Intercreditor
Agreement, the Participation Agreements, the Note Purchase Agreement or the Note
Documents, or (ii) in its individual capacity and which arises out of acts or
omissions of the Trustee in its individual capacity which are not contemplated
by this Agreement.

         Section 7.17. Preferential Collection of Claims. The Trustee shall
comply with Section 311(a) of the Trust Indenture Act, excluding any creditor
relationship listed in Section 311(b) of the Trust Indenture Act. If the Trustee
shall resign or be removed as Trustee, it shall be subject to Section 311(a) of
the Trust Indenture Act to the extent provided therein.

                                  ARTICLE VIII

                CERTIFICATEHOLDERS' LISTS AND REPORTS BY TRUSTEE

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

                                       47
<PAGE>

however, that no such list need be furnished for so long as a copy of the
Register is being furnished to the Trustee pursuant to Section 7.11.

         Section 8.02. Preservation of Information; Communications to
Certificateholders. The Trustee shall preserve, in as current a form as is
reasonably practicable, the names and addresses of Certificateholders contained
in the most recent list furnished to the Trustee as provided in Section 7.11 or
Section 8.01, as the case may be, and the names and addresses of
Certificateholders received by the Trustee in its capacity as Registrar, if so
acting. The Trustee may destroy any list furnished to it as provided in Section
7.11 or Section 8.01, as the case may be, upon receipt of a new list so
furnished.

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

         Section 8.04. Reports by the Guarantor and Company. The Guarantor and
the Company each shall:

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

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

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

                                       48
<PAGE>

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

                                   ARTICLE IX

                             SUPPLEMENTAL AGREEMENTS

         Section 9.01. Supplemental Agreements Without Consent of
Certificateholders. Without the consent of the Certificateholders, the Guarantor
and the Company may, and the Trustee (subject to Section 9.03) shall, at any
time and from time to time, enter into one or more agreements supplemental
hereto or, if applicable, to the Indenture, the Lease, the Participation
Agreement, Intercreditor Agreement, the Escrow Agreement, the Note Purchase
Agreement, the Deposit Agreement, the Registration Rights Agreement, the Delayed
Funding Implementation Agreement or the Liquidity Facility in form satisfactory
to the Trustee, for any of the following purposes:

         (1) to evidence the succession of another corporation to the Company or
     the Guarantor and the assumption by any such successor of the covenants of
     the Company or the Guarantor contained herein or in each of the other
     related documents to which the Company or the Guarantor is a party or of
     the Company's or the Guarantor's obligations under the Note Purchase
     Agreement, the Registration Rights Agreement, the Delayed Funding
     Implementation Agreement or the Liquidity Facility; or

         (2) to add to the covenants of the Guarantor or the Company for the
     benefit of the Certificateholders, or to surrender any right or power in
     this Agreement, the Note Purchase Agreement, the Registration Rights
     Agreement, the Delayed Funding Implementation Agreement or the Liquidity
     Facility conferred upon the Guarantor or the Company; or

         (3) to correct or supplement any provision in this Agreement, the
     Intercreditor Agreement, the Escrow Agreement, the Note Purchase Agreement,
     the Deposit Agreement, the Registration Rights Agreement, the Delayed
     Funding Implementation Agreement or the Liquidity Facility which may be
     defective or inconsistent with any other provision herein or therein or to
     cure any ambiguity or correct any mistake or to modify any other provision
     with respect to matters or questions arising under this Agreement, the
     Intercreditor Agreement, the Escrow Agreement, the Note Purchase Agreement,
     the Deposit Agreement, the Registration Rights Agreement, the Delayed
     Funding Implementation Agreement or the Liquidity Facility, provided that
     any such action shall not materially adversely affect the interests of the
     Certificateholders; or to cure any ambiguity or correct any mistake in such
     documents, or as provided in the Intercreditor Agreement, to give effect to
     or provide for a Replacement Liquidity Facility (as defined in the
     Intercreditor Agreement); or

                                       49
<PAGE>

         (4) to comply with any requirement of the SEC, any applicable law,
     rules or regulations of any exchange or quotation system on which the
     Certificates are listed, or any regulatory body or the Registration Rights
     Agreement or the Delayed Funding Implementation Agreement to effectuate the
     Exchange Offer; or

         (5) to modify, eliminate or add to the provisions of this Agreement to
     such extent as shall be necessary to qualify, or to continue the
     qualification of, this Agreement (including any supplemental agreement)
     under the Trust Indenture Act, or under any similar Federal statute
     hereafter enacted, and to add to this Agreement such other provisions as
     may be expressly permitted by the Trust Indenture Act, excluding, however,
     the provisions referred to in Section 316(a)(2) of the Trust Indenture Act
     as in effect at the date as of which this instrument was executed or any
     corresponding provision in any similar Federal statute hereafter enacted;
     or

         (6) to evidence and provide for the acceptance of appointment under
     this Agreement by the Trustee of a successor Trustee and to add to or
     change any of the provisions of this Agreement as shall be necessary to
     provide for or facilitate the administration of the Trust, pursuant to the
     requirements of Section 7.09; or

         (7) if with respect to any Owned Aircraft any "Class C" pass through
     certificates are issued, to modify, eliminate or add to the provisions of
     this Agreement to the extent necessary to provide for the subordination of
     such "Class C" pass through certificates to the Certificates; or

         (8) to modify or eliminate provisions relating to the transfer or
     exchange of Exchange Certificates or the Initial Certificates upon the
     consummation of the Exchange Offer (as defined in the Registration Rights
     Agreement) or effectiveness of the Shelf Registration Statement or the
     Exchange Offer Registration Statement;

provided that no such action described in this Section 9.01 shall adversely
affect the interests of the Certificateholders.

         Notwithstanding any provision of this Agreement, upon and
simultaneously with the issuance of the Additional Certificates (as defined in
the Delayed Funding Implementation Agreement), this Agreement shall be forthwith
amended as provided in the Delayed Funding Implementation Agreement, without any
need for further action on the part of any party hereto and without any consent
of any of the Certificateholders.

         Section 9.02. Supplemental Agreements with Consent of
Certificateholders. With the consent of the Certificateholders holding
Certificates evidencing Fractional Undivided Interests aggregating not less than
a majority in interest in the Trust, by Direction of said Certificateholders
delivered to the Guarantor, the Company and the Trustee, the Guarantor and the
Company may (with the consent of the Owner Trustees, if any, which consent shall
not be unreasonably withheld), and the Trustee (subject to Section 9.03) shall,
enter into an agreement or agreements supplemental hereto for the purpose of
adding any provisions to or changing in any manner or eliminating any of the
provisions of this Agreement, the Intercreditor Agreement,

                                       50
<PAGE>

the Registration Rights Agreement, the Delayed Funding Implementation Agreement,
the Escrow Agreement, the Note Purchase Agreement, the Deposit Agreement or the
Liquidity Facility to the extent applicable to such Certificateholders or of
modifying in any manner the rights and obligations of such Certificateholders
under this Agreement, the Intercreditor Agreement, the Liquidity Facility, the
Registration Rights Agreement, the Delayed Funding Implementation Agreement, the
Escrow Agreement, the Deposit Agreement or the Note Purchase Agreement;
provided, however, that no such supplemental agreement shall, without the
consent of the Certificateholder of each Outstanding Certificate affected
thereby:

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

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

         (3) alter the priority of distributions specified in the Intercreditor
     Agreement; or

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

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

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

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

         Section 9.04. Execution of Supplemental Agreements. In executing, or
accepting the additional trusts created by, any supplemental agreement permitted
by this Article or the modifications thereby of the trust created by this
Agreement, the Trustee shall be entitled to receive, and shall be fully
protected in relying upon, written advice of counsel or an Opinion of

                                       51
<PAGE>

Counsel stating that the execution of such supplemental agreement is authorized
or permitted by this Agreement.

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

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

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

                                    ARTICLE X

                   AMENDMENTS TO INDENTURES AND NOTE DOCUMENTS

         Section 10.01. Amendments and Supplements to Indentures and Other Note
Documents. In the event that the Trustee, as holder (or beneficial owner through
the Subordination Agent) of any Equipment Note in trust for the benefit of the
Certificateholders or as Controlling Party under the Intercreditor Agreement,
receives (directly or indirectly through the Subordination Agent) a request for
a consent to any amendment, modification, waiver or supplement under any
Indenture, any other Note Document, any Equipment Note, the Note Purchase
Agreement or any other related document, the Trustee shall forthwith send a
notice of such proposed amendment, modification, waiver or supplement to each
Certificateholder registered on the Register as of the date of such notice. The
Trustee shall request from the Certificateholders a Direction as to (a) whether
or not to take or refrain from taking (or direct the Subordination Agent to take
or refrain from taking) any action which a holder of such Equipment Note has the
option to direct, (b) whether or not to give or execute (or direct the
Subordination Agent to give or execute) any waivers, consents, amendments,
modifications or supplements as a holder of such Equipment Note or a Controlling
Party and (c) how to vote (or direct the Subordination Agent to vote) any
Equipment Note if a vote has been called for with respect thereto. Provided such
a request for Certificateholder Direction shall have been made, in directing any
action or casting any vote or giving any consent as the holder of any Equipment
Note (or in directing the Subordination Agent in any of the foregoing), (i)
other than as Controlling Party, the Trustee shall vote for or give consent to
any such action with respect to such Equipment Note in the same proportion as
that of (A) the aggregate face amounts of all Certificates actually voted in
favor of or for giving consent to such action by such Direction of
Certificateholders to (B) the aggregate face amount of all Outstanding
Certificates and (ii) as Controlling Party, the Trustee shall vote as directed
in such Certificateholder Direction by the

                                       52
<PAGE>

Certificateholders evidencing a Fractional Undivided Interest aggregating not
less than a majority in interest in the Trust. For purposes of the immediately
preceding sentence, a Certificate shall have been "actually voted" if the Holder
of such Certificate has delivered to the Trustee an instrument evidencing such
Holder's consent to such Direction prior to two Business Days before the Trustee
directs such action or casts such vote or gives such consent. Notwithstanding
the foregoing, but subject to Section 6.04 and the Intercreditor Agreement, the
Trustee may, in its own discretion and at its own direction, consent and notify
the relevant Loan Trustee of such consent (or direct the Subordination Agent to
consent and notify the Loan Trustee of such consent) to any amendment,
modification, waiver or supplement under the relevant Indenture, any other Note
Document, any Equipment Note, the Note Purchase Agreement or any other related
document, if an Event of Default hereunder shall have occurred and be
continuing, or if such amendment, modification, waiver or supplement will not
materially adversely affect the interests of the Certificateholders.

                                   ARTICLE XI

                              TERMINATION OF TRUST

         Section 11.01. Termination of the Trust. The respective obligations and
responsibilities of the Company, the Guarantor and the Trustee with respect to
the Trust shall terminate upon distribution to all Holders of the Certificates
and the Trustee of all amounts required to be distributed to them pursuant to
this Agreement and the disposition of all property held as part of the Trust
Property; provided, however, that in no event shall the Trust continue beyond
one hundred ten (110) years following the date of the earliest execution of this
Agreement.

         Notice of such termination, specifying the Regular Distribution Date
(or Special Distribution Date, as the case may be) upon which the
Certificateholders may surrender their Certificates to the Trustee for payment
of the final distribution and cancellation, shall be mailed promptly, upon
notice to the Trustee, by the Trustee to Certificateholders not earlier than the
60th day and not later than the 20th day next preceding such final distribution
specifying (A) the Regular Distribution Date (or Special Distribution Date, as
the case may be) upon which the proposed final payment of the Certificates will
be made upon presentation and surrender of Certificates at the office or agency
of the Trustee therein specified, (B) the amount of any such proposed final
payment, and (C) that the Record Date otherwise applicable to such Regular
Distribution Date (or Special Distribution Date, as the case may be) is not
applicable, payments being made only upon presentation and surrender of the
Certificates at the office or agency of the Trustee therein specified. The
Trustee shall give such notice to the Registrar at the time such notice is given
to Certificateholders. Upon presentation and surrender of the Certificates in
accordance with such notice, the Trustee shall cause to be distributed to
Certificateholders amounts distributable on such final payments.

         In the event that all of the Certificateholders shall not surrender
their Certificates for cancellation within six months after the date specified
in the above-mentioned written notice, the Trustee shall give a second written
notice to the remaining Certificateholders to surrender their Certificates for
cancellation and receive the final distribution with respect thereto. No

                                       53
<PAGE>

additional interest shall accrue on the Certificates after the Regular
Distribution Date (or Special Distribution Date, as the case may be). In the
event that any money held by the Trustee for the payment of distributions on the
Certificates shall remain unclaimed for two years (or such lesser time as the
Trustee shall be satisfied, after sixty days' notice from the Company, is one
month prior to the escheat period provided under applicable law) after the final
distribution date with respect thereto, the Trustee shall pay to each Loan
Trustee the appropriate amount of money relating to such Loan Trustee and shall
give written notice thereof to the related Owner Trustees, Owner Participants
and the Company.

                                   ARTICLE XII

                            MISCELLANEOUS PROVISIONS

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

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

         Section 12.03. Certificates Nonassessable and Fully Paid. Subject to
Section 12.02, Certificateholders shall not be personally liable for obligations
of the Trust, the Fractional Undivided Interests represented by the Certificates
shall be nonassessable for any losses or expenses of the Trust or for any reason
whatsoever, and Certificates upon authentication thereof by the Trustee pursuant
to Section 3.03 are and shall be deemed fully paid. No Certificateholder shall
have any right (except as expressly provided herein) to vote or in any manner
otherwise control the operation and management of the Trust Property, the Trust,
or the obligations of the parties hereto, nor shall anything set forth herein,
or contained in the terms of the Certificates, be construed so as to constitute
the Certificateholders from time to time as partners or members of an
association.

         Section 12.04. Notices. (a) Unless otherwise specifically provided
herein, all notices required under the terms and provisions of this Agreement
shall be in English and in writing, and any such notice may be given by United
States mail, courier service, telecopy (confirmed by telephone or in writing in
the case of notice by telecopy) or any other customary means of communication,
and any such notice shall be effective upon receipt, if to the Company or the
Guarantor, to:

         American Trans Air, Inc.
         7337 West Washington Street
         Indianapolis International Airport
         Indianapolis, Indiana 06927

                                       54
<PAGE>

         Attention: Executive Vice President and Chief Financial Officer
         Facsimile: (317) 240-7087

         if to the Trustee, to:

         Wilmington Trust Company
         Rodney Square North
         1100 North Market Street
         Wilmington, Delaware 19890
         Attention: Corporate Trust Administration
         Facsimile: (302) 636-4140

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

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

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

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

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

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

         Section 12.05. Governing Law. THIS AGREEMENT HAS BEEN DELIVERED IN THE
STATE OF NEW YORK AND THIS AGREEMENT AND THE CERTIFICATES SHALL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF

                                       55
<PAGE>

THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES
HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

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

         Section 12.07. Effect of Headings and Table of Contents. The Article
and Section headings herein and the Table of Contents are for convenience only
and shall not affect the construction hereof.

         Section 12.08. Successors and Assigns. All covenants, agreements,
representations and warranties in this Agreement by the Trustee, the Guarantor
and the Company shall bind and, to the extent permitted hereby, shall inure to
the benefit of and be enforceable by their respective successors and assigns,
whether so expressed or not.

         Section 12.09. Benefits of Agreement. Nothing in this Agreement or in
the Certificates, express or implied, shall give to any Person, other than the
parties hereto and their successors hereunder, the Certificateholders and the
Liquidity Providers, any benefit or any legal or equitable right, remedy or
claim under this Agreement.

         Section 12.10. Legal Holidays. In any case where any Regular
Distribution Date or Special Distribution Date relating to any Certificate shall
not be a Business Day, then (notwithstanding any other provision of this
Agreement) payment need not be made on such date, but may be made on the next
succeeding Business Day with the same force and effect as if made on such
Regular Distribution Date or Special Distribution Date, and no interest shall
accrue during the intervening period.

         Section 12.11. Counterparts. For the purpose of facilitating the
execution of this Agreement and for other purposes, this Agreement may be
executed simultaneously in any number of counterparts, each of which
counterparts shall be deemed to be an original, and all of which counterparts
shall constitute but one and the same instrument.

         Section 12.12. Communication by Certificateholders with Other
Certificateholders. Certificateholders may communicate with other
Certificateholders with respect to their rights under this Agreement or the
Certificates pursuant to Section 312(b) of the Trust Indenture Act. The Company,
the Guarantor, the Trustee and any and all other persons benefited by this
Agreement shall have the protection afforded by Section 312(c) of the Trust
Indenture Act.

         Section 12.13. Intention of Parties. The parties hereto intend that the
Trust be classified for U.S. federal income tax purposes as a grantor trust
under Subpart E, Part I of

                                       56
<PAGE>

Subchapter J of the Internal Revenue Code of 1986, as amended, and not as a
trust or association taxable as a corporation or as a partnership. Each
Certificateholder, by its acceptance of its Certificate or a beneficial interest
therein, agrees to treat the Trust as a grantor trust for all U.S. federal,
state and local income tax purposes. The powers granted and obligations
undertaken pursuant to this Agreement shall be so construed so as to further
such intent.

                                       57
<PAGE>

         IN WITNESS WHEREOF, the Guarantor, the Company and the Trustee have
caused this Agreement to be duly executed by their respective officers, all as
of the day and year first written above.

                                             AMTRAN, INC.

                                             By:
                                                --------------------------------
                                                Executive Vice President and
                                                Chief Financial Officer

                                             AMERICAN TRANS AIR, INC.

                                             By:
                                                --------------------------------
                                                Chief Financial Officer

                                             WILMINGTON TRUST COMPANY,

                                             as Trustee

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

                                       58
<PAGE>

                                                                       EXHIBIT A

                               FORM OF CERTIFICATE

REGISTERED
No.________

     [THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF
     1933, AS AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE
     OFFERED OR SOLD WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR
     BENEFIT OF, U.S. PERSONS EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. BY
     ITS ACQUISITION HEREOF, THE HOLDER (1) REPRESENTS THAT (A) IT IS A
     "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A UNDER THE
     SECURITIES ACT), (B) IT IS AN INSTITUTIONAL "ACCREDITED INVESTOR" (AS
     DEFINED IN RULE 501(A)(1), (2), (3) OR (7) OF REGULATION D UNDER THE
     SECURITIES ACT) (AN "INSTITUTIONAL ACCREDITED INVESTOR") OR (C) IT IS NOT A
     U.S. PERSON AND IS ACQUIRING THIS CERTIFICATE IN AN OFFSHORE TRANSACTION IN
     COMPLIANCE WITH REGULATION S UNDER THE SECURITIES ACT, (2) AGREES THAT IT
     WILL NOT, WITHIN THE TIME PERIOD REFERRED TO IN RULE 144(K) UNDER THE
     SECURITIES ACT (OR ANY SUCCESSOR PROVISION), RESELL OR OTHERWISE TRANSFER
     THIS CERTIFICATE EXCEPT (A) TO ATA OR ANY SUBSIDIARY THEREOF, (B) TO A
     QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE
     SECURITIES ACT, (C) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN
     COMPLIANCE WITH RULE 904 UNDER THE SECURITIES ACT, (D) PURSUANT TO THE
     EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT
     (IF AVAILABLE) OR (E) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER
     THE SECURITIES ACT, AND (3) AGREES THAT IT WILL DELIVER TO EACH PERSON TO
     WHOM THIS CERTIFICATE IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT
     OF THIS LEGEND. IN CASE THIS CERTIFICATE IS IN DEFINITIVE FORM, IN
     CONNECTION WITH ANY TRANSFER OF THIS CERTIFICATE WITHIN THE TIME PERIOD
     REFERRED TO IN RULE 144(K) UNDER THE SECURITIES ACT (OR ANY SUCCESSOR
     PROVISION), THE HOLDER MUST CHECK THE APPROPRIATE BOX SET FORTH ON THE
     REVERSE HEREOF RELATING TO THE MANNER OF SUCH TRANSFER AND SUBMIT THIS
     CERTIFICATE TO THE APPLICABLE TRUSTEE. IF THE PROPOSED TRANSFEREE IS AN
     INSTITUTIONAL ACCREDITED INVESTOR OR IS A PURCHASER WHO IS NOT A U.S.
     PERSON, THE HOLDER MUST, PRIOR TO SUCH TRANSFER, FURNISH TO THE TRUSTEE,
     SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS IT MAY
     REASONABLY REQUIRE TO CONFIRM THAT SUCH TRANSFER IS BEING MADE PURSUANT TO
     AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
     REQUIREMENTS OF THE SECURITIES ACT.

                                      A-1
<PAGE>

     THIS LEGEND WILL BE REMOVED UPON THE EARLIER OF THE TRANSFER OF THE
     CERTIFICATES PURSUANT TO CLAUSE 2(E) ABOVE OR UPON ANY TRANSFER OF THE
     CERTIFICATES UNDER RULE 144(K) UNDER THE SECURITIES ACT (OR ANY SUCCESSOR
     PROVISION). AS USED HEREIN, THE TERMS "OFFSHORE TRANSACTION", "UNITED
     STATES" AND "U.S. PERSON" HAVE THE MEANINGS GIVEN TO THEM BY REGULATION S
     UNDER THE SECURITIES ACT. THE PASS THROUGH TRUST AGREEMENT CONTAINS A
     PROVISION REQUIRING THE TRUSTEE TO REFUSE TO REGISTER ANY TRANSFER OF THIS
     CERTIFICATE IN VIOLATION OF THE FOREGOING RESTRICTIONS; AND]1

     [BY ITS ACQUISITION HEREOF, THE HOLDER REPRESENTS THAT EITHER (A) NO PLAN
     ASSETS AND NO NON-ERISA PLAN ASSETS HAVE BEEN USED TO PURCHASE THIS
     CERTIFICATE OR (B) THE PURCHASE AND HOLDING OF THIS CERTIFICATE ARE EXEMPT
     FROM THE PROHIBITED TRANSACTION RESTRICTIONS OF ERISA AND THE CODE AND WILL
     BE PERMISSIBLE UNDER ALL APPLICABLE SIMILAR LAWS PURSUANT TO ONE OR MORE
     PROHIBITED TRANSACTION STATUTORY, CLASS OR INDIVIDUAL, EXEMPTIONS.

     AS USED HEREIN, THE TERM "PLAN ASSETS" MEANS THE ASSETS OF ANY "PLAN"
     (WITHIN THE MEANING OF SECTION 3(3) OF ERISA OR SECTION 4975(e)(1) OF THE
     CODE) THAT IS SUBJECT TO ERISA OR SECTION 4975 OF THE CODE, INCLUDING PLAN
     ASSETS WITHIN THE MEANING OF DEPARTMENT OF LABOR REGULATION SECTION
     2510.3-101, AND THE TERM "NON-ERISA PLAN ASSETS" MEANS THE ASSETS OF ANY
     PLAN (INCLUDING, WITHOUT LIMITATION, "GOVERNMENTAL PLANS" (WITHIN THE
     MEANING OF SECTION 3(32) OF ERISA OR SECTION 414(d) OF THE CODE), "CHURCH
     PLANS" (WITHIN THE MEANING OF SECTION 3(33) OF ERISA OF SECTION 414(e) OF
     THE CODE) AND FOREIGN PLANS) THAT IS NOT SUBJECT TO ERISA OR SECTION 4975
     OF THE CODE.

     UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
     DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE OR
     ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY
     CERTIFICATE ISSUED IN EXCHANGE FOR THIS CERTIFICATE IS REGISTERED IN THE
     NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
     REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO
     SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
     ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
     ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED

---------------
(1) Not to be included on the face of the Offshore Global Certificate or any
Offshore Physical Certificates.

                                      A-2
<PAGE>

     OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

     TRANSFERS OF THIS GLOBAL CERTIFICATE SHALL BE LIMITED TO TRANSFERS IN
     WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR
     SUCH SUCCESSOR'S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL
     CERTIFICATE SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE
     RESTRICTIONS SET FORTH IN SECTIONS 3.05 AND 3.06 OF THE PASS THROUGH TRUST
     AGREEMENT REFERRED TO HEREIN.](2)

---------------
(2) To be included on the face of each Global Certificate.

                                      A-3
<PAGE>

                  AMERICAN TRANS AIR 2002-1A PASS THROUGH TRUST

                                  Pass Through
                           Certificate, Series 2002-1A

Issuance Date:  ____________, 2002

Final Legal Distribution Date:  November 20, 2014

     Evidencing a Fractional Undivided Interest in the American Trans Air
     2002-1A Pass Through Trust, the Property of Which Includes Certain
     Equipment Notes each secured by Aircraft leased to or owned by American
     Trans Air, Inc.

          $[ ] Fractional Undivided Interest representing [ ] % of the
                 Trust per $1,000 of Reference Principal Amount

         THIS CERTIFIES THAT Cede & Co., for value received, is the registered
owner of a Fractional Undivided Interest in the amount of $ [ ]
(_____________________ dollars), as such amount may be adjusted from time to
time in accordance with the Agreement (the "Reference Principal Amount"), in the
American Trans Air 2002-1A Pass Through Trust (the "Trust") pursuant to a Pass
Through Trust Agreement dated as of March 28, 2002 (as amended, supplemented or
otherwise modified from time to time, the "Agreement"), among Wilmington Trust
Company, not in its individual capacity but solely as trustee (the "Trustee"),
Amtran, Inc., a corporation incorporated under Indiana law (the "Guarantor"),
and American Trans Air, Inc., a corporation incorporated under Indiana law (the
"Company"), a summary of certain of the pertinent provisions of which is set
forth below. To the extent not otherwise defined herein, the capitalized terms
used herein have the meanings assigned to them in the Agreement. This
Certificate is one of the duly authorized Certificates designated as "Pass
Through Certificates, Series 2002-1A" (herein called the "Certificates"). This
Certificate is issued under and is subject to the terms, provisions, and
conditions of the Agreement and the Intercreditor Agreement, to which agreements
the Certificateholder of this Certificate by virtue of the acceptance hereof
assents and by which such Certificateholder is bound. The property of the Trust
includes certain Equipment Notes and all rights of the Trust to receive any
payments under the Intercreditor Agreement and the Liquidity Facility (the
"Trust Property"). Each issue of the Equipment Notes is secured by a security
interest in The Aircraft leased to or owned by the Company.

         Each of the Certificates represents a fractional undivided interest in
the Trust and the Trust Property, and has no rights, benefits or interest in
respect of any assets or property other than the Trust Property. The undivided
percentage interest in the Trust represented by each of this Certificate (as
specified above) and the other Pass Through Certificates, Series 2002-1A, was
determined on the basis of (x) the aggregate of the Reference Principal Amount
of this Certificate (as specified above) and of the other Pass Through
Certificates, Series 2002-1A and (y) the

                                      A-1
<PAGE>

aggregate original principal amounts of the Equipment Notes constituting the
Trust Property.

         Subject to and in accordance with the terms of the Agreement and the
Intercreditor Agreement, from funds then available to the Trustee, there will be
distributed on each February 20, May 20, August 20 and November 20 (a "Regular
Distribution Date"), commencing May 20, 2002, to the Person in whose name this
Certificate is registered at the close of business on the 15th day preceding the
Regular Distribution Date, an amount in respect of the Scheduled Payments on the
Equipment Notes due on such Regular Distribution Date, the receipt of which has
been confirmed by the Trustee, equal to the product of the percentage interest
in the Trust evidenced by this Certificate and an amount equal to the sum of
such Scheduled Payments. Subject to and in accordance with the terms of the
Agreement and the Intercreditor Agreement, in the event that Special Payments on
the Equipment Notes are received by the Trustee, from funds then available to
the Trustee, there shall be distributed on the applicable Special Distribution
Date, to the Person in whose name this Certificate is registered at the close of
business on the 15th day preceding the Special Distribution Date, an amount in
respect of such Special Payments on the Equipment Notes, the receipt of which
has been confirmed by the Trustee, equal to the product of the percentage
interest in the Trust evidenced by this Certificate and an amount equal to the
sum of such Special Payments so received. If a Regular Distribution Date or
Special Distribution Date is not a Business Day, distribution shall be made on
the immediately following Business Day with the same force and effect as if made
on such Regular Distribution Date or Special Distribution Date and no interest
shall accrue during the intervening period. The Trustee shall mail notice of
each Special Payment and the Special Distribution Date therefor to the
Certificateholder of this Certificate.

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

         The Certificates do not represent a direct obligation of, or an
obligation guaranteed by, or an interest in, the Guarantor, the Company or the
Trustee or any affiliate thereof. The Certificates are limited in right of
payment, all as more specifically set forth on the face hereof and in the
Agreement. All payments or distributions made to Certificateholders under the
Agreement shall be made only from the Trust Property and only to the extent that
the Trustee shall have sufficient income or proceeds from the Trust Property to
make such payments in accordance with the terms of the Agreement. Each
Certificateholder of this Certificate, by its acceptance hereof, agrees that it
will look solely to the income and proceeds from the Trust Property to the
extent available for distribution to such Certificateholder as provided in the
Agreement. This Certificate does not purport to summarize the Agreement and
reference is made to the Agreement for information with respect to the
interests, rights, benefits, obligations, proceeds, and duties evidenced hereby.
A copy of the Agreement may be examined during normal business hours at the
principal office of the Trustee, and at such other places, if any, designated by
the Trustee, by any Certificateholder upon request.

                                      A-2
<PAGE>

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Certificateholders under the Agreement at any time
by the Guarantor, the Company and the Trustee with the consent of the
Certificateholders holding Certificates evidencing Fractional Undivided
Interests aggregating not less than a majority in interest in the Trust. Any
such consent by the Certificateholder of this Certificate shall be conclusive
and binding on such Certificateholder and upon all future Certificateholders of
this Certificate and of any Certificate issued upon the transfer hereof or in
exchange hereof or in lieu hereof whether or not notation of such consent is
made upon this Certificate. The Agreement also permits the amendment thereof, in
certain limited circumstances, without the consent of the Certificateholders of
any of the Certificates. Upon and simultaneously with the issuance of the
Additional Certificates, the Agreement shall be forthwith amended as provided in
the Delayed Funding Implementation Agreement without any need for further action
on the part of any party thereto.

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

         [THE HOLDER OF THIS CERTIFICATE IS ENTITLED TO THE BENEFITS OF THE
REGISTRATION RIGHTS AGREEMENT, DATED AS OF MARCH 28, 2002, AMONG THE TRUSTEE,
THE OTHER TRUSTEE, THE INVESTORS (AS DEFINED IN THE REGISTRATION RIGHTS
AGREEMENT), THE GUARANTOR AND THE COMPANY (AS AMENDED, SUPPLEMENTED OR OTHERWISE
MODIFIED FROM TIME TO TIME IN ACCORDANCE WITH ITS TERMS, THE "REGISTRATION
RIGHTS AGREEMENT"). THE INTEREST RATE PER ANNUM APPLICABLE TO THIS CERTIFICATE
SHALL BE INCREASED BY 0.50% PER ANNUM FOR ANY PERIOD REQUIRED BY THE
REGISTRATION RIGHTS AGREEMENT.]*

         The Certificates are issuable only as registered Certificates without
coupons in minimum denominations of [$100,000] [$1,000]** Fractional Undivided
Interest and integral multiples of $1,000 in excess thereof, except that one
Certificate may be issued in a denomination of less than [$100,000] [$1,000].**
As provided in the Agreement and subject to certain limitations therein set
forth, the Certificates are exchangeable for new Certificates of authorized
denominations evidencing the same aggregate Fractional Undivided Interest in the
Trust, as requested by the Certificateholder surrendering the same.

-------------------
*        TO BE INCLUDED ONLY ON EACH INITIAL CERTIFICATE.
**       To be included only on each Exchange Certificate.
**       To be included only on each Exchange Certificate.

                                      A-3
<PAGE>

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

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

         Any person acquiring or accepting this Certificate or an interest
herein will, by such acquisition or acceptance, be deemed to have represented
and warranted to and for the benefit of each Owner Participant and the Company
that either: (i) no Plan Assets and no Non-ERISA Plan Assets have been used to
purchase this Certificate or (ii) the purchase and holding of this Certificate
are exempt from the prohibited transaction restrictions of ERISA and the Code
and will be permissible under all applicable similar laws pursuant to one or
more prohibited transaction, statutory, class or individual exemptions.

         As used in the preceding paragraph, the term "Plan Assets" means the
assets of any "Plan"(within the meaning of Section 3(3) of ERISA or Section
4975(e)(1) of the Code) that is subject to ERISA or Section 4975 of the Code,
including Plan Assets within the meaning of Department of Labor Regulation
Section 2510.3-101, and the term "Non-ERISA Plan Assets" means the assets of any
plan (including, without limitation, "Governmental Plans" (within the meaning of
Section 3(32) of ERISA or Section 414(d) of the Code), "Church Plans" (within
the meaning of Section 3(33) of ERISA of Section 414(e) of the Code) and Foreign
Plans) that is not subject to ERISA or Section 4975 of the Code.

         Each Certificateholder or Investor that is not a United States person
within the meaning of Section 7701(a)(30) of the Internal Revenue Code, as
amended, by its acceptance of a Certificate or a beneficial interest therein,
agrees to indemnify and hold harmless the Trust and the Trustee from and against
any improper failure to withhold taxes from amounts payable to it or for its
benefit. Each Certificateholder and Investor, by its acceptance of this
Certificate or a beneficial interest herein, agrees to treat the Trust as a
grantor trust for all U.S. federal, state and local income tax purposes.

         Except as otherwise provided in the Agreement and notwithstanding the
above, the final distribution on this Certificate will be made after notice
mailed by the Trustee of the pendency of such distribution and only upon
presentation and surrender of this Certificate at the office or agency of the
Trustee specified in such notice.

         The obligations and responsibilities created by the Agreement and the
Trust created thereby shall terminate upon the distribution to
Certificateholders of all amounts required to be distributed to them pursuant to
the Agreement and the disposition of all property held as part of the Trust
Property.

         THE AGREEMENT AND THIS CERTIFICATE SHALL BE GOVERNED AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK

                                      A-4
<PAGE>

AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE
DETERMINED IN ACCORDANCE WITH SUCH LAWS.

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

         All payments or distributions made to Certificateholders shall be made
only from the Trust Property and only to the extent that the Trustee shall have
sufficient income or proceeds from the Trust Property to make such payments in
accordance with the terms of Article IV of this Agreement. Each
Certificateholder, by its acceptance of a Certificate, agrees that it will look
solely to the income and proceeds from the Trust Property to the extent
available for distribution to such Certificateholder as provided in this
Agreement.

                                      A-5
<PAGE>

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

Dated ____________, _____

                                   WILMINGTON TRUST COMPANY, not in its
                                     individual capacity but solely as Trustee
                                     for AMERICAN TRANS AIR 2002-1A PASS
                                     THROUGH TRUST

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

                                      A-6
<PAGE>

              [FORM OF THE TRUSTEE'S CERTIFICATE OF AUTHENTICATION]

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

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

                                       By:
                                          --------------------------------------
                                                  Authorized Officer

                                       A-7
<PAGE>

                             FORM OF TRANSFER NOTICE

         FOR VALUE RECEIVED the undersigned registered holder hereby sell(s),
assign(s) and transfer(s) unto

[Insert Taxpayer Identification No.]

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

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

please print or typewrite name and address including zip code of assignee

--------------------------------------------------------------------------------
the within Certificate and all rights thereunder, hereby irrevocably
constituting and appointing

--------------------------------------------------------------------------------
attorney to transfer said Certificate on the books of the Trustee with full
power of substitution in the premises.

                     [THE FOLLOWING PROVISION TO BE INCLUDED
                       ON ALL U.S. PHYSICAL CERTIFICATES]

         In connection with any transfer of this Certificate occurring prior to
the date that is the earlier of the date of an effective Registration Statement
or the end of the two year period referred to in the Private Placement Legend,
the undersigned confirms that without utilizing any general solicitation or
general advertising that:

                                   [Check One]

[ ]   (a)   this Certificate is being transferred in compliance with the
            exemption from registration under the Securities Act of 1933, as
            amended, provided by Rule 144A thereunder.

                                       or

[ ]   (b)   this Certificate is being transferred other than in accordance with
            (a) above and documents are being furnished that comply with the
            conditions of transfer set forth in this Certificate and the
            Agreement.

                                      A-8
<PAGE>

If neither of the foregoing boxes is checked, the Trustee or other Registrar
shall not be obligated to register this Certificate in the name of any Person
other than the Holder hereof unless and until the conditions to any such
transfer of registration set forth herein and in Section 3.06 of the Agreement
shall have been satisfied.

Date:                                     [Name of Transferor]

                                          NOTE: The signature must correspond
                                          with the name as written upon the face
                                          of the within-mentioned instrument in
                                          every particular, without alteration
                                          or any change whatsoever.

Signature Guarantee:

TO BE COMPLETED BY PURCHASER IF (a) ABOVE IS CHECKED.

         The undersigned represents and warrants that it is purchasing this
Certificate for its own account or an account with respect to which it exercises
sole investment discretion and that it and any such account is a "qualified
institutional buyer" within the meaning of Rule 144A under the Securities Act of
1933, as amended, and is aware that the sale to it is being made in reliance on
Rule 144A and has been advised of the applicable transfer restrictions relating
to the Certificates and acknowledges that it has received such information
regarding the Company as the undersigned has requested pursuant to Rule 144A or
has determined not to request such information and that it is aware that the
transferor is relying upon the undersigned's foregoing representations in order
to claim the exemption from registration provided by Rule 144A.

                                           [Name of Transferee]

Dated:

                                   ------------------------------
                                   NOTE: To be executed by an executive officer.

                                      A-9
<PAGE>

                                                                       EXHIBIT B

                FORM OF CERTIFICATE TO BE DELIVERED IN CONNECTION
                     WITH TRANSFERS PURSUANT TO REGULATION S

                                                                          [date]

Wilmington Trust Company,
 not in its individual
 capacity but solely as Trustee
Rodney Square North
1100 North Market Street
Wilmington, Delaware 19890
Attention: Corporate Trust Administration

     Re:  American Trans Air 2002-1A Pass Through Trust (the "Trust"),   %
          American Trans Air Pass Through Certificates Series 2002-1A
          (the Certificates")
          ---------------------------------------------------------------------

Sirs:

     In connection with our proposed sale of $[ ] Fractional Undivided Interest
of the Certificates, we confirm that such sale has been effected pursuant to and
in accordance with Regulation S under the Securities Act of 1933, as amended,
and, accordingly, we represent that:

         (1) the offer of the Certificates was not made to a person in the
     United States;

         (2) either (a) at the time the buy order was originated, the transferee
     was outside the United States or we and any person acting on our behalf
     reasonably believed that the transferee was outside the United States or
     (b) the transaction was executed in, on or through the facilities of a
     designated off-shore securities market and neither we nor any person acting
     on our behalf knows that the transaction has been pre-arranged with a buyer
     in the United States;

         (3) no directed selling efforts have been made in the United States in
     contravention of the requirements of Rule 903(b) or Rule 904(b) of
     Regulation S, as applicable; and

         (4) the transaction is not part of a plan or scheme to evade the
     registration requirements of the Securities Act.

         In addition, if the sale is made during a restricted period and the
provisions of

                                      B-1
<PAGE>

Rule 903(c)(3) or Rule 904(c)(1) of Regulation S are applicable thereto, we
confirm that such sale has been made in accordance with the applicable
provisions of Rule 903(c)(3) or Rule 904(c)(1), as the case may be.

         You and American Trans Air, Inc. are entitled to rely upon this letter
and are irrevocably authorized to produce this letter or a copy hereof to any
interested party in any administrative or legal proceedings or official inquiry
with respect to the matters covered hereby. Terms used in this certificate have
the meanings set forth in Regulation S.

                                Very truly yours,

                                [Name of Transferor]

                                By:
                                   -------------------------------------
                                           Authorized Signature

                                      B-2
<PAGE>

                                                                       EXHIBIT E

                FORM OF CERTIFICATE TO BE DELIVERED IN CONNECTION
                             WITH TRANSFERS TO QIBs

                                                                          [date]

Wilmington Trust Company,
 not in its individual
 capacity but solely as Trustee
Rodney Square North
1100 North Market Street
Wilmington, Delaware 19890
Attention:  Corporate Trust Administration

                               AMERICAN TRANS AIR
                PASS-THROUGH TRUST, SERIES 2002-1A (the "Trust")
                    Pass Through Certificates, Series 2002-1A
                              (the "Certificates")

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

Ladies and Gentlemen:

         In connection with our proposed sale of $[       ] Fractional Undivided
Interest of the Certificates, we confirm that without utilizing any general
solicitation or general advertising that such Certificates are being transferred
in compliance with the exemption from registration under the Securities Act of
1933, as amended, provided by Rule 144A thereunder.

Date:                                 [Name of Transferor

                                      NOTE: The signature must correspond with
                                      the name as written upon the face of the
                                      within-mentioned Certificate in every
                                      particular, without alteration or any
                                      change whatsoever.

Signature Guarantee:

<PAGE>

TO BE COMPLETED BY PURCHASER:

         The undersigned represents and warrants that it is purchasing the
within-mentioned Certificate for its own account or an account with respect to
which it exercises sole investment discretion and that it and any such account
is a "qualified institutional buyer" within the meaning of Rule 144A under the
Securities Act of 1933, as amended, and is aware that the sale to it is being
made in reliance on Rule 144A and has been advised of the applicable transfer
restrictions relating to the Certificates and acknowledges that it has received
such information regarding the Company as the undersigned has requested pursuant
to Rule 144A or has determined not to request such information and that it is
aware that the transferor is relying upon the undersigned's foregoing
representations in order to claim the exemption from registration provided by
Rule 144A.

Dated:

                                   NOTE: To be executed by an executive officer.

                                      E-2

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