Document:

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                           REVOLVING CREDIT AGREEMENT
                                    (2000-1B)

                           DATED AS OF MARCH 15, 2000

                                     BETWEEN

                            WILMINGTON TRUST COMPANY,

                             AS SUBORDINATION AGENT,
                          AS AGENT AND TRUSTEE FOR THE
                 CONTINENTAL AIRLINES PASS THROUGH TRUST 2000-1B

                                   AS BORROWER

                                       AND

                 CREDIT SUISSE FIRST BOSTON, NEW YORK BRANCH

                              AS LIQUIDITY PROVIDER

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                                   RELATING TO

               CONTINENTAL AIRLINES PASS THROUGH TRUST 2000-1B
            8.388% CONTINENTAL AIRLINES PASS THROUGH CERTIFICATES,
                                 SERIES 2000-1B

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                                TABLE OF CONTENTS

                                                                            PAGE

ARTICLE I DEFINITIONS...................................................     1
   Section 1.01.  Certain Defined Terms.................................     1

ARTICLE II AMOUNT AND TERMS OF THE COMMITMENT...........................     7
   Section 2.01.  The Advances..........................................     7
   Section 2.02.  Making the Advances...................................     7
   Section 2.03.  Fees..................................................     9
   Section 2.04.  Reductions or Termination of the Maximum Commitment...     9
   Section 2.05.  Repayments of Interest Advances or the Final Advance..     9
   Section 2.06.  Repayments of Provider Advances.......................    10
   Section 2.07.  Payments to the Liquidity Provider Under the
                  Intercreditor Agreement...............................    11
   Section 2.08.  Book Entries..........................................    11
   Section 2.09.  Payments from Available Funds Only....................    11
   Section 2.10.  Extension of the Expiry Date; Non-Extension Advance...    11

ARTICLE III OBLIGATIONS OF THE BORROWER.................................    12
   Section 3.01.  Increased Costs.......................................    12
   Section 3.02.  Capital Adequacy......................................    13
   Section 3.03.  Payments Free of Deductions...........................    13
   Section 3.04.  Payments..............................................    14
   Section 3.05.  Computations..........................................    14
   Section 3.06.  Payment on Non-Business Days..........................    15
   Section 3.07.  Interest..............................................    15
   Section 3.08.  Replacement of Borrower...............................    16
   Section 3.09.  Funding Loss Indemnification..........................    16

ARTICLE IV CONDITIONS PRECEDENT.........................................    17
   Section 4.01.  Conditions Precedent to Effectiveness of Section 2.01.    17
   Section 4.02.  Conditions Precedent to Borrowing.....................    18

ARTICLE V COVENANTS.....................................................    19
   Section 5.01.  Affirmative Covenants of the Borrower.................    19
   Section 5.02.  Negative Covenants of the Borrower....................    19

ARTICLE VI LIQUIDITY EVENTS OF DEFAULT..................................    19
   Section 6.01.  Liquidity Events of Default...........................    19

ARTICLE VII MISCELLANEOUS...............................................    20
   Section 7.01.  Amendments, Etc.......................................    20
   Section 7.02.  Notices, Etc..........................................    20
   Section 7.03.  No Waiver; Remedies...................................    21

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   Section 7.04.  Further Assurances....................................    21
   Section 7.05.  Indemnification; Survival of Certain Provisions.......    21
   Section 7.06.  Liability of the Liquidity Provider...................    21
   Section 7.07.  Costs, Expenses and Taxes.............................    22
   Section 7.08.  Binding Effect; Participations........................    22
   Section 7.09.  Severability..........................................    24
   Section 7.10.  GOVERNING LAW.........................................    24
   Section 7.11.  Submission to Jurisdiction; Waiver of Jury Trial;
                  Waiver oF Immunity....................................    24
   Section 7.12.  Execution in Counterparts.............................    25
   Section 7.13.  Entirety..............................................    25
   Section 7.14.  Headings..............................................    25
   Section 7.15.  Transfer..............................................    25
   Section 7.16.  LIQUIDITY PROVIDER'S OBLIGATION TO MAKE ADVANCES......    25
   Section 7.17.  Head Office Obligation................................    25

ANNEX I   Interest Advance Notice of Borrowing

ANNEX II  Non-Extension Advance Notice of Borrowing

ANNEX III Downgrade Advance Notice of Borrowing

ANNEX IV  Final Advance Notice of Borrowing

ANNEX V   Notice of Termination

ANNEX VI  Notice of Replacement Subordination Agent

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                      REVOLVING CREDIT AGREEMENT (2000-1B)

This REVOLVING  CREDIT AGREEMENT  (2000-1B) dated as of March 15, 2000,  between
WILMINGTON TRUST COMPANY, a Delaware corporation, not in its individual capacity
but solely as  Subordination  Agent under the  Intercreditor  Agreement (each as
defined  below),  as agent and trustee for the Class B Trust (as defined  below)
(the  "BORROWER"),  and  CREDIT  SUISSE  FIRST  BOSTON,  a  banking  institution
organized under the laws of Switzerland, acting through its New York branch (the
"LIQUIDITY PROVIDER").

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

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

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

             NOW,  THEREFORE,  in  consideration  of the  premises,  the parties
hereto agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

             Section 1.01.  CERTAIN DEFINED TERMS. (a)  DEFINITIONS.  As used in
this Agreement and unless otherwise expressly  indicated,  or unless the context
clearly  requires  otherwise,  the  following  capitalized  terms shall have the
following respective meanings for all purposes of this Agreement:

             "ADDITIONAL  COST" has the meaning assigned to such term in Section
       3.01.

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

             "APPLICABLE  LIQUIDITY RATE" has the meaning  assigned to such term
       in Section 3.07(g).

             "APPLICABLE MARGIN" means (x) with respect to any Unpaid Advance or
       Applied  Provider  Advance,  2.00% per annum,  or (y) with respect to any
       Unapplied  Provider  Advance,  the rate per  annum  specified  in the Fee
       Letter applicable to this Agreement.

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             "APPLIED  DOWNGRADE  ADVANCE" has the meaning assigned to such term
       in Section 2.06(a).

             "APPLIED  NON-EXTENSION  ADVANCE" has the meaning  assigned to such
       term in Section 2.06(a).

             "APPLIED PROVIDER ADVANCE" has the meaning assigned to such term in
       Section 2.06(a).

             "ASSIGNMENT  AND  ASSUMPTION  AGREEMENT"  means the  Assignment and
       Assumption to be entered into between the Borrower and the trustee of the
       Successor  Trust,  substantially  in the form of  Exhibit  C to the Trust
       Supplement No.  2000-1B-O,  dated as of the date hereof,  relating to the
       Class B Trust.

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

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

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

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

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

             "CONSENT NOTICE" has the meaning specified in Section 2.10.

             "CONSENT PERIOD" has the meaning specified in Section 2.10.

             "DEPOSIT  AGREEMENT"  means the Deposit  Agreement  dated as of the
       date hereof between First Security Bank, National Association,  as Escrow
       Agent,  Credit  Suisse  First  Boston,  New York branch,  as  Depositary,
       pertaining  to the  Class B  Certificates,  as the same  may be  amended,
       modified or  supplemented  from time to time in accordance with the terms
       thereof.

<PAGE>

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

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

             "DOWNGRADE  ADVANCE"  means an  Advance  made  pursuant  to Section
       2.02(c).

             "EFFECTIVE  DATE" has the meaning  specified in Section  4.01.  The
       delivery of the  certificate of the Liquidity  Provider  contemplated  by
       Section 4.01(e) shall be conclusive  evidence that the Effective Date has
       occurred.

             "EXCLUDED  TAXES" means (i) taxes imposed on the overall net income
       of the Liquidity  Provider or of its Facility Office by the  jurisdiction
       where such Liquidity  Provider's principal office or such Facility Office
       is located, and (ii) Excluded Withholding Taxes.

             "EXCLUDED WITHHOLDING TAXES" means (i) withholding Taxes imposed by
       the  United   States  except  to  the  extent  that  such  United  States
       withholding Taxes are imposed as a result of any change in applicable law
       (excluding  from change in applicable law for this purpose a change in an
       applicable treaty or other change in law affecting the applicability of a
       treaty)  after the date hereof,  or in the case of a successor  Liquidity
       Provider (including a transferee of an Advance) or Facility Office, after
       the date on which such successor  Liquidity Provider obtains its interest
       or on which the  Facility  Office is  changed,  and (ii) any  withholding
       Taxes  imposed by the United  States  which are imposed or increased as a
       result of the Liquidity  Provider  failing to deliver to the Borrower any
       certificate or document (which  certificate or document in the good faith
       judgment of the  Liquidity  Provider  it is legally  entitled to provide)
       which is reasonably  requested by the Borrower to establish that payments
       under this  Agreement  are exempt from (or entitled to a reduced rate of)
       withholding Tax.

             "EXPENSES"  means liabilities,  obligations,  damages, settlements,
       penalties,  claims,  actions,  suits, costs,  expenses, and disbursements
       (including,  without  limitation,  reasonable fees and  disbursements  of
       legal counsel and costs of  investigation),  provided that Expenses shall
       not include any Taxes.

             "EXPIRY DATE" means March 13, 2001, initially, or any date to which
       the Expiry Date is extended pursuant to Section 2.10.

             "EXTENSION NOTICE" has the meaning specified in Section 2.10.

             "FACILITY  OFFICE"  means  the  office  of the  Liquidity  Provider
       presently  located at New York,  New York,  or such  other  office as the
       Liquidity  Provider  from time to time shall  notify the  Borrower as its
       Facility Office hereunder; provided that the Liquidity Provider shall not
       change its Facility Office to a Facility Office outside the United States
       of America except in accordance with Section 3.01, 3.02 or 3.03 hereof.

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

<PAGE>

             "INTERCREDITOR  AGREEMENT" means the Intercreditor  Agreement dated
       the  date  hereof,  among  the  Trustees,  the  Liquidity  Provider,  the
       liquidity  provider  under  each  Liquidity  Facility  (other  than  this
       Agreement)  and the  Subordination  Agent,  as the same  may be  amended,
       supplemented  or otherwise  modified from time to time in accordance with
       its terms.

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

             "INTEREST PERIOD" means, with respect to any LIBOR Advance, each of
       the following periods:

            (i)   the  period  beginning  on the third  Business  Day  following
                  either (x) the Liquidity  Provider's  receipt of the Notice of
                  Borrowing  for such  LIBOR  Advance or (y) the  withdrawal  of
                  funds from the Class B Cash Collateral Account for the purpose
                  of paying interest on the Class B Certificates as contemplated
                  by Section  2.06(a) hereof and, in either case,  ending on the
                  next Regular Distribution Date; and

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

       PROVIDED, HOWEVER, that if (x) the Final Advance shall have been made, or
       (y) other  outstanding  Advances shall have been converted into the Final
       Advance,  then the Interest  Periods shall be  successive  periods of one
       month  beginning  on the  third  Business  Day  following  the  Liquidity
       Provider's  receipt of the Notice of Borrowing for such Final Advance (in
       the case of clause (x) above) or the Regular  Distribution Date following
       such conversion (in the case of clause (y) above).

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

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

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

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

<PAGE>

             "LIQUIDITY EVENT OF DEFAULT" means the occurrence of either (a) the
       Acceleration  of all of the Equipment  Notes (PROVIDED that, with respect
       to the period prior to the Delivery  Period Expiry Date,  such  Equipment
       Notes  have an  aggregate  outstanding  principal  balance  in  excess of
       $300,000,000) or (b) a Continental Bankruptcy Event.

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

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

             "MAXIMUM  AVAILABLE  COMMITMENT" shall mean, subject to the proviso
       contained  in the  third  sentence  of  Section  2.02(a),  at any time of
       determination,  (a) the  Maximum  Commitment  at such  time  LESS (b) the
       aggregate  amount of each  Interest  Advance  outstanding  at such  time;
       PROVIDED  that  following  a  Provider  Advance or a Final  Advance,  the
       Maximum Available Commitment shall be zero.

             "MAXIMUM COMMITMENT" means initially $15,449,138.16 as the same may
       be reduced from time to time in accordance with Section 2.04(a).

             "NON-EXCLUDED TAX" has the meaning specified in Section 3.03.

             "NON-EXTENSION  ADVANCE"  means an Advance made pursuant to Section
       2.02(b).

             "NOTICE OF BORROWING" has the meaning specified in Section 2.02(e).

             "NOTICE  OF  REPLACEMENT   SUBORDINATION  AGENT"  has  the  meaning
       specified in Section 3.08.

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

             "PROSPECTUS SUPPLEMENT" means the Prospectus Supplement dated March
       1, 2000 relating to the Certificates,  as such Prospectus  Supplement may
       be amended or supplemented.

             "PROVIDER  ADVANCE"  means a Downgrade  Advance or a  Non-Extension
       Advance.

             "REGULATORY  CHANGE"  has the  meaning  assigned  to  such  term in
       Section 3.01.

             "REPLENISHMENT  AMOUNT"  has the  meaning  assigned to such term in
       Section 2.06(b).

             "REQUIRED  AMOUNT"  means,  for any day,  the sum of the  aggregate
       amount of interest,  calculated at the rate per annum equal to the Stated
       Interest Rate for the Class B Certificates,  that would be payable on the
       Class B Certificates on each of the three successive  semiannual  Regular
       Distribution  Dates  immediately  following such day or, if such day is a
       Regular Distribution Date, on such day and the succeeding two semiannual

<PAGE>

      Regular  Distribution  Dates,  in each case calculated on the basis of the
      Pool Balance of the Class B Certificates on such day and without regard to
      expected future payments of principal on the Class B Certificates.

             "SUCCESSOR  TRUST" means  Continental  Airlines  Pass Through Trust
       2000-1B-S.

             "TAX  LETTER"  means the letter  dated the date hereof  between the
       Liquidity Provider and Continental pertaining to this Agreement.

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

             "TERMINATION NOTICE" means the Notice of Termination  substantially
       in the form of Annex V to this Agreement.

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

             "UNAPPLIED  DOWNGRADE  ADVANCE"  means any Downgrade  Advance other
       than an Applied Downgrade Advance.

             "UNAPPLIED  NON-EXTENSION  ADVANCE" means any Non-Extension Advance
       other than an Applied Non-Extension Advance.

             "UNAPPLIED  PROVIDER ADVANCE" means any Provider Advance other than
       an Applied Provider Advance.

             "UNPAID  ADVANCE" has the meaning  assigned to such term in Section
       2.05.

             "WITHDRAWAL NOTICE" has the meaning specified in Section 2.10.

             (b) TERMS DEFINED IN THE INTERCREDITOR  AGREEMENT. For all purposes
of this  Agreement,  the  following  terms  shall have the  respective  meanings
assigned to such terms in the Intercreditor Agreement:

       "ACCELERATION",  "CERTIFICATES",  "CLASS  A-1  CERTIFICATES",  "CLASS A-2
       CERTIFICATES",    "CLASS   B   CASH   COLLATERAL   ACCOUNT",   "CLASS   B
       CERTIFICATEHOLDERS",  "CLASS B CERTIFICATES",  "CLASS B TRUST",  "CLASS B
       TRUST AGREEMENT", "CLASS B TRUSTEE", "CLASS C-1 CERTIFICATES", "CLASS C-2
       CERTIFICATES",  "CLOSING DATE",  "CONTINENTAL",  "CONTINENTAL  BANKRUPTCY

<PAGE>

       EVENT",  "CONTROLLING PARTY", "CORPORATE TRUST OFFICE",  "DELIVERY PERIOD
       EXPIRY DATE",  "DISTRIBUTION  DATE",  "DOWNGRADED  FACILITY",  "EQUIPMENT
       NOTES",  "FEE  LETTER",   "FINAL  LEGAL  DISTRIBUTION  DATE",  "FINANCING
       AGREEMENT",   "INDENTURE",   "INVESTMENT  EARNINGS",  "LEASED  AIRCRAFT",
       "LIQUIDITY FACILITY", "LIQUIDITY OBLIGATIONS", "LOAN TRUSTEE", "MOODY'S",
       "NON-EXTENDED   FACILITY",   "NOTE   PURCHASE   AGREEMENT",    "OPERATIVE
       AGREEMENTS",  "OWNED AIRCRAFT",  "PARTICIPATION  AGREEMENT",  "PERFORMING
       EQUIPMENT NOTE",  "PERSON",  "POOL BALANCE",  "RATING  AGENCY",  "RATINGS
       CONFIRMATION",   "REGULAR  DISTRIBUTION  DATE",   "REPLACEMENT  LIQUIDITY
       FACILITY", "RESPONSIBLE OFFICER", "SCHEDULED PAYMENT", "SPECIAL PAYMENT",
       "STANDARD  & POOR'S",  "STATED  INTEREST  RATE",  "SUBORDINATION  AGENT",
       "TAXES", "THRESHOLD RATING", "TRANSFER",  "TRUST AGREEMENTS",  "TRUSTEE",
       "UNDERWRITERS", "UNDERWRITING Agreement", and "WRITTEN NOTICE".

                                   ARTICLE II

                       AMOUNT AND TERMS OF THE COMMITMENT

             Section  2.01.  THE  ADVANCES.   The  Liquidity   Provider   hereby
irrevocably  agrees, on the terms and conditions  hereinafter set forth, to make
Advances to the Borrower from time to time on any Business Day during the period
from the Effective Date until 12:00 Noon (New York City time) on the Expiry Date
(unless the obligations of the Liquidity Provider shall be earlier terminated in
accordance with the terms of Section 2.04(b)) in an aggregate amount at any time
outstanding not to exceed the Maximum Commitment.

             Section 2.02.  MAKING THE ADVANCES.  (a) Interest Advances shall be
made in one or more  Borrowings by delivery to the Liquidity  Provider of one or
more written and  completed  Notices of Borrowing in  substantially  the form of
Annex I attached hereto,  signed by a Responsible Officer of the Borrower, in an
amount not exceeding the Maximum Available  Commitment at such time and shall be
used solely for the payment when due of interest on the Class B Certificates  at
the Stated  Interest  Rate  therefor in  accordance  with Section  3.6(a) of the
Intercreditor   Agreement.   Each   Interest   Advance  made   hereunder   shall
automatically  reduce the Maximum Available  Commitment and the amount available
to be borrowed  hereunder by subsequent  Advances by the amount of such Interest
Advance  (subject  to  reinstatement  as provided  in the next  sentence).  Upon
repayment  to the  Liquidity  Provider  in full of the  amount  of any  Interest
Advance made pursuant to this Section  2.02(a),  together with accrued  interest
thereon  (as  provided  herein),  the  Maximum  Available  Commitment  shall  be
reinstated by the amount of such repaid Interest Advance,  but not to exceed the
Maximum Commitment;  PROVIDED,  HOWEVER,  that the Maximum Available  Commitment
shall not be so reinstated at any time if (i) a Liquidity Event of Default shall
have occurred and be continuing and (ii) there is a Performing Note Deficiency.

             (b) A Non-Extension  Advance shall be made in a single Borrowing if
this  Agreement  is not  extended  in  accordance  with  Section  3.6(d)  of the
Intercreditor Agreement (unless a Replacement Liquidity Facility to replace this
Agreement  shall have been  delivered  to the Borrower as  contemplated  by said
Section 3.6(d) within the time period  specified in such Section) by delivery to
the  Liquidity  Provider  of a written  and  completed  Notice of  Borrowing  in
substantially  the form of Annex II  attached  hereto,  signed by a  Responsible
Officer of the Borrower,  in an amount equal to the Maximum Available Commitment
at such time, and shall be used to fund the Class B Cash  Collateral  Account in
accordance  with said  Section  3.6(d) and Section  3.6(f) of the  Intercreditor
Agreement.

<PAGE>

             (c) A Downgrade  Advance shall be made in a single Borrowing upon a
downgrading of the Liquidity Provider's  short-term unsecured debt rating issued
by either Rating Agency below the applicable  Threshold  Rating (as provided for
in Section 3.6(c) of the Intercreditor Agreement) unless a Replacement Liquidity
Facility to replace this Agreement shall have been  previously  delivered to the
Borrower in accordance  with said Section  3.6(c),  by delivery to the Liquidity
Provider of a written and  completed  Notice of Borrowing in  substantially  the
form of Annex III  attached  hereto,  signed  by a  Responsible  Officer  of the
Borrower,  in an amount equal to the Maximum Available  Commitment at such time,
and shall be used to fund the Class B Cash Collateral Account in accordance with
said Section 3.6(c) and Section 3.6(f) of the Intercreditor Agreement.

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

             (e) Each Borrowing shall be made on notice in writing (a "NOTICE OF
BORROWING")  in  substantially  the form required by Section  2.02(a),  2.02(b),
2.02(c) or 2.02(d),  as the case may be, given by the Borrower to the  Liquidity
Provider.  If a Notice of  Borrowing  is delivered by the Borrower in respect of
any  Borrowing no later than 1:00 p.m.  (New York City time) on a Business  Day,
upon  satisfaction  of the  conditions  precedent set forth in Section 4.02 with
respect to a requested Borrowing, the Liquidity Provider shall make available to
the Borrower,  in accordance with its payment  instructions,  the amount of such
Borrowing in U.S. dollars and immediately available funds, before 4:00 p.m. (New
York City time) on such Business Day or on such later  Business Day specified in
such Notice of Borrowing.  If a Notice of Borrowing is delivered by the Borrower
in respect of any  Borrowing  on a day that is not a Business  Day or after 1:00
p.m. (New York City time) on a Business Day, upon satisfaction of the conditions
precedent set forth in Section 4.02 with respect to a requested  Borrowing,  the
Liquidity Provider shall make available to the Borrower,  in accordance with its
payment  instructions,  the  amount of such  Borrowing  in U.S.  dollars  and in
immediately available funds, before 12:00 Noon (New York City time) on the first
Business Day next following the day of receipt of such Notice of Borrowing or on
such later  Business Day  specified by the Borrower in such Notice of Borrowing.
Payments  of  proceeds  of a  Borrowing  shall  be  made  by  wire  transfer  of
immediately  available  funds to the  Borrower  in  accordance  with  such  wire
transfer  instructions  as the Borrower  shall  furnish from time to time to the
Liquidity  Provider  for  such  purpose.  Each  Notice  of  Borrowing  shall  be
irrevocable and binding on the Borrower.

             (f) Upon the making of any Advance  requested  pursuant to a Notice
of Borrowing,  in  accordance  with the  Borrower's  payment  instructions,  the
Liquidity  Provider shall be fully  discharged of its obligation  hereunder with
respect  to such  Notice of  Borrowing,  and the  Liquidity  Provider  shall not
thereafter  be  obligated to make any further  Advances  hereunder in respect of
such  Notice  of  Borrowing  to the  Borrower  or to any  other  Person.  If the
Liquidity  Provider makes an Advance requested pursuant to a Notice of Borrowing
before 12:00 Noon (New York City time) on the second Business Day after the date
of payment specified in said Section 2.02(e),  the Liquidity Provider shall have
fully  discharged its obligations  hereunder with respect to such Advance and an
event of default shall not have occurred hereunder.  Following the making of any
Advance  pursuant to Section 2.02(b), (c) or (d) hereof to fund the Class B Cash

<PAGE>

Collateral  Account,  the Liquidity Provider shall have no interest in or rights
to the Class B Cash Collateral  Account,  such Advance or any other amounts from
time to time on deposit in the Class B Cash  Collateral  Account;  PROVIDED that
the foregoing  shall not affect or impair the  obligations of the  Subordination
Agent to make the  distributions  contemplated  by Section  3.6(e) or (f) of the
Intercreditor  Agreement,  and provided  further,  that the foregoing  shall not
affect or impair  the  rights  of the  Liquidity  Provider  to  provide  written
instructions  with respect to the investment and  reinvestment of amounts in the
Cash  Collateral  Accounts  to the  extent  provided  in  Section  2.2(b) of the
Intercreditor  Agreement.  By  paying  to  the  Borrower  proceeds  of  Advances
requested by the Borrower in accordance  with the provisions of this  Agreement,
the  Liquidity   Provider  makes  no   representation  as  to,  and  assumes  no
responsibility for, the correctness or sufficiency for any purpose of the amount
of the Advances so made and requested.

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

             Section 2.04. REDUCTIONS OR TERMINATION OF THE MAXIMUM COMMITMENT.

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

             (b)  TERMINATION.  Upon the making of any Provider Advance or Final
Advance  hereunder or the occurrence of the Termination  Date, the obligation of
the Liquidity  Provider to make further Advances  hereunder shall  automatically
and irrevocably terminate, and the Borrower shall not be entitled to request any
further Borrowing hereunder.

             Section 2.05. REPAYMENTS OF INTEREST ADVANCES OR THE FINAL ADVANCE.
Subject to Sections  2.06,  2.07 and 2.09 hereof,  the Borrower  hereby  agrees,
without notice of an Advance or demand for repayment from the Liquidity Provider
(which notice and demand are hereby waived by the Borrower), to pay, or to cause
to be paid,  to the  Liquidity  Provider  on each  date on which  the  Liquidity
Provider shall make an Interest Advance or the Final Advance, an amount equal to
(a) the amount of such Advance (any such Advance,  until repaid,  is referred to
herein as an "UNPAID  ADVANCE"),  plus (b)  interest  on the amount of each such
Unpaid  Advance as provided in Section  3.07  hereof;  PROVIDED  that if (i) the
Liquidity Provider shall make a Provider Advance at any time after making one or
more Interest  Advances which shall not have been repaid in accordance with this
Section 2.05 or (ii) this Liquidity Facility shall become a Downgraded  Facility
or Non-Extended  Facility at any time when  unreimbursed  Interest Advances have
reduced the Maximum  Available  Commitment to zero, then such Interest  Advances
shall  cease to  constitute  Unpaid  Advances  and  shall be deemed to have been
changed into  an Applied Downgrade Advance or an Applied Non-Extension  Advance,

<PAGE>

as the case may be,  for all  purposes  of this  Agreement  (including,  without
limitation,  for the  purpose  of  determining  when such  Interest  Advance  is
required to be repaid to the Liquidity  Provider in accordance with Section 2.06
and for the  purposes  of  Section  2.06(b)).  The  Borrower  and the  Liquidity
Provider  agree that the  repayment in full of each  Interest  Advance and Final
Advance on the date such  Advance is made is  intended  to be a  contemporaneous
exchange for new value given to the Borrower by the Liquidity Provider.

            Section 2.06. REPAYMENTS OF PROVIDER ADVANCES.  (a) Amounts advanced
hereunder  in respect of a Provider  Advance  shall be  deposited in the Class B
Cash Collateral Account, invested and withdrawn from the Class B Cash Collateral
Account  as set  forth  in  Sections  3.6(c),  (d) and (f) of the  Intercreditor
Agreement. The Borrower agrees to pay to the Liquidity Provider, on each Regular
Distribution Date,  commencing on the first Regular  Distribution Date after the
making of a  Provider  Advance,  interest  on the  principal  amount of any such
Provider Advance as provided in Section 3.07; PROVIDED, HOWEVER, that amounts in
respect of a Provider Advance withdrawn from the Class B Cash Collateral Account
for the purpose of paying  interest on the Class B  Certificates  in  accordance
with  Section  3.6(f) of the  Intercreditor  Agreement  (the  amount of any such
withdrawal being (y) in the case of a Downgrade  Advance,  an "APPLIED DOWNGRADE
ADVANCE"  and  (z)  in  the  case  of  a  Non-Extension   Advance,  an  "APPLIED
NON-EXTENSION  ADVANCE" and,  together  with an Applied  Downgrade  Advance,  an
"APPLIED  PROVIDER  ADVANCE") shall  thereafter  (subject to Section 2.06(b)) be
treated as an Interest  Advance under this Agreement for purposes of determining
the Applicable  Liquidity Rate for interest payable thereon;  PROVIDED  FURTHER,
HOWEVER,  that if,  following  the making of a Provider  Advance,  the Liquidity
Provider delivers a Termination  Notice to the Borrower pursuant to Section 6.01
hereof,  such Provider  Advance  shall  thereafter be treated as a Final Advance
under this Agreement for purposes of determining  the Applicable  Liquidity Rate
for  interest  payable  thereon.  Subject  to  Sections  2.07 and  2.09  hereof,
immediately  upon the withdrawal of any amounts from the Class B Cash Collateral
Account on account of a reduction in the  Required  Amount,  the Borrower  shall
repay  to the  Liquidity  Provider  a  portion  of the  Provider  Advances  in a
principal amount equal to such reduction,  plus interest on the principal amount
prepaid as provided in Section 3.07 hereof.

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

             (c) Upon the  provision  of a  Replacement  Liquidity  Facility  in
replacement  of  this  Agreement  in  accordance  with  Section  3.6(e)  of  the
Intercreditor  Agreement,  amounts  remaining  on  deposit  in the  Class B Cash
Collateral  Account after giving effect to any Applied  Provider  Advance on the
date of such replacement shall be reimbursed to the Liquidity Provider, but only

<PAGE>

to the extent  such  amounts  are  necessary  to repay in full to the  Liquidity
Provider all amounts owing to it hereunder.

             Section  2.07.   PAYMENTS  TO  THE  LIQUIDITY  PROVIDER  UNDER  THE
INTERCREDITOR  AGREEMENT.  In order to provide for payment or  repayment  to the
Liquidity  Provider  of  any  amounts  hereunder,  the  Intercreditor  Agreement
provides  that amounts  available  and referred to in Articles II and III of the
Intercreditor  Agreement,  to  the  extent  payable  to the  Liquidity  Provider
pursuant  to  the  terms  of the  Intercreditor  Agreement  (including,  without
limitation, Section 3.6(f) of the Intercreditor Agreement), shall be paid to the
Liquidity Provider in accordance with the terms thereof.  Amounts so paid to the
Liquidity  Provider  shall be applied by the  Liquidity  Provider  to  Liquidity
Obligations then due and payable in accordance with the Intercreditor  Agreement
or, if not provided for in the Intercreditor  Agreement,  then in such manner as
the Liquidity Provider shall deem appropriate.

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

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

             Section 2.10. EXTENSION OF THE EXPIRY DATE;  NON-EXTENSION ADVANCE.
The Borrower may, from time to time, by notice to the Liquidity  Provider  (each
such notice  being an  "EXTENSION  NOTICE")  given no later than 40th day and no
earlier than the 60th day prior to the then applicable  Expiry Date,  request an
extension  of the  Expiry  Date to the  earlier of (i) the date which is 15 days
after the Final Legal  Distribution  Date for the Class B Certificates  and (ii)
the date that is the day immediately preceding the 364th day occurring after the
last day of the  Consent  Period (as  hereinafter  defined).  Whether or not the
Liquidity  Provider  has received a request from the  Borrower,  such  Liquidity
Provider may, but shall not be obligated to, by a notice (a "CONSENT NOTICE") to
the  Borrower,  given during the period  commencing  on the date that is 60 days
prior to the  Expiry Date  then in effect and ending on the date that is 25 days

<PAGE>

prior to the  Expiry  Date  then in effect  for such  Liquidity  Facility  (such
period, with respect to such Liquidity Facility, the "CONSENT PERIOD"),  consent
to such extension of the Expiry Date,  which consent may be given or withheld by
the Liquidity Provider in its absolute and sole discretion;  PROVIDED,  HOWEVER,
that such  extension  shall  not be  effective  with  respect  to the  Liquidity
Provider  if by a notice (a  "WITHDRAWAL  NOTICE")  to the  Borrower  during the
Consent  Period  the  Liquidity  Provider  revokes  its  Consent  Notice.  If  a
Withdrawal Notice has been given during the applicable  Consent Period or if the
Liquidity  Provider shall not have delivered a Consent Notice within the Consent
Period  (and,  in each  case,  if the  Liquidity  Provider  shall  not have been
replaced in accordance with Section 3.6(e) of the Intercreditor Agreement),  the
Borrower  shall be entitled  on and after the date on which the  Consent  Period
ends (but prior to the then  effective  Expiry Date) to request a  Non-Extension
Advance in  accordance  with Section  2.02(b)  hereof and Section  3.6(d) of the
Intercreditor Agreement.

                                   ARTICLE III

                           OBLIGATIONS OF THE BORROWER

             Section  3.01.  INCREASED  COSTS.  The  Borrower  shall  pay to the
Liquidity  Provider  from  time to time  such  amounts  as may be  necessary  to
compensate  the  Liquidity  Provider  for any  increased  costs  incurred by the
Liquidity  Provider (or its head office) which are attributable to its making or
maintaining  any LIBOR  Advances  hereunder or its  obligation  to make any such
Advances  hereunder,  or any reduction in any amount receivable by the Liquidity
Provider under this Agreement or the  Intercreditor  Agreement in respect of any
such  Advances or such  obligation  (such  increases in costs and  reductions in
amounts receivable being herein called "ADDITIONAL  COSTS"),  resulting from any
change after the date of this Agreement in U.S. federal,  state,  municipal,  or
foreign laws or regulations (including Regulation D of the Board of Governors of
the Federal  Reserve  System),  or the adoption or making after the date of this
Agreement of any  interpretations,  directives,  or  requirements  applying to a
class of banks including the Liquidity  Provider under any U.S. federal,  state,
municipal,  or any foreign laws or regulations  (whether or not having the force
of law) by any  court,  central  bank or  monetary  authority  charged  with the
interpretation or  administration  thereof (a "REGULATORY  CHANGE"),  which: (1)
changes the basis of taxation of any amounts  payable to the Liquidity  Provider
under this  Agreement  in  respect of any such  Advances  (other  than  Excluded
Taxes); or (2) imposes or modifies any reserve, special deposit, compulsory loan
or similar requirements relating to any extensions of credit or other assets of,
or any deposits with other  liabilities of, the Liquidity  Provider (or its head
office)  (including  any  such  Advances  or  any  deposits  referred  to in the
definition of LIBOR Rate or related definitions).  The Liquidity Provider agrees
to use  reasonable  efforts  (consistent  with  applicable  legal and regulatory
restrictions)  to change the  jurisdiction of its Facility Office if making such
change  would  avoid the need for,  or reduce the amount of, any amount  payable
under this Section that may  thereafter  accrue and would not, in the reasonable
judgment  of  the  Liquidity  Provider,  be  otherwise  disadvantageous  to  the
Liquidity Provider.

             The  Liquidity  Provider  will  notify  the  Borrower  of any event
occurring  after the date of this  Agreement  that will  entitle  the  Liquidity
Provider  to  compensation   pursuant  to  this  Section  3.01  as  promptly  as
practicable  after it obtains  knowledge  thereof and determines to request such
compensation,  which notice shall describe in reasonable  detail the calculation
of the amounts owed under this Section. Determinations by the Liquidity Provider

<PAGE>

for purposes of this Section 3.01 of the effect of any Regulatory  Change on its
costs of  making or  maintaining  Advances  or on  amounts  receivable  by it in
respect of Advances,  and of the additional  amounts  required to compensate the
Liquidity  Provider  in respect of any  Additional  Costs,  shall be prima facie
evidence of the amount owed under this Section.

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

             Section 3.02. CAPITAL ADEQUACY. If (1) the adoption, after the date
hereof, of any applicable governmental law, rule or regulation regarding capital
adequacy,  (2) any  change,  after the date  hereof,  in the  interpretation  or
administration  of any such law, rule or regulation by any central bank or other
governmental authority charged with the interpretation or administration thereof
or (3)  compliance  by the  Liquidity  Provider  (or  its  head  office)  or any
corporation  controlling the Liquidity Provider with any applicable guideline or
request of general  applicability,  issued after the date hereof, by any central
bank or other  governmental  authority  (whether or not having the force of law)
that  constitutes a change of the nature described in clause (2), has the effect
of requiring an increase in the amount of capital  required to be  maintained by
the Liquidity  Provider or any corporation  controlling the Liquidity  Provider,
and such increase is based upon the Liquidity Provider's  obligations  hereunder
and other similar obligations,  the Borrower shall pay to the Liquidity Provider
from  time to time  such  additional  amount  or  amounts  as are  necessary  to
compensate the Liquidity  Provider for such portion of such increase as shall be
reasonably  allocable to the Liquidity  Provider's  obligations  to the Borrower
hereunder.  The Liquidity Provider agrees to use reasonable efforts  (consistent
with applicable legal and regulatory restrictions) to change the jurisdiction of
its  Facility  Office if making such change  would avoid the need for, or reduce
the amount of, any amount payable under this Section that may thereafter  accrue
and  would  not,  in the  reasonable  judgment  of the  Liquidity  Provider,  be
otherwise materially disadvantageous to the Liquidity Provider.

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

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

             Section 3.03. PAYMENTS FREE OF DEDUCTIONS. (a) All payments made by
the Borrower under this  Agreement  shall be made free and clear of, and without
reduction  for or on account  of, any  present or future  stamp or other  taxes,
levies, imposts, duties,  charges, fees,  deductions, withholdings, restrictions

<PAGE>

or  conditions  of any  nature  whatsoever  now or  hereafter  imposed,  levied,
collected,  withheld or assessed,  excluding  Excluded Taxes (such  non-excluded
taxes  being  referred to herein,  collectively,  as  "NON-EXCLUDED  TAXES" and,
individually,  as a "NON-EXCLUDED  TAX"). If any Non-Excluded Taxes are required
to be withheld  from any amounts  payable to the Liquidity  Provider  under this
Agreement,  the amounts so payable to the Liquidity  Provider shall be increased
to the extent necessary to yield to the Liquidity Provider (after payment of all
Non-Excluded  Taxes)  interest  or any other  such  amounts  payable  under this
Agreement  at the  rates or in the  amounts  specified  in this  Agreement.  The
Liquidity  Provider  agrees  to use  reasonable  efforts  (consistent  with  its
internal   policy  and  legal  and  regulatory   restrictions)   to  change  the
jurisdiction  of its Facility  Office if making such change would avoid the need
for, or reduce the amount of, any such  additional  amounts that may  thereafter
accrue and would not, in the reasonable judgment of the Liquidity  Provider,  be
otherwise  disadvantageous to the Liquidity Provider. From time to time upon the
reasonable request of the Borrower,  the Liquidity Provider agrees to provide to
the Borrower two original  Internal  Revenue  Service Form W-8BEN or W-8ECI,  as
appropriate,  or any successor or other form prescribed by the Internal  Revenue
Service,  certifying that the Liquidity Provider is exempt from or entitled to a
reduced  rate of United  States  withholding  tax on  payments  pursuant to this
Agreement.

             (b) All payments (including, without limitation,  Advances) made by
the Liquidity Provider under this Agreement shall be made free and clear of, and
without  reduction for or on account of, any Taxes. If any Taxes are required to
be withheld or deducted  from any  amounts  payable to the  Borrower  under this
Agreement,  the Liquidity Provider shall (i) within the time prescribed therefor
by applicable law pay to the appropriate  governmental  or taxing  authority the
full  amount of any such  Taxes  (and any  additional  Taxes in  respect  of the
additional  amounts  payable  under clause (ii) hereof) and make such reports or
returns  in  connection  therewith  at the  time  or  times  and  in the  manner
prescribed by applicable law, and (ii) pay to the Borrower an additional  amount
which  (after  deduction of all such Taxes) will be  sufficient  to yield to the
Borrower  the full  amount  which  would  have been  received  by it had no such
withholding  or  deduction  been  made.  Within  30 days  after the date of each
payment  hereunder,  the  Liquidity  Provider  shall furnish to the Borrower the
original or a certified copy of (or other  documentary  evidence of) the payment
of the Taxes applicable to such payment.

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

             Section 3.04. PAYMENTS. The Borrower shall make or cause to be made
each payment to the Liquidity  Provider  under this Agreement so as to cause the
same to be received by the Liquidity Provider not later than 1:00 P.M. (New York
City time) on the day when due.  The  Borrower  shall make all such  payments in
lawful  money of the United  States of  America,  to the  Liquidity  Provider in
immediately  available  funds,  by wire  transfer to The Bank of New York,  ABA#
021000018 in favor of account number 890-0329-262, CSFB NY Loan Clearing.

             Section 3.05.  COMPUTATIONS.  All computations of interest based on
the Base Rate  shall be made on the  basis of a year of 365 or 366 days,  as the
case may  be, and all computations of  interest based on the LIBOR Rate shall be

<PAGE>

made on the basis of a year of 360 days,  in each case for the actual  number of
days  (including  the first day but  excluding  the last day)  occurring  in the
period for which such interest is payable.

             Section 3.06. PAYMENT ON NON-BUSINESS DAYS. Whenever any payment to
be made hereunder  shall be stated to be due on a day other than a Business Day,
such payment shall be made on the next succeeding Business Day and no additional
interest shall be due as a result (and if so made,  shall be deemed to have been
made when  due).  If any  payment in  respect  of  interest  on an Advance is so
deferred to the next succeeding  Business Day, such deferral shall not delay the
commencement  of the next Interest Period for such Advance (if such Advance is a
LIBOR  Advance) or reduce the number of days for which  interest will be payable
on such Advance on the next interest payment date for such Advance.

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

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

<PAGE>

following the Borrower's receipt of the applicable Termination Notice, that such
Final Advance not be converted from a Base Rate Advance to a LIBOR Advance).

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

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

             (e) Each  outstanding  Unapplied  Non-Extension  Advance shall bear
interest in an amount equal to the Investment  Earnings on amounts on deposit in
the  Class B Cash  Collateral  Account  plus  the  Applicable  Margin  for  such
Unapplied  Non-Extension  Advance on the amount of such Unapplied  Non-Extension
Advance from time to time, payable in arrears on each Regular Distribution Date.

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

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

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

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

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

<PAGE>

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

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

                                   ARTICLE IV

                              CONDITIONS PRECEDENT

             Section  4.01.  CONDITIONS  PRECEDENT TO  EFFECTIVENESS  OF SECTION
2.01.  Section 2.01 of this  Agreement  shall become  effective on and as of the
first date (the "EFFECTIVE  DATE") on which the following  conditions  precedent
have been satisfied or waived:

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

                    (i) This Agreement duly executed on behalf of the Borrower;

                    (ii) The Intercreditor  Agreement duly executed on behalf of
              each of the parties thereto;

                    (iii)  Fully  executed  copies  of  each  of  the  Operative
              Agreements  executed  and  delivered on or before the Closing Date
              (other than this Agreement and the Intercreditor Agreement);

                    (iv) A copy of the Prospectus Supplement and specimen copies
              of the Class B Certificates;

                    (v)  An  executed   copy  of  each   document,   instrument,
              certificate  and opinion  delivered  on or before the Closing Date
              pursuant  to  the  Class  B  Trust  Agreement,  the  Intercreditor
              Agreement and the other Operative  Agreements (in the case of each
              such   opinion,   other  than  the  opinion  of  counsel  for  the
              Underwriters,  either  addressed  to  the  Liquidity  Provider  or
              accompanied by a letter from the counsel rendering such opinion to

<PAGE>

              the effect that the Liquidity Provider is entitled to rely on such
              opinion  as of  its  date as if it were addressed to the Liquidity
              Provider);

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

                    (vii) An agreement from  Continental,  pursuant to which (i)
              Continental  agrees  to  provide  copies  of  quarterly  financial
              statements  and  audited  annual   financial   statements  to  the
              Liquidity  Provider,  and such other  information as the Liquidity
              Provider shall reasonably request with respect to the transactions
              contemplated  by the Operative  Agreements,  in each case, only to
              the  extent  that   Continental   is  obligated  to  provide  such
              information  pursuant to Section  8.2.1 of the Leases  (related to
              Leased  Aircraft) or the  corresponding  section of the Indentures
              (related  to  Owned  Aircraft)  to the  parties  thereto  and (ii)
              Continental  agrees to allow the  Liquidity  Provider  to  inspect
              Continental's  books and records regarding such transactions,  and
              to discuss  such  transactions  with  officers  and  employees  of
              Continental; and

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

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

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

             (d) All  conditions  precedent to the issuance of the  Certificates
       under the Trust  Agreements  shall have been  satisfied  or  waived,  all
       conditions   precedent  to  the  effectiveness  of  the  other  Liquidity
       Facilities  shall  have been  satisfied  or  waived,  and all  conditions
       precedent to the purchase of the Certificates by the  Underwriters  under
       the Underwriting  Agreement shall have been satisfied (unless any of such
       conditions precedent shall have been waived by the Underwriters).

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

             Section 4.02. CONDITIONS PRECEDENT TO BORROWING.  The obligation of
the Liquidity Provider to make an  Advance on  the  occasion of  each  Borrowing

<PAGE>

shall be subject to the conditions  precedent that the Effective Date shall have
occurred and, on or prior to the date of such Borrowing, the Borrower shall have
delivered a Notice of Borrowing  which  conforms to the terms and  conditions of
this Agreement and has been completed as may be required by the relevant form of
the Notice of Borrowing for the type of Advances requested.

                                    ARTICLE V

                                    COVENANTS

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

            (a)  PERFORMANCE  OF THIS AND OTHER  AGREEMENTS.  Punctually  pay or
      cause to be paid all amounts  payable by it under this  Agreement  and the
      other  Operative  Agreements  and  observe  and  perform  in all  material
      respects the  conditions,  covenants  and  requirements  applicable  to it
      contained in this Agreement and the other Operative Agreements.

            (b) REPORTING  REQUIREMENTS.  Furnish to the Liquidity Provider with
      reasonable promptness, such other information and data with respect to the
      transactions contemplated by the Operative Agreements as from time to time
      may be  reasonably  requested by the  Liquidity  Provider;  and permit the
      Liquidity  Provider,  upon  reasonable  notice,  to inspect the Borrower's
      books and  records  with  respect  to such  transactions  and to meet with
      officers and employees of the Borrower to discuss such transactions.

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

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

                                   ARTICLE VI

                           LIQUIDITY EVENTS OF DEFAULT

             Section  6.01.  LIQUIDITY  EVENTS OF DEFAULT.  If (a) any Liquidity
Event of Default has  occurred and is  continuing  and (b) there is a Performing
Note Deficiency,  the Liquidity Provider may, in its discretion,  deliver to the
Borrower a  Termination  Notice,  the effect of which  shall be to cause (i) the
obligation of the Liquidity Provider to make Advances hereunder to expire on the
fifth Business Day after the date on which such  Termination  Notice is received
by  the  Borrower,  (ii)  the  Borrower  to  promptly request, and the Liquidity

<PAGE>

Provider to promptly  make, a Final Advance in accordance  with Section  2.02(d)
hereof  and  Section  3.6(i)  of the  Intercreditor  Agreement,  (iii) all other
outstanding  Advances to be  automatically  converted  into Final  Advances  for
purposes of  determining  the  Applicable  Liquidity  Rate for interest  payable
thereon,  and (iv)  subject  to  Sections  2.07 and 2.09  hereof,  all  Advances
(including,  without  limitation,  any  Provider  Advance and  Applied  Provider
Advance),  any  accrued  interest  thereon  and any  other  amounts  outstanding
hereunder to become immediately due and payable to the Liquidity Provider.

                                   ARTICLE VII

                                  MISCELLANEOUS

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

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

      Borrower:               WILMINGTON TRUST COMPANY
                              Rodney Square North
                              1100 North Market Square
                              Wilmington, DE 19890-0001
                              Attention:  Corporate Trust Administration

                              Telephone:  (302) 651-1000
                              Telecopy:   (302) 651-8882

      Liquidity Provider:     CREDIT SUISSE FIRST BOSTON, NEW YORK
                              BRANCH
                              11 Madison Avenue
                              New York, NY 10010
                              Attention:  Robert Finney and Janko Gogolja

                              Telephone:  (212) 325-9038/0699
                              Telecopy:   (212) 325-8319

or, as to each of the foregoing, at such other address as shall be designated by
such  Person  in  a  written  notice  to  the  others.   All  such  notices  and
communications  shall be effective (i) if given by telecopier,  when transmitted
to the telecopier  number specified above, (ii) if given by mail, when deposited
in the mails  addressed as specified  above,  and (iii) if given by other means,
when delivered at the address  specified  above,  except that written notices to
the Liquidity  Provider pursuant to the provisions of Article II and Article III
hereof shall not be effective until received by the Liquidity  Provider.  A copy
of all  notices  delivered  hereunder  to  either  party  shall in  addition  be

<PAGE>

delivered  to each of the  parties  to the  Participation  Agreements  at  their
respective addresses set forth therein.

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

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

             Section 7.05. INDEMNIFICATION;  SURVIVAL OF CERTAIN PROVISIONS. The
Liquidity  Provider  shall be  indemnified  hereunder  to the  extent and in the
manner described in Section 8.1 of the Participation  Agreements with respect to
Owned Aircraft and Section 9.1 of the  Participation  Agreements with respect to
Leased Aircraft. In addition, the Borrower agrees to indemnify,  protect, defend
and hold harmless the Liquidity  Provider  from,  against and in respect of, and
shall pay on demand,  all Expenses of any kind or nature  whatsoever (other than
any Expenses of the nature  described in Section 3.01, 3.02 or 7.07 hereof or in
the Fee Letter applicable to this Agreement  (regardless of whether  indemnified
against pursuant to said Sections or in such Fee Letter)),  that may be imposed,
incurred by or asserted  against any Liquidity  Indemnitee,  in any way relating
to, resulting from, or arising out of or in connection with any action,  suit or
proceeding by any third party against such Liquidity  Indemnitee and relating to
this Agreement,  the Fee Letter applicable to this Agreement,  the Intercreditor
Agreement or any Financing Agreement; PROVIDED, HOWEVER, that the Borrower shall
not be required to  indemnify,  protect,  defend and hold harmless any Liquidity
Indemnitee in respect of any Expense of such Liquidity  Indemnitee to the extent
such Expense is (i) attributable to the gross  negligence or willful  misconduct
of such Liquidity  Indemnitee or any other Liquidity  Indemnitee,  (ii) ordinary
and usual operating  overhead expense,  or (iii)  attributable to the failure by
such  Liquidity  Indemnitee  or any other  Liquidity  Indemnitee  to  perform or
observe any  agreement,  covenant or  condition  on its part to be  performed or
observed  in  this  Agreement,  the  Intercreditor  Agreement,  the  Fee  Letter
applicable to this Agreement, the Tax Letter or any other Operative Agreement to
which it is a party.  The  indemnities  contained  in Section 8.1 or 9.1, as the
case may be, of the  Participation  Agreements,  and the  provisions of Sections
3.01, 3.02,  3.03, 3.09, 7.05 and 7.07 hereof,  shall survive the termination of
this Agreement.

             Section 7.06. LIABILITY OF THE LIQUIDITY PROVIDER.  (a) Neither the
Liquidity Provider nor any of its officers,  employees,  directors or Affiliates
shall  be  liable  or  responsible  for:  (i) the use  which  may be made of the
Advances  or any  acts  or  omissions  of the  Borrower  or any  beneficiary  or
transferee  in  connection   therewith;   (ii)  the  validity,   sufficiency  or
genuineness of documents,  or of any endorsement thereon, even if such documents
should prove to be in any or all respects invalid,  insufficient,  fraudulent or
forged;  or (iii) the  making of  Advances  by the  Liquidity  Provider  against
delivery of a Notice of Borrowing and other  documents  which do not comply with
the  terms  hereof;  PROVIDED,  HOWEVER,  that  the  Borrower shall have a claim

<PAGE>

against the Liquidity  Provider,  and the Liquidity  Provider shall be liable to
the Borrower,  to the extent of any damages  suffered by the Borrower which were
the result of (A) the Liquidity  Provider's  willful misconduct or negligence in
determining  whether documents presented hereunder comply with the terms hereof,
or (B)  any  breach  by the  Liquidity  Provider  of any of the  terms  of  this
Agreement,  including,  but not limited to, the Liquidity  Provider's failure to
make lawful  payment  hereunder  after the  delivery to it by the  Borrower of a
Notice of Borrowing strictly complying with the terms and conditions hereof.

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

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

             Section 7.08.  BINDING EFFECT;  PARTICIPATIONS.  (a) This Agreement
shall be binding upon and inure to the benefit of the Borrower and the Liquidity
Provider and their  respective  successors and assigns,  except that neither the
Liquidity  Provider  (except as  otherwise  provided in this  Section  7.08) nor
(except as  contemplated  by Section 3.08) the Borrower  shall have the right to
assign its rights or  obligations  hereunder or any interest  herein without the
prior written consent of the other party, subject to the requirements of Section
7.08(b). The Liquidity Provider may grant participations herein or in any of its
rights hereunder  (including,  without  limitation,  funded  participations  and
participations in rights  to  receive interest payments hereunder) and under the

<PAGE>

other  Operative  Agreements  to such Persons  (other than  Continental  and its
Affiliates) as the Liquidity Provider may in its sole discretion select, subject
to the requirements of Section 7.08(b).  No such granting of  participations  by
the Liquidity  Provider,  however,  will relieve the  Liquidity  Provider of its
obligations  hereunder.  In connection  with any  participation  or any proposed
participation,  the Liquidity  Provider may disclose to the  participant  or the
proposed participant any information that the Borrower is required to deliver or
to disclose to the Liquidity  Provider pursuant to this Agreement.  The Borrower
acknowledges and agrees that the Liquidity Provider's source of funds may derive
in part from its participants. Accordingly, references in this Agreement and the
other  Operative  Agreements  to  determinations,  reserve and capital  adequacy
requirements, increased costs, reduced receipts, additional amounts due pursuant
to Section 3.03 and the like as they pertain to the Liquidity  Provider shall be
deemed  also to  include  those  of  each of its  participants  that  are  banks
(subject,  in each case, to the maximum  amount that would have been incurred by
or attributable to the Liquidity  Provider  directly if the Liquidity  Provider,
rather than the participant, had held the interest participated).

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

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

<PAGE>

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

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

             Section  7.11.  SUBMISSION TO  JURISDICTION;  WAIVER OF JURY TRIAL;
WAIVER OF  IMMUNITY.  (a) Each of the  parties  hereto  hereby  irrevocably  and
unconditionally:

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

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

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

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

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

             (c) The Liquidity  Provider  hereby waives any immunity it may have
from  the  jurisdiction of  the courts of  the United States or of any State and

<PAGE>

waives any immunity any of its properties  located in the United States may have
from attachment or execution upon a judgment entered by any such court under the
United States Foreign Sovereign  Immunities Act of 1976 or any similar successor
legislation.

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

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

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

             Section 7.15. TRANSFER.  The Liquidity Provider hereby acknowledges
and consents to the  Transfer  contemplated  by the  Assignment  and  Assumption
Agreement.

             Section 7.16.  LIQUIDITY  PROVIDER'S  OBLIGATION TO MAKE  ADVANCES.
EXCEPT  AS  EXPRESSLY  SET  FORTH  IN THIS  AGREEMENT,  THE  OBLIGATIONS  OF THE
LIQUIDITY  PROVIDER TO MAKE ADVANCES  HEREUNDER,  AND THE  BORROWER'S  RIGHTS TO
DELIVER NOTICES OF BORROWING REQUESTING THE MAKING OF ADVANCES HEREUNDER,  SHALL
BE UNCONDITIONAL AND IRREVOCABLE,  AND SHALL BE PAID OR PERFORMED,  IN EACH CASE
STRICTLY IN ACCORDANCE WITH THE TERMS OF THIS AGREEMENT.

             Section 7.17.  HEAD OFFICE  OBLIGATION.  Credit Suisse First Boston
hereby agrees that the obligations of the Liquidity  Provider hereunder are also
the  obligations  of  Credit  Suisse  First  Boston's  Head  Office  in  Zurich,
Switzerland.  Accordingly,  any  beneficiary  of this  Agreement will be able to
proceed  directly  against  Credit Suisse First  Boston's Head Office in Zurich,
Switzerland,  if Credit  Suisse First  Boston's New York branch  defaults in its
obligation to such beneficiary under this Agreement.

<PAGE>

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

                                    WILMINGTON   TRUST   COMPANY,   not  in  its
                                          individual   capacity  but  solely  as
                                          Subordination   Agent,  as  agent  and
                                          trustee  for  the  Class B  Trust,  as
                                          Borrower

                                    By:_________________________________________
                                      Name:
                                      Title:

                                    CREDIT SUISSE FIRST BOSTON,
                                       NEW YORK BRANCH
                                    as Liquidity Provider

                                    By:_________________________________________
                                       Name:
                                       Title:

                                    By:_________________________________________
                                       Name:
                                       Title:

<PAGE>

                                                                      Annex I to
                                                      Revolving Credit Agreement

                      INTEREST ADVANCE NOTICE OF BORROWING

             The  undersigned,  a duly  authorized  signatory of the undersigned
borrower (the "BORROWER"),  hereby certifies to Credit Suisse First Boston,  New
York branch (the "LIQUIDITY  PROVIDER"),  with reference to the Revolving Credit
Agreement  (2000-1B)  dated as of March 15,  2000,  between the Borrower and the
Liquidity Provider (the "LIQUIDITY AGREEMENT"; the terms defined therein and not
otherwise  defined herein being used herein as therein  defined or  referenced),
that:

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

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

             (3) The  amount of the  Interest  Advance  requested  hereby (i) is
       $_______________.__,  to be  applied  in  respect  of the  payment of the
       interest  which was due and  payable on the Class B  Certificates  on the
       Distribution  Date,  (ii) does not include any amount with respect to the
       payment of  principal  of, or premium  on, the Class B  Certificates,  or
       principal of, or interest or premium on, the Class A-1 Certificates,  the
       Class  A-2  Certificates,  the Class  C-1  Certificates  or the Class C-2
       Certificates, (iii) was computed in accordance with the provisions of the
       Class B Certificates,  the Class B Trust Agreement and the  Intercreditor
       Agreement (a copy of which computation is attached hereto as Schedule I),
       (iv) does not exceed the Maximum Available Commitment on the date hereof,
       (v) does not include any amount of interest  which was due and payable on
       the Class B  Certificates  on such  Distribution  Date but which  remains
       unpaid due to the failure of the  Depositary to pay any amount of accrued
       interest on the Deposits on such  Distribution Date and (vi) has not been
       and is not the subject of a prior or contemporaneous Notice of Borrowing.

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

             The Borrower hereby  acknowledges  that,  pursuant to the Liquidity
Agreement,  the making of the  Interest  Advance as  requested by this Notice of
Borrowing  shall  automatically reduce, subject  to  reinstatement in accordance

<PAGE>

with the terms of the Liquidity  Agreement,  the Maximum Available Commitment by
an amount  equal to the  amount of the  Interest  Advance  requested  to be made
hereby as set forth in clause (i) of  paragraph  (3) of this Notice of Borrowing
and such reduction shall automatically result in corresponding reductions in the
amounts available to be borrowed pursuant to a subsequent Advance.

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

                                    WILMINGTON TRUST COMPANY,
                                          not in its individual capacity but
                                          solely as Subordination Agent, as
                                          Borrower

                                    By:_________________________________________
                                       Name:
                                       Title:

<PAGE>

              SCHEDULE I TO INTEREST ADVANCE NOTICE OF BORROWING

  [Insert Copy of Computations in accordance with Interest Advance Notice of
                                  Borrowing]

<PAGE>

                                                                     Annex II to
                                                      Revolving Credit Agreement

                  NON-EXTENSION ADVANCE NOTICE OF BORROWING

             The  undersigned,  a duly  authorized  signatory of the undersigned
borrower (the "BORROWER"),  hereby certifies to Credit Suisse First Boston,  New
York branch (the "LIQUIDITY  PROVIDER"),  with reference to the Revolving Credit
Agreement  (2000-1B)  dated as of March 15,  2000,  between the Borrower and the
Liquidity Provider (the "LIQUIDITY AGREEMENT"; the terms defined therein and not
otherwise  defined herein being used herein as therein  defined or  referenced),
that:

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

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

             (3) The amount of the Non-Extension Advance requested hereby (i) is
       $_______________.__, which equals the Maximum Available Commitment on the
       date hereof and is to be applied in respect of the funding of the Class B
       Cash  Collateral  Account  in  accordance  with  Section  3.6(d)  of  the
       Intercreditor Agreement, (ii) does not include any amount with respect to
       the payment of the principal of, or premium on, the Class B Certificates,
       or principal  of, or interest or premium on, the Class A-1  Certificates,
       the Class A-2  Certificates,  the Class C-1 Certificates or the Class C-2
       Certificates, (iii) was computed in accordance with the provisions of the
       Class B Certificates,  the Class B Trust Agreement and the  Intercreditor
       Agreement (a copy of which computation is attached hereto as Schedule I),
       and  (iv)  has  not  been  and  is  not  the   subject   of  a  prior  or
       contemporaneous Notice of Borrowing under the Liquidity Agreement.

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

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

<PAGE>

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

                                    WILMINGTON TRUST COMPANY,
                                          not in its individual capacity but
                                          solely as Subordination Agent, as
                                          Borrower

                                    By:_________________________________________
                                       Name:
                                       Title:

<PAGE>

           SCHEDULE I TO NON-EXTENSION ADVANCE NOTICE OF BORROWING

 [Insert Copy of computations in accordance with Non-Extension Advance Notice
                                of Borrowing]

<PAGE>

                                                                    Annex III to
                                                      Revolving Credit Agreement

                      DOWNGRADE ADVANCE NOTICE OF BORROWING

             The  undersigned,  a duly  authorized  signatory of the undersigned
borrower (the "BORROWER"),  hereby certifies to Credit Suisse First Boston,  New
York branch (the "LIQUIDITY  PROVIDER"),  with reference to the Revolving Credit
Agreement  (2000-1B)  dated as of March 15,  2000,  between the Borrower and the
Liquidity Provider (the "LIQUIDITY AGREEMENT"; the terms defined therein and not
otherwise  defined herein being used herein as therein  defined or  referenced),
that:

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

             (2) The Borrower is  delivering  this Notice of  Borrowing  for the
       making of the Downgrade Advance by the Liquidity  Provider to be used for
       the funding of the Class B Cash  Collateral  Account in  accordance  with
       Section  3.6(c)  of  the   Intercreditor   Agreement  by  reason  of  the
       downgrading  of the  short-term  unsecured  debt rating of the  Liquidity
       Provider issued by either Rating Agency below the Threshold Rating, which
       Advance  is  requested  to be made on  __________,  ____.  The  Downgrade
       Advance  should be  transferred  to [name of  bank/wire  instructions/ABA
       number] in favor of account number [ ], reference [ ].

             (3) The amount of the  Downgrade  Advance  requested  hereby (i) is
       $_______________.__, which equals the Maximum Available Commitment on the
       date hereof and is to be applied in respect of the funding of the Class B
       Cash  Collateral  Account  in  accordance  with  Section  3.6(c)  of  the
       Intercreditor Agreement, (ii) does not include any amount with respect to
       the payment of the principal of, or premium on, the Class B Certificates,
       or principal  of, or interest or premium on, the Class A-1  Certificates,
       the Class A-2  Certificates,  the Class C-1 Certificates or the Class C-2
       Certificates, (iii) was computed in accordance with the provisions of the
       Class B Certificates,  the Class B Trust Agreement and the  Intercreditor
       Agreement (a copy of which computation is attached hereto as Schedule I),
       and  (iv)  has  not  been  and  is  not  the   subject   of  a  prior  or
       contemporaneous Notice of Borrowing under the Liquidity Agreement.

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

             The Borrower hereby  acknowledges  that,  pursuant to the Liquidity
Agreement,  (A) the making of the Downgrade  Advance as requested by this Notice
of Borrowing shall automatically and irrevocably terminate the obligation of the
Liquidity  Provider  to make further Advances under the Liquidity Agreement; and

<PAGE>

(B)  following the making by the  Liquidity  Provider of the  Downgrade  Advance
requested by this Notice of  Borrowing,  the  Borrower  shall not be entitled to
request any further Advances under the Liquidity Agreement.

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

                                    WILMINGTON TRUST COMPANY,
                                          not in its individual capacity but
                                          solely as Subordination Agent, as
                                          Borrower

                                    By:_________________________________________
                                       Name:
                                       Title:

<PAGE>

               SCHEDULE I TO DOWNGRADE ADVANCE NOTICE OF BORROWING

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

<PAGE>

                                                                     Annex IV to
                                                      Revolving Credit Agreement

                        FINAL ADVANCE NOTICE OF BORROWING

             The  undersigned,  a duly  authorized  signatory of the undersigned
borrower (the "BORROWER"),  hereby certifies to Credit Suisse First Boston,  New
York branch (the "LIQUIDITY  PROVIDER"),  with reference to the Revolving Credit
Agreement  (2000-1B)  dated as of March 15,  2000,  between the Borrower and the
Liquidity Provider (the "LIQUIDITY AGREEMENT"; the terms defined therein and not
otherwise  defined herein being used herein as therein  defined or  referenced),
that:

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

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

             (3)  The  amount  of the  Final  Advance  requested  hereby  (i) is
       $_________________.__,  which equals the Maximum Available  Commitment on
       the date  hereof and is to be  applied  in respect of the  funding of the
       Class B Cash Collateral  Account in accordance with Section 3.6(i) of the
       Intercreditor Agreement, (ii) does not include any amount with respect to
       the payment of principal of, or premium on, the Class B Certificates,  or
       principal of, or interest or premium on, the Class A-1 Certificates,  the
       Class  A-2  Certificates,  the Class  C-1  Certificates  or the Class C-2
       Certificates, (iii) was computed in accordance with the provisions of the
       Class B Certificates,  the Class B Trust Agreement and the  Intercreditor
       Agreement (a copy of which computation is attached hereto as Schedule I),
       and  (iv)  has  not  been  and  is  not  the   subject   of  a  prior  or
       contemporaneous Notice of Borrowing.

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

<PAGE>

             (5) The Borrower hereby requests that the Advance  requested hereby
       be a Base Rate Advance [and that such Base Rate Advance be converted into
       a LIBOR Advance on the third  Business Day following your receipt of this
       notice.]<F1>

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

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

                                    WILMINGTON TRUST COMPANY,
                                          not in its individual capacity but
                                          solely as Subordination Agent, as
                                          Borrower

                                    By:_________________________________________
                                       Name:
                                       Title:

----------
<F1>
Bracketed language may be included at Borrower's option.

<PAGE>

               SCHEDULE I TO FINAL ADVANCE NOTICE OF BORROWING

   [Insert Copy of Computations in accordance with Final Advance Notice of
                                  Borrowing]

<PAGE>

                                                                      Annex V to
                                                      Revolving Credit Agreement

                              NOTICE OF TERMINATION

                                          [Date]

Wilmington Trust Company,
  as Subordination Agent, as Borrower
Rodney Square North
1100 North Market Square
Wilmington, DE 19890-0001

Attention:  Corporate Trust Administration

      Revolving Credit  Agreement dated as of March 15, 2000 between  Wilmington
      Trust  Company,  as  Subordination  Agent,  as agent and  trustee  for the
      Continental Airlines Pass Through Trust,  2000-1B-[O/S],  as Borrower, and
      Credit Suisse First Boston, New York branch (the "LIQUIDITY AGREEMENT")

Ladies and Gentlemen:

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

<PAGE>

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

                                    Very truly yours,

                                    Credit Suisse First Boston,
                                       New York branch
                                       as Liquidity Provider

                                    By:_________________________________________
                                       Name:
                                       Title:

                                    By:_________________________________________
                                       Name:
                                       Title:

cc:   Wilmington Trust Company,
        as Class B Trustee

<PAGE>

                                                                     Annex VI to
                                                      Revolving Credit Agreement

                  NOTICE OF REPLACEMENT SUBORDINATION AGENT

[Date]
Attention:

      Revolving Credit Agreement dated as of March 15, 2000,  between Wilmington
      Trust  Company,  as  Subordination  Agent,  as agent and  trustee  for the
      Continental Airlines Pass Through Trust,  2000-1B-[O/S],  as Borrower, and
      Credit Suisse First Boston, New York branch, (the "Liquidity Agreement")

Ladies and Gentlemen:

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

                        _____________________________
                              [Name of Transferee]

                        _____________________________
                             [Address of Transferee]

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

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

<PAGE>

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

                                    WILMINGTON TRUST COMPANY,
                                          not in its individual capacity but
                                          solely as Subordination Agent, as
                                          Borrower

                                    By:_________________________________________
                                       Name:
                                       Title:================================================================================

                           REVOLVING CREDIT AGREEMENT
                                   (2000-1C-1)

                           DATED AS OF MARCH 15, 2000

                                     BETWEEN

                            WILMINGTON TRUST COMPANY,

                             AS SUBORDINATION AGENT,
                          AS AGENT AND TRUSTEE FOR THE
                CONTINENTAL AIRLINES PASS THROUGH TRUST 2000-1C-1

                                   AS BORROWER

                                       AND

                      MORGAN STANLEY CAPITAL SERVICES INC.

                              AS LIQUIDITY PROVIDER

================================================================================

                                   RELATING TO

                CONTINENTAL AIRLINES PASS THROUGH TRUST 2000-1C-1
             8.499% CONTINENTAL AIRLINES PASS THROUGH CERTIFICATES,
                                SERIES 2000-1C-1

<PAGE>

                                TABLE OF CONTENTS

                                                                            PAGE

ARTICLE I  DEFINITIONS........................................................1
     Section 1.01.  Certain Defined Terms ....................................1

ARTICLE II  AMOUNT AND TERMS OF THE COMMITMENT ...............................7
     Section 2.01.  The Advances..............................................7
     Section 2.02.  Making the Advances.......................................7
     Section 2.03.  Fees .....................................................9
     Section 2.04.  Reductions or Termination of the Maximum Commitment.......9
     Section 2.05.  Repayments of Interest Advances or the Final Advance.....10
     Section 2.06.  Repayments of Provider Advances..........................10
     Section 2.07.  Payments to the Liquidity Provider Under the
                    Intercreditor Agreement..................................11
     Section 2.08.  Book Entries.............................................11
     Section 2.09.  Payments from Available Funds Only.......................12
     Section 2.10.  Extension of the Expiry Date; Non-Extension Advance......12

ARTICLE III  OBLIGATIONS OF THE BORROWER.....................................12
     Section 3.01.  Increased Costs..........................................12
     Section 3.02.  Capital Adequacy.........................................13
     Section 3.03.  Payments Free of Deductions..............................14
     Section 3.04.  Payments.................................................15
     Section 3.05.  Computations.............................................15
     Section 3.06.  Payment on Non-Business Days.............................15
     Section 3.07.  Interest.................................................15
     Section 3.08.  Replacement of Borrower..................................16
     Section 3.09.  Funding Loss Indemnification.............................17
     Section 3.10.  Illegality...............................................17

ARTICLE IV  CONDITIONS PRECEDENT.............................................17
     Section 4.01.  Conditions Precedent to Effectiveness of Section 2.01....17
     Section 4.02.  Conditions Precedent to Borrowing........................19

ARTICLE V  COVENANTS.........................................................19
     Section 5.01.  Affirmative Covenants of the Borrower....................19
     Section 5.02.  Negative Covenants of the Borrower.......................20

ARTICLE VI  LIQUIDITY EVENTS OF DEFAULT......................................20
     Section 6.01.  Liquidity Events of Default..............................20

ARTICLE VII  MISCELLANEOUS...................................................20
     Section 7.01.  Amendments, Etc..........................................20
     Section 7.02.  Notices, Etc. ...........................................20
     Section 7.03.  No Waiver; Remedies......................................21

<PAGE>

                                TABLE OF CONTENTS
                                  (Continued)

                                                                            PAGE

     Section 7.04.  Further Assurances.......................................21
     Section 7.05.  Indemnification; Survival of Certain Provisions..........21
     Section 7.06.  Liability of the Liquidity Provider......................22
     Section 7.07.  Costs, Expenses and Taxes................................22
     Section 7.08.  Binding Effect; Participations...........................23
     Section 7.09.  Severability.............................................24
     Section 7.10.  GOVERNING LAW............................................24
     Section 7.11.  Submission to Jurisdiction; Waiver of Jury Trial;
                    Waiver of Immunity ......................................25
     Section 7.12.  Execution in Counterparts................................25
     Section 7.13.  Entirety.................................................26
     Section 7.14.  Headings.................................................26
     Section 7.15.  Transfer.................................................26
     Section 7.16.  LIQUIDITY PROVIDER'S OBLIGATION TO MAKE ADVANCES.........26

ANNEX I          Interest Advance Notice of Borrowing

ANNEX II         Non-Extension Advance Notice of Borrowing

ANNEX III        Downgrade Advance Notice of Borrowing

ANNEX IV         Final Advance Notice of Borrowing

ANNEX V          Notice of Termination

ANNEX VI         Notice of Replacement Subordination Agent

EXHIBIT I        Form of Guarantee Agreement

<PAGE>

                     REVOLVING CREDIT AGREEMENT (2000-1C-1)

This REVOLVING CREDIT AGREEMENT  (2000-1C-1) dated as of March 15, 2000, between
WILMINGTON TRUST COMPANY, a Delaware corporation, not in its individual capacity
but solely as  Subordination  Agent under the  Intercreditor  Agreement (each as
defined below),  as agent and trustee for the Class C-1 Trust (as defined below)
(the  "BORROWER"),  and MORGAN  STANLEY  CAPITAL  SERVICES  INC., a  corporation
organized under the laws of the State of Delaware (the "LIQUIDITY PROVIDER").

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

            WHEREAS,  pursuant to the Class C-1 Trust  Agreement  (such term and
all other capitalized terms used in these recitals having the meanings set forth
or  referred to in Section  1.01),  the Class C-1 Trust is issuing the Class C-1
Certificates;

            WHEREAS,  the Borrower,  in order to support the timely payment of a
portion of the interest on the Class C-1  Certificates  in accordance with their
terms,  has  requested  the  Liquidity  Provider  to enter into this  Agreement,
providing in part for the Borrower to request in  specified  circumstances  that
Advances be made hereunder; and

            WHEREAS,  the Liquidity  Provider has requested  Morgan Stanley Dean
Witter & Co. (the  "GUARANTOR") to enter into a Guarantee  Agreement in the form
attached hereto as Exhibit I, providing for the full and unconditional guarantee
of the Liquidity  Provider's  obligations  under this Agreement (the  "GUARANTEE
AGREEMENT").

            NOW, THEREFORE, in consideration of the premises, the parties hereto
agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

            Section 1.01.  CERTAIN DEFINED TERMS.  (a)  DEFINITIONS.  As used in
this Agreement and unless otherwise expressly  indicated,  or unless the context
clearly  requires  otherwise,  the  following  capitalized  terms shall have the
following respective meanings for all purposes of this Agreement:

            "ADDITIONAL  COST" has the meaning  assigned to such term in Section
      3.01.

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

            "APPLICABLE LIQUIDITY RATE" has the meaning assigned to such term in
      Section 3.07(g).

<PAGE>

            "APPLICABLE  MARGIN" means (x) with respect to any Unpaid Advance or
      Applied  Provider  Advance,  2.25% per annum,  or (y) with  respect to any
      Unapplied Provider Advance, the rate per annum specified in the Fee Letter
      applicable to this Agreement.

            "APPLIED DOWNGRADE ADVANCE" has the meaning assigned to such term in
      Section 2.06(a).

            "APPLIED  NON-EXTENSION  ADVANCE"  has the meaning  assigned to such
      term in Section 2.06(a).

            "APPLIED  PROVIDER ADVANCE" has the meaning assigned to such term in
      Section 2.06(a).

            "ASSIGNMENT  AND  ASSUMPTION  AGREEMENT"  means the  Assignment  and
      Assumption  to be entered into between the Borrower and the trustee of the
      Successor  Trust,  substantially  in the form of  Exhibit  C to the  Trust
      Supplement No. 2000-1C-1-O,  dated as of the date hereof,  relating to the
      Class C-1 Trust.

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

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

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

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

            "BUSINESS  DAY" means any day other  than a Saturday  or Sunday or a
      day on which  commercial  banks are  required  or  authorized  to close in
      Houston,  Texas,  New  York,  New  York  or,  so  long  as any  Class  C-1
      Certificate  is  outstanding,  the city and  state in which  the Class C-1
      Trustee,  the Borrower or any Loan Trustee  maintains its Corporate  Trust
      Office or receives or disburses funds, and, if the applicable Business Day
      relates to any Advance or other amount bearing interest based on the LIBOR
      Rate, on which dealings are carried on in the London interbank market.

            "DEPOSIT AGREEMENT" means the Deposit Agreement dated as of the date
      hereof between First Security Bank, National Association, as Escrow Agent,

<PAGE>

      Credit Suisse First Boston, New York branch, as Depositary,  pertaining to
      the  Class  C-1  Certificates,  as the same may be  amended,  modified  or
      supplemented from time to time in accordance with the terms thereof.

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

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

            "DOWNGRADE  ADVANCE"  means an  Advance  made  pursuant  to  Section
      2.02(c).

            "EFFECTIVE  DATE" has the meaning  specified  in Section  4.01.  The
      delivery of the  certificate  of the Liquidity  Provider  contemplated  by
      Section  4.01(e) shall be conclusive  evidence that the Effective Date has
      occurred.

            "EXCLUDED  TAXES" means (i) taxes  imposed on the overall net income
      of the Liquidity  Provider or of its Facility  Office by the  jurisdiction
      where such Liquidity  Provider's  principal office or such Facility Office
      is located, and (ii) Excluded Withholding Taxes.

            "EXCLUDED  WITHHOLDING TAXES" means (i) withholding Taxes imposed by
      the United  States  except (but only in the case of a successor  Liquidity
      Provider  organized  under the laws of a  jurisdiction  outside the United
      States)  to the  extent  that such  United  States  withholding  Taxes are
      imposed as a result of any change in applicable law (excluding from change
      in  applicable  law for this purpose a change in an  applicable  treaty or
      other change in law  affecting  the  applicability  of a treaty) after the
      date hereof, or in the case of a successor Liquidity Provider (including a
      transferee of an Advance) or Facility Office, after the date on which such
      successor Liquidity Provider obtains its interest or on which the Facility
      Office is changed,  and (ii) any  withholding  Taxes imposed by the United
      States  which  are  imposed  or  increased  as a result  of the  Liquidity
      Provider  failing to deliver to the Borrower any  certificate  or document
      (which certificate or document in the good faith judgment of the Liquidity
      Provider it is legally entitled to provide) which is reasonably  requested
      by the Borrower to establish that payments under this Agreement are exempt
      from (or entitled to a reduced rate of) withholding Tax.

            "EXPENSES" means  liabilities,  obligations,  damages,  settlements,
      penalties,  claims,  actions,  suits, costs,  expenses,  and disbursements
      (including, without limitation, reasonable fees and disbursements of legal
      counsel and costs of  investigation),  provided  that  Expenses  shall not
      include any Taxes.

            "EXPIRY DATE" means March 13, 2001, initially,  or any date to which
      the Expiry Date is extended pursuant to Section 2.10.

            "FACILITY  OFFICE"  means  the  office  of  the  Liquidity  Provider
      presently  located  at New York,  New York,  or such  other  office as the
      Liquidity  Provider  from time to time shall  notify the  Borrower  as its
      Facility Office hereunder;  PROVIDED that the Liquidity Provider shall not
      change its Facility  Office to a Facility Office outside the United States
      of America except in accordance with Section 3.01, 3.02 or 3.03 hereof.

<PAGE>

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

            "GUARANTOR" has the meaning assigned to such term in the preliminary
      statements of this Agreement.

            "GUARANTEE  AGREEMENT" has the meaning  assigned to such term in the
      preliminary statements of this Agreement.

            "INTERCREDITOR  AGREEMENT" means the  Intercreditor  Agreement dated
      the date hereof, among the Trustees, the Liquidity Provider, the liquidity
      provider under each Liquidity Facility (other than this Agreement) and the
      Subordination Agent, as the same may be amended, supplemented or otherwise
      modified from time to time in accordance with its terms.

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

            "INTEREST PERIOD" means, with respect to any LIBOR Advance,  each of
      the following periods:

            (i)   the  period  beginning  on the third  Business  Day  following
                  either (x) the Liquidity  Provider's  receipt of the Notice of
                  Borrowing  for such  LIBOR  Advance or (y) the  withdrawal  of
                  funds  from the  Class  C-1 Cash  Collateral  Account  for the
                  purpose of paying  interest on the Class C-1  Certificates  as
                  contemplated  by Section  2.06(a)  hereof and, in either case,
                  ending on the next Regular Distribution Date; and

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

      PROVIDED,  HOWEVER, that if (x) the Final Advance shall have been made, or
      (y) other  outstanding  Advances  shall have been converted into the Final
      Advance,  then the Interest  Periods  shall be  successive  periods of one
      month  beginning  on  the  third  Business  Day  following  the  Liquidity
      Provider's  receipt of the Notice of Borrowing  for such Final Advance (in
      the case of clause (x) above) or the Regular  Distribution  Date following
      such conversion (in the case of clause (y) above).

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

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

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

<PAGE>

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

            "LIQUIDITY  EVENT OF DEFAULT" means the occurrence of either (a) the
      Acceleration of all of the Equipment Notes (PROVIDED that, with respect to
      the period prior to the Delivery  Period Expiry Date, such Equipment Notes
      have an aggregate outstanding principal balance in excess of $300,000,000)
      or (b) a Continental Bankruptcy Event.

            "LIQUIDITY  INDEMNITEE" means (i) the Liquidity  Provider,  (ii) the
      Guarantor, (iii) the respective directors,  officers, employees and agents
      of the Liquidity  Provider and the Guarantor,  and (iv) the successors and
      permitted  assigns of the persons  described in clauses (i) through (iii),
      inclusive.

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

            "MAXIMUM  AVAILABLE  COMMITMENT" shall mean,  subject to the proviso
      contained  in the  third  sentence  of  Section  2.02(a),  at any  time of
      determination,  (a) the  Maximum  Commitment  at such  time  LESS  (b) the
      aggregate  amount  of each  Interest  Advance  outstanding  at such  time;
      PROVIDED that following a Provider Advance or a Final Advance, the Maximum
      Available Commitment shall be zero.

            "MAXIMUM  COMMITMENT" means initially  $9,769,773.79 as the same may
      be reduced from time to time in accordance with Section 2.04(a).

            "NON-EXCLUDED TAX" has the meaning specified in Section 3.03.

            "NON-EXTENSION  ADVANCE"  means an Advance made  pursuant to Section
      2.02(b).

            "NOTICE OF BORROWING" has the meaning specified in Section 2.02(e).

            "NOTICE  OF  REPLACEMENT   SUBORDINATION   AGENT"  has  the  meaning
      specified in Section 3.08.

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

<PAGE>

            "PROSPECTUS  SUPPLEMENT" means the Prospectus Supplement dated March
      1, 2000 relating to the Certificates, as such Prospectus Supplement may be
      amended or supplemented.

            "PROVIDER  ADVANCE"  means a  Downgrade  Advance or a  Non-Extension
      Advance.

            "REFERENCE BANK" has the meaning specified in Section 7.08(a).

            "REGULATORY CHANGE" has the meaning assigned to such term in Section
      3.01.

            "REPLENISHMENT  AMOUNT"  has the  meaning  assigned  to such term in
      Section 2.06(b).

            "REQUIRED  AMOUNT"  means,  for any  day,  the sum of the  aggregate
      amount of interest,  calculated  at the rate per annum equal to the Stated
      Interest Rate for the Class C-1 Certificates, that would be payable on the
      Class C-1 Certificates on each of the three successive  semiannual Regular
      Distribution  Dates  immediately  following  such day or, if such day is a
      Regular  Distribution  Date, on such day and the succeeding two semiannual
      Regular  Distribution  Dates,  in each case calculated on the basis of the
      Pool Balance of the Class C-1  Certificates on such day and without regard
      to expected future payments of principal on the Class C-1 Certificates.

            "SUCCESSOR  TRUST" means  Continental  Airlines  Pass Through  Trust
      2000-1C-1-S.

            "TERMINATION DATE" means the earliest to occur of the following: (i)
      the  Expiry  Date;  (ii) the date on which the  Borrower  delivers  to the
      Liquidity Provider a certificate,  signed by a Responsible  Officer of the
      Borrower, certifying that all of the Class C-1 Certificates have been paid
      in full (or provision  has been made for such payment in  accordance  with
      the Intercreditor  Agreement and the Trust Agreements) or are otherwise no
      longer entitled to the benefits of this Agreement; (iii) the date on which
      the Borrower delivers to the Liquidity Provider a certificate, signed by a
      Responsible  Officer  of  the  Borrower,  certifying  that  a  Replacement
      Liquidity  Facility  has  been  substituted  for  this  Agreement  in full
      pursuant to Section 3.6(e) of the Intercreditor Agreement;  (iv) the fifth
      Business Day following the receipt by the Borrower of a Termination Notice
      from the Liquidity  Provider pursuant to Section 6.01 hereof;  and (v) the
      date on which no Advance is or may  (including by reason of  reinstatement
      as herein provided) become available for a Borrowing hereunder.

            "TERMINATION  NOTICE" means the Notice of Termination  substantially
      in the form of Annex V to this Agreement.

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

            "UNAPPLIED DOWNGRADE ADVANCE" means any Downgrade Advance other than
      an Applied Downgrade Advance.

<PAGE>

            "UNAPPLIED  PROVIDER  ADVANCE" means any Provider Advance other than
      an Applied Provider Advance.

            "UNPAID  ADVANCE"  has the meaning  assigned to such term in Section
      2.05.

            (b) TERMS DEFINED IN THE INTERCREDITOR  AGREEMENT.  For all purposes
of this  Agreement,  the  following  terms  shall have the  respective  meanings
assigned to such terms in the Intercreditor Agreement:

      "ACCELERATION",  "CERTIFICATES",  "CLASS  A-1  CERTIFICATES",  "CLASS  A-2
      CERTIFICATES",   "CLASS  B  CERTIFICATES",   "CLASS  C-1  CASH  COLLATERAL
      ACCOUNT", "CLASS C-1 CERTIFICATEHOLDERS", "CLASS C-1 CERTIFICATES", "CLASS
      C-1 TRUST",  "CLASS C-1 TRUST AGREEMENT",  "CLASS C-1 TRUSTEE",  CLASS C-2
      CERTIFICATES",  "CLOSING  DATE",  "CONTINENTAL",  "CONTINENTAL  BANKRUPTCY
      EVENT",  "CONTROLLING PARTY",  "CORPORATE TRUST OFFICE",  "DELIVERY PERIOD
      EXPIRY  DATE",  "DISTRIBUTION  DATE",  "DOWNGRADED  Facility",  "EQUIPMENT
      NOTES",  "FEE  LETTER",   "FINAL  LEGAL  DISTRIBUTION  DATE",   "FINANCING
      AGREEMENT",   "INDENTURE",   "INVESTMENT  EARNINGS",   "LEASED  AIRCRAFT",
      "LIQUIDITY FACILITY", "LIQUIDITY OBLIGATIONS",  "LOAN TRUSTEE", "MOODY'S",
      "NON-EXTENDED   FACILITY",    "NOTE   PURCHASE   Agreement",    "OPERATIVE
      AGREEMENTS",  "OWNED  AIRCRAFT",  "PARTICIPATION  AGREEMENT",  "PERFORMING
      EQUIPMENT  NOTE",  "PERSON",  "POOL BALANCE",  "RATING  AGENCY",  "RATINGS
      CONFIRMATION",   "REGULAR  DISTRIBUTION  DATE",   "REPLACEMENT   LIQUIDITY
      FACILITY",  "RESPONSIBLE OFFICER", "SCHEDULED PAYMENT", "SPECIAL PAYMENT",
      "STANDARD  &  POOR'S",  "STATED  INTEREST  Rate",  "SUBORDINATION  AGENT",
      "TAXES", "THRESHOLD RATING",  "TRANSFER",  "TRUST AGREEMENTS",  "TRUSTEE",
      "UNDERWRITERS", "UNDERWRITING Agreement", and "WRITTEN NOTICE".

                                   ARTICLE II

                       AMOUNT AND TERMS OF THE COMMITMENT

            Section  2.01.   THE  ADVANCES.   The  Liquidity   Provider   hereby
irrevocably  agrees, on the terms and conditions  hereinafter set forth, to make
Advances to the Borrower from time to time on any Business Day during the period
from the Effective Date until 12:00 Noon (New York City time) on the Expiry Date
(unless the obligations of the Liquidity Provider shall be earlier terminated in
accordance with the terms of Section 2.04(b)) in an aggregate amount at any time
outstanding not to exceed the Maximum Commitment.

            Section 2.02.  MAKING THE ADVANCES.  (a) Interest  Advances shall be
made in one or more  Borrowings by delivery to the Liquidity  Provider of one or
more written and  completed  Notices of Borrowing in  substantially  the form of
Annex I attached hereto,  signed by a Responsible Officer of the Borrower, in an
amount not exceeding the Maximum Available  Commitment at such time and shall be
used solely for the payment  when due of interest on the Class C-1  Certificates
at the Stated  Interest Rate therefor in accordance  with Section  3.6(a) of the
Intercreditor   Agreement.   Each   Interest   Advance  made   hereunder   shall
automatically  reduce the Maximum Available  Commitment and the amount available
to be borrowed  hereunder by subsequent  Advances by the amount of such Interest
Advance  (subject  to  reinstatement  as provided  in the next  sentence).  Upon

<PAGE>

repayment  to the  Liquidity  Provider  in full of the  amount  of any  Interest
Advance made pursuant to this Section  2.02(a),  together with accrued  interest
thereon  (as  provided  herein),  the  Maximum  Available  Commitment  shall  be
reinstated by the amount of such repaid Interest Advance,  but not to exceed the
Maximum Commitment;  PROVIDED,  however,  that the Maximum Available  Commitment
shall not be so reinstated at any time if (i) a Liquidity Event of Default shall
have occurred and be continuing and (ii) there is a Performing Note Deficiency.

            (b)   A Non-Extension Advance shall be made in a single Borrowing if
this  Agreement  is not  extended  in  accordance  with  Section  3.6(d)  of the
Intercreditor Agreement (unless a Replacement Liquidity Facility to replace this
Agreement  shall have been  delivered  to the Borrower as  contemplated  by said
Section 3.6(d) within the time period  specified in such Section) by delivery to
the  Liquidity  Provider  of a written  and  completed  Notice of  Borrowing  in
substantially  the form of Annex II  attached  hereto,  signed by a  Responsible
Officer of the Borrower,  in an amount equal to the Maximum Available Commitment
at such time, and shall be used to fund the Class C-1 Cash Collateral Account in
accordance  with said  Section  3.6(d) and Section  3.6(f) of the  Intercreditor
Agreement.

            (c)   A Downgrade Advance shall be made in a single Borrowing upon a
downgrading of the Guarantor's short-term unsecured debt rating issued by either
Rating Agency below the applicable  Threshold Rating or the Guarantee  Agreement
ceasing to be in full force and effect or becoming  invalid or  unenforceable or
the  Guarantor  denying its  liability  thereunder  (as  provided for in Section
3.6(c) of the Intercreditor  Agreement) unless a Replacement  Liquidity Facility
to replace this Agreement shall have been  previously  delivered to the Borrower
in accordance with said Section 3.6(c), by delivery to the Liquidity Provider of
a written and completed Notice of Borrowing in  substantially  the form of Annex
III attached  hereto,  signed by a Responsible  Officer of the  Borrower,  in an
amount equal to the Maximum Available Commitment at such time, and shall be used
to fund the Class C-1 Cash  Collateral  Account in accordance  with said Section
3.6(c) and Section 3.6(f) of the Intercreditor Agreement.

            (d)   A Final Advance shall be made in a single  Borrowing  upon the
receipt by the  Borrower of a  Termination  Notice from the  Liquidity  Provider
pursuant  to Section  6.01 hereof by  delivery  to the  Liquidity  Provider of a
written and completed Notice of Borrowing in substantially  the form of Annex IV
attached hereto,  signed by a Responsible Officer of the Borrower,  in an amount
equal to the Maximum  Available  Commitment  at such time,  and shall be used to
fund the Class C-1 Cash  Collateral  Account (in accordance with Sections 3.6(f)
and 3.6(i) of the Intercreditor Agreement).

            (e)   Each  Borrowing  shall be made on notice in writing (a "NOTICE
OF BORROWING") in substantially  the form required by Section 2.02(a),  2.02(b),
2.02(c) or 2.02(d),  as the case may be, given by the Borrower to the  Liquidity
Provider.  If a Notice of  Borrowing  is delivered by the Borrower in respect of
any  Borrowing no later than 1:00 p.m.  (New York City time) on a Business  Day,

<PAGE>

upon  satisfaction  of the  conditions  precedent set forth in Section 4.02 with
respect to a requested Borrowing, the Liquidity Provider shall make available to
the Borrower,  in accordance with its payment  instructions,  the amount of such
Borrowing in U.S. dollars and immediately available funds, before 4:00 p.m. (New
York City time) on such Business Day or on such later  Business Day specified in
such Notice of Borrowing.  If a Notice of Borrowing is delivered by the Borrower
in respect of any  Borrowing  on a day that is not a Business  Day or after 1:00
p.m. (New York City time) on a Business Day, upon satisfaction of the conditions
precedent set forth in Section 4.02 with respect to a requested  Borrowing,  the
Liquidity Provider shall make available to the Borrower,  in accordance with its
payment  instructions,  the  amount of such  Borrowing  in U.S.  dollars  and in
immediately available funds, before 12:00 Noon (New York City time) on the first
Business Day next following the day of receipt of such Notice of Borrowing or on
such later  Business Day  specified by the Borrower in such Notice of Borrowing.
Payments  of  proceeds  of a  Borrowing  shall  be  made  by  wire  transfer  of
immediately  available  funds to the  Borrower  in  accordance  with  such  wire
transfer  instructions  as the Borrower  shall  furnish from time to time to the
Liquidity  Provider  for  such  purpose.  Each  Notice  of  Borrowing  shall  be
irrevocable and binding on the Borrower.

            (f)   Upon the making of any Advance requested  pursuant to a Notice
of Borrowing,  in  accordance  with the  Borrower's  payment  instructions,  the
Liquidity  Provider shall be fully  discharged of its obligation  hereunder with
respect  to such  Notice of  Borrowing,  and the  Liquidity  Provider  shall not
thereafter  be  obligated to make any further  Advances  hereunder in respect of
such  Notice  of  Borrowing  to the  Borrower  or to any  other  Person.  If the
Liquidity  Provider makes an Advance requested pursuant to a Notice of Borrowing
before 12:00 Noon (New York City time) on the second Business Day after the date
of payment specified in said Section 2.02(e),  the Liquidity Provider shall have
fully  discharged its obligations  hereunder with respect to such Advance and an
event of default shall not have occurred hereunder.  Following the making of any
Advance  pursuant  to Section  2.02(b),  (c) or (d) hereof to fund the Class C-1
Cash  Collateral  Account,  the Liquidity  Provider shall have no interest in or
rights to the Class  C-1 Cash  Collateral  Account,  such  Advance  or any other
amounts from time to time on deposit in the Class C-1 Cash  Collateral  Account;
PROVIDED that the foregoing  shall not affect or impair the  obligations  of the
Subordination Agent to make the distributions  contemplated by Section 3.6(e) or
(f) of the Intercreditor  Agreement,  and provided  further,  that the foregoing
shall not  affect or impair  the  rights of the  Liquidity  Provider  to provide
written  instructions with respect to the investment and reinvestment of amounts
in the Cash Collateral  Accounts to the extent provided in Section 2.2(b) of the
Intercreditor  Agreement.  By  paying  to  the  Borrower  proceeds  of  Advances
requested by the Borrower in accordance  with the provisions of this  Agreement,
the  Liquidity   Provider  makes  no   representation  as  to,  and  assumes  no
responsibility for, the correctness or sufficiency for any purpose of the amount
of the Advances so made and requested.

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

            Section 2.04. REDUCTIONS OR TERMINATION OF THE MAXIMUM COMMITMENT.

            (a)   AUTOMATIC REDUCTION. Promptly following each date on which the
Required Amount is reduced as a result of a reduction in the Pool Balance of the
Class C-1 Certificates or otherwise,  the Maximum Commitment shall automatically
be reduced to an amount equal to such reduced  Required Amount (as calculated by
the Borrower); PROVIDED that on the first Regular Distribution Date, the Maximum
Commitment  shall  automatically  be reduced to the then  Required  Amount.  The
Borrower  shall  give  notice of any such  automatic  reduction  of the  Maximum

<PAGE>

Commitment to the  Liquidity  Provider  within two Business  Days  thereof.  The
failure  by the  Borrower  to furnish  any such  notice  shall not  affect  such
automatic reduction of the Maximum Commitment.

            (b)   TERMINATION.  Upon the making of any Provider Advance or Final
Advance  hereunder or the occurrence of the Termination  Date, the obligation of
the Liquidity  Provider to make further Advances  hereunder shall  automatically
and irrevocably terminate, and the Borrower shall not be entitled to request any
further Borrowing hereunder.

            Section 2.05.  REPAYMENTS OF INTEREST ADVANCES OR THE FINAL ADVANCE.
Subject to Sections  2.06,  2.07 and 2.09 hereof,  the Borrower  hereby  agrees,
without notice of an Advance or demand for repayment from the Liquidity Provider
(which notice and demand are hereby waived by the Borrower), to pay, or to cause
to be paid,  to the  Liquidity  Provider  on each  date on which  the  Liquidity
Provider shall make an Interest Advance or the Final Advance, an amount equal to
(a) the amount of such Advance (any such Advance,  until repaid,  is referred to
herein as an "UNPAID  ADVANCE"),  plus (b)  interest  on the amount of each such
Unpaid  Advance as provided in Section  3.07  hereof;  PROVIDED  that if (i) the
Liquidity Provider shall make a Provider Advance at any time after making one or
more Interest  Advances which shall not have been repaid in accordance with this
Section 2.05 or (ii) this Liquidity Facility shall become a Downgraded  Facility
or Non-Extended  Facility at any time when  unreimbursed  Interest Advances have
reduced the Maximum  Available  Commitment to zero, then such Interest  Advances
shall  cease to  constitute  Unpaid  Advances  and  shall be deemed to have been
changed into an Applied Downgrade Advance or an Applied  Non-Extension  Advance,
as the case may be,  for all  purposes  of this  Agreement  (including,  without
limitation,  for the  purpose  of  determining  when such  Interest  Advance  is
required to be repaid to the Liquidity  Provider in accordance with Section 2.06
and for the  purposes  of  Section  2.06(b)).  The  Borrower  and the  Liquidity
Provider  agree that the  repayment in full of each  Interest  Advance and Final
Advance on the date such  Advance is made is  intended  to be a  contemporaneous
exchange for new value given to the Borrower by the Liquidity Provider.

            Section 2.06. REPAYMENTS OF PROVIDER ADVANCES.  (a) Amounts advanced
hereunder in respect of a Provider  Advance  shall be deposited in the Class C-1
Cash  Collateral  Account,  invested  and  withdrawn  from  the  Class  C-1 Cash
Collateral  Account  as  set  forth  in  Sections  3.6(c),  (d)  and  (f) of the
Intercreditor  Agreement.  The Borrower agrees to pay to the Liquidity Provider,
on each Regular Distribution Date,  commencing on the first Regular Distribution
Date after the making of a Provider Advance, interest on the principal amount of
any such Provider Advance as provided in Section 3.07; PROVIDED,  HOWEVER,  that
amounts  in  respect of a  Provider  Advance  withdrawn  from the Class C-1 Cash
Collateral  Account  for  the  purpose  of  paying  interest  on the  Class  C-1
Certificates  in accordance with Section 3.6(f) of the  Intercreditor  Agreement
(the amount of any such withdrawal being (y) in the case of a Downgrade Advance,
an "APPLIED DOWNGRADE  ADVANCE" and (z) in the case of a Non-Extension  Advance,
an "APPLIED  NON-EXTENSION  ADVANCE"  and,  together  with an Applied  Downgrade
Advance,  an "APPLIED  PROVIDER  ADVANCE") shall thereafter  (subject to Section
2.06(b)) be treated as an Interest  Advance under this Agreement for purposes of
determining the Applicable Liquidity Rate for interest payable thereon; PROVIDED
FURTHER,  HOWEVER,  that if,  following  the making of a Provider  Advance,  the
Liquidity  Provider  delivers a Termination  Notice to the Borrower  pursuant to
Section 6.01 hereof,  such  Provider  Advance  shall  thereafter be treated as a

<PAGE>

Final Advance under this  Agreement for purposes of  determining  the Applicable
Liquidity Rate for interest payable  thereon.  Subject to Sections 2.07 and 2.09
hereof,  immediately  upon the withdrawal of any amounts from the Class C-1 Cash
Collateral  Account  on account  of a  reduction  in the  Required  Amount,  the
Borrower  shall  repay to the  Liquidity  Provider  a  portion  of the  Provider
Advances in a principal  amount equal to such  reduction,  plus  interest on the
principal amount prepaid as provided in Section 3.07 hereof.

            (b)   At any time when an Applied  Provider  Advance (or any portion
thereof)  is  outstanding,  upon the  deposit  in the Class C-1 Cash  Collateral
Account  of any amount  pursuant  to clause  "THIRD"  of  Section  2.4(b) of the
Intercreditor  Agreement,  clause  "THIRD" of Section  3.2 of the  Intercreditor
Agreement or clause "FOURTH" of Section 3.3 of the Intercreditor  Agreement (any
such amount being a  "REPLENISHMENT  AMOUNT") for the purpose of replenishing or
increasing the balance  thereof up to the Required  Amount at such time, (i) the
aggregate  outstanding principal amount of all Applied Provider Advances (and of
Provider Advances treated as an Interest Advance for purposes of determining the
Applicable  Liquidity Rate for interest  payable thereon) shall be automatically
reduced  by the  amount  of such  Replenishment  Amount  and (ii) the  aggregate
outstanding  principal  amount  of all  Unapplied  Provider  Advances  shall  be
automatically increased by the amount of such Replenishment Amount.

            (c)   Upon  the  provision of a  Replacement  Liquidity  Facility in
replacement  of  this  Agreement  in  accordance  with  Section  3.6(e)  of  the
Intercreditor  Agreement,  amounts  remaining  on  deposit in the Class C-1 Cash
Collateral  Account after giving effect to any Applied  Provider  Advance on the
date of such replacement shall be reimbursed to the Liquidity Provider, but only
to the extent  such  amounts  are  necessary  to repay in full to the  Liquidity
Provider all amounts owing to it hereunder.

            Section  2.07.   PAYMENTS  TO  THE  LIQUIDITY   PROVIDER  UNDER  THE
INTERCREDITOR  AGREEMENT.  In order to provide for payment or  repayment  to the
Liquidity  Provider  of  any  amounts  hereunder,  the  Intercreditor  Agreement
provides  that amounts  available  and referred to in Articles II and III of the
Intercreditor  Agreement,  to  the  extent  payable  to the  Liquidity  Provider
pursuant  to  the  terms  of the  Intercreditor  Agreement  (including,  without
limitation, Section 3.6(f) of the Intercreditor Agreement), shall be paid to the
Liquidity Provider in accordance with the terms thereof.  Amounts so paid to the
Liquidity  Provider  shall be applied by the  Liquidity  Provider  to  Liquidity
Obligations then due and payable in accordance with the Intercreditor  Agreement
or, if not provided for in the Intercreditor  Agreement,  then in such manner as
the Liquidity Provider shall deem appropriate.

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

<PAGE>

            Section 2.09. PAYMENTS FROM AVAILABLE FUNDS ONLY. All payments to be
made by the Borrower  under this  Agreement  shall be made only from the amounts
that constitute  Scheduled Payments,  Special Payments or payments under Section
8.1 of the  Participation  Agreements with respect to Owned  Aircraft,  payments
under  Section  9.1 of the  Participation  Agreements  with  respect  to  Leased
Aircraft and payments under Section 6 of the Note Purchase Agreement and only to
the extent that the Borrower shall have sufficient income or proceeds  therefrom
to enable the  Borrower to make  payments in  accordance  with the terms  hereof
after  giving  effect to the  priority of payments  provisions  set forth in the
Intercreditor  Agreement. The Liquidity Provider agrees that it will look solely
to such amounts to the extent  available for  distribution  to it as provided in
the  Intercreditor  Agreement and this  Agreement and that the Borrower,  in its
individual  capacity,  is not personally liable to it for any amounts payable or
liability under this Agreement  except as expressly  provided in this Agreement,
the Intercreditor Agreement or any Participation  Agreement.  Amounts on deposit
in the Class C-1 Cash  Collateral  Account shall be available to the Borrower to
make  payments  under this  Agreement  only to the  extent and for the  purposes
expressly contemplated in Section 3.6(f) of the Intercreditor Agreement.

            Section 2.10. EXTENSION OF THE EXPIRY DATE;  NON-EXTENSION  ADVANCE.
The Expiry Date shall be automatically extended, effective on the 25th day prior
to each Expiry Date  (unless such Expiry Date is on or after the date that is 15
days after the Final Legal  Distribution  Date for the Class C-1  Certificates),
for a period of 364 days after such Expiry Date (unless the  obligations  of the
Liquidity  Provider are earlier terminated in accordance with the terms hereof),
without the  necessity of any act on the part of the  Borrower or the  Liquidity
Provider,  unless the Liquidity Provider shall advise the Borrower prior to such
25th day that it does not agree to such  extension of such Expiry Date, in which
event (and if the Liquidity  Provider shall not have been replaced in accordance
with Section  3.6(e) of the  Intercreditor  Agreement),  the  Borrower  shall be
entitled on and after such 25th day (but prior to such Expiry Date) to request a
Non-Extension  Advance in  accordance  with Section  2.02(b)  hereof and Section
3.6(d) of the Intercreditor Agreement.

                                   ARTICLE III

                           OBLIGATIONS OF THE BORROWER

            Section  3.01.  INCREASED  COSTS.  The  Borrower  shall  pay  to the
Liquidity  Provider  from  time to time  such  amounts  as may be  necessary  to
compensate  the  Liquidity  Provider  for any  increased  costs  incurred by the
Liquidity Provider which are attributable to its making or maintaining any LIBOR
Advances hereunder or its obligation to make any such Advances hereunder, or any
reduction  in  any  amount  receivable  by the  Liquidity  Provider  under  this
Agreement or the Intercreditor Agreement in respect of any such Advances or such
obligation  (such increases in costs and reductions in amounts  receivable being
herein called "ADDITIONAL  COSTS"),  resulting from any change after the date of
this Agreement in U.S. federal, state, municipal, or foreign laws or regulations
(including  Regulation  D of the  Board  of  Governors  of the  Federal  Reserve
System),  or the  adoption  or making  after the date of this  Agreement  of any
interpretations,  directives,  or  requirements  applying  to a class  of  banks
including the Liquidity Provider under any U.S. federal,  state,  municipal,  or

<PAGE>

any foreign laws or regulations  (whether or not having the force of law) by any
court,  central bank or monetary  authority  charged with the  interpretation or
administration thereof (a "REGULATORY CHANGE"),  which: (1) changes the basis of
taxation of any amounts  payable to the Liquidity  Provider under this Agreement
in respect of any such Advances (other than Excluded  Taxes);  or (2) imposes or
modifies any reserve,  special deposit,  compulsory loan or similar requirements
relating to any  extensions  of credit or other assets of, or any deposits  with
other liabilities of, the Liquidity Provider (including any such Advances or any
deposits  referred to in the  definition of LIBOR Rate or related  definitions).
The  Liquidity  Provider  agrees  to use  reasonable  efforts  (consistent  with
applicable legal and regulatory  restrictions) to change the jurisdiction of its
Facility  Office if making such  change  would avoid the need for, or reduce the
amount of, any amount payable under this Section that may thereafter  accrue and
would not, in the reasonable  judgment of the Liquidity  Provider,  be otherwise
disadvantageous to the Liquidity Provider.

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

            Notwithstanding the preceding two paragraphs, the Liquidity Provider
and the  Subordination  Agent agree that the initial  Liquidity  Provider (i.e.,
Morgan Stanley  Capital  Services Inc.) shall not be entitled to the benefits of
the preceding  two  paragraphs;  PROVIDED,  HOWEVER,  any permitted  assignee or
participant of the initial  Liquidity  Provider which is a bank organized  under
the laws of the United  States or any State  thereof  shall be  entitled  to the
benefits of the preceding two paragraphs (subject,  in the case of any permitted
participant, to the limitation set forth in Section 7.08 hereof).

            Section 3.02. CAPITAL ADEQUACY. If (1) the adoption,  after the date
hereof, of any applicable governmental law, rule or regulation regarding capital
adequacy,  (2) any  change,  after the date  hereof,  in the  interpretation  or
administration  of any such law, rule or regulation by any central bank or other
governmental authority charged with the interpretation or administration thereof
or (3) compliance by the Liquidity  Provider or any corporation  controlling the
Liquidity  Provider  with  any  applicable   guideline  or  request  of  general
applicability,  issued  after  the date  hereof,  by any  central  bank or other
governmental authority (whether or not having the force of law) that constitutes
a change of the nature  described  in clause (2), has the effect of requiring an
increase in the amount of capital  required to be  maintained  by the  Liquidity
Provider  or any  corporation  controlling  the  Liquidity  Provider,  and  such
increase is based upon the Liquidity Provider's  obligations hereunder and other
similar obligations,  the Borrower shall pay to the Liquidity Provider from time
to time such  additional  amount or amounts as are necessary to  compensate  the
Liquidity  Provider  for such  portion of such  increase as shall be  reasonably
allocable to the Liquidity Provider's obligations to the Borrower hereunder. The

<PAGE>

Liquidity Provider agrees to use reasonable efforts  (consistent with applicable
legal and regulatory  restrictions)  to change the  jurisdiction of its Facility
Office if making such change  would avoid the need for, or reduce the amount of,
any amount payable under this Section that may thereafter  accrue and would not,
in the reasonable  judgment of the Liquidity Provider,  be otherwise  materially
disadvantageous to the Liquidity Provider.

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

            Notwithstanding the preceding two paragraphs, the Liquidity Provider
and the  Subordination  Agent agree that the initial  Liquidity  Provider (i.e.,
Morgan Stanley  Capital  Services Inc.) shall not be entitled to the benefits of
the preceding  two  paragraphs;  PROVIDED,  HOWEVER,  any permitted  assignee or
participant of the initial  Liquidity  Provider which is a bank organized  under
the laws of the United  States or any State  thereof  shall be  entitled  to the
benefits of the preceding two paragraphs (subject,  in the case of any permitted
participant, to the limitation set forth in Section 7.08 hereof).

            Section 3.03. PAYMENTS FREE OF DEDUCTIONS.  All payments made by the
Borrower  under  this  Agreement  shall be made free and clear of,  and  without
reduction  for or on account  of, any  present or future  stamp or other  taxes,
levies, imposts, duties, charges, fees, deductions,  withholdings,  restrictions
or  conditions  of any  nature  whatsoever  now or  hereafter  imposed,  levied,
collected,  withheld or assessed,  excluding  Excluded Taxes (such  non-excluded
taxes  being  referred to herein,  collectively,  as  "NON-EXCLUDED  TAXES" and,
individually,  as a "NON-EXCLUDED  TAX"). If any Non-Excluded Taxes are required
to be withheld  from any amounts  payable to the Liquidity  Provider  under this
Agreement,  the amounts so payable to the Liquidity  Provider shall be increased
to the extent necessary to yield to the Liquidity Provider (after payment of all
Non-Excluded  Taxes)  interest  or any other  such  amounts  payable  under this
Agreement  at the  rates or in the  amounts  specified  in this  Agreement.  The
Liquidity  Provider  agrees  to use  reasonable  efforts  (consistent  with  its
internal   policy  and  legal  and  regulatory   restrictions)   to  change  the
jurisdiction  of its Facility  Office if making such change would avoid the need
for, or reduce the amount of, any such  additional  amounts that may  thereafter
accrue and would not, in the reasonable judgment of the Liquidity  Provider,  be
otherwise  disadvantageous to the Liquidity Provider. From time to time upon the
reasonable  request of the Borrower,  if the Liquidity Provider is not organized
under the laws of the United States or any State thereof, the Liquidity Provider
agrees to provide to the  Borrower two original  Internal  Revenue  Service Form
W-8BEN or W-8ECI,  as appropriate,  or any successor or other form prescribed by
the Internal Revenue Service,  certifying that the Liquidity  Provider is exempt
from or entitled to a reduced rate of United States  withholding tax on payments
pursuant to this Agreement.

<PAGE>

            Section 3.04. PAYMENTS.  The Borrower shall make or cause to be made
each payment to the Liquidity  Provider  under this Agreement so as to cause the
same to be received by the Liquidity Provider not later than 1:00 P.M. (New York
City time) on the day when due.  The  Borrower  shall make all such  payments in
lawful  money of the United  States of  America,  to the  Liquidity  Provider in
immediately  available funds, by wire transfer to Citibank,  N.A., New York, NY,
ABA# 021000089,  Account Name: Morgan Stanley Capital Services Inc., in favor of
account number 4072-4601, Reference: Continental Airlines EETC 2000-1C-1.

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

            Section 3.06. PAYMENT ON NON-BUSINESS DAYS.  Whenever any payment to
be made hereunder  shall be stated to be due on a day other than a Business Day,
such payment shall be made on the next succeeding Business Day and no additional
interest shall be due as a result (and if so made,  shall be deemed to have been
made when  due).  If any  payment in  respect  of  interest  on an Advance is so
deferred to the next succeeding  Business Day, such deferral shall not delay the
commencement  of the next Interest Period for such Advance (if such Advance is a
LIBOR  Advance) or reduce the number of days for which  interest will be payable
on such Advance on the next interest payment date for such Advance.

            Section 3.07.  INTEREST.  (a) Subject to Section 2.09,  the Borrower
shall pay, or shall cause to be paid, without  duplication,  interest on (i) the
unpaid  principal  amount of each  Advance from and  including  the date of such
Advance (or, in the case of an Applied Provider Advance,  from and including the
date on  which  the  amount  thereof  was  withdrawn  from  the  Class  C-1 Cash
Collateral  Account  to pay  interest  on the  Class  C-1  Certificates)  to but
excluding the date such principal  amount shall be paid in full (or, in the case
of an Applied Provider Advance,  the date on which the Class C-1 Cash Collateral
Account is fully  replenished  in respect  of such  Advance)  and (ii) any other
amount due hereunder (whether fees,  commissions,  expenses or other amounts or,
to the extent permitted by law, installments of interest on Advances or any such
other  amount)  which is not paid  when due  (whether  at  stated  maturity,  by
acceleration  or  otherwise)  from and  including  the due date  thereof  to but
excluding  the  date  such  amount  is paid in full,  in each  such  case,  at a
fluctuating  interest  rate  per  annum  for each  day  equal to the  Applicable
Liquidity  Rate (as defined  below) for such  Advance or such other amount as in
effect  for such  day,  but in no event at a rate  per  annum  greater  than the
maximum rate permitted by applicable  law;  PROVIDED,  HOWEVER,  that, if at any
time the  otherwise  applicable  interest rate as set forth in this Section 3.07
shall exceed the maximum rate  permitted by applicable  law, then any subsequent
reduction  in such  interest  rate will not reduce the rate of interest  payable
pursuant to this Section 3.07 below the maximum rate permitted by applicable law
until the total amount of interest  accrued  equals the amount of interest  that
would have accrued if such  otherwise  applicable  interest rate as set forth in
this Section 3.07 had at all times been in effect.

            (b)   Except  as provided in clause (e) below,  each Advance will be
either a Base Rate Advance or a LIBOR Advance as provided in this Section.  Each

<PAGE>

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

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

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

            (e)   Each   outstanding   Unapplied  Provider  Advance  shall  bear
interest in an amount equal to the Investment  Earnings on amounts on deposit in
the  Class C-1 Cash  Collateral  Account  plus the  Applicable  Margin  for such
Unapplied Provider Advance on the amount of such Unapplied Provider Advance from
time to time, payable in arrears on each Regular Distribution Date.

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

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

            Section 3.08. REPLACEMENT OF BORROWER. From time to time and subject
to the successor  Borrower's  meeting the eligibility  requirements set forth in
Section  6.9 of the  Intercreditor  Agreement  applicable  to the  Subordination
Agent,  upon the  effective  date and time  specified in a written and completed
Notice of Replacement  Subordination Agent in substantially the form of Annex VI
attached hereto (a "NOTICE OF REPLACEMENT SUBORDINATION Agent") delivered to the

<PAGE>

Liquidity  Provider by the then  Borrower,  the  successor  Borrower  designated
therein shall be substituted for as the Borrower for all purposes hereunder.

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

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

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

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

                                   ARTICLE IV

                              CONDITIONS PRECEDENT

            Section 4.01. CONDITIONS PRECEDENT TO EFFECTIVENESS OF SECTION 2.01.
Section 2.01 of this  Agreement  shall  become  effective on and as of the first
date (the  "EFFECTIVE  DATE") on which the following  conditions  precedent have
been satisfied or waived:

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

                  (i) This Agreement duly executed on behalf of the Borrower;

                 (ii) The  Intercreditor  Agreement  duly executed on behalf of
            each of the parties thereto;

<PAGE>

                (iii) Fully   executed   copies   of   each  of   the  Operative
            Agreements  executed  and  delivered  on or before the Closing  Date
            (other than this Agreement and the Intercreditor Agreement);

                 (iv) A copy of  the Prospectus  Supplement and specimen  copies
            of the Class C-1 Certificates;

                  (v) An executed copy of each document, instrument, certificate
            and opinion  delivered on or before the Closing Date pursuant to the
            Class C-1 Trust Agreement, the Intercreditor Agreement and the other
            Operative  Agreements (in the case of each such opinion,  other than
            the opinion of counsel for the Underwriters, either addressed to the
            Liquidity  Provider  or  accompanied  by a letter  from the  counsel
            rendering such opinion to the effect that the Liquidity  Provider is
            entitled  to  rely  on  such  opinion  as of its  date as if it were
            addressed to the Liquidity Provider);

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

                  (vii) An  agreement  from  Continental,  pursuant to which (i)
            Continental   agrees  to  provide  copies  of  quarterly   financial
            statements and audited annual financial  statements to the Liquidity
            Provider, and such other information as the Liquidity Provider shall
            reasonably request with respect to the transactions  contemplated by
            the  Operative  Agreements,  in each case,  only to the extent  that
            Continental  is obligated to provide  such  information  pursuant to
            Section  8.2.1 of the Leases  (related  to Leased  Aircraft)  or the
            corresponding  section of the Indentures (related to Owned Aircraft)
            to the  parties  thereto  and (ii)  Continental  agrees to allow the
            Liquidity  Provider  to  inspect  Continental's  books  and  records
            regarding such  transactions,  and to discuss such transactions with
            officers and employees of Continental; and

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

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

<PAGE>

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

            (d) All  conditions  precedent to the  issuance of the  Certificates
      under the Trust  Agreements  shall  have been  satisfied  or  waived,  all
      conditions   precedent  to  the   effectiveness  of  the  other  Liquidity
      Facilities  shall  have  been  satisfied  or  waived,  and all  conditions
      precedent to the purchase of the  Certificates by the  Underwriters  under
      the Underwriting  Agreement shall have been satisfied  (unless any of such
      conditions precedent shall have been waived by the Underwriters).

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

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

                                    ARTICLE V

                                    COVENANTS

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

            (a)  PERFORMANCE  OF THIS AND OTHER  AGREEMENTS.  Punctually  pay or
      cause to be paid all amounts  payable by it under this  Agreement  and the
      other  Operative  Agreements  and  observe  and  perform  in all  material
      respects the  conditions,  covenants  and  requirements  applicable  to it
      contained in this Agreement and the other Operative Agreements.

            (b) REPORTING  REQUIREMENTS.  Furnish to the Liquidity Provider with
      reasonable promptness, such other information and data with respect to the
      transactions contemplated by the Operative Agreements as from time to time
      may be  reasonably  requested by the  Liquidity  Provider;  and permit the
      Liquidity  Provider,  upon  reasonable  notice,  to inspect the Borrower's
      books and  records  with  respect  to such  transactions  and to meet with
      officers and employees of the Borrower to discuss such transactions.

<PAGE>

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

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

                                   ARTICLE VI

                           LIQUIDITY EVENTS OF DEFAULT

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

                                   ARTICLE VII

                                  MISCELLANEOUS

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

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

<PAGE>

            Borrower:            WILMINGTON TRUST COMPANY
                                 Rodney Square North
                                 1100 North Market Square
                                 Wilmington, DE 19890-0001
                                 Attention:  Corporate Trust Administration

                                 Telephone:  (302) 651-1000
                                 Telecopy:   (302) 651-8882

            Liquidity Provider:  MORGAN STANLEY CAPITAL SERVICES INC.
                                 1585 Broadway
                                 New York, NY  10036
                                 Attention:  Elinor Hoover/Ivana Komarcevic/
                                 Mark Esparrago

                                 Telephone:  (212) 761-2522/1895/2618
                                 Telecopy:   (212) 761-0268

or, as to each of the foregoing, at such other address as shall be designated by
such  Person  in  a  written  notice  to  the  others.   All  such  notices  and
communications  shall be effective (i) if given by telecopier,  when transmitted
to the telecopier  number specified above, (ii) if given by mail, when deposited
in the mails  addressed as specified  above,  and (iii) if given by other means,
when delivered at the address  specified  above,  except that written notices to
the Liquidity  Provider pursuant to the provisions of Article II and Article III
hereof shall not be effective until received by the Liquidity  Provider.  A copy
of all  notices  delivered  hereunder  to  either  party  shall in  addition  be
delivered  to each of the  parties  to the  Participation  Agreements  at  their
respective addresses set forth therein.

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

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

            Section 7.05.  INDEMNIFICATION;  SURVIVAL OF CERTAIN PROVISIONS. The
Liquidity  Provider  shall be  indemnified  hereunder  to the  extent and in the
manner described in Section 8.1 of the Participation  Agreements with respect to
Owned Aircraft and Section 9.1 of the  Participation  Agreements with respect to
Leased Aircraft. In addition, the Borrower agrees to indemnify,  protect, defend
and hold harmless the Liquidity  Provider  from,  against and in respect of, and

<PAGE>

shall pay on demand,  all Expenses of any kind or nature  whatsoever (other than
any Expenses of the nature  described in Section 3.01, 3.02 or 7.07 hereof or in
the Fee Letter applicable to this Agreement  (regardless of whether  indemnified
against pursuant to said Sections or in such Fee Letter)),  that may be imposed,
incurred by or asserted  against any Liquidity  Indemnitee,  in any way relating
to, resulting from, or arising out of or in connection with any action,  suit or
proceeding by any third party against such Liquidity  Indemnitee and relating to
this Agreement,  the Fee Letter applicable to this Agreement,  the Intercreditor
Agreement or any Financing Agreement; PROVIDED, HOWEVER, that the Borrower shall
not be required to  indemnify,  protect,  defend and hold harmless any Liquidity
Indemnitee in respect of any Expense of such Liquidity  Indemnitee to the extent
such Expense is (i) attributable to the gross  negligence or willful  misconduct
of such Liquidity  Indemnitee or any other Liquidity  Indemnitee,  (ii) ordinary
and usual operating  overhead expense,  or (iii)  attributable to the failure by
such  Liquidity  Indemnitee  or any other  Liquidity  Indemnitee  to  perform or
observe any  agreement,  covenant or  condition  on its part to be  performed or
observed  in  this  Agreement,  the  Intercreditor  Agreement,  the  Fee  Letter
applicable to this Agreement or any other  Operative  Agreement to which it is a
party.  The indemnities  contained in Section 8.1 or 9.1, as the case may be, of
the Participation  Agreements,  and the provisions of Sections 3.01, 3.02, 3.03,
3.09, 7.05 and 7.07 hereof, shall survive the termination of this Agreement.

            Section 7.06.  LIABILITY OF THE LIQUIDITY PROVIDER.  (a) Neither the
Liquidity Provider nor any of its officers,  employees,  directors or Affiliates
shall  be  liable  or  responsible  for:  (i) the use  which  may be made of the
Advances  or any  acts  or  omissions  of the  Borrower  or any  beneficiary  or
transferee  in  connection   therewith;   (ii)  the  validity,   sufficiency  or
genuineness of documents,  or of any endorsement thereon, even if such documents
should prove to be in any or all respects invalid,  insufficient,  fraudulent or
forged;  or (iii) the  making of  Advances  by the  Liquidity  Provider  against
delivery of a Notice of Borrowing and other  documents  which do not comply with
the terms  hereof;  PROVIDED,  HOWEVER,  that the  Borrower  shall  have a claim
against the Liquidity  Provider,  and the Liquidity  Provider shall be liable to
the Borrower,  to the extent of any damages  suffered by the Borrower which were
the result of (A) the Liquidity  Provider's  willful misconduct or negligence in
determining  whether documents presented hereunder comply with the terms hereof,
or (B)  any  breach  by the  Liquidity  Provider  of any of the  terms  of  this
Agreement,  including,  but not limited to, the Liquidity  Provider's failure to
make lawful  payment  hereunder  after the  delivery to it by the  Borrower of a
Notice of Borrowing strictly complying with the terms and conditions hereof.

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

            Section 7.07. COSTS, EXPENSES AND TAXES. The Borrower agrees to pay,
or cause to be paid (A) on the Effective Date and on such later date or dates on
which the Liquidity  Provider shall make demand,  all  reasonable  out-of-pocket

<PAGE>

costs and expenses  (including,  without  limitation,  the  reasonable  fees and
expenses  of  outside  counsel  for the  Liquidity  Provider)  of the  Liquidity
Provider in connection with the preparation,  negotiation,  execution, delivery,
filing and recording of this Agreement,  any other  Operative  Agreement and any
other documents which may be delivered in connection with this Agreement and (B)
on demand, all reasonable costs and expenses (including  reasonable counsel fees
and expenses) of the Liquidity  Provider in connection  with (i) the enforcement
of this Agreement or any other  Operative  Agreement,  (ii) the  modification or
amendment of, or supplement to, this Agreement or any other Operative  Agreement
or such  other  documents  which may be  delivered  in  connection  herewith  or
therewith  (whether or not the same shall become  effective) or (iii) any action
or  proceeding  relating to any order,  injunction,  or other  process or decree
restraining or seeking to restrain the Liquidity Provider from paying any amount
under  this  Agreement,  the  Intercreditor  Agreement  or any  other  Operative
Agreement or otherwise  affecting the application of funds in the Class C-1 Cash
Collateral Account.  In addition,  the Borrower shall pay any and all recording,
stamp and other  similar  taxes and fees payable or  determined to be payable in
connection with the execution, delivery, filing and recording of this Agreement,
any other Operative  Agreement and such other documents,  and agrees to save the
Liquidity  Provider  harmless  from and  against  any and all  liabilities  with
respect to or  resulting  from any delay in paying or omission to pay such taxes
or fees.

            Section 7.08.  BINDING  EFFECT;  PARTICIPATIONS.  (a) This Agreement
shall be binding upon and inure to the benefit of the Borrower and the Liquidity
Provider and their  respective  successors and assigns,  except that neither the
Liquidity  Provider  (except as  otherwise  provided in this  Section  7.08) nor
(except as  contemplated  by Section 3.08) the Borrower  shall have the right to
assign its rights or  obligations  hereunder or any interest  herein without the
prior written consent of the other party, subject to the requirements of Section
7.08(b). The Liquidity Provider may grant participations herein or in any of its
rights hereunder  (including,  without  limitation,  funded  participations  and
participations in rights to receive interest  payments  hereunder) and under the
other  Operative  Agreements  to such Persons  (other than  Continental  and its
Affiliates) as the Liquidity Provider may in its sole discretion select, subject
to the requirements of Section 7.08(b).  No such granting of  participations  by
the Liquidity  Provider,  however,  will relieve the  Liquidity  Provider of its
obligations  hereunder.  In connection  with any  participation  or any proposed
participation,  the Liquidity  Provider may disclose to the  participant  or the
proposed participant any information that the Borrower is required to deliver or
to disclose to the Liquidity  Provider pursuant to this Agreement.  The Borrower
acknowledges and agrees that the Liquidity Provider's source of funds may derive
in part from its participants. Accordingly, references in this Agreement and the
other  Operative  Agreements  to  determinations,  reserve and capital  adequacy
requirements, increased costs, reduced receipts, additional amounts due pursuant
to Section 3.03 and the like as they pertain to the Liquidity  Provider shall be
deemed  also to  include  those  of  each of its  participants  that  are  banks
(subject,  in each  case,  if any  such  participant  is not a bank  that is (i)
organized  under the laws of the United  States or any State  thereof and (ii) a
member bank of the Federal Reserve System with deposits exceeding $1,000,000,000
(such a bank, a "REFERENCE  BANK"),  to the maximum  amount that would have been
directly  incurred by any Reference Bank organized  under the laws of the United

<PAGE>

States or any State thereof if such Reference Bank, rather than the participant,
had held the interest participated).

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

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

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

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

<PAGE>

            Section  7.11.  SUBMISSION  TO  JURISDICTION;  WAIVER OF JURY TRIAL;
WAIVER OF  IMMUNITY.  (a) Each of the  parties  hereto  hereby  irrevocably  and
unconditionally:

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

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

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

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

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

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

            Section  7.12.  EXECUTION IN  COUNTERPARTS.  This  Agreement  may be
executed  in any  number of  counterparts  and by  different  parties  hereto on
separate  counterparts,  each  of  which  counterparts,  when  so  executed  and

<PAGE>

delivered,  shall be deemed  to be an  original  and all of which  counterparts,
taken together, shall constitute but one and the same Agreement.

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

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

            Section 7.15.  TRANSFER.  The Liquidity Provider hereby acknowledges
and consents to the  Transfer  contemplated  by the  Assignment  and  Assumption
Agreement.

            Section 7.16.  LIQUIDITY  PROVIDER'S  OBLIGATION  TO MAKE  ADVANCES.
EXCEPT  AS  EXPRESSLY  SET  FORTH  IN THIS  AGREEMENT,  THE  OBLIGATIONS  OF THE
LIQUIDITY  PROVIDER TO MAKE ADVANCES  HEREUNDER,  AND THE  BORROWER'S  RIGHTS TO
DELIVER NOTICES OF BORROWING REQUESTING THE MAKING OF ADVANCES HEREUNDER,  SHALL
BE UNCONDITIONAL AND IRREVOCABLE,  AND SHALL BE PAID OR PERFORMED,  IN EACH CASE
STRICTLY IN ACCORDANCE WITH THE TERMS OF THIS AGREEMENT.

<PAGE>

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

                                   WILMINGTON TRUST COMPANY,
                                       not in its  individual  capacity  but
                                       solely  as  Subordination  Agent,  as
                                       agent and  trustee  for the Class C-1
                                       Trust, as Borrower

                                   By:_______________________________________
                                      Name:
                                      Title:

                                   MORGAN STANLEY CAPITAL SERVICES INC.,
                                    as Liquidity Provider

                                   By:_______________________________________
                                      Name:
                                      Title:

<PAGE>

                                                                      Annex I to
                                                      Revolving Credit Agreement

                      INTEREST ADVANCE NOTICE OF BORROWING

            The  undersigned,  a duly  authorized  signatory of the  undersigned
borrower (the  "BORROWER"),  hereby certifies to Morgan Stanley Capital Services
Inc.  (the  "LIQUIDITY  PROVIDER"),  with  reference  to  the  Revolving  Credit
Agreement  (2000-1C-1) dated as of March 15, 2000,  between the Borrower and the
Liquidity Provider (the "LIQUIDITY AGREEMENT"; the terms defined therein and not
otherwise  defined herein being used herein as therein  defined or  referenced),
that:

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

            (2) The  Borrower is  delivering  this Notice of  Borrowing  for the
      making  of an  Interest  Advance  by the  Liquidity  Provider  to be used,
      subject to clause (3)(v)  below,  for the payment of interest on the Class
      C-1   Certificates   which  was   payable  on   ____________,   ____  (the
      "DISTRIBUTION  DATE") in accordance  with the terms and  provisions of the
      Class C-1 Trust Agreement and the Class C-1 Certificates, which Advance is
      requested to be made on ____________, ____. The Interest Advance should be
      transferred  to [name of  bank/wire  instructions/ABA  number] in favor of
      account number [ ], reference [ ].

            (3) The  amount of the  Interest  Advance  requested  hereby  (i) is
      $_______________.__,  to be  applied  in  respect  of the  payment  of the
      interest  which was due and payable on the Class C-1  Certificates  on the
      Distribution  Date,  (ii) does not include any amount with  respect to the
      payment of  principal  of, or premium on, the Class C-1  Certificates,  or
      principal of, or interest or premium on, the Class A-1  Certificates,  the
      Class  A-2  Certificates,  the  Class  B  Certificates  or the  Class  C-2
      Certificates,  (iii) was computed in accordance with the provisions of the
      Class  C-1   Certificates,   the  Class  C-1  Trust   Agreement   and  the
      Intercreditor Agreement (a copy of which computation is attached hereto as
      Schedule I), (iv) does not exceed the Maximum Available  Commitment on the
      date hereof, (v) does not include any amount of interest which was due and
      payable on the Class C-1 Certificates on such  Distribution Date but which
      remains  unpaid due to the failure of the  Depositary to pay any amount of
      accrued  interest on the Deposits on such  Distribution  Date and (vi) has
      not been and is not the  subject of a prior or  contemporaneous  Notice of
      Borrowing.

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

<PAGE>

            The Borrower  hereby  acknowledges  that,  pursuant to the Liquidity
Agreement,  the making of the  Interest  Advance as  requested by this Notice of
Borrowing shall  automatically  reduce,  subject to  reinstatement in accordance
with the terms of the Liquidity  Agreement,  the Maximum Available Commitment by
an amount  equal to the  amount of the  Interest  Advance  requested  to be made
hereby as set forth in clause (i) of  paragraph  (3) of this Notice of Borrowing
and such reduction shall automatically result in corresponding reductions in the
amounts available to be borrowed pursuant to a subsequent Advance.

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

                                   WILMINGTON TRUST COMPANY,
                                       not in its  individual  capacity  but
                                       solely  as  Subordination  Agent,  as
                                       Borrower

                                   By:_______________________________________
                                      Name:
                                      Title:

<PAGE>

               SCHEDULE I TO INTEREST ADVANCE NOTICE OF BORROWING

[Insert Copy of  Computations  in  accordance  with Interest  Advance  Notice of
Borrowing]

<PAGE>

                                                                     Annex II to
                                                      Revolving Credit Agreement

                  NON-EXTENSION ADVANCE NOTICE OF BORROWING

            The  undersigned,  a duly  authorized  signatory of the  undersigned
borrower (the  "BORROWER"),  hereby certifies to Morgan Stanley Capital Services
Inc.  (the  "LIQUIDITY  PROVIDER"),  with  reference  to  the  Revolving  Credit
Agreement  (2000-1C-1) dated as of March 15, 2000,  between the Borrower and the
Liquidity Provider (the "LIQUIDITY AGREEMENT"; the terms defined therein and not
otherwise  defined herein being used herein as therein  defined or  referenced),
that:

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

            (2) The  Borrower is  delivering  this Notice of  Borrowing  for the
      making of the Non-Extension  Advance by the Liquidity  Provider to be used
      for the  funding of the Class C-1 Cash  Collateral  Account in  accordance
      with  Section  3.6(d) of the  Intercreditor  Agreement,  which  Advance is
      requested to be made on __________, ____. The Non-Extension Advance should
      be transferred to [name of bank/wire  instructions/ABA number] in favor of
      account number [ ], reference [ ].

            (3) The amount of the Non-Extension  Advance requested hereby (i) is
      $_______________.__,  which equals the Maximum Available Commitment on the
      date  hereof and is to be  applied in respect of the  funding of the Class
      C-1 Cash  Collateral  Account in  accordance  with  Section  3.6(d) of the
      Intercreditor Agreement,  (ii) does not include any amount with respect to
      the  payment  of  the   principal   of,  or  premium  on,  the  Class  C-1
      Certificates,  or  principal  of, or interest or premium on, the Class A-1
      Certificates,  the Class A-2 Certificates, the Class B Certificates or the
      Class  C-2  Certificates,  (iii)  was  computed  in  accordance  with  the
      provisions of the Class C-1  Certificates,  the Class C-1 Trust  Agreement
      and the  Intercreditor  Agreement (a copy of which computation is attached
      hereto as  Schedule  I), and (iv) has not been and is not the subject of a
      prior  or   contemporaneous   Notice  of  Borrowing  under  the  Liquidity
      Agreement.

            (4) Upon  receipt  by or on behalf  of the  Borrower  of the  amount
      requested  hereby,  (a) the Borrower will deposit such amount in the Class
      C-1 Cash  Collateral  Account  and apply the same in  accordance  with the
      terms of Section 3.6(d) of the Intercreditor  Agreement, (b) no portion of
      such amount shall be applied by the Borrower for any other purpose and (c)
      no portion of such amount until so applied shall be commingled  with other
      funds held by the Borrower.

            The Borrower  hereby  acknowledges  that,  pursuant to the Liquidity
Agreement,  (A) the making of the  Non-Extension  Advance as  requested  by this
Notice of Borrowing shall automatically and irrevocably terminate the obligation
of  the  Liquidity  Provider  to  make  further  Advances  under  the  Liquidity
Agreement;  and (B)  following  the  making  by the  Liquidity  Provider  of the

<PAGE>

Non-Extension Advance requested by this Notice of Borrowing,  the Borrower shall
not be entitled to request any further Advances under the Liquidity Agreement.

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

                                   WILMINGTON TRUST COMPANY,
                                       not in its  individual  capacity  but
                                       solely  as  Subordination  Agent,  as
                                       Borrower

                                   By:_______________________________________
                                      Name:
                                      Title:

<PAGE>

           SCHEDULE I TO NON-EXTENSION ADVANCE NOTICE OF BORROWING

[Insert Copy of computations in accordance with Non-Extension  Advance Notice of
Borrowing]

<PAGE>

                                                                    Annex III to
                                                      Revolving Credit Agreement

                      DOWNGRADE ADVANCE NOTICE OF BORROWING

            The  undersigned,  a duly  authorized  signatory of the  undersigned
borrower (the  "BORROWER"),  hereby certifies to Morgan Stanley Capital Services
Inc.  (the  "LIQUIDITY  PROVIDER"),  with  reference  to  the  Revolving  Credit
Agreement  (2000-1C-1) dated as of March 15, 2000,  between the Borrower and the
Liquidity Provider (the "LIQUIDITY AGREEMENT"; the terms defined therein and not
otherwise  defined herein being used herein as therein  defined or  referenced),
that:

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

            (2) The  Borrower is  delivering  this Notice of  Borrowing  for the
      making of the Downgrade  Advance by the Liquidity  Provider to be used for
      the funding of the Class C-1 Cash  Collateral  Account in accordance  with
      Section  3.6(c)  of  the  Intercreditor  Agreement  (i) by  reason  of the
      downgrading  of the  short-term  unsecured  debt  rating of the  Guarantor
      issued by either Rating Agency below the Threshold  Rating or (ii) because
      the  Guarantee  Agreement has ceased to be in full force and effect or has
      become invalid or  unenforceable or the Guarantor has denied its liability
      thereunder, which Advance is requested to be made on __________, ____. The
      Downgrade   Advance   should  be   transferred   to  [name  of   bank/wire
      instructions/ABA number] in favor of account number [ ], reference [ ].

            (3) The  amount of the  Downgrade  Advance  requested  hereby (i) is
      $_______________.__,  which equals the Maximum Available Commitment on the
      date  hereof and is to be  applied in respect of the  funding of the Class
      C-1 Cash  Collateral  Account in  accordance  with  Section  3.6(c) of the
      Intercreditor Agreement,  (ii) does not include any amount with respect to
      the  payment  of  the   principal   of,  or  premium  on,  the  Class  C-1
      Certificates,  or  principal  of, or interest or premium on, the Class A-1
      Certificates,  the Class A-2 Certificates, the Class B Certificates or the
      Class  C-2  Certificates,  (iii)  was  computed  in  accordance  with  the
      provisions of the Class C-1  Certificates,  the Class C-1 Trust  Agreement
      and the  Intercreditor  Agreement (a copy of which computation is attached
      hereto as  Schedule  I), and (iv) has not been and is not the subject of a
      prior  or   contemporaneous   Notice  of  Borrowing  under  the  Liquidity
      Agreement.

            (4) Upon  receipt  by or on behalf  of the  Borrower  of the  amount
      requested  hereby,  (a) the Borrower will deposit such amount in the Class
      C-1 Cash  Collateral  Account  and apply the same in  accordance  with the
      terms of Section 3.6(c) of the Intercreditor  Agreement, (b) no portion of
      such amount shall be applied by the Borrower for any other purpose and (c)
      no portion of such amount until so applied shall be commingled  with other
      funds held by the Borrower.

<PAGE>

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

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

                                   WILMINGTON TRUST COMPANY,
                                       not in its  individual  capacity  but
                                       solely  as  Subordination  Agent,  as
                                       Borrower

                                   By:_______________________________________
                                      Name:
                                      Title:

<PAGE>

               SCHEDULE I TO DOWNGRADE ADVANCE NOTICE OF BORROWING

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

<PAGE>

                                                                     Annex IV to
                                                      Revolving Credit Agreement

                        FINAL ADVANCE NOTICE OF BORROWING

            The  undersigned,  a duly  authorized  signatory of the  undersigned
borrower (the  "BORROWER"),  hereby certifies to Morgan Stanley Capital Services
Inc.  (the  "LIQUIDITY  PROVIDER"),  with  reference  to  the  Revolving  Credit
Agreement  (2000-1C-1) dated as of March 15, 2000,  between the Borrower and the
Liquidity Provider (the "LIQUIDITY AGREEMENT"; the terms defined therein and not
otherwise  defined herein being used herein as therein  defined or  referenced),
that:

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

            (2) The  Borrower is  delivering  this Notice of  Borrowing  for the
      making of the Final Advance by the  Liquidity  Provider to be used for the
      funding  of the Class  C-1 Cash  Collateral  Account  in  accordance  with
      Section 3.6(i) of the Intercreditor  Agreement by reason of the receipt by
      the Borrower of a  Termination  Notice from the  Liquidity  Provider  with
      respect to the Liquidity Agreement,  which Advance is requested to be made
      on ____________, ____. The Final Advance should be transferred to [name of
      bank/wire  instructions/ABA  number]  in  favor  of  account  number  [ ],
      reference [ ].

            (3)  The  amount  of  the  Final  Advance  requested  hereby  (i) is
      $_________________.__,  which equals the Maximum  Available  Commitment on
      the date  hereof and is to be  applied  in  respect of the  funding of the
      Class C-1 Cash Collateral Account in accordance with Section 3.6(i) of the
      Intercreditor Agreement,  (ii) does not include any amount with respect to
      the payment of principal of, or premium on, the Class C-1 Certificates, or
      principal of, or interest or premium on, the Class A-1  Certificates,  the
      Class  A-2  Certificates,  the  Class  B  Certificates  or the  Class  C-2
      Certificates,  (iii) was computed in accordance with the provisions of the
      Class  C-1   Certificates,   the  Class  C-1  Trust   Agreement   and  the
      Intercreditor Agreement (a copy of which computation is attached hereto as
      Schedule  I),  and (iv) has not been and is not the  subject of a prior or
      contemporaneous Notice of Borrowing.

            (4) Upon  receipt  by or on behalf  of the  Borrower  of the  amount
      requested  hereby,  (a) the Borrower will deposit such amount in the Class
      C-1 Cash  Collateral  Account  and apply the same in  accordance  with the
      terms of Section 3.6(i) of the Intercreditor  Agreement, (b) no portion of
      such amount shall be applied by the Borrower for any other purpose and (c)
      no portion of such amount until so applied shall be commingled  with other
      funds held by the Borrower.

<PAGE>

            (5) The Borrower hereby requests that the Advance  requested  hereby
      be a Base Rate Advance [and that such Base Rate Advance be converted  into
      a LIBOR Advance on the third  Business Day following  your receipt of this
      notice.]<F1>

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

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

                                   WILMINGTON TRUST COMPANY,
                                       not in its  individual  capacity  but
                                       solely  as  Subordination  Agent,  as
                                       Borrower

                                   By:_______________________________________
                                      Name:
                                      Title:

----------
<F1>
Bracketed language may be included at Borrower's option.

<PAGE>

                 SCHEDULE I TO FINAL ADVANCE NOTICE OF BORROWING

[Insert  Copy of  Computations  in  accordance  with  Final  Advance  Notice  of
Borrowing]

<PAGE>

                                                                      Annex V to
                                                      Revolving Credit Agreement

                              NOTICE OF TERMINATION

                                          [Date]

Wilmington Trust Company,
  as Subordination Agent, as Borrower
Rodney Square North
1100 North Market Square
Wilmington, DE 19890-0001

Attention:  Corporate Trust Administration

      Revolving  Credit  Agreement  dated  as of  March  15,  2000  between
      Wilmington  Trust  Company,  as  Subordination  Agent,  as agent  and
      trustee   for  the   Continental   Airlines   Pass   Through   Trust,
      2000-1C-1-[O/S],  as Borrower,  and Morgan Stanley  Capital  Services
      Inc. (the "LIQUIDITY AGREEMENT")

Ladies and Gentlemen:

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

<PAGE>

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

                              Very truly yours,

                              Morgan Stanley Capital Services Inc.,
                                  as Liquidity Provider

                              By:________________________________________
                                 Name:
                                 Title:

cc:   Wilmington Trust Company,
      as Class C-1 Trustee

<PAGE>

                                                                     Annex VI to
                                                      Revolving Credit Agreement

                    NOTICE OF REPLACEMENT SUBORDINATION AGENT

[Date]
Attention:

      Revolving  Credit  Agreement  dated as of  March  15,  2000,  between
      Wilmington  Trust  Company,  as  Subordination  Agent,  as agent  and
      trustee   for  the   Continental   Airlines   Pass   Through   Trust,
      2000-1C-1-[O/S],  as Borrower,  and Morgan Stanley  Capital  Services
      Inc. (the "LIQUIDITY AGREEMENT")

Ladies and Gentlemen:

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

                         ______________________________
                              [Name of Transferee]

                         ______________________________
                             [Address of Transferee]

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

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

<PAGE>

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

                                   WILMINGTON TRUST COMPANY,
                                       not in its  individual  capacity but
                                       solely as  Subordination  Agent,  as
                                       Borrower

                                   By:_______________________________________
                                      Name:
                                      Title:

<PAGE>

                                                                    EXHIBIT I to
                                                      Revolving Credit Agreement

                           FORM OF GUARANTEE AGREEMENT

                                                   March 15, 2000

Continental Airlines Pass Through Trust 2000-1C-1-O

Ladies and Gentlemen:

       In  consideration  of the Revolving  Credit  Agreement (the  "Agreement")
dated as of March 15, 2000  between  Morgan  Stanley  Capital  Services  Inc., a
Delaware  corporation  (hereinafter  "MSCS") and Wilmington  Trust  Company,  as
Subordination  Agent,  as agent and trustee for the  Continental  Airlines  Pass
Through Trust 2000-1C-1-O ("Counterparty"),  Morgan Stanley Dean Witter & Co., a
Delaware   corporation    (hereinafter    "MSDW"),    hereby   irrevocably   and
unconditionally  guarantees  to  Counterparty,  with effect from the date of the
Agreement, the due and punctual payment of all amounts payable by MSCS under the
Agreement  when the same shall  become  due and  payable,  whether on  scheduled
payment dates,  upon demand,  upon  declaration of termination or otherwise,  in
accordance  with the terms of the Agreement and giving effect to any  applicable
grace  period  under the express  terms of the  Agreement.  Upon failure of MSCS
punctually to pay any such amounts,  MSDW agrees to pay or cause to be paid such
amounts.  It is  understood  and agreed that the  obligations  of MSCS under the
Agreement to make Advances (as defined in the  Agreement)  are, and shall in any
event,  for all  purposes of the  Guarantee,  be deemed to  constitute,  amounts
payable by MSCS under the Agreement.

       MSDW hereby agrees that its obligations  hereunder shall be unconditional
and will not be  discharged  except by complete  payment of the amounts  payable
under the Agreement,  irrespective of any claim as to the Agreement's  validity,
regularity  or  enforceability  or the lack of  authority  of MSCS to execute or
deliver the Agreement;  or any change in or amendment to the  Agreement;  or any
waiver or consent by Counterparty with respect to any provisions thereof; or the
absence of any action to enforce the  Agreement  or the recovery of any judgment
against  MSCS or of any  action to  enforce a  judgment  against  MSCS under the
Agreement;  or any similar circumstance which might otherwise constitute a legal
or equitable discharge or defense of a guarantor  generally.  MSDW hereby waives
diligence,  presentment, demand on MSDW or MSCS for payment or otherwise, filing
of claims, requirement of a prior proceeding against MSCS and protest or notice,
except as provided for in the Agreement with respect to amounts payable by MSCS.
If at any time  payment  under the  Agreement  is rescinded or must be otherwise
restored  or  returned  by  Counterparty  upon  the  insolvency,  bankruptcy  or
reorganization of MSCS or MSDW or otherwise,  MSDW's obligations  hereunder with
respect to such payment  shall be  reinstated  upon such  restoration  or return
being made by Counterparty.

<PAGE>

       MSDW represents to Counterparty as of the date hereof that:

       (1) it is duly  organized  and  validly  existing  under  the laws of the
jurisdiction of its  incorporation and has full power and legal right to execute
and deliver this  Guarantee and to perform the  provisions of this  Guarantee on
its part to be performed;

       (2) its execution,  delivery and  performance of this Guarantee have been
and  remain  duly  authorized  by  all  necessary  corporate  action  and do not
contravene any provision of its certificate of  incorporation  or by-laws or any
law, regulation or contractual restriction binding on it or its assets;

       (3) all consents,  authorizations,  approvals and clearances  (including,
without limitation,  any necessary exchange control approval) and notifications,
reports  and  registrations  requisite  for  its  due  execution,  delivery  and
performance  of this  Guarantee  have been obtained from or, as the case may be,
filed with the relevant governmental  authorities having jurisdiction and remain
in full force and effect and all conditions thereof have been duly complied with
and no other  action  by,  and no  notice to or filing  with,  any  governmental
authority  having  jurisdiction  is  required  for such  execution,  delivery or
performance; and

       (4) this Guarantee is its legal, valid and binding obligation enforceable
against it in  accordance  with its terms  except as  enforcement  hereof may be
limited by applicable  bankruptcy,  insolvency,  reorganization or other similar
laws  affecting  the  enforcement  of  creditors'  rights or by  general  equity
principles.

       By accepting this Guarantee and entering into the Agreement, Counterparty
agrees that MSDW shall be subrogated to all rights of Counterparty  against MSCS
in respect of any amounts paid by MSDW pursuant to this Guarantee, provided that
MSDW shall be entitled  to enforce or to receive  any payment  arising out of or
based upon such  right of  subrogation  only to the extent  that it has paid all
amounts payable by MSCS under the Agreement.

       This Guarantee  shall be governed by and construed in accordance with the
laws of the State of New York.  All  capitalized  terms  not  otherwise  defined
herein shall have the respective meanings assigned to them in the Agreement.

                                 MORGAN STANLEY DEAN WITTER & CO.

                                 By:_________________________________________
                                 Name:
                                 Title:

                                 Address:    1585 Broadway
                                             3rd Floor
                                             New York, NY  10036
                                 Attention:  Swap Group
                                 Fax No.:    (212) 761-0162

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