Document:

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                                                                   Exhibit 10.32

                                                                  EXECUTION COPY

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                      AIRCRAFT PURCHASE AGREEMENT [N288SK]

                                      among

                                 SOLITAIR CORP.
                                    as Seller

                            CHAUTAUQUA AIRLINES, INC.
                                    as Lessee

                           MITSUI & CO. (U.S.A.), INC.
                                 as Beneficiary

                                       and

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

                            dated as of June 5, 2001

                           One (1) EMB-145LR aircraft
                       manufacturer's serial number 145461
                     United States registration mark N288SK

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------------
Certain portions of this exhibit have been omitted pursuant to a request for
confidential treatment under Rule 406 of the Securities Act of 1933. The
omitted materials have been filed separately with the Securities and Exchange
Commission.

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                                TABLE OF CONTENTS

<Table>
<Caption>

                                                                            PAGE

<S>               <C>                                                         <C>
Section 1         SUBJECT MATTER...............................................2

Section 2         PRICE; TAXES; DELIVERY LOCATION..............................2

Section 3         TERMS OF PAYMENT................................. .... ......2

Section 4         RISK OF LOSS.................................................2

Section 5         DELIVERY OF AIRCRAFT.........................................3

Section 6         TERMS OF SALE................................................3

Section 7         DELIVERY DATE................................................3

Section 8         CONDITIONS PRECEDENT.........................................4

Section 9         Representations and Warranties...............................6

Section 10        FURTHER COVENANTS............................................9

Section 11        CONCERNING OWNER TRUSTEE....................................12

Section 12        MISCELLANEOUS...............................................12
</Table>

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     This AIRCRAFT PURCHASE AGREEMENT [N288SK] ("AGREEMENT"), made as of June 5,
2001, by and among SOLITAIR CORP., a New York corporation ("SELLER"), MITSUI &
CO. (U.S.A.), INC., a New York corporation ("BENEFICIARY"), CHAUTAUQUA AIRLINES,
INC., a New York corporation ("LESSEE"), and WELLS FARGO BANK NORTHWEST,
NATIONAL ASSOCIATION, not in its individual capacity, but solely as Owner
Trustee under a Trust Agreement dated as of June 5, 2001, between itself and
Beneficiary (such entity, in its individual capacity being herein referred to as
"WFB" and, in its capacity as Owner Trustee under such Trust Agreement, as
"OWNER TRUSTEE");

                              W I T N E S S E T H:

     WHEREAS, Seller is party to the EMB-145 Purchase Agreement Number
GCT-025/98, dated June 17, 1998 (the "MANUFACTURER PURCHASE AGREEMENT"), between
the Seller and EMBRAER - Empresa Brasileira de Aeronautica S.A., a Brazilian
company (the "MANUFACTURER");

     WHEREAS, Seller desires to assign its right, title and interest in and to
the Manufacturer Purchase Agreement, to the extent that the same relates to the
Aircraft (as hereinafter defined) and the purchase thereof, to Aero Ltd., a
Cayman Islands corporation ("AERO"), pursuant to and in accordance with the
terms and conditions of Purchase Agreement Assignment No. 1 [N288SK], dated the
date hereof ("ASSIGNMENT NO. 1"), between Seller and Aero and consented to by
the Manufacturer, in the form attached as Exhibit C-1;

     WHEREAS, Beneficiary desires that Owner Trustee purchase and acquire title
to, and Seller is willing to cause Aero to sell and transfer title to Owner
Trustee, in accordance with the terms and conditions hereinafter set forth, the
Aircraft;

     WHEREAS, as a condition to Seller's assignment of its rights in the
Manufacturer Purchase Agreement pursuant to Assignment No. 1, Aero will assign
its right, title and interest in and to [certain rights of Aero under] the
Manufacturer Purchase Agreement, as assigned by Assignment No. 1, to Owner
Trustee, pursuant to and in accordance with the terms of Purchase Agreement
Assignment No. 2 [N288SK], dated the date hereof ("ASSIGNMENT NO. 2"), among
Aero, Owner Trustee and Lessee and consented to by the Manufacturer, in the form
attached as Exhibit C-2;

     WHEREAS, Beneficiary desires that Owner Trustee be provided the benefit of,
and Seller is willing to cause Aero to transfer to Owner Trustee, the warranties
relating to the Airframe specified in the Assignment No. 2 and the warranties
relating to the Engines specified in the Engine Warranty Assignment and Consent,
the form of which is attached hereto as Exhibit D; and

     WHEREAS, simultaneously with the sale of the Aircraft to Owner Trustee,
Beneficiary shall cause Owner Trustee to, and Owner Trustee shall, lease the
Aircraft to Chautauqua Airlines, Inc., a New York corporation (the "LESSEE"),
pursuant to Aircraft Lease Agreement [N288SK] dated as of the date hereof
between Owner Trustee and Lessee (the "LEASE"); and

     WHEREAS, capitalized terms used herein and not otherwise defined herein
shall have the meanings ascribed thereto in the Lease and shall be interpreted
in accordance with the rules of construction set forth in Section 1.03 of the
Lease;

     NOW, THEREFORE, in consideration of the premises and the mutual covenants
hereinafter set forth, the parties hereto (individually a "PARTY" and
collectively the "PARTIES") agree as follows:

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     Section 1 SUBJECT MATTER.

     In accordance with and subject to the terms and conditions hereinafter set
forth, on the Delivery Date (as defined in Section 4), Seller hereby agrees to
cause Aero to sell and transfer title to Owner Trustee, as designee of
Beneficiary, and Beneficiary hereby agrees to cause Owner Trustee to purchase
and acquire title from Aero to, one (1) Embraer EMB-145LR aircraft bearing
manufacturer's serial number 145461, together with the Engines and appurtenances
installed thereon and therein and delivered new from the Manufacturer, as more
particularly described and defined in the form of Bill of Sale attached hereto
as EXHIBIT A (the "AIRCRAFT"), in accordance with the terms and conditions of
this Agreement, and

          (b) Owner Trustee hereby agrees, at the direction of Beneficiary, to
purchase and acquire title to the Aircraft from Aero in accordance with the
terms and conditions hereof and to lease the Aircraft to Lessee in accordance
with the terms and conditions of the Lease.

     Section 2 PRICE; TAXES; DELIVERY LOCATION.

          (a) PRICE. The purchase price of the Aircraft shall be equal to the
amount payable by Seller for the Aircraft under Article 03 of the Manufacturer
Purchase Agreement, as evidenced by an invoice for the Aircraft issued by Aero,
DECREASED by any rebate payable by the Manufacturer and Aero in respect of
the Aircraft that is credited to the Beneficiary on or before the Delivery
Date and INCREASED by the amount of [*] payable directly to Solitair, and the
Seller and the Beneficiary agree that such amount as so decreased and
increased is equal to [*], which shall be the purchase price of the Aircraft
(the "AIRCRAFT PRICE") payable by the Beneficiary to Seller as consideration
for the sale and transfer of the Aircraft to the Owner Trustee, as designee
of the Beneficiary.

          (b) TAXES. Seller, Beneficiary and Owner Trustee shall cooperate and
take such reasonable measures as may be requested by Lessee to ensure that the
sale of the Aircraft is arranged in such a manner as to minimize or avoid Taxes
thereon, which shall be indemnified by Lessee pursuant to the Lease.

          (c) DELIVERY LOCATION. Seller shall cause Aero to deliver the Aircraft
to Owner Trustee on the Delivery Date, in accordance with the terms hereof, in
Sao Jose dos Campos, Sao Paulo, Brazil or in such other location and
jurisdiction designated by Seller and Lessee which they determine to be
acceptable for taxation purposes and that is reasonably acceptable to
Beneficiary and Owner Trustee.

     Section 3 TERMS OF PAYMENT.
          (a) TIME OF PAYMENT. Subject to the satisfaction or waiver of the
conditions set forth in Section 8(a), Beneficiary shall pay, or cause to be
paid, the Aircraft Price to Seller on the Delivery Date.

          (b) U.S. DOLLARS; TRANSFER. All payments due to Seller hereunder shall
be effected in United States dollars in immediately available funds without any
set-off, counterclaim or deduction of whatsoever nature by wire transfer to an
account designated by the Seller. Payments will be deemed to have been made when
such amounts have been credited and confirmed as immediately available funds to
such designated account.

     Section 4 RISK OF LOSS.

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* Confidential

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     Delivery of the Bills of Sale to Owner Trustee and of the Acceptance
Certificate to Seller and Aero pursuant to Section 5 shall conclusively evidence
the sale of the Aircraft to Owner Trustee by Aero and of Owner Trustee's
acceptance of the Aircraft, and risk of loss of or damage to the Aircraft shall
pass from Seller and Aero to Owner Trustee at the time stated in the Acceptance
Certificate as being the time at which the transfer took place (the "DELIVERY
TIME"). The date on which the Delivery Time occurs is herein referred to as the
"DELIVERY DATE."

     Section 5 DELIVERY OF AIRCRAFT.

     Immediately upon receipt by Seller of the Aircraft Price, and subject to
the satisfaction or waiver of the conditions set forth in Section 8(b), Seller
shall cause Aero to deliver to Owner Trustee a duly executed original bill of
sale covering the Aircraft dated as of the Delivery Date, substantially in the
form of EXHIBIT A (the "WARRANTY BILL OF SALE") and a duly executed bill of sale
covering the Aircraft dated as of the Delivery Date on FAA AC Form 8050-2 (the
"FAA BILL OF SALE," and together with the Warranty Bill of Sale,, the "BILLS OF
SALE"), and immediately upon receipt by it of the Bills of Sale, Beneficiary
shall cause Owner Trustee to, and Owner Trustee shall, execute and deliver to
Aero and Seller an acceptance certificate substantially in the form of EXHIBIT B
(the "ACCEPTANCE CERTIFICATE"), covering the Aircraft and dated the Delivery
Date. Seller shall ensure that the FAA Bill of Sale is physically at the offices
of Lytle Soule & Curlee ("LSC") in Oklahoma City and by providing one or more
attorneys at LSC with such authorization as may be necessary in order to permit
such firm to present the FAA Bill of Sale at the Delivery Time to the FAA for
immediate recordation together with the other documents and instruments referred
to in Section 8(a)(v).

     Section 6 TERMS OF SALE.

     Seller hereby warrants and undertakes to Beneficiary that Seller shall
cause Aero to transfer to Owner Trustee all of its right, title and interest in
and to the Aircraft, free and clear of any and all Liens. EXCEPT FOR THE
WARRANTY OF TITLE PROVIDED BY AERO IN THE WARRANTY BILL OF SALE, THE AIRCRAFT IS
BEING SOLD AND DELIVERED TO OWNER TRUSTEE AND PURCHASED AND ACCEPTED BY OWNER
TRUSTEE "AS IS" AND "WHERE IS." SELLER MAKES NO, AND EXPRESSLY AND SPECIFICALLY
DISCLAIMS (AND OWNER TRUSTEE AND BENEFICIARY EACH EXPRESSLY AND SPECIFICALLY
WAIVES AND DISCLAIMS) ANY, REPRESENTATION, GUARANTEE, COVENANT, CONDITION OR
WARRANTY OF ANY KIND RELATING TO THE AIRCRAFT, INCLUDING BUT NOT LIMITED TO THE
AIRWORTHINESS AND/OR CONDITION OF THE AIRCRAFT, WHETHER EXPRESS OR IMPLIED, ORAL
OR WRITTEN, ARISING BY LAW OR OTHERWISE, IN CONTRACT OR IN TORT, INCLUDING
WITHOUT LIMITATION, WARRANTIES WITH RESPECT TO THE AIRCRAFT'S AIRWORTHINESS,
MERCHANTABILITY, QUALITY, FITNESS FOR ANY PARTICULAR USE, PURPOSE, DESIGN,
CONDITION, VALUE, QUALITY, DURABILITY, OR AS TO THE ABSENCE OF LATENT, INHERENT
OR OTHER DEFECTS (WHETHER OR NOT DISCOVERABLE) OR AS TO THE ABSENCE OF ANY
INFRINGEMENT OF ANY PATENT, DESIGN, COPYRIGHT OR OTHER PROPRIETARY RIGHT OR
THOSE ARISING BY STATUTE OR OTHERWISE IN LAW FROM THE COURSE OF DEALING OR USAGE
OF TRADE.

     Section 7 DELIVERY DATE.

     The Delivery Date for the Aircraft is, as of the date hereof, scheduled to
occur on or about June 29, 2001 (the "SCHEDULED DELIVERY DATE"). The exact
Delivery Date will be designated by Seller, and Seller will give notice thereof
to Beneficiary, at least three (3) Business Days in advance thereof, PROVIDED
that if Seller fails to give to Beneficiary notice required by this sentence at
least three (3) Business Days prior to August 31, 2001, Beneficiary may, at its
option, by written notice to Seller,

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terminate its commitment hereunder to purchase and lease the Aircraft with no
liability whatsoever to Seller or Lessee or any other Person.

     Section 8 CONDITIONS PRECEDENT.

          (a) BENEFICIARY CONDITIONS. The obligation of Beneficiary and Owner
Trustee to purchase the Aircraft from Aero at the Delivery Time is subject to
the fulfillment to the reasonable satisfaction of Beneficiary and Owner Trustee,
or waiver by Beneficiary and Owner Trustee, of the following conditions
precedent on or prior to the Delivery Time:

          (i) all of the conditions precedent to obligations of Owner Trustee as
lessor under the Lease shall have been fulfilled or waived in accordance with
the terms thereof;

          (ii) the Owner Trustee shall have received (1) Assignment No. 1 duly
executed and delivered by Seller and Aero and the Consent and Agreement thereto
duly executed and delivered by Manufacturer; (2) Assignment No. 2 duly executed
and delivered by Aero and the Consent and Agreement thereto duly executed and
delivered by Manufacturer; and (3) the Engine Warranty Assignment and Consent
duly executed and delivered by Seller, Lessee and the Engine Manufacturer;

          (iii) all representations and warranties of Seller set forth herein or
in any of the documents delivered hereunder are true and accurate on and as of
the Delivery Date as though made on and as of the Delivery Date (unless any such
representation and warranty shall have been made with reference to a specified
date, in which case such representation and warranty shall be true and accurate
as of such specified date);

          (iv) the Aircraft shall be free and clear of Liens and Beneficiary and
Owner Trustee shall have received a memorandum of Daugherty, Fowler, Peregrin &
Haught ("SPECIAL FAA COUNSEL"), stating that there are no Liens of record noted
in the records of the United States Federal Aviation Administration;

          (v) Manufacturer shall have executed and delivered the Residual Value
Guarantee and the Deficiency Guarantee and there shall exist no condition
precedent to any such agreement becoming effective pursuant to the terms thereof
other than Delivery of the Aircraft;

          (vi) Seller shall have caused Aero to have delivered an original
executed FAA Bill of Sale to LSC to be held in escrow pending receipt by the
Seller of the Aircraft Price;

          (vii) Lessee shall have delivered the Lease and Lease Supplement No. 1
thereto, each duly executed and delivered by Lessee, to Special FAA Counsel to
be held in escrow pending release thereof by Lessee and Owner Trustee at the
Delivery Time in accordance with the terms of the Lease;

          (viii) no change shall have occurred subsequent to the execution of
this Agreement and prior to the Delivery Date in any applicable Law or in the
interpretation thereof that, in Beneficiary's reasonable opinion, would make it
illegal for Beneficiary or Owner Trustee, or both, to perform any of their
respective obligations under any of the Operative Documents;

          (ix) the Beneficiary shall have received a purchase agreement and
lease in substantially the same form as this Agreement and the Lease for each of
two other Embraer EMB

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     145LR aircraft (the "OTHER PURCHASE AGREEMENTS AND OTHER LEASES") duly
     executed and delivered by Seller and Lessee;

          (x) the Lessee shall have paid to the Owner Trustee the initial
     payment of Base Rent due under the Lease on the Delivery Date; and

          (xi) no Default or Event of Default shall have occurred and be
     continuing under (and as defined in) any Other Lease.

     (b) SELLER CONDITIONS. The obligation of Seller to sell the Aircraft to
Owner Trustee at the Delivery Time is subject to the fulfillment to the
reasonable satisfaction of Seller, or waiver by Seller, of the following
conditions precedent:

          (i) the Seller shall have received the Aircraft Price;

          (ii) the Seller shall have received Assignment No. 1 duly executed and
     delivered by Aero and the Consent and Agreement thereto duly executed and
     delivered by Manufacturer;

          (iii) all of the conditions precedent to obligations of Lessee under
     the Lease shall have been fulfilled or waived in accordance with the terms
     thereof;

          (iv) all representations and warranties of Beneficiary, WFB and Owner
     Trustee set forth herein or in any of the documents delivered hereunder or
     under the Lease are true and accurate on and as of the Delivery Date as
     though made on and as of the Delivery Date (unless any such representation
     and warranty shall have been made with reference to a specified date, in
     which case such representation and warranty shall be true and accurate as
     of such specified date);

          (v) the Seller and Aero shall have received the Acceptance Certificate
     duly executed and delivered by Owner Trustee;

          (vi) Owner Trustee shall have executed and delivered an original
     application for registration of the Aircraft on FAA AC Form 8050-1 to
     Special FAA Counsel, with pink copy thereof delivered to the Lessee to be
     placed on board the Aircraft at the Delivery Time, each to be held in
     escrow pending a direction by Seller to LSC to release the Bills of Sale
     from escrow;

          (vii) Owner Trustee shall have delivered the Lease and the Trust
     Agreement, duly executed and delivered by Owner Trustee, to Special FAA
     Counsel to be held in escrow pending release thereof by Lessee and Owner
     Trustee at the Delivery Time in accordance with the terms of the Lease or
     the Trust Agreement, as the case may be;

          (viii) no change shall have occurred subsequent to the execution of
     this Agreement and prior to the Delivery Date in any applicable Law or in
     the interpretation thereof that, in Seller's reasonable opinion, would make
     it illegal for Seller to perform any of its obligations under any of the
     Operative Documents to which it is a party;

          (ix) Beneficiary shall have caused (1) an application for registration
     of the Aircraft on FAA Form 8050-1 with the original signature of Owner
     Trustee attached thereto and (2) a copy of the Lease and the Lease
     Supplement No. 1 thereto and the Trust Agreement with the original
     signature of Owner Trustee attached thereto to be delivered to Special FAA
     Counsel to be held in escrow pending a direction by Seller to Special FAA
     Counsel to release the Bills of Sale from escrow; and

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          (x) the Lessee shall have received the Other Purchase Agreements and
     Other Leases, duly executed and delivered by Beneficiary and Owner Trustee.

     Section 9 Representations and Warranties.

          (a) SELLER'S REPRESENTATIONS AND WARRANTIES. Seller hereby represents
and warrants to the other Parties hereto, as of its execution of this Agreement
and as of the Delivery Date, that:

          (i) Seller is a corporation duly organized and validly existing under
     the laws of the State of Delaware and has corporate power and authority to
     carry on its business as presently conducted, to own its properties and to
     execute and deliver, and to perform all of its obligations under this
     Agreement, Assignment No. 1 and the Engine Warranty Assignment and Consent
     (collectively, the "SELLER DOCUMENTS");

          (ii) The execution, delivery and performance by Seller of the Seller
     Documents have been duly authorized by all necessary corporate action, do
     not require any stockholder approval or approval of any trustee or holder
     of any indebtedness or obligations of Seller, and do not and will not
     contravene the certificate of incorporation, by-laws or other charter
     documents of Seller or any law, governmental rule, regulation, judgment or
     order binding on Seller or contravene or result in a breach of, or
     constitute a default under any indenture, mortgage, contract or other
     agreement to which Seller is a party or by which Seller or its properties
     may be bound or affected, except for any such conflicts, breaches or
     defaults which would not, individually or in the aggregate, have a material
     adverse effect on the ability of Seller to perform its obligations under
     the Seller Documents;

          (iii) Neither the execution and delivery by Seller of, nor the
     performance by Seller of its obligations under, any of the Seller Documents
     requires the consent or approval of, or the giving of notice to, or the
     registration with, or the taking of any other action in respect of any
     governmental entity having jurisdiction over Seller or any of its
     affiliates or properties, except for the filing with the FAA of the FAA
     Bill of Sale and such other registrations, applications and recordings
     referred to in the opinion of Special FAA Counsel to be rendered by Special
     FAA Counsel on the Delivery Date;

          (iv) Each of the Seller Documents has been duly executed and delivered
     by Seller and each of the Seller Documents constitutes the legal, valid and
     binding obligations of Seller, enforceable in accordance with their
     respective terms, except as enforcement thereof may be limited by
     applicable bankruptcy, insolvency, reorganization, moratorium or other
     similar laws affecting the enforcement of creditors' rights generally and
     by such principles of equity (regardless of whether such enforceability is
     considered in a proceeding in equity or at law) as a court having
     jurisdiction may impose;

          (v) There are no pending or, to the best of Seller's knowledge,
     threatened actions or proceedings before any court, arbitrator or
     administrative agency that, if adversely determined, would have a material
     adverse effect on Seller's ability to perform its obligations under the
     Seller Documents;

          (vi) Seller is not in default in any material respect under the
     Manufacturer Purchase Agreement with respect to the Aircraft or the
     aircraft subject to the Other Purchase Agreements and Other Leases; and

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          (vii) as of the Delivery Date, the Aircraft shall not have been
     delivered by the Manufacturer to Aero more than fourteen (14) days prior to
     the Delivery Date.

          (b) BENEFICIARY'S REPRESENTATIONS AND WARRANTIES. Beneficiary hereby
represents and warrants to the other Parties hereto, as of its execution of this
Agreement and as of the Delivery Date, that:

          (i) Beneficiary is a corporation duly organized and validly existing
     under the laws of the State of New York and has corporate power and
     authority to carry on its business as presently conducted, to own its
     properties and to execute and deliver, and to perform all of its
     obligations under this Agreement and the other Operative Documents to which
     it is a party (collectively, the "BENEFICIARY DOCUMENTS");

          (ii) The execution, delivery and performance by Beneficiary of the
     Beneficiary Documents have been duly authorized by all necessary corporate
     action, do not require any stockholder approval or approval of any trustee
     or holder of any indebtedness or obligations of Beneficiary, and do not and
     will not contravene the articles of incorporation or by-laws of Beneficiary
     or any current law, governmental rule, regulation, judgment or order
     binding on Beneficiary or contravene or result in a breach of, or
     constitute a default under any indenture, mortgage, contract or other
     agreement to which Beneficiary is a party or by which Beneficiary or its
     properties may be bound or affected, except for any such conflicts,
     breaches or defaults which would not, individually or in the aggregate,
     have a material adverse effect on the ability of Beneficiary to perform its
     obligations under the Beneficiary Documents;

          (iii) Neither the execution and delivery by Beneficiary of, nor the
     performance by Beneficiary of its obligations under, the Beneficiary
     Documents requires the consent or approval of, or the giving of notice to,
     or the registration with, or the taking of any other action in respect of,
     any governmental entity having jurisdiction over Beneficiary or any of its
     affiliates or properties, except for the filing with the FAA of the Trust
     Agreement and such other registrations, applications and recordings
     referred to in the opinion of Special FAA Counsel to be rendered by Special
     FAA Counsel on the Delivery Date;

          (iv) Each of the Beneficiary Documents has been duly executed and
     delivered by Beneficiary and each of the Beneficiary Documents constitutes
     the legal, valid and binding obligations of Beneficiary, enforceable in
     accordance with their respective terms, except as enforcement thereof may
     be limited by applicable bankruptcy, insolvency, reorganization, moratorium
     or other similar laws affecting the enforcement of creditors' rights
     generally and by such principles of equity (regardless of whether such
     enforceability is considered in a proceeding in equity or at law) as a
     court having jurisdiction may impose;

          (v) There are no pending, to the best of Beneficiary's knowledge, or
     threatened actions or proceedings before any court, arbitrator or
     administrative agency that, if adversely determined, would have a material
     adverse effect on Beneficiary's ability to perform its obligations under
     the Beneficiary Documents;

          (vi) The funds to be used by the Beneficiary to acquire its interest
     under this Agreement and the other Operative Documents do not constitute
     assets (within the meaning of ERISA and any applicable rules and
     regulations) of an ERISA Plan;

          (vii) The Beneficiary acknowledges that the Residual Value Guarantee
     and the Deficiency Guarantee (collectively, the "GUARANTEES") contain
     confidentiality provisions that

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     prohibit the Beneficiary and Manufacturer from disclosing the Guarantees
     and the terms thereof to the Lessee, Seller and Owner Trustee without the
     consent of the other party, that the Beneficiary has made no such
     disclosure other than in clauses (vii), (viii) and (ix) of this Section
     9(b) (which disclosure the Manufacturer has consented to), that the
     Manufacturer has not sought the consent of the Beneficiary to disclose any
     terms of the Guarantees to the Lessee, Seller and Owner Trustee and, to the
     knowledge of the Beneficiary, the Manufacturer has not made any such
     disclosure;

          (viii) The Beneficiary has not granted any right to the Manufacturer
     under the Guarantees which is inconsistent with the rights of the Lessee
     under the Operative Documents; and

          (ix) The amount guaranteed by the Manufacturer under the Residual
     Value Guarantee is the Guaranteed Amount.

          (x) The Beneficiary has not entered into any agreements with the
     Manufacturer or any Person with respect to the transactions contemplated by
     this Agreement and the Operative Documents other than the Beneficiary
     Documents and the Guarantees.

          (c) OWNER TRUSTEE'S REPRESENTATIONS AND WARRANTIES. WFB, in its
individual capacity, and Owner Trustee, each as to itself only, hereby
represents and warrants to each of the other Parties hereto that:

          (i) WFB is a national banking association duly organized and existing
     under the laws of the United States of America and has the power and
     authority to carry on its business as presently conducted and to perform
     its respective obligations as lessor under this Agreement, the Trust
     Agreement, the Lease, Assignment No. 2, the Engine Warranty Assignment and
     Consent, the Acceptance Certificate and the application for registration of
     the Aircraft on FAA AC Form 8050-1 and the other Operative Documents to
     which it is a party (collectively, the "OWNER TRUSTEE DOCUMENTS"), whether
     in its individual capacity or as Owner Trustee;

          (ii) The execution, delivery and performance by Owner Trustee of the
     Owner Trustee Documents have been duly authorized by all necessary trust
     action on the part of WFB, do not require any approval of the shareholders
     of WFB (or if such approval is required, such approval has been obtained)
     or approval of any trustee or holder of any indebtedness or obligations of
     WFB or Owner Trustee, and do not and will not contravene the charter or
     by-laws of WFB or any current law, governmental rule, regulation, judgment
     or order binding on WFB or Owner Trustee or contravene or result in a
     breach of, or constitute a default under any indenture, mortgage, contract
     or other agreement to which WFB or Owner Trustee is a party or by which WFB
     or Owner Trustee or the property of either of them may be bound or
     affected;

          (iii) Neither the execution and delivery by Owner Trustee of, nor the
     performance by WFB or Owner Trustee of their respective obligations under,
     the Owner Trustee Documents requires the consent or approval of, or the
     giving of notice to, or the registration with, or the taking of any other
     action in respect of, any governmental entity having jurisdiction over WFB,
     Owner Trustee or any of their respective affiliates or properties, except
     for the filing with the FAA of the Trust Agreement, the application for
     registration of the Aircraft on FAA AC Form 8050-1 and such other
     registrations, applications and recordings referred to in the opinion of
     Special FAA Counsel to be rendered by Special FAA Counsel on the Delivery
     Date;

          (iv) Each of the Owner Trustee Documents has been duly executed and
     delivered by Owner Trustee and each of the Owner Trustee Documents
     constitutes the legal, valid and binding

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     obligations of Owner Trustee, enforceable in accordance with their
     respective terms, except as enforcement thereof may be limited by
     applicable bankruptcy, insolvency, reorganization, moratorium or other
     similar laws affecting the enforcement of creditors' rights generally and
     by such principles of equity (regardless of whether such enforceability is
     considered in a proceeding in equity or at law) as a court having
     jurisdiction may impose;

          (v) There are no pending, to the best knowledge of WFB or Owner
     Trustee, or threatened actions or proceedings before any court, arbitrator
     or administrative agency that, if adversely determined, would have a
     material adverse effect on Owner Trustee's ability to perform its
     obligations under the Owner Trustee Documents.

          (d) LESSEE'S REPRESENTATIONS AND WARRANTIES. Lessee hereby represents
and warrants to each of the other Parties hereto that that each of its
warranties and representations contained in Section 5.01 of the Lease are true
and accurate as of its execution of this Agreement and as of the Delivery Date
(unless any such representation and warranty shall have been made with reference
to a specified date, in which case such representation and warranty shall be
true and accurate as of such specified date).

          (e) SURVIVAL. The representations and warranties of the Parties
provided for in this Section 9 and in any other Operative Documents shall
survive the Delivery of the Aircraft and the expiration or other termination of
this Agreement and the other Operative Documents.

     Section 10 FURTHER COVENANTS.

          (a) FURTHER ASSURANCES. Each Party will promptly and duly execute and
deliver, or cause to be executed or delivered, to any other Party hereto (at
Seller's sole cost and expense except as may be otherwise expressly provided
herein) all and every document, agreements, certificates, instruments and any
other documents as the requesting Party or its counsel may reasonably request in
order to effect, perfect or confirm the consummation of the transactions
contemplated by this Agreement, the other Operative Documents, the agreements,
instruments and documents delivered or to be delivered hereunder or thereunder,
the taking of all necessary proceedings in connection herewith or therewith and
compliance with the conditions here or therein set forth.

          (b) BENEFICIARY COVENANTS.

          (i) QUIET ENJOYMENT. Beneficiary covenants that so long as no Event of
Default shall have occurred and be continuing, it will not, and it will not
permit any mortgagee or any other Person acting by or through Beneficiary or
Lessor (including any Financing Party) to take or cause or permit to be taken
any action contrary to Lessee's right to the quiet use and enjoyment of the
Aircraft during the Term, in accordance with the terms of the Lease.

          (ii) LESSOR'S LIENS. The Beneficiary agrees with and for the benefit
of the Lessee and the Owner Trustee that the Beneficiary will, at its own cost
and expense, take such action as may be necessary to duly discharge and satisfy
in full, promptly after the same first becomes known to the Beneficiary, any
Lessor's Lien (other than any Lien arising pursuant to a Financing) attributable
to the Beneficiary (or an Affiliate thereof), PROVIDED, HOWEVER, that the
Beneficiary shall not be required to discharge or satisfy such Lessor's Lien
which is being contested by the Beneficiary in good faith and by appropriate
proceedings so long as such proceedings do not involve any material risk of the
sale, forfeiture or loss of the Aircraft or the Trust Estate or any interest in
any thereof.

                                       9
<Page>

          (iii) AIRCRAFT REGISTRATION. Beneficiary agrees that if at any time on
or after the Delivery Date the Aircraft shall or would become ineligible for
registration in the name of the Owner Trustee at the FAA (such eligibility to be
determined without regard to any provision of law that permits the U.S.
registration of the Aircraft by restricting where it is based or used), then the
Beneficiary shall give notice thereof to the Lessee and the Owner Trustee and
shall (at its own expense and without any reimbursement or indemnification from
the Lessee) within a reasonable period after its obtaining actual knowledge that
the Aircraft is ineligible for its then-current U.S. registration (and in any
event within a period of 10 days thereafter) (x) effect a voting trust or
similar arrangement reasonably acceptable to Lessee that permits the continued
registration of the Aircraft in the name of the Owner Trustee at the FAA or (y)
transfer in accordance with the terms of the Agreement, the Lease and the Trust
Agreement all its rights, title and interest in and to the Trust Agreement and
the other Operative Documents. Each Party hereto agrees, upon the request and at
the sole expense of the Beneficiary, to cooperate with the Beneficiary in
complying with its obligations under the provisions of this Section 10(b)(i),
but without any obligation on the part of such other Party to take any action
believed by it in good faith to be unreasonably burdensome to such Party or
materially adverse to its business interests.

          (iv) COMPLIANCE WITH TRUST AGREEMENT. Beneficiary further agrees with
the Lessee that so long as the Lease and the Trust Agreement are in effect it
will (I) comply with all of the terms of the Trust Agreement applicable to it
noncompliance with which would materially adversely affect the Lessee and (II)
not take any action, or cause any action to be taken, to amend, modify or
supplement any other provision of the Trust Agreement in a manner that would
materially adversely affect the Seller without the prior written consent of the
Lessee. Notwithstanding anything else to the contrary in the Trust Agreement, so
long as the Lease remains in effect, the Beneficiary agrees not to terminate or
revoke the trust created by the Trust Agreement without the consent of the
Lessee.

          (v) ASSIGNMENT OF INTERESTS IN TRUST ESTATE. Beneficiary may assign
all of, or an undivided interest in, its rights and obligations hereunder, under
the other Operative Documents, and in the Trust Estate, to any Permitted
Transferee (PROVIDED that there shall be no more than two holders of the
interests in the Trust Estate at any time), upon

          (A) the execution and delivery by such Permitted Transferee of an
              agreement substantially in the form of Exhibit E-1 hereto or in
              such other form that is reasonably satisfactory in form and
              substance to Lessee and that includes the covenants,
              representations and warranties of the Permitted Transferee that
              are in the form of agreement attached as Exhibit E-1 and in which
              the Permitted Transferee unconditionally and irrevocably assumes
              the duties and obligations of the transferring Beneficiary under
              the Operative Documents with respect to the interest being
              transferred;

          (B) if and to the extent required by the definition of Permitted
              Transferee, the execution and delivery to Lessee and Owner Trustee
              of a Beneficiary Guaranty; and

          (C) delivery to the Lessee of an opinion of counsel (reasonably
              satisfactory to Lessee, which may be in-house counsel), in form
              and substance reasonably satisfactory to Lessee with respect to
              the due authorization, execution, delivery and enforceability of
              such agreement (and the Beneficiary Guaranty, if any) and the
              absence of any conflicts with or violations of any applicable Law
              (including any securities laws in respect of such transfer).

Upon (but only upon) any such transfer in accordance with the foregoing, the
duties and obligations of the Beneficiary arising from and after the date of
such transfer hereunder and under the other Operative

                                       10
<Page>

Documents shall terminate to the extent of the interest being transferred to and
assumed by the Permitted Transferee, who shall become a Beneficiary hereunder to
such extent. No such assignment shall increase the expenses or indemnity
obligations of Lessee hereunder or under any Operative Document (including,
without limitation, under Article XIV or Article XV of the Lease or under the
Tax Indemnity Agreement) or shall impair the registration of the Aircraft with
the FAA or the eligibility of the Owner Trustee to qualify as registered owner
of the Aircraft with the FAA, and the transferring Beneficiary shall provide
such information as Lessee may reasonably request to determine whether the
requirements of this sentence are satisfied. No transfer by a Beneficiary under
this Section 10(b)(v) shall release such Beneficiary from any obligations to
other Parties hereto theretofore accrued or in respect of acts or omissions
theretofore occurring or with respect to any interest not being transferred. The
transferring Beneficiary shall be responsible for all costs and expenses of any
transfer pursuant to this Section 10(b)(v) (including, but not limited to,
reasonable fees and expenses of counsel for Lessee and Owner Trustee). A
"Permitted Transferee" (1) shall be (x) a bank, savings institution, finance
company, leasing company or trust company, national banking association acting
for its own account or in a fiduciary capacity as trustee or agent under any
pension, retirement, profit sharing or similar trust or fund, insurance company,
financial institution, fraternal benefit society or a corporation acting for its
own account having a combined capital and surplus (or, if applicable,
consolidated net worth or its equivalent) of not less than $25,000,000, (y) a
subsidiary of any Person described in clause (x) where such Person provides a
guaranty of the obligations of such subsidiary substantially in the form
attached as Exhibit E-2 or in such other form that is reasonably satisfactory in
form and substance to Lessee and Owner Trustee (a "BENEFICIARY GUARANTY"), or
(z) an Affiliate of the transferring Beneficiary, so long as such Affiliate has
a combined capital and surplus (or, if applicable, consolidated net worth or its
equivalent) of not less than $25,000,000 (unless the Beneficiary remains liable
for the obligations of such Affiliate under the Operative Documents, in which
case there shall be no such net worth requirement), (2) shall be reasonably
experienced in equipment leasing and financing transactions; and (3) shall not
be (x) an airline or other Person engaged in air transportation or a competitor
of Lessee in the business of air transportation or any Affiliate thereof, (y) a
party adverse to the Lessee or any Affiliate of the Lessee in any pending
litigation or arbitration (whether as plaintiff or defendant) or (z) a Person
that has overtly threatened to initiate any such litigation or arbitration
against Lessee or any Affiliate of Lessee.

          (vi) ASSIGNMENT OF RIGHTS BY BENEFICIARY AND OWNER TRUSTEE.
Notwithstanding anything to the contrary contained herein or in any other
Operative Document, on or prior to the Delivery Date, upon notice to the Seller,
each of the Owner Trustee's and Beneficiary's rights (but not any of their
respective obligations other than the obligation to pay Aircraft Price) under
this Agreement to acquire the Aircraft shall be freely assignable in connection
with a like-kind exchange under Section 1031 of the Code, PROVIDED that on or
prior to the Delivery Date the Owner Trustee and the Beneficiary shall have
reacquired all such rights which have been so assigned.

          (vii) ACTIONS WITH RESPECT TO TRUST ESTATE, ETC. The Beneficiary
agrees that it will not take any action to subject the Trust Estate or the trust
established by the Trust Agreement, as debtor, to the reorganization or
liquidation provisions of the Bankruptcy Code or any other applicable bankruptcy
or insolvency statute.

          (viii) CONSENT TO OTHER OPERATIVE DOCUMENTS. The Beneficiary hereby
consents in all respects to the execution and delivery of the Lease and the
other Operative Documents and hereby agrees to follow the provisions thereof
which by their terms are applicable to it.

          (ix) GUARANTEES. The Beneficiary agrees for the benefit of the Lessee
that it will not make or consent to any change to the Guarantees that would make
the representation in Section 9(b)(viii) incorrect at the time of such change or
that would increase the Guaranteed Amount and the Beneficiary agrees to provide
notice to the Lessee of any decrease in the Guaranteed Amount and the amount of
such decrease.

                                       11
<Page>

     (e) SURVIVAL. The obligations of the Parties under this Section 10 shall
survive the Delivery of the Aircraft.

     Section 11 CONCERNING OWNER TRUSTEE.

     It is understood and agreed that, except as otherwise expressly provided
herein or in the Trust Agreement or any other Operative Document, WFB is
entering into this Agreement solely in its capacity as trustee as provided in
the Trust Agreement and not in its individual capacity and in no case whatsoever
will WFB be liable or accountable in its individual capacity for any of the
statements, representations, warranties, agreements or obligations of Lessor
hereunder, or for any loss in respect thereof, as to all of which all interested
parties agree to look solely to the Trust Estate; provided that nothing in this
Section 11 shall be deemed to limit in scope or substance the personal liability
of WFB (a) to Beneficiary as expressly set forth in the Trust Agreement, (b) in
respect of the representations, warranties and agreements of WFB expressly made
in its individual capacity herein or in any other Operative Document to which it
is a party, (c) for the consequences of its own gross negligence, willful
misconduct and, in receiving, handling or remitting of funds only, its willful
misconduct or simple negligence as a trustee, (d) in respect of Lessor's Liens
attributable to it in its individual capacity, and (e) taxes, fees or other
charges on, or based on, or measured by, any fees, commissions or compensation
received by it in connection with the transactions contemplated by the Operative
Documents.

     Section 12 MISCELLANEOUS.

          (a) NOTICES AND REQUESTS. Any report, notice, request, demand or other
communication to or upon the Parties hereto under this Agreement shall (i) be in
the English language and in writing; (ii) be deemed to have been duly delivered
to a party if it is (1) left at the address of that party specified below or at
such other address as that party may notify to the other party from time to
time, (2) sent by courier to that party at that address, or (3) sent by
facsimile to the facsimile number of that party specified below or to such other
number as that party may notify the other party from time to time; (iii) signed
on behalf of the party giving, serving or making the same by any attorney,
director, officer, secretary, partner, agent or other duly authorized
representative of such party; and (iv) be effective (a) in the case of a letter
or delivery by courier, when left at the address referred to above; or (b) in
the case of a facsimile transmission, when receipt is confirmed by return
facsimile or by telephone or on actual receipt if not so confirmed.

     For the purposes of this Agreement, all reports, notices, requests, demands
or other communications shall be given or made by being addressed as follows:

          If to the Seller:

                      Solitair Corp.
                      c/o Wexford Capital LLC
                      411 West Putnam Avenue
                      Greenwich, Connecticut  06830
                      Attention: President
                      Telephone:  203-862-7000
                      Facsimile:  203-862-7490

          If to Beneficiary:

                                       12
<Page>

                    Mitsui & Co. (U.S.A.), Inc.
                    200 Park Avenue
                    New York, NY  10166
                    Tel:    (212) 878-4314
                    Fax:    (212) 878-0979
                    Attn:  General Manager, Aerospace, Marine and Motor Vehicles

          If to WFB or Owner Trustee:

                    Wells Fargo Bank Northwest, National Association
                    79 South Main Street, Suite 300
                    Salt Lake City, Utah  84111
                    Attention:  Corporate Trust Department
                    Telephone:  801-246-5826
                    Facsimile:  801-246-5053

          If to Lessee:

                    Chautauqua Airlines, Inc.
                    2500 S. High School Road
                    Indianapolis, Indiana  46241
                    Tel:    (317) 484-6047
                    Fax:    (317) 484-6060
                    Attn:   President

          with a copy to:

                    Wexford Capital LLC
                    411 West Putnam Avenue
                    Greenwich, Connecticut 06830
                    Tel:    (203) 862-7000
                    Fax:    (203) 862-7490
                    Attn:   President

PROVIDED, that any report, notice, request, demand or other communication
delivered to Lessee in accordance with this Section 12(a) shall be effective as
to Lessee without regard to whether such report, notice, request, demand or
other communication has been delivered to Wexford Capital LLC

          (b) GOVERNING LAW; JURISDICTION.

          (i) THIS AGREEMENT IS BEING DELIVERED IN THE STATE OF NEW YORK, AND
     THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL, PURSUANT TO NEW
     YORK GENERAL OBLIGATIONS LAW SECTION 5-1401, BE GOVERNED BY THE LAWS OF THE
     STATE OF NEW YORK.

          (ii) The Parties hereto each hereby irrevocably consents that any
     legal action or proceeding against it or any of its assets arising out of
     or relating to this Agreement or any other Operative Document may be
     brought in any jurisdiction where it or any of its assets may be found, in
     the courts of the State of New York located in the County of New York, New
     York, and in the Federal courts sitting in the Southern District of New
     York, as the Party bringing such

                                       13
<Page>

     action or proceeding may elect, and by execution and delivery of this
     Agreement each of the Parties hereto hereby irrevocably submits to and
     accepts with regard to any such action or proceeding, for itself and in
     respect of its assets, generally and unconditionally, the jurisdiction of
     the aforesaid courts and irrevocably agrees to be bound by any judgment
     rendered thereby. Nothing herein shall prevent any Party from bringing any
     legal action or proceeding or obtaining execution of judgment in any other
     appropriate jurisdiction. The Parties hereto further agree that a final
     judgment in any action or proceeding arising out of or relating to this
     Agreement or any other Operative Document shall be conclusive and may be
     enforced in any other jurisdiction within or outside the United States by
     suit on the judgment, a certified or exemplified copy of which shall be
     conclusive evidence of the fact and the amount of the indebtedness or
     liability therein described, or in any other manner provided by law. Each
     of the Parties hereto hereby irrevocably waives, to the fullest extent
     permitted by law, any objection which it may now or hereafter have to the
     laying of venue of any suit, action or proceeding arising out of or
     relating to this Agreement or any other Operative Document brought in any
     court in or of New York, New York, and hereby further irrevocably waives
     any claim that any such suit, action or proceeding in New York, New York
     has been brought in an inconvenient forum.

          (iii) Each Party hereto hereby irrevocably consents to the service by
     certified mail at its address set forth in Section 12(a) of any summons and
     complaint and any other process which may be served in any action or
     proceeding arising out of or relating to this Agreement or any other
     Operative Document. Notwithstanding the foregoing, nothing herein shall
     affect the rights of either Party to serve process in any other manner
     permitted by law.

          (iv) WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE
     FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A
     TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING
     OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER OPERATIVE
     DOCUMENT. Each Party hereto (a) certifies that no representative, agent or
     attorney of any other Party has represented, expressly or otherwise, that
     such other Party would not, in the event of litigation, seek to enforce the
     foregoing waiver and (b) acknowledges that it and the other Parties hereto
     have been induced to enter into this Agreement and the other transaction
     documents, as applicable, by, among other things, the mutual waivers and
     certifications in this section.

          (c) [RESERVED.]

          (d) ASSIGNMENTS. Except as otherwise expressly provided herein or in
any other Operative Document, this Agreement shall not be assignable by any
Party without the consent of the other Parties; PROVIDED, HOWEVER, that the
Beneficiary may assign its rights and obligations in and under this Agreement
without the consent of the Seller or Lessee in connection with the sale of all
or a portion of the Beneficiary's interests in the Trust Estate, the Aircraft
and Lease as provided in Section 10(b)(v) hereof and may assign its rights, but
not its obligations as provided in Section 10(b)(vi) hereof. This Agreement, and
the rights and obligations of the Parties hereunder, shall be binding upon and
inure to the benefit of each of the Parties, their respective successors and
permitted assigns.

          (e) TRANSACTION COSTS. Beneficiary shall be responsible for and shall
pay and reimburse the Parties for all reasonable out of pocket costs and
expenses of the Parties (other than costs and expenses relating to the Owner
Trustee specified in the next succeeding sentence), including the costs and
expenses of counsel, LSC, Special FAA counsel (other than costs and expenses of
Special FAA Counsel referred in the next succeeding sentence) and Pinheiro Neto,
special Brazilian counsel, and the fee of Lessee's advisor (not to exceed 0.5%
of the Aircraft Price), in each case incurred in connection with the
preparation, negotiation and delivery of this Agreement and any other documents,
agreements or

                                       14
<Page>

instruments delivered in connection herewith up to a maximum amount in the
aggregate of [*], and Lessee shall be responsible for and shall pay or
reimburse Beneficiary for all such costs and expenses in excess of the
aggregate amount of [*]. Lessee also shall be responsible for and shall pay
or reimburse all costs and expenses relating to the Owner Trustee, including
the annual fees and expenses of the Owner Trustee and the costs and expenses
of Special FAA Counsel in qualifying the Trust Agreement with the FAA. All
such costs and expenses of the parties to the transaction other than the
Parties shall be evidenced by appropriate original bills or invoices, which
shall be reasonably satisfactory in form and amount to the Beneficiary and,
with respect to any amounts payable by Lessee, the Lessee.

          (f) NO WAIVER. The failure of any Party to enforce at any time any of
the provisions of this Agreement or any document, agreement or instrument
delivered hereunder, or to require at any time the performance by the other
Party of any of the provisions hereof or thereof, shall in no way be construed
to be a waiver of such provisions, nor in any way affect the validity of this
Agreement or such document, agreement or instrument or any part thereof, or the
right of such Party thereafter to enforce each and every such provision. The
express waiver by any Party of any provision, condition or requirement of this
Agreement or any document, agreement or instrument delivered hereunder shall not
constitute a waiver of any future obligation to comply with such provision,
condition or requirement.

          (g) SEVERABILITY. Any provision of this Agreement that is prohibited
or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provisions in any other jurisdiction. To the extent permitted
by law, each of the Parties hereto hereby waives any provisions of law which
renders any provisions hereof prohibited or unenforceable in any respect.

          (h) COUNTERPARTS. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

          (i) ENTIRE AGREEMENT; MODIFICATION OR REVISION. This Agreement and the
other Operative Documents are, collectively, intended to be a complete and
exclusive statement of the terms of the agreement of the Parties and this
Agreement and the other Operative Documents supersede any prior or
contemporaneous agreements, whether oral or in writing in relation to the
transactions contemplated herein. None of this Agreement, any other Operative
Document or any term hereof or thereof may be modified or waived except by an
agreement in writing signed by the Parties.

          (j) HEADINGS. The headings of the Sections in this Agreement are
inserted for convenience of reference only, and are not deemed to be part of
this Agreement shall not in any way affect the interpretation thereof.

          (k) NO BROKER.

               (i) Seller hereby represents and warrants that it has not paid,
          agreed to pay or caused to be paid directly or indirectly in any form,
          to any Person, other than Seabury Securities LLC, any commission,
          percentage, contingent fee, brokerage or other similar payments of any
          kind, in connection with the establishment or operation of this
          Agreement.

               (ii) Beneficiary and Owner Trustee each hereby represents and
          warrants that it has not paid, agreed to pay or caused to be paid
          directly or indirectly in any form, to any Person, other than Tombo
          Aviation Inc., any commission, percentage, contingent fee,

----------
* Confidential
                                       15
<Page>

          brokerage or other similar payments of any kind, in connection with
          the establishment or operation of this Agreement.

          (l) CONFIDENTIALITY. The Parties agree to keep the following
information confidential: the Aircraft Price, Assignment No.1, Assignment No. 2
and the terms of the warranties relating to the Airframe, the Engine Warranty
Assignment and Consent and the terms of the warranties relating to the Engines
and such other information as any Party shall identify in writing to the other
Parties as confidential information. This confidentiality obligation shall
survive the termination of the Lease for a period of one year following such
termination, except that if the Lease shall have been terminated following an
Event of Default, Lessor and Beneficiary shall have the right to disclose such
information as may be necessary in order to remarket the Aircraft and/or to
enforce any remedy that may be available to it. Notwithstanding the foregoing,
this Agreement, the other Operative Documents and all information supplied by
either of the Parties hereunder or thereunder may be disclosed by any of the
other Parties (1) as may be required by Law or by any court or administrative
order, (2) to the extent that the substance hereof or thereof becomes public
knowledge through no fault or negligence of such other party, (3) to such
Party's professional advisers and to the Manufacturer and Engine Manufacturer,
and (4) to any subsequent potential transferees of the Aircraft, the Trust
Estate or an interest therein or the Beneficial Interest or to a Financing
Party; PROVIDED that any such Person agrees to be bound by this Section 12(l).

                      [signature page immediately follows]

                                       16
<Page>

     IN WITNESS WHEREOF, the Parties hereto have duly executed this Aircraft
Purchase Agreement [N288SK] as of the day and year first above written.

                                       SOLITAIR CORP.

                                       By: /s/ Doug Lambert
                                           -------------------------------------
                                         Name: Doug Lambert
                                         Title: Vice President

                                       CHAUTAUQUA AIRLINES, INC.

                                       By: /s/ Robert H. Cooper
                                           -------------------------------------
                                         Name: Robert H. Cooper
                                         Title: Vice President

                                       MITSUI & CO. (U.S.A.), INC.

                                       By: /s/ Kazuki Okamura
                                           -------------------------------------
                                         Name: Kazuki Okamura
                                         Title: General Manager

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

                                       By: /s/ Brett R. King
                                           -------------------------------------
                                         Name: Brett R. King
                                         Title: Vice President

<Page>
                                                                       EXHIBIT A
                                                           TO PURCHASE AGREEMENT

                              FORM OF BILL OF SALE

KNOW ALL MEN BY THESE PRESENT THAT AERO LTD., a Cayman Islands corporation
("AERO"), whose address is [____________________], is the owner of good and
marketable title to that certain EMB-145 LR Aircraft bearing Manufacturer's
Serial No. [____], with two Rolls Royce Allison AE3007A1P engines bearing
manufacturer's serial numbers CAE [_____] and CAE [____], with all appliances,
parts, instruments, appurtenances, accessories, furnishings and/or other
equipment or property incorporated in or installed on or attached to said
aircraft, not including the galley equipment, serving equipment or emergency
medical equipment (hereinafter collectively referred to as the "AIRCRAFT")
purchased by WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION, a national
banking association, not in its individual capacity, but solely as trustee under
a Trust Agreement dated as of June 5, 2001 between itself and MITSUI & CO.
(U.S.A.), INC., a corporation organized and existing under the laws of the State
of New York, with its principal place of business at 200 Park Avenue, New York,
New York 10166 (the "PURCHASER"), under the Aircraft Purchase Agreement
[N288SK], dated as of June 5, 2001, including Attachments, Exhibits, Letters,
Amendments and Agreements by and between AERO and PURCHASER.

THAT for and in consideration of the sum of US$10.00) and other valuable
consideration, receipt of which is hereby acknowledged, AERO does this ___ day
of _____, 2001, grant, convey, transfer bargain and sell, deliver and set over
to PURCHASER and unto its successors and assigns forever, all of AERO's right,
title and interest in and to the Aircraft.

THAT AERO hereby represents and warrants to PURCHASER, its successors and
assigns:

(i)  that AERO has good and marketable title to the Aircraft and the good and
     lawful right to the Aircraft and the good and lawful right to sell the
     same; and
(ii) that good and marketable title to the Aircraft is hereby duly vested in
     PURCHASER free and clear of all claims, liens, encumbrances and rights of
     others of any nature. AERO hereby covenants and agrees to defend such title
     forever against all claims and demands whatsoever.

This Full Warranty Bill of Sale is governed by the laws of the state of New
York, United States of America.

IN WITNESS WHEREOF, AERO has caused this instrument to be executed and delivered
by its duly authorized officer and attorney in fact.

Date as of __________, __, 2001.

AERO LTD.

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

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

<Page>

                                                                      EXHIBIT B
                                                           TO PURCHASE AGREEMENT

                         FORM OF ACCEPTANCE CERTIFICATE

     This undersigned WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION, not in
its individual capacity, but solely as trustee under a Trust Agreement, dated as
of June 5, 2001 (the "TRUST AGREEMENT"), between MITSUI & CO. (U.S.A.), INC. and
itself (the "PURCHASER"), hereby indicates and confirms to SOLITAIR CORP. (the
"SELLER") and AERO LTD. ("AERO") and their respective successors and assigns
that PURCHASER has at _____________a.m./p.m. (New York time) on this ______ day
of June, 2001 (the "DELIVERY TIME"), and at the city of Sao Jose dos Campos, Sao
Paulo, Brazil, accepted the following Aircraft, "as is, where is" in accordance
with the provisions of the Aircraft Purchase Agreement, dated as of June 5,
2001, among PURCHASER, SELLER and Mitsui & Co. (U.S.A.), Inc., and does hereby
consider it duly transferred to the ownership of PURCHASER, which from the
Delivery Time on assumes the full responsibility for any and all damages and
risks that may arise out of its ownership and operation:

     One EMB-145 LR Aircraft bearing Manufacturer's Serial No. 145461, with two
Rolls Royce Allison AE3007A1P engines bearing manufacturer's serial numbers CAE
311866 and CAE 311867, with all appliances, parts, instruments, appurtenances,
accessories, furnishings and/or other equipment or property incorporated in or
installed on or attached to said aircraft (not including the galley equipment,
serving equipment or emergency medical equipment),

     IN WITNESS WHEREOF, PURCHASER has caused this Acceptance Certificate to be
executed in its name, by its duly authorized officers) or representative(s),
pursuant to due corporate authority, this ___________ day of June. 2001.

                                       WELLS FARGO BANK NORTHWEST, NATIONAL
                                       ASSOCIATION, not in its individual
                                       capacity, but solely as trustee under the
                                       Trust Agreement

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

<Page>
<Page>

                                                                     EXHIBIT A-2
     Section 1. GENERAL CONDITIONS.

     "APPRAISAL PROCEDURE" means, if (x) the Beneficiary does not provide a
Residual Notice to the Lessee as provided in Section 3(e) by the one hundred
eightieth (180th) day prior to the Expiration Date (it being agreed that, if
such Residual Notice is so given, the RVG Appraisal Procedure in Exhibit D-2
shall be used to determine Fair Market Sales Value, except as set forth in the
last proviso to this sentence), and (y) the Lessor and the Lessee shall not have
agreed on the Fair Market Sale Value of the Aircraft within thirty (30) days
after Lessee gives notice pursuant to Section 3(c) that it is exercising its FMV
Option, then Fair Market Sale Value shall be as specified in an appraisal
prepared and delivered in New York City and mutually agreed to by two recognized
independent aircraft appraisers, one of which shall be appointed by the Lessor
and the other of which shall be appointed by the Lessee, in each case promptly
after such one hundred eightieth (180th) day, or, if such appraisers cannot
agree on such appraisal, an appraisal arrived at by a third independent
recognized appraiser chosen by the mutual consent of the two aircraft
appraisers, PROVIDED that if either party should fail to appoint an appraiser
within fifteen (15) days of receiving notice of the appointment of an appraiser
by the other party, then such appraisal shall be made by the appraiser appointed
by the first party, and PROVIDED FURTHER, that if the two appraisers cannot
agree on such appraisal and fail to appoint a third independent recognized
aircraft appraiser within fifteen (15) days after the appointment of the second
appraiser, then either party may apply to the American Arbitration Association
to make such appointment, and PROVIDED FURTHER that the appraisal shall be
completed within thirty (30) days of the appointment of the last appraiser so
appointed, and PROVIDED FURTHER that, for purposes of Section 17.02 of the
Lease, any determination of Fair Market Sales Value or Fair Market Rental Value
pursuant to Section 17.02 of the Lease shall be made by a single recognized
independent aircraft appraiser selected by Lessor and the costs and expenses
associated therewith shall be borne by Lessee..

     Each appraiser appointed pursuant to any of the foregoing procedures must
be associated with a professional organization of aircraft appraisers and the
appraised fair market sales values shall be determined by the appraisers
pursuant to ISTAT 1994 appraisal methods, definitions and assumptions (or any
successor thereto). Each of the Lessor and Lessee agrees to promptly provide the
other Party with copies of any reports received by it from any appraiser hired
by it in connection with the appraisal procedures described above. Except as
otherwise expressly provided in the Lease and in the last proviso of the first
paragraph of this definition of Appraisal Procedure, all appraisal costs will be
shared equally by the Lessor and the Lessee; provided that if the Lessee elects
not to renew the Lease or purchase the Aircraft following the conclusion of such
appraisal, the Lessee shall pay all such appraisal costs.

     "ASSUMED TRANSACTION COSTS" means [*]

     "BASIC RENT" means the amount payable on each Rent Payment Date as set
forth in Schedule BR1, as adjusted pursuant to Section 4.01) of the Lease,
PROVIDED that each such amount shall be allocated among the Rental Periods as
set forth in Schedule BR2, as adjusted pursuant to Section 4.01 of the Lease.

     "EARLY PURCHASE OPTION" means the purchase option exercisable by Lessee on
the Early Purchase Date.

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     "DEFICIENCY GUARANTEE" means the Deficiency Guarantee Agreement, dated June
5, 2001, between the Manufacturer and Beneficiary.

     "FAIR MARKET RENTAL VALUE" means in respect of the Aircraft at any time,
the aggregate base rentals (which shall in no event be less than zero) which
would be payable in an arm's-length transaction for cash under a lease of the
Aircraft on an "as is", "where is" basis and otherwise on terms substantially
identical (except for Basic Rent and Term) to the terms of this Lease for such
period of time as such Fair Market Rental Value is to be determined between a
willing lessor and a willing lessee both with full knowledge of the relevant
facts, including the actual condition and maintenance status of the Aircraft at
such time, and neither under any compulsion to enter into the transaction.

     "FAIR MARKET SALE VALUE" means in respect of the Aircraft, if the
Beneficiary does not provide a Residual Notice to the Lessee as provided in
Section 3(e), an amount equal to the fair market sales value (which shall in no
event be less than zero) which would be obtained in an arms' length retail
transaction for a sale of the Aircraft, between an informed and willing buyer
(other than a lessee currently in possession or a used equipment dealer) and an
informed and willing seller, neither under any compulsion to buy or sell. In
determining Fair Market Sale Value by appraisal or otherwise, it will be assumed
that the Aircraft is in the condition, location and overhaul status in which it
is required to be returned to the Lessor pursuant to Article XVIII of the Lease
(without any allowance which may otherwise be permitted by Section 6 of EXHIBIT
D-1), that the Lessee has removed all Parts which it is entitled to remove
pursuant to Article IX of the Lease and that the Aircraft is not encumbered by
the Lease, PROVIDED that if an Event of Default has occurred, then for purposes
of Section 17.02 of the Lease, the Fair Market Sales Value of the Aircraft, the
Airframe or any Engine shall be determined on an "as is, where is" basis and
shall take into account customary brokerage and other out-of-pocket fees and
expenses which typically would be incurred in connection with a sale of the
Aircraft, the Airframe or any Engine. If the Beneficiary provides a Residual
Notice as provided in Section 3(e), the definition of Fair Market Sale Value
will be determined as provided in the definition of RVG Appraisal Procedure.

     "FMV OPTION" means the purchase option exercisable by the Lessee on the
Expiry Date.

     "GUARANTEED AMOUNT" means [*].

     "MAINTENANCE PROGRAM" means the Lessee's maintenance program, as such
program may be from time to time amended and supplemented by Lessee and which
(i) shall have been approved by the FAA ) and be in compliance with Part 121 of
the Federal Aviation Regulations (as set forth in Title 14 of the U.S. Code of
Federal Regulations), (ii) shall fully comply with the requirements of the FAA
for the EMB-145 and Rolls-Royce Allison AE3007-A1P aero engines (or an improved
model, as the case may be) installed thereon, and (iii) shall incorporate the
requirements of the EMB-145 Scheduled Maintenance Requirements Document Part 1
("SMRD"), the Aircraft Maintenance Manual ("AMM"), the Structural Repair Manual
("SRM"), the Corrosion Prevention and Correction Program ("CPCP") and the
Original Equipment Manufacturers' ("OEMS") maintenance manuals, (all of the
foregoing as from time to time amended or supplemented), the Service Newsletters
and the service bulletins issued by the Manufacturer and all OEMs, provided,
however, that when the Aircraft is subject to a Sublease, "Maintenance Program"
shall mean any maintenance program approved by the relevant Aeronautical
Authority for the Aircraft, Airframe and engines, as applicable, but only to the
extent provided in the Sublease. .

     "MINIMUM LIABILITY AMOUNT" means [*].

     "NET ECONOMIC RETURN" means the Beneficiary's nominal after-tax book yield
(utilizing the multiple investment sinking fund method of analysis), computed
through the Early Purchase Date and the Expiry Date on the basis of the same
methodology, constraints and assumptions as were utilized by the

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initial Beneficiary in determining Basic Rent and Stipulated Loss Values as
of the Delivery Date; provided that, if the initial Beneficiary shall have
transferred all or any portion of its interest, Net Economic Return shall be
calculated as if the initial Beneficiary had retained its interest .

     "LEASE [N287SK]" means Aircraft Lease Agreement [N287SK], dated as of June
5, 2001 between an Other Lessor and Lessee.

     "LEASE [N288SK]"means Aircraft Lease Agreement [N288SK], dated as of June
5, 2001 between an Other Lessor and Lessee.

     "PBH AGREEMENT" has the meaning assigned in Exhibit D-1 or Exhibit D-2, as
applicable.

     "PURCHASE PRICE" means, in the case of the Early Purchase Option, the
higher of [*] and Stipulated Loss Value as listed in the column headed
"Stipulated Loss Value" in Schedule SLV on the Early Purchase Date, and in the
case of the FMV Purchase Option, the Fair Market Sale Value of the Aircraft as
of the Expiry Date.

     "RESIDUAL VALUE GUARANTEE" means the Residual Value Guarantee Agreement,
dated as of June 5, 2001, between the Beneficiary and the Manufacturer.

     "RVG APPRAISAL PROCEDURE" has the meaning specified in Section 9 of Exhibit
D-2.

     "SCHEDULED DELIVERY DATE" means June 5, 2001, or such other date as may be
notified to Lessee by the Manufacturer and agreed to by Lessor, but not later
than August 31, 2001.

     "STIPULATED LOSS VALUE" means, with respect to any given date, the amount
set forth in the column headed "Stipulated Loss Value" in Schedule SLV opposite
such date or the next succeeding date in such column, in each case as adjusted
pursuant to Section 4.01 of the Lease.

     Section 2. [RESERVED]

     Section 3. PURCHASE OPTION. (a) The Lessee may, at its option and upon
written notice to Lessor as hereinafter provided, (i) so long as no Specified
Default (other than an Event of Default described in Section 17.01(m) of the
Lease) shall have occurred and be continuing, purchase the Aircraft at the
Purchase Price on the date that is the fourteenth anniversary of the Delivery
Date (the "EARLY PURCHASE DATE") (such purchase option, the "EARLY PURCHASE
Option"), or (ii) so long as no Event of Default described in Section 17.02 (g),
(h) and (i) shall have occurred and be continuing, on the Expiration Date (the
"EXPIRY DATE") (such purchase option, the "FMV OPTION," and the Early Purchase
Option and FMV Option each being herein referred to as a "LESSEE PURCHASE
OPTION").

     (b) In the event Lessee intends to exercise the Early Purchase Option on
the Early Purchase Date, Lessee shall give irrevocable written notice to Lessor
stating that it intends to so exercise the Early Purchase Option, which notice
shall be delivered to Lessor not less than one hundred twenty (120) days nor
more than three hundred sixty-five (365) days prior to the Early Purchase Date
and shall set forth a reasonably detailed calculation of the amounts that will
be due on the Early Purchase Date, PROVIDED that if Lessee fails to to deliver
such notice not less than one hundred twenty (120) days prior to the Early
Purchase Date, Lessee shall be deemed to have waived its right to exercise the
Early Purchase Option.

     (c) In the event Lessee intends to exercise the FMV Option , Lessee shall
give written notice to Lessor of its intent to exercise its FMV Option on the
Expiry Date, which notice shall be delivered to Lessor not less than two hundred
ten (210) days prior to the Expiry Date, PROVIDED that if Lessee fails to

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deliver such notice not less than two hundred ten (210) days prior to the Expiry
Date, Lessee shall be deemed to have waived its right to exercise the FMV
Option.

     (d) After providing notice of its exercise of a Lessee Purchase Option,
whether or not any purchase is consummated pursuant to a Purchase Option, Lessee
shall pay all the out-of-pocket expenses of Lessor (including, but not limited
to, reasonable legal fees) relating thereto or incurred in connection therewith,
PROVIDED that, if Lessee revokes the exercise of its FMV Option as provided in
Section 3(f) or such exercise is revoked as provided in Section 3(e), such costs
shall be limited to appraisal costs and shall be paid as provided in the
definition of the Appraisal Procedure or the RVG Appraisal Procedure, as
applicable.

     (e) If (i) the Lessee has timely given the notice described in Section
3(c) that it is exercising the FMV Purchase Option, and (ii), the Beneficiary
delivers notice to Lessee (such notice, a "RESIDUAL NOTICE") not less than one
hundred eighty (180) days prior to the Expiry Date that Beneficiary has notified
or is notifying the Manufacturer that it is demanding payment under the Residual
Value Guarantee, the Fair Market Sales Value of the Aircraft shall be determined
pursuant to the RVG Appraisal Procedure in Exhibit D-2. If (i) the Lessee has
timely given the notice described in Section 3(c) that it is exercising the FMV
Purchase Option and (ii) the Beneficiary does not so deliver a Residual Notice,
the Fair Market Sales Value of the Aircraft shall be determined in accordance
with the Appraisal Procedure in this Exhibit A-2. The Manufacturer shall have
the right to notify Lessee and Beneficiary within 30 days after the
determination of Fair Market Sales Value in accordance with the RVG Appraisal
Procedure whether it will exercise its purchase option under the Residual Value
Guarantee, in which case Lessee's exercise of the FMV Purchase Option shall be
revoked and cancelled.

     (f) Unless the Lessee's purchase option is revoked under the preceding
clause (e) by the Manufacturer's exercise of its purchase option under the
Residual Value Guarantee, Lessee shall have the option of revoking its exercise
of the FMV Purchase Option within forty-five (45) days after the determination
of Fair Market Sales Value pursuant to the Appraisal Procedure or within fifteen
(15) days following the determination of Fair Market Sales Value pursuant to the
RVG Appraisal Procedure, but in either case not later than 105 days prior to the
end of the Basic Term.

     (g) Upon the date specified by Lessee in the notice referred to in
paragraph (b) or (c) of this Section 3, as applicable (and subject to revocation
of the FMV Purchase Option as provided in Section 3(e) or Section 3(f)), Lessee
shall pay the applicable Purchase Price for the Aircraft at the Payment Location
and in the manner set forth in Section 4.02 of the Lease, together with (i) the
amount of Basic Rent, if any, then due and unpaid on such date PLUS (ii) the
amount of deferred Basic Rent, if any, as of such date as set forth in the
column headed "Deferred Basic Rent" in Schedule SLV, MINUS (iii) the amount of
prepaid Basic Rent, if any, as of such date as set forth in the column headed
"Prepaid Basic Rent" in Schedule SLV, PLUS (iv) any Supplemental Rent unpaid as
of such date. Upon receipt by Lessor of the amounts described in the preceding
sentence, Lessor will transfer the Aircraft to Lessee on an "as is, where is"
basis and without any representation or warranty except that it is transferring
to Lessee title, free of Lessor's Liens, but subject to Liens arising by or
through Lessee, and will, at Lessee's sole cost and expense, execute and deliver
a bill of sale evidencing the same and such other instruments as Lessee may
reasonably request to evidence such transfer and the release of the Aircraft
from the terms of this Lease.

     (h) Upon delivery by the Lessor of the Aircraft and payment by the Lessee
of all amounts payable by the Lessee under paragraph (g) above, the obligations
of the Lessee to pay Rent (except for Supplemental Rent obligations surviving
pursuant to Articles XIV and XV of the Lease or the Tax Indemnity Agreement or
which have otherwise accrued but not been paid as of the Early Purchase Date or
the Expiry Date) shall cease and the Term shall end.

<Page>

     Section 4. ADDITIONAL CONDITIONS PRECEDENT. Lessor shall have received a
copy of the Residual Value Guaranty and the Deficiency Guarantee, each duly
executed and delivered by the Manufacturer.

     Section 5. RE-REGISTRATION. Lessor agrees that in connection with a
Sublease to a Permitted Sublessee that is not a Section 1110 Person and that is
not domiciled in the United States, Lessee may register the Aircraft in any
country listed on EXHIBIT F hereto; subject to satisfaction of the requirements
for such a Sublease in Section 8.01(c) of the Lease (including, without
limitation, the requirements that no Specified Default shall have occurred and
be continuing, such Permitted Sublessee has provided evidence satisfactory to
Lessor of insurance coverage required by the XI with respect to the operation of
the Aircraft by such Permitted Sublessee, and the Lessee has made the lump sum
payment required by Section 8.01(c)(i) of the Lease, if any) and to the
following conditions:

          (i) the Lessee shall pay all reasonable fees and expenses (including
     the reasonable fees and expenses of local counsel in such country) relating
     to such re-registration;

          (ii) the Lessee shall, at its cost, cause the interest of the Owner
     Trustee as owner of the Aircraft to be duly registered or recorded under
     the laws of such country and at all times thereafter to remain so duly
     registered or recorded unless and until the registration of the Aircraft is
     changed as provided herein, and shall, at its cost, cause to be done at all
     times all other acts including the filing, recording and delivery of any
     document or instrument and the payment of any sum necessary or, by
     reference to prudent industry practice in such country, advisable in order
     to create, preserve and protect such interest in the Aircraft as against
     the Lessee or any third parties in such jurisdiction, and the laws of such
     country would give effect to the Owner Trustee's title to and ownership
     interest in the Aircraft;

          (iii) the obligations of the Lessee (and of the Permitted Sublessee
     under a Sublease) and the rights and remedies of the Lessor shall remain or
     be, as the case may be, legal, valid, binding and enforceable in such
     country, and the courts of such country will respect the choice of New York
     law to govern the Lease;

          (iv) the Aeronautical Authority in the country of such re-registration
     imposes aircraft maintenance standards approved by, or at least as
     stringent as those approved by, the FAA the JAA or the central civil
     aviation authority of the United Kingdom, France, Germany, Japan, the
     Netherlands or Canada;

          (v) it shall not be necessary by reason of such re-registration or for
     purposes of enforcing remedies contained in the Lease or the related
     Sublease for the Owner Trustee or the Beneficiary to register or qualify to
     do business in such country;

          (vi) no Liens (except Permitted Liens) shall arise by reason of such
     re-registration;

          (vii) none of the Owner Trustee and the Beneficiary shall be subjected
     to any risk of adverse tax consequences in the jurisdiction in which the
     Aircraft is to be re-registered as a result of such re-registration for
     which the Lessee does not then indemnify or cause to be indemnified such
     Person in a manner satisfactory in form and substance to such Person;

          (viii) any export licenses and certificate of deregistration required
     in connection with any repossession or return of the Aircraft will be
     readily obtainable in the normal course without material delay or material
     burden on the Owner Trustee, it being agreed that the Lessee shall be
     responsible for the cost thereof;

<Page>

          (ix) there is no tort liability of the owner or lessor of an aircraft
     not in possession thereof under the laws of such jurisdiction more onerous
     than under the laws of the United States or any state thereof (it being
     agreed that, in the event such opinion cannot be given in a form
     satisfactory to the Beneficiary, such opinion shall be waived if insurance
     reasonably satisfactory to the Beneficiary is provided to cover such risk);

          (x) unless Lessee shall have agreed to provide insurance reasonably
     satisfactory to the Beneficiary covering the risk of requisition of use of
     or title to the Aircraft by the government of such country (so long as the
     Aircraft is registered under the laws of such country), the laws of such
     country require fair compensation by the government of such country payable
     in currency freely convertible into Dollars and freely removable from such
     country (without license or permit, unless Lessee prior to such proposed
     re-registration has obtained such license or permit or such license or
     permit will be readily obtainable in the normal course without material
     delay or material burden on the Beneficiary) for the taking or requisition
     by such government of such use or title;

          (xi) the Beneficiary and the Owner Trustee shall have received
     opinions in scope, form and substance reasonably satisfactory to them, of
     counsel, expert in the laws of such country, to the effect set forth in
     clauses (ii), (iii) (with respect to the obligations of the Lessee under
     the Lease), (v), (vii), (viii), (ix) and (x) of this Section 5;

          (xii) such proposed change in registration is made in connection with
     a Sublease to a Permitted Sublessee domiciled in such country; and

          (xiii) Lessee shall deliver such request to Lessor and Beneficiary in
     writing at least 20 days in advance of the date of any such proposed change
     in registration.

     Section 6. RENEWAL TERM. Lessor agrees to enter into good faith discussions
with Lessee regarding the potential renewal of this Lease at the end of the
Basic Term for such period or periods (any such period, a "RENEWAL Term"), and
at such amount or amounts of basic rent, as may be agreed upon by Lessor and
Lessee at the time of such discussions; PROVIDED that nothing in this Section 7
of Exhibit A-2 shall be construed as an obligation on the part of Lessor to
agree to any such Renewal Term. Lessee agrees that, notwithstanding anything to
the contrary contained herein, Lessor shall be entitled to refuse to enter into
any Renewal Term in the event that (i) the Residual Value Guarantee, or (ii) a
substitute residual value guaranty that is substantially identical to the
Residual Value Guarantee (as determined in the reasonable discretion of the
Beneficiary) and is otherwise in form and substance satisfactory to the
Beneficiary (with the obligor thereunder having a tangible net worth at least
equal to the net worth of the Manufacturer immediately prior to the first day of
such Renewal Term), shall not be available to Beneficiary during such Renewal
Term. Lessee acknowledges that, as of the date hereof, Manufacturer has
indicated that it does not intend to make the Residual Value Guarantee available
to Beneficiary during any such Renewal Term.

     Section 7. ADJUSTMENTS TO BASIC RENT AND STIPULATED LOSS VALUES. The
installments of Basic Rent in SCHEDULE BR1 attached hereto are based on the
Assumed Aircraft Price being equal to [*] and on the Assumed Transaction
Costs being equal to [*]. The amount of Basic Rent payable on each Rent
Payment Date other than the first four (4) Rent Payment Date shall be
increased or decreased by [*] for every increase or decrease of [*] of the
Aircraft Price above or below the Assumed Aircraft Price. The amount of Basic
Rent payable on each Rent Payment Date other than the first four (4) Rent
Payment Date shall be decreased by [*] (or a proportionate part thereof) for
every

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decrease of [*] (or proportionate part thereof) of the Transaction Costs
below the Assumed Transaction Costs.

     Section 8. [Reserved]

     Section 9. SELF-INSURANCE. Lessor and Lessee agree to engage in good faith
discussions on the right of Lessee to self-insure in such amounts as may be
agreed to by Lessor and Lessee at the time of such discussions. Nothing in this
Section 5 shall be construed as an obligation on the part of Lessor or
Beneficiary to agree to any such self-insurance provisions.

     Section 10. VOLUNTARY TERMINATION.

     (A) TERMINATION BY SALE OF AIRCRAFT. So long as no Specified Default shall
have occurred and be continuing, the Lessee shall have the right at its option
at any time after March 31, 2009 on at least 180 days', but not more than 365
days, prior written notice (which notice shall be irrevocable, except as
provided below) to the Lessor, specifying a proposed date of termination which
shall be a Termination Date, to terminate this Lease if the chief financial
officer of the Lessee shall have certified in writing to the Lessor that the
Aircraft shall have become obsolete or shall be surplus to the Lessee's
equipment requirements. Subject to the Lessor's preemptive election under
Section 10(c), during the period following the giving of such notice of
termination until the Termination Date, the Lessee, as agent for the Lessor,
shall endeavor to sell the Aircraft "as is", without any warranty by the Lessor
or the Lessee except as to the Lessor's title, on behalf of the Lessor. If
Lessee receives any bid, it shall at least 10 Business Days prior to the
proposed day of sale, certify to Lessor in writing the amount and terms of such
bid, such proposed date of sale and the name and address of the potential buyer
(which shall not be Lessee or any Affiliate or any Person with whom Lessee or
any Affiliate has any arrangement or understanding for the future purchase,
lease, operation or use of the Aircraft). Lessor may also solicit bids directly
or through agents other than Lessee. So long as the Lessor has not exercised its
preemptive election under Section 10(c), the Lessee may, by notice to the
Lessor, withdraw its notice of termination at any time on or before the date 10
days prior to the proposed Termination Date (unless such withdrawal is due to
the cancellation of the proposed purchase of the Aircraft by the potential buyer
in which event such notice may be given at any time on or prior to the proposed
Termination Date), and thereupon this Lease shall continue in full force and
effect. Withdrawal of notice of termination shall not exhaust the Lessee's right
to give a further notice of termination as provided herein; provided that Lessee
shall not be entitled to give more than two such notices (excluding one notice
of termination which has been withdrawn due to the cancellation of the proposed
purchase of the Aircraft by the potential buyer). Unless the Lessee shall
withdraw its notice of termination as stated above or the Lessor shall have made
a preemptive election to take possession of the Aircraft in accordance with
Section 10(c), on the Termination Date, or such other date of sale as shall be
consented to in writing by the Lessor and the Lessee, which date shall
thereafter be deemed the Termination Date, the Lessee shall, upon payment in
full of the amounts described in Section 10(b), deliver the Airframe and Engines
or engines installed thereon to the party which shall have prior to such date
submitted the highest bona fide cash bid to close such sale and purchase of the
same, in the same manner as if delivery were being made to the Lessor pursuant
to Article XVIII of the Lease, and shall duly transfer to such party title to
any engines which are not Engines delivered with the Airframe in accordance with
the terms of Article XVIII of the Lease. The Lessor shall, in "as-is, where-is"
condition, without recourse or warranty (except a warranty as to the absence of
Lessor's Liens), simultaneously therewith sell and convey title to the Airframe
and the Engines or engines conveyed to the Lessor as provided in Article XVIII
of the Lease for cash to such party. Upon the sale of the Airframe and the
Engines or engines conveyed to the Lessor as provided in Article XVIII of the
Lease pursuant to this Section 10 and receipt by the Lessor of all amounts
referred to in Section 10(b), the Lessor will transfer to the Lessee, in "as-is,
where-is" condition, without recourse or warranty (except a warranty as to the
absence of Lessor's Liens), all right, title and interest of the Lessor in and
to any Engines constituting part

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of the Aircraft but which were not delivered to the purchaser with the Airframe.
The Lessee shall pay all out of pocket expenses of the Lessor and Beneficiary in
connection with any termination or proposed termination of this Lease except
that Lessee shall not be responsible for such expenses of the Lessor or the
Beneficiary in the event the Lessor exercises its preemptive election under
Section 10(c) and thereafter fails to perform its obligations under such
Section.

     (b) PAYMENTS DUE UPON SALE OF AIRCRAFT. The total selling price realized at
any sale of the Airframe and Engines or engines installed thereon in accordance
with this Section 10 shall be retained by the Lessor and, in addition, on the
Termination Date, the Lessee shall pay to the Lessor or, in the case of
Supplemental Rent, to the Persons entitled thereto, in immediately available
funds, an amount equal to the sum of (A) the excess, if any, of (x) the
Stipulated Loss Value as of the Termination Date, over (y) the net proceeds of
the sale of the Aircraft, plus (B) the amount of unpaid Basic Rent, if any,
payable as of such Termination Date, PLUS (C) the amount of deferred Basic Rent,
if any, as of such Termination Date as set forth in the column headed "Deferred
Basic Rent" in Schedule SLV, MINUS (D) the amount of prepaid Basic Rent, if any,
as of such Termination Date as set forth in the column headed "Prepaid Basic
Rent" in Schedule SLV, PLUS (E) all unpaid Supplemental Rent due on or before
the Termination Date, PLUS (F) the reasonable fees and expenses of the
Beneficiary and Lessor in connection therewith, PLUS (G) any sales, transfer or
similar Taxes incurred on such sale.

     (c) PREEMPTIVE ELECTION BY LESSOR. Notwithstanding the foregoing provisions
of this Section 10, the Lessor may, not later than 90 days prior to the proposed
Termination Date, notify the Lessee of its preemptive election to take
possession of the Aircraft and following delivery of such notice, the Lessee
shall have no obligation to pay Stipulated Loss Value or any amount with respect
to Stipulated Loss Value under this Section 10. On the Termination Date, if the
Lessor shall have exercised its preemptive election to retain the Aircraft in
accordance with the terms of this Section 10(c), the Lessee shall deliver the
Airframe and Engines or engines installed thereon to the Lessor in accordance
with Article XVIII of the Lease and shall pay all unpaid Basic Rent, if any,
payable before the Termination Date, together with all Basic Rent (if payable in
arrears) due on such Termination Date, all unpaid Supplemental Rent due on or
before or after the Termination Date, and the Lessor shall transfer to the
Lessee title to any Engines constituting part of the Airframes but which were
not then installed on the Aircraft as provided in Section 18.03.

     (d) TERMINATION OF LEASE. Upon delivery by the Lessee of the Airframe and
Engines or engines installed thereon and payment by the Lessee of all amounts
payable by the Lessee under either Section 10(b) or 10(c), as the case may be,
the obligations of the Lessee to pay Rent (except for Supplemental Rent
obligations surviving pursuant to Articles XIV and XV of the Lease or the Tax
Indemnity Agreement or which have otherwise accrued but not paid as of the
Termination Date) shall cease and the Term shall end.

     (e) EFFECT OF NO SALE OR PREEMPTIVE DELIVERY TO LESSOR. If on the
Termination Date no sale of the Aircraft shall have occurred and the Lessee has
not delivered the Aircraft to the Lessor pursuant to Section 10(c), the Lessee's
notice given pursuant to Section 10(a) shall be deemed to be withdrawn as of
such date and this Lease shall continue in full force and effect.

     (f) NO DUTY ON PART OF LESSOR. Lessor shall be under no duty to solicit
bids, to inquire into the efforts of Lessee to obtain bids or otherwise to take
any action in connection with any such sale other than to cooperate with such
efforts as Lessee may reasonably request and to make the transfers described in
Section 10(a).

<Page>

                                                                       EXHIBIT B

                          PRINCIPAL AIRCRAFT DOCUMENTS

         A.       MANUALS.

         OPERATIONAL

         1.  Airplane Flight Manual (AFM)
         2.  Weight & Balance Manual (WB)
         3.  Operations Manual (OM)
         4.  Quick Reference Handbook (QRH)
         5.  Dispatch Deviation Procedures Manual (DDPM)
         6.  Supplementary Performance Manual (SPM)
         7.  Operational Bulletins Set (OB)
         8.  Master Minimum Equipment List (MMEL)

         MAINTENANCE - BASIC SET

         9.   Aircraft Maintenance Manual (AMM)
         10.  Illustrated Parts Catalog (IPC)
         11.  Fault Isolation Manual (FIM)
         12.  Non Destructive Manual (NDI)
         13.  Scheduled Maintenance Requirements Document (SMRD)
         14.  Wiring Manual (WM)
         15.  Structural Repair Manual (SRM)
         16.  Service & Information Bulletins Set (SB/IB)
         17.  Service Newsletters (SNL)

         MAINTENANCE SUPPLEMENTARY SET

         18.  System Schematic Manual (SSM)
         19.  Instructions for Ground Fire Extinguishing and Rescue (IGFER)
         20.  Airport Planning (AP)
         21.  Illustrated tool & Equipment Manual (ITEM)
         22.  Task Card Manual (TCM)
         23.  Powerplant Build-up Manual (PPBM)
         24.  Auxiliary Power Unit Build up Manual (APUBM)
         25.  Corrosion Control Manual (CCM)
         26.  Vendor Service Publications Set

         The documents set forth in Clauses (B), (C), (D) and (E) of this
Exhibit B shall only be required to be maintained by the Lessee (or any
Permitted Sublessee) to the extent required by the FAA or the Maintenance
Program.

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         B.       AIRWORTHINESS DIRECTIVES DOCUMENTATION

         1.       A single, complete and current AD status list of each
airframe, appliances, Engine and APU AD and mandatory FAA regulation applicable
to each Aircraft, appliances, Engine and APU including:

                  a.       AD number and revision number.
                  b.       AD title.
                  c.       Aircraft serial number, Engine serial number, APU
                           serial number, appliance serial number.
                  d.       Engineering documentation reference.
                  e.       Manufacturer's Service Bulletin references and
                           cross-references where appropriate.
                  f.       Specify terminated or repetitive status.
                  g.       Date of initial accomplishment,
                  h.       Date of last maintenance accomplishment, if
                           repetitive.
                  i.       Name and serial number of the internal maintenance
                           form used to document accomplishment, if applicable.
                  j.       State means by which compliance was accomplished
                           (e.g. modified, repaired, inspected).
                  The list shall be typed, certified and signed by authorized
                  quality assurance  representative of previous operator.

         2.       Legible copies of the completion documents that accomplish
each A.D. If the A.D. is a repetitive inspection, documentation of the last
accomplishment, signature of a certified mechanic and / or inspector, and the
mechanic's / inspector's certificate number or repair station number of the
mechanic accomplishing the work. The document must reference the A.D. number and
company authorization, which covered the AD.

         3.       Exemptions or deviations granted by the FAA (or equivalent) to
Lessor on AD compliance, including copy of exemption request.

         4.       Items 2 and 3 will be provided in individual document packages
for each AD Each package will contain all documents relative to that AD /
Aircraft combination.

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         C.       ENGINEERING DOCUMENTATION

         1.       A single, current list of Airframe, appliance, Engine and APU
Service Bulletins, Engineering Orders, major repairs and Supplemental Type
Certificates ("STC") accomplished on Aircraft, Engine and APU, including method
and date of accomplishment, reference to engineering documentation, including
related drawing and original signed documents where applicable shall be provided
with information similar to that described in item B. 1.

         2.       A current copy of all Engineering documentation related to
Aircraft alterations, repairs and configuration changes. This shall include
documentation for work done by the manufacturer or any vendor. A current copy of
all repairs that require follow-up action.

         3.       Data package covering all non-manufacturer / non-FAA-approved
repairs or alterations, including the submittal to the FAA for an STC or Form
337, If applicable.

         4.       All open engineering deviations or Material Review Board
("MRB") records applicable to the Airframe, Engines and APU, components and
piece parts.

<Page>

         5.       Mapping of all exterior repairs and damage to the exterior of
the Aircraft and Engines. Supporting data for each repair and damage shall be
provided with information similar to items C-1 and C-2.

         D.       ADDITIONAL DOCUMENTATION

         2.       Master Minimum Equipment List.
         4.       Monthly Reliability reports for one (1) year.
         5.       Accurate summary of the Maintenance Program.
         6.       Location map of emergency equipment with description.
         7.       Weight and balance current status.
         8.       Shop repair maintenance program specification for Engines and
                  APU's.
         9.       JAA Form 1 or FAA Form 8130 certification for all components,
                  as reasonably requested by Lessee.
         10.      Aircraft major equipment listing.
         11.      Passenger/cargo equipment list (seats, galleys. lavs,
                  entertainment, etc.).
         12.      Avionics equipment list (includes P/N, model number and
                  manufacturer and quantity).
         13.      Electronic logbook data, CD ROM or computer printouts, to the
                  extent accepted by the FAA, but otherwise, historical flight
                  log showing cumulative times for major inspection
                  accomplishments, engine changes, APU, etc.
         14.      Complete paperwork for last "C" check.
         15.      Compass card and F.D.R. calibration documentation.
         16.      Copies of Aircraft registration and certificate of
                  airworthiness.
         17.      List of previous owner / operators including dates, locations
                  and aircraft times.

         E.       INDIVIDUAL AIRCRAFT AND ENGINE RECORDS.

         1.       Incident report, if any.
         2.       Major structural damage reports, if any.
         3.       FAA Form 337 or equivalent JAA form or manufacturer's approval
                  for major repair and alteration, if any,
         4.       Engines last shop visit report.
         5.       Documentation and records concerning the last Aircraft
                  overhaul.
         6.       Copies of logbook entries for the last twelve (12) months of
                  operation.
         7.       Declaration of Aircraft accident and major repairs, if any,
         8.       Provide historical data for all life limited parts and hard
                  time components for the Airframe, Engines, and APU, if
                  reasonably requested by Lessee.
         9.       Listing of Aircraft and Engine components status by P/N - S/N
                  description position TBO-TSI-TSO-TSN (with respect to TSO or
                  TSN, if available), total time, next Due Time, including,
                  interpretation keys, if reasonably requested by Lessee.
         10.      APU- Same documentation as Items E. 8 and E. 9 above.
         11.      Certified letter with serial no.- total time/ total cycles-
                  times to the next inspection and the time to the next
                  inspection or removal of Engines and hard time component
                  status list.
         12.      All Engine and APU records, up to and including the last major
                  overhaul or heavy maintenance and shop visits (all modules)
                  including life limited part history to birth.
         13.      Electrical load analysis documents and data.
         14.      The last power plant test cell run documents for Engines and
                  APU
         15.      Borescope inspection documents for current installation for
                  Engines.
         17.      Corrosion prevention control program.
         18.      Aircraft readiness log (manufacturer's)
         19.      Approvals (DAR/DER 8110-3s) for all modifications alterations
                  not covered by Manufacturer's Service Bulletins or JAA
                  equivalent (including appliances),

<Page>

         20.      Fire blocking status for all seats, interior
                  fabrics/materials, including burn test documentation and
                  certification where applicable.
         21.      Aircraft detail specification.
         22.      Daily time and cycle log for Aircraft and Engines.

<Page>

                                                                     Exhibit D-1

                                RETURN CONDITIONS

         This Exhibit D-1 shall be applicable unless Exhibit D-2 applies in
accordance with its terms, in which case Exhibit D-2 shall supercede this
Exhibit D-1 and shall be applicable.

Section 1.        General Conditions.

         At the time of return, the Aircraft shall (i) have been continuously
         and currently maintained in accordance with the Maintenance Program,
         (ii) comply with the Maintenance Program as authorized by the FAA, in
         each case as if the Aircraft were to be kept in further commercial
         passenger service by Lessee, and (iii) meet the following requirements:

                  (a)      Operating Condition - The Aircraft shall be in good
                           operating condition, ordinary wear and tear excepted,
                           with all of the Aircraft equipment, components, and
                           systems functioning in accordance with their intended
                           use irrespective of variations or deviations
                           authorized by the Minimum Equipment List or
                           Configuration Deviation List. All replacement
                           equipment, parts, components or items installed on
                           the Aircraft shall be manufactured by the original
                           manufacturer approved by the Manufacturer or a
                           manufacturer holding requisite authority of the FAA,
                           and in case of used, rotable parts, have an
                           FAA-approved serviceable tag.

                  (b)      Configuration - The Aircraft shall be in the same
                           passenger configuration with all equipment installed
                           therein as the Aircraft was when delivered under the
                           Manufacturer Purchase Agreement, ordinary wear and
                           tear excepted, including replacements and substitute
                           parts and equipment. The Aircraft shall not suffer
                           any modification or alteration (hereinafter
                           "Modifications") after the Delivery Date provided
                           however that Lessee may make Modifications to the
                           Aircraft as long as they are included as
                           factory-installed features in EMB-145 aircraft
                           delivered to the Lessee subsequent to the delivery of
                           the Aircraft. The term Modifications shall be deemed
                           to include, but not be limited to (i) changes to the
                           Aircraft structure, performance, weight and balance,
                           (ii) changes which materially adversely affect the
                           Aircraft's flight qualities, operational
                           characteristics, operational safety, ease or cost of
                           maintenance, spare parts interchangeability or
                           replaceability, and (iii) substitution of different
                           types of equipment or accessories which are not
                           equivalent in cost value and/or operation capability
                           to the equipment or accessories being replaced, and
                           shall exclude (x) changes pursuant to service
                           bulletins issued by the Manufacturer or the OEMs, and
                           (y) mandatory changes required to be accomplished by
                           Lessee hereunder. All permitted Modifications made to
                           the Aircraft shall be in accordance with FAA-approved
                           data, and Lessee shall provide complete data and
                           documentation to substantiate their certification,
                           approval, and methods of compliance (including,
                           without limitation, a copy of the Aircraft
                           Illustrated Parts Catalog and a copy of the Aircraft
                           Interior Configuration document). A complete listing
                           of all modifications and repairs performed shall be
                           supplied together with the Aircraft. Modifications,
                           other than permitted ones, shall be removed and the
                           appropriate repairs to the Aircraft made prior to the
                           day of return of the Aircraft.

                                                                          Page 1
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                  (c)      Certification - The Aircraft shall have, a valid and
                           effective Certificate of Airworthiness of the type
                           "Transport, Category (Passengers)" issued by the FAA,
                           and shall be in full compliance with, and capable of
                           registration under, the provisions of Part 121 of the
                           U.S. Federal Aviation Regulations (or any successor
                           legislation) and other US regulations applicable to
                           the Aircraft's operation and continued airworthiness,
                           without any restrictions, corrections, repairs,
                           limitations, modifications or alterations or
                           overhauls having to be performed to meet such
                           standards.

                  (d)      General Appearance - The Aircraft shall be clean by
                           commercial passenger airline standards, cosmetically
                           acceptable, interior complete, and prepared to be
                           placed into scheduled revenue airline operations.
                           Interior items which may be broken shall be repaired
                           or replaced. All decals, signs and placards shall be
                           clean, secure and legible in the English language.
                           The Aircraft shall meet the following minimum
                           requirements:

                           (i)      Fuselage, Wings and Empennage - The fuselage
                                    shall be within Maintenance Program approved
                                    limits regarding dents and abrasions and
                                    loose or pulled rivets; all leading edges
                                    shall be within Maintenance Program approved
                                    limits regarding damage occurring since
                                    delivery; the airframe, Engines and wings
                                    shall be free of fuel, oil and hydraulic
                                    leaks so as to allow unrestricted operation;
                                    all leading edges and fuselage areas which
                                    are aerodynamically critical shall be free
                                    of any scab patches other than those
                                    required by the Manufacturer and shall be
                                    repaired with repairs which are permanent in
                                    nature in accordance with the SRM, or are
                                    made in accordance with the Manufacturer's
                                    approval or FAA approved data.

                           (ii)     Interior - Ceilings, sidewalls, bulkhead
                                    panels shall be clean, free of cracks and
                                    within Maintenance Program approved limits
                                    regarding dents; all carpets and seat covers
                                    shall be in good condition and clean and
                                    meet FAR fire resistance regulations; all
                                    seats shall be serviceable and in good
                                    condition. All safety equipment shall be
                                    installed at the correct stations, a loose
                                    equipment check list and location drawings
                                    shall accompany the Aircraft and a loose
                                    equipment inventory shall be drawn up on the
                                    Delivery Date and checked on the day of
                                    return of the Aircraft.

                           (iii)    Cockpit - All fairing panels shall be free
                                    of cracks and shall be clean; all floor
                                    coverings shall be clean and effectively
                                    sealed and secured, all seat covers and
                                    cushions shall be in good condition and
                                    clean and shall, as applicable, conform to
                                    FAA fire resistance regulations. All seats
                                    shall be fully serviceable and in good
                                    condition. All instruments and light panels
                                    shall be clean, secure and legible, function
                                    in accordance with their intended purpose
                                    and have all lighting operating properly.

                           (iv)     Landing, Gear and Wheel Wells - The landing
                                    gear and all wheel wells shall be clean,
                                    free of leaks, and repaired as necessary.
                                    The main and nose landing gear components
                                    and their associated actuators and parts
                                    shall be in a good operating condition.

                                                                          Page 2
<Page>

                           (v)      Cargo Compartment, Galleys and Toilets - All
                                    cargo compartment panels shall be installed
                                    and be in good condition so as to comply
                                    with extended range operations requirements.
                                    The cargo compartments, galleys and toilet
                                    of the Aircraft shall be in a clean and
                                    presentable condition and all cargo securing
                                    system components shall be serviceable; all
                                    galley inserts (to the extent delivered with
                                    the Aircraft) shall be redelivered with the
                                    Aircraft.

                           (vi)     Windows - Any delamination, and crazing of
                                    the windshields and cabin windows of the
                                    Aircraft shall be within approved limits of
                                    the Maintenance Program and shall be
                                    properly sealed.

                           (vii)    Doors - All the doors of the Aircraft shall
                                    be free moving, correctly rigged and
                                    properly sealed and all door assist
                                    mechanisms shall be charged in accordance
                                    with the AMM.

                  (e)      Airworthiness Directives and Service Bulletins - All
                           FAA Airworthiness Directives and amendments or
                           changes to Aviation Regulations issued by the FAA and
                           applicable to the Aircraft which require compliance
                           within a period of six (6) months following the day
                           of return of the Aircraft (or the equivalent hours or
                           cycles, based on the Lessee's EMB-145 last four (4)
                           years of operation average monthly utilization) shall
                           have been accomplished on a Terminating Action basis
                           and in compliance with the issuing agency's and the
                           manufacturer's associated service bulletins,
                           regardless of any operator-specific waiver, deferral,
                           or deviation from such directive or regulation. The
                           Aircraft shall have installed on it all Manufacturer
                           and OEM service bulletin kits requested by Lessee and
                           actually received by Lessee in respect of the
                           Aircraft, and if not installed, Lessee shall deliver
                           them together with the Aircraft at no charge.

                  (f)      Deferred Maintenance - The Aircraft shall be free of
                           all deferred or carried over maintenance items,
                           including without limitation, any pilot log book
                           reports, maintenance reports, and the Aircraft's
                           Central Maintenance Computer reports. Any such
                           deferred or carried over maintenance shall be
                           promptly accomplished in a terminating manner prior
                           to the return of the Aircraft at the end of the term
                           of the Lease.

                  (g)      Corrosion - The Maintenance Program shall include a
                           corrosion control program based on the corrosion
                           prevention, treatment and correction criteria
                           recommended by the Manufacturer in the CPCP. The
                           Aircraft shall be free from corrosion or shall have
                           been adequately treated in compliance with the
                           Maintenance Program. Complete details of the
                           corrosion control program, as well as a summary of
                           specific corrosion correction, of the Aircraft in
                           accordance with the Maintenance Program shall be
                           available for delivery together with the Aircraft.
                           This summary shall include Lessee's identifying the
                           Manufacturer's task identifier and cross referencing,
                           Lessee's identifier indicating status of
                           accomplishment and findings and incorporation status
                           relative to all recommended corrective and
                           preventative actions. The hydraulic system and fuel
                           tanks shall be free from contamination as
                           demonstrated by a laboratory

                                                                          Page 3
<Page>

                           report to be performed after the Aircraft is removed
                           from service and delivered together with the
                           Aircraft.

                  (h)      Leased Components - The Aircraft shall be free and
                           clear of all Liens other than any Lessor's Liens and
                           at return shall not have installed thereon any
                           equipment, components and/or parts which are leased
                           or loaned or otherwise owned by a third party.

                  (i)      Records - The Aircraft shall be accompanied by all
                           Aircraft Documents. The Aircraft Documents shall be
                           provided in English, and be in good condition,
                           readable and capable of being reproduced.

                           (i)      All Parts, components and assemblies
                                    identified with safe-life, hard time or
                                    condition monitored limits (to the extent
                                    that such condition monitored items are to
                                    be tracked in accordance with the approved
                                    Maintenance Program) shall be provided with
                                    part number, serial number, their service
                                    histories, accumulated cycles and flight
                                    hours, safe-life, hard time or condition
                                    monitored limits and remaining service lives
                                    on a separate listing and where practicable,
                                    be physically verified as installed and have
                                    hard copy documentation (i.e., appropriate
                                    overhaul or serviceable vendor tags and work
                                    orders) to verify their service histories.

                           (ii)     All components and assemblies, which are,
                                    identified on the maintenance records by
                                    part numbers and/or serial numbers other
                                    than the Manufacturer's or other
                                    manufacturer's shall be provided with
                                    two-way cross-reference listing necessary to
                                    establish complete traceability.

                           (iii)    All documentation, flight records, and
                                    maintenance records as specified herein and
                                    as specified by Federal Aviation Regulations
                                    Sections 121.380, and, as applicable,
                                    Section 91.417 and 91.419 (or FAR's as
                                    amended), and which normally accompany the
                                    transfer of an aircraft or engine shall be
                                    delivered together with the Aircraft. In the
                                    event of missing or incomplete records, the
                                    tasks necessary to produce such complete
                                    records shall be accomplished in accordance
                                    with the Maintenance Program prior to return
                                    of the Aircraft.

                           (iv)     All documentation and records shall be in
                                    English and shall be made available for
                                    inspection in the location they are normally
                                    kept which location shall permit direct
                                    access to the Aircraft, at least 14 Business
                                    Days before the day of return of the
                                    Aircraft.

                           (v)      Any and all documentation, data, drawings,
                                    records and manuals as required to be
                                    maintained by the FAA and SMRD, shall be
                                    provided, regardless of whether such
                                    information is considered proprietary.

                           (vi)     Hard Landing inspection reports, Lightning
                                    Strike inspection reports or High Intensity
                                    Radiated Field (HIRF) check reports as may
                                    be required should Aircraft records show
                                    evidence of any occurrence indicating such
                                    inspections or checks to be necessary.

                                                                          Page 4
<Page>

                           (vii)    Corrosion Prevention & Control Program
                                    (CPCP) inspection findings and correction
                                    reports, as required by the Maintenance
                                    Program.

                  The head of Lessee's quality control department shall sign a
                  statement certifying that the data and information contained
                  in the documentation and records are true and correct.

                  (j)      Exterior Markings - At time of return of the
                           Aircraft, Lessee shall, at its cost remove from the
                           exterior and interior of the Aircraft Lessee's
                           operator specific exterior and interior markings. The
                           area where such markings were removed or painted over
                           shall be refurbished by Lessee as necessary to blend
                           in with the surrounding surface in a good and
                           workmanlike manner.

                  (k)      Overhaul and Repair - All components, rotables, and
                           assemblies (including the Engines, APU, and landing
                           gears) shall be documented with work orders, vendor
                           serviceable tags, 8130 tags, form 337, etc. to have
                           been repaired or overhauled by FAA-certified repair
                           stations in such manner so that such components,
                           rotables, assemblies, Engines, APU, and landing gears
                           are approved by the FAA for use on United
                           States-registered and certified aircraft. All
                           overhaul and repair procedures shall have met all FAA
                           requirements necessary to transfer to a new operator
                           under Part 121 of the U.S. Federal Aviation
                           Regulations.

                  (l)      Structural Repairs - All repairs that were performed
                           since the Delivery Date and that then exist on the
                           Aircraft shall conform to the SRM and the AMM and
                           shall have FAA approval if required, including
                           without limitation repairs related to impact damage
                           to the Aircraft caused by ground handling equipment
                           or foreign objects. All repairs not covered by the
                           SRM or the AMM shall have been made in accordance
                           with the Manufacturer's approval if required, which
                           approval shall not be unreasonably be withheld and
                           shall be provided with complete data and
                           documentation to verify and substantiate their
                           certification and methods of compliance. A complete
                           listing of all repairs performed shall be supplied
                           together with the Aircraft.

Section 2.        Condition of Airframe.

         On the day of return, the Aircraft shall be as follows:

                  (a)      C Check Inspection - The Airframe shall have
                           completed, within 100 flight hours of return, the
                           next sequential C check or any multiple thereof. If
                           the Aircraft has logged more than 100 flight hours
                           since the last C check or any multiple thereof, then
                           Lessee shall perform the next scheduled C check or
                           any multiple thereof, as applicable. All observed
                           defects observed during such C check shall be
                           rectified at Lessee's expense, in accordance with the
                           Maintenance Program;

                  (b)      Structural and other scheduled Inspections - The
                           Airframe shall have at least twelve (12) months, or
                           two thousand (2,000) flight hours or cycles,
                           whichever is applicable or most limiting, remaining
                           before any scheduled structural tasks or maintenance
                           inspections which are not included in (a) above. In
                           the event that a structural task or maintenance
                           inspection interval is less than the above, Lessee
                           shall, at its expense, perform all such tasks
                           immediately prior to return of the Aircraft;

                                                                          Page 5
<Page>

                  (c)      Landing Gear Life - The main Landing Gear and the
                           nose Landing Gear shall have at least fifty percent
                           (50%) of the cycles remaining prior to removal for
                           overhaul in accordance with the Maintenance Program,
                           and the landing gear total cycles since new ("TCSN")
                           shall be no more than ten percent (10%) greater than
                           the airframe TCSN;

                  (d)      Brakes - The brakes shall have no less than the C
                           check brake wear limits with the brakes set at normal
                           parking break pressure. The tires shall have a
                           remaining useful life of at least fifty percent
                           (50%).

Section 3.        Condition of Controlled Components.

         Aircraft and Engine hour or cycle controlled components or parts, at
         time of return to Lessor, shall have remaining, as a minimum, one half
         life and/or fifty percent (50%) of the Lessee's approved hour or cycle
         limit, whichever is applicable or most limiting, before any scheduled
         removals for overhaul, test, disassembly or replacement. All components
         or parts controlled on a calendar basis shall have at least twelve (12)
         months or fifty percent (50%) of its total approved life in hours or
         cycles, if greater, remaining before scheduled removal for testing,
         overhaul or replacement.

         However, if a component or part has a life, overhaul or check interval
         limit that is less than the above, Lessee shall, at its expense,
         perform all such tasks immediately prior to return. All such hour/cycle
         or calendar controlled components or parts are defined as those
         components or parts controlled under the Maintenance Program.

Section 4.        Condition of Installed Engines and APU.

         At time of return, each Engine shall be capable of certificated, full
         rated performance and its life limited parts ("LLP") will have at least
         fifty percent (50%) of cycles between installation and replacement
         under the Maintenance Program.

                  (a)      Time remaining - Each Engine shall have completed no
                           more than 2,500 flight hours since new or since its
                           last full performance restoration shop visit at which
                           it was subject to a full engine management program
                           rework, based on the reliability goals set out in the
                           Rolls-Royce Alison workscope guide, which currently
                           state that the workscope is designed to give 30
                           degrees centigrade of exhaust gas temperature margin
                           and 5,000 flight hours of on-wing life. To the extent
                           that the shop workscope guide is amended in the
                           future to include different reliability goals then
                           the engine shall have at least fifty percent (50%) of
                           the on-wing hours remaining in accordance with such
                           amended shop workscope guide.

                  (b)      Borescope Inspection - On each installed Engine an
                           external visual inspection, accessory inventory check
                           and video-taped borescope inspection in accordance
                           with the requirements of the Maintenance Program
                           shall be performed by Lessee or a designated
                           representative as mutually agreed between Lessor and
                           Lessee during the ground inspection per Section 7(a)
                           of this Exhibit accompanied by a written report on
                           the findings of such inspection herein and
                           satisfactory evidence shall be provided to Lessor
                           reflecting the correction of any discrepancies found
                           during such inspection, which are in excess of the
                           Engine Manufacturer's Maintenance Manual
                           Airworthiness Limitations.

                                                                          Page 6
<Page>

                  (c)      Adverse Trend Data - Complete engine records,
                           including but not limited to (i) Group A (Lifed)
                           components (as listed in Engine Manufacturer's Time
                           Limits Manual) as approved by the FAA and (ii) in
                           flight performance data and (iii) shop visit reports
                           from all shop visits, shall be made available to
                           Lessor for review and evaluation. If the Aircraft
                           and/or engine historical and maintenance records
                           and/or trend monitoring indicate a rate of
                           acceleration in performance deterioration or oil
                           consumption on any installed engine beyond the limits
                           of the Maintenance Program, the causes of such
                           conditions shall have been corrected prior to the
                           return date.

                  (d)      Oil spectrum analysis - an oil spectrum analysis
                           shall be made on the installed Engines after the
                           Aircraft is removed from service and a written report
                           shall be made available together with the Aircraft.
                           Any discrepancies found in the engine's lubrication
                           system -which are in excess of the Engine
                           Manufacturer's Maintenance Manual Airworthiness
                           limitations shall have been corrected prior to the
                           return date.

                  (e)      APU Life - The installed APU shall have remaining at
                           least fifty percent (50%) of the expected mean time
                           before removal as evidenced by the Lessee's
                           demonstrated on-wing last two years average for APU
                           hours, before scheduled removal for overhaul, heavy
                           maintenance, or replacement of hour limited or LCF
                           parts at the time of return. The APU shall have a
                           video taped borescope inspection and magnetic plug
                           inspection during the ground inspection per Section
                           7(a) of this Exhibit D-1.

Section 5.        Provision for "Power-By-The Hour Agreements".

         If the Engines, APU, or any other hour or cycle controlled components
         on the day of return are maintained under valid PBH Agreements (as
         defined below) (and either have been maintained throughout the Term
         under PBH Agreements, or Lessee has made payments to the maintenance
         provider to cover the period in which such components where not under
         such PBH Agreements), under which the Lessee is current on all payments
         and otherwise in good standing, then, in lieu of the relevant
         requirements in Sections 2(c), 2(d), 3, 4(a) or 4(e) of this Exhibit
         D-1, the Lessee shall return each such component in such condition as
         shall make it eligible for continued maintenance under PBH Agreements,
         without additional costs, start-up charges, or overhaul requirements.
         For the purposes hereof, a "PBH Agreement" shall mean a
         "power-by-the-hour" maintenance program, provided by the Engines, APU
         or component manufacturer or its successor or designee, providing full
         maintenance (other than routine day-to-day maintenance; provided, that
         foreign-object damage and abuse may be excluded or separately charged)
         for the Engines, APU or such components at no cost other than standard
         per-cycle rates (i.e., excluding charges based on the current
         maintenance status of such component), all benefits of which program,
         including but not limited to the payments made by Lessee under such PBH
         Agreements while operating the Aircraft, shall be assignable or
         otherwise transferable to any other carrier. Notwithstanding the
         foregoing, each such Engine, APU and other hour or cycle controlled
         component shall have not less twelve months of expected time before
         overhaul or major refurbishment, whichever is applicable, based upon
         Lessee's average experience during the immediately preceding 2 year
         period.

                                                                          Page 7
<Page>

Section 6.    Return Condition Adjustment.

                  (a)      Each item referred to in Sections 2(c), 2(d), 3, the
                           first two lines of Section 4 and in Section 4(a) and
                           4(e) (each such item, an "Adjustable Item" and each
                           such section, an "Adjustable Return Condition") may
                           be returned with less than the required limits,
                           subject, however, to the minimum requirements set
                           forth in item (e) below.

                  (b)      If the Lessee does not meet the conditions set forth
                           for an Adjustable Item in the relevant Adjustable
                           Return Condition then Lessee shall pay to the Lessor
                           (for deficient condition) an Equivalency Payment in
                           accordance with the following formula:

                                                [*]

                  The components of the formula above shall be as agreed between
                  Lessor and Lessee. If Lessor and the Lessee fail to reach
                  agreement on any components of the above formula, such amount
                  will be determined as the average price that would be charged
                  by a third party to restore the Aircraft to the conditions
                  required under the Lease and this Exhibit D-1, based on one
                  quotation obtained by Lessor and one quotation obtained by
                  Lessee, both from a reputable, FAA and Manufacturer-approved
                  EMB-145 repair station in the United States. If the prices of
                  such quotations differ by more than [*], Lessor and Lessee
                  shall obtain a third quotation from another reputable, FAA and
                  Manufacturer-approved EMB-145 repair station in the United
                  States, the quotation which is farthest from the average of
                  all three quotations shall be disregarded and the average of
                  the two remaining quotations shall be binding upon Lessor and
                  Lessee as the components of the formula.

                  (c)      The Equivalency Payment for each return condition of
                           each Adjustable Item in the relevant Section referred
                           to in the first paragraph of this Section 6, whether
                           positive or negative, shall be aggregated in order to
                           determine the total Equivalency Payment due from
                           Lessee. (For clarification, items in more than the

----------
* Confidential

                                                                          Page 8
<Page>

                           required condition shall be netted against items in
                           less than the required condition when determining the
                           amount of the total payment due, provided however
                           that such netting is only applicable to the following
                           major components: Engines, APU and landing gear). If
                           the cumulative Equivalency Payment after such netting
                           is negative, it shall be deemed to be zero.

                  (d)      [intentionally omitted]

                  (e)      Notwithstanding the Equivalency Payment that may be
                           otherwise payable or available under this Section 6,
                           if:

                           (i)      Any installed Engine has less than the
                                    number of on-wing hours remaining before
                                    overhaul or major refurbishment, in
                                    accordance with the Maintenance Program, for
                                    such overhaul or major refurbishment to be
                                    scheduled not earlier than one year after
                                    the date of redelivery,

                           (ii)     Any Engine life limited part has a remaining
                                    useful life until the next scheduled
                                    replacement of not less than one year after
                                    the date of redelivery,

                           (iii)    The APU has remaining less than one year of
                                    the expected life before removal,

                           (iv)     The main landing gear or the nose landing
                                    gear has less than the number of cycles
                                    remaining prior to removal for overhaul, for
                                    such removal for overhaul to be scheduled
                                    not earlier than one year after the date of
                                    redelivery or, the cycles exceed one hundred
                                    and ten percent (110%) of the airframe
                                    cycles, or

                           (v)      The brakes have less than the C check brake
                                    wear limits with the brakes set at normal
                                    parking break pressure, or the tires have a
                                    remaining useful life of less than one year
                                    after the date of redelivery,

                  then, in any such case, Lessee shall, at its own cost and
                  expense, overhaul, refurbish and/or replace each non-complying
                  item so that it meets the applicable level specified in items
                  (i) through (v) above. For avoidance of doubt, this Section 6
                  shall be applicable whether or not the Engines, APU or any
                  other hour or cycle controlled component is maintained under a
                  PBH Agreement, as contemplated by Section 5.

Section 7.        Inspection Upon Return

         Lessor shall have the right to inspect the Aircraft upon return, and
         the following conditions shall apply:

                  (a)      Ground Inspection - The Aircraft, including the
                           Aircraft Documents, shall be made available to Lessor
                           for ground inspection by Lessor or its designee at
                           Lessee's facilities. Such inspection shall commence
                           no later than fourteen (14) Business Days prior to
                           the date of return of the Aircraft. Lessee shall
                           remove the Aircraft from scheduled service and open
                           the areas of the Aircraft as required to perform the
                           necessary checks as specified in Section 2 of this
                           Exhibit D-1. In

                                                                          Page 9
<Page>

                           addition, Lessee shall allow Lessor to accomplish its
                           inspection to determine that the Aircraft, including
                           the Aircraft Documents are in the condition set forth
                           in Sections 1, 2, 3 and 4 of this Exhibit D-1. During
                           such checks, Lessor's personnel shall have the right
                           to reasonably request that adjacent additional panels
                           or areas be opened in order to allow further
                           inspection by Lessor's personnel.

                  (b)      Operational Ground Check - Lessee shall conduct an
                           operations ground check on the Aircraft in accordance
                           with the Maintenance Program manual criteria for the
                           purpose of demonstrating to Lessor the satisfactory
                           operation of the systems, including a full fuel tank
                           leak check, pilot and static systems check and
                           hydraulic system internal leak check.

                  (c)      Operational Test Flight - The Aircraft shall be test
                           flown by Lessee, using qualified flight test
                           personnel, for the amount of time necessary to
                           satisfactorily demonstrate the airworthiness of the
                           Aircraft and the proper functioning of all systems
                           and components in accordance with the agreed check
                           flight procedures. During such test flight command,
                           care, custody and control of the Aircraft shall
                           remain at all times with Lessee. Up to five (5) of
                           Lessor's designated representatives (or more if
                           mutually agreed) may participate in such flight as
                           observers. Upon completion of such operational
                           flight-testing, the representatives of Lessee and
                           Lessor participating in such testing shall agree in
                           writing upon any discrepancies required to be
                           corrected by Lessee in order to comply with the
                           conditions required hereunder.

                  (d)      Discrepancies - If requested by Lessor in writing,
                           all discrepancies, which are noted during the
                           inspection and acceptance flight(s), shall be
                           corrected at Lessee's expense. If such discrepancies
                           are substantiated by the Maintenance Program and
                           Lessor determines that repairs, modifications or
                           other work items are required to cause the Aircraft
                           to comply with the requirements provided herein,
                           including, without limitation, any maintenance
                           required so that the Engines will meet all Engine
                           parameters and trends specified by the Maintenance
                           Program, Lessee shall cause such repairs and other
                           work items to be commenced and completed prior to
                           return.

Section 8.        Delegation.

         Lessee agrees that whenever a determination under this Exhibit D-1 is
to be made by, or a right is granted to, the Lessor, the Lessor may, at its
option, allow the Manufacturer to make such determination or exercise such
right.

Section 9.        Definitions.

         For the purpose of this Exhibit D-1, the following terms have the
following meanings:

          "APU" shall mean the auxiliary power unit bearing serial number
         __________, and any substitute APU which may from time to time be
         substituted therefor pursuant to the terms of the Lease.

                                                                         Page 10
<Page>

         "CALENDAR CONTROLLED COMPONENTS OR PARTS" means those components or
         parts, which are identified in the MRB Report which have maintenance
         tasks at specific calendar-time intervals.

         "CYCLE-CONTROLLED COMPONENTS OR PARTS" means those components or parts,
         which are identified in the MRB Report which have maintenance tasks at
         specific flight-cycle intervals.

         "HOUR-CONTROLLED COMPONENTS OR PARTS" means those components or parts,
         which are identified in the MRB Report which have maintenance tasks at
         specific flight-hour intervals.

         "LIFE CYCLE FATIGUE ("LCF") PARTS" means those rotating parts which
         have specific cycle limits as specified by the manufacturer to preclude
         cycle fatigue failures.

         "MAINTENANCE REVIEW BOARD REPORT ("MRB REPORT")" means the report
         published by the maintenance review board detailing the intervals and
         description of the maintenance tasks and, where applicable, the life
         limits required for continued airworthiness of the Aircraft. Where the
         intervals specified in the MRB Report differ from the limit specified
         by the component manufacturer, the MRB Report shall take precedence.

         "TERMINATING ACTION" means the alteration or modification of the
         Aircraft in accordance with mandatory service bulletins, orders,
         airworthiness directives, and instructions required to eliminate
         repetitive inspections or maintenance action.

                                                                         Page 11

<Page>

                                                                     Exhibit D-2

                                RETURN CONDITIONS

     This Exhibit D-2 shall be applicable only if Beneficiary notifies Lessee
not later than one hundred eighty (180) days prior to the end of the Basic Term
that Beneficiary is demanding payment of a deficiency amount under the Residual
Value Guarantee except that this Exhibit D-2 shall be assumed to apply for the
purposes stated in the definition of "RVG Appraisal Procedure".

Section 1. General Conditions.

     At the time of return, the Aircraft shall (i) have been continuously and
     currently maintained in accordance with the Maintenance Program, (ii)
     comply with the Maintenance Program as authorized by the FAA, in each case
     as if the Aircraft were to be kept in further commercial passenger service
     by Lessee, and (iii) meet the following requirements:

          (a)  Operating Condition - The Aircraft shall be in good operating
               condition, ordinary wear and tear excepted, with all of the
               Aircraft equipment, components, and systems functioning in
               accordance with their intended use irrespective of variations or
               deviations authorized by the Minimum Equipment List or
               Configuration Deviation List. All replacement equipment, parts,
               components or items installed on the Aircraft shall be
               manufactured by the original manufacturer approved by the
               Manufacturer or a manufacturer holding requisite authority of the
               FAA, and in case of used, rotable parts, have an FAA-approved
               serviceable tag.

          (b)  Configuration - The Aircraft shall be in the same passenger
               configuration with all equipment installed therein as the
               Aircraft was when delivered under the Manufacturer Purchase
               Agreement, ordinary wear and tear excepted, including
               replacements and substitute parts and equipment. The Aircraft
               shall not suffer any modification or alteration (hereinafter
               "Modifications") after the Delivery Date provided however that
               Lessee may make Modifications to the Aircraft as long as they are
               included as factory-installed features in EMB-145 aircraft
               delivered to the Lessee subsequent to the delivery of the
               Aircraft. The term Modifications shall be deemed to include, but
               not be limited to (i) changes to the Aircraft structure,
               performance, weight and balance, (ii) changes which materially
               adversely affect the Aircraft's flight qualities, operational
               characteristics, operational safety, ease or cost of maintenance,
               spare parts interchangeability or replaceability, and (iii)
               substitution of different types of equipment or accessories which
               are not equivalent in cost value and/or operation capability to
               the equipment or accessories being replaced, and shall exclude
               (x) changes pursuant to service bulletins issued by the
               Manufacturer or the OEMs, and (y) mandatory changes required to
               be accomplished by Lessee hereunder. All permitted Modifications
               made to the Aircraft shall be in accordance with FAA-approved
               data, and Lessee shall provide complete data and documentation to
               substantiate their certification, approval, and methods of
               compliance (including, without limitation, a copy of the Aircraft
               Illustrated Parts Catalog and a copy of the Aircraft Interior
               Configuration document). A complete listing of all modifications
               and repairs performed shall be supplied together with the
               Aircraft.
                                   Exhibit D-2                            Page 1
<Page>

               Modifications, other than permitted ones, shall be removed and
               the appropriate repairs to the Aircraft made prior to the day of
               return of the Aircraft.

          (c)  Certification - The Aircraft shall have, a valid and effective
               Certificate of Airworthiness of the type "Transport, Category
               (Passengers)" issued by the FAA, and shall be in full compliance
               with, and capable of registration under, the provisions of Part
               121 of the U.S. Federal Aviation Regulations (or any successor
               legislation) and other US regulations applicable to the
               Aircraft's operation and continued airworthiness, without any
               restrictions, corrections, repairs, limitations, modifications or
               alterations or overhauls having to be performed to meet such
               standards.

          (d)  General Appearance - The Aircraft shall be clean by commercial
               passenger airline standards, cosmetically acceptable, interior
               complete, and prepared to be placed into scheduled revenue
               airline operations. Interior items which may be broken shall be
               repaired or replaced. All decals, signs and placards shall be
               clean, secure and legible in the English language. The Aircraft
               shall meet the following minimum requirements:

               (i)   Fuselage, Wings and Empennage - The fuselage shall be
                     within Maintenance Program approved limits regarding dents
                     and abrasions and loose or pulled rivets; all leading edges
                     shall be within Maintenance Program approved limits
                     regarding damage occurring since delivery; the airframe,
                     Engines and wings shall be free of fuel, oil and hydraulic
                     leaks so as to allow unrestricted operation; all leading
                     edges and fuselage areas which are aerodynamically critical
                     shall be free of any scab patches other than those required
                     by the Manufacturer and shall be repaired with repairs
                     which are permanent in nature in accordance with the SRM,
                     or are made in accordance with the Manufacturer's approval.

               (ii)  Interior - Ceilings, sidewalls, bulkhead panels shall be
                     clean, free of cracks and within Maintenance Program
                     approved limits regarding dents; all carpets and seat
                     covers shall be in good condition and clean and meet FAR
                     fire resistance regulations; all seats shall be serviceable
                     and in good condition. All safety equipment shall be
                     installed at the correct stations, a loose equipment check
                     list and location drawings shall accompany the Aircraft and
                     a loose equipment inventory shall be drawn up on the
                     Delivery Date and checked on the day of return of the
                     Aircraft.

               (iii) Cockpit - All fairing panels shall be free of cracks and
                     shall be clean; all floor coverings shall be clean and
                     effectively sealed and secured, all seat covers and
                     cushions shall be in good condition and clean and shall, as
                     applicable, conform to FAA fire resistance regulations. All
                     seats shall be fully serviceable and in good condition. All
                     instruments and light panels shall be clean, secure and
                     legible, function in accordance with their intended purpose
                     and have all lighting operating properly.

               (iv)  Landing, Gear and Wheel Wells - The landing gear and all
                     wheel wells shall be clean, free of leaks, and repaired as
                     necessary. The main and

                                   Exhibit D-2                            Page 2
<Page>

                     nose landing gear components and their associated actuators
                     and parts shall be in a good operating condition.

               (v)   Cargo Compartment, Galleys and Toilets - All cargo
                     compartment panels shall be installed and be in good
                     condition so as to comply with extended range operations
                     requirements. The cargo compartments, galleys and toilet of
                     the Aircraft shall be in a clean and presentable condition
                     and all cargo securing system components shall be
                     serviceable; all galley inserts (to the extent delivered
                     with the Aircraft) shall be redelivered with the Aircraft.

               (vi)  Windows - Any delamination, and crazing of the windshields
                     and cabin windows of the Aircraft shall be within approved
                     limits of the Maintenance Program and shall be properly
                     sealed.

               (vii) Doors - All the doors of the Aircraft shall be free moving,
                     correctly rigged and properly sealed and all door assist
                     mechanisms shall be charged in accordance with the AMM.

          (e)  Airworthiness Directives and Service Bulletins - All FAA
               Airworthiness Directives and amendments or changes to Aviation
               Regulations issued by the FAA and applicable to the Aircraft
               which require compliance within a period of six (6) months
               following the day of return of the Aircraft (or the equivalent
               hours or cycles, based on the Lessee's EMB-145 last four 4) years
               of operation average monthly utilization) shall have been
               accomplished on a Terminating Action basis and in compliance with
               the issuing agency's and the manufacturer's associated service
               bulletins, regardless of any operator-specific waiver, deferral,
               or deviation from such directive or regulation. The Aircraft
               shall have installed on it all Manufacturer and OEM service
               bulletin kits requested by Lessee and actually received by Lessee
               in respect of the Aircraft, and if not installed, Lessee shall
               deliver them together with the Aircraft at no charge.

          (f)  Deferred Maintenance - The Aircraft shall be free of all deferred
               or carried over maintenance items, including without limitation,
               any pilot log book reports, maintenance reports, and the
               Aircraft's Central Maintenance Computer reports. Any such
               deferred or carried over maintenance shall be promptly
               accomplished in a terminating manner prior to the return of the
               Aircraft at the end of the term of the Lease.

          (g)  Corrosion - The Maintenance Program shall include a corrosion
               control program based on the corrosion prevention, treatment and
               correction criteria recommended by the Manufacturer in the CPCP.
               The Aircraft shall be free from corrosion or shall have been
               adequately treated in compliance with the Maintenance Program.
               Complete details of the corrosion control program, as well as a
               summary of specific corrosion correction, of the Aircraft in
               accordance with the Maintenance Program shall be available for
               delivery together with the Aircraft. This summary shall include
               Lessee's identifying the Manufacturer's task identifier and cross
               referencing, Lessee's identifier indicating status of
               accomplishment and findings and incorporation status relative to
               all

                                   Exhibit D-2                            Page 3
<Page>

               recommended corrective and preventative actions. The hydraulic
               system and fuel tanks shall be free from contamination as
               demonstrated by a laboratory report to be performed after the
               Aircraft is removed from service and delivered together with the
               Aircraft.

          (h)  Leased Components - The Aircraft shall be free and clear of all
               Liens other than any Lessor's Liens and at return shall not have
               installed thereon any equipment, components and/or parts which
               are leased or loaned or otherwise owned by a third party.

          (i)  Records - The Aircraft shall be accompanied by all Aircraft
               Documents. The Aircraft Documents shall be provided in English,
               and be in good condition, readable and capable of being
               reproduced.

               (i)   All Parts, components and assemblies identified with
                     safe-life, hard time or condition monitored limits (to the
                     extent that such condition monitored items are to be
                     tracked in accordance with the approved Maintenance
                     Program) shall be provided with part number, serial number,
                     their service histories, accumulated cycles and flight
                     hours, safe-life, hard time or condition monitored limits
                     and remaining service lives on a separate listing and where
                     practicable, be physically verified as installed and have
                     hard copy documentation (i.e., appropriate overhaul or
                     serviceable vendor tags and work orders) to verify their
                     service histories.

               (ii)  All components and assemblies, which are, identified on the
                     maintenance records by part numbers and/or serial numbers
                     other than the Manufacturer's or other manufacturer's shall
                     be provided with two-way cross-reference listing necessary
                     to establish complete traceability.

               (iii) All documentation, flight records, and maintenance records
                     as specified herein and as specified by Federal Aviation
                     Regulations Sections 121.380, and, as applicable, Section
                     91.417 and 91.419 (or FAR's as amended), and which normally
                     accompany the transfer of an aircraft or engine shall be
                     delivered together with the Aircraft. In the event of
                     missing or incomplete records, the tasks necessary to
                     produce such complete records shall be accomplished in
                     accordance with the Maintenance Program prior to return of
                     the Aircraft.

               (iv)  All documentation and records shall be in English and shall
                     be made available for inspection in the location they are
                     normally kept which location shall permit direct access to
                     the Aircraft, at least 14 Business Days before the day of
                     return of the Aircraft.

               (v)   Any and all documentation, data, drawings, records and
                     manuals as required to be maintained by the FAA and SMRD,
                     shall be provided, regardless of whether such information
                     is considered proprietary.

               (vi)  Hard Landing inspection reports, Lightning Strike
                     inspection reports or High Intensity Radiated Field (HIRF)
                     check reports as may be required

                                   Exhibit D-2                            Page 4
<Page>

                     should Aircraft records show evidence of any occurrence
                     indicating such inspections or checks to be necessary.

               (vii) Corrosion Prevention & Control Program (CPCP) inspection
                     findings and correction reports, as required by the
                     Maintenance Program.

          The head of Lessee's quality control department shall sign a statement
          certifying that the data and information contained in the
          documentation and records are true and correct.

          (j)  Exterior Markings - At time of return of the Aircraft, Lessee
               shall, at its cost remove from the exterior and interior of the
               Aircraft Lessee's operator specific exterior and interior
               markings. The area where such markings were removed or painted
               over shall be refurbished by Lessee as necessary to blend in with
               the surrounding surface in a good and workmanlike manner.

          (k)  Overhaul and Repair - All components, rotables, and assemblies
               (including the Engines, APU, and landing gears) shall be
               documented with work orders, vendor serviceable tags, 8130 tags,
               form 337, etc. to have been repaired or overhauled by
               FAA-certified repair stations in such manner so that such
               components, rotables, assemblies, Engines, APU, and landing gears
               are approved by the FAA for use on United States-registered and
               certified aircraft. All overhaul and repair procedures shall have
               met all FAA requirements necessary to transfer to a new operator
               under Part 121 of the U.S. Federal Aviation Regulations.

          (l)  Structural Repairs - All repairs that were performed since the
               Delivery Date and that then exist on the Aircraft shall conform
               to the SRM and the AMM and shall have FAA approval if required,
               including without limitation repairs related to impact damage to
               the Aircraft caused by ground handling equipment or foreign
               objects. All repairs not covered by the SRM or the AMM shall have
               been made in accordance with the Manufacturer's approval if
               required, which approval shall not be unreasonably be withheld
               and shall be provided with complete data and documentation to
               verify and substantiate their certification and methods of
               compliance. A complete listing of all repairs performed shall be
               supplied together with the Aircraft.

Section 2. Condition of Airframe.

     On the day of return, the Aircraft shall be as follows:

          (a)  C Check Inspection - The Airframe shall have completed, within
               100 flight hours of return, the next sequential C check or any
               multiple thereof. If the Aircraft has logged more than 100 flight
               hours since the last C check or any multiple thereof, then Lessee
               shall perform the next scheduled C check or any multiple thereof,
               as applicable. All observed defects observed during such C check
               shall be rectified at Lessee's expense, in accordance with the
               Maintenance Program;

          (b)  Structural and other scheduled Inspections - The Airframe shall
               have at least twelve (12) months, or two thousand (2,000) flight
               hours or cycles, whichever is applicable or most limiting,
               remaining before any scheduled structural tasks or

                                   Exhibit D-2                            Page 5
<Page>

               maintenance inspections which are not included in (a) above. In
               the event that a structural task or maintenance inspection
               interval is less than the above, Lessee shall, at its expense,
               perform all such tasks immediately prior to return of the
               Aircraft;

          (c)  Landing Gear Life - The main Landing Gear and the nose Landing
               Gear shall have at least fifty percent (50%) of the cycles
               remaining prior to removal for overhaul in accordance with the
               Maintenance Program, and the landing gear total cycles since new
               ("TCSN") shall be no more than ten percent (10%) greater than the
               airframe TCSN;

          (d)  Brakes - The brakes shall have no less than the C check brake
               wear limits with the brakes set at normal parking break pressure.
               The tires shall have a remaining useful life of at least fifty
               percent (50%).

Section 3. Condition of Controlled Components.

     Aircraft and Engine hour or cycle controlled components or parts, at time
     of return to Lessor, shall have remaining, as a minimum, one half life
     and/or fifty percent (50%) of the Lessee's approved hour or cycle limit,
     whichever is applicable or most limiting, before any scheduled removals for
     overhaul, test, disassembly or replacement. All components or parts
     controlled on a calendar basis shall have at least twelve (12) months or
     fifty percent (50%) of its total approved life in hours or cycles, if
     greater remaining before scheduled removal for testing, overhaul or
     replacement.

     However, if a component or part has a life, overhaul or check interval
     limit that is less than the above, Lessee shall, at its expense, perform
     all such tasks immediately prior to return. All such hour/cycle or calendar
     controlled components or parts are defined as those components or parts
     controlled under the Maintenance Program.

Section 4. Condition of Installed Engines and APU.

     At time of return, each Engine shall be capable of certificated, full rated
     performance and its life limited parts ("LLP") will have at least fifty
     percent (50%) of cycles between installation and replacement under the
     Maintenance Program.

          (a)  Time remaining - Each Engine shall have completed no more than
               2,500 flight hours since new or since its last full performance
               restoration shop visit at which it was subject to a full engine
               management program rework, based on the reliability goals set out
               in Rolls-Royce Alison workscope guide, which currently state that
               the workscope is designed to give 30 degrees centigrade of
               exhaust gas temperature margin and 5,000 flight hours of on-wing
               life. To the extent that the shop workscope guide is amended in
               the future to include different reliability goals then the engine
               shall have at least fifty percent (50%) of the on-wing hours
               remaining in accordance with such amended shop workscope guide.

          (b)  Borescope Inspection - On each installed Engine an external
               visual inspection, accessory inventory check and video-taped
               borescope inspection in accordance with the requirements of the
               Maintenance Program shall be performed by Lessee or a designated
               representative as mutually agreed between Lessee and Lessor

                                   Exhibit D-2                            Page 6
<Page>

               during the ground inspection per Section 7(a) of this Exhibit D-2
               accompanied by a written report on the findings of such
               inspection herein and satisfactory evidence shall be provided to
               Lessor reflecting the correction of any discrepancies found
               during such inspection.

          (c)  Adverse Trend Data - Complete engine records, including but not
               limited to (i) Group A (Lifed) components (as listed in Engine
               Manufacturer's Time Limits Manual) as approved by the FAA and
               (ii) in flight performance data and (iii) shop visit reports from
               all shop visits, shall be made available to Lessor for review and
               evaluation. If the Aircraft and/or engine historical and
               maintenance records and/or trend monitoring indicate a rate of
               acceleration in performance deterioration or oil consumption on
               any installed engine beyond the limits of the Maintenance
               Program, the causes of such conditions shall have been corrected
               prior to the return date.

          (d)  Oil spectrum analysis - an oil spectrum analysis shall be made on
               the installed Engines after the Aircraft is removed from service
               and a written report shall be made available together with the
               Aircraft. Any discrepancy found in the engine's lubrication
               system shall have been corrected prior to the return date.

          (e)  APU Life - The installed APU shall have remaining at least fifty
               percent (50%) of the expected mean time before removal as
               evidenced by the Lessee's demonstrated on-wing last two years
               average for APU hours, before scheduled removal for overhaul,
               heavy maintenance, or replacement of hour limited or LCF parts at
               the time of return. The APU shall have a video taped borescope
               inspection and magnetic plug inspection during the ground
               inspection per Section 7(a) of this Exhibit D-2.

Section 5. Provision for "Power-By-The Hour Agreements".

     If the Engines, APU, or any other hour or cycle controlled components on
     the day of return are maintained under valid PBH Agreements (as defined
     below) (and either have been maintained throughout the Term under PBH
     Agreements, or Lessee has made payments to the maintenance provider to
     cover the period in which such components where not under such PBH
     Agreements), under which the Lessee is current on all payments and
     otherwise in good standing, then, in lieu of the relevant requirements in
     Sections 2(c), 2(d), 3, 4(a) or 4(e) of this Exhibit D-2, the Lessee shall
     return each such component in such condition as shall make it eligible for
     continued maintenance under PBH Agreements, without additional costs,
     start-up charges, or overhaul requirements. For the purposes hereof, a "PBH
     Agreement" shall mean a "power-by-the-hour" maintenance program, provided
     by the Engines, APU or component manufacturer or its successor or designee,
     providing full maintenance (other than routine day-to-day maintenance;
     provided, that foreign-object damage and abuse may be excluded or
     separately charged) for the Engines, APU or such components at no cost
     other than standard per-cycle rates (i.e., excluding charges based on the
     current maintenance status of such component), all benefits of which
     program, including but not limited to the payments made by Lessee under
     such PBH Agreements while operating the Aircraft, shall be assignable or
     otherwise transferable to any other carrier without restrictions of any
     kind.

                                   Exhibit D-2                            Page 7
<Page>

Section 6. Return Condition Adjustment.

          (a)  Each item referred to in Sections 2(c), 2(d), 3, the first two
               lines of Section 4 and in Section 4(a) and 4(e) (each such item,
               an "Adjustable Item" and each such section, an "Adjustable Return
               Condition") may be returned with less than the required limits,
               subject, however, to the minimum requirements set forth in item
               (e) below.

          (b)  If the Lessee does not meet the conditions set forth for an
               Adjustable Item in the relevant Adjustable Return Condition then
               Lessee shall pay to the Lessor (for deficient condition) an
               Equivalency Payment in accordance with the following formula:

                                        [*]

          The components of the formula above shall be as agreed between Lessor
          and the Lessee. If Lessor and the Lessee fail to reach agreement on
          any components of the above formula, such amount will be determined as
          the average price that would be charged by a third party to restore
          the Aircraft to the conditions required under the Lease and this
          Exhibit D-2, based on one quotation obtained by Lessor and one
          quotation obtained by Lessee, both from a reputable, FAA and
          Manufacturer-approved EMB-145 repair station in the United States. If
          the prices of such quotations differ by more than ten percent (10%),
          Lessor and Lessee shall obtain a third quotation from another
          reputable, FAA and Manufacturer-approved EMB-145 repair station in the
          United States, the quotation which is farthest from the average of all
          three quotations shall be disregarded and the average of the two
          remaining quotations shall be binding upon Lessor and Lessee as the
          components of the formula.

          (c)  The Equivalency Payment for each return condition of each
               Adjustable Item in the relevant Section referred to in the first
               paragraph of this Section 6, whether positive or negative, shall
               be aggregated in order to determine the total Equivalency Payment
               due from Lessee. (For clarification, items in more than the

                                   Exhibit D-2                            Page 8

----------
* Confidential

<Page>

               required condition shall be netted against items in less than the
               required condition when determining the amount of the total
               payment due, provided however that such netting is only
               applicable to the following major components: Engines, APU and
               landing gear). If the cumulative Equivalency Payment after such
               netting is negative, it shall be deemed to be zero.

          (d)  In no event shall the Equivalency Payment due from the Lessee to
               the Manufacturer exceed the aggregate amount of any payment and
               expenses that the Manufacturer may make under the Residual Value
               Guarantee.

          (e)  Notwithstanding the equivalency charges that may be otherwise
               payable or available under this Section 6, if:

               (i)   Any installed Engine has completed more than 3,750 flight
                     hours since new or since its last full performance
                     restoration shop visit at which it was subject to a full
                     engine management program rework (or less than twenty-five
                     percent (25%) of the on-wing hours remaining in accordance
                     with an amended RR Allison shop workscope guide),

               (ii)  Any Engine life limited part has a remaining useful life
                     until the next scheduled replacement of less than twenty
                     five percent (25%),

               (iii) The APU has remaining less than twenty five (25%) of the
                     expected mean time before removal,

               (iv)  The main landing gear or the nose landing gear has less
                     than twenty five percent (25%) of the cycles remaining
                     prior to removal for overhaul, or the cycles exceed one
                     hundred and ten percent (110%) of the airframe, or

               (v)   The brakes have less than the C check brake wear limits
                     with the brakes set at normal parking break pressure, or
                     the tires have a remaining useful life of less than twenty
                     five percent (25%),

     then, in any such case, Lessee shall, at its own cost and expense,
     overhaul, refurbish and/or replace each non-complying item so that it meets
     the applicable level specified in items (i) through (v) above.

Section 7. Inspection Upon Return

     Lessor shall have the right to inspect the Aircraft upon return, and the
following conditions shall apply:

          (a)  Ground Inspection - The Aircraft including the Aircraft Documents
               shall be made available to Lessor for ground inspection by Lessor
               or its designee at Lessee's facilities. Such inspection shall
               commence no later than fourteen (14) Business Days prior to the
               date of return of the Aircraft. Lessee shall remove the Aircraft
               from scheduled service and open the areas of the Aircraft as
               required to

                                   Exhibit D-2                            Page 9
<Page>

               perform the necessary checks as specified in Section 2 of this
               Exhibit D-2. In addition, Lessee shall allow Lessor to accomplish
               its inspection to determine that the Aircraft, including the
               Aircraft Documents are in the condition set forth in Sections 1,
               2, 3 and 4 of this Exhibit D-2. During such checks, Lessor's
               personnel shall have the right to reasonably request that
               adjacent additional panels or areas be opened in order to allow
               further inspection by Lessor's personnel.

          (b)  Operational Ground Check - Lessee shall conduct an operations
               ground check on the Aircraft in accordance with the Maintenance
               Program manual criteria for the purpose of demonstrating to
               Lessor the satisfactory operation of the systems, including a
               full fuel tank leak check, pilot and static systems check and
               hydraulic system internal leak check.

          (c)  Operational Test Flight - The Aircraft shall be test flown by
               Lessee, using qualified flight test personnel, for the amount of
               time necessary to satisfactorily demonstrate the airworthiness of
               the Aircraft and the proper functioning of all systems and
               components in accordance with the agreed check flight procedures.
               During such test flight command, care, custody and control of the
               Aircraft shall remain at all times with Lessee. Up to five (5) of
               Lessor's designated representatives (or more if mutually agreed)
               may participate in such flight as observers. Upon completion of
               such operational flight-testing, the representatives of Lessee
               and Lessor participating in such testing shall agree in writing
               upon any discrepancies required to be corrected by Lessee in
               order to comply with the conditions required hereunder.

          (d)  Discrepancies - If requested by Lessor in writing, all
               discrepancies, which are noted during the inspection and
               acceptance flight(s), shall be corrected at Lessee's expense. If
               such discrepancies are substantiated by the Maintenance Program
               and Lessor determines that repairs, modifications or other work
               items are required to cause the Aircraft to comply with the
               requirements provided herein, including, without limitation, any
               maintenance required so that the Engines will meet all Engine
               parameters and trends specified by the Maintenance Program,
               Lessee shall cause such repairs and other work items to be
               commenced and completed prior to return.

Section 8. Delegation.

     Lessee agrees that whenever a determination under this Exhibit D-2 is to be
made by, or a right is granted under this Exhibit D-2 to, the Lessor, the Lessor
may, at its option, allow the Manufacturer to act as the authorized
representative of the Lessor and make such determination or exercise such right.

Section 9. Definitions.

     For the purpose of this Exhibit D-2, the following terms have the following
meanings:

         "RVG APPRAISAL PROCEDURE" means this procedure shall apply only if
         Lessee exercises the FMV Purchase Option and Beneficiary provides a
         Residual Notice pursuant to Section 3 of Exhibit A-2 of the Lease and
         shall be used in such case to determine the Fair Market Sales Value of
         the Aircraft as herein provided. Manufacturer, Beneficiary and Lessee
         shall, within thirty (30)

                                   Exhibit D-2                           Page 10
<Page>

     calendar days after Beneficiary has delivered a Residual Notice, each
     obtain appraisal values from a recognized independent appraiser (one to be
     selected by Manufacturer, one by Beneficiary, and one by Lessee), and the
     average value as determined by the appraisers shall be binding on
     Manufacturer, Beneficiary and Lessee; provided that if the value or values
     determined by one or more of the appraisers differs from the average of the
     values determined by all three appraisers by more than five percent (5%) of
     such average, the value which differs the most from such average shall be
     excluded, and the average of the values determined by the other two
     appraisers shall be binding on Manufacturer, Beneficiary and Lessee.
     Manufacturer, Beneficiary and Lessee shall each pay its own appraiser. Each
     appraiser must be associated with a professional organization of aircraft
     appraisers and each appraisal shall be conducted pursuant to ISTAT 1994 (or
     any successor) appraisal methods, definitions and assumptions. Fair Market
     Sales Value as determined hereunder shall mean the value that would be
     obtained in an arms'-length transaction between an informed and willing
     buyer-user (other than a lessee currently in possession or a used equipment
     dealer) under no compulsion to buy and an informed and willing seller under
     no compulsion to sell. In determining Fair Market Sales Value, it will be
     assumed that the Aircraft is in the condition, location and overhaul status
     in which it is required to be returned to the Lessor pursuant to Article
     XVIII of the Lease, without allowance for any return condition adjustments
     otherwise permitted by Section 6 of this Section D-2, that Exhibit D-2 of
     the Lease will apply, that the Lessee has removed all Parts which it is
     entitled to remove pursuant to Article IX of the Lease and that the
     Aircraft is not encumbered by the Lease or any Lien.

     "APU" shall mean the auxiliary power unit bearing serial number __________,
     and any substitute APU which may from time to time be substituted therefor
     pursuant to the terms of the Lease.

     "CALENDAR CONTROLLED COMPONENTS OR PARTS" means those components or parts,
     which are identified in the MRB Report which have maintenance tasks at
     specific calendar-time intervals.

     "CYCLE-CONTROLLED COMPONENTS OR PARTS" means those components or parts,
     which are identified in the MRB Report which have maintenance tasks at
     specific flight-cycle intervals.

     "HOUR-CONTROLLED COMPONENTS OR PARTS" means those components or parts,
     which are identified in the MRB Report which have maintenance tasks at
     specific flight-hour intervals.

     "LIFE CYCLE FATIGUE ("LCF") PARTS" means those rotating parts which have
     specific cycle limits as specified by the manufacturer to preclude cycle
     fatigue failures.

     "MAINTENANCE REVIEW BOARD REPORT ("MRB REPORT")" means the report published
     by the maintenance review board detailing the intervals and description of
     the maintenance tasks and, where applicable, the life limits required for
     continued airworthiness of the Aircraft. Where the intervals specified in
     the MRB Report differ from the limit specified by the component
     manufacturer, the MRB Report shall take precedence.

     "TERMINATING ACTION" means the alteration or modification of the Aircraft
     in accordance with mandatory service bulletins, orders, airworthiness
     directives, and instructions required to eliminate repetitive inspections
     or maintenance action.

                                   Exhibit D-2                           Page 11

<Page>

                                                                  EXHIBIT E-1 TO
                                                          THE PURCHASE AGREEMENT

                   FORM OF ASSIGNMENT AND ASSUMPTION AGREEMENT

          THIS ASSIGNMENT AND ASSUMPTION AGREEMENT, dated as of ___________,
________ between [_____________________] (the "TRANSFEREE") and
________________________________________ (the "TRANSFEROR").

                              W I T N E S S E T H:

          WHEREAS, the Transferor is a party to an Aircraft Purchase Agreement
[N288SK], dated as of June 5, 2001 among Solitair Corp., Chautauqua Airlines,
Inc. (the "Lessee"), the Transferor and Wells Fargo Bank Northwest, National
Association, not in its individual capacity (except as otherwise expressly
provided therein) but solely as Owner Trustee (as the same may be from time to
time amended, the "PURCHASE AGREEMENT") and certain other Transaction Documents
(as defined herein);

          WHEREAS, the Transferor desires to sell and assign to the Transferee
[all of]/[an undivided interest in] its right, title and interest in, to and
under the Trust Agreement (as defined in the Purchase Agreement) (except as
reserved below), and the Transferee desires to (i) purchase and accept from the
Transferor the assignment of [all of]/[such undivided interest in] the
Transferor's right, title and interest in, to and under the Trust Agreement
(except as reserved below) and (ii) assume the Assumed Obligations (as defined
herein); and

          WHEREAS, capitalized terms used herein without definition and which
are defined in the Purchase Agreement are used herein with the respective
meanings given such terms in the Purchase Agreement;

          NOW, THEREFORE, in consideration of the premises and the mutual
agreements contained herein, the parties agree as follows:

          1. ASSIGNMENT. Effective as of the date hereof (the "TRANSFER DATE"),
the Transferor hereby irrevocably sells, assigns, transfers, conveys and sets
over to the Transferee [all of]/[an undivided interest in ___ portion of] its
right, title and interest in, to and under the Trust Estate, the Purchase
Agreement, the Trust Agreement, the Tax Indemnity Agreement and all other
Operative Documents (as defined in the Purchase Agreement), agreements,
contracts, documents and instruments executed and delivered at any time prior to
the execution and delivery of this Agreement in connection with any of the
foregoing (the "TRANSACTION DOCUMENTS"), and any proceeds therefrom, except such
rights of the Transferor as have arisen or accrued prior to the Transfer Date
(such excepted rights to include, without limitation, the right to receive any
amounts due or accrued to the Transferor under any Transaction Document as of a
date prior to the Transfer Date and the right to enforce any terms under the
Purchase Agreement

                                                           Exhibit E-1 -- Page 1
<Page>

or the Tax Indemnity Agreement with respect to acts or events occurring prior to
the Transfer Date).

          2. ASSUMPTION. The Transferee hereby assumes all of the obligations,
liabilities and duties of the Transferor arising from and after the Transfer
Date under each Transaction Document [with respect to the undivided interest
therein transferred hereunder] (the "ASSUMED OBLIGATIONS") and confirms that
from and after the Transfer Date it shall be deemed a party to each Transaction
Document to which the Transferor is a party and shall be bound by all the terms
thereof (including the agreements and obligations of the Transferor set forth
therein) as if it were named as the Transferor therein.

          3. FURTHER ASSURANCES. Each party hereto shall, at any time and from
time to time, upon the request of the other party hereto, promptly and duly
execute and deliver any and all such further instruments and documents and take
such further action as the other party may reasonably request to obtain the full
benefits of this Agreement and of the rights and powers herein granted.

          4. REPRESENTATIONS AND WARRANTIES. The Transferee hereby represents
and warrants to the other parties hereto that:

          (a) ORGANIZATION; AUTHORITY. The Transferee (i) is a __________ duly
organized, validly existing and in good standing under the laws of
___________________ and (ii) has the full [corporate] power and authority to
conduct its business as presently conducted, to own or hold under lease its
properties and to execute, deliver and perform this Agreement and to perform the
Assumed Obligations.

          (b) DUE AUTHORIZATION. The execution, delivery and performance of this
Agreement and the performance of the Assumed Obligations have been duly
authorized by all necessary corporate action on the part of the Transferee.

          (c) CONFLICT. The execution, delivery and performance by the
Transferee of this Agreement and the performance of the Assumed Obligations and
the consummation or performance by the Transferee of the transactions
contemplated thereby will not conflict with or result in any violation of,
constitute a default under, or result in the creation of any Lien upon any
property of the Transferee under, any term of the Certificate of Incorporation
or By-laws of the Transferee or any agreement, mortgage, contract, indenture,
lease or other instrument, or any Applicable Law, by which the Transferee or its
properties or assets are bound, except for any such violation, conflict or
default which would not have a material adverse effect on the Transferee or its
ability to perform the Assumed Obligations.

          (d) GOVERNMENT CONSENTS. Neither the execution or delivery of this
Agreement and the performance of the Assumed Obligations nor the consummation of
any of the transactions contemplated hereby or thereby by the Transferee
requires the consent or approval of, the giving of notice to, the registration
with, or the taking of any other action in respect of any United States federal,
state or other governmental authority or agency, including any judicial body,
that would be required to be taken or obtained by the Transferee.

                                                           Exhibit E-1 -- Page 2
<Page>

          (e) LEGAL, VALID AND BINDING OBLIGATIONS. The Assumed Obligations and
this Agreement constitute the legal, valid and binding obligations of the
Transferee enforceable against the Transferee in accordance with their
respective terms except as such enforcement may be limited by bankruptcy,
insolvency, reorganization, moratorium, and other similar laws affecting the
rights of creditors generally and by general principles of equity, regardless of
whether enforcement is pursuant to a proceeding in equity or at law.

          (f) LITIGATION. There are no pending or, to the knowledge of the
Transferee, threatened actions or proceedings against the Transferee by or
before any court or administrative agency or arbitrator that, either
individually or in the aggregate, are reasonably likely to materially adversely
affect the ability of the Transferee to perform its obligations under this
Assumption Agreement or the Assumed Obligations.

          (g) SECURITIES REPRESENTATION. The Transferee is acquiring its
interest in the Trust Estate for investment and not with a view to any resale or
distribution thereof, but subject, nevertheless, to any requirement of law that
the disposition of its property remain within its control at all times, and that
neither it nor anyone authorized by it to act on its behalf has directly or
indirectly offered any interest in the Trust Estate, or any similar security for
sale to, or solicited any offer to acquire any of the same from, anyone.

          (h) LESSOR'S LIENS. Upon the execution of this Assumption Agreement,
there will be no Lessor's Lien attributable to the Transferee on the Trust
Estate.

          (i) ERISA. No part of the funds to be used by the Transferee to
acquire the interests to be acquired by it hereunder constitutes assets (within
the meaning of ERISA and any rules and regulations thereunder) of any ERISA
plan.

          (j) PERMITTED TRANSFEREE. The Transferee is a bank, savings
institution, finance company, leasing company or trust company, national banking
association acting for its own account or in a fiduciary capacity as trustee or
agent under any pension, retirement, profit sharing or similar trust or fund,
insurance company, financial institution, fraternal benefit society or a
corporation acting for its own account having a combined capital and surplus
(or, if applicable, consolidated net worth or its equivalent) of not less than
$25,000,000.(1) [The Transferee is an Affiliate(2) of the transferring
Beneficiary having a combined capital and surplus (or, if applicable,
consolidated net worth or its equivalent) of not less than $25,000,000.](3) The
Transferee is reasonably experienced in equipment leasing and financing
transactions. The Transferee is not (x) an airline or other Person engaged in
air transportation or a competitor of Lessee in the business of air
transportation or any Affiliate thereof, (y) a party adverse to the Lessee or
any Affiliate of the Lessee in any pending litigation or arbitration (whether as
plaintiff

----------
(1) If a guaranty is being provided pursuant to Section 10(b)(v) of the Purchase
    Agreement, replace "The Transferee" at the beginning of this sentence with
    the name of the guarantor.

(2) Include if the Transferee is an Affiliate of the transferring Beneficiary.

(3) There shall be no such net worth requirement if the transferring Beneficiary
    remains liable for the obligations of such Affiliate under the Operative
    Documents.

                                                           Exhibit E-1 -- Page 3
<Page>

or defendant) or (z) a Person that has overtly threatened to initiate
any such litigation or arbitration against Lessee or any Affiliate of Lessee.

             Notwithstanding the foregoing or anything else contained in this
Agreement, the Transferee makes no representation or warranty in this Agreement
with respect to laws, rules or regulations relating to aviation or to the nature
or use of the equipment owned by the Owner Trustee, including, without
limitation, the airworthiness, value, condition, workmanship, design, patent or
trademark infringement, operation, merchantability or fitness for use of the
Aircraft.

          5. RELIANCE. The representations, warranties, covenants and agreements
of the Transferee are made for the benefit of, and may be relied upon by, the
Owner Trustee, Lessee and Transferor (collectively, the "BENEFICIARIES"), and
each of the Beneficiaries shall be deemed to be an express third party
beneficiary with respect thereto, entitled to enforce directly and in its own
name any rights or claims it may have against such Transferee as such
beneficiary.

          6. PAYMENTS. Transferor hereby covenants and agrees to pay over to
Transferee, if and when received on or following the Transfer Date, any amounts
(including any sums payable as interest in respect thereof) paid to or for the
benefit of Transferor that, under Section 2 hereof, belong to Transferee, and
Transferee hereby covenants and agrees to pay over to Transferor, if and when
received on or following the Transfer Date, any amounts (including any sums
payable as interest in respect thereof) paid to or for the benefit of Transferee
that, under Section 2 hereof, belong to Transferor.

          7. COUNTERPARTS. This Agreement may be executed in any number of
counterparts and by the parties hereto on separate counterparts (or upon
separate signature pages), all of which together shall constitute but one and
the same instrument.

          8. GOVERNING Law. THIS AGREEMENT IS BEING DELIVERED IN THE STATE OF
NEW YORK, AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL,
PURSUANT TO NEW YORK GENERAL OBLIGATIONS LAW SECTION 5-1401, BE GOVERNED BY THE
LAWS OF THE STATE OF NEW YORK.

                                                           Exhibit E-1 -- Page 4
<Page>

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed and delivered on the date first above written

                                   [                                          ]
                                    ------------------------------------------
                                   Transferor

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

                                   [                                          ]
                                    ------------------------------------------
                                   Transferee

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

                                                           Exhibit E-1 -- Page 5

<Page>

                                                                  EXHIBIT E-2 TO
                                                          THE PURCHASE AGREEMENT

                           FORM OF GUARANTY AGREEMENT

                                                   [DATE]

         Re:    Chautauqua Airlines, Inc. - One Embraer model EMB-145LR Aircraft
                Bearing United States Registration No. N288SK

Ladies and Gentlemen:

     Reference is made to that certain Assignment and Assumption Agreement dated
as of _______________ (the "ASSIGNMENT AGREEMENT") by and between
_______________ ("BENEFICIARY") and _______________ ("ASSIGNEE"). Assignee is a
direct or indirect subsidiary of the undersigned, _____________________, a
____________ ("GUARANTOR"). Except as otherwise noted herein, all capitalized
terms used herein shall have the respective defined meanings set forth in (1)
that certain Purchase Agreement [N288SK] (the "PURCHASE AGREEMENT"), dated as of
June 5, 2001 among Solitair Corp., Chautauqua Airlines, Inc. (the "Lessee"), the
Beneficiary and Wells Fargo Bank Northwest, National Association, a national
banking association, not in its individual capacity, except as expressly
provided therein, but solely as Owner Trustee ("OWNER TRUSTEE"); and (2) that
certain Aircraft Lease Agreement [N288SK] (the "LEASE"), dated as of June 5,
2001 between the Owner Trustee, as Lessor and the Lessee, as Lessee (each of the
Lessee and the Owner Trustee, together with its successors and permitted
assigns, a "GUARANTEED PARTY").

     In connection with the transactions contemplated by the Assignment
Agreement, Guarantor represents and warrants to, and covenants with, each
Guaranteed Party, as follows:

     1. OWNERSHIP OF ASSIGNEE. Assignee is a direct or indirect subsidiary of
Guarantor.

     2. REPRESENTATIONS AND WARRANTIES. Guarantor represents and warrants that
Guarantor is duly organized and validly existing in good standing under the laws
of _____________. The execution, delivery and performance of this Guaranty
Agreement are within Guarantor's power and authority, have been duly authorized
by all necessary corporate action on the part of the Guarantor and do not
contravene the charter or the by-laws of Guarantor or any indenture, mortgage,
credit agreement, note, long-term lease or other material agreement to which
Guarantor is a party or by which Guarantor is bound, and this Guaranty Agreement
constitutes a legal, valid and binding obligation of Guarantor, enforceable
against Guarantor in accordance with its terms.

     3. SUBMISSION TO JURISDICTION, ETC. Guarantor hereby agrees to be bound, to
the same extent Beneficiary is bound, by the provisions of Section 12(b) of the
Purchase Agreement, which are incorporated herein by reference as if fully set
forth herein.

                                                           Exhibit E-2 -- Page 1
<Page>

     4. UNDERTAKINGS.

     (a) Guarantor hereby unconditionally and irrevocably guaranties not merely
as surety but as primary obligor, the due and punctual: (i) performance by
Assignee of all of the obligations of the "Beneficiary" under the Operative
Documents assumed by Assignee under the Assignment Agreement; (ii) payment of
any and all sums which are payable by the Beneficiary pursuant to any of the
Operative Documents which payment obligations were assumed by Assignee under the
Assignment Agreement; and (iii) performance of, observance of and compliance
with all other obligations, covenants and undertakings and representations and
warranties of, or made by, Assignee in the Assignment Agreement or the
Beneficiary contained in or arising under the Operative Documents and assumed by
Assignee under the Assignment Agreement (such payments and other obligations
referred to in this Section 4(a) hereinafter referred to as the "OBLIGATIONS").
Guarantor agrees that it will not use the assets of any ERISA Plan to fund its
payment obligations hereunder.

     (b) Guarantor agrees that this Guaranty Agreement is an unconditional and
absolute guaranty of payment and performance (not merely collectability), that
its undertakings hereunder are not contingent upon any Guaranteed Party bringing
any action against Assignee or resorting to any security and hereby expressly
waives any claim that its undertakings hereunder are so contingent.

     (c) Guarantor irrevocably waives promptness, diligence, demand, and all
notices whatsoever as to the Obligations guaranteed hereby, and any other
circumstances which might otherwise constitute a defense available to it, or a
discharge of it (other than the defense of payment or performance), and agrees
that it shall not be required to consent to or receive any notice of any
amendment or modification of, or waiver, consent or extension with respect to,
the Purchase Agreement or the other Operative Documents to which Assignee is a
party that may be made or given as provided herein or otherwise.

     (d) Guarantor further agrees to pay all expenses (including, without
limitation, all fees and disbursements of counsel) that may be paid or incurred
by any Guaranteed Party in enforcing any rights with respect to, or collecting,
any or all of the Obligations and/or enforcing any rights with respect to, or
collecting against, the Guarantor under this Guaranty Agreement.

     (e) Guarantor understands and agrees that its obligations hereunder shall
be construed as continuing, absolute and unconditional without regard to (i) the
validity, regularity or enforceability of any Operative Document, any of the
Obligations or any collateral security therefor or guarantee or right of offset
with respect thereto at any time or from time to time held by any Guaranteed
Party, (ii) any defense, set-off or counterclaim (other than a defense of
payment or performance) that may at any time be available to or be asserted by
the Assignee against any Guaranteed Party, or (iii) any other instances
whatsoever (with or without notice to or knowledge of the Assignee or the
Guarantor) that constitutes, or might be construed to constitute, an equitable
or legal discharge of Assignee for the Obligations, or of Guarantor under this
Guaranty Agreement, in bankruptcy or in any other instance.

     5. NO DISCHARGE. The obligation of Guarantor hereunder will not be
discharged by: (a) any extension or renewal with respect to any obligation of
Assignee, as Beneficiary, under

                                                           Exhibit E-2 -- Page 2
<Page>

the Operative Documents; (b) any modification of, or amendment or supplement to,
any such agreement; (c) any furnishing or acceptance of additional security or
any release of any security; (d) any waiver, consent or other action or inaction
or any exercise or non-exercise of any right, remedy or power with respect to
Assignee, or any change in the structure of Assignee; (e) any insolvency,
bankruptcy, reorganization, arrangement, composition, liquidation, dissolution
or similar proceedings with respect to Assignee; (f) except as provided in
Section 6 any change in ownership of the shares of capital stock of Guarantor or
Assignee; or (g) any other occurrence whatsoever, except payment in full of all
amounts payable by Assignee, as Beneficiary, under the Operative Documents and
performance in full of all Obligations of Assignee, as Beneficiary, in
accordance with the terms and conditions of the Operative Documents.

     6. TRANSFERS. The Guarantor may assign, convey or otherwise transfer its
obligations hereunder to any other Person (hereinafter referred to as the
"TRANSFEREE GUARANTOR"), provided that (a) the Transferee Guarantor enters into
an agreement substantially in the form of this Guaranty Agreement and (b) the
Transferee Guarantor meets the requirements of Section 10(b)(iv) of the Purchase
Agreement relating to a "guarantor". If pursuant to Section 10(b)(iv) of the
Purchase Agreement or the preceding sentence, a new guaranty shall be delivered
or the obligations of the Guarantor shall be transferred, the Transferee
Guarantor shall deliver an opinion or opinions of counsel substantively similar
to the form of opinion attached to the Purchase Agreement as Exhibit G to the
effect that the obligations incurred by the Transferee Guarantor pursuant hereto
constitute the legal, valid, binding and enforceable obligations of such
Transferee Guarantor. Upon the satisfaction by the Guarantor of the conditions
set forth in this Section 6, the Guarantor shall be released and discharged of
any and all further obligations under this Guaranty Agreement.

     7. REINSTATEMENT. Guarantor agrees that this Guaranty Agreement shall be
automatically reinstated with respect to any payment made prior to the
termination of this Guaranty Agreement by or on behalf of Assignee pursuant to
the Purchase Agreement or the other Operative Documents to which Assignee is a
party if and to the extent that such payment is rescinded or must be otherwise
restored, whether as a result of any proceedings in bankruptcy or reorganization
or otherwise.

     8. NO SUBROGATION. Notwithstanding any payment or payments made by
Guarantor hereunder or any set-off or application of funds of Guarantor by any
Guaranteed Party, Guarantor shall not be entitled to be subrogated to any of the
rights of Guaranteed Party against Assignee or any collateral, security or
guarantee or right of set-off held by any Guaranteed Party for the payment of
the Obligations, nor shall Guarantor seek or be entitled to seek any
reimbursement from the Assignee in respect of payments made by Guarantor
hereunder, until all amounts and performance owing to the Guaranteed Parties by
Assignee on account of the Obligations are paid and performed in full.

     9. SEVERABILITY. Any provision of this Guaranty Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

                                                           Exhibit E-2 -- Page 3
<Page>

     10. MISCELLANEOUS. This Guaranty Agreement shall: (a) be binding upon
Guarantor, its successors and assigns; (b) inure to the benefit of, and be
enforceable by, the Guaranteed Parties but shall not, and is not intended to,
create rights in any other third parties; (c) not be waived, amended or
modifiedthe written consent of each of the Guaranteed Parties; (d) be governed
by and construed in accordance with, the internal laws of the State of New York,
and (e) remain in full force and effect until the earlier of (i) payment in full
of all sums payable by Assignee, as Beneficiary, under the Assignment Agreement
and the Operative Documents and by Guarantor hereunder, and performance in full
of all other Obligations of Assignee, as Beneficiary, under the Assignment
Agreement and the Operative Documents and (ii) the compliance by Guarantor with
Section 6. All notices to, requests of, demands on and other communications with
Guarantor shall be made in writing and shall be personally delivered, sent by
facsimile or telecommunication transmission (which in either case provides
written confirmation to the sender of its delivery) or sent by registered or
certified mail, postage prepaid, or by prepaid courier service to Guarantor at:
______________________________________, Attention: ______________________,
telephone (___) __________] facsimile [(___) __________].

     IN WITNESS WHEREOF, the undersigned has caused this instrument to be duly
executed this ______ day of ________________________.

                                     [GUARANTOR]

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

                                                           Exhibit E-2 -- Page 4

<Page>

                                                                       EXHIBIT F

                             COUNTRY LIST

                Australia                 Italy

                Austria                   Japan

                Belgium                   Luxembourg

                Canada                    The Netherlands

                Denmark                   New Zealand

                Finland                   Norway

                France                    Portugal

                Germany                   Singapore

                Iceland                   Switzerland

                Ireland                   United Kingdom

<Page>

                                                                       EXHIBIT G

                              GENERAL TAX INDEMNITY

     Section 1.01 INDEMNITY. Lessee agrees for the benefit of each Tax
Indemnitee to pay and, on written demand, to indemnify and hold each Tax
Indemnitee harmless from all Taxes, howsoever levied or imposed, whether levied
or imposed upon or asserted against any Tax Indemnitee, this Lease, the
Aircraft, or any part thereof or interest therein, or otherwise by any Federal,
state or local government, political subdivision, or taxing authority in the
United States, by any government or taxing authority of or in a foreign country
or of or in a territory or possession of the United States or by any
international taxing authority upon or with respect to, or arising out of or
connected with, or based upon or measured:

          (a) by the Aircraft, or any part thereof, or interest therein;

          (b) by the exportation, importation, ownership, delivery,
non-delivery, warehousing, removal, leasing, exchange, acceptance, assigning,
possession, repossession, condition, recording, use, location, presence,
operation, settlement of any insurance or warranty claim, sale, subleasing,
rental, retirement, chartering, imposition of any Lien, abandonment,
registration or change in registration, preparation, installation, modification,
repair, maintenance, replacement, transportation, storage, transfer of title,
return or other disposition of the Aircraft or any part thereof or interest
therein;

          (c) by the rentals, receipts or earnings arising from any one or more
of the items or acts described in Section 1.01 (a) or (b) above (including,
without limitation, the Rent), or any other payment contemplated by this Lease;

          (d) upon or with respect to this Lease, or any other Operative
Document pertaining to or in connection with the transactions contemplated by
this Lease; or

          (e) otherwise with respect to or in connection with the transactions
contemplated by this Lease.

     Section 1.02 EXCEPTIONS TO INDEMNITY. Notwithstanding anything to the
contrary in this Agreement or any other Operative Document, the indemnity
provided for in this Exhibit G does not extend to any of the following Taxes:

          (a) Taxes that are based on or measured by gross or net income or
receipts, capital or net worth or capital stock, capital adequacy, or reserves
or that are capital gains Taxes, excess profits Taxes, minimum or alternative
minimum Taxes, accumulated earnings Taxes, personal holding company Taxes,
succession Taxes, estate Taxes, franchise Taxes, doing business Taxes, or
similar Taxes; PROVIDED, HOWEVER, that this exception (a) shall not apply to (i)
Taxes that are in the nature of sales, use, or property Taxes or (ii) Taxes if
Taxes of such type would not have been incurred by a Tax Indemnitee but for the
use, operation, location, or registration of the Aircraft by Lessee or any
Affiliate thereof or any sublessee, or the activities or place of incorporation
or business organization of Lessee or any Affiliate of Lessee, in a jurisdiction
in which such Taxes have been incurred (PROVIDED, HOWEVER, that Lessee shall
only incur responsibility for Taxes of such type only if and to the extent that
such Taxes are imposed as a result of such use, operation, location,
registration, or activities and not as a result of the activity of a Tax
Indemnitee and PROVIDED, FURTHER, that this clause (ii) shall not apply to any
Taxes of such type imposed by any Federal, state or local government, political
subdivision, or taxing authority in the United States);

          (b) withholding taxes imposed on any indebtedness of any Tax
Indemnitee;

<Page>

          (c) Taxes incurred by a Tax Indemnitee or any of its Affiliates by (A)
engaging in activities in the jurisdiction imposing such Tax which activities or
property are unrelated to the transactions contemplated by this Lease or other
Operative Documents, (B) being incorporated therein or maintaining an office or
having a place of business therein and (C) such Tax Indemnitee's failure to file
any form, document or certificate within thirty (30) days following notice by
Lessee to such Tax Indemnitee that such form, document or certificate is
required to be filed in order to avoid or mitigate applicability of such Tax;

          (d) Taxes (including excess taxes) incurred as the result of any
voluntary or involuntary transfer or Financing by Lessor or any other Tax
Indemnitee of any interest in the Aircraft, any part thereof, this Lease or any
Operative Document, the Trust Estate or in the Lessor or any Tax Indemnitee
except following (w) an Event of Default in the exercise of remedies, (x) the
exercise of the Purchase Option pursuant to the Lease, (y) the substitution,
replacement, modification, pooling or improvement of the Aircraft or any part
thereof pursuant to Article IX of the Lease, or (z) an Event of Loss;

          (e) Taxes incurred by any Tax Indemnitee because of a Lessor's Lien or
the gross negligence or willful misconduct of such Tax Indemnitee or the breach
or inaccuracy of any representation, warranty or covenant of such Tax Indemnitee
in this Lease or any other Operative Document;

          (f) Taxes attributable to acts or events occurring after the
redelivery of the Aircraft to the Lessor, except to the extent fairly
attributable to acts or events occurring prior thereto;

          (g) Taxes imposed against a transferee of a Tax Indemnitee to the
extent of the excess of such Taxes over the amount of such Taxes which would
have been imposed had there not been a transfer by an original Tax Indemnitee of
any interest of such Tax Indemnitee in the Aircraft, the Trust Estate, or the
Operative Documents;

          (h) Taxes for which the Lessee is obligated to indemnify the
Beneficiary under the Tax Indemnity Agreement;

          (i) United States withholding taxes imposed on payments to a foreign
person (other than any such withholding taxes imposed on payments to Aero);

          (j) Taxes imposed with respect to any fees received by or the Owner
Trustee;

          (k) interest, penalties, fines or additions to tax to the extent they
relate to Taxes for which no indemnity would be payable by the Lessee pursuant
to this Section 1.02;

          (l) Taxes imposed by section 4975 of the Code; or

          (m) Taxes arising from or attributable to the like-kind exchange
transaction described in Section 10(b)(vi) of the Purchase Agreement to the
extent such Taxes exceed the amount of Taxes that would have been imposed in the
absence of such like-kind exchange transaction.

     Section 1.03 CONTESTS. If a claim is made against a Tax Indemnitee for
Taxes with respect to which Lessee is liable for a payment or indemnity under
this Lease, such Tax Indemnitee will promptly give Lessee notice in writing of
such claim; PROVIDED, HOWEVER, that such Tax Indemnitee's failure to give notice
will not relieve Lessee of its obligations hereunder except to the extent that
such failure actually or

                                        2
<Page>

effectively (i) results in the imposition of penalties or interest by the
applicable taxation authority or (ii) has a material adverse impact upon
Lessee's right to contest such Taxes in accordance with this Section 1.03. So
long as (i) a contest of such Taxes does not involve any material danger of the
sale, forfeiture, seizure or loss of the Aircraft or any interest therein
(except if the Lessee shall have adequately bonded any Lien that results in such
risk or otherwise made adequate provision to protect the interests of the Tax
Indemnitees), (ii) adequate reserves have been provided for such Taxes by Lessee
or, if required by applicable law, an adequate bond has been posted, (iii) in
the event the Tax Indemnitee decides after consultation with the Lessee to pay
the Tax prior to the contest, the Lessee shall have provided to the Tax
Indemnitee an interest-free advance in an amount equal to the Tax which the Tax
Indemnitee is required to pay, and (iv) no Event of Default described in clauses
(a), (b), (g), (h), (i), or (j) of Section 17.01 of the Lease shall have
occurred and be continuing, then such Tax Indemnitee at Lessee's written request
will in good faith, with due diligence and at Lessee's expense (including paying
the reasonable legal and accounting fees of such Tax Indemnitee), contest (or
permit Lessee to contest its own name if permitted by applicable Law or in the
name and on behalf of such Tax Indemnitee) the validity, applicability or amount
of such Taxes.

Section 1.04 TAX OBLIGATIONS AND AFTER-TAX BASIS OF PAYMENTS. Notwithstanding
any other provision anywhere contained in the Operative Documents, it is
understood that all of the Lessee's obligations with respect to taxes are set
forth in this Exhibit G (and Section 1.04 of Exhibit H to the Lease to the
extent that payments by the Lessee thereunder are required to be made on an
"after-tax basis") and in the Tax Indemnity Agreement, and if the Lessee shall
be required under any provision of the Operative Documents to pay any tax
imposed upon any Tax Indemnitee or with respect to a payment made by the Lessee
under the Operative Documents for which the Lessee is not responsible under this
Exhibit G, Section 1.04 of Exhibit H to the Lease or the Tax Indemnity
Agreement, it shall be entitled to prompt reimbursement of such amount from the
party whose tax liability was paid. Notwithstanding anything in this Exhibit G
to the contrary, Lessee further agrees that, with respect to any indemnity
payment hereunder, such indemnity payment shall include any amount necessary to
hold the recipient of the indemnity payment harmless on a net after-tax basis
(after taking into account all relevant Tax benefits and savings whether by way
of deduction, credit, allocation, apportionment or otherwise, realized or,
except in the case of foreign tax credits, the present value of such Tax
benefits and savings expected to be realized) from all Taxes required to be paid
by such recipient with respect to such indemnity payment, so that such recipient
shall receive an amount which, net of any Taxes required to be paid or withheld
by (or for the account of) such recipient in respect of such amount, and taking
into account the aforementioned tax benefits and savings, shall be equal to the
amount of indemnity payment otherwise required hereunder.

     All computations for the purposes hereof shall be based on tax rates in
effect on the date payment pursuant to this Section is made. Computations
involving the loss of use of money or calculations of present value shall be
based on the Treasury Rate, as adjusted for applicable income tax effects and
compounded semiannually.

     If any Tax Indemnitee or Indemnitee shall realize a tax benefit not taken
into account in the preceding paragraph in the form of a deduction or foreign
tax credit against United States income tax liability, as a result of any claims
or Taxes paid or indemnified against by the Lessee under Section 1.04 of Exhibit
H to the Lease or this Exhibit G (whether by way of deduction, credit,
allocation or apportionment of income or otherwise), such Tax Indemnitee or
Indemnitee shall pay to the Lessee an amount which, after subtraction of any
further tax savings such Tax Indemnitee or Indemnitee realizes as a result of
the payment thereof, is equal to the amount of such tax benefit; PROVIDED, in
calculating the amount of any credits against United States Federal income taxes
realized by the Tax Indemnitee with respect to foreign Taxes, it shall be
assumed that (i) to the extent Tax Indemnitee's ability to utilize foreign tax
credits to reduce its liability for United States Federal taxes is actually
increased by reason of

                                        3
<Page>

net foreign source taxable income attributable to the transaction contemplated
by the Operative Documents, the foreign tax credit generated with respect to the
foreign income tax for which the Lessee is obligated to make an indemnity
payment hereunder shall be deemed to be utilized prior to any other foreign tax
credit of the Tax Indemnitee; (ii) except as provided in the preceding clause
(i), any foreign tax credit not described in the succeeding clauses (iii) and
(iv) shall be deemed to be utilized prior to any foreign tax credit attributable
to the Lessee; (iii) any foreign tax credit generated by Lessee shall be
utilized ahead of any credit generated by another lessee of the Beneficiary with
respect to whom the Beneficiary has a contractual obligation to pay over the
benefits arising therefrom on a basis that assumes that such credits shall be
utilized after all other credits available to the Beneficiary have been
utilized, and (iv) except as provided in clause (i), any foreign tax credit
generated by the Lessee shall be utilized on a PARI PASSU basis with all other
credits generated in connection with any other leases of the Beneficiary not
described in clause (iii) and with respect to whom the Beneficiary does not have
a contractual obligation to pay over the benefits arising therefrom on a basis
that assumes that such credits shall be utilized ahead of all other credits of
the Beneficiary. Each payment made by any Tax Indemnitee or Indemnitee to the
Lessee pursuant to this paragraph shall be made within 30 days after the
respective Tax Indemnitee or Indemnitee files a tax return (including estimated
returns) which reflects the tax benefits described in the prior sentence.

     Section 1.05 REPORTS. In case any report or return is required to be made
with respect to any Taxes (other than income Taxes) that are an obligation of
Lessee hereunder or for which an indemnification obligation may arise under this
Exhibit G, Lessee will, to the extent it has knowledge thereof make such report
or return in such manner that is not inconsistent with the ownership of the
Aircraft and the Engines in Lessor, and, upon request, send a copy of the
applicable portions of such report or return to Lessor. In addition, the Tax
Indemnitees shall furnish Lessee, at Lessee's written request and expense, with
any information in Tax Indemnitee's possession or control (and not within the
control of Lessee) that is reasonably necessary to make any tax filing, report
or return (but no Tax Indemnitee shall be required to furnish its tax return,
although it may be required to furnish information contained therein).

     Section 1.06 REFUNDS. Upon receipt by a Tax Indemnitee of a refund or
credit of all or any part of any Taxes that Lessee has paid or for which the
Lessee has reimbursed or indemnified the Tax Indemnitee, such Tax Indemnitee
will promptly pay to Lessee the net amount of such Taxes refunded or credited,
after taking into account any net Tax benefit, and interest received or credited
thereto.

     Section 1.07 SURVIVAL. All the obligations under this Exhibit G shall
survive the assignment (subject to the limitations in Section 1.02), expiration
or other termination of this Lease and the Operative Documents.

     Section 1.08 PAYMENT PROCEDURES. Any amount payable to a Tax Indemnitee
pursuant to this Exhibit G shall be paid within 30 days after receipt of a
written demand therefor from such Tax Indemnitee accompanied by a written
statement describing in reasonable detail the basis for such indemnity and the
computation of the amount so payable, provided that such amount need not be paid
prior to the later of (i) 1 business day prior to the date that the
indemnifiable Taxes are due or (ii) in the case of amounts which are being
contested by the Lessee in good faith or by the Tax Indemnitee pursuant to
Section 1.03, the time such contest is finally resolved. Within 15 days
following the Lessee's receipt of the computation of the amount of the
indemnity, the Lessee may request that an accounting firm to be jointly selected
by the Lessee and such Tax Indemnitee (but not including the accounting firm
that regularly prepares the certified financial statements of the Lessee or such
Tax Indemnitee unless such firm consists of one of the "Big 5" accounting firms
in which case such firm shall be deemed acceptable to the parties) determine
whether such computations of the Tax Indemnitee are correct. The computations

                                        4
<Page>

of such accounting firm shall be final, binding and conclusive upon the parties
and the Lessee shall have no right to inspect the books, records or tax returns
of the Tax Indemnitee to verify such computation. All fees and expenses payable
in connection with such verification shall be borne by the Lessee unless such
verification discloses an error adverse to the Lessee of more than 5% of the
amount computed by the Tax Indemnitee, in which case such fees and expenses
shall be paid by the Tax Indemnitee.

     Section 1.09 NON-SIGNATORIES. As a condition precedent to any performance
by the Lessee in connection with any indemnity, payment or other obligation
pursuant to this Exhibit G with respect to any Person claiming as a Tax
Indemnitee which is not a signatory to this Lease, such Person shall expressly
agree in writing with the Lessee to be bound by all the terms of this Exhibit G
and this Lease applicable to such Person in its capacity as a Tax Indemnitee.

                                        5
<Page>

                                                                       EXHIBIT H

                                GENERAL INDEMNITY

     Section 1.01 GENERAL INDEMNITY. Except as otherwise expressly set forth in
Section 1.03, Lessee agrees to indemnify, reimburse, hold harmless and defend
each Indemnitee from and against any and all claims, damages, losses,
liabilities, demands, suits, judgments, causes of action, legal proceedings,
whether civil or criminal, penalties, fines and other sanctions, and any
reasonable attorneys' fees and other reasonable costs and expenses in connection
herewith, (including any of the foregoing arising or imposed with or without
fault of any Indemnitee, or under the doctrine of absolute or strict liability)
and including any third party claims arising from or in any way connected with
injury to or death of any Person or loss or damage to property (any and all of
which are hereafter referred to as "CLAIMS") which in any way result from,
pertain to or arise out of, or are in any manner related to (a) the Lease, any
other Operative Document or the Manufacturer Purchase Agreement or the breach of
any representation, warranty or covenant made by Lessee hereunder, thereunder or
in any document delivered by Lessee in connection herewith or therewith, or (b)
the condition, ownership, manufacture, purchase, delivery, lease, sublease,
acceptance, possession, return, disposition, use, operation, maintenance,
repair, alteration or control of the Aircraft, the Airframe, any Engine or any
Part, either in the air or on the ground during the Term, or (c) any defect in
the Aircraft, any Engine or any Part (whether or not discovered or discoverable
by Lessee or Lessor) arising from the material or any articles used therein or
from the design, testing, or use thereof or from any maintenance, service,
repair, overhaul, or testing of the Aircraft, any Engine or any Part, whether or
not the Aircraft, such Engine or such Part is in the possession of Lessee, and
regardless of where the Aircraft, such Engine or such Part may then be located,
or (d) any transaction, approval, or document contemplated by the Lease, any
Operative Document or the Manufacturer Purchase Agreement or given or entered
into in connection herewith or therewith. Lessee shall be subrogated to all
rights and remedies that any Indemnitee may have against the Manufacturer and
its subcontractors or any other person as to any such Claims, but only to the
extent that Lessee has paid in full to such Indemnitee the amount claimed by it
hereunder with respect to such Claims.

     Section 1.02 LESSEE WAIVER AND LIMITATION OF LIABILITY. Except as expressly
set forth in Section 1.03, Lessee hereby waives and releases each Indemnitee
from any Claims (other than Claims attributable to or arising out of the willful
misconduct or gross negligence of such Indemnitee), whether existing now or
hereafter arising, for or on account of or arising out of or in any way
connected with injury to or death of personnel of Lessee or loss or damage to
property of Lessee or the loss of use of any property that may result from or
arise in any manner out of or in relation to the ownership, leasing, condition,
use or operation of the Aircraft, in the air or on the ground, or that may be
caused by any defect in the Aircraft, from the material or any article used
therein or from the design or testing thereof, or use thereof, or from any
maintenance, service, repair, overhaul or testing of the Aircraft regardless of
when such defect may be discovered, whether or not the Aircraft is at the time
in the possession of Lessee, and regardless of the location of the Aircraft at
any such time.

     Section 1.03 EXCEPTIONS. Notwithstanding anything to the contrary herein,
the indemnity provided for in Section 1.01 will not extend to any Claim of any
Indemnitee to the extent it:

          (a) is attributable to acts or events occurring after the redelivery
of the Aircraft to Lessor, except to the extent fairly attributable to acts or
events occurring prior thereto;

<Page>

          (b) is directly attributable to the gross negligence or willful
misconduct of such Indemnitee or the breach or inaccuracy of any representation,
warranty or covenant of such Indemnitee in the Lease or in any other Operative
Document;

          (c) other than as expressly provided in Section 1.04 of this Exhibit
H, is a Tax or loss of a Tax benefit, whether or not the Lessee is required to
indemnify therefor pursuant to Article XIV hereof or pursuant to the Tax
Indemnity Agreement;

          (d) is a cost or expense expressly required to be paid by such
Indemnitee or its permitted transferees (and not by the Lessee) pursuant to the
Lease or any other Operative Document and for which the Lessee is not otherwise
obligated to reimburse such Indemnitee, directly or indirectly pursuant to the
terms of the Lease or such other Operative Document;

          (e) is, in the case of the Beneficiary, Lessor's Liens attributable to
the Beneficiary; in the case of the Owner Trustee, Lessor's Liens to the extent
attributable to the Owner Trustee; in the case of WFB, Lessor's Liens to the
extent attributable to WFB; in the case of a Financing Party, Lessor's Liens to
the extent attributable to such Financing Party;

          (f) is, in the case of the Beneficiary or the Owner Trustee,
attributable to the sale by such Indemnitee of any interest in the Aircraft, the
Beneficial Interest or any similar interest (including a sale resulting from
bankruptcy or other proceedings for the relief of debtors in which such
Indemnitee is the debtor and which is not caused by the Default of the Lessee),
unless in each case such sale shall occur pursuant to the exercise of remedies
under Section 17.02 hereof or following the occurrence of an Event of Default;

          (g) in the case of the Beneficiary, is a Claim relating to, resulting
from, arising out of or in connection with a "prohibited transaction" within the
meaning of Section 406 of ERISA or Section 4975(c)(1) of the Code resulting from
the direct or indirect use of assets of any ERISA Plan to acquire or hold
Beneficiary's interest in the Trust Estate or in the case of any transferee of
the Beneficiary referred to in Section 10(b)(v) of the Purchase Agreement, to
purchase the Beneficial Interest pursuant to Section 10(b)(v) of the Purchase
Agreement;

          (h) except during the continuation of an Event of Default, is
attributable to any amendment to any of the Operative Documents which is not
requested, or consented to, by the Lessee or is not required or made pursuant to
the terms of any of the Operative Documents;

          (i) constitutes the loss of future profits of such Indemnitee or
losses attributable to such Indemnitee's overhead; or

          (j) arises from or is attributable to the like-kind exchange
transaction described in Section 10(b)(vi) of the Purchase Agreement to the
extent such Claim exceeds the amount of Claim that would have been imposed in
the absence of such like-kind exchange transaction.

     Section 1.04 AFTER-TAX BASIS OF PAYMENTS. Lessee further agrees that, with
respect to any payment or indemnity hereunder, such payment or indemnity shall
include any amount necessary to hold the recipient of the payment or indemnity
harmless on a net after-tax basis from all Taxes required to be paid by such
recipient or otherwise withheld with respect to such payment or indemnity (after
taking into account all related Tax benefits and savings), subject to, and
calculated in accordance with, Sections 1.05 and 1.09 of EXHIBIT H to the Lease,
MUTATIS MUTANDIS.

                                        2
<Page>

     Section 1.05 PAYMENTS. Any amount payable as an indemnity to any Indemnitee
by Lessee pursuant to this Exhibit H is to be paid to such party directly, in
immediately available funds, by bank wire transfer at such bank or to such
account as specified by the payee in written directions to Lessee, within thirty
(30) days after receipt of a written demand therefor from such Indemnitee (or,
if such indemnity is payable from insurance proceeds, promptly after timely
receipt of such insurance proceeds).

     Section 1.06 REFUNDS. If any Indemnitee obtains a recovery of all or any
part of any indemnity amount that Lessee has paid in full to such Indemnitee,
such Indemnitee will promptly pay to Lessee the net amount recovered by such
Indemnitee, together with any tax benefit actually realized in connection
therewith, PROVIDED no Specified Default is then continuing. If any Indemnitee
is subsequently obligated to repay all or any portion of any such recovery, then
Lessee shall, upon demand by Lessor, repay to Lessor any amounts paid in respect
thereof by Lessor pursuant to this Section 1.06.

     Section 1.07 DEFENSE OF CLAIMS. Unless an Event of Default has occurred and
has not been waived by Lessor, Lessee and its insurers will have the right (in
each such case at Lessee's sole expense) to investigate, defend or compromise
any claim for which indemnification is sought as provided in this Section 1.07
(so long as Lessee has agreed in writing reasonably acceptable to the relevant
Indemnitee that Lessee is liable to such Indemnitee for any Claims relating to
or arising out of the Claim for which indemnification is sought, PROVIDED that
Lessee will not be so liable to the extent that it is determined that one or
more of the exclusions contained in Section 1.03 would be applicable to such
Claim), and each Indemnitee will cooperate with Lessee and its insurers with
respect thereto. If a claim is made against an Indemnitee involving one or more
Claims and such Indemnitee has notice thereof, such Indemnitee shall promptly
after receiving such notice give notice of such Claim to Lessee; PROVIDED that
the failure to give such notice shall not affect the obligations of Lessee
hereunder except to the extent Lessee is prejudiced by such failure or the
Lessee's indemnification obligations are increased as a result of such failure.
If no Specified Default shall have occurred and be continuing, Lessee shall be
entitled, at its sole cost and expense, acting through counsel reasonably
acceptable to the respective Indemnitee, (A) in any judicial or administrative
proceeding that involves solely a claim for one or more Claims, to assume
responsibility for and control thereof, (B) in any judicial or administrative
proceeding involving a claim for one or more Claims and other claims related or
unrelated to the transactions contemplated by the Operative Documents, to assume
responsibility for and control of such claim for Claims to the extent that the
same may be and is severed from such other claims (and such Indemnitee shall use
its best efforts to obtain such severance), and (C) in any other case, to be
consulted by such Indemnitee and to be allowed, at Lessee's sole expense, to
participate therein. Notwithstanding any of the foregoing to the contrary,
Lessee shall not be entitled to assume responsibility for and control of any
such judicial or administrative proceedings or compromise any claim if such
proceedings or compromise will involve a material risk of the sale, forfeiture
or loss of, or the creation of any Lien (other than a Permitted Lien) on, the
Aircraft, the Beneficial Interest or any part thereof unless in such an event
Lessee shall have posted a bond or other security satisfactory to the relevant
Indemnitees in respect to such risk. The Indemnitee may participate at its own
expense and with its own counsel in any judicial proceeding controlled by Lessee
pursuant to the preceding provisions.

     Section 1.08 SURVIVAL. All the obligations of Lessee under this Exhibit H
shall survive the assignment, expiration or other termination of the Lease. Such
obligations are expressly undertaken by Lessee for the benefit of, and shall be
enforceable directly by, Lessor and each other Indemnitee, provided that if an
Indemnitee is not a party to the Lease, Lessee may require such Indemnitee to
agree in writing, in a form reasonably acceptable to Lessee, to the terms of
this Exhibit H prior to making any payment to such Indemnitee hereunder.

<Page>

                 PURCHASE AGREEMENT ASSIGNMENT NO. 2 - (N288SK)

         PURCHASE AGREEMENT ASSIGNMENT NO. 2 - (N288SK), dated as of June 29,
2001 (this "Assignment"), among (1) AERO LTD., a Cayman Islands corporation
("Assignor"), (2) Wells Fargo Bank Northwest, National Association ("WFB"), not
in its individual capacity but solely as Owner Trustee under Trust Agreement
(N288SK) dated as of the date hereof ("Trust Agreement") between Mitsui & Co.
(U.S.A.), Inc. ("Beneficiary") and WFB ("Assignee"), and (3) Chautauqua
Airlines, Inc., a New York corporation ("Lessee").

         WHEREAS, Solitair Corp. as buyer, and EMBRAER-Empresa Brasileira de
Aeronautica S.A., a corporation organized under the laws of Brazil
("Manufacturer"), have entered into the Purchase Agreement, pursuant to which,
among other things, Manufacturer has agreed to manufacture and sell to Solitair
Corp. and it has agreed to purchase from Manufacturer, certain aircraft,
including the Aircraft (each such capitalized term is as defined in the Purchase
Agreement Assignment No. 1 described below).

         WHEREAS, immediately prior to the execution and delivery of this
Assignment, Solitair Corp. as assignor and Assignor as assignee are entering
into the Purchase Agreement Assignment No. 1 - (N288SK) dated as of even date
herewith (the "Purchase Agreement Assignment No. 1"), pursuant to which, among
other things, Solitair Corp. is assigning to Assignor certain of its right,
title and interest in, to and under the Purchase Agreement including, without
limitation, the right to purchase the Aircraft from Manufacturer upon and
subject to the terms and conditions set forth in the Purchase Agreement and the
Purchase Agreement Assignment No. 1; and

         WHEREAS, Assignor desires to sell and transfer to Assignee all of its
present and future rights, title, obligations and interest in, to and under the
warranties and indemnities under the Purchase Agreement that are described in
clause (y) of the definition of the Purchase Agreement in the Purchase Agreement
Assignment No. 1 (the "Assigned Warranties");

         NOW, THEREFORE, in consideration of the foregoing premises and the
mutual covenants and agreements of the parties contained herein, and for other
good and valuable consideration, the receipt and adequacy of which is hereby
acknowledged, Assignor and Assignee agree as follows:

         Section 1. DEFINITIONS. Capitalized terms used but not defined herein
shall have the respective meanings set forth or incorporated by reference, and
shall be construed and interpreted in the manner described, in Purchase
Agreement Assignment No. 1.

         Section 2. TRANSFER AND ASSUMPTION. Assignor does hereby sell, assign
and transfer to Assignee all of Assigned Warranties and Assignee hereby accepts
the Assigned Warranties from Assignor. Assignor and Assignee agree that such
sale, assignment, transfer and acceptance is effective as of the date hereof.

         Assignor hereby acknowledges and consents to the assignment of
warranties with respect to the Aircraft by Assignee to Lessee pursuant to
Section 10.01 of the Lease. Notwithstanding anything in this Assignment to the
contrary, so long as no Event of Default

                                       1
<Page>

shall have occurred and the Lease shall not have been terminated under Section
17.02 thereof, Lessee may, to the exclusion of Assignee, exercise in Lessee's
name the right to obtain any recovery or benefit resulting from the enforcement
of any of the Assigned Warranties under the Purchase Agreement in respect of the
Aircraft subject to the terms of the Lease and may exercise all other rights and
powers of the "Buyer" with respect to the Assigned Warranties and may, without
the consent of the Assignee, enter into amendments or modifications thereof.

         Manufacturer shall not be deemed to have knowledge of, and need not
recognize the occurrence or discontinuance of, any Event of Default under, or
termination of, the Lease, unless and until Manufacturer has received written
notice thereof from Assignee addressed to Manufacturer, to its Director of
Contracts by mail to EMBRAER-Empresa Brasileira de Aeronautica S.A., Av.
Brigadeiro Faria Lima, 2170, 12.227-901 Sao Jose dos Campos-SP, Brazil, or by
telecopy to telecopy no.: (55-123) 45-1257, and, in acting in accordance with
the terms and conditions of the Purchase Agreement and this Assignment,
Manufacturer may act with acquittance and conclusively rely upon any such
notice. If Manufacturer so receives notice from Assignee that an Event of
Default shall have occurred and the Lease shall have been terminated under
Section 17.02 thereof, Manufacturer will perform all the duties and obligations
under the Purchase Agreement with respect to the Assigned Warranties for the
benefit of Assignee and will make any and all payments that it thereafter is
required to make in respect of the Assigned Warranties directly to Assignee at
the account or location as Assignee from time to time notifies Manufacturer in
writing.

         Section 3. In accordance with the Purchase Agreement, the assignment
herein is subject to the following conditions:

                  (a) Assignee is not and will not be owned, effectively
         controlled or managed by any airframe manufacturer which competes with
         Manufacturer in the thirty-seven (37) to seventy (70) seat turbo jet
         market; and

                  (b) In the event Assignee subsequently transfers the Aircraft
         and/or any of Assignee's remaining rights to the Assigned Warranties
         with respect to the Aircraft, to any other entity, Assignee agrees to
         notify Manufacturer of the identity of such entity at least thirty (30)
         calendar days prior to such transaction (provided that if Assignee
         fails to notify Manufacturer within this time, Assignee may not assign
         its remaining rights without Manufacturer's consent, which shall not be
         unreasonably withheld) and provide Manufacturer with prior written
         notice of any events under such agreement that would cause any rights
         thereby assigned to revert to Assignee under such agreement; provided,
         however, that, pursuant to the Purchase Agreement, Assignee shall not
         transfer the Aircraft to an entity which is owned, effectively
         controlled or managed by any airframe manufacturer which competes with
         Manufacturer in the thirty-seven (37) to seventy (70) seat turbo jet
         market.

         Section 4. Anything herein contained to the contrary notwithstanding:

                  (a) Neither Assignee nor Beneficiary shall have any obligation
         or liability under the Purchase Agreement by reason of, or arising out
         of, this Assignment, or be obligated to perform any of Assignor's
         duties or obligations under the Purchase Agreement, to make any
         payment, to present or file any claim, or to take any other action to
         collect or enforce any claim for any payment assigned hereunder;

                                       2

<Page>

                  (b) Assignee confirms, for Manufacturer's benefit, that in
         exercising any rights under the Purchase Agreement or in making any
         claim with respect to the Aircraft or other goods and services
         delivered or to be delivered pursuant to the Purchase Agreement, the
         terms and conditions of the Purchase Agreement shall apply to and bind
         Assignee (and any assignee of Assignee) to the same extent as Assignor;
         and

                  (c) Except as stated herein, nothing contained herein shall
         subject Manufacturer or Assignor to any liability to which it, as the
         case may be, would not otherwise be subject under the Purchase
         Agreement or modify in any respect the rights of Manufacturer or
         Assignor thereunder.

         Section 5. NOTICES. Any notices provided for in the Purchase Agreement
Assignment No. 1 shall be delivered to Assignee and Lessee at the following
address or such other place as Assignee or Lessee, as the case may be, may
designate in accordance with the Purchase Agreement Assignment No. 1:

         (a)      if to Assignee to:

                  Wells Fargo Bank Northwest, National Association
                  MAC: U1254-031
                  79 South Main Street, 3rd Floor
                  Salt Lake City, Utah 84111
                  Tel: (801) 246-5630
                  Fax: (801) 246-5053
                  Attn: Corporate Trust Department

                  with a copy to:

                  Mitsui & Co. (U.S.A.), Inc.
                  200 Park Avenue
                  New York, New York 10166
                  Tel: (212) 878-4314
                  Fax: (212) 878-0979
                  Attn: General Manager, Aerospace, Marine and Motor Vehicle
                        Department

         (b)      if to Lessee to:
                  Chautauqua Airlines, Inc.
                  2500 S. High School Road
                  Indianapolis, Indiana 46241
                  Tel: (317) 484-6047
                  Fax: (317) 484-6060
                  Attn: President

                  with a copy to:

                  Wexford Capital LLC
                  411 West Putnam Avenue
                  Greenwich, Connecticut 06830
                  Tel: (203) 862-7000

                                       3

<Page>

                  Fax: (203) 862-7490
                  Attn: President

         Section 6. HEADINGS. The headings of the Sections herein are for
convenience of reference only and shall not define or limit any of the terms or
provisions hereof.

         Section 7. GOVERNING LAW. THIS ASSIGNMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK, UNITED STATES OF
AMERICA, WITHOUT REGARD TO CONFLICT OF LAWS RULES OTHER THAN SECTION 5-1401 OF
THE NEW YORK GENERAL OBLIGATIONS LAW.

         Section 8. WAIVER OF WARRANTIES. THE ASSIGNEE HEREBY WAIVES, RELEASES
AND RENOUNCES, ALL WARRANTIES, OBLIGATIONS AND LIABILITIES OF THE ASSIGNOR OTHER
THAN THE WARRANTY OF TITLE CONTAINED IN THE WARRANTY BILL OF SALE ISSUED OF EVEN
DATE HEREWITH BY THE ASSIGNOR TO THE ASSISGNEE, AND ASSIGNEE FURTHER WAIVES AND
RELEASES ALL OTHER RIGHTS, CLAIMS AND REMEDIES OF ASSIGNEE AGAINST ASSIGNOR
EXPRESS OR IMPLIED, ARISING BY LAW OR OTHERWISE, WITH RESPECT TO ANY
NON-CONFORMANCE OR DEFECT OR FAILURE OR ANY OTHER REASON IN ANY AIRCRAFT OR
OTHER THING DELIVERED UNDER THE PURCHASE AGREEMENT, INCLUDING DATA, DOCUMENT,
INFORMATION OR SERVICE, INCLUDING BUT NOT LIMITED TO:

         a.  ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS;

         b. ANY IMPLIED WARRANTY ARISING FROM COURSE OF PERFORMANCE, COURSE OF
DEALING OR USAGE OF TRADE;

         c. ANY OBLIGATION, LIABILITY, RIGHT, CLAIM OR REMEDY IN TORT, WHETHER
OR NOT ARISING FROM THE NEGLIGENCE OR OTHER RELATED CAUSES OF ASSIGNOR, WHETHER
ACTIVE, PASSIVE OR IMPUTED; AND

         d. ANY OBLIGATION, LIABILITY, RIGHT, CLAIM OR REMEDY FOR LOSS OF OR
DAMAGE TO ANY AIRCRAFT, FOR LOSS OF USE, REVENUE OR PROFIT WITH RESPECT TO ANY
AIRCRAFT OR FOR ANY OTHER DIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES.

         Section 9. COUNTERPARTS. This Assignment and the acknowledgment and
consent to be signed by the Manufacturer and any amendments, waivers, consents
or supplements hereto may be executed in any number of counterparts (or upon
separate signature pages bound together into one or more counterparts), each of
which when so executed shall be deemed to be an original, and all of which
counterparts, taken together, shall constitute one and the same instrument.

         Section 10. WFB is entering into this Assignment solely as Owner
Trustee under the Trust Agreement and not in its individual capacity and neither
WFB nor any entity acting as successor Owner Trustee or additional Owner Trustee
under the Trust Agreement shall be personally liable for, or for any loss in
respect of, any of the statements, representations, warranties, agreements or
obligations stated to be those of the Assignee hereunder, as to

                                       4

<Page>

which all interested parties shall look solely to the Trust Estate (as defined
in the Trust Agreement), except to the extent expressly provided otherwise in
the other Operative Documents (as defined in the Trust Agreement), PROVIDED
HOWEVER, that nothing in this Section 10 shall be construed to limit in scope or
substance the liability of WFB or any entity acting as successor Owner Trustee
or additional Owner Trustee under the Trust Agreement in its individual capacity
for the consequences of its own willful misconduct or gross negligence or (in
receiving, handling or remitting funds) its simple negligence, or the inaccuracy
or breach of its representations, warranties or covenants made in such capacity
in any other Operative Documents.

              [Remainder of the Page is Intentionally Left Blank.]

                                       5

<Page>

         IN WITNESS WHEREOF, Assignor and Assignee have caused this Purchase
Agreement Assignment No. 2 to be duly executed and sealed as of the day and year
first written above.

         AERO LTD., as Assignor

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

         WELLS FARGO BANK NORTHWEST, NATIONAL
         ASSOCIATION, not in its individual capacity but solely
         as Owner Trustee on behalf of Mitsui & Co. (U.S.A.), Inc., as Assignee

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

         CHAUTAUQUA AIRLINES, INC., as Lessee

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

                                       6

<Page>

                       Annex 1 to Purchase Agreement Assignment No. 2 - (N288SK)

                     CONSENT AND AGREEMENT No. 2 - (N288SK)

         The undersigned, EMBRAER-EMPRESA BRASILEIRA DE AERONAUTICA S.A., a
corporation organized and existing under the laws of Brazil, hereby acknowledges
notice of and consents to all of the terms (including without limitation the
assignment of the Assigned Warranties by Assignee to Lessee pursuant to Section
10.01 of the Lease) of the foregoing Purchase Agreement Assignment No. 2 -
(N288SK), dated as of June 29, 2001, among Aero Ltd., Wells Fargo Bank
Northwest, National Association, not in its individual capacity but solely as
Owner Trustee on behalf of Mitsui & Co. (U.S.A.), Inc. (the "Beneficiary") and
Chautauqua Airlines, Inc. (the "Lessee"), to the extent they relate to the
Manufacturer (herein called the "Assignment No. 2", the defined terms therein
being hereinafter used with the same meaning) and hereby confirms to the
Assignee and the Lessee that: (i) all representations, warranties, indemnities
and agreements of the Manufacturer under the Assigned Warranties with respect to
the Aircraft shall inure to the benefit of the Assignee to the same extent as if
originally named the "Buyer" therein, subject to the terms and conditions of the
Assignment No. 2, the Purchase Agreement and the Purchase Agreement Assignment
No. 1 -(N288SK) dated as of June 29, 2001 between Solitair Corp. and Assignor
("Assignment No. 1"); (ii) neither Assignee nor Beneficiary shall be liable for
any of the obligations or duties of Solitair Corp. or the Assignor under the
Purchase Agreement or Assignment No. 1, nor shall the Assignment No. 2 give rise
to any duties or obligations whatsoever on the part of the Assignee owing to the
Manufacturer except for Assignee's agreement to effect that in exercising any
rights under the Purchase Agreement as assigned by Assignment No. 1, or in
making any claims with respect to the Aircraft or other things (including
without limitation data, sale documents and services) delivered or to be
delivered pursuant to the Purchase Agreement as assigned by Assignment No. 1,
the terms and conditions of the Purchase Agreement as assigned by Assignment No.
1, shall apply to and be binding upon Assignee to the same extent as if Assignee
had been the original "Buyer" thereunder, and with respect to such agreement the
Manufacturer agrees that, anything contained in the Purchase Agreement or the
Assignment No. 2 to the contrary notwithstanding, so long as the Manufacturer
shall not have received notice that an Event of Default shall have occurred and
the Lease shall have been terminated under Section 17.02 thereof, the Assignee
shall not have any responsibility to the Manufacturer for failure to comply with
any of the terms of the Purchase Agreement as assigned by Assignment No. 1 with
respect to the Aircraft while subject to the terms of the Lease to Lessee so
long as the Assignee acts upon the written instructions of Lessee (to which
instructions the Manufacturer understands it shall have access on request);
provided that no person other than the Manufacturer shall have any rights
against the Assignee with respect to the undertaking and agreement set forth in
this clause (ii); (iii) the Manufacturer will continue to pay to the Lessee all
payments which the Manufacturer may be required to make in respect of the
Aircraft under the Purchase Agreement as assigned by Assignment No. 1 unless and
until the Manufacturer shall have received written notice addressed to its
Contracts Administrator, by mail to EMBRAER-Empresa Brasileira de Aeronautica
S.A., Av. Brigadeiro Faria Lima, 2170, 12.227-901 Sao Jose dos Campos, SP,
Brazil, or by telecopy to telecopy no.: (55-123) 45-1257, that an Event of
Default shall have occurred and the Lease shall have been terminated under
Section 17.02 thereof (which such notice from the Assignee shall be conclusive
proof thereof to the Manufacturer and as to which the Manufacturer shall have no
obligation to inquire), whereupon the Manufacturer will make any and all
payments and take any and all actions which it may be required thereafter to
make or take in respect of the Aircraft under the Purchase Agreement as assigned
by Assignment No. 1 and the Assigned Warranties which have been assigned under
the Assignment No. 2 directly to the

                                       1

<Page>

Assignee at its address at Wells Fargo Bank Northwest, National Association,
MAC: U1254-031,79 South Main Street, 3rd Floor, Salt Lake City, Utah 84111, Tel:
(801) 246-5630, Fax: (801) 246-5053, Attn: Corporate Trust Department, with copy
to Mitsui & Co. (U.S.A.), Inc., 200 Park Avenue, New York, New York 10166, Tel:
(212) 878-4314, Fax: (212) 878-0979, Attn: General Manager, Aerospace, Marine
and Motor Vehicle Department; and (iv) from and after the delivery of the
Aircraft and payment in full therefor as invoiced by the Assignor to the
Assignee on the Delivery Date, the Manufacturer will not assert any lien or
claim against the Aircraft or any part thereof arising with respect to or in
connection with any work or other services performed before the delivery and
acceptance of the Aircraft.

         The Manufacturer hereby represents and warrants that (A) the
Manufacturer is a corporation duly organized and existing in good standing under
the laws of Brazil, (B) the making and performance of the Purchase Agreement
have been duly authorized by all necessary corporate action on the part of the
Manufacturer, do not require any stockholder approval, do not contravene the
Manufacturer's By-Laws or any indenture, credit agreement or other contractual
agreement to which the Manufacturer is a party or by which it is bound, and the
making of the Purchase Agreement does not contravene any law binding on the
Manufacturer, (C) the making and performance of this Consent and Agreement have
been duly authorized by all necessary corporate action on the part of the
Manufacturer, do not require any stockholder approval and do not contravene any
law binding on the Manufacturer or contravene the Manufacturer's By-laws or any
indenture, credit agreement or other contractual agreement to which the
Manufacturer is a party or by which it is bound and (D) the Purchase Agreement
constituted as of the date thereof and at all times thereafter to and including
the date of this Consent and Agreement constitutes a binding obligation of the
Manufacturer enforceable against the Manufacturer in accordance with its terms
subject to: (i) the limitations of applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the rights of creditors
generally; and (ii) general principles of equity (regardless of whether such
enforceability is considered in -a proceeding in equity or at law), which
principles do not make the remedies available at law or in equity with respect
to the Purchase Agreement inadequate for the practical realization of the
benefits intended to be provided thereby and this Consent and Agreement is a
binding obligation of the Manufacturer enforceable against the Manufacturer in
accordance with its terms subject to: (a) the limitations of applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the
rights of creditors generally; and (b) general principles of equity (regardless
of whether such enforceability is considered in a proceeding in equity or at
law), which principles do not make the remedies available at law or in equity
which respect to this Consent and Agreement inadequate for the practical
realization of the benefits intended to be provided thereby.

         [The remainder of this page has been left blank intentionally.]

                                       2
<Page>

         THIS CONSENT AND AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE
OF NEW YORK, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, AS
APPLICABLE TO CONTRACTS BETWEEN CITIZENS OF THE STATE TO BE PERFORMED WHOLLY
WITHIN THAT STATE, AND WITHOUT REGARD TO CONFLICTS OF LAW RULES OTHER THAN
SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW.

         Dated as of June 29, 2001

                                   EMBRAER-EMPRESA BRASILEIRA
                                   DE AERONAUTICA S.A.

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

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

<Page>

NOTE TO EXHIBIT 10.32

The two additional Aircraft Purchase Agreements are substantially identical
in all material respects to the filed Aircraft Purchase Agreement except as
follows:

<Table>
<Caption>

------------------------------------- ----------------------------------- -----------------------------------
            TAIL NUMBER                          CLOSING DATE                     OWNER-PARTICIPANT

------------------------------------- ----------------------------------- -----------------------------------
<S>                                   <C>                                 <C>
N286SK                                           June, 2001                Mitsui & Co.
------------------------------------- ----------------------------------- -----------------------------------
N287SK                                           June, 2001                Mitsui & Co.
------------------------------------- ----------------------------------- -----------------------------------

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

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

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

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

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

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

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

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

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

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

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

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

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

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

------------------------------------- ----------------------------------- -----------------------------------
</Table><Page>
                                                                  Exhibit 10.33

                                                               EXECUTION VERSION

                        AIRCRAFT LEASE AGREEMENT [N288SK]

                                     between

                WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION
             not in its individual capacity, except as expressly set
                    forth herein, but solely as Owner Trustee

                                    as Lessor

                                       and

                            CHAUTAUQUA AIRLINES, INC.

                                    as Lessee

                            Dated as of June 5, 2001

   One Embraer EMB-145LR aircraft bearing manufacturer's serial no. 145461 and
                     United States registration mark N288SK
   and the two Rolls-Royce Allison AE 3007-A1P engines bearing serial numbers
                             CAE311866 and CAE311867

THIS AIRCRAFT LEASE AGREEMENT (THIS "LEASE") HAS BEEN EXECUTED IN SEVERAL
COUNTERPARTS. TO THE EXTENT, IF ANY, THAT THIS LEASE CONSTITUTES CHATTEL PAPER
(AS SUCH TERM IS DEFINED IN THE UNIFORM COMMERCIAL CODE AS IN EFFECT IN ANY
APPLICABLE JURISDICTION), NO SECURITY INTEREST HEREIN MAY BE CREATED THROUGH THE
TRANSFER OR POSSESSION OF ANY COUNTERPART HEREOF OTHER THAN THE ORIGINAL
COUNTERPART. THE COUNTERPART TO BE DEEMED THE ORIGINAL COUNTERPART SHALL BE THE
COUNTERPART THAT CONTAINS THE RECEIPT THEREFOR EXECUTED BY THE LESSOR ON THE
SIGNATURE PAGE THEREOF. SEE SECTION 20.04 FOR INFORMATION CONCERNING THE RIGHTS
OF THE HOLDERS OF THE VARIOUS COUNTERPARTS HEREOF.

                                    DUPLICATE
                     THIS IS NOT THE "ORIGINAL" COUNTERPART.

------------
Certain portions of this exhibit have been omitted pursuant to a request for
confidential treatment under Rule 406 of the Securities Act of 1933. The
omitted materials have been filed separately with the Securities and Exchange
Commission.

<Page>

                       AIRCRAFT LEASE AGREEMENT [ N288SK]

     This AIRCRAFT LEASE AGREEMENT [N288SK] is made as of June 5, 2001, between
WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION, a national banking association
organized and existing under the laws of the United States of America, not in
its individual capacity, except as expressly set forth herein, but solely as
Owner Trustee (in such capacity, the "LESSOR"), and CHAUTAUQUA AIRLINES, INC., a
New York corporation (the "LESSEE").

                                    RECITALS:

     WHEREAS, Lessee desires to lease from Lessor and Lessor is willing to lease
to Lessee the Aircraft upon and subject to the terms and conditions of this
Lease; and

     WHEREAS, the parties intend this Lease to constitute a true lease and not a
security agreement;

     NOW IT IS HEREBY AGREED as follows:

                                    ARTICLE I

                          DEFINITIONS AND CONSTRUCTION

     Section 1.01 DEFINITIONS. In this Lease, except as otherwise provided or
unless the context otherwise requires, the following terms shall have the
meanings set forth below:

     "ADDITIONAL INSURED" means the Owner Trustee (in its individual and trust
capacities), the Beneficiary and any Financing Party.

     "AERO" means Aero Ltd, a Cayman Islands corporation.

     "AERONAUTICAL AUTHORITY" means as of any time of determination, the FAA,
the JAA or other governmental airworthiness authority having jurisdiction over
the Aircraft or the Airframe and Engines or engines attached thereto under the
laws of the country in which the Airframe is then registered as provided in
Section 8.05.

     "AFFILIATE" means, with respect to any Person, any other Person directly or
indirectly controlling 50% or more of any class of voting securities of such
Person or otherwise controlling, controlled by or under common control with such
Person. For the purposes of this definition, "control" (including "controlled
by" and "under common control with") shall mean the power, directly or
indirectly, to direct or cause the direction of the management and policies of
such Person whether through the ownership of voting securities or by contract or
otherwise.

     "AIRCRAFT" means the Airframe described in EXHIBIT A-1 together with (a)
the Engines relating to such Airframe, whether or not installed on such
Airframe, (b) any and all Parts furnished with such Airframe and such Engines,
(c) all Aircraft Documents relating to such Airframe, Engines and Parts, and (d)
all substitutions, replacements and renewals of any and all thereof made
pursuant to the terms of this Lease title to which is, or is required pursuant
to this Lease to be, vested in Lessor.

     "AIRCRAFT DOCUMENTS" means all technical data, manuals, log books and
weight and balance sheets, and all inspection, modification and overhaul records
and other service, repair, maintenance, and

<Page>

technical records that are maintained with respect to the Aircraft, Airframe,
Engines, APU, landing gears or parts (including, without limitation, all
additions, renewals, revisions, and replacements of any such materials from time
to time made, or required to be made, in accordance with the Maintenance Program
and/or FAA regulations, and in each case in whatever form and by whatever means
or medium such materials may be maintained or retained by or on behalf of
Lessee, and including in any event the items identified in EXHIBIT B and
back-to-birth life limited Parts traceability records); PROVIDED, HOWEVER, that
all such material shall be maintained in the English language.

     "AIRCRAFT PRICE" has the meaning assigned to such term in the Purchase
Agreement.

     "AIRFRAME" means (i) the Embraer model EMB-145LR aircraft (excluding the
Engines and any other engines which may from time to time be installed thereon,
but including any and all Parts which may from time to time be incorporated in,
installed on or attached to such aircraft, and including any and all such Parts
removed therefrom so long as title to such removed Parts remains vested in the
Lessor under the terms of Article IX) originally delivered and leased hereunder,
identified by national registration number and manufacturer's serial number in
the Lease Supplement executed and delivered on the Delivery Date, so long as a
Replacement Airframe shall not have been substituted therefor pursuant to
Section 12.01, and (ii) a Replacement Airframe, so long as another Replacement
Airframe shall not have been substituted therefor pursuant to Section 12.01.

     "AIRWORTHINESS DIRECTIVE" or "AD" means any airworthiness directive issued
by the FAA and applicable to aircraft and engines of the same type as the
Aircraft and the Engines.

     "AMM" has the meaning assigned to such term in the definition "Maintenance
Program."

     "APPROVED INSURANCE BROKER" means an insurance broker meeting the
requirements set forth in Section 11.07(a)(iii).

     "APPROVED INSURER" means a reputable insurer of nationally or
internationally recognized responsibility and standing in aircraft insurances.

     "ASSIGNMENT NO. 1" means the Purchase Agreement Assignment No. 1 (N288SK),
dated as of June 29, 2001, between Seller and Aero, together with the Consent
and Agreement thereto dated as of June 29, 2001 executed and delivered by the
Manufacturer.

     "ASSIGNMENT NO. 2" means the Purchase Agreement Assignment No. 2 (N288SK)
dated as of June 29, 2001, between Aero and Lessor, together with the Consent
and Agreement thereto dated as of June 29, 2001 executed and delivered by the
Manufacturer and the guarantee executed and delivered by the Manufacturer of
Aero's obligations thereunder in favor of Lessor, Lessee and Seller.

     "BANKRUPTCY CODE" means the United States Bankruptcy Code (11 U.S.C.
Section.101 ET SEQ.) as amended from time to time, or any similar legislation of
the United States enacted to supersede, amend, or supplement such Bankruptcy
Code (and any reference to a provision of the Bankruptcy Code shall refer to any
successor provision(s), however designated).

     "BASIC TERM" means the period commencing on the Delivery Date and ending on
but excluding the Expiration Date, or such earlier date on which this Lease
shall be terminated as provided therein.

     "BENEFICIAL INTEREST" means all right, title and interest of the
Beneficiary in, to and under the Trust Agreement.

                                        2
<Page>

     "BENEFICIARY" means Mitsui & Co. (U.S.A.), Inc., a New York corporation.

     "BENEFICIARY GUARANTOR" means the provider of a Beneficiary Guaranty.

     "BENEFICIARY GUARANTY" means any guaranty delivered or to be delivered to
support the obligations of the Beneficiary under the Operative Documents in
connection with the transfer by the Beneficiary of the Beneficial Interest.

     "BILL OF SALE" means the warranty bill of sale relating to the Aircraft
delivered to Lessor pursuant to the Purchase Agreement.

     "BUSINESS DAY" means a day other than a Saturday or a Sunday and other than
a day on which banking institutions in Indianapolis, Indiana or New York, New
York are required or authorized by law or order to be closed.

     "C CHECK" shall mean any inspection and related maintenance procedures
designated as such by Lessee.

     "CITIZEN OF THE UNITED STATES" means a citizen of the United States as
defined in Section. 40102(a)(15) of the Federal Aviation Act, or any analogous
part of any successor or substituted legislation or regulation at the time in
effect.

     "CLAIMS" has the meaning set forth in Section 1.01 of EXHIBIT H.

     "CLOSING DOCUMENTS" means each of the documents listed in EXHIBIT E.

     "CODE" means the United States Federal Internal Revenue Code of 1986, as
amended from time to time, or any similar legislation of the United States
enacted to supersede, amend, or supplement such Code (and any reference to a
provision of the Code shall refer to any successor provision(s), however
designated).

     "CPCP" has the meaning assigned to such term in the definition "Maintenance
Program."

     "CYCLE" means one take-off and landing of the Aircraft or any aircraft on
which the part or engine in question may at any time be installed.

     "DEFAULT" means an event or condition that is, or with the lapse of time,
the giving of notice, the making of any determination or the fulfillment of any
condition would constitute, an Event of Default.

     "DELIVERY" means the delivery of the Aircraft to and the acceptance of the
Aircraft by Lessee for the purposes of this Lease, as evidenced by the execution
and delivery by the Lessee of the Delivery Acceptance Certificate.

     "DELIVERY ACCEPTANCE CERTIFICATE" means a Delivery Acceptance Certificate,
dated the Delivery Date, in substantially the form of EXHIBIT C.

     "DELIVERY DATE" means the date on which Delivery of the Aircraft occurs, as
evidenced by the delivery by Lessee to Lessor of the Delivery Acceptance
Certificate.

     "DELIVERY LOCATION" means Sao Jose dos Campos, Sao Paulo, Brazil or such
other location in the United States as Lessor and Lessee may mutually agree.

                                        3
<Page>

     "DOLLARS" and "$" means the lawful currency of the United States of
America.

     "ENGINE" means (i) each of the two Allison model AE3007A1P engines
originally delivered and leased under this Lease, identified by manufacturer's
serial number in the Lease Supplement executed and delivered on the Delivery
Date, so long as a Replacement Engine shall not have been substituted therefor
pursuant to Section 12.02, and (ii) a Replacement Engine, so long as another
Replacement Engine shall not have been substituted therefor pursuant to Section
12.02, whether or not such engine or Replacement Engine, as the case may be, is
from time to time installed on the Airframe or installed on any other aircraft,
and including in each case all Parts incorporated or installed in or attached
thereto and any and all Parts removed therefrom so long as title to such Parts
remains vested in the Lessor under the terms of Article IX. The term "ENGINES"
means, as of any date of determination, the two engines each of which is an
Engine on that date.

     "ENGINE MANUFACTURER" means Rolls-Royce Corporation, a Delaware
corporation.

     "ENGINE WARRANTY AGREEMENT" means the Rolls-Royce AE3007A Series Engine
Warranty Agreement made effective as of April 30, 1999, among the Engine
Manufacturer, Seller and the Lessee, as amended and supplemented from time to
time.

     "ENGINE WARRANTY ASSIGNMENT AND CONSENT" means the Warranty Assignment
Agreement and Consent [N288SK] dated as of June 5, 2001, between Seller and
Lessor and consented to by the Engine Manufacturer.

     "EQUIVALENCY PAYMENT" has the meaning specified in EXHIBIT D-1 or EXHIBIT
D-2, as applicable.

     "ERISA" means the Employee Retirement Income Security Act of 1974 and any
regulations and rulings issued thereunder all as amended and in effect from time
to time.

     "ERISA PLAN" means, individually or collectively, an employee benefit plan,
as defined in Section 3(3) of ERISA, which is subject to Title I of ERISA or any
applicable regulation thereunder or a plan or individual retirement account
which is subject to Section 4975(c) of the Code;

     "EVENT OF DEFAULT" means any event specified in Section 17.01.

     "EVENT OF LOSS" means any of the following events with respect to the
Aircraft, the Airframe or any Engine whether or not installed on the Airframe
(except for an Engine that has been replaced by a Replacement Engine):

          (a) loss of such property or its use due to theft, hijacking or
     disappearance for a period in excess of sixty (60) consecutive days, or in
     any event extending beyond the Term;

          (b) destruction, damage beyond economic repair or rendition of such
     property permanently unfit for normal use for any reason whatsoever;

          (c) any damage to such property which results in an insurance
     settlement with respect to such property on the basis of a total loss or on
     the basis of a compromised or constructive total loss;

          (d) the condemnation, confiscation, appropriation or seizure of, or
     requisition of title to such property by any Governmental Entity or
     purported Governmental Entity;

                                        4
<Page>

          (e) the condemnation, confiscation, appropriation or seizure of the
     use of such property by or on the authority of any Governmental Entity or
     purported Governmental Entity, that in any such case shall have resulted in
     the loss of possession thereof by Lessee for a period in excess of sixty
     (60) consecutive days for any Governmental Entity other than a United
     States Entity and one hundred eighty (180) days for any United States
     Entity (or in either case for such shorter period ending on the date that
     is seven (7) days from the date of receipt of an insurance settlement with
     respect to such property on the basis of a total loss) or in any event
     extending beyond the end of the Term;

          (f) in the case of any Engine, a deemed Event of Loss pursuant to
     clause (vi) or clause (vii) of Section 8.01(a).

The date of such Event of Loss shall be (aa) the 61st day following an Event of
Loss described in clause (a); (bb) the date of an Event of Loss described in
clause (b); (cc) the date of any insurance settlement in the case of an Event of
Loss described in clause (c); (dd) the date of an Event of Loss described in
clause (d); (ee) the 61st day following an Event of Loss described in clause (e)
with respect to a Governmental Entity other than a United States Entity and the
181st day following an Event of Loss described in clause (e) with respect to a
United States Entity; and (ff) the date of the deemed Event of Loss described in
clause (f). An Event of Loss with respect to the Aircraft shall be deemed to
have occurred if any Event of Loss occurs with respect to the Airframe.

     "EXPIRATION DATE" means the date specified as such in the Lease Supplement
executed and delivered on the Delivery Date.

     "FAIR MARKET RENTAL VALUE" means in respect of the Aircraft at any time,
the aggregate base rentals (which shall in no event be less than zero) which
would be payable in an arm's-length transaction for cash under a lease of the
Aircraft on an "as is", "where is" basis and otherwise on terms substantially
identical (except for Basic Rent and Term) to the terms of this Lease for such
period of time as such Fair Market Rental Value is to be determined between a
willing lessor and a willing lessee both with full knowledge of the relevant
facts, including the actual condition and maintenance status of the Aircraft at
such time, and neither under any compulsion to enter into the transaction.

     "FAA" means the United States Federal Aviation Administration and any
successor agency or agencies thereto.

     "FAA-FILED DOCUMENTS" means this Lease, the bill of sale on FAA Form 8050-2
executed by Aero, the Trust Agreement, the application for registration of the
Aircraft with the FAA in the name of the Owner Trustee (together with any
attachments thereto), and the Delivery Acceptance Certificate and Lease
Supplement to be filed with the FAA in connection with the Delivery of the
Aircraft.

     "FEDERAL AVIATION ACT" means subtitle VII of title 49 of the United States
Code, as amended and in effect on the date of this Lease or as subsequently
amended, or any successor or substituted legislation at the time in effect and
applicable.

     "FINANCING" means any financing arrangement to which Lessor is a party
secured by an interest in the Aircraft or this Lease in accordance with Section
19.02.

     "FINANCING PARTY" means any party to a Financing, including any such party
acting as lender in a Financing; PROVIDED that such lender (i) shall be a Person
(other than a natural person) who is reasonably experienced in equipment leasing
and financing transactions, (ii) shall not be an airline or other Person engaged
in air transportation or a competitor of Lessee in the business of air
transportation or any

                                        5
<Page>

Affiliate thereof, and (iii) shall not be a party adverse to the Lessee or any
Affiliate of the Lessee in any pending litigation or arbitration (whether as
plaintiff or defendant) and shall not have overtly threatened to initiate any
such litigation or arbitration against Lessee or any Affiliate of Lessee.

     "FLIGHT HOUR" means each hour or part thereof, measured to one decimal
place, elapsing from the moment the wheels of the Airframe (or any airframe on
which the Engine or Part in question may be installed) first leave the ground on
take-off to the moment when the wheels of the Airframe or airframe first touch
the ground on landing.

     "GOVERNMENTAL ENTITY" means and includes (a) the FAA or other United States
Entity; (b) any national government, or political subdivision thereof or local
jurisdiction therein; (c) any board, commission, department, division, organ,
instrumentality, court, or agency of any entity described in (b) above, however
constituted; and (d) any joint authority, association, organization, or
institution of which any entity described in (b) or (c) above is a member or to
whose jurisdiction any such entity is subject or in whose activities any such
entity is a participant but only (except for purposes of defining Law below) to
the extent that any of the preceding have jurisdiction over the Aircraft or its
operations.

     "INDEMNITEE" means WFB, in its individual capacity and as Lessor, the
Beneficiary, the Financing Parties, if any, and each Affiliate, officer,
director, shareholder, agent, employee, successor and permitted assign of any of
the foregoing Persons.

     "INTEREST RATE" means, at any time, LIBOR (as adjusted for applicable
reserve requirements) [*], where LIBOR means [*] appearing on Telerate Page
3750 (or any successor page) as the London interbank offered rate for deposits
in Dollars at approximately 11:00 A.M. (London time) two Business Days prior to
the first day of the period to which the obligation to pay such interest arises,
for a term of one month. If for any reason such rate is not available, the term
"LIBOR" shall mean, for all amounts owing under this Lease to which an
obligation to pay such interest arises, the rate per annum (rounded upwards, if
necessary, to the nearest 1/100 of 1%) appearing on Reuters Screen LIBO Page as
the London interbank offered rate for deposits in Dollars at approximately 11:00
A.M. (London time) two Business Days prior to the first day of the period to
which the obligation to pay such interest arises, for a term of one month;
PROVIDED, HOWEVER, if more than one rate is specified on Reuters Screen LIBO
Page, the applicable rate shall be the arithmetic mean of all such rates
(rounded upwards, if necessary, to the nearest 1/100 of 1%). All computations of
interest under this Lease at the Interest Rate or otherwise are to be made on
the basis of a 360 day year for the actual number of days elapsed and shall be
compounded monthly.

     "JAA" means the European Joint Aviation Authority or any successor agency
thereto.

     "LAW" means and includes (a) any statute, decree, constitution, regulation,
order, judgment or other directive of any Governmental Entity; (b) any treaty,
pact, compact or other agreement to which any Governmental Entity is a party;
(c) any judicial or administrative interpretation or application of any Law
described in (a) or (b) above; and (d) any amendment or revision of any Law
described in (a), (b) or (c) above.

     "LEASE" means this Aircraft Lease Agreement [N288SK ], together with all
Lease Supplements.

     "LEASE SUPPLEMENT" means a supplement to this Lease in form and substance
satisfactory to Lessor and Lessee.

     "LESSOR'S LIENS" means Liens against, on, or with respect to, the Aircraft,
any Engine or Part or title thereto or interest thereon arising as a result of

                                        6

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* Confidential

<Page>

          (a) claims against Lessor, WFB or the Beneficiary or claims arising by
     or through Lessor, WFB or the Beneficiary as a result of acts or omissions
     of Lessor, WFB or the Beneficiary not related to this Lease or any other
     Operative Document or the transactions contemplated hereby or thereby;

          (b) Taxes or Claims imposed against Lessor, WFB or the Beneficiary
     that are not required to be indemnified against by Lessee pursuant to
     Article XIV or XV;

          (c) a Financing pursuant to Section 19.02(b); and;

          (d) claims against Lessor, WFB or the Beneficiary or claims arising
     by, through or under Lessor, WFB or the Beneficiary arising out of the
     voluntary or involuntary transfer by Lessor, WFB or the Beneficiary (other
     than to any Financing Party) or any transferee, successor or assign of
     Lessor, WFB or the Beneficiary of all or any part of its respective
     interests in the Aircraft, any Engine, any Part or the Operative Documents,
     other than a transfer pursuant to Article XII or Article XVII.

     "LIEN" means any mortgage, pledge, lien, charge, encumbrance,
hypothecation, lease, statutory or other rights in rem, assignment or exercise
of rights, security interest or claim, trust or title retention or any other
encumbrance of any kind securing any obligation of any Person including any
equivalent thereof created or arising under the Laws of the State of
Registration or any subdivision thereof.

     "MAINTENANCE CONTRACTOR" means (i) Lessee, (ii) Manufacturer, (iii) Engine
Manufacturer or (iv) any other maintenance contractor that is duly certified by
the Aeronautical Authority to perform such work on aircraft and engines of the
same type as the Aircraft and the Engines and chosen by Lessee.

     "MAINTENANCE PROGRAM" has the meaning specified in Exhibit A-2.

     "MANUFACTURER" means EMBRAER - Empresa Brasileira de Aeronautica S.A., a
company organized under the laws of Brazil.

     "MANUFACTURER PURCHASE AGREEMENT" the EMB-145 Purchase Agreement Number
GCT-025/98, dated June 17, 1998, between the Manufacturer and Seller.

     "OFFICER'S CERTIFICATE" means as to any Person other than a natural person
a certificate signed by a Responsible Officer of such Person.

     "OEMS" has the meaning assigned to such term in the definition "Maintenance
Program".

     "OPERATING RESULTS" means revenue passenger miles, available seat miles,
load factor and passengers enplaned.

     "OPERATIVE DOCUMENTS" means, collectively, this Lease, the Purchase
Agreement, the Trust Agreement, the Tax Indemnity Agreement, Assignment No. 1,
Assignment No. 2, the Engine Warranty Assignment and Consent, the Bill of Sale
and the FAA-filed documents.

     "ORIGINAL TERM" has the meaning set forth in Section 17.02(e).

     "OTHER LEASE" means any lease of jet aircraft between Beneficiary or any of
its Affiliates (including any Other Lessor) and Lessee or any of its Affiliates
entered into by such Persons or acquired

                                        7
<Page>

by Beneficiary or its Affiliates on or after the date hereof, but excluding any
such lease in which the Beneficiary and its Affiliates own less than fifty
percent of the beneficial ownership or interests.

     "OTHER LESSOR" means any trust or similar arrangement of which the
Beneficiary or any of its Affiliates is the beneficiary or beneficial owner in
whole or in part.

     "OWNER TRUSTEE" means WFB, in its capacity as owner trustee under the Trust
Agreement.

     "PARTS" means any and all appliances, avionics, components, parts,
instruments, appurtenances, accessories, furnishings, seats, galleys,
lavatories, and other equipment of whatever nature (other than complete Engines
or engines and excluding galley equipment and serving equipment (including, but
not limited to, galley carts, coffee heater, coffee pots, utensils, dishes and
cups) and emergency medical equipment), that may now or from time to time be
incorporated or installed or positioned in or on or attached to the Airframe or
any Engine, or that remain the property of Lessor pursuant to the terms of
Article IX despite removal therefrom, PROVIDED that at such time as a
Replacement Part shall be substituted for a Part in accordance with Article IX,
the Part so replaced shall cease to be a Part hereunder.

     "PERMITTED INVESTMENTS" means (a) direct obligations of the United States
of America or any agency or instrumentality thereof, (b) obligations fully
guaranteed by the United States of America or any agency or instrumentality
thereof, (c) any mutual fund the portfolio of which is limited to obligations of
the type described in clauses (a) and (b), (d) certificates of deposit issued
by, or bankers' acceptances of, or time deposits or a deposit account with, any
bank, trust company, or national banking association incorporated or doing
business under the laws of the United States of America or one of the states
thereof, having a combined capital and surplus of at least $100,000,000 and
having a rating of "A-" or better from the Standard & Poor's Ratings Group or
"A3" or better by Moody's Investors Services, Inc., (e) commercial paper issued
by companies in the United States which directly issue their own commercial
paper and which are doing business under the laws of the United States of
America or one of the states thereof and in each case having a rating assigned
to such commercial paper of A1+ by Standard & Poor's Ratings Group or P-1 by
Moody's Investors Services, Inc., or (f) obligations of the type described in
clauses (a), (b), (d), or (e) above, purchased from any bank, trust company, or
banking association referred to in clause (d) above pursuant to repurchase
agreements obligating such bank, trust company, or banking association to
repurchase any such obligation not later than 30 days after the purchase of any
such obligation. Unless otherwise specified in writing by the Lessor, all such
Permitted Investments shall mature not later than 30 days from the date of
purchase. Interest on such Permitted Investments shall accumulate and be held by
Lessor until the principal amount of such Permitted Investments due and owing to
Lessee shall be paid to Lessee, in which case any such interest shall be paid to
Lessee together with such principal amount.

     "PAYMENT LOCATION" means the account of the Beneficiary at Citibank, N.A.,
ABA No. 021000089, Account Name: Mitsui & Co. (U.S.A.), Inc., Account No.
30831745, Ref: Chautauqua [N288SK], or such other account as may be designated
by Beneficiary in accordance with Section 4.02.

     "PERMITTED AIR CARRIER" means (a) any Section 1110 Person and (b) any
foreign air carrier that is principally based in any foreign country listed on
EXHIBIT F.

     "PERMITTED LIEN" means:

          (i) any Lessor's Lien;

                                        8
<Page>

          (ii) any Lien created in favor of Lessee, Lessor or Beneficiary under
     the Operative Documents or of other Persons, to the extent permitted by
     Section 8.01 or 9.03 hereof;

          (iii)any Lien created by Lessor in favor of any Financing Party in a
     Financing purusant to Section 19.02;

          (iv) any Lien for Taxes either not yet due or being contested in good
     faith;

          (v)  any air navigation authority, airport, materialmen's, workmen's,
     repairmen's, mechanics', suppliers', employees' or other similar Liens
     arising in the ordinary course of Lessee's business by statute or by
     operation of Law in respect of obligations that are not yet due or that are
     being contested in good faith;

          (vi) Liens arising out of any judgment or award against Lessee,
     PROVIDED that such judgment or award is reversed, discharged, vacated or
     stayed within no more than 45 days after entry thereof;

          (vii) salvage and similar rights of insurers under policies of
     insurance maintained in accordance with Article XI; and

          (viii) Liens with respect to which the Lessee has provided a bond or
     other security adequate in the good faith opinion of the Lessor;

PROVIDED, HOWEVER, that in the case of Liens described in paragraphs (iv) and
(v) that are being contested by Lessee in good faith, adequate resources or
reserves for the payment of the sums giving rise to the Lien have been provided
for by Lessee and such Lien does not arise by reason of the failure of Lessee to
make any payment which is not being reasonably disputed by Lessee as being due
and so long as the same does not involve any material risk (in the reasonable
opinion of Lessor) of the detention, seizure, forfeiture, sale or loss
(including loss of use) of, or of any interest of the Lessor, Beneficiary or
Financing Party in, the Aircraft, any Engine or Part or any discernible risk of
criminal liability or any material risk of any civil penalty against Lessor,
Beneficiary, or any Financing Party or any Affiliate of any thereof.

     "PERMITTED SUBLESSEE" means (i) any Permitted Air Carrier, (ii) the Engine
Manufacturer, (iii) any Affiliate of the Manufacturer domiciled in the United
States; (iv) any United States Entity backed by the full faith and credit of the
United States of America, and (v) any other Person that may be approved in
writing by the Lessor prior to the effectiveness of the relevant Sublease.

     "PERSON" means and includes any individual person, corporation, limited
liability company, partnership, business trust, firm, joint stock company, joint
venture, trust, estate, unincorporated organization, association, sovereign
state or Governmental Entity or other entity recognized as a separate person
under applicable Law.

     "PURCHASE AGREEMENT" means the Aircraft Purchase Agreement [N288SK] dated
as of June 5, 2001, among Seller, Lessee, Lessor and the Beneficiary relating to
the Aircraft.

     "RECOVERY PERIOD" means "TAX ATTRIBUTE PERIOD" as defined in the Tax
Indemnity Agreement.

     "RE-LEASING" has the meaning set forth in Section 17.02(e).

     "RENEWAL TERM" has the meaning set forth in Section 6 of EXHIBIT A-2.

                                        9
<Page>

     "RENT" means Basic Rent and Supplemental Rent.

     "RENT PAYMENT DATE" means the Delivery Date, the same calendar day as the
Delivery Date occurring in the calendar month next following the calendar month
in which the Delivery Date occurred, and, thereafter, the same calendar day as
the Delivery Date occurring in each subsequent calendar month during the Term.

     "RENTAL PERIOD" means each period from and including (i) the Delivery Date
to, but excluding, the next succeeding Rent Payment Date, and thereafter, (ii)
each Rent Payment Date to, but excluding, the next succeeding Rent Payment Date
or, in the case of the last Rental Period, the period from and including the
last Rent Payment Date to, but excluding the last day of the Term.

     "REPLACEMENT AIRCRAFT" means any Aircraft of which a Replacement Airframe
is part.

     "REPLACEMENT AIRFRAME" means an Embraer model EMB-145LR aircraft or a
comparable or improved model of such aircraft of the Manufacturer (except
Engines or engines from time to time installed thereon) which shall satisfy the
requirements for a Replacement Airframe set forth in Section 12.01(a)(ii) and
which shall have become subject to this Lease pursuant to Section 12.01.

     "REPLACEMENT ENGINE" means an engine (a) (i) of the Engine Manufacturer and
is the same model or an improved model, (ii) of equal or greater value, utility
and modification, having all Airworthiness Directives completed for which a
terminating action is required as of the transfer of such Replacement Engine to
Lessor in accordance with Section 12.02, and (iii) in as good an operating
condition (as determined in the case of a used engine acquired from any
unrelated Person by a full (hot and cold section) borescope inspection), in each
case, as that of the Engine for which it is substituted, assuming such Engine
was in the condition and repair required by the terms hereof immediately prior
to the Event of Loss, (b) suitable for installation and use on the Airframe and
compatible with the other engine then installed on the Airframe , and (c ) in
the case of a Replacement Engine delivered in connection with the return of the
Aircraft pursuant to Section 18.03, having no greater number of accumulated
Flight Hours or Cycles since the last overhaul or shop visit on such engine, as
applicable under Lessee's engine maintenance program at the time of return of
the Aircraft, as the Engine that should have been returned, assuming such Engine
which should have been returned was in the condition and repair as required by
the terms hereof immediately prior to such return.

     "REPLACEMENT PART" has the meaning set forth in Section 9.01(b).

     "RESPONSIBLE OFFICER" means, with respect to the Owner Trustee, any officer
in its Corporate Trust Administration designated by the Owner Trustee to perform
obligations under the Operative Documents, and with respect to any other party,
any corporate officer of a party who, in the normal performance of his or her
operational responsibilities, with respect to the subject matter of any
covenant, agreement or obligation of such party pursuant to any Operative
Document, would have responsibility for and knowledge of such matter and the
requirements of any Operative Document with respect thereto.

     "RETURN ACCEPTANCE CERTIFICATE" means a certificate in the form of EXHIBIT
D-3 to be completed by Lessor pursuant to Section 18.06.

     "RETURN CONDITIONS" means such status and condition as shall permit the
Aircraft to comply with Sections 18.01 through 18.04 and EXHIBIT D-1 or EXHIBIT
D-2, as applicable.

                                       10
<Page>

     "RETURN LOCATION" means such location within the continental United States
on Lessee's regional jet route system at one of its principal maintenance bases
as may be designated by Lessor and, so long as no Default or Event of Default
shall have occurred and be continuing, acceptable to Lessee.

     "RETURN OCCASION" means the event that occurs when possession of the
Aircraft is returned from Lessee to Lessor at the end of the Term or upon
Lessor's taking possession of the Aircraft pursuant to Article XVIII.

     "SECTION 1110" means 11 U.S.C.ss.1110 of the Bankruptcy Code.

     "SECTION 1110 PERSON" is a Citizen of the United States and is an "air
carrier" within the meaning of the Federal Aviation Act holding an "air carrier
operating certificate" issued under Chapter 447 (or any successor provision) of
the Federal Aviation Act for aircraft capable of carrying 10 or more individuals
or 6,000 or more pounds of cargo, with such certificate in full force and
effect.

     "SELLER" means Solitair Corp., a Delaware corporation.

     "SERVICE BULLETIN" means a service bulletin or service information letter
issued by the Manufacturer, Engine Manufacturer or other original equipment
manufacturer in respect of the Aircraft or any part thereof.

     "SPECIFIED DEFAULT" means (a) an event or condition described in Section
17.01(a), (g), (h), (i) or (j) (but only in the case of a voluntary suspension
of all Lessee's operations) that, after the giving of notice or lapse of time,
or both, would become an Event of Default, or (b) any Event of Default.

     "SMRD" has the meaning assigned to such term in the definition "Maintenance
Program."

     "SRM" has the meaning assigned to such term in the definition "Maintenance
Program."

     "STATE OF REGISTRATION" means the United States, or such other country in
which the Aircraft may be registered in accordance with Section 8.05 of this
Lease or Section 5 of Exhibit A-2.

     "SUBLEASE" means any sublease of the Aircraft with a Permitted Sublessee
entered into in accordance with Section 8.01(a) and any further subleasing of
the Aircraft whether or not authorized by this Lease; PROVIDED, HOWEVER, that a
wet lease or charter shall not be considered a Sublease for purposes of this
Lease.

     "SUPPLEMENTAL RENT" means any and all amounts, liabilities and obligations
(other than Basic Rent) that Lessee agrees to pay hereunder, or under any other
Operative Document , including, without limitation:

          (a) any payment of Stipulated Loss Value; and/or

          (b) any payment of Equivalency Payment; and/or

          (c) any payment by way of indemnity hereunder; and/or

          (d) as provided herein and to the extent permitted by applicable Law,
     interest at the Interest Rate calculated on any part of any installment of
     Basic Rent not paid on the due date thereof for the period the same remains
     unpaid, and on any Supplemental Rent not paid when due hereunder until the
     same is paid.

                                       11
<Page>

     "TAX" and "TAXES" means any and all forms of taxation, levy, impost, duty,
with holding or charge of whatever nature and by whatever name called whenever
created or imposed and whether of the United States or elsewhere and whether
imposed by a local, municipal, governmental, state, federal or other body or
authority together with any additions to tax, penalties, fines, charges or
interest thereon and "taxation" shall be construed accordingly.

     "TAX INDEMNITEE" means WFB, in its individual capacity and as Lessor, the
Beneficiary, any Affiliate of a Tax Indemnitee with respect to any interest in
the Aircraft, or any part thereof and their respective successors and permitted
assigns.

     "TAX INDEMNITY AGREEMENT" means the Tax Indemnity Agreement [N288SK], dated
as of June 5, 2001 between the Lessee and the Beneficiary.

     "TERM" means the period of the leasing of the Aircraft to Lessee pursuant
to this Lease, and shall include the Basic Term and one or more Renewal Terms
(if any).

     "TRANSACTION COSTS" means those costs and expenses set forth in Section
12(e) of the Purchase Agreement that are to be paid or reimbursed by
Beneficiary.

     "TREASURY RATE" means in respect of any period the per annum rate equal to
the yield-to-maturity on the most liquid U.S. Treasury note maturing on the date
which falls on the last day of such period at the time it is to be determined
for the purposes of this Lease, in each case as reasonably determined by Lessor
(or any other person acceptable to Lessor and Lessee) as set forth on page 5 of
the Telerate screen (or, if such page no longer exists, a substitute page
providing the equivalent information).

     "TRUST AGREEMENT" means the Trust Agreement [N288SK], dated as of June 5,
2001, between WFB and the Beneficiary.

     "TRUST ESTATE" means all estate, right, title and interest of Lessor in and
to the Aircraft, this Lease, any Lease Supplement and any other Operative
Document to which Lessor is a party, including all amounts of Rent and
Supplemental Rent, insurance proceeds or other amounts payable to or for the
benefit of Lessor (other than any amounts payable to Lessor in its individual
capacity) pursuant thereto.

     "UCC" means the Uniform Commercial Code of New York as in effect from time
to time.

     "UNITED STATES ENTITY" means the government of the United States or America
or any agency or instrumentality thereof.

     "WFB" means Wells Fargo Bank Northwest, National Association, a United
States national banking association.

     Section 1.02 OTHER TERMS. In this Lease, the terms "APPLICABLE RATE,"
"APPRAISAL PROCEDURE," "EARLY PURCHASE DATE," "BASIC RENT," "EQUIVALENCY
CHARGE," "EXPIRY DATE," "FAIR MARKET SALE VALUE," "EARLY PURCHASE OPTION,"
"MINIMUM LIABILITY AMOUNT,""NET ECONOMIC RETURN," FMV OPTION," "PURCHASE PRICE,"
"SCHEDULED DELIVERY DATE," "STIPULATED LOSS VALUE," and "TERMINATION DATE" and
certain other terms defined in EXHIBIT A-2 shall have the meanings set forth in
EXHIBIT A-2.

     Section 1.03 CONSTRUCTION. In this Lease, except as otherwise expressly
provided or unless the context otherwise requires:

                                       12
<Page>

          (a) the Schedules and Exhibits to this Lease shall form an integral
part hereof;

          (b) reference herein to this Lease shall be deemed to include
references to this Lease and its Schedules and Exhibits and all Lease
Supplements as the same may be amended or supplemented or replaced from time to
time;

          (c) references within any documents to appendices, schedules,
paragraphs, sections, exhibits or annexes are references to appendices,
schedules, paragraphs, sections, exhibits or annexes in or to such document;

          (d) headings, subheadings, and paragraph number descriptions and the
table of contents are solely for the convenience of reference and shall not
affect the meaning, construction or effect of any provision of this Lease or any
other document;

          (e) references to any Person or party shall include such Person or
party, its successors and permitted assigns and transferees;

          (f) references to the neuter gender include the masculine or feminine,
the masculine gender includes the feminine and the singular number includes the
plural, and vice versa;

          (g) reference to any agreement means such agreement as amended,
modified or supplemented from time to time in accordance with the provisions
thereof;

          (h) references to "including" shall mean including without limiting
the generality of any description preceding such term and the rule of EJUSDEM
GENERIS shall not be applicable to limit a general statement, followed by or
referable to an enumeration of specific matters, to matters similar to those
specifically mentioned;

          (i) the "winding up" or "dissolution" of a company or the appointment
of an "administrative receiver," a "liquidator," a "receiver" or an
"administrator" shall be construed so as to include any equivalent or analogous
proceedings and any proceedings giving protection for any period against the
claims of creditors under the Law of the jurisdiction in which such company is
incorporated or any jurisdiction in which such company carries on business or
owns assets;

          (j) references to any statutory provision shall include reference to
that provision as it may be amended from time to time and to any like or similar
provisions replacing the same or which replacement provision addresses the same,
the similar or analogous matter;

          (k) references to "indebtedness" shall be construed so as to include
any obligation (whether incurred as principal or as surety) for the payment or
repayment of money, whether present or future, actual or contingent;

          (l) where any matter requires the approval or consent of either party,
such approval or consent shall be deemed not to have been given unless given in
writing and where any matter is required to be acceptable to either party, the
same shall be deemed not to have been accepted unless such acceptance is
communicated in writing; and

          (m) each of the parties hereto and its counsel have reviewed and
revised, or requested revisions to, this Lease, and the usual rule of
construction that any ambiguities are to be resolved against the drafting party
shall be inapplicable in the construction and interpretation of this Lease.

                                       13
<Page>

                                   ARTICLE II

                              LEASE AND CONDITIONS

     Section 2.01 TERM. (a) On the Delivery Date Lessor hereby agrees to tlease
the Aircraft to Lessee, and Lessee hereby agrees to lease the Aircraft from
Lessor, on the terms of this Lease for the Basic Term.

          (b) Lessee and Lessor agree that this Lease is, and shall be treated
for U.S. federal income tax purposes as, a lease of the Aircraft, Airframe,
Engines and Parts. It is the intention of each of Lessee and Lessor that Lessor
(and any Financing Party holding a mortgage as assignee of Lessor) shall be
entitled to the benefits of Section 1110 with respect to the right to take
possession of the Aircraft, Airframe, Engines and Parts as provided in this
Lease, and in any instance where more than one construction of the terms and
conditions of this Lease or any other pertinent Operative Document is possible,
or of the facts and circumstances underlying the transactions contemplated
herein or therein, Lessor and Lessee agree that a construction that would create
and preserve such benefits shall control over any construction that would not
create and preserve such benefits. Lessor and Lessee agree that, for all
purposes of applicable Law, this Lease constitutes an agreement of lease and
nothing contained herein shall be construed as conveying to Lessee any right,
title or interest in the Aircraft, Airframe, Engines, Parts or Aircraft
Documents, except as expressly provided herein to Lessee as a lessee only.

     Section 2.02  CONDITIONS  PRECEDENT.  (a) Lessor's  obligation to lease the
Aircraft to Lessee shall be subject to satisfaction of the following conditions:

               (i) no Default, Event of Default or Event of Loss shall have
     occurred and be continuing, and no Default or Event of Default would result
     from the leasing of the Aircraft hereunder on the Delivery Date;

               (ii) the representations and warranties of Lessee set forth in
     Section 5.01 and of Seller set forth in Section 9(a) of the Purchase
     Agreement shall be true and correct on the Delivery Date (unless any such
     representation and warranty shall have been made with reference to a
     specified date, in which case such representation and warranty shall be
     true and accurate as of such specified date), and each other party to this
     Lease and the other Operative Documents to which it is a party shall have
     performed and observed, in all material respects, all of its covenants,
     obligations and agreements in this Lease and the other Operative Documents
     to which it is a party to be observed or performed by it as of the Delivery
     Date;

               (iii) Lessee shall have delivered to Lessor an original of this
     Lease and Lease Supplement No. 1 thereto, and Lessor shall have received
     each of the other Closing Documents, each duly executed by the parties
     thereto other than Lessor, dated as of the Delivery Date (or such other
     date as may be reasonably satisfactory to Lessor) and in form and substance
     reasonably satisfactory to Lessor;

               (iv) no Default or Event of Default shall have occurred and be
     continuing under any Other Lease;

               (v) no change shall have occurred subsequent to the execution of
     this Lease and prior to the Delivery Date in any applicable Law or in the
     interpretation thereof that, in Lessor's reasonable opinion, would make it
     illegal for Lessor, Beneficiary, Seller or Lessee, or any or all of them,
     to perform any of their respective obligations under any of the Operative
     Documents; and

                                       14
<Page>

               (vi) no action or proceeding shall have been instituted, nor
     shall any action be threatened in writing, before any governmental
     authority, nor shall any order, judgement or decree have been issued or
     proposed to be issued by any governmental authority, to set aside,
     restrain, enjoin or prevent the completion and consummation of this Lease
     or any other Operative Document or the transactions contemplated hereby or
     thereby.

               (vii) the conditions set forth in Section 4 of EXHIBIT A-2 shall
     have been met.

          (b) Lessee's obligation to lease the Aircraft hereunder shall be
subject to its satisfaction of the following conditions:

               (i) no Event of Loss shall have occurred.

               (ii) the representations and warranties of each other party to
     the Operative Documents made, in each case, in this Lease and in any other
     Operative Document to which Lessee is party, shall be true and correct on
     the Delivery Date (unless any such representation and warranty shall have
     been made with reference to a specified date, in which case such
     representation and warranty shall be true and accurate as of such specified
     date); and each other party to this Lease and the other Operative Documents
     to which it is a party shall have performed and observed, in all material
     respects, all of its covenants, obligations and agreements in this Lease
     and the other Operative Documents to which it is a party to be observed or
     performed by it as of the Delivery Date.

               (iii) Lessee shall have received originals of this Lease and
     Lease Supplement No. 1 thereto, and Lessee shall have received each of the
     other Closing Documents, each duly executed by the parties thereto other
     than Lessee, dated as of the Delivery Date (or such other date as may be
     reasonably satisfactory to Lessee) and in form and substance reasonably
     satisfactory to Lessee;

               (iv) no change shall have occurred subsequent to the execution of
     this Lease and prior to the Delivery Date in any applicable Law or in the
     interpretation thereof that, in Lessee's reasonable opinion, would make it
     illegal for Lessor, Beneficiary, Seller or Lessee, or any or all of them,
     to perform any of their respective obligations under any of the Operative
     Documents; and

               (v) no action or proceeding shall have been instituted, nor shall
     any action be threatened in writing, before any governmental authority, nor
     shall any order, judgement or decree have been issued or proposed to be
     issued by any governmental authority, to set aside, restrain, enjoin or
     prevent the completion and consummation of this Lease or any other
     Operative Document or the transactions contemplated hereby or thereby.

PROVIDED that Lessee hereby acknowledges that each of the foregoing conditions
shall be deemed to have been satisfied upon delivery of the Aircraft by Aero to
Lessor and payment of the Aircraft Price and acceptance of the Aircraft by
Lessor under the Purchase Agreement, in which event Lessee shall not have any
right to reject the Aircraft or any Part thereof hereunder.

          (c) The conditions specified in paragraph (a) are inserted for the
sole benefit of Lessor and may be waived or deferred in whole or in part by
Lessor. Lessor may attach to such waiver or deferral such requirements and
further or other conditions as Lessor reasonably thinks fit.

          (d) The conditions specified in paragraph (b) are inserted for the
sole benefit of Lessee and may be waived or deferred in whole or in part by
Lessee, subject to the proviso at the end of

                                       15
<Page>

paragraph (b). Lessee may attach to such waiver or deferral such requirements
and further or other conditions as Lessee reasonably thinks fit.

                                   ARTICLE III

                             DELIVERY AND ACCEPTANCE

     Section 3.01 DELIVERY. Lessor and Lessee anticipate that the Aircraft and
the Aircraft Documents will be tendered for delivery on June 29, 2001 at the
Delivery Location. On the Delivery Date the FAA-filed Documents shall be filed
with the FAA.

     Section 3.02 ACCEPTANCE OF AIRCRAFT. Following delivery of the Aircraft to
Lessor under the Purchase Agreement and execution by the Lessee of the Delivery
Acceptance Certificate, Lessee shall accept the Aircraft to be leased hereunder
"AS IS, WHERE IS" AND SUBJECT TO ALL FAULTS AND TO EACH AND EVERY DISCLAIMER OF
WARRANTY AND REPRESENTATION SET FORTH IN SECTION 7.03; it being understood that,
upon acceptance by Lessor of the Aircraft under the Purchase Agreement, Lessee
shall be obligated to execute and deliver the Delivery Acceptance Certificate
and accept the Aircraft under this Section 3.02.

     Section 3.03 RISK OF LOSS. From and after the Delivery Date and throughout
the Term until the Aircraft is redelivered to Lessor in accordance herewith,
Lessee shall bear all risk of loss, damage, theft or destruction of, or any
other Event of Loss with respect to, the Aircraft or to the Airframe, any Engine
or any Part.

                                   ARTICLE IV

                                      RENT

     Section 4.01 RENT; ADJUSTMENTS. (a) BASIC RENT. Lessee covenants and agrees
to pay to Lessor (or as Lessor shall direct) in respect of the Aircraft, as
Rent, on each Rent Payment Date, the Basic Rent for the Aircraft due on such
Rent Payment Date as provided in SCHEDULE BR-1 attached hereto and any and all
Supplemental Rent as the same becomes due. The Basic Rent payable on any Rent
Payment Date shall be allocated among the Rental Periods as provided in SCHEDULE
BR-2 attached hereto for all purposes, including federal and state income tax
purposes.

          (b) ADJUSTMENTS TO BASIC RENT AND STIPULATED LOSS VALUES.

               (i) If there is any change in the Aircraft Price from the Assumed
     Aircraft Price (as defined in EXHIBIT A-2), all installments of Basic Rent
     remaining to be paid during the Basic Term shall be recalculated and
     adjusted upwards or downwards as the case may be (and corresponding
     adjustments shall be made to the Basic Rent allocations set forth in
     SCHEDULE BR-2 and Stipulated Loss Values applicable during the remaining
     Basic Term), as provided in EXHIBIT A-2.

               (ii) If the Transaction Costs payable by the Beneficiary pursuant
     to Section 12(e) of the Purchase Agreement shall be less than the Assumed
     Transaction Costs (as defined in EXHIBIT A-2), all installments of Basic
     Rent remaining to be paid during the Basic Term shall be recalculated and
     adjusted downwards (and corresponding adjustments shall be made to the
     Basic Rent allocations set forth in SCHEDULE BR-2 and Stipulated Loss
     Values applicable during the remaining Basic Term), as provided in EXHIBIT
     A-2.

                                       16
<Page>

               (iii) If required by the terms of Section 17 of the Tax Indemnity
     Agreement, Stipulated Loss Values applicable during the remaining Basic
     Term shall be recalculated and adjusted upwards or downwards as the case
     may be (and, if appropriate, corresponding adjustments shall be made to
     Basic Rent applicable during the remaining Basic Term and the Basic Rent
     allocations set forth in SCHEDULE BR-2) to maintain the Net Economic Return
     through the Early Purchase Date as well as the end of the Basic Term and,
     to the greatest extent consistent with such maintenance of such Net
     Economic Return, to minimize the net present value (calculated at a
     discount rate specified by the Lessee to the Beneficiary) of the remaining
     Basic Rent payments (or, if the Lessee shall have so specified to the
     Beneficiary, the remaining Basic Rent Payments to the Early Purchase Date).

     Section 4.02 MANNER OF PAYMENT. Each installment of Rent and all other
amounts payable by Lessee hereunder shall be paid, in Dollars, by wire transfer
of freely available same day funds on the due date therefor by 12:00 noon (New
York time) to the Payment Location therefor or to such other account as Lessor
may designate from time to time by not less than five (5) Business Days' written
notice to Lessee.

     Section 4.03 ABSENCE OF NEED FOR DEMAND. Except where payable on demand (in
which case payment shall be made promptly on demand), all payments to be made by
Lessee pursuant to this Lease on a date certain shall be made by Lessee on such
date whether or not demanded by the person to whom such payments are to be made.

     Section 4.04 NON-BUSINESS DAY; DATE OF RECEIPT. (a) If any payment falls
due hereunder on a day that is not a Business Day, such payment shall be made on
the next succeeding Business Day with the same force and effect as if paid on
the scheduled date of payment, and (if paid on such next succeeding Business
Day) no interest shall accrue on the amount of such payment from and after such
scheduled date to the time of payment on such next succeeding Business Day.

          (b) All payments shall be considered to have been made on the date on
which they are received at the Payment Location in the manner provided in
Section 4.02.

     Section 4.05 NET LEASE; PROHIBITION AGAINST SET OFF, COUNTERCLAIM, ETC.
THIS LEASE IS A NET LEASE AND, EXCEPT AS OTHERWISE EXPRESSLY PROVIDED HEREIN,
LESSOR SHALL HAVE NO RESPONSIBILITY (OPERATIONALLY OR FINANCIALLY) IN RESPECT OF
THE USE, POSSESSION, CONTROL OR OPERATION OF THE AIRCRAFT. LESSEE'S OBLIGATION
TO PAY ALL RENT AND ALL OTHER AMOUNTS DUE HEREUNDER AND TO PERFORM ALL THE TERMS
HEREOF SHALL BE ABSOLUTE AND UNCONDITIONAL AND SHALL NOT BE AFFECTED OR REDUCED
BY ANY CIRCUMSTANCES, INCLUDING (I) ANY SET-OFF, COUNTERCLAIM, RECOUPMENT,
DEFENSE OR OTHER RIGHT THAT LESSEE MAY HAVE AGAINST LESSOR OR ANY OTHER PERSON;
(II) ANY DEFECT IN THE TITLE, AIRWORTHINESS OR ELIGIBILITY FOR REGISTRATION
UNDER APPLICABLE LAW, OR ANY CONDITION, DESIGN, OPERATION OR FITNESS FOR USE OF
THE AIRCRAFT, OR ANY INTERRUPTION OR CESSATION IN THE USE OR POSSESSION THEREOF
BY LESSEE; (III) SUBJECT TO SECTION 12.01, ANY EVENT OF LOSS; (IV) ANY LIENS
WITH RESPECT TO THE AIRCRAFT; (V) THE INVALIDITY OR UNENFORCEABILITY OF THIS
LEASE OR ANY ABSENCE OF RIGHT, POWER OR AUTHORITY OF LESSOR OR LESSEE TO ENTER
INTO THIS LEASE; (VI) ANY INSOLVENCY, BANKRUPTCY, REORGANIZATION OR SIMILAR
PROCEEDINGS BY OR AGAINST LESSOR OR LESSEE; IT BEING THE EXPRESS INTENTION OF
LESSOR AND LESSEE THAT ALL RENT AND OTHER AMOUNTS PAYABLE HEREUNDER SHALL BE
PAYABLE AND ALL OTHER TERMS HEREOF SHALL BE PERFORMED IN ALL EVENTS, UNLESS THE
OBLIGATION TO PAY OR TO PERFORM THE SAME SHALL BE TERMINATED OR SUSPENDED
PURSUANT TO THE EXPRESS PROVISIONS OF THIS LEASE. EXCEPT AS EXPRESSLY PROVIDED
IN THIS LEASE, EACH PAYMENT OF RENT OR ANY OTHER PAYMENT HEREUNDER MADE BY
LESSEE TO LESSOR SHALL BE FINAL AND LESSEE WILL NOT SEEK TO RECOVER ANY PART OF
SUCH PAYMENT FROM LESSOR FOR ANY REASON

                                       17
<Page>

WHATSOEVER. LESSEE HEREBY WAIVES, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ANY
AND ALL RIGHTS THAT IT MAY NOW HAVE OR THAT AT ANY TIME HEREAFTER MAY BE
CONFERRED UPON IT, BY LAW OR OTHERWISE, TO TERMINATE THIS LEASE OR ANY
OBLIGATION IMPOSED UPON LESSEE HEREUNDER.

     NOTHING IN THIS SECTION 4.05 SHALL BE CONSTRUED TO PROHIBIT LESSEE FROM
SEPARATELY PURSUING ANY CLAIM IT MAY HAVE FROM TIME TO TIME AGAINST LESSOR OR
ANY OTHER PERSON WITH RESPECT TO ANY MATTER (OTHER THAN THE ABSOLUTE AND
UNCONDITIONAL NATURE OF LESSEE'S OBLIGATIONS HEREUNDER TO PAY RENT DUE HEREUNDER
AND TO PERFORM ALL THE TERMS HEREOF).

     Section 4.06 INTEREST ON OVERDUE AMOUNTS. If Lessee fails to pay any sum
when due hereunder, Lessee shall pay interest thereon at the Interest Rate after
as well as before any judgment from the date such sum fell due until the date of
payment thereof. Such interest shall be payable by Lessee to Lessor on demand.
The provisions of this Section shall be in addition and without prejudice to any
other rights of Lessor at law or hereunder in relation to the failure of Lessee
to make prompt payment of sums due hereunder.

     Section 4.07 PAYMENTS BY LESSOR. Notwithstanding any provision of this
Lease to the contrary, Lessor shall not be obligated to make any payment or to
release any money to Lessee if a Specified Default shall have occurred and be
continuing but shall be entitled to hold such money as provided in Section 4.09
until any such Specified Default shall no longer be continuing, PROVIDED,
HOWEVER, that if an Event of Default occurs, Lessor shall be entitled to apply
such money to any Rent or other obligation owed by Lessee to Lessor hereunder.

     Section 4.08 PAYMENTS SET ASIDE OR REPAID. If at any time following the
application or payment of any sums hereunder to or for the benefit of Lessee by
Lessor it is discovered that no such application or payment should have been
made or that any payment by Lessee to Lessor is set aside, avoided under any
Laws relating to insolvency or liquidation or otherwise must be repaid, Lessee
shall, on Lessor's demand, reimburse Lessor in an amount equal to the sum so
applied or paid or, as the case may be, such amount so set aside, avoided or
repaid and such amount so set aside, avoided or repaid shall not be considered
as having been discharged or diminish the liability of Lessee to Lessor and the
liability of Lessee to Lessor shall continue to apply as if such payment had at
all times remained owing to Lessor and Lessee shall accordingly indemnify Lessor
in respect thereof.

     Section 4.09 INVESTMENT OF FUNDS. Any monies paid to or retained by the
Lessor which are required to be paid to the Lessee or applied for the benefit of
the Lessee (including, without limitation, amounts payable to the Lessee under
Articles XI and XII), but which the Lessor is entitled to hold under the terms
hereof pending the occurrence of some event or the performance of some act
(including, without limitation, the remedying of an Event of Default), shall,
until paid to the Lessee or applied as provided herein, be invested by the
Lessor from time to time at the direction, risk and expense of the Lessee in
Permitted Investments. The Lessor shall remit any gain (including interest
received) realized as the result of any such investment (net of any fees,
commissions and other expenses, if any, incurred in connection with such
investment) at the time such monies are to be paid to the Lessee or applied to
or for the benefit of the Lessee, unless an Event of Default shall have occurred
and be continuing, in which case such gains shall be held or applied in
accordance with the provisions of Section 4.07. The Lessee will promptly pay to
the Lessor, on demand, the amount of any loss realized as the result of any such
investment (together with any fees, commissions and other expenses, if any,
incurred in connection with such investment).

                                       18
<Page>

                                    ARTICLE V

                         REPRESENTATIONS AND WARRANTIES
                         -------------------------------

     Section 5.01 REPRESENTATIONS AND WARRANTIES OF LESSEE. Lessee acknowledges
that Lessor has entered into this Lease in full reliance upon the
representations of Lessee in the following terms and Lessee now warrants to
Lessor that the following statements are as of the date hereof, and on the
Delivery Date (unless any such representation and warranty shall have been made
with reference to a specified date, in which case such representation and
warranty shall be true and accurate as of such specified date) will be, true and
accurate:

          (a) Lessee is a corporation duly incorporated and validly existing in
good standing under the Laws of the State of New York, holds all authorizations
necessary to authorize Lessee to engage in air transport and to carry on its
passenger airline service as presently conducted and has the corporate power and
authority to carry on its business as presently conducted and to perform its
obligations under this Lease and the other Operative Documents to which it is a
party;

          (b) this Lease has, and the other Operative Documents to which Lessee
is a party have, been duly authorized by all necessary corporate action on the
part of Lessee and none of such agreements requires any approval of the
shareholders of Lessee (or if such approval is required, such approval has been
obtained) and neither the execution and delivery hereof and thereof nor the
consummation of the transactions contemplated hereby and thereby nor compliance
by Lessee with any of the terms and provisions hereof and thereof will
contravene any Law applicable to Lessee or result in any breach of, or
constitute any default under, or result in the creation of any Lien upon any
property of Lessee under any creditor agreement or instrument, corporate charter
or by-law or other agreement or instrument to which Lessee is a party or by
which Lessee or its properties or assets are bound or affected, except for any
such conflicts, breaches or defaults which would not, individually or in the
aggregate, have a material adverse effect on the business or financial condition
of Lessee or on its ability to perform its obligations under this Lease and the
other Operative Documents to which Lessee is a party;

          (c) Lessee has or will, prior to the Delivery Date have, received
every consent, approval or authorization of, and has given every notice to, each
Governmental Entity having jurisdiction with respect to the execution, delivery
or performance of this Lease and the other Operative Documents to which it is a
party (including all monetary and other obligations hereunder) that is required
for Lessee to execute and deliver this Lease and the other Operative Documents
to which it is a party and each such consent, approval or authorization and
notice is valid and effective and has not been revoked, except for the
registrations, applications and recordings referred to in the opinion of Special
FAA Counsel delivered pursuant to Section 2.02 and the filings with the FAA of
the FAA-filed Documents pursuant to Section 2.02;

          (d) this Lease has been, and the other Operative Documents to which
Lessee is a party have been or will be, duly executed and delivered by Lessee,
and this Lease does, and the other Operative Documents to which Lessee is a
party do or will, constitute legal, valid and binding obligations of Lessee,
enforceable in accordance with their respective terms, except as enforcement
thereof may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting the enforcement of creditors' rights
generally and by such principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law) as a court
having jurisdiction may impose and by laws that may affect some of such remedies
but which do not make the available remedies inadequate for the substantial
realization of the benefits provided herein;

                                       19
<Page>

          (e) except as disclosed in any of the financial statements referred to
in Section 5.01(f), or as otherwise disclosed in writing to the Beneficiary
prior to the date hereof, there are no suits or proceedings pending or, to the
knowledge of Lessee, threatened in any court or before any regulatory
commission, board or other Governmental Entity against or affecting Lessee that
may, either individually or in the aggregate, reasonably be expected to have a
materially adverse effect on the ability of Lessee to perform its obligations
hereunder;

          (f) the audited financial statements of Lessee for the financial
period ended December 31, 2000, have been prepared in accordance with United
States generally accepted accounting principles consistently applied and present
fairly in all material respects the financial condition of Lessee and its
consolidated subsidiaries, if any, as of such date and the results of its
operations and cash flows for such period;

          (g) except as  disclosed  in writing to the  Beneficiary  prior to the
date hereof,  there has been no change in the  financial  condition,  results of
operations  or  business  prospects  of Lessee  since the date of the  financial
statements  described in paragraph(f) above that could reasonably be expected to
have a  material  adverse  effect  on the  ability  of  Lessee  to  perform  its
obligations  hereunder  or under any other  Operative  Document to which it is a
party; and

          (h) Lessee is a Section 1110 Person, and under the law as in effect on
the date hereof and on the Delivery Date, Lessor would be entitled to the
benefit of Section 1110 with respect to the Aircraft, for all Lessee's
obligations under this Lease, if Lessee were to become a debtor under 11 U.S.C.
Chapter 11.

     Section 5.02 REPRESENTATIONS AND WARRANTIES OF LESSOR. WFB and Owner
Trustee each acknowledges that Lessee has entered into this Lease in full
reliance upon the representations and warranties of WFB and the Owner Trustee in
the following terms and each of WFB and the Owner Trustee, as applicable, now
represents and warrants to Lessee that the following statements are as of the
date hereof, and as of the Delivery Date (unless any such representation and
warranty shall have been made with reference to a specified date, in which case
such representation and warranty shall be true and accurate as of such specified
date), will be, true and accurate:

          (a) WFB is a national banking association duly organized and existing
under the laws of the United States of America and has the power and authority
to carry on its business as presently conducted and to perform its obligations
as lessor under this Lease and the other Operative Documents to which it is a
party, whether in its individual capacity or as Owner Trustee;

          (b) this Lease has and the other Operative Documents to which it is a
party, whether in its individual capacity or as Owner Trustee, have been duly
authorized by all necessary trust action on the part of WFB and none of such
agreements requires any approval of the shareholders of WFB (or if such approval
is required, such approval has been obtained) and neither the execution and
delivery hereof and thereof nor the consummation of the transactions
contemplated hereby and thereby nor compliance by WFB, whether in its individual
capacity or as Owner Trustee, with any of the terms and provisions hereof and
thereof will contravene any Utah law or federal law governing the banking and
trust powers of WFB, whether in its individual capacity or as Owner Trustee, or
result in any breach of, or constitute any default under, or result in the
creation of any Lien, charge or encumbrance upon any property of WFB under any
creditor agreement or instrument, charter or by-law or other agreement or
instrument to which WFB, whether in its individual capacity or as Owner Trustee,
is a party or by which WFB, whether in its individual capacity or as Owner
Trustee, or its properties or assets are bound or affected;

                                       20
<Page>

          (c) WFB, whether in its individual capacity or as Owner Trustee, has
or will, prior to the Delivery Date have, received every consent, approval or
authorization of, and has given every notice to, each Governmental Entity having
jurisdiction with respect to the execution, delivery or performance of this
Lease and the other Operative Documents (including all monetary and other
obligations hereunder) that is required for WFB, whether in its individual
capacity or as Owner Trustee, to execute and deliver this Lease and the other
Operative Documents to which it is a party and each such consent, approval or
authorization and notice is valid and effective and has not been revoked;

          (d) this Lease has been, and the other Operative Documents have been,
duly executed and delivered by WFB, whether in its individual capacity or as
Owner Trustee, and this Lease does, and the other Operative Documents to which
it is a party do, constitute legal, valid and binding obligations of WFB,
whether in its individual capacity or as Owner Trustee, enforceable in
accordance with their respective terms, except as enforcement thereof may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium or
other similar laws affecting the enforcement of creditors' rights generally and
by such principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law) as a court having jurisdiction
may impose and by laws that may affect some of such remedies but which do not
make the available remedies inadequate for the substantial realization of the
benefits provided herein;

          (e) there are no suits or proceedings pending or, to the knowledge of
WFB, threatened in any court or before any regulatory commission, board or other
Governmental Entity against or affecting WFB, whether in its individual capacity
or as Owner Trustee, that may, either individually or in the aggregate,
reasonably be expected to have a materially adverse effect on the ability of
WFB, whether in its individual capacity or as Owner Trustee, to perform its
obligations under this Lease and the other Operative Documents to which it is a
party;

          (f) on the Delivery Date, WFB is a "Citizen of the United States";

          (g) on the Delivery Date, Owner Trustee holds whatever title to the
Aircraft as was conveyed to it by Aero and there are no Lessor's Liens
attributable to WFB, either in its individual capacity or as Owner Trustee, in
respect of all or any part of the Aircraft or the Trust Estate;

          (h) there are no Claims or Taxes that may be imposed on or asserted
against Lessee, Beneficiary, Owner Trustee (except on fees of Owner Trustee) or
the Trust Estate or any part thereof or any interest therein under the laws of
the State of Utah in connection with the execution, delivery, or performance of
any Operative Document by the Owner Trustee, which would not have been imposed
if Owner Trustee had not (x) had its principal place of business in, (y)
performed (in its individual capacity or as Owner Trustee) any or all of its
duties under the Operative Documents in or (z) engaged in any activities
unrelated to the transactions contemplated by the Operative Documents in, the
State of Utah; and

          (i) WFB has made a filing with the New York State Banking Department
under Section 131.3 of the New York State Banking Law with respect to the trust
formed by the Trust Agreement.

     Section 5.03 SURVIVAL, NO PREJUDICE. (a) The representations and warranties
contained in Sections 5.01 and 5.02 shall survive the execution of this Lease
and Delivery of the Aircraft.

          (b) The rights of Lessor in relation to any misrepresentation or
breach of representation or warranty by Lessee shall not be prejudiced by any
investigation by or on behalf of

                                       21
<Page>

Lessor into the affairs of Lessee, by the performance of this Lease or by any
other act or thing done or omitted to be done by Lessor that would, but for this
Section 5.03(b), prejudice such rights.

          (c) The rights of Lessee in relation to any misrepresentation or
breach of representation or warranty by Lessor shall not be prejudiced by any
investigation by or on behalf of Lessee into the affairs of Lessor, by the
performance of this Lease or by any other act or thing done or omitted to be
done by Lessee that would, but for this Section 5.03(c), prejudice such rights.

                                   ARTICLE VI

                               COVENANTS OF LESSEE

     Section 6.01 MAINTENANCE OF CORPORATE EXISTENCE. Lessee will (a) preserve
and maintain such of its rights, privileges, licenses and franchises in any
jurisdiction where failure to obtain such licenses or qualifications would have
a material adverse effect upon Lessee (but without limiting Lessee's discretion
to determine in which jurisdictions it chooses to do business) or its ability to
perform its obligations hereunder and (b) not merge into or consolidate with or
convey, transfer or lease substantially all of its assets as an entirety to any
Person unless:

               (i) the surviving or acquiring entity has executed an assumption
     agreement in form and substance reasonably satisfactory to Lessor pursuant
     to which the surviving entity has agreed to assume all of Lessee's
     obligations under the Operative Documents, and

               (ii) immediately after the merger, consolidation, transfer or
     lease, no Event of Default shall have occurred or be continuing, and

               (iii) immediately after the merger, consolidation, transfer or
     lease, the net worth of the surviving or acquiring entity shall be at least
     equal to Lessee's net worth immediately prior to such merger, consolidation
     or transfer or lease.

     Section 6.02 MAINTENANCE OF STATUS. Lessee is, and shall remain so long as
it shall be Lessee under this Lease, duly qualified to carry on its business as
an air carrier under applicable Law in accordance with the terms of this Lease
and shall, at all times during the Term, be a Section 1110 Person so long as
such status is a condition to the availability of Section 1110.

     Section 6.03 TAXES AND CHARGES. During the Term, Lessee shall be
responsible for and shall pay or cause to be paid all Taxes, governmental
charges, imposts, fees or levies, imposed upon it, or upon its income or
profits, or upon any property belonging to it, or which are incurred by Lessee
and/or any other operator of the Aircraft in the course of the operation of the
Aircraft or any other aircraft, prior to the date on which any such Tax, charge,
impost, fee or levy, if not paid, would become a Lien upon the Aircraft,
PROVIDED that Lessee shall pay or cause to paid as the same become due for
payment any such charges, imposts, fees or levies which attach to the Aircraft
in the course of the operation of the Aircraft or of any other aircraft and
which are imposed by any Governmental Entity other than a United States Entity
or any Governmental Entity within the United States, unless Lessee shall be
contesting in good faith the imposition or amount of any such Taxes,
governmental charges or levies, and in such case, subject to application of the
proviso, MUTATIS MUTANDIS, set forth in the definition of Permitted Lien.

     Section 6.04 GOVERNMENTAL CONSENTS. Lessee shall maintain in full force and
effect all governmental consents, licenses, authorizations, approvals,
declarations, filings and registrations required to be obtained by it in
connection with its obligations under this Lease and the other Operative
Documents and to take all such actions in connection therewith as may be proper
or advisable. Lessee

                                       22
<Page>

further undertakes to obtain or effect any new or additional governmental
consents, licenses, authorizations, approvals, declarations, filings or
registrations that may become necessary for the performance by it of any of the
terms and conditions of this Lease or any other Operative Document.

     Section 6.05 LIENS. During the Term, Lessee shall not directly or
indirectly create, incur, assume or suffer to exist any Lien on or with respect
to the Aircraft, any Engine or any Part, title thereto or any interest therein,
other than Permitted Liens and shall promptly, at its own expense, duly
discharge any Lien, other than Permitted Liens, if the same shall arise during
the Term with respect to the Aircraft, any Engine or any Part or at any time
thereafter as a result of any act or omission of the Lessee during the Term. The
obligations of Lessee under this Section 6.05 shall survive the assignment,
expiration or other termination of this Lease.

                                   ARTICLE VII

                     COVENANTS OF LESSOR AND WFB; DISCLAIMER

     Section 7.01 QUIET ENJOYMENT. Lessor covenants that so long as no Event of
Default shall have occurred that has not been waived, it will not, and it will
not permit any mortgagee or any other Person acting by or through Lessor
(including Beneficiary and any Financing Party) to take or cause or permit to be
taken any action contrary to Lessee's right to the quiet use and enjoyment of
the Aircraft during the Term, in accordance with the terms hereof.

     Section 7.02 LESSOR'S LIENS. Each of WFB and Owner Trustee covenants that,
for the duration of the Term, it will not create, assume, permit or suffer to
exist any Lessor's Lien (other than Liens arising as a result of a Financing)
and will promptly take such actions as may be necessary to duly discharge any
Lessor's Lien (other than Liens arising as a result of a Financing) at any time
arising at Lessor's sole cost and expense. WFB agrees to indemnify and hold
harmless the Lessee and the Owner Trustee from and against any loss, cost,
expense or damage which may be suffered by the Lessee or the Owner Trustee as a
result of the failure of WFB to discharge and satisfy in full and promptly after
the same shall first become known to it any Lessor's Lien attributable to it in
its individual capacity.

     Section 7.03 DISCLAIMER OF WARRANTIES. THE AIRCRAFT IS TO BE LEASED
HEREUNDER "AS IS, WHERE IS" AND LESSEE HEREBY ACKNOWLEDGES THAT IT HAS HAD THE
OPPORTUNITY TO INSPECT THE AIRCRAFT AS PROVIDED HEREIN PRIOR TO THE DELIVERY
THEREOF. EXCEPT AS EXPRESSLY PROVIDED IN SECTIONS 5.02 AND 7.01, LESSOR HAS NOT
AND SHALL NOT BE DEEMED TO HAVE MADE, AND LESSOR HEREBY SPECIFICALLY DISCLAIMS,
ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AS TO THE AIRWORTHINESS,
VALUE, DURABILITY, COMPLIANCE WITH SPECIFICATIONS, CONDITION, DESIGN, OPERATION,
MERCHANTABILITY, FREEDOM FROM CLAIMS OF INFRINGEMENT OR THE LIKE, OR FITNESS FOR
USE FOR ANY PARTICULAR PURPOSE OF THE AIRCRAFT OR AS TO THE QUALITY OF THE
MATERIAL OR WORKMANSHIP OF THE AIRCRAFT, THE ABSENCE THEREFROM OF LATENT OR
OTHER DEFECTS, WHETHER OR NOT DISCOVERABLE, OR AS TO ANY MATTER WHATSOEVER,
EXPRESS OR IMPLIED (INCLUDING ANY IMPLIED WARRANTY ARISING FROM A COURSE OF
PERFORMANCE OR DEALING OR USAGE OF TRADE), WITH RESPECT TO THE AIRCRAFT; AND
LESSEE HEREBY WAIVES, RELEASES, RENOUNCES AND DISCLAIMS RELIANCE UPON ANY SUCH
WARRANTY OR WARRANTIES.

     LESSOR SHALL NOT HAVE ANY RESPONSIBILITY OR LIABILITY TO LESSEE OR ANY
OTHER AFFILIATE OF LESSEE, WHETHER ARISING IN CONTRACT OR TORT OUT OF ANY
NEGLIGENCE OR STRICT LIABILITY OF LESSOR OR OTHERWISE, FOR (I) ANY LIABILITY,
LOSS OR DAMAGE CAUSED OR ALLEGED TO BE CAUSED DIRECTLY OR INDIRECTLY BY THE
AIRCRAFT OR ANY ENGINE OR BY ANY DEFECT THEREIN, (II) THE USE, OPERATION OR
PERFORMANCE OF THE AIRCRAFT OR ANY RISKS RELATING THERETO, (III) ANY
INTERRUPTION OF SERVICE, LOSS OF BUSINESS OR ANTICIPATED PROFITS OR
CONSEQUENTIAL

                                       23
<Page>

DAMAGES OR (IV) THE DELIVERY, OPERATION, SERVICING, MAINTENANCE, REPAIR,
IMPROVEMENT OR REPLACEMENT OF THE AIRCRAFT. THE WARRANTIES AND REPRESENTATIONS
OF LESSOR SET FORTH IN THIS AGREEMENT ARE EXCLUSIVE AND IN LIEU OF ALL OTHER
REPRESENTATIONS OR WARRANTIES WHATSOEVER, EXPRESS OR IMPLIED, AND LESSOR SHALL
NOT BE DEEMED TO HAVE MADE ANY OTHER REPRESENTATIONS OR WARRANTIES.

     Section 7.04 CITIZENSHIP. WFB represents and warrants that it is and on the
Delivery Date will be a Citizen of the United States. If WFB does not comply
with the requirements of this Section 7.04, the Lessor and the Lessee hereby
agree that no Default shall be deemed to exist due to non-compliance by the
Lessee with the registration requirements set forth in Section 8.05 of this
Lease and Section 5 of Exhibit A-2 occasioned solely by such noncompliance of
WFB. WFB covenants that if at any time on or after the Delivery Date any of its
officers shall have actual knowledge that it has ceased to be a Citizen of the
United States, it will resign immediately as the Owner Trustee. WFB further
covenants that if at any time it appears reasonably probable that it will cease
to be a Citizen of the United States based on information that is (i) known to a
Responsible Officer of WFB or (ii) generally known to the public, it will
promptly so notify, to the extent permitted by law, the Lessee.

     Section 7.05 OTHER BUSINESS. Owner Trustee will not enter into any business
or other activity except as contemplated by the Operative Documents.

     Section 7.06 COMPLIANCE WITH TRUST AGREEMENT. Each of WFB and the Owner
Trustee agrees with the Lessee that so long as this Lease shall be in effect it
will (i) comply with all of the terms of the Trust Agreement applicable to it in
its respective capacity, the noncompliance with which would materially adversely
affect Lessee and (ii) not take any action, or cause any action to be taken, to
amend, modify or supplement any other provision of the Trust Agreement in a
manner that would materially adversely affect Lessee without the prior written
consent of Lessee.

     Section 7.07 SECURITIES ACT. None of WFB, the Lessor or any Person
authorized by either of them to act on its behalf has directly or indirectly
offered any interest in the Trust Estate, or in any similar security relating to
the Trust Estate, for sale to, or solicited any offer to acquire any such
interest or security from, or has sold any such interest or security to, any
Person in violation of the Securities Act of 1933, as amended, or any applicable
state securities laws.

     Section 7.08 PERFORMANCE OF AGREEMENTS. Owner Trustee shall perform its
obligations under the Operative Documents to which it is a party in accordance
with the terms thereof.

     Section 7.09 ACTIONS WITH RESPECT TO TRUST ESTATE, ETC. Neither WFB, in its
individual capacity, nor the Owner Trustee will take any action to subject the
Trust Estate or the trust established by the Trust Agreement, as debtor, to the
reorganization or liquidation provisions of the Bankruptcy Code or any other
applicable bankruptcy or insolvency statute.

                                  ARTICLE VIII

                   POSSESSION; SUBLEASING; MAINTENANCE AND USE

     Section 8.01 POSSESSION. (a) PERMITTED TRANSFERS. Lessee will not without
the prior written consent of Lessor (which consent will not be unreasonably
withheld or delayed), assign, pledge or otherwise encumber this Lease or sublet
or transfer possession or operational control of the Aircraft or any Engine
leased hereunder or install any Engine or permit any Engine to be installed on
any airframe other than the Airframe; PROVIDED, HOWEVER, that if (x ) except as
expressly permitted in Section 8.05 and in Section 5 of EXHIBIT A-2, the action
to be taken shall not affect the registration of the Aircraft and (y )

                                       24
<Page>

all necessary approvals of each Governmental Entity having jurisdiction over the
Aircraft, Lessee or other relevant Person have been obtained, then subject to
the limitations set forth in Sections 8.01(b ) and (c ), Lessee may, without the
consent of Lessor:

               (i) deliver possession of the Aircraft, Airframe or any Engine or
     any Part thereof to a Maintenance Contractor for testing or other similar
     purposes or for service, repair, maintenance, testing or overhaul work on
     the Aircraft or for alterations or modifications in or additions to the
     Aircraft to the extent required or permitted by the terms hereof;

               (ii) install any Engine on an airframe owned by Lessee free and
     clear of all Liens, except (A) Permitted Liens or those that apply only to
     the engines (other than Engines), appliances, parts, instruments,
     appurtenances, accessories, furnishings and other equipment (other than
     Parts) installed on such airframe and (B) the Lien of any mortgage that
     expressly and effectively provides that such Engine shall not become
     subject to the Lien thereof, notwithstanding the installation of such
     Engine on any airframe subject to such Lien, unless and until Lessee shall
     become the owner of such Engine;

               (iii) install any Engine on an airframe leased to Lessee or
     purchased by Lessee subject to a conditional sale or other security
     agreement; PROVIDED that (A) such airframe is free and clear of all Liens
     except the rights of the parties to the lease or conditional sale or other
     security agreement covering such airframe and except Liens of the type
     permitted by Section 8.01(a)(ii)(A) and (B); and (B) there shall be in
     effect between Lessee and such lessor or conditional vendor or other
     secured party of such airframe a written agreement (which may be the lease
     or hire purchase or conditional sale agreement covering such airframe)
     whereby such lessor or conditional vendor or other secured party expressly
     and effectively agrees that neither it nor its successors and assigns will
     acquire or claim any right, title or interest in such Engine by reason of
     such Engine's being installed on such airframe at any time while such
     Engine is subject to this Lease; and PROVIDED FURTHER, that the rights of
     any transfer permitted by this Section 8.01 shall be subject and
     subordinate to all of the terms of this Lease, including, without
     limitation, Lessee's obligation to return the Engines at the end of the
     Term and Lessor's right to repossession pursuant hereto, and Lessee shall
     remain primarily liable hereunder for the performance of all of the terms
     of this Lease to the same extent as if such transfer had not occurred;

               (iv) so long as no Specified Default shall have occurred and be
     continuing, sublease the Aircraft to any Permitted Sublessee;

               (v) enter into a charter or wet lease or other similar
     arrangement, which shall not constitute a transfer of possession hereunder
     so long as (A) no Person other than the Lessee is granted any legally
     enforceable possessory interest in the Aircraft and the Lessee retains
     operational control of the Aircraft at all times, (B) Lessee will remain
     primarily responsible for the performance of all terms of this Lease and
     the other Operative Documents, and (C) any such wet lease or other
     arrangement does not preclude Lessee from performing any of its obligations
     under this Lease;

               (vi) so long as no Specified Default shall have occurred and be
     continuing, subject any Engine to an interchange or pooling agreement
     approved by the Lessor (such approval not to be unreasonably withheld in
     the case of any such Engine interchange agreement solely among Section 1110
     Persons) and that is applicable to other similar property owned by or
     leased to the Lessee and is entered into by the Lessee in the ordinary
     course of its airline business, PROVIDED, that (A) no such agreement or
     arrangement shall under any circumstances result in, contemplate or require
     the transfer of title to any Engine and (B) if the Lessor's title to any
     Engine shall

                                       25
<Page>

     nevertheless be divested under any such agreement or arrangement, such
     divestiture shall be deemed to be an Event of Loss with respect to such
     Engine and the Lessee shall comply with Section 12.02 hereof in respect
     thereof; and

               (vii) so long as no Specified Default shall have occurred and be
     continuing, transfer possession of the Airframe or any Engine to the United
     States of America, or to a foreign government, when required by applicable
     Law (it being understood that nothing in this clause (viii) shall relieve
     the Lessee from its obligations under Section 12.01(a) if such transfer
     becomes an Event of Loss), in which event Lessee shall promptly notify
     Lessor in writing of any such transfer of possession.

     In the event that Lessee shall have entered into a mortgage, lease or
conditional sale agreement complying with the provisions of Section 8.01(a)(ii)
or (iii), Lessor hereby agrees, for the benefit of the mortgagee, lessor or
conditional vendor under such agreement, that Lessor and its successors and
assigns shall not acquire or claim, as against such mortgagee, lessor or
conditional vendor, any right, title or interest in any engine owned by such
person or in which it has a security or ownership interest by reason of such
engine's being installed on the Airframe.

          (b) LIMITATIONS ON TRANSFERS. With respect to any transfer pursuant to
     Section 8.01(a):

               (i) the rights of any transferee pursuant to a transfer or other
     arrangement permitted by Section 8.01(a) shall be subject and subordinate
     to all the terms of this Lease and to the rights of Lessor in the Aircraft
     and this Lease, PROVIDED that, in the case of a transfer pursuant to
     Section 8.01(a)(ii) and (iii), Lessee shall ensure that the lease,
     mortgage, hire purchase or conditional sale agreement pursuant to which the
     airframe on which an Engine is installed is leased or purchased by the
     Lessee contains a clause similar to the last proviso of Section
     8.01(a)(iii);

               (ii) Lessee shall remain primarily liable hereunder for the
     performance of all of the terms hereof to the same extent as if such
     transfer or other arrangement had not occurred, and no such transfer or
     other arrangement pursuant to the terms of Section 8.01(a) shall in any way
     discharge or diminish any of Lessee's obligations to Lessor hereunder; and

               (iii) Lessee shall be responsible for filing or recording all
     such instruments, including, if applicable, this Lease and an aircraft
     mortgage, as may be necessary to perfect and preserve the respective
     interests of Lessor and any Financing Party in the Aircraft and this Lease
     in the State of Registration at its sole expense, notwithstanding any
     provision of this Lease to the contrary.

          (c) LIMITATIONS ON SUBLEASES. With respect to any Sublease pursuant to
     Section 8.01(a)(iv):

               (i) Prior to the end of the Recovery Period, Lessee may not enter
     into a Sublease (A) with any Permitted Sublessee domiciled in a country
     other than the United States, (B) or with any "tax-exempt entity," within
     the meaning of Section 168(h)(2) of the Code, or (C) that would result in a
     determination by any United States taxing authority that the Aircraft will
     be treated as "used predominantly outside the United States" within the
     meaning of Section 168(g) of the Code that would result in the cost
     recovery deductions to Lessor being less than the maximum allowable to a
     United States owner of the Aircraft, unless Lessee has prepaid on a lump
     sum basis, prior to the commencement of such Sublease, an amount equal to
     any indemnity obligation

                                       26
<Page>

     of the Lessee due under the Tax Indemnity Agreement. The Country List in
     Exhibit F shall be subject to review from time to time, and Lessee may
     propose additions thereto, subject to the consent of Lessor not to be
     unreasonably withheld, and Lessor may propose deletions therefrom in its
     reasonable discretion.

               (ii) With respect to any Sublease, Lessee shall notify Lessor as
     soon as a copy of the proposed Sublease is available and in any event not
     less than 30 days prior to the execution of any such Sublease or, if later,
     the commencement of such Sublease, and together with such notice, Lessee
     will deliver promptly to Lessor a copy of such proposed Sublease and, if
     requested by Lessor, other documents reasonably related to such proposed
     Sublease and Permitted Sublessee.

               (iii) Lessee shall not enter into any Sublease unless:

                    (A) the term (including any option of the Permitted
          Sublessee to renew or extend) of any such Sublease does not continue
          beyond the end of the Term, unless (x) no Specified Default shall have
          occurred and be continuing at the commencement of such Sublease and
          (y) Lessee shall have irrevocably committed to purchase the Aircraft
          pursuant to the terms hereof;

                    (B) such Permitted Sublessee is prohibited from
          sub-subleasing the Aircraft or, except to the extent provided in
          subclause (F), otherwise assigning, granting or transferring any of
          its rights, obligations or interests with respect thereto or under the
          Sublease;

                    (C) the Sublease by its terms is expressly and effectively
          subject and subordinate to all of the terms of this Lease, and to
          Lessor's rights, powers or remedies hereunder, including Lessor's
          right pursuant to the exercise of its rights and remedies hereunder to
          avoid such Sublease and to recover the Aircraft from Lessee;

                    (D) such Permitted Sublessee is not on the effective date of
          such Sublease in default thereof in any material respect, with or
          without giving of notice or passage of time;

                    (E) if such Permitted Sublessee is domiciled in the United
          States, the Aircraft is and remains registered, and eligible for
          registration, in Lessor's name in accordance with the provisions
          hereof;

                    (F) the terms and conditions of such Sublease (1) shall not
          permit any Sublessee to perform any act not permitted to Lessee, (2)
          shall either (x) impose on the Sublessee obligations that are
          substantially the same as those contained in Sections 8.01(a)
          (PROVIDED that Sublessee may only be authorized to make the transfers
          permitted in clauses (i), (ii), ( iii ) and (v) of Section 8.01(a)),
          Section 8.01(b), Sections 8.02 through 8.08, Section 9.01, Section
          9.02(a) and (b), and Section 9.03 (PROVIDED that only pooling
          arrangements approved in advance by Lessor shall be permitted) or (y)
          permit Lessee to continue to perform its obligations thereunder, (3)
          shall provide for the inspections contemplated by Section 13.02, and
          (4) shall not delegate to Sublessee any of the obligations of Lessee
          under Article XVIII; and

                                       27
<Page>

                    (G) such Permitted Sublessee has provided evidence
          satisfactory to Lessor of insurance coverage required by Article XI
          with respect to the operation of the Aircraft by such Permitted
          Sublessee.

               (iv) Lessee may not enter into any Sublease the provisions of
     which would prevent Lessee from complying with the terms of EXHIBIT D-1 and
     EXHIBIT D-2 hereto.

               (v) In the case of any Sublease that has a term greater than one
     year (assuming that any renewal options in such Sublease are exercised), as
     security for the due and punctual payment of all Rent payable by Lessee,
     and the timely performance and observance by Lessee of all covenants made
     by it under this Lease, Lessee hereby grants to Lessor a security interest
     in all of Lessee's right, title and interest in and to any such Sublease of
     the Aircraft together with all renewals of such Sublease executed or in
     effect from time to time, and all payments, including rent, insurance
     proceeds (other than public liability insurance proceeds) and all other
     amounts due and to become due thereunder (other than indemnity payments for
     the account of Lessee) and all proceeds of the foregoing; PROVIDED, that
     Lessor shall be exclusively entitled to exercise all of Lessee's rights and
     remedies under each Sublease of the Aircraft, including the right to
     demand, collect, sue, make claims for, and otherwise be paid all rent and
     other amounts due and to become due under each such Sublease, only from and
     after the occurrence of an Event of Default hereunder.

               (vi) With respect to any Sublease that has a term longer than one
     year, such Sublease shall (A) be accompanied by a security assignment in
     form and substance reasonably satisfactory to Lessor, and (B) be filed,
     together with such security assignment and such other documents as are
     necessary to perfect, protect and preserve the security interest granted
     hereby with respect to such Sublease, with the FAA or other government of
     registry of the Aircraft, as applicable, and with the necessary state
     recording offices pursuant to the UCC, or with such other recording offices
     as are required under applicable Law, and Lessee shall take such actions as
     Lessor shall reasonably request to perfect the security interest in the
     Sublease.

               (vii) Concurrently with entering into any Sublease, Lessee shall
     give written notice to the Permitted Sublessee of Lessor's right to be paid
     such rents and Lessor's other rights with respect to the Sublease from and
     after the occurrence of an Event of Default, and Lessee and such Permitted
     Sublessee shall each acknowledge in writing that all such payments shall be
     made directly to Lessor, and as to Lessor's other rights and remedies wish
     respect thereto.

               (viii) Lessee's right to enter into any Sublease is further
     conditioned upon Lessee delivering to Lessor (A) an opinion of counsel
     (which counsel and opinion shall be reasonably satisfactory to Lessor) to
     the effect, among other things, that (1) if the country in which the
     Permitted Sublessee has its principal office and domicile is not the United
     States, such country would give effect to the title of Lessor in and to the
     Aircraft, and permit the registration of the Aircraft in the name of Lessor
     (or Lessee or Permitted Sublessee, as appropriate), and (2) if the
     Permitted Sublessee is a Section 1110 Person, an opinion of counsel that
     the Lessee as lessor is entitled to the benefits of Section 1110 (assuming
     no change in United States law which would make such benefits unavailable
     to aircraft leases generally under United States law), and (B) a notice
     stating the identity of the applicable Permitted Sublessee and stating that
     no Specified Default shall have occurred and be continuing and that such
     Sublease complies with the requirements of this Section 8.01 and to the
     knowledge of Lessee after due inquiry the applicable Permitted Sublessee is
     not then subject to a proceeding or final order under applicable
     bankruptcy, insolvency or reorganization laws.

                                       28
<Page>

               (ix) Any consolidation or merger of Lessee or conveyance,
     transfer or lease of all or substantially all of Lessee's assets permitted
     by Section 6.01 shall not be prohibited by this Section 8.01(c).

          (d) [Intentionally Omitted]

          (e) EXPENSES. Lessee hereby agrees to reimburse all reasonable out of
pocket costs and expenses of Lessor (including the reasonable fees and expenses
of counsel) incurred in connection with any re-registration of, or any Sublease
or other permitted transfer relating to the Aircraft.

          (f) NO ASSIGNMENT. Lessee shall not assign, except in accordance with
this Section 8.01 or as otherwise expressly provided in this Lease, any interest
in this Lease or any of its rights hereunder or in any property leased
hereunder. Lessor shall have no responsibility for any increased costs resulting
from any assignment that is provided for under Section 8.01.

     Section 8.02 LAWFUL INSURED OPERATIONS. (a) Lessee will operate and use the
Aircraft only in or in connection with lawful
commercial passenger airline operations.

          (b) Lessee will not maintain the Aircraft, or permit the Aircraft to
be maintained in a manner contrary to the Maintenance Program or in violation of
any applicable Law or any certificate of airworthiness, permit, license or
registration issued by the Aeronautical Authority, except to the extent being
contested diligently and in good faith, and Lessee will not use or operate the
Aircraft, or permit the Aircraft to be used or operated in a manner contrary to
the Lessee's operating manuals approved by the Aeronautical Authority or
instructions or the Maintenance Program or in violation of any applicable Law or
in violation of any certificate of airworthiness, permit, license or
registration issued by the Aeronautical Authority, except to the extent being
contested diligently and in good faith, PROVIDED that in either case such
contest does not create any material risk of the loss or forfeiture of the
Aircraft or to cancellation, suspension or loss of insurance coverage.

          (c) [Intentionally Omitted]

          (d) Lessee will not operate the Aircraft, or permit the Aircraft to be
operated during the Term unless the Aircraft is covered by insurance as required
by the provisions hereof and such operation is in compliance with the terms of
such insurance.

          (e) Lessee solely shall bear any costs and expenses that may arise
from any loss or damage (with respect to both the Aircraft and any affected
third parties) that may occur during or in connection with operations of the
Aircraft including those that are excluded from coverage by the insurance
maintained in accordance with Article XI.

          (f) Lessee shall not at any time represent Lessor as carrying goods or
passengers in the Aircraft or as being in any way connected or associated with
the operation or carriage being undertaken by Lessee or as having any
operational interest in or responsibility for the Aircraft.

     Section 8.03 RESTRICTIONS ON OPERATION. Lessee shall not operate or locate
the Aircraft or permit the Aircraft to be operated or located on any routes or
in any country in any manner that (i) would be in breach of or violate any
relevant Law of the United States or in or over any area that may expose Lessor
or any Financing Party to any penalty, fine, sanction or other liability,
whether civil or criminal, under any applicable Law, or (ii), subject to Section
8.05, would result in the Aircraft being ineligible for registration in the name
of Lessor under 49 U.S.C. 44102(a)(1)(C). Lessee shall not operate the Aircraft
in any geographical area for which it is not duly authorized. Lessee shall not
use the Aircraft for training of

                                       29
<Page>

any Person other than its own employees and shall not use the Aircraft for
training its personnel more than it uses any other EMB-145 aircraft in its
fleet, whether owned or leased.

     Section 8.04 AOC. Lessee shall continue to hold an air carrier operator's
certificate with an operating specification allowing it to operate aircraft of
the same type as the Aircraft and for the purpose for which the Aircraft is
permitted to be used hereunder issued by the FAA.

     Section 8.05 REGISTRATION AND OPERATION. Except as otherwise permitted by
Section 5 of Exhibit A-2, or as otherwise required by the Federal Aviation Act
or rules, regulations, or orders promulgated thereunder, or to the extent that
such registration cannot be effected or continued due solely to the Lessor's
failure to comply with the citizenship or other eligibility requirements for
registration of commercial aircraft under the Federal Aviation Act or any rule,
regulation or order promulgated thereunder, Lessee shall at its expense keep the
Aircraft at all times registered under the applicable Laws of the United States
in the name of Lessor and, at all times that the Aircraft is being used and
operated for the public transport of passengers, shall insure that the Aircraft
possesses a valid, current certificate of airworthiness and such other
certificates, licenses, permits and authorizations as may be from time to time
required for the use and operation of the Aircraft for the public transport of
passengers; PROVIDED that the Lessor shall execute and deliver all such
documents as the Lessee may reasonably request for the purpose of effecting,
continuing or (as provided in this Section 8.05 of this Lease and Section 5 of
Exhibit A-2) changing such registration.

     Section 8.06 INSIGNIA. On the Delivery Date or promptly thereafter, but in
any event prior to the Aircraft being placed in service, Lessor shall place, and
at all times during the Term, Lessee shall maintain, in the cockpit of the
Airframe in a prominent location and on the gearbox of each Engine, a fireproof
plate of a reasonable size bearing the legend:

          "THIS AIRCRAFT/ENGINE IS OWNED BY WELLS FARGO BANK NORTHWEST, NATIONAL
     ASSOCIATION, NOT IN ITS INDIVIDUAL CAPACITY, BUT SOLELY AS OWNER TRUSTEE
     (THE "OWNER"), AND IS LEASED BY THE OWNER TO CHAUTAUQUA AIRLINES, INC."

Lessee agrees to make such changes to such identification plates as Lessor may
reasonably request from time to time.

     Section 8.07 REMOVED ENGINES. At any time when an Engine is installed on an
airframe or aircraft other than the Airframe or the Aircraft, Lessee shall
ensure that insurance cover is maintained incompliance with Article XI .
Notwithstanding anything herein to the contrary, Lessee shall not install, and
shall not permit the installation of, any Engine on any airframe that is not an
EMB-145 airframe or, if fully compatible in accordance with Manufacturer's and
Engine Manufacturer's specifications, an EMB-140 airframe.

     Section 8.08 MAINTENANCE. Lessee, at its own cost and expense, shall:

          (a) perform or cause a Maintenance Contractor to perform all service,
inspections, repairs, maintenance, modifications, alterations, overhaul, checks
(including heavy checks) and testing, (i) as may be required under the rules and
regulations of the Aeronautical Authority applicable to the Aircraft and in
compliance with the Maintenance Program and good commercial practice, (ii) as
may be included in any ADs, (iii) so as to keep the Aircraft airworthy (except
as otherwise provided in Section 8.08(b)) and in good operating order, repair,
condition and appearance and in at least as good operating condition and
appearance as when delivered to Lessee subject to normal wear and tear
associated with the operation and maintenance thereof in accordance herewith and
(iv) as required pursuant to Section 1(l) of EXHIBIT D-1 OR EXHIBIT D-2, AS
APPLICABLE. Lessee shall do each of the foregoing and shall incorporate Service

                                       30
<Page>

Bulletins, in the same manner and with the same care as is the case with similar
aircraft and engines of the same make and model as the Aircraft and Engines
owned by or operated by or on behalf of Lessee, without discrimination (as
compared to other similar aircraft owned or operated by Lessee) in contemplation
of the expiration or termination of this Lease with respect to the use,
operation or mandatory maintenance, other than the withdrawal of the Aircraft
from service as necessary to prepare the Aircraft for return to Lessor upon such
expiration or termination. Nothing in this Section 8.08(a) shall be construed in
such a manner as to require Lessee to modify the Aircraft in such a manner as to
reflect a configuration that is unique to Lessee solely because Lessee may be so
modifying other aircraft operated by it;

          (b) keep the Aircraft (i) in such condition as may be necessary to
enable the airworthiness certification of the Aircraft to be maintained in good
standing at all times (except during periods of maintenance, repair or
modification when the Aircraft is not operated, during any period when the
Aeronautical Authority shall have revoked or suspended the airworthiness
certification of all aircraft of the same type, model and series as the
Aircraft, and during any period which the Aircraft is in long-term storage) and
(ii) in compliance with Part 121 of the Federal Aviation Regulations (as set
forth in Title 14 of the U.S. Code of Federal Regulations), or, if the Aircraft
has been re-registered in accordance with the provisions of this Lease in a
country other than the United States, the requirements of the civil aviation
authority having jurisdiction over the Lessee's or any Permitted Sublessee's
operations, and all other applicable Law; and

          (c) maintain throughout the Term in a form that is accurate, complete,
and current all Aircraft Documents listed on EXHIBIT B and all log books, all
manuals and revisions and updates thereto, all certification and inspection
records (including without limitation all certifications and forms required by
the Aeronautical Authority and otherwise and all reports, x-rays, video tapes,
print-outs and other non destructive testing documents), and all other material
required by the Aeronautical Authority or required by the Maintenance Program
relating to operation, maintenance or other activity of the Aircraft during the
Term, with all such Aircraft Documents being in English.

     Section 8.09 COSTS. Lessee shall be responsible for and shall hold Lessor
harmless from all costs incurred in the operation of the Aircraft for profit or
otherwise, including, without limitation, the costs and expenses of flight
crews, cabin personnel, fuel, oil, lubricants, maintenance, insurance, landing
fees, navigation fees, airport charges and any and all other expenses or claims
of any kind or nature, directly or indirectly incurred or imposed in connection
with or related to the use, movement, operation, maintenance, repair, storage or
location of the Aircraft during the Term.

                                   ARTICLE IX

                       REPLACEMENT OF PARTS; MODIFICATIONS

     Section 9.01 REPLACEMENT AND REMOVAL OF PARTS. (a) Except as otherwise
provided in Section 9.01(f) or if the Airframe or an Engine to which a Part
relates has suffered an Event of Loss, Lessee, at its own cost and expense,
shall promptly replace or ensure the replacement of all Parts that, from time to
time, may become worn out, lost, stolen, destroyed, seized, confiscated, damaged
beyond repair or rendered unfit for use for any reason whatsoever.

          (b) In the ordinary course of maintenance, service, repair, overhaul
or testing during the Term, Lessee may at its own cost and expense cause to be
removed or allow the removal of any Parts, whether or not worn out, destroyed,
damaged beyond repair or rendered unfit for use, PROVIDED that Lessee shall
replace at its own cost and expense such Parts as promptly as practicable (any
Part replaced

                                       31
<Page>

pursuant to Section 9.01(a) or (b), a "REPLACEMENT PART"), PROVIDED FURTHER,
HOWEVER, that Lessee may elect not to replace Parts only to the extent provided
in Section 9.01(f).

          (c) All Replacement Parts shall be free and clear of all Liens, shall
be Aeronautical Authority-approved and fully interchangeable, shall have been
overhauled, repaired and inspected by a Maintenance Contractor, except for
Permitted Liens and for pooling arrangements to the extent permitted by Section
9.03, and shall be in as good operating condition as, and have a utility at
least equal to and a value reasonably approximating, the Parts replaced
(assuming such Parts were in the condition and repair in which they were
required to be maintained by the terms hereof) and all serviceable tags or other
required documentation relating to the last overhaul of such Parts performed by
an Aeronautical Authority approved facility shall be provided and maintained by
Lessee.

          (d) All Parts owned by Lessor that are at any time removed from the
Aircraft shall remain the property of Lessor and subject to this Lease, no
matter where located, until such time as such Parts shall be replaced by parts
which have been incorporated or installed in or attached to the Aircraft and
that meet the requirements of Replacement Parts specified in Section 9.01(c) or
as otherwise provided in Section 9.01(f). Immediately upon any Replacement Part
becoming incorporated or installed in or attached to the Aircraft as above
provided, without further act, (i) title to the removed Part shall thereupon
vest in Lessee, free and clear of all rights of Lessor and any Financing Party
and Lessor's Liens, and such removed Part shall no longer be deemed a Part
hereunder, (ii) title to such Replacement Part shall thereupon vest solely in
Lessor, and (iii) such Replacement Part shall become subject to this Lease and
be deemed a Part for all purposes hereof to the same extent as the Part which it
has replaced.

          (e) Lessee shall be entitled, so long as no Event of Default shall be
continuing, to substitute, replace or renew any Part with a part that does not
satisfy the requirements of Section 9.01(c) PROVIDED that:

               (i) there shall not have been available to Lessee at the time and
     in the place that such substitute or replacement part was required to be
     installed on the Airframe or an Engine a substitute or replacement part
     complying with such requirements;

               (ii) it would have resulted in an unreasonable disruption of the
     operation of the Aircraft to have grounded the Aircraft until such time as
     a substitute or replacement part complying with such requirements became
     available for installation in or on the Aircraft; and

               (iii) as soon as practicable after installation of the same in or
     on the Airframe or Engine (which, in the case of an Engine, shall be no
     later than the next off-wing shop visit of the Engine) Lessee shall remove
     any such part not complying with such requirements and replace or
     substitute the same with a part complying with the same.

          (f) Lessee may, at its own cost and expense at any time during the
Term, remove or cause to be removed any Part from the Airframe or an Engine if
(i) such Part is in addition to, and not in replacement of or in substitution
for, any Part originally incorporated or installed in or attached to the
Airframe or such Engine at the time of delivery thereof hereunder or any Part in
replacement of, or in substitution for, any such original Part and (ii) such
Part can be removed from the Airframe or such Engine without materially (as
measured on an aggregate basis) diminishing or impairing the value, condition,
utility, airworthiness that the Airframe or such Engine would have had at the
time of removal had such removal not been effected by Lessee, assuming the
Aircraft was otherwise maintained in the condition required by this Lease,
PROVIDED that Lessee also may remove Parts that the Lessee deems obsolete or no
longer suitable or appropriate for use in the Aircraft, Airframe or such Engine
so long as the aggregate value of such removed Parts (based on their value as of
the Delivery Date) does not exceed

                                       32
<Page>

$200,000. Lessee shall only make such removals referred to in the proviso to the
first sentence of this Section 9.01(f) if such removals are made in the same
manner and with the same care as removals made in the case of similar aircraft
and engines of the same make and model as the Aircraft and Engines owned by or
operated by or on behalf of Lessee, without discrimination (as compared to other
similar aircraft owned or operated by Lessee). Upon the removal of any such
Part, title thereto shall vest, without further act, in Lessee free and clear of
all rights of Lessor and such Part shall no longer be deemed a Part hereunder.
Any Part not removed as above provided prior to the return of the Aircraft to
Lessor hereunder shall remain the property of Lessor.

          (g) Notwithstanding anything to the contrary contained in this Section
9.01, Lessee may not replace or remove any Parts in a manner that would prevent
it from complying with Section 1(b) of EXHIBIT D-1 or EXHIBIT D-2, as
applicable.

     Section 9.02 ALTERATIONS, MODIFICATIONS AND ADDITIONS. (a) Lessee, at its
own expense, shall promptly make or ensure or allow the making of such
alterations, modifications and additions to the Aircraft as may be required from
time to time to meet the applicable standards of the FAA or to comply with any
mandatory Law, rule, directive, bulletin, notice, regulation or order of any
Governmental Entity having jurisdiction over the Aircraft; PROVIDED that Lessee
may in good faith and by appropriate procedure, contest the validity or
application of any such standard in any reasonable manner which does not
materially and adversely affect the interests of the Lessor or Beneficiary and
does not involve any material risk of sale, forfeiture or loss of the Aircraft
or the interest of the Lessor or Beneficiary therein, any material risk of civil
penalty or any discernable risk of criminal liability being imposed on Lessor or
Beneficiary.

          (b) So long as no Specified Default has occurred and is continuing,
Lessee, at its own expense, may from time to time make other alterations,
modifications and additions to the Aircraft, subject to the following conditions
and limitations:

               (i)  Lessee may not make any such alteration, modification or
                    addition in a manner that would prevent it from complying
                    with Section 1(b) of EXHIBIT D-1 or EXHIBIT D-2, as
                    applicable;

               (ii) no such alteration, modification or addition diminishes the
                    remaining warranty status, value or utility, or impairs the
                    condition or airworthiness, of the Aircraft;

               (iii) title to all Parts incorporated or installed in or attached
                    or added to the Aircraft as a result of such alteration,
                    modification or shall vest immediately in Lessor and become
                    subject to this Lease, without the necessity for any further
                    act of transfer, document or notice

               (iv) Lessee shall only make such alterations, modifications and
                    additions in the same manner and with the same care as are
                    made in the case of similar aircraft of the same make and
                    model as the Aircraft owned by or operated by or on behalf
                    of Lessee, without discrimination (as compared to other
                    similar aircraft owned or operated by Lessee; PROVIDED that
                    Lessee shall be deemed to be in compliance with this Section
                    9.02(b)(iv) with respect to any alteration or modification
                    made to the Aircraft to meet the operational requirements of
                    any code share party under a code share or other similar
                    arrangement that is also made to other aircraft leased or

                                       33
<Page>

                    owned by Lessee that are subject to code sharing or similar
                    arrangements with such code share party; and

               (v)  No such alteration, modification or addition shall cause the
                    Aircraft to be limited use property, but without limiting
                    Lessee's right to remove Parts pursuant to Section 9.01(f).

          (c) In no event shall Lessor bear any liability or cost for any
alteration, modification or addition to, or for any grounding or suspension of
operations or of the certification of, the Aircraft, or for any loss of revenue
arising therefrom.

     Section 9.03 POOLING OR PARTS LEASING. Any Part removed from the Airframe
or from any Engine as provided in Section 9.01 may be subjected by the Lessee to
a pooling or parts leasing agreement or arrangement that (i) is sponsored or
supervised by the Manufacturer or Engine Manufacturer or a manufacturer of such
Parts, (ii) is entered into in connection with a power by the hour agreement,
(iii) is based on immediate operational necessity or (iv) has been approved in
advance by the Lessor (such approval not to be unreasonably withheld), PROVIDED
that the part replacing such removed Part shall be incorporated or installed in
or attached to such Airframe or Engine in accordance with Section 9.01 as
promptly as practicable after the removal of such removed Part. In addition, any
Replacement Part when incorporated or installed in or attached to the Airframe
or any Engine in accordance with Section 9.01 may be owned by another airline or
vendor as customary in the airline industry, subject to any such pooling or
parts leasing arrangement, PROVIDED that the Lessee, at its expense as promptly
thereafter as reasonably practicable, either (x) causes title to such temporary
Replacement Part to vest in the Lessor in accordance with Section 9.01(d) by the
Lessee acquiring title thereto for the benefit of the Lessor free and clear of
all Liens except Permitted Liens, at which time such temporary replacement part
shall become a Part and become subject to this Lease or (y) replaces such
temporary Replacement Part by incorporating or installing in or attaching to
such Airframe or Engine a further Replacement Part owned by the Lessee free and
clear of all Liens except Permitted Liens and by causing title to such further
Replacement Part to vest in the Lessor in accordance with Section 9.01(d).

                                    ARTICLE X

                            MANUFACTURERS' WARRANTIES

     Section 10.01 ASSIGNMENT. Lessor hereby assigns to Lessee all rights Lessor
has under any warranty, express or implied, with respect to the Aircraft and the
Engines or any Parts thereof made by the Manufacturer, the Engine Manufacturer,
or any other Person, and all proceeds thereof and recoveries thereunder under
the Manufacturer Purchase Agreement, Assignment No. 2, the Engine Warranty
Agreement and Engine Warranty Assignment and Consent and otherwise, to the
extent that such warranties exist or may be assigned or otherwise made available
to Lessee; PROVIDED, HOWEVER, that upon the occurrence of an Event of Default
and any termination of this Lease under Section 17.02 hereof, all such rights
shall, without further action or notice, immediately revert to Lessor including
all claims thereunder whether or not perfected. In the event any such warranties
are not assignable to Lessee, Lessor shall use commercially reasonable efforts
at Lessee's expense to enforce such warranties on Lessee's behalf so long as no
Event of Default shall have occurred and not been remedied or waived.

     Section 10.02 LIMITATIONS. Lessee shall not do or omit to do anything (or
permit or fail to prevent the doing or omission of anything) that, or the
omission of which, prejudices any right that Lessor or Lessee may have against
the Manufacturer, the Engine Manufacturer or against the manufacturer or
supplier of any part of the Aircraft or against any maintenance, conversion or
repair facility in respect of the Aircraft or any part thereof.

                                       34
<Page>

                                   ARTICLE XI

                                    INSURANCE

     Section 11.01 PUBLIC LIABILITY AND PROPERTY DAMAGE INSURANCE. Lessee shall,
without expense to the Lessor, maintain or cause to be maintained in effect at
all times during the Term, with an Approved Insurer, public liability insurance
(including, without limitation, aircraft third party, passenger legal liability,
property damage, general third party legal liability and product liability
coverage (in each case, without any exclusion for date recognition coverage) but
excluding manufacturer's product liability coverage) with respect to the
Aircraft in an amount not less than the greater of (x) the amount which Lessee
may carry from time to time on other similar aircraft in its fleet (whether
owned or leased) and (y) the Minimum Liability Amount; PROVIDED that an
agreement of a United States Entity backed by the full faith and credit of the
United States government for the benefit of the Additional Insureds to insure
against or indemnify for substantially the same risks to at least the same
amount shall satisfy the requirements of this Section 11.01, PROVIDED FURTHER,
that on or prior to the date of such agreement, the Lessee shall provide an
Officer's Certificate of the Lessee certifying that any such insurance or
indemnity provides protection no less favorable than insurance coverage that
would comply with this Section 11.01. Such insurance shall be of the type
usually carried by the Lessee with respect to similar aircraft and engines, and
covering risks of the kind customarily insured against by the Lessee and shall
be consistent with generally accepted industry-wide practice for airlines
similarly situated to Lessee with regard to the insurance of aircraft similar to
those operated by Lessee and based or operated in any jurisdiction in which the
Aircraft may then be based or operated.

     During any period of more than thirty (30) days that the Aircraft is placed
in short-term or long-term storage status, the Lessee may modify the insurance
required by this Section 11.01 to modify the amounts of public liability and
property damage insurance, the scope of the risks covered and the type of
insurance, in all circumstances to conform to such insurance customary in the
United States airlines industry for regional air carriers similarly situated
with the Lessee in respect of similar aircraft which are placed in short-term or
long-term storage status, except that in all instances the amounts of coverage
and scope of risk covered and the type of insurance shall be at a minimum no
less favorable than the insurance as from time to time applicable to aircraft
owned or leased by Lessee and in short-term or long-term storage status.

     Section 11.02 INSURANCE AGAINST LOSS OR DAMAGE TO THE AIRCRAFT AND ENGINES.
Subject to the rights of Lessee under Section 11.10, Lessee shall, without
expense to the Lessor, maintain or cause to be maintained in effect at all times
during the Term, with an Approved Insurer, all risk (which may, except as
provided in Section 11.04, exclude war and allied perils (but which shall not
contain any exclusion for date recognition coverage)), agreed value, ground and
flight hull insurance, covering the Aircraft for an amount at all times (even
when the Aircraft is grounded or in storage) not less than the Stipulated Loss
Value from time to time; PROVIDED that, the Lessee shall not be required to
maintain all-risk flight aircraft hull insurance with respect to any period in
which the Aircraft is placed in short term or long term storage status, and
PROVIDED FURTHER that all-risk flight aircraft hull insurance shall be in effect
during any check flights, ferry flights or other flight time during such
storage. Such insurance shall not provide insurers with a right to replace the
Airframe or any Engine with another airframe or Engine. Such hull insurance or
other personal property insurance of the Lessee shall cover Engines or engines
and Parts temporarily removed from the Airframe pending replacement by
installation of the same or similar Engines, engines or Parts on the Airframe in
an amount not less than the fair market value of such Engine or Part. Such
insurance shall be of the type usually carried by the Lessee with respect to
similar aircraft and engines, and covering risks of the kind customarily insured
against by the Lessee and shall be consistent with generally accepted
industry-wide practice for airlines similarly situated to Lessee with regard to
the insurance of aircraft similar to those operated by Lessee and based or
operated in any jurisdiction in

                                       35
<Page>

which the Aircraft may then be based or operated. An agreement of a United
States Entity backed by the full faith and credit of the United States
government to insure against or indemnify for substantially the same risks to at
least the same amount will satisfy any of the requirements of this Section
11.02.

     Section 11.03 ADDITIONAL INSUREDS; LOSS PAYMENT. The Lessee shall cause all
policies of insurance carried in accordance with this Article XI to name the
Additional Insureds as their respective interests may appear as additional
insureds and shall cause all policies required by Section 11.02 to name Lessor
as the sole loss payee. Such policies shall provide with respect to such
Additional Insureds that (a) none of their respective interests in such policies
shall be invalidated by any act or omission or breach of warranty or condition
contained in such policies by the Lessee or, in the case of any particular
Additional Insured, any other Additional Insured; (b) no cancellation or lapse
of coverage for nonpayment of premium or otherwise, and no substantial change of
coverage which adversely affects the interests of any such Additional Insured,
shall be effective as to such Additional Insured until 30 days (or 10 days in
respect of non-payment of premium and, in the case of war risk coverage, such
lesser period as may be applicable) after receipt by such Additional Insured of
written notice from the insurers of such cancellation, lapse or change; (c) they
shall have no liability for premiums, commissions, calls, assessments or
advances with respect to such policies; (d) such policies will be primary
without any right of contribution from any other insurance carried by such
Additional Insureds; (e) the insurers waive any rights of set-off, counterclaim,
deduction or subrogation against such Additional Insureds; (f) shall apply
worldwide and have no territorial restrictions or limitations (except, in the
case of war, hijacking or related perils insurance, as otherwise permitted
hereunder); and (g) shall contain a 50/50% Clause per Lloyd's Aviation
Underwriter's Association Standard Policy Form AVS 103 to the extent a separate
war risk policy is maintained. Each liability policy shall provide that all the
provisions thereof, except the limits of liability, shall operate in the same
manner as if there were a separate policy covering each insured and provide that
the exercise by the insurer of rights of subrogation derived from rights
retained by the Lessee will not delay payment of any claim that would otherwise
be payable but for such rights of subrogation. Each hull policy shall name the
Lessor as loss payee with respect to proceeds payable for an Event of Loss and
where the aggregate insurance proceeds exceed $750,000; PROVIDED that, so long
as the insurers shall not have received written notice that a Specified Default
has occurred and is continuing, if insurance proceeds in the aggregate equal to
$750,000 or less become payable, then such proceeds shall be payable to the
Lessee and, notwithstanding the foregoing, any amounts up to Stipulated Loss
Value (x) of any proceeds which in the aggregate exceed $750,000, (y) of any
proceeds in respect of an Event of Loss or (z) if the insurers shall have
received written notice that a Specified Default has occurred and is continuing,
any proceeds with respect to any single loss, shall be payable to Lessor as loss
payee.

     Section 11.04 WAR RISK. Subject to the rights of Lessee under Section
11.10, if and to the extent that the Lessee or a Permitted Sublessee operates
the Aircraft (a) on routes for which it maintains war risk, hijacking or allied
perils insurance in effect with respect to other similar owned or leased
aircraft in its fleet, (b) on routes (other than routes within the United States
and Canada) where the custom in the industry is to carry war risk insurance, or
(c) in any area of recognized hostilities, the Lessee or such Permitted
Sublessee shall maintain or cause to be maintained a war risks insurance policy
(hull and liability) on the Aircraft covering all of those risks that are
currently enumerated in Lloyds Form AVN 48B (War, Hijacking and Other Perils
Exclusion Paragraph (Aviation)) to the fullest extent possible and any
additional risks that may hereafter be included therein or in any form
succeeding to any of its functions in an amount with respect to hull, not less
than the Stipulated Loss Value and, with respect to liability, in an amount not
less than the Minimum Liability Amount. An agreement of a United States Entity
backed by the full faith and credit of the United States government to insure
against or indemnify for substantially the same risks to at least the same
amount will satisfy any of the requirements of this Section 11.04.

                                       36
<Page>

     Section 11.05 APPLICATION OF HULL INSURANCE PROCEEDS. As between the Lessor
and the Lessee, any payments received under policies of hull or other property
insurance required to be maintained by the Lessee pursuant to Section 11.02 or
11.04, shall be applied as follows:

          (a) if such payments are received with respect to loss or damage
(including an Event of Loss with respect to an Engine) not constituting an Event
of Loss with respect to the Airframe, payments in the aggregate of $750,000 or
less shall be paid over to or retained by the Lessee and, subject to Section
11.03, any payments which in the aggregate are greater than $750,000 shall be
paid over to or retained by the Lessor for payment to the Lessee only upon
performance of its repair or replacement obligation as set forth in Section
12.02;

          (b) if such payments are received with respect to an Event of Loss
with respect to the Airframe, or the Airframe and Engines or engines installed
thereon, and the Airframe is not being replaced by the Lessee pursuant to
Section 12.01(a)(ii) or has not been replaced by Lessee pursuant to Section
12(a)(ii) within one hundred twenty (120) days after the Event of Loss, so much
of such payments as shall not exceed the amounts required to be paid by the
Lessee pursuant to Section 12.01(a)(i) shall be applied in reduction of the
Lessee's obligation to pay such amounts if not already paid by the Lessee and to
reimburse the Lessee if such amounts shall have been paid, and the balance, if
any, of such payments shall be promptly paid over to or retained by the Lessee;

          (c) if such payments are received with respect to the Airframe or the
Airframe and Engines or engines installed thereon as a result of an Event of
Loss with respect thereto and the Airframe is being replaced by the Lessee
pursuant to Section 12.01(a)(ii), such payments shall be paid over to, or
retained by the Lessee, PROVIDED that if the Lessee has not completed such
replacement and the performance of all other obligations under Section 12.01(c),
such payments shall be paid over to, or retained by, the Lessor as security, and
upon completion of, or in connection with a closing for, such replacement, be
paid over to or retained by the Lessee or, if such completion of a replacement
has not occurred within the applicable time period, applied as provided in
Section 11.05(b).

     Section 11.06 INSURANCE BY LESSOR. Nothing in this Article XI shall
prohibit the Lessee, the Lessor, or any other Additional Insured from obtaining
insurance with respect to the Aircraft, any Engines or engines installed on the
Airframe, or any Part for its own account (including, without limitation, in the
case of the Lessee, hull insurance under the same policies maintained pursuant
to this Article XI in amounts in excess of those required to be maintained
pursuant to this Article XI) and any proceeds payable thereunder shall be
payable as provided in the insurance policy relating thereto, PROVIDED that no
such insurance may be obtained which would limit or otherwise adversely affect
the availability of coverage or payment of any insurance required to be obtained
or maintained pursuant to this Article XI, it being understood that all salvage
rights to the Airframe or the Engines shall remain with the Lessee's insurers at
all times.

     Section 11.07 REPORTS, ETC. (a) Lessee will furnish to the Lessor (i) on or
prior to the Delivery Date, insurance certificates describing in reasonable
detail the insurance maintained by Lessee as required pursuant to this Article
XI, (ii) prior to the cancellation, lapse or expiration of the insurance
policies required pursuant to this Article XI, evidence of renewal of such
insurance policies, and (iii) on or prior to the Delivery Date and on or before
the renewal dates of the insurance policies carried by the Lessee pursuant to
this Article XI, a report signed by a firm of aircraft insurance brokers, not
affiliated with the Lessee, appointed by the Lessee and reasonably satisfactory
to the Lessor, stating the opinion of such firm that all premiums in connection
with the insurance then due have been paid and the insurance then carried and
maintained on the Aircraft complies with the terms hereof and, in the case of
renewal insurance, that such renewal insurance will on and after the effective
date thereof so comply with the terms hereof, PROVIDED that all information
contained in such report shall be held confidential by the Lessor and

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Beneficiary and shall not be furnished or disclosed by them to anyone except
their legal counsel, insurance brokers or advisors, bona fide prospective
transferees of the Lessor and Beneficiary and their respective agents (PROVIDED
that they shall agree for the benefit of the Lessee to hold all such information
similarly confidential) or as may be required by applicable Law. The Lessee will
instruct such firm to give prompt written advice to the Lessor of any default in
the payment of any premium and of any other act or omission on the part of the
Lessee of which it has knowledge and which would in such firm's opinion
invalidate or render unenforceable, in whole or in any material part, any
insurance on the Aircraft. The Lessee will also instruct such firm to advise the
Lessor in writing at least 30 days prior to the termination or cancellation of,
or material adverse change in, such insurance carried and maintained on the
Aircraft pursuant to this Article XI (or such lesser period as may be applicable
in the case of war risk coverage).

          (b) Lessee shall use reasonable efforts to notify Lessor promptly of
any event (other than an event constituting an Event of Loss, notice of which
shall be governed by Section 12.01(a) or (b), as applicable) with respect to the
Aircraft, the Airframe, any Engine or any Part thereof that will or may give
rise to a claim under any hull risk insurance policy in excess of $750,000,
PROVIDED that receipt by Lessor of any payments pursuant to Section 11.05(a)
shall be deemed to constitute notice of such event, subject to Lessee providing
such additional information regarding such event as Lessor shall request after
receipt of such payment.

          (c) If at any time and from time to time, Lessor shall identify a
Financing Party to Lessee, Lessee shall cause to be delivered new insurance
certificates and broker's undertakings to ensure that each such Financing Party
is afforded the insurance coverage required under this Lease.

     Section 11.08 NEGATIVE UNDERTAKINGS. (a) Lessee shall not knowingly do or
omit to do or permit to be done or left undone anything whereby any policy
required to be maintained under this Article XI would or may reasonably be
expected to be rendered in whole or in part invalid or unenforceable.

          (b) Without prejudice to the obligations of Lessee under Section
11.08(a), Lessee shall not operate or locate the Airframe or any Engine or
suffer the Airframe or any Engine to be operated or located, (i) in any area or
for carriage of any goods excluded from coverage by any insurance required by
the terms of this Article XI, except in the case of requisition by or any
contract with any Governmental Entity where Lessee obtains an indemnity in lieu
of such insurance from such Governmental Entity against the risks and in the
amounts required by this Article XI in respect of such area or such carriage of
any goods, or (ii) in any recognized or threatened area of hostilities unless
fully covered by war risk insurance or unless the Airframe or Engine is operated
or used under contract with any Governmental Entity under which contract such
Governmental Entity assumes full liability for any damage, loss, destruction or
failure to return possession of such Airframe or Engines at the end of the term
of such contract and for injury to persons and damage to property of others, or
(iii) in any place or in any manner or for any purpose inconsistent with the
terms or outside the cover provided by any such policy, and the result of such
operation or location is that any policy required to be maintained under this
Article XI would or may be reasonably expected to be rendered in whole or in
part invalid or unenforceable, PROVIDED that if Lessee unintentionally and
temporarily operates or locates the Airframe or any Engine or suffers the
Airframe or any Engine to be operated or located in violation of this Section
11.08(b ), Lessee shall be deemed not to have breached its obligations under
this Section 11.08(b ) if, upon a Responsible Officer becoming aware thereof,
Lessee promptly terminates any such operation or changes such location that
resulted in such violation and takes reasonable affirmative actions to prevent
the operation or location of the Aircraft in violation of Section 11.08(b)
occurring again.

     Section 11.09 FAILURE TO INSURE.  If Lessee shall fail to maintain or cause
there  to be  maintained  insurance  as  herein  provided,  Lessor  may,  at its
option,provide such insurance and in such event Lessee

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shall, upon demand, reimburse  Lessor for the cost thereof.  Such provision by
Lessor  shall not affect the right of Lessor to treat such  failure by Lessee as
an Event of Default.

     Section 11.10 DEDUCTIBLE. For insurance provided pursuant to Section 11.02
or 11.04, a deductible per occurrence that is not in excess of the prevailing
standard market deductible for similar aircraft shall be permitted for each
aircraft in the Lessee's fleet. In no case shall the amount of the deductible
during any policy year with respect to the Aircraft exceed $750,000 unless
Lessee provides a report from the Lessee's independent insurance broker
confirming that any higher deductible amount maintained by Lessee does not
exceed the amount maintained by airlines similarly situated to Lessee with
regard to the insurance of aircraft similar to those operated by Lessee and
based or operated in any jurisdiction in which the Aircraft may then be based or
operated.

                                   ARTICLE XII

                                  EVENT OF LOSS

     Section 12.01 EVENT OF LOSS WITH RESPECT TO THE AIRFRAME. (a) Upon the
occurrence of an Event of Loss to the Airframe or the Airframe and the Engines
or engines then installed on the Airframe, Lessee (x) shall as soon as possible
(and, in any event, within five (5) days after the occurrence of such Event of
Loss) provide written notice to Lessor and Beneficiary of such Event of Loss and
(y) shall forthwith (and, in any event, within sixty (60) days after the
occurrence of such Event of Loss), give written notice to Lessor of its election
to perform one of the following options (it being understood that, if Lessee
fails to give such notice, or if Lessee has elected the option set forth in
clause (ii) below but has failed to comply with the provisions thereof or with
the provisions of Section 12.01(c), Lessee shall be deemed to have elected the
option set forth in clause (i) below):

               (i) On or before the date that is ninety (90) days after the date
     of any Event of Loss with respect to the Airframe or the Airframe and any
     Engines or engines, but in no event later than two (2) Business Days after
     receipt of insurance or other proceeds in respect of such Event of Loss
     (or, if Lessee has elected to replace the Airframe or the Airframe and any
     Engines or engines pursuant to Section 12.01(a)(ii), on the first Business
     Day after the 120th day following the Event of Loss), Lessee shall pay to
     Lessor the sum of (A) the Stipulated Loss Value PLUS (B) the amount of
     Basic Rent, if any, due and unpaid on such date, PLUS (C) the amount of
     deferred Basic Rent, if any, as of such date as set forth in the column
     headed "Deferred Basic Rent" in Schedule SLV, MINUS (D) the amount of
     prepaid Basic Rent, if any, as of such date as set forth in the column
     headed "Prepaid Basic Rent" in Schedule SLV, PLUS (E) all Supplemental Rent
     (other than Stipulated Loss Value) unpaid as of such date; or

               (ii) So long as (A) no Specified Default has occurred and is
     continuing, and (B) the conditions set forth in Section 12.01(c) are met,
     Lessee may substitute another Embraer aircraft model EMB-145LR or Embraer
     airframe model EMB-145LR of the same or later vintage as the Airframe that
     suffered the Event of Loss together with one or more Rolls-Royce Allison AE
     300 7A1P engines, as the case may be, or an improved model of the Airframe
     and Engines, if any, that suffered the Event of Loss, that, in each case,
     has a value, utility, condition, maximum take-off weight, maximum landing
     weight (and in the case of an engine, with an equal or greater engine
     thrust rating), estimated residual value and remaining useful life equal to
     or greater than, and in as good an operating condition as, the Airframe and
     Engines, if any, that suffered such Event of Loss (assuming that such
     Airframe and Engines were then in the condition required by the terms of
     this Lease) within 120 days following the occurrence of such Event of Loss
     in accordance with the terms and provisions of Section 12.01(c) below.

                                       39
<Page>

          (b) If an Event of Loss occurs with respect to the Airframe and Lessee
elects the option set forth in clause (i) of Section 12.01(a), then upon payment
in full by Lessee of all amounts referred to therein:

               (i) the obligations of the Lessee to pay Rent (except for
     Supplemental Rent obligations surviving pursuant to Section 6.05 and
     Articles XIV and XV of this Lease or the Tax Indemnity Agreement or which
     have otherwise accrued but not been paid as of the Termination Date) shall
     cease;

               (ii) the Term shall end; and

               (iii) Lessor will transfer to Lessee, without recourse or
     warranty (except as set forth below) on an as-is, where-is basis, all of
     Lessor's right, title and interest, if any, in and to the Airframe and
     Engines (if any) suffering the Event of Loss, as well as all of Lessor's
     right, title and interest in and to any Engine constituting part of the
     Aircraft but not installed thereon at the time of the Event of Loss, by way
     of a bill of sale conveying to Lessee such title as was received by Lessor
     on the Delivery Date, free of Lessor's Liens, but subject to Liens arising
     by or through Lessee.

     Nothing in this Section 12.01(b) shall be deemed to relieve Lessee of its
obligation to pay Rent prior to the date on which the Stipulated Loss Value and
all other amounts due hereunder have been paid in full.

          (c) If an Event of Loss occurs with respect to the Airframe and Lessee
elects the option set forth in clause (ii) of Section 12.01(a), then Lessee
shall duly convey to Lessor, at its sole cost and expense, and shall reimburse
Lessor for any out-of-pocket costs and expenses incurred in connection
therewith, as replacement for the Aircraft that suffered the Event of Loss,
title to a Replacement Aircraft (or a Replacement Airframe or a Replacement
Airframe and a Replacement Engine which, together with the Engine or Engines
constituting a part of the Aircraft but not installed thereon at the time of the
Event of Loss, constitute the Aircraft) free and clear of all Liens except
Permitted Liens described in clauses (i), (ii) and (iii) of the definition
thereof. Prior to or at the time of such conveyance, Lessee shall at its
expense:

               (i) furnish to Lessor a full warranty bill of sale, in form and
     substance reasonably satisfactory to Lessor, with respect to such
     Replacement Aircraft or Replacement Airframe and Replacement Engines, if
     any,

               (ii) cause a supplement hereto, in form and substance reasonably
     satisfactory to Lessor, subjecting such Replacement Aircraft or Replacement
     Airframe and Replacement Engines to the terms of this Lease, to be duly
     executed by Lessee and recorded as may be necessary or as Lessor may
     request pursuant to the Federal Aviation Act,

               (iii) cause Uniform Commercial Code financing statement(s) to be
     filed in such place or places as may be necessary or advisable in order to
     evidence and perfect the interests of Lessor in and to such Replacement
     Aircraft or Replacement Airframe and Replacement Engines under applicable
     law,

               (iv) furnish Lessor with such evidence as to Lessee's title to
     such Replacement Aircraft or Replacement Airframe and Replacement Engine
     and as to the integration of substituted property into the Maintenance
     Program as Lessor may reasonably request,

                                       40
<Page>

               (v) furnish Lessor with a certificate of an authorized officer of
     Lessee together with an appraisal by a qualified independent appraiser of
     nationally recognized standing reasonably acceptable to Lessor that such
     Replacement Aircraft or Replacement Airframe and Replacement Engines have a
     value, utility, condition, maximum take-off weight, maximum landing weight
     (and in the case of an engine, with an equal or greater engine thrust
     rating) and remaining useful life, at least equal to, and are in as good an
     operating condition as, the Aircraft, or the Airframe and Engines, if any,
     subject to the Event of Loss (assuming that such Aircraft, or Airframe and
     Engines were in the condition required by the terms of this Lease),
     together with an insurance certificate related thereto evidencing
     compliance with Article XI,

               (vi) furnish Lessor with an opinion of counsel, reasonably
     acceptable to Lessor, to the effect that title to such Replacement Aircraft
     or Replacement Airframe and Replacement Engines have been duly conveyed to
     Lessor free and clear of all Liens except Permitted Liens and that such
     Replacement Aircraft is duly leased hereunder, and that the supplement to
     this Lease covering the same has been duly recorded under applicable Law
     together with a favorable opinion of counsel, acceptable to Lessor in its
     reasonable discretion, as to the availability of Section 1110 of the
     Bankruptcy Code or any successor statute thereto having similar subject
     matter to Section 1110 with respect to such Replacement Aircraft or
     Replacement Airframe and Replacement Engines and as to such other matters
     as may be reasonably requested by Lessor or Beneficiary,

               (vii) furnish Lessor with an opinion (in form and substance
     reasonably acceptable to Lessor) of independent tax counsel selected by
     Lessee and reasonably acceptable to Lessor, to the effect that the
     replacement of the Aircraft or the Airframe and Engine, as applicable, will
     not cause any adverse tax consequences to Lessor or, in lieu of such
     opinion, furnish Lessor with an indemnity satisfactory to Lessor against
     any such adverse tax consequences,

               (viii) provide all other documentation and take such other action
     as may be necessary or as Lessor may reasonably request in order that such
     Replacement Aircraft or Replacement Airframe and Replacement Engines be
     duly and properly titled in Lessor and covered by the insurance policies
     required under Article XI,

               (ix) cause such Replacement Aircraft to be duly registered in
     Lessor's name at the FAA, and

               (x) subject to Section 10.01, assign to Lessor the benefit of all
     assignable manufacturers' warranties with respect to such Aircraft or
     Replacement Airframe and Replacement Engines.

     Upon full compliance by Lessee with the terms of this Section 12.01(c),
Lessor will transfer to Lessee without recourse or warranty (except as set forth
below) on an as-is, where-is basis, all of Lessor's right, title and interest,
if any, in and to the Airframe and Engines (if any) suffering the Event of Loss,
by way of a bill of sale conveying to Lessee such title as was received by
Lessor on the Delivery Date, free of Lessor's Liens, but subject to Liens
arising by or through Lessee, and shall remit to Lessee any insurance proceeds
relating to property damage from policies maintained by Lessee or any Permitted
Sublessee pursuant to Article XI or net condemnation award, in either case,
actually received by Lessor. For the avoidance of doubt, Lessee agrees that it
shall be solely responsible for the location of any Replacement Aircraft,
Replacement Airframe or Replacement Engine at the time that it is to be so
transferred in relation to any liability of Lessee under Article XIV. For all
purposes hereof, the property so substituted shall be deemed an "AIRCRAFT,"
"AIRFRAME" and "ENGINE," as the case may be, as defined herein. No Event of Loss
with respect to the Aircraft or the Airframe and the Engines or engines then

                                       41
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installed thereon for which substitution has been elected pursuant to this
Section 12.01(c) shall result in any reduction in any sum due from Lessee under
any Operative Document.

         Section 12.02 SUBSTITUTION OF ENGINES. (a) Upon an Event of Loss with
respect to an Engine under circumstances in which there has not occurred an
Event of Loss with respect to the Airframe, Lessee (x) shall as soon as possible
(and, in any event, within ten (10) Business Days after the occurrence of such
Event of Loss) provide written notice to Lessor and Beneficiary of such Event of
Loss and (y) shall as soon as possible (and, in any event, within ninety (90)
days after the occurrence of such Event of Loss) convey to Lessor, as
replacement for the Engine suffering such Event of Loss, title to a Replacement
Engine in accordance with this Section 12.02(a), free of all Liens (except Liens
permitted by clauses (i ), (ii ), (iii ) and (v ) of the definition of Permitted
Liens). Prior to or at the time of any such transfer, Lessee, at its own
expense, will promptly

               (i) furnish Lessor with a full warranty bill of sale (excluding
     Liens permitted by clauses (i), (ii), (iii) and (v) of the definition of
     Permitted Liens) of that is, by its terms, governed by the laws of the
     State of New York and otherwise in form and substance reasonably
     satisfactory to Lessor with respect to such Replacement Engine;

               (ii) execute and deliver a supplement hereto, in form and
     substance reasonably satisfactory to Lessor, subjecting such Replacement
     Engine to this Lease;

               (iii) furnish Lessor with such evidence of title to such
     Replacement Engine and of compliance with the insurance provisions of
     Article XI with respect to such Replacement Engine as Lessor may reasonably
     request; and

               (iv) furnish Lessor with such documents as Lessor may reasonably
     request in connection with the completion of the transactions contemplated
     by this Section 12.02, in each case in form and substance reasonably
     satisfactory to Lessor.

     Upon full compliance by Lessee with the terms of this Section 12.02, Lessor
will transfer to Lessee "AS IS, WHERE IS" and without recourse or warranty,
except a warranty as to the absence of Liens arising by or through Lessor, such
right, title and interest in the Engine that suffered the Event of Loss as
Lessor received on the Delivery Date. For all purposes hereof, each such
Replacement Engine shall be deemed part of the property leased hereunder, shall
be deemed an "Engine" as defined herein. No Event of Loss covered by this
Section 12.02 shall result in any reduction in Rent.

          (b) In connection with the return of the Aircraft pursuant to Section
18.03 or at any time during the Term, so long as no Specified Default shall have
occurred and be continuing, on at least thirty (30) days prior written notice to
Lessor, the Lessee may elect to replace an Engine on the Airframe with a
Replacement Engine in accordance with this Section 12.02. In such event, Lessee
shall convey to Lessor, as replacement for the Engine suffering such deemed
Event of Loss, title to a Replacement Engine in accordance with the provisions
of Section 12.02(a).

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<Page>

     Section 12.03 APPLICATION OF PROCEEDS AND PAYMENTS. Any payments received
at any time by Lessor or by Lessee from any insurer under any policy of
insurance required to be maintained pursuant to Article XI (other than liability
insurance) shall be applied in the manner specified in Section 11.05. Subject to
Section 4.07, any payments received at any time by Lessor or Lessee from any
Governmental Entity or other Person (except as provided in the preceding
sentence) with respect to an Event of Loss will be applied as follows:

          (a) if such payments are received as a result of an Event of Loss with
respect to the Airframe (or the Airframe and the Engine or Engines installed
thereon):

               (i) so much of such payments as shall not exceed the amounts
     payable by Lessee pursuant to Section 12.01(a)(i) shall be paid to Lessor
     in reduction of Lessee's obligation to pay such amounts if not already paid
     by Lessee, or, if already paid by Lessee, shall be applied by Lessor to
     reimburse Lessee for its payment of such amounts and the balance of such
     payment, if any, remaining thereafter shall be paid over to, or retained
     by, Lessee; or

               (ii) if the Airframe (or the Airframe and the Engines or Engines
     installed thereon) is being replaced in accordance with Section
     12.01(a)(ii), all such payments shall be held by Lessor as security until
     such time as Lessee shall have fully complied with its obligations under
     Section 12.01(a)(ii) and (c), whereupon such payments shall be paid over to
     Lessee or to such other Person or Persons as Lessee may direct or shall be
     applied as provided in Section 12.01(a)(i) if such replacement is not
     completed within the applicable time period; and

          (b) if such payments are received with respect to an Event of Loss to
an Engine that has been or is being replaced by the Lessee pursuant to the terms
hereof, such payments shall be paid over to, or retained by, the Lessee,
PROVIDED that if the Lessee has not completed such replacement, such payments
shall be paid over to, or retained by, the Lessor as security, and upon
completion of, or in connection with a closing for, such replacement in
accordance with Section 12.02, shall be paid over to or retained by the Lessee.

     Section 12.04 REQUISITION FOR USE BY GOVERNMENT. In the event of the
requisition for use by a Governmental Entity of the Airframe or any Engine
(other than a requisition constituting an Event of Loss), all Lessee's
obligations under this Lease shall continue to the same extent as if such
requisition had not occurred, except to the extent that performance or
observance of any obligation by the Lessee shall have been prevented or delayed
as a result of such requisition (other than Lessee's obligations to pay Rent and
its obligation under Article XI hereof). If the Airframe or any Engine or engine
installed thereon is not returned by such Governmental Entity prior to the last
day of the Term, the Term shall nonetheless terminate on such last day. Subject
to Section 4.07, all payments received by Lessor or Lessee from the Governmental
Entity for the use of the Airframe or Engine during the Term prior to the time
such requisition becomes an Event of Loss shall be paid over to, or retained by,
Lessee; PROVIDED that any such payments received by Lessor may be offset against
Lessee's obligation to pay Rent; and all payments received by Lessor or Lessee
from the Governmental Entity for the use of such item after such requisition
constitutes an Event of Loss or after the expiration of the Term and the receipt
by Lessor of payment of Stipulated Loss Value, shall be paid over to, or
retained by, Lessee. Lessee shall, as soon as practicable after the termination
of any requisition for use or hire, cause the Aircraft to be put into the
condition required by this Lease.

                                       43
<Page>

                                  ARTICLE XIII

                           INFORMATION AND INSPECTION

     Section 13.01 FINANCIAL AND GENERAL INFORMATION. Throughout the Term,
Lessee agrees to furnish to Beneficiary the following:

          (a) (i) within forty-five (45) days or such other number of days as
Lessee furnishes the same to its lessors or lenders (as the case may be), after
the close of each fiscal quarter occurring in each fiscal year of Lessee, an
unaudited consolidated balance sheet, profit and loss statement, as of the close
of such fiscal quarters and for the periods then ended, (ii) within ninety (90)
days or such other number of days as Lessee furnishes the same to its lessors or
lenders (as the case may be), after the close of each fiscal year of Lessee, an
audited consolidated balance sheet, profit and loss statement, as of the close
of such fiscal year and for the period then ended, prepared in accordance with
generally accepted accounting principles in the United States, and (iii) within
forty-five (45) days or such other number of days as Lessee furnishes the same
to its lessors or lenders (as the case may be), after the close of each fiscal
quarter occurring in each fiscal year of Lessee, Operating Results as of the
close of such fiscal quarters and for the periods then ended;

          (b) within seventy-two (72) hours after the occurrence thereof, notice
of any notices published by the FAA or the Department of Transportation
proposing any disciplinary action on Lessee, which would have a material adverse
effect upon Lessee or upon its ability to perform its obligations hereunder;

          (c) upon request of Lessor, (i) notice of scheduled maintenance on the
Aircraft equivalent to a C check or greater and the locations thereof, together
with reasonable prior written notice of any changes in the schedule so provided,
and (ii) a true and accurate summary of the Maintenance Program, as in effect at
the time of such request;

          (d) promptly after request for the same, such information regarding
the condition of the Aircraft as Lessor may reasonably require; and

          (e) with the financial statements provided pursuant to Section
13.02(a)(ii), an Officer's Certificate of the Lessee, to the effect that the
signer is familiar with or has reviewed the relevant terms of this Lease and has
made, or caused to be made under his supervision, a review of the transactions
and conditions of the Lessee during the preceding fiscal year and that such
review has not disclosed the existence during such period, nor does the signer
have knowledge of the existence as of the date of such certificate, of any
condition or event which constituted or constitutes a Default or Event of
Default, or, if any such condition or event existed or exists, specifying the
nature and period of existence thereof and what action the Lessee has taken or
is taking or proposes to take with respect thereof.

     Section 13.02 INSPECTION RIGHTS. (a) Once in each twelve month period
during the Term on reasonable notice, and at any time so long as an Event of
Default is continuing and with one (1) Business Day's notice or such shorter
notice as may be reasonable under the circumstances, Lessee shall allow Lessor,
any Financing Party and/or their respective authorized representatives (it being
understood that Lessor, during the twelve (12) month period immediately
preceding the last day of the Term, may designate the Manufacturer as its
authorized representative), at the risk of such Persons, to conduct an on-board
or visual walk around inspection of the Aircraft and any Engine (including a
visual walk-around inspection of the Aircraft during any C check or other heavy
maintenance) and to inspect the Aircraft Documents, in each case during normal
business hours in the location where the Aircraft is physically located or in
the location where the Aircraft Documents are kept, as applicable, PROVIDED that
(i) any such

                                       44
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inspection shall be subject to the safety, security (in respect of which Lessee
shall assist Lessor, but shall not be responsible to obtain airport security
clearance) and workplace rules applicable at the location where such inspection
is conducted and any applicable governmental rules or regulations, and (ii) so
long as Lessor is not exercising its remedies under Section 17.02, in the case
of an inspection during a maintenance visit, such inspection shall not in any
respect interfere with the normal conduct of such maintenance visit or extend
the time required for such maintenance visit or interfere with the use or
operation of the Airframe or any Engine or with the normal conduct of Lessee's
business.

          (b) Lessor shall have no duty to make any such inspection and shall
not incur any liability or obligation by reason of not making any such
inspection. Lessor's failure to object to any condition or procedure observed or
observable in the course of an inspection hereunder shall not be deemed to waive
or modify any of the terms of this Lease with respect to such condition or
procedure.

          (c) The cost of such inspections shall be borne (i) except as set
forth in clause (ii), by the Person making the inspection; and (ii) during the
continuance of an Event of Default, by Lessee.

                                   ARTICLE XIV

                              GENERAL TAX INDEMNITY

     Section 14.01 GENERAL TAX INDEMNITY. The terms and conditions of the
General Tax Indemnity are set forth in full in EXHIBIT G.

                                   ARTICLE XV

                                GENERAL INDEMNITY

     Section 15.01 GENERAL INDEMNITY. The terms and conditions of the General
Indemnity are set forth in full in EXHIBIT H.

                                   ARTICLE XVI

                   PERFECTION OF TITLE AND FURTHER ASSURANCES

     Section 16.01 TITLE TO AIRCRAFT. Title to the Aircraft shall at all times
remain vested in Lessor and it is the intent of Lessor and Lessee that this
Agreement shall constitute a lease for all purposes and shall not be
characterized by either of them under any circumstances as a borrowing or
indebtedness of Lessee that is not a "true lease". If at any time any filing,
notarization or recording is necessary or reasonably advisable to protect the
interest of Lessor in the Aircraft or this Lease, Lessee shall, at its sole cost
and expense at the reasonable request of Lessor, cause this Lease and any
financing statements with respect thereto, and any and all additional
instruments that shall be executed pursuant to the terms hereof or thereof to be
kept, filed, notarized and recorded and to be re-executed, re-notarized, refiled
and re-recorded in the appropriate office or offices pursuant to applicable
Laws, to perfect, protect and preserve the rights and interests of Lessor
hereunder and in the Aircraft, including the right of Lessor to repossess, and
export from any country, the Aircraft, the Engines and the Parts following an
Event of Default.

     Section 16.02 FURTHER ASSURANCES. The Lessee and the Lessor will each
promptly and duly execute and deliver to the other such further documents and
assurances and take such further action as the other may from time to time
reasonably request in order to more effectively carry out the intent and

                                       45
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purpose of this Lease and to establish and protect the rights and remedies
created or intended to be created in favor of the Lessor and the Lessee
hereunder.

                                  ARTICLE XVII

                           EVENTS OF DEFAULT; REMEDIES

     Section 17.01 EVENTS OF DEFAULT. Any one or more of the following
occurrences or events shall constitute an Event of Default (whether such
occurrences or events shall be voluntary or involuntary or be effected by
operation of law or pursuant to or in compliance with any judgment, decree or
order of any court or of any other Governmental Entity):

          (a) Lessee shall fail to make any payment of Rent to Lessor when due
and in the manner and at the place required under this Lease and such failure
shall continue for a period of (i) in the case of Basic Rent or a payment of
Stipulated Loss Value, within three (3) Business Days after the date on which it
is due, and (ii) in the case of any other payment of Supplemental Rent, within
ten (10) Business Days after receipt by Lessee of a written demand therefor from
Lessor or, if later, ten (10) Business Days after such other payment of
Supplemental Rent is due and payable;

          (b) Lessee shall fail to obtain and maintain any insurance required
under the provisions of Article XI or shall fail to perform or observe its
covenants in Section 11.08(b);

          (c) Any representation or warranty made by Lessee herein or in any
other Operative Document, or in any document or certificate furnished to Lessor
in connection with this Lease or pursuant hereto (other than the Tax Indemnity
Agreement) proves to have been incorrect in any material respect at the time
made and shall not be remedied within thirty (30) days after notice thereof has
been given to the Lessee by the Lessor;

          (d) [reserved];

          (e) Lessee shall make or permit any assignment or transfer of this
Lease, or any interest therein, or of the right to possession of or operational
control over the Aircraft, the Airframe, and any Engine or any Part other than
as permitted by the Operative Documents, and such assignment or transfer of
operational control shall continue unremedied for a period of thirty (30) days
after delivery of notice thereof from the Lessor to the Lessee;

          (f) Lessee shall fail to perform or observe any other material
covenant, condition or agreement to be performed or observed by it pursuant to
this Lease or any other Operative Document to which it is a party (other than
the Tax Indemnity Agreement) and such failure shall continue unremedied for a
period of thirty (30) days after delivery of notice of such failure from the
Lessor to the Lessee, unless such failure is curable and the Lessee shall, after
the delivery of such notice (or such date), be diligently proceeding to correct
such failure and shall in fact correct such failure within 120 days after
delivery of such notice (or such date), PROVIDED that the covenant to provide
notice to Lessor in Section 13.01(b) shall be deemed to be cured if Lessee
provides such notice within the foregoing time periods after notice from Lessor,
unless Lessor shall have been materially adversely affected by the delay in the
delivery of such notice;

          (g) Lessee consents to the appointment of a receiver, examiner,
administrator, trustee, official manager, custodian, or liquidator or
provisional liquidator of itself or of a substantial part of its property or
Lessee admits in writing its inability to pay its debts generally as they come
due, or makes a general assignment for the benefit of creditors, or Lessee files
a voluntary petition in bankruptcy

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or a voluntary petition seeking reorganization in a proceeding under any
bankruptcy laws (as now or hereafter in effect), or an answer admitting the
material allegations of a petition filed against Lessee, in any such proceeding,
or Lessee by voluntary petition, answer or consent seeks relief under the
provisions of any bankruptcy or other similar law providing for the insolvency,
reorganization or winding-up of corporations, or provides for an agreement,
composition, extension or adjustment with its creditors;

          (h) An order, judgment or decree is entered by any court, with or
without the consent of Lessee appointing a receiver, examiner, administrator,
trustee, official manager, custodian or liquidator or provisional liquidator for
Lessee or if all or any substantial part of the property of Lessee is
sequestered, and any such order, judgment or decree of appointment or
sequestration remains in effect, undismissed, unstayed or unvacated for a period
of sixty (60) days after the date of entry thereof;

          (i) A petition against Lessee in a proceeding under the bankruptcy,
insolvency or other similar Laws (as now or hereafter in effect) is filed and is
not withdrawn or dismissed within sixty (60) days thereafter and is not being
disputed in good faith with reasonable chance of success, or if, under the
provisions of any Law providing for reorganization or winding-up of corporations
that may apply to Lessee, any court of competent jurisdiction assumes
jurisdiction over, or custody or control of, Lessee or of all or any substantial
part of Lessor's property and such jurisdiction, custody or control remains in
effect, unrelinquished, unstayed or unterminated for a period of sixty (60) days
and is not being disputed in good faith with reasonable chance of success;

          (j) Lessee voluntarily or involuntarily suspends all or substantially
all of its operations or if all or substantially all of the franchises,
concessions, permits, licenses, rights or privileges required for the conduct of
the business and operations of Lessee are revoked, canceled or otherwise
terminated and, in the case of any involuntary suspension only, such involuntary
suspension (including, but not limited to, a suspension by Lessee due to an
imminent labor disruption or regulatory suspension) continues for a period of
ninety (90) days, PROVIDED that, if an involuntary suspension directly results
from a general grounding by the Aeronautical Authority of all aircraft of the
same type and series as the Aircraft, such involuntary suspension continues for
a period of one hundred eighty (180) days;

          (k) This Lease ceases to be in full force and effect or to be a legal,
valid and binding obligation of Lessee, in whole or in material part,
enforceable against Lessee in accordance with its terms as a result of any act
or omission of Lessee;

          (l) Lessee repudiates its obligations under this Lease in whole or in
material part;

          (m) An "Event of Default" shall have occurred under any Other Lease
(as defined therein);

          (n) Lessee shall cease at any time during the Term to be a Section
1110 Person and such circumstance results in the Owner Trustee no longer being
entitled to the benefits of Section 1110; or

          (o) Lessee shall receive notice of default or exercise of remedies
with respect to the payment or performance of any indebtedness or other
obligation to any third party and any such default or exercise of remedies
results in an acceleration of such indebtedness or obligation; provided,
however, that the aggregate amount of any such indebtedness or obligation is in
excess of $3,500,000 (determined in the case of borrowed money by the amount
outstanding under the agreement pursuant to which such borrowed money was
borrowed, in the case of a deferred purchase price by the remaining balance and
in the case of a lease by the present value of the remaining rent payable
thereunder);

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PROVIDED that, notwithstanding anything to the contrary contained in this Lease,
any failure of the Lessee to perform or observe any covenant, condition, or
agreement herein shall not constitute an Event of Default under clause (f) above
if such failure is caused solely by reason of an event referred to in the
definition of "EVENT OF LOSS" so long as the Lessee is continuing to comply with
the applicable terms of Section 12.

     Section 17.02 REMEDIES. (a) Upon the occurrence of any Event of Default,
Lessor may at its option declare this Lease to be in default; PROVIDED that,
upon the occurrence of any Event of Default specified in paragraphs (g), (h) or
(i) of Section 17.01, this Lease shall automatically be deemed to have been
declared in default. Once this Lease has been declared to be in default or is
deemed to have been so declared then, and at any time thereafter, Lessor shall
be entitled to exercise any of the following remedies as Lessor in its sole
discretion shall elect, to the extent permitted by applicable Law then in effect
without making demand or giving notice or the taking of any other action,
require that Lessee, and Lessee shall upon the written request of Lessor and at
Lessee's expense, immediately return the Aircraft to Lessor in the manner
specified in such written request, in which event such return shall not be
delayed for purposes of complying with the return conditions specified in
Article XVIII (none of which conditions shall be deemed to affect Lessor's
possession of the Aircraft) or be delayed for any other reason, PROVIDED
HOWEVER, that Lessor, at Lessor's option, may require Lessee to and Lessee shall
thereafter take such actions as would be required by the provisions of this
Lease if the Aircraft were being returned at the end of the Term, subject to
making the Aircraft available to Lessee if Lessor has then repossessed the
Aircraft. In addition, Lessor, at its option and to the extent permitted by
applicable Law, may enter upon the premises where all or any part of the
Aircraft is located and take immediate possession of and, at Lessor's sole
option, remove the same (including any engine that is not an Engine but that is
installed on the Airframe, subject to the rights of the owner, lessor or secured
party thereof) by summary proceedings or otherwise;

          (b) Sell at private or public sale, as Lessor may determine, or hold,
use, operate or lease to others the Aircraft as Lessor in its sole discretion
may determine, all free and clear of any rights of Lessee except as set forth in
this Section 17.02;

          (c) Whether or not Lessor shall have exercised, or shall thereafter at
any time exercise, any of its rights under paragraph (a) or (b) above, Lessor,
by fifteen (15) days' written notice to Lessee specifying a payment date, may
demand that Lessee pay to Lessor, and Lessee shall pay to Lessor, on the payment
date specified in such notice any unpaid Basic Rent for the Aircraft to and
including the payment date specified in such notice, PLUS, as liquidated damages
for loss of bargain and not as a penalty (in lieu of Basic Rent payable for the
period commencing after the date specified for payment in such notice),
whichever of the following amounts Lessor, in its sole discretion, shall specify
in such notice (together with accrued interest thereon, if any, to the extent
permitted by applicable Law at the Interest Rate from the date specified for
payment in such notice to the date of actual payment: (i) the amount if any, by
which (x) the Stipulated Loss Value computed as of the payment date specified in
such notice (plus the amount of the deferred Basic Rent, if any, as of such date
as set forth in the column headed "Deferred Basic Rent" in Schedule SLV, and
minus the amount of prepaid Basic Rent, if any, as of such date as set forth in
the column headed "Prepaid Basic Rent" in Schedule SLV), exceeds (y) the
aggregate Fair Market Rental Value (determined in accordance with the Appraisal
Procedure) of the Aircraft for the remainder of the Basic Term (or if in a
Renewal Term, then until the scheduled end of the Renewal Term), after
discounting such Fair Market Rental Value periodically (equal to installment
frequency) to present worth as of the payment date specified in such notice
using the Treasury Rate as of such date, (ii) the amount if any, by which (x)
the Stipulated Loss Value computed as of the payment date specified in such
notice (plus the amount of the deferred Basic Rent, if any, as of such date as
set forth in the column headed "Deferred Basic Rent" in Schedule SLV, and minus
the amount of prepaid Basic Rent, if any, as of such date as set forth in the
column headed "Prepaid Basic Rent" in Schedule SLV), exceeds (y) the

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Fair Market Sales Value (determined on the basis of an arms-length transaction
between a willing seller and a willing buyer both with full knowledge of the
relevant facts, including the actual condition and maintenance status of the
Aircraft at such time) of the Aircraft as of such date, or (iii) the amount, if
any, by which (x) the aggregate Basic Rent for the remainder of the Basic Term
(or if in a Renewal Term, then until the scheduled end of the Renewal Term),
discounted periodically (equal to installment frequency) to present worth as of
the payment date using the Treasury Rate as of such date, exceeds (y) the Fair
Market Rental Value (determined in accordance with the Appraisal Procedure) of
the Aircraft for the remainder of the Basic Term (or if in a Renewal Term, then
until the scheduled end of the Renewal Term), after discounting such Fair Market
Rental Value periodically (equal to installment frequency) to present worth as
of the payment date specified in such notice using the Treasury Rate as of such
date;

          (d) In the event that Lessor, pursuant to Section 17.02(b), shall have
sold the Aircraft, Lessor, in lieu of exercising its rights under Section
17.02(c), may demand that Lessee pay Lessor, and Lessee shall pay Lessor on the
date of such sale, any unpaid Basic Rent and Supplemental Rent for the Aircraft
payable up to and including the Rent Payment Date next succeeding the date of
such sale, plus, as liquidated damages for loss of bargain and not as a penalty
(in lieu of Basic Rent for the Aircraft payable after the time of such sale),
the amount of any deficiency between the net proceeds of such sale and the
Stipulated Loss Value, computed as of the Rent Payment Date next succeeding the
date of such sale, together with interest thereon, to the extent permitted by
applicable Law, at the Interest Rate from the date as of which such Stipulated
Loss Value is computed until the date of actual payment;

          (e) In the event that Lessor, pursuant to Section 17.02(b), shall have
re-leased the Aircraft, Lessor, in lieu of exercising its rights under Section
17.02(c), may demand that Lessee pay Lessor, and Lessee shall pay Lessor, any
unpaid Basic Rent for the Aircraft payable up to the date of the Re-leasing,
plus, as liquidated damages for loss of bargain and not as a penalty (in lieu of
Basic Rent for the Aircraft payable after the time of such re-leasing (the
"RE-LEASING")), together with accrued interest thereon, if any, at the Interest
Rate to the date specified for payment, the amount, if any, by which (i) the
aggregate Basic Rent that would otherwise have become due over the Basic Term
(or if in a Renewal Term, then until the scheduled end of the Renewal Term) for
the Aircraft determined without regard to the exercise of remedies under this
Article XVII (the "ORIGINAL TERM"), discounted periodically (equal to
installment frequency) to present worth as of the date of Re-leasing using the
Treasury Rate as of such date, exceeds (ii) the sum of (A) the aggregate basic
rental payments to become due under the Re-leasing from the date of the
Re-leasing to the earlier of (x) the end of the term of the Re-leasing and (y)
the date upon which the Original Term would have expired, discounted
periodically (equal to installment frequency) to present worth as of the date of
the Re-leasing using the Treasury Rate as of such date and (B) an estimate of
Fair Market Rental Value (determined in accordance with the Appraisal Procedure)
for the period, if any, commencing on the end of the Re-leasing through the end
of the Original Term, discounted periodically (equal to installment frequency)
to present worth as of the date of the Re-leasing using the Treasury Rate as of
such date;

          (f) Proceed by appropriate court action or actions, either at law or
in equity, to enforce the performance by Lessee of the applicable covenants of
this Lease and to recover damages for the breach thereof and/or for any loss
suffered by Lessor by reason of the return of the Aircraft to Lessor otherwise
than on the last day of the Term and/or to rescind this Lease; and/or

          (g) Terminate this Lease by written notice and repossess the Aircraft.

     In addition to the foregoing, Lessee shall be liable for any and all unpaid
Basic and Supplemental Rent during or after the exercise of any of the
aforementioned remedies, together with interest on such unpaid amounts at the
Interest Rate, until Lessor shall have recovered in full the amounts payable to
Lessor under this Section 17.02 and for all reasonable legal fees and other
costs and expenses incurred by

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Lessor (on a full indemnity basis) by reason of the occurrence of any Event of
Default or the exercise of Lessor's remedies with respect thereto including all
costs and expenses incurred in connection with the return of the Aircraft in
accordance with the terms of Article XVIII or in placing the Aircraft in the
condition and with the airworthiness certification as required by such Article
XVIII.

     In effecting any repossession of the Aircraft, Lessor and its
representatives and agents, to the extent permitted by Law, shall:

               (i) have the right to enter upon any premises which it reasonably
     believes the Aircraft, the Airframe, an Engine or a Part to be located;

               (ii) not be liable, in conversion or otherwise, for the taking of
     any personal property of Lessee that is in or attached to the Aircraft, the
     Airframe, any Engine or Part that is repossessed; PROVIDED, HOWEVER, that
     Lessor shall return to Lessee all personal property of Lessee or its
     customers that was on the Aircraft at the time Lessor re-takes possession
     of the Aircraft;

               (iii) if Lessee is either obstructing or not reasonably
     cooperating with the return to Lessor of the Aircraft or any part thereof,
     not be liable or responsible, in any manner, for any inadvertent damage or
     injury to any of Lessee's property in repossessing and holding the
     Aircraft, the Airframe, any Engine or Part, except for that directly caused
     by Lessor's gross negligence or willful misconduct;

               (iv) have the right to maintain possession of and dispose of the
     Aircraft, the Airframe, any Engine or Part on any premises owned by Lessee
     or under Lessee's control; and

               (v) have the right to obtain a key to any premises on or at which
     the Aircraft, the Airframe, any Engine or Part, may be located from the
     landlord or owner thereof.

     If required by Lessor, Lessee, at its sole expense, shall make the
Aircraft, the Airframe, any Engine or Part available at a place designated by
Lessor in accordance with Article XVIII. Lessee hereby agrees that, in the event
of the return to or repossession by Lessor of the Aircraft, the Airframe, any
Engine or Part, any rights in any warranty (express or implied) heretofore
assigned to Lessee or otherwise held by Lessee shall without further act, notice
or writing be assigned or reassigned to Lessor, if assignable. Lessee shall be
liable to Lessor for all expenses, disbursements, costs and fees incurred (i) in
repossessing, storing, preserving, shipping, maintaining, repairing and
refurbishing the Aircraft, the Airframe, any Engine or Part to the condition
required by Article XVIII and (ii) in the event of a repossession of the
Aircraft by Lessor following an Event of Default, in preparing the Aircraft, the
Airframe, any Engine or Part for sale or lease, advertising the sale or lease of
the Aircraft, the Airframe, any Engine or Part and selling or releasing the
Aircraft, the Airframe, any Engine or Part and for any reasonable expenditures
which Lessor considers advisable to repair and restore the Aircraft, the
Airframe, any Engine or Part to the condition required by Article XVIII, all at
Lessee's sole expense.

     No remedy referred to in this Section 17.02 is intended to be exclusive,
but, to the extent permissible hereunder or under applicable Law, each shall be
cumulative and in addition to any other remedy referred to or otherwise
available to Lessor at Law or in equity; and the exercise or beginning of
exercise by Lessor of any one or more of such remedies shall not preclude the
simultaneous or later exercise by Lessor of any or all of such other remedies.
No express or implied waiver by Lessor of any Default or Event of Default shall
in any way be, or be construed to be, a waiver of any subsequent Default or
Event of Default.

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                                  ARTICLE XVIII

                             RETURN OF THE AIRCRAFT

     Section 18.01 RETURN. On the expiration of the Term or at such other time
as Lessee shall be required to return the Aircraft to Lessor pursuant to the
terms hereof, Lessee, at its own expense, shall deliver the Aircraft to Lessor
at the Return Location equipped with all required Parts and all Engines (or
Replacement Engines delivered in accordance with Section 18.03), duly installed
thereon and with all Aircraft Documents complete and up to date and in all cases
in the Return Conditions and reasonably acceptable to Lessor. The Aircraft, at
the time of return to Lessor, shall be in the same configuration as on delivery,
except as modified in accordance with the terms and conditions of this Lease and
the Return Conditions, and be fully equipped with the Engines or equivalent
engines owned by Lessee (and complying with Section 18.03) APU, landing gears
and other equipment and modifications properly installed thereon. The Aircraft
shall be in a condition suitable for immediate operation in accordance with
commercial passenger airline standards.

     Section 18.02 NO LIENS. Immediately prior to the Return Occasion, Lessee
shall, at its cost, ensure that the Aircraft, Engines and Parts are free and
clear of all Liens, except Lessor's Liens.

     Section 18.03 RETURN OF ENGINES. In the event any engine not owned by
Lessor shall be returned with the Airframe in lieu of an Engine and the reason
therefor is other than that an Event of Loss has occurred to such Engine, Lessor
shall not be obligated to accept such engine unless it meets the requirements
for a Replacement Engine, is free and clear of Liens, is suitable for use on the
Airframe with the other Engine or engine being returned with the Airframe, in
the condition required by EXHIBIT D-1 or EXHIBIT D-2, as applicable, and has an
expected useful life at least equal to, the Engine that should have been
returned, assuming such Engine which should have been returned was in the
condition and repair as required by the terms hereof immediately prior to such
required. Lessee shall, at its own expense and concurrently with such delivery,
convey such Replacement Engine to Lessor in accordance with the requirements in
Section 12.02(a). Upon full compliance with this Section 18.03 and passage of
title to such engine to Lessor, such engine shall be an Engine for all purposes
of this Lease and Lessor shall transfer to Lessee all Lessor's right, title and
interest in an Engine constituting part of the Aircraft so returned but not
installed on the Aircraft at the time of such return, without any
representation, warranty or recourse of any kind whatsoever, express or implied,
except a warranty that such Engine is free and clear of Liens created by Lessor.

     Section 18.04 CONDITION OF THE AIRCRAFT. Upon the Return Occasion, Lessee
shall, at its cost, cause the Aircraft to comply with all of the Return
Conditions.

     Section 18.05 RETURN CERTIFICATES. (a) Upon completion of the ground
inspections and the functional check flight of the Aircraft referred to in
EXHIBIT D-1 or EXHIBIT D-2, as applicable, Lessor shall either:

               (i) accept the return of the Aircraft and sign the Return
     Acceptance Certificate with any deficiencies noted thereon and deliver the
     same to Lessee; or

               (ii) if the Aircraft fails to conform to the Return Conditions,
     notify Lessee of the non-conforming items in writing.

          (b) The provisions of this Section 18.06 shall be without prejudice to
the rights or remedies of Lessor or to the obligations of Lessee under any other
provision of this Lease.

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     Section 18.06 [Intentionally Omitted].

     Section 18.07 REGISTRATION AND DEREGISTRATION COSTS. Lessee shall be solely
responsible for any and all costs relating to the exportation and
de-registration of the Aircraft from the State of Registration (if other than
the United States), if any, in connection with the redelivery of the Aircraft to
Lessor as required hereby, including the cost of obtaining any necessary
certificates of airworthiness for export in respect of the Aircraft.

     Section 18.08 AIRPORT AND NAVIGATION CHARGES. Lessee will ensure that on
the Return Occasion, any and all airport, navigation and other charges imposed
or levied by the airport at which the Aircraft is habitually based as at the
date of the Return Occasion (if located outside the United States) that give
rise or might if unpaid give rise to any Lien, right of detention or right of
sale in relation to the Aircraft, any Engine or any Part, whether incurred in
respect of the Aircraft or any other aircraft operated by Lessee, have been paid
and discharged in full and will at Lessor's request produce evidence thereof
satisfactory to Lessor, which may include a certificate of an officer of Lessee
stating that all such outstanding airport, navigation or other charges have been
paid in full and that no such charge is being contested by Lessee.

     Section 18.09 AID IN DISPOSITION. Lessee agrees that during the last 180
days of the Term (and during the storage period set forth in Section 18.11) it
will cooperate in all reasonable respects with the efforts of Lessor to lease or
sell the Aircraft, including, without limitation, permitting potential lessees
or purchasers to inspect the Aircraft and the records relating thereto, PROVIDED
that Lessee shall not be required to incur out-of-pocket expenses for which it
is not to be reimbursed or interrupt the use and operation of the Aircraft.

     Section 18.10 STORAGE FOLLOWING RETURN OCCASION. Upon any expiration or
termination of this Lease for the Aircraft, at the written request of Lessor,
Lessee will arrange, or will cause to be arranged, secured ramp storage
facilities and storage maintenance for the Aircraft (properly insured) at an
appropriate storage area (which shall include any of Lessee's hangar facilities
suitable for such aircraft) for the Aircraft for a period not exceeding sixty
(60) days at Lessee's expense (other than for the costs of insurance and storage
maintenance, which Lessor shall reimburse to Lessee) and at Lessor's risk.
Notwithstanding other provisions of this Article 18, in the event of an Event of
Default all storage, maintenance, insurance costs and risk of loss for the
Aircraft shall be for the account of Lessee.

     Section 18.11 LESSEE'S CONTINUING OBLIGATIONS. In the event that Lessee
does not return the Aircraft to Lessor on the last day of the Term in the
condition required by Sections 18.01 through 18.04, whether as a result of any
termination under Section 17.02 or otherwise, and whether or not the reason for
such failure to return is within the control of Lessee:

             (a) the  obligations  of Lessee  under this Lease  (other  than the
payment of Basic  Rent,  which  shall be  governed  by Section  18.11(b )) shall
continue in full force and effect on a day-to-day  basis until such return,  and
the Lessee shall be obligated to continue to perform its obligations  under this
Lease,  including,  without  limitation,  the  obligation to maintain  insurance
coverages,  and the Term shall be deemed to be extended on a  day-to-day  basis,
PROVIDED  that nothing in this  paragraph  (a ) shall be deemed to  constitute a
waiver of any right that Lessor may have consequent upon any Event of Default by
Lessee; and

             (b) until such time as the Aircraft is  redelivered  in  accordance
with the Return  Conditions  or the Lessor  accepts  return of the  Aircraft and
delivers a Return Certificate  pursuant to Section 18.05,  instead of paying the
Basic Rent specified in the definition thereof, the Lessee shall pay one hundred
percent  (100%) of such Basic Rent  (calculated on a daily basis) for the period
from the date that the Aircraft was required to be returned to the date on which
it is actually returned and put into the

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condition required by this Article XVIII and EXHIBIT D-1 or EXHIBIT D-2, as
applicable, or the Lessor accepts return of the Aircraft and delivers a Return
Certificate pursuant to Section 18.05, PROVIDED that, if Lessee's failure to
return the Aircraft is solely and directly the result of Lessor's failure to
complete any inspection and acceptance in a commercially reasonable manner, then
Lessee shall pay no Basic Rent during such delay, and during any such period,
Lessee shall not use or operate the Aircraft except as required by this Lease.
When the Lessor accepts return of the Aircraft and delivers a Return Certificate
pursuant to Section 18.05, the Term shall end and Lessee's obligations under
this Lease shall cease, except as provided in Section 20.13 hereof.

                                   ARTICLE XIX

                                   ALIENATION

     Section 19.01 SUCCESSOR OWNER TRUSTEE. (a) The Owner Trustee or any
successor Owner Trustee may resign or may be removed (with the consent of the
Lessee not to be unreasonably withheld) by the Beneficiary, and a successor
Owner Trustee may be appointed (with the prior written consent of the Lessee,
not to be unreasonably withheld) and a Person may become Owner Trustee under the
Trust Agreement only in accordance with the provisions of Section 9.01 of the
Trust Agreement and the provisions of this Section 19.01. The appointment in any
manner of a successor Owner Trustee pursuant to the Trust Agreement shall be
subject to the following conditions:

                  (i) such  successor  Owner  Trustee  shall be a Citizen of the
United States;

                  (ii) such  successor  Owner Trustee shall be a bank or a trust
company  having  combined  capital,  surplus and  undivided  profits of at least
$100,000,000;

                  (iii) such appointment shall not violate any provisions of the
Federal  Aviation Act or any  applicable  rule or regulation  of the  applicable
regulatory  agency or body of any other  jurisdiction  in which the Aircraft may
then be registered or create a  relationship  which would be in violation of the
Federal  Aviation Act or any  applicable  rule or regulation  of the  applicable
regulatory  agency or body of any other  jurisdiction  in which the Aircraft may
then be registered;

                  (iv)  such  successor   Owner  Trustee  shall  enter  into  an
agreement or agreements,  in form and substance  reasonably  satisfactory to the
Lessee and the Beneficiary whereby such successor Owner Trustee confirms that it
shall be deemed a party to this Lease and each other Operative Document to which
the Owner  Trustee  is a party  and  agrees to be bound by all the terms of such
documents  applicable  to the Owner  Trustee and makes the  representations  and
warranties  contained  in  Section  5.02  hereof  (except  that  it may be  duly
incorporated, validly existing and in good standing under the laws of the United
States of America or any State thereof); and

                  (v) all filings of UCC financing and continuation  statements,
filings in accordance with the Federal Aviation Act and amendments thereto shall
be made and all further actions taken in connection with such appointment as may
be necessary in connection with maintaining the valid and continued registration
of the Aircraft in accordance with the Federal Aviation Act.

     Section 19.02 ALIENATION BY LESSOR. (a) Lessor may not, without the prior
consent of the Lessee, assign any of its rights under or interest in this Lease
except to a successor Owner Trustee as provided in Section 19.01 or as otherwise
expressly provided herein or in any other Operative Document. Lessee shall
provide Lessor with such information regarding the location of the Aircraft in
connection with any such assignment as the Lessor may reasonably request.

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          (b) Lessor may enter into a Financing with a Financing Party upon
twenty (20) days' prior written notice to Lessee, and Lessee agrees to execute
and deliver in connection with any Financing such documents and assurances
(including an acknowledgment of the Financing and a certificate as to the
absence of any Default under this Lease) and to take such further action as the
Owner Trustee may reasonably request in connection with the Financing. A
Financing Party shall be entitled to be an Indemnitee and an Additional Insured.

          (c) In connection with a Financing by the Lessor, (i) as a condition
precedent to such Financing becoming effective, Lessor will procure that the
Financing Party shall execute and deliver to Lessee a letter of quiet enjoyment
reasonably acceptable to Lessee in respect of Lessee's use and possession of the
Aircraft, (ii) the Lessor shall reimburse Lessee for any reasonable costs and
expenses (including reasonable attorneys' fees) actually incurred by Lessee in
connection with such Financing, and (iii) no such Financing shall increase the
expenses or indemnity obligations of Lessee hereunder or under any other
Operative Document., including without limitation obligations under Article XIV
or XV hereof or the Tax Indemnity Agreement.

     Section 19.03 BENEFIT AND BINDING EFFECT. The terms and provisions of this
Lease shall be binding upon and, subject to the limitations on assignment of
rights hereunder, inure to the benefit of the Lessor and the Lessee and their
respective successors and permitted assigns. Nothing herein shall be construed
as creating rights in any other Person except, to the extent provided herein,
the Beneficiary. The obligations to indemnify each Indemnitee are made for the
benefit of such Indemnitee and its respective successors and permitted assigns.

     Section 19.04 PERMITTED SUBLESSEE'S PERFORMANCE AND RIGHTS. Any obligation
imposed on the Lessee in this Lease shall require only that the Lessee perform
or cause to be performed such obligation, even if stated herein as a direct
obligation, and the performance of any such obligation by any sublessee or
transferee of the Airframe or any Engine or Part permitted by the terms hereof
under a Sublease or transfer agreement then in effect shall constitute
performance by the Lessee and to the extent of such performance discharges such
obligation by the Lessee. Except as otherwise provided in Section
8.01(c)(iii)(F) or a Sublease, a Permitted Sublessee shall have the rights
granted to the Lessee hereunder with respect to the Aircraft, Airframe and
Engines, and the provisions of this Lease shall be interpreted to permit a
Permitted Sublessee to exercise such rights to the extent permitted in the
relevant Sublease.

     Section 19.05 ALIENATION BY LESSEE. Except as provided in Article VIII,
Lessee shall not assign, transfer or otherwise dispose of or create any Lien in
or over its rights or obligations, or both, or, except as expressly permitted by
the terms hereof, delegate any of its obligations under this Lease or any other
Operative Document, except with the prior written consent of Lessor.

                                   ARTICLE XX

                                  MISCELLANEOUS

     Section 20.01 SEVERABILITY. Any provision of this Lease that is prohibited
or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provisions in any other jurisdiction. To the extent permitted
by Law, Lessee and/or Lessor hereby waives any provisions of Law which renders
any provisions hereof prohibited or unenforceable in any respect.

     Section 20.02 NOTICES. Any report, notice, request, demand or other
communication to or upon the parties hereto under this Lease shall (i) be in the
English language and in writing; (ii) be deemed to

                                       54
<Page>

have been delivered to a party if it is (1) left at the address of that party
specified below or at such other address as that party may notify to the other
party from time to time,(2) sent by courier to that party at that address, or
(3) sent by facsimile to the facsimile number of that party specified below or
to such other number as that party may notify the other party from time to time;
(iii) signed on behalf of the party giving, serving or making the same by any
attorney, director, officer, secretary, partner, agent or other duly authorized
representative of such party; and (iv) be effective (A) in the case of a letter
or delivery by courier, when left at the address referred to above ; or (B) in
the case of a facsimile transmission, when receipt is confirmed by return
facsimile or by telephone or on actual receipt if not so confirmed.

For the purposes of this Lease, all reports, notices, requests, demands or other
communications shall be given or made by being addressed as follows:

          (a)  if to Lessor to:

               Wells Fargo Bank Northwest, National Association
               79 South Main Street Salt Lake City, Utah 84111
               Tel:  (801) 246-5630
               Fax:  (801) 246-5053
               Attn: Corporate Trust Department

               with a copy to:

               Mitsui & Co. (U.S.A.), Inc.
               200 Park Avenue
               New York, NY  10166
               Tel:    (212) 878-4314
               Fax:    (212) 878-0979
               Attn:   General Manager, Aerospace, Marine and Motor Vehicle
                       Department

          (b)  if to Lessee to:

               Chautauqua Airlines, Inc.

               2500 S. High School Road
               Indianapolis, Indiana  46241
               Tel:    (317) 484-6047
               Fax:    (317) 484-6060
               Attn:   President

               with a copy to:

               Wexford Capital LLC
               411 West Putnam Avenue
               Greenwich, Connecticut 06830
               Tel:    (203) 862-7000
               Fax:    (203) 862-7490
               Attn:   President

                                       55
<Page>

PROVIDED, that any report, notice, request, demand or other communication
delivered to Lessee in accordance with this Section 20.02 shall be effective as
to Lessee without regard to whether such report, notice, request, demand or
other communication has been delivered to Wexford Capital LLC.

     Section 20.03 LESSOR'S RIGHT TO PERFORM FOR LESSEE. If Lessee fails to make
any payment required to be made by it hereunder or fails to perform or comply
with any of the covenants, agreements or obligations contained herein, Lessor
shall have the right, but not the obligation, to make such payment or conform or
comply with such agreement, covenant or obligation, and the amount of such
payment and the amount of the reasonable expenses of Lessor incurred in
connection with such payment or the performance thereof or compliance therewith,
together with interest thereon at the Interest Rate, shall be payable by Lessee
to Lessor, as Supplemental Rent, upon demand. Lessor agrees to notify Lessee in
writing prior to making any payment or exercising any right under this Section
20.03, unless the Aircraft will be in danger of loss, sale, confiscation,
forfeiture or seizure should such payment not be made or right exercised. The
taking of any such action by Lessor shall not constitute a waiver or release of
any obligation of Lessee under this Lease, nor a waiver of any Default or Event
of Default which may arise out of Lessee's nonperformance of such obligation,
nor an election or waiver by Lessor of any remedy or right available to Lessor
under or in relation to this Lease.

     Section 20.04 COUNTERPARTS, CHATTEL PAPER. This Lease may be executed in
two or more counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument. To the extent, if
any, that this Lease constitutes chattel paper (as such term is defined in the
UCC as in effect in any applicable jurisdiction) no security interest in this
Lease may be created through the transfer of possession of any counterpart other
than the original counterpart containing the receipt therefor executed by the
Lessor on the signature page thereof.

     Section 20.05 CONCERNING OWNER TRUSTEE. It is understood and agreed that,
except as otherwise expressly provided herein or in the Trust Agreement or any
other Operative Document, WFB is entering into this Lease solely in its capacity
as trustee as provided in the Trust Agreement and not in its individual capacity
and in no case whatsoever will WFB be liable or accountable in its individual
capacity for any of the statements, representations, warranties, agreements or
obligations of Lessor hereunder, or for any loss in respect thereof, as to all
of which all interested parties agree to look solely to the Trust Estate;
PROVIDED that nothing in this Section 20.05 shall be deemed to limit in scope or
substance the personal liability of WFB (a) to Beneficiary as expressly set
forth in the Trust Agreement, (b) in respect of the representations, warranties
and agreements of WFB expressly made in its individual capacity herein or in any
other Operative Document to which it is a party, (c) for the consequences of its
own gross negligence, willful misconduct and, in receiving, handling or
remitting of funds only, its willful misconduct or simple negligence as a
trustee, (d) in respect of Lessor's Liens attributable to it in its individual
capacity, and (e) taxes, fees or other charges on, or based on, or measured by,
any fees, commissions or compensation received by it in connection with the
transactions contemplated by the Operative Documents.

     Section 20.06 NO BROKERS. (a) Lessee hereby represents and warrants that it
has not paid, agreed to pay or caused to be paid directly or indirectly in any
form, to any Person, other than Seabury Securities LLC, any commission,
percentage, contingent fee, brokerage or other similar payments of any kind, in
connection with the establishment or operation of this Lease.

                  (b) Lessor  hereby  represents  and  warrants  that it has not
paid,  agreed to pay or caused to be paid directly or indirectly in any form, to
any  Person,  other  than  Tombo  Aviation  Inc.,  any  commission,  percentage,
contingent fee,  brokerage or other similar  payments of any kind, in connection
with the establishment or operation of this Lease.

                                       56
<Page>

     Section 20.07 ENTIRE AGREEMENT; MODIFICATION OR REVISION. This Lease and
the other Operative Documents is intended to be a complete and exclusive
statement of the terms of the agreement of the parties hereto and this Lease and
the other Operative Documents supersede any prior or contemporaneous agreements,
whether oral or in writing in relation to the leasing of the Aircraft to Lessee.
Neither this Lease nor any term of this Lease may be modified or waived except
by an agreement in writing signed by the parties.

     Section 20.08 GOVERNING LAW; JURISDICTION. (a) THIS LEASE IS BEING
DELIVERED IN THE STATE OF NEW YORK AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER SHALL, PURSUANT TO NEW YORK GENERAL OBLIGATIONS LAW SECTION 5-1401, BE
GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

          (b) The parties hereto each hereby irrevocably consents that any legal
action or proceeding against it or any of its assets arising out of or relating
to this Lease or any other Operative Document may be brought in any jurisdiction
where it or any of its assets may be found, in the courts of the State of New
York located in the County of New York, New York, and in the Federal courts
sitting in the Southern District of New York, as the party bringing such action
or proceeding may elect, and by execution and delivery of this Lease each of the
parties hereto hereby irrevocably submits to and accepts with regard to any such
action or proceeding, for itself and in respect of its assets, generally and
unconditionally, the jurisdiction of the aforesaid courts and irrevocably agrees
to be bound by any judgment rendered thereby. Nothing herein shall prevent any
party from bringing any legal action or proceeding or obtaining execution of
judgment in any other appropriate jurisdiction. The parties hereto further agree
that a final judgment in any action or proceeding arising out of or relating to
this Lease or any other Operative Document shall be conclusive and may be
enforced in any other jurisdiction within or outside the United States by suit
on the judgment, a certified or exemplified copy of which shall be conclusive
evidence of the fact and the amount of the indebtedness or liability therein
described, or in any other manner provided by Law. Each of the parties hereto
hereby irrevocably waives, to the fullest extent permitted by Law, any objection
which it may now or hereafter have to the laying of venue of any suit, action or
proceeding arising out of or relating to this Lease or any other Operative
Document brought in any court in or of New York, New York, and hereby further
irrevocably waives any claim that any such suit, action or proceeding in New
York, New York has been brought in an inconvenient forum.

          (c) Each party hereto hereby irrevocably consents to the service by
certified mail at its address set forth in Section 20.02 of any summons and
complaint and any other process which may be served in any action or proceeding
arising out of or relating to this Lease or any other Operative Document.
Notwithstanding the foregoing, nothing herein shall affect the rights of either
party to serve process in any other manner permitted by Law.

     Section 20.09 WAIVER OF IMMUNITY. To the extent that any party may in any
jurisdiction claim for itself or its assets immunity from suit, execution,
attachment (whether in aid of execution before judgment or otherwise) or other
legal process and to the extent that in any such jurisdiction there may be
attributed to itself or its assets such immunity (whether or not claimed), that
party hereby irrevocably agrees not to claim and hereby irrevocably waives such
immunity to the full extent permitted by the Laws of such jurisdiction.

     Section 20.10 WAIVER OF JURY TRIAL. Each party hereto hereby waives, to the
fullest extent permitted by applicable law, any right it may have to a trial by
jury in respect of any litigation directly or indirectly arising out of, under
or in connection with this Lease or any other Operative Document. Each party
hereto (a) certifies that no representative, agent or attorney of any other
party has represented, expressly or otherwise, that such other party would not,
in the event of litigation, seek to enforce the foregoing waiver and (b)
acknowledges that it and the other parties hereto have been induced to enter
into

                                       57
<Page>

this Agreement and the other  transaction  documents,  as applicable,  by, among
other things, the mutual waivers and certifications in this section.

     Section 20.11 [RESERVED]. Section 20.12 CONFIDENTIALITY. The Lessor and
Beneficiary agree to keep the following information confidential: all
information that is included in any Exhibit hereto that is not filed with the
FAA and such other information as any Party shall identify in writing to the
other Parties as confidential information, including any such information that
is so identified in connection with an inspection of the Aircraft pursuant to
Section 13.02. This confidentiality obligation shall survive the termination of
this Lease for a period of one year following such termination, except that if
this Lease shall have been terminated following an Event of Default, Lessor
shall have the right to disclose such information as may be necessary in order
to remarket the Aircraft and/or to enforce any remedy that may be available to
it. Notwithstanding the foregoing, this Lease, the other Operative Documents and
all information supplied by either of the parties hereunder or thereunder may be
disclosed by any other party (1) as may be required by Law or by any court or
administrative order, (2) to the extent that the substance hereof or thereof
becomes public knowledge through no fault or negligence of such other party, (3)
to such party's professional advisers and to the Manufacturer and Engine
Manufacturer, and (4) to any subsequent potential transferees of the Aircraft,
the Trust Estate or an interest therein or the Beneficial Interest or to a
Financing Party, PROVIDED that any such Person agrees to be bound by this
Section 20.12.

     Section 20.13 TERMINATION. Upon the return of the Aircraft in accordance
with Article XVIII or as otherwise provided in Section 18.11, the Term shall
end, and the obligations of the Lessee to pay Rent (except for Supplemental Rent
obligations surviving pursuant to Section 6.05 and Articles XIV and XV of this
Lease or the Tax Indemnity Agreement or which have otherwise accrued but not
been paid as of the Termination Date) shall cease.

                     [This space intentionally left blank.]

                                       58
<Page>

     IN WITNESS WHEREOF, Lessor and Lessee, each pursuant to due authority, have
each caused this Aircraft Lease Agreement [N288SK] to be executed by their duly
authorized officers on the day and year first above written.

                                        Lessor:

                                        WELLS FARGO BANK NORTHWEST, NATIONAL
                                        ASSOCIATION, not in its individual
                                        capacity, except as expressly set forth
                                        herein, but solely as Owner Trustee

                                        By: /s/ Brett R. King
                                           -------------------------------------
                                           Name:  Brett R. King
                                           Title: Vice President

                                        Lessee:

                                        CHAUTAUQUA AIRLINES, INC.

                                        By: /s/ Robert H. Cooper
                                           -------------------------------------
                                        Name:  Robert H. Cooper
                                        Title: Vice President

<Page>

     IN WITNESS WHEREOF, Lessor and Lessee, each pursuant to due authority, have
each caused this Aircraft Lease Agreement [N288SK] to be executed by their duly
authorized officers on the day and year first above written.

                                        Lessor:

                                        WELLS FARGO BANK NORTHWEST, NATIONAL
                                        ASSOCIATION, not in its individual
                                        capacity, except as expressly set forth
                                        herein, but solely as Owner Trustee

                                        By: /s/ Brett R. King
                                           -------------------------------------
                                           Name:  Brett R. King
                                           Title: Vice President

                                        Lessee:

                                        CHAUTAUQUA AIRLINES, INC.

                                        By: /s/ Robert H. Cooper
                                           -------------------------------------
                                        Name:  Robert H. Cooper
                                        Title: Vice President

     The undersigned acknowledges receipt of this original counterpart of this
Aircraft Lease Agreement [N288SK] on this __ day of ____________, 2001.

                                        WELLS FARGO BANK NORTHWEST, NATIONAL
                                        ASSOCIATION, not in its individual
                                        capacity, except as expressly set forth
                                        herein, but solely as Owner Trustee

                                        By: /s/ Brett R. King
                                           -------------------------------------
                                        Name:  Brett R. King
                                        Title: Vice President

AIRCRAFT LEASE AGREEMENT []

<Page>

                                                                     EXHIBIT A-1

                             DESCRIPTION OF AIRCRAFT

AIRFRAME:

<Table>
<Caption>
MFG/MODEL                         SERIAL NO.                 REGISTRATION MARK
<S>                                 <C>                           <C>
Embraer EMB-145LR                   145461                        N288SK
</Table>

ENGINES (each of which has over 750 rated takeoff horsepower or the equivalent
thereof):

<Table>
<Caption>
MFG/MODEL                                                SERIAL NO.
<S>                                                      <C>
Rolls-Royce Allison AE3007-A1P                           CAE 311866
Rolls-Royce Allison AE3007-A1P                           CAE 311867
</Table>

<Page>

                                                                       EXHIBIT C

                     FORM OF DELIVERY ACCEPTANCE CERTIFICATE
                                EMBRAER EMB-145LR
                                     MSN [ ]

     To:  Wells Fargo Bank Northwest, National Association
          79 South Main Street
          Salt Lake City, Utah 84111

     This Delivery Acceptance Certificate is delivered on the date set forth
below by Chautauqua Airlines, Inc. (the "LESSEE") to Wells Fargo Bank Northwest,
National Association, not in its individual capacity, except as expressly set
forth therein, but solely as Owner Trustee (the "LESSOR") pursuant to Aircraft
Lease Agreement [ ] dated as of June [ ], 2001 (the "LEASE") between Lessor and
Lessee. Terms used in this Certificate shall have the same meanings as in the
Lease.

     1.   ACCEPTANCE. Lessee hereby indicates and confirms to Lessor that Lessee
has at ________ hours, local time, on ______________ __, 2001 at the Delivery
Location accepted from Lessor possession of:

          one (1) Embraer EMB-145LR airframe bearing manufacturer's serial no. ,
          together with

          two (2) AE3007-A1P engines bearing manufacturer's serial nos. [ ] and
          [ ]; and

          one (1) ________ auxiliary power unit bearing manufacturer's serial
          no. ; and -------

          all equipment, accessories, furnishings and parts belonging to,
          installed in or appurtenant to that Airframe, those Engines and APU
          and all Aircraft Documents relating to such Airframe, Engines, APU,
          ancillary equipment or devices (excluding galley equipment, serving
          equipment and emergency medical equipment), and in full compliance
          with the terms of the Lease.

     2.   CONFIRMATIONS. Lessee confirms that at the above mentioned time and on
the above mentioned date (being the Delivery Date for the above Aircraft
pursuant to the Lease):

               (i)  Lessee became obligated to pay to Lessor the amounts
                    provided for in the Lease in respect of the above mentioned
                    Aircraft;

               (ii) the Aircraft is insured in accordance with the terms of the
                    Lease;

               (iii) Lessor has fully, duly and timely performed all of its
                    obligations under the Lease; and

               (iv) the representations and warranties contained in Section 5.01
                    of the Lease are true and correct as at the date hereof
                    (unless any such representation and warranty shall have been
                    made with reference to a specified date,

<Page>

                    in   which case such representation and warranty shall be
                    true and correct as of such specified date).

     3. RELIANCE. Lessee acknowledges and agrees that any Financing Party may
rely upon all or any of the foregoing in granting any Financing and that funds
may be advanced in reliance upon the foregoing.

                                        2
<Page>

     IN WITNESS WHEREOF, Lessee has caused this Delivery Acceptance Certificate
to be executed on its behalf by its duly authorized officers or representatives
pursuant to due corporate authority on this the Delivery Date.

                                        CHAUTAUQUA AIRLINES, INC.

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

<Page>

                                                                     EXHIBIT D-3

                      FORM OF RETURN ACCEPTANCE CERTIFICATE
                                EMBRAER EMB-145LR
                                       MSN

To:  Chautauqua Airlines, Inc.
     2500 S. High School Road
     Indianapolis, Indiana 46241

          This Return Acceptance Certificate is delivered on the date set forth
below by Wells Fargo Bank Northwest, National Association, not in its individual
capacity, except as expressly set forth therein, but solely as Owner Trustee
(the "LESSOR") pursuant to an Aircraft Lease Agreement [N288SK] dated as of
June4, 2001 (the "LEASE") between Lessor and Lessee. Terms used in this
Certificate shall have the same meaning as in the Lease.

          Lessor hereby indicates and confirms to Lessee that Lessor has at
___________hours, local time, on ______________, 20____ at
_______________________(1), being the agreed Return Location, accepted from
Lessee possession of:

          one (1) Embraer EMB-145LR airframe bearing manufacturer's serial no. ,
          together with its
          two (2) Rolls Royce Allison AE 3007-A1P engines bearing manufacturer's
          serial nos. [ ] and [ ] and
          one (1) __________ auxiliary power unit bearing  manufacturer's serial
          no. _________ and
          all  equipment,  accessories,  furnishings  and  parts  belonging  to,
          installed in or appurtenant  to that  Airframe,  those Engines and APU
          and all Aircraft  Documents relating to such Airframe,  Engines,  APU,
          ancillary  equipment  (excluding all of the galley equipment , serving
          equipment and emergency medical equipment).

               (i)  in the required Return Conditions except as may be noted in
                    Annex 3 hereto
               (ii) with a status as detailed in Annex 1.

          Lessee hereby certifies that no airport, navigation, or other charges
are due with respect to the Aircraft.

                  [Remainder of page intentionally left blank]

----------
(1) Insert name of airport and city.

<Page>

     IN WITNESS WHEREOF, Lessor has caused this Return Acceptance Certificate to
be executed on its behalf by its duly authorized officers or representatives
pursuant to due corporate authority on this the Return Occasion.

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

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

                                        CHAUTAUQUA AIRLINES, INC.

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

<Page>

                                                                      ANNEX 1 to
                                                   Return Acceptance Certificate

Aircraft Type:  Embraer EMB-145LR
MSN:            [                 ]
Registration:   [                 ]

Airframe:

Total Time:                         ________         Hrs

<Table>
<Caption>
Engines:                                    Position #1                    Position #2
<S>                                         <C>                            <C>
Engine Serial Number:                       [   ]                          [        ]
Percent of life remaining
to next OH:                                 ________                       ________
Percent of life remaining
to first limiting part:                     ________                       ________
</Table>

<Table>
<Caption>
Landing Gear:                               Nose                 Left Main          Right Main
<S>                                         <C>                  <C>                <C>
Serial No.                                  ________             ________           ________
Percent of life remaining
to next OH:                                 ________             ________           ________

Brakes:
Percent of life remaining to replacement    ________             ________           ________

Tires:
Percent of life remaining to replacement    ________ ________    ________
</Table>

<Page>

                                                                       EXHIBIT E

                            LIST OF CLOSING DOCUMENTS

1.   Documents to be Provided by Lessee:

          a.   Copies of the Certificate of Incorporation and By-laws of Lessee,
               certified by a duly authorized officer of the Lessee;

          b.   Good standing certificate of Lessee;

          c.   Copies of the resolutions of the Board of Directors of the Lessee
               approving and authorizing the execution, delivery and performance
               of the Lease and the other Operative Documents in which Lessee is
               a party, and any and all other documents required to be executed
               and delivered on its behalf, certified by a duly authorized
               officer of the Lessee, together with such other documents and
               evidence with respect to it as Beneficiary may reasonably request
               in order to establish the consummation of the transactions
               contemplated by the Operative Documents and the taking of all
               corporate proceedings in connection therewith;

          d.   a Certificate of duly authorized officers of Lessee setting forth
               the names and signatures of the persons authorized and appointed
               to execute and deliver on behalf of Lessee the Lease and each
               other document to be delivered by Lessee thereunder and to take
               any action contemplated therein;

          e.   A certificate dated the Delivery Date and signed by the chief
               executive officer and the chief financial officer or treasurer or
               their equivalent of Lessee, dated the Delivery Date, stating
               that: (i) the representations and warranties contained in Section
               5.01 of the Lease, Section 9(a) of the Purchase Agreement and
               Section 6 of the Engine Warranty Assignment are true and accurate
               on and as of the Delivery Date as though made on and as of such
               time (except to the extent such representations and warranties
               expressly relate solely to an earlier date, in which case such
               representations and warranties were true and correct on and as of
               such earlier date); (ii) no event has occurred and is continuing,
               or would result from the leasing of the Aircraft under the Lease,
               that constitutes a Default, an Event of Default or an Event of
               Loss (as such terms are defined in the Lease) and (iii) Lessee is
               not in default of any of its obligations under any Other Lease
               (as such term is defined in the Lease).

2.   Documents to be provided by the Trust Company:

     a.        A copy of the Certificate of Incorporation or Articles of
               Incorporation or Articles of Association and By-Laws and general
               authorizing resolutions of the boards of directors (or executive
               committees) or other satisfactory evidence of authorization of
               the Trust Company, certified as of the Delivery Date by the
               Secretary or an Assistant Secretary of Trust Company, which
               authorize the execution, delivery and performance by Trust
               Company of each of the Operative Documents to which it is a
               party, together with such other documents and evidence with
               respect to it as Lessee and Beneficiary may reasonably request in
               order to establish the consummation of the transactions
               contemplated by the Operative Documents and the taking of all
               corporate proceedings in connection therewith;

<Page>

     b.        A good standing certificate of Trust Company and an incumbency
               certificate of Trust Company as to the person or persons
               authorized to execute and deliver the relevant Operative
               Documents on behalf of Trust Company and/or Owner Trustee, as the
               case may be; and

     c.        An Officer's Certificate of Trust Company, dated the Delivery
               Date, stating that its representations and warranties, in its
               individual capacity and as Owner Trustee, set forth in the Lease
               and the other Operative Documents are true and correct as of the
               Delivery Date (or, to the extent that any such representation and
               warranty expressly relates to an earlier date, true and correct
               as of such earlier date).

3.   Documents to be provided by Seller:

          a.   A copy of the Certificate of Incorporation and By-Laws and
               resolutions of the Board of Directors of Seller, certified as of
               the Delivery Date by the Secretary or an Assistant Secretary of
               Seller, which authorize the execution, delivery and performance
               by Seller of each of the Operative Documents to which it is a
               party, together with such other documents and evidence with
               respect to it as Beneficiary may reasonably request in order to
               establish the consummation of the transactions contemplated by
               the Operative Documents and the taking of all corporate
               proceedings in connection therewith;

          b.   A good standing certificate of Seller and an incumbency
               certificate of Seller as to the person or persons authorized to
               execute and deliver the relevant Operative Documents on behalf of
               Seller, and;

          c.   An Officer's Certificate of Seller, dated the Delivery Date,
               stating that its representations and warranties set forth in the
               Operative Documents to which it is a party are true and correct
               as of the Delivery Date (or, to the extent that any such
               representation and warranty expressly relates to an earlier date,
               true and correct as of such earlier date);

4.   Documents to be provided by Aero:

          d.   A copy of the Certificate of Incorporation and By-Laws and
               resolutions of the Board of Directors of Aero, certified as of
               the Delivery Date by the Secretary or an Assistant Secretary of
               Aero, which authorize the execution, delivery and performance by
               Aero of Assignment No. 1, Assignment No. 2 and the Bills of Sale
               (the "AERO DOCUMENTS"), together with such other documents and
               evidence with respect to it as Beneficiary may reasonably request
               in order to establish the consummation of the transactions
               contemplated by such documents and the taking of all corporate
               proceedings in connection therewith;

          e.   A good standing certificate of Aero and an incumbency certificate
               of Aero as to the person or persons authorized to execute and
               deliver the Aero Documents on behalf of Aero, and;

          f.   An Officer's Certificate of Aero, dated the Delivery Date,
               stating that its representations and warranties set forth in the
               Aero Documents are true and correct as of the Delivery Date (or,
               to the extent that any such representation and warranty expressly
               relates to an earlier date, true and correct as of such earlier
               date);

5.   Documents to be provided by Beneficiary:

                                        2
<Page>

          a.   A copy of the Certificate of Incorporation and By-Laws and
               general authorizing resolutions of the board of directors (or
               executive committees) or other satisfactory evidence of
               authorization of Beneficiary, certified as of the Delivery Date
               by the Secretary or an Assistant Secretary of Beneficiary, which
               authorize the execution, delivery and performance by Beneficiary
               of each of the Operative Documents to which it is a party,
               together with such other documents and evidence with respect to
               it as Lessee may reasonably request in order to establish the
               consummation of the transactions contemplated by the Operative
               Documents and the taking of all corporate proceedings in
               connection therewith;

          b.   A good standing certificate of Beneficiary and an incumbency
               certificate of Beneficiary as to the person or persons authorized
               to execute and deliver the relevant Operative Documents on behalf
               of Beneficiary, and;

          c.   An Officer's Certificate of Beneficiary, dated the Delivery Date,
               stating that its representations and warranties set forth in the
               Operative Documents to which it is a party are true and correct
               as of the Delivery Date (or, to the extent that any such
               representation and warranty expressly relates to an earlier date,
               true and correct as of such earlier date);

6.   A certificate of insurance signed by an Approved Insurance Broker or
Approved Insurer evidencing compliance by Lessee with the provisions of Article
XI.

7.   A letter of undertaking signed by an Approved Insurer or by an Approved
Insurance Broker complying with the provisions of Article XI.

8.   Legal opinions of:

          a.   Fulbright & Jaworski L.L.P., special counsel to Lessee,
               substantially in the form attached to the Purchase Agreement as
               Exhibit F-1;

          b.   Arthur H. Amron, in-house counsel to Lessee, substantially in the
               form attached to the Purchase Agreement as Exhibit F-2;

          c.   Ray, Quinney & Nebeker, a Professional Corporation, special
               counsel to WFB and Owner Trustee, substantially in the form
               attached to the Purchase Agreement as Exhibit F-3;

          d.   Daugherty, Fowler, Peregrin & Haught, a Professional Corporation,
               special FAA counsel, substantially in the form attached to the
               Purchase Agreement as Exhibit F-4;

          e.   Pillsbury Winthrop LLP, special counsel to Beneficiary,
               substantially in the form attached to the Purchase Agreement as
               Exhibit F-5;

          f.   Shuichi Shimoyama, Esq., manager of the Legal Department of
               Beneficiary, substantially in the form attached to the Purchase
               Agreement as Exhibit F-6;

          g.   Arthur H. Amron, in-house counsel to Seller, substantially in the
               form attached to the Purchase Agreement as Exhibit F-7;

                                        3
<Page>

          h.   Pinheiro Neto, special Brazilian counsel to Beneficiary, in a
               form reasonably satisfactory to Seller, the Beneficiary, the
               Lessor and the Lessee and addressed to Seller, the Beneficiary,
               the Lessor and the Lessee;

          i.   (delivered only to Beneficiary) Pillsbury Winthrop LLP, special
               tax counsel to Beneficiary; and

          j.   special counsel for the Manufacturer, in a form reasonably
               satisfactory to the Beneficiary and the Lessee and addressed to
               the Beneficiary, the Lessor and the Lessee[; and

          k.   special Cayman Islands counsel for Aero, in a form reasonably
               satisfactory to Seller, the Beneficiary and the Lessee and
               addressed to Seller, the Beneficiary, the Lessor and the Lessee].

9.   An executed counterpart of each of the Operative Documents and the Trust
Agreement, duly executed by each of the parties thereto or a certified copy
thereof, including, without limitation, an originally executed copy of the Lease
and Lease Supplement No. 1 thereto;

10.  The Delivery Acceptance Certificate for the Aircraft duly signed for and on
behalf of Lessee;

11.  A copy of the certificate of airworthiness for the Aircraft, which
certificate shall be in full force and effect with no exceptions noted thereon;

12.  Evidence that the aircraft has not been registered in any jurisdiction
prior to the Delivery Date;

13.  Evidence that any required export license, import license and all customs
formalities relating to the export of the Aircraft from Brazil and the import of
the Aircraft into the United States have been obtained or complied with
(including, without limitation, copies of the following documents: (i) a
print-out of the registration of the transaction with the Registry of Credit
Transactions (the "Registro de Operacao de Credito  RC") to be obtained by the
Manufacturer through the SISCOMEX System in Brazil, (ii) a print-out of the
Export Registration (the "Registro de Exportacao - RE") of the transaction to be
obtained by the Manufacturer through the SISCOMEX System in Brazil, and (iii)
the Export Certificate of Airworthiness to be issued by the Aerospace Technical
Center ("Centro Tecnico Aerospacial - CTA") of the Ministry of Defense in Brazil
with respect to the Aircraft and (iv) evidence reasonably satisfactory to Lessor
of the amount due to the Manufacturer under the Manufacturer Purchase Agreement;

14.  One or more Uniform Commercial Code financing statements signed by Lessee
as debtor/lessee and naming Lessor as secured party/lessor;

15.  A certified accurate summary of the Lessee's Maintenance Program and an
excerpted copy of the Manufacturer Purchase Agreement to the extent relating to
the Manufacturer's warranties and related obligations or any right in the
Manufacturer Purchase Agreement assigned to Lessor pursuant to the Assignment
No.2;

16.  An excerpted copy of the Engine Warranty Agreement to the extent relating
to the Engine Manufacturer's warranties and related obligations or any right in
the Engine Warranty Agreement assigned to Lessor pursuant to the Engine Warranty
Assignment & Consent;

17.  An appraisal with respect to the Aircraft, in form and substance
satisfactory to the Lessor.

                                        4
<Page>

18.  Such other documents or conditions as Lessor may reasonably request, in
form and substance satisfactory to Lessor.

                              POST-CLOSING MATTERS

     As soon as reasonably practicable following the Delivery Date, Lessee shall
cause Special FAA Counsel to issue a post-recordation opinion indicating that
the FAA-filed Documents (other than the Trust Agreement, the application for
registration of the Aircraft with the FAA in the name of the Owner Trustee
(together with any attachments thereto) and the notice of no prior registration
of the Aircraft) have been recorded by the FAA.

     Written confirmation that the identification plate required to be affixed
to the Airframe and Engines pursuant to Section 8.05 has been duly affixed.

     If necessary, evidence that the Consent and Agreement to each of Assignment
No. 1 and Assignment No. 2 and the Guaranty by the Manufacturer, together with a
certified translation of each such document, has been filed with the Brazilian
Register of Deeds and Documents.

                                        5
<Page>

NOTE TO EXHIBIT 10.33

The two additional Aircraft Lease Agreements are substantially identical in
all material respects to the filed Aircraft Lease Agreement except as follows:

<Table>
<Caption>

------------------------------------- ----------------------------------- -----------------------------------
            TAIL NUMBER                          CLOSING DATE                     OWNER-PARTICIPANT

------------------------------------- ----------------------------------- -----------------------------------
<S>                                   <C>                                 <C>
             N286SK                             June, 2001                           Mitsui & Co.
------------------------------------- ----------------------------------- -----------------------------------
             N287SK                             June, 2001                           Mitsui & Co.
------------------------------------- ----------------------------------- -----------------------------------

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

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

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

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

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

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

------------------------------------- ----------------------------------- -----------------------------------
</Table>

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