Document:

Table of Contents
Exhibit
10.1

Registration marks OY-MRG, msn
28010

Aircraft Sale and Purchase
Agreement

dated 17 August  2006

Maersk Aircraft A/S

and

Wells Fargo Bank Northwest, National Association (not
in its individual capacity but solely as Owner Trustee)

relating to the Boeing B737-7L9 aircraft, msn 28010,
Danish registration marks OY-MRG.

PORTIONS OF
THIS EXHIBIT MARKED BY AN *** HAVE BEEN OMITTED PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

Contents:

										
	1			Definitions
and
Interpretation					1	

	2			Representations
and
Warranties					4	

	3			Agreement
to Sell and
Purchase					6	

	4			Conditions
Precedent					7	

	5			Purchase
Price					8	

	6			Pre-Delivery
Inspection					8	

	7			Delivery					9	

	8			Condition
of
Aircraft					9	

	9			Manufacturer’s
Warranties					10	

	10			Indemnities
and
Taxes					10	

	11			Insurance					12	

	12			Law
and
Jurisdiction					12	

	13			Further
Provisions					12	

	

							
	Schedule
1, description of Aircraft					16	

	Schedule 2,
Bill of Sale					17	

	Schedule 3, Acceptance
Certificate					18	

	Schedule 4, Parent
Guarantee					19	

	

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This
AIRCRAFT SALE AND PURCHASE AGREEMENT is made on this      day
of August  2006

between

MAERSK
AIRCRAFT A/S, a limited company incorporated in Denmark with its
registered office at Copenhagen Airport, DK-2791 Dragoer, Denmark (the
‘‘Seller’’);

and

WELLS
FARGO BANK NORTHWEST, NATIONAL ASSOCIATION (not in its individual
capacity but solely as Owner Trustee pursuant to the Trust Agreement
(as defined below)), a national banking association incorporated under
the laws of the State of Utah, United States of America, having its
principal place of business at 299 South Main Street, 12th
Floor, Salt Lake City, Utah, UT 84111, United States of America (the
‘‘Buyer’’).

WHEREAS the
Seller and the Buyer desire to effect, on the Delivery Date, the
transfer by the Seller to the Buyer of all of the Seller’s
right, title and interest in, under and with respect to the
Aircraft.

Now, therefore, the parties hereto agree as
follows:

		
	1 	Definitions and
Interpretation

		
	1.1 	Definitions

In
this Agreement the following terms have the meanings, except where the
context otherwise requires, given to them in this Clause
1.1:

							
	‘‘Acceptance
Certificate’’			 			means
a certificate substantially in the form of Schedule 3, Acceptance
Certificate to be signed by the Buyer and the Seller on
Delivery
	‘‘Additional
Rent’’			 			shall have the meaning given to
it in the Sterling
Lease.
	‘‘Aircraft’’			 			means
the Boeing B737-7L9 aircraft, Danish registration marks OY-MRG and
manufacturer’s serial number 28010 together with its Engines,
parts and Aircraft Documents relative thereto as the Aircraft is
further described in Schedule 1, description of
Aircraft.
	‘‘Aircraft
Documents’’			 			shall have the meaning given
to it in the Sterling
Lease.
	‘‘Airframe’’			 			means
the Aircraft excluding the Engines relative
thereto.
	‘‘Assignments of
Warranties’’			 			means the assignments of
warranties from the Seller to the Buyer in relation to Airframe and
Engines warranties as contemplated by clause
9.
	‘‘Beneficiary’’			 			means Aircastle Investment Holdings 2
Limited.
	‘‘Bill of
Sale’’			 			means a bill of sale in respect
of the Aircraft substantially in the form of Schedule 2, Bill of
Sale.
	‘‘Business
Day’’			 			means a day on which banks are
open for business in Copenhagen, New York and the Buyer’s
Jurisdiction.
	‘‘Buyer
Deposit’’			 			means the USD *** deposit made
on behalf of the Buyer under the letter of intent between the Aircastle
Advisor International Limited and the Seller dated 29 May
2006.
	‘‘Buyer’s
Jurisdiction’’			 			means the State of Utah,
United States of America.
	

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	‘‘Damage’’			 			means
a fault in or damage to the Aircraft the costs of rectification of
which exceed USD 500,000 if the damage is uninsured and USD 1,000,000
if the damage is
insured.
	‘‘Delivery’’			 			means
delivery of the Aircraft by the Seller to the Buyer pursuant to and in
accordance with this
Agreement.
	‘‘Delivery
Date’’			 			means the date on which Delivery
occurs.
	‘‘Delivery
Location’’			 			means Copenhagen, Denmark or
such other location as may be agreed between the Seller and the
Buyer.
	‘‘Effective Time
Notice’’			 			shall have the meaning given to
it in the Novation
Agreement.
	‘‘Engine’’			 			means
each engine relative to the Aircraft and as identified in Schedule
1, description of
Aircraft.
	‘‘Final Delivery
Date’’			 			means 31 August
2006.
	‘‘Governmental
Entity’’			 			means and includes (i) any
national, government, political sub-division thereof or local
jurisdiction therein, (ii) any board, commission, department, division,
organ, instrumentality, court, exchange control authority or agency of
any thereof, however constituted and (iii) any association,
organisation or institution of which any thereof is a member or to
whose jurisdiction any thereof is subject or in whose activities any
thereof is a
participant.
	‘‘Inspection’’			 			means
the Buyer’s predelivery inspection of the Aircraft as referred
to in clause
6.
	‘‘Law’’			 			means
and includes (i) any statute, decree, constitution, regulation, order,
judgment or other directive of any Governmental Entity, (ii) any
treaty, pact, compact or other agreement to which any Governmental
Entity is a signatory or party (iii) any judicial or administrative
interpretation or application of any thereof; and (iv) any amendment or
revision of any thereof.
	‘‘Lease
Certificate of Acceptance’’			 			shall have
the meaning given to ‘‘Certificate of
Acceptance’’ in the Novation
Agreement.
	‘‘Lease
Declaration’’			 			means any lease
declaration registered over and against the Aircraft with the Danish
Register of Rights over Aircraft in respect of the Sterling
Lease.
	‘‘Lessee’’			 			means
Sterling Airlines
A/S.
	‘‘Losses’’			 			means
losses, liabilities, actions, claims, proceedings, penalties, fines,
judgments, damages, Taxes, fees, costs and
expenses.
	‘‘Maintenance
Contributions’’			 			shall have the meaning
given to it in the Novation
Agreement.
	‘‘Manufacturer’’			 			means
the manufacturer of the Airframe, Engines, or any component, as
applicable in the context used herein.
	

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	‘‘Novation
Agreement’’			 			means
the lease amendment and novation agreement to be entered into on or
prior to the Delivery Date between the Seller, the Buyer and the Lessee
in respect of the Sterling
Lease.
	‘‘Parent
Guarantee’’			 			means a performance
guarantee document by Aircastle Holding Corporation Limited a Bermudan
corporation, in the form of Schedule 4, Parent
Guarantee.
	‘‘Permitted
Liens’’			 			means the Lease Declaration and
‘‘Permitted Liens’’ as such term is defined
under the Sterling Lease.
	‘‘Purchase
Price’’			 			means the amount calculated as
follows:
	 			 			P − (R + AR + SD +
D) +
INT
	 			 			where:
	 			 			‘‘P’’
means USD
***.
	 			 			‘‘R’’
means any Rent received by or payable to the Seller under the Sterling
Lease for the period from and including *** up to but excluding the
Delivery
Date.
	 			 			‘‘AR’’
means any Additional Rent received by or payable to the Seller under
the Sterling Lease less any Maintenance
Contributions.
	 			 			‘‘SD’’
means the Security
Deposit.
	 			 			‘‘D’’
means the Buyer
Deposit
	 			 			‘‘INT’’
means interest at *** per annum or the amount designated as
‘‘P’’ above from and including *** up to,
but excluding the Delivery
Date.
	‘‘Rent’’			 			shall
have the meaning given to it in the Sterling
Lease.
	‘‘Replacement Security Deposit
Agreement’’			 			means the replacement
security deposit agreement to be entered into on or prior to the
Delivery Date between the Seller, the Buyer, the Lessee and *** in
respect of a security deposit agreement dated 13 September  2005
and made between, inter alios, the Seller, the Lessee and *** in
replacement of, inter alia, the ‘‘Letter of
Credit’’ as such term shall be understood in the Sterling
Lease.
	‘‘Scheduled Delivery
Date’’			 			means 17 August
2006.
	‘‘Security
Deposit’’			 			shall have the meaning given
to ‘‘Deposit’’ in the Sterling
Lease.
	‘‘Security
Interest’’			 			shall have the meaning given
to it in the Sterling
Lease.
	‘‘Sterling
Lease’’			 			means the Aircraft Lease
Agreement in respect of the Aircraft between the Seller and the Lessee
dated 12 September  2005 and the Lease Certificate of
Acceptance.
	‘‘Taxes’’			 			means
all present and future taxes, levies, imposts, duties, stamp duties,
registration taxes and fees, sale and withholding taxes, value added
taxes (VAT) and charges of any nature in any
jurisdiction.
	

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	‘‘Total
Loss’’			 			shall
have the meaning given to it in the Sterling
Lease.
	‘‘Transaction
Documents’’			 			means this Agreement, the
Novation Agreement, the Acceptance Certificate, the Replacement
Security Deposit Agreement, the Bill of Sale, the Assignment of
Warranties and any agreement amending or supplementing any of the
foregoing documents.
	‘‘Trust
Agreement’’			 			means that certain trust
agreement dated on or about 15 August  2006 between the Buyer and
the Beneficiary relating to the
Aircraft.
	‘‘USD’’			 			means
the lawful currency of the United States of
America.
	

		
	1.2 	Interpretation

References
in this Agreement to:

			
		(a) 	Sections, clauses or
schedules are, unless otherwise specified, references to sections of,
clauses of, and schedules to, this
Agreement;

			
		(b) 	any statutory or other legislative
provision shall be construed as including any statutory or legislative
modification or re-enactment thereof, or any substitution
therefor;

			
		(c) 	the word person or
persons or to words importing persons include, without limitation,
individuals, partnerships, corporations, government agencies,
committees, departments, authorities and other bodies corporate or
unincorporated, whether having distinct legal personality or not;
and

			
		(d) 	where the context so requires, definitions
importing the singular only shall also include the plural and vice
versa.

		
	1.3 	Headings

Clause
headings are for ease of reference
only.

		
	2 	Representations and
Warranties

PART A – Seller’s
Representations and
Warranties

		
	2.1 	Seller’s
Representations and Warranties

The Seller represents and
warrants to the Buyer that the statements set out in Clause 2.2 to
Clause 2.10 are at the date hereof, and on the Delivery Date will be,
true and
accurate.

		
	2.2 	Status

The
Seller is a limited liability company (in Danish
‘‘aktieselskab’’) incorporated and validly
existing under the laws of Denmark and has the corporate power to enter
into and implement the transactions contemplated by the Transaction
Documents to which it is a
party.

		
	2.3 	Due
Authorisation

The execution, delivery and performance of
the Transaction Documents to which the Seller is a party have been duly
authorised by all necessary corporate action on the part of the
Seller.

		
	2.4 	Binding
Obligations

The Transaction Documents to which the Seller
is a party constitute legal, valid and binding obligations of the
Seller.

		
	2.5 	Consents

Each
consent required by the Seller to authorise, or required by it in
connection with the execution, delivery, performance, legality,
validity or enforceability of the Transaction Documents to which it is
a party has been obtained and is in full force and effect, and there is
no default in the observance or performance of any of the conditions
and restrictions (if any) imposed on or in connection
therewith.

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	2.6 	No
Conflict

The execution, delivery and performance by the
Seller of the Transaction Documents to which it is a party will not (i)
conflict with, or result in any material breach of, any of the terms
of, or constitute a default under, any agreement or document to which
it is a party or by which it or any of its property or assets may be
bound or (ii) contravene or conflict with the provisions of its
constitutive documents or applicable laws, regulations, judgments and
orders.

		
	2.7 	Title to Aircraft

The Seller will at Delivery have full legal and beneficial
ownership of the Aircraft free from any Security Interest other than
Permitted Liens and shall with full title guarantee transfer to Buyer
good and marketable title in and to the
Aircraft.

		
	2.8 	No Material
Litigation

No legal action, suit, proceeding or
investigation is currently pending against Seller (and to the best of
Seller’s knowledge and belief no legal action, suit, proceeding
or investigation is currently threatened against Seller) which, if
adversely determined, would materially impair (i) its ability to
perform under this Agreement or any other Transaction Documents or (ii)
the validity or enforceability of this Agreement or any other
Transaction Documents to which the Seller is a
party.

		
	2.9 	The Seller is not in default
in respect of any obligation to be performed by the Seller pursuant to
the Sterling Lease.

		
	2.10 	No liquidator,
provisional liquidator, receiver, examiner, manager, administrator,
custodian, trustee or similar officer has been appointed in respect of
all or part of the assets of the Seller nor has any application been
made to court which is still pending for an order which will lead to
the appointment of such officers or the winding-up, reorganisation,
liquidation, examination of the Seller or the entry of any order for
relief under any similar insolvency law.

PART B
– Buyer’s Representations and
Warranties

		
	2.11 	Buyer’s
Representations and Warranties

The Buyer represents and
warrants to the Seller that the statements set out in Clauses 2.12 to
2.18 are true and accurate at the date of this Agreement and on the
Delivery
Date.

		
	2.12 	Status

The
Buyer is a national banking association incorporated and validly
existing and in good standing under the laws of the Buyer’s
Jurisdiction and has the corporate power to enter into and implement
the transactions contemplated by the Transaction Documents to which it
is a party.

		
	2.13 	Due
Authorisation

The execution, delivery and performance of
the Transaction Documents to which the Buyer is a party have been duly
authorised by all necessary corporate action on the part of the
Buyer.

		
	2.14 	Binding
Obligations

The Transaction Documents to which the Buyer
is a party constitute legal, valid and binding obligations of the
Buyer.

		
	2.15 	Consents

Each
consent required by the Buyer to authorise, or required by it in
connection with the execution, delivery, performance, legality,
validity or enforceability of the Transaction Documents to which it is
a party has been obtained and is in full force and effect and there is
no default in the observance or performance of any of the conditions
and restrictions (if any) imposed on or in connection
therewith.

		
	2.16 	No
Conflict

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The execution, delivery and
performance by the Buyer of the Transaction Documents to which it is a
party will not (i) conflict with, or result in any material breach of,
any of the terms of, or constitute a default under any agreement or
document to which it is a party or by which it or any of its property
or assets may be bound or (ii) contravene or conflict with the
provisions of its constitutive
documents.

		
	2.17 	No Material
Litigation

Buyer is not aware of any legal action, suit,
proceeding or investigation that is currently pending or threatening
against Buyer which, if adversely determined, would materially impair
(i) its ability to perform under this Agreement or any other
Transaction Documents or (ii) the validity or enforceability of this
Agreement or any other Transaction Documents to which the Buyer is a
party.

		
	2.18 	No liquidator, provisional
liquidator, receiver, examiner, manager, administrator, custodian,
trustee or similar officer has been appointed in respect of all or part
of the assets of the Buyer nor has any application been made to court
which is still pending for an order which will lead to the appointment
of such officers or the winding-up, reorganisation, liquidation,
examination of the Buyer or the entry of any order for relief under any
similar insolvency law.

		
	3 	Agreement to Sell
and
Purchase

		
	3.1 	Agreement

Subject
to the provisions of this Agreement, the Seller agrees to sell all its
rights, title and interest in the Aircraft to the Buyer, on the
Delivery Date, and the Buyer agrees to purchase the Aircraft from the
Seller, on the Delivery Date at the Delivery Location, in an
‘‘as is, where is’’ condition.

		
	3.2 	Transfer of Title

The
Seller shall upon Delivery pass good and marketable title with full
title guarantee to the Aircraft to the
Buyer.

		
	3.3 	Security
Interests

Save for Permitted Liens, the Aircraft shall
upon its Delivery be free and clear of any Security
Interests.

		
	3.4 	Risk

Risk
of loss or destruction of the Aircraft or damage to the Aircraft shall
pass from the Seller to the Buyer upon Delivery.

		
	3.5 	Total Loss and Damage before
Delivery

If after the Inspection, but before Delivery,
the Aircraft suffers:

			
		3.5.1 	Damage
either party may notify the other party that it terminates its
obligation to sell or buy (as the case may be) the Aircraft. If a party
so wishes to terminate its obligation, it shall notify the other party
no later than 3 Business Days after becoming aware of the subject
Damage;

			
		3.5.2 	a Total Loss this
Agreement shall automatically terminate.

If terminated in
accordance with 3.5.1 or 3.5.2, the parties’ rights and
obligations under this Agreement shall cease and be discharged without
further liability of either of the Buyer or Seller (save that the
Seller shall forthwith return the Buyer Deposit) and neither party
shall have any claims against the other for any Losses resulting from
such non-delivery.

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	4 	Conditions
Precedent

		
	4.1 	Seller
Conditions

The obligations of the Seller to sell the
Aircraft to the Buyer shall be subject to fulfilment of each of the
following conditions on or prior to the Delivery Date for the
Aircraft:

			
		(a) 	receipt by the Seller of the
Purchase Price;

			
		(b) 	receipt by the Seller of
corporate documentation in respect of the Buyer and evidence of due
execution by the Buyer of the Transaction
Documents;

			
		(c) 	receipt by the Seller of legal
opinions from (i) Conyers Dill and Pearman, Bermudan counsel to the
Buyer in form and substance satisfactory to the Seller regarding, inter
alia, the due execution and enforceability of the Parent Guarantee and
(ii) Ray Quinney & Nebeker, Special Utah counsel to the Buyer,
regarding, inter alia, the due execution and authorisation of those of
the Transaction Documents to which the Buyer is a
party;

			
		(d) 	receipt by the Seller of the Parent
Guarantee duly executed by Aircastle Holding Corporation
Limited;

			
		(e) 	receipt by the Seller of the Novation
Agreement duly executed by the parties thereto (other than the
Buyer);

			
		(f) 	receipt by the Seller of the
conditions precedent deliverable to, and/or to be fulfilled in favour
of, it under the Novation Agreement; and

			
		(g) 	the
representations given by the Buyer in Part B of Clause 2 being true and
accurate on the Delivery
Date.

		
	4.2 	Waiver by
Seller

The conditions precedent set out in Clause 4.1
have been inserted for the benefit of the Seller and may be waived or
deferred in writing, in whole or in part and with or without
conditions, by the Seller.

		
	4.3 	Buyer
Conditions

The obligation of the Buyer to purchase the
Aircraft from the Seller shall be subject to fulfilment of each of the
following conditions on or prior to the Delivery Date for the
Aircraft:

			
		(a) 	receipt by the Buyer of corporate
documentation in respect of the Seller and evidence of due execution by
the Seller of the Transaction
Documents;

			
		(b) 	receipt by the Buyer of a legal
opinion in form and substance satisfactory to the Buyer from
Bech-Bruun, in relation to inter alia, the due execution and
enforceability of the Transaction Documents and certain registration
matters in Denmark;

			
		(c) 	receipt by the Buyer of a
legal opinion in form and substance satisfactory to the Buyer from
Gorrissen Federspiel Kierkegaard in relation to, inter alia, the due
execution and enforceability of those of the Transaction Documents to
which the Seller is a party;

			
		(d) 	the Aircraft is
not subject to any Security Interests save for Permitted Liens;

			
		(e) 	receipt by the Buyer of the Novation Agreement
and the Replacement Security Deposit Agreement duly executed by the
parties thereto (other than the
Buyer);

			
		(f) 	receipt by the Buyer of the conditions
precedent deliverable to, and/or to be fulfilled in favour of, it under
the Novation Agreement;

			
		(g) 	receipt by the Buyer
of the Assignments of Warranties, duly executed by the parties thereto
and consented to by the Relevant
Manufacturer;

			
		(h) 	the representations given by the
Seller in Part A of Clause 2 being true and accurate on the Delivery
Date;

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		(i) 	no material adverse
change in the credit status of the Lessee having occurred between 29
May  2006 and the Delivery Date (including as a result of a sale
or proposed sale of the Lessee to an entity with a lower net worth than
that of the current owner of the Lessee, FL Group hf consummated or in
the process of being consummated prior to the Delivery Date);
and

			
		(j) 	evidence that all authorisations, filings,
consents, registrations and notifications required in connection with
this Agreement and the transactions contemplated thereby have been (or
will be before any required period) obtained or effected and will be,
on their being effected or obtained, in full force and
effect.

		
	4.4 	Waiver by
Buyer

The conditions precedent set out in Clause 4.3 have
been inserted for the benefit of the Buyer and may be waived in
writing, in whole or in part and with or without conditions, by the
Buyer.

		
	4.5 	Non-fulfilment by
Buyer

If any of the conditions precedent referred to in
Clause 4.1 remain outstanding on the Final Delivery Date and are not
waived or deferred in writing by the Seller, the Seller shall be
entitled at any time after 4 p.m. CET on the Final Delivery Date to
terminate its obligation to sell the Aircraft to the Buyer by written
notice, whereupon no party to this Agreement shall have any further
obligation or liability hereunder. In case of the Agreement being
terminated in accordance with this clause due to circumstances solely
within the Buyer’s control, the Seller shall be entitled to
retain as liquidated damages (and not as penalty) the Buyer
Deposit.

		
	4.6 	Non-fulfilment by
Seller

If any of the conditions precedent referred to in
Clause 4.3 remain outstanding on the Final Delivery Date and are not
waived or deferred in writing by the Buyer, the Buyer shall be entitled
at any time after 4 p.m. CET on the Final Delivery Date to terminate
its obligation to purchase the Aircraft by written notice, whereupon no
party to this Agreement shall have any further obligation or liability
hereunder save that the Seller shall forthwith return the Buyer
Deposit.

		
	5 	Purchase
Price

		
	5.1 	Amount of Purchase
Price

The Buyer’s consideration for the Aircraft
is the Purchase Price which shall be payable immediately prior to
Delivery.

		
	5.2 	Seller Bank
Details

The Purchase Price shall be transferred in full
(without set-off or counterclaim or any deduction or withholding) to
the following account in immediately available funds by wire transfer
to:

***

All interest payable pursuant to
this Agreement shall accrue daily on the basis of the actual number of
days elapsed and a three hundred and sixty (360) day
year.

		
	6 	Pre-Delivery
Inspection

		
	6.1 	Inspection

Without
prejudice to clause 3.1, the Buyer has at its own cost arranged and
carried out a pre-delivery inspection and is satisfied with the
condition of the Aircraft.

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	7 	Delivery

		
	7.1 	Delivery
Date

The Seller and the Buyer shall use all reasonable
endeavours to procure that Delivery occurs on the Scheduled Delivery
Date.

		
	7.2 	Delivery

On the
Delivery Date and subject to the satisfaction or waiver of the
conditions precedent in Clause 4, including the payment by the Buyer of
the Purchase Price, the parties shall jointly deliver the Effective
Time Notice to the Lessee and the Seller shall execute and deliver the
Bill of Sale.

		
	7.3 	Delivery
Location

The Aircraft shall be delivered to the Buyer
while the Aircraft is located at the Delivery
Location.

		
	7.4 	In the event that
Delivery does not occur on or before the Final Delivery Date, for any
reason, then the Seller and/or the Buyer shall have the right to
terminate this Agreement by giving notice in writing thereof to the
other. Following receipt of such notice, each party shall be released
from its respective obligations hereunder (other than any obligation of
the Seller to refund the Buyer Deposit to the Buyer pursuant to Clause
3.5, Clause 4.6 and Clause 7.5) and neither party shall have any claim
against the other for any Losses resulting from such
non-delivery.

		
	7.5 	If any change occurs
after the date of this Agreement in any applicable Law which would make
it illegal for either the Buyer or the Seller to perform any of their
respective obligations under this Agreement and the Transaction
Documents, the parties shall make all reasonable endeavours until the
Final Delivery Date or such other date as the parties may agree to
re-structure the transaction contemplated by this Agreement so as to
avoid the aforementioned illegality. If following such endeavours on
the Final Delivery Date or such other date as has been agreed the
transaction has not been restructured so as to avoid the illegality,
this Agreement shall, without further act, terminate and the rights and
obligations of the parties hereunder shall cease and be discharged
without further liability on the part of either the Seller or the Buyer
(save that Seller shall return the Buyer Deposit to the Buyer
forthwith).

		
	7.6 	Either party may
terminate this Agreement upon serving notice on the other party if an
order is granted for the winding up or dissolution of the other party
or for the appointment of a trustee, receiver, administrative receiver,
examiner or similar officer in respect of that other party or any of
its assets.

		
	7.7 	To the extent that,
after Delivery, the Seller receives from the Lessee any amount of Rent
payable by the Lessee pursuant to the Lease (notwithstanding the
novation of the Lease) in respect of any period after Delivery, the
Seller shall procure that such rent is paid over to the Buyer as soon
as is reasonably practicable after its
receipt.

		
	8 	Condition of
Aircraft

		
	8.1 	Disclaimers

BUYER
UNCONDITIONALLY AGREES THAT AS BETWEEN BUYER (ON THE ONE HAND) AND
SELLER (ON THE OTHER HAND) THE AIRCRAFT AND EACH PART THEREOF IS TO BE
SOLD AND PURCHASED IN AN AS IS, WHERE IS CONDITION AS AT THE
DELIVERY DATE, AND NO TERM, CONDITION, WARRANTY, REPRESENTATION OR
COVENANT OF ANY KIND HAS BEEN MADE OR IS GIVEN BY SELLER OR ITS
SERVANTS OR AGENTS IN RESPECT OF THE AIRWORTHINESS, VALUE, QUALITY,
DURABILITY, CONDITION, DESIGN, OPERATION, DESCRIPTION, MERCHANTABILITY
OR FITNESS FOR USE OR PURPOSE OF THE AIRCRAFT OR ANY PART THEREOF, AS
TO THE ABSENCE OF LATENT, INHERENT 

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OR OTHER DEFECTS (WHETHER OR NOT
DISCOVERABLE), AS TO THE COMPLETENESS OR CONDITION OF THE AIRCRAFT
DOCUMENTS, OR AS TO THE ABSENCE OF ANY INFRINGEMENT OF ANY PATENT,
COPYRIGHT, DESIGN OR OTHER PROPRIETARY RIGHTS; AND ALL CONDITIONS,
WARRANTIES AND REPRESENTATIONS (OR OBLIGATION OR LIABILITY, IN CONTRACT
OR IN TORT) IN RELATION TO ANY OF THOSE MATTERS, EXPRESSED OR IMPLIED,
STATUTORY OR OTHERWISE, ARE EXPRESSLY
EXCLUDED.

		
	8.2 	Acceptance
Certificate

DELIVERY OF THE ACCEPTANCE CERTIFICATE BY
BUYER TO SELLER SHALL BE CONCLUSIVE PROOF, AS BETWEEN BUYER AND SELLER,
THAT BUYER HAS EXAMINED AND INVESTIGATED THE AIRCRAFT TO WHICH SUCH
ACCEPTANCE CERTIFICATE RELATES AND EACH PART THEREOF AND THAT THE
AIRCRAFT AND EACH PART THEREOF IS IN EVERY WAY SATISFACTORY TO
BUYER.

		
	9 	Manufacturer’s
Warranties

		
	9.1 	Assignment

On
Delivery, the Seller’s right, title and interest (to the extent
that such assignment is contractually permitted and to the extent they
are still subsisting) in all warranties between the Seller and the
Manufacturer relating to the Aircraft are assigned and transferred.
Warranties relating to the Engines and the Airframe shall, however, be
assigned by way of a specific instrument of assignment which shall be
consented to by the Airframe and Engine Manufacturer,
respectively.

		
	10 	Indemnities and
Taxes

		
	10.1 	Seller’s
Indemnity

The Seller shall indemnify the Buyer in full on
demand in respect of all Losses suffered or incurred by the Buyer or
any of its officers, employees or agents (regardless of when the same
are suffered or incurred) arising out of or connected in any way
with:

			
		(a) 	the purchase, manufacture, ownership,
possession, registration, performance, transportation, management,
sale, control, inspection, use or operation, design, condition,
testing, delivery, leasing, maintenance, repair, service, modification,
overhaul, replacement, removal or redelivery of the Aircraft, or any
loss of or damage to the Aircraft, or otherwise in connection with the
Aircraft or relating to loss or destruction of or damage to any
property, or death or injury to any person caused by, relating to or
arising from or out of (in each case whether directly or indirectly)
any of the foregoing matters and regardless of when the same arises or
occurs, or whether it arises out of or is attributable to any act or
omission, negligent or otherwise of the Buyer;
or

			
		(b) 	any design, article or material in the
Aircraft or the operation or use thereof constituting an infringement
of patent, copyright, trademark, design or other proprietary right or a
breach of any obligation of confidentiality owed to any
person;

PROVIDED that such indemnities shall not extend
to Losses;

			
		(a) 	to the extent that such Losses
arise out of any act, omission, event or circumstance occurring after
Delivery of the Aircraft or arise out of matters for which the Seller
is not liable under Clause 8;

			
		(b) 	to the extent
that such Losses are caused by the gross negligence, wilful misconduct
or recklessness of the Buyer or any of its employees, servants or
agents;

			
		(c) 	to the extent that such Losses are the
result of failure by the Buyer to comply with any of its express
obligations under this Agreement or any representation or warranty
given by the Buyer not being true and correct;

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		(d) 	which are ordinary or
usual operating or overhead expenses of the
Buyer;

			
		(e) 	to the extent that such Losses
represent a loss of profit, bargain or expectation under this Agreement
or relate to the value of the Aircraft;

			
		(f) 	which
are required to be borne by the Buyer in accordance with any other
express provision contained in this Agreement;
or

			
		(g) 	which relate to special, exemplary,
punitive or consequential
damages.

		
	10.2 	Buyer’s
Indemnity

The Buyer shall indemnify the Seller in full on
demand in respect of all Losses suffered or incurred by Seller or any
of its officers, employees or agents (regardless of when the same are
suffered or incurred) arising out of or connected in any way
with:

			
		(a) 	the purchase, manufacture, ownership,
possession, registration, performance, transportation, management,
sale, control, inspection, use or operation, design, condition,
testing, delivery, leasing, maintenance, repair, service, modification,
overhaul, replacement, removal or redelivery of the Aircraft, or any
loss of or damage to the Aircraft, or otherwise in connection with the
Aircraft or relating to loss or destruction of or damage to any
property, or death or injury to any person caused by, relating to or
arising from or out of (in each case whether directly or indirectly)
any of the foregoing matters and regardless of when the same arises or
occurs, or whether it arises out of or is attributable to any act or
omission, negligent or otherwise of the Seller;
or

			
		(b) 	any design, article or material in the
Aircraft or the operation or use thereof constituting an infringement
of patent, copyright, trademark, design or other proprietary right or a
breach of any obligation of confidentiality owed to any
person;

Provided that such indemnities shall not extend
to Losses:

			
		(a) 	to the extent that such Losses
arise out of any act, omission, event or circumstance occurring prior
to Delivery of the Aircraft;

			
		(b) 	to the extent
that such Losses are caused by the gross negligence, wilful misconduct
or recklessness of the Seller or any of its employees, servants or
agents;

			
		(c) 	to the extent that such Losses are the
result of failure by the Seller to comply with any of its express
obligations under this Agreement or any representation or warranty
given by the Seller not being true and
correct;

			
		(d) 	to the extent that such Losses
represent a Tax or loss of Tax benefits arising in connection with the
transfer of title to the Aircraft, provided always that nothing in this
clause 10.2(f) shall limit the obligations of the Seller contained in
clause 10.3.2 of this Agreement;

			
		(e) 	which are
ordinary or usual operating or overhead expenses of the
Seller;

			
		(f) 	which are required to be borne by the
Seller in accordance with any other express provision contained in this
Agreement; or

			
		(g) 	which relate to special,
exemplary, punitive or consequential
damages.

		
	10.3 	Taxes

		
	10.3.1 	The
Seller and the Buyer agree that they will cooperate with each other and
shall use all commercially reasonable endeavours to eliminate or
minimise Taxes with respect of the sale of the Aircraft to the
Buyer.

		
	10.3.2 	The Seller shall
indemnify and hold harmless the Buyer from and against any Taxes
arising  (i) in Denmark in relation to the purchase of the
Aircraft by Buyer (save as set forth in clause 13.7) and (ii) in
relation to the Aircraft in respect of the period prior to
Delivery.

		
	10.3.3 	Neither party shall be
responsible for Taxes arising in connection with the transfer of title
to the Aircraft save as contemplated by clauses 10.3.2 and
13.7.

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	11 	Insurance

The
Buyer undertakes to use all commercially reasonable endeavours to
procure that the Seller is insured as an additional insured with
respect to the insurances set forth in clause 13.2.3 of the Sterling
Lease for a period of 24 months after the Delivery Date, generally
complying with the requirements in clause 13 of the Sterling Lease
(mutatis mutandis).

		
	12 	Law and
Jurisdiction

		
	12.1 	This Agreement is
governed by and shall be construed in accordance with the laws of
England.

		
	12.2 	Each of the parties
irrevocably agrees that the courts of England are to have jurisdiction
to settle any disputes which may arise out of or in connection with
this Agreement and that accordingly any suit, action or proceedings
arising out of or in connection with this Agreement
(‘‘Proceedings’’) may be
brought in such courts.

		
	12.3 	Each of
the parties irrevocably waives any objection which it may have now or
hereafter to the laying of any Proceedings in any such court as is
referred to in this Clause and any claim that any Proceedings have been
brought in an inconvenient forum and further irrevocably agrees that a
judgement in any Proceedings brought in any court referred to in this
Clause shall be conclusive and binding upon them and may be enforced in
the courts of any other
jurisdiction.

		
	12.4 	Nothing contained in
this Clause shall limit the right of a party to take Proceedings
against another party in any court of competent jurisdiction, nor shall
the taking of any Proceedings in one or more jurisdictions preclude the
taking of any Proceedings in any other jurisdiction whether
concurrently or not.

		
	12.5 	Each of the
parties hereby consents generally in respect of any Proceedings arising
out of or in connection with this Agreement to the giving of any relief
or the issue of any process in connection with such Proceedings
including, without limitation, the making, enforcement or execution
against any property whatsoever (irrespective of its use or intended
use) of any order or judgment which may be made or given in such
Proceedings.

		
	12.6 	The Buyer hereby
appoints Norose Notices Limited, at the address of its registered
office from time to time, presently of Kempson House, Camomile Street,
London EC3A 7AN, England, reference PTV/AA96326 as its agent for
service of process in England in relation to any
Proceedings.

		
	12.7 	The Seller hereby
appoints The Maersk Company, Maersk House, Braham Street, London E1 5
EP, England as its agent for service of process in England in relation
to any Proceedings.

		
	13 	Further
Provisions

		
	13.1 	Further
Assurances

Each party agrees from time to time to do and
perform such other and further acts and execute and deliver any and all
such other instruments as may be required by law or reasonably
requested by the other party to establish, maintain and protect the
rights and remedies of the parties and to carry out and effect the
intent and purpose of this Agreement and of passing or transferring
title to the Aircraft in accordance with this
Agreement.

		
	13.2 	Rights Cumulative,
Waivers

The rights of the parties under this Agreement
are cumulative, may be exercised, as often as each party considers
appropriate and are in addition to its rights under general law. The
rights of both of the parties (whether arising under this Agreement or
the general law) shall not be capable of being waived or varied
otherwise than by an express waiver or variation in writing; and in
particular any failure to exercise or any delay in exercising any of
such rights shall not operate as a waiver or variation of that or any
other such right; any defective or partial exercise of any of such
rights shall not preclude any other or further exercise of that or any
other such right; and no act or course of conduct or negotiation on the
part of either party or on its behalf shall in any way preclude it from
exercising any such right or constitute a suspension or any variation
of any such right.

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	13.3 	Variation

The
provisions of this Agreement shall not be varied otherwise than by an
instrument in writing executed by or on behalf of all of the parties to
this
Agreement.

		
	13.4 	Notices

Any
notice or other communication under or in connection with this
Agreement shall be in writing in the English language or accompanied by
a certified English translation thereof and shall be delivered
personally, or by courier services such as Federal Express, DHL or
similar services, or facsimile transmission, to the respective
addresses or facsimile numbers given below or such other address or
facsimile number as the recipient may have notified to the sender in
writing. Proof of despatch shall be deemed to be proof of
receipt:

			
		(a) 	in the case of a notice sent by
courier service, upon delivery to the notified party (provided that, if
delivery is tendered but refused, such notice shall be deemed effective
upon such tender);

			
		(b) 	in the case of a facsimile
transmission, on the Business Day immediately following the date of
despatch or transmission;

to the Seller
at:

MAERSK AIRCRAFT A/S

Copenhagen Airport
South
DK-2791 Dragoer
Denmark
Attention: The President

Fax: +45 33 63 50 81

to the Buyer at:

Wells Fargo
Bank Northwest, National Association

299 South Main
Street
12th Floor
Salt Lake
City
Utah
UT84111
United States of America
Attention:
Corporate Trust Department, MAC: U1228-120
 Fax: +1 801 246
5053

with a copy to:

Aircastle Advisor
LLC

300 First Stamford Place
5th
Floor
Stamford, Connecticut 06902
United States of
America
Fax: +1 203-504-1021

or to such other
address or facsimile number as is notified by one party to the other
party under this Agreement.

		
	13.5 	Survival

Notwithstanding
anything contained herein to the contrary, all agreements, indemnities,
representations and warranties contained in this Agreement shall
survive the Delivery Date and the expiration or other termination
hereof.

		
	13.6 	Invalidity of any
Provision

If any of the provisions of this Agreement
becomes invalid, illegal or unenforceable in any respect under any law,
the validity, legality and enforceability of the remaining provisions
shall not in any way be affected or impaired.

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	13.7 	Costs and
Expenses

Each of the Seller and the Buyer shall bear its
own fees, costs and expenses in connection with the preparation,
negotiation and completion of this Agreement and performance of the
transactions contemplated hereby, except as expressly provided herein.
Notwithstanding the foregoing (i) the Seller shall be responsible for
and shall discharge the costs and expenses of the Lessee incurred in
connection with the Novation of the Lease and (ii) the Buyer shall be
responsible for and shall discharge any and all costs and Taxes payable
to the Danish Civil Aviation Authority in relation to the registration
of the transfer of title to the Aircraft with the Danish Civil Aviation
Authority.

		
	13.8 	Counterparts

This
Agreement may be executed in any number of separate counterparts by the
parties and each counterpart shall when executed and delivered be an
original document, but all counterparts shall together constitute one
and the same
instrument.

		
	13.9 	Successors and
Assigns

This Agreement shall be binding upon, inure to
the benefit of and shall be enforceable by the parties hereto, and
their respective successors and assigns; provided, that no party to
this Agreement may assign any of its obligations hereunder without the
prior written consent of the other party, which consent shall not be
unreasonably withheld or
delayed.

		
	13.10 	Third Parties
Act

A person who is not a party to this Agreement shall
have no right under the Contract (Rights of Third Parties) Act 1999 to
enforce any term of this Agreement, except for the indemnified parties
in clause 10.1 and 10.2.

		
	13.11 	No
Brokerage

Skytech-AIC has been marketing the Aircraft on
behalf of the Seller and any fees in that relation are for the account
of the Seller. Otherwise, no brokers have been assisting in bringing
about the sale of the Aircraft as contemplated in this
Agreement.

		
	13.12 	Confidentiality

The
parties shall keep this Agreement, and all terms and provisions hereof
and thereof, strictly confidential and shall not disclose, or cause to
be disclosed, the same to any person, without the prior written consent
of the other party, except (a) to prospective and permitted transferees
of any party’s interests or their respective counsel or special
counsel, certified public accountants, independent insurance brokers or
other agents, (b) in connection with any administration or enforcement
of any provisions of this Agreement, (c) to its affiliates, (d) to its
advisors, insurance brokers and accountants, or (e) as may be required
by any applicable statute, court or administrative order or decree or
governmental ruling or regulation, including insurance regulatory
bodies, banking examiners and other government officials. In the event
of disclosure of confidential information, the disclosing party (acting
always with the prior written consent of the other party) shall notify
that other party of (i) the identity of the recipient of the
information and (ii) the content of the information
disclosed.

		
	13.13 	Entire
Agreement

This Agreement and the Transaction Documents
constitute the entire agreement between the parties hereto in relation
to the sale and purchase of the Aircraft, and supersedes all previous
proposals, agreements and other written and oral communications in
relation thereto.

		
	13.14 	Time of the
Essence

Time shall be of the essence in respect of
payment and performance under this
Agreement.

—o0o—

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In witness whereof the parties
hereto have executed this Agreement on the day and year first herein
written.

SIGNED by and on behalf of MAERSK AIRCRAFT
A/S

	
	By
(in print):    Flemming
Ipsen                                    
	Title:                   Attorney-in-fact                                    
	Signature:         /s/
Flemming
Ipsen                                
	

SIGNED
by and on behalf of WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION
(not in its individual capacity but solely as Owner
Trustee)

	
	By
(in print):    C. Scott
Nielsen                               
	Title:                   Vice
President                                   
	Signature:         /s/
C. Scott
Nielsen                               
	

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Execution page, OY-MRG,
msn 28010

Schedule 1, description of Aircraft

One
(1) Boeing B737-7L9 aircraft, manufacturer’s serial number 28010
and Danish registration marks OY-MRG with two CFM56-7B22 aircraft
engines, manufacturer’s serial number 874956 and
874957.

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Schedule 2, Bill of
Sale

For good and valuable consideration, receipt and
sufficiency of which is hereby acknowledged, MAERSK AIRCRAFT A/S, a
Danish company (‘‘Seller’’) does hereby, on
the date hereof grant, convey, transfer, bargain, sell, deliver and set
over with full title guarantee to Wells Fargo Bank Northwest, National
Association (not in its individual capacity but solely as Owner
Trustee) (‘‘Buyer’’), its successors and
assigns, forever all of its right, title and interest in and to that
certain Boeing B737-7L9 aircraft, bearing manufacturer’s serial
number 28010, together with (i) the two (2) CFM56-7B22 engines bearing
manufacturer’s serial numbers 874956 and 874957, respectively,
(ii) all appliances, parts, instruments, appurtenances, accessories,
furnishings, or other equipment or property incorporated, installed in
or on or attached to said aircraft and engines (collectively the
‘‘Aircraft’’), and (iii) all Aircraft
Documents (as defined in that certain Aircraft Sale and Purchase
Agreement dated as of [•] 2006 between Seller and Buyer
(the ‘‘Sale Agreement’’).

That
Seller hereby warrants to Buyer, its successors and assigns, that it is
the holder of title to the Aircraft and the Aircraft Documents and with
the right to sell the same as aforesaid and that Seller conveys to
Buyer good and marketable title to the Aircraft and the Aircraft
Documents with full title guarantee and that Seller will warrant and
defend such title forever against all claims and demands
whatsoever.

This Bill of Sale is governed by the laws of
England.

In witness whereof, Seller has caused this
instrument to be executed by its duly authorised signatory/signatories
this              day of
[•].

MAERSK AIRCRAFT
A/S

	
	By
(in
print):                                                                           
	Title:                                                                                          
	Signature:                                                                                
	

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Schedule 3, Acceptance
Certificate

Wells Fargo Bank Northwest, N.A. as owner
trustee (the ‘‘Purchaser’’)
of 299 South Main Street, 12th Floor, Salt Lake City, UT
84111 hereby accepts delivery at[•] CET on
this [•] day of August  2006 of the Boeing
B737-7L9 aircraft with manufacturer’s serial number 28010 and
two CFM56-7B22 engines with serial numbers 874956 and 874957 in
accordance with an Aircraft Sale Agreement dated [•]
August  2006 between the Purchaser and Maersk Aircraft A/S (the
‘‘Sale Agreement’’) on an
‘‘as is, where is’’ basis.

The
Purchaser confirms that the Aircraft is satisfactory in all respects
and irrevocably accepts the Aircraft for all purposes of the Sale
Agreement.

SIGNED
BY

                                            

on
behalf of

Wells Fargo Bank Northwest, N.A.
as owner
trustee

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Schedule 4, Parent
Guarantee

See the
attached

19Table of Contents

THIS
AGREEMENT is made on this 17th day of August
2006

BETWEEN

		
	(1) 	MAERSK
AIRCRAFT A/S, a limited company incorporated under the laws of the
Kingdom of Denmark and having its registered office at Copenhagen
Airport South, DK 2791 Dragør, Denmark (the
‘‘Existing
Lessor’’);

		
	(2) 	WELLS
FARGO BANK NORTHWEST, NATIONAL ASSOCIATION (not in its individual
capacity but solely as Owner Trustee pursuant to the Trust Agreement
(as defined below), a national banking association incorporated
under the laws of the State of Utah and having its principal place of
business at 299 South Main Street, 12th Floor, Salt Lake
City, UT 84111, United States of America (the
‘‘New Lessor’’);
and

		
	(3) 	STERLING AIRLINES
A/S, a limited company incorporated under the laws of the Kingdom
of Denmark and having its registered office at Copenhagen Airport
South, DK-2791 Dragør, Denmark (the
‘‘Lessee’’).

		
	RECITALS 	

		
	(A) 	Pursuant
to an Aircraft Lease Agreement dated 12 September  2005 between
the Existing Lessor as lessor and the Lessee as lessee in respect of
the Aircraft (the ‘‘Lease
Agreement’’) together with the Certificate of
Acceptance (collectively, the
‘‘Lease’’), the Existing
Lessor agreed to lease, and the Lessee agreed to take on lease, the
Aircraft upon the terms and conditions set out
therein.

		
	(B) 	Pursuant to an Aircraft
Sale and Purchase Agreement dated on or about the date hereof between
the Existing Lessor as seller and the New Lessor as purchaser in
respect of the Aircraft (the ‘‘Sale
Agreement’’), the Existing Lessor has agreed to
sell, and the New Lessor has agreed to purchase, the Aircraft upon the
terms and conditions set out
therein.

		
	(C) 	It is a condition
precedent to the Existing Lessor’s obligation to sell, and to
the New Lessor’s obligation to purchase, the Aircraft under the
Sale Agreement that the Existing Lessor, the New Lessor and the Lessee
execute this
Agreement.

		
	(D) 	Accordingly, the
Existing Lessor and the New Lessor have requested, and the Lessee has
agreed, that with effect from the Effective Time (as defined below) the
Existing Lessor shall be released from, and the New Lessor shall
assume, all of the Existing Lessor’s rights, obligations, duties
and liabilities under the Lease on the terms and subject to the
conditions set out herein.

		
	(E) 	The
Existing Lessor, the New Lessor and the Lessee have agreed to enter
into this Agreement for the purpose of giving effect to such novation
of the Lease and to amend and modify the Lease in connection with the
foregoing.

NOW IT IS AGREED as
follows:

		
	1 	Definitions and
Interpretation

		
	1.1 	In this Agreement,
(including the Recitals) the following expressions shall have the
following
meanings:

‘‘Agent’’
means JP Morgan Chase Bank, N.A., as agent under the Credit
Agreement.

‘‘Amendment
Agreement’’ means the agreement dated on or about the
date hereof between, inter alios, the Existing Lessor and the Lessee
amending the Letter Agreement and of which the New Lessor has received
a copy.

‘‘Certificate of
Acceptance’’ means the certificate of acceptance
rendered under the Lease and attached as Schedule 2
hereto;

‘‘Credit
Agreement’’ means ***;

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‘‘Effective
Time’’ means the date and time of execution by
the Existing Lessor, the New Lessor and the Lessee of the Effective
Time Notice;

‘‘Effective Time
Notice’’ means a notice substantially in the form
attached as Schedule 1
hereto;

‘‘Insurances’’
means the insurances taken out in respect of the Aircraft in accordance
with the Lease Agreement;

‘‘Lessee
Notice’’ means the notice in the form attached at
Schedule 3 hereto;

‘‘Letter
Agreement’’ means the Letter Agreement dated 13
September  2005 between, amongst others, the Existing Lessor and
the Lessee in respect of matters relating to, inter alia, the Lease and
of which the New Lessor has received a redacted
copy;

‘‘Maintenance
Contributions’’ means the contributions paid by
the Existing Lessor to the Lessee in accordance with Clause 9.2 of the
Lease Agreement prior to the Effective
Time;

‘‘Novated
Lease’’ means the Lease as novated, amended and
supplemented by this
Agreement;

‘‘Previous
Parties’’ means
***;

‘‘Replacement Security Deposit
Agreement’’ means the replacement security agreement
to be entered into on or prior to the Effective Time between the New
Lessor, the Lessee and
***;

‘‘Security Deposit Transfer
Instruction’’ means the written instruction to
*** by Existing Lessor, A/S Maersk Aviation Holding and the Lessee for
the transfer of the amount of USD *** from account no. *** with *** to
the account with the same bank as specified in the Replacement Security
Deposit Agreement;

‘‘Secured
Parties’’ has the meaning given to such term in
the Credit Agreement.

‘‘Trust
Agreement’’ means that certain Trust Agreement dated on
or about 15 August  2006 between Wells Fargo Bank Northwest,
National Association, individually and to the extent set forth therein
and in all other respects solely as owner trustee and Aircastle
Investment Holdings 2 Limited (the ‘‘Owner
Participant’’) as the same may be amended or
supplemented from time to time.

		
	1.2 	Capitalised terms used, but not
defined, in this Agreement shall have the respective meanings assigned
to them in the Lease
Agreement.

		
	2 	Novation

		
	2.1 	As
and with effect from the Effective Time and subject, in each case, to
Clauses 2.3:

			
		(a) 	the New Lessor agrees with the
Lessee to assume the rights, obligations, duties and liabilities of the
Existing Lessor under the Lease;

			
		(b) 	the Lessee
releases the Existing Lessor from the Existing Lessor’s
obligations, duties and liabilities to the Lessee under the
Lease;

			
		(c) 	the Existing Lessor releases the Lessee
from the Lessee’s obligations, duties and liabilities to the
Existing Lessor under the Lease and the Existing Lessor agrees that it
has no further rights under the Lease;

			
		(d) 	the
Lessee agrees that it will not assert against the New Lessor any claim
or defence that it may have or have had against the Existing Lessor
under the Lease related to the period or arising prior to the Effective
Time; and

			
		(e) 	the Lessee agrees with the New
Lessor to perform its obligations under the Lease (as amended and
supplemented by this Agreement) in favour of the New
Lessor,

each of the foregoing events and agreements
being conditional on, and taking effect simultaneously with, the
others.

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	2.2 	The Existing
Lessor, the New Lessor and the Lessee accordingly agree that as and
with effect from the Effective Time, the Lease shall be novated to the
New Lessor with the effect of constituting a new agreement in the form
of the Novated Lease between the New Lessor as lessor and the Lessee as
lessee. The Lessee acknowledges that the Aircraft was delivered to the
Lessee on 13 September  2005, that the Lessee is in possession of
the Aircraft pursuant to such delivery and that the New Lessor may rely
on the Certificate of Acceptance issued by the Lessee to the Existing
Lessor as though it had been issued to the New Lessor. It is
acknowledged by all parties hereto that no further physical delivery by
the New Lessor is required or contemplated as a result of this
Agreement.

		
	2.3 	Without prejudice to
the rights of the New Lessor or the Lessee hereunder or under the
Novated Lease, the Lessee and the Existing Lessor agree that, in
respect of any losses, liabilities, claims, obligations or duties
suffered or incurred (and whether or not asserted) by either of them in
respect of the part of the Lease Period prior to the Effective Time,
each shall have the same rights and remedies against each other as it
would have had if the Existing Lessor had remained the
‘‘Lessor’’ under the Lease and this
Agreement had not been executed. The New Lessor shall not be
responsible to the Lessee and the Lessee shall not be responsible to
the New Lessor in respect of any such losses, liabilities, claims,
obligations or duties nor shall the Lessee or the New Lessor exercise
any set off or counterclaim against each other in respect of any such
losses, liabilities, claims, obligations or duties.

		
	2.4 	Notwithstanding the provisions of
Clause 2.3 above, the parties specifically acknowledge and agree that
as of the Effective Time the New Lessor shall assume all duties,
obligations and liabilities of the Existing Lessor under the Lease in
respect of claims raised by the Lessee on or after 16 June  2006
in relation to contributions of the Lessor under clause 9 of the Lease
Agreement and that the Lessee has no rights against the Existing Lessor
in respect of the Maintenance Contributions, whether arising on or
after 16 June  2006.

		
	2.5 	In the
event that any claim arising under or relating to the Lease or the
Novated Lease is raised by the Lessee at any time after the Effective
Time and both the New Lessor and the Existing Lessor reject such claim
by asserting that such claim relates to either (i) the
period prior to the Effective Time (in the case of the New
Lessor) or (ii) the period after the Effective Time (in the case of the
Existing Lessor), the New Lessor shall notwithstanding anything
set out to the contrary in this Agreement (and without
prejudice to any right of recourse as between the New Lessor and
the Existing Lessor) be liable towards the Lessee for the
fulfilment of such claim.

		
	3 	Lease
Amendment

		
	3.1 	As of, and with effect
from, the Effective Time the Lease, as novated hereby, shall be amended
as
follows:

			
		(a) 	‘‘Agent’’
means JP Morgan Chase Bank, N.A. as agent under the Credit
Agreement;

			
		(b) 	‘‘Credit
Agreement’’ means ***;

			
		(c) 	by
deleting the definition of ‘‘Banks’’ in
Clause 1.1 of the Lease Agreement in its entirety and by replacing the
reference to ‘‘Bank’’ and
‘‘Banks’’ each time it
appears with a reference to
‘‘Financiers’’ and inserting
the following new
definition:

‘‘Financiers’’
means any lender or agent party to the Credit Agreement from time to
time or such other financing party as may be notified from time to time
by Lessor to Lessee.

			
		(d) 	by deleting the
definition of ‘‘Owner’’ in Clause 1.1 of
the Lease Agreement and inserting the following new
definition:

‘‘Owner’’
means Wells Fargo Bank Northwest, National Association, not in its
individual capacity but as owner trustee for the Owner
Participant.

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		(e) 	by deleting the
definition of ‘‘Place of Payment’’ in
Clause 1.1 of the Lease Agreement and inserting the following new
definition:

‘‘Place of
Payment’’ means account number
***.

			
		(f) 	by replacing the word
‘‘Lenders’’ in line 2 of clause 13.5 by the
‘‘Agent’’;

			
		(g) 	the
expression ‘‘Lessor’’ wherever it appears
in the Lease shall be treated as though it referred to the New Lessor
to the exclusion of the Existing Lessor, save in the reference to
delivery of the Aircraft in clause 3 of the Lease Agreement and save
for any references to ‘‘Lessor’’ which are
specifically amended by other provisions of this
Agreement;

			
		(h) 	by including references to
‘‘Owner Participant’’ and
‘‘Agent’’ after the word
‘‘Owner’’ each time such word appears in
clauses 13.6.1, 13.6.4, 13.6.5, 13.6.6, 13.6.7, 13.6.8, 13.7.1, 13.7.2,
13.8.1, 13.8.4, 13.10, 13.12.6, 13.12.7 and 13.13.1 of the Lease
Agreement (provided that any extra premium shall be payable by the New
Lessor);

			
		(i) 	by replacing the word
‘‘Lenders’’ with the word
‘‘Agent’’ after the word
‘‘or’’ in line 2 of clause 15.1 of the
Lease Agreement;

			
		(j) 	by including the words
‘‘or Owner Participant’’ after the word
‘‘Lessor’’ each time such word is used in
clause 15.2 of the Lease Agreement;

			
		(k) 	by
including the words ‘‘Owner Participant’’
after the word ‘‘Owner’’ and replacing the
word ‘‘Lenders’’ with the word
‘‘Agent’’, each time such words are used in
clauses 17.1 and 17.2 of the Lease
Agreement;

			
		(l) 	by deleting the word
‘‘Lessor’’ in line 7 of clause 18.3 of the
Lease Agreement and replacing it with the words ‘‘Owner
Participant’’;

			
		(m) 	by including the
words ‘‘novate and transfer’’ after the
word ‘‘assign’’ in clause 22.2 of the Lease
Agreement.

			
		(n) 	where the context so permits, the
expression the ‘‘Lease’’ wherever it
appears in the Lease Agreement shall be treated as though it referred
to the Novated Lease;

			
		(o) 	by deleting the notice
details for the Lessor in Clause 21.1 of the Lease Agreement and
substituting the following therefor:

‘‘(i)
if to the Lessor to:
Wells Fargo Bank Northwest, National
Association
299 South Main Street
Salt Lake City UT
84111
United States of America

Telefax no.: +1 801
246 5053
Attention: Corporate Trust Department, MAC:
U1228-120

with a copy to:

Aircastle
Advisor LLC
300 First Stamford Place
Fifth Floor
Stamford,
CT 06902

Telefax no.: +1 917 5919106 / +1 203 504
1021’’.

			
		(p) 	by substituting the
definition of ‘‘Tax Indemnitees’’ in the
Lease Agreement for the following new
definition:

‘‘Tax
Indemnitees’’ means the Owner Participant, the
Lessor, the Owner and the Financiers;

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		(q) 	by deleting Clause
19.2.1 of the Lease Agreement and substituting the following
therefor:

‘‘Status: it has been
properly formed as a national banking association under the laws of the
State of Utah, United States of
America’’;

			
		(r) 	by deleting the words
‘‘, subject to the Specific Aircraft
Lease’’ in line 2 of Annex F to the Lease
Agreement.

		
	3.2 	With effect from the
Effective Time, all references to the Lease contained in any documents
delivered under or pursuant to the Lease will be construed as
references to the Novated Lease as it may be further amended from time
to time.

		
	3.3 	New Lessor, Existing
Lessor and Lessee further agree:

			
		(a) 	as of the
date of this Agreement, the Additional Rent paid by Lessee less any
Maintenance Contributions made by Existing Lessor are as
follows:

	
							
	 			USD
	***						

***

	***						

***

	***						

***

	***						

***

	***						

***

	***						

***

	***						

***

	

			
		(b) 	as
of the date hereof, the Lessee has the following claims in respect of
maintenance contributions under Clause 9.2 and 9.3 of the Lease
Agreement for which the New Lessor shall be liable for in accordance
with clause 2.4, subject to such claims being eligible for coverage
under the said
clauses:

	
							
	 			USD
	***						

***

	***						

***

	***						

***

	***						

***

	***						

***

	***						

***

	***						

***

	

		
	4 	Insurance

		
	4.1 	The Lessee shall procure that with
effect from the Effective Time (i) the Owner Participant, the New
Lessor, the Agent and the Financiers (their respective successors,
assigns, shareholders, subsidiaries, affiliates, partners, contractors,
directors, officers, servants, agents and employees) are named as
additional insureds under the Insurances instead of the Existing Lessor
and (ii) the Previous Parties shall be additionally insured under those
of the Insurances that are referred to in clause 13.2.3 of the Lease
Agreement for a period of 24 months following the Effective Time. The
New Lessor shall reimburse the Lessee on demand for any costs incurred
by the Lessee in respect of increased premium or otherwise as a result
of adding such additional
insureds.

		
	4.2 	The Lessee agrees with
the New Lessor and the Existing Lessor to provide copies of
certificates evidencing such amendments as are referred to in Clause
4.1 above to the New Lessor and the Existing
Lessor.

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	5 	Relevant
Interests

As a result of the events referred to in the
recitals and clauses 2 and 3, as of the Effective Time, the following
interests will exist in relation to the
Aircraft:

			
		(a) 	New Lessor will be the legal owner
of the Aircraft;

			
		(b) 	Owner Participant will be
the beneficial owner of the Aircraft;

			
		(c) 	New
Lessor will lease the Aircraft to Lessee pursuant to the Novated
Lease;

			
		(d) 	Existing Lessor is the previous legal
and beneficial owner and previous lessor of the Aircraft;
and

			
		(e) 	*** are the previous financiers of the
Aircraft.

		
	6 	Conditions
Precedent

		
	6.1 	At the Effective Time,
the representation and warranties in this Agreement shall be true and
correct. In addition, on or before the Effective Time, the New Lessor
shall receive the following from the Lessee in form and substance
satisfactory to the New Lessor and the Existing Lessor will have
received the items in clauses (a), (b) and (f) below in form and
substance satisfactory to the Existing
Lessor:

			
		(a) 	a legal opinion dated as of the
Effective Time addressed to the New Lessor, the Financiers and the
Existing Lessor in respect of the due authorisation and execution of
this Agreement and related matters from the Lessee’s Danish
counsel, Plesner Svane
Grønborg;

			
		(b) 	evidence of the issue of each
approval, licence and consent which may be required in connection with
the performance by the Lessee of all its obligations under this
Agreement nd the Novated Lease;

			
		(c) 	a certified
copy of Lessee’s constitutional documents and specimen
signatures of the persons authorised to execute and deliver this
Agreement on behalf of the Lessee;

			
		(d) 	a
replacement deregistration power of attorney from the Lessee in favour
of the New Lessor in substantially the same form as the deregistration
power of attorney provided by the Lessee to the Existing
Lessor;

			
		(e) 	a replacement letter addressed to
Eurocontrol and/or other relevant air traffic control authority
executed by the Lessee in favour of the New Lessor, in substantially
the same form as the Eurocontrol letter provided by the Lessee to the
Existing Lessor;    

			
		(f) 	certificates of
insurance and reinsurance (if applicable) evidencing compliance with
the provisions hereof and of the Lease as to insurances and
reinsurances (if applicable) and a broker’s letter of
undertaking from the Lessee’s insurance
broker;

			
		(g) 	original Replacement Security Deposit
Agreement;

			
		(h) 	evidence that the Security Deposit
Transfer Instruction will be rendered to *** immediately following the
Effective Time and that *** will effect the transfer as contemplated by
the Security Deposit Transfer Instruction;
and

			
		(i) 	copies of the Lessee’s air
transport license, air operator’s certificate and the
certificate of airworthiness, the radio license, noise certificate and
RVSM approval in respect of the
Aircraft.

		
	6.2 	On or before the
Effective Time, the New Lessor will have received evidence from the
Existing Lessor that any security over the Aircraft in connection with
any prior financing of the Aircraft has been released and
discharged.

		
	6.3 	On, before or
immediately after the Effective Time, the Lessee shall receive the
following from the New Lessor and/or the Existing Lessor in a form and
substance satisfactory to the Lessee:

			
		(a) 	evidence
that each approval, licence and consent which may be required in
connection with the performance by the New Lessor of all its
obligations under this Agreement and the Novated Lease have or will be
issued;

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		(b) 	the lease declaration in
a form capable of being registered with first priority with the Danish
Register of Rights over Aircraft; and

			
		(c) 	a legal
opinion from the legal advisors of each of the New Lessor and the
Existing Lessor dated as of the Effective Time addressed to the Lessee
in respect of the due incorporation of the New Lessor and due
authorisation and due execution by the New Lessor and the Existing
Lessor of this Agreement and related matters;

and upon
the requirements of this clause 6.3 having been met, either of the New
Lessor or the Existing Lessor may require that the Lessee executes the
Effective Time Notice.

		
	6.4 	The
conditions specified in Clause 6.1 and 6.2 are for the benefit of the
New Lessor and may be waived or deferred in whole or in part and with
or without conditions by the New Lessor. The conditions specified in
Clause 6.3 are for the benefit of the Lessee and may be waived or
deferred in whole or in part and with or without conditions by the
Lessee. The conditions specified in Clause 6.1(a), 6.1(b) and 6.1(f)
are for the benefit of the Existing Lessor and the New Lessor and may
be waived or deferred in whole or in part and with or without
conditions by the New Lessor and the Existing
Lessor.

		
	7 	Lessee
Notice

		
	7.1 	At the Effective Time, the
New Lessor and the Agent shall furnish to the Lessee a written notice
in substantially the form of Schedule 3 hereto (the
‘‘Lessee Notice’’), and upon
receipt by Lessee of the Lessee Notice, Lessee shall take the following
actions:

			
		(i) 	Lessee shall make all
rental and other payments due under the Lease Agreement by wire
transfer to the account set forth in the Lessee
Notice;

			
		(ii) 	Lessee shall cause the
hull and liability insurance covenants required to be maintained by the
Lessee under the Lease Agreement to be endorsed as specified in the
Lessee Notice and Clause 4 hereof;
and

			
		(iii) 	Lessee will acknowledge the
Lessee Notice as provided therein, by delivering to the New Lessor and
the Agent a counterpart thereof duly executed by the
Lessee.

		
	8 	Undertakings and
Acknowledgements

		
	8.1 	The Lessee
undertakes to procure that the documents listed in Clause 6.1 are
delivered to the New Lessor and Existing Lessor (where applicable) no
later than at the Effective
Time.

		
	8.2 	The Lessee undertakes, at the
New Lessor’s cost, to replace the fireproof plates currently
affixed to the Aircraft and each Engine with new fireproof plates
bearing the wording:

‘‘This
Aircraft/Engine is owned by Wells Fargo Bank Northwest, National
Association as owner trustee, leased to Sterling Airlines A/S and may
not be operated by any other person without the prior written consent
of Wells Fargo Bank Northwest, National
Association’’

and to notify the New Lessor
of such replacement, as soon as practicable (but, in any event, not
later than 10 Business Days) after the Effective
Time.

		
	8.3 	The Lessee further
undertakes, at no cost to the Lessee, to perform and do all such other
and further acts and things and execute and deliver any and all such
other instruments (including any notification to the Aviation Authority
of changes in the ownership, registration and lease structure of the
Aircraft and providing the New Lessor and the Existing Lessor with a
copy of the certificate of registration in respect of the Aircraft
naming the New Lessor as owner) as the New Lessor may reasonably
require to reflect the change in the identity of the owner and lessor
of the Aircraft recited in this
Agreement.

		
	8.4 	The Existing Lessor
undertakes to return to the Lessee the original of each of the
Deregistration Power of Attorney and the Eurocontrol Letter, delivered
by the Lessee to the Existing Lessor under the Lease as soon as
practicable after the Effective Time.

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	8.5 	The New
Lessor undertakes to deliver a copy of the bill of sale for the sale of
the Aircraft from the Existing Lessor to the New Lessor as soon as
practicable after the Effective Time.

		
	9 	Representations and
Warranties

		
	9.1 	The Lessee represents
and warrants to the New Lessor as of the date hereof and as of the
Effective Time, that:

			
		(a) 	the Lease has not been
terminated by either of the parties
thereto;

			
		(b) 	no Event of Default has occurred and
is continuing or will result from the entry into or performance of this
Agreement by the Lessee;

			
		(c) 	the Existing Lessor
and the Lessee have not agreed any changes or amendments to the
Maintenance Programme;

			
		(d) 	the date of Delivery of
the Aircraft to the Lessee under the Lease was 13 September
2005;

			
		(e) 	there are no subleases on a dry lease
basis in effect at the date hereof and none such will be in effect at
the Effective Time;

			
		(f) 	no notice of intention to
exercise the early termination option conferred by the Letter Agreement
has been issued by the Lessee;

			
		(g) 	the Lease and
the Security Deposit Agreement constitute the sole and entire agreement
between the Lessee and the Existing Lessor regarding the leasing of the
Aircraft and there are no other documents, instruments or agreements
between the Existing Lessor and the Lessee relating to the Aircraft or
the Lease, and other than as contemplated by this Agreement, the
Certificate of Acceptance, the Security Deposit Agreement, the Letter
Agreement and the Amendment Agreement, there have been no assignments,
amendments, modifications, waivers or consents entered into with
respect to the Lease; and to the best of the Lessee's knowledge
no default by the Existing Lessor has occurred and is continuing under
the Lease and the transfer of the Aircraft to the New Lessor as
contemplated under the Sale Agreement will not result in such a
default;

			
		(h) 	no claims against the Existing Lessor
exist or are pending under or in respect of the Lease;
and

			
		(i) 	no Eligible Maintenance Event has
occurred.

		
	9.2 	The Lessee further
represents and warrants to the New Lessor and the Existing Lessor, as
of the Effective Time, that:

			
		(a) 	it is a company
duly organised and validly existing under the laws of Denmark and that
it has corporate power and authority to enter into and perform this
Agreement, this Agreement has been duly authorised by all necessary
corporate action on the part of the Lessee and neither the execution
and delivery hereof nor the transactions contemplated hereby nor
compliance by the Lessee with any terms and provisions hereof or of the
Novated Lease will contravene any law applicable to the Lessee or
result in any breach of, or constitute any default under, or result in
the creation of, any Security Interest upon any property of the Lessee
under any agreement or instrument to which the Lessee is a party or by
which the Lessee or its properties or assets may be bound or
affected;

			
		(b) 	the Lessee has complied with every
necessary consent, approval, order, or authorisation of, or
registration with, or the giving of prior notice to, any government
entity having jurisdiction over the Lessee with respect to the
execution and delivery of this Agreement or the validity and
enforceability hereof or the satisfaction of all monetary and other
obligations hereunder;

			
		(c) 	this Agreement has been
duly entered into and delivered by the Lessee and constitutes the
valid, legal and binding obligations of the Lessee enforceable in
accordance with its terms;

			
		(d) 	no Total Loss has
occurred and, to the best of Lessee's knowledge, no event, which
with the passing of time would result in a Total Loss, has
occurred;

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		(e) 	no enquiries having been
made, the Aircraft is free and clear of all Security Interests (other
than Permitted Liens);

			
		(f) 	there are no claims
known to the Lessee that can be asserted against it or the Aircraft by
the Existing Lessor arising out of the
Lease;

			
		(g) 	there are no insurance claims
outstanding by the Lessee with respect to the Aircraft and to the best
of Lessee's knowledge no damage has occurred with respect to the
Aircraft with a cost of repair in excess of USD 250,000, except for the
costs of Required Rectification (as defined in the Amendment
Agreement);

			
		(h) 	there are no outstanding notices
or demands from any governmental, semi-governmental or public authority
or instrumentality or any other person claiming authority in respect of
the Aircraft requiring any mandatory work or other mandatory action to
be taken or the mandatory expenditure of any money in respect thereof;
and

			
		(i) 	no sums are due by the Lessee to
Eurocontrol and/or any other relevant air traffic control authority in
respect of all of the aircraft operated by the
Lessee.

		
	9.3 	The New Lessor represents
and warrants to the Lessee and the Existing Lessor, as of the date
hereof and as of the Effective Time, that:

			
		(a) 	it
is a national banking association incorporated and validly existing
under the laws of the State of Utah, the United States of America and
that this Agreement has been duly authorised by all necessary corporate
action on the part of the New Lessor and has been duly executed and
delivered by the New Lessor and constitutes the valid, legal and
binding obligations of the New Lessor enforceable in accordance with
its terms;

			
		(b) 	by the execution and delivery of
this Agreement, and any of the transactions contemplated hereby, the
New Lessor has complied with every necessary consent, approval, order
or authorisation of, or registration with, or the giving of prior
notice to, any government entity having jurisdiction over the New
Lessor with respect to the execution and delivery of this Agreement or
the validity and enforceability hereof or the satisfaction of all
monetary or other obligations hereunder;
and

			
		(c) 	neither the execution and delivery of this
Agreement, nor the transactions contemplated hereby nor compliance by
the New Lessor with any terms and provisions hereof or of the Novated
Lease will contravene any law applicable to the New Lessor or result in
any breach of, or constitute any default under any agreement or
instrument to which the New Lessor is a party or by which the New
Lessor or its properties or assets may be bound or
effected.

		
	9.4 	The New Lessor hereby
represents and warrants to the Lessee in the terms of Clause 19.2 to
the Lease Agreement (as amended by this Agreement) as if references
therein to ‘‘Lessor’’ were to the New
Lessor.

		
	9.5 	The Existing Lessor
represents and warrants to the New Lessor and the Lessee, as of the
date hereof and as of the Effective Time, that:

			
		(a) 	it is a limited company duly incorporated and
validly existing under the laws of the Kingdom of Denmark and that this
Agreement has been duly authorised by all necessary corporate action on
the part of the Existing Lessor and has been duly executed and
delivered by the Existing Lessor and constitutes the valid, legal and
binding obligations of the Existing Lessor enforceable in accordance
with its terms;

			
		(b) 	by the execution and delivery
of this Agreement, and any of the transactions contemplated hereby, the
Existing Lessor has complied with, every necessary consent, approval,
order or authorisation of, or registration with, or the giving of prior
notice to, any government entity having jurisdiction over the Existing
Lessor with respect to the execution and delivery of this Agreement or
the validity and enforceability hereof or the satisfaction of all
monetary or other obligations hereunder; and

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		(c) 	neither the execution
and delivery of this Agreement, nor the transactions contemplated
hereby nor compliance by the Existing Lessor with any terms and
provisions hereof will contravene any law applicable to the Existing
Lessor or result in any breach of, or constitute any default under, or
result in the creation of, any Security Interest upon any property of
the Existing Lessor, any agreement or instrument to which the Existing
Lessor is a party, or by which the Existing Lessor or its properties or
assets may be bound or
effected.

		
	9.6 	The Existing Lessor
further represents and warrants to the New Lessor, as of the date
hereof and as of the Effective Time, that:

			
		(a) 	the
Lease is in full force and effect and has not been terminated and
Existing Lessor is not in breach of its obligations
thereunder;

			
		(b) 	the Existing Lessor and the Lessee
have not agreed any changes or amendments to the Maintenance
Programme;

			
		(c) 	the date of Delivery of the
Aircraft to the Lessee under the Lease was 13 September
2005;

			
		(d) 	the Lease and the Certificate of
Acceptance constitute the sole and entire agreement between the Lessee
and the Existing Lessor regarding the leasing of the Aircraft and there
are no other documents, instruments or agreements between the Existing
Lessor and the Lessee relating to the Aircraft or to the Lease and,
other than as contemplated by this Agreement, the Certificate of
Acceptance, the Letter Agreement and the Amendment Agreement there have
been no assignments, amendments, modifications, waivers or consents
entered into with respect to the Lease; no default by the Existing
Lessor has occurred and is continuing under the Lease and the transfer
of the Aircraft to the New Lessor as contemplated under the Sale
Agreement will not result in such a default;

			
		(e) 	to the best of the Existing Lessor’s
knowledge, all reasonable enquiries having been made, no Event of
Default under the Lease has occurred and is
continuing;

			
		(f) 	save for claims for Rent and
Additional Rent, no claims have been asserted against the Lessee or the
Aircraft by the Existing Lessor pursuant to the
Lease;

			
		(g) 	no amounts (whether in respect of Rent,
Additional Rent or otherwise) are due and owing by the Lessee to the
Existing Lessor pursuant to the Lease and no amounts are due and owing
(and to the best of the Existing Lessor’s knowledge, no claims
are pending which would make an amount due and owing) by the Existing
Lessor to the Lessee under the
Lease.

		
	10 	Letter
Agreement

		
	10.1 	The New
Lessor:

			
		(a) 	acknowledges the right of the Lessee
to terminate the leasing of certain aircraft, including the Aircraft,
in accordance with the terms of clause 2 of the Letter Agreement;
and

			
		(b) 	agrees to discuss in good faith the
staggered redelivery of the Aircraft in accordance with clause 7 of the
Letter Agreement.

		
	10.2 	The parties
agree that neither the Letter Agreement or the Amendment Agreement nor
the rights and obligations thereunder, shall be transferred nor novated
to the New Lessor and the Lessee shall have no rights against the New
Lessor in relation to the Letter Agreement and Amendment
Agreement.

		
	11 	Miscellaneous

		
	11.1 	No
variation: The provisions of this Agreement shall not be varied
otherwise than by an instrument in writing executed by or on behalf of
all the parties, provided that the New Lessor and the Lessee shall be
entitled to amend, modify or vary the terms of the Novated Lease after
the Effective Time without reference to the Existing
Lessor.

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	11.2 	Termination
of Sale Agreement: In the event that the Sale Agreement is
terminated or cancelled by agreement by the parties thereto or in
accordance with its terms or lapses or becomes void without completion
and passing of title thereunder having occurred, the Existing Lessor
and the New Lessor will promptly notify the Lessee thereof and this
Agreement, save for Clause 11.6 hereof, shall thereupon automatically
be cancelled and terminated and the rights and obligations of the
Existing Lessor and the Lessee under the Lease shall continue
unaffected by this Agreement and the Existing Lessor shall forthwith
deliver to the Lessee the Lease Declaration in the form and of contents
provided for in Annex D, Part II, Section c. to the Lease Agreement and
the New Lessor shall forthwith return to the Lessee any and all
documents delivered by or on behalf of the Lessee pursuant to clause 6
hereof.

		
	11.3 	Continued
Representations and Warranties: All representations, warranties
and agreements contained in this Agreement, including those
incorporated by reference, shall continue in full force and effect
after the Effective
Time.

		
	11.4 	Notice: Every
notice, request, demand or other communication under this Agreement
shall:

			
		(a) 	be in writing delivered personally or
by prepaid courier delivery services or other similar services or
facsimile;

			
		(b) 	be deemed to have been received,
subject as otherwise provided in this Agreement, in the case of a
facsimile, at the time of dispatch (provided, however, that if the date
of dispatch is not a business day in the country of the addressee it
shall be deemed to have been received at the opening of business on the
next such business day), and in the case of a letter, when delivered;
provided, however, that if personal delivery or delivery by courier of
a notice is tendered but refused, such notice shall be effective upon
such tender; and

			
		(c) 	be sent to the New Lessor at
the relevant address and facsimile number set out in Clause 21 of the
Lease Agreement (as amended by this Agreement), to the Existing Lessor
at the relevant address referred to in Clause 21 of the Lease Agreement
and to the Lessee at the address set out in Clause 21 of the Lease
Agreement.

		
	11.5 	Costs: Each of
the Existing Lessor and the New Lessor shall pay its own legal and
professional costs and expenses in respect of the negotiation,
documentation and closing of the transactions contemplated by this
Agreement, including, inter alia, the New Lessor paying its own costs
and expenses associated with the inspection of the Aircraft. The
Existing Lessor shall pay to the Lessee on demand and/or indemnify the
Lessee for any costs, expenses or fees, including but not limited to
legal fees and the costs of establishing the security arrangement under
the Replacement Security Deposit Agreement, reasonably incurred by the
Lessee in relation to the negotiating, documentation and closing of the
transactions contemplated by this Agreement and in relation to the
termination of any liens or other security arrangements with respect to
the Aircraft, the Lease and/or any related property in favour of the
Existing Lessor’s financiers, save that the New Lessor shall pay
to the Lessee on demand any costs, expenses and fees incurred by the
Lessee in connection with the registration of the New Lessor and its
financiers' title in and to the Aircraft and the Novated Lease.
Any other costs, fees and expenses in connection with the registration
of the New Lessor’s and its financier’s title in and to
the Aircraft and the novated lease shall be for the account of the New
Lessor.

		
	11.6 	Governing law and
jurisdiction: The provisions of Clause 23.1, 23.2 and 23.3 of the
Lease Agreement shall apply to this Agreement as if set out in full
herein and as if references therein to
‘‘Lessor’’ were to ‘‘Existing
Lessor’’ and the ‘‘New
Lessor’’ and as if references therein to the
‘‘Lease’’ were references to this
Agreement.

		
	11.7 	Entire
Agreement: The Novated Lease, the Replacement Security Deposit
Agreement and this Agreement together constitute the sole and entire
agreement between Lessee and the New Lessor in relation to the leasing
of the Aircraft and supersede all previous agreements in relation to
that leasing.

		
	11.8 	Invalidity of
Provisions: If any of the provisions of this Agreement become
invalid, illegal or unenforceable in any respect under any law, the
validity, legality and enforceability of the remaining provisions shall
not in any way be affected or impaired.

11

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	11.9 	Counterparts:
This Agreement may be executed in any number of separate counterparts
by the parties and each counterpart shall when executed and delivered
be an original document, but all counterparts shall together constitute
one and the same
instrument.

		
	11.10 	No Increased
Obligations: Notwithstanding anything set out to the contrary in
this Agreement, the Lessee’s obligations shall not be increased
and its rights shall not be diminished and the Lessee shall not at any
time be obligated to make any payment to the Existing Lessor, the New
Lessor and/or any Indemnitee under or pursuant to the Lease or the
Novated Lease which the Lessee would not have been required to make if
this Agreement and the novation contemplated hereby had not become
effective, it being understood that the addition of Indemnitees shall
not of itself be deemed to constitute an increased obligation, provided
that the Lessee’s aggregate payment obligations shall not
increase.

		
	11.11 	Tax
Restructuring: Should Taxes arise as a result of the leasing of
the Aircraft under the Novated Lease, the Lessee and the New Lessor
shall, on either such party’s reasonable request, negotiate in
good faith with a view to restructuring the Lease or to otherwise
mitigating such Taxes.

		
	12 	Effective
Time

This Agreement shall become effective upon
execution by the Existing Lessor, the Lessee and the New Lessor of the
Effective Time Notice.

IN WITNESS whereof the
parties hereto or their duly authorized representatives have executed
this Agreement on the date written above.

12

Table of Contents
SIGNATURE PAGE, LEASE NOVATION
AGREEMENT, MSN 28010

SIGNED for and on
behalf of

MAERSK AIRCRAFT
A/S

                                                            

/s/ Flemming
Ipsen            

Name:  Flemming Ipsen

SIGNED for and on behalf
of

WELLS FARGO BANK NORTHWEST, NATIONAL
ASSOCIATION

(not in its individual capacity
except as provided herein but otherwise solely as owner trustee)

                                                                

/s/ Brett R.
King            
Name:  Brett R. King

SIGNED for and on behalf
of

STERLING AIRLINES
A/S

				
	/s/
Almar Hilmarsson			/s/ Hans
Svenningsen
	Name:  Almar
Hilmarsson			Hans
Svenningsen
	

13

Table of Contents
Schedule 1, Form of
Effective Time
Notice

                    
2006

Aircraft Lease Agreement dated 12 September
2005 between Maersk Aircraft A/S (the ‘‘Existing
Lessor’’) and Sterling Airlines A/S (the
‘‘Lessee’’) in respect of one Boeing
B737-7L9 aircraft with manufacturer’s serial number 28010 as has
been and may be further amended from time to time (the
‘‘Lease’’)

Aircraft
Lease Novation and Amendment Agreement dated
                 2006 between the Existing Lessor, the
Lessee and Wells Fargo Bank Northwest, National Association (not in its
individual capacity but solely as Owner Trustee) (the
‘‘New Lessor’’), in respect of the Lease
(the ‘‘Novation
Agreement’’)

We, the Existing Lessor and
the New Lessor confirm that the conditions precedent specified in
Clauses 6.1 and 6.2 of the Novation Agreement have been satisfied (or
waived in accordance with Clause 6.4 of the Novation Agreement) and we,
the Lessee, confirm that the conditions precedent specified in Clause
6.3 of the Novation Agreement have been satisfied or waived in
accordance with Clause 6.4 of the Novation Agreement and accordingly
that the Effective Time under the Novation Agreement has
occurred.

Signed
by:                          

for
and on behalf of

MAERSK AIRCRAFT
A/S

Signed
by:                          

for
and on behalf of

WELLS FARGO BANK NORTHWEST, NATIONAL
ASSOCIATION

(not in its individual capacity but
solely as Owner Trustee)

Signed
by:                          

for
and on behalf of

STERLING AIRLINES
A/S

14

Table of Contents
Schedule 2, Lease Agreement Acceptance
Certificate

See the attached unnumbered
pages.

15

Table of Contents
Schedule 3, Lessee
Notice

THIS LESSEE’S NOTICE (this
‘‘Notice’’) is provided as
of this         day of August  2006, to Sterling Airlines
A/S (the ‘‘Lessee’’), a
limited company incorporated under the laws of the Kingdom of Denmark
whose registered office is at Copenhagen Airport South, DK-2791
Dragør, Denmark in connection with (a) the Credit Agreement
(2006-A), dated as of February  28,  2006 (the
‘‘Credit Agreement’’), among
Aircastle Investment Holdings 2 Limited, Aircastle Ireland No. 3
Limited, the Borrowers party thereto from time to time, including Wells
Fargo Bank Northwest, National Association (not in its individual
capacity but solely as owner trustee) (the
‘‘Lessor’’), JPMorgan Chase
Bank, N.A., as agent (the
‘‘Agent’’), and JPMorgan
Chase Bank, N.A., Bear Stearns Corporate Lending Inc. and Citibank
N.A., and the other Lenders party thereto from time to time
(capitalized terms used but not otherwise defined herein shall have the
respective meanings assigned thereto in the Credit Agreement), (b) that
certain Aircraft Lease Agreement dated 12 September  2005, as
supplemented by a letter agreement dated 13 September  2005
between, amongst others, Maersk Aircraft A/S (the
‘‘Previous Owner’’) and the Lessee and
as novated and amended by that certain Aircraft Lease Novation and
Amendment Agreement dated           August  2006
among the Previous Lessor as existing lessor, Lessor as new lessor and
Lessee (the ‘‘Lease’’) and (c) a
Boeing 737-7L9 aircraft having manufacturer’s serial number
28010 and Danish Registration Mark OY-MRG (the
‘‘Aircraft’’).

		
	1. 	Notice
to Lessee.    The Lessor and Agent hereby provide notice to
Lessee of the following:

			
		(a) 	The Lessor has
granted a security interest to the Agent for the benefit of the Secured
Parties in all of the Lessor’s right, title and interest in, to
and under the Lease as collateral security for all of the obligations
of the Lessor under, or in connection with the transactions
contemplated in, the Credit Agreement (the
‘‘Borrower
Obligations’’);

			
		(b) 	The
Agent and the other Secured Parties shall not, prior to becoming a
transferee of the rights and obligations of the Lessor under the Lease
(the ‘‘Transferee’’), be
subject to any liability or obligation under the Lease;
and

			
		(c) 	Following the occurrence of an Event of
Default under the Credit Agreement, and subject to the terms thereof
relating to Lessee’s right to quiet enjoyment so long as no
default or breach by Lessee exists under the Lease, the Agent shall
have the right to exercise its rights thereunder as a secured creditor
and collateral assignee of the Lease to make all demands, give all
notices, take all actions and exercise all rights of the Lessor under
and in accordance with the
Lease.

2.    Consents and Acknowledgments by
Lessee.    The Lessee hereby:

			
		(a) 	acknowledges notice of and irrevocably consents
to the assignment by the Lessor to the Agent for the benefit of the
Secured Parties of all of the Lessor’s right, title and interest
in, to and under the Lease as collateral security for the Borrower
Obligations;

			
		(b) 	agrees that the Agent and the
other Secured Parties shall not, prior to becoming a Transferee, be
subject to any liability or obligation under the Lease, and
acknowledges the right of the Agent and the other Secured Parties to
cure defaults by the Lessor under the Lease within any applicable cure
period under the Lease pursuant to the terms of this Notice
(notwithstanding anything to the contrary contained in the Lease),
without assuming or being responsible for any of the obligations of the
Lessor thereunder;

			
		(c) 	acknowledges the right of
the Agent, following the occurrence of an Event of Default under the
Credit Agreement, and subject to the terms thereof relating to
Lessee’s right to quiet enjoyment so long as no event of default
by Lessee exists under the Lease, to exercise its rights thereunder as
a secured creditor and collateral assignee of the Lease to make all
demands, give all notices, take all actions and exercise all rights of
the Lessor under and in accordance with the Lease;
and

			
		(d) 	acknowledges and agrees, notwithstanding
anything to the contrary contained in the Lease, but subject to the
provisions of this Notice, that the collateral assignment of the Lease
to the Agent for the use and benefit of the Secured Parties and any
enforcement rights executed by the Secured Parties in connection
therewith shall not in itself constitute a default or breach by the
Lessor under the Lease, provided that any exercise by the Secured
Parties of their enforcement 

16

Table of Contents
			
		 	
rights under such assignment will not
interfere with (i) the Lessee’s quiet and uninterrupted use and
enjoyment of the Aircraft or (ii) the Lessee’s rights in respect
of maintenance contributions or (iii) the Lessee‘s rights under
the security deposit agreement dated on or about the date hereof and
made between the Lessee, Lessor and
***.

		
	3. 	Payments.    Until
notified in writing by the Agent to the contrary, the Lessee shall with
releasing effect pay any and all amounts of rent payable by it to the
Lessor under the Lease directly to the Agent at its address and account
specified on Exhibit A hereto, or to such other place or entity or in
such other manner as the Agent may from time to time specify in writing
to the Lessee.

		
	4. 	Other Lessee
Notice.    Lessor hereby instructs Lessee that (i) each of
the Secured Parties now or hereafter party to the Credit Agreement
shall be deemed (x) an ‘‘Indemnitee’’ for
all purposes of the Lease, including for purposes of the general
indemnity set out in Clause 17.2 of the Lease Agreement and (y) a
‘‘Financier’’ as defined in the Lease
Agreement; and (ii) JPMorgan Chase Bank, N.A., Bear Stearns Corporate
Lending, Inc. and Citibank, N.A. shall each be named as an additional
insured; and (iii) the Agent shall be named (a) ‘‘loss
payee’’ and additional named insured or (b) a
‘‘contract party’’ on the all-risk aircraft
ground and flight hull insurance required to be maintained by Lessee
with respect to the Aircraft under the Lease and the Agent, for the
benefit of the Lenders shall be included as additional insured or
‘‘contract party’’ under the liability
insurance required to be maintained by Lessee with respect to the
Aircraft under the Lease.

5.    Secured Parties
Not Liable; Lessor Remains
Liable.

			
		(a) 	Neither JPMorgan Chase Bank,
N.A., in its capacity as Agent or as a Lender, nor any other Secured
Party shall have any duty, obligation or liability under the Lease, by
reason of this Notice or the transactions contemplated
hereby.

			
		(b) 	Nothing contained in this Consent or
in the relevant Security Assignment shall be construed as any release,
discharge, novation or waiver of the Lessor’s obligations and
liabilities under the Lease (including without limitation the duty to
perform) and the Lessor shall remain fully responsible and liable for
all obligations and liabilities of the lessor, as novated to it by the
Previous Lessor, under the Lease.

IN WITNESS WHEREOF, the
parties hereto have caused this Consent to be duly executed by
authority duly given as of the day and year first above
written.

		WELLS FARGO BANK NORTHWEST,
NATIONAL  ASSOCIATION (not in its individual capacity but solely
as owner
trustee)

		By:                                                                                    

Name:                                                                                    

Title:                                                                                    

		

		STERLING AIRLINES
A/S

		By:                                                                                    

Name:                                                                                    

Title:                                                                                    

		JPMORGAN CHASE BANK, N.A. as
Agent

		By:                                                                                    

Name:                                                                                    

Title:                                                                                    

17

Table of Contents
EXHIBIT A, Addresses for
Notices

Lessee:

Sterling Airlines
A/S
Copenhagen Airport South
DK-2791
Dragør
Denmark
Facsimile:    +45 32 31 44
99
Attention:    The
President

Agent:

JPMorgan Chase Bank,
N.A.
1111 Fannin Street, 10th Floor
Houston, TX
77002
Attn:    Michael Chau
Tel:    (713)
750-7913
Facsimile:    (713) 750-2938

Account for
Payments:

		
	Name of
Bank: 	***

		
	Swift: 	***

		
	For
the Account of: 	***

		
	Account
Name: 	***

		
	Account
Number: 	***

		
	ABA: 	***

With
a copy to:

JPMorgan Chase Bank, N.A.
270 Park Avenue,
15th Floor
New York, New York
10017
Attn:    Vilma Francis
Tel:    (212)
270-5484
Facsimile:    (212) 270-4016

18

Table of Contents

Lessor:

Wells
Fargo Bank Northwest, National Association
299 South Main
Street
 12th Floor
Salt Lake City
Utah UT
84111
United States of America
Telefax no.:    +1 801 246
5053
Attention:    Corporate Trust Department, MAC:
U1228-120

with a copy to:

Aircastle
Advisor LLC
300 First Stamford Place
Fifth Floor
Stamford,
CT 06902
Telefax no.:    +1 917 5919106 / +1 203 504
1021
Facsimile:    +353 1 477 3313
Tel:    +1
203-504-1027

19

Table of Contents
Exhibit
10.2

Execution version, OY-MRG,
msn 28010

AIRCRAFT LEASE NOVATION AND AMENDMENT
AGREEMENT

between

MAERSK
AIRCRAFT A/S

as existing
lessor

and

WELLS FARGO BANK NORTHWEST,
NATIONAL ASSOCIATION

(not in its individual capacity but
solely as Owner Trustee)

as new
lessor

and

Sterling Airlines
A/S

as
lessee

	
		
	

Relating to one Boeing
B737-7L9 aircraft with manufacturers serial number 28010 and Danish
registration marks OY-MRG (the
‘‘Aircraft’’).

	
		
	

Dated
17 August  2006

PORTIONS OF THIS EXHIBIT
MARKED BY AN *** HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

Contents

										
	Clause			 			Page
	1			Definitions
and
Interpretation					4	

	2			Novation					6	

	3			Lease
Amendment					8	

	4			Insurance					12	

	5			Relevant
Interests					12	

	6			Conditions
Precedent					13	

	7			Lessee
Notice					15	

	8			Undertakings
and
Acknowledgements					15	

	9			Representations
and
Warranties					16	

	10			Letter
Agreement					22	

	11			Miscellaneous					22	

	12			Effective
Time					25	

	Schedule 1, Form of
Effective Time
Notice					27	

	Schedule
2, Lease Agreement Acceptance
Certificate					28	

	Schedule
3, Lessee
Notice					29	

	EXHIBIT
A, Addresses for
Notices					33	

	

II

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