SECURITIES AND EXCHANGE COMMISSION


                             Washington, D.C. 20549


                                    FORM 8-K


                                 CURRENT REPORT


                     Pursuant to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934


                Date of Report (Date of earliest event reported):
                                 March 15, 2000


                           CONTINENTAL AIRLINES, INC.
             (Exact name of registrant as specified in its charter)


        Delaware                   0-09781                   74-2099724
    (State or other        (Commission File Number)        (IRS Employer
    jurisdiction of                                     Identification No.)
     incorporation)


1600 Smith Street, Dept. HQSEO, Houston, Texas                 77002
(Address of principal executive offices)                     (Zip Code)


                                 (713) 324-5000
              (Registrant's telephone number, including area code)


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Item 7.  Financial Statements and Exhibits.

(c)  Exhibits.  The  Exhibit  Index is hereby  incorporated  by  reference.  The
documents  listed on the Exhibit Index are filed as Exhibits  with  reference to
the  Registration   Statement  on  Form  S-3  (Registration  No.  333-91765)  of
Continental  Airlines,  Inc.  The  Registration  Statement  and  the  Prospectus
Supplement,  dated March 1, 2000,  to the  Prospectus,  dated  December 8, 1999,
relate  to  the   offering  of   Continental   Airlines,   Inc.'s  Pass  Through
Certificates, Series 2000-1.


<PAGE>


                                    SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, Continental
Airlines,  Inc.  has duly  caused  this report to be signed on its behalf by the
undersigned hereunto duly authorized.

                                          CONTINENTAL AIRLINES, INC.


                                          By /s/ Jeffery A. Smisek
                                             __________________________________
                                             Jeffery A. Smisek
                                             Executive Vice President, Secretary
                                             and General Counsel

March 30, 2000


<PAGE>


                                  EXHIBIT INDEX

            1.1   Underwriting  Agreement,  dated  March 1, 2000,  among  Credit
                  Suisse  First  Boston   Corporation,   Morgan  Stanley  &  Co.
                  Incorporated,  Chase Securities Inc.,  Merrill Lynch,  Pierce,
                  Fenner & Smith  Incorporated and Salomon Smith Barney Inc., as
                  Underwriters,  Credit Suisse First Boston, New York branch, as
                  Depositary, and Continental Airlines, Inc.

            4.1   Revolving Credit Agreement (2000-1A-1),  dated as of March 15,
                  2000,  between  Wilmington  Trust  Company,  as  Subordination
                  Agent, as Borrower,  and Credit Suisse First Boston,  New York
                  branch, as Liquidity Provider

            4.2   Revolving Credit Agreement (2000-1A-2),  dated as of March 15,
                  2000,  between  Wilmington  Trust  Company,  as  Subordination
                  Agent, as Borrower,  and Credit Suisse First Boston,  New York
                  branch, as Liquidity Provider

            4.3   Revolving  Credit Agreement  (2000-1B),  dated as of March 15,
                  2000,  between  Wilmington  Trust  Company,  as  Subordination
                  Agent, as Borrower,  and Credit Suisse First Boston,  New York
                  branch, as Liquidity Provider

            4.4   Revolving Credit Agreement (2000-1C-1),  dated as of March 15,
                  2000,  between  Wilmington  Trust  Company,  as  Subordination
                  Agent, as Borrower,  and Morgan Stanley Capital Services Inc.,
                  as Liquidity Provider

            4.5   Revolving Credit Agreement (2000-1C-2),  dated as of March 15,
                  2000,  between  Wilmington  Trust  Company,  as  Subordination
                  Agent, as Borrower,  and Morgan Stanley Capital Services Inc.,
                  as Liquidity Provider

            4.6   Guarantee, dated March 15, 2000, by Morgan Stanley Dean Witter
                  & Co. relating to Revolving Credit Agreement (2000-1C-1)

            4.7   Guarantee, dated March 15, 2000, by Morgan Stanley Dean Witter
                  & Co. relating to Revolving Credit Agreement (2000-1C-2)

            4.8   Trust  Supplement  No.  2000-1A-1-O,  dated  March  15,  2000,
                  between Wilmington Trust Company, as Trustee,  and Continental
                  Airlines,  Inc. to Pass Through Trust  Agreement,  dated as of
                  September 25, 1997

            4.9   Trust  Supplement  No.  2000-1A-1-S,  dated  March  15,  2000,
                  between Wilmington Trust Company, as Trustee,  and Continental
                  Airlines,  Inc. to Pass Through Trust  Agreement,  dated as of
                  September 25, 1997


<PAGE>

            4.10  Trust  Supplement  No.  2000-1A-2-O,  dated  March  15,  2000,
                  between Wilmington Trust Company, as Trustee,  and Continental
                  Airlines,  Inc. to Pass Through Trust  Agreement,  dated as of
                  September 25, 1997

            4.11  Trust  Supplement  No.  2000-1A-2-S,  dated  March  15,  2000,
                  between Wilmington Trust Company, as Trustee,  and Continental
                  Airlines,  Inc. to Pass Through Trust  Agreement,  dated as of
                  September 25, 1997

            4.12  Trust Supplement No. 2000-1B-O,  dated March 15, 2000, between
                  Wilmington   Trust  Company,   as  Trustee,   and  Continental
                  Airlines,  Inc. to Pass Through Trust  Agreement,  dated as of
                  September 25, 1997

            4.13  Trust Supplement No. 2000-1B-S,  dated March 15, 2000, between
                  Wilmington   Trust  Company,   as  Trustee,   and  Continental
                  Airlines,  Inc. to Pass Through Trust  Agreement,  dated as of
                  September 25, 1997

            4.14  Trust  Supplement  No.  2000-1C-1-O,  dated  March  15,  2000,
                  between Wilmington Trust Company, as Trustee,  and Continental
                  Airlines,  Inc. to Pass Through Trust  Agreement,  dated as of
                  September 25, 1997

            4.15  Trust  Supplement  No.  2000-1C-1-S,  dated  March  15,  2000,
                  between Wilmington Trust Company, as Trustee,  and Continental
                  Airlines,  Inc. to Pass Through Trust  Agreement,  dated as of
                  September 25, 1997

            4.16  Trust  Supplement  No.  2000-1C-2-O,  dated  March  15,  2000,
                  between Wilmington Trust Company, as Trustee,  and Continental
                  Airlines,  Inc. to Pass Through Trust  Agreement,  dated as of
                  September 25, 1997

            4.17  Trust  Supplement  No.  2000-1C-2-S,  dated  March  15,  2000,
                  between Wilmington Trust Company, as Trustee,  and Continental
                  Airlines,  Inc. to Pass Through Trust  Agreement,  dated as of
                  September 25, 1997

            4.18  Intercreditor  Agreement,  dated as of March 15,  2000,  among
                  Wilmington  Trust  Company,  as Trustee,  Credit  Suisse First
                  Boston,  New York  branch,  as Class A-1  Liquidity  Provider,
                  Class A-2 Liquidity  Provider and Class B Liquidity  Provider,
                  Morgan Stanley  Capital  Services Inc., as Class C-1 Liquidity
                  Provider  and Class C-2  Liquidity  Provider,  and  Wilmington
                  Trust Company, as Subordination Agent and Trustee

            4.19  Deposit  Agreement  (Class  A-1),  dated as of March 15, 2000,
                  between First Security Bank, National  Association,  as Escrow
                  Agent,  and Credit  Suisse First Boston,  New York branch,  as
                  Depositary

            4.20  Deposit  Agreement  (Class  A-2),  dated as of March 15, 2000,
                  between First Security Bank, National  Association,  as Escrow
                  Agent,  and Credit  Suisse First Boston,  New York branch,  as
                  Depositary


<PAGE>

            4.21  Deposit  Agreement  (Class  B),  dated as of March  15,  2000,
                  between First Security Bank, National  Association,  as Escrow
                  Agent,  and Credit  Suisse First Boston,  New York branch,  as
                  Depositary

            4.22  Deposit  Agreement  (Class  C-1),  dated as of March 15, 2000,
                  between First Security Bank, National  Association,  as Escrow
                  Agent,  and Credit  Suisse First Boston,  New York branch,  as
                  Depositary

            4.23  Deposit  Agreement  (Class  C-2),  dated as of March 15, 2000,
                  between First Security Bank, National  Association,  as Escrow
                  Agent,  and Credit  Suisse First Boston,  New York branch,  as
                  Depositary

            4.24  Escrow and Paying Agent  Agreement  (Class  A-1),  dated as of
                  March  15,  2000,   among  First   Security   Bank,   National
                  Association,  as Escrow  Agent,  Credit  Suisse  First  Boston
                  Corporation,   Morgan  Stanley  &  Co.   Incorporated,   Chase
                  Securities  Inc.,  Merrill  Lynch,  Pierce,   Fenner  &  Smith
                  Incorporated  and Salomon Smith Barney Inc., as  Underwriters,
                  Wilmington  Trust Company,  as Trustee,  and Wilmington  Trust
                  Company, as Paying Agent

            4.25  Escrow and Paying Agent  Agreement  (Class  A-2),  dated as of
                  March  15,  2000,   among  First   Security   Bank,   National
                  Association,  as Escrow  Agent,  Credit  Suisse  First  Boston
                  Corporation,   Morgan  Stanley  &  Co.   Incorporated,   Chase
                  Securities  Inc.,  Merrill  Lynch,  Pierce,   Fenner  &  Smith
                  Incorporated  and Salomon Smith Barney Inc., as  Underwriters,
                  Wilmington  Trust Company,  as Trustee,  and Wilmington  Trust
                  Company, as Paying Agent

            4.26  Escrow and Paying Agent Agreement (Class B), dated as of March
                  15, 2000, among First Security Bank, National Association,  as
                  Escrow Agent, Credit Suisse First Boston  Corporation,  Morgan
                  Stanley & Co.  Incorporated,  Chase Securities  Inc.,  Merrill
                  Lynch,  Pierce,  Fenner & Smith Incorporated and Salomon Smith
                  Barney Inc., as  Underwriters,  Wilmington  Trust Company,  as
                  Trustee, and Wilmington Trust Company, as Paying Agent

            4.27  Escrow and Paying Agent  Agreement  (Class  C-1),  dated as of
                  March  15,  2000,   among  First   Security   Bank,   National
                  Association,  as Escrow  Agent,  Credit  Suisse  First  Boston
                  Corporation,   Morgan  Stanley  &  Co.   Incorporated,   Chase
                  Securities  Inc.,  Merrill  Lynch,  Pierce,   Fenner  &  Smith
                  Incorporated  and Salomon Smith Barney Inc., as  Underwriters,
                  Wilmington  Trust Company,  as Trustee,  and Wilmington  Trust
                  Company, as Paying Agent

            4.28  Escrow and Paying Agent  Agreement  (Class  C-2),  dated as of
                  March  15,  2000,   among  First   Security   Bank,   National


<PAGE>

                  Association,  as Escrow  Agent,  Credit  Suisse  First  Boston
                  Corporation,   Morgan  Stanley  &  Co.   Incorporated,   Chase
                  Securities  Inc.,  Merrill  Lynch,  Pierce,   Fenner  &  Smith
                  Incorporated  and Salomon Smith Barney Inc., as  Underwriters,
                  Wilmington  Trust Company,  as Trustee,  and Wilmington  Trust
                  Company, as Paying Agent

            4.29  Note  Purchase  Agreement,  dated as of March 15, 2000,  among
                  Continental  Airlines,  Inc.,  Wilmington  Trust  Company,  as
                  Trustee,  Wilmington Trust Company,  as  Subordination  Agent,
                  First Security Bank,  National  Association,  as Escrow Agent,
                  and Wilmington Trust Company, as Paying Agent

            4.30  Form of Leased Aircraft Participation Agreement (Participation
                  Agreement   among   Continental   Airlines,    Inc.,   Lessee,
                  [______________],  Owner  Participant,  First  Security  Bank,
                  National Association, Owner Trustee, Wilmington Trust Company,
                  Mortgagee and Loan Participant)  (Exhibit A-1 to Note Purchase
                  Agreement)

            4.31  Form of Lease (Lease  Agreement  between First  Security Bank,
                  National Association,  Lessor, and Continental Airlines, Inc.,
                  Lessee) (Exhibit A-2 to Note Purchase Agreement)

            4.32  Form  of  Leased  Aircraft   Indenture  (Trust  Indenture  and
                  Mortgage  between First Security Bank,  National  Association,
                  Owner  Trustee,  and  Wilmington  Trust  Company,   Mortgagee)
                  (Exhibit A-3 to Note Purchase Agreement)

            4.33  Form of  Leased  Aircraft  Trust  Agreement  (Trust  Agreement
                  between   [________]  and  First   Security   Bank,   National
                  Association) (Exhibit A-5 to Note Purchase Agreement)

            4.34  Form  of  Special  Indenture  (Trust  Indenture  and  Mortgage
                  between  First  Security  Bank,  National  Association,  Owner
                  Trustee and Wilmington Trust Company,  Mortgagee) (Exhibit A-6
                  to Note Purchase Agreement)

            4.35  Form of Owned Aircraft Participation Agreement  (Participation
                  Agreement  among  Continental   Airlines,   Inc.,  Owner,  and
                  Wilmington Trust Company,  as Mortgagee,  Subordination  Agent
                  and Trustee) (Exhibit C-1 to Note Purchase Agreement)

            4.36  Form of Owned Aircraft Indenture (Trust Indenture and Mortgage
                  between  Continental  Airlines,  Inc.,  Owner,  and Wilmington
                  Trust  Company,  Mortgagee)  (Exhibit  C-2  to  Note  Purchase
                  Agreement)

            4.37  8.048%   Continental   Airlines   Pass   Through   Certificate
                  2000-1A-1-O, Certificate No. 1


<PAGE>

            4.38  7.918%   Continental   Airlines   Pass   Through   Certificate
                  2000-1A-2-O, Certificate No. 1

            4.39  8.388%   Continental   Airlines   Pass   Through   Certificate
                  2000-1B-O, Certificate No. 1

            4.40  8.499%   Continental   Airlines   Pass   Through   Certificate
                  2000-1C-1-O, Certificate No. 1

            4.41  8.321%   Continental   Airlines   Pass   Through   Certificate
                  2000-1C-2-O, Certificate No. 1

            23.1  Consent of Aircraft Information Services, Inc., dated February
                  25, 2000

            23.2  Consent of AvSOLUTIONS, Inc., dated February 25, 2000

            23.3  Consent of Morten Beyer and Agnew,  Inc.,  dated  February 25,
                  2000











                       CONTINENTAL AIRLINES, INC., ISSUER

                   Pass Through Certificates, Series 2000-1

                             UNDERWRITING AGREEMENT

                                                      March 1, 2000

Credit Suisse First Boston Corporation
Morgan Stanley & Co. Incorporated
Chase Securities Inc.
Merrill Lynch, Pierce, Fenner & Smith Incorporated
Salomon Smith Barney Inc.

c/o Credit Suisse First Boston Corporation
Eleven Madison Avenue
New York, New York  10010-3629

Dear Sirs:

            Continental Airlines,  Inc., a Delaware corporation (the "Company"),
proposes that  Wilmington  Trust Company,  as trustee under each of the Original
Trusts (as defined below) (each a "Trustee"), issue and sell to the underwriters
named in  Schedule  II hereto its pass  through  certificates  in the  aggregate
principal amounts and with the interest rates and final  distribution  dates set
forth on  Schedule  I hereto  (the  "Offered  Certificates")  on the  terms  and
conditions stated herein.

            The Offered  Certificates  will be issued pursuant to a Pass Through
Trust Agreement, dated as of September 25, 1997 (the "Basic Agreement"), between
the Company and the  Trustee,  as  supplemented  with respect to the issuance of
each class of Offered  Certificates by a separate Pass Through Trust  Supplement
to be  dated  as of the  Closing  Date  (as  defined  below)  (individually,
  an
"Original  Trust  Supplement"),  between the Company and the Trustee  (the Basic
Agreement as supplemented by each such Original Trust  Supplement being referred
to herein  individually  as an "Original  Pass Through  Trust  Agreement").  The
Original Trust  Supplements  are related to the creation and  administration  of
Continental  Airlines  Pass Through Trust  2000-1A-1-O  (the "Class A-1 Trust"),
Continental  Airlines  Pass Through Trust  2000-1A-2-O  (the "Class A-2 Trust"),
Continental  Airlines  Pass  Through  Trust,  2000-1B-O  (the  "Class B Trust"),
Continental  Airlines Pass Through Trust 2000-1C-1-O (the "Class C-1 Trust") and
Continental  Airlines  Pass Through  Trust  2000-1C-2-O  (the "Class C-2 Trust";
together  with the Class A-1 Trust,  the Class A-2 Trust,  the Class B Trust and
the Class C-1 Trust, the "Original Trusts").  As used herein, unless the context


<PAGE>

otherwise  requires,  the term  "Underwriters"  shall  mean the  firms  named as
Underwriters  in Schedule II, and the term "you" shall mean Credit  Suisse First
Boston Corporation ("CSFB") and Morgan Stanley & Co. Incorporated.

            The cash  proceeds of the offering of Offered  Certificates  by each
Original Trust,  to the extent not used to purchase  Equipment Notes (as defined
in the Note Purchase  Agreement (as defined below)) on the Closing Date, will be
paid to First Security Bank, N.A., as escrow agent (the "Escrow  Agent"),  under
an Escrow and Paying Agent Agreement among the Escrow Agent,  the  Underwriters,
the Trustee of such Original Trust and Wilmington Trust Company, as paying agent
(the  "Paying  Agent"),  for the benefit of the holders of Offered  Certificates
issued by such Original Trust (each,  an "Escrow  Agreement").  The Escrow Agent
will deposit such cash  proceeds  (each,  a "Deposit")  with Credit Suisse First
Boston,  New York  branch  (the  "Depositary"),  in  accordance  with a  Deposit
Agreement  relating to such Original  Trust (each, a "Deposit  Agreement"),  and
will withdraw  Deposits upon request to allow the Trustee to purchase  Equipment
Notes from time to time pursuant to a Note Purchase  Agreement to be dated as of
the Closing Date (the "Note Purchase  Agreement") among the Company,  Wilmington
Trust Company, as Trustee of each of the Original Trusts, as Subordination Agent
(as hereinafter  defined) and as Paying Agent, and the Escrow Agent. Each Escrow
Agent will issue  receipts to be attached to each  related  Offered  Certificate
("Escrow Receipts")  representing each holder's fractional undivided interest in
amounts  deposited  with such Escrow Agent with respect to the related  class of
Certificates  and will pay to such  holders  through  the related  Paying  Agent
interest  accrued on the Deposits and received by such Paying Agent  pursuant to
the related  Deposit  Agreement at a rate per annum equal to the  interest  rate
applicable to the corresponding Offered Certificates.

            On the earlier of (i) the first  Business  Day  following  March 31,
2001 or,  if  later,  the fifth  Business  Day  following  the  Delivery  Period
Termination Date (as defined in the Note Purchase  Agreement) and (ii) the fifth
Business Day following the  occurrence of a Triggering  Event (as defined in the
Intercreditor Agreement) (such Business Day, the "Trust Transfer Date"), each of
the Original  Trusts will  transfer and assign all of its assets and rights to a
newly-created  successor  trust with  substantially  identical  terms  except as
described  in the  Prospectus  Supplement  (as  hereinafter  defined)  (each,  a
"Successor Trust" and, together with the Original Trusts, the "Trusts") governed
by the Basic Agreement,  as supplemented  with respect to each series of Offered
Certificates  by a separate  Pass  Through  Trust  Supplement  (individually,  a
"Successor  Trust  Supplement"),  between the Company and the Trustee (the Basic
Agreement,  as  supplemented  by each such  Successor  Trust  Supplement,  being
referred to herein  individually as a "Successor  Pass Through Trust  Agreement"
and, together with the Original Pass Through Trust  Agreements,  the "Designated
Agreements").  Each Offered  Certificate  outstanding on the Trust Transfer Date
will  represent  the  same  interest  in the  Successor  Trust  as  the  Offered
Certificate   represented  in  the  Original  Trust.  Wilmington  Trust  Company
initially  will also act as trustee of the Successor  Trusts (each, a "Successor
Trustee").

            Certain amounts of interest payable on the Offered Certificates will
be entitled to the  benefits of separate  liquidity  facilities.  Credit  Suisse
First  Boston,  New York branch  (the "Class A and Class B Liquidity  Provider")


<PAGE>

will enter into separate  revolving credit  agreements with respect to the Class
A-1 Trust, the Class A-2 Trust and the Class B Trust, and Morgan Stanley Capital
Services Inc. (the "Class C Liquidity  Provider" and,  together with the Class A
and Class B  Liquidity  Provider,  the  "Liquidity  Providers")  will enter into
separate revolving credit agreements with respect to the Class C-1 Trust and the
Class C-2 Trust (the revolving  credit  agreements with respect to the Class A-1
Trust, the Class A-2 Trust, the Class B Trust, the Class C-1 Trust and the Class
C-2  Trust,  collectively,  the  "Liquidity  Facilities")  to be dated as of the
Closing Date for the benefit of the holders of the Offered  Certificates  issued
by such Original Trusts. The Liquidity  Providers and the holders of the Offered
Certificates  will be entitled to the benefits of an Intercreditor  Agreement to
be dated as of the  Closing  Date  (the  "Intercreditor  Agreement")  among  the
Trustees,   Wilmington  Trust  Company,   as  subordination  agent  and  trustee
thereunder (the "Subordination Agent"), and the Liquidity Providers.

            The Company has filed with the  Securities  and Exchange  Commission
(the  "Commission")  a shelf  registration  statement  on  Form  S-3  (File  No.
333-91765)  relating to pass through  certificates (such registration  statement
(including the respective exhibits thereto and the respective documents filed by
the Company with the Commission pursuant to the Securities Exchange Act of 1934,
as  amended,  and  the  rules  and  regulations  of  the  Commission  thereunder
(collectively, the "Exchange Act"), that are incorporated by reference therein),
as amended at the date  hereof,  being herein  referred to as the  "Registration
Statement")  and the offering  thereof from time to time in accordance with Rule
415 of the Securities Act of 1933, as amended,  and the rules and regulations of
the Commission thereunder (collectively, the "Securities Act"). The Registration
Statement  has been declared  effective by the  Commission.  A final  prospectus
supplement  reflecting the terms of the Offered  Certificates,  the terms of the
offering  thereof and other  matters  relating to the Offered  Certificates,  as
further  specified in Section 4(d) hereof,  will be prepared and filed  together
with the  basic  prospectus  referred  to below  pursuant  to Rule 424 under the
Securities Act (such prospectus supplement,  in the form first filed on or after
the  date  hereof  pursuant  to  Rule  424,  being  herein  referred  to as  the
"Prospectus  Supplement" and any such prospectus supplement in the form or forms
filed prior to the filing of the Prospectus  Supplement being herein referred to
as a "Preliminary Prospectus Supplement").  The basic prospectus included in the
Registration   Statement   and  relating  to  all   offerings  of  pass  through
certificates under the Registration Statement, as supplemented by the Prospectus
Supplement,  and including the documents  incorporated by reference therein,  is
herein called the "Prospectus", except that, if such basic prospectus is amended
or  supplemented  on or prior to the date on which the Prospectus  Supplement is
first filed  pursuant  to Rule 424,  the term  "Prospectus"  shall refer to such
basic  prospectus  as so  amended or  supplemented  and as  supplemented  by the
Prospectus  Supplement.  For the avoidance of doubt, it is understood and agreed
that documents filed under the Exchange Act with the Commission prior to January
1,  2000 are not a part of the  Prospectus  or the  Prospectus  Supplement.  Any
reference  herein to the terms  "amendment" or "supplement"  with respect to the
Prospectus or any Preliminary  Prospectus Supplement shall be deemed to refer to
and include any documents filed with the Commission under the Exchange Act after
the  date the  Prospectus  is filed  with  the  Commission,  or the date of such
Preliminary Prospectus Supplement,  as the case may be, and incorporated therein
by reference pursuant to Item 12 of Form S-3 under the Securities Act.



<PAGE>

            Capitalized terms not otherwise defined in this Agreement shall have
the meanings  specified  therefor in the Original Pass Through Trust Agreements,
in the Note Purchase Agreement or in the Intercreditor Agreement; PROVIDED that,
as used in this  Agreement,  the  term  "Operative  Agreements"  shall  mean the
Deposit  Agreements,  the Escrow Agreements,  the Intercreditor  Agreement,  the
Liquidity Facilities,  the Guarantee Agreements,  the Designated Agreements, the
Assignment and Assumption  Agreements,  and the Financing Agreements (as defined
in the Note Purchase Agreement).

            1.  REPRESENTATIONS  AND WARRANTIES.  (a) The Company represents and
warrants to, and agrees with each Underwriter that:

            (i) The Company meets the requirements for use of Form S-3 under the
      Securities Act; the Registration  Statement has become effective;  and, on
      the  original   effective  date  of  the   Registration   Statement,   the
      Registration   Statement  complied  in  all  material  respects  with  the
      requirements of the Securities Act. On the original  effective date of the
      Registration  Statement,  the  Registration  Statement did not include any
      untrue  statement of a material  fact or omit to state any  material  fact
      required to be stated therein or necessary to make the statements  therein
      not  misleading,  and on the date  hereof  and on the  Closing  Date,  the
      Prospectus,  as  amended  and  supplemented,  if the  Company  shall  have
      furnished  any  amendment  or  supplement  thereto,  does not and will not
      include an untrue  statement of a material  fact and does not and will not
      omit to state a material  fact  necessary in order to make the  statements
      therein, in the light of the circumstances under which they were made, not
      misleading.  The preceding sentence does not apply to (x) statements in or
      omissions from the Registration  Statement,  the Preliminary Prospectus or
      the Prospectus based upon (A) written information furnished to the Company
      by any  Underwriter  through  either  of you  expressly  for  use  therein
      ("Underwriter   Information")  or  (B)  the  Depositary   Information  (as
      hereinafter  defined) or (y)  statements or omissions in that part of each
      Registration Statement which shall constitute the Statement of Eligibility
      of the Trustee  under the Trust  Indenture  Act of 1939,  as amended  (the
      "Trust Indenture Act"), on Form T-1.

            (ii) The  documents  incorporated  by  reference  in the  Prospectus
      pursuant to Item 12 of Form S-3 under the Securities Act, at the time they
      were or hereafter,  during the period  mentioned in paragraph  4(a) below,
      are filed with the  Commission,  complied  and will comply in all material
      respects with the requirements of the Exchange Act.

            (iii) The  Company  has been duly  incorporated  and is an  existing
      corporation in good standing under the laws of the State of Delaware, with
      corporate  power and authority to own,  lease and operate its property and
      to conduct its business as described in the Prospectus; and the Company is
      duly qualified to do business as a foreign corporation in good standing in
      all other jurisdictions in which its ownership or lease of property or the
      conduct of its  business  requires  such  qualification,  except where the
      failure to be so qualified would not have a material adverse effect on the
      condition  (financial or  otherwise),  business,  properties or results of
      operations  of the Company and its  consolidated  subsidiaries  taken as a
      whole (a "Continental Material Adverse Effect").



<PAGE>

            (iv) Each of Continental  Micronesia,  Inc., Air Micronesia Inc. and
      Continental  Express,  Inc.  (together,  the "Subsidiaries") has been duly
      incorporated  and is an existing  corporation  in good standing  under the
      laws of the  jurisdiction of its  incorporation,  with corporate power and
      authority  to own,  lease and  operate its  properties  and to conduct its
      business as  described  in the  Prospectus;  and each  Subsidiary  is duly
      qualified to do business as a foreign  corporation in good standing in all
      other  jurisdictions  in which its  ownership  or lease of property or the
      conduct of its  business  requires  such  qualification,  except where the
      failure to be so qualified would not have a Continental  Material  Adverse
      Effect; all of the issued and outstanding capital stock of each Subsidiary
      has  been  duly  authorized  and  validly  issued  and is  fully  paid and
      nonassessable;   and,  except  as  described  in  the   Prospectus,   each
      Subsidiary's  capital  stock  owned by the  Company,  directly  or through
      subsidiaries, is owned free from liens, encumbrances and defects.

            (v) Except as  described  in the  Prospectus,  the Company is not in
      default in the  performance  or observance of any  obligation,  agreement,
      covenant or condition contained in any contract, indenture, mortgage, loan
      agreement,  note,  lease or other  instrument to which it is a party or by
      which it may be bound or to which any of its  properties  may be  subject,
      except  for such  defaults  that  would  not have a  Continental  Material
      Adverse Effect. The execution,  delivery and performance of this Agreement
      and the  Operative  Agreements  to which the Company is or will be a party
      and the consummation of the transactions  contemplated  herein and therein
      have been duly authorized by all necessary corporate action of the Company
      and will not  result in any  breach  of any of the  terms,  conditions  or
      provisions of, or constitute a default under, or result in the creation or
      imposition of any lien, charge or encumbrance (other than any lien, charge
      or encumbrance created under any Operative Agreement) upon any property or
      assets of the Company pursuant to any indenture, loan agreement, contract,
      mortgage,  note, lease or other instrument to which the Company is a party
      or by which the  Company  may be bound or to which any of the  property or
      assets of the Company is subject,  which breach,  default, lien, charge or
      encumbrance,  individually  or in the aggregate,  would have a Continental
      Material  Adverse  Effect,  nor  will  any  such  execution,  delivery  or
      performance  result in any  violation of the  provisions of the charter or
      by-laws of the Company or any statute,  any rule,  regulation  or order of
      any governmental  agency or body or any court having jurisdiction over the
      Company.

            (vi) No  consent,  approval,  authorization,  or order of, or filing
      with,  any  governmental  agency or body or any court is required  for the
      valid  authorization,  execution  and  delivery  by the  Company  of  this
      Agreement and the  Operative  Agreements to which it is or will be a party
      and for the  consummation  of the  transactions  contemplated  herein  and
      therein,  except (y) such as may be required under the Securities Act, the
      Trust  Indenture  Act, the securities or "blue sky" or similar laws of the
      various states and of foreign  jurisdictions  or rules and  regulations of
      the National  Association of Securities Dealers,  Inc., and (z) filings or
      recordings with the Federal Aviation  Administration (the "FAA") and under
      the  Uniform  Commercial  Code as is in effect in the State of Texas,  the
      State of  Delaware  and the State of Utah,  which  filings  or  recordings
      referred to in this  clause (z),  with  respect to any  particular  set of


<PAGE>

      Financing  Agreements,  shall have been made, or duly presented for filing
      or  recordation,  or shall be in the  process of being duly filed or filed
      for  recordation,  on or  prior  to the  applicable  Funding  Date for the
      Aircraft related to such Financing Agreements.

            (vii)  This  Agreement  has  been  duly  authorized,   executed  and
      delivered by the Company and the Operative Agreements to which the Company
      will be a party will be duly  executed and  delivered by the Company on or
      prior to the Closing Date or the applicable  Funding Date, as the case may
      be.

            (viii) The Operative Agreements to which the Company is or will be a
      party, when duly executed and delivered by the Company, assuming that such
      Operative Agreements have been duly authorized, executed and delivered by,
      and constitute  the legal,  valid and binding  obligations  of, each other
      party  thereto,  will  constitute  valid and  binding  obligations  of the
      Company  enforceable  in  accordance  with  their  terms,  except  (w)  as
      enforcement thereof may be limited by bankruptcy,  insolvency  (including,
      without   limitation,   all  laws  relating  to   fraudulent   transfers),
      reorganization,  moratorium  or other  similar  laws now or  hereafter  in
      effect relating to creditors' rights generally, (x) as enforcement thereof
      is  subject  to  general  principles  of  equity  (regardless  of  whether
      enforcement  is considered in a proceeding in equity or at law),  (y) that
      the  enforceability  of the Leases may also be limited by applicable  laws
      which may affect the remedies provided therein but which do not affect the
      validity of the Leases or make such remedies  inadequate for the practical
      realization of the benefits  intended to be provided  thereby and (z) with
      respect to  indemnification  and contribution  provisions,  as enforcement
      thereof may be limited by applicable law, and subject,  in the case of the
      Successor  Pass Through  Trust  Agreements,  to the delayed  effectiveness
      thereof  as  set  forth  therein.  The  Basic  Agreement  as  executed  is
      substantially  in the form filed as an exhibit  to the  Company's  current
      report on Form 8-K dated  September  25, 1997 and has been duly  qualified
      under the Trust Indenture Act. The Offered Certificates and the Designated
      Agreements  to which the Company is, or is to be, a party will  conform in
      all material respects to the descriptions thereof in the Prospectus.

            (ix) The consolidated financial statements incorporated by reference
      in the Prospectus, together with the related notes thereto, present fairly
      in all  material  respects the  financial  position of the Company and its
      consolidated  subsidiaries  at the dates  indicated  and the  consolidated
      results of operations  and cash flows of the Company and its  consolidated
      subsidiaries  for the periods  specified.  Such financial  statements have
      been prepared in conformity with generally accepted accounting  principles
      applied on a consistent basis throughout the periods  involved,  except as
      otherwise   stated  therein  and  except  that  the  unaudited   financial
      statements do not have all required  footnotes.  The  financial  statement
      schedules, if any, incorporated by reference in the Prospectus present the
      information required to be stated therein.

            (x) The  Company is a  "citizen  of the  United  States"  within the
      meaning of Section  40102(a)(15) of Title 49 of the United States Code, as
      amended,  holding  an air  carrier  operating  certificate  issued  by the
      Secretary  of  Transportation  pursuant  to Chapter 447 of Title 49 of the


<PAGE>

      United  States Code,  as amended,  for aircraft  capable of carrying 10 or
      more  individuals or 6,000 pounds or more of cargo. All of the outstanding
      shares of  capital  stock of the  Company  have been duly  authorized  and
      validly issued and are fully paid and non-assessable.

            (xi) On or prior to the Closing  Date,  the  issuance of the Offered
      Certificates  will be duly authorized by the Trustee.  When duly executed,
      authenticated,  issued and  delivered  in the manner  provided  for in the
      Original Pass Through Trust  Agreements  and sold and paid for as provided
      in this Agreement,  the Offered  Certificates  will be legally and validly
      issued and will be entitled to the benefits of the relevant  Original Pass
      Through Trust Agreements; based on applicable law as in effect on the date
      hereof,  upon the execution and delivery of the  Assignment and Assumption
      Agreements in accordance with the Original Pass Through Trust  Agreements,
      the Offered Certificates will be legally and validly outstanding under the
      related  Successor  Pass  Through  Trust  Agreements;  and when  executed,
      authenticated,  issued and  delivered  in the manner  provided  for in the
      Escrow Agreements,  the Escrow Receipts will be legally and validly issued
      and will be entitled to the benefits of the related Escrow Agreements.

            (xii)  Except as disclosed  in the  Prospectus,  the Company and the
      Subsidiaries have good and marketable title to all real properties and all
      other  properties  and assets owned by them, in each case free from liens,
      encumbrances and defects except where the failure to have such title would
      not have a Continental Material Adverse Effect; and except as disclosed in
      the Prospectus,  the Company and the Subsidiaries  hold any leased real or
      personal  property under valid and  enforceable  leases with no exceptions
      that would have a Continental Material Adverse Effect.

            (xiii)  Except as disclosed in the  Prospectus,  there is no action,
      suit or proceeding before or by any governmental  agency or body or court,
      domestic or foreign,  now pending  or, to the  knowledge  of the  Company,
      threatened  against the Company or any of its subsidiaries or any of their
      respective  properties that  individually (or in the aggregate in the case
      of any class of related lawsuits),  could reasonably be expected to result
      in a  Continental  Material  Adverse  Effect or that could  reasonably  be
      expected  to  materially  and  adversely  affect the  consummation  of the
      transactions contemplated by this Agreement or the Operative Agreements.

            (xiv) Except as disclosed in the  Prospectus,  no labor dispute with
      the employees of the Company or any subsidiary exists or, to the knowledge
      of the Company,  is imminent  that could  reasonably be expected to have a
      Continental Material Adverse Effect.

            (xv) Each of the  Company  and the  Subsidiaries  has all  necessary
      consents,  authorizations,  approvals, orders, certificates and permits of
      and from,  and has made all  declarations  and filings with,  all federal,
      state,  local  and other  governmental  authorities,  all  self-regulatory
      organizations and all courts and other tribunals,  to own, lease,  license
      and use its  properties  and  assets and to conduct  its  business  in the
      manner described in the Prospectus,  except to the extent that the failure


<PAGE>

      to so  obtain,  declare  or file  would  not have a  Continental  Material
      Adverse Effect.

            (xvi) Except as disclosed in the Prospectus, (x) neither the Company
      nor  any  of the  Subsidiaries  is in  violation  of  any  statute,  rule,
      regulation,  decision or order of any  governmental  agency or body or any
      court,  domestic or foreign,  relating to the use,  disposal or release of
      hazardous or toxic substances  (collectively,  "environmental laws"), owns
      or operates any real  property  contaminated  with any  substance  that is
      subject to any environmental  laws, or is subject to any claim relating to
      any environmental laws, which violation, contamination, liability or claim
      individually  or in  the  aggregate  is  reasonably  expected  to  have  a
      Continental  Material Adverse Effect,  and (y) the Company is not aware of
      any  pending  investigation  which  might  lead to  such a  claim  that is
      reasonably expected to have a Continental Material Adverse Effect.

            (xvii) The accountants  that examined and issued an auditors' report
      with respect to the consolidated  financial  statements of the Company and
      the financial  statement  schedules,  if any,  included or incorporated by
      reference in the Registration Statement are independent public accountants
      within the meaning of the Securities Act.

            (xviii)  Neither the Company nor any of the Original  Trusts is, nor
      (based on applicable  law as in effect on the date hereof) will any of the
      Successor  Trusts be, as of the execution  and delivery of the  Assignment
      and  Assumption  Agreements in  accordance  with the Original Pass Through
      Trust Agreements, an "investment company", or an entity "controlled" by an
      "investment company",  within the meaning of the Investment Company Act of
      1940, as amended (the "Investment  Company Act"), in each case required to
      register under the Investment  Company Act; and after giving effect to the
      offering and sale of the Offered  Certificates  and the application of the
      proceeds  thereof as  described  in the  Prospectus,  neither the Original
      Trusts  will be,  nor  (based on  applicable  law as in effect on the date
      hereof)  will any of the  Successor  Trusts  be, as of the  execution  and
      delivery of the Assignment and  Assumption  Agreements in accordance  with
      the  Original  Pass  Through  Trust   Agreements,   nor  will  the  escrow
      arrangements  contemplated by the Escrow  Agreement result in the creation
      of, an "investment  company",  or an entity "controlled" by an "investment
      company",  as defined in the Investment Company Act, in each case required
      to register under the Investment Company Act.

            (xix) This Agreement and the other Operative Agreements to which the
      Company is or will be a party will,  upon execution and delivery  thereof,
      conform in all material respects to the descriptions  thereof contained in
      the Prospectus  (other than, in the case of the Financing  Agreements,  as
      described in the Prospectus).

            (xx)  No  Appraiser  is an  affiliate  of  the  Company  or,  to the
      knowledge of the Company, has a substantial interest,  direct or indirect,
      in the Company. To the knowledge of the Company,  none of the officers and
      directors of any of such  Appraisers are connected with the Company or any


<PAGE>

      of its affiliates as an officer, employee, promoter, underwriter, trustee,
      partner, director or person performing similar functions.

            (b) The Depositary represents and warrants to, and agrees with, each
Underwriter and the Company that:

            (i) The information pertaining to the Depositary set forth under the
      caption   "Description   of  the   Deposit   Agreements   --   Depositary"
      (collectively, the "Depositary Information") in the Prospectus, as amended
      and  supplemented,  if the Company  shall have  furnished any amendment or
      supplement thereto, does not, and will not as of the Closing Date, contain
      any untrue statement of a material fact.

            (ii) The Depositary has been duly organized and is validly  existing
      in good standing  under the laws of  Switzerland  and is duly qualified to
      conduct  banking  business  in the State of New York  through its New York
      branch,  with corporate  power and authority to own, lease and operate its
      property,   to  conduct  its  business  as  described  in  the  Depositary
      Information  and to enter  into and  perform  its  obligations  under this
      Agreement and the Deposit Agreements.

            (iii) No consent,  approval,  authorization,  or order of, or filing
      with any  governmental  agency  or body or any court is  required  for the
      valid  authorization,  execution  and delivery by the  Depositary  of this
      Agreement  and the  Deposit  Agreements  and for the  consummation  of the
      transactions contemplated herein and therein, except such as may have been
      obtained.

            (iv) The execution and delivery by the  Depositary of this Agreement
      and the  Deposit  Agreements  and  the  consummation  of the  transactions
      contemplated   herein  and  therein  have  been  duly  authorized  by  the
      Depositary and will not violate any law,  governmental  rule or regulation
      or any of its organizational  documents or any order, writ,  injunction or
      decree of any court or governmental agency against it or the provisions of
      any indenture, loan agreement, contract or other instrument to which it is
      a party or is bound.

            (v) This  Agreement  has been duly  executed  and  delivered  by the
      Depositary, and the Deposit Agreements will be duly executed and delivered
      by the Depositary on or prior to the Closing Date.

            (vi) The Deposit Agreements, when duly executed and delivered by the
      Depositary,   assuming  that  such  Deposit   Agreements  have  been  duly
      authorized, executed and delivered by, and constitute the legal, valid and
      binding obligations of, the Escrow Agent, will constitute the legal, valid
      and binding  obligations of the Depositary  enforceable in accordance with
      their  terms,  except  (x)  as  enforcement  thereof  may  be  limited  by
      bankruptcy,  insolvency (including,  without limitation, all laws relating
      to fraudulent transfers), reorganization, moratorium or other similar laws
      now or hereinafter in effect relating to creditors'  rights  generally and
      (y) as  enforcement  thereof is subject  to general  principles  of equity


<PAGE>

      (regardless of whether enforcement is considered in a proceeding in equity
      or at law).

            (vii)  Payments of interest and principal in respect of the Deposits
      are not subject under the laws of Switzerland or any political subdivision
      thereof to any withholdings or similar charges or deductions.

            (c)  The  parties  agree  that  any  certificate  signed  by a  duly
authorized officer of the Company and delivered to an Underwriter, or to counsel
for the Underwriters,  on the Closing Date and in connection with this Agreement
or the offering of the Offered  Certificates,  shall be deemed a  representation
and warranty by (and only by) the Company to the  Underwriters as to the matters
covered thereby.

            2. PURCHASE,  SALE AND DELIVERY OF OFFERED CERTIFICATES.  (a) On the
basis of the  representations,  warranties and agreements herein contained,  but
subject to the terms and the conditions  herein set forth, the Company agrees to
cause the Trustees to sell to each  Underwriter,  and each  Underwriter  agrees,
severally and not jointly, to purchase from the Trustees, at a purchase price of
100% of the principal amount thereof,  the aggregate principal amount of Offered
Certificates of each Pass Through Certificate Designation set forth opposite the
name of such Underwriter in Schedule II.  Concurrently  with the issuance of the
Offered Certificates,  the Escrow Agents shall issue and deliver to the Trustees
the Escrow Receipts in accordance with the terms of the Escrow Agreements, which
Escrow Receipts shall be attached to the related Offered Certificates.

            (b) The Company is advised by you that the  Underwriters  propose to
make a  public  offering  of  the  Offered  Certificates  as  set  forth  in the
Prospectus  Supplement as soon after this  Agreement has been entered into as in
your  judgment  is  advisable.  The  Company is further  advised by you that the
Offered  Certificates are to be offered to the public initially at 100% of their
principal amount -- the public offering price -- plus accrued interest,  if any,
and to certain dealers selected by the Underwriters at concessions not in excess
of the concessions set forth in the Prospectus,  and that the  Underwriters  may
allow,  and  such  dealers  may  reallow,  concessions  not  in  excess  of  the
concessions set forth in the Prospectus to certain other dealers.

            (c)  As  underwriting  commission  and  other  compensation  to  the
Underwriters  for their  respective  commitments  and  obligations  hereunder in
respect of the Offered Certificates,  including their respective undertakings to
distribute  the  Offered  Certificates,  the  Company  will  pay to CSFB for the
accounts of the Underwriters the amount set forth in Schedule III hereto,  which
amount shall be allocated  among the  Underwriters  in the manner  determined by
you.  Such  payment  will be made on the Closing  Date  simultaneously  with the
issuance and sale of the Offered Certificates (with attached Escrow Receipts) to
the Underwriters.  Payment of such  compensation  shall be made by Federal funds
check or other immediately available funds.

            (d)  Delivery  of and payment  for the  Offered  Certificates  (with
attached Escrow  Receipts) shall be made at the offices of Hughes Hubbard & Reed
LLP at One Battery Park Plaza,  New York,  New York 10004 at 10:00 A.M. on March
15, 2000 or such other date, time and place as may be agreed upon by the Company


<PAGE>

and you (such date and time of delivery and payment for the Offered Certificates
(with  attached  Escrow  Receipts)  being  herein  called the  "Closing  Date").
Delivery of the Offered  Certificates  (with attached Escrow Receipts) issued by
each  Original  Trust shall be made to CSFB's  account at The  Depository  Trust
Company ("DTC") for the respective accounts of the several  Underwriters against
payment by the  Underwriters  of the  purchase  price  thereof.  Payment for the
Offered  Certificates  issued  by each  Original  Trust and the  related  Escrow
Receipts  attached thereto shall be made by the Underwriters by wire transfer of
immediately  available funds to the accounts and in the manner  specified in the
related Escrow  Agreements  (PROVIDED,  that if the Company  notifies you that a
Delivery Date is occurring on the Closing Date, a portion of such payment in the
amount  specified by the Company shall be paid to the accounts and in the manner
specified  in the related  Participation  Agreement).  The Offered  Certificates
(with attached  Escrow  Receipts)  issued by each Original Trust shall be in the
form of one or more fully registered global certificates, and shall be deposited
with the related Trustee as custodian for DTC and registered in the name of Cede
& Co.

            (e) The  Company  agrees  to have  the  Offered  Certificates  (with
attached  Escrow  Receipts)  available for inspection and checking by you in New
York, New York not later than 1:00 P.M. on the business day prior to the Closing
Date.

            (f) It is understood  that each  Underwriter  has authorized you, on
its behalf and for its account,  to accept  delivery  of,  receipt for, and make
payment of the  purchase  price for,  the Offered  Certificates  (with  attached
Escrow  Receipts) that it has agreed to purchase.  You,  individually and not as
representatives,  may  (but  shall  not be  obligated  to) make  payment  of the
purchase price for the Offered  Certificates  to be purchased by any Underwriter
whose check or checks shall not have been received by the Closing Date.

            3. CONDITIONS OF UNDERWRITERS' OBLIGATIONS.  The several obligations
of the Underwriters to purchase and pay for the Offered Certificates pursuant to
this Agreement are subject to the following conditions:

            (a) On the Closing Date, no stop order suspending the  effectiveness
      of the Registration  Statement shall have been issued under the Securities
      Act and no proceedings  therefor shall have been  instituted or threatened
      by the Commission.

            (b) On the  Closing  Date,  you shall  have  received  an opinion of
      Hughes  Hubbard & Reed LLP, as counsel for the Company,  dated the Closing
      Date,  in  form  and  substance   reasonably   satisfactory   to  you  and
      substantially to the effect set forth in Exhibit A hereto.

            (c) On the Closing  Date,  you shall have received an opinion of the
      General  Counsel  of the  Company,  dated the  Closing  Date,  in form and
      substance  reasonably  satisfactory to you and substantially to the effect
      set forth in Exhibit B hereto.

            (d) On the  Closing  Date,  you shall  have  received  an opinion of
      Richards,   Layton  &  Finger,   counsel  for  Wilmington  Trust  Company,
      individually and as Trustee,  Subordination  Agent and Paying Agent, dated


<PAGE>

      the Closing Date, in form and substance reasonably satisfactory to you and
      substantially to the effect set forth in Exhibit C hereto.

            (e) On the Closing Date,  you shall have received an opinion of Ray,
      Quinney & Nebeker,  counsel for the Escrow Agent,  dated the Closing Date,
      in form and substance reasonably  satisfactory to you and substantially to
      the effect set forth in Exhibit D hereto.

            (f) On the  Closing  Date,  you shall  have  received  an opinion of
      Gabriella  Morizio,  New York in-house counsel for the Class A and Class B
      Liquidity  Provider,  dated  the  Closing  Date,  in  form  and  substance
      reasonably  satisfactory to you and  substantially to the effect set forth
      in Exhibit E hereto.

            (g) On the  Closing  Date,  you shall  have  received  an opinion of
      Giovanni  Peditto,  Swiss  in-house  counsel  for the  Class A and Class B
      Liquidity  Provider,  dated  the  Closing  Date,  in  form  and  substance
      reasonably  satisfactory to you and  substantially to the effect set forth
      in Exhibit F hereto.

            (h) On the Closing  Date,  you shall have received an opinion of New
      York  in-house  counsel  for  the  Class  C  Liquidity  Provider  and  the
      Guarantor,  dated  the  Closing  Date,  in form and  substance  reasonably
      satisfactory to you and substantially to the effect set forth in Exhibit G
      hereto.

            (i) On the  Closing  Date,  you shall  have  received  an opinion of
      Shearman & Sterling,  special  New York  counsel for the Class C Liquidity
      Provider and the Guarantor,  dated the Closing Date, in form and substance
      reasonably  satisfactory to you and  substantially to the effect set forth
      in Exhibit H hereto.

            (j) On the  Closing  Date,  you shall  have  received  an opinion of
      Gabriella Morizio, New York in-house counsel for the Depositary, dated the
      Closing  Date, in form and substance  reasonably  satisfactory  to you and
      substantially to the effect set forth in Exhibit I hereto.

            (k) On the  Closing  Date,  you shall  have  received  an opinion of
      Giovanni  Peditto,  Swiss in-house  counsel for the Depositary,  dated the
      Closing  Date, in form and substance  reasonably  satisfactory  to you and
      substantially to the effect set forth in Exhibit J hereto.

            (l) On the  Closing  Date,  you shall  have  received  an opinion of
      Milbank, Tweed, Hadley & McCloy LLP as counsel for the Underwriters, dated
      as of the  Closing  Date,  with  respect to the  issuance  and sale of the
      Offered Certificates, the Registration Statement, the Prospectus and other
      related matters as the Underwriters may reasonably require.

            (m)  Subsequent  to the  execution  and delivery of this  Agreement,
      there shall not have  occurred  any change,  or any  development  or event
      involving a prospective  change,  in the  condition  (financial or other),
      business,  properties  or results of  operations  of the  Company  and its


<PAGE>

      subsidiaries  considered  as one  enterprise  that, in your  judgment,  is
      material and adverse and that makes it, in your judgment, impracticable to
      proceed  with  the  completion  of the  public  offering  of  the  Offered
      Certificates  on  the  terms  and  in  the  manner   contemplated  by  the
      Prospectus.

            (n) You shall have received on the Closing Date a certificate, dated
      the Closing Date and signed by the President or any Vice  President of the
      Company,  to the effect that the  representations  and  warranties  of the
      Company contained in this Agreement are true and correct as of the Closing
      Date as if made on the Closing Date (except to the extent that they relate
      solely to an earlier  date,  in which case they shall be true and accurate
      as of  such  earlier  date),  that  the  Company  has  performed  all  its
      obligations to be performed  hereunder on or prior to the Closing Date and
      that,  subsequent to the execution and delivery of this  Agreement,  there
      shall not have occurred any material adverse change, or any development or
      event involving a prospective  material  adverse change,  in the condition
      (financial or other), business, properties or results of operations of the
      Company and its subsidiaries  considered as one enterprise,  except as set
      forth in or contemplated by the Prospectus.

            (o) You shall have  received  from Ernst & Young LLP a letter  dated
      the date hereof, in form and substance satisfactory to you.

            (p)  Subsequent to the execution and delivery of this  Agreement and
      prior to the Closing Date,  there shall not have been any  downgrading  in
      the rating accorded any of the Company's  securities  (except for any pass
      through  certificates) by any "nationally  recognized  statistical  rating
      organization",  as such term is defined  for  purposes  of Rule  436(g)(2)
      under  the  Securities  Act,  or any  public  announcement  that  any such
      organization has under  surveillance or review,  in each case for possible
      change,  its  ratings  of any such  securities  other  than  pass  through
      certificates  (other than an announcement with positive  implications of a
      possible upgrading, and no implication of a possible downgrading,  of such
      rating).

            (q) Each of the Appraisers  shall have furnished to the Underwriters
      a letter  from such  Appraiser,  addressed  to the  Company  and dated the
      Closing Date, confirming that such Appraiser and each of its directors and
      officers (i) is not an affiliate of the Company or any of its  affiliates,
      (ii) does not have any substantial  interest,  direct or indirect,  in the
      Company  or any of its  affiliates  and  (iii) is not  connected  with the
      Company  or any of  its  affiliates  as an  officer,  employee,  promoter,
      underwriter,  trustee,  partner,  director  or person  performing  similar
      functions.

            (r) At the Closing  Date,  each of the Operative  Agreements  (other
      than  the  Assignment   and   Assumption   Agreements  and  the  Financing
      Agreements)  shall have been duly  executed  and  delivered by each of the
      parties  thereto;  and the  representations  and warranties of the Company
      contained in each of such executed Operative  Agreements shall be true and
      correct as of the  Closing  Date  (except to the extent  that they  relate
      solely to an earlier date, in which case they shall be true and correct as
      of  such  earlier  date)  and  the  Underwriters  shall  have  received  a


<PAGE>

      certificate of the President or a Vice President of the Company,  dated as
      of the Closing Date, to such effect.

            (s) On the Closing Date, the Offered Certificates shall be rated (x)
      not lower than "AA+", in the case of the Offered Certificates of the Class
      A-1 Trust,  not lower than "AA+",  in the case of Offered  Certificates of
      the Class A-2 Trust,  not lower  than  "AA-",  in the case of the  Offered
      Certificates of the Class B Trust, not lower than "A-", in the case of the
      Offered  Certificates of the Class C-1 Trust,  and not lower than "A-", in
      the case of the Offered Certificates of the Class C-2 Trust, by Standard &
      Poor's Ratings  Service,  and (y) not lower than "Aa3", in the case of the
      Offered  Certificates of the Class A-1 Trust, not lower than "Aa3", in the
      case of the Offered  Certificates  in the Class A-2 Trust,  not lower than
      "A2", in the case of the Offered  Certificates  of the Class B Trust,  not
      lower than "Baa1",  in the case of the Offered  Certificates  of the Class
      C-1  Trust,  and  not  lower  than  "Baa1",  in the  case  of the  Offered
      Certificates of the Class C-2 Trust, by Moody's Investors Service, Inc.

            (t) On the Closing Date, the  representations  and warranties of the
      Depositary  contained  in this  Agreement  shall be true and correct as if
      made on the Closing Date (except to the extent that they relate  solely to
      an earlier  date,  in which case they shall be true and correct as of such
      earlier date).

            (u) You shall have  received  from Ernst & Young LLP a letter  dated
      the Closing Date which meets the  requirements  of subsection  (o) of this
      Section,  except that the specified  date  referred to in such  subsection
      will be a date not more than three business days prior to the Closing Date
      for the purposes of this subsection.

            The Company will furnish the Underwriters with such conformed copies
of such  opinions,  certificates,  letters  and  documents  as the  Underwriters
reasonably request.

            4. CERTAIN COVENANTS OF THE COMPANY. The Company covenants with each
Underwriter as follows:

            (a) During the period  described in the  following  sentence of this
      Section  4(a),  the Company  shall  advise you promptly of any proposal to
      amend or supplement the Registration  Statement or the Prospectus  (except
      by  documents  filed  under the  Exchange  Act) and will not  effect  such
      amendment or supplement (except by documents filed under the Exchange Act)
      without your consent, which consent will not be unreasonably withheld. If,
      at any time after the public  offering of the Offered  Certificates as the
      Prospectus is required by law to be delivered in connection  with sales of
      the Offered  Certificates  by an  Underwriter  or dealer,  any event shall
      occur as a  result  of which it is  necessary  to amend  the  Registration
      Statement  or  amend or  supplement  the  Prospectus  in order to make the
      statements  therein, in the light of the circumstances when the Prospectus
      is delivered to a purchaser, not misleading in any material respect, or if
      it is necessary to amend the Registration Statement or amend or supplement
      the  Prospectus to comply with law, the Company shall prepare and furnish,
      at its own expense,  to the  Underwriters  and to the dealers (whose names


<PAGE>

      and   addresses  you  will  furnish  to  the  Company)  to  which  Offered
      Certificates  may have been sold by you on behalf of the  Underwriters and
      to any other dealers upon request, either amendments or supplements to the
      Prospectus  so that the  statements  in the  Prospectus  as so  amended or
      supplemented  will  not,  in the  light  of  the  circumstances  when  the
      Prospectus  is  delivered to a purchaser,  be  misleading  in any material
      respect or amendments or supplements to the Registration  Statement or the
      Prospectus so that the  Registration  Statement or the  Prospectus,  as so
      amended or supplemented, will comply with law and cause such amendments or
      supplements to be filed promptly with the Commission.

            (b) During the period  mentioned in paragraph (a) above, the Company
      shall notify each Underwriter  immediately of (i) the effectiveness of any
      amendment  to the  Registration  Statement,  (ii) the  transmittal  to the
      Commission  for filing of any supplement to the Prospectus or any document
      that  would  as a result  thereof  be  incorporated  by  reference  in the
      Prospectus,  (iii) the receipt of any comments  from the  Commission  with
      respect to the  Registration  Statement,  the Prospectus or the Prospectus
      Supplement,  (iv) any request by the  Commission  for any amendment to the
      Registration  Statement  or  any  supplement  to  the  Prospectus  or  for
      additional information relating thereto or to any document incorporated by
      reference in the  Prospectus  and (v) receipt by the Company of any notice
      of the  issuance  by the  Commission  of any  stop  order  suspending  the
      effectiveness  of  the  Registration  Statement,  the  suspension  of  the
      qualification  of the  Offered  Certificates  for  offering or sale in any
      jurisdiction,  or the institution or threatening of any proceeding for any
      of such purposes; and the Company agrees to use every reasonable effort to
      prevent  the  issuance  of any such stop order  and,  if any such order is
      issued,  to obtain the lifting thereof at the earliest possible moment and
      the Company shall  (subject to the proviso to Section 4(e))  endeavor,  in
      cooperation  with the  Underwriters,  to prevent the  issuance of any such
      stop order suspending such qualification and, if any such order is issued,
      to obtain the lifting thereof at the earliest possible moment.

            (c) During the period  mentioned in paragraph (a) above, the Company
      will furnish to each of the  Underwriters as many conformed  copies of the
      Registration  Statement  (as  originally  filed)  and all  amendments  and
      supplements to such documents  (excluding all exhibits and documents filed
      therewith  or  incorporated  by reference  therein) and as many  conformed
      copies of all consents and  certificates of experts,  in each case as soon
      as available and in such quantities as each of the Underwriters reasonably
      requests.

            (d) Promptly following the execution of this Agreement,  the Company
      will prepare a Prospectus Supplement that complies with the Securities Act
      and that sets forth the principal  amount of the Offered  Certificates and
      their terms (including,  without limitation,  terms of the Escrow Receipts
      attached to the  Offered  Certificates)  not  otherwise  specified  in the
      Preliminary  Prospectus Supplement or the basic prospectus included in the
      Registration Statement, the name of each Underwriter  participating in the
      offering and the principal  amount of the Offered  Certificates  that each
      severally has agreed to purchase,  the name of each  Underwriter,  if any,


<PAGE>

      acting  as  representative  of the  Underwriters  in  connection  with the
      offering,  the price at which the Offered Certificates are to be purchased
      by the  Underwriters  from  the  Original  Trustees,  any  initial  public
      offering  price,  any selling  concession and  reallowance and any delayed
      delivery  arrangements,  and such other information as you and the Company
      deem   appropriate  in  connection   with  the  offering  of  the  Offered
      Certificates.  The Company will timely  transmit  copies of the Prospectus
      Supplement  to the  Commission  for filing  pursuant to Rule 424 under the
      Securities Act.

            (e)  The  Company  shall,  in  cooperation  with  the  Underwriters,
      endeavor to arrange for the qualification of the Offered  Certificates for
      offer and sale under the applicable  securities or "blue sky" laws of such
      jurisdictions  in the United States as you  reasonably  designate and will
      endeavor to maintain such qualifications in effect so long as required for
      the distribution of such Offered  Certificates;  PROVIDED that the Company
      shall not be  required  to (i)  qualify as a foreign  corporation  or as a
      dealer in securities, (ii) file a general consent to service of process or
      (iii) subject itself to taxation in any such state.

            (f) During  the  period of ten years  after the  Closing  Date,  the
      Company will promptly furnish to each of the  Underwriters,  upon request,
      copies  of all  Annual  Reports  on Form  10-K  and any  definitive  proxy
      statement of the Company filed with the Commission.

            (g) Between the date of this  Agreement  and the Closing  Date,  the
      Company shall not,  without your prior written  consent,  offer,  sell, or
      enter into any  agreement  to sell (as public debt  securities  registered
      under the Securities Act (other than the Offered  Certificates) or as debt
      securities  which  may  be  resold  in  a  transaction   exempt  from  the
      registration  requirements  of the Securities Act in reliance on Rule 144A
      thereunder and which are marketed through the use of a disclosure document
      containing  substantially the same information as a prospectus for similar
      debt securities registered under the Securities Act), any equipment notes,
      pass  through  certificates,  equipment  trust  certificates  or equipment
      purchase  certificates  secured by aircraft owned or leased by the Company
      (or rights relating thereto).

            5.  INDEMNIFICATION  AND  CONTRIBUTION.  (a) The  Company  agrees to
indemnify  and hold  harmless  each  Underwriter,  and each Person,  if any, who
controls  such  Underwriter  within  the  meaning  of either  Section  15 of the
Securities  Act or Section 20 of the  Exchange  Act from and against any and all
losses,  claims,  damages and liabilities  (including,  without limitation,  any
legal or other  expenses  reasonably  incurred  by any  Underwriter  or any such
controlling person in connection with defending or investigating any such action
or claim)  caused by any untrue  statement  or  alleged  untrue  statement  of a
material fact contained in the Registration  Statement or any amendment thereof,
the Preliminary  Prospectus or the Prospectus (as amended or supplemented if the
Company shall have furnished any amendments or supplements  thereto),  or caused
by any omission or alleged omission to state therein a material fact required to
be stated  therein or necessary to make the statements  therein not  misleading,
except insofar as such losses,  claims, damages or liabilities are caused by any


<PAGE>

such untrue  statement or omission or alleged untrue statement or omission based
upon Underwriter Information or Depositary Information;  PROVIDED, HOWEVER, that
the foregoing  indemnity  agreement with respect to the  Preliminary  Prospectus
shall not inure to the benefit of any Underwriter from whom the person asserting
any  such  losses,   claims,   damages  or  liabilities  purchased  the  Offered
Certificates, or to the benefit of any person controlling such Underwriter, if a
copy of the  Prospectus  (as then amended or  supplemented  if the Company shall
have furnished any  amendments or supplements  thereto) was not sent or given by
or on behalf of such  Underwriter to such person,  if required by law so to have
been  delivered,  at or prior to the  written  confirmation  of the sale of such
Offered  Certificates  to such person,  and if the  Prospectus (as so amended or
supplemented)  would have cured the defect  giving rise to such losses,  claims,
damages or  liabilities  unless  such  failure to deliver the  Prospectus  was a
result of noncompliance by the Company with its delivery  requirements set forth
in Section 4(a).

            (b) Each Underwriter agrees, severally and not jointly, to indemnify
and hold harmless the Company,  its  directors,  each of the officers who signed
the  Registration  Statement and each person,  if any, who controls the Company,
within the meaning of either  Section 15 of the  Securities Act or Section 20 of
the Exchange Act, to the same extent as the foregoing indemnity from the Company
to such  Underwriter  but only with  reference  to the  Underwriter  Information
provided by such Underwriter.

            (c)   In   case   any   proceeding   (including   any   governmental
investigation)  shall be  instituted  involving  any  person in respect of which
indemnity  may be sought  pursuant to either  paragraph  (a) or (b) above,  such
person (the  "indemnified  party") shall promptly notify the person against whom
such  indemnity  may be  sought  (the  "indemnifying  party")  in  writing.  The
indemnifying  party,  upon  request of the  indemnified  party,  shall,  and the
indemnifying party may elect to, retain counsel  reasonably  satisfactory to the
indemnified  party  to  represent  the  indemnified  party  and any  others  the
indemnifying  party may designate in such proceeding and the indemnifying  party
shall pay the fees and disbursements of such counsel related to such proceeding.
In any such proceeding, any indemnified party shall have the right to retain its
own counsel,  but the fees and expenses of such counsel  shall be at the expense
of such indemnified party unless (i) the indemnifying  party and the indemnified
party shall have  mutually  agreed to the  retention of such  counsel,  (ii) the
named parties to any such proceeding  (including any impleaded  parties) include
both the indemnifying party and the indemnified party and representation of both
parties by the same counsel  would be  inappropriate  due to actual or potential
differing  interests  between them, or (iii) the  indemnifying  party shall have
failed to retain  counsel as required by the prior  sentence  to  represent  the
indemnified  party within a reasonable amount of time. It is understood that the
indemnifying  party  shall not, in  connection  with any  proceeding  or related
proceedings  in the same  jurisdiction,  be liable for the fees and  expenses of
more than one  separate  firm (in  addition to any local  counsel)  for all such
indemnified  parties and that all such fees and expenses  shall be reimbursed as
they are  incurred.  Such firm shall be designated in writing by you in the case
of parties indemnified pursuant to paragraph (a) above and by the Company in the
case of parties  indemnified  pursuant to paragraph (b) above.  The indemnifying
party shall not be liable for any settlement of any proceeding  effected without
its written  consent,  but if settled  with such  consent or if there be a final
judgment for the  plaintiff,  the  indemnifying  party  agrees to indemnify  the
indemnified  party  from and  against  any loss or  liability  by reason of such


<PAGE>

settlement or judgment.  Notwithstanding the foregoing sentence,  if at any time
an indemnified  party shall have requested in writing an  indemnifying  party to
reimburse the indemnified party for fees and expenses of counsel as contemplated
by the second and third  sentences of this  paragraph,  the  indemnifying  party
agrees that it shall be liable for any  settlement  of any  proceeding  effected
without its written  consent if (i) such settlement is entered into more than 90
days after receipt by such indemnifying  party of the aforesaid request and (ii)
such  indemnifying  party shall not have  reimbursed  the  indemnified  party in
accordance with such request prior to the date of such  settlement,  unless such
fees and expenses are being disputed in good faith.  The  indemnifying  party at
any time may,  subject to the last  sentence  of this  Section  5(c),  settle or
compromise  any  proceeding  described  in this  paragraph at the expense of the
indemnifying  party.  No  indemnifying  party shall,  without the prior  written
consent of the  indemnified  party,  effect  any  settlement  of any  pending or
threatened proceeding in respect of which any indemnified party is or could have
been a party and indemnity could have been sought  hereunder by such indemnified
party,  unless  such  settlement  includes  an  unconditional  release  of  such
indemnified  party from all  liability on claims that are the subject  matter of
such proceeding.

            (d) To the extent the indemnification  provided for in paragraph (a)
or (b) of this  Section  5 is  required  to be  made  but is  unavailable  to an
indemnified party or insufficient in respect of any losses,  claims,  damages or
liabilities,  then the applicable  indemnifying  party under such paragraph,  in
lieu of indemnifying such indemnified party thereunder,  shall contribute to the
amount  paid or payable by such  indemnified  party as a result of such  losses,
claims,  damages or  liabilities  (i) in such  proportion as is  appropriate  to
reflect the relative benefits received by the Company,  on the one hand, and the
Underwriters,  on the other hand, from the offering of such Offered Certificates
or (ii) if the  allocation  provided  by clause  (i) above is not  permitted  by
applicable  law, in such  proportion as is  appropriate  to reflect not only the
relative benefits referred to in clause (i) above but also the relative fault of
the Company on the one hand and the Underwriters on the other hand in connection
with the statements or omissions that resulted in such losses,  claims,  damages
or  liabilities,  as well as any other relevant  equitable  considerations.  The
relative  benefits  received by the Company on the one hand and the Underwriters
on the other hand in connection  with the offering of such Offered  Certificates
shall be deemed to be in the same  respective  proportions  as the proceeds from
the  offering  of such  Offered  Certificates  received by the  Original  Trusts
(before deducting  expenses) less total  underwriting  discounts and commissions
paid to the Underwriters by the Company,  and the total  underwriting  discounts
and commissions  paid to the  Underwriters  by the Company,  in each case as set
forth on the cover of the  Prospectus,  bear to the  aggregate  public  offering
price of such Offered Certificates. The relative fault of the Company on the one
hand and of the  Underwriters on the other hand shall be determined by reference
to,  among other  things,  whether the untrue or alleged  untrue  statement of a
material  fact or the  omission  or alleged  omission  to state a material  fact
relates to information  supplied by the Company or  information  supplied by the
Underwriters, and the parties' relative intent, knowledge, access to information
and  opportunity  to  correct  or  prevent  such  statement  or  omission.   The
Underwriters'  respective  obligations to contribute  pursuant to this Section 5
are  several  in  proportion  to the  respective  principal  amount  of  Offered
Certificates they have purchased hereunder, and not joint.



<PAGE>

            (e) The Company and the Underwriters agree that it would not be just
or equitable if  contribution  pursuant to this Section 5 were determined by PRO
RATA allocation  (even if the  Underwriters  were treated as one entity for such
purpose) or by any other method of allocation  that does not take account of the
equitable  considerations referred to in paragraph (d) above. The amount paid or
payable by an indemnified party as a result of the losses,  claims,  damages and
liabilities  referred  to in  paragraph  (d) above  shall be deemed to  include,
subject  to the  limitations  set  forth  above,  any  legal or  other  expenses
reasonably  incurred by such indemnified party in connection with  investigating
or defending any such action or claim.  Notwithstanding  the  provisions of this
Section 5, no  Underwriter  shall be required to contribute any amount in excess
of the  amount  by which  the  total  price at which  the  Offered  Certificates
underwritten  by it and  distributed  to the public  were  offered to the public
exceeds the amount of any  damages  that such  Underwriter  has  otherwise  been
required to pay by reason of such untrue or alleged untrue statement or omission
or alleged omission.  No person guilty of fraudulent  misrepresentation  (within
the  meaning of  Section  11(f) of the  Securities  Act)  shall be  entitled  to
contribution   from  any  person   who  was  not   guilty  of  such   fraudulent
misrepresentation.  The indemnity and contribution  provisions contained in this
Section 5 and the  representations  and  warranties of the Company  contained in
this Agreement shall remain operative and in full force and effect regardless of
(i) any  termination of this  Agreement,  (ii) any  investigation  made by or on
behalf of any Underwriter or any person  controlling any Underwriter or by or on
behalf of the Company,  its officers or directors or any person  controlling the
Company,   and  (iii)   acceptance  of  and  payment  for  any  of  the  Offered
Certificates.  The remedies provided for in this Section 5 are not exclusive and
shall not limit any rights or remedies  which may  otherwise be available to any
indemnified party at law or in equity.

            6.  DEFAULT OF  UNDERWRITERS.  If any  Underwriter  or  Underwriters
defaults in their obligations to purchase Offered Certificates hereunder and the
aggregate  principal  amount of the Offered  Certificates  that such  defaulting
Underwriter or Underwriters agreed but failed to purchase does not exceed 10% of
the  total  principal  amount  of  the  Offered   Certificates,   you  may  make
arrangements  satisfactory  to the  Company  for the  purchase  of such  Offered
Certificates by other persons, including any of the Underwriters, but if no such
arrangements are made by the Closing Date, the non-defaulting Underwriters shall
be obligated severally, in proportion to their respective commitments hereunder,
to  purchase  the  Offered  Certificates  that such  defaulting  Underwriter  or
Underwriters  agreed but failed to purchase.  If any Underwriter or Underwriters
so default and the aggregate  principal amount of the Offered  Certificates with
respect  to which such  default  or  defaults  occurs  exceeds  10% of the total
principal amount of the Offered  Certificates  and arrangements  satisfactory to
you and the Company for purchase of such Offered  Certificates  by other persons
are not made within 36 hours after such default,  this  Agreement will terminate
without liability on the part of any non-defaulting  Underwriter or the Company,
except  as  provided  in  Section  5.  As  used  in  this  Agreement,  the  term
"Underwriter"  includes any person  substituted  for an  Underwriter  under this
Section. Nothing herein will relieve a defaulting Underwriter from liability for
its default.

            7.  SURVIVAL  OF  CERTAIN   REPRESENTATIONS  AND  OBLIGATIONS.   The
respective  indemnities,  agreements,  representations,   warranties  and  other
statements of the Company or its officers and of the  Underwriters  set forth in
or made  pursuant  to this  Agreement  will  remain in full  force  and  effect,


<PAGE>

regardless of any termination of this agreement, any investigation, or statement
as to the results thereof, made by or on behalf of any Underwriter,  the Company
or any  of  their  respective  representatives,  officers  or  directors  or any
controlling  person and will  survive  delivery  of and  payment for the Offered
Certificates.  If for any reason the purchase of the Offered Certificates by the
Underwriters is not  consummated,  the Company shall remain  responsible for the
expenses to be paid or reimbursed by it pursuant to Section 9 and the respective
obligations  of the  Company  and the  Underwriters  pursuant to Section 5 shall
remain  in  effect.  If  the  purchase  of  the  Offered   Certificates  by  the
Underwriters  is not consummated for any reason other than solely because of the
occurrence of the  termination of the Agreement  pursuant to Section 6 or 8, the
Company  will  reimburse  the  Underwriters  for  all   out-of-pocket   expenses
(including  reasonable fees and disbursements of counsel) reasonably incurred by
them in  connection  with the offering of such Offered  Certificates  and comply
with its obligations under Section 9.

            8.  TERMINATION.  This Agreement  shall be subject to termination by
notice given by you to the Company,  if (a) after the  execution and delivery of
this  Agreement and prior to the Closing Date (i) trading  generally  shall have
been  suspended or  materially  limited on or by, as the case may be, any of the
New York Stock Exchange, the American Stock Exchange or the National Association
of Securities Dealers, Inc., (ii) trading of any securities of the Company shall
have been suspended on any exchange or in any  over-the-counter  market, (iii) a
general  moratorium on commercial banking activities in New York shall have been
declared  by either  Federal or New York State  authorities  or (iv) there shall
have  occurred  any  outbreak  or  escalation  of  hostilities  or any change in
financial markets or any calamity or crisis that, in your judgment,  is material
and adverse and (b) in the case of any of the events specified in clauses (a)(i)
through (iv),  such event singly or together with any other such event makes it,
in your judgment,  impracticable to market the Offered Certificates on the terms
and in the manner contemplated in the Prospectus.

            9. PAYMENT OF EXPENSES. As between the Company and the Underwriters,
the Company shall pay all expenses  incident to the performance of the Company's
obligations under this Agreement, including the following:

            (i) expenses  incurred in connection with (A) qualifying the Offered
      Certificates  for offer and sale under the applicable  securities or "blue
      sky" laws of such  jurisdictions  in the United  States as you  reasonably
      designate (including filing fees and fees and disbursements of counsel for
      the  Underwriters  in connection  therewith),  (B) endeavoring to maintain
      such  qualifications in effect so long as required for the distribution of
      such Offered Certificates,  (C) the review (if any) of the offering of the
      Offered  Certificates by the National  Association of Securities  Dealers,
      Inc., (D) the determination of the eligibility of the Offered Certificates
      for investment  under the laws of such  jurisdictions  as the Underwriters
      may designate and (E) the preparation and  distribution of any blue sky or
      legal investment memorandum by Underwriters' Counsel;

            (ii)  expenses  incurred  in  connection  with the  preparation  and
      distribution  to  the  Underwriters  and  the  dealers  (whose  names  and
      addresses the  Underwriters  will furnish to the Company) to which Offered


<PAGE>

      Certificates may have been sold by the Underwriters on their behalf and to
      any  other  dealers  upon  request,   either  of  (A)  amendments  to  the
      Registration  Statement or amendments or  supplements to the Prospectus in
      order to make the statements  therein,  in the light of the  circumstances
      when the Prospectus is delivered to a purchaser, not materially misleading
      or (B)  amendments or  supplements  to the  Registration  Statement or the
      Prospectus so that the  Registration  Statement or the  Prospectus,  as so
      amended or supplemented, will comply with law and the expenses incurred in
      connection  with  causing  such  amendments  or  supplements  to be  filed
      promptly with the Commission, all as set forth in Section 4(a) hereof;

            (iii) expenses incurred in connection with the preparation, printing
      and filing of the Registration  Statement  (including financial statements
      and  exhibits),  as  originally  filed  and as  amended,  the  Preliminary
      Prospectus and the Prospectus and any amendments  thereof and  supplements
      thereto, and the cost of furnishing copies thereof to the Underwriters;

            (iv) expenses incurred in connection with the preparation,  printing
      and  distribution  of this  Agreement,  the Offered  Certificates  and the
      Operative Agreements;

            (v) expenses incurred in connection with the delivery of the Offered
      Certificates to the Underwriters;

            (vi)   reasonable  fees  and   disbursements   of  the  counsel  and
      accountants for the Company;

            (vii) to the extent the Company is so required  under any  Operative
      Agreement  to  which it is a party,  the  fees  and  expenses  of the Loan
      Trustees,  the Subordination  Agent, the Paying Agents, the Trustees,  the
      Escrow Agents, the Depositary, the Class A and Class B Liquidity Provider,
      the Class C Liquidity  Provider and the reasonable fees and  disbursements
      of their respective counsel;

            (viii)  fees  charged by rating  agencies  for  rating  the  Offered
      Certificates  (including  annual  surveillance fees related to the Offered
      Certificates as long as they are outstanding);

            (ix) all fees and expenses  relating to  appraisals of the Aircraft;
      and

            (x) all other  reasonable  out-of-pocket  expenses  incurred  by the
      Underwriters  in connection  with the  transactions  contemplated  by this
      Agreement.

            10. NOTICES. All communications hereunder will be in writing and, if
sent  to the  Underwriters,  will be  mailed,  delivered  or  sent by  facsimile
transmission and confirmed to the  Underwriters,  c/o Credit Suisse First Boston
Corporation,  Eleven  Madison  Avenue,  New  York,  New York  10010,  Attention:
Transaction  Advisory  Group,  facsimile  number  (212)  325-8278 and c/o Morgan
Stanley & Co. Incorporated,  1585 Broadway, New York, New York 10036, Attention:
Equipment  Finance Group,  facsimile  number (212) 761-0786,  and if sent to the


<PAGE>

Company,  will  be  mailed,  delivered  or sent by  facsimile  transmission  and
confirmed to it at 1600 Smith Street, HQSEO, Houston, TX 77002, Attention: Chief
Financial  Officer  and  General  Counsel,   facsimile  number  (713)  324-2687;
PROVIDED,  HOWEVER, that any notice to an Underwriter pursuant to Section 5 will
be  sent  by  facsimile   transmission   or  delivered  and  confirmed  to  such
Underwriter.

            11.  SUCCESSORS.  This Agreement will inure to the benefit of and be
binding  upon  the  parties  hereto  and  their  respective  successors  and the
controlling  persons referred to in Section 5, and no other person will have any
right or obligation hereunder.

            12.  REPRESENTATION  OF  UNDERWRITERS.  You will act for the several
Underwriters  in  connection  with this  purchase,  and any  action  under  this
Agreement  taken  jointly  or by  either  of you  will be  binding  upon all the
Underwriters.

            13.  COUNTERPARTS.  This  Agreement may be executed in any number of
counterparts,  each of which  will be  deemed  to be an  original,  but all such
counterparts shall together constitute one and the same Agreement.

            14.  APPLICABLE  LAW.  THIS  AGREEMENT  SHALL  BE  GOVERNED  BY  AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO
PRINCIPLES OF CONFLICTS OF LAW.

            15.  JURISDICTION.  Each of the parties hereto agrees that any legal
suit,  action or proceeding  arising out of or relating to this Agreement or the
transactions  contemplated  hereby may be instituted in any U.S.  federal or New
York State  court in the  Borough of  Manhattan  in the City of New York (each a
"New York court") and each of the parties hereto hereby  irrevocably  waives any
objection  which it may now or hereafter have to the laying of venue of any such
proceeding,  and irrevocably  submits to the  jurisdiction of such courts,  with
respect  to actions  brought  against it as  defendant,  in any suit,  action or
proceeding.  Each of the parties to this Agreement  agrees that a final judgment
in any such suit,  action or proceeding  shall be conclusive and may be enforced
in other  jurisdictions  by suit on the judgment or in any other manner provided
by law in accordance with applicable law.



<PAGE>


            If  the   foregoing  is  in   accordance   with  the   Underwriters'
understanding of our agreement, kindly sign and return to the Company one of the
counterparts  hereof,  whereupon  it will become a binding  agreement  among the
Underwriters, the Depositary and the Company in accordance with its terms.

                                          Very truly yours,

                                          CONTINENTAL AIRLINES, INC.


                                          By:________________________________
                                             Name: Gerald Laderman
                                             Title: Senior Vice President -
                                             Finance

The foregoing Underwriting Agreement
is hereby confirmed and accepted
as of the date first above written

CREDIT SUISSE FIRST BOSTON CORPORATION
MORGAN STANLEY & CO. INCORPORATED
CHASE SECURITIES INC.
MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
SALOMON SMITH BARNEY INC.

By:  CREDIT SUISSE FIRST BOSTON CORPORATION


     By:___________________________________
        Name:
        Title:


By:  MORGAN STANLEY & CO. INCORPORATED



     By:___________________________________
        Name:
        Title:



<PAGE>


CREDIT SUISSE FIRST BOSTON
New York Branch, as Depositary


By:_____________________________________
   Name:
   Title:



By:_____________________________________
   Name:
   Title:



<PAGE>

                                   SCHEDULE I

                   (Pass Through Certificates, Series 2000-1)

                           CONTINENTAL AIRLINES, INC.

    Pass Through          Aggregate                                 Final
    Certificate           Principal                               Maturity
    Designation            Amount           Interest Rate           Date
    ------------          ---------         -------------         --------

     2000-1A-1           $395,780,000          8.048%            May 1, 2022

     2000-1A-2           $117,852,000          7.918%         November 1, 2011

     2000-1B             $113,149,000          8.388%            May 1, 2022

     2000-1C-1           $ 70,619,000          8.499%         November 1, 2012

     2000-1C-2           $ 45,917,000          8.321%         November 1, 2006


<PAGE>

                                   SCHEDULE II


<TABLE>
<CAPTION>
     Underwriters        2000-1A-1    2000-1A-2     2000-1B      2000-1C-1    2000-1C-2
     ------------        ---------    ---------     -------      ---------    ---------
<S>                     <C>           <C>          <C>          <C>           <C>
Credit Suisse First     $79,156,000   $23,572,000  $22,633,000  $14,127,000   $9,185,000
  Boston Corporation
Eleven Madison Avenue
New York, NY  10010

Morgan Stanley & Co.     79,156,000    23,570,000   22,629,000   14,123,000    9,183,000
  Incorporated
1585 Broadway
New York, NY  10036

Chase Securities Inc.    79,156,000    23,570,000   22,629,000   14,123,000    9,183,000
270 Park Avenue
New York, NY 10017

Merrill Lynch, Pierce,   79,156,000    23,570,000   22,629,000   14,123,000    9,183,000
  Fenner & Smith
  Incorporated
250 Vesey Street
World Financial
Center/North Tower
New York, NY 10281

Salomon Smith Barney     79,156,000    23,570,000   22,629,000   14,123,000    9,183,000
  Inc.
388 Greenwich Street
New York, NY  10013
</TABLE>




<PAGE>

                                  SCHEDULE III

                           CONTINENTAL AIRLINES, INC.


Underwriting commission
and other compensation:         $6,689,853

Closing date, time and          March 15, 2000
location:                       10:00 A.M.,
                                New York time
                                Hughes Hubbard & Reed LLP
                                One Battery Park Plaza
                                New York, New York 10004




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



                           REVOLVING CREDIT AGREEMENT
                                   (2000-1A-1)


                           DATED AS OF MARCH 15, 2000

                                     BETWEEN

                            WILMINGTON TRUST COMPANY,

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

                                   AS BORROWER

                                       AND

                   CREDIT SUISSE FIRST BOSTON, NEW YORK BRANCH

                              AS LIQUIDITY PROVIDER




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




                                   RELATING TO

                CONTINENTAL AIRLINES PASS THROUGH TRUST 2000-1A-1
             8.048% CONTINENTAL AIRLINES PASS THROUGH CERTIFICATES,
                                SERIES 2000-1A-1




<PAGE>

                                TABLE OF CONTENTS

                                                                            PAGE

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

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

ARTICLE III  OBLIGATIONS OF THE BORROWER ....................................13
   Section 3.01.    Increased Costs .........................................13
   Section 3.02.    Capital Adequacy ........................................14
   Section 3.03.    Payments Free of Deductions .............................14
   Section 3.04.
    Payments ................................................15
   Section 3.05.    Computations ............................................16
   Section 3.06.    Payment on Non-Business Days ............................16
   Section 3.07.    Interest ................................................16
   Section 3.08.    Replacement of Borrower .................................17
   Section 3.09.    Funding Loss Indemnification ............................17
   Section 3.10.    Illegality ..............................................18

ARTICLE IV  CONDITIONS PRECEDENT ............................................18
   Section 4.01.    Conditions Precedent to Effectiveness of Section 2.01 ...18
   Section 4.02.    Conditions Precedent to Borrowing .......................20

ARTICLE V  COVENANTS ........................................................20
   Section 5.01.    Affirmative Covenants of the Borrower ...................20
   Section 5.02.    Negative Covenants of the Borrower ......................21

ARTICLE VI  LIQUIDITY EVENTS OF DEFAULT .....................................21
   Section 6.01.    Liquidity Events of Default .............................21

ARTICLE VII  MISCELLANEOUS ..................................................21
   Section 7.01.    Amendments, Etc. ........................................21
   Section 7.02.    Notices, Etc. ...........................................21


<PAGE>

                                TABLE OF CONTENTS
                                  (Continued)

                                                                            PAGE

   Section 7.03.    No Waiver; Remedies .....................................22
   Section 7.04.    Further Assurances ......................................22
   Section 7.05.    Indemnification; Survival of Certain Provisions .........22
   Section 7.06.    Liability of the Liquidity Provider .....................23
   Section 7.07.    Costs, Expenses and Taxes ...............................24
   Section 7.08.    Binding Effect; Participations ..........................24
   Section 7.09.    Severability ............................................25
   Section 7.10.    GOVERNING LAW ...........................................25
   Section 7.11.    Submission to Jurisdiction; Waiver of Jury Trial; 
                    Waiver of Immunity ......................................26
   Section 7.12.    Execution in Counterparts ...............................26
   Section 7.13.    Entirety ................................................27
   Section 7.14.    Headings ................................................27
   Section 7.15.    Transfer ................................................27
   Section 7.16.    LIQUIDITY PROVIDER'S OBLIGATION TO MAKE ADVANCES ........27
   Section 7.17.    Head Office Obligation ..................................27


ANNEX I        Interest Advance Notice of Borrowing

ANNEX II       Non-Extension Advance Notice of Borrowing

ANNEX III      Downgrade Advance Notice of Borrowing

ANNEX IV       Final Advance Notice of Borrowing

ANNEX V        Notice of Termination

ANNEX VI       Notice of Replacement Subordination Agent



<PAGE>

                     REVOLVING CREDIT AGREEMENT (2000-1A-1)

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

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

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

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

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


                                    ARTICLE I

                                   DEFINITIONS

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

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

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

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

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

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



<PAGE>

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

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

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

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

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

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

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

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

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

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

            "DEPOSIT AGREEMENT" means the Deposit Agreement dated as of the date
      hereof between First Security Bank, National Association, as Escrow Agent,
      Credit Suisse First Boston, New York branch, as Depositary,  pertaining to
      the  Class  A-1  Certificates,  as the same may be  amended,  modified  or
      supplemented from time to time in accordance with the terms thereof.



<PAGE>

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

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

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

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

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

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

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

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

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

            "FACILITY  OFFICE"  means  the  office  of  the  Liquidity  Provider
      presently  located  at New York,  New York,  or such  other  office as the
      Liquidity  Provider  from time to time shall  notify the  Borrower  as its
      Facility Office hereunder;  provided that the Liquidity Provider shall not


<PAGE>

      change its Facility  Office to a Facility Office outside the United States
      of America except in accordance with Section 3.01, 3.02 or 3.03 hereof.

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

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

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

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

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

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

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

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

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

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



<PAGE>

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

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

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

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

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

            "MAXIMUM COMMITMENT" means initially  $51,848,587.22 as the same may
      be reduced from time to time in accordance with Section 2.04(a).

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

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

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

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

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



<PAGE>

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

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

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

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

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

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

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

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

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

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

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



<PAGE>

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

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

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

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

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

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


                                   ARTICLE II

                       AMOUNT AND TERMS OF THE COMMITMENT

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

            Section 2.02.  MAKING THE ADVANCES.  (a) Interest  Advances shall be
made in one or more  Borrowings by delivery to the Liquidity  Provider of one or
more written and  completed  Notices of Borrowing in  substantially  the form of
Annex I attached hereto,  signed by a Responsible Officer of the Borrower, in an


<PAGE>

amount not exceeding the Maximum Available  Commitment at such time and shall be
used solely for the payment  when due of interest on the Class A-1  Certificates
at the Stated  Interest Rate therefor in accordance  with Section  3.6(a) of the
Intercreditor   Agreement.   Each   Interest   Advance  made   hereunder   shall
automatically  reduce the Maximum Available  Commitment and the amount available
to be borrowed  hereunder by subsequent  Advances by the amount of such Interest
Advance  (subject  to  reinstatement  as provided  in the next  sentence).  Upon
repayment  to the  Liquidity  Provider  in full of the  amount  of any  Interest
Advance made pursuant to this Section  2.02(a),  together with accrued  interest
thereon  (as  provided  herein),  the  Maximum  Available  Commitment  shall  be
reinstated by the amount of such repaid Interest Advance,  but not to exceed the
Maximum Commitment;  PROVIDED,  however,  that the Maximum Available  Commitment
shall not be so reinstated at any time if (i) a Liquidity Event of Default shall
have occurred and be continuing and (ii) there is a Performing Note Deficiency.

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

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

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

            (e) Each Borrowing  shall be made on notice in writing (a "NOTICE OF
BORROWING")  in  substantially  the form required by Section  2.02(a),  2.02(b),


<PAGE>

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

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

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



<PAGE>

            Section 2.04. REDUCTIONS OR TERMINATION OF THE MAXIMUM COMMITMENT.

            (a) AUTOMATIC  REDUCTION.  Promptly following each date on which the
Required Amount is reduced as a result of a reduction in the Pool Balance of the
Class A-1 Certificates or otherwise,  the Maximum Commitment shall automatically
be reduced to an amount equal to such reduced  Required Amount (as calculated by
the Borrower); PROVIDED that on the first Regular Distribution Date, the Maximum
Commitment  shall  automatically  be reduced to the then  Required  Amount.  The
Borrower  shall  give  notice of any such  automatic  reduction  of the  Maximum
Commitment to the  Liquidity  Provider  within two Business  Days  thereof.  The
failure  by the  Borrower  to furnish  any such  notice  shall not  affect  such
automatic reduction of the Maximum Commitment.

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

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

            Section 2.06. REPAYMENTS OF PROVIDER ADVANCES.  (a) Amounts advanced
hereunder in respect of a Provider  Advance  shall be deposited in the Class A-1
Cash  Collateral  Account,  invested  and  withdrawn  from  the  Class  A-1 Cash
Collateral  Account  as  set  forth  in  Sections  3.6(c),  (d)  and  (f) of the
Intercreditor  Agreement.  The Borrower agrees to pay to the Liquidity Provider,
on each Regular Distribution Date,  commencing on the first Regular Distribution
Date after the making of a Provider Advance, interest on the principal amount of
any such Provider Advance as provided in Section 3.07; PROVIDED,  HOWEVER,  that


<PAGE>

amounts  in  respect of a  Provider  Advance  withdrawn  from the Class A-1 Cash
Collateral  Account  for  the  purpose  of  paying  interest  on the  Class  A-1
Certificates  in accordance with Section 3.6(f) of the  Intercreditor  Agreement
(the amount of any such withdrawal being (y) in the case of a Downgrade Advance,
an "APPLIED DOWNGRADE  ADVANCE" and (z) in the case of a Non-Extension  Advance,
an "APPLIED  NON-EXTENSION  ADVANCE"  and,  together  with an Applied  Downgrade
Advance,  an "APPLIED  PROVIDER  ADVANCE") shall thereafter  (subject to Section
2.06(b)) be treated as an Interest  Advance under this Agreement for purposes of
determining the Applicable Liquidity Rate for interest payable thereon; PROVIDED
FURTHER,  HOWEVER,  that if,  following  the making of a Provider  Advance,  the
Liquidity  Provider  delivers a Termination  Notice to the Borrower  pursuant to
Section 6.01 hereof,  such  Provider  Advance  shall  thereafter be treated as a
Final Advance under this  Agreement for purposes of  determining  the Applicable
Liquidity Rate for interest payable  thereon.  Subject to Sections 2.07 and 2.09
hereof,  immediately  upon the withdrawal of any amounts from the Class A-1 Cash
Collateral  Account  on account  of a  reduction  in the  Required  Amount,  the
Borrower  shall  repay to the  Liquidity  Provider  a  portion  of the  Provider
Advances in a principal  amount equal to such  reduction,  plus  interest on the
principal amount prepaid as provided in Section 3.07 hereof.

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

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

            Section  2.07.   PAYMENTS  TO  THE  LIQUIDITY   PROVIDER  UNDER  THE
INTERCREDITOR  AGREEMENT.  In order to provide for payment or  repayment  to the
Liquidity  Provider  of  any  amounts  hereunder,  the  Intercreditor  Agreement
provides  that amounts  available  and referred to in Articles II and III of the
Intercreditor  Agreement,  to  the  extent  payable  to the  Liquidity  Provider
pursuant  to  the  terms  of the  Intercreditor  Agreement  (including,  without
limitation, Section 3.6(f) of the Intercreditor Agreement), shall be paid to the
Liquidity Provider in accordance with the terms thereof.  Amounts so paid to the
Liquidity  Provider  shall be applied by the  Liquidity  Provider  to  Liquidity
Obligations then due and payable in accordance with the Intercreditor  Agreement


<PAGE>

or, if not provided for in the Intercreditor  Agreement,  then in such manner as
the Liquidity Provider shall deem appropriate.

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

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

            Section 2.10. EXTENSION OF THE EXPIRY DATE;  NON-EXTENSION  ADVANCE.
The Borrower may, from time to time, by notice to the Liquidity  Provider  (each
such notice  being an  "EXTENSION  NOTICE")  given no later than 40th day and no
earlier than the 60th day prior to the then applicable  Expiry Date,  request an
extension  of the  Expiry  Date to the  earlier of (i) the date which is 15 days
after the Final Legal  Distribution Date for the Class A-1 Certificates and (ii)
the date that is the day immediately preceding the 364th day occurring after the
last day of the  Consent  Period (as  hereinafter  defined).  Whether or not the
Liquidity  Provider  has received a request from the  Borrower,  such  Liquidity
Provider may, but shall not be obligated to, by a notice (a "CONSENT NOTICE") to
the  Borrower,  given during the period  commencing  on the date that is 60 days
prior to the  Expiry  Date then in effect and ending on the date that is 25 days
prior to the  Expiry  Date  then in effect  for such  Liquidity  Facility  (such
period, with respect to such Liquidity Facility, the "CONSENT PERIOD"),  consent
to such extension of the Expiry Date,  which consent may be given or withheld by
the Liquidity Provider in its absolute and sole discretion;  PROVIDED,  HOWEVER,
that such  extension  shall  not be  effective  with  respect  to the  Liquidity
Provider  if by a notice (a  "WITHDRAWAL  NOTICE")  to the  Borrower  during the
Consent  Period  the  Liquidity  Provider  revokes  its  Consent  Notice.  If  a
Withdrawal Notice has been given during the applicable  Consent Period or if the
Liquidity  Provider shall not have delivered a Consent Notice within the Consent
Period  (and,  in each  case,  if the  Liquidity  Provider  shall  not have been


<PAGE>

replaced in accordance with Section 3.6(e) of the Intercreditor Agreement),  the
Borrower  shall be entitled  on and after the date on which the  Consent  Period
ends (but prior to the then  effective  Expiry Date) to request a  Non-Extension
Advance in  accordance  with Section  2.02(b)  hereof and Section  3.6(d) of the
Intercreditor Agreement.


                                  ARTICLE III

                           OBLIGATIONS OF THE BORROWER

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

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



<PAGE>

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

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

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

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

            Section 3.03. PAYMENTS FREE OF DEDUCTIONS.  (a) All payments made by
the Borrower under this  Agreement  shall be made free and clear of, and without
reduction  for or on account  of, any  present or future  stamp or other  taxes,
levies, imposts, duties, charges, fees, deductions,  withholdings,  restrictions
or  conditions  of any  nature  whatsoever  now or  hereafter  imposed,  levied,
collected,  withheld or assessed,  excluding  Excluded Taxes (such  non-excluded
taxes  being  referred to herein,  collectively,  as  "NON-EXCLUDED  TAXES" and,


<PAGE>

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

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

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

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



<PAGE>

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

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

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

            (b) Except as provided in clause (e) below, each Advance (including,
without limitation, each outstanding Unapplied Downgrade Advance) will be either
a Base Rate Advance or a LIBOR  Advance as provided in this  Section.  Each such
Advance  will  be a Base  Rate  Advance  for the  period  from  the  date of its
borrowing to (but  excluding)  the third  Business Day  following  the Liquidity
Provider's receipt of the Notice of Borrowing for such Advance. Thereafter, such
Advance shall be a LIBOR  Advance;  provided that the Borrower (at the direction
of  the  Controlling  Party,  so  long  as the  Liquidity  Provider  is not  the
Controlling Party) may (x) convert the Final Advance into a Base Rate Advance on
the last day of an  Interest  Period for such  Advance  by giving the  Liquidity
Provider no less than four Business  Days' prior written notice of such election


<PAGE>

or (y)  elect to  maintain  the Final  Advance  as a Base  Rate  Advance  by not
requesting a conversion of the Final Advance to a LIBOR Advance under Clause (5)
of the  applicable  Notice of Borrowing  (or, if such Final Advance is deemed to
have been made,  without  delivery of a Notice of Borrowing  pursuant to Section
2.06, by requesting,  prior to 11:00 A.M. on the first Business Day  immediately
following the Borrower's receipt of the applicable Termination Notice, that such
Final Advance not be converted from a Base Rate Advance to a LIBOR Advance).

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

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

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

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

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

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

            Section 3.09. FUNDING LOSS  INDEMNIFICATION.  The Borrower shall pay
to the  Liquidity  Provider,  upon the request of the Liquidity  Provider,  such
amount or  amounts  as shall be  sufficient  (in the  reasonable  opinion of the
Liquidity  Provider) to compensate it for any loss, cost, or expense incurred by


<PAGE>

reason of the liquidation or redeployment of deposits or other funds acquired by
the Liquidity Provider to fund or maintain any LIBOR Advance (but excluding loss
of anticipated profits) incurred as a result of:

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

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

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


                                   ARTICLE IV

                              CONDITIONS PRECEDENT

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

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

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

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

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



<PAGE>

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

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

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

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

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

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

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



<PAGE>

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

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

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


                                    ARTICLE V

                                    COVENANTS

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

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

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

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



<PAGE>

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


                                   ARTICLE VI

                           LIQUIDITY EVENTS OF DEFAULT

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


                                   ARTICLE VII

                                  MISCELLANEOUS

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

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



<PAGE>

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

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

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

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

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

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

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

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


<PAGE>

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

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

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



<PAGE>

            Section 7.07. COSTS, EXPENSES AND TAXES. The Borrower agrees to pay,
or cause to be paid (A) on the Effective Date and on such later date or dates on
which the Liquidity  Provider shall make demand,  all  reasonable  out-of-pocket
costs and expenses  (including,  without  limitation,  the  reasonable  fees and
expenses  of  outside  counsel  for the  Liquidity  Provider)  of the  Liquidity
Provider in connection with the preparation,  negotiation,  execution, delivery,
filing and recording of this Agreement,  any other  Operative  Agreement and any
other documents which may be delivered in connection with this Agreement and (B)
on demand, all reasonable costs and expenses (including  reasonable counsel fees
and expenses) of the Liquidity  Provider in connection  with (i) the enforcement
of this Agreement or any other  Operative  Agreement,  (ii) the  modification or
amendment of, or supplement to, this Agreement or any other Operative  Agreement
or such  other  documents  which may be  delivered  in  connection  herewith  or
therewith  (whether or not the same shall become  effective) or (iii) any action
or  proceeding  relating to any order,  injunction,  or other  process or decree
restraining or seeking to restrain the Liquidity Provider from paying any amount
under  this  Agreement,  the  Intercreditor  Agreement  or any  other  Operative
Agreement or otherwise  affecting the application of funds in the Class A-1 Cash
Collateral Account.  In addition,  the Borrower shall pay any and all recording,
stamp and other  similar  taxes and fees payable or  determined to be payable in
connection with the execution, delivery, filing and recording of this Agreement,
any other Operative  Agreement and such other documents,  and agrees to save the
Liquidity  Provider  harmless  from and  against  any and all  liabilities  with
respect to or  resulting  from any delay in paying or omission to pay such taxes
or fees.

            Section 7.08.  BINDING  EFFECT;  PARTICIPATIONS.  (a) This Agreement
shall be binding upon and inure to the benefit of the Borrower and the Liquidity
Provider and their  respective  successors and assigns,  except that neither the
Liquidity  Provider  (except as  otherwise  provided in this  Section  7.08) nor
(except as  contemplated  by Section 3.08) the Borrower  shall have the right to
assign its rights or  obligations  hereunder or any interest  herein without the
prior written consent of the other party, subject to the requirements of Section
7.08(b). The Liquidity Provider may grant participations herein or in any of its
rights hereunder  (including,  without  limitation,  funded  participations  and
participations in rights to receive interest  payments  hereunder) and under the
other  Operative  Agreements  to such Persons  (other than  Continental  and its
Affiliates) as the Liquidity Provider may in its sole discretion select, subject
to the requirements of Section 7.08(b).  No such granting of  participations  by
the Liquidity  Provider,  however,  will relieve the  Liquidity  Provider of its
obligations  hereunder.  In connection  with any  participation  or any proposed
participation,  the Liquidity  Provider may disclose to the  participant  or the
proposed participant any information that the Borrower is required to deliver or
to disclose to the Liquidity  Provider pursuant to this Agreement.  The Borrower
acknowledges and agrees that the Liquidity Provider's source of funds may derive
in part from its participants. Accordingly, references in this Agreement and the
other  Operative  Agreements  to  determinations,  reserve and capital  adequacy
requirements, increased costs, reduced receipts, additional amounts due pursuant
to Section 3.03 and the like as they pertain to the Liquidity  Provider shall be
deemed  also to  include  those  of  each of its  participants  that  are  banks
(subject,  in each case, to the maximum  amount that would have been incurred by
or attributable to the Liquidity  Provider  directly if the Liquidity  Provider,
rather than the participant, had held the interest participated).


<PAGE>

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

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

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

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



<PAGE>

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

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

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

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

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

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

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

            Section  7.12.  EXECUTION IN  COUNTERPARTS.  This  Agreement  may be
executed  in any  number of  counterparts  and by  different  parties  hereto on


<PAGE>

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

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

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

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

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

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



<PAGE>

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

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


                                    By:_____________________________________
                                       Name:
                                       Title:


                                    CREDIT SUISSE FIRST BOSTON, 
                                      NEW YORK BRANCH
                                    as Liquidity Provider


                                    By:_____________________________________
                                       Name:
                                       Title:


                                    By:_____________________________________
                                       Name:
                                       Title:



<PAGE>

                                                                      Annex I to
                                                      Revolving Credit Agreement


                      INTEREST ADVANCE NOTICE OF BORROWING

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

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

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

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

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

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


<PAGE>

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

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

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


                                    By:_____________________________________
                                       Name:
                                       Title:



<PAGE>

               SCHEDULE I TO INTEREST ADVANCE NOTICE OF BORROWING

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



<PAGE>

                                                                     Annex II to
                                                      Revolving Credit Agreement


                    NON-EXTENSION ADVANCE NOTICE OF BORROWING

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

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

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

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

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

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



<PAGE>

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

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


                                    By:_____________________________________
                                       Name:
                                       Title:



<PAGE>


            SCHEDULE I TO NON-EXTENSION ADVANCE NOTICE OF BORROWING

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



<PAGE>

                                                                    Annex III to
                                                      Revolving Credit Agreement


                      DOWNGRADE ADVANCE NOTICE OF BORROWING

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

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

            (2) The  Borrower is  delivering  this Notice of  Borrowing  for the
      making of the Downgrade  Advance by the Liquidity  Provider to be used for
      the funding of the Class A-1 Cash  Collateral  Account in accordance  with
      Section 3.6(c) of the Intercreditor Agreement by reason of the downgrading
      of the short-term  unsecured debt rating of the Liquidity  Provider issued
      by either  Rating  Agency below the  Threshold  Rating,  which  Advance is
      requested to be made on __________,  ____. The Downgrade Advance should be
      transferred  to [name of  bank/wire  instructions/ABA  number] in favor of
      account number [ ], reference [ ].

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

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

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


<PAGE>

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

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

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


                                    By:_____________________________________
                                       Name:
                                       Title:


<PAGE>


               SCHEDULE I TO DOWNGRADE ADVANCE NOTICE OF BORROWING

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



<PAGE>

                                                                     Annex IV to
                                                      Revolving Credit Agreement


                        FINAL ADVANCE NOTICE OF BORROWING

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

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

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

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

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

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

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


<PAGE>


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

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

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


                                    By:_____________________________________
                                       Name:
                                       Title:



<PAGE>

                 SCHEDULE I TO FINAL ADVANCE NOTICE OF BORROWING

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



<PAGE>

                                                                      Annex V to
                                                      Revolving Credit Agreement

                              NOTICE OF TERMINATION

                                          [Date]

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

Attention:  Corporate Trust Administration

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

Ladies and Gentlemen:

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



<PAGE>


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

                                   Very truly yours,

                                   Credit Suisse First Boston,
                                      New York branch
                                      as Liquidity Provider


                                   By:____________________________________
                                      Name:
                                      Title:

                                   By:____________________________________
                                      Name:
                                      Title:

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



<PAGE>

                                                                     Annex VI to
                                                      Revolving Credit Agreement


                    NOTICE OF REPLACEMENT SUBORDINATION AGENT


[Date]
Attention:

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

Ladies and Gentlemen:

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

                        ------------------------------
                              [Name of Transferee]


                        ------------------------------
                             [Address of Transferee]

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

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



<PAGE>

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

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


                                    By:_____________________________________
                                       Name:
                                       Title:




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




                           REVOLVING CREDIT AGREEMENT
                                   (2000-1A-2)


                           DATED AS OF MARCH 15, 2000

                                     BETWEEN

                            WILMINGTON TRUST COMPANY,

                             AS SUBORDINATION AGENT,
                          AS AGENT AND TRUSTEE FOR THE
                CONTINENTAL AIRLINES PASS THROUGH TRUST 2000-1A-2

                                   AS BORROWER

                                       AND

                 CREDIT SUISSE FIRST BOSTON, NEW YORK BRANCH

                              AS LIQUIDITY PROVIDER



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




                                   RELATING TO

              CONTINENTAL AIRLINES PASS THROUGH TRUST 2000-1A-2
            7.918% CONTINENTAL AIRLINES PASS THROUGH CERTIFICATES,
                                SERIES 2000-1A-2


<PAGE>

                                TABLE OF CONTENTS

                                                                           PAGE
                                                                           ----

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

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

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

ARTICLE IV  CONDITIONS PRECEDENT............................................18
   Section 4.01. Conditions Precedent to Effectiveness of Section 2.01......18
   Section 4.02. Conditions Precedent to Borrowing..........................19

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

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

ARTICLE VII  MISCELLANEOUS..................................................21
   Section 7.01. Amendments, Etc............................................21
   Section 7.02. Notices, Etc...............................................21
   Section 7.03. No Waiver; Remedies........................................21
   Section 7.04. Further Assurances.........................................22


<PAGE>
                                                                          PAGE
                                                                          ----

   Section 7.05. Indemnification; Survival of Certain Provisions............22
   Section 7.06. Liability of the Liquidity Provider........................22
   Section 7.07. Costs, Expenses and Taxes..................................23
   Section 7.08. Binding Effect; Participations.............................23
   Section 7.09. Severability...............................................25
   Section 7.10. GOVERNING LAW..............................................25
   Section 7.11. Submission to Jurisdiction; Waiver of Jury Trial;
                 Waiver of Immunity.........................................25
   Section 7.12. Execution in Counterparts..................................26
   Section 7.13. Entirety...................................................26
   Section 7.14. Headings...................................................26
   Section 7.15. Transfer...................................................26
   Section 7.16. LIQUIDITY PROVIDER'S OBLIGATION TO MAKE ADVANCES...........26
   Section 7.17. Head Office Obligation.....................................26


ANNEX I          Interest Advance Notice of Borrowing

ANNEX II         Non-Extension Advance Notice of Borrowing

ANNEX III        Downgrade Advance Notice of Borrowing

ANNEX IV         Final Advance Notice of Borrowing

ANNEX V          Notice of Termination

ANNEX VI         Notice of Replacement Subordination Agent


<PAGE>

                     REVOLVING CREDIT AGREEMENT (2000-1A-2)

This REVOLVING CREDIT AGREEMENT  (2000-1A-2) dated as of March 15, 2000, between
WILMINGTON TRUST COMPANY, a Delaware corporation, not in its individual capacity
but solely as  Subordination  Agent under the  Intercreditor  Agreement (each as
defined below),  as agent and trustee for the Class A-2 Trust (as defined below)
(the  "BORROWER"),  and  CREDIT  SUISSE  FIRST  BOSTON,  a  banking  institution
organized under the laws of Switzerland, acting through its New York branch (the
"LIQUIDITY PROVIDER").

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

            WHEREAS,  pursuant to the Class A-2 Trust  Agreement  (such term and
all other capitalized terms used in these recitals having the meanings set forth
or  referred to in Section  1.01),  the Class A-2 Trust is issuing the Class A-2
Certificates; and

            WHEREAS,  the Borrower,  in order to support the timely payment of a
portion of the interest on the Class A-2  Certificates  in accordance with their
terms,  has  requested  the  Liquidity  Provider  to enter into this  Agreement,
providing in part for the Borrower to request in  specified  circumstances  that
Advances be made hereunder.

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


                                    ARTICLE I

                                   DEFINITIONS

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

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

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

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

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

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



<PAGE>

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

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

            "ASSIGNMENT  AND  ASSUMPTION  AGREEMENT"  means the  Assignment  and
      Assumption  to be entered into between the Borrower and the trustee of the
      Successor  Trust,  substantially  in the form of  Exhibit  C to the  Trust
      Supplement No. 2000-1A-2-O,  dated as of the date hereof,  relating to the
      Class A-2 Trust.

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

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

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

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

            "BUSINESS  DAY" means any day other  than a Saturday  or Sunday or a
      day on which  commercial  banks are  required  or  authorized  to close in
      Houston,  Texas,  New  York,  New  York  or,  so  long  as any  Class  A-2
      Certificate  is  outstanding,  the city and  state in which  the Class A-2
      Trustee,  the Borrower or any Loan Trustee  maintains its Corporate  Trust
      Office or receives or disburses funds, and, if the applicable Business Day
      relates to any Advance or other amount bearing interest based on the LIBOR
      Rate, on which dealings are carried on in the London interbank market.

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

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

            "DEPOSIT AGREEMENT" means the Deposit Agreement dated as of the date
      hereof between First Security Bank, National Association, as Escrow Agent,
      Credit Suisse First Boston, New York branch, as Depositary,  pertaining to
      the  Class  A-2  Certificates,  as the same may be  amended,  modified  or
      supplemented from time to time in accordance with the terms thereof.



<PAGE>

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

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

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

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

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

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

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

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

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

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

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



<PAGE>

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

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

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

            (i)   the  period  beginning  on the third  Business  Day  following
                  either (x) the Liquidity  Provider's  receipt of the Notice of
                  Borrowing  for such  LIBOR  Advance or (y) the  withdrawal  of
                  funds  from the  Class  A-2 Cash  Collateral  Account  for the
                  purpose of paying  interest on the Class A-2  Certificates  as
                  contemplated  by Section  2.06(a)  hereof and, in either case,
                  ending on the next Regular Distribution Date; and

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

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

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

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

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

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


<PAGE>

                  principal  amount of the LIBOR  Advance to which such Interest
                  Period  is to  apply  and  for a  period  comparable  to  such
                  Interest Period.

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

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

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

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

            "MAXIMUM COMMITMENT" means initially  $15,189,643.10 as the same may
      be reduced from time to time in accordance with Section 2.04(a).

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

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

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

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

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

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

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

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

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



<PAGE>

            "REQUIRED  AMOUNT"  means,  for any  day,  the sum of the  aggregate
      amount of interest,  calculated  at the rate per annum equal to the Stated
      Interest Rate for the Class A-2 Certificates, that would be payable on the
      Class A-2 Certificates on each of the three successive  semiannual Regular
      Distribution  Dates  immediately  following  such day or, if such day is a
      Regular  Distribution  Date, on such day and the succeeding two semiannual
      Regular  Distribution  Dates,  in each case calculated on the basis of the
      Pool Balance of the Class A-2  Certificates on such day and without regard
      to expected future payments of principal on the Class A-2 Certificates.

            "SUCCESSOR  TRUST" means  Continental  Airlines  Pass Through  Trust
      2000-1A-2-S.

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

            "TERMINATION DATE" means the earliest to occur of the following: (i)
      the  Expiry  Date;  (ii) the date on which the  Borrower  delivers  to the
      Liquidity Provider a certificate,  signed by a Responsible  Officer of the
      Borrower, certifying that all of the Class A-2 Certificates have been paid
      in full (or provision  has been made for such payment in  accordance  with
      the Intercreditor  Agreement and the Trust Agreements) or are otherwise no
      longer entitled to the benefits of this Agreement; (iii) the date on which
      the Borrower delivers to the Liquidity Provider a certificate, signed by a
      Responsible  Officer  of  the  Borrower,  certifying  that  a  Replacement
      Liquidity  Facility  has  been  substituted  for  this  Agreement  in full
      pursuant to Section 3.6(e) of the Intercreditor Agreement;  (iv) the fifth
      Business Day following the receipt by the Borrower of a Termination Notice
      from the Liquidity  Provider pursuant to Section 6.01 hereof;  and (v) the
      date on which no Advance is or may  (including by reason of  reinstatement
      as herein provided) become available for a Borrowing hereunder.

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

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

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

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

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

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

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



<PAGE>

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

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


                                   ARTICLE II

                       AMOUNT AND TERMS OF THE COMMITMENT

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

            Section 2.02.  MAKING THE ADVANCES.  (a) Interest  Advances shall be
made in one or more  Borrowings by delivery to the Liquidity  Provider of one or
more written and  completed  Notices of Borrowing in  substantially  the form of
Annex I attached hereto,  signed by a Responsible Officer of the Borrower, in an
amount not exceeding the Maximum Available  Commitment at such time and shall be
used solely for the payment  when due of interest on the Class A-2  Certificates
at the Stated  Interest Rate therefor in accordance  with Section  3.6(a) of the
Intercreditor   Agreement.   Each   Interest   Advance  made   hereunder   shall
automatically  reduce the Maximum Available  Commitment and the amount available
to be borrowed  hereunder by subsequent  Advances by the amount of such Interest
Advance  (subject  to  reinstatement  as provided  in the next  sentence).  Upon
repayment  to the  Liquidity  Provider  in full of the  amount  of any  Interest
Advance made pursuant to this Section  2.02(a),  together with accrued  interest
thereon  (as  provided  herein),  the  Maximum  Available  Commitment  shall  be
reinstated by the amount of such repaid Interest Advance,  but not to exceed the


<PAGE>

Maximum Commitment;  PROVIDED,  HOWEVER,  that the Maximum Available  Commitment
shall not be so reinstated at any time if (i) a Liquidity Event of Default shall
have occurred and be continuing and (ii) there is a Performing Note Deficiency.

            (b)   A Non-Extension Advance shall be made in a single Borrowing if
this  Agreement  is not  extended  in  accordance  with  Section  3.6(d)  of the
Intercreditor Agreement (unless a Replacement Liquidity Facility to replace this
Agreement  shall have been  delivered  to the Borrower as  contemplated  by said
Section 3.6(d) within the time period  specified in such Section) by delivery to
the  Liquidity  Provider  of a written  and  completed  Notice of  Borrowing  in
substantially  the form of Annex II  attached  hereto,  signed by a  Responsible
Officer of the Borrower,  in an amount equal to the Maximum Available Commitment
at such time, and shall be used to fund the Class A-2 Cash Collateral Account in
accordance  with said  Section  3.6(d) and Section  3.6(f) of the  Intercreditor
Agreement.

            (c)   A Downgrade Advance shall be made in a single Borrowing upon a
downgrading of the Liquidity Provider's  short-term unsecured debt rating issued
by either Rating Agency below the applicable  Threshold  Rating (as provided for
in Section 3.6(c) of the Intercreditor Agreement) unless a Replacement Liquidity
Facility to replace this Agreement shall have been  previously  delivered to the
Borrower in accordance  with said Section  3.6(c),  by delivery to the Liquidity
Provider of a written and  completed  Notice of Borrowing in  substantially  the
form of Annex III  attached  hereto,  signed  by a  Responsible  Officer  of the
Borrower,  in an amount equal to the Maximum Available  Commitment at such time,
and shall be used to fund the Class A-2 Cash  Collateral  Account in  accordance
with said Section 3.6(c) and Section 3.6(f) of the Intercreditor Agreement.

            (d)   A Final Advance shall be made in a single  Borrowing  upon the
receipt by the  Borrower of a  Termination  Notice from the  Liquidity  Provider
pursuant  to Section  6.01 hereof by  delivery  to the  Liquidity  Provider of a
written and completed Notice of Borrowing in substantially  the form of Annex IV
attached hereto,  signed by a Responsible Officer of the Borrower,  in an amount
equal to the Maximum  Available  Commitment  at such time,  and shall be used to
fund the Class A-2 Cash  Collateral  Account (in accordance with Sections 3.6(f)
and 3.6(i) of the Intercreditor Agreement).

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


<PAGE>

immediately available funds, before 12:00 Noon (New York City time) on the first
Business Day next following the day of receipt of such Notice of Borrowing or on
such later  Business Day  specified by the Borrower in such Notice of Borrowing.
Payments  of  proceeds  of a  Borrowing  shall  be  made  by  wire  transfer  of
immediately  available  funds to the  Borrower  in  accordance  with  such  wire
transfer  instructions  as the Borrower  shall  furnish from time to time to the
Liquidity  Provider  for  such  purpose.  Each  Notice  of  Borrowing  shall  be
irrevocable and binding on the Borrower.

            (f)   Upon the making of any Advance requested  pursuant to a Notice
of Borrowing,  in  accordance  with the  Borrower's  payment  instructions,  the
Liquidity  Provider shall be fully  discharged of its obligation  hereunder with
respect  to such  Notice of  Borrowing,  and the  Liquidity  Provider  shall not
thereafter  be  obligated to make any further  Advances  hereunder in respect of
such  Notice  of  Borrowing  to the  Borrower  or to any  other  Person.  If the
Liquidity  Provider makes an Advance requested pursuant to a Notice of Borrowing
before 12:00 Noon (New York City time) on the second Business Day after the date
of payment specified in said Section 2.02(e),  the Liquidity Provider shall have
fully  discharged its obligations  hereunder with respect to such Advance and an
event of default shall not have occurred hereunder.  Following the making of any
Advance  pursuant  to Section  2.02(b),  (c) or (d) hereof to fund the Class A-2
Cash  Collateral  Account,  the Liquidity  Provider shall have no interest in or
rights to the Class  A-2 Cash  Collateral  Account,  such  Advance  or any other
amounts from time to time on deposit in the Class A-2 Cash  Collateral  Account;
PROVIDED that the foregoing  shall not affect or impair the  obligations  of the
Subordination Agent to make the distributions  contemplated by Section 3.6(e) or
(f) of the Intercreditor  Agreement,  and provided  further,  that the foregoing
shall not  affect or impair  the  rights of the  Liquidity  Provider  to provide
written  instructions with respect to the investment and reinvestment of amounts
in the Cash Collateral  Accounts to the extent provided in Section 2.2(b) of the
Intercreditor  Agreement.  By  paying  to  the  Borrower  proceeds  of  Advances
requested by the Borrower in accordance  with the provisions of this  Agreement,
the  Liquidity   Provider  makes  no   representation  as  to,  and  assumes  no
responsibility for, the correctness or sufficiency for any purpose of the amount
of the Advances so made and requested.

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

            Section 2.04. REDUCTIONS OR TERMINATION OF THE MAXIMUM COMMITMENT.

            (a)   AUTOMATIC REDUCTION. Promptly following each date on which the
Required Amount is reduced as a result of a reduction in the Pool Balance of the
Class A-2 Certificates or otherwise,  the Maximum Commitment shall automatically
be reduced to an amount equal to such reduced  Required Amount (as calculated by
the Borrower); PROVIDED that on the first Regular Distribution Date, the Maximum
Commitment  shall  automatically  be reduced to the then  Required  Amount.  The
Borrower  shall  give  notice of any such  automatic  reduction  of the  Maximum
Commitment to the  Liquidity  Provider  within two Business  Days  thereof.  The
failure  by the  Borrower  to furnish  any such  notice  shall not  affect  such
automatic reduction of the Maximum Commitment.

            (b)   TERMINATION.  Upon the making of any Provider Advance or Final
Advance  hereunder or the occurrence of the Termination  Date, the obligation of


<PAGE>

the Liquidity  Provider to make further Advances  hereunder shall  automatically
and irrevocably terminate, and the Borrower shall not be entitled to request any
further Borrowing hereunder.

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

            Section 2.06. REPAYMENTS OF PROVIDER ADVANCES.  (a) Amounts advanced
hereunder in respect of a Provider  Advance  shall be deposited in the Class A-2
Cash  Collateral  Account,  invested  and  withdrawn  from  the  Class  A-2 Cash
Collateral  Account  as  set  forth  in  Sections  3.6(c),  (d)  and  (f) of the
Intercreditor  Agreement.  The Borrower agrees to pay to the Liquidity Provider,
on each Regular Distribution Date,  commencing on the first Regular Distribution
Date after the making of a Provider Advance, interest on the principal amount of
any such Provider Advance as provided in Section 3.07; PROVIDED,  HOWEVER,  that
amounts  in  respect of a  Provider  Advance  withdrawn  from the Class A-2 Cash
Collateral  Account  for  the  purpose  of  paying  interest  on the  Class  A-2
Certificates  in accordance with Section 3.6(f) of the  Intercreditor  Agreement
(the amount of any such withdrawal being (y) in the case of a Downgrade Advance,
an "APPLIED DOWNGRADE  ADVANCE" and (z) in the case of a Non-Extension  Advance,
an "APPLIED  NON-EXTENSION  ADVANCE"  and,  together  with an Applied  Downgrade
Advance,  an "APPLIED  PROVIDER  ADVANCE") shall thereafter  (subject to Section
2.06(b)) be treated as an Interest  Advance under this Agreement for purposes of
determining the Applicable Liquidity Rate for interest payable thereon; PROVIDED
FURTHER,  HOWEVER,  that if,  following  the making of a Provider  Advance,  the
Liquidity  Provider  delivers a Termination  Notice to the Borrower  pursuant to
Section 6.01 hereof,  such  Provider  Advance  shall  thereafter be treated as a
Final Advance under this  Agreement for purposes of  determining  the Applicable
Liquidity Rate for interest payable  thereon.  Subject to Sections 2.07 and 2.09
hereof,  immediately  upon the withdrawal of any amounts from the Class A-2 Cash
Collateral  Account  on account  of a  reduction  in the  Required  Amount,  the
Borrower  shall  repay to the  Liquidity  Provider  a  portion  of the  Provider


<PAGE>

Advances in a principal  amount equal to such  reduction,  plus  interest on the
principal amount prepaid as provided in Section 3.07 hereof.

            (b)   At any time when an Applied  Provider  Advance (or any portion
thereof)  is  outstanding,  upon the  deposit  in the Class A-2 Cash  Collateral
Account  of any amount  pursuant  to clause  "THIRD"  of  Section  2.4(b) of the
Intercreditor  Agreement,  clause  "THIRD" of Section  3.2 of the  Intercreditor
Agreement or clause "FOURTH" of Section 3.3 of the Intercreditor  Agreement (any
such amount being a  "REPLENISHMENT  AMOUNT") for the purpose of replenishing or
increasing the balance  thereof up to the Required  Amount at such time, (i) the
aggregate  outstanding principal amount of all Applied Provider Advances (and of
Provider Advances treated as an Interest Advance for purposes of determining the
Applicable  Liquidity Rate for interest  payable thereon) shall be automatically
reduced  by the  amount  of such  Replenishment  Amount  and (ii) the  aggregate
outstanding  principal  amount  of all  Unapplied  Provider  Advances  shall  be
automatically increased by the amount of such Replenishment Amount.

            (c)   Upon  the  provision of a  Replacement  Liquidity  Facility in
replacement  of  this  Agreement  in  accordance  with  Section  3.6(e)  of  the
Intercreditor  Agreement,  amounts  remaining  on  deposit in the Class A-2 Cash
Collateral  Account after giving effect to any Applied  Provider  Advance on the
date of such replacement shall be reimbursed to the Liquidity Provider, but only
to the extent  such  amounts  are  necessary  to repay in full to the  Liquidity
Provider all amounts owing to it hereunder.

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

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

            Section 2.09. PAYMENTS FROM AVAILABLE FUNDS ONLY. All payments to be
made by the Borrower  under this  Agreement  shall be made only from the amounts
that constitute  Scheduled Payments,  Special Payments or payments under Section
8.1 of the  Participation  Agreements with respect to Owned  Aircraft,  payments
under  Section  9.1 of the  Participation  Agreements  with  respect  to  Leased
Aircraft and payments under Section 6 of the Note Purchase Agreement and only to
the extent that the Borrower shall have sufficient income or proceeds  therefrom


<PAGE>

to enable the  Borrower to make  payments in  accordance  with the terms  hereof
after  giving  effect to the  priority of payments  provisions  set forth in the
Intercreditor  Agreement. The Liquidity Provider agrees that it will look solely
to such amounts to the extent  available for  distribution  to it as provided in
the  Intercreditor  Agreement and this  Agreement and that the Borrower,  in its
individual  capacity,  is not personally liable to it for any amounts payable or
liability under this Agreement  except as expressly  provided in this Agreement,
the Intercreditor Agreement or any Participation  Agreement.  Amounts on deposit
in the Class A-2 Cash  Collateral  Account shall be available to the Borrower to
make  payments  under this  Agreement  only to the  extent and for the  purposes
expressly contemplated in Section 3.6(f) of the Intercreditor Agreement.

            Section 2.10. EXTENSION OF THE EXPIRY DATE;  NON-EXTENSION  ADVANCE.
The Borrower may, from time to time, by notice to the Liquidity  Provider  (each
such notice  being an  "EXTENSION  NOTICE")  given no later than 40th day and no
earlier than the 60th day prior to the then applicable  Expiry Date,  request an
extension  of the  Expiry  Date to the  earlier of (i) the date which is 15 days
after the Final Legal  Distribution Date for the Class A-2 Certificates and (ii)
the date that is the day immediately preceding the 364th day occurring after the
last day of the  Consent  Period (as  hereinafter  defined).  Whether or not the
Liquidity  Provider  has received a request from the  Borrower,  such  Liquidity
Provider may, but shall not be obligated to, by a notice (a "CONSENT NOTICE") to
the  Borrower,  given during the period  commencing  on the date that is 60 days
prior to the  Expiry  Date then in effect and ending on the date that is 25 days
prior to the  Expiry  Date  then in effect  for such  Liquidity  Facility  (such
period, with respect to such Liquidity Facility, the "CONSENT PERIOD"),  consent
to such extension of the Expiry Date,  which consent may be given or withheld by
the Liquidity Provider in its absolute and sole discretion;  PROVIDED,  HOWEVER,
that such  extension  shall  not be  effective  with  respect  to the  Liquidity
Provider  if by a notice (a  "WITHDRAWAL  NOTICE")  to the  Borrower  during the
Consent  Period  the  Liquidity  Provider  revokes  its  Consent  Notice.  If  a
Withdrawal Notice has been given during the applicable  Consent Period or if the
Liquidity  Provider shall not have delivered a Consent Notice within the Consent
Period  (and,  in each  case,  if the  Liquidity  Provider  shall  not have been
replaced in accordance with Section 3.6(e) of the Intercreditor Agreement),  the
Borrower  shall be entitled  on and after the date on which the  Consent  Period
ends (but prior to the then  effective  Expiry Date) to request a  Non-Extension
Advance in  accordance  with Section  2.02(b)  hereof and Section  3.6(d) of the
Intercreditor Agreement.


                                   ARTICLE III

                           OBLIGATIONS OF THE BORROWER

            Section  3.01.  INCREASED  COSTS.  The  Borrower  shall  pay  to the
Liquidity  Provider  from  time to time  such  amounts  as may be  necessary  to
compensate  the  Liquidity  Provider  for any  increased  costs  incurred by the
Liquidity  Provider (or its head office) which are attributable to its making or
maintaining  any LIBOR  Advances  hereunder or its  obligation  to make any such
Advances  hereunder,  or any reduction in any amount receivable by the Liquidity
Provider under this Agreement or the  Intercreditor  Agreement in respect of any
such  Advances or such  obligation  (such  increases in costs and  reductions in


<PAGE>

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

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

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

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


<PAGE>

compensate the Liquidity  Provider for such portion of such increase as shall be
reasonably  allocable to the Liquidity  Provider's  obligations  to the Borrower
hereunder.  The Liquidity Provider agrees to use reasonable efforts  (consistent
with applicable legal and regulatory restrictions) to change the jurisdiction of
its  Facility  Office if making such change  would avoid the need for, or reduce
the amount of, any amount payable under this Section that may thereafter  accrue
and  would  not,  in the  reasonable  judgment  of the  Liquidity  Provider,  be
otherwise materially disadvantageous to the Liquidity Provider.

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

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

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

            (b)   All payments (including, without limitation, Advances) made by
the Liquidity Provider under this Agreement shall be made free and clear of, and
without  reduction for or on account of, any Taxes. If any Taxes are required to
be withheld or deducted  from any  amounts  payable to the  Borrower  under this
Agreement,  the Liquidity Provider shall (i) within the time prescribed therefor


<PAGE>

by applicable law pay to the appropriate  governmental  or taxing  authority the
full  amount of any such  Taxes  (and any  additional  Taxes in  respect  of the
additional  amounts  payable  under clause (ii) hereof) and make such reports or
returns  in  connection  therewith  at the  time  or  times  and  in the  manner
prescribed by applicable law, and (ii) pay to the Borrower an additional  amount
which  (after  deduction of all such Taxes) will be  sufficient  to yield to the
Borrower  the full  amount  which  would  have been  received  by it had no such
withholding  or  deduction  been  made.  Within  30 days  after the date of each
payment  hereunder,  the  Liquidity  Provider  shall furnish to the Borrower the
original or a certified copy of (or other  documentary  evidence of) the payment
of the Taxes applicable to such payment.

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

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

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

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

            Section 3.07.  INTEREST.  (a) Subject to Section 2.09,  the Borrower
shall pay, or shall cause to be paid, without  duplication,  interest on (i) the
unpaid  principal  amount of each  Advance from and  including  the date of such
Advance (or, in the case of an Applied Provider Advance,  from and including the
date on  which  the  amount  thereof  was  withdrawn  from  the  Class  A-2 Cash
Collateral  Account  to pay  interest  on the  Class  A-2  Certificates)  to but
excluding the date such principal  amount shall be paid in full (or, in the case
of an Applied Provider Advance,  the date on which the Class A-2 Cash Collateral
Account is fully  replenished  in respect  of such  Advance)  and (ii) any other


<PAGE>

amount due hereunder (whether fees,  commissions,  expenses or other amounts or,
to the extent permitted by law, installments of interest on Advances or any such
other  amount)  which is not paid  when due  (whether  at  stated  maturity,  by
acceleration  or  otherwise)  from and  including  the due date  thereof  to but
excluding  the  date  such  amount  is paid in full,  in each  such  case,  at a
fluctuating  interest  rate  per  annum  for each  day  equal to the  Applicable
Liquidity  Rate (as defined  below) for such  Advance or such other amount as in
effect  for such  day,  but in no event at a rate  per  annum  greater  than the
maximum rate permitted by applicable  law;  PROVIDED,  HOWEVER,  that, if at any
time the  otherwise  applicable  interest rate as set forth in this Section 3.07
shall exceed the maximum rate  permitted by applicable  law, then any subsequent
reduction  in such  interest  rate will not reduce the rate of interest  payable
pursuant to this Section 3.07 below the maximum rate permitted by applicable law
until the total amount of interest  accrued  equals the amount of interest  that
would have accrued if such  otherwise  applicable  interest rate as set forth in
this Section 3.07 had at all times been in effect.

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

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

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

            (e)   Each  outstanding  Unapplied  Non-Extension Advance shall bear
interest in an amount equal to the Investment  Earnings on amounts on deposit in
the  Class A-2 Cash  Collateral  Account  plus the  Applicable  Margin  for such


<PAGE>

Unapplied  Non-Extension  Advance on the amount of such Unapplied  Non-Extension
Advance from time to time, payable in arrears on each Regular Distribution Date.

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

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

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

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

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

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

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




<PAGE>

                                   ARTICLE IV

                              CONDITIONS PRECEDENT

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

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

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

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

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

                  (iv) A copy of the Prospectus  Supplement and specimen  copies
            of the Class A-2 Certificates;

                  (v) An executed copy of each document, instrument, certificate
            and opinion  delivered on or before the Closing Date pursuant to the
            Class A-2 Trust Agreement, the Intercreditor Agreement and the other
            Operative  Agreements (in the case of each such opinion,  other than
            the opinion of counsel for the Underwriters, either addressed to the
            Liquidity  Provider  or  accompanied  by a letter  from the  counsel
            rendering such opinion to the effect that the Liquidity  Provider is
            entitled  to  rely  on  such  opinion  as of its  date as if it were
            addressed to the Liquidity Provider);

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

                  (vii) An  agreement  from  Continental,  pursuant to which (i)
            Continental   agrees  to  provide  copies  of  quarterly   financial
            statements and audited annual financial  statements to the Liquidity
            Provider, and such other information as the Liquidity Provider shall
            reasonably request with respect to the transactions  contemplated by
            the  Operative  Agreements,  in each case,  only to the extent  that


<PAGE>

            Continental  is obligated to provide  such  information  pursuant to
            Section  8.2.1 of the Leases  (related  to Leased  Aircraft)  or the
            corresponding  section of the Indentures (related to Owned Aircraft)
            to the  parties  thereto  and (ii)  Continental  agrees to allow the
            Liquidity  Provider  to  inspect  Continental's  books  and  records
            regarding such  transactions,  and to discuss such transactions with
            officers and employees of Continental; and

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

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

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

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

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

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


                                    ARTICLE V

                                    COVENANTS

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



<PAGE>

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

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

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

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


                                   ARTICLE VI

                           LIQUIDITY EVENTS OF DEFAULT

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




<PAGE>

                                   ARTICLE VII

                                  MISCELLANEOUS

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

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

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

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

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

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

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

            Section  7.03.  NO WAIVER;  REMEDIES.  No failure on the part of the
Liquidity Provider to exercise, and no delay in exercising, any right under this
Agreement  shall  operate as a waiver  thereof;  nor shall any single or partial
exercise  of any right  under  this  Agreement  preclude  any  other or  further


<PAGE>

exercise  thereof  or the  exercise  of any other  right.  The  remedies  herein
provided are cumulative and not exclusive of any remedies provided by law.

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

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

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


<PAGE>

Agreement,  including,  but not limited to, the Liquidity  Provider's failure to
make lawful  payment  hereunder  after the  delivery to it by the  Borrower of a
Notice of Borrowing strictly complying with the terms and conditions hereof.

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

            Section 7.07. COSTS, EXPENSES AND TAXES. The Borrower agrees to pay,
or cause to be paid (A) on the Effective Date and on such later date or dates on
which the Liquidity  Provider shall make demand,  all  reasonable  out-of-pocket
costs and expenses  (including,  without  limitation,  the  reasonable  fees and
expenses  of  outside  counsel  for the  Liquidity  Provider)  of the  Liquidity
Provider in connection with the preparation,  negotiation,  execution, delivery,
filing and recording of this Agreement,  any other  Operative  Agreement and any
other documents which may be delivered in connection with this Agreement and (B)
on demand, all reasonable costs and expenses (including  reasonable counsel fees
and expenses) of the Liquidity  Provider in connection  with (i) the enforcement
of this Agreement or any other  Operative  Agreement,  (ii) the  modification or
amendment of, or supplement to, this Agreement or any other Operative  Agreement
or such  other  documents  which may be  delivered  in  connection  herewith  or
therewith  (whether or not the same shall become  effective) or (iii) any action
or  proceeding  relating to any order,  injunction,  or other  process or decree
restraining or seeking to restrain the Liquidity Provider from paying any amount
under  this  Agreement,  the  Intercreditor  Agreement  or any  other  Operative
Agreement or otherwise  affecting the application of funds in the Class A-2 Cash
Collateral Account.  In addition,  the Borrower shall pay any and all recording,
stamp and other  similar  taxes and fees payable or  determined to be payable in
connection with the execution, delivery, filing and recording of this Agreement,
any other Operative  Agreement and such other documents,  and agrees to save the
Liquidity  Provider  harmless  from and  against  any and all  liabilities  with
respect to or  resulting  from any delay in paying or omission to pay such taxes
or fees.

            Section 7.08.  BINDING  EFFECT;  PARTICIPATIONS.  (a) This Agreement
shall be binding upon and inure to the benefit of the Borrower and the Liquidity
Provider and their  respective  successors and assigns,  except that neither the
Liquidity  Provider  (except as  otherwise  provided in this  Section  7.08) nor
(except as  contemplated  by Section 3.08) the Borrower  shall have the right to
assign its rights or  obligations  hereunder or any interest  herein without the
prior written consent of the other party, subject to the requirements of Section
7.08(b). The Liquidity Provider may grant participations herein or in any of its
rights hereunder  (including,  without  limitation,  funded  participations  and
participations in rights to receive interest  payments  hereunder) and under the
other  Operative  Agreements  to such Persons  (other than  Continental  and its
Affiliates) as the Liquidity Provider may in its sole discretion select, subject
to the requirements of Section 7.08(b).  No such granting of  participations  by


<PAGE>

the Liquidity  Provider,  however,  will relieve the  Liquidity  Provider of its
obligations  hereunder.  In connection  with any  participation  or any proposed
participation,  the Liquidity  Provider may disclose to the  participant  or the
proposed participant any information that the Borrower is required to deliver or
to disclose to the Liquidity  Provider pursuant to this Agreement.  The Borrower
acknowledges and agrees that the Liquidity Provider's source of funds may derive
in part from its participants. Accordingly, references in this Agreement and the
other  Operative  Agreements  to  determinations,  reserve and capital  adequacy
requirements, increased costs, reduced receipts, additional amounts due pursuant
to Section 3.03 and the like as they pertain to the Liquidity  Provider shall be
deemed  also to  include  those  of  each of its  participants  that  are  banks
(subject,  in each case, to the maximum  amount that would have been incurred by
or attributable to the Liquidity  Provider  directly if the Liquidity  Provider,
rather than the participant, had held the interest participated).

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

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



<PAGE>

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

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

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

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

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

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

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

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



<PAGE>

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

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

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

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

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

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

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


<PAGE>

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

                                   WILMINGTON TRUST COMPANY,
                                       not in its  individual  capacity but
                                       solely as  Subordination  Agent,  as
                                       agent and  trustee for the Class A-2
                                       Trust, as Borrower


                                   By:______________________________________
                                      Name:
                                      Title:


                                   CREDIT SUISSE FIRST BOSTON,
                                     NEW YORK BRANCH
                                   as Liquidity Provider


                                   By:______________________________________
                                      Name:
                                      Title:


                                   By:______________________________________
                                      Name:
                                      Title:



<PAGE>

                                                                      Annex I to
                                                      Revolving Credit Agreement


                      INTEREST ADVANCE NOTICE OF BORROWING

            The  undersigned,  a duly  authorized  signatory of the  undersigned
borrower (the "BORROWER"),  hereby certifies to Credit Suisse First Boston,  New
York branch (the "LIQUIDITY  PROVIDER"),  with reference to the Revolving Credit
Agreement  (2000-1A-2) dated as of March 15, 2000,  between the Borrower and the
Liquidity Provider (the "LIQUIDITY AGREEMENT"; the terms defined therein and not
otherwise  defined herein being used herein as therein  defined or  referenced),
that:

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

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

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

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

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


<PAGE>

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

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


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


                                   By:_______________________________________
                                      Name:
                                      Title:



<PAGE>


               SCHEDULE I TO INTEREST ADVANCE NOTICE OF BORROWING

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



<PAGE>

                                                                     Annex II to
                                                      Revolving Credit Agreement


                    NON-EXTENSION ADVANCE NOTICE OF BORROWING

            The  undersigned,  a duly  authorized  signatory of the  undersigned
borrower (the "BORROWER"),  hereby certifies to Credit Suisse First Boston,  New
York branch (the "LIQUIDITY  PROVIDER"),  with reference to the Revolving Credit
Agreement  (2000-1A-2) dated as of March 15, 2000,  between the Borrower and the
Liquidity Provider (the "LIQUIDITY AGREEMENT"; the terms defined therein and not
otherwise  defined herein being used herein as therein  defined or  referenced),
that:

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

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

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

            (4) Upon  receipt  by or on behalf  of the  Borrower  of the  amount
      requested  hereby,  (a) the Borrower will deposit such amount in the Class
      A-2 Cash  Collateral  Account  and apply the same in  accordance  with the
      terms of Section 3.6(d) of the Intercreditor  Agreement, (b) no portion of
      such amount shall be applied by the Borrower for any other purpose and (c)
      no portion of such amount until so applied shall be commingled  with other
      funds held by the Borrower.

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



<PAGE>

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


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


                                   By:_______________________________________
                                      Name:
                                      Title:


<PAGE>


             SCHEDULE I TO NON-EXTENSION ADVANCE NOTICE OF BORROWING

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



<PAGE>

                                                                    Annex III to
                                                      Revolving Credit Agreement


                      DOWNGRADE ADVANCE NOTICE OF BORROWING

            The  undersigned,  a duly  authorized  signatory of the  undersigned
borrower (the "BORROWER"),  hereby certifies to Credit Suisse First Boston,  New
York branch (the "LIQUIDITY  PROVIDER"),  with reference to the Revolving Credit
Agreement  (2000-1A-2) dated as of March 15, 2000,  between the Borrower and the
Liquidity Provider (the "LIQUIDITY AGREEMENT"; the terms defined therein and not
otherwise  defined herein being used herein as therein  defined or  referenced),
that:

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

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

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

            (4) Upon  receipt  by or on behalf  of the  Borrower  of the  amount
      requested  hereby,  (a) the Borrower will deposit such amount in the Class
      A-2 Cash  Collateral  Account  and apply the same in  accordance  with the
      terms of Section 3.6(c) of the Intercreditor  Agreement, (b) no portion of
      such amount shall be applied by the Borrower for any other purpose and (c)
      no portion of such amount until so applied shall be commingled  with other
      funds held by the Borrower.



<PAGE>

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

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


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


                                   By:_______________________________________
                                      Name:
                                      Title:



<PAGE>


               SCHEDULE I TO DOWNGRADE ADVANCE NOTICE OF BORROWING

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



<PAGE>

                                                                     Annex IV to
                                                      Revolving Credit Agreement


                        FINAL ADVANCE NOTICE OF BORROWING

            The  undersigned,  a duly  authorized  signatory of the  undersigned
borrower (the "BORROWER"),  hereby certifies to Credit Suisse First Boston,  New
York branch (the "LIQUIDITY  PROVIDER"),  with reference to the Revolving Credit
Agreement  (2000-1A-2) dated as of March 15, 2000,  between the Borrower and the
Liquidity Provider (the "LIQUIDITY AGREEMENT"; the terms defined therein and not
otherwise  defined herein being used herein as therein  defined or  referenced),
that:

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

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

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

            (4) Upon  receipt  by or on behalf  of the  Borrower  of the  amount
      requested  hereby,  (a) the Borrower will deposit such amount in the Class
      A-2 Cash  Collateral  Account  and apply the same in  accordance  with the
      terms of Section 3.6(i) of the Intercreditor  Agreement, (b) no portion of
      such amount shall be applied by the Borrower for any other purpose and (c)
      no portion of such amount until so applied shall be commingled  with other
      funds held by the Borrower.



<PAGE>

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

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

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


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


                                   By:_______________________________________
                                      Name:
                                      Title:


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



<PAGE>

                 SCHEDULE I TO FINAL ADVANCE NOTICE OF BORROWING

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



<PAGE>


                                                                      Annex V to
                                                      Revolving Credit Agreement


                              NOTICE OF TERMINATION

                                          [Date]

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

Attention:  Corporate Trust Administration

      Revolving Credit  Agreement dated as of March 15, 2000 between  Wilmington
      Trust  Company,  as  Subordination  Agent,  as agent and  trustee  for the
      Continental Airlines Pass Through Trust, 2000-1A-2-[O/S], as Borrower, and
      Credit Suisse First Boston, New York branch (the "LIQUIDITY AGREEMENT")


Ladies and Gentlemen:

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



<PAGE>

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

                                   Very truly yours,


                                   Credit Suisse First Boston,
                                     New York branch
                                     as Liquidity Provider


                                   By:_______________________________________
                                      Name:
                                      Title:



                                   By:_______________________________________
                                      Name:
                                      Title:


cc:   Wilmington Trust Company,
      as Class A-2 Trustee


<PAGE>

                                                                     Annex VI to
                                                      Revolving Credit Agreement


                    NOTICE OF REPLACEMENT SUBORDINATION AGENT

[Date]
Attention:

      Revolving Credit Agreement dated as of March 15, 2000,  between Wilmington
      Trust  Company,  as  Subordination  Agent,  as agent and  trustee  for the
      Continental Airlines Pass Through Trust, 2000-1A-2-[O/S], as Borrower, and
      Credit Suisse First Boston, New York branch, (the "LIQUIDITY AGREEMENT")


Ladies and Gentlemen:

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

                          _____________________________
                              [Name of Transferee]


                          _____________________________
                             [Address of Transferee]

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

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



<PAGE>

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

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


                                   By:______________________________________
                                      Name:
                                      Title:












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



                           REVOLVING CREDIT AGREEMENT
                                    (2000-1B)


                           DATED AS OF MARCH 15, 2000

                                     BETWEEN

                            WILMINGTON TRUST COMPANY,

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

                                   AS BORROWER

                                       AND

                 CREDIT SUISSE FIRST BOSTON, NEW YORK BRANCH

                              AS LIQUIDITY PROVIDER


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


                                   RELATING TO

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


<PAGE>


                                TABLE OF CONTENTS

                                                                            PAGE


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

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

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

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

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

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

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


<PAGE>

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


ANNEX I   Interest Advance Notice of Borrowing

ANNEX II  Non-Extension Advance Notice of Borrowing

ANNEX III Downgrade Advance Notice of Borrowing

ANNEX IV  Final Advance Notice of Borrowing

ANNEX V   Notice of Termination

ANNEX VI  Notice of Replacement Subordination Agent



<PAGE>

                      REVOLVING CREDIT AGREEMENT (2000-1B)

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

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

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

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

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


                                    ARTICLE I

                                   DEFINITIONS

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

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

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

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

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


<PAGE>

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

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

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

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

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

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

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

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

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

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

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

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


<PAGE>

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

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

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

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

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

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

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

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

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

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

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


<PAGE>

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

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

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

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

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

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

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

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

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

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


<PAGE>

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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


<PAGE>

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

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

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

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

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

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

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

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

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

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

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

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

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


<PAGE>

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


                                   ARTICLE II

                       AMOUNT AND TERMS OF THE COMMITMENT

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

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

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


<PAGE>

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

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

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

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


<PAGE>

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

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

             Section 2.04. REDUCTIONS OR TERMINATION OF THE MAXIMUM COMMITMENT.

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

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

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


<PAGE>

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

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

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

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


<PAGE>

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

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

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

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

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


<PAGE>

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


                                   ARTICLE III

                           OBLIGATIONS OF THE BORROWER

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

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


<PAGE>

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

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

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

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

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

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


<PAGE>

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

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

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

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

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


<PAGE>

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

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

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

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


<PAGE>

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

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

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

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

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

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

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

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

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


<PAGE>

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

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


                                   ARTICLE IV

                              CONDITIONS PRECEDENT

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

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

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

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

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

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

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


<PAGE>

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

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

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

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

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

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

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

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

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


<PAGE>

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


                                    ARTICLE V

                                    COVENANTS

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

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

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

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

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


                                   ARTICLE VI

                           LIQUIDITY EVENTS OF DEFAULT

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


<PAGE>

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


                                   ARTICLE VII

                                  MISCELLANEOUS

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

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

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

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

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

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

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


<PAGE>

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

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

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

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

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


<PAGE>

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

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

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

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


<PAGE>

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

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

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


<PAGE>

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

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

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

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

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

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

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

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

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


<PAGE>

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

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

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

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

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

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

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



<PAGE>

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

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


                                    By:_________________________________________
                                      Name:
                                      Title:

 
                                    CREDIT SUISSE FIRST BOSTON,
                                       NEW YORK BRANCH
                                    as Liquidity Provider


                                    By:_________________________________________
                                       Name:
                                       Title:


                                    By:_________________________________________
                                       Name:
                                       Title:



<PAGE>


                                                                      Annex I to
                                                      Revolving Credit Agreement


                      INTEREST ADVANCE NOTICE OF BORROWING

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

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

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

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

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

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


<PAGE>

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

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


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


                                    By:_________________________________________
                                       Name:
                                       Title:





<PAGE>




              SCHEDULE I TO INTEREST ADVANCE NOTICE OF BORROWING


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



<PAGE>


                                                                     Annex II to
                                                      Revolving Credit Agreement



                  NON-EXTENSION ADVANCE NOTICE OF BORROWING

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

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

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

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

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

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


<PAGE>

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

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



                                    By:_________________________________________
                                       Name:
                                       Title:





<PAGE>




           SCHEDULE I TO NON-EXTENSION ADVANCE NOTICE OF BORROWING


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



<PAGE>


                                                                    Annex III to
                                                      Revolving Credit Agreement


                      DOWNGRADE ADVANCE NOTICE OF BORROWING

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

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

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

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

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

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


<PAGE>

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

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

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


                                    By:_________________________________________
                                       Name:
                                       Title:



<PAGE>

               SCHEDULE I TO DOWNGRADE ADVANCE NOTICE OF BORROWING


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



<PAGE>


                                                                     Annex IV to
                                                      Revolving Credit Agreement



                        FINAL ADVANCE NOTICE OF BORROWING

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

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

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

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

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


<PAGE>

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

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

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

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



                                    By:_________________________________________
                                       Name:
                                       Title:

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



<PAGE>




               SCHEDULE I TO FINAL ADVANCE NOTICE OF BORROWING


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



<PAGE>

                                                                      Annex V to
                                                      Revolving Credit Agreement



                              NOTICE OF TERMINATION

                                          [Date]

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

Attention:  Corporate Trust Administration

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


Ladies and Gentlemen:

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



<PAGE>


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

                                    Very truly yours,

                                    Credit Suisse First Boston,
                                       New York branch
                                       as Liquidity Provider



                                    By:_________________________________________
                                       Name:
                                       Title:


                                    By:_________________________________________
                                       Name:
                                       Title:

cc:   Wilmington Trust Company,
        as Class B Trustee



<PAGE>


                                                                     Annex VI to
                                                      Revolving Credit Agreement



                  NOTICE OF REPLACEMENT SUBORDINATION AGENT

[Date]
Attention:

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

Ladies and Gentlemen:

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


                        _____________________________
                              [Name of Transferee]


                        _____________________________
                             [Address of Transferee]

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

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



<PAGE>


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

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



                                    By:_________________________________________
                                       Name:
                                       Title:



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


                           REVOLVING CREDIT AGREEMENT
                                   (2000-1C-1)


                           DATED AS OF MARCH 15, 2000

                                     BETWEEN

                            WILMINGTON TRUST COMPANY,

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

                                   AS BORROWER

                                       AND

                      MORGAN STANLEY CAPITAL SERVICES INC.

                              AS LIQUIDITY PROVIDER



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



                                   RELATING TO

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



<PAGE>

                                TABLE OF CONTENTS

                                                                            PAGE

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

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

ARTICLE III  OBLIGATIONS OF THE BORROWER.....................................12
     Section 3.01.  Increased Costs..........................................12
     Section 3.02.  Capital Adequacy.........................................13
     Section 3.03.  Payments Free of Deductions..............................14
     Section 3.04.  Payments.................................................15

     Section 3.05.  Computations.............................................15
     Section 3.06.  Payment on Non-Business Days.............................15
     Section 3.07.  Interest.................................................15
     Section 3.08.  Replacement of Borrower..................................16
     Section 3.09.  Funding Loss Indemnification.............................17
     Section 3.10.  Illegality...............................................17

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

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

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

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




<PAGE>

                                TABLE OF CONTENTS
                                  (Continued)

                                                                            PAGE

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

ANNEX I          Interest Advance Notice of Borrowing

ANNEX II         Non-Extension Advance Notice of Borrowing

ANNEX III        Downgrade Advance Notice of Borrowing

ANNEX IV         Final Advance Notice of Borrowing

ANNEX V          Notice of Termination

ANNEX VI         Notice of Replacement Subordination Agent

EXHIBIT I        Form of Guarantee Agreement



<PAGE>


                     REVOLVING CREDIT AGREEMENT (2000-1C-1)

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

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

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

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

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

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


                                    ARTICLE I

                                   DEFINITIONS

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

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

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

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



<PAGE>

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

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

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

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

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

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

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

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

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

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

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


<PAGE>

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

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

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

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

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

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

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

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

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

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



<PAGE>

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

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

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

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

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

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

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

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

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

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

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

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



<PAGE>

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

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

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

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

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

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

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

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

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

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

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



<PAGE>

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

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

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

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

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

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

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

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

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

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

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



<PAGE>

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

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

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

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


                                   ARTICLE II

                       AMOUNT AND TERMS OF THE COMMITMENT

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

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


<PAGE>

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

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

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

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

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


<PAGE>

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

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

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

            Section 2.04. REDUCTIONS OR TERMINATION OF THE MAXIMUM COMMITMENT.

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


<PAGE>

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

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

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

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


<PAGE>

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

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

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

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

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


<PAGE>

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

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


                                   ARTICLE III

                           OBLIGATIONS OF THE BORROWER

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


<PAGE>

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

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

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

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


<PAGE>

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

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

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

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



<PAGE>

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

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

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

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

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


<PAGE>

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

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

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

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

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

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

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


<PAGE>

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

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

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

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

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

                                   ARTICLE IV

                              CONDITIONS PRECEDENT

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

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

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

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



<PAGE>

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

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

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

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

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

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

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



<PAGE>

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

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

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

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


                                    ARTICLE V

                                    COVENANTS

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

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

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



<PAGE>

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

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


                                   ARTICLE VI

                           LIQUIDITY EVENTS OF DEFAULT

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


                                   ARTICLE VII

                                  MISCELLANEOUS

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

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



<PAGE>

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

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

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

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

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

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

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

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


<PAGE>

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

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

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

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


<PAGE>

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

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


<PAGE>

States or any State thereof if such Reference Bank, rather than the participant,
had held the interest participated).

            (b)   If,  pursuant to subsection (a) above, the Liquidity  Provider
sells any  participation  in this Agreement to any bank or other entity (each, a
"TRANSFEREE"),  then, concurrently with the effectiveness of such participation,
the Transferee shall (i) represent to the Liquidity Provider (for the benefit of
the  Liquidity  Provider and the  Borrower)  either (A) that it is  incorporated
under  the laws of the  United  States  or a state  thereof  or (B)  that  under
applicable  law and  treaties,  no taxes will be required  to be  withheld  with
respect  to any  payments  to be made  to such  Transferee  in  respect  of this
Agreement,  (ii) furnish to the Liquidity Provider and the Borrower either (x) a
statement that it is incorporated under the laws of the United States or a state
thereof or (y) if it is not so incorporated,  two copies of a properly completed
United  States  Internal  Revenue  Service  Form  W-8ECI  or  Form  W-8BEN,   as
appropriate, or other applicable form, certificate or document prescribed by the
Internal Revenue Service certifying, in each case, such Transferee's entitlement
to a complete exemption from United States federal withholding tax in respect to
any and all payments to be made  hereunder,  and (iii) agree (for the benefit of
the Liquidity  Provider and the Borrower) to provide the Liquidity  Provider and
the Borrower a new Form W-8ECI or Form W-8BEN, as appropriate,  (A) on or before
the date  that any such  form  expires  or  becomes  obsolete  or (B)  after the
occurrence  of any event  requiring a change in the most recent form  previously
delivered by it and prior to the  immediately  following due date of any payment
by the  Borrower  hereunder,  certifying  in the case of a Form  W-8BEN  or Form
W-8ECI that such  Transferee  is entitled  to a complete  exemption  from United
States  federal  withholding  tax on payments under this  Agreement.  Unless the
Borrower has received forms or other  documents  reasonably  satisfactory  to it
(and  required by applicable  law)  indicating  that payments  hereunder are not
subject to United  States  federal  withholding  tax, the Borrower will withhold
taxes as required by law from such payments at the applicable statutory rate.

            (c)   Notwithstanding the other provisions of this Section 7.08, the
Liquidity  Provider  may assign and  pledge all or any  portion of the  Advances
owing  to it to any  Federal  Reserve  Bank or the  United  States  Treasury  as
collateral  security  pursuant to  Regulation A of the Board of Governors of the
Federal Reserve System and any Operating Circular issued by such Federal Reserve
Bank, provided that any payment in respect of such assigned Advances made by the
Borrower  to the  Liquidity  Provider  in  accordance  with  the  terms  of this
Agreement shall satisfy the Borrower's  obligations hereunder in respect of such
assigned Advance to the extent of such payment. No such assignment shall release
the Liquidity Provider from its obligations hereunder.

            Section 7.09. SEVERABILITY. Any provision of this Agreement which is
prohibited,  unenforceable  or not authorized in any  jurisdiction  shall, as to
such   jurisdiction,   be  ineffective  to  the  extent  of  such   prohibition,
unenforceability  or   non-authorization   without  invalidating  the  remaining
provisions hereof or affecting the validity,  enforceability or legality of such
provision in any other jurisdiction.

            Section 7.10.  GOVERNING LAW. THIS  AGREEMENT  SHALL BE GOVERNED BY,
AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.



<PAGE>

            Section  7.11.  SUBMISSION  TO  JURISDICTION;  WAIVER OF JURY TRIAL;
WAIVER OF  IMMUNITY.  (a) Each of the  parties  hereto  hereby  irrevocably  and
unconditionally:

            (i)  submits  for itself  and its  property  in any legal  action or
      proceeding relating to this Agreement or any other Operative Agreement, or
      for  recognition  and  enforcement  of any  judgment in respect  hereof or
      thereof,  to the  nonexclusive  general  jurisdiction of the courts of the
      State of New York,  the  courts of the United  States of  America  for the
      Southern District of New York, and the appellate courts from any thereof;

            (ii) consents  that any such action or proceeding  may be brought in
      such courts, and waives any objection that it may now or hereafter have to
      the venue of any such action or  proceeding in any such court or that such
      action or proceeding was brought in an  inconvenient  court and agrees not
      to plead or claim the same;

            (iii)  agrees  that  service  of  process  in  any  such  action  or
      proceeding  may be effected  by mailing a copy  thereof by  registered  or
      certified  mail  (or any  substantially  similar  form of  mail),  postage
      prepaid,  to each party  hereto at its address  set forth in Section  7.02
      hereof,  or at such other  address of which the Liquidity  Provider  shall
      have been notified pursuant thereto; and

            (iv) agrees that  nothing  herein  shall  affect the right to effect
      service of process in any other manner permitted by law or shall limit the
      right to sue in any other jurisdiction.

            (b)   THE  BORROWER AND THE LIQUIDITY  PROVIDER EACH HEREBY AGREE TO
WAIVE  THEIR  RESPECTIVE  RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION
BASED  UPON OR  ARISING  OUT OF THIS  AGREEMENT  OR ANY  DEALINGS  BETWEEN  THEM
RELATING TO THE SUBJECT  MATTER OF THIS AGREEMENT AND THE  RELATIONSHIP  THAT IS
BEING ESTABLISHED,  including, without limitation, contract claims, tort claims,
breach of duty  claims  and all  other  common  law and  statutory  claims.  The
Borrower  and the  Liquidity  Provider  each warrant and  represent  that it has
reviewed  this  waiver  with  is  legal  counsel,  and  that  it  knowingly  and
voluntarily waives its jury trial rights following  consultation with such legal
counsel. THIS WAIVER IS IRREVOCABLE,  AND CANNOT BE MODIFIED EITHER ORALLY OR IN
WRITING,  AND THIS WAIVER SHALL APPLY TO ANY  SUBSEQUENT  AMENDMENTS,  RENEWALS,
SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT.

            (c)   The  Liquidity Provider hereby waives any immunity it may have
from the  jurisdiction  of the courts of the  United  States or of any State and
waives any immunity any of its properties  located in the United States may have
from attachment or execution upon a judgment entered by any such court under the
United States Foreign Sovereign  Immunities Act of 1976 or any similar successor
legislation.

            Section  7.12.  EXECUTION IN  COUNTERPARTS.  This  Agreement  may be
executed  in any  number of  counterparts  and by  different  parties  hereto on
separate  counterparts,  each  of  which  counterparts,  when  so  executed  and


<PAGE>

delivered,  shall be deemed  to be an  original  and all of which  counterparts,
taken together, shall constitute but one and the same Agreement.

            Section 7.13. ENTIRETY. This Agreement,  the Intercreditor Agreement
and the other  Operative  Agreements to which the Liquidity  Provider is a party
constitute  the entire  agreement  of the  parties  hereto  with  respect to the
subject matter hereof and supersedes all prior  understandings and agreements of
such parties.

            Section  7.14.  HEADINGS.  Section  headings in this  Agreement  are
included  herein for  convenience  of reference  only and shall not constitute a
part of this Agreement for any other purpose.

            Section 7.15.  TRANSFER.  The Liquidity Provider hereby acknowledges
and consents to the  Transfer  contemplated  by the  Assignment  and  Assumption
Agreement.

            Section 7.16.  LIQUIDITY  PROVIDER'S  OBLIGATION  TO MAKE  ADVANCES.
EXCEPT  AS  EXPRESSLY  SET  FORTH  IN THIS  AGREEMENT,  THE  OBLIGATIONS  OF THE
LIQUIDITY  PROVIDER TO MAKE ADVANCES  HEREUNDER,  AND THE  BORROWER'S  RIGHTS TO
DELIVER NOTICES OF BORROWING REQUESTING THE MAKING OF ADVANCES HEREUNDER,  SHALL
BE UNCONDITIONAL AND IRREVOCABLE,  AND SHALL BE PAID OR PERFORMED,  IN EACH CASE
STRICTLY IN ACCORDANCE WITH THE TERMS OF THIS AGREEMENT.



<PAGE>

            IN WITNESS  WHEREOF,  the parties  have caused this  Agreement to be
duly  executed  and  delivered  by  their  respective  officers  thereunto  duly
authorized as of the date first set forth above.

                                   WILMINGTON TRUST COMPANY,
                                       not in its  individual  capacity  but
                                       solely  as  Subordination  Agent,  as
                                       agent and  trustee  for the Class C-1
                                       Trust, as Borrower


                                   By:_______________________________________
                                      Name:
                                      Title:


                                   MORGAN STANLEY CAPITAL SERVICES INC.,
                                    as Liquidity Provider


                                   By:_______________________________________
                                      Name:
                                      Title:



<PAGE>

                                                                      Annex I to
                                                      Revolving Credit Agreement


                      INTEREST ADVANCE NOTICE OF BORROWING

            The  undersigned,  a duly  authorized  signatory of the  undersigned
borrower (the  "BORROWER"),  hereby certifies to Morgan Stanley Capital Services
Inc.  (the  "LIQUIDITY  PROVIDER"),  with  reference  to  the  Revolving  Credit
Agreement  (2000-1C-1) dated as of March 15, 2000,  between the Borrower and the
Liquidity Provider (the "LIQUIDITY AGREEMENT"; the terms defined therein and not
otherwise  defined herein being used herein as therein  defined or  referenced),
that:

            (1) The Borrower is the Subordination  Agent under the Intercreditor
      Agreement.

            (2) The  Borrower is  delivering  this Notice of  Borrowing  for the
      making  of an  Interest  Advance  by the  Liquidity  Provider  to be used,
      subject to clause (3)(v)  below,  for the payment of interest on the Class
      C-1   Certificates   which  was   payable  on   ____________,   ____  (the
      "DISTRIBUTION  DATE") in accordance  with the terms and  provisions of the
      Class C-1 Trust Agreement and the Class C-1 Certificates, which Advance is
      requested to be made on ____________, ____. The Interest Advance should be
      transferred  to [name of  bank/wire  instructions/ABA  number] in favor of
      account number [ ], reference [ ].

            (3) The  amount of the  Interest  Advance  requested  hereby  (i) is
      $_______________.__,  to be  applied  in  respect  of the  payment  of the
      interest  which was due and payable on the Class C-1  Certificates  on the
      Distribution  Date,  (ii) does not include any amount with  respect to the
      payment of  principal  of, or premium on, the Class C-1  Certificates,  or
      principal of, or interest or premium on, the Class A-1  Certificates,  the
      Class  A-2  Certificates,  the  Class  B  Certificates  or the  Class  C-2
      Certificates,  (iii) was computed in accordance with the provisions of the
      Class  C-1   Certificates,   the  Class  C-1  Trust   Agreement   and  the
      Intercreditor Agreement (a copy of which computation is attached hereto as
      Schedule I), (iv) does not exceed the Maximum Available  Commitment on the
      date hereof, (v) does not include any amount of interest which was due and
      payable on the Class C-1 Certificates on such  Distribution Date but which
      remains  unpaid due to the failure of the  Depositary to pay any amount of
      accrued  interest on the Deposits on such  Distribution  Date and (vi) has
      not been and is not the  subject of a prior or  contemporaneous  Notice of
      Borrowing.

            (4) Upon  receipt  by or on behalf  of the  Borrower  of the  amount
      requested hereby,  (a) the Borrower will apply the same in accordance with
      the terms of Section 3.6(b) of the Intercreditor Agreement, (b) no portion
      of such amount shall be applied by the Borrower for any other  purpose and
      (c) no portion of such amount until so applied  shall be  commingled  with
      other funds held by the Borrower.



<PAGE>

            The Borrower  hereby  acknowledges  that,  pursuant to the Liquidity
Agreement,  the making of the  Interest  Advance as  requested by this Notice of
Borrowing shall  automatically  reduce,  subject to  reinstatement in accordance
with the terms of the Liquidity  Agreement,  the Maximum Available Commitment by
an amount  equal to the  amount of the  Interest  Advance  requested  to be made
hereby as set forth in clause (i) of  paragraph  (3) of this Notice of Borrowing
and such reduction shall automatically result in corresponding reductions in the
amounts available to be borrowed pursuant to a subsequent Advance.

            IN WITNESS  WHEREOF,  the Borrower has executed and  delivered  this
Notice of Borrowing as of the ____ day of _________, ____.


                                   WILMINGTON TRUST COMPANY,
                                       not in its  individual  capacity  but
                                       solely  as  Subordination  Agent,  as
                                       Borrower
  

                                   By:_______________________________________
                                      Name:
                                      Title:



<PAGE>


               SCHEDULE I TO INTEREST ADVANCE NOTICE OF BORROWING

[Insert Copy of  Computations  in  accordance  with Interest  Advance  Notice of
Borrowing]



<PAGE>

                                                                     Annex II to
                                                      Revolving Credit Agreement


                  NON-EXTENSION ADVANCE NOTICE OF BORROWING

            The  undersigned,  a duly  authorized  signatory of the  undersigned
borrower (the  "BORROWER"),  hereby certifies to Morgan Stanley Capital Services
Inc.  (the  "LIQUIDITY  PROVIDER"),  with  reference  to  the  Revolving  Credit
Agreement  (2000-1C-1) dated as of March 15, 2000,  between the Borrower and the
Liquidity Provider (the "LIQUIDITY AGREEMENT"; the terms defined therein and not
otherwise  defined herein being used herein as therein  defined or  referenced),
that:

            (1) The Borrower is the Subordination  Agent under the Intercreditor
      Agreement.

            (2) The  Borrower is  delivering  this Notice of  Borrowing  for the
      making of the Non-Extension  Advance by the Liquidity  Provider to be used
      for the  funding of the Class C-1 Cash  Collateral  Account in  accordance
      with  Section  3.6(d) of the  Intercreditor  Agreement,  which  Advance is
      requested to be made on __________, ____. The Non-Extension Advance should
      be transferred to [name of bank/wire  instructions/ABA number] in favor of
      account number [ ], reference [ ].

            (3) The amount of the Non-Extension  Advance requested hereby (i) is
      $_______________.__,  which equals the Maximum Available Commitment on the
      date  hereof and is to be  applied in respect of the  funding of the Class
      C-1 Cash  Collateral  Account in  accordance  with  Section  3.6(d) of the
      Intercreditor Agreement,  (ii) does not include any amount with respect to
      the  payment  of  the   principal   of,  or  premium  on,  the  Class  C-1
      Certificates,  or  principal  of, or interest or premium on, the Class A-1
      Certificates,  the Class A-2 Certificates, the Class B Certificates or the
      Class  C-2  Certificates,  (iii)  was  computed  in  accordance  with  the
      provisions of the Class C-1  Certificates,  the Class C-1 Trust  Agreement
      and the  Intercreditor  Agreement (a copy of which computation is attached
      hereto as  Schedule  I), and (iv) has not been and is not the subject of a
      prior  or   contemporaneous   Notice  of  Borrowing  under  the  Liquidity
      Agreement.

            (4) Upon  receipt  by or on behalf  of the  Borrower  of the  amount
      requested  hereby,  (a) the Borrower will deposit such amount in the Class
      C-1 Cash  Collateral  Account  and apply the same in  accordance  with the
      terms of Section 3.6(d) of the Intercreditor  Agreement, (b) no portion of
      such amount shall be applied by the Borrower for any other purpose and (c)
      no portion of such amount until so applied shall be commingled  with other
      funds held by the Borrower.

            The Borrower  hereby  acknowledges  that,  pursuant to the Liquidity
Agreement,  (A) the making of the  Non-Extension  Advance as  requested  by this
Notice of Borrowing shall automatically and irrevocably terminate the obligation
of  the  Liquidity  Provider  to  make  further  Advances  under  the  Liquidity
Agreement;  and (B)  following  the  making  by the  Liquidity  Provider  of the


<PAGE>

Non-Extension Advance requested by this Notice of Borrowing,  the Borrower shall
not be entitled to request any further Advances under the Liquidity Agreement.

            IN WITNESS WHEREOF, the Borrower has executed and delivered this
Notice of Borrowing as of the ____ day of _________, ____.

                                   WILMINGTON TRUST COMPANY,
                                       not in its  individual  capacity  but
                                       solely  as  Subordination  Agent,  as
                                       Borrower


                                   By:_______________________________________
                                      Name:
                                      Title:


<PAGE>

           SCHEDULE I TO NON-EXTENSION ADVANCE NOTICE OF BORROWING

[Insert Copy of computations in accordance with Non-Extension  Advance Notice of
Borrowing]



<PAGE>

                                                                    Annex III to
                                                      Revolving Credit Agreement


                      DOWNGRADE ADVANCE NOTICE OF BORROWING

            The  undersigned,  a duly  authorized  signatory of the  undersigned
borrower (the  "BORROWER"),  hereby certifies to Morgan Stanley Capital Services
Inc.  (the  "LIQUIDITY  PROVIDER"),  with  reference  to  the  Revolving  Credit
Agreement  (2000-1C-1) dated as of March 15, 2000,  between the Borrower and the
Liquidity Provider (the "LIQUIDITY AGREEMENT"; the terms defined therein and not
otherwise  defined herein being used herein as therein  defined or  referenced),
that:

            (1) The Borrower is the Subordination  Agent under the Intercreditor
      Agreement.

            (2) The  Borrower is  delivering  this Notice of  Borrowing  for the
      making of the Downgrade  Advance by the Liquidity  Provider to be used for
      the funding of the Class C-1 Cash  Collateral  Account in accordance  with
      Section  3.6(c)  of  the  Intercreditor  Agreement  (i) by  reason  of the
      downgrading  of the  short-term  unsecured  debt  rating of the  Guarantor
      issued by either Rating Agency below the Threshold  Rating or (ii) because
      the  Guarantee  Agreement has ceased to be in full force and effect or has
      become invalid or  unenforceable or the Guarantor has denied its liability
      thereunder, which Advance is requested to be made on __________, ____. The
      Downgrade   Advance   should  be   transferred   to  [name  of   bank/wire
      instructions/ABA number] in favor of account number [ ], reference [ ].

            (3) The  amount of the  Downgrade  Advance  requested  hereby (i) is
      $_______________.__,  which equals the Maximum Available Commitment on the
      date  hereof and is to be  applied in respect of the  funding of the Class
      C-1 Cash  Collateral  Account in  accordance  with  Section  3.6(c) of the
      Intercreditor Agreement,  (ii) does not include any amount with respect to
      the  payment  of  the   principal   of,  or  premium  on,  the  Class  C-1
      Certificates,  or  principal  of, or interest or premium on, the Class A-1
      Certificates,  the Class A-2 Certificates, the Class B Certificates or the
      Class  C-2  Certificates,  (iii)  was  computed  in  accordance  with  the
      provisions of the Class C-1  Certificates,  the Class C-1 Trust  Agreement
      and the  Intercreditor  Agreement (a copy of which computation is attached
      hereto as  Schedule  I), and (iv) has not been and is not the subject of a
      prior  or   contemporaneous   Notice  of  Borrowing  under  the  Liquidity
      Agreement.

            (4) Upon  receipt  by or on behalf  of the  Borrower  of the  amount
      requested  hereby,  (a) the Borrower will deposit such amount in the Class
      C-1 Cash  Collateral  Account  and apply the same in  accordance  with the
      terms of Section 3.6(c) of the Intercreditor  Agreement, (b) no portion of
      such amount shall be applied by the Borrower for any other purpose and (c)
      no portion of such amount until so applied shall be commingled  with other
      funds held by the Borrower.



<PAGE>

            The Borrower  hereby  acknowledges  that,  pursuant to the Liquidity
Agreement,  (A) the making of the Downgrade  Advance as requested by this Notice
of Borrowing shall automatically and irrevocably terminate the obligation of the
Liquidity Provider to make further Advances under the Liquidity  Agreement;  and
(B)  following the making by the  Liquidity  Provider of the  Downgrade  Advance
requested by this Notice of  Borrowing,  the  Borrower  shall not be entitled to
request any further Advances under the Liquidity Agreement.

            IN WITNESS  WHEREOF,  the Borrower has executed and  delivered  this
Notice of Borrowing as of the ____ day of _________, ____.

                                   WILMINGTON TRUST COMPANY,
                                       not in its  individual  capacity  but
                                       solely  as  Subordination  Agent,  as
                                       Borrower


                                   By:_______________________________________
                                      Name:
                                      Title:



<PAGE>


               SCHEDULE I TO DOWNGRADE ADVANCE NOTICE OF BORROWING

[Insert Copy of  computations  in accordance  with  Downgrade  Advance Notice of
Borrowing]



<PAGE>

                                                                     Annex IV to
                                                      Revolving Credit Agreement

                        FINAL ADVANCE NOTICE OF BORROWING

            The  undersigned,  a duly  authorized  signatory of the  undersigned
borrower (the  "BORROWER"),  hereby certifies to Morgan Stanley Capital Services
Inc.  (the  "LIQUIDITY  PROVIDER"),  with  reference  to  the  Revolving  Credit
Agreement  (2000-1C-1) dated as of March 15, 2000,  between the Borrower and the
Liquidity Provider (the "LIQUIDITY AGREEMENT"; the terms defined therein and not
otherwise  defined herein being used herein as therein  defined or  referenced),
that:

            (1) The Borrower is the Subordination  Agent under the Intercreditor
      Agreement.

            (2) The  Borrower is  delivering  this Notice of  Borrowing  for the
      making of the Final Advance by the  Liquidity  Provider to be used for the
      funding  of the Class  C-1 Cash  Collateral  Account  in  accordance  with
      Section 3.6(i) of the Intercreditor  Agreement by reason of the receipt by
      the Borrower of a  Termination  Notice from the  Liquidity  Provider  with
      respect to the Liquidity Agreement,  which Advance is requested to be made
      on ____________, ____. The Final Advance should be transferred to [name of
      bank/wire  instructions/ABA  number]  in  favor  of  account  number  [ ],
      reference [ ].

            (3)  The  amount  of  the  Final  Advance  requested  hereby  (i) is
      $_________________.__,  which equals the Maximum  Available  Commitment on
      the date  hereof and is to be  applied  in  respect of the  funding of the
      Class C-1 Cash Collateral Account in accordance with Section 3.6(i) of the
      Intercreditor Agreement,  (ii) does not include any amount with respect to
      the payment of principal of, or premium on, the Class C-1 Certificates, or
      principal of, or interest or premium on, the Class A-1  Certificates,  the
      Class  A-2  Certificates,  the  Class  B  Certificates  or the  Class  C-2
      Certificates,  (iii) was computed in accordance with the provisions of the
      Class  C-1   Certificates,   the  Class  C-1  Trust   Agreement   and  the
      Intercreditor Agreement (a copy of which computation is attached hereto as
      Schedule  I),  and (iv) has not been and is not the  subject of a prior or
      contemporaneous Notice of Borrowing.

            (4) Upon  receipt  by or on behalf  of the  Borrower  of the  amount
      requested  hereby,  (a) the Borrower will deposit such amount in the Class
      C-1 Cash  Collateral  Account  and apply the same in  accordance  with the
      terms of Section 3.6(i) of the Intercreditor  Agreement, (b) no portion of
      such amount shall be applied by the Borrower for any other purpose and (c)
      no portion of such amount until so applied shall be commingled  with other
      funds held by the Borrower.


<PAGE>

            (5) The Borrower hereby requests that the Advance  requested  hereby
      be a Base Rate Advance [and that such Base Rate Advance be converted  into
      a LIBOR Advance on the third  Business Day following  your receipt of this
      notice.]<F1>

            The Borrower  hereby  acknowledges  that,  pursuant to the Liquidity
Agreement,  (A) the making of the Final  Advance as  requested by this Notice of
Borrowing shall  automatically  and irrevocably  terminate the obligation of the
Liquidity Provider to make further Advances under the Liquidity  Agreement;  and
(B)  following  the  making  by the  Liquidity  Provider  of the  Final  Advance
requested by this Notice of  Borrowing,  the  Borrower  shall not be entitled to
request any further Advances under the Liquidity Agreement.

            IN WITNESS  WHEREOF,  the Borrower has executed and  delivered  this
Notice of Borrowing as of the ____ day of _________, ____.

                                   WILMINGTON TRUST COMPANY,
                                       not in its  individual  capacity  but
                                       solely  as  Subordination  Agent,  as
                                       Borrower


                                   By:_______________________________________
                                      Name:
                                      Title:


----------
<F1>
Bracketed language may be included at Borrower's option.



<PAGE>


                 SCHEDULE I TO FINAL ADVANCE NOTICE OF BORROWING

[Insert  Copy of  Computations  in  accordance  with  Final  Advance  Notice  of
Borrowing]



<PAGE>

                                                                      Annex V to
                                                      Revolving Credit Agreement

                              NOTICE OF TERMINATION

                                          [Date]

Wilmington Trust Company,
  as Subordination Agent, as Borrower
Rodney Square North
1100 North Market Square
Wilmington, DE 19890-0001

Attention:  Corporate Trust Administration

      Revolving  Credit  Agreement  dated  as of  March  15,  2000  between
      Wilmington  Trust  Company,  as  Subordination  Agent,  as agent  and
      trustee   for  the   Continental   Airlines   Pass   Through   Trust,
      2000-1C-1-[O/S],  as Borrower,  and Morgan Stanley  Capital  Services
      Inc. (the "LIQUIDITY AGREEMENT")


Ladies and Gentlemen:

You  are  hereby  notified  that  pursuant  to  Section  6.01  of the  Liquidity
Agreement,  by reason of the occurrence of a Liquidity  Event of Default and the
existence of a Performing  Note  Deficiency  (each as defined  therein),  we are
giving this notice to you in order to cause (i) our obligations to make Advances
(as defined  therein) under such  Liquidity  Agreement to terminate on the fifth
Business  Day after the date on which you  receive  this  notice and (ii) you to
request a Final Advance under the Liquidity Agreement pursuant to Section 3.6(i)
of the  Intercreditor  Agreement  (as defined in the  Liquidity  Agreement) as a
consequence of your receipt of this notice.



<PAGE>


            THIS NOTICE IS THE "NOTICE OF  TERMINATION"  PROVIDED  FOR UNDER THE
LIQUIDITY  AGREEMENT.  OUR  OBLIGATIONS  TO MAKE  ADVANCES  UNDER THE  LIQUIDITY
AGREEMENT  WILL  TERMINATE ON THE FIFTH BUSINESS DAY AFTER THE DATE ON WHICH YOU
RECEIVE THIS NOTICE.

                              Very truly yours,

                              Morgan Stanley Capital Services Inc.,
                                  as Liquidity Provider


                              By:________________________________________
                                 Name:
                                 Title:


cc:   Wilmington Trust Company,
      as Class C-1 Trustee



<PAGE>

                                                                     Annex VI to
                                                      Revolving Credit Agreement

                    NOTICE OF REPLACEMENT SUBORDINATION AGENT

[Date]
Attention:

      Revolving  Credit  Agreement  dated as of  March  15,  2000,  between
      Wilmington  Trust  Company,  as  Subordination  Agent,  as agent  and
      trustee   for  the   Continental   Airlines   Pass   Through   Trust,
      2000-1C-1-[O/S],  as Borrower,  and Morgan Stanley  Capital  Services
      Inc. (the "LIQUIDITY AGREEMENT")


Ladies and Gentlemen:

            For value received,  the undersigned  beneficiary hereby irrevocably
transfers to:

                         ______________________________
                              [Name of Transferee]


                         ______________________________
                             [Address of Transferee]

all rights and  obligations  of the  undersigned as Borrower under the Liquidity
Agreement  referred to above.  The transferee  has succeeded the  undersigned as
Subordination  Agent under the Intercreditor  Agreement referred to in the first
paragraph of the  Liquidity  Agreement,  pursuant to the terms of Section 8.1 of
the Intercreditor Agreement.

            By this  transfer,  all rights of the  undersigned as Borrower under
the Liquidity  Agreement are  transferred  to the  transferee and the transferee
shall hereafter have the sole rights and obligations as Borrower thereunder. The
undersigned  shall pay any costs and expenses of such transfer,  including,  but
not limited to, transfer taxes or governmental charges.



<PAGE>

            We ask that this transfer be effective as of _______________, ____.

                                   WILMINGTON TRUST COMPANY,
                                       not in its  individual  capacity but
                                       solely as  Subordination  Agent,  as
                                       Borrower



                                   By:_______________________________________
                                      Name:
                                      Title:



<PAGE>

                                                                    EXHIBIT I to
                                                      Revolving Credit Agreement


                           FORM OF GUARANTEE AGREEMENT





                                                   March 15, 2000




Continental Airlines Pass Through Trust 2000-1C-1-O

Ladies and Gentlemen:

       In  consideration  of the Revolving  Credit  Agreement (the  "Agreement")
dated as of March 15, 2000  between  Morgan  Stanley  Capital  Services  Inc., a
Delaware  corporation  (hereinafter  "MSCS") and Wilmington  Trust  Company,  as
Subordination  Agent,  as agent and trustee for the  Continental  Airlines  Pass
Through Trust 2000-1C-1-O ("Counterparty"),  Morgan Stanley Dean Witter & Co., a
Delaware   corporation    (hereinafter    "MSDW"),    hereby   irrevocably   and
unconditionally  guarantees  to  Counterparty,  with effect from the date of the
Agreement, the due and punctual payment of all amounts payable by MSCS under the
Agreement  when the same shall  become  due and  payable,  whether on  scheduled
payment dates,  upon demand,  upon  declaration of termination or otherwise,  in
accordance  with the terms of the Agreement and giving effect to any  applicable
grace  period  under the express  terms of the  Agreement.  Upon failure of MSCS
punctually to pay any such amounts,  MSDW agrees to pay or cause to be paid such
amounts.  It is  understood  and agreed that the  obligations  of MSCS under the
Agreement to make Advances (as defined in the  Agreement)  are, and shall in any
event,  for all  purposes of the  Guarantee,  be deemed to  constitute,  amounts
payable by MSCS under the Agreement.

       MSDW hereby agrees that its obligations  hereunder shall be unconditional
and will not be  discharged  except by complete  payment of the amounts  payable
under the Agreement,  irrespective of any claim as to the Agreement's  validity,
regularity  or  enforceability  or the lack of  authority  of MSCS to execute or
deliver the Agreement;  or any change in or amendment to the  Agreement;  or any
waiver or consent by Counterparty with respect to any provisions thereof; or the
absence of any action to enforce the  Agreement  or the recovery of any judgment
against  MSCS or of any  action to  enforce a  judgment  against  MSCS under the
Agreement;  or any similar circumstance which might otherwise constitute a legal
or equitable discharge or defense of a guarantor  generally.  MSDW hereby waives
diligence,  presentment, demand on MSDW or MSCS for payment or otherwise, filing
of claims, requirement of a prior proceeding against MSCS and protest or notice,
except as provided for in the Agreement with respect to amounts payable by MSCS.
If at any time  payment  under the  Agreement  is rescinded or must be otherwise
restored  or  returned  by  Counterparty  upon  the  insolvency,  bankruptcy  or
reorganization of MSCS or MSDW or otherwise,  MSDW's obligations  hereunder with
respect to such payment  shall be  reinstated  upon such  restoration  or return
being made by Counterparty.


<PAGE>

       MSDW represents to Counterparty as of the date hereof that:

       (1) it is duly  organized  and  validly  existing  under  the laws of the
jurisdiction of its  incorporation and has full power and legal right to execute
and deliver this  Guarantee and to perform the  provisions of this  Guarantee on
its part to be performed;

       (2) its execution,  delivery and  performance of this Guarantee have been
and  remain  duly  authorized  by  all  necessary  corporate  action  and do not
contravene any provision of its certificate of  incorporation  or by-laws or any
law, regulation or contractual restriction binding on it or its assets;

       (3) all consents,  authorizations,  approvals and clearances  (including,
without limitation,  any necessary exchange control approval) and notifications,
reports  and  registrations  requisite  for  its  due  execution,  delivery  and
performance  of this  Guarantee  have been obtained from or, as the case may be,
filed with the relevant governmental  authorities having jurisdiction and remain
in full force and effect and all conditions thereof have been duly complied with
and no other  action  by,  and no  notice to or filing  with,  any  governmental
authority  having  jurisdiction  is  required  for such  execution,  delivery or
performance; and

       (4) this Guarantee is its legal, valid and binding obligation enforceable
against it in  accordance  with its terms  except as  enforcement  hereof may be
limited by applicable  bankruptcy,  insolvency,  reorganization or other similar
laws  affecting  the  enforcement  of  creditors'  rights or by  general  equity
principles.

       By accepting this Guarantee and entering into the Agreement, Counterparty
agrees that MSDW shall be subrogated to all rights of Counterparty  against MSCS
in respect of any amounts paid by MSDW pursuant to this Guarantee, provided that
MSDW shall be entitled  to enforce or to receive  any payment  arising out of or
based upon such  right of  subrogation  only to the extent  that it has paid all
amounts payable by MSCS under the Agreement.

       This Guarantee  shall be governed by and construed in accordance with the
laws of the State of New York.  All  capitalized  terms  not  otherwise  defined
herein shall have the respective meanings assigned to them in the Agreement.


                                 MORGAN STANLEY DEAN WITTER & CO.


                                 By:_________________________________________
                                 Name:
                                 Title:

                                 Address:    1585 Broadway
                                             3rd Floor
                                             New York, NY  10036
                                 Attention:  Swap Group
                                 Fax No.:    (212) 761-0162





================================================================================






                           REVOLVING CREDIT AGREEMENT
                                   (2000-1C-2)


                           DATED AS OF MARCH 15, 2000

                                     BETWEEN

                            WILMINGTON TRUST COMPANY,

                             AS SUBORDINATION AGENT,
                          AS AGENT AND TRUSTEE FOR THE
                CONTINENTAL AIRLINES PASS THROUGH TRUST 2000-1C-2

                                   AS BORROWER

                                       AND

                      MORGAN STANLEY CAPITAL SERVICES INC.

                              AS LIQUIDITY PROVIDER






================================================================================



                                   RELATING TO

              CONTINENTAL AIRLINES PASS THROUGH TRUST 2000-1C-2
            8.321% CONTINENTAL AIRLINES PASS THROUGH CERTIFICATES,
                                SERIES 2000-1C-2


<PAGE>

                                TABLE OF CONTENTS
                                                                          PAGE
                                                                          ----


ARTICLE I  DEFINITIONS.......................................................1
   Section 1.01.  Certain Defined Terms......................................1

ARTICLE II  AMOUNT AND TERMS OF THE COMMITMENT...............................7
   Section 2.01.  The Advances...............................................7
   Section 2.02.  Making the Advances........................................7
   Section 2.03.  Fees.......................................................9
   Section 2.04.  Reductions or Termination of the Maximum Commitment.......10
   Section 2.05.  Repayments of Interest Advances or the Final Advance......10
   Section 2.06.  Repayments of Provider Advances...........................10
   Section 2.07.  Payments to the Liquidity Provider Under the
                  Intercreditor Agreement...................................11
   Section 2.08.  Book Entries..............................................12
   Section 2.09.  Payments from Available Funds Only........................12
   Section 2.10.  Extension of the Expiry Date; Non-Extension Advance.......12

ARTICLE III  OBLIGATIONS OF THE BORROWER....................................13
   Section 3.01.  Increased Costs...........................................13
   Section 3.02.  Capital Adequacy..........................................14
   Section 3.03.  Payments Free of Deductions...............................14
   Section 3.04.  Payments..................................................15

   Section 3.05.  Computations..............................................15
   Section 3.06.  Payment on Non-Business Days..............................15
   Section 3.07.  Interest..................................................15
   Section 3.08.  Replacement of Borrower...................................17
   Section 3.09.  Funding Loss Indemnification..............................17
   Section 3.10.  Illegality................................................17

ARTICLE IV  CONDITIONS PRECEDENT............................................18
   Section 4.01.  Conditions Precedent to Effectiveness of Section 2.01.....18
   Section 4.02.  Conditions Precedent to Borrowing.........................19

ARTICLE V  COVENANTS........................................................20
   Section 5.01.  Affirmative Covenants of the Borrower.....................20
   Section 5.02.  Negative Covenants of the Borrower........................20

ARTICLE VI  LIQUIDITY EVENTS OF DEFAULT.....................................20
   Section 6.01.  Liquidity Events of Default...............................20

ARTICLE VII  MISCELLANEOUS..................................................21
   Section 7.01.  Amendments, Etc...........................................21
   Section 7.02.  Notices, Etc..............................................21
   Section 7.03.  No Waiver; Remedies.......................................22


<PAGE>

                                TABLE OF CONTENTS
                                   (continued)
                                                                          PAGE
                                                                          ----
   Section 7.04.  Further Assurances........................................22
   Section 7.05.  Indemnification; Survival of Certain Provisions...........22
   Section 7.06.  Liability of the Liquidity Provider.......................22
   Section 7.07.  Costs, Expenses and Taxes.................................23
   Section 7.08.  Binding Effect; Participations............................23
   Section 7.09.  Severability..............................................25
   Section 7.10.  GOVERNING LAW.............................................25
   Section 7.11.  Submission to Jurisdiction; Waiver of Jury Trial;
                  Waiver of Immunity........................................25
   Section 7.12.  Execution in Counterparts.................................26
   Section 7.13.  Entirety..................................................26
   Section 7.14.  Headings..................................................26
   Section 7.15.  Transfer..................................................26
   Section 7.16.  LIQUIDITY PROVIDER'S OBLIGATION TO MAKE ADVANCES..........26


ANNEX I          Interest Advance Notice of Borrowing

ANNEX II         Non-Extension Advance Notice of Borrowing

ANNEX III        Downgrade Advance Notice of Borrowing

ANNEX IV         Final Advance Notice of Borrowing

ANNEX V          Notice of Termination

ANNEX VI         Notice of Replacement Subordination Agent

EXHIBIT I        Form of Guarantee Agreement


<PAGE>

                     REVOLVING CREDIT AGREEMENT (2000-1C-2)

This REVOLVING CREDIT AGREEMENT  (2000-1C-2) dated as of March 15, 2000, between
WILMINGTON TRUST COMPANY, a Delaware corporation, not in its individual capacity
but solely as  Subordination  Agent under the  Intercreditor  Agreement (each as
defined below),  as agent and trustee for the Class C-2 Trust (as defined below)
(the  "BORROWER"),  and MORGAN  STANLEY  CAPITAL  SERVICES  INC., a  corporation
organized under the laws of the State of Delaware (the "LIQUIDITY PROVIDER").

                             W I T N E S S E T H:
                             - - - - - - - - - - 

            WHEREAS,  pursuant to the Class C-2 Trust  Agreement  (such term and
all other capitalized terms used in these recitals having the meanings set forth
or  referred to in Section  1.01),  the Class C-2 Trust is issuing the Class C-2
Certificates;

            WHEREAS,  the Borrower,  in order to support the timely payment of a
portion of the interest on the Class C-2  Certificates  in accordance with their
terms,  has  requested  the  Liquidity  Provider  to enter into this  Agreement,
providing in part for the Borrower to request in  specified  circumstances  that
Advances be made hereunder; and

            WHEREAS,  the Liquidity  Provider has requested  Morgan Stanley Dean
Witter & Co. (the  "GUARANTOR") to enter into a Guarantee  Agreement in the form
attached hereto as Exhibit I, providing for the full and unconditional guarantee
of the Liquidity  Provider's  obligations  under this Agreement (the  "GUARANTEE
AGREEMENT").

            NOW, THEREFORE, in consideration of the premises, the parties hereto
agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

            Section 1.01.  CERTAIN DEFINED TERMS.  (a)  DEFINITIONS.  As used in
this Agreement and unless otherwise expressly  indicated,  or unless the context
clearly  requires  otherwise,  the  following  capitalized  terms shall have the
following respective meanings for all purposes of this Agreement:

            "ADDITIONAL  COST" has the meaning  assigned to such term in Section
      3.01.

            "ADVANCE"  means an Interest  Advance,  a Final Advance,  a Provider
      Advance or an Applied Provider Advance, as the case may be.

            "APPLICABLE LIQUIDITY RATE" has the meaning assigned to such term in
      Section 3.07(g).


<PAGE>

            "APPLICABLE  MARGIN" means (x) with respect to any Unpaid Advance or
      Applied  Provider  Advance,  2.25% per annum,  or (y) with  respect to any
      Unapplied Provider Advance, the rate per annum specified in the Fee Letter
      applicable to this Agreement.

            "APPLIED DOWNGRADE ADVANCE" has the meaning assigned to such term in
      Section 2.06(a).

            "APPLIED  NON-EXTENSION  ADVANCE"  has the meaning  assigned to such
      term in Section 2.06(a).

            "APPLIED  PROVIDER ADVANCE" has the meaning assigned to such term in
      Section 2.06(a).

            "ASSIGNMENT  AND  ASSUMPTION  AGREEMENT"  means the  Assignment  and
      Assumption  to be entered into between the Borrower and the trustee of the
      Successor  Trust,  substantially  in the form of  Exhibit  C to the  Trust
      Supplement No. 2000-1C-2-O,  dated as of the date hereof,  relating to the
      Class C-2 Trust.

            "BASE RATE" means a  fluctuating  interest  rate per annum in effect
      from time to time, which rate per annum shall at all times be equal to (a)
      the weighted average of the rates on overnight Federal funds  transactions
      with  members of the Federal  Reserve  System  arranged  by Federal  funds
      brokers, as published for such day (or, if such day is not a Business Day,
      for the next  preceding  Business Day) by the Federal  Reserve Bank of New
      York,  or if such rate is not so published  for any day that is a Business
      Day,  the  average of the  quotations  for such day for such  transactions
      received by the  Liquidity  Provider  from three  Federal funds brokers of
      recognized  standing  selected by it, plus (b)  one-quarter of one percent
      (1/4 of 1%).

            "BASE RATE ADVANCE"  means an Advance that bears  interest at a rate
      based upon the Base Rate.

            "BORROWER"  has the meaning  assigned to such term in the recital of
      parties to this Agreement.

            "BORROWING" means the making of Advances  requested by delivery of a
      Notice of Borrowing.

            "BUSINESS  DAY" means any day other  than a Saturday  or Sunday or a
      day on which  commercial  banks are  required  or  authorized  to close in
      Houston,  Texas,  New  York,  New  York  or,  so  long  as any  Class  C-2
      Certificate  is  outstanding,  the city and  state in which  the Class C-2
      Trustee,  the Borrower or any Loan Trustee  maintains its Corporate  Trust
      Office or receives or disburses funds, and, if the applicable Business Day
      relates to any Advance or other amount bearing interest based on the LIBOR
      Rate, on which dealings are carried on in the London interbank market.


<PAGE>

            "DEPOSIT AGREEMENT" means the Deposit Agreement dated as of the date
      hereof between First Security Bank, National Association, as Escrow Agent,
      Credit Suisse First Boston, New York branch, as Depositary,  pertaining to
      the  Class  C-2  Certificates,  as the same may be  amended,  modified  or
      supplemented from time to time in accordance with the terms thereof.

            "DEPOSITARY"  has the  meaning  assigned to such term in the Deposit
      Agreement.

            "DEPOSITS"  has the  meaning  assigned  to such term in the  Deposit
      Agreement.

            "DOWNGRADE  ADVANCE"  means an  Advance  made  pursuant  to  Section
      2.02(c).

            "EFFECTIVE  DATE" has the meaning  specified  in Section  4.01.  The
      delivery of the  certificate  of the Liquidity  Provider  contemplated  by
      Section  4.01(e) shall be conclusive  evidence that the Effective Date has
      occurred.

            "EXCLUDED  TAXES" means (i) taxes  imposed on the overall net income
      of the Liquidity  Provider or of its Facility  Office by the  jurisdiction
      where such Liquidity  Provider's  principal office or such Facility Office
      is located, and (ii) Excluded Withholding Taxes.

            "EXCLUDED  WITHHOLDING TAXES" means (i) withholding Taxes imposed by
      the United  States  except (but only in the case of a successor  Liquidity
      Provider  organized  under the laws of a  jurisdiction  outside the United
      States)  to the  extent  that such  United  States  withholding  Taxes are
      imposed as a result of any change in applicable law (excluding from change
      in  applicable  law for this purpose a change in an  applicable  treaty or
      other change in law  affecting  the  applicability  of a treaty) after the
      date hereof, or in the case of a successor Liquidity Provider (including a
      transferee of an Advance) or Facility Office, after the date on which such
      successor Liquidity Provider obtains its interest or on which the Facility
      Office is changed,  and (ii) any  withholding  Taxes imposed by the United
      States  which  are  imposed  or  increased  as a result  of the  Liquidity
      Provider  failing to deliver to the Borrower any  certificate  or document
      (which certificate or document in the good faith judgment of the Liquidity
      Provider it is legally entitled to provide) which is reasonably  requested
      by the Borrower to establish that payments under this Agreement are exempt
      from (or entitled to a reduced rate of) withholding Tax.

            "EXPENSES" means  liabilities,  obligations,  damages,  settlements,
      penalties,  claims,  actions,  suits, costs,  expenses,  and disbursements
      (including, without limitation, reasonable fees and disbursements of legal
      counsel and costs of  investigation),  provided  that  Expenses  shall not
      include any Taxes.

            "EXPIRY DATE" means March 13, 2001, initially,  or any date to which
      the Expiry Date is extended pursuant to Section 2.10.

            "FACILITY  OFFICE"  means  the  office  of  the  Liquidity  Provider
      presently  located  at New York,  New York,  or such  other  office as the


<PAGE>

      Liquidity  Provider  from time to time shall  notify the  Borrower  as its
      Facility Office hereunder;  PROVIDED that the Liquidity Provider shall not
      change its Facility  Office to a Facility Office outside the United States
      of America except in accordance with Section 3.01, 3.02 or 3.03 hereof.

            "FINAL ADVANCE" means an Advance made pursuant to Section 2.02(d).

            "GUARANTOR" has the meaning assigned to such term in the preliminary
      statements of this Agreement.

            "GUARANTEE  AGREEMENT" has the meaning  assigned to such term in the
      preliminary statements of this Agreement.

            "INTERCREDITOR  AGREEMENT" means the  Intercreditor  Agreement dated
      the date hereof, among the Trustees, the Liquidity Provider, the liquidity
      provider under each Liquidity Facility (other than this Agreement) and the
      Subordination Agent, as the same may be amended, supplemented or otherwise
      modified from time to time in accordance with its terms.

            "INTEREST  ADVANCE"  means  an  Advance  made  pursuant  to  Section
      2.02(a).

            "INTEREST PERIOD" means, with respect to any LIBOR Advance,  each of
      the following periods:

            (i)   the  period  beginning  on the third  Business  Day  following
                  either (x) the Liquidity  Provider's  receipt of the Notice of
                  Borrowing  for such  LIBOR  Advance or (y) the  withdrawal  of
                  funds  from the  Class  C-2 Cash  Collateral  Account  for the
                  purpose of paying  interest on the Class C-2  Certificates  as
                  contemplated  by Section  2.06(a)  hereof and, in either case,
                  ending on the next Regular Distribution Date; and

            (ii)  each  subsequent  period  commencing  on the  last  day of the
                  immediately  preceding  Interest Period and ending on the next
                  Regular Distribution Date;

      PROVIDED,  HOWEVER, that if (x) the Final Advance shall have been made, or
      (y) other  outstanding  Advances  shall have been converted into the Final
      Advance,  then the Interest  Periods  shall be  successive  periods of one
      month  beginning  on  the  third  Business  Day  following  the  Liquidity
      Provider's  receipt of the Notice of Borrowing  for such Final Advance (in
      the case of clause (x) above) or the Regular  Distribution  Date following
      such conversion (in the case of clause (y) above).

            "LIBOR  ADVANCE" means an Advance  bearing  interest at a rate based
      upon the LIBOR Rate.

            "LIBOR RATE" means, with respect to any Interest Period,


<PAGE>

            (i)   the rate per annum  appearing  on display  page 3750  (British
                  Bankers  Association-LIBOR)  of the Dow Jones Markets  Service
                  (or any  successor or  substitute  therefor) at  approximately
                  11:00 A.M.  (London  time) two Business  Days before the first
                  day of such Interest  Period,  as the rate for dollar deposits
                  with a maturity comparable to such Interest Period, or

            (ii)  if the rate  calculated  pursuant  to clause  (i) above is not
                  available,  the average (rounded upwards, if necessary, to the
                  next 1/16 of 1%) of the rates per annum at which  deposits  in
                  dollars are offered for the relevant  Interest Period by three
                  banks  of  recognized   standing  selected  by  the  Liquidity
                  Provider in the London interbank market at approximately 11:00
                  A.M.  (London  time) two Business Days before the first day of
                  such Interest Period in an amount  approximately  equal to the
                  principal  amount of the LIBOR  Advance to which such Interest
                  Period  is to  apply  and  for a  period  comparable  to  such
                  Interest Period.

            "LIQUIDITY  EVENT OF DEFAULT" means the occurrence of either (a) the
      Acceleration of all of the Equipment Notes (PROVIDED that, with respect to
      the period prior to the Delivery  Period Expiry Date, such Equipment Notes
      have an aggregate outstanding principal balance in excess of $300,000,000)
      or (b) a Continental Bankruptcy Event.

            "LIQUIDITY  INDEMNITEE" means (i) the Liquidity  Provider,  (ii) the
      Guarantor, (iii) the respective directors,  officers, employees and agents
      of the Liquidity  Provider and the Guarantor,  and (iv) the successors and
      permitted  assigns of the persons  described in clauses (i) through (iii),
      inclusive.

            "LIQUIDITY  PROVIDER"  has the meaning  assigned to such term in the
      recital of parties to this Agreement.

            "MAXIMUM  AVAILABLE  COMMITMENT" shall mean,  subject to the proviso
      contained  in the  third  sentence  of  Section  2.02(a),  at any  time of
      determination,  (a) the  Maximum  Commitment  at such  time  LESS  (b) the
      aggregate  amount  of each  Interest  Advance  outstanding  at such  time;
      PROVIDED that following a Provider Advance or a Final Advance, the Maximum
      Available Commitment shall be zero.

            "MAXIMUM  COMMITMENT" means initially  $6,219,337.76 as the same may
      be reduced from time to time in accordance with Section 2.04(a).

            "NON-EXCLUDED TAX" has the meaning specified in Section 3.03.

            "NON-EXTENSION  ADVANCE"  means an Advance made  pursuant to Section
      2.02(b).

            "NOTICE OF BORROWING" has the meaning specified in Section 2.02(e).

            "NOTICE  OF  REPLACEMENT   SUBORDINATION   AGENT"  has  the  meaning
      specified in Section 3.08.


<PAGE>

            "PERFORMING  NOTE  DEFICIENCY"  means any time that less than 65% of
      the then aggregate outstanding principal amount of all Equipment Notes are
      Performing Equipment Notes.

            "PROSPECTUS  SUPPLEMENT" means the Prospectus Supplement dated March
      1, 2000 relating to the Certificates, as such Prospectus Supplement may be
      amended or supplemented.

            "PROVIDER  ADVANCE"  means a  Downgrade  Advance or a  Non-Extension
      Advance.

            "REFERENCE BANK" has the meaning specified in Section 7.08(a).

            "REGULATORY CHANGE" has the meaning assigned to such term in Section
      3.01.

            "REPLENISHMENT  AMOUNT"  has the  meaning  assigned  to such term in
      Section 2.06(b).

            "REQUIRED  AMOUNT"  means,  for any  day,  the sum of the  aggregate
      amount of interest,  calculated  at the rate per annum equal to the Stated
      Interest Rate for the Class C-2 Certificates, that would be payable on the
      Class C-2 Certificates on each of the three successive  semiannual Regular
      Distribution  Dates  immediately  following  such day or, if such day is a
      Regular  Distribution  Date, on such day and the succeeding two semiannual
      Regular  Distribution  Dates,  in each case calculated on the basis of the
      Pool Balance of the Class C-2  Certificates on such day and without regard
      to expected future payments of principal on the Class C-2 Certificates.

            "SUCCESSOR  TRUST" means  Continental  Airlines  Pass Through  Trust
      2000-1C-2-S.

            "TERMINATION DATE" means the earliest to occur of the following: (i)
      the  Expiry  Date;  (ii) the date on which the  Borrower  delivers  to the
      Liquidity Provider a certificate,  signed by a Responsible  Officer of the
      Borrower, certifying that all of the Class C-2 Certificates have been paid
      in full (or provision  has been made for such payment in  accordance  with
      the Intercreditor  Agreement and the Trust Agreements) or are otherwise no
      longer entitled to the benefits of this Agreement; (iii) the date on which
      the Borrower delivers to the Liquidity Provider a certificate, signed by a
      Responsible  Officer  of  the  Borrower,  certifying  that  a  Replacement
      Liquidity  Facility  has  been  substituted  for  this  Agreement  in full
      pursuant to Section 3.6(e) of the Intercreditor Agreement;  (iv) the fifth
      Business Day following the receipt by the Borrower of a Termination Notice
      from the Liquidity  Provider pursuant to Section 6.01 hereof;  and (v) the
      date on which no Advance is or may  (including by reason of  reinstatement
      as herein provided) become available for a Borrowing hereunder.

            "TERMINATION  NOTICE" means the Notice of Termination  substantially
      in the form of Annex V to this Agreement.

            "TRANSFEREE"  has  the  meaning  assigned  to such  term in  Section
      7.08(b).


<PAGE>

            "UNAPPLIED DOWNGRADE ADVANCE" means any Downgrade Advance other than
      an Applied Downgrade Advance.

            "UNAPPLIED  PROVIDER  ADVANCE" means any Provider Advance other than
      an Applied Provider Advance.

            "UNPAID  ADVANCE"  has the meaning  assigned to such term in Section
      2.05.

            (b) TERMS DEFINED IN THE INTERCREDITOR  AGREEMENT.  For all purposes
of this  Agreement,  the  following  terms  shall have the  respective  meanings
assigned to such terms in the Intercreditor Agreement:

      "ACCELERATION",  "CERTIFICATES",  "CLASS  A-1  CERTIFICATES",  "CLASS  A-2
      CERTIFICATES",  "CLASS B CERTIFICATES",  "CLASS C-1 CERTIFICATES",  "CLASS
      C-2 CASH COLLATERAL ACCOUNT",  "CLASS C-2 CERTIFICATEHOLDERS",  "CLASS C-2
      CERTIFICATES",  "CLASS C-2 TRUST", "CLASS C-2 TRUST AGREEMENT", "CLASS C-2
      TRUSTEE", "CLOSING DATE",  "CONTINENTAL",  "CONTINENTAL BANKRUPTCY EVENT",
      "CONTROLLING  PARTY",  "CORPORATE  TRUST OFFICE",  "DELIVERY PERIOD EXPIRY
      DATE", "DISTRIBUTION DATE", "DOWNGRADED Facility", "EQUIPMENT NOTES", "FEE
      LETTER",   "FINAL  LEGAL  DISTRIBUTION   DATE",   "FINANCING   AGREEMENT",
      "INDENTURE",   "INVESTMENT   EARNINGS",   "LEASED  AIRCRAFT",   "LIQUIDITY
      FACILITY",    "LIQUIDITY   OBLIGATIONS",    "LOAN   TRUSTEE",   "MOODY'S",
      "NON-EXTENDED   FACILITY",    "NOTE   PURCHASE   Agreement",    "OPERATIVE
      AGREEMENTS",  "OWNED  AIRCRAFT",  "PARTICIPATION  AGREEMENT",  "PERFORMING
      EQUIPMENT  NOTE",  "PERSON",  "POOL BALANCE",  "RATING  AGENCY",  "RATINGS
      CONFIRMATION",   "REGULAR  DISTRIBUTION  DATE",   "REPLACEMENT   LIQUIDITY
      FACILITY",  "RESPONSIBLE OFFICER", "SCHEDULED PAYMENT", "SPECIAL PAYMENT",
      "STANDARD  &  POOR'S",  "STATED  INTEREST  Rate",  "SUBORDINATION  AGENT",
      "TAXES", "THRESHOLD RATING",  "TRANSFER",  "TRUST AGREEMENTS",  "TRUSTEE",
      "UNDERWRITERS", "UNDERWRITING Agreement", and "WRITTEN NOTICE".


                                   ARTICLE II

                       AMOUNT AND TERMS OF THE COMMITMENT

            Section  2.01.   THE  ADVANCES.   The  Liquidity   Provider   hereby
irrevocably  agrees, on the terms and conditions  hereinafter set forth, to make
Advances to the Borrower from time to time on any Business Day during the period
from the Effective Date until 12:00 Noon (New York City time) on the Expiry Date
(unless the obligations of the Liquidity Provider shall be earlier terminated in
accordance with the terms of Section 2.04(b)) in an aggregate amount at any time
outstanding not to exceed the Maximum Commitment.

            Section 2.02.  MAKING THE ADVANCES.  (a) Interest  Advances shall be
made in one or more  Borrowings by delivery to the Liquidity  Provider of one or
more written and  completed  Notices of Borrowing in  substantially  the form of
Annex I attached hereto,  signed by a Responsible Officer of the Borrower, in an
amount not exceeding the Maximum Available  Commitment at such time and shall be
used solely for the payment  when due of interest on the Class C-2  Certificates
at the Stated  Interest Rate therefor in accordance  with Section  3.6(a) of the


<PAGE>

Intercreditor   Agreement.   Each   Interest   Advance  made   hereunder   shall
automatically  reduce the Maximum Available  Commitment and the amount available
to be borrowed  hereunder by subsequent  Advances by the amount of such Interest
Advance  (subject  to  reinstatement  as provided  in the next  sentence).  Upon
repayment  to the  Liquidity  Provider  in full of the  amount  of any  Interest
Advance made pursuant to this Section  2.02(a),  together with accrued  interest
thereon  (as  provided  herein),  the  Maximum  Available  Commitment  shall  be
reinstated by the amount of such repaid Interest Advance,  but not to exceed the
Maximum Commitment;  PROVIDED,  HOWEVER,  that the Maximum Available  Commitment
shall not be so reinstated at any time if (i) a Liquidity Event of Default shall
have occurred and be continuing and (ii) there is a Performing Note Deficiency.

            (b) A Non-Extension  Advance shall be made in a single  Borrowing if
this  Agreement  is not  extended  in  accordance  with  Section  3.6(d)  of the
Intercreditor Agreement (unless a Replacement Liquidity Facility to replace this
Agreement  shall have been  delivered  to the Borrower as  contemplated  by said
Section 3.6(d) within the time period  specified in such Section) by delivery to
the  Liquidity  Provider  of a written  and  completed  Notice of  Borrowing  in
substantially  the form of Annex II  attached  hereto,  signed by a  Responsible
Officer of the Borrower,  in an amount equal to the Maximum Available Commitment
at such time, and shall be used to fund the Class C-2 Cash Collateral Account in
accordance  with said  Section  3.6(d) and Section  3.6(f) of the  Intercreditor
Agreement.

            (c) A Downgrade  Advance shall be made in a single  Borrowing upon a
downgrading of the Guarantor's short-term unsecured debt rating issued by either
Rating Agency below the applicable  Threshold Rating or the Guarantee  Agreement
ceasing to be in full force and effect or becoming  invalid or  unenforceable or
the  Guarantor  denying its  liability  thereunder  (as  provided for in Section
3.6(c) of the Intercreditor  Agreement) unless a Replacement  Liquidity Facility
to replace this Agreement shall have been  previously  delivered to the Borrower
in accordance with said Section 3.6(c), by delivery to the Liquidity Provider of
a written and completed Notice of Borrowing in  substantially  the form of Annex
III attached  hereto,  signed by a Responsible  Officer of the  Borrower,  in an
amount equal to the Maximum Available Commitment at such time, and shall be used
to fund the Class C-2 Cash  Collateral  Account in accordance  with said Section
3.6(c) and Section 3.6(f) of the Intercreditor Agreement.

            (d) A Final  Advance  shall be made in a single  Borrowing  upon the
receipt by the  Borrower of a  Termination  Notice from the  Liquidity  Provider
pursuant  to Section  6.01 hereof by  delivery  to the  Liquidity  Provider of a
written and completed Notice of Borrowing in substantially  the form of Annex IV
attached hereto,  signed by a Responsible Officer of the Borrower,  in an amount
equal to the Maximum  Available  Commitment  at such time,  and shall be used to
fund the Class C-2 Cash  Collateral  Account (in accordance with Sections 3.6(f)
and 3.6(i) of the Intercreditor Agreement).

            (e) Each Borrowing  shall be made on notice in writing (a "NOTICE OF
BORROWING")  in  substantially  the form required by Section  2.02(a),  2.02(b),
2.02(c) or 2.02(d),  as the case may be, given by the Borrower to the  Liquidity
Provider.  If a Notice of  Borrowing  is delivered by the Borrower in respect of
any  Borrowing no later than 1:00 p.m.  (New York City time) on a Business  Day,


<PAGE>

upon  satisfaction  of the  conditions  precedent set forth in Section 4.02 with
respect to a requested Borrowing, the Liquidity Provider shall make available to
the Borrower,  in accordance with its payment  instructions,  the amount of such
Borrowing in U.S. dollars and immediately available funds, before 4:00 p.m. (New
York City time) on such Business Day or on such later  Business Day specified in
such Notice of Borrowing.  If a Notice of Borrowing is delivered by the Borrower
in respect of any  Borrowing  on a day that is not a Business  Day or after 1:00
p.m. (New York City time) on a Business Day, upon satisfaction of the conditions
precedent set forth in Section 4.02 with respect to a requested  Borrowing,  the
Liquidity Provider shall make available to the Borrower,  in accordance with its
payment  instructions,  the  amount of such  Borrowing  in U.S.  dollars  and in
immediately available funds, before 12:00 Noon (New York City time) on the first
Business Day next following the day of receipt of such Notice of Borrowing or on
such later  Business Day  specified by the Borrower in such Notice of Borrowing.
Payments  of  proceeds  of a  Borrowing  shall  be  made  by  wire  transfer  of
immediately  available  funds to the  Borrower  in  accordance  with  such  wire
transfer  instructions  as the Borrower  shall  furnish from time to time to the
Liquidity  Provider  for  such  purpose.  Each  Notice  of  Borrowing  shall  be
irrevocable and binding on the Borrower.

            (f) Upon the making of any Advance requested pursuant to a Notice of
Borrowing, in accordance with the Borrower's payment instructions, the Liquidity
Provider shall be fully  discharged of its obligation  hereunder with respect to
such Notice of Borrowing,  and the Liquidity  Provider  shall not  thereafter be
obligated  to make any further  Advances  hereunder in respect of such Notice of
Borrowing  to the Borrower or to any other  Person.  If the  Liquidity  Provider
makes an Advance  requested  pursuant to a Notice of Borrowing before 12:00 Noon
(New York  City  time) on the  second  Business  Day  after the date of  payment
specified in said  Section  2.02(e),  the  Liquidity  Provider  shall have fully
discharged its  obligations  hereunder with respect to such Advance and an event
of  default  shall not have  occurred  hereunder.  Following  the  making of any
Advance  pursuant  to Section  2.02(b),  (c) or (d) hereof to fund the Class C-2
Cash  Collateral  Account,  the Liquidity  Provider shall have no interest in or
rights to the Class  C-2 Cash  Collateral  Account,  such  Advance  or any other
amounts from time to time on deposit in the Class C-2 Cash  Collateral  Account;
PROVIDED that the foregoing  shall not affect or impair the  obligations  of the
Subordination Agent to make the distributions  contemplated by Section 3.6(e) or
(f) of the Intercreditor  Agreement,  and provided  further,  that the foregoing
shall not  affect or impair  the  rights of the  Liquidity  Provider  to provide
written  instructions with respect to the investment and reinvestment of amounts
in the Cash Collateral  Accounts to the extent provided in Section 2.2(b) of the
Intercreditor  Agreement.  By  paying  to  the  Borrower  proceeds  of  Advances
requested by the Borrower in accordance  with the provisions of this  Agreement,
the  Liquidity   Provider  makes  no   representation  as  to,  and  assumes  no
responsibility for, the correctness or sufficiency for any purpose of the amount
of the Advances so made and requested.

            Section  2.03.  FEES.  The Borrower  agrees to pay to the  Liquidity
Provider the fees set forth in the Fee Letter applicable to this Agreement.


<PAGE>

            Section 2.04. REDUCTIONS OR TERMINATION OF THE MAXIMUM COMMITMENT.

            (a) AUTOMATIC  REDUCTION.  Promptly following each date on which the
Required Amount is reduced as a result of a reduction in the Pool Balance of the
Class C-2 Certificates or otherwise,  the Maximum Commitment shall automatically
be reduced to an amount equal to such reduced  Required Amount (as calculated by
the Borrower); PROVIDED that on the first Regular Distribution Date, the Maximum
Commitment  shall  automatically  be reduced to the then  Required  Amount.  The
Borrower  shall  give  notice of any such  automatic  reduction  of the  Maximum
Commitment to the  Liquidity  Provider  within two Business  Days  thereof.  The
failure  by the  Borrower  to furnish  any such  notice  shall not  affect  such
automatic reduction of the Maximum Commitment.

            (b)  TERMINATION.  Upon the making of any Provider  Advance or Final
Advance  hereunder or the occurrence of the Termination  Date, the obligation of
the Liquidity  Provider to make further Advances  hereunder shall  automatically
and irrevocably terminate, and the Borrower shall not be entitled to request any
further Borrowing hereunder.

            Section 2.05.  REPAYMENTS OF INTEREST ADVANCES OR THE FINAL ADVANCE.
Subject to Sections  2.06,  2.07 and 2.09 hereof,  the Borrower  hereby  agrees,
without notice of an Advance or demand for repayment from the Liquidity Provider
(which notice and demand are hereby waived by the Borrower), to pay, or to cause
to be paid,  to the  Liquidity  Provider  on each  date on which  the  Liquidity
Provider shall make an Interest Advance or the Final Advance, an amount equal to
(a) the amount of such Advance (any such Advance,  until repaid,  is referred to
herein as an "UNPAID  ADVANCE"),  plus (b)  interest  on the amount of each such
Unpaid  Advance as provided in Section  3.07  hereof;  PROVIDED  that if (i) the
Liquidity Provider shall make a Provider Advance at any time after making one or
more Interest  Advances which shall not have been repaid in accordance with this
Section 2.05 or (ii) this Liquidity Facility shall become a Downgraded  Facility
or Non-Extended  Facility at any time when  unreimbursed  Interest Advances have
reduced the Maximum  Available  Commitment to zero, then such Interest  Advances
shall  cease to  constitute  Unpaid  Advances  and  shall be deemed to have been
changed into an Applied Downgrade Advance or an Applied  Non-Extension  Advance,
as the case may be,  for all  purposes  of this  Agreement  (including,  without
limitation,  for the  purpose  of  determining  when such  Interest  Advance  is
required to be repaid to the Liquidity  Provider in accordance with Section 2.06
and for the  purposes  of  Section  2.06(b)).  The  Borrower  and the  Liquidity
Provider  agree that the  repayment in full of each  Interest  Advance and Final
Advance on the date such  Advance is made is  intended  to be a  contemporaneous
exchange for new value given to the Borrower by the Liquidity Provider.

            Section 2.06. REPAYMENTS OF PROVIDER ADVANCES.  (a) Amounts advanced
hereunder in respect of a Provider  Advance  shall be deposited in the Class C-2
Cash  Collateral  Account,  invested  and  withdrawn  from  the  Class  C-2 Cash
Collateral  Account  as  set  forth  in  Sections  3.6(c),  (d)  and  (f) of the
Intercreditor  Agreement.  The Borrower agrees to pay to the Liquidity Provider,
on each Regular Distribution Date,  commencing on the first Regular Distribution
Date after the making of a Provider Advance, interest on the principal amount of
any such Provider Advance as provided in Section 3.07; PROVIDED,  HOWEVER,  that


<PAGE>

amounts  in  respect of a  Provider  Advance  withdrawn  from the Class C-2 Cash
Collateral  Account  for  the  purpose  of  paying  interest  on the  Class  C-2
Certificates  in accordance with Section 3.6(f) of the  Intercreditor  Agreement
(the amount of any such withdrawal being (y) in the case of a Downgrade Advance,
an "APPLIED DOWNGRADE  ADVANCE" and (z) in the case of a Non-Extension  Advance,
an "APPLIED  NON-EXTENSION  ADVANCE"  and,  together  with an Applied  Downgrade
Advance,  an "APPLIED  PROVIDER  ADVANCE") shall thereafter  (subject to Section
2.06(b)) be treated as an Interest  Advance under this Agreement for purposes of
determining the Applicable Liquidity Rate for interest payable thereon; PROVIDED
FURTHER,  HOWEVER,  that if,  following  the making of a Provider  Advance,  the
Liquidity  Provider  delivers a Termination  Notice to the Borrower  pursuant to
Section 6.01 hereof,  such  Provider  Advance  shall  thereafter be treated as a
Final Advance under this  Agreement for purposes of  determining  the Applicable
Liquidity Rate for interest payable  thereon.  Subject to Sections 2.07 and 2.09
hereof,  immediately  upon the withdrawal of any amounts from the Class C-2 Cash
Collateral  Account  on account  of a  reduction  in the  Required  Amount,  the
Borrower  shall  repay to the  Liquidity  Provider  a  portion  of the  Provider
Advances in a principal  amount equal to such  reduction,  plus  interest on the
principal amount prepaid as provided in Section 3.07 hereof.

            (b) At any time when an Applied  Provider  Advance  (or any  portion
thereof)  is  outstanding,  upon the  deposit  in the Class C-2 Cash  Collateral
Account  of any amount  pursuant  to clause  "THIRD"  of  Section  2.4(b) of the
Intercreditor  Agreement,  clause  "THIRD" of Section  3.2 of the  Intercreditor
Agreement or clause "FOURTH" of Section 3.3 of the Intercreditor  Agreement (any
such amount being a  "REPLENISHMENT  AMOUNT") for the purpose of replenishing or
increasing the balance  thereof up to the Required  Amount at such time, (i) the
aggregate  outstanding principal amount of all Applied Provider Advances (and of
Provider Advances treated as an Interest Advance for purposes of determining the
Applicable  Liquidity Rate for interest  payable thereon) shall be automatically
reduced  by the  amount  of such  Replenishment  Amount  and (ii) the  aggregate
outstanding  principal  amount  of all  Unapplied  Provider  Advances  shall  be
automatically increased by the amount of such Replenishment Amount.

            (c)  Upon the  provision  of a  Replacement  Liquidity  Facility  in
replacement  of  this  Agreement  in  accordance  with  Section  3.6(e)  of  the
Intercreditor  Agreement,  amounts  remaining  on  deposit in the Class C-2 Cash
Collateral  Account after giving effect to any Applied  Provider  Advance on the
date of such replacement shall be reimbursed to the Liquidity Provider, but only
to the extent  such  amounts  are  necessary  to repay in full to the  Liquidity
Provider all amounts owing to it hereunder.

            Section  2.07.   PAYMENTS  TO  THE  LIQUIDITY   PROVIDER  UNDER  THE
INTERCREDITOR  AGREEMENT.  In order to provide for payment or  repayment  to the
Liquidity  Provider  of  any  amounts  hereunder,  the  Intercreditor  Agreement
provides  that amounts  available  and referred to in Articles II and III of the
Intercreditor  Agreement,  to  the  extent  payable  to the  Liquidity  Provider
pursuant  to  the  terms  of the  Intercreditor  Agreement  (including,  without
limitation, Section 3.6(f) of the Intercreditor Agreement), shall be paid to the
Liquidity Provider in accordance with the terms thereof.  Amounts so paid to the
Liquidity  Provider  shall be applied by the  Liquidity  Provider  to  Liquidity
Obligations then due and payable in accordance with the Intercreditor  Agreement


<PAGE>

or, if not provided for in the Intercreditor  Agreement,  then in such manner as
the Liquidity Provider shall deem appropriate.

            Section 2.08. BOOK ENTRIES. The Liquidity Provider shall maintain in
accordance  with its usual  practice  an  account  or  accounts  evidencing  the
indebtedness of the Borrower  resulting from Advances made from time to time and
the amounts of principal  and interest  payable  hereunder and paid from time to
time in respect thereof;  PROVIDED,  HOWEVER,  that the failure by the Liquidity
Provider to maintain such account or accounts  shall not affect the  obligations
of the Borrower in respect of Advances.

            Section 2.09. PAYMENTS FROM AVAILABLE FUNDS ONLY. All payments to be
made by the Borrower  under this  Agreement  shall be made only from the amounts
that constitute  Scheduled Payments,  Special Payments or payments under Section
8.1 of the  Participation  Agreements with respect to Owned  Aircraft,  payments
under  Section  9.1 of the  Participation  Agreements  with  respect  to  Leased
Aircraft and payments under Section 6 of the Note Purchase Agreement and only to
the extent that the Borrower shall have sufficient income or proceeds  therefrom
to enable the  Borrower to make  payments in  accordance  with the terms  hereof
after  giving  effect to the  priority of payments  provisions  set forth in the
Intercreditor  Agreement. The Liquidity Provider agrees that it will look solely
to such amounts to the extent  available for  distribution  to it as provided in
the  Intercreditor  Agreement and this  Agreement and that the Borrower,  in its
individual  capacity,  is not personally liable to it for any amounts payable or
liability under this Agreement  except as expressly  provided in this Agreement,
the Intercreditor Agreement or any Participation  Agreement.  Amounts on deposit
in the Class C-2 Cash  Collateral  Account shall be available to the Borrower to
make  payments  under this  Agreement  only to the  extent and for the  purposes
expressly contemplated in Section 3.6(f) of the Intercreditor Agreement.

            Section 2.10. EXTENSION OF THE EXPIRY DATE;  NON-EXTENSION  ADVANCE.
The Expiry Date shall be automatically extended, effective on the 25th day prior
to each Expiry Date  (unless such Expiry Date is on or after the date that is 15
days after the Final Legal  Distribution  Date for the Class C-2  Certificates),
for a period of 364 days after such Expiry Date (unless the  obligations  of the
Liquidity  Provider are earlier terminated in accordance with the terms hereof),
without the  necessity of any act on the part of the  Borrower or the  Liquidity
Provider,  unless the Liquidity Provider shall advise the Borrower prior to such
25th day that it does not agree to such  extension of such Expiry Date, in which
event (and if the Liquidity  Provider shall not have been replaced in accordance
with Section  3.6(e) of the  Intercreditor  Agreement),  the  Borrower  shall be
entitled on and after such 25th day (but prior to such Expiry Date) to request a
Non-Extension  Advance in  accordance  with Section  2.02(b)  hereof and Section
3.6(d) of the Intercreditor Agreement.


<PAGE>

                                   ARTICLE III

                           OBLIGATIONS OF THE BORROWER

            Section  3.01.  INCREASED  COSTS.  The  Borrower  shall  pay  to the
Liquidity  Provider  from  time to time  such  amounts  as may be  necessary  to
compensate  the  Liquidity  Provider  for any  increased  costs  incurred by the
Liquidity Provider which are attributable to its making or maintaining any LIBOR
Advances hereunder or its obligation to make any such Advances hereunder, or any
reduction  in  any  amount  receivable  by the  Liquidity  Provider  under  this
Agreement or the Intercreditor Agreement in respect of any such Advances or such
obligation  (such increases in costs and reductions in amounts  receivable being
herein called "ADDITIONAL  COSTS"),  resulting from any change after the date of
this Agreement in U.S. federal, state, municipal, or foreign laws or regulations
(including  Regulation  D of the  Board  of  Governors  of the  Federal  Reserve
System),  or the  adoption  or making  after the date of this  Agreement  of any
interpretations,  directives,  or  requirements  applying  to a class  of  banks
including the Liquidity Provider under any U.S. federal,  state,  municipal,  or
any foreign laws or regulations  (whether or not having the force of law) by any
court,  central bank or monetary  authority  charged with the  interpretation or
administration thereof (a "REGULATORY CHANGE"),  which: (1) changes the basis of
taxation of any amounts  payable to the Liquidity  Provider under this Agreement
in respect of any such Advances (other than Excluded  Taxes);  or (2) imposes or
modifies any reserve,  special deposit,  compulsory loan or similar requirements
relating to any  extensions  of credit or other assets of, or any deposits  with
other liabilities of, the Liquidity Provider (including any such Advances or any
deposits  referred to in the  definition of LIBOR Rate or related  definitions).
The  Liquidity  Provider  agrees  to use  reasonable  efforts  (consistent  with
applicable legal and regulatory  restrictions) to change the jurisdiction of its
Facility  Office if making such  change  would avoid the need for, or reduce the
amount of, any amount payable under this Section that may thereafter  accrue and
would not, in the reasonable  judgment of the Liquidity  Provider,  be otherwise
disadvantageous to the Liquidity Provider.

            The  Liquidity  Provider  will  notify  the  Borrower  of any  event
occurring  after the date of this  Agreement  that will  entitle  the  Liquidity
Provider  to  compensation   pursuant  to  this  Section  3.01  as  promptly  as
practicable  after it obtains  knowledge  thereof and determines to request such
compensation,  which notice shall describe in reasonable  detail the calculation
of the amounts owed under this Section. Determinations by the Liquidity Provider
for purposes of this Section 3.01 of the effect of any Regulatory  Change on its
costs of  making or  maintaining  Advances  or on  amounts  receivable  by it in
respect of Advances,  and of the additional  amounts  required to compensate the
Liquidity  Provider  in respect of any  Additional  Costs,  shall be prima facie
evidence of the amount owed under this Section.

            Notwithstanding the preceding two paragraphs, the Liquidity Provider
and the  Subordination  Agent agree that the initial  Liquidity  Provider (i.e.,
Morgan Stanley  Capital  Services Inc.) shall not be entitled to the benefits of
the preceding  two  paragraphs;  PROVIDED,  HOWEVER,  any permitted  assignee or
participant of the initial  Liquidity  Provider which is a bank organized  under
the laws of the United  States or any State  thereof  shall be  entitled  to the


<PAGE>

benefits of the preceding two paragraphs (subject,  in the case of any permitted
participant, to the limitation set forth in Section 7.08 hereof).

            Section 3.02. CAPITAL ADEQUACY. If (1) the adoption,  after the date
hereof, of any applicable governmental law, rule or regulation regarding capital
adequacy,  (2) any  change,  after the date  hereof,  in the  interpretation  or
administration  of any such law, rule or regulation by any central bank or other
governmental authority charged with the interpretation or administration thereof
or (3) compliance by the Liquidity  Provider or any corporation  controlling the
Liquidity  Provider  with  any  applicable   guideline  or  request  of  general
applicability,  issued  after  the date  hereof,  by any  central  bank or other
governmental authority (whether or not having the force of law) that constitutes
a change of the nature  described  in clause (2), has the effect of requiring an
increase in the amount of capital  required to be  maintained  by the  Liquidity
Provider  or any  corporation  controlling  the  Liquidity  Provider,  and  such
increase is based upon the Liquidity Provider's  obligations hereunder and other
similar obligations,  the Borrower shall pay to the Liquidity Provider from time
to time such  additional  amount or amounts as are necessary to  compensate  the
Liquidity  Provider  for such  portion of such  increase as shall be  reasonably
allocable to the Liquidity Provider's obligations to the Borrower hereunder. The
Liquidity Provider agrees to use reasonable efforts  (consistent with applicable
legal and regulatory  restrictions)  to change the  jurisdiction of its Facility
Office if making such change  would avoid the need for, or reduce the amount of,
any amount payable under this Section that may thereafter  accrue and would not,
in the reasonable  judgment of the Liquidity Provider,  be otherwise  materially
disadvantageous to the Liquidity Provider.

            The  Liquidity  Provider  will  notify  the  Borrower  of any  event
occurring  after the date of this  Agreement  that will  entitle  the  Liquidity
Provider  to  compensation   pursuant  to  this  Section  3.02  as  promptly  as
practicable  after it obtains  knowledge  thereof and determines to request such
compensation,  which notice shall describe in reasonable  detail the calculation
of the amounts owed under this Section. Determinations by the Liquidity Provider
for purposes of this Section 3.02 of the effect of any increase in the amount of
capital  required to be maintained  by the Liquidity  Provider and of the amount
allocable to the  Liquidity  Provider's  obligations  to the Borrower  hereunder
shall be prima facie evidence of the amounts owed under this Section.

            Notwithstanding the preceding two paragraphs, the Liquidity Provider
and the  Subordination  Agent agree that the initial  Liquidity  Provider (i.e.,
Morgan Stanley  Capital  Services Inc.) shall not be entitled to the benefits of
the preceding  two  paragraphs;  PROVIDED,  HOWEVER,  any permitted  assignee or
participant of the initial  Liquidity  Provider which is a bank organized  under
the laws of the United  States or any State  thereof  shall be  entitled  to the
benefits of the preceding two paragraphs (subject,  in the case of any permitted
participant, to the limitation set forth in Section 7.08 hereof).

            Section 3.03. PAYMENTS FREE OF DEDUCTIONS.  All payments made by the
Borrower  under  this  Agreement  shall be made free and clear of,  and  without
reduction  for or on account  of, any  present or future  stamp or other  taxes,
levies, imposts, duties, charges, fees, deductions,  withholdings,  restrictions
or  conditions  of any  nature  whatsoever  now or  hereafter  imposed,  levied,
collected,  withheld or assessed,  excluding  Excluded Taxes (such  non-excluded


<PAGE>

taxes  being  referred to herein,  collectively,  as  "NON-EXCLUDED  TAXES" and,
individually,  as a "NON-EXCLUDED  TAX"). If any Non-Excluded Taxes are required
to be withheld  from any amounts  payable to the Liquidity  Provider  under this
Agreement,  the amounts so payable to the Liquidity  Provider shall be increased
to the extent necessary to yield to the Liquidity Provider (after payment of all
Non-Excluded  Taxes)  interest  or any other  such  amounts  payable  under this
Agreement  at the  rates or in the  amounts  specified  in this  Agreement.  The
Liquidity  Provider  agrees  to use  reasonable  efforts  (consistent  with  its
internal   policy  and  legal  and  regulatory   restrictions)   to  change  the
jurisdiction  of its Facility  Office if making such change would avoid the need
for, or reduce the amount of, any such  additional  amounts that may  thereafter
accrue and would not, in the reasonable judgment of the Liquidity  Provider,  be
otherwise  disadvantageous to the Liquidity Provider. From time to time upon the
reasonable  request of the Borrower,  if the Liquidity Provider is not organized
under the laws of the United States or any State thereof, the Liquidity Provider
agrees to provide to the  Borrower two original  Internal  Revenue  Service Form
W-8BEN or W-8ECI,  as appropriate,  or any successor or other form prescribed by
the Internal Revenue Service,  certifying that the Liquidity  Provider is exempt
from or entitled to a reduced rate of United States  withholding tax on payments
pursuant to this Agreement.

            Section 3.04. PAYMENTS.  The Borrower shall make or cause to be made
each payment to the Liquidity  Provider  under this Agreement so as to cause the
same to be received by the Liquidity Provider not later than 1:00 P.M. (New York
City time) on the day when due.  The  Borrower  shall make all such  payments in
lawful  money of the United  States of  America,  to the  Liquidity  Provider in
immediately  available funds, by wire transfer to Citibank,  N.A., New York, NY,
ABA# 021000089,  Account Name: Morgan Stanley Capital Services Inc., in favor of
account number 4072-4601, Reference:
Continental Airlines EETC 2000-1C-2.

            Section 3.05.  COMPUTATIONS.  All  computations of interest based on
the Base Rate  shall be made on the  basis of a year of 365 or 366 days,  as the
case may be, and all  computations  of interest based on the LIBOR Rate shall be
made on the basis of a year of 360 days,  in each case for the actual  number of
days  (including  the first day but  excluding  the last day)  occurring  in the
period for which such interest is payable.

            Section 3.06. PAYMENT ON NON-BUSINESS DAYS.  Whenever any payment to
be made hereunder  shall be stated to be due on a day other than a Business Day,
such payment shall be made on the next succeeding Business Day and no additional
interest shall be due as a result (and if so made,  shall be deemed to have been
made when  due).  If any  payment in  respect  of  interest  on an Advance is so
deferred to the next succeeding  Business Day, such deferral shall not delay the
commencement  of the next Interest Period for such Advance (if such Advance is a
LIBOR  Advance) or reduce the number of days for which  interest will be payable
on such Advance on the next interest payment date for such Advance.

            Section 3.07.  INTEREST.  (a) Subject to Section 2.09,  the Borrower
shall pay, or shall cause to be paid, without  duplication,  interest on (i) the
unpaid  principal  amount of each  Advance from and  including  the date of such
Advance (or, in the case of an Applied Provider Advance,  from and including the
date on  which  the  amount  thereof  was  withdrawn  from  the  Class  C-2 Cash


<PAGE>

Collateral  Account  to pay  interest  on the  Class  C-2  Certificates)  to but
excluding the date such principal  amount shall be paid in full (or, in the case
of an Applied Provider Advance,  the date on which the Class C-2 Cash Collateral
Account is fully  replenished  in respect  of such  Advance)  and (ii) any other
amount due hereunder (whether fees,  commissions,  expenses or other amounts or,
to the extent permitted by law, installments of interest on Advances or any such
other  amount)  which is not paid  when due  (whether  at  stated  maturity,  by
acceleration  or  otherwise)  from and  including  the due date  thereof  to but
excluding  the  date  such  amount  is paid in full,  in each  such  case,  at a
fluctuating  interest  rate  per  annum  for each  day  equal to the  Applicable
Liquidity  Rate (as defined  below) for such  Advance or such other amount as in
effect  for such  day,  but in no event at a rate  per  annum  greater  than the
maximum rate permitted by applicable  law;  PROVIDED,  HOWEVER,  that, if at any
time the  otherwise  applicable  interest rate as set forth in this Section 3.07
shall exceed the maximum rate  permitted by applicable  law, then any subsequent
reduction  in such  interest  rate will not reduce the rate of interest  payable
pursuant to this Section 3.07 below the maximum rate permitted by applicable law
until the total amount of interest  accrued  equals the amount of interest  that
would have accrued if such  otherwise  applicable  interest rate as set forth in
this Section 3.07 had at all times been in effect.

            (b) Except as provided  in clause (e) below,  each  Advance  will be
either a Base Rate Advance or a LIBOR Advance as provided in this Section.  Each
such  Advance  will be a Base Rate  Advance  for the period from the date of its
borrowing to (but  excluding)  the third  Business Day  following  the Liquidity
Provider's receipt of the Notice of Borrowing for such Advance. Thereafter, such
Advance shall be a LIBOR  Advance;  provided that the Borrower (at the direction
of  the  Controlling  Party,  so  long  as the  Liquidity  Provider  is not  the
Controlling Party) may (x) convert the Final Advance into a Base Rate Advance on
the last day of an  Interest  Period for such  Advance  by giving the  Liquidity
Provider no less than four Business  Days' prior written notice of such election
or (y)  elect to  maintain  the Final  Advance  as a Base  Rate  Advance  by not
requesting a conversion of the Final Advance to a LIBOR Advance under Clause (5)
of the  applicable  Notice of Borrowing  (or, if such Final Advance is deemed to
have been made,  without  delivery of a Notice of Borrowing  pursuant to Section
2.06, by requesting,  prior to 11:00 A.M. on the first Business Day  immediately
following the Borrower's receipt of the applicable Termination Notice, that such
Final Advance not be converted from a Base Rate Advance to a LIBOR Advance).

            (c) Each LIBOR  Advance  shall bear  interest  during each  Interest
Period at a rate per annum equal to the LIBOR Rate for such Interest Period plus
the Applicable Margin for such LIBOR Advance, payable in arrears on the last day
of such  Interest  Period and, in the event of the payment of  principal of such
LIBOR Advance on a day other than such last day, on the date of such payment (to
the extent of interest accrued on the amount of principal repaid).

            (d) Each Base Rate Advance  shall bear  interest at a rate per annum
equal to the Base Rate plus the  Applicable  Margin for such Base Rate  Advance,
payable in arrears on each  Regular  Distribution  Date and, in the event of the
payment  of  principal  of such Base Rate  Advance on a day other than a Regular
Distribution  Date,  on the date of such  payment  (to the  extent  of  interest
accrued on the amount of principal repaid).


<PAGE>

            (e) Each outstanding  Unapplied Provider Advance shall bear interest
in an amount equal to the Investment Earnings on amounts on deposit in the Class
C-2 Cash  Collateral  Account  plus the  Applicable  Margin  for such  Unapplied
Provider  Advance on the amount of such Unapplied  Provider Advance from time to
time, payable in arrears on each Regular Distribution Date.

            (f)  Each  amount  not  paid  when  due  hereunder   (whether  fees,
commissions, expenses or other amounts or, to the extent permitted by applicable
law,  installments  of interest on Advances but excluding  Advances)  shall bear
interest at a rate per annum equal to the Base Rate plus 2.00% until paid.

            (g) Each change in the Base Rate shall become effective immediately.
The rates of interest specified in this Section 3.07 with respect to any Advance
or other amount shall be referred to as the "APPLICABLE LIQUIDITY RATE".

            Section 3.08. REPLACEMENT OF BORROWER. From time to time and subject
to the successor  Borrower's  meeting the eligibility  requirements set forth in
Section  6.9 of the  Intercreditor  Agreement  applicable  to the  Subordination
Agent,  upon the  effective  date and time  specified in a written and completed
Notice of Replacement  Subordination Agent in substantially the form of Annex VI
attached hereto (a "NOTICE OF REPLACEMENT SUBORDINATION Agent") delivered to the
Liquidity  Provider by the then  Borrower,  the  successor  Borrower  designated
therein shall be substituted for as the Borrower for all purposes hereunder.

            Section 3.09. FUNDING LOSS  INDEMNIFICATION.  The Borrower shall pay
to the  Liquidity  Provider,  upon the request of the Liquidity  Provider,  such
amount or  amounts  as shall be  sufficient  (in the  reasonable  opinion of the
Liquidity  Provider) to compensate it for any loss, cost, or expense incurred by
reason of the liquidation or redeployment of deposits or other funds acquired by
the Liquidity Provider to fund or maintain any LIBOR Advance (but excluding loss
of anticipated profits) incurred as a result of:

            (1) Any  repayment of a LIBOR  Advance on a date other than the last
      day of the Interest Period for such Advance; or

            (2) Any  failure by the  Borrower  to borrow a LIBOR  Advance on the
      date for borrowing specified in the relevant notice under Section 2.02.

            Section 3.10.  ILLEGALITY.  Notwithstanding  any other  provision in
this Agreement, if any change in any applicable law, rule or regulation,  or any
change in the  interpretation  or  administration  thereof  by any  governmental
authority,  central bank or comparable agency charged with the interpretation or
administration thereof, or compliance by the Liquidity Provider (or its Facility
Office) with any request or  directive  (whether or not having the force of law)
of any such authority,  central bank or comparable agency shall make it unlawful
or impossible for the Liquidity Provider (or its Facility Office) to maintain or
fund its LIBOR  Advances,  then upon  notice to the  Borrower  by the  Liquidity
Provider,  the  outstanding  principal  amount  of the LIBOR  Advances  shall be
converted to Base Rate  Advances (a)  immediately  upon demand of the  Liquidity
Provider, if such change or compliance with such request, in the judgment of the


<PAGE>

Liquidity Provider,  requires immediate  repayment;  or (b) at the expiration of
the last Interest  Period to expire before the effective date of any such change
or request.

                                   ARTICLE IV

                              CONDITIONS PRECEDENT

            Section 4.01. CONDITIONS PRECEDENT TO EFFECTIVENESS OF SECTION 2.01.
Section 2.01 of this  Agreement  shall  become  effective on and as of the first
date (the  "EFFECTIVE  DATE") on which the following  conditions  precedent have
been satisfied or waived:

                  (a) The  Liquidity  Provider  shall have received on or before
      the Closing Date each of the  following,  and in the case of each document
      delivered  pursuant to paragraphs  (i),  (ii) and (iii),  each in form and
      substance satisfactory to the Liquidity Provider:

                  (i) This Agreement duly executed on behalf of the Borrower;

                  (ii) The  Intercreditor  Agreement  duly executed on behalf of
            each of the parties thereto;

                  (iii)  Fully   executed   copies  of  each  of  the  Operative
            Agreements  executed  and  delivered  on or before the Closing  Date
            (other than this Agreement and the Intercreditor Agreement);

                  (iv) A copy of the Prospectus  Supplement and specimen  copies
            of the Class C-2 Certificates;

                  (v) An executed copy of each document, instrument, certificate
            and opinion  delivered on or before the Closing Date pursuant to the
            Class C-2 Trust Agreement, the Intercreditor Agreement and the other
            Operative  Agreements (in the case of each such opinion,  other than
            the opinion of counsel for the Underwriters, either addressed to the
            Liquidity  Provider  or  accompanied  by a letter  from the  counsel
            rendering such opinion to the effect that the Liquidity  Provider is
            entitled  to  rely  on  such  opinion  as of its  date as if it were
            addressed to the Liquidity Provider);

                  (vi)  Evidence that there shall have been made and shall be in
            full force and effect, all filings, recordings and/or registrations,
            and there shall have been given or taken any notice or other similar
            action as may be reasonably  necessary or, to the extent  reasonably
            requested by the Liquidity Provider,  reasonably advisable, in order
            to  establish,  perfect,  protect and preserve the right,  title and
            interest, remedies, powers, privileges, liens and security interests
            of, or for the  benefit  of,  the  Trustees,  the  Borrower  and the
            Liquidity Provider created by the Operative  Agreements executed and
            delivered on or prior to the Closing Date;


<PAGE>

                  (vii) An  agreement  from  Continental,  pursuant to which (i)
            Continental   agrees  to  provide  copies  of  quarterly   financial
            statements and audited annual financial  statements to the Liquidity
            Provider, and such other information as the Liquidity Provider shall
            reasonably request with respect to the transactions  contemplated by
            the  Operative  Agreements,  in each case,  only to the extent  that
            Continental  is obligated to provide  such  information  pursuant to
            Section  8.2.1 of the Leases  (related  to Leased  Aircraft)  or the
            corresponding  section of the Indentures (related to Owned Aircraft)
            to the  parties  thereto  and (ii)  Continental  agrees to allow the
            Liquidity  Provider  to  inspect  Continental's  books  and  records
            regarding such  transactions,  and to discuss such transactions with
            officers and employees of Continental; and

                  (viii)  Such  other  documents,   instruments,   opinions  and
            approvals  pertaining to the transactions  contemplated hereby or by
            the other Operative  Agreements as the Liquidity Provider shall have
            reasonably requested.

            (b) The following statement shall be true on and as of the Effective
      Date:  no event has occurred and is  continuing,  or would result from the
      entering  into of this  Agreement  or the  making  of any  Advance,  which
      constitutes a Liquidity Event of Default.

            (c) The Liquidity  Provider  shall have received  payment in full of
      all fees and other sums  required  to be paid to or for the account of the
      Liquidity Provider on or prior to the Effective Date.

            (d) All  conditions  precedent to the  issuance of the  Certificates
      under the Trust  Agreements  shall  have been  satisfied  or  waived,  all
      conditions   precedent  to  the   effectiveness  of  the  other  Liquidity
      Facilities  shall  have  been  satisfied  or  waived,  and all  conditions
      precedent to the purchase of the  Certificates by the  Underwriters  under
      the Underwriting  Agreement shall have been satisfied  (unless any of such
      conditions precedent shall have been waived by the Underwriters).

            (e) The Borrower shall have received a  certificate,  dated the date
      hereof,  signed  by a duly  authorized  representative  of  the  Liquidity
      Provider, certifying that all conditions precedent to the effectiveness of
      Section 2.01 have been satisfied or waived.

            Section 4.02.  CONDITIONS PRECEDENT TO BORROWING.  The obligation of
the  Liquidity  Provider to make an Advance on the  occasion  of each  Borrowing
shall be subject to the conditions  precedent that the Effective Date shall have
occurred and, on or prior to the date of such Borrowing, the Borrower shall have
delivered a Notice of Borrowing  which  conforms to the terms and  conditions of
this Agreement and has been completed as may be required by the relevant form of
the Notice of Borrowing for the type of Advances requested.


<PAGE>

                                    ARTICLE V

                                    COVENANTS

            Section 5.01.  AFFIRMATIVE COVENANTS OF THE BORROWER. So long as any
Advance  shall remain unpaid or the  Liquidity  Provider  shall have any Maximum
Commitment hereunder or the Borrower shall have any obligation to pay any amount
to the Liquidity  Provider  hereunder,  the Borrower will,  unless the Liquidity
Provider shall otherwise consent in writing:

            (a)  PERFORMANCE  OF THIS AND OTHER  AGREEMENTS.  Punctually  pay or
      cause to be paid all amounts  payable by it under this  Agreement  and the
      other  Operative  Agreements  and  observe  and  perform  in all  material
      respects the  conditions,  covenants  and  requirements  applicable  to it
      contained in this Agreement and the other Operative Agreements.

            (b) REPORTING  REQUIREMENTS.  Furnish to the Liquidity Provider with
      reasonable promptness, such other information and data with respect to the
      transactions contemplated by the Operative Agreements as from time to time
      may be  reasonably  requested by the  Liquidity  Provider;  and permit the
      Liquidity  Provider,  upon  reasonable  notice,  to inspect the Borrower's
      books and  records  with  respect  to such  transactions  and to meet with
      officers and employees of the Borrower to discuss such transactions.

            (c) CERTAIN OPERATIVE AGREEMENTS.  Furnish to the Liquidity Provider
      with reasonable  promptness,  such Operative Agreements entered into after
      the date hereof as from time to time may be  reasonably  requested  by the
      Liquidity Provider.

            Section 5.02.  NEGATIVE  COVENANTS OF THE  BORROWER.  So long as any
Advance  shall remain unpaid or the  Liquidity  Provider  shall have any Maximum
Commitment hereunder or the Borrower shall have any obligation to pay any amount
to the Liquidity Provider hereunder,  the Borrower will not appoint or permit or
suffer to be appointed any successor  Borrower without the prior written consent
of the Liquidity Provider,  which consent shall not be unreasonably  withheld or
delayed.

                                   ARTICLE VI

                           LIQUIDITY EVENTS OF DEFAULT

            Section  6.01.  LIQUIDITY  EVENTS OF DEFAULT.  If (a) any  Liquidity
Event of Default has  occurred and is  continuing  and (b) there is a Performing
Note Deficiency,  the Liquidity Provider may, in its discretion,  deliver to the
Borrower a  Termination  Notice,  the effect of which  shall be to cause (i) the
obligation of the Liquidity Provider to make Advances hereunder to expire on the
fifth Business Day after the date on which such  Termination  Notice is received
by the  Borrower,  (ii) the  Borrower to  promptly  request,  and the  Liquidity
Provider to promptly  make, a Final Advance in accordance  with Section  2.02(d)
hereof  and  Section  3.6(i)  of the  Intercreditor  Agreement,  (iii) all other
outstanding  Advances to be  automatically  converted  into Final  Advances  for
purposes of  determining  the  Applicable  Liquidity  Rate for interest  payable


<PAGE>

thereon,  and (iv)  subject  to  Sections  2.07 and 2.09  hereof,  all  Advances
(including,  without  limitation,  any  Provider  Advance and  Applied  Provider
Advance),  any  accrued  interest  thereon  and any  other  amounts  outstanding
hereunder to become immediately due and payable to the Liquidity Provider.

                                   ARTICLE VII

                                  MISCELLANEOUS

            Section  7.01.  AMENDMENTS,  ETC.  No  amendment  or  waiver  of any
provision  of this  Agreement,  nor  consent to any  departure  by the  Borrower
therefrom,  shall in any event be effective  unless the same shall be in writing
and signed by the Liquidity  Provider,  and, in the case of an amendment or of a
waiver by the Borrower,  the Borrower,  and then such waiver or consent shall be
effective only in the specific  instance and for the specific  purpose for which
given.

            Section 7.02.  NOTICES,  ETC. Except as otherwise expressly provided
herein, all notices and other communications  provided for hereunder shall be in
writing (including telecopier and mailed or delivered or sent by telecopier):

            Borrower:            WILMINGTON TRUST COMPANY
                                 Rodney Square North
                                 1100 North Market Square
                                 Wilmington, DE  19890-0001
                                 Attention:  Corporate Trust Administration

                                 Telephone:  (302) 651-1000
                                 Telecopy:   (302) 651-8882

            Liquidity Provider:  MORGAN STANLEY CAPITAL SERVICES INC.
                                 1585 Broadway
                                 New York, NY 10036
                                 Attention:  Elinor Hoover/Ivana Komarcevic/
                                 Mark Esparrago

                                 Telephone:  (212) 761-2522/1895/2618
                                 Telecopy:   (212) 761-0268

or, as to each of the foregoing, at such other address as shall be designated by
such  Person  in  a  written  notice  to  the  others.   All  such  notices  and
communications  shall be effective (i) if given by telecopier,  when transmitted
to the telecopier  number specified above, (ii) if given by mail, when deposited
in the mails  addressed as specified  above,  and (iii) if given by other means,
when delivered at the address  specified  above,  except that written notices to
the Liquidity  Provider pursuant to the provisions of Article II and Article III
hereof shall not be effective until received by the Liquidity  Provider.  A copy
of all  notices  delivered  hereunder  to  either  party  shall in  addition  be


<PAGE>

delivered  to each of the  parties  to the  Participation  Agreements  at  their
respective addresses set forth therein.

            Section  7.03.  NO WAIVER;  REMEDIES.  No failure on the part of the
Liquidity Provider to exercise, and no delay in exercising, any right under this
Agreement  shall  operate as a waiver  thereof;  nor shall any single or partial
exercise  of any right  under  this  Agreement  preclude  any  other or  further
exercise  thereof  or the  exercise  of any other  right.  The  remedies  herein
provided are cumulative and not exclusive of any remedies provided by law.

            Section 7.04.  FURTHER  ASSURANCES.  The Borrower  agrees to do such
further  acts and things and to execute  and deliver to the  Liquidity  Provider
such additional assignments, agreements, powers and instruments as the Liquidity
Provider  may  reasonably  require or deem  advisable  to carry into  effect the
purposes  of this  Agreement  and the other  Operative  Agreements  or to better
assure and confirm unto the Liquidity  Provider its rights,  powers and remedies
hereunder and under the other Operative Agreements.

            Section 7.05.  INDEMNIFICATION;  SURVIVAL OF CERTAIN PROVISIONS. The
Liquidity  Provider  shall be  indemnified  hereunder  to the  extent and in the
manner described in Section 8.1 of the Participation  Agreements with respect to
Owned Aircraft and Section 9.1 of the  Participation  Agreements with respect to
Leased Aircraft. In addition, the Borrower agrees to indemnify,  protect, defend
and hold harmless the Liquidity  Provider  from,  against and in respect of, and
shall pay on demand,  all Expenses of any kind or nature  whatsoever (other than
any Expenses of the nature  described in Section 3.01, 3.02 or 7.07 hereof or in
the Fee Letter applicable to this Agreement  (regardless of whether  indemnified
against pursuant to said Sections or in such Fee Letter)),  that may be imposed,
incurred by or asserted  against any Liquidity  Indemnitee,  in any way relating
to, resulting from, or arising out of or in connection with any action,  suit or
proceeding by any third party against such Liquidity  Indemnitee and relating to
this Agreement,  the Fee Letter applicable to this Agreement,  the Intercreditor
Agreement or any Financing Agreement; PROVIDED, HOWEVER, that the Borrower shall
not be required to  indemnify,  protect,  defend and hold harmless any Liquidity
Indemnitee in respect of any Expense of such Liquidity  Indemnitee to the extent
such Expense is (i) attributable to the gross  negligence or willful  misconduct
of such Liquidity  Indemnitee or any other Liquidity  Indemnitee,  (ii) ordinary
and usual operating  overhead expense,  or (iii)  attributable to the failure by
such  Liquidity  Indemnitee  or any other  Liquidity  Indemnitee  to  perform or
observe any  agreement,  covenant or  condition  on its part to be  performed or
observed  in  this  Agreement,  the  Intercreditor  Agreement,  the  Fee  Letter
applicable to this Agreement or any other  Operative  Agreement to which it is a
party.  The indemnities  contained in Section 8.1 or 9.1, as the case may be, of
the Participation  Agreements,  and the provisions of Sections 3.01, 3.02, 3.03,
3.09, 7.05 and 7.07 hereof, shall survive the termination of this Agreement.

            Section 7.06.  LIABILITY OF THE LIQUIDITY PROVIDER.  (a) Neither the
Liquidity Provider nor any of its officers,  employees,  directors or Affiliates
shall  be  liable  or  responsible  for:  (i) the use  which  may be made of the
Advances  or any  acts  or  omissions  of the  Borrower  or any  beneficiary  or
transferee  in  connection   therewith;   (ii)  the  validity,   sufficiency  or
genuineness of documents,  or of any endorsement thereon, even if such documents


<PAGE>

should prove to be in any or all respects invalid,  insufficient,  fraudulent or
forged;  or (iii) the  making of  Advances  by the  Liquidity  Provider  against
delivery of a Notice of Borrowing and other  documents  which do not comply with
the terms  hereof;  PROVIDED,  HOWEVER,  that the  Borrower  shall  have a claim
against the Liquidity  Provider,  and the Liquidity  Provider shall be liable to
the Borrower,  to the extent of any damages  suffered by the Borrower which were
the result of (A) the Liquidity  Provider's  willful misconduct or negligence in
determining  whether documents presented hereunder comply with the terms hereof,
or (B)  any  breach  by the  Liquidity  Provider  of any of the  terms  of  this
Agreement,  including,  but not limited to, the Liquidity  Provider's failure to
make lawful  payment  hereunder  after the  delivery to it by the  Borrower of a
Notice of Borrowing strictly complying with the terms and conditions hereof.

            (b)  Neither  the  Liquidity  Provider  nor  any  of  its  officers,
employees, directors or Affiliates shall be liable or responsible in any respect
for (i) any error, omission, interruption or delay in transmission,  dispatch or
delivery of any message or advice, however transmitted,  in connection with this
Agreement or any Notice of Borrowing  delivered  hereunder,  or (ii) any action,
inaction or  omission  which may be taken by it in good  faith,  absent  willful
misconduct or negligence (in which event the extent of the Liquidity  Provider's
potential  liability  to the  Borrower  shall  be  limited  as set  forth in the
immediately  preceding  paragraph),  in  connection  with this  Agreement or any
Notice of Borrowing.

            Section 7.07. COSTS, EXPENSES AND TAXES. The Borrower agrees to pay,
or cause to be paid (A) on the Effective Date and on such later date or dates on
which the Liquidity  Provider shall make demand,  all  reasonable  out-of-pocket
costs and expenses  (including,  without  limitation,  the  reasonable  fees and
expenses  of  outside  counsel  for the  Liquidity  Provider)  of the  Liquidity
Provider in connection with the preparation,  negotiation,  execution, delivery,
filing and recording of this Agreement,  any other  Operative  Agreement and any
other documents which may be delivered in connection with this Agreement and (B)
on demand, all reasonable costs and expenses (including  reasonable counsel fees
and expenses) of the Liquidity  Provider in connection  with (i) the enforcement
of this Agreement or any other  Operative  Agreement,  (ii) the  modification or
amendment of, or supplement to, this Agreement or any other Operative  Agreement
or such  other  documents  which may be  delivered  in  connection  herewith  or
therewith  (whether or not the same shall become  effective) or (iii) any action
or  proceeding  relating to any order,  injunction,  or other  process or decree
restraining or seeking to restrain the Liquidity Provider from paying any amount
under  this  Agreement,  the  Intercreditor  Agreement  or any  other  Operative
Agreement or otherwise  affecting the application of funds in the Class C-2 Cash
Collateral Account.  In addition,  the Borrower shall pay any and all recording,
stamp and other  similar  taxes and fees payable or  determined to be payable in
connection with the execution, delivery, filing and recording of this Agreement,
any other Operative  Agreement and such other documents,  and agrees to save the
Liquidity  Provider  harmless  from and  against  any and all  liabilities  with
respect to or  resulting  from any delay in paying or omission to pay such taxes
or fees.

            Section 7.08.  BINDING  EFFECT;  PARTICIPATIONS.  (a) This Agreement
shall be binding upon and inure to the benefit of the Borrower and the Liquidity
Provider and their  respective  successors and assigns,  except that neither the


<PAGE>

Liquidity  Provider  (except as  otherwise  provided in this  Section  7.08) nor
(except as  contemplated  by Section 3.08) the Borrower  shall have the right to
assign its rights or  obligations  hereunder or any interest  herein without the
prior written consent of the other party, subject to the requirements of Section
7.08(b). The Liquidity Provider may grant participations herein or in any of its
rights hereunder  (including,  without  limitation,  funded  participations  and
participations in rights to receive interest  payments  hereunder) and under the
other  Operative  Agreements  to such Persons  (other than  Continental  and its
Affiliates) as the Liquidity Provider may in its sole discretion select, subject
to the requirements of Section 7.08(b).  No such granting of  participations  by
the Liquidity  Provider,  however,  will relieve the  Liquidity  Provider of its
obligations  hereunder.  In connection  with any  participation  or any proposed
participation,  the Liquidity  Provider may disclose to the  participant  or the
proposed participant any information that the Borrower is required to deliver or
to disclose to the Liquidity  Provider pursuant to this Agreement.  The Borrower
acknowledges and agrees that the Liquidity Provider's source of funds may derive
in part from its participants. Accordingly, references in this Agreement and the
other  Operative  Agreements  to  determinations,  reserve and capital  adequacy
requirements, increased costs, reduced receipts, additional amounts due pursuant
to Section 3.03 and the like as they pertain to the Liquidity  Provider shall be
deemed  also to  include  those  of  each of its  participants  that  are  banks
(subject,  in each  case,  if any  such  participant  is not a bank  that is (i)
organized  under the laws of the United  States or any State  thereof and (ii) a
member bank of the Federal Reserve System with deposits exceeding $1,000,000,000
(such a bank, a "REFERENCE  BANK"),  to the maximum  amount that would have been
directly  incurred by any Reference Bank organized  under the laws of the United
States or any State thereof if such Reference Bank, rather than the participant,
had held the interest participated).

            (b) If,  pursuant to subsection  (a) above,  the Liquidity  Provider
sells any  participation  in this Agreement to any bank or other entity (each, a
"TRANSFEREE"),  then, concurrently with the effectiveness of such participation,
the Transferee shall (i) represent to the Liquidity Provider (for the benefit of
the  Liquidity  Provider and the  Borrower)  either (A) that it is  incorporated
under  the laws of the  United  States  or a state  thereof  or (B)  that  under
applicable  law and  treaties,  no taxes will be required  to be  withheld  with
respect  to any  payments  to be made  to such  Transferee  in  respect  of this
Agreement,  (ii) furnish to the Liquidity Provider and the Borrower either (x) a
statement that it is incorporated under the laws of the United States or a state
thereof or (y) if it is not so incorporated,  two copies of a properly completed
United  States  Internal  Revenue  Service  Form  W-8ECI  or  Form  W-8BEN,   as
appropriate, or other applicable form, certificate or document prescribed by the
Internal Revenue Service certifying, in each case, such Transferee's entitlement
to a complete exemption from United States federal withholding tax in respect to
any and all payments to be made  hereunder,  and (iii) agree (for the benefit of
the Liquidity  Provider and the Borrower) to provide the Liquidity  Provider and
the Borrower a new Form W-8ECI or Form W-8BEN, as appropriate,  (A) on or before
the date  that any such  form  expires  or  becomes  obsolete  or (B)  after the
occurrence  of any event  requiring a change in the most recent form  previously
delivered by it and prior to the  immediately  following due date of any payment
by the  Borrower  hereunder,  certifying  in the case of a Form  W-8BEN  or Form
W-8ECI that such  Transferee  is entitled  to a complete  exemption  from United
States  federal  withholding  tax on payments under this  Agreement.  Unless the
Borrower has received forms or other  documents  reasonably  satisfactory  to it
(and  required by applicable  law)  indicating  that payments  hereunder are not


<PAGE>

subject to United  States  federal  withholding  tax, the Borrower will withhold
taxes as required by law from such payments at the applicable statutory rate.

            (c)  Notwithstanding  the other provisions of this Section 7.08, the
Liquidity  Provider  may assign and  pledge all or any  portion of the  Advances
owing  to it to any  Federal  Reserve  Bank or the  United  States  Treasury  as
collateral  security  pursuant to  Regulation A of the Board of Governors of the
Federal Reserve System and any Operating Circular issued by such Federal Reserve
Bank, provided that any payment in respect of such assigned Advances made by the
Borrower  to the  Liquidity  Provider  in  accordance  with  the  terms  of this
Agreement shall satisfy the Borrower's  obligations hereunder in respect of such
assigned Advance to the extent of such payment. No such assignment shall release
the Liquidity Provider from its obligations hereunder.

            Section 7.09. SEVERABILITY. Any provision of this Agreement which is
prohibited,  unenforceable  or not authorized in any  jurisdiction  shall, as to
such   jurisdiction,   be  ineffective  to  the  extent  of  such   prohibition,
unenforceability  or   non-authorization   without  invalidating  the  remaining
provisions hereof or affecting the validity,  enforceability or legality of such
provision in any other jurisdiction.

            Section 7.10.  GOVERNING LAW. THIS  AGREEMENT  SHALL BE GOVERNED BY,
AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

            Section  7.11.  SUBMISSION  TO  JURISDICTION;  WAIVER OF JURY TRIAL;
WAIVER OF  IMMUNITY.  (a) Each of the  parties  hereto  hereby  irrevocably  and
unconditionally:

            (i)  submits  for itself  and its  property  in any legal  action or
      proceeding relating to this Agreement or any other Operative Agreement, or
      for  recognition  and  enforcement  of any  judgment in respect  hereof or
      thereof,  to the  nonexclusive  general  jurisdiction of the courts of the
      State of New York,  the  courts of the United  States of  America  for the
      Southern District of New York, and the appellate courts from any thereof;

            (ii) consents  that any such action or proceeding  may be brought in
      such courts, and waives any objection that it may now or hereafter have to
      the venue of any such action or  proceeding in any such court or that such
      action or proceeding was brought in an  inconvenient  court and agrees not
      to plead or claim the same;

            (iii)  agrees  that  service  of  process  in  any  such  action  or
      proceeding  may be effected  by mailing a copy  thereof by  registered  or
      certified  mail  (or any  substantially  similar  form of  mail),  postage
      prepaid,  to each party  hereto at its address  set forth in Section  7.02
      hereof,  or at such other  address of which the Liquidity  Provider  shall
      have been notified pursuant thereto; and

            (iv) agrees that  nothing  herein  shall  affect the right to effect
      service of process in any other manner permitted by law or shall limit the
      right to sue in any other jurisdiction.


<PAGE>

            (b) THE BORROWER  AND THE  LIQUIDITY  PROVIDER  EACH HEREBY AGREE TO
WAIVE  THEIR  RESPECTIVE  RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION
BASED  UPON OR  ARISING  OUT OF THIS  AGREEMENT  OR ANY  DEALINGS  BETWEEN  THEM
RELATING TO THE SUBJECT  MATTER OF THIS AGREEMENT AND THE  RELATIONSHIP  THAT IS
BEING ESTABLISHED,  including, without limitation, contract claims, tort claims,
breach of duty  claims  and all  other  common  law and  statutory  claims.  The
Borrower  and the  Liquidity  Provider  each warrant and  represent  that it has
reviewed  this  waiver  with  its  legal  counsel,  and  that it  knowingly  and
voluntarily waives its jury trial rights following  consultation with such legal
counsel. THIS WAIVER IS IRREVOCABLE,  AND CANNOT BE MODIFIED EITHER ORALLY OR IN
WRITING,  AND THIS WAIVER SHALL APPLY TO ANY  SUBSEQUENT  AMENDMENTS,  RENEWALS,
SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT.

            (c) The  Liquidity  Provider  hereby waives any immunity it may have
from the  jurisdiction  of the courts of the  United  States or of any State and
waives any immunity any of its properties  located in the United States may have
from attachment or execution upon a judgment entered by any such court under the
United States Foreign Sovereign  Immunities Act of 1976 or any similar successor
legislation.

            Section  7.12.  EXECUTION IN  COUNTERPARTS.  This  Agreement  may be
executed  in any  number of  counterparts  and by  different  parties  hereto on
separate  counterparts,  each  of  which  counterparts,  when  so  executed  and
delivered,  shall be deemed  to be an  original  and all of which  counterparts,
taken together, shall constitute but one and the same Agreement.

            Section 7.13. ENTIRETY. This Agreement,  the Intercreditor Agreement
and the other  Operative  Agreements to which the Liquidity  Provider is a party
constitute  the entire  agreement  of the  parties  hereto  with  respect to the
subject matter hereof and supersedes all prior  understandings and agreements of
such parties.

            Section  7.14.  HEADINGS.  Section  headings in this  Agreement  are
included  herein for  convenience  of reference  only and shall not constitute a
part of this Agreement for any other purpose.

            Section 7.15.  TRANSFER.  The Liquidity Provider hereby acknowledges
and consents to the  Transfer  contemplated  by the  Assignment  and  Assumption
Agreement.

            Section 7.16.  LIQUIDITY  PROVIDER'S  OBLIGATION  TO MAKE  ADVANCES.
EXCEPT  AS  EXPRESSLY  SET  FORTH  IN THIS  AGREEMENT,  THE  OBLIGATIONS  OF THE
LIQUIDITY  PROVIDER TO MAKE ADVANCES  HEREUNDER,  AND THE  BORROWER'S  RIGHTS TO
DELIVER NOTICES OF BORROWING REQUESTING THE MAKING OF ADVANCES HEREUNDER,  SHALL
BE UNCONDITIONAL AND IRREVOCABLE,  AND SHALL BE PAID OR PERFORMED,  IN EACH CASE
STRICTLY IN ACCORDANCE WITH THE TERMS OF THIS AGREEMENT.


<PAGE>

            IN WITNESS  WHEREOF,  the parties  have caused this  Agreement to be
duly  executed  and  delivered  by  their  respective  officers  thereunto  duly
authorized as of the date first set forth above.

                                    WILMINGTON   TRUST   COMPANY,   not  in  its
                                          individual   capacity  but  solely  as
                                          Subordination   Agent,  as  agent  and
                                          trustee  for the Class C-2  Trust,  as
                                          Borrower


                                    By:_________________________________________
                                       Name:
                                       Title:


                                    MORGAN STANLEY CAPITAL SERVICES INC.,
                                       as Liquidity Provider


                                    By:_________________________________________
                                       Name:
                                       Title:


<PAGE>

                                                                      Annex I to
                                                      Revolving Credit Agreement

                      INTEREST ADVANCE NOTICE OF BORROWING

            The  undersigned,  a duly  authorized  signatory of the  undersigned
borrower (the  "BORROWER"),  hereby certifies to Morgan Stanley Capital Services
Inc.  (the  "LIQUIDITY  PROVIDER"),  with  reference  to  the  Revolving  Credit
Agreement  (2000-1C-2) dated as of March 15, 2000,  between the Borrower and the
Liquidity Provider (the "LIQUIDITY AGREEMENT"; the terms defined therein and not
otherwise  defined herein being used herein as therein  defined or  referenced),
that:

            (1) The Borrower is the Subordination  Agent under the Intercreditor
      Agreement.

            (2) The  Borrower is  delivering  this Notice of  Borrowing  for the
      making  of an  Interest  Advance  by the  Liquidity  Provider  to be used,
      subject to clause (3)(v)  below,  for the payment of interest on the Class
      C-2   Certificates   which  was   payable  on   ____________,   ____  (the
      "DISTRIBUTION  DATE") in accordance  with the terms and  provisions of the
      Class C-2 Trust Agreement and the Class C-2 Certificates, which Advance is
      requested to be made on ____________, ____. The Interest Advance should be
      transferred  to [name of  bank/wire  instructions/ABA  number] in favor of
      account number [   ], reference [        ].

            (3) The  amount of the  Interest  Advance  requested  hereby  (i) is
      $_______________.__,  to be  applied  in  respect  of the  payment  of the
      interest  which was due and payable on the Class C-2  Certificates  on the
      Distribution  Date,  (ii) does not include any amount with  respect to the
      payment of  principal  of, or premium on, the Class C-2  Certificates,  or
      principal of, or interest or premium on, the Class A-1  Certificates,  the
      Class  A-2  Certificates,  the  Class  B  Certificates  or the  Class  C-1
      Certificates,  (iii) was computed in accordance with the provisions of the
      Class  C-2   Certificates,   the  Class  C-2  Trust   Agreement   and  the
      Intercreditor Agreement (a copy of which computation is attached hereto as
      Schedule I), (iv) does not exceed the Maximum Available  Commitment on the
      date hereof, (v) does not include any amount of interest which was due and
      payable on the Class C-2 Certificates on such  Distribution Date but which
      remains  unpaid due to the failure of the  Depositary to pay any amount of
      accrued  interest on the Deposits on such  Distribution  Date and (vi) has
      not been and is not the  subject of a prior or  contemporaneous  Notice of
      Borrowing.

            (4) Upon  receipt  by or on behalf  of the  Borrower  of the  amount
      requested hereby,  (a) the Borrower will apply the same in accordance with
      the terms of Section 3.6(b) of the Intercreditor Agreement, (b) no portion


<PAGE>

      of such amount shall be applied by the Borrower for any other  purpose and
      (c) no portion of such amount until so applied  shall be  commingled  with
      other funds held by the Borrower.

            The Borrower  hereby  acknowledges  that,  pursuant to the Liquidity
Agreement,  the making of the  Interest  Advance as  requested by this Notice of
Borrowing shall  automatically  reduce,  subject to  reinstatement in accordance
with the terms of the Liquidity  Agreement,  the Maximum Available Commitment by
an amount  equal to the  amount of the  Interest  Advance  requested  to be made
hereby as set forth in clause (i) of  paragraph  (3) of this Notice of Borrowing
and such reduction shall automatically result in corresponding reductions in the
amounts available to be borrowed pursuant to a subsequent Advance.

            IN WITNESS  WHEREOF,  the Borrower has executed and  delivered  this
Notice of Borrowing as of the ____ day of _________, ____.

                                    WILMINGTON TRUST COMPANY,
                                          not in  its  individual  capacity  but
                                          solely  as  Subordination   Agent,  as
                                          Borrower


                                    By:_________________________________________
                                       Name:
                                       Title:


<PAGE>

               SCHEDULE I TO INTEREST ADVANCE NOTICE OF BORROWING

                 [Insert Copy of Computations in accordance with
                     Interest Advance Notice of Borrowing]


<PAGE>

                                                                     Annex II to
                                                      Revolving Credit Agreement

                  NON-EXTENSION ADVANCE NOTICE OF BORROWING

            The  undersigned,  a duly  authorized  signatory of the  undersigned
borrower (the  "BORROWER"),  hereby certifies to Morgan Stanley Capital Services
Inc.  (the  "LIQUIDITY  PROVIDER"),  with  reference  to  the  Revolving  Credit
Agreement  (2000-1C-2) dated as of March 15, 2000,  between the Borrower and the
Liquidity Provider (the "LIQUIDITY AGREEMENT"; the terms defined therein and not
otherwise  defined herein being used herein as therein  defined or  referenced),
that:

            (1) The Borrower is the Subordination  Agent under the Intercreditor
      Agreement.

            (2) The  Borrower is  delivering  this Notice of  Borrowing  for the
      making of the Non-Extension  Advance by the Liquidity  Provider to be used
      for the  funding of the Class C-2 Cash  Collateral  Account in  accordance
      with  Section  3.6(d) of the  Intercreditor  Agreement,  which  Advance is
      requested to be made on __________, ____. The Non-Extension Advance should
      be transferred to [name of bank/wire  instructions/ABA number] in favor of
      account number [   ], reference [        ].

            (3) The amount of the Non-Extension  Advance requested hereby (i) is
      $_______________.__,  which equals the Maximum Available Commitment on the
      date  hereof and is to be  applied in respect of the  funding of the Class
      C-2 Cash  Collateral  Account in  accordance  with  Section  3.6(d) of the
      Intercreditor Agreement,  (ii) does not include any amount with respect to
      the  payment  of  the   principal   of,  or  premium  on,  the  Class  C-2
      Certificates,  or  principal  of, or interest or premium on, the Class A-1
      Certificates,  the Class A-2 Certificates, the Class B Certificates or the
      Class  C-1  Certificates,  (iii)  was  computed  in  accordance  with  the
      provisions of the Class C-2  Certificates,  the Class C-2 Trust  Agreement
      and the  Intercreditor  Agreement (a copy of which computation is attached
      hereto as  Schedule  I), and (iv) has not been and is not the subject of a
      prior  or   contemporaneous   Notice  of  Borrowing  under  the  Liquidity
      Agreement.

            (4) Upon  receipt  by or on behalf  of the  Borrower  of the  amount
      requested  hereby,  (a) the Borrower will deposit such amount in the Class
      C-2 Cash  Collateral  Account  and apply the same in  accordance  with the
      terms of Section 3.6(d) of the Intercreditor  Agreement, (b) no portion of
      such amount shall be applied by the Borrower for any other purpose and (c)
      no portion of such amount until so applied shall be commingled  with other
      funds held by the Borrower.

            The Borrower  hereby  acknowledges  that,  pursuant to the Liquidity
Agreement,  (A) the making of the  Non-Extension  Advance as  requested  by this
Notice of Borrowing shall automatically and irrevocably terminate the obligation
of  the  Liquidity  Provider  to  make  further  Advances  under  the  Liquidity
Agreement;  and (B)  following  the  making  by the  Liquidity  Provider  of the


<PAGE>

Non-Extension Advance requested by this Notice of Borrowing,  the Borrower shall
not be entitled to request any further Advances under the Liquidity Agreement.

            IN WITNESS  WHEREOF,  the Borrower has executed and  delivered  this
Notice of Borrowing as of the ____ day of _________, ____.

                                    WILMINGTON TRUST COMPANY,
                                          not in  its  individual  capacity  but
                                          solely  as  Subordination   Agent,  as
                                          Borrower


                                    By:_________________________________________
                                       Name:
                                       Title:


<PAGE>

           SCHEDULE I TO NON-EXTENSION ADVANCE NOTICE OF BORROWING

                 [Insert Copy of computations in accordance with
                   Non-Extension Advance Notice of Borrowing]


<PAGE>

                                                                    Annex III to
                                                      Revolving Credit Agreement

                      DOWNGRADE ADVANCE NOTICE OF BORROWING

            The  undersigned,  a duly  authorized  signatory of the  undersigned
borrower (the  "BORROWER"),  hereby certifies to Morgan Stanley Capital Services
Inc.  (the  "LIQUIDITY  PROVIDER"),  with  reference  to  the  Revolving  Credit
Agreement  (2000-1C-2) dated as of March 15, 2000,  between the Borrower and the
Liquidity Provider (the "LIQUIDITY AGREEMENT"; the terms defined therein and not
otherwise  defined herein being used herein as therein  defined or  referenced),
that:

            (1)   The Borrower is the Subordination Agent under the
      Intercreditor Agreement.

            (2) The  Borrower is  delivering  this Notice of  Borrowing  for the
      making of the Downgrade  Advance by the Liquidity  Provider to be used for
      the funding of the Class C-2 Cash  Collateral  Account in accordance  with
      Section  3.6(c)  of  the  Intercreditor  Agreement  (i) by  reason  of the
      downgrading  of the  short-term  unsecured  debt  rating of the  Guarantor
      issued by either Rating Agency below the Threshold  Rating or (ii) because
      the  Guarantee  Agreement has ceased to be in full force and effect or has
      become invalid or  unenforceable or the Guarantor has denied its liability
      thereunder, which Advance is requested to be made on __________, ____. The
      Downgrade   Advance   should  be   transferred   to  [name  of   bank/wire
      instructions/ABA  number]  in favor of  account  number  [   ],  reference
      [        ].

            (3) The  amount of the  Downgrade  Advance  requested  hereby (i) is
      $_______________.__,  which equals the Maximum Available Commitment on the
      date  hereof and is to be  applied in respect of the  funding of the Class
      C-2 Cash  Collateral  Account in  accordance  with  Section  3.6(c) of the
      Intercreditor Agreement,  (ii) does not include any amount with respect to
      the  payment  of  the   principal   of,  or  premium  on,  the  Class  C-2
      Certificates,  or  principal  of, or interest or premium on, the Class A-1
      Certificates,  the Class A-2 Certificates, the Class B Certificates or the
      Class  C-1  Certificates,  (iii)  was  computed  in  accordance  with  the
      provisions of the Class C-2  Certificates,  the Class C-2 Trust  Agreement
      and the  Intercreditor  Agreement (a copy of which computation is attached
      hereto as  Schedule  I), and (iv) has not been and is not the subject of a
      prior  or   contemporaneous   Notice  of  Borrowing  under  the  Liquidity
      Agreement.

            (4) Upon  receipt  by or on behalf  of the  Borrower  of the  amount
      requested  hereby,  (a) the Borrower will deposit such amount in the Class
      C-2 Cash  Collateral  Account  and apply the same in  accordance  with the
      terms of Section 3.6(c) of the Intercreditor  Agreement, (b) no portion of


<PAGE>

      such amount shall be applied by the Borrower for any other purpose and (c)
      no portion of such amount until so applied shall be commingled  with other
      funds held by the Borrower.

            The Borrower  hereby  acknowledges  that,  pursuant to the Liquidity
Agreement,  (A) the making of the Downgrade  Advance as requested by this Notice
of Borrowing shall automatically and irrevocably terminate the obligation of the
Liquidity Provider to make further Advances under the Liquidity  Agreement;  and
(B)  following the making by the  Liquidity  Provider of the  Downgrade  Advance
requested by this Notice of  Borrowing,  the  Borrower  shall not be entitled to
request any further Advances under the Liquidity Agreement.

            IN WITNESS  WHEREOF,  the Borrower has executed and  delivered  this
Notice of Borrowing as of the ____ day of _________, ____.

                                    WILMINGTON TRUST COMPANY,
                                          not in  its  individual  capacity  but
                                          solely  as  Subordination   Agent,  as
                                          Borrower


                                    By:_________________________________________
                                       Name:
                                       Title:


<PAGE>

               SCHEDULE I TO DOWNGRADE ADVANCE NOTICE OF BORROWING

                 [Insert Copy of computations in accordance with
                     Downgrade Advance Notice of Borrowing]


<PAGE>

                                                                     Annex IV to
                                                      Revolving Credit Agreement

                        FINAL ADVANCE NOTICE OF BORROWING

            The  undersigned,  a duly  authorized  signatory of the  undersigned
borrower (the  "BORROWER"),  hereby certifies to Morgan Stanley Capital Services
Inc.  (the  "LIQUIDITY  PROVIDER"),  with  reference  to  the  Revolving  Credit
Agreement  (2000-1C-2) dated as of March 15, 2000,  between the Borrower and the
Liquidity Provider (the "LIQUIDITY AGREEMENT"; the terms defined therein and not
otherwise  defined herein being used herein as therein  defined or  referenced),
that:

            (1) The Borrower is the Subordination  Agent under the Intercreditor
      Agreement.

            (2) The  Borrower is  delivering  this Notice of  Borrowing  for the
      making of the Final Advance by the  Liquidity  Provider to be used for the
      funding  of the Class  C-2 Cash  Collateral  Account  in  accordance  with
      Section 3.6(i) of the Intercreditor  Agreement by reason of the receipt by
      the Borrower of a  Termination  Notice from the  Liquidity  Provider  with
      respect to the Liquidity Agreement,  which Advance is requested to be made
      on ____________, ____. The Final Advance should be transferred to [name of
      bank/wire  instructions/ABA  number]  in  favor  of  account  number [  ],
      reference [        ].

            (3)  The  amount  of  the  Final  Advance  requested  hereby  (i) is
      $_________________.__,  which equals the Maximum  Available  Commitment on
      the date  hereof and is to be  applied  in  respect of the  funding of the
      Class C-2 Cash Collateral Account in accordance with Section 3.6(i) of the
      Intercreditor Agreement,  (ii) does not include any amount with respect to
      the payment of principal of, or premium on, the Class C-2 Certificates, or
      principal of, or interest or premium on, the Class A-1  Certificates,  the
      Class  A-2  Certificates,  the  Class  B  Certificates  or the  Class  C-1
      Certificates,  (iii) was computed in accordance with the provisions of the
      Class  C-2   Certificates,   the  Class  C-2  Trust   Agreement   and  the
      Intercreditor Agreement (a copy of which computation is attached hereto as
      Schedule  I),  and (iv) has not been and is not the  subject of a prior or
      contemporaneous Notice of Borrowing.

            (4) Upon  receipt  by or on behalf  of the  Borrower  of the  amount
      requested  hereby,  (a) the Borrower will deposit such amount in the Class
      C-2 Cash  Collateral  Account  and apply the same in  accordance  with the
      terms of Section 3.6(i) of the Intercreditor  Agreement, (b) no portion of
      such amount shall be applied by the Borrower for any other purpose and (c)
      no portion of such amount until so applied shall be commingled  with other
      funds held by the Borrower.


<PAGE>

            (5) The Borrower hereby requests that the Advance  requested  hereby
      be a Base Rate Advance [and that such Base Rate Advance be converted  into
      a LIBOR Advance on the third  Business Day following  your receipt of this
      notice.]<F1>

            The Borrower  hereby  acknowledges  that,  pursuant to the Liquidity
Agreement,  (A) the making of the Final  Advance as  requested by this Notice of
Borrowing shall  automatically  and irrevocably  terminate the obligation of the
Liquidity Provider to make further Advances under the Liquidity  Agreement;  and
(B)  following  the  making  by the  Liquidity  Provider  of the  Final  Advance
requested by this Notice of  Borrowing,  the  Borrower  shall not be entitled to
request any further Advances under the Liquidity Agreement.

            IN WITNESS  WHEREOF,  the Borrower has executed and  delivered  this
Notice of Borrowing as of the ____ day of _________, ____.

                                    WILMINGTON TRUST COMPANY,
                                          not in  its  individual  capacity  but
                                          solely  as  Subordination   Agent,  as
                                          Borrower


                                    By:_________________________________________
                                       Name:
                                       Title:





















--------------------

<F1>
Bracketed language may be included at Borrower's option.


<PAGE>

                 SCHEDULE I TO FINAL ADVANCE NOTICE OF BORROWING

                 [Insert Copy of Computations in accordance with
                       Final Advance Notice of Borrowing]


<PAGE>
                                                                      Annex V to
                                                      Revolving Credit Agreement

                              NOTICE OF TERMINATION

                                          [Date]

Wilmington Trust Company,
  as Subordination Agent, as Borrower
Rodney Square North
1100 North Market Square
Wilmington, DE 19890-0001

Attention:  Corporate Trust Administration

      Revolving Credit  Agreement dated as of March 15, 2000 between  Wilmington
      Trust  Company,  as  Subordination  Agent,  as agent and  trustee  for the
      Continental Airlines Pass Through Trust, 2000-1C-2-[O/S], as Borrower, and
      Morgan Stanley Capital Services Inc. (the "LIQUIDITY AGREEMENT")

Ladies and Gentlemen:

You  are  hereby  notified  that  pursuant  to  Section  6.01  of the  Liquidity
Agreement,  by reason of the occurrence of a Liquidity  Event of Default and the
existence of a Performing  Note  Deficiency  (each as defined  therein),  we are
giving this notice to you in order to cause (i) our obligations to make Advances
(as defined  therein) under such  Liquidity  Agreement to terminate on the fifth
Business  Day after the date on which you  receive  this  notice and (ii) you to
request a Final Advance under the Liquidity Agreement pursuant to Section 3.6(i)
of the  Intercreditor  Agreement  (as defined in the  Liquidity  Agreement) as a
consequence of your receipt of this notice.


<PAGE>

            THIS NOTICE IS THE "NOTICE OF  TERMINATION"  PROVIDED  FOR UNDER THE
LIQUIDITY  AGREEMENT.  OUR  OBLIGATIONS  TO MAKE  ADVANCES  UNDER THE  LIQUIDITY
AGREEMENT  WILL  TERMINATE ON THE FIFTH BUSINESS DAY AFTER THE DATE ON WHICH YOU
RECEIVE THIS NOTICE.

                                    Very truly yours,

                                    Morgan Stanley Capital Services Inc.,
                                       as Liquidity Provider

                                    By:___________________________
                                       Name:
                                       Title:

cc:   Wilmington Trust Company,
      as Class C-2 Trustee


<PAGE>

                                                                     Annex VI to
                                                      Revolving Credit Agreement

                    NOTICE OF REPLACEMENT SUBORDINATION AGENT

[Date]
Attention:

      Revolving Credit Agreement dated as of March 15, 2000,  between Wilmington
      Trust  Company,  as  Subordination  Agent,  as agent and  trustee  for the
      Continental Airlines Pass Through Trust, 2000-1C-2-[O/S], as Borrower, and
      Morgan Stanley Capital Services Inc. (the "LIQUIDITY AGREEMENT")

Ladies and Gentlemen:

            For value received,  the undersigned  beneficiary hereby irrevocably
transfers to:

                        ______________________________
                              [Name of Transferee]


                        ______________________________
                             [Address of Transferee]

all rights and  obligations  of the  undersigned as Borrower under the Liquidity
Agreement  referred to above.  The transferee  has succeeded the  undersigned as
Subordination  Agent under the Intercreditor  Agreement referred to in the first
paragraph of the  Liquidity  Agreement,  pursuant to the terms of Section 8.1 of
the Intercreditor Agreement.

            By this  transfer,  all rights of the  undersigned as Borrower under
the Liquidity  Agreement are  transferred  to the  transferee and the transferee
shall hereafter have the sole rights and obligations as Borrower thereunder. The
undersigned  shall pay any costs and expenses of such transfer,  including,  but
not limited to, transfer taxes or governmental charges.


<PAGE>

            We ask that this transfer be effective as of _______________, ____.

                                    WILMINGTON TRUST COMPANY,
                                          not in  its  individual  capacity  but
                                          solely  as  Subordination   Agent,  as
                                          Borrower


                                    By:_________________________________________
                                       Name:
                                       Title:


<PAGE>

                                                                    EXHIBIT I to
                                                      Revolving Credit Agreement


                           FORM OF GUARANTEE AGREEMENT



                                                   March 15, 2000


Continental Airlines Pass Through Trust 2000-1C-2-O

Ladies and Gentlemen:

      In consideration of the Revolving Credit Agreement (the "Agreement") dated
as of March 15, 2000 between  Morgan Stanley  Capital  Services Inc., a Delaware
corporation  (hereinafter "MSCS") and Wilmington Trust Company, as Subordination
Agent,  as agent and trustee for the  Continental  Airlines  Pass Through  Trust
2000-1C-2-O  ("Counterparty"),  Morgan  Stanley  Dean  Witter & Co.,  a Delaware
corporation   (hereinafter  "MSDW"),   hereby  irrevocably  and  unconditionally
guarantees to Counterparty,  with effect from the date of the Agreement, the due
and punctual payment of all amounts payable by MSCS under the Agreement when the
same shall become due and  payable,  whether on scheduled  payment  dates,  upon
demand,  upon  declaration of termination or otherwise,  in accordance  with the
terms of the Agreement and giving  effect to any  applicable  grace period under
the express terms of the Agreement.  Upon failure of MSCS  punctually to pay any
such  amounts,  MSDW  agrees  to pay or cause  to be paid  such  amounts.  It is
understood  and agreed that the  obligations of MSCS under the Agreement to make
Advances (as defined in the Agreement)  are, and shall be in any event,  for all
purposes of the  Guarantee,  be deemed to  constitute,  amounts  payable by MSCS
under the Agreement.

      MSDW hereby agrees that its obligations  hereunder shall be  unconditional
and will not be  discharged  except by complete  payment of the amounts  payable
under the Agreement,  irrespective of any claim as to the Agreement's  validity,
regularity  or  enforceability  or the lack of  authority  of MSCS to execute or
deliver the Agreement;  or any change in or amendment to the  Agreement;  or any
waiver or consent by Counterparty with respect to any provisions thereof; or the
absence of any action to enforce the  Agreement  or the recovery of any judgment
against  MSCS or of any  action to  enforce a  judgment  against  MSCS under the
Agreement;  or any similar circumstance which might otherwise constitute a legal
or equitable discharge or defense of a guarantor  generally.  MSDW hereby waives
diligence,  presentment, demand on MSDW or MSCS for payment or otherwise, filing
of claims, requirement of a prior proceeding against MSCS and protest or notice,
except as provided for in the Agreement with respect to amounts payable by MSCS.
If at any time  payment  under the  Agreement  is rescinded or must be otherwise
restored  or  returned  by  Counterparty  upon  the  insolvency,  bankruptcy  or
reorganization of MSCS or MSDW or otherwise,  MSDW's obligations  hereunder with
respect to such payment  shall be  reinstated  upon such  restoration  or return
being made by Counterparty.

      MSDW represents to Counterparty as of the date hereof that:

      (1) it is duly  organized  and  validly  existing  under  the  laws of the
jurisdiction of its  incorporation and has full power and legal right to execute
and deliver this  Guarantee and to perform the  provisions of this  Guarantee on
its part to be performed;



<PAGE>

      (2) its  execution,  delivery and  performance of this Guarantee have been
and  remain  duly  authorized  by  all  necessary  corporate  action  and do not
contravene any provision of its certificate of  incorporation  or by-laws or any
law, regulation or contractual restriction binding on it or its assets;

      (3) all consents,  authorizations,  approvals and  clearances  (including,
without limitation,  any necessary exchange control approval) and notifications,
reports  and  registrations  requisite  for  its  due  execution,  delivery  and
performance  of this  Guarantee  have been obtained from or, as the case may be,
filed with the relevant governmental  authorities having jurisdiction and remain
in full force and effect and all conditions thereof have been duly complied with
and no other  action  by,  and no  notice to or filing  with,  any  governmental
authority  having  jurisdiction  is  required  for such  execution,  delivery or
performance; and

      (4) this Guarantee is its legal, valid and binding obligation  enforceable
against it in  accordance  with its terms  except as  enforcement  hereof may be
limited by applicable  bankruptcy,  insolvency,  reorganization or other similar
laws  affecting  the  enforcement  of  creditors'  rights or by  general  equity
principles.

      By accepting this Guarantee and entering into the Agreement,  Counterparty
agrees that MSDW shall be subrogated to all rights of Counterparty  against MSCS
in respect of any amounts paid by MSDW pursuant to this Guarantee, provided that
MSDW shall be entitled  to enforce or to receive  any payment  arising out of or
based upon such  right of  subrogation  only to the extent  that it has paid all
amounts payable by MSCS under the Agreement.

      This Guarantee  shall be governed by and construed in accordance  with the
laws of the State of New York.  All  capitalized  terms  not  otherwise  defined
herein shall have the respective meanings assigned to them in the Agreement.


                                 MORGAN STANLEY DEAN WITTER & CO.



                                 By: _________________________________________
                                 Name:
                                 Title:

                                 Address:    1585 Broadway
                                             3rd Floor
                                             New York, NY  10036
                                 Attention:  Swap Group
                                 Fax No.:    (212) 761-0162










                                                   March 15, 2000




Continental Airlines Pass Through Trust 2000-1C-1-O

Ladies and Gentlemen:

       In  consideration  of the Revolving  Credit  Agreement (the  "Agreement")
dated as of March 15, 2000  between  Morgan  Stanley  Capital  Services  Inc., a
Delaware  corporation  (hereinafter  "MSCS") and Wilmington  Trust  Company,  as
Subordination  Agent,  as agent and trustee for the  Continental  Airlines  Pass
Through Trust 2000-1C-1-O ("Counterparty"),  Morgan Stanley Dean Witter & Co., a
Delaware   corporation    (hereinafter    "MSDW"),    hereby   irrevocably   and
unconditionally  guarantees  to  Counterparty,  with effect from the date of the
Agreement, the due and punctual payment of all amounts payable by MSCS under the
Agreement  when the same shall  become  due and  payable,  whether on  scheduled
payment dates,  upon demand,  upon  declaration of termination or otherwise,  in
accordance  with the terms of the Agreement and giving effect to any  applicable
grace  period  under the express  terms of the  Agreement.  Upon failure of MSCS
punctually to pay any such amounts,  MSDW agrees to pay or cause to be paid such
amounts.  It is  understood  and agreed that the  obligations  of MSCS under the
Agreement to make Advances (as defined in the  Agreement)  are, and shall in any
event,
  for all  purposes of the  Guarantee,  be deemed to  constitute,  amounts
payable by MSCS under the Agreement.

       MSDW hereby agrees that its obligations  hereunder shall be unconditional
and will not be  discharged  except by complete  payment of the amounts  payable
under the Agreement,  irrespective of any claim as to the Agreement's  validity,
regularity  or  enforceability  or the lack of  authority  of MSCS to execute or
deliver the Agreement;  or any change in or amendment to the  Agreement;  or any
waiver or consent by Counterparty with respect to any provisions thereof; or the
absence of any action to enforce the  Agreement  or the recovery of any judgment
against  MSCS or of any  action to  enforce a  judgment  against  MSCS under the
Agreement;  or any similar circumstance which might otherwise constitute a legal
or equitable discharge or defense of a guarantor  generally.  MSDW hereby waives
diligence,  presentment, demand on MSDW or MSCS for payment or otherwise, filing
of claims, requirement of a prior proceeding against MSCS and protest or notice,
except as provided for in the Agreement with respect to amounts payable by MSCS.
If at any time  payment  under the  Agreement  is rescinded or must be otherwise
restored  or  returned  by  Counterparty  upon  the  insolvency,  bankruptcy  or
reorganization of MSCS or MSDW or otherwise,  MSDW's obligations  hereunder with
respect to such payment  shall be  reinstated  upon such  restoration  or return
being made by Counterparty.


<PAGE>

       MSDW represents to Counterparty as of the date hereof that:

       (1) it is duly  organized  and  validly  existing  under  the laws of the
jurisdiction of its  incorporation and has full power and legal right to execute
and deliver this  Guarantee and to perform the  provisions of this  Guarantee on
its part to be performed;

       (2) its execution,  delivery and  performance of this Guarantee have been
and  remain  duly  authorized  by  all  necessary  corporate  action  and do not
contravene any provision of its certificate of  incorporation  or by-laws or any
law, regulation or contractual restriction binding on it or its assets;

       (3) all consents,  authorizations,  approvals and clearances  (including,
without limitation,  any necessary exchange control approval) and notifications,
reports  and  registrations  requisite  for  its  due  execution,  delivery  and
performance  of this  Guarantee  have been obtained from or, as the case may be,
filed with the relevant governmental  authorities having jurisdiction and remain
in full force and effect and all conditions thereof have been duly complied with
and no other  action  by,  and no  notice to or filing  with,  any  governmental
authority  having  jurisdiction  is  required  for such  execution,  delivery or
performance; and

       (4) this Guarantee is its legal, valid and binding obligation enforceable
against it in  accordance  with its terms  except as  enforcement  hereof may be
limited by applicable  bankruptcy,  insolvency,  reorganization or other similar
laws  affecting  the  enforcement  of  creditors'  rights or by  general  equity
principles.

       By accepting this Guarantee and entering into the Agreement, Counterparty
agrees that MSDW shall be subrogated to all rights of Counterparty  against MSCS
in respect of any amounts paid by MSDW pursuant to this Guarantee, provided that
MSDW shall be entitled  to enforce or to receive  any payment  arising out of or
based upon such  right of  subrogation  only to the extent  that it has paid all
amounts payable by MSCS under the Agreement.

       This Guarantee  shall be governed by and construed in accordance with the
laws of the State of New York.  All  capitalized  terms  not  otherwise  defined
herein shall have the respective meanings assigned to them in the Agreement.


                                 MORGAN STANLEY DEAN WITTER & CO.


                                 By:_________________________________________
                                 Name:
                                 Title:

                                 Address:    1585 Broadway
                                             3rd Floor
                                             New York, NY  10036
                                 Attention:  Swap Group
                                 Fax No.:    (212) 761-0162




                                                   March 15, 2000

Continental Airlines Pass Through Trust 2000-1C-2-O

Ladies and Gentlemen:

      In consideration of the Revolving Credit Agreement (the "Agreement") dated
as of March 15, 2000 between  Morgan Stanley  Capital  Services Inc., a Delaware
corporation  (hereinafter "MSCS") and Wilmington Trust Company, as Subordination
Agent,  as agent and trustee for the  Continental  Airlines  Pass Through  Trust
2000-1C-2-O  ("Counterparty"),  Morgan  Stanley  Dean  Witter & Co.,  a Delaware
corporation   (hereinafter  "MSDW"),   hereby  irrevocably  and  unconditionally
guarantees to Counterparty,  with effect from the date of the Agreement, the due
and punctual payment of all amounts payable by MSCS under the Agreement when the
same shall become due and  payable,  whether on scheduled  payment  dates,  upon
demand,  upon  declaration of termination or otherwise,  in accordance  with the
terms of the Agreement and giving  effect to any  applicable  grace period under
the express terms of the Agreement.  Upon failure of MSCS  punctually to pay any
such  amounts,  MSDW  agrees  to pay or cause  to be paid  such  amounts.  It is
understood  and agreed that the  obligations of MSCS under the Agreement to make
Advances (as defined in the Agreement)  are, and shall be in any event,
  for all
purposes of the  Guarantee,  be deemed to  constitute,  amounts  payable by MSCS
under the Agreement.

      MSDW hereby agrees that its obligations  hereunder shall be  unconditional
and will not be  discharged  except by complete  payment of the amounts  payable
under the Agreement,  irrespective of any claim as to the Agreement's  validity,
regularity  or  enforceability  or the lack of  authority  of MSCS to execute or
deliver the Agreement;  or any change in or amendment to the  Agreement;  or any
waiver or consent by Counterparty with respect to any provisions thereof; or the
absence of any action to enforce the  Agreement  or the recovery of any judgment
against  MSCS or of any  action to  enforce a  judgment  against  MSCS under the
Agreement;  or any similar circumstance which might otherwise constitute a legal
or equitable discharge or defense of a guarantor  generally.  MSDW hereby waives
diligence,  presentment, demand on MSDW or MSCS for payment or otherwise, filing
of claims, requirement of a prior proceeding against MSCS and protest or notice,
except as provided for in the Agreement with respect to amounts payable by MSCS.
If at any time  payment  under the  Agreement  is rescinded or must be otherwise
restored  or  returned  by  Counterparty  upon  the  insolvency,  bankruptcy  or
reorganization of MSCS or MSDW or otherwise,  MSDW's obligations  hereunder with
respect to such payment  shall be  reinstated  upon such  restoration  or return
being made by Counterparty.

      MSDW represents to Counterparty as of the date hereof that:

      (1) it is duly  organized  and  validly  existing  under  the  laws of the
jurisdiction of its  incorporation and has full power and legal right to execute
and deliver this  Guarantee and to perform the  provisions of this  Guarantee on
its part to be performed;



<PAGE>

      (2) its  execution,  delivery and  performance of this Guarantee have been
and  remain  duly  authorized  by  all  necessary  corporate  action  and do not
contravene any provision of its certificate of  incorporation  or by-laws or any
law, regulation or contractual restriction binding on it or its assets;

      (3) all consents,  authorizations,  approvals and  clearances  (including,
without limitation,  any necessary exchange control approval) and notifications,
reports  and  registrations  requisite  for  its  due  execution,  delivery  and
performance  of this  Guarantee  have been obtained from or, as the case may be,
filed with the relevant governmental  authorities having jurisdiction and remain
in full force and effect and all conditions thereof have been duly complied with
and no other  action  by,  and no  notice to or filing  with,  any  governmental
authority  having  jurisdiction  is  required  for such  execution,  delivery or
performance; and

      (4) this Guarantee is its legal, valid and binding obligation  enforceable
against it in  accordance  with its terms  except as  enforcement  hereof may be
limited by applicable  bankruptcy,  insolvency,  reorganization or other similar
laws  affecting  the  enforcement  of  creditors'  rights or by  general  equity
principles.

      By accepting this Guarantee and entering into the Agreement,  Counterparty
agrees that MSDW shall be subrogated to all rights of Counterparty  against MSCS
in respect of any amounts paid by MSDW pursuant to this Guarantee, provided that
MSDW shall be entitled  to enforce or to receive  any payment  arising out of or
based upon such  right of  subrogation  only to the extent  that it has paid all
amounts payable by MSCS under the Agreement.

      This Guarantee  shall be governed by and construed in accordance  with the
laws of the State of New York.  All  capitalized  terms  not  otherwise  defined
herein shall have the respective meanings assigned to them in the Agreement.


                                 MORGAN STANLEY DEAN WITTER & CO.



                                 By: _________________________________________
                                 Name:
                                 Title:

                                 Address:    1585 Broadway
                                             3rd Floor
                                             New York, NY  10036
                                 Attention:  Swap Group
                                 Fax No.:    (212) 761-0162





                        TRUST SUPPLEMENT No. 2000-1A-1-O

                              Dated March 15, 2000

                                     between

                            WILMINGTON TRUST COMPANY
                                   as Trustee,

                                       and

                           CONTINENTAL AIRLINES, INC.

                                       to

                          PASS THROUGH TRUST AGREEMENT
                         Dated as of September 25, 1997


                                 $395,780,000

             Continental Airlines Pass Through Trust 2000-1A-1-O
                           8.048% Continental Airlines
                           Pass Through Certificates,
                               Series 2000-1A-1-O


<PAGE>

            This Trust  Supplement No.  2000-1A-1-O,  dated as of March 15, 2000
(herein called the "TRUST SUPPLEMENT"),  between Continental  Airlines,  Inc., a
Delaware  corporation  (the  "COMPANY"),   and  Wilmington  Trust  Company  (the
"TRUSTEE"), to the Pass Through Trust Agreement, dated as of September 25, 1997,
between the Company and the Trustee (the "BASIC AGREEMENT").


                             W I T N E S S E T H:
                             - - - - - - - - - -

            WHEREAS,  the  Basic  Agreement,   unlimited  as  to  the  aggregate
principal amount of Certificates (unless otherwise specified herein, capitalized
terms used herein without definition having the respective meanings specified in
the Basic  Agreement)  which  may be  issued  thereunder,  has  heretofore  been
executed and delivered;

            WHEREAS, the Company has obtained commitments from Boeing for the
delivery of certain Aircraft;

            WHEREAS, the Company intends to finance the acquisition of each such
Aircraft either (i) through separate leveraged
 lease transactions, in which case
the Company will lease such Aircraft (collectively,  the "LEASED AIRCRAFT"),  or
(ii) through separate secured loan transactions,  in which case the Company will
own such Aircraft (collectively, the "OWNED AIRCRAFT");

            WHEREAS,  in the case of each Leased  Aircraft,  each Owner Trustee,
acting on behalf of the corresponding Owner Participant,  will issue pursuant to
an Indenture,  on a non-recourse  basis,  Equipment  Notes in order to finance a
portion of its purchase price of such Leased Aircraft;

            WHEREAS, in the case of each Owned Aircraft,  the Company will issue
pursuant to an  Indenture,  on a recourse  basis,  Equipment  Notes to finance a
portion of the purchase price of such Owned Aircraft;

            WHEREAS,   the  Trustee   hereby   declares  the  creation  of  this
Continental Airlines Pass Through Trust 2000-1A-1-O (the "APPLICABLE TRUST") for
the benefit of the  Applicable  Certificateholders,  and the initial  Applicable
Certificateholders  as the grantors of the Applicable Trust, by their respective
acceptances  of  the  Applicable  Certificates,  join  in  the  creation  of the
Applicable Trust with the Trustee;

            WHEREAS,  all Certificates to be issued by the Applicable Trust will
evidence fractional  undivided interests in the Applicable Trust and will convey
no rights, benefits or interests in respect of any property other than the Trust
Property  except  for those  Certificates  to which an Escrow  Receipt  has been
affixed;

            WHEREAS,    the   Escrow   Agent   and   the    Underwriters    have
contemporaneously  herewith  entered  into an Escrow  Agreement  with the Escrow
Paying Agent  pursuant to which the  Underwriters  have  delivered to the Escrow
Agent the proceeds from the sale of the Applicable  Certificates,  to the extent


<PAGE>

not used to purchase  Equipment Notes on the Issuance Date, and have irrevocably
instructed  the Escrow Agent to withdraw and pay funds from such  proceeds  upon
request and proper  certification by the Trustee to purchase  Equipment Notes as
the Aircraft are delivered by Boeing under the Aircraft Purchase  Agreement from
time to time prior to the Delivery Period Termination Date;

            WHEREAS,   the   Escrow   Agent   on   behalf   of  the   Applicable
Certificateholders  has  contemporaneously   herewith  entered  into  a  Deposit
Agreement with the Depositary under which the Deposits  referred to therein will
be made and from which it will  withdraw  funds to allow the Trustee to purchase
Equipment Notes from time to time prior to the Delivery Period Termination Date;

            WHEREAS, pursuant to the terms and conditions of the Basic Agreement
as supplemented by this Trust Supplement (the "AGREEMENT") and the NPA, upon the
financing of an Aircraft,  the Trustee on behalf of the Applicable Trust,  using
funds  withdrawn  under the Escrow  Agreement  (or, if financed on the  Issuance
Date,   using  a  portion  of  the  proceeds  of  the  sale  of  the  Applicable
Certificates),  shall  purchase  one or more  Equipment  Notes  having  the same
interest  rate as,  and final  maturity  date not later  than the final  Regular
Distribution  Date of, the Applicable  Certificates  issued  hereunder and shall
hold  such  Equipment   Notes  in  trust  for  the  benefit  of  the  Applicable
Certificateholders;

            WHEREAS,  all of the conditions and  requirements  necessary to make
this Trust Supplement,  when duly executed and delivered,  a valid,  binding and
legal  instrument  in  accordance  with its  terms and for the  purposes  herein
expressed,  have been done,  performed  and  fulfilled,  and the  execution  and
delivery  of this Trust  Supplement  in the form and with the terms  hereof have
been in all respects duly authorized;

            WHEREAS,  this Trust  Supplement is subject to the provisions of the
Trust Indenture Act of 1939, as amended, and shall, to the extent applicable, be
governed by such provisions;

            NOW THEREFORE, in consideration of the premises herein, it is agreed
between the Company and the Trustee as follows:


                                    ARTICLE I
                                THE CERTIFICATES

            Section 1.01. THE CERTIFICATES.  There is hereby created a series of
Certificates to be issued under the Agreement to be  distinguished  and known as
"8.048%  Continental  Airlines Pass Through  Certificates,  Series  2000-1A-1-O"
(hereinafter  defined  as  the  "APPLICABLE   CERTIFICATES").   Each  Applicable
Certificate  represents a fractional  undivided interest in the Applicable Trust
created  hereby.  The  Applicable  Certificates  shall be the  only  instruments
evidencing a fractional undivided interest in the Applicable Trust.

            The terms and conditions  applicable to the Applicable  Certificates
are as follows:


<PAGE>

            (a) The aggregate  principal  amount of the Applicable  Certificates
      that shall be  authenticated  under the Agreement  (except for  Applicable
      Certificates  authenticated and delivered pursuant to Sections 3.03, 3.04,
      3.05 and 3.06 of the Basic Agreement) is $395,780,000.

            (b) The Regular  Distribution  Dates with  respect to any payment of
      Scheduled Payments means May 1 and November 1 of each year,  commencing on
      May 1, 2000,  until  payment of all of the  Scheduled  Payments to be made
      under the Equipment Notes has been made.

            (c) The Special  Distribution  Dates with respect to the  Applicable
      Certificates  means any Business  Day on which a Special  Payment is to be
      distributed pursuant to the Agreement.

            (d) At the Escrow Agent's  request under the Escrow  Agreement,  the
      Trustee shall affix the  corresponding  Escrow Receipt to each  Applicable
      Certificate.  In any event,  any  transfer or  exchange of any  Applicable
      Certificate shall also effect a transfer or exchange of the related Escrow
      Receipt.  Prior to the Final  Withdrawal  Date, no transfer or exchange of
      any Applicable  Certificate  shall be permitted  unless the  corresponding
      Escrow  Receipt  is  attached  thereto  and  also  is  so  transferred  or
      exchanged.  By acceptance of any Applicable Certificate to which an Escrow
      Receipt  is  attached,  each  Holder  of  such an  Applicable  Certificate
      acknowledges  and  accepts  the  restrictions  on  transfer  of the Escrow
      Receipt set forth herein and in the Escrow Agreement.

            (e) (i) The  Applicable  Certificates  shall be in the form attached
      hereto as Exhibit A. Any  Person  acquiring  or  accepting  an  Applicable
      Certificate  or  an  interest   therein  will,  by  such   acquisition  or
      acceptance,  be deemed to represent  and warrant to and for the benefit of
      each Owner  Participant  and the Company  that either (i) the assets of an
      employee benefit plan subject to Title I of the Employee Retirement Income
      Security  Act of 1974,  as  amended  ("ERISA"),  or of a plan  subject  to
      Section  4975 of the  Internal  Revenue  Code of  1986,  as  amended  (the
      "CODE"),  have not been used to  purchase  Applicable  Certificates  or an
      interest   therein  or  (ii)  the  purchase  and  holding  of   Applicable
      Certificates  or  an  interest  therein  is  exempt  from  the  prohibited
      transaction  restrictions  of ERISA and the Code  pursuant  to one or more
      prohibited transaction statutory or administrative exemptions.

            (ii) The Applicable  Certificates  shall be Book-Entry  Certificates
      and  shall  be  subject  to the  conditions  set  forth in the  Letter  of
      Representations  between  the  Company and the  Clearing  Agency  attached
      hereto as Exhibit B.

            (f)  The  "Participation   Agreements"  as  defined  in  this  Trust
      Supplement  are the "Note  Purchase  Agreements"  referred to in the Basic
      Agreement.

            (g) The  Applicable  Certificates  are subject to the  Intercreditor
      Agreement, the Deposit Agreement and the Escrow Agreement.


<PAGE>

            (h)  The  Applicable  Certificates  will  have  the  benefit  of the
      Liquidity Facility.

            (i)   The Responsible Party is the Company.

            (j) The date referred to in clause (i) of the definition of the term
      "PTC Event of Default" in the Basic Agreement is the Final Maturity Date.

            (k) The particular  "sections of the Note Purchase  Agreement",  for
      purposes of clause (3) of Section 7.07 of the Basic Agreement, are Section
      8.1 (with  respect to Owned  Aircraft)  and Section  9.1 (with  respect to
      Leased Aircraft) of each Participation Agreement.

            (l) The  Equipment  Notes to be acquired and held in the  Applicable
      Trust, and the related  Aircraft and Note Documents,  are described in the
      NPA.


                                   ARTICLE II
                                   DEFINITIONS

            Section 2.01 DEFINITIONS. For all purposes of the Basic Agreement as
supplemented by this Trust Supplement,  the following capitalized terms have the
following  meanings  (any term used  herein  which is defined in both this Trust
Supplement and the Basic  Agreement shall have the meaning  assigned  thereto in
this Trust  Supplement for purposes of the Basic  Agreement as  supplemented  by
this Trust Supplement):

            AGREEMENT:  Has the meaning specified in the recitals hereto.

            AIRCRAFT:  Means each of the New Aircraft or Substitute  Aircraft in
      respect of which a Participation Agreement is to be or is, as the case may
      be, entered into in accordance  with the NPA (or any substitute  aircraft,
      including engines therefor, owned by or leased to the Company and securing
      one or more Equipment Notes).

            AIRCRAFT PURCHASE AGREEMENT: Has the meaning specified in the NPA.

            APPLICABLE CERTIFICATE: Has the meaning specified in Section 1.01 of
      this Trust Supplement.

            APPLICABLE  CERTIFICATEHOLDER:  Means the  Person  in whose  name an
      Applicable  Certificate  is registered on the Register for the  Applicable
      Certificates.

            APPLICABLE  DELIVERY  DATE:  Has the  meaning  specified  in Section
      5.01(b) of this Trust Supplement.

            APPLICABLE  PARTICIPATION  AGREEMENT:  Has the meaning  specified in
      Section 5.01(b) of this Trust Supplement.

            APPLICABLE TRUST: Has the meaning specified in the recitals hereto.


<PAGE>

            ASSIGNMENT  AND  ASSUMPTION  AGREEMENT:  Means  the  assignment  and
      assumption  agreement  substantially  in the  form  of  Exhibit  C  hereto
      executed  and  delivered  in  accordance  with  Section 7.01 of this Trust
      Supplement.

            BASIC AGREEMENT: Has the meaning specified in the first paragraph of
      this Trust Supplement.

            BOEING: Means The Boeing Company.

            BUSINESS DAY: Means any day other than a Saturday, a Sunday or a day
      on which  commercial banks are required or authorized to close in Houston,
      Texas,  New  York,  New  York,  Salt  Lake  City,  Utah or, so long as any
      Applicable  Certificate  is  Outstanding,  the city and state in which the
      Trustee  or any Loan  Trustee  maintains  its  Corporate  Trust  Office or
      receives and disburses funds.

            CLASS C  CERTIFICATEHOLDER:  Has the  meaning  specified  in Section
      4.01(b)(iii) of this Trust Supplement.

            CLASS  C  FRACTIONAL  UNDIVIDED  INTEREST:  Means,  at any  date  of
      computation, the fractional interest in the relevant Trust held by a Class
      C  Certificateholder  multiplied  by the Pool  Balance  (as defined in the
      Intercreditor  Agreement) of such Trust and divided by the aggregate  Pool
      Balances  (as  defined in the  Intercreditor  Agreement)  of the Class C-1
      Trust and the Class C-2 Trust, all determined at such date.

            CLASS D  CERTIFICATEHOLDER:  Has the  meaning  specified  in Section
      4.01(b)(iv) of this Trust Supplement.

            COMPANY:  Has the meaning  specified in the first  paragraph of this
      Trust Supplement.

            CONTROLLING  PARTY: Has the meaning  specified in the  Intercreditor
      Agreement.

            CUT-OFF  DATE:   Means  the  earlier  of  (a)  the  Delivery  Period
      Termination Date and (b) the date on which a Triggering Event occurs.

            DELIVERY NOTICE: Has the meaning specified in the NPA.

            DELIVERY PERIOD TERMINATION DATE: Means the earlier of (a) March 31,
      2001,  or, if the Equipment  Notes relating to all of the New Aircraft (or
      Substitute  Aircraft  in lieu  thereof)  have  not been  purchased  by the
      Applicable  Trust and the Other Trusts on or prior to such date due to any
      reason  beyond  the  control  of the  Company  and not  occasioned  by the
      Company's  fault or negligence,  September 30, 2001  (PROVIDED  that, if a
      labor strike  occurs at Boeing on or prior to either or both of such dates
      referred  to in this clause (a),  such date or dates on or  following  the
      commencement of such strike shall be extended by adding thereto the number
      of days that such strike  continued in effect),  and (b) the date on which
      Equipment Notes issued with respect to all of the New Aircraft (or


<PAGE>

      Substitute Aircraft in lieu thereof) have been purchased by the Applicable
      Trust and the Other Trusts in accordance with the NPA.

            DEPOSITS: Has the meaning specified in the Deposit Agreement.

            DEPOSIT AGREEMENT: Means the Deposit Agreement dated as of March 15,
      2000 relating to the  Applicable  Certificates  between the Depositary and
      the Escrow Agent,  as the same may be amended,  supplemented  or otherwise
      modified from time to time in accordance with its terms.

            DEPOSITARY:  Means Credit Suisse First Boston, a banking institution
      organized  under  the laws of  Switzerland,  acting  through  its New York
      branch.

            DISTRIBUTION  DATE: Means any Regular  Distribution  Date or Special
      Distribution Date as the context requires.

            ESCROW  AGENT:  Means,  initially,  First  Security  Bank,  National
      Association,  and any  replacement  or  successor  therefor  appointed  in
      accordance with the Escrow Agreement.

            ESCROW AGREEMENT:  Means the Escrow and Paying Agent Agreement dated
      as of March 15, 2000 relating to the  Applicable  Certificates,  among the
      Escrow Agent,  the Escrow Paying Agent, the Trustee and  Underwriters,  as
      the same may be amended,  supplemented or otherwise  modified from time to
      time in accordance with its terms.

            ESCROW PAYING  AGENT:  Means the Person acting as paying agent under
      the Escrow Agreement.

            ESCROW RECEIPT:  Means the receipt substantially in the form annexed
      to the Escrow Agreement  representing a fractional  undivided  interest in
      the funds held in escrow thereunder.

            FINAL MATURITY DATE: Means May 1, 2022.

            FINAL WITHDRAWAL: Has the meaning specified in the Escrow Agreement.

            FINAL  WITHDRAWAL  DATE:  Has the  meaning  specified  in the Escrow
      Agreement.

            FINAL WITHDRAWAL  NOTICE:  Has the meaning specified in Section 5.02
      of this Trust Supplement.

            INDENTURE: Means each of the separate trust indentures and mortgages
      relating to the  Aircraft,  each as  specified  or described in a Delivery
      Notice  delivered  pursuant  to  the  NPA  or  the  related  Participation
      Agreement,  in each  case as the  same  may be  amended,  supplemented  or
      otherwise modified from time to time in accordance with its terms.


<PAGE>

            INTERCREDITOR AGREEMENT:  Means the Intercreditor Agreement dated as
      of March 15, 2000 among the Trustee,  the Other  Trustees,  the  Liquidity
      Provider,  the liquidity  providers  relating to the  Certificates  issued
      under each of the Other  Agreements,  and  Wilmington  Trust  Company,  as
      Subordination Agent and as trustee thereunder, as amended, supplemented or
      otherwise modified from time to time in accordance with its terms.

            INVESTORS:  Means  the  Underwriters  together  with all  subsequent
      beneficial owners of the Applicable Certificates.

            LEASE:  Means,  with  respect  to each  Leased  Aircraft,  the lease
      between an Owner Trustee,  as the lessor, and the Company,  as the lessee,
      referred  to in the  related  Indenture,  as such  lease  may be  amended,
      supplemented or otherwise modified in accordance with its terms.

            LEASED AIRCRAFT:  Has the meaning  specified in the third recital to
      this Trust Supplement.

            LEASED  AIRCRAFT  INDENTURE:   Has  the  meaning  specified  in  the
      Intercreditor Agreement.

            LIQUIDITY FACILITY: Means, initially, the Revolving Credit Agreement
      dated  as of March  15,  2000  relating  to the  Applicable  Certificates,
      between  the  Liquidity   Provider  and  Wilmington   Trust  Company,   as
      Subordination  Agent, as agent and trustee for the Applicable  Trust, and,
      from  and  after  the  replacement  of  such  agreement  pursuant  to  the
      Intercreditor  Agreement,  the replacement liquidity facility therefor, in
      each case as amended, supplemented or otherwise modified from time to time
      in accordance with their respective terms.

            LIQUIDITY PROVIDER: Means, initially,  Credit Suisse First Boston, a
      banking  institution  organized  under  the  laws of  Switzerland,  acting
      through its New York branch,  and any replacements or successors  therefor
      appointed in accordance with the Intercreditor Agreement.

            NEW AIRCRAFT: Has the meaning specified in the NPA.

            NOTE  DOCUMENTS:  Means the  Equipment  Notes  with  respect  to the
      Applicable  Certificates and, with respect to any such Equipment Note, (i)
      the Indenture and the Participation  Agreement  relating to such Equipment
      Note,  and  (ii) in the case of any  Equipment  Note  related  to a Leased
      Aircraft, the Lease relating to such Leased Aircraft.

            NOTICE OF  PURCHASE  WITHDRAWAL:  Has the meaning  specified  in the
      Deposit Agreement.

            NPA:  Means the Note Purchase  Agreement  dated as of March 15, 2000
      among the Trustee, the Other Trustees,  the Company, the Escrow Agent, the
      Escrow Paying Agent and the  Subordination  Agent,  providing  for,  among
      other things, the purchase of Equipment Notes by the Trustee on behalf of


<PAGE>

      the Trust, as the same may be amended,  supplemented or otherwise modified
      from time to time, in accordance with its terms.

            OTHER  AGREEMENTS:  Means (i) the Basic Agreement as supplemented by
      Trust  Supplement  No.  2000-1A-2-O  dated  the date  hereof  relating  to
      Continental  Airlines  Pass  Through  Trust  2000-1A-2-O,  (ii) the  Basic
      Agreement as supplemented by Trust Supplement No. 2000-1B-O dated the date
      hereof  relating to  Continental  Airlines Pass Through  Trust  2000-1B-O,
      (iii)  the  Basic  Agreement  as  supplemented  by  Trust  Supplement  No.
      2000-1C-1-O  dated the date hereof  relating to Continental  Airlines Pass
      Through Trust  2000-1C-1-O and (iv) the Basic Agreement as supplemented by
      Trust  Supplement  No.  2000-1C-2-O  dated  the date  hereof  relating  to
      Continental Airlines Pass Through Trust 2000-1C-2-O.

            OTHER TRUSTEES:  Means the trustees under the Other Agreements,  and
      any successor or other trustee appointed as provided therein.

            OTHER  TRUSTS:  Means the  Continental  Airlines  Pass Through Trust
      2000-1A-2-O,  the Continental  Airlines Pass Through Trust 2000-1B-O,  the
      Continental  Airlines Pass Through Trust  2000-1C-1-O  and the Continental
      Airlines Pass Through Trust 2000-1C-2-O, each created on the date hereof.

            OWNED  AIRCRAFT:  Has the meaning  specified in the third recital to
      this Trust Supplement.

            OWNED  AIRCRAFT   INDENTURE:   Has  the  meaning  specified  in  the
      Intercreditor Agreement.

            OWNER PARTICIPANT:  With respect to any Equipment Note relating to a
      Leased  Aircraft,  means the "Owner  Participant"  as  referred  to in the
      Indenture  pursuant  to  which  such  Equipment  Note  is  issued  and any
      permitted  successor  or  assign  of such  Owner  Participant;  and  OWNER
      PARTICIPANTS  at  any  time  of  determination  means  all  of  the  Owner
      Participants thus referred to in the Indentures.

            OWNER  TRUSTEE:  With respect to any  Equipment  Note  relating to a
      Leased  Aircraft,  means  the  "Owner  Trustee",  as  referred  to in  the
      Indenture  pursuant  to which such  Equipment  Note is issued,  not in its
      individual capacity but solely as trustee; and OWNER TRUSTEES means all of
      the Owner Trustees party to any of the Indentures.

            OWNER  TRUSTEE'S  PURCHASE  AGREEMENT:  Means,  with  respect to any
      Leased Aircraft,  the agreement between the Company and the relevant Owner
      Trustee  pursuant to which,  INTER ALIA, the Company  assigns to the Owner
      Trustee  certain  rights  of  the  Company  under  the  aircraft  purchase
      agreement with respect to such Leased Aircraft.

            PARTICIPATION  AGREEMENT:  Means each Participation  Agreement to be
      entered  into,  or  entered  into (as the case  may  be),  by the  Trustee
      pursuant to the NPA, as the same may be amended, supplemented or otherwise
      modified in accordance with its terms.


<PAGE>

            POOL BALANCE: Means, as of any date, (i) the original aggregate face
      amount of the Applicable  Certificates  less (ii) the aggregate  amount of
      all payments made in respect of such Applicable Certificates or in respect
      of  Deposits  other than  payments  made in respect of interest or premium
      thereon or reimbursement  of any costs or expenses  incurred in connection
      therewith.  The Pool Balance as of any Distribution Date shall be computed
      after  giving  effect to any special  distribution  with respect to unused
      Deposits,  payment of  principal  of the  Equipment  Notes or payment with
      respect to other Trust Property and the distribution thereof to be made on
      that date.

            POOL  FACTOR:  Means,  as of any  Distribution  Date,  the  quotient
      (rounded to the seventh  decimal place)  computed by dividing (i) the Pool
      Balance  by (ii) the  original  aggregate  face  amount of the  Applicable
      Certificates.  The  Pool  Factor  as of any  Distribution  Date  shall  be
      computed after giving effect to any special  distribution  with respect to
      unused  Deposits,  payment of principal of the Equipment Notes or payments
      with respect to other Trust  Property and the  distribution  thereof to be
      made on that date.

            PROSPECTUS  SUPPLEMENT:  Means the Prospectus Supplement dated March
      1, 2000 relating to the offering of the Certificates.

            RELATED PASS THROUGH TRUST  AGREEMENT:  Means the Basic Agreement as
      supplemented by the Trust Supplement No. 2000-1A-1-S dated the date hereof
      relating to the  Continental  Airlines Pass Through Trust  2000-1A-1-S and
      entered  into by the  Company and the  Trustee,  which  agreement  becomes
      effective upon the execution and delivery of the Assignment and Assumption
      Agreement pursuant to Section 7.01 of this Trust Supplement.

            RELATED TRUST: Means the Continental Pass Through Trust 2000-1A-1-S,
      to be formed under the Related Pass Through Trust Agreement.

            RELATED  TRUSTEE:  Means the trustee  under the Related Pass Through
      Trust Agreement.

            SCHEDULED DELIVERY DATE: Has the meaning specified in the NPA.

            SPECIAL PAYMENT:  Means any payment (other than a Scheduled Payment)
      in respect of, or any proceeds of, any  Equipment  Note,  Trust  Indenture
      Estate (as defined in each Leased  Aircraft  Indenture) or Collateral  (as
      defined in each Owned Aircraft Indenture).

            SUBSTITUTE AIRCRAFT: Has the meaning specified in the NPA.

            TRANSFER  DATE:  Has the meaning  specified  in Section 7.01 of this
      Trust Supplement.

            TRIGGERING  EVENT:  Has the  meaning  assigned  to such  term in the
      Intercreditor Agreement.


<PAGE>

            TRUST PROPERTY:  Means (i) subject to the  Intercreditor  Agreement,
      the  Equipment  Notes held as the property of the  Applicable  Trust,  all
      monies at any time  paid  thereon  and all  monies  due and to become  due
      thereunder,  (ii) funds  from time to time  deposited  in the  Certificate
      Account and the Special Payments Account and, subject to the Intercreditor
      Agreement,  any proceeds from the sale by the Trustee  pursuant to Article
      VI of the Basic  Agreement of any  Equipment  Note and (iii) all rights of
      the Applicable Trust and the Trustee,  on behalf of the Applicable  Trust,
      under the Intercreditor  Agreement,  the Escrow Agreement, the NPA and the
      Liquidity Facility,  including,  without limitation, all rights to receive
      certain payments thereunder,  and all monies paid to the Trustee on behalf
      of the  Applicable  Trust pursuant to the  Intercreditor  Agreement or the
      Liquidity  Facility,  PROVIDED that rights with respect to the Deposits or
      under the Escrow Agreement, except for the right to direct withdrawals for
      the purchase of Equipment  Notes to be held  herein,  will not  constitute
      Trust Property.

            TRUST  SUPPLEMENT:  Has the meaning specified in the first paragraph
      of this trust supplement.

            UNDERWRITERS:   Means,  collectively,  Credit  Suisse  First  Boston
      Corporation,  Morgan Stanley & Co.  Incorporated,  Chase  Securities Inc.,
      Merrill  Lynch,  Pierce,  Fenner & Smith  Incorporated  and Salomon  Smith
      Barney Inc.

            UNDERWRITING AGREEMENT: Means the Underwriting Agreement dated March
      1, 2000 among the  Underwriters,  the Company and the  Depositary,  as the
      same may be amended,  supplemented or otherwise modified from time to time
      in accordance with its terms.


                                   ARTICLE III
                        STATEMENTS TO CERTIFICATEHOLDERS

            Section 3.01.  STATEMENTS TO APPLICABLE  CERTIFICATEHOLDERS.  (a) On
each  Distribution  Date,  the Trustee will include  with each  distribution  to
Applicable  Certificateholders of a Scheduled Payment or Special Payment, as the
case may be, a statement  setting forth the  information  provided below (in the
case of a Special  Payment,  reflecting in part the information  provided by the
Escrow Paying Agent under the Escrow Agreement).  Such statement shall set forth
(per $1,000 face amount  Applicable  Certificate as to (ii), (iii), (iv) and (v)
below) the following information:

            (i) the aggregate amount of funds  distributed on such  Distribution
      Date under the Agreement and under the Escrow  Agreement,  indicating  the
      amount allocable to each source;

            (ii) the amount of such distribution  under the Agreement  allocable
      to principal and the amount allocable to premium, if any;

            (iii) the amount of such distribution under the Agreement  allocable
      to interest;


<PAGE>

            (iv) the  amount of such  distribution  under the  Escrow  Agreement
      allocable to interest;

            (v) the  amount  of such  distribution  under the  Escrow  Agreement
      allocable to unused Deposits, if any; and

            (vi) the Pool Balance and the Pool Factor.

            With respect to the Applicable  Certificates  registered in the name
of a Clearing Agency,  on the Record Date prior to each  Distribution  Date, the
Trustee will request from such  Clearing  Agency a securities  position  listing
setting forth the names of all Clearing  Agency  Participants  reflected on such
Clearing Agency's books as holding  interests in the Applicable  Certificates on
such Record Date. On each Distribution  Date, the Trustee will mail to each such
Clearing  Agency  Participant  the  statement  described  above  and  will  make
available additional copies as requested by such Clearing Agency Participant for
forwarding to holders of interests in the Applicable Certificates.

            (b)  Within  a  reasonable  period  of  time  after  the end of each
      calendar  year but not later than the latest date  permitted  by law,  the
      Trustee  shall furnish to each Person who at any time during such calendar
      year was an Applicable  Certificateholder of record a statement containing
      the sum of the amounts  determined  pursuant to clauses  (a)(i),  (a)(ii),
      (a)(iii), (a)(iv) and (a)(v) above for such calendar year or, in the event
      such Person was an Applicable Certificateholder of record during a portion
      of such calendar year, for such portion of such year, and such other items
      as  are  readily   available  to  the  Trustee  and  which  an  Applicable
      Certificateholder shall reasonably request as necessary for the purpose of
      such Applicable Certificateholder's  preparation of its federal income tax
      returns.  Such  statement  and such other  items  shall be prepared on the
      basis of  information  supplied  to the  Trustee  by the  Clearing  Agency
      Participants and shall be delivered by the Trustee to such Clearing Agency
      Participants  to be  available  for  forwarding  by such  Clearing  Agency
      Participants to the holders of interests in the Applicable Certificates in
      the manner described in Section 3.01(a) of this Trust Supplement.

            (c) If the  aggregate  principal  payments  scheduled  for a Regular
      Distribution  Date prior to the Delivery  Period  Termination  Date differ
      from the amount thereof set forth for the Applicable  Certificates on page
      S-34 of the Prospectus Supplement,  by no later than the 15th day prior to
      such Regular  Distribution  Date, the Trustee shall mail written notice of
      the  actual  amount  of  such   scheduled   payments  to  the   Applicable
      Certificateholders of record as of a date within 15 Business Days prior to
      the date of mailing.

            (d) Promptly  following (i) the Delivery Period Termination Date, if
      there has been any change in the information set forth in clauses (x), (y)
      and  (z)  below  from  that  set  forth  in page  S-34  of the  Prospectus
      Supplement,  and (ii) the date of any early  redemption or purchase of, or
      any default in the payment of  principal or interest in respect of, any of
      the Equipment Notes held in the Applicable Trust, or any Final Withdrawal,


<PAGE>

      the Trustee shall furnish to  Applicable  Certificateholders  of record on
      such date a statement  setting  forth (x) the expected  Pool  Balances for
      each subsequent  Regular  Distribution  Date following the Delivery Period
      Termination   Date,   (y)  the  related  Pool  Factors  for  such  Regular
      Distribution Dates and (z) the expected principal distribution schedule of
      the Equipment Notes, in the aggregate,  held as Trust Property at the date
      of such notice. With respect to the Applicable  Certificates registered in
      the name of a Clearing Agency,  on the Delivery Period  Termination  Date,
      the Trustee will request from such Clearing  Agency a securities  position
      listing  setting  forth  the  names of all  Clearing  Agency  Participants
      reflected  on such  Clearing  Agency's  books as holding  interests in the
      Applicable  Certificates  on such date. The Trustee will mail to each such
      Clearing Agency  Participant  the statement  described above and will make
      available   additional   copies  as  requested  by  such  Clearing  Agency
      Participant  for  forwarding  to holders of  interests  in the  Applicable
      Certificates.

            (e) This Section 3.01  supersedes  and replaces  Section 4.03 of the
      Basic Agreement, with respect to the Applicable Trust.


                                   ARTICLE IV
                                     DEFAULT

            Section 4.01. PURCHASE RIGHTS OF CERTIFICATEHOLDERS. (a) At any time
after the occurrence and during the  continuation of a Triggering  Event, if the
Class   A-2   Trustee   is  then  the   Controlling   Party,   each   Applicable
Certificateholder  shall have the right to purchase,  for the purchase price set
forth in the Class A-2 Trust Agreement, all, but not less than all, of the Class
A-2 Certificates upon ten days' written notice to the Class A-2 Trustee and each
other  Applicable  Certificateholder,  PROVIDED  that (i) if prior to the end of
such  ten-day  period  any  other  Applicable  Certificateholder  notifies  such
purchasing   Applicable    Certificateholder    that   such   other   Applicable
Certificateholder  wants  to  participate  in such  purchase,  then  such  other
Applicable   Certificateholder   may  join   with  the   purchasing   Applicable
Certificateholder  to  purchase  all,  but not less than  all,  of the Class A-2
Certificates  pro  rata  based  on  the  Fractional  Undivided  Interest  in the
Applicable  Trust  held by each such  Applicable  Certificateholder  and (ii) if
prior to the end of such ten-day period any other  Applicable  Certificateholder
fails to  notify  the  purchasing  Applicable  Certificateholder  of such  other
Applicable  Certificateholder's  desire to participate in such a purchase,  then
such other  Applicable  Certificateholder  shall lose its right to purchase  the
Class A-2 Certificates pursuant to this Section 4.01(a).

            (b) By acceptance of its  Applicable  Certificate,  each  Applicable
      Certificateholder  agrees that at any time after the occurrence and during
      the continuation of a Triggering Event,

            (i) if the  Trustee is then the  Controlling  Party,  each Class A-2
      Certificateholder  shall have the right to purchase all, but not less than
      all, of the Applicable  Certificates  upon ten days' written notice to the
      Trustee and each other Class A-2  Certificateholder,  PROVIDED that (A) if
      prior  to  the  end  of  such   ten-day   period   any  other   Class  A-2
      Certificateholder  notifies such  purchasing  Class A-2  Certificateholder


<PAGE>

      that such other Class A-2  Certificateholder  wants to participate in such
      purchase,  then such other Class A-2  Certificateholder  may join with the
      purchasing Class A-2  Certificateholder to purchase all, but not less than
      all,  of the  Applicable  Certificates  pro rata  based on the  Fractional
      Undivided  Interest  in the Class A-2  Trust  held by each such  Class A-2
      Certificateholder  and (B) if prior to the end of such ten-day  period any
      other Class A-2 Certificateholder fails to notify the purchasing Class A-2
      Certificateholder  of such other Class A-2  Certificateholder's  desire to
      participate   in   such  a   purchase,   then   such   other   Class   A-2
      Certificateholder   shall  lose  its  right  to  purchase  the  Applicable
      Certificates pursuant to this Section 4.01(b);

            (ii) each  Class B  Certificateholder  shall  have the right  (which
      shall not expire upon any purchase of the Applicable Certificates pursuant
      to clause (a) or (b)(i)  above) to purchase all, but not less than all, of
      the Applicable  Certificates and the Class A-2 Certificates upon ten days'
      written notice to the Trustee,  the Class A-2 Trustee and each other Class
      B Certificateholder, PROVIDED that (A) if prior to the end of such ten-day
      period any other Class B Certificateholder  notifies such purchasing Class
      B  Certificateholder  that such other Class B  Certificateholder  wants to
      participate  in such purchase,  then such other Class B  Certificateholder
      may join with the purchasing  Class B  Certificateholder  to purchase all,
      but not less than all, of the  Applicable  Certificates  and the Class A-2
      Certificates  pro rata based on the Fractional  Undivided  Interest in the
      Class B Trust held by each such Class B Certificateholder and (B) if prior
      to the end of such  ten-day  period  any other  Class B  Certificateholder
      fails to notify the  purchasing  Class B  Certificateholder  of such other
      Class B Certificateholder's desire to participate in such a purchase, then
      such other Class B Certificateholder  shall lose its right to purchase the
      Applicable  Certificates and the Class A-2  Certificates  pursuant to this
      Section 4.01(b);

            (iii)   each   Class   C-1    Certificateholder    and   Class   C-2
      Certificateholder  (each a "CLASS  C  CERTIFICATEHOLDER")  shall  have the
      right  (which  shall  not  expire  upon  any  purchase  of the  Applicable
      Certificates  pursuant to clause (a), (b)(i) or (b)(ii) above) to purchase
      all, but not less than all, of the Applicable Certificates,  the Class A-2
      Certificates and the Class B Certificates upon ten days' written notice to
      the Trustee,  the Class A-2  Trustee,  the Class B Trustee and (x) if such
      purchasing  Class C  Certificateholder  is a Class C-1  Certificateholder,
      each  other  Class C-1  Certificateholder  and either (I) if the Class C-2
      Trustee  shall  have made a current  list of Class C-2  Certificateholders
      available  to such  purchasing  Class C  Certificateholder  upon a request
      therefor,  each Class C-2 Certificateholder,  or (II) if clause (I) is not
      applicable,  the  Class C-2  Trustee,  or (y) if such  purchasing  Class C
      Certificateholder is a Class C-2  Certificateholder,  each other Class C-2
      Certificateholder  and either (I) if the Class C-1 Trustee shall have made
      a  current  list  of  Class  C-1  Certificateholders   available  to  such
      purchasing Class C Certificateholder  upon a request therefor,  each Class
      C-1 Certificateholder,  or (II) if clause (I) is not applicable, the Class
      C-1 Trustee,  PROVIDED that (A) if prior to the end of such ten-day period
      any other  Class C  Certificateholder  notifies  such  purchasing  Class C
      Certificateholder  that  such  other  Class C  Certificateholder  wants to
      participate  in such purchase,  then such other Class C  Certificateholder
      may join with the purchasing  Class C  Certificateholder  to purchase all,
      but not less  than  all,  of the  Applicable  Certificates,  the Class A-2


<PAGE>

      Certificates  and the Class B  Certificates  pro rata based on the Class C
      Fractional  Undivided Interest held by each such Class C Certificateholder
      and (B) if prior  to the end of such  ten-day  period  any  other  Class C
      Certificateholder fails to notify the purchasing Class C Certificateholder
      of such other Class C Certificateholder's  desire to participate in such a
      purchase,  then such other Class C Certificateholder  shall lose its right
      to purchase the Applicable  Certificates,  the Class A-2  Certificates and
      the Class B Certificates pursuant to this Section 4.01(b); and

            (iv)   each   holder   of  a  Class  D   Certificate   (a  "CLASS  D
      CERTIFICATEHOLDER")  shall have the right (which shall not expire upon any
      purchase of the Applicable  Certificates  pursuant to clause (a),  (b)(i),
      (b)(ii) or (b)(iii)  above) to purchase all, but not less than all, of the
      Applicable  Certificates,   the  Class  A-2  Certificates,   the  Class  B
      Certificates,  the Class C-1  Certificates  and the Class C-2 Certificates
      upon ten days' written notice to the Trustee,  the Class A-2 Trustee,  the
      Class B Trustee,  the Class C-1  Trustee,  the Class C-2  Trustee and each
      other Class D Certificateholder,  PROVIDED that (A) if prior to the end of
      such  ten-day  period any other Class D  Certificateholder  notifies  such
      purchasing   Class  D   Certificateholder   that   such   other   Class  D
      Certificateholder  wants to participate in such purchase,  then such other
      Class  D   Certificateholder   may  join  with  the  purchasing   Class  D
      Certificateholder  to  purchase  all,  but  not  less  than  all,  of  the
      Applicable  Certificates,   the  Class  A-2  Certificates,   the  Class  B
      Certificates,  the Class C-1  Certificates  and the Class C-2 Certificates
      pro rata based on the Fractional  Undivided  Interest in the Class D Trust
      held by each such Class D Certificateholder and (B) if prior to the end of
      such ten-day  period any other Class D  Certificateholder  fails to notify
      the  purchasing   Class  D   Certificateholder   of  such  other  Class  D
      Certificateholder's  desire to participate  in such a purchase,  then such
      other  Class D  Certificateholder  shall  lose its right to  purchase  the
      Applicable  Certificates,   the  Class  A-2  Certificates,   the  Class  B
      Certificates,  the Class C-1  Certificates  and the Class C-2 Certificates
      pursuant to this Section 4.01(b).

            The purchase price with respect to the Applicable Certificates shall
be equal to the Pool  Balance  of the  Applicable  Certificates,  together  with
accrued  and  unpaid  interest  thereon  to the date of such  purchase,  without
premium,  but including any other amounts then due and payable to the Applicable
Certificateholders  under the Agreement, the Intercreditor Agreement, the Escrow
Agreement  or  any  Note  Document  or  on  or  in  respect  of  the  Applicable
Certificates;   PROVIDED,   HOWEVER,   that  no  such   purchase  of  Applicable
Certificates  shall be effective  unless the  purchaser(s)  shall certify to the
Trustee that  contemporaneously  with such purchase,  such purchaser(s) is (are)
purchasing, pursuant to the terms of the Agreement and the Other Agreements, (A)
in the case of any purchase of the  Applicable  Certificates  pursuant to clause
(b)(i) above, all of the Applicable Certificates, or (B) in all other cases, the
Applicable Certificates,  the Class A-2 Certificates,  the Class B Certificates,
the Class C-1 Certificates and the Class C-2 Certificates that are senior to the
securities held by such purchaser(s).  Each payment of the purchase price of the
Applicable  Certificates  referred to in the first sentence hereof shall be made
to an account or accounts designated by the Trustee and each such purchase shall
be   subject   to  the  terms  of  this   Section   4.01(b).   Each   Applicable
Certificateholder  agrees by its acceptance of its Applicable  Certificate  that
(at any time after the  occurrence and during the  continuation  of a Triggering
Event) it will, upon payment from such Class A-2  Certificateholder(s),  Class B
Certificateholder(s),     Class    C-1    Certificateholder(s),     Class    C-2


<PAGE>

Certificateholder(s) or Class D Certificateholder(s), as the case may be, of the
purchase price set forth in the first sentence of this paragraph,  (i) forthwith
sell, assign, transfer and convey to the purchaser(s) thereof (without recourse,
representation  or  warranty  of any kind  except for its own acts),  all of the
right, title,  interest and obligation of such Applicable  Certificateholder  in
the Agreement,  the Escrow Agreement,  the Deposit Agreement,  the Intercreditor
Agreement,  the  Liquidity  Facility,  the  NPA,  the  Note  Documents  and  all
Applicable   Certificates   and  Escrow   Receipts   held  by  such   Applicable
Certificateholder  (excluding  all right,  title and  interest  under any of the
foregoing  to the extent  such right,  title or  interest is with  respect to an
obligation  not then due and payable as respects any action or inaction or state
of affairs  occurring prior to such sale) (and the purchaser shall assume all of
such Applicable Certificateholder's  obligations under the Agreement, the Escrow
Agreement,  the Deposit Agreement,  the Intercreditor  Agreement,  the Liquidity
Facility,  the NPA, the Note Documents and all such Applicable  Certificates and
Escrow Receipts),  (ii) if such purchase occurs after a record date specified in
Section  2.03 of the Escrow  Agreement  relating to the  distribution  of unused
Deposits  and/or accrued and unpaid  interest on Deposits and prior to or on the
related distribution date thereunder, forthwith turn over to the purchaser(s) of
its Applicable  Certificate  all amounts,  if any,  received by it on account of
such  distribution,  and  (iii) if such  purchase  occurs  after a  Record  Date
relating to any distribution and prior to or on the related  Distribution  Date,
forthwith  turn  over to the  purchaser(s)  of its  Applicable  Certificate  all
amounts, if any, received by it on account of such distribution.  The Applicable
Certificates  will be deemed to be purchased on the date payment of the purchase
price is made  notwithstanding the failure of the Applicable  Certificateholders
to deliver any Applicable  Certificates and, upon such a purchase,  (I) the only
rights of the  Applicable  Certificateholders  will be to deliver the Applicable
Certificates  to the  purchaser(s)  and  receive  the  purchase  price  for such
Applicable  Certificates  and (II) if the  purchaser(s)  shall so request,  such
Applicable Certificateholder will comply with all the provisions of Section 3.04
of the Basic Agreement to enable new Applicable Certificates to be issued to the
purchaser in such denominations as it shall request. All charges and expenses in
connection  with the issuance of any such new Applicable  Certificates  shall be
borne by the purchaser thereof.

            As used in this Section 4.01 and elsewhere in this Trust Supplement,
the terms "Class A-2  Certificate",  "Class A-2  Certificateholder",  "Class A-2
Trust", "Class A-2 Trust Agreement", "Class A-2 Trustee", "Class B Certificate",
"Class B  Certificateholder",  "Class B Trust",  "Class B  Trustee",  "Class C-1
Certificate",  "Class  C-1  Certificateholder",  "Class C-1  Trust",  "Class C-1
Trustee",  "Class C-2 Certificate",  "Class C-2  Certificateholder",  "Class C-2
Trust",  "Class C-2 Trustee",  "Class D Certificate" and "Class D Trust",  shall
have  the  respective  meanings  assigned  to such  terms  in the  Intercreditor
Agreement.

            (c) This Section 4.01 supersedes and replaces Section 6.01(b) of the
      Basic Agreement, with respect to the Applicable Trust.

            Section  4.02.  AMENDMENT  OF SECTION  6.05 OF THE BASIC  Agreement.
Section  6.05 of the Basic  Agreement  shall be  amended,  with  respect  to the
Applicable  Trust, by deleting the phrase "and thereby annul any Direction given
by such  Certificateholders  or the Trustee to such Loan  Trustee  with  respect
thereto," set forth in the first sentence thereof.


<PAGE>

                                    ARTICLE V
                                  THE TRUSTEE

            Section 5.01. DELIVERY OF DOCUMENTS; DELIVERY DATES. (a) The Trustee
is hereby directed (i) to execute and deliver the Intercreditor  Agreement,  the
Escrow  Agreement and the NPA on or prior to the Issuance Date, each in the form
delivered  to the Trustee by the  Company,  and (ii)  subject to the  respective
terms  thereof,  to perform  its  obligations  thereunder.  Upon  request of the
Company and the  satisfaction or waiver of the closing  conditions  specified in
the Underwriting Agreement,  the Trustee shall execute,  deliver,  authenticate,
issue and sell Applicable  Certificates in authorized  denominations equaling in
the aggregate the amount set forth,  with respect to the  Applicable  Trust,  in
Schedule  I to  the  Underwriting  Agreement  evidencing  the  entire  ownership
interest in the  Applicable  Trust,  which amount  equals the maximum  aggregate
principal  amount of  Equipment  Notes  which may be  purchased  by the  Trustee
pursuant to the NPA. Except as provided in Sections 3.03, 3.04, 3.05 and 3.06 of
the Basic  Agreement,  the Trustee  shall not execute,  authenticate  or deliver
Applicable  Certificates  in excess of the  aggregate  amount  specified in this
paragraph.  The  provisions  of this Section  5.01(a)  supersede and replace the
first sentence of Section  3.02(a) of the Basic  Agreement,  with respect to the
Applicable Trust.

            (b) On or after the Issuance Date, the Company may deliver from time
      to time to the Trustee a Delivery Notice relating to one or more Equipment
      Notes.  After  receipt of a Delivery  Notice and in any case no later than
      one  Business  Day prior to a  Scheduled  Delivery  Date as to which  such
      Delivery  Notice relates (the  "APPLICABLE  DELIVERY  DATE"),  the Trustee
      shall (as and when specified in the Delivery  Notice)  instruct the Escrow
      Agent to  provide  a  Notice  of  Purchase  Withdrawal  to the  Depositary
      requesting  (A) the  withdrawal of one or more Deposits on the  Applicable
      Delivery Date in accordance with and to the extent  permitted by the terms
      of the Escrow  Agreement and the Deposit  Agreement and (B) the payment of
      all, or a portion,  of such  Deposit or Deposits in an amount equal in the
      aggregate to the purchase price of such Equipment Notes to or on behalf of
      the  Owner  Trustee  or the  Company,  as the  case may be,  issuing  such
      Equipment  Notes,  all as  shall  be  described  in the  Delivery  Notice;
      PROVIDED  that, if the Issuance Date is an Applicable  Delivery  Date, the
      Trustee shall not so instruct the Escrow Agent,  and the purchase price of
      such  Equipment  Notes shall be paid from a portion of the proceeds of the
      sale of the  Applicable  Certificates.  The  Trustee  shall  (as and  when
      specified in such Delivery Notice), subject to the conditions set forth in
      Section 2 of the NPA,  enter into and  perform its  obligations  under the
      Participation Agreement specified in such Delivery Notice (the "APPLICABLE
      PARTICIPATION AGREEMENT") and cause such certificates, documents and legal
      opinions  relating to the Trustee to be duly  delivered as required by the
      Applicable Participation Agreement. If at any time prior to the Applicable
      Delivery Date, the Trustee  receives a notice of postponement  pursuant to
      Section  1(e) or  1(f)  of the  NPA,  then  the  Trustee  shall  give  the
      Depositary  (with a copy to the Escrow Agent) a notice of  cancellation of
      such Notice of Purchase Withdrawal relating to such Deposit or Deposits on
      such  Applicable  Delivery  Date.  Upon  satisfaction  of  the  conditions
      specified  in the NPA  and the  Applicable  Participation  Agreement,  the
      Trustee shall purchase the applicable Equipment Notes with the proceeds of
      the  withdrawals of one or more Deposits made on the  Applicable  Delivery
      Date in accordance with the terms of the Deposit  Agreement and the Escrow


<PAGE>

      Agreement (or, if the Issuance Date is the  Applicable  Delivery Date with
      respect to such Applicable Participation Agreement,  from a portion of the
      proceeds of the sale of the Applicable  Certificates).  The purchase price
      of such Equipment Notes shall equal the principal amount of such Equipment
      Notes.  Amounts  withdrawn  from such Deposit or Deposits in excess of the
      purchase price of the Equipment  Notes or to the extent not applied on the
      Applicable  Delivery Date to the purchase  price of the  Equipment  Notes,
      shall be re-deposited by the Trustee with the Depositary on the Applicable
      Delivery Date in accordance with the terms of the Deposit  Agreement.  The
      provisions of this Section 5.01(b) supersede and replace the provisions of
      Section 2.02 of the Basic Agreement with respect to the Applicable  Trust,
      and all provisions of the Basic Agreement  relating to Postponed Notes and
      Section  2.02 of the Basic  Agreement  shall  not apply to the  Applicable
      Trust.

            (c) The Trustee  acknowledges its acceptance of all right, title and
      interest in and to the Trust  Property to be acquired  pursuant to Section
      5.01(b)  of  this   Trust   Supplement,   the  NPA  and  each   Applicable
      Participation  Agreement,  and  declares  that it holds and will hold such
      right,  title and  interest  for the  benefit  of all  present  and future
      Applicable   Certificateholders,   upon  the  trusts  set  forth  in  this
      Agreement.  By its acceptance of an Applicable  Certificate,  each initial
      Applicable Certificateholder,  as a grantor of the Applicable Trust, joins
      with the Trustee in the creation of the Applicable  Trust.  The provisions
      of this Section  5.01(c)  supersede and replace the  provisions of Section
      2.03 of the Basic Agreement, with respect to the Applicable Trust.

            Section  5.02.  WITHDRAWAL  OF  DEPOSITS.  If  any  Deposits  remain
outstanding  on the Business Day next  succeeding  the Cut-off Date, the Trustee
shall give the Escrow Agent  notice that the  Trustee's  obligation  to purchase
Equipment  Notes under the NPA has  terminated  and instruct the Escrow Agent to
provide a notice of Final Withdrawal to the Depositary substantially in the form
of Exhibit B to the Deposit Agreement (the "FINAL WITHDRAWAL NOTICE").

            Section 5.03. THE TRUSTEE. (a) Subject to Section 5.04 of this Trust
Supplement  and Section 7.15 of the Basic  Agreement,  the Trustee  shall not be
responsible  in any  manner  whatsoever  for or in respect  of the  validity  or
sufficiency  of this Trust  Supplement,  the Deposit  Agreement,  the NPA or the
Escrow  Agreement or the due  execution  hereof or thereof by the Company or the
other  parties  thereto  (other than the  Trustee),  or for or in respect of the
recitals and statements  contained herein or therein,  all of which recitals and
statements  are made  solely by the  Company,  except  that the  Trustee  hereby
represents and warrants that each of this Trust Supplement, the Basic Agreement,
each Applicable Certificate, the Intercreditor Agreement, the NPA and the Escrow
Agreement  has been  executed  and  delivered by one of its officers who is duly
authorized to execute and deliver such document on its behalf.

            (b)  Except as herein  otherwise  provided  and  except  during  the
      continuation  of an Event of Default in  respect of the  Applicable  Trust
      created hereby, no duties, responsibilities or liabilities are assumed, or
      shall be construed  to be assumed,  by the Trustee by reason of this Trust
      Supplement  other  than as set  forth in the  Agreement,  and  this  Trust
      Supplement  is executed and accepted on behalf of the Trustee,  subject to


<PAGE>

      all the terms and conditions  set forth in the Agreement,  as fully to all
      intents as if the same were herein set forth at length.

            Section 5.04.  REPRESENTATIONS  AND  WARRANTIES OF THE TRUSTEE.  The
Trustee hereby represents and warrants that:

            (a) the  Trustee  has  full  power,  authority  and  legal  right to
      execute,  deliver and perform  this Trust  Supplement,  the  Intercreditor
      Agreement,  the Escrow Agreement,  the NPA and the Note Documents to which
      it is or is to  become a party  and has  taken  all  necessary  action  to
      authorize  the  execution,  delivery and  performance  by it of this Trust
      Supplement, the Intercreditor Agreement, the Escrow Agreement, the NPA and
      the Note Documents to which it is or is to become a party;

            (b) the execution,  delivery and  performance by the Trustee of this
      Trust Supplement,  the Intercreditor  Agreement, the Escrow Agreement, the
      NPA and the Note Documents to which it is or is to become a party (i) will
      not violate any provision of any United  States  federal law or the law of
      the state of the United  States where it is located  governing the banking
      and trust powers of the Trustee or any order, writ, judgment, or decree of
      any court,  arbitrator or governmental authority applicable to the Trustee
      or any of its assets,  (ii) will not violate any provision of the articles
      of association  or by-laws of the Trustee,  and (iii) will not violate any
      provision of, or  constitute,  with or without  notice or lapse of time, a
      default under,  or result in the creation or imposition of any lien on any
      properties  included in the Trust  Property  pursuant to the provisions of
      any mortgage, indenture, contract, agreement or other undertaking to which
      it is a party,  which  violation,  default  or lien  could  reasonably  be
      expected to have an adverse effect on the Trustee's performance or ability
      to perform  its duties  hereunder  or  thereunder  or on the  transactions
      contemplated herein or therein;

            (c) the execution,  delivery and  performance by the Trustee of this
      Trust Supplement,  the Intercreditor  Agreement, the Escrow Agreement, the
      NPA and the Note Documents to which it is or is to become a party will not
      require the authorization,  consent,  or approval of, the giving of notice
      to, the filing or registration  with, or the taking of any other action in
      respect of, any  governmental  authority or agency of the United States or
      the state of the United States where it is located  regulating the banking
      and corporate trust activities of the Trustee; and

            (d) this Trust Supplement,  the Intercreditor  Agreement, the Escrow
      Agreement, the NPA and the Note Documents to which it is or is to become a
      party have been, or will be, as applicable, duly executed and delivered by
      the Trustee and constitute, or will constitute, as applicable,  the legal,
      valid and binding  agreements  of the Trustee,  enforceable  against it in
      accordance  with  their  respective   terms;   PROVIDED,   HOWEVER,   that
      enforceability  may be limited by (i) applicable  bankruptcy,  insolvency,
      reorganization,  moratorium  or  similar  laws  affecting  the  rights  of
      creditors generally and (ii) general principles of equity.


<PAGE>

            Section 5.05. TRUSTEE LIENS. The Trustee in its individual  capacity
agrees,  in addition to the  agreements  contained  in Section 7.17 of the Basic
Agreement,  that it will at its own cost and expense promptly take any action as
may be necessary to duly discharge and satisfy in full any Trustee's Liens on or
with respect to the Trust Property which is  attributable  to the Trustee in its
individual  capacity and which is unrelated to the transactions  contemplated by
the Intercreditor Agreement or the NPA.


                                   ARTICLE VI
                  ADDITIONAL AMENDMENT; SUPPLEMENTAL AGREEMENTS

            Section  6.01.  AMENDMENT  OF SECTION  5.02 OF THE BASIC  Agreement.
Section  5.02 of the Basic  Agreement  shall be  amended,  with  respect  to the
Applicable Trust, by (i) replacing the phrase "of the Note Documents and of this
Agreement"  set forth in  paragraph  (b)  thereof  with the  phrase "of the Note
Documents,  of the NPA and of this  Agreement" and (ii) replacing the phrase "of
this Agreement and any Note Document" set forth in the last paragraph of Section
5.02 with the phrase "of this Agreement, the NPA and any Note Document".

            Section 6.02.  SUPPLEMENTAL AGREEMENTS WITHOUT CONSENT OF APPLICABLE
CERTIFICATEHOLDERS.  Without  limitation of Section 9.01 of the Basic Agreement,
under the terms of, and subject to the limitations contained in, Section 9.01 of
the Basic  Agreement,  the Company may (but will not be  required  to),  and the
Trustee (subject to Section 9.03 of the Basic Agreement) shall, at the Company's
request,  at any  time  and  from  time to  time,  (i)  enter  into  one or more
agreements  supplemental  to the  Escrow  Agreement,  the  NPA  or  the  Deposit
Agreement,  for any of the purposes set forth in clauses (1) through (9) of such
Section  9.01,  and (without  limitation of the foregoing or Section 9.01 of the
Basic  Agreement)  (a)  clauses (2) and (3) of such  Section  9.01 shall also be
deemed to include the Company's  obligations  under (in the case of clause (2)),
and the  Company's  rights and powers  conferred by (in the case of clause (3)),
the NPA, and (b)  references in clauses (4), (6) and (7) of such Section 9.01 to
"any Intercreditor  Agreement or any Liquidity Facility" shall also be deemed to
refer to "the  Intercreditor  Agreement,  the  Liquidity  Facility,  the  Escrow
Agreement,  the NPA or the  Deposit  Agreement"  and (ii) enter into one or more
agreements  supplemental  to this  Agreement  to provide for the  formation of a
Class D Trust, the issuance of Class D Certificates, the purchase by the Class D
Trust of  Equipment  Notes and other  matters  incidental  thereto or  otherwise
contemplated by Section 2.01(b) of the Basic Agreement.

            Section  6.03.  SUPPLEMENTAL  AGREEMENTS  WITH CONSENT OF APPLICABLE
CERTIFICATEHOLDERS.  Without  limitation of Section 9.02 of the Basic Agreement,
the provisions of Section 9.02 of the Basic  Agreement shall apply to agreements
or  amendments  for the purpose of adding any  provisions  to or changing in any
manner or eliminating any of the provisions of the Escrow Agreement, the Deposit
Agreement or the NPA or modifying  in any manner the rights and  obligations  of
the  Applicable  Certificateholders  under the  Escrow  Agreement,  the  Deposit
Agreement or the NPA;  provided that the  provisions  of Section  9.02(1) of the
Basic Agreement shall be deemed to include reductions in any manner of, or delay
in the timing of, any receipt by the Applicable  Certificateholders  of payments
upon the Deposits.


<PAGE>


                                   ARTICLE VII
                              TERMINATION OF TRUST

            Section  7.01.   TERMINATION  OF  THE  APPLICABLE   TRUST.  (a)  The
respective  obligations and responsibilities of the Company and the Trustee with
respect to the  Applicable  Trust  shall  terminate  upon the earlier of (A) the
completion  of the  assignment,  transfer and  discharge  described in the first
sentence of the  immediately  following  paragraph and (B)  distribution  to all
Applicable  Certificateholders  and the  Trustee of all  amounts  required to be
distributed  to them  pursuant  to this  Agreement  and the  disposition  of all
property held as part of the Trust Property; PROVIDED, HOWEVER, that in no event
shall the Applicable Trust continue beyond one hundred ten (110) years following
the date of the execution of this Trust Supplement.

            Upon the earlier of (i) the first  Business Day following  March 31,
2001,  or, if later,  the fifth  Business  Day  following  the  Delivery  Period
Termination  Date and (ii) the fifth  Business Day following the date on which a
Triggering Event occurs (such date, the "TRANSFER DATE"), or, if later, the date
on which all of the conditions set forth in the immediately  following  sentence
have been  satisfied,  the  Trustee  is  hereby  directed  (subject  only to the
immediately following sentence) to, and the Company shall direct the institution
that will serve as the Related  Trustee  under the Related  Pass  Through  Trust
Agreement  to,  execute and deliver the  Assignment  and  Assumption  Agreement,
pursuant  to which the Trustee  shall  assign,  transfer  and deliver all of the
Trustee's right, title and interest to the Trust Property to the Related Trustee
under the Related  Pass  Through  Trust  Agreement.  The Trustee and the Related
Trustee shall execute and deliver the Assignment  and Assumption  Agreement upon
the satisfaction of the following conditions:

            (i) The Trustee, the Related Trustee and each of the Rating Agencies
      then rating the Applicable  Certificates  shall have received an Officer's
      Certificate and an Opinion of Counsel dated the date of the Assignment and
      Assumption  Agreement and each satisfying the requirements of Section 1.02
      of the Basic Agreement, which Opinion of Counsel shall be substantially to
      the effect set forth below and may be relied upon by the Beneficiaries (as
      defined in the Assignment and Assumption Agreement):

            (I) Upon the execution and delivery  thereof by the parties  thereto
      in  accordance  with the  terms of this  Agreement  and the  Related  Pass
      Through Trust  Agreement,  the Assignment  and  Assumption  Agreement will
      constitute the valid and binding obligation of each of the parties thereto
      enforceable against each such party in accordance with its terms;

            (II)  Upon  the  execution  and  delivery  of  the   Assignment  and
      Assumption  Agreement in accordance  with the terms of this  Agreement and
      the  Related  Pass  Through  Trust  Agreement,   each  of  the  Applicable
      Certificates  then  Outstanding  will be entitled  to the  benefits of the
      Related Pass Through Trust Agreement;

            (III) The  Related  Trust is not  required  to be  registered  as an
      investment company under the Investment Company Act of 1940, as amended;


<PAGE>

            (IV) The Related Pass Through Trust Agreement  constitutes the valid
      and binding obligation of the Company  enforceable  against the Company in
      accordance with its terms; and

            (V)  Neither  the  execution  and  delivery  of the  Assignment  and
      Assumption  Agreement in accordance  with the terms of this  Agreement and
      the Related Pass Through  Trust  Agreement,  nor the  consummation  by the
      parties  thereto  of  the  transactions  contemplated  to  be  consummated
      thereunder on the date thereof,  will violate any law or governmental rule
      or  regulation  of the State of New York or the  United  States of America
      known to such counsel to be applicable to the transactions contemplated by
      the Assignment and Assumption Agreement.

            (ii) The Trustee and the Company  shall have  received (x) a copy of
      the articles of incorporation  and bylaws of the Related Trustee certified
      as of the Transfer  Date by the  Secretary or Assistant  Secretary of such
      institution  and  (y) a copy  of the  filing  (including  all  attachments
      thereto) made by the  institution  serving as the Related Trustee with the
      Office of the Superintendent, State of New York Banking Department for the
      qualification  of the Related Trustee under Section 131(3) of the New York
      Banking Law.

Upon the execution of the  Assignment  and  Assumption  Agreement by the parties
thereto,   the   Applicable   Trust   shall  be   terminated,   the   Applicable
Certificateholders  shall receive  beneficial  interests in the Related Trust in
exchange for their interests in the Applicable  Trust equal to their  respective
beneficial  interests in the Applicable  Trust,  and the Outstanding  Applicable
Certificates representing Fractional Undivided Interests in the Applicable Trust
shall be deemed for all purposes of this  Agreement and the Related Pass Through
Trust Agreement,  without further signature or action of any party or Applicable
Certificateholder, to be certificates representing the same fractional undivided
interests in the Related  Trust and its trust  property.  By  acceptance  of its
Applicable  Certificate,  each  Applicable  Certificateholder  consents  to such
assignment,  transfer and  delivery of the Trust  Property to the trustee of the
Related Trust upon the execution and delivery of the  Assignment  and Assumption
Agreement.

            In connection  with the  occurrence of the event set forth in clause
(B) above,  notice of such  termination,  specifying the Distribution  Date upon
which  the  Applicable   Certificateholders   may  surrender  their   Applicable
Certificates  to  the  Trustee  for  payment  of  the  final   distribution  and
cancellation,   shall  be  mailed   promptly  by  the   Trustee  to   Applicable
Certificateholders not earlier than the 60th day and not later than the 15th day
next preceding such final Distribution Date specifying (A) the Distribution Date
upon which the proposed  final payment of the  Applicable  Certificates  will be
made upon presentation and surrender of Applicable Certificates at the office or
agency of the Trustee  therein  specified,  (B) the amount of any such  proposed
final  payment,  and (C) that  the  Record  Date  otherwise  applicable  to such
Distribution Date is not applicable,  payments being made only upon presentation
and  surrender  of the  Applicable  Certificates  at the office or agency of the
Trustee therein  specified.  The Trustee shall give such notice to the Registrar
at the  time  such  notice  is  given  to  Applicable  Certificateholders.  Upon
presentation  and surrender of the Applicable  Certificates  in accordance  with
such  notice,   the  Trustee  shall  cause  to  be   distributed  to  Applicable
Certificateholders such final payments.


<PAGE>

            In the event that all of the Applicable Certificateholders shall not
surrender their Applicable Certificates for cancellation within six months after
the date specified in the above-mentioned written notice, the Trustee shall give
a second  written  notice  to the  remaining  Applicable  Certificateholders  to
surrender their  Applicable  Certificates for cancellation and receive the final
distribution  with respect thereto.  No additional  interest shall accrue on the
Applicable  Certificates  after the  Distribution  Date  specified  in the first
written notice.  In the event that any money held by the Trustee for the payment
of distributions on the Applicable  Certificates  shall remain unclaimed for two
years (or such lesser time as the Trustee shall be satisfied,  after sixty days'
notice from the Company, is one month prior to the escheat period provided under
applicable  law) after the final  distribution  date with respect  thereto,  the
Trustee shall pay to each Loan Trustee the appropriate  amount of money relating
to such Loan Trustee and shall give written  notice thereof to the related Owner
Trustees, the Owner Participants and the Company.

            (b) The  provisions  of this Section 7.01  supersede and replace the
      provisions of Section 11.01 of the Basic  Agreement in its entirety,  with
      respect to the Applicable Trust.


                                  ARTICLE VIII
                            MISCELLANEOUS PROVISIONS

            Section 8.01. BASIC AGREEMENT RATIFIED.  Except and so far as herein
expressly  provided,  all of the  provisions,  terms and conditions of the Basic
Agreement are in all respects  ratified and confirmed;  and the Basic  Agreement
and this Trust Supplement shall be taken, read and construed as one and the same
instrument.  All  replacements of provisions of, and other  modifications of the
Basic  Agreement set forth in this Trust  Supplement  are solely with respect to
the Applicable Trust.

            SECTION 8.02.  GOVERNING  LAW. THE AGREEMENT AND, UNTIL THE TRANSFER
DATE,  THE  APPLICABLE  CERTIFICATES  SHALL  BE  GOVERNED  BY AND  CONSTRUED  IN
ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE.  THIS SECTION 8.02 SUPERSEDES
AND  REPLACES  SECTION  12.05  OF  THE  BASIC  AGREEMENT,  WITH  RESPECT  TO THE
APPLICABLE TRUST.

            SECTION 8.03.  EXECUTION IN COUNTERPARTS.  THIS TRUST SUPPLEMENT MAY
BE EXECUTED IN ANY NUMBER OF  COUNTERPARTS,  EACH OF WHICH SHALL BE AN ORIGINAL,
BUT SUCH COUNTERPARTS SHALL TOGETHER CONSTITUTE BUT ONE AND THE SAME INSTRUMENT.

            Section 8.04.  INTENTION OF PARTIES.  The parties hereto intend that
the  Applicable  Trust be classified  for U.S.  federal income tax purposes as a
grantor trust under  Subpart E, Part I of  Subchapter J of the Internal  Revenue
Code of  1986,  as  amended,  and not as a trust  or  association  taxable  as a
corporation or as a partnership. Each Applicable Certificateholder and Investor,
by its  acceptance  of  its  Applicable  Certificate  or a  beneficial  interest
therein,  agrees to treat the  Applicable  Trust as a grantor trust for all U.S.
federal, state and local income tax purposes. The powers granted and obligations


<PAGE>

undertaken pursuant to the Agreement shall be so construed so as to further such
intent.


<PAGE>

            IN WITNESS  WHEREOF,  the Company  and the Trustee  have caused this
Trust Supplement to be duly executed by their  respective  officers thereto duly
authorized, as of the day and year first written above.

                                     CONTINENTAL AIRLINES, INC.


                                     By:________________________________________
                                     Name:  Gerald Laderman
                                     Title: Senior Vice President - Finance


                                     WILMINGTON TRUST COMPANY,
                                       as Trustee


                                     By:________________________________________
                                     Name:
                                     Title:


<PAGE>

                                    EXHIBIT A
                                    ---------


                               FORM OF CERTIFICATE


Certificate
No.___

            [Unless   this   certificate   is   presented   by   an   authorized
representative of The Depository Trust Company, a New York corporation  ("DTC"),
to Issuer or its agent for  registration of transfer,  exchange or payment,  and
any certificate  issued is registered in the name of Cede & Co. or in such other
name as is requested by an authorized  representative of DTC (and any payment is
made to Cede & Co. or to such  other  entity as is  requested  by an  authorized
representative  of DTC),  ANY TRANSFER,  PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL  inasmuch the registered owner hereof,
Cede & Co., has an interest herein.]<F1>


             CONTINENTAL AIRLINES PASS THROUGH TRUST 2000-1A-1-O

   8.048% Continental Airlines Pass Through Certificate, Series 2000-1A-1-O
                          Issuance Date: March 15, 2000

                        Final Maturity Date: May 1, 2022

      Evidencing A Fractional  Undivided  Interest In The  Continental
      Airlines Pass Through Trust  2000-1A-1-O,  The Property Of Which
      Shall  Include  Certain  Equipment  Notes  Each  Secured  By  An
      Aircraft Leased To Or Owned By Continental Airlines, Inc.


                  $______Fractional Undivided Interest
        representing .0002526656% of the Trust per $1,000 face amount

            THIS CERTIFIES THAT ______,  for value  received,  is the registered
owner of a $______ (                      dollars) Fractional Undivided Interest
in the Continental Airlines Pass Through Trust 2000-1A-1-O (the "TRUST") created
by Wilmington  Trust  Company,  as trustee (the  "TRUSTEE"),  pursuant to a Pass
Through Trust Agreement, dated as of September 25, 1997 (the "BASIC AGREEMENT"),
between the Trustee and Continental Airlines,  Inc., a Delaware corporation (the
"COMPANY"),  as supplemented by Trust Supplement No. 2000-1A-1-O thereto,  dated
as of March 15,  2000  (the  "TRUST  SUPPLEMENT"  and,  together  with the Basic


------------------------
<F1>
This legend to appear on Book-Entry Certificates to be deposited with
the Depository Trust Company.


<PAGE>

Agreement,  the "AGREEMENT"),  between the Trustee and the Company, a summary of
certain of the pertinent  provisions of which is set forth below.  To the extent
not  otherwise  defined  herein,  the  capitalized  terms used  herein  have the
meanings assigned to them in the Agreement.  This Certificate is one of the duly
authorized  Certificates designated as "8.048% Continental Airlines Pass Through
Certificates,  Series  2000-1A-1-O"  (herein  called the  "CERTIFICATES").  This
Certificate  is  issued  under  and is  subject  to the  terms,  provisions  and
conditions of the Agreement.  By virtue of its acceptance  hereof, the holder of
this Certificate (the  "CERTIFICATEHOLDER"  and, together with all other holders
of Certificates  issued by the Trust, the  "CERTIFICATEHOLDERS")  assents to and
agrees to be bound by the  provisions  of the  Agreement  and the  Intercreditor
Agreement.  The property of the Trust includes  certain  Equipment Notes and all
rights of the Trust to receive  payments under the  Intercreditor  Agreement and
the Liquidity Facility (the "TRUST PROPERTY"). Each issue of the Equipment Notes
is secured by, among other things, a security  interest in an Aircraft leased to
or owned by the Company.

            The Certificates  represent  Fractional  Undivided  Interests in the
Trust and the Trust Property and have no rights, benefits or interest in respect
of any  other  separate  trust  established  pursuant  to the terms of the Basic
Agreement for any other series of certificates issued pursuant thereto.

            Subject to and in accordance with the terms of the Agreement and the
Intercreditor Agreement, from funds then available to the Trustee, there will be
distributed  on  each  May 1 and  November  1 (a  "REGULAR  DISTRIBUTION  Date")
commencing  May 1,  2000,  to the  Person  in whose  name  this  Certificate  is
registered  at the  close of  business  on the 15th day  preceding  the  Regular
Distribution  Date,  an amount  in  respect  of the  Scheduled  Payments  on the
Equipment Notes due on such Regular  Distribution Date, the receipt of which has
been confirmed by the Trustee,  equal to the product of the percentage  interest
in the Trust  evidenced  by this  Certificate  and an amount equal to the sum of
such  Scheduled  Payments.  Subject to and in  accordance  with the terms of the
Agreement and the Intercreditor Agreement, in the event that Special Payments on
the Equipment  Notes are received by the Trustee,  from funds then  available to
the Trustee,  there shall be distributed on the applicable Special  Distribution
Date, to the Person in whose name this Certificate is registered at the close of
business on the 15th day preceding the Special  Distribution  Date, an amount in
respect of such Special  Payments on the Equipment  Notes,  the receipt of which
has been  confirmed  by the  Trustee,  equal to the  product  of the  percentage
interest in the Trust  evidenced by this  Certificate and an amount equal to the
sum of such Special  Payments so  received.  If a Regular  Distribution  Date or
Special  Distribution Date is not a Business Day,  distribution shall be made on
the immediately following Business Day with the same force and effect as if made
on such Regular  Distribution Date or Special  Distribution Date and no interest
shall accrue  during the  intervening  period.  The Trustee shall mail notice of
each  Special  Payment  and  the  Special  Distribution  Date  therefor  to  the
Certificateholder of this Certificate.

            Distributions  on this  Certificate  will be made by the  Trustee by
check mailed to the Person entitled thereto,  without  presentation or surrender
of this  Certificate  or the making of any  notation  hereon,  except  that with
respect to Certificates  registered on the Record Date in the name of a Clearing
Agency  (or its  nominee),  such  distribution  shall be made by wire  transfer.
Except as otherwise provided in the Agreement and notwithstanding the above, the
final  distribution on this  Certificate will be made after notice mailed by the


<PAGE>

Trustee of the  pendency of such  distribution  and only upon  presentation  and
surrender of this  Certificate at the office or agency of the Trustee  specified
in such notice.

            The  Certificates  do not  represent a direct  obligation  of, or an
obligation  guaranteed  by, or an interest in, the Company or the Trustee or any
affiliate thereof. The Certificates are limited in right of payment, all as more
specifically set forth on the face hereof and in the Agreement.  All payments or
distributions made to Certificateholders  under the Agreement shall be made only
from the Trust  Property  and only to the  extent  that the  Trustee  shall have
sufficient  income or proceeds from the Trust  Property to make such payments in
accordance  with the  terms of the  Agreement.  Each  Certificateholder  of this
Certificate,  by its acceptance  hereof,  agrees that it will look solely to the
income  and  proceeds  from the  Trust  Property  to the  extent  available  for
distribution  to such  Certificateholder  as  provided  in the  Agreement.  This
Certificate does not purport to summarize the Agreement and reference is made to
the Agreement for information with respect to the interests,  rights,  benefits,
obligations,  privileges,  and duties evidenced  hereby. A copy of the Agreement
may be examined  during normal  business  hours at the  principal  office of the
Trustee,  and at such other places,  if any,  designated by the Trustee,  by any
Certificateholder upon request.

            The Agreement permits, with certain exceptions therein provided, the
amendment  thereof and the  modification  of the rights and  obligations  of the
Company and the rights of the Certificateholders under the Agreement at any time
by the  Company  and the  Trustee  with the  consent  of the  Certificateholders
holding Certificates  evidencing  Fractional Undivided Interests aggregating not
less  than a  majority  in  interest  in the  Trust.  Any  such  consent  by the
Certificateholder  of this  Certificate  shall be conclusive and binding on such
Certificateholder and upon all future Certificateholders of this Certificate and
of any  Certificate  issued upon the transfer hereof or in exchange hereof or in
lieu  hereof  whether  or not  notation  of  such  consent  is  made  upon  this
Certificate.  The  Agreement  also  permits the  amendment  thereof,  in certain
limited  circumstances,  without the consent of the Certificateholders of any of
the Certificates.

            As provided in the Agreement and subject to certain  limitations set
forth therein,  the transfer of this  Certificate is registrable in the Register
upon surrender of this  Certificate for  registration of transfer at the offices
or agencies  maintained by the Trustee in its capacity as  Registrar,  or by any
successor  Registrar,  duly endorsed or accompanied  by a written  instrument of
transfer in form satisfactory to the Trustee and the Registrar, duly executed by
the  Certificateholder   hereof  or  such   Certificateholder's   attorney  duly
authorized in writing,  and thereupon one or more new Certificates of authorized
denominations evidencing the same aggregate Fractional Undivided Interest in the
Trust will be issued to the designated transferee or transferees.

            Under certain  circumstances  set forth in Section 7.01 of the Trust
Supplement, all of the Trustee's right, title and interest to the Trust Property
may be assigned, transferred and delivered to the Related Trustee of the Related
Trust  pursuant  to  the  Assignment   and   Assumption   Agreement.   Upon  the
effectiveness of such Assignment and Assumption Agreement (the "Transfer"),  the
Trust shall be  terminated,  the  Certificateholders  shall  receive  beneficial


<PAGE>

interests  in the Related  Trust in exchange  for their  interests  in the Trust
equal to their  respective  beneficial  interests in the Trust, the Certificates
representing Fractional Undivided Interests in the Trust shall be deemed for all
purposes of the  Agreement  and the Related Pass Through  Trust  Agreement to be
certificates representing the same fractional undivided interests in the Related
Trust and its trust property. Each Certificateholder,  by its acceptance of this
Certificate  or a  beneficial  interest  herein,  agrees  to  be  bound  by  the
Assignment and Assumption Agreement and subject to the terms of the Related Pass
Through Trust Agreement as a  Certificateholder  thereunder.  From and after the
Transfer,  unless and to the extent the context otherwise  requires,  references
herein to the Trust, the Agreement and the Trustee shall  constitute  references
to the Related  Trust,  the Related Pass Through Trust  Agreement and trustee of
the Related Trust, respectively.

            The  Certificates  are  issuable  only  as  registered  Certificates
without coupons in minimum denominations of $1,000 Fractional Undivided Interest
and integral  multiples  thereof except that one  Certificate may be issued in a
different  denomination.  As  provided in the  Agreement  and subject to certain
limitations  therein  set  forth,  the  Certificates  are  exchangeable  for new
Certificates   of  authorized   denominations   evidencing  the  same  aggregate
Fractional   Undivided   Interest   in   the   Trust,   as   requested   by  the
Certificateholder surrendering the same.

            No service charge will be made for any such registration of transfer
or exchange,  but the Trustee shall require payment of a sum sufficient to cover
any tax or governmental charge payable in connection therewith.

            Each  Certificateholder  and  Investor,  by its  acceptance  of this
Certificate  or a  beneficial  interest  herein,  agrees to treat the Trust as a
grantor trust for all U.S. federal, state and local income tax purposes.

            The  Trustee,  the  Registrar,  and any agent of the  Trustee or the
Registrar may treat the person in whose name this  Certificate  is registered as
the owner hereof for all purposes,  and neither the Trustee, the Registrar,  nor
any such agent shall be affected by any notice to the contrary.

            The  obligations and  responsibilities  created by the Agreement and
the  Trust  created   thereby  shall   terminate   upon  the   distribution   to
Certificateholders of all amounts required to be distributed to them pursuant to
the  Agreement  and the  disposition  of all property  held as part of the Trust
Property.

            Any Person  acquiring or accepting  this  Certificate or an interest
herein will, by such  acquisition or acceptance,  be deemed to have  represented
and warranted to and for the benefit of each Owner  Participant  and the Company
that  either:  (i) the assets of an employee  benefit plan subject to Title I of
the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), or of
a plan subject to Section 4975 of the Internal  Revenue Code of 1986, as amended
(the  "CODE"),  have not been used to purchase this  Certificate  or an interest
herein or (ii) the  purchase  and  holding of this  Certificate  or an  interest
herein are exempt from the prohibited transaction  restrictions of ERISA and the
Code pursuant to one or more prohibited  transaction statutory or administrative
exemptions.


<PAGE>

            THE AGREEMENT AND,  UNTIL THE TRANSFER,  THIS  CERTIFICATE  SHALL BE
GOVERNED BY AND CONSTRUED IN  ACCORDANCE  WITH THE LAWS OF THE STATE OF DELAWARE
AND THE  OBLIGATIONS,  RIGHTS AND  REMEDIES  OF THE PARTIES  HEREUNDER  SHALL BE
DETERMINED  IN  ACCORDANCE  WITH SUCH  LAWS.  THE  RELATED  PASS  THROUGH  TRUST
AGREEMENT AND, FROM AND AFTER THE TRANSFER,  THIS CERTIFICATE  SHALL BE GOVERNED
AND  CONSTRUED  IN  ACCORDANCE  WITH THE  LAWS OF THE  STATE OF NEW YORK AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAWS.

            Unless the certificate of authentication hereon has been executed by
the Trustee, by manual signature,  this Certificate shall not be entitled to any
benefit under the Agreement or be valid for any purpose.

            IN WITNESS  WHEREOF,  the Trustee has caused this  Certificate to be
duly executed.

                                    CONTINENTAL AIRLINES PASS THROUGH
                                    TRUST 2000-1A-1-O

                                    By:  WILMINGTON TRUST COMPANY,
                                         as Trustee


                                    By:_________________________________________
                                    Name:
                                    Title:


<PAGE>

             FORM OF THE TRUSTEE'S CERTIFICATE OF AUTHENTICATION



      This  is one  of  the  Certificates  referred  to in the  within-mentioned
Agreement.


                                     WILMINGTON TRUST COMPANY,
                                     as Trustee


                                     By:________________________________________
                                     Name:
                                     Title:


<PAGE>

                                    EXHIBIT B
                                    ---------


                         [DTC Letter of Representations]


<PAGE>

                                    EXHIBIT C
                                    ---------


                   FORM OF ASSIGNMENT AND ASSUMPTION AGREEMENT
              Continental Airlines Pass Through Trust 2000-1A-1-O

            ASSIGNMENT AND ASSUMPTION AGREEMENT (2000-1A-1), dated ____________,
____ (the "ASSIGNMENT AGREEMENT"),  between Wilmington Trust Company, a Delaware
banking corporation  ("WTC"), not in its individual capacity except as expressly
provided  herein,  but solely as trustee under the Pass Through Trust  Agreement
dated as of September  25, 1997 (as amended or modified  from time to time,  the
"BASIC  AGREEMENT"),  as  supplemented by the Trust  Supplement No.  2000-1A-1-O
dated  March 15,  2000  (the  "TRUST  SUPPLEMENT"  and  together  with the Basic
Agreement,  the "AGREEMENT") in respect of the Continental Airlines Pass Through
Trust  2000-1A-1-O (the  "ASSIGNOR"),  and Wilmington Trust Company,  a Delaware
banking corporation, not in its individual capacity except as expressly provided
herein,  but solely as trustee under the Basic  Agreement as supplemented by the
Trust  Supplement No.  2000-1A-1-S  dated March 15, 2000 (the "NEW  SUPPLEMENT",
and,  together with the Basic Agreement,  the "NEW AGREEMENT") in respect of the
Continental Airlines Pass Through Trust 2000-1A-1-S (the "ASSIGNEE").


                             W I T N E S S E T H:
                             - - - - - - - - - -

            WHEREAS, the parties hereto desire to effect on the date hereof (the
"TRANSFER  DATE") (a) the transfer by the Assignor to the Assignee of all of the
right,  title and  interest of the Assignor in, under and with respect to, among
other things,  the Trust Property and each of the documents listed in Schedule I
hereto (the "SCHEDULED DOCUMENTS") and (b) the assumption by the Assignee of the
obligations  of the  Assignor  (i) under  the  Scheduled  Documents  and (ii) in
respect of the Applicable Certificates issued under the Agreement; and

            WHEREAS,   the  Scheduled   Documents   permit  such  transfer  upon
satisfaction of certain  conditions  heretofore or  concurrently  herewith being
complied with;

            NOW,  THEREFORE,  in consideration of the premises and of the mutual
covenants and agreements herein contained, the parties hereto do hereby agree as
follows  (capitalized  terms used herein without  definition  having the meaning
ascribed thereto in the Agreement):

            1.  ASSIGNMENT.  The  Assignor  does hereby  sell,  assign,  convey,
transfer  and set over  unto the  Assignee  as of the  Transfer  Date all of its
present and future  right,  title and interest in, under and with respect to the
Trust Property and the Scheduled  Documents and each other contract,  agreement,
document or instrument relating to the Trust Property or the Scheduled Documents
(such other contracts, agreements,  documents or instruments,  together with the
Scheduled  Documents,  to be referred to as the "ASSIGNED  DOCUMENTS"),  and any


<PAGE>

proceeds therefrom,  together with all documents and instruments  evidencing any
of such right, title and interest.

            2.  ASSUMPTION.  The Assignee  hereby assumes for the benefit of the
Assignor and each of the parties listed in Schedule II hereto (collectively, the
"BENEFICIARIES")  all of the duties and  obligations  of the Assignor,  whenever
accrued, pursuant to the Assigned Documents and hereby confirms that it shall be
deemed a party to each of the  Assigned  Documents  to which the  Assignor  is a
party and shall be bound by all the terms thereof  (including the agreements and
obligations  of the  Assignor  set forth  therein)  as if  therein  named as the
Assignor.  Further,  the Assignee hereby assumes for the benefit of the Assignor
and the  Beneficiaries  all of the duties and  obligations of the Assignor under
the Outstanding Applicable  Certificates and hereby confirms that the Applicable
Certificates  representing  Fractional  Undivided  Interests under the Agreement
shall be deemed for all purposes of the  Agreement  and the New  Agreement to be
certificates  representing the same fractional undivided interests under the New
Agreement equal to their  respective  beneficial  interests in the trust created
under the Agreement.

            3. EFFECTIVENESS.  This Assignment Agreement shall be effective upon
the execution and delivery  hereof by the parties  hereto,  and each  Applicable
Certificateholder,  by  its  acceptance  of  its  Applicable  Certificate  or  a
beneficial interest therein,  agrees to be bound by the terms of this Assignment
Agreement.

            4. PAYMENTS. The Assignor hereby covenants and agrees to pay over to
the Assignee,  if and when received  following  the Transfer  Date,  any amounts
(including  any sums payable as interest in respect  thereof) paid to or for the
benefit of the Assignor that, under Section 1 hereof, belong to the Assignee.

            5. FURTHER ASSURANCES. The Assignor shall, at any time and from time
to time, upon the request of the Assignee, promptly and duly execute and deliver
any and all such further  instruments and documents and take such further action
as the  Assignee  may  reasonably  request to obtain the full  benefits  of this
Assignment  Agreement and of the right and powers herein  granted.  The Assignor
agrees to deliver any Applicable  Certificates,  and all Trust Property, if any,
then in the physical possession of the Assignor, to the Assignee.

            6.  REPRESENTATIONS AND WARRANTIES.  (a) The Assignee represents and
warrants to the Assignor and each of the Beneficiaries that:

            (i) it has all  requisite  power and  authority  and legal  right to
      enter into and carry out the transactions contemplated hereby and to carry
      out and perform the  obligations  of the "Pass Through  Trustee" under the
      Assigned Documents;

            (ii)  on  and  as  of  the  date  hereof,  the  representations  and
      warranties  of the  Assignee  set  forth  in  Section  7.15  of the  Basic
      Agreement and Section 5.04 of the New Supplement are true and correct.

            (b) The Assignor represents and warrants to the Assignee that:


<PAGE>

            (i) it is duly  incorporated,  validly existing and in good standing
      under  the laws of the State of  Delaware  and has the full  trust  power,
      authority  and legal right under the laws of the State of Delaware and the
      United States  pertaining to its trust and fiduciary powers to execute and
      deliver this Assignment Agreement;

            (ii) the execution and delivery by it of this  Assignment  Agreement
      and the  performance  by it of its  obligations  hereunder  have been duly
      authorized  by it and will not violate  its  articles  of  association  or
      by-laws or the  provisions of any indenture,  mortgage,  contract or other
      agreement to which it is a party or by which it is bound; and

            (iii) this Assignment  Agreement  constitutes  the legal,  valid and
      binding  obligations of it enforceable  against it in accordance  with its
      terms,  except  as the  same  may be  limited  by  applicable  bankruptcy,
      insolvency,  reorganization,  moratorium  or similar  laws  affecting  the
      rights of creditors generally and by general principles of equity, whether
      considered in a proceeding at law or in equity.

            7. GOVERNING LAW. THIS ASSIGNMENT AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK INCLUDING MATTERS
OF CONSTRUCTION, VALIDITY AND PERFORMANCE.

            8.  COUNTERPARTS.  This Assignment  Agreement may be executed in any
number  of  counterparts,  all of  which  together  shall  constitute  a  single
instrument.  It shall not be necessary  that any  counterpart  be signed by both
parties so long as each party shall sign at least one counterpart.

            9. THIRD PARTY  BENEFICIARIES.  The Assignee hereby agrees,  for the
benefit of the Beneficiaries, that its representations, warranties and covenants
contained  herein are also  intended to be for the benefit of each  Beneficiary,
and each  Beneficiary  shall be deemed to be an express third party  beneficiary
with  respect  thereto,  entitled  to enforce  directly  and in its own name any
rights or claims it may have against such party as such beneficiary.


<PAGE>

            IN WITNESS  WHEREOF,  the parties hereto,  through their  respective
officers thereunto duly authorized, have duly executed this Assignment Agreement
as of the day and year first above written.

                                    ASSIGNOR:

                                       WILMINGTON  TRUST  COMPANY,  not  in  its
                                       individual  capacity  except as expressly
                                       provided  herein,  but  solely as trustee
                                       under the Pass  Through  Trust  Agreement
                                       and Trust  Supplement  in  respect of the
                                       Continental  Airlines  Pass Through Trust
                                       2000-1A-1-O


                                     By:________________________________________
                                     Title:

                                    ASSIGNEE:

                                       WILMINGTON  TRUST  COMPANY,  not  in  its
                                       individual  capacity  except as expressly
                                       provided  herein,  but  solely as trustee
                                       under the Pass  Through  Trust  Agreement
                                       and Trust  Supplement  in  respect of the
                                       Continental  Airlines  Pass Through Trust
                                       2000-1A-1-S


                                     By:________________________________________
                                     Title:


<PAGE>

                                   Schedule I


                         Schedule of Assigned Documents

            (1)  Intercreditor  Agreement  dated as of March 15,  2000 among the
Trustee, the Other Trustees,  the Liquidity Provider, the liquidity provider, if
any,  relating to the Certificates  issued under (and as defined in) each of the
Other Agreements and the Subordination Agent.

            (2) Escrow and Paying Agent Agreement  (Class A-1) dated as of March
15, 2000 among the Escrow Agent,  the  Underwriters,  the Trustee and the Paying
Agent.

            (3) Note  Purchase  Agreement  dated as of March 15,  2000 among the
Company, the Trustee, the Other Trustees, the Depositary,  the Escrow Agent, the
Paying Agent and the Subordination Agent.

            (4) Deposit Agreement (Class A-1) dated as of March 15, 2000 between
the Escrow Agent and the Depositary.

            (5)  Each  of  the   Operative   Agreements   (as   defined  in  the
Participation Agreement for each Aircraft) in effect as of the Transfer Date.


<PAGE>

                                   Schedule II


                            Schedule of Beneficiaries

Wilmington Trust Company, not in its individual capacity but solely as
Subordination Agent

Wilmington Trust Company, not in its individual capacity but solely as Paying
Agent

Credit Suisse First Boston, acting through its New York branch, as Liquidity
Provider and Depositary

Continental Airlines, Inc.

Credit Suisse First Boston Corporation, as Underwriter

Morgan Stanley & Co. Incorporated, as Underwriter

Chase Securities Inc., as Underwriter

Merrill Lynch, Pierce, Fenner & Smith Incorporated, as Underwriter

Salomon Smith Barney Inc., as Underwriter

First Security Bank, National Association, as Escrow Agent

Each of the other parties to the Assigned Documents




                        TRUST SUPPLEMENT No. 2000-1A-1-S

                              Dated March 15, 2000


                                     between

                            WILMINGTON TRUST COMPANY
                                   as Trustee,


                                       and


                           CONTINENTAL AIRLINES, INC.

                                       to

                          PASS THROUGH TRUST AGREEMENT
                         Dated as of September 25, 1997


                                  $395,780,000

               Continental Airlines Pass Through Trust 2000-1A-1-S
                           8.048% Continental Airlines
                           Pass Through Certificates,
                               Series 2000-1A-1-S


<PAGE>

            This Trust  Supplement No.  2000-1A-1-S,  dated as of March 15, 2000
(herein called the "TRUST SUPPLEMENT"),  between Continental  Airlines,  Inc., a
Delaware  corporation  (the  "COMPANY"),   and  Wilmington  Trust  Company  (the
"TRUSTEE"), to the Pass Through Trust Agreement, dated as of September 25, 1997,
between the Company and the Trustee (the "BASIC AGREEMENT").

                             W I T N E S S E T H:
                             - - - - - - - - - - 

            WHEREAS,  the  Basic  Agreement,   unlimited  as  to  the  aggregate
principal amount of Certificates (unless otherwise specified herein, capitalized
terms used herein without definition having the respective meanings specified in
the Basic  Agreement)  which  may be  issued  thereunder,  has  heretofore  been
executed and delivered;

            WHEREAS,  the Company has obtained  commitments  from Boeing for the
delivery of certain Aircraft;

            WHEREAS,  as of the Transfer  Date (as defined  below),  the Company
will have financed the  acquisition of all or a portion of
 such Aircraft  either
(i) through  separate  leveraged lease  transactions,  in which case the Company
leases such  Aircraft  (collectively,  the "LEASED  AIRCRAFT"),  or (ii) through
separate secured loan transactions, in which case the Company owns such Aircraft
(collectively, the "OWNED AIRCRAFT");

            WHEREAS,  as of the  Transfer  Date,  in the  case  of  each  Leased
Aircraft,  each  Owner  Trustee,  acting on behalf  of the  corresponding  Owner
Participant, will have issued pursuant to an Indenture, on a non-recourse basis,
Equipment  Notes in order to  finance a portion  of its  purchase  price of such
Leased Aircraft;

            WHEREAS,  as of  the  Transfer  Date,  in the  case  of  each  Owned
Aircraft,  the Company will have issued pursuant to an Indenture,  on a recourse
basis,  Equipment Notes to finance a portion of the purchase price of such Owned
Aircraft;

            WHEREAS,  as of the Transfer Date, the Related  Trustee will assign,
transfer  and deliver all of such  trustee's  right,  title and  interest to the
trust  property  held by the  Related  Trustee to the  Trustee  pursuant  to the
Assignment and Assumption Agreement (as defined below);

            WHEREAS,  the  Trustee,  effective  only,  but  automatically,  upon
execution  and delivery of the  Assignment  and  Assumption  Agreement,  will be
deemed to have  declared the creation of the  Continental  Airlines Pass Through
Trust  2000-1A-1-S  (the  "APPLICABLE  TRUST") for the benefit of the Applicable
Certificateholders, and each Holder of Applicable Certificates outstanding as of
the Transfer Date, as the grantors of the Applicable  Trust, by their respective
acceptances of such Applicable  Certificates,  will join in the creation of this
Applicable Trust with the Trustee;


<PAGE>

            WHEREAS,  all  Applicable  Certificates  (as defined  below)  deemed
issued by the Applicable Trust will evidence  fractional  undivided interests in
the Applicable Trust and will convey no rights, benefits or interests in respect
of any  property  other  than the Trust  Property  except  for those  Applicable
Certificates to which an Escrow Receipt (as defined below) has been affixed;

            WHEREAS,  upon the  execution  and  delivery of the  Assignment  and
Assumption Agreement,  all of the conditions and requirements  necessary to make
this Trust Supplement,  when duly executed and delivered,  a valid,  binding and
legal  instrument  in  accordance  with its  terms and for the  purposes  herein
expressed,  have been done,  performed  and  fulfilled,  and the  execution  and
delivery  of this Trust  Supplement  in the form and with the terms  hereof have
been in all respects duly authorized;

            WHEREAS,  this Trust  Supplement is subject to the provisions of the
Trust Indenture Act of 1939, as amended, and shall, to the extent applicable, be
governed by such provisions;

            NOW THEREFORE, in consideration of the premises herein, it is agreed
between the Company and the Trustee as follows:


                                    ARTICLE I
                                THE CERTIFICATES

            Section 1.01. THE CERTIFICATES. The Applicable Certificates shall be
known  as  "8.048%  Continental  Airlines  Pass  Through  Certificates,   Series
2000-1A-1-S".  Each  Applicable  Certificate  represents a fractional  undivided
interest in the Applicable  Trust created  hereby.  The Applicable  Certificates
shall be the only instruments  evidencing a fractional undivided interest in the
Applicable Trust.

            The terms and conditions  applicable to the Applicable  Certificates
are as follows:

            (a) The aggregate  principal  amount of the Applicable  Certificates
      that shall be initially  deemed issued under the Agreement  shall be equal
      to  the  aggregate   principal  amount  of   "Outstanding"   pass  through
      certificates  representing  fractional  undivided interests in the Related
      Trust on the Transfer Date.  Subject to the preceding sentence and Section
      5.01 of this  Trust  Supplement  and except  for  Applicable  Certificates
      authenticated  and delivered  under Sections 3.03,  3.04, 3.05 and 3.06 of
      the Basic  Agreement,  no Applicable  Certificates  shall be authenticated
      under the Agreement.

            (b) The Regular  Distribution  Dates with  respect to any payment of
      Scheduled Payments means May 1 and November 1 of each year,  commencing on
      May 1, 2000,  until  payment of all of the  Scheduled  Payments to be made
      under the Equipment Notes has been made.


<PAGE>

            (c) The Special  Distribution  Dates with respect to the  Applicable
      Certificates  means any Business  Day on which a Special  Payment is to be
      distributed pursuant to the Agreement.

            (d) At the Escrow Agent's  request under the Escrow  Agreement,  the
      Trustee shall affix the  corresponding  Escrow Receipt to each  Applicable
      Certificate.  In any event,  any  transfer or  exchange of any  Applicable
      Certificate shall also effect a transfer or exchange of the related Escrow
      Receipt.  Prior to the Final  Withdrawal  Date, no transfer or exchange of
      any Applicable  Certificate  shall be permitted  unless the  corresponding
      Escrow  Receipt  is  attached  thereto  and  also  is  so  transferred  or
      exchanged.  By acceptance of any Applicable Certificate to which an Escrow
      Receipt  is  attached,  each  Holder  of  such an  Applicable  Certificate
      acknowledges  and  accepts  the  restrictions  on  transfer  of the Escrow
      Receipt set forth herein and in the Escrow Agreement.

            (e) (i) The Applicable Certificates shall be in the form attached as
      Exhibit  A to  the  Related  Pass  Through  Trust  Supplement,  with  such
      appropriate insertions,  omissions,  substitutions and other variations as
      are required or permitted by the Related Pass Through  Trust  Agreement or
      the Agreement, as the case may be, or as the Trustee may deem appropriate,
      to reflect  the fact that the  Applicable  Certificates  are being  issued
      under the  Agreement as opposed to under the Related  Pass  Through  Trust
      Agreement.  Any Person acquiring or accepting an Applicable Certificate or
      an interest therein will, by such acquisition or acceptance,  be deemed to
      represent and warrant to and for the benefit of each Owner Participant and
      the Company that either (i) the assets of an employee benefit plan subject
      to Title I of the Employee  Retirement  Income  Security  Act of 1974,  as
      amended  ("ERISA"),  or of a plan  subject to Section 4975 of the Internal
      Revenue  Code of 1986,  as  amended  (the  "Code"),  have not been used to
      purchase  Applicable  Certificates  or an  interest  therein  or (ii)  the
      purchase and holding of Applicable  Certificates or an interest therein is
      exempt from the prohibited transaction  restrictions of ERISA and the Code
      pursuant to one or more prohibited transaction statutory or administrative
      exemptions.

                  (ii)  The   Applicable   Certificates   shall  be   Book-Entry
      Certificates  and  shall be  subject  to the  conditions  set forth in the
      Letter of  Representations  between the Company  and the  Clearing  Agency
      attached as Exhibit B to the Related Pass Through Trust Supplement.

            (f)  The  "Participation   Agreements"  as  defined  in  this  Trust
      Supplement  are the "Note  Purchase  Agreements"  referred to in the Basic
      Agreement.

            (g) The  Applicable  Certificates  are subject to the  Intercreditor
      Agreement, the Deposit Agreement and the Escrow Agreement.

            (h) The Applicable  Certificates are entitled to the benefits of the
      Liquidity Facility.

            (i)   The Responsible Party is the Company.


<PAGE>

            (j) The date referred to in clause (i) of the definition of the term
      "PTC Event of Default" in the Basic Agreement is the Final Maturity Date.

            (k) The particular  "sections of the Note Purchase  Agreement",  for
      purposes of clause (3) of Section 7.07 of the Basic Agreement, are Section
      8.1 (with  respect to Owned  Aircraft)  and Section  9.1 (with  respect to
      Leased Aircraft) of each Participation Agreement.

            (l) The  Equipment  Notes to be acquired and held in the  Applicable
      Trust, and the related  Aircraft and Note Documents,  are described in the
      NPA.


                                   ARTICLE II
                                   DEFINITIONS

            Section 2.01.  DEFINITIONS.  For all purposes of the Basic Agreement
as supplemented by this Trust Supplement,  the following  capitalized terms have
the following meanings (any term used herein which is defined in both this Trust
Supplement and the Basic  Agreement shall have the meaning  assigned  thereto in
this Trust  Supplement for purposes of the Basic  Agreement as  supplemented  by
this Trust Supplement):

            AGREEMENT:  Means the Basic Agreement, as supplemented by this Trust
      Supplement.

            AIRCRAFT:  Means each of the New Aircraft or Substitute  Aircraft in
      respect of which a  Participation  Agreement is entered into in accordance
      with the NPA (or any  substitute  aircraft,  including  engines  therefor,
      owned by or leased  to the  Company  and  securing  one or more  Equipment
      Notes).

            AIRCRAFT PURCHASE AGREEMENT: Has the meaning specified in the NPA.

            APPLICABLE CERTIFICATE:  Means any of the "Applicable  Certificates"
      issued by the Related Trust and that are  "Outstanding" (as defined in the
      Related  Pass  Through  Trust  Agreement)  as of the  Transfer  Date  (the
      "TRANSFER  DATE  CERTIFICATES")  and any  Certificate  issued in  exchange
      therefor or replacement thereof pursuant to the Agreement.

            APPLICABLE  CERTIFICATEHOLDER:  Means the  Person  in whose  name an
      Applicable  Certificate  is registered on the Register for the  Applicable
      Certificates.

            APPLICABLE TRUST: Has the meaning specified in the recitals hereto.

            ASSIGNMENT  AND  ASSUMPTION  AGREEMENT:  Means  the  assignment  and
      assumption agreement substantially in the form of Exhibit C to the Related
      Pass Through Trust  Supplement  executed and delivered in accordance  with
      Section 7.01 of the Related Trust Supplement.


<PAGE>

            BASIC AGREEMENT: Has the meaning specified in the first paragraph of
      this Trust Supplement.

            BOEING: Means The Boeing Company.

            BUSINESS DAY: Means any day other than a Saturday, a Sunday or a day
      on which  commercial banks are required or authorized to close in Houston,
      Texas,  New  York,  New  York,  Salt  Lake  City,  Utah or, so long as any
      Applicable  Certificate  is  Outstanding,  the city and state in which the
      Trustee  or any Loan  Trustee  maintains  its  Corporate  Trust  Office or
      receives and disburses funds.

            CLASS C  CERTIFICATEHOLDER:  Has the  meaning  specified  in Section
      4.01(b)(iii) of this Trust Supplement.

            CLASS  C  FRACTIONAL  UNDIVIDED  INTEREST:  Means,  at any  date  of
      computation, the fractional interest in the relevant Trust held by a Class
      C  Certificateholder  multiplied  by the Pool  Balance  (as defined in the
      Intercreditor  Agreement) of such Trust and divided by the aggregate  Pool
      Balances  (as  defined in the  Intercreditor  Agreement)  of the Class C-1
      Trust and the Class C-2 Trust, all determined at such date.

            CLASS D  CERTIFICATEHOLDER:  Has the  meaning  specified  in Section
      4.01(b)(iv) of this Trust Supplement.

            COMPANY:  Has the meaning  specified in the first  paragraph of this
      Trust Supplement.

            CONTROLLING  PARTY: Has the meaning  specified in the  Intercreditor
      Agreement.

            DELIVERY NOTICE: Has the meaning specified in the NPA.

            DELIVERY PERIOD  TERMINATION  DATE: Has the meaning specified in the
      Related Pass Through Trust Supplement.

            DEPOSITS: Has the meaning specified in the Deposit Agreement.

            DEPOSIT AGREEMENT: Means the Deposit Agreement dated as of March 15,
      2000 relating to the  Applicable  Certificates  between the Depositary and
      the Escrow Agent,  as the same may be amended,  supplemented  or otherwise
      modified from time to time in accordance with its terms.

            DEPOSITARY:  Means Credit Suisse First Boston, a banking institution
      organized  under  the laws of  Switzerland,  acting  through  its New York
      branch.

            DISTRIBUTION  DATE: Means any Regular  Distribution  Date or Special
      Distribution Date as the context requires.


<PAGE>

            ESCROW  AGENT:  Means,  initially,  First  Security  Bank,  National
      Association,  and any  replacement  or  successor  therefor  appointed  in
      accordance with the Escrow Agreement.

            ESCROW AGREEMENT:  Means the Escrow and Paying Agent Agreement dated
      as of March 15, 2000 relating to the  Applicable  Certificates,  among the
      Escrow Agent,  the Escrow Paying Agent, the Related Trustee (and after the
      Transfer  Date,  the  Trustee)  and the  Underwriters,  as the same may be
      amended,   supplemented  or  otherwise  modified  from  time  to  time  in
      accordance with its terms.

            ESCROW PAYING  AGENT:  Means the Person acting as paying agent under
      the Escrow Agreement.

            ESCROW RECEIPT:  Means the receipt substantially in the form annexed
      to the Escrow Agreement  representing a fractional  undivided  interest in
      the funds held in escrow thereunder.

            FINAL MATURITY DATE: Means May 1, 2022.

            FINAL WITHDRAWAL: Has the meaning specified in the Escrow Agreement.

            FINAL  WITHDRAWAL  DATE:  Has the  meaning  specified  in the Escrow
      Agreement.

            INDENTURE: Means each of the separate trust indentures and mortgages
      relating to the  Aircraft,  each as  specified  or described in a Delivery
      Notice  delivered  pursuant  to  the  NPA  or  the  related  Participation
      Agreement,  in each  case as the  same  may be  amended,  supplemented  or
      otherwise modified from time to time in accordance with its terms.

            INTERCREDITOR AGREEMENT:  Means the Intercreditor Agreement dated as
      of March 15, 2000 among the Related  Trustee (and after the Transfer Date,
      the Trustee), the Related Other Trustees (and after the Transfer Date, the
      Other Trustees),  the Liquidity Provider, the liquidity providers relating
      to the  Certificates  issued under each of the Related  Other Pass Through
      Trust Agreements, and Wilmington Trust Company, as Subordination Agent and
      as trustee thereunder, as amended, supplemented or otherwise modified from
      time to time in accordance with its terms.

            INVESTORS:  Means  the  Underwriters  together  with all  subsequent
      beneficial owners of the Applicable Certificates.

            LEASE:  Means,  with  respect  to each  Leased  Aircraft,  the lease
      between an Owner Trustee,  as the lessor, and the Company,  as the lessee,
      referred  to in the  related  Indenture,  as such  lease  may be  amended,
      supplemented or otherwise modified in accordance with its terms.

            LEASED AIRCRAFT:  Has the meaning  specified in the third recital to
      this Trust Supplement.


<PAGE>

            LEASED  AIRCRAFT  INDENTURE:   Has  the  meaning  specified  in  the
      Intercreditor Agreement.

            LIQUIDITY FACILITY: Means, initially, the Revolving Credit Agreement
      dated  as of March  15,  2000  relating  to the  Applicable  Certificates,
      between  the  Liquidity   Provider  and  Wilmington   Trust  Company,   as
      Subordination  Agent, as agent and trustee for the Applicable  Trust, and,
      from  and  after  the  replacement  of  such  agreement  pursuant  to  the
      Intercreditor  Agreement,  the replacement liquidity facility therefor, in
      each case as amended, supplemented or otherwise modified from time to time
      in accordance with their respective terms.

            LIQUIDITY PROVIDER: Means, initially,  Credit Suisse First Boston, a
      banking  institution  organized  under  the  laws of  Switzerland,  acting
      through its New York branch,  and any replacements or successors  therefor
      appointed in accordance with the Intercreditor Agreement.

            NEW AIRCRAFT: Has the meaning specified in the NPA.

            NOTE  DOCUMENTS:  Means the  Equipment  Notes  with  respect  to the
      Applicable  Certificates and, with respect to any such Equipment Note, (i)
      the Indenture and the Participation  Agreement  relating to such Equipment
      Note,  and  (ii) in the case of any  Equipment  Note  related  to a Leased
      Aircraft, the Lease relating to such Leased Aircraft.

            NPA:  Means the Note Purchase  Agreement  dated as of March 15, 2000
      among the Related Trustee (and after the Transfer Date, the Trustee),  the
      Related Other Trustees (and after the Transfer Date, the Other  Trustees),
      the  Company,   the  Escrow  Agent,   the  Escrow  Paying  Agent  and  the
      Subordination Agent, as the same may be amended, supplemented or otherwise
      modified from time to time, in accordance with its terms.

            OTHER  AGREEMENTS:  Means (i) the Basic Agreement as supplemented by
      Trust  Supplement  No.  2000-1A-2-S  dated  the date  hereof  relating  to
      Continental  Airlines  Pass  Through  Trust  2000-1A-2-S,  (ii) the  Basic
      Agreement as supplemented by Trust Supplement No. 2000-1B-S dated the date
      hereof  relating to  Continental  Airlines Pass Through  Trust  2000-1B-S,
      (iii)  the  Basic  Agreement  as  supplemented  by  Trust  Supplement  No.
      2000-1C-1-S  dated the date hereof  relating to Continental  Airlines Pass
      Through Trust  2000-1C-1-S and (iv) the Basic Agreement as supplemented by
      Trust  Supplement  No.  2000-1C-2-S  dated  the date  hereof  relating  to
      Continental Airlines Pass Through Trust 2000-1C-2-S.

            OTHER TRUSTEES:  Means the trustees under the Other Agreements,  and
      any successor or other trustee appointed as provided therein.

            OTHER  TRUSTS:  Means the  Continental  Airlines  Pass Through Trust
      2000-1A-2-S,  the Continental  Airlines Pass Through Trust 2000-1B-S,  the
      Continental  Airlines Pass Through Trust  2000-1C-1-S  and the Continental
      Airlines Pass Through Trust 2000-1C-2-S, created by the Other Agreements.


<PAGE>

            OUTSTANDING:  When used with  respect  to  Applicable  Certificates,
      means, as of the date of  determination,  all Transfer Date  Certificates,
      and  all  other  Applicable  Certificates  theretofore  authenticated  and
      delivered under this Agreement, in each case except:

                  (i)  Applicable  Certificates   theretofore  canceled  by  the
            Registrar  or  delivered  to  the  Trustee  or  the   Registrar  for
            cancellation;

                  (ii)  Applicable  Certificates  for  which  money  in the full
            amount required to make the final  distribution with respect to such
            Applicable  Certificates  pursuant  to  Section  11.01 of the  Basic
            Agreement has been  theretofore  deposited with the Trustee in trust
            for the Applicable Certificateholders as provided in Section 4.01 of
            the  Basic  Agreement  pending  distribution  of such  money to such
            Applicable  Certificateholders  pursuant  to  payment  of such final
            distribution; and

                  (iii)  Applicable  Certificates  in exchange for or in lieu of
            which other  Applicable  Certificates  have been  authenticated  and
            delivered pursuant to this Agreement.

            OWNED  AIRCRAFT:  Has the meaning  specified in the third recital to
      this Trust Supplement.

            OWNED  AIRCRAFT   INDENTURE:   Has  the  meaning  specified  in  the
      Intercreditor Agreement.

            OWNER PARTICIPANT:  With respect to any Equipment Note relating to a
      Leased  Aircraft,  means the "Owner  Participant"  as  referred  to in the
      Indenture  pursuant  to  which  such  Equipment  Note  is  issued  and any
      permitted  successor  or  assign  of such  Owner  Participant;  and  OWNER
      PARTICIPANTS  at  any  time  of  determination  means  all  of  the  Owner
      Participants thus referred to in the Indentures.

            OWNER  TRUSTEE:  With respect to any  Equipment  Note  relating to a
      Leased  Aircraft,  means  the  "Owner  Trustee",  as  referred  to in  the
      Indenture  pursuant  to which such  Equipment  Note is issued,  not in its
      individual capacity but solely as trustee; and OWNER TRUSTEES means all of
      the Owner Trustees party to any of the Indentures.

            OWNER  TRUSTEE'S  PURCHASE  AGREEMENT:  Means,  with  respect to any
      Leased Aircraft,  the agreement between the Company and the relevant Owner
      Trustee  pursuant to which,  INTER ALIA, the Company  assigns to the Owner
      Trustee  certain  rights  of  the  Company  under  the  aircraft  purchase
      agreement with respect to such Leased Aircraft.

            PARTICIPATION AGREEMENT:  Means each Participation Agreement entered
      into by the  Related  Trustee  pursuant  to the  NPA,  as the  same may be
      amended, supplemented or otherwise modified in accordance with its terms.

            POOL BALANCE: Means, as of any date, (i) the original aggregate face
      amount of the  "Applicable  Certificates"  as defined in the Related  Pass


<PAGE>

      Through Trust  Agreement,  less (ii) the aggregate  amount of all payments
      made in respect of such  Certificates,  the  Applicable  Certificates  (as
      defined in the Related  Pass Through  Trust  Agreement)  or the  Deposits,
      other than  payments  made in respect of  interest  or premium  thereon or
      reimbursement of any costs or expenses  incurred in connection  therewith.
      The Pool  Balance  as of any  Distribution  Date shall be  computed  after
      giving effect to any special distribution with respect to unused Deposits,
      payment of  principal  of the  Equipment  Notes or payment with respect to
      other Trust Property and the distribution thereof to be made on that date.

            POOL  FACTOR:  Means,  as of any  Distribution  Date,  the  quotient
      (rounded to the seventh  decimal place)  computed by dividing (i) the Pool
      Balance by (ii) the  original  aggregate  face  amount of the  "Applicable
      Certificates" as defined in the Related Pass Through Trust Agreement.  The
      Pool Factor as of any  Distribution  Date shall be computed  after  giving
      effect to any  special  distribution  with  respect  to  unused  Deposits,
      payment of principal of the  Equipment  Notes or payments  with respect to
      other Trust Property and the distribution thereof to be made on that date.

            PROSPECTUS  SUPPLEMENT:  Means the Prospectus Supplement dated March
      1, 2000 relating to the offering of the Certificates.

            RELATED  OTHER  PASS  THROUGH  TRUST  AGREEMENTS:  Means the  "Other
      Agreements" as defined in the Related Pass Through Trust Agreement.

            RELATED OTHER TRUSTEES: Means the "Other Trustees" as defined in the
      Related Pass Through Trust Agreement.

            RELATED  OTHER  TRUSTS:  Means the "Other  Trusts" as defined in the
      Related Pass Through Trust Agreement.

            RELATED PASS THROUGH TRUST  AGREEMENT:  Means the Basic Agreement as
      supplemented by the Trust Supplement No. 2000-1A-1-O dated the date hereof
      (the "RELATED PASS THROUGH TRUST SUPPLEMENT"), relating to the Continental
      Airlines  Pass Through Trust  2000-1A-1-O  and entered into by the Company
      and the Related Trustee,  as amended,  supplemented or otherwise  modified
      from time to time in accordance with its terms.

            RELATED TRUST: Means the Continental Pass Through Trust 2000-1A-1-O,
      formed under the Related Pass Through Trust Agreement.

            RELATED  TRUSTEE:  Means the trustee  under the Related Pass Through
      Trust Agreement.

            SPECIAL PAYMENT:  Means any payment (other than a Scheduled Payment)
      in respect of, or any proceeds of, any  Equipment  Note,  Trust  Indenture
      Estate (as defined in each Leased  Aircraft  Indenture) or Collateral  (as
      defined in each Owned Aircraft Indenture).


<PAGE>

            SUBSTITUTE AIRCRAFT: Has the meaning specified in the NPA.

            TRANSFER  DATE:  Means the moment of  execution  and delivery of the
      Assignment and Assumption Agreement by each of the parties thereto.

            TRANSFER  DATE  CERTIFICATES:  Has  the  meaning  specified  in  the
      definition of "Applicable Certificates".

            TRIGGERING  EVENT:  Has the  meaning  assigned  to such  term in the
      Intercreditor Agreement.

            TRUST PROPERTY:  Means (i) subject to the  Intercreditor  Agreement,
      the  Equipment  Notes held as the property of the  Applicable  Trust,  all
      monies at any time  paid  thereon  and all  monies  due and to become  due
      thereunder,  (ii) funds  from time to time  deposited  in the  Certificate
      Account and the Special Payments Account and, subject to the Intercreditor
      Agreement,  any proceeds from the sale by the Trustee  pursuant to Article
      VI of the Basic  Agreement of any  Equipment  Note and (iii) all rights of
      the Applicable Trust and the Trustee,  on behalf of the Applicable  Trust,
      under the Intercreditor  Agreement,  the Escrow Agreement, the NPA and the
      Liquidity Facility,  including,  without limitation, all rights to receive
      certain payments thereunder,  and all monies paid to the Trustee on behalf
      of the  Applicable  Trust pursuant to the  Intercreditor  Agreement or the
      Liquidity  Facility,  PROVIDED that rights with respect to the Deposits or
      under the Escrow Agreement will not constitute Trust Property.

            TRUST  SUPPLEMENT:  Has the meaning specified in the first paragraph
      of this trust supplement.

            UNDERWRITERS:   Means,  collectively,  Credit  Suisse  First  Boston
      Corporation,  Morgan Stanley & Co.  Incorporated,  Chase  Securities Inc.,
      Merrill  Lynch,  Pierce,  Fenner & Smith  Incorporated  and Salomon  Smith
      Barney Inc.

            UNDERWRITING AGREEMENT: Means the Underwriting Agreement dated March
      1, 2000 among the  Underwriters,  the Company and the  Depositary,  as the
      same may be amended,  supplemented or otherwise modified from time to time
      in accordance with its terms.


                                   ARTICLE III
                        STATEMENTS TO CERTIFICATEHOLDERS

            Section 3.01.  STATEMENTS TO APPLICABLE  CERTIFICATEHOLDERS.  (a) On
each  Distribution  Date,  the Trustee will include  with each  distribution  to
Applicable  Certificateholders of a Scheduled Payment or Special Payment, as the
case may be, a statement  setting forth the  information  provided below (in the
case of a Special  Payment,  reflecting in part the information  provided by the
Escrow Paying Agent under the Escrow Agreement).  Such statement shall set forth


<PAGE>

(per $1,000 face amount  Applicable  Certificate as to (ii), (iii), (iv) and (v)
below) the following information:

            (i) the aggregate amount of funds  distributed on such  Distribution
      Date under the Agreement and under the Escrow  Agreement,  indicating  the
      amount allocable to each source;

            (ii) the amount of such distribution  under the Agreement  allocable
      to principal and the amount allocable to premium, if any;

            (iii) the amount of such distribution under the Agreement  allocable
      to interest;

            (iv) the  amount of such  distribution  under the  Escrow  Agreement
      allocable to interest;

            (v) the  amount  of such  distribution  under the  Escrow  Agreement
      allocable to unused Deposits, if any; and

            (vi) the Pool Balance and the Pool Factor.

            With respect to the Applicable  Certificates  registered in the name
of a Clearing Agency,  on the Record Date prior to each  Distribution  Date, the
Trustee will request from such  Clearing  Agency a securities  position  listing
setting forth the names of all Clearing  Agency  Participants  reflected on such
Clearing Agency's books as holding  interests in the Applicable  Certificates on
such Record Date. On each Distribution  Date, the Trustee will mail to each such
Clearing  Agency  Participant  the  statement  described  above  and  will  make
available additional copies as requested by such Clearing Agency Participant for
forwarding to holders of interests in the Applicable Certificates.

            (b)  Within  a  reasonable  period  of  time  after  the end of each
calendar  year but not later than the latest date  permitted by law, the Trustee
shall  furnish to each Person who at any time during such  calendar  year was an
Applicable  Certificateholder  of record a statement  containing  the sum of the
amounts determined pursuant to clauses (a)(i),  (a)(ii),  (a)(iii),  (a)(iv) and
(a)(v)  above  for such  calendar  year or,  in the  event  such  Person  was an
Applicable  Certificateholder  of record during a portion of such calendar year,
for such portion of such year, and such other items as are readily  available to
the Trustee and which an Applicable  Certificateholder  shall reasonably request
as necessary for the purpose of such Applicable Certificateholder's  preparation
of its federal income tax returns.  Such statement and such other items shall be
prepared on the basis of  information  supplied  to the Trustee by the  Clearing
Agency  Participants  and shall be  delivered  by the  Trustee to such  Clearing
Agency  Participants  to be available for  forwarding  by such  Clearing  Agency
Participants  to the holders of interests in the Applicable  Certificates in the
manner described in Section 3.01(a) of this Trust Supplement.

            (c) If the  aggregate  principal  payments  scheduled  for a Regular
Distribution Date prior to the Delivery Period  Termination Date differ from the
amount  thereof set forth for the  Applicable  Certificates  on page S-34 of the
Prospectus  Supplement,  by no later  than the  15th day  prior to such  Regular


<PAGE>

Distribution  Date, the Trustee (if the Related Trustee has not already done so)
shall mail written notice of the actual amount of such scheduled payments to the
Applicable  Certificateholders  of record as of a date within 15  Business  Days
prior to the date of mailing.

            (d) Promptly  following (i) the Delivery Period Termination Date, if
there has been any change in the  information  set forth in clauses (x), (y) and
(z) below  from that set forth in page S-34 of the  Prospectus  Supplement,  and
(ii) the date of any early  redemption  or  purchase  of, or any  default in the
payment of principal or interest in respect of, any of the Equipment  Notes held
in the Applicable  Trust, or any Final  Withdrawal,  the Trustee (if the Related
Trustee has not already done so) shall furnish to Applicable  Certificateholders
of record on such date a statement  setting forth (x) the expected Pool Balances
for each  subsequent  Regular  Distribution  Date following the Delivery  Period
Termination  Date,  (y) the related Pool  Factors for such Regular  Distribution
Dates and (z) the  expected  principal  distribution  schedule of the  Equipment
Notes, in the aggregate, held as Trust Property at the date of such notice. With
respect  to the  Applicable  Certificates  registered  in the name of a Clearing
Agency,  on the  Transfer  Date,  the Trustee  (if the  Related  Trustee has not
already done so) will request from such  Clearing  Agency a securities  position
listing setting forth the names of all Clearing Agency Participants reflected on
such  Clearing   Agency's  books  as  holding   interests  in  the   "Applicable
Certificates"  (as defined in the Related Pass Through  Trust  Agreement) on the
Delivery  Period  Termination  Date. The Trustee (if the Related Trustee has not
already  done  so)  will  mail to each  such  Clearing  Agency  Participant  the
statement described above and will make available additional copies as requested
by such Clearing  Agency  Participant  for forwarding to holders of interests in
the Applicable Certificates.

            (e) This Section 3.01  supersedes  and replaces  Section 4.03 of the
Basic Agreement, with respect to the Applicable Trust.


                                   ARTICLE IV
                                     DEFAULT

            Section 4.01. PURCHASE RIGHTS OF CERTIFICATEHOLDERS. (a) At any time
after the occurrence and during the  continuation of a Triggering  Event, if the
Class   A-2   Trustee   is  then  the   Controlling   Party,   each   Applicable
Certificateholder  shall have the right to purchase,  for the purchase price set
forth in the Class A-2 Trust Agreement, all, but not less than all, of the Class
A-2 Certificates upon ten days' written notice to the Class A-2 Trustee and each
other  Applicable  Certificateholder,  PROVIDED  that (i) if prior to the end of
such  ten-day  period  any  other  Applicable  Certificateholder  notifies  such
purchasing   Applicable    Certificateholder    that   such   other   Applicable
Certificateholder  wants  to  participate  in such  purchase,  then  such  other
Applicable   Certificateholder   may  join   with  the   purchasing   Applicable
Certificateholder  to  purchase  all,  but not less than  all,  of the Class A-2
Certificates  pro  rata  based  on  the  Fractional  Undivided  Interest  in the
Applicable  Trust  held by each such  Applicable  Certificateholder  and (ii) if
prior to the end of such ten-day period any other  Applicable  Certificateholder
fails to  notify  the  purchasing  Applicable  Certificateholder  of such  other
Applicable  Certificateholder's  desire to participate in such a purchase,  then


<PAGE>

such other  Applicable  Certificateholder  shall lose its right to purchase  the
Class A-2 Certificates pursuant to this Section 4.01(a).

            (b) By acceptance of its  Applicable  Certificate,  each  Applicable
Certificateholder  agrees that at any time after the  occurrence  and during the
continuation of a Triggering Event,

            (i) if the  Trustee is then the  Controlling  Party,  each Class A-2
      Certificateholder  shall have the right to purchase all, but not less than
      all, of the Applicable  Certificates  upon ten days' written notice to the
      Trustee and each other Class A-2  Certificateholder,  PROVIDED that (A) if
      prior  to  the  end  of  such   ten-day   period   any  other   Class  A-2
      Certificateholder  notifies such  purchasing  Class A-2  Certificateholder
      that such other Class A-2  Certificateholder  wants to participate in such
      purchase,  then such other Class A-2  Certificateholder  may join with the
      purchasing Class A-2  Certificateholder to purchase all, but not less than
      all,  of the  Applicable  Certificates  pro rata  based on the  Fractional
      Undivided  Interest  in the Class A-2  Trust  held by each such  Class A-2
      Certificateholder  and (B) if prior to the end of such ten-day  period any
      other Class A-2 Certificateholder fails to notify the purchasing Class A-2
      Certificateholder  of such other Class A-2  Certificateholder's  desire to
      participate   in   such  a   purchase,   then   such   other   Class   A-2
      Certificateholder   shall  lose  its  right  to  purchase  the  Applicable
      Certificates pursuant to this Section 4.01(b);

            (ii) each  Class B  Certificateholder  shall  have the right  (which
      shall not expire upon any purchase of the Applicable Certificates pursuant
      to clause (a) or (b)(i)  above) to purchase all, but not less than all, of
      the Applicable  Certificates and the Class A-2 Certificates upon ten days'
      written notice to the Trustee,  the Class A-2 Trustee and each other Class
      B Certificateholder, PROVIDED that (A) if prior to the end of such ten-day
      period any other Class B Certificateholder  notifies such purchasing Class
      B  Certificateholder  that such other Class B  Certificateholder  wants to
      participate  in such purchase,  then such other Class B  Certificateholder
      may join with the purchasing  Class B  Certificateholder  to purchase all,
      but not less than all, of the  Applicable  Certificates  and the Class A-2
      Certificates  pro rata based on the Fractional  Undivided  Interest in the
      Class B Trust held by each such Class B Certificateholder and (B) if prior
      to the end of such  ten-day  period  any other  Class B  Certificateholder
      fails to notify the  purchasing  Class B  Certificateholder  of such other
      Class B Certificateholder's desire to participate in such a purchase, then
      such other Class B Certificateholder  shall lose its right to purchase the
      Applicable  Certificates and the Class A-2  Certificates  pursuant to this
      Section 4.01(b);

            (iii)   each   Class   C-1    Certificateholder    and   Class   C-2
      Certificateholder  (each a "CLASS  C  CERTIFICATEHOLDER")  shall  have the
      right  (which  shall  not  expire  upon  any  purchase  of the  Applicable
      Certificates  pursuant to clause (a), (b)(i) or (b)(ii) above) to purchase
      all, but not less than all, of the Applicable Certificates,  the Class A-2
      Certificates and the Class B Certificates upon ten days' written notice to
      the Trustee,  the Class A-2  Trustee,  the Class B Trustee and (x) if such
      purchasing  Class C  Certificateholder  is a Class C-1  Certificateholder,
      each  other  Class C-1  Certificateholder  and either (I) if the Class C-2


<PAGE>

      Trustee  shall  have made a current  list of Class C-2  Certificateholders
      available  to such  purchasing  Class C  Certificateholder  upon a request
      therefor,  each Class C-2 Certificateholder,  or (II) if clause (I) is not
      applicable,  the  Class C-2  Trustee,  or (y) if such  purchasing  Class C
      Certificateholder is a Class C-2  Certificateholder,  each other Class C-2
      Certificateholder  and either (I) if the Class C-1 Trustee shall have made
      a  current  list  of  Class  C-1  Certificateholders   available  to  such
      purchasing Class C Certificateholder  upon a request therefor,  each Class
      C-1 Certificateholder,  or (II) if clause (I) is not applicable, the Class
      C-1 Trustee,  PROVIDED that (A) if prior to the end of such ten-day period
      any other  Class C  Certificateholder  notifies  such  purchasing  Class C
      Certificateholder  that  such  other  Class C  Certificateholder  wants to
      participate  in such purchase,  then such other Class C  Certificateholder
      may join with the purchasing  Class C  Certificateholder  to purchase all,
      but not less  than  all,  of the  Applicable  Certificates,  the Class A-2
      Certificates  and the Class B  Certificates  pro rata based on the Class C
      Fractional  Undivided Interest held by each such Class C Certificateholder
      and (B) if prior  to the end of such  ten-day  period  any  other  Class C
      Certificateholder fails to notify the purchasing Class C Certificateholder
      of such other Class C Certificateholder's  desire to participate in such a
      purchase,  then such other Class C Certificateholder  shall lose its right
      to purchase the Applicable  Certificates,  the Class A-2  Certificates and
      the Class B Certificates pursuant to this Section 4.01(b); and

            (iv)   each   holder   of  a  Class  D   Certificate   (a  "CLASS  D
      CERTIFICATEHOLDER")  shall have the right (which shall not expire upon any
      purchase of the Applicable  Certificates  pursuant to clause (a),  (b)(i),
      (b)(ii) or (b)(iii)  above) to purchase all, but not less than all, of the
      Applicable  Certificates,   the  Class  A-2  Certificates,   the  Class  B
      Certificates,  the Class C-1  Certificates  and the Class C-2 Certificates
      upon ten days' written notice to the Trustee,  the Class A-2 Trustee,  the
      Class B Trustee,  the Class C-1  Trustee,  the Class C-2  Trustee and each
      other Class D Certificateholder,  PROVIDED that (A) if prior to the end of
      such  ten-day  period any other Class D  Certificateholder  notifies  such
      purchasing   Class  D   Certificateholder   that   such   other   Class  D
      Certificateholder  wants to participate in such purchase,  then such other
      Class  D   Certificateholder   may  join  with  the  purchasing   Class  D
      Certificateholder  to  purchase  all,  but  not  less  than  all,  of  the
      Applicable  Certificates,   the  Class  A-2  Certificates,   the  Class  B
      Certificates,  the Class C-1  Certificates  and the Class C-2 Certificates
      pro rata based on the Fractional  Undivided  Interest in the Class D Trust
      held by each such Class D Certificateholder and (B) if prior to the end of
      such ten-day  period any other Class D  Certificateholder  fails to notify
      the  purchasing   Class  D   Certificateholder   of  such  other  Class  D
      Certificateholder's  desire to participate  in such a purchase,  then such
      other  Class D  Certificateholder  shall  lose its right to  purchase  the
      Applicable  Certificates,   the  Class  A-2  Certificates,   the  Class  B
      Certificates,  the Class C-1  Certificates  and the Class C-2 Certificates
      pursuant to this Section 4.01(b).

            The purchase price with respect to the Applicable Certificates shall
be equal to the Pool  Balance  of the  Applicable  Certificates,  together  with
accrued  and  unpaid  interest  thereon  to the date of such  purchase,  without
premium,  but including any other amounts then due and payable to the Applicable
Certificateholders  under the Agreement, the Intercreditor Agreement, the Escrow


<PAGE>

Agreement  or  any  Note  Document  or  on  or  in  respect  of  the  Applicable
Certificates;   PROVIDED,   HOWEVER,   that  no  such   purchase  of  Applicable
Certificates  shall be effective  unless the  purchaser(s)  shall certify to the
Trustee that  contemporaneously  with such purchase,  such purchaser(s) is (are)
purchasing, pursuant to the terms of the Agreement and the Other Agreements, (A)
in the case of any purchase of the  Applicable  Certificates  pursuant to clause
(b)(i) above, all of the Applicable Certificates, or (B) in all other cases, the
Applicable Certificates,  the Class A-2 Certificates,  the Class B Certificates,
the Class C-1 Certificates and the Class C-2 Certificates that are senior to the
securities held by such purchaser(s).  Each payment of the purchase price of the
Applicable  Certificates  referred to in the first sentence hereof shall be made
to an account or accounts designated by the Trustee and each such purchase shall
be   subject   to  the  terms  of  this   Section   4.01(b).   Each   Applicable
Certificateholder  agrees by its acceptance of its Applicable  Certificate  that
(at any time after the  occurrence and during the  continuation  of a Triggering
Event) it will, upon payment from such Class A-2  Certificateholder(s),  Class B
Certificateholder(s),     Class    C-1    Certificateholder(s),     Class    C-2
Certificateholder(s) or Class D Certificateholder(s), as the case may be, of the
purchase price set forth in the first sentence of this paragraph,  (i) forthwith
sell, assign, transfer and convey to the purchaser(s) thereof (without recourse,
representation  or  warranty  of any kind  except for its own acts),  all of the
right, title,  interest and obligation of such Applicable  Certificateholder  in
the Agreement,  the Escrow Agreement,  the Deposit Agreement,  the Intercreditor
Agreement,  the  Liquidity  Facility,  the  Note  Documents,  the  NPA  and  all
Applicable   Certificates   and  Escrow   Receipts   held  by  such   Applicable
Certificateholder  (excluding  all right,  title and  interest  under any of the
foregoing  to the extent  such right,  title or  interest is with  respect to an
obligation  not then due and payable as respects any action or inaction or state
of affairs  occurring prior to such sale) (and the purchaser shall assume all of
such Applicable Certificateholder's  obligations under the Agreement, the Escrow
Agreement,  the Deposit Agreement,  the Intercreditor  Agreement,  the Liquidity
Facility,  the NPA, the Note Documents and all such Applicable  Certificates and
Escrow Receipts),  (ii) if such purchase occurs after a record date specified in
Section  2.03 of the Escrow  Agreement  relating to the  distribution  of unused
Deposits  and/or accrued and unpaid  interest on Deposits and prior to or on the
related distribution date thereunder, forthwith turn over to the purchaser(s) of
its Applicable  Certificate  all amounts,  if any,  received by it on account of
such  distribution,  and  (iii) if such  purchase  occurs  after a  Record  Date
relating to any distribution and prior to or on the related  Distribution  Date,
forthwith  turn  over to the  purchaser(s)  of its  Applicable  Certificate  all
amounts, if any, received by it on account of such distribution.  The Applicable
Certificates  will be deemed to be purchased on the date payment of the purchase
price is made  notwithstanding the failure of the Applicable  Certificateholders
to deliver any Applicable  Certificates and, upon such a purchase,  (I) the only
rights of the  Applicable  Certificateholders  will be to deliver the Applicable
Certificates  to the  purchaser(s)  and  receive  the  purchase  price  for such
Applicable  Certificates  and (II) if the  purchaser(s)  shall so request,  such
Applicable Certificateholder will comply with all the provisions of Section 3.04
of the Basic Agreement to enable new Applicable Certificates to be issued to the
purchaser in such denominations as it shall request. All charges and expenses in
connection  with the issuance of any such new Applicable  Certificates  shall be
borne by the purchaser thereof.

            As used in this Section 4.01 and elsewhere in this Trust Supplement,
the terms "Class A-2  Certificate",  "Class A-2  Certificateholder",  "Class A-2


<PAGE>

Trust", "Class A-2 Trust Agreement", "Class A-2 Trustee", "Class B Certificate",
"Class B  Certificateholder",  "Class B Trust",  "Class B  Trustee",  "Class C-1
Certificate",  "Class  C-1  Certificateholder",  "Class C-1  Trust",  "Class C-1
Trustee",  "Class C-2 Certificate",  "Class C-2  Certificateholder",  "Class C-2
Trust",  "Class C-2 Trustee",  "Class D Certificate" and "Class D Trust",  shall
have  the  respective  meanings  assigned  to such  terms  in the  Intercreditor
Agreement.

            (c) This Section 4.01 supersedes and replaces Section 6.01(b) of the
Basic Agreement, with respect to the Applicable Trust.

            Section  4.02.  AMENDMENT  OF SECTION  6.05 OF THE BASIC  Agreement.
Section  6.05 of the Basic  Agreement  shall be  amended,  with  respect  to the
Applicable  Trust, by deleting the phrase "and thereby annul any Direction given
by such  Certificateholders  or the Trustee to such Loan  Trustee  with  respect
thereto," set forth in the first sentence thereof.


                                    ARTICLE V
                                   THE TRUSTEE

            Section  5.01.  ACQUISITION  OF TRUST  PROPERTY.  (a) The Trustee is
hereby irrevocably authorized and directed to execute and deliver the Assignment
and  Assumption  Agreement on the date  specified in Section 7.01 of the Related
Pass  Through  Trust  Supplement,  subject  only  to  the  satisfaction  of  the
conditions set forth in said Section 7.01. This Agreement  (except only for this
sentence and the immediately preceding sentence hereof, which are effective upon
execution  and delivery  hereof) shall become  effective  upon the execution and
delivery  of the  Assignment  and  Assumption  Agreement  by the Trustee and the
Related Trustee,  automatically  and without any further  signature or action on
the part of the Company and the  Trustee,  and shall  thereupon  constitute  the
legal, valid and binding  obligation of the parties hereto  enforceable  against
each of the parties hereto in accordance with its terms. Upon such execution and
delivery of the Assignment and Assumption Agreement,  the Related Trust shall be
terminated, the Applicable Certificateholders shall receive beneficial interests
in the  Applicable  Trust in exchange for their  interests in the Related  Trust
equal to their  respective  beneficial  interests  in the Related  Trust and the
"Outstanding"  (as defined in the Related Pass  Through  Trust  Agreement)  pass
through certificates  representing fractional undivided interests in the Related
Trust  shall be deemed  for all  purposes  of this  Agreement,  without  further
signature  or  action  of any  party or  Certificateholder,  to be  Certificates
representing  the same  Fractional  Undivided  Interests  in the Trust and Trust
Property.  By  acceptance  of  its  Applicable   Certificate,   each  Applicable
Certificateholder  consents  to  and  ratifies  such  assignment,  transfer  and
delivery  of the trust  property of the  Related  Trust to the Trustee  upon the
execution  and  delivery  of  the  Assignment  and  Assumption  Agreement.   The
provisions  of this Section  5.01(a)  supersede  and replace the  provisions  of
Section 2.02 of the Basic  Agreement with respect to the Applicable  Trust,  and
all  provisions of the Basic  Agreement  relating to Postponed  Notes or Section
2.02 of the Basic Agreement shall not apply to the Applicable Trust.

            (b) The Trustee,  upon the execution and delivery of the  Assignment
and Assumption  Agreement,  acknowledges its acceptance of all right,  title and
interest in and to the Trust  Property and declares  that the Trustee  holds and


<PAGE>

will hold such right, title and interest for the benefit of all then present and
future  Applicable  Certificateholders,  upon the trusts herein and in the Basic
Agreement set forth. By the acceptance of each Applicable  Certificate issued to
it under the Related Pass Through  Trust  Agreement and deemed issued under this
Agreement,  each  Holder of any such  Applicable  Certificate  as grantor of the
Applicable Trust thereby joins in the creation and declaration of the Applicable
Trust.  The  provisions  of this  Section  5.01(b)  supersede  and  replace  the
provisions  of  Section  2.03  of  the  Basic  Agreement,  with  respect  to the
Applicable Trust.

            Section 5.02. [Intentionally Omitted]

            Section 5.03. THE TRUSTEE. (a) Subject to Section 5.04 of this Trust
Supplement  and Section 7.15 of the Basic  Agreement,  the Trustee  shall not be
responsible  in any  manner  whatsoever  for or in respect  of the  validity  or
sufficiency  of this Trust  Supplement,  the Deposit  Agreement,  the NPA or the
Escrow  Agreement or the due  execution  hereof or thereof by the Company or the
other  parties  thereto  (other than the  Trustee),  or for or in respect of the
recitals and statements  contained herein or therein,  all of which recitals and
statements  are made  solely by the  Company,  except  that the  Trustee  hereby
represents and warrants that each of this Trust Supplement, the Basic Agreement,
each Applicable Certificate, the Intercreditor Agreement, the NPA and the Escrow
Agreement  has been  executed  and  delivered by one of its officers who is duly
authorized to execute and deliver such document on its behalf.

            (b)  Except as herein  otherwise  provided  and  except  during  the
continuation  of an Event of Default in respect of the Applicable  Trust created
hereby,  no duties,  responsibilities  or liabilities  are assumed,  or shall be
construed to be assumed, by the Trustee by reason of this Trust Supplement other
than as set forth in the  Agreement,  and this Trust  Supplement is executed and
accepted on behalf of the Trustee,  subject to all the terms and  conditions set
forth in the  Agreement,  as fully to all intents as if the same were herein set
forth at length.

            Section 5.04.  REPRESENTATIONS  AND  WARRANTIES OF THE TRUSTEE.  The
Trustee hereby represents and warrants, on the Transfer Date, that:

            (a) the Trustee has full power, authority and legal right to receive
      the Trust Property assigned by the Related Trustee, assume the obligations
      under, and perform,  the Assignment and Assumption  Agreement,  this Trust
      Supplement, the Intercreditor Agreement, the Escrow Agreement, the NPA and
      the Note  Documents  to which it is a party and has  taken  all  necessary
      action to authorize such receipt, assumption and performance by it of this
      Trust Supplement,  the Intercreditor  Agreement, the Escrow Agreement, the
      NPA and the Note Documents to which it is a party;

            (b) the  receipt  of the Trust  Property  under the  Assignment  and
      Assumption  Agreement and the performance by the Trustee of the Assignment
      and  Assumption  Agreement,  this  Trust  Supplement,   the  Intercreditor
      Agreement,  the Escrow Agreement,  the NPA and the Note Documents to which
      it is a party (i) will not  violate  any  provision  of any United  States
      federal  law or the law of the  state  of the  United  States  where it is
      located  governing  the  banking  and trust  powers of the  Trustee or any
      order, writ, judgment, or decree of any court,  arbitrator or governmental


<PAGE>

      authority  applicable  to the Trustee or any of its assets,  (ii) will not
      violate any  provision  of the articles of  association  or by-laws of the
      Trustee, and (iii) will not violate any provision of, or constitute,  with
      or  without  notice or lapse of time,  a default  under,  or result in the
      creation or imposition of any lien on any properties included in the Trust
      Property pursuant to the provisions of any mortgage, indenture,  contract,
      agreement or other  undertaking to which it is a party,  which  violation,
      default or lien could  reasonably be expected to have an adverse effect on
      the Trustee's  performance  or ability to perform its duties  hereunder or
      thereunder or on the transactions contemplated herein or therein;

            (c) the  receipt  of the Trust  Property  under the  Assignment  and
      Assumption  Agreement and the performance by the Trustee of the Assignment
      and  Assumption  Agreement,  this  Trust  Supplement,   the  Intercreditor
      Agreement,  the Escrow Agreement,  the NPA and the Note Documents to which
      it is a party will not require the authorization, consent, or approval of,
      the giving of notice to, the filing or registration with, or the taking of
      any other  action in respect of, any  governmental  authority or agency of
      the United  States or the state of the United  States  where it is located
      regulating the banking and corporate trust activities of the Trustee; and

            (d) the Assignment  and Assumption  Agreement has been duly executed
      and delivered by the Trustee and this Trust Supplement,  the Intercreditor
      Agreement,  the Escrow Agreement,  the NPA and the Note Documents to which
      it is a party have been,  or will be, as  applicable,  duly  executed  and
      delivered  by  the  Trustee  and  constitute,   or  will  constitute,   as
      applicable,  the  legal,  valid and  binding  agreements  of the  Trustee,
      enforceable   against  it  in  accordance  with  their  respective  terms;
      PROVIDED,  HOWEVER,  that  enforceability may be limited by (i) applicable
      bankruptcy,  insolvency,   reorganization,   moratorium  or  similar  laws
      affecting the rights of creditors generally and (ii) general principles of
      equity.

            Section 5.05. TRUSTEE LIENS. The Trustee in its individual  capacity
agrees,  in addition to the  agreements  contained  in Section 7.17 of the Basic
Agreement,  that it will at its own cost and expense promptly take any action as
may be necessary to duly discharge and satisfy in full any Trustee's Liens on or
with respect to the Trust Property which is  attributable  to the Trustee in its
individual  capacity and which is unrelated to the transactions  contemplated by
the Intercreditor Agreement or the NPA.


                                   ARTICLE VI
                  ADDITIONAL AMENDMENT; SUPPLEMENTAL AGREEMENTS

            Section  6.01.  AMENDMENT  OF SECTION  5.02 OF THE BASIC  Agreement.
Section  5.02 of the Basic  Agreement  shall be  amended,  with  respect  to the
Applicable Trust, by (i) replacing the phrase "of the Note Documents and of this
Agreement"  set forth in  paragraph  (b)  thereof  with the  phrase "of the Note
Documents,  of the NPA and of this  Agreement" and (ii) replacing the phrase "of
this Agreement and any Note Document" set forth in the last paragraph of Section
5.02 with the phrase "of this Agreement, the NPA and any Note Document".


<PAGE>

            Section 6.02.  SUPPLEMENTAL AGREEMENTS WITHOUT CONSENT OF APPLICABLE
CERTIFICATEHOLDERS.  Without  limitation of Section 9.01 of the Basic Agreement,
under the terms of, and subject to the limitations contained in, Section 9.01 of
the Basic  Agreement,  the Company may (but will not be  required  to),  and the
Trustee (subject to Section 9.03 of the Basic Agreement) shall, at the Company's
request,  at any  time  and  from  time to  time,  (i)  enter  into  one or more
agreements  supplemental  to the  Escrow  Agreement,  the  NPA  or  the  Deposit
Agreement,  for any of the purposes set forth in clauses (1) through (9) of such
Section  9.01,  and (without  limitation of the foregoing or Section 9.01 of the
Basic  Agreement)  (a)  clauses (2) and (3) of such  Section  9.01 shall also be
deemed to include the Company's  obligations  under (in the case of clause (2)),
and the  Company's  rights and powers  conferred by (in the case of clause (3)),
the NPA, and (b)  references in clauses (4), (6) and (7) of such Section 9.01 to
"any Intercreditor  Agreement or any Liquidity Facility" shall also be deemed to
refer to "the  Intercreditor  Agreement,  the  Liquidity  Facility,  the  Escrow
Agreement,  the NPA or the  Deposit  Agreement"  and (ii) enter into one or more
agreements  supplemental  to this  Agreement  to provide for the  formation of a
Class D Trust, the issuance of Class D Certificates, the purchase by the Class D
Trust of  Equipment  Notes and other  matters  incidental  thereto or  otherwise
contemplated by Section 2.01(b) of the Basic Agreement.

            Section  6.03.  SUPPLEMENTAL  AGREEMENTS  WITH CONSENT OF APPLICABLE
CERTIFICATEHOLDERS.  Without  limitation of Section 9.02 of the Basic Agreement,
the provisions of Section 9.02 of the Basic  Agreement shall apply to agreements
or  amendments  for the purpose of adding any  provisions  to or changing in any
manner or eliminating any of the provisions of the Escrow Agreement, the Deposit
Agreement or the NPA or modifying  in any manner the rights and  obligations  of
the  Applicable  Certificateholders  under the  Escrow  Agreement,  the  Deposit
Agreement or the NPA;  provided that the  provisions  of Section  9.02(1) of the
Basic Agreement shall be deemed to include reductions in any manner of, or delay
in the timing of, any receipt by the Applicable  Certificateholders  of payments
upon the Deposits.


                                   ARTICLE VII
                              TERMINATION OF TRUST

            Section  7.01.   TERMINATION  OF  THE  APPLICABLE   TRUST.  (a)  The
respective  obligations and responsibilities of the Company and the Trustee with
respect to the Applicable  Trust shall  terminate upon the  distribution  to all
Applicable  Certificateholders  and the  Trustee of all  amounts  required to be
distributed  to them  pursuant  to this  Agreement  and the  disposition  of all
property held as part of the Trust Property; PROVIDED, HOWEVER, that in no event
shall the Applicable Trust continue beyond one hundred ten (110) years following
the date of the execution of this Trust Supplement.

            Notice of any  termination,  specifying the  Distribution  Date upon
which  the  Applicable   Certificateholders   may  surrender  their   Applicable
Certificates  to  the  Trustee  for  payment  of  the  final   distribution  and
cancellation,   shall  be  mailed   promptly  by  the   Trustee  to   Applicable
Certificateholders not earlier than the 60th day and not later than the 15th day
next preceding such final Distribution Date specifying (A) the Distribution Date


<PAGE>

upon which the proposed  final payment of the  Applicable  Certificates  will be
made upon presentation and surrender of Applicable Certificates at the office or
agency of the Trustee  therein  specified,  (B) the amount of any such  proposed
final  payment,  and (C) that  the  Record  Date  otherwise  applicable  to such
Distribution Date is not applicable,  payments being made only upon presentation
and  surrender  of the  Applicable  Certificates  at the office or agency of the
Trustee therein  specified.  The Trustee shall give such notice to the Registrar
at the  time  such  notice  is  given  to  Applicable  Certificateholders.  Upon
presentation  and surrender of the Applicable  Certificates  in accordance  with
such  notice,   the  Trustee  shall  cause  to  be   distributed  to  Applicable
Certificateholders such final payments.

            In the event that all of the Applicable Certificateholders shall not
surrender their Applicable Certificates for cancellation within six months after
the date specified in the above-mentioned written notice, the Trustee shall give
a second  written  notice  to the  remaining  Applicable  Certificateholders  to
surrender their  Applicable  Certificates for cancellation and receive the final
distribution  with respect thereto.  No additional  interest shall accrue on the
Applicable  Certificates  after the  Distribution  Date  specified  in the first
written notice.  In the event that any money held by the Trustee for the payment
of distributions on the Applicable  Certificates  shall remain unclaimed for two
years (or such lesser time as the Trustee shall be satisfied,  after sixty days'
notice from the Company, is one month prior to the escheat period provided under
applicable  law) after the final  distribution  date with respect  thereto,  the
Trustee shall pay to each Loan Trustee the appropriate  amount of money relating
to such Loan Trustee and shall give written  notice thereof to the related Owner
Trustees, the Owner Participants and the Company.

            (b) The  provisions  of this Section 7.01  supersede and replace the
provisions of Section 11.01 of the Basic Agreement in its entirety, with respect
to the Applicable Trust.


                                  ARTICLE VIII
                            MISCELLANEOUS PROVISIONS

            Section 8.01. BASIC AGREEMENT RATIFIED.  Except and so far as herein
expressly  provided,  all of the  provisions,  terms and conditions of the Basic
Agreement are in all respects  ratified and confirmed;  and the Basic  Agreement
and this Trust Supplement shall be taken, read and construed as one and the same
instrument.  All  replacements of provisions of, and other  modifications of the
Basic  Agreement set forth in this Trust  Supplement  are solely with respect to
the Applicable Trust.

            SECTION  8.02.  GOVERNING  LAW.  THE  AGREEMENT  AND THE  APPLICABLE
CERTIFICATES  SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE  WITH THE LAWS OF
THE STATE OF NEW YORK. THIS SECTION 8.02  SUPERSEDES AND REPLACES  SECTION 12.05
OF THE BASIC AGREEMENT, WITH RESPECT TO THE APPLICABLE TRUST.


<PAGE>

            Section 8.03.  EXECUTION IN COUNTERPARTS.  This Trust Supplement may
be executed in any number of  counterparts,  each of which shall be an original,
but such counterparts shall together constitute but one and the same instrument.

            Section 8.04.  INTENTION OF PARTIES.  The parties hereto intend that
the  Applicable  Trust be classified  for U.S.  federal income tax purposes as a
grantor trust under  Subpart E, Part I of  Subchapter J of the Internal  Revenue
Code of  1986,  as  amended,  and not as a trust  or  association  taxable  as a
corporation or as a partnership. Each Applicable Certificateholder and Investor,
by its  acceptance  of  its  Applicable  Certificate  or a  beneficial  interest
therein,  agrees to treat the  Applicable  Trust as a grantor trust for all U.S.
federal, state and local income tax purposes. The powers granted and obligations
undertaken pursuant to the Agreement shall be so construed so as to further such
intent.


<PAGE>

            IN WITNESS  WHEREOF,  the Company  and the Trustee  have caused this
Trust Supplement to be duly executed by their  respective  officers thereto duly
authorized, as of the day and year first written above.

                                     CONTINENTAL AIRLINES, INC.



                                     By:  ______________________________________
                                          Name: Gerald Laderman
                                          Title: Senior Vice President - Finance


                                     WILMINGTON TRUST COMPANY,
                                          as Trustee



                                     By:  ______________________________________
                                          Name:
                                          Title:




                        TRUST SUPPLEMENT No. 2000-1A-2-O

                              Dated March 15, 2000


                                     between

                            WILMINGTON TRUST COMPANY
                                   as Trustee,


                                       and


                           CONTINENTAL AIRLINES, INC.

                                       to

                          PASS THROUGH TRUST AGREEMENT
                         Dated as of September 25, 1997

                                 $117,852,000

             Continental Airlines Pass Through Trust 2000-1A-2-O
                           7.918% Continental Airlines
                           Pass Through Certificates,
                               Series 2000-1A-2-O


<PAGE>

            This Trust  Supplement No.  2000-1A-2-O,  dated as of March 15, 2000
(herein called the "TRUST SUPPLEMENT"),  between Continental  Airlines,  Inc., a
Delaware  corporation  (the  "COMPANY"),   and  Wilmington  Trust  Company  (the
"TRUSTEE"), to the Pass Through Trust Agreement, dated as of September 25, 1997,
between the Company and the Trustee (the "BASIC AGREEMENT").


                             W I T N E S S E T H:
                             - - - - - - - - - -

            WHEREAS,  the  Basic  Agreement,   unlimited  as  to  the  aggregate
principal amount of Certificates (unless otherwise specified herein, capitalized
terms used herein without definition having the respective meanings specified in
the Basic  Agreement)  which  may be  issued  thereunder,  has  heretofore  been
executed and delivered;

            WHEREAS, the Company has obtained commitments from Boeing for the
delivery of certain Aircraft;

            WHEREAS, the Company intends to finance the acquisition of each such
Aircraft either (i) through separate leveraged
 lease transactions, in which case
the Company will lease such Aircraft (collectively,  the "LEASED AIRCRAFT"),  or
(ii) through separate secured loan transactions,  in which case the Company will
own such Aircraft (collectively, the "OWNED AIRCRAFT");

            WHEREAS,  in the case of each Leased  Aircraft,  each Owner Trustee,
acting on behalf of the corresponding Owner Participant,  will issue pursuant to
an Indenture,  on a non-recourse  basis,  Equipment  Notes in order to finance a
portion of its purchase price of such Leased Aircraft;

            WHEREAS, in the case of each Owned Aircraft,  the Company will issue
pursuant to an  Indenture,  on a recourse  basis,  Equipment  Notes to finance a
portion of the purchase price of such Owned Aircraft;

            WHEREAS,   the  Trustee   hereby   declares  the  creation  of  this
Continental Airlines Pass Through Trust 2000-1A-2-O (the "APPLICABLE TRUST") for
the benefit of the  Applicable  Certificateholders,  and the initial  Applicable
Certificateholders  as the grantors of the Applicable Trust, by their respective
acceptances  of  the  Applicable  Certificates,  join  in  the  creation  of the
Applicable Trust with the Trustee;

            WHEREAS,  all Certificates to be issued by the Applicable Trust will
evidence fractional  undivided interests in the Applicable Trust and will convey
no rights, benefits or interests in respect of any property other than the Trust
Property  except  for those  Certificates  to which an Escrow  Receipt  has been
affixed;

            WHEREAS,    the   Escrow   Agent   and   the    Underwriters    have
contemporaneously  herewith  entered  into an Escrow  Agreement  with the Escrow
Paying Agent  pursuant to which the  Underwriters  have  delivered to the Escrow
Agent the proceeds from the sale of the Applicable  Certificates,  to the extent


<PAGE>

not used to purchase  Equipment Notes on the Issuance Date, and have irrevocably
instructed  the Escrow Agent to withdraw and pay funds from such  proceeds  upon
request and proper  certification by the Trustee to purchase  Equipment Notes as
the Aircraft are delivered by Boeing under the Aircraft Purchase  Agreement from
time to time prior to the Delivery Period Termination Date;

            WHEREAS,   the   Escrow   Agent   on   behalf   of  the   Applicable
Certificateholders  has  contemporaneously   herewith  entered  into  a  Deposit
Agreement with the Depositary under which the Deposits  referred to therein will
be made and from which it will  withdraw  funds to allow the Trustee to purchase
Equipment Notes from time to time prior to the Delivery Period Termination Date;

            WHEREAS, pursuant to the terms and conditions of the Basic Agreement
as supplemented by this Trust Supplement (the "AGREEMENT") and the NPA, upon the
financing of an Aircraft,  the Trustee on behalf of the Applicable Trust,  using
funds  withdrawn  under the Escrow  Agreement  (or, if financed on the  Issuance
Date,   using  a  portion  of  the  proceeds  of  the  sale  of  the  Applicable
Certificates),  shall  purchase  one or more  Equipment  Notes  having  the same
interest  rate as,  and final  maturity  date not later  than the final  Regular
Distribution  Date of, the Applicable  Certificates  issued  hereunder and shall
hold  such  Equipment   Notes  in  trust  for  the  benefit  of  the  Applicable
Certificateholders;

            WHEREAS,  all of the conditions and  requirements  necessary to make
this Trust Supplement,  when duly executed and delivered,  a valid,  binding and
legal  instrument  in  accordance  with its  terms and for the  purposes  herein
expressed,  have been done,  performed  and  fulfilled,  and the  execution  and
delivery  of this Trust  Supplement  in the form and with the terms  hereof have
been in all respects duly authorized;

            WHEREAS,  this Trust  Supplement is subject to the provisions of the
Trust Indenture Act of 1939, as amended, and shall, to the extent applicable, be
governed by such provisions;

            NOW THEREFORE, in consideration of the premises herein, it is agreed
between the Company and the Trustee as follows:


                                    ARTICLE I
                                THE CERTIFICATES

            Section 1.01. THE CERTIFICATES.  There is hereby created a series of
Certificates to be issued under the Agreement to be  distinguished  and known as
"7.918%  Continental  Airlines Pass Through  Certificates,  Series  2000-1A-2-O"
(hereinafter  defined  as  the  "APPLICABLE   CERTIFICATES").   Each  Applicable
Certificate  represents a fractional  undivided interest in the Applicable Trust
created  hereby.  The  Applicable  Certificates  shall be the  only  instruments
evidencing a fractional undivided interest in the Applicable Trust.

            The terms and conditions  applicable to the Applicable  Certificates
are as follows:


<PAGE>

            (a) The aggregate  principal  amount of the Applicable  Certificates
      that shall be  authenticated  under the Agreement  (except for  Applicable
      Certificates  authenticated and delivered pursuant to Sections 3.03, 3.04,
      3.05 and 3.06 of the Basic Agreement) is $117,852,000.

            (b) The Regular  Distribution  Dates with  respect to any payment of
      Scheduled Payments means May 1 and November 1 of each year,  commencing on
      May 1, 2000,  until  payment of all of the  Scheduled  Payments to be made
      under the Equipment Notes has been made.

            (c) The Special  Distribution  Dates with respect to the  Applicable
      Certificates  means any Business  Day on which a Special  Payment is to be
      distributed pursuant to the Agreement.

            (d) At the Escrow Agent's  request under the Escrow  Agreement,  the
      Trustee shall affix the  corresponding  Escrow Receipt to each  Applicable
      Certificate.  In any event,  any  transfer or  exchange of any  Applicable
      Certificate shall also effect a transfer or exchange of the related Escrow
      Receipt.  Prior to the Final  Withdrawal  Date, no transfer or exchange of
      any Applicable  Certificate  shall be permitted  unless the  corresponding
      Escrow  Receipt  is  attached  thereto  and  also  is  so  transferred  or
      exchanged.  By acceptance of any Applicable Certificate to which an Escrow
      Receipt  is  attached,  each  Holder  of  such an  Applicable  Certificate
      acknowledges  and  accepts  the  restrictions  on  transfer  of the Escrow
      Receipt set forth herein and in the Escrow Agreement.

            (e) (i) The  Applicable  Certificates  shall be in the form attached
      hereto as Exhibit A. Any  Person  acquiring  or  accepting  an  Applicable
      Certificate  or  an  interest   therein  will,  by  such   acquisition  or
      acceptance,  be deemed to represent  and warrant to and for the benefit of
      each Owner  Participant  and the Company  that either (i) the assets of an
      employee benefit plan subject to Title I of the Employee Retirement Income
      Security  Act of 1974,  as  amended  ("ERISA"),  or of a plan  subject  to
      Section  4975 of the  Internal  Revenue  Code of  1986,  as  amended  (the
      "CODE"),  have not been used to  purchase  Applicable  Certificates  or an
      interest   therein  or  (ii)  the  purchase  and  holding  of   Applicable
      Certificates  or  an  interest  therein  is  exempt  from  the  prohibited
      transaction  restrictions  of ERISA and the Code  pursuant  to one or more
      prohibited transaction statutory or administrative exemptions.

            (ii) The Applicable  Certificates  shall be Book-Entry  Certificates
      and  shall  be  subject  to the  conditions  set  forth in the  Letter  of
      Representations  between  the  Company and the  Clearing  Agency  attached
      hereto as Exhibit B.

            (f)  The  "Participation   Agreements"  as  defined  in  this  Trust
      Supplement  are the "Note  Purchase  Agreements"  referred to in the Basic
      Agreement.

            (g) The  Applicable  Certificates  are subject to the  Intercreditor
      Agreement, the Deposit Agreement and the Escrow Agreement.


<PAGE>

            (h)  The  Applicable  Certificates  will  have  the  benefit  of the
      Liquidity Facility.

            (i)   The Responsible Party is the Company.

            (j) The date referred to in clause (i) of the definition of the term
      "PTC Event of Default" in the Basic Agreement is the Final Maturity Date.

            (k) The particular  "sections of the Note Purchase  Agreement",  for
      purposes of clause (3) of Section 7.07 of the Basic Agreement, are Section
      8.1 (with  respect to Owned  Aircraft)  and Section  9.1 (with  respect to
      Leased Aircraft) of each Participation Agreement.

            (l) The  Equipment  Notes to be acquired and held in the  Applicable
      Trust, and the related  Aircraft and Note Documents,  are described in the
      NPA.


                                   ARTICLE II
                                   DEFINITIONS

            Section 2.01.  DEFINITIONS.  For all purposes of the Basic Agreement
as supplemented by this Trust Supplement,  the following  capitalized terms have
the following meanings (any term used herein which is defined in both this Trust
Supplement and the Basic  Agreement shall have the meaning  assigned  thereto in
this Trust  Supplement for purposes of the Basic  Agreement as  supplemented  by
this Trust Supplement):

            AGREEMENT:  Has the meaning specified in the recitals hereto.

            AIRCRAFT:  Means each of the New Aircraft or Substitute  Aircraft in
      respect of which a Participation Agreement is to be or is, as the case may
      be, entered into in accordance  with the NPA (or any substitute  aircraft,
      including engines therefor, owned by or leased to the Company and securing
      one or more Equipment Notes).

            AIRCRAFT PURCHASE AGREEMENT: Has the meaning specified in the NPA.

            APPLICABLE CERTIFICATE: Has the meaning specified in Section 1.01 of
      this Trust Supplement.

            APPLICABLE  CERTIFICATEHOLDER:  Means the  Person  in whose  name an
      Applicable  Certificate  is registered on the Register for the  Applicable
      Certificates.

            APPLICABLE  DELIVERY  DATE:  Has the  meaning  specified  in Section
      5.01(b) of this Trust Supplement.

            APPLICABLE  PARTICIPATION  AGREEMENT:  Has the meaning  specified in
      Section 5.01(b) of this Trust Supplement.

            APPLICABLE TRUST: Has the meaning specified in the recitals hereto.


<PAGE>

            ASSIGNMENT  AND  ASSUMPTION  AGREEMENT:  Means  the  assignment  and
      assumption  agreement  substantially  in the  form  of  Exhibit  C  hereto
      executed  and  delivered  in  accordance  with  Section 7.01 of this Trust
      Supplement.

            BASIC AGREEMENT: Has the meaning specified in the first paragraph of
      this Trust Supplement.

            BOEING: Means The Boeing Company.

            BUSINESS DAY: Means any day other than a Saturday, a Sunday or a day
      on which  commercial banks are required or authorized to close in Houston,
      Texas,  New  York,  New  York,  Salt  Lake  City,  Utah or, so long as any
      Applicable  Certificate  is  Outstanding,  the city and state in which the
      Trustee  or any Loan  Trustee  maintains  its  Corporate  Trust  Office or
      receives and disburses funds.

            CLASS C  CERTIFICATEHOLDER:  Has the  meaning  specified  in Section
      4.01(b)(iii) of this Trust Supplement.

            CLASS  C  FRACTIONAL  UNDIVIDED  INTEREST:  Means,  at any  date  of
      computation, the fractional interest in the relevant Trust held by a Class
      C  Certificateholder  multiplied  by the Pool  Balance  (as defined in the
      Intercreditor  Agreement) of such Trust and divided by the aggregate  Pool
      Balances  (as  defined in the  Intercreditor  Agreement)  of the Class C-1
      Trust and the Class C-2 Trust, all determined at such date.

            CLASS D  CERTIFICATEHOLDER:  Has the  meaning  specified  in Section
      4.01(b)(iv) of this Trust Supplement.

            COMPANY:  Has the meaning  specified in the first  paragraph of this
      Trust Supplement.

            CONTROLLING  PARTY: Has the meaning  specified in the  Intercreditor
      Agreement.

            CUT-OFF  DATE:   Means  the  earlier  of  (a)  the  Delivery  Period
      Termination Date and (b) the date on which a Triggering Event occurs.

            DELIVERY NOTICE: Has the meaning specified in the NPA.

            DELIVERY PERIOD TERMINATION DATE: Means the earlier of (a) March 31,
      2001,  or, if the Equipment  Notes relating to all of the New Aircraft (or
      Substitute  Aircraft  in lieu  thereof)  have  not been  purchased  by the
      Applicable  Trust and the Other Trusts on or prior to such date due to any
      reason  beyond  the  control  of the  Company  and not  occasioned  by the
      Company's  fault or negligence,  September 30, 2001  (PROVIDED  that, if a
      labor strike  occurs at Boeing on or prior to either or both of such dates
      referred  to in this clause (a),  such date or dates on or  following  the
      commencement of such strike shall be extended by adding thereto the number
      of days that such strike  continued in effect),  and (b) the date on which
      Equipment Notes issued with respect to all of the New Aircraft (or


<PAGE>

      Substitute Aircraft in lieu thereof) have been purchased by the Applicable
      Trust and the Other Trusts in accordance with the NPA.

            DEPOSITS: Has the meaning specified in the Deposit Agreement.

            DEPOSIT AGREEMENT: Means the Deposit Agreement dated as of March 15,
      2000 relating to the  Applicable  Certificates  between the Depositary and
      the Escrow Agent,  as the same may be amended,  supplemented  or otherwise
      modified from time to time in accordance with its terms.

            DEPOSITARY:  Means Credit Suisse First Boston, a banking institution
      organized  under  the laws of  Switzerland,  acting  through  its New York
      branch.

            DISTRIBUTION  DATE: Means any Regular  Distribution  Date or Special
      Distribution Date as the context requires.

            ESCROW  AGENT:  Means,  initially,  First  Security  Bank,  National
      Association,  and any  replacement  or  successor  therefor  appointed  in
      accordance with the Escrow Agreement.

            ESCROW AGREEMENT:  Means the Escrow and Paying Agent Agreement dated
      as of March 15, 2000 relating to the  Applicable  Certificates,  among the
      Escrow Agent,  the Escrow Paying Agent, the Trustee and  Underwriters,  as
      the same may be amended,  supplemented or otherwise  modified from time to
      time in accordance with its terms.

            ESCROW PAYING  AGENT:  Means the Person acting as paying agent under
      the Escrow Agreement.

            ESCROW RECEIPT:  Means the receipt substantially in the form annexed
      to the Escrow Agreement  representing a fractional  undivided  interest in
      the funds held in escrow thereunder.

            FINAL MATURITY DATE: Means November 1, 2011.

            FINAL WITHDRAWAL: Has the meaning specified in the Escrow Agreement.

            FINAL  WITHDRAWAL  DATE:  Has the  meaning  specified  in the Escrow
      Agreement.

            FINAL WITHDRAWAL  NOTICE:  Has the meaning specified in Section 5.02
      of this Trust Supplement.

            INDENTURE: Means each of the separate trust indentures and mortgages
      relating to the  Aircraft,  each as  specified  or described in a Delivery
      Notice  delivered  pursuant  to  the  NPA  or  the  related  Participation
      Agreement,  in each  case as the  same  may be  amended,  supplemented  or
      otherwise modified from time to time in accordance with its terms.


<PAGE>

            INTERCREDITOR AGREEMENT:  Means the Intercreditor Agreement dated as
      of March 15, 2000 among the Trustee,  the Other  Trustees,  the  Liquidity
      Provider,  the liquidity  providers  relating to the  Certificates  issued
      under each of the Other  Agreements,  and  Wilmington  Trust  Company,  as
      Subordination Agent and as trustee thereunder, as amended, supplemented or
      otherwise modified from time to time in accordance with its terms.

            INVESTORS:  Means  the  Underwriters  together  with all  subsequent
      beneficial owners of the Applicable Certificates.

            LEASE:  Means,  with  respect  to each  Leased  Aircraft,  the lease
      between an Owner Trustee,  as the lessor, and the Company,  as the lessee,
      referred  to in the  related  Indenture,  as such  lease  may be  amended,
      supplemented or otherwise modified in accordance with its terms.

            LEASED AIRCRAFT:  Has the meaning  specified in the third recital to
      this Trust Supplement.

            LEASED  AIRCRAFT  INDENTURE:   Has  the  meaning  specified  in  the
      Intercreditor Agreement.

            LIQUIDITY FACILITY: Means, initially, the Revolving Credit Agreement
      dated  as of March  15,  2000  relating  to the  Applicable  Certificates,
      between  the  Liquidity   Provider  and  Wilmington   Trust  Company,   as
      Subordination  Agent, as agent and trustee for the Applicable  Trust, and,
      from  and  after  the  replacement  of  such  agreement  pursuant  to  the
      Intercreditor  Agreement,  the replacement liquidity facility therefor, in
      each case as amended, supplemented or otherwise modified from time to time
      in accordance with their respective terms.

            LIQUIDITY PROVIDER: Means, initially,  Credit Suisse First Boston, a
      banking  institution  organized  under  the  laws of  Switzerland,  acting
      through its New York branch,  and any replacements or successors  therefor
      appointed in accordance with the Intercreditor Agreement.

            NEW AIRCRAFT: Has the meaning specified in the NPA.

            NOTE  DOCUMENTS:  Means the  Equipment  Notes  with  respect  to the
      Applicable  Certificates and, with respect to any such Equipment Note, (i)
      the Indenture and the Participation  Agreement  relating to such Equipment
      Note,  and  (ii) in the case of any  Equipment  Note  related  to a Leased
      Aircraft, the Lease relating to such Leased Aircraft.

            NOTICE OF  PURCHASE  WITHDRAWAL:  Has the meaning  specified  in the
      Deposit Agreement.

            NPA:  Means the Note Purchase  Agreement  dated as of March 15, 2000
      among the Trustee, the Other Trustees,  the Company, the Escrow Agent, the
      Escrow Paying Agent and the  Subordination  Agent,  providing  for,  among
      other things, the purchase of Equipment Notes by the Trustee on behalf of


<PAGE>

      the Trust, as the same may be amended,  supplemented or otherwise modified
      from time to time, in accordance with its terms.

            OTHER  AGREEMENTS:  Means (i) the Basic Agreement as supplemented by
      Trust  Supplement  No.  2000-1A-1-O  dated  the date  hereof  relating  to
      Continental  Airlines  Pass  Through  Trust  2000-1A-1-O,  (ii) the  Basic
      Agreement as supplemented by Trust Supplement No. 2000-1B-O dated the date
      hereof  relating to  Continental  Airlines Pass Through  Trust  2000-1B-O,
      (iii)  the  Basic  Agreement  as  supplemented  by  Trust  Supplement  No.
      2000-1C-1-O  dated the date hereof  relating to Continental  Airlines Pass
      Through Trust  2000-1C-1-O and (iv) the Basic Agreement as supplemented by
      Trust  Supplement  No.  2000-1C-2-O  dated  the date  hereof  relating  to
      Continental Airlines Pass Through Trust 2000-1C-2-O.

            OTHER TRUSTEES:  Means the trustees under the Other Agreements,  and
      any successor or other trustee appointed as provided therein.

            OTHER  TRUSTS:  Means the  Continental  Airlines  Pass Through Trust
      2000-1A-1-O,  the Continental  Airlines Pass Through Trust 2000-1B-O,  the
      Continental  Airlines Pass Through Trust  2000-1C-1-O  and the Continental
      Airlines Pass Through Trust 2000-1C-2-O, each created on the date hereof.

            OWNED  AIRCRAFT:  Has the meaning  specified in the third recital to
      this Trust Supplement.

            OWNED  AIRCRAFT   INDENTURE:   Has  the  meaning  specified  in  the
      Intercreditor Agreement.

            OWNER PARTICIPANT:  With respect to any Equipment Note relating to a
      Leased  Aircraft,  means the "Owner  Participant"  as  referred  to in the
      Indenture  pursuant  to  which  such  Equipment  Note  is  issued  and any
      permitted  successor  or  assign  of such  Owner  Participant;  and  OWNER
      PARTICIPANTS  at  any  time  of  determination  means  all  of  the  Owner
      Participants thus referred to in the Indentures.

            OWNER  TRUSTEE:  With respect to any  Equipment  Note  relating to a
      Leased  Aircraft,  means  the  "Owner  Trustee",  as  referred  to in  the
      Indenture  pursuant  to which such  Equipment  Note is issued,  not in its
      individual capacity but solely as trustee; and OWNER TRUSTEES means all of
      the Owner Trustees party to any of the Indentures.

            OWNER  TRUSTEE'S  PURCHASE  AGREEMENT:  Means,  with  respect to any
      Leased Aircraft,  the agreement between the Company and the relevant Owner
      Trustee  pursuant to which,  INTER ALIA, the Company  assigns to the Owner
      Trustee  certain  rights  of  the  Company  under  the  aircraft  purchase
      agreement with respect to such Leased Aircraft.

            PARTICIPATION  AGREEMENT:  Means each Participation  Agreement to be
      entered  into,  or  entered  into (as the case  may  be),  by the  Trustee
      pursuant to the NPA, as the same may be amended, supplemented or otherwise
      modified in accordance with its terms.


<PAGE>

            POOL BALANCE: Means, as of any date, (i) the original aggregate face
      amount of the Applicable  Certificates  less (ii) the aggregate  amount of
      all payments made in respect of such Applicable Certificates or in respect
      of  Deposits  other than  payments  made in respect of interest or premium
      thereon or reimbursement  of any costs or expenses  incurred in connection
      therewith.  The Pool Balance as of any Distribution Date shall be computed
      after  giving  effect to any special  distribution  with respect to unused
      Deposits,  payment of  principal  of the  Equipment  Notes or payment with
      respect to other Trust Property and the distribution thereof to be made on
      that date.

            POOL  FACTOR:  Means,  as of any  Distribution  Date,  the  quotient
      (rounded to the seventh  decimal place)  computed by dividing (i) the Pool
      Balance  by (ii) the  original  aggregate  face  amount of the  Applicable
      Certificates.  The  Pool  Factor  as of any  Distribution  Date  shall  be
      computed after giving effect to any special  distribution  with respect to
      unused  Deposits,  payment of principal of the Equipment Notes or payments
      with respect to other Trust  Property and the  distribution  thereof to be
      made on that date.

            PROSPECTUS  SUPPLEMENT:  Means the Prospectus Supplement dated March
      1, 2000 relating to the offering of the Certificates.

            RELATED PASS THROUGH TRUST  AGREEMENT:  Means the Basic Agreement as
      supplemented by the Trust Supplement No. 2000-1A-2-S dated the date hereof
      relating to the  Continental  Airlines Pass Through Trust  2000-1A-2-S and
      entered  into by the  Company and the  Trustee,  which  agreement  becomes
      effective upon the execution and delivery of the Assignment and Assumption
      Agreement pursuant to Section 7.01 of this Trust Supplement.

            RELATED TRUST: Means the Continental Pass Through Trust 2000-1A-2-S,
      to be formed under the Related Pass Through Trust Agreement.

            RELATED  TRUSTEE:  Means the trustee  under the Related Pass Through
      Trust Agreement.

            SCHEDULED DELIVERY DATE: Has the meaning specified in the NPA.

            SPECIAL PAYMENT:  Means any payment (other than a Scheduled Payment)
      in respect of, or any proceeds of, any  Equipment  Note,  Trust  Indenture
      Estate (as defined in each Leased  Aircraft  Indenture) or Collateral  (as
      defined in each Owned Aircraft Indenture).

            SUBSTITUTE AIRCRAFT: Has the meaning specified in the NPA.

            TRANSFER  DATE:  Has the meaning  specified  in Section 7.01 of this
      Trust Supplement.

            TRIGGERING  EVENT:  Has the  meaning  assigned  to such  term in the
      Intercreditor Agreement.


<PAGE>

            TRUST PROPERTY:  Means (i) subject to the  Intercreditor  Agreement,
      the  Equipment  Notes held as the property of the  Applicable  Trust,  all
      monies at any time  paid  thereon  and all  monies  due and to become  due
      thereunder,  (ii) funds  from time to time  deposited  in the  Certificate
      Account and the Special Payments Account and, subject to the Intercreditor
      Agreement,  any proceeds from the sale by the Trustee  pursuant to Article
      VI of the Basic  Agreement of any  Equipment  Note and (iii) all rights of
      the Applicable Trust and the Trustee,  on behalf of the Applicable  Trust,
      under the Intercreditor  Agreement,  the Escrow Agreement, the NPA and the
      Liquidity Facility,  including,  without limitation, all rights to receive
      certain payments thereunder,  and all monies paid to the Trustee on behalf
      of the  Applicable  Trust pursuant to the  Intercreditor  Agreement or the
      Liquidity  Facility,  PROVIDED that rights with respect to the Deposits or
      under the Escrow Agreement, except for the right to direct withdrawals for
      the purchase of Equipment  Notes to be held  herein,  will not  constitute
      Trust Property.

            TRUST  SUPPLEMENT:  Has the meaning specified in the first paragraph
      of this trust supplement.

            UNDERWRITERS:   Means,  collectively,  Credit  Suisse  First  Boston
      Corporation,  Morgan Stanley & Co.  Incorporated,  Chase  Securities Inc.,
      Merrill  Lynch,  Pierce,  Fenner & Smith  Incorporated  and Salomon  Smith
      Barney Inc.

            UNDERWRITING AGREEMENT: Means the Underwriting Agreement dated March
      1, 2000 among the  Underwriters,  the Company and the  Depositary,  as the
      same may be amended,  supplemented or otherwise modified from time to time
      in accordance with its terms.


                                   ARTICLE III
                        STATEMENTS TO CERTIFICATEHOLDERS

            Section 3.01.  STATEMENTS TO APPLICABLE  CERTIFICATEHOLDERS.  (a) On
each  Distribution  Date,  the Trustee will include  with each  distribution  to
Applicable  Certificateholders of a Scheduled Payment or Special Payment, as the
case may be, a statement  setting forth the  information  provided below (in the
case of a Special  Payment,  reflecting in part the information  provided by the
Escrow Paying Agent under the Escrow Agreement).  Such statement shall set forth
(per $1,000 face amount  Applicable  Certificate as to (ii), (iii), (iv) and (v)
below) the following information:

            (i) the aggregate amount of funds  distributed on such  Distribution
      Date under the Agreement and under the Escrow  Agreement,  indicating  the
      amount allocable to each source;

            (ii) the amount of such distribution  under the Agreement  allocable
      to principal and the amount allocable to premium, if any;

            (iii) the amount of such distribution under the Agreement  allocable
      to interest;


<PAGE>

            (iv) the  amount of such  distribution  under the  Escrow  Agreement
      allocable to interest;

            (v) the  amount  of such  distribution  under the  Escrow  Agreement
      allocable to unused Deposits, if any; and

            (vi) the Pool Balance and the Pool Factor.

            With respect to the Applicable  Certificates  registered in the name
of a Clearing Agency,  on the Record Date prior to each  Distribution  Date, the
Trustee will request from such  Clearing  Agency a securities  position  listing
setting forth the names of all Clearing  Agency  Participants  reflected on such
Clearing Agency's books as holding  interests in the Applicable  Certificates on
such Record Date. On each Distribution  Date, the Trustee will mail to each such
Clearing  Agency  Participant  the  statement  described  above  and  will  make
available additional copies as requested by such Clearing Agency Participant for
forwarding to holders of interests in the Applicable Certificates.

            (b)  Within  a  reasonable  period  of  time  after  the end of each
calendar  year but not later than the latest date  permitted by law, the Trustee
shall  furnish to each Person who at any time during such  calendar  year was an
Applicable  Certificateholder  of record a statement  containing  the sum of the
amounts determined pursuant to clauses (a)(i),  (a)(ii),  (a)(iii),  (a)(iv) and
(a)(v)  above  for such  calendar  year or,  in the  event  such  Person  was an
Applicable  Certificateholder  of record during a portion of such calendar year,
for such portion of such year, and such other items as are readily  available to
the Trustee and which an Applicable  Certificateholder  shall reasonably request
as necessary for the purpose of such Applicable Certificateholder's  preparation
of its federal income tax returns.  Such statement and such other items shall be
prepared on the basis of  information  supplied  to the Trustee by the  Clearing
Agency  Participants  and shall be  delivered  by the  Trustee to such  Clearing
Agency  Participants  to be available for  forwarding  by such  Clearing  Agency
Participants  to the holders of interests in the Applicable  Certificates in the
manner described in Section 3.01(a) of this Trust Supplement.

            (c) If the  aggregate  principal  payments  scheduled  for a Regular
Distribution Date prior to the Delivery Period  Termination Date differ from the
amount  thereof set forth for the  Applicable  Certificates  on page S-34 of the
Prospectus  Supplement,  by no later  than the  15th day  prior to such  Regular
Distribution Date, the Trustee shall mail written notice of the actual amount of
such scheduled payments to the Applicable  Certificateholders  of record as of a
date within 15 Business Days prior to the date of mailing.

            (d) Promptly  following (i) the Delivery Period Termination Date, if
there has been any change in the  information  set forth in clauses (x), (y) and
(z) below  from that set forth in page S-34 of the  Prospectus  Supplement,  and
(ii) the date of any early  redemption  or  purchase  of, or any  default in the
payment of principal or interest in respect of, any of the Equipment  Notes held
in the Applicable Trust, or any Final  Withdrawal,  the Trustee shall furnish to
Applicable  Certificateholders  of record on such date a statement setting forth
(x) the expected Pool Balances for each  subsequent  Regular  Distribution  Date
following the Delivery Period Termination Date, (y) the related Pool Factors for
such  Regular  Distribution  Dates and (z) the expected  principal  distribution


<PAGE>

schedule of the Equipment Notes, in the aggregate, held as Trust Property at the
date of such notice. With respect to the Applicable  Certificates  registered in
the name of a Clearing  Agency,  on the Delivery  Period  Termination  Date, the
Trustee will request from such  Clearing  Agency a securities  position  listing
setting forth the names of all Clearing  Agency  Participants  reflected on such
Clearing Agency's books as holding  interests in the Applicable  Certificates on
such date. The Trustee will mail to each such Clearing  Agency  Participant  the
statement described above and will make available additional copies as requested
by such Clearing  Agency  Participant  for forwarding to holders of interests in
the Applicable Certificates.

            (e) This Section 3.01  supersedes  and replaces  Section 4.03 of the
Basic Agreement, with respect to the Applicable Trust.


                                   ARTICLE IV
                                     DEFAULT

            Section 4.01. PURCHASE RIGHTS OF CERTIFICATEHOLDERS. (a) At any time
after the occurrence and during the  continuation of a Triggering  Event, if the
Class   A-1   Trustee   is  then  the   Controlling   Party,   each   Applicable
Certificateholder  shall have the right to purchase,  for the purchase price set
forth in the Class A-1 Trust Agreement, all, but not less than all, of the Class
A-1 Certificates upon ten days' written notice to the Class A-1 Trustee and each
other  Applicable  Certificateholder,  PROVIDED  that (i) if prior to the end of
such  ten-day  period  any  other  Applicable  Certificateholder  notifies  such
purchasing   Applicable    Certificateholder    that   such   other   Applicable
Certificateholder  wants  to  participate  in such  purchase,  then  such  other
Applicable   Certificateholder   may  join   with  the   purchasing   Applicable
Certificateholder  to  purchase  all,  but not less than  all,  of the Class A-1
Certificates  pro  rata  based  on  the  Fractional  Undivided  Interest  in the
Applicable  Trust  held by each such  Applicable  Certificateholder  and (ii) if
prior to the end of such ten-day period any other  Applicable  Certificateholder
fails to  notify  the  purchasing  Applicable  Certificateholder  of such  other
Applicable  Certificateholder's  desire to participate in such a purchase,  then
such other  Applicable  Certificateholder  shall lose its right to purchase  the
Class A-1 Certificates pursuant to this Section 4.01(a).

            (b) By acceptance of its  Applicable  Certificate,  each  Applicable
Certificateholder  agrees that at any time after the  occurrence  and during the
continuation of a Triggering Event,

            (i) if the  Trustee is then the  Controlling  Party,  each Class A-1
      Certificateholder  shall have the right to purchase all, but not less than
      all, of the Applicable  Certificates  upon ten days' written notice to the
      Trustee and each other Class A-1  Certificateholder,  PROVIDED that (A) if
      prior  to  the  end  of  such   ten-day   period   any  other   Class  A-1
      Certificateholder  notifies such  purchasing  Class A-1  Certificateholder
      that such other Class A-1  Certificateholder  wants to participate in such
      purchase,  then such other Class A-1  Certificateholder  may join with the
      purchasing Class A-1  Certificateholder to purchase all, but not less than
      all,  of the  Applicable  Certificates  pro rata  based on the  Fractional
      Undivided  Interest  in the Class A-1  Trust  held by each such  Class A-1


<PAGE>

      Certificateholder  and (B) if prior to the end of such ten-day  period any
      other Class A-1 Certificateholder fails to notify the purchasing Class A-1
      Certificateholder  of such other Class A-1  Certificateholder's  desire to
      participate   in   such  a   purchase,   then   such   other   Class   A-1
      Certificateholder   shall  lose  its  right  to  purchase  the  Applicable
      Certificates pursuant to this Section 4.01(b);

            (ii) each  Class B  Certificateholder  shall  have the right  (which
      shall not expire upon any purchase of the Applicable Certificates pursuant
      to clause (a) or (b)(i)  above) to purchase all, but not less than all, of
      the Applicable  Certificates and the Class A-1 Certificates upon ten days'
      written notice to the Trustee,  the Class A-1 Trustee and each other Class
      B Certificateholder, PROVIDED that (A) if prior to the end of such ten-day
      period any other Class B Certificateholder  notifies such purchasing Class
      B  Certificateholder  that such other Class B  Certificateholder  wants to
      participate  in such purchase,  then such other Class B  Certificateholder
      may join with the purchasing  Class B  Certificateholder  to purchase all,
      but not less than all, of the  Applicable  Certificates  and the Class A-1
      Certificates  pro rata based on the Fractional  Undivided  Interest in the
      Class B Trust held by each such Class B Certificateholder and (B) if prior
      to the end of such  ten-day  period  any other  Class B  Certificateholder
      fails to notify the  purchasing  Class B  Certificateholder  of such other
      Class B Certificateholder's desire to participate in such a purchase, then
      such other Class B Certificateholder  shall lose its right to purchase the
      Applicable  Certificates and the Class A-1  Certificates  pursuant to this
      Section 4.01(b);

            (iii)   each   Class   C-1    Certificateholder    and   Class   C-2
      Certificateholder  (each a "CLASS  C  CERTIFICATEHOLDER")  shall  have the
      right  (which  shall  not  expire  upon  any  purchase  of the  Applicable
      Certificates  pursuant to clause (a), (b)(i) or (b)(ii) above) to purchase
      all, but not less than all, of the Applicable Certificates,  the Class A-1
      Certificates and the Class B Certificates upon ten days' written notice to
      the Trustee,  the Class A-1  Trustee,  the Class B Trustee and (x) if such
      purchasing  Class C  Certificateholder  is a Class C-1  Certificateholder,
      each  other  Class C-1  Certificateholder  and either (I) if the Class C-2
      Trustee  shall  have made a current  list of Class C-2  Certificateholders
      available  to such  purchasing  Class C  Certificateholder  upon a request
      therefor,  each Class C-2 Certificateholder,  or (II) if clause (I) is not
      applicable,  the  Class C-2  Trustee,  or (y) if such  purchasing  Class C
      Certificateholder is a Class C-2  Certificateholder,  each other Class C-2
      Certificateholder  and either (I) if the Class C-1 Trustee shall have made
      a  current  list  of  Class  C-1  Certificateholders   available  to  such
      purchasing Class C Certificateholder  upon a request therefor,  each Class
      C-1 Certificateholder,  or (II) if clause (I) is not applicable, the Class
      C-1 Trustee,  PROVIDED that (A) if prior to the end of such ten-day period
      any other  Class C  Certificateholder  notifies  such  purchasing  Class C
      Certificateholder  that  such  other  Class C  Certificateholder  wants to
      participate  in such purchase,  then such other Class C  Certificateholder
      may join with the purchasing  Class C  Certificateholder  to purchase all,
      but not less  than  all,  of the  Applicable  Certificates,  the Class A-1
      Certificates  and the Class B  Certificates  pro rata based on the Class C
      Fractional  Undivided Interest held by each such Class C Certificateholder
      and (B) if prior  to the end of such  ten-day  period  any  other  Class C
      Certificateholder fails to notify the purchasing Class C Certificateholder
      of such other Class C Certificateholder's  desire to participate in such a


<PAGE>

      purchase,  then such other Class C Certificateholder  shall lose its right
      to purchase the Applicable  Certificates,  the Class A-1  Certificates and
      the Class B Certificates pursuant to this Section 4.01(b); and

            (iv)   each   holder   of  a  Class  D   Certificate   (a  "CLASS  D
      CERTIFICATEHOLDER")  shall have the right (which shall not expire upon any
      purchase of the Applicable  Certificates  pursuant to clause (a),  (b)(i),
      (b)(ii) or (b)(iii)  above) to purchase all, but not less than all, of the
      Applicable  Certificates,   the  Class  A-1  Certificates,   the  Class  B
      Certificates,  the Class C-1  Certificates  and the Class C-2 Certificates
      upon ten days' written notice to the Trustee,  the Class A-1 Trustee,  the
      Class B Trustee,  the Class C-1  Trustee,  the Class C-2  Trustee and each
      other Class D Certificateholder,  PROVIDED that (A) if prior to the end of
      such  ten-day  period any other Class D  Certificateholder  notifies  such
      purchasing   Class  D   Certificateholder   that   such   other   Class  D
      Certificateholder  wants to participate in such purchase,  then such other
      Class  D   Certificateholder   may  join  with  the  purchasing   Class  D
      Certificateholder  to  purchase  all,  but  not  less  than  all,  of  the
      Applicable  Certificates,   the  Class  A-1  Certificates,   the  Class  B
      Certificates,  the Class C-1  Certificates  and the Class C-2 Certificates
      pro rata based on the Fractional  Undivided  Interest in the Class D Trust
      held by each such Class D Certificateholder and (B) if prior to the end of
      such ten-day  period any other Class D  Certificateholder  fails to notify
      the  purchasing   Class  D   Certificateholder   of  such  other  Class  D
      Certificateholder's  desire to participate  in such a purchase,  then such
      other  Class D  Certificateholder  shall  lose its right to  purchase  the
      Applicable  Certificates,   the  Class  A-1  Certificates,   the  Class  B
      Certificates,  the Class C-1  Certificates  and the Class C-2 Certificates
      pursuant to this Section 4.01(b).

            The purchase price with respect to the Applicable Certificates shall
be equal to the Pool  Balance  of the  Applicable  Certificates,  together  with
accrued  and  unpaid  interest  thereon  to the date of such  purchase,  without
premium,  but including any other amounts then due and payable to the Applicable
Certificateholders  under the Agreement, the Intercreditor Agreement, the Escrow
Agreement  or  any  Note  Document  or  on  or  in  respect  of  the  Applicable
Certificates;   PROVIDED,   HOWEVER,   that  no  such   purchase  of  Applicable
Certificates  shall be effective  unless the  purchaser(s)  shall certify to the
Trustee that  contemporaneously  with such purchase,  such purchaser(s) is (are)
purchasing, pursuant to the terms of the Agreement and the Other Agreements, (A)
in the case of any purchase of the  Applicable  Certificates  pursuant to clause
(b)(i) above, all of the Applicable Certificates, or (B) in all other cases, the
Applicable Certificates,  the Class A-1 Certificates,  the Class B Certificates,
the Class C-1 Certificates and the Class C-2 Certificates that are senior to the
securities held by such purchaser(s).  Each payment of the purchase price of the
Applicable  Certificates  referred to in the first sentence hereof shall be made
to an account or accounts designated by the Trustee and each such purchase shall
be   subject   to  the  terms  of  this   Section   4.01(b).   Each   Applicable
Certificateholder  agrees by its acceptance of its Applicable  Certificate  that
(at any time after the  occurrence and during the  continuation  of a Triggering
Event) it will, upon payment from such Class A-1  Certificateholder(s),  Class B
Certificateholder(s),     Class    C-1    Certificateholder(s),     Class    C-2
Certificateholder(s) or Class D Certificateholder(s), as the case may be, of the
purchase price set forth in the first sentence of this paragraph,  (i) forthwith
sell, assign, transfer and convey to the purchaser(s) thereof (without recourse,
representation  or  warranty  of any kind  except for its own acts),  all of the
right, title,  interest and obligation of such Applicable  Certificateholder  in


<PAGE>

the Agreement,  the Escrow Agreement,  the Deposit Agreement,  the Intercreditor
Agreement,  the  Liquidity  Facility,  the  NPA,  the  Note  Documents  and  all
Applicable   Certificates   and  Escrow   Receipts   held  by  such   Applicable
Certificateholder  (excluding  all right,  title and  interest  under any of the
foregoing  to the extent  such right,  title or  interest is with  respect to an
obligation  not then due and payable as respects any action or inaction or state
of affairs  occurring prior to such sale) (and the purchaser shall assume all of
such Applicable Certificateholder's  obligations under the Agreement, the Escrow
Agreement,  the Deposit Agreement,  the Intercreditor  Agreement,  the Liquidity
Facility,  the NPA, the Note Documents and all such Applicable  Certificates and
Escrow Receipts),  (ii) if such purchase occurs after a record date specified in
Section  2.03 of the Escrow  Agreement  relating to the  distribution  of unused
Deposits  and/or accrued and unpaid  interest on Deposits and prior to or on the
related distribution date thereunder, forthwith turn over to the purchaser(s) of
its Applicable  Certificate  all amounts,  if any,  received by it on account of
such  distribution,  and  (iii) if such  purchase  occurs  after a  Record  Date
relating to any distribution and prior to or on the related  Distribution  Date,
forthwith  turn  over to the  purchaser(s)  of its  Applicable  Certificate  all
amounts, if any, received by it on account of such distribution.  The Applicable
Certificates  will be deemed to be purchased on the date payment of the purchase
price is made  notwithstanding the failure of the Applicable  Certificateholders
to deliver any Applicable  Certificates and, upon such a purchase,  (I) the only
rights of the  Applicable  Certificateholders  will be to deliver the Applicable
Certificates  to the  purchaser(s)  and  receive  the  purchase  price  for such
Applicable  Certificates  and (II) if the  purchaser(s)  shall so request,  such
Applicable Certificateholder will comply with all the provisions of Section 3.04
of the Basic Agreement to enable new Applicable Certificates to be issued to the
purchaser in such denominations as it shall request. All charges and expenses in
connection  with the issuance of any such new Applicable  Certificates  shall be
borne by the purchaser thereof.

            As used in this Section 4.01 and elsewhere in this Trust Supplement,
the terms "Class A-1  Certificate",  "Class A-1  Certificateholder",  "Class A-1
Trust", "Class A-1 Trust Agreement", "Class A-1 Trustee", "Class B Certificate",
"Class B  Certificateholder",  "Class B Trust",  "Class B  Trustee",  "Class C-1
Certificate",  "Class  C-1  Certificateholder",  "Class C-1  Trust",  "Class C-1
Trustee",  "Class C-2 Certificate",  "Class C-2  Certificateholder",  "Class C-2
Trust",  "Class C-2 Trustee",  "Class D Certificate" and "Class D Trust",  shall
have  the  respective  meanings  assigned  to such  terms  in the  Intercreditor
Agreement.

            (c) This Section 4.01 supersedes and replaces Section 6.01(b) of the
Basic Agreement, with respect to the Applicable Trust.

            Section  4.02.  AMENDMENT  OF SECTION  6.05 OF THE BASIC  Agreement.
Section  6.05 of the Basic  Agreement  shall be  amended,  with  respect  to the
Applicable  Trust, by deleting the phrase "and thereby annul any Direction given
by such  Certificateholders  or the Trustee to such Loan  Trustee  with  respect
thereto," set forth in the first sentence thereof.


<PAGE>

                                    ARTICLE V
                                   THE TRUSTEE

            Section 5.01. DELIVERY OF DOCUMENTS; DELIVERY DATES. (a) The Trustee
is hereby directed (i) to execute and deliver the Intercreditor  Agreement,  the
Escrow  Agreement and the NPA on or prior to the Issuance Date, each in the form
delivered  to the Trustee by the  Company,  and (ii)  subject to the  respective
terms  thereof,  to perform  its  obligations  thereunder.  Upon  request of the
Company and the  satisfaction or waiver of the closing  conditions  specified in
the Underwriting Agreement,  the Trustee shall execute,  deliver,  authenticate,
issue and sell Applicable  Certificates in authorized  denominations equaling in
the aggregate the amount set forth,  with respect to the  Applicable  Trust,  in
Schedule  I to  the  Underwriting  Agreement  evidencing  the  entire  ownership
interest in the  Applicable  Trust,  which amount  equals the maximum  aggregate
principal  amount of  Equipment  Notes  which may be  purchased  by the  Trustee
pursuant to the NPA. Except as provided in Sections 3.03, 3.04, 3.05 and 3.06 of
the Basic  Agreement,  the Trustee  shall not execute,  authenticate  or deliver
Applicable  Certificates  in excess of the  aggregate  amount  specified in this
paragraph.  The  provisions  of this Section  5.01(a)  supersede and replace the
first sentence of Section  3.02(a) of the Basic  Agreement,  with respect to the
Applicable Trust.

            (b) On or after the Issuance Date, the Company may deliver from time
to time to the  Trustee a  Delivery  Notice  relating  to one or more  Equipment
Notes.  After  receipt  of a  Delivery  Notice and in any case no later than one
Business Day prior to a Scheduled Delivery Date as to which such Delivery Notice
relates  (the  "APPLICABLE  DELIVERY  DATE"),  the  Trustee  shall  (as and when
specified in the Delivery  Notice) instruct the Escrow Agent to provide a Notice
of Purchase Withdrawal to the Depositary requesting (A) the withdrawal of one or
more Deposits on the  Applicable  Delivery  Date in  accordance  with and to the
extent permitted by the terms of the Escrow Agreement and the Deposit  Agreement
and (B) the  payment of all,  or a portion,  of such  Deposit or  Deposits in an
amount equal in the aggregate to the purchase price of such  Equipment  Notes to
or on behalf of the Owner  Trustee or the Company,  as the case may be,  issuing
such Equipment Notes, all as shall be described in the Delivery Notice; PROVIDED
that, if the Issuance Date is an Applicable Delivery Date, the Trustee shall not
so instruct the Escrow Agent,  and the purchase  price of such  Equipment  Notes
shall be paid  from a  portion  of the  proceeds  of the sale of the  Applicable
Certificates. The Trustee shall (as and when specified in such Delivery Notice),
subject  to the  conditions  set forth in  Section 2 of the NPA,  enter into and
perform its  obligations  under the  Participation  Agreement  specified in such
Delivery  Notice  (the  "APPLICABLE  PARTICIPATION  AGREEMENT")  and cause  such
certificates,  documents and legal  opinions  relating to the Trustee to be duly
delivered as required by the Applicable  Participation Agreement. If at any time
prior to the  Applicable  Delivery  Date,  the  Trustee  receives  a  notice  of
postponement pursuant to Section 1(e) or 1(f) of the NPA, then the Trustee shall
give the Depositary  (with a copy to the Escrow Agent) a notice of  cancellation
of such Notice of Purchase  Withdrawal  relating to such  Deposit or Deposits on
such Applicable Delivery Date. Upon satisfaction of the conditions  specified in
the NPA and the Applicable  Participation  Agreement, the Trustee shall purchase
the applicable  Equipment  Notes with the proceeds of the  withdrawals of one or
more Deposits made on the Applicable  Delivery Date in accordance with the terms
of the Deposit  Agreement and the Escrow  Agreement (or, if the Issuance Date is
the  Applicable  Delivery  Date with  respect to such  Applicable  Participation
Agreement,  from  a  portion  of the  proceeds  of the  sale  of the  Applicable


<PAGE>

Certificates).  The  purchase  price of such  Equipment  Notes  shall  equal the
principal amount of such Equipment Notes. Amounts withdrawn from such Deposit or
Deposits in excess of the purchase price of the Equipment Notes or to the extent
not  applied  on the  Applicable  Delivery  Date to the  purchase  price  of the
Equipment Notes, shall be re-deposited by the Trustee with the Depositary on the
Applicable  Delivery Date in accordance with the terms of the Deposit Agreement.
The provisions of this Section  5.01(b)  supersede and replace the provisions of
Section 2.02 of the Basic  Agreement with respect to the Applicable  Trust,  and
all provisions of the Basic  Agreement  relating to Postponed  Notes and Section
2.02 of the Basic Agreement shall not apply to the Applicable Trust.

            (c) The Trustee  acknowledges its acceptance of all right, title and
interest in and to the Trust Property to be acquired pursuant to Section 5.01(b)
of this Trust Supplement,  the NPA and each Applicable  Participation Agreement,
and declares that it holds and will hold such right,  title and interest for the
benefit of all present and future Applicable Certificateholders, upon the trusts
set forth in this  Agreement.  By its  acceptance of an Applicable  Certificate,
each initial Applicable Certificateholder, as a grantor of the Applicable Trust,
joins with the Trustee in the creation of the Applicable  Trust.  The provisions
of this Section 5.01(c)  supersede and replace the provisions of Section 2.03 of
the Basic Agreement, with respect to the Applicable Trust.

            Section  5.02.  WITHDRAWAL  OF  DEPOSITS.  If  any  Deposits  remain
outstanding  on the Business Day next  succeeding  the Cut-off Date, the Trustee
shall give the Escrow Agent  notice that the  Trustee's  obligation  to purchase
Equipment  Notes under the NPA has  terminated  and instruct the Escrow Agent to
provide a notice of Final Withdrawal to the Depositary substantially in the form
of Exhibit B to the Deposit Agreement (the "FINAL WITHDRAWAL NOTICE").

            Section 5.03. THE TRUSTEE. (a) Subject to Section 5.04 of this Trust
Supplement  and Section 7.15 of the Basic  Agreement,  the Trustee  shall not be
responsible  in any  manner  whatsoever  for or in respect  of the  validity  or
sufficiency  of this Trust  Supplement,  the Deposit  Agreement,  the NPA or the
Escrow  Agreement or the due  execution  hereof or thereof by the Company or the
other  parties  thereto  (other than the  Trustee),  or for or in respect of the
recitals and statements  contained herein or therein,  all of which recitals and
statements  are made  solely by the  Company,  except  that the  Trustee  hereby
represents and warrants that each of this Trust Supplement, the Basic Agreement,
each Applicable Certificate, the Intercreditor Agreement, the NPA and the Escrow
Agreement  has been  executed  and  delivered by one of its officers who is duly
authorized to execute and deliver such document on its behalf.

            (b)  Except as herein  otherwise  provided  and  except  during  the
continuation  of an Event of Default in respect of the Applicable  Trust created
hereby,  no duties,  responsibilities  or liabilities  are assumed,  or shall be
construed to be assumed, by the Trustee by reason of this Trust Supplement other
than as set forth in the  Agreement,  and this Trust  Supplement is executed and
accepted on behalf of the Trustee,  subject to all the terms and  conditions set
forth in the  Agreement,  as fully to all intents as if the same were herein set
forth at length.

            Section 5.04.  REPRESENTATIONS  AND  WARRANTIES OF THE TRUSTEE.  The
Trustee hereby represents and warrants that:


<PAGE>

            (a) the  Trustee  has  full  power,  authority  and  legal  right to
      execute,  deliver and perform  this Trust  Supplement,  the  Intercreditor
      Agreement,  the Escrow Agreement,  the NPA and the Note Documents to which
      it is or is to  become a party  and has  taken  all  necessary  action  to
      authorize  the  execution,  delivery and  performance  by it of this Trust
      Supplement, the Intercreditor Agreement, the Escrow Agreement, the NPA and
      the Note Documents to which it is or is to become a party;

            (b) the execution,  delivery and  performance by the Trustee of this
      Trust Supplement,  the Intercreditor  Agreement, the Escrow Agreement, the
      NPA and the Note Documents to which it is or is to become a party (i) will
      not violate any provision of any United  States  federal law or the law of
      the state of the United  States where it is located  governing the banking
      and trust powers of the Trustee or any order, writ, judgment, or decree of
      any court,  arbitrator or governmental authority applicable to the Trustee
      or any of its assets,  (ii) will not violate any provision of the articles
      of association  or by-laws of the Trustee,  and (iii) will not violate any
      provision of, or  constitute,  with or without  notice or lapse of time, a
      default under,  or result in the creation or imposition of any lien on any
      properties  included in the Trust  Property  pursuant to the provisions of
      any mortgage, indenture, contract, agreement or other undertaking to which
      it is a party,  which  violation,  default  or lien  could  reasonably  be
      expected to have an adverse effect on the Trustee's performance or ability
      to perform  its duties  hereunder  or  thereunder  or on the  transactions
      contemplated herein or therein;

            (c) the execution,  delivery and  performance by the Trustee of this
      Trust Supplement,  the Intercreditor  Agreement, the Escrow Agreement, the
      NPA and the Note Documents to which it is or is to become a party will not
      require the authorization,  consent,  or approval of, the giving of notice
      to, the filing or registration  with, or the taking of any other action in
      respect of, any  governmental  authority or agency of the United States or
      the state of the United States where it is located  regulating the banking
      and corporate trust activities of the Trustee; and

            (d) this Trust Supplement,  the Intercreditor  Agreement, the Escrow
      Agreement, the NPA and the Note Documents to which it is or is to become a
      party have been, or will be, as applicable, duly executed and delivered by
      the Trustee and constitute, or will constitute, as applicable,  the legal,
      valid and binding  agreements  of the Trustee,  enforceable  against it in
      accordance  with  their  respective   terms;   PROVIDED,   HOWEVER,   that
      enforceability  may be limited by (i) applicable  bankruptcy,  insolvency,
      reorganization,  moratorium  or  similar  laws  affecting  the  rights  of
      creditors generally and (ii) general principles of equity.

            Section 5.05. TRUSTEE LIENS. The Trustee in its individual  capacity
agrees,  in addition to the  agreements  contained  in Section 7.17 of the Basic
Agreement,  that it will at its own cost and expense promptly take any action as
may be necessary to duly discharge and satisfy in full any Trustee's Liens on or
with respect to the Trust Property which is  attributable  to the Trustee in its
individual  capacity and which is unrelated to the transactions  contemplated by
the Intercreditor Agreement or the NPA.


<PAGE>

                                   ARTICLE VI
                  ADDITIONAL AMENDMENT; SUPPLEMENTAL AGREEMENTS

            Section  6.01.  AMENDMENT  OF SECTION  5.02 OF THE BASIC  Agreement.
Section  5.02 of the Basic  Agreement  shall be  amended,  with  respect  to the
Applicable Trust, by (i) replacing the phrase "of the Note Documents and of this
Agreement"  set forth in  paragraph  (b)  thereof  with the  phrase "of the Note
Documents,  of the NPA and of this  Agreement" and (ii) replacing the phrase "of
this Agreement and any Note Document" set forth in the last paragraph of Section
5.02 with the phrase "of this Agreement, the NPA and any Note Document".

            Section 6.02.  SUPPLEMENTAL AGREEMENTS WITHOUT CONSENT OF APPLICABLE
CERTIFICATEHOLDERS.  Without  limitation of Section 9.01 of the Basic Agreement,
under the terms of, and subject to the limitations contained in, Section 9.01 of
the Basic  Agreement,  the Company may (but will not be  required  to),  and the
Trustee (subject to Section 9.03 of the Basic Agreement) shall, at the Company's
request,  at any  time  and  from  time to  time,  (i)  enter  into  one or more
agreements  supplemental  to the  Escrow  Agreement,  the  NPA  or  the  Deposit
Agreement,  for any of the purposes set forth in clauses (1) through (9) of such
Section  9.01,  and (without  limitation of the foregoing or Section 9.01 of the
Basic  Agreement)  (a)  clauses (2) and (3) of such  Section  9.01 shall also be
deemed to include the Company's  obligations  under (in the case of clause (2)),
and the  Company's  rights and powers  conferred by (in the case of clause (3)),
the NPA, and (b)  references in clauses (4), (6) and (7) of such Section 9.01 to
"any Intercreditor  Agreement or any Liquidity Facility" shall also be deemed to
refer to "the  Intercreditor  Agreement,  the  Liquidity  Facility,  the  Escrow
Agreement,  the NPA or the  Deposit  Agreement"  and (ii) enter into one or more
agreements  supplemental  to this  Agreement  to provide for the  formation of a
Class D Trust, the issuance of Class D Certificates, the purchase by the Class D
Trust of  Equipment  Notes and other  matters  incidental  thereto or  otherwise
contemplated by Section 2.01(b) of the Basic Agreement.

            Section  6.03.  SUPPLEMENTAL  AGREEMENTS  WITH CONSENT OF APPLICABLE
CERTIFICATEHOLDERS.  Without  limitation of Section 9.02 of the Basic Agreement,
the provisions of Section 9.02 of the Basic  Agreement shall apply to agreements
or  amendments  for the purpose of adding any  provisions  to or changing in any
manner or eliminating any of the provisions of the Escrow Agreement, the Deposit
Agreement or the NPA or modifying  in any manner the rights and  obligations  of
the  Applicable  Certificateholders  under the  Escrow  Agreement,  the  Deposit
Agreement or the NPA;  provided that the  provisions  of Section  9.02(1) of the
Basic Agreement shall be deemed to include reductions in any manner of, or delay
in the timing of, any receipt by the Applicable  Certificateholders  of payments
upon the Deposits.


                                   ARTICLE VII
                              TERMINATION OF TRUST

            Section  7.01.   TERMINATION  OF  THE  APPLICABLE   TRUST.  (a)  The
respective  obligations and responsibilities of the Company and the Trustee with
respect to the  Applicable  Trust  shall  terminate  upon the earlier of (A) the
completion  of the  assignment,  transfer and  discharge  described in the first
sentence of the  immediately  following  paragraph and (B)  distribution  to all


<PAGE>

Applicable  Certificateholders  and the  Trustee of all  amounts  required to be
distributed  to them  pursuant  to this  Agreement  and the  disposition  of all
property held as part of the Trust Property; PROVIDED, HOWEVER, that in no event
shall the Applicable Trust continue beyond one hundred ten (110) years following
the date of the execution of this Trust Supplement.

            Upon the earlier of (i) the first  Business Day following  March 31,
2001,  or, if later,  the fifth  Business  Day  following  the  Delivery  Period
Termination  Date and (ii) the fifth  Business Day following the date on which a
Triggering Event occurs (such date, the "TRANSFER DATE"), or, if later, the date
on which all of the conditions set forth in the immediately  following  sentence
have been  satisfied,  the  Trustee  is  hereby  directed  (subject  only to the
immediately following sentence) to, and the Company shall direct the institution
that will serve as the Related  Trustee  under the Related  Pass  Through  Trust
Agreement  to,  execute and deliver the  Assignment  and  Assumption  Agreement,
pursuant  to which the Trustee  shall  assign,  transfer  and deliver all of the
Trustee's right, title and interest to the Trust Property to the Related Trustee
under the Related  Pass  Through  Trust  Agreement.  The Trustee and the Related
Trustee shall execute and deliver the Assignment  and Assumption  Agreement upon
the satisfaction of the following conditions:

            (i) The Trustee, the Related Trustee and each of the Rating Agencies
      then rating the Applicable  Certificates  shall have received an Officer's
      Certificate and an Opinion of Counsel dated the date of the Assignment and
      Assumption  Agreement and each satisfying the requirements of Section 1.02
      of the Basic Agreement, which Opinion of Counsel shall be substantially to
      the effect set forth below and may be relied upon by the Beneficiaries (as
      defined in the Assignment and Assumption Agreement):

                  (I) Upon the  execution  and  delivery  thereof by the parties
            thereto  in  accordance  with the  terms of this  Agreement  and the
            Related Pass Through Trust Agreement,  the Assignment and Assumption
            Agreement will  constitute the valid and binding  obligation of each
            of the  parties  thereto  enforceable  against  each  such  party in
            accordance with its terms;

                  (II) Upon the  execution  and delivery of the  Assignment  and
            Assumption  Agreement in accordance with the terms of this Agreement
            and the Related Pass Through Trust Agreement, each of the Applicable
            Certificates  then  Outstanding  will be entitled to the benefits of
            the Related Pass Through Trust Agreement;

                  (III) The Related Trust is not required to be registered as an
            investment  company  under the  Investment  Company Act of 1940,  as
            amended;

                  (IV) The Related Pass Through Trust Agreement  constitutes the
            valid and binding obligation of the Company  enforceable against the
            Company in accordance with its terms; and

                  (V) Neither the execution and delivery of the  Assignment  and
            Assumption  Agreement in accordance with the terms of this Agreement
            and the Related Pass Through Trust  Agreement,  nor the consummation


<PAGE>

            by the  parties  thereto  of  the  transactions  contemplated  to be
            consummated  thereunder on the date thereof, will violate any law or
            governmental  rule or  regulation  of the  State  of New York or the
            United  States of America  known to such counsel to be applicable to
            the  transactions  contemplated  by the  Assignment  and  Assumption
            Agreement.

            (ii) The Trustee and the Company  shall have  received (x) a copy of
      the articles of incorporation  and bylaws of the Related Trustee certified
      as of the Transfer  Date by the  Secretary or Assistant  Secretary of such
      institution  and  (y) a copy  of the  filing  (including  all  attachments
      thereto) made by the  institution  serving as the Related Trustee with the
      Office of the Superintendent, State of New York Banking Department for the
      qualification  of the Related Trustee under Section 131(3) of the New York
      Banking Law.

Upon the execution of the  Assignment  and  Assumption  Agreement by the parties
thereto,   the   Applicable   Trust   shall  be   terminated,   the   Applicable
Certificateholders  shall receive  beneficial  interests in the Related Trust in
exchange for their interests in the Applicable  Trust equal to their  respective
beneficial  interests in the Applicable  Trust,  and the Outstanding  Applicable
Certificates representing Fractional Undivided Interests in the Applicable Trust
shall be deemed for all purposes of this  Agreement and the Related Pass Through
Trust Agreement,  without further signature or action of any party or Applicable
Certificateholder, to be certificates representing the same fractional undivided
interests in the Related  Trust and its trust  property.  By  acceptance  of its
Applicable  Certificate,  each  Applicable  Certificateholder  consents  to such
assignment,  transfer and  delivery of the Trust  Property to the trustee of the
Related Trust upon the execution and delivery of the  Assignment  and Assumption
Agreement.

            In connection  with the  occurrence of the event set forth in clause
(B) above,  notice of such  termination,  specifying the Distribution  Date upon
which  the  Applicable   Certificateholders   may  surrender  their   Applicable
Certificates  to  the  Trustee  for  payment  of  the  final   distribution  and
cancellation,   shall  be  mailed   promptly  by  the   Trustee  to   Applicable
Certificateholders not earlier than the 60th day and not later than the 15th day
next preceding such final Distribution Date specifying (A) the Distribution Date
upon which the proposed  final payment of the  Applicable  Certificates  will be
made upon presentation and surrender of Applicable Certificates at the office or
agency of the Trustee  therein  specified,  (B) the amount of any such  proposed
final  payment,  and (C) that  the  Record  Date  otherwise  applicable  to such
Distribution Date is not applicable,  payments being made only upon presentation
and  surrender  of the  Applicable  Certificates  at the office or agency of the
Trustee therein  specified.  The Trustee shall give such notice to the Registrar
at the  time  such  notice  is  given  to  Applicable  Certificateholders.  Upon
presentation  and surrender of the Applicable  Certificates  in accordance  with
such  notice,   the  Trustee  shall  cause  to  be   distributed  to  Applicable
Certificateholders such final payments.

            In the event that all of the Applicable Certificateholders shall not
surrender their Applicable Certificates for cancellation within six months after
the date specified in the above-mentioned written notice, the Trustee shall give
a second  written  notice  to the  remaining  Applicable  Certificateholders  to
surrender their  Applicable  Certificates for cancellation and receive the final
distribution  with respect thereto.  No additional  interest shall accrue on the


<PAGE>

Applicable  Certificates  after the  Distribution  Date  specified  in the first
written notice.  In the event that any money held by the Trustee for the payment
of distributions on the Applicable  Certificates  shall remain unclaimed for two
years (or such lesser time as the Trustee shall be satisfied,  after sixty days'
notice from the Company, is one month prior to the escheat period provided under
applicable  law) after the final  distribution  date with respect  thereto,  the
Trustee shall pay to each Loan Trustee the appropriate  amount of money relating
to such Loan Trustee and shall give written  notice thereof to the related Owner
Trustees, the Owner Participants and the Company.

            (b) The  provisions  of this Section 7.01  supersede and replace the
provisions of Section 11.01 of the Basic Agreement in its entirety, with respect
to the Applicable Trust.


                                  ARTICLE VIII
                            MISCELLANEOUS PROVISIONS

            Section 8.01. BASIC AGREEMENT RATIFIED.  Except and so far as herein
expressly  provided,  all of the  provisions,  terms and conditions of the Basic
Agreement are in all respects  ratified and confirmed;  and the Basic  Agreement
and this Trust Supplement shall be taken, read and construed as one and the same
instrument.  All  replacements of provisions of, and other  modifications of the
Basic  Agreement set forth in this Trust  Supplement  are solely with respect to
the Applicable Trust.

            SECTION 8.02.  GOVERNING  LAW. THE AGREEMENT AND, UNTIL THE TRANSFER
DATE,  THE  APPLICABLE  CERTIFICATES  SHALL  BE  GOVERNED  BY AND  CONSTRUED  IN
ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE.  THIS SECTION 8.02 SUPERSEDES
AND  REPLACES  SECTION  12.05  OF  THE  BASIC  AGREEMENT,  WITH  RESPECT  TO THE
APPLICABLE TRUST.

            Section 8.03.  EXECUTION IN COUNTERPARTS.  This Trust Supplement may
be executed in any number of  counterparts,  each of which shall be an original,
but such counterparts shall together constitute but one and the same instrument.

            Section 8.04.  INTENTION OF PARTIES.  The parties hereto intend that
the  Applicable  Trust be classified  for U.S.  federal income tax purposes as a
grantor trust under  Subpart E, Part I of  Subchapter J of the Internal  Revenue
Code of  1986,  as  amended,  and not as a trust  or  association  taxable  as a
corporation or as a partnership. Each Applicable Certificateholder and Investor,
by its  acceptance  of  its  Applicable  Certificate  or a  beneficial  interest
therein,  agrees to treat the  Applicable  Trust as a grantor trust for all U.S.
federal, state and local income tax purposes. The powers granted and obligations
undertaken pursuant to the Agreement shall be so construed so as to further such
intent.


<PAGE>

            IN WITNESS  WHEREOF,  the Company  and the Trustee  have caused this
Trust Supplement to be duly executed by their  respective  officers thereto duly
authorized, as of the day and year first written above.

                                    CONTINENTAL AIRLINES, INC.


                                    By:_______________________________________
                                       Name:  Gerald Laderman
                                       Title: Senior Vice President - Finance



                                    WILMINGTON TRUST COMPANY,
                                         as Trustee


                                    By:_______________________________________
                                       Name:
                                       Title:


<PAGE>

                                    EXHIBIT A
                                    ---------

                               FORM OF CERTIFICATE

Certificate
No. __

            [Unless   this   certificate   is   presented   by   an   authorized
representative of The Depository Trust Company, a New York corporation  ("DTC"),
to Issuer or its agent for  registration of transfer,  exchange or payment,  and
any certificate  issued is registered in the name of Cede & Co. or in such other
name as is requested by an authorized  representative of DTC (and any payment is
made to Cede & Co. or to such  other  entity as is  requested  by an  authorized
representative  of DTC),  ANY TRANSFER,  PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL  inasmuch the registered owner hereof,
Cede & Co., has an interest herein.]*



             CONTINENTAL AIRLINES PASS THROUGH TRUST 2000-1A-2-O

   7.918% Continental Airlines Pass Through Certificate, Series 2000-1A-2-O
                          Issuance Date: March 15, 2000

                      Final Maturity Date: November 1, 2011

          Evidencing   A   Fractional   Undivided   Interest   In  The
          Continental  Airlines  Pass Through Trust  2000-1A-2-O,  The
          Property Of Which Shall Include Certain Equipment Notes Each
          Secured  By An  Aircraft  Leased To Or Owned By  Continental
          Airlines, Inc.

                      $_____ Fractional Undivided Interest
          representing .0008485219% of the Trust per $1,000 face amount

            THIS  CERTIFIES  THAT  __________,   for  value  received,   is  the
registered  owner  of  a  $_____   (_____________________   dollars)  Fractional
Undivided  Interest in the Continental  Airlines Pass Through Trust  2000-1A-2-O
(the "TRUST") created by Wilmington  Trust Company,  as trustee (the "Trustee"),
pursuant to a Pass Through Trust Agreement,  dated as of September 25, 1997 (the
"BASIC  AGREEMENT"),  between the  Trustee and  Continental  Airlines,  Inc.,  a
Delaware  corporation (the  "COMPANY"),  as supplemented by Trust Supplement No.
2000-1A-2-O  thereto,  dated as of March 15, 2000 (the "TRUST  SUPPLEMENT"  and,
together with the Basic Agreement, the "AGREEMENT"), between the Trustee and the
Company, a summary of certain of the pertinent  provisions of which is set forth
below. To the extent not otherwise  defined herein,  the capitalized  terms used

--------
*     This legend to appear on Book-Entry Certificates to be deposited with
the Depository Trust Company.


<PAGE>

herein have the meanings assigned to them in the Agreement.  This Certificate is
one of the  duly  authorized  Certificates  designated  as  "7.918%  Continental
Airlines  Pass Through  Certificates,  Series  2000-1A-2-O"  (herein  called the
"CERTIFICATES").  This  Certificate is issued under and is subject to the terms,
provisions and conditions of the Agreement.  By virtue of its acceptance hereof,
the holder of this Certificate (the  "CERTIFICATEHOLDER"  and, together with all
other holders of  Certificates  issued by the Trust,  the  "CERTIFICATEHOLDERS")
assents to and agrees to be bound by the  provisions  of the  Agreement  and the
Intercreditor  Agreement.  The property of the Trust includes certain  Equipment
Notes and all rights of the Trust to receive  payments  under the  Intercreditor
Agreement and the Liquidity Facility (the "TRUST  PROPERTY").  Each issue of the
Equipment  Notes is secured by, among other  things,  a security  interest in an
Aircraft leased to or owned by the Company.

            The Certificates  represent  Fractional  Undivided  Interests in the
Trust and the Trust Property and have no rights, benefits or interest in respect
of any  other  separate  trust  established  pursuant  to the terms of the Basic
Agreement for any other series of certificates issued pursuant thereto.

            Subject to and in accordance with the terms of the Agreement and the
Intercreditor Agreement, from funds then available to the Trustee, there will be
distributed  on  each  May 1 and  November  1 (a  "REGULAR  DISTRIBUTION  Date")
commencing  May 1,  2000,  to the  Person  in whose  name  this  Certificate  is
registered  at the  close of  business  on the 15th day  preceding  the  Regular
Distribution  Date,  an amount  in  respect  of the  Scheduled  Payments  on the
Equipment Notes due on such Regular  Distribution Date, the receipt of which has
been confirmed by the Trustee,  equal to the product of the percentage  interest
in the Trust  evidenced  by this  Certificate  and an amount equal to the sum of
such  Scheduled  Payments.  Subject to and in  accordance  with the terms of the
Agreement and the Intercreditor Agreement, in the event that Special Payments on
the Equipment  Notes are received by the Trustee,  from funds then  available to
the Trustee,  there shall be distributed on the applicable Special  Distribution
Date, to the Person in whose name this Certificate is registered at the close of
business on the 15th day preceding the Special  Distribution  Date, an amount in
respect of such Special  Payments on the Equipment  Notes,  the receipt of which
has been  confirmed  by the  Trustee,  equal to the  product  of the  percentage
interest in the Trust  evidenced by this  Certificate and an amount equal to the
sum of such Special  Payments so  received.  If a Regular  Distribution  Date or
Special  Distribution Date is not a Business Day,  distribution shall be made on
the immediately following Business Day with the same force and effect as if made
on such Regular  Distribution Date or Special  Distribution Date and no interest
shall accrue  during the  intervening  period.  The Trustee shall mail notice of
each  Special  Payment  and  the  Special  Distribution  Date  therefor  to  the
Certificateholder of this Certificate.

            Distributions  on this  Certificate  will be made by the  Trustee by
check mailed to the Person entitled thereto,  without  presentation or surrender
of this  Certificate  or the making of any  notation  hereon,  except  that with
respect to Certificates  registered on the Record Date in the name of a Clearing
Agency  (or its  nominee),  such  distribution  shall be made by wire  transfer.
Except as otherwise provided in the Agreement and notwithstanding the above, the
final  distribution on this  Certificate will be made after notice mailed by the
Trustee of the  pendency of such  distribution  and only upon  presentation  and


<PAGE>

surrender of this  Certificate at the office or agency of the Trustee  specified
in such notice.

            The  Certificates  do not  represent a direct  obligation  of, or an
obligation  guaranteed  by, or an interest in, the Company or the Trustee or any
affiliate thereof. The Certificates are limited in right of payment, all as more
specifically set forth on the face hereof and in the Agreement.  All payments or
distributions made to Certificateholders  under the Agreement shall be made only
from the Trust  Property  and only to the  extent  that the  Trustee  shall have
sufficient  income or proceeds from the Trust  Property to make such payments in
accordance  with the  terms of the  Agreement.  Each  Certificateholder  of this
Certificate,  by its acceptance  hereof,  agrees that it will look solely to the
income  and  proceeds  from the  Trust  Property  to the  extent  available  for
distribution  to such  Certificateholder  as  provided  in the  Agreement.  This
Certificate does not purport to summarize the Agreement and reference is made to
the Agreement for information with respect to the interests,  rights,  benefits,
obligations,  privileges,  and duties evidenced  hereby. A copy of the Agreement
may be examined  during normal  business  hours at the  principal  office of the
Trustee,  and at such other places,  if any,  designated by the Trustee,  by any
Certificateholder upon request.

            The Agreement permits, with certain exceptions therein provided, the
amendment  thereof and the  modification  of the rights and  obligations  of the
Company and the rights of the Certificateholders under the Agreement at any time
by the  Company  and the  Trustee  with the  consent  of the  Certificateholders
holding Certificates  evidencing  Fractional Undivided Interests aggregating not
less  than a  majority  in  interest  in the  Trust.  Any  such  consent  by the
Certificateholder  of this  Certificate  shall be conclusive and binding on such
Certificateholder and upon all future Certificateholders of this Certificate and
of any  Certificate  issued upon the transfer hereof or in exchange hereof or in
lieu  hereof  whether  or not  notation  of  such  consent  is  made  upon  this
Certificate.  The  Agreement  also  permits the  amendment  thereof,  in certain
limited  circumstances,  without the consent of the Certificateholders of any of
the Certificates.

            As provided in the Agreement and subject to certain  limitations set
forth therein,  the transfer of this  Certificate is registrable in the Register
upon surrender of this  Certificate for  registration of transfer at the offices
or agencies  maintained by the Trustee in its capacity as  Registrar,  or by any
successor  Registrar,  duly endorsed or accompanied  by a written  instrument of
transfer in form satisfactory to the Trustee and the Registrar, duly executed by
the  Certificateholder   hereof  or  such   Certificateholder's   attorney  duly
authorized in writing,  and thereupon one or more new Certificates of authorized
denominations evidencing the same aggregate Fractional Undivided Interest in the
Trust will be issued to the designated transferee or transferees.

            Under certain  circumstances  set forth in Section 7.01 of the Trust
Supplement, all of the Trustee's right, title and interest to the Trust Property
may be assigned, transferred and delivered to the Related Trustee of the Related
Trust  pursuant  to  the  Assignment   and   Assumption   Agreement.   Upon  the
effectiveness of such Assignment and Assumption Agreement (the "Transfer"),  the
Trust shall be  terminated,  the  Certificateholders  shall  receive  beneficial
interests  in the Related  Trust in exchange  for their  interests  in the Trust
equal to their  respective  beneficial  interests in the Trust, the Certificates
representing Fractional Undivided Interests in the Trust shall be deemed for all


<PAGE>

purposes of the  Agreement  and the Related Pass Through  Trust  Agreement to be
certificates representing the same fractional undivided interests in the Related
Trust and its trust property. Each Certificateholder,  by its acceptance of this
Certificate  or a  beneficial  interest  herein,  agrees  to  be  bound  by  the
Assignment and Assumption Agreement and subject to the terms of the Related Pass
Through Trust Agreement as a  Certificateholder  thereunder.  From and after the
Transfer,  unless and to the extent the context otherwise  requires,  references
herein to the Trust, the Agreement and the Trustee shall  constitute  references
to the Related  Trust,  the Related Pass Through Trust  Agreement and trustee of
the Related Trust, respectively.

            The  Certificates  are  issuable  only  as  registered  Certificates
without coupons in minimum denominations of $1,000 Fractional Undivided Interest
and integral  multiples  thereof except that one  Certificate may be issued in a
different  denomination.  As  provided in the  Agreement  and subject to certain
limitations  therein  set  forth,  the  Certificates  are  exchangeable  for new
Certificates   of  authorized   denominations   evidencing  the  same  aggregate
Fractional   Undivided   Interest   in   the   Trust,   as   requested   by  the
Certificateholder surrendering the same.

            No service charge will be made for any such registration of transfer
or exchange,  but the Trustee shall require payment of a sum sufficient to cover
any tax or governmental charge payable in connection therewith.

            Each  Certificateholder  and  Investor,  by its  acceptance  of this
Certificate  or a  beneficial  interest  herein,  agrees to treat the Trust as a
grantor trust for all U.S. federal, state and local income tax purposes.

            The  Trustee,  the  Registrar,  and any agent of the  Trustee or the
Registrar may treat the person in whose name this  Certificate  is registered as
the owner hereof for all purposes,  and neither the Trustee, the Registrar,  nor
any such agent shall be affected by any notice to the contrary.

            The  obligations and  responsibilities  created by the Agreement and
the  Trust  created   thereby  shall   terminate   upon  the   distribution   to
Certificateholders of all amounts required to be distributed to them pursuant to
the  Agreement  and the  disposition  of all property  held as part of the Trust
Property.

            Any Person  acquiring or accepting  this  Certificate or an interest
herein will, by such  acquisition or acceptance,  be deemed to have  represented
and warranted to and for the benefit of each Owner  Participant  and the Company
that  either:  (i) the assets of an employee  benefit plan subject to Title I of
the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), or of
a plan subject to Section 4975 of the Internal  Revenue Code of 1986, as amended
(the  "CODE"),  have not been used to purchase this  Certificate  or an interest
herein or (ii) the  purchase  and  holding of this  Certificate  or an  interest
herein are exempt from the prohibited transaction  restrictions of ERISA and the
Code pursuant to one or more prohibited  transaction statutory or administrative
exemptions.


<PAGE>

            THE AGREEMENT AND,  UNTIL THE TRANSFER,  THIS  CERTIFICATE  SHALL BE
GOVERNED BY AND CONSTRUED IN  ACCORDANCE  WITH THE LAWS OF THE STATE OF DELAWARE
AND THE  OBLIGATIONS,  RIGHTS AND  REMEDIES  OF THE PARTIES  HEREUNDER  SHALL BE
DETERMINED  IN  ACCORDANCE  WITH SUCH  LAWS.  THE  RELATED  PASS  THROUGH  TRUST
AGREEMENT AND, FROM AND AFTER THE TRANSFER,  THIS CERTIFICATE  SHALL BE GOVERNED
AND  CONSTRUED  IN  ACCORDANCE  WITH THE  LAWS OF THE  STATE OF NEW YORK AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAWS.

            Unless the certificate of authentication hereon has been executed by
the Trustee, by manual signature,  this Certificate shall not be entitled to any
benefit under the Agreement or be valid for any purpose.

            IN WITNESS  WHEREOF,  the Trustee has caused this  Certificate to be
duly executed.

                                    CONTINENTAL AIRLINES PASS THROUGH
                                    TRUST 2000-1A-2-O

                                    By:  WILMINGTON TRUST COMPANY,
                                            as Trustee


                                         By:__________________________________
                                            Name:
                                            Title:


<PAGE>

             FORM OF THE TRUSTEE'S CERTIFICATE OF AUTHENTICATION



This is one of the Certificates referred to in the within-mentioned Agreement.


                                    WILMINGTON TRUST COMPANY,
                                         as Trustee


                                    By:_______________________________________
                                       Name:
                                       Title:


<PAGE>

                                    EXHIBIT B
                                    ---------



                         [DTC Letter of Representations]


<PAGE>

                                    EXHIBIT C
                                    ---------


              FORM OF ASSIGNMENT AND ASSUMPTION AGREEMENT
          Continental Airlines Pass Through Trust 2000-1A-2-O

            ASSIGNMENT AND ASSUMPTION AGREEMENT (2000-1A-2), dated ____________,
____ (the "ASSIGNMENT AGREEMENT"),  between Wilmington Trust Company, a Delaware
banking corporation  ("WTC"), not in its individual capacity except as expressly
provided  herein,  but solely as trustee under the Pass Through Trust  Agreement
dated as of September  25, 1997 (as amended or modified  from time to time,  the
"BASIC  AGREEMENT"),  as  supplemented by the Trust  Supplement No.  2000-1A-2-O
dated  March 15,  2000  (the  "TRUST  SUPPLEMENT"  and  together  with the Basic
Agreement,  the "AGREEMENT") in respect of the Continental Airlines Pass Through
Trust  2000-1A-2-O (the  "ASSIGNOR"),  and Wilmington Trust Company,  a Delaware
banking corporation, not in its individual capacity except as expressly provided
herein,  but solely as trustee under the Basic  Agreement as supplemented by the
Trust  Supplement No.  2000-1A-2-S  dated March 15, 2000 (the "NEW  SUPPLEMENT",
and,  together with the Basic Agreement,  the "NEW AGREEMENT") in respect of the
Continental Airlines Pass Through Trust 2000-1A-2-S (the "ASSIGNEE").

                             W I T N E S S E T H:

            WHEREAS, the parties hereto desire to effect on the date hereof (the
"TRANSFER  DATE") (a) the transfer by the Assignor to the Assignee of all of the
right,  title and  interest of the Assignor in, under and with respect to, among
other things,  the Trust Property and each of the documents listed in Schedule I
hereto (the "SCHEDULED DOCUMENTS") and (b) the assumption by the Assignee of the
obligations  of the  Assignor  (i) under  the  Scheduled  Documents  and (ii) in
respect of the Applicable Certificates issued under the Agreement; and

            WHEREAS,   the  Scheduled   Documents   permit  such  transfer  upon
satisfaction of certain  conditions  heretofore or  concurrently  herewith being
complied with;

            NOW,  THEREFORE,  in consideration of the premises and of the mutual
covenants and agreements herein contained, the parties hereto do hereby agree as
follows  (capitalized  terms used herein without  definition  having the meaning
ascribed thereto in the Agreement):

            1.  ASSIGNMENT.  The  Assignor  does hereby  sell,  assign,  convey,
transfer  and set over  unto the  Assignee  as of the  Transfer  Date all of its
present and future  right,  title and interest in, under and with respect to the
Trust Property and the Scheduled  Documents and each other contract,  agreement,
document or instrument relating to the Trust Property or the Scheduled Documents
(such other contracts, agreements,  documents or instruments,  together with the
Scheduled  Documents,  to be referred to as the "ASSIGNED  DOCUMENTS"),  and any
proceeds therefrom,  together with all documents and instruments  evidencing any
of such right, title and interest.


<PAGE>

            2.  ASSUMPTION.  The Assignee  hereby assumes for the benefit of the
Assignor and each of the parties listed in Schedule II hereto (collectively, the
"BENEFICIARIES")  all of the duties and  obligations  of the Assignor,  whenever
accrued, pursuant to the Assigned Documents and hereby confirms that it shall be
deemed a party to each of the  Assigned  Documents  to which the  Assignor  is a
party and shall be bound by all the terms thereof  (including the agreements and
obligations  of the  Assignor  set forth  therein)  as if  therein  named as the
Assignor.  Further,  the Assignee hereby assumes for the benefit of the Assignor
and the  Beneficiaries  all of the duties and  obligations of the Assignor under
the Outstanding Applicable  Certificates and hereby confirms that the Applicable
Certificates  representing  Fractional  Undivided  Interests under the Agreement
shall be deemed for all purposes of the  Agreement  and the New  Agreement to be
certificates  representing the same fractional undivided interests under the New
Agreement equal to their  respective  beneficial  interests in the trust created
under the Agreement.

            3. EFFECTIVENESS.  This Assignment Agreement shall be effective upon
the execution and delivery  hereof by the parties  hereto,  and each  Applicable
Certificateholder,  by  its  acceptance  of  its  Applicable  Certificate  or  a
beneficial interest therein,  agrees to be bound by the terms of this Assignment
Agreement.

            4. PAYMENTS. The Assignor hereby covenants and agrees to pay over to
the Assignee,  if and when received  following  the Transfer  Date,  any amounts
(including  any sums payable as interest in respect  thereof) paid to or for the
benefit of the Assignor that, under Section 1 hereof, belong to the Assignee.

            5. FURTHER ASSURANCES. The Assignor shall, at any time and from time
to time, upon the request of the Assignee, promptly and duly execute and deliver
any and all such further  instruments and documents and take such further action
as the  Assignee  may  reasonably  request to obtain the full  benefits  of this
Assignment  Agreement and of the right and powers herein  granted.  The Assignor
agrees to deliver any Applicable  Certificates,  and all Trust Property, if any,
then in the physical possession of the Assignor, to the Assignee.

            6.  REPRESENTATIONS AND WARRANTIES.  (a) The Assignee represents and
warrants to the Assignor and each of the Beneficiaries that:

            (i) it has all  requisite  power and  authority  and legal  right to
      enter into and carry out the transactions contemplated hereby and to carry
      out and perform the  obligations  of the "Pass Through  Trustee" under the
      Assigned Documents;

            (ii)  on  and  as  of  the  date  hereof,  the  representations  and
      warranties  of the  Assignee  set  forth  in  Section  7.15  of the  Basic
      Agreement and Section 5.04 of the New Supplement are true and correct.

            (b) The Assignor represents and warrants to the Assignee that:

            (i) it is duly  incorporated,  validly existing and in good standing
      under  the laws of the State of  Delaware  and has the full  trust  power,


<PAGE>

      authority  and legal right under the laws of the State of Delaware and the
      United States  pertaining to its trust and fiduciary powers to execute and
      deliver this Assignment Agreement;

            (ii) the execution and delivery by it of this  Assignment  Agreement
      and the  performance  by it of its  obligations  hereunder  have been duly
      authorized  by it and will not violate  its  articles  of  association  or
      by-laws or the  provisions of any indenture,  mortgage,  contract or other
      agreement to which it is a party or by which it is bound; and

            (iii) this Assignment  Agreement  constitutes  the legal,  valid and
      binding  obligations of it enforceable  against it in accordance  with its
      terms,  except  as the  same  may be  limited  by  applicable  bankruptcy,
      insolvency,  reorganization,  moratorium  or similar  laws  affecting  the
      rights of creditors generally and by general principles of equity, whether
      considered in a proceeding at law or in equity.

            7. GOVERNING LAW. THIS ASSIGNMENT AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK INCLUDING MATTERS
OF CONSTRUCTION, VALIDITY AND PERFORMANCE.

            8.  COUNTERPARTS.  This Assignment  Agreement may be executed in any
number  of  counterparts,  all of  which  together  shall  constitute  a  single
instrument.  It shall not be necessary  that any  counterpart  be signed by both
parties so long as each party shall sign at least one counterpart.

            9. THIRD PARTY  BENEFICIARIES.  The Assignee hereby agrees,  for the
benefit of the Beneficiaries, that its representations, warranties and covenants
contained  herein are also  intended to be for the benefit of each  Beneficiary,
and each  Beneficiary  shall be deemed to be an express third party  beneficiary
with  respect  thereto,  entitled  to enforce  directly  and in its own name any
rights or claims it may have against such party as such beneficiary.


<PAGE>

            IN WITNESS  WHEREOF,  the parties hereto,  through their  respective
officers thereunto duly authorized, have duly executed this Assignment Agreement
as of the day and year first above written.

                                    ASSIGNOR:
                                    WILMINGTON   TRUST   COMPANY,   not  in  its
                                         individual capacity except as expressly
                                         provided herein,  but solely as trustee
                                         under the Pass Through Trust  Agreement
                                         and Trust  Supplement in respect of the
                                         Continental Airlines Pass Through Trust
                                         2000-1A-2-O


                                    By:_______________________________________
                                       Title:

                                    ASSIGNEE:
                                    WILMINGTON   TRUST   COMPANY,   not  in  its
                                         individual capacity except as expressly
                                         provided herein,  but solely as trustee
                                         under the Pass Through Trust  Agreement
                                         and Trust  Supplement in respect of the
                                         Continental Airlines Pass Through Trust
                                         2000-1A-2-S


                                    By:_______________________________________
                                       Title:


<PAGE>

                                   Schedule I

                         Schedule of Assigned Documents

            (1)  Intercreditor  Agreement  dated as of March 15,  2000 among the
Trustee, the Other Trustees,  the Liquidity Provider, the liquidity provider, if
any,  relating to the Certificates  issued under (and as defined in) each of the
Other Agreements and the Subordination Agent.

            (2) Escrow and Paying Agent Agreement  (Class A-2) dated as of March
15, 2000 among the Escrow Agent,  the  Underwriters,  the Trustee and the Paying
Agent.

            (3) Note  Purchase  Agreement  dated as of March 15,  2000 among the
Company, the Trustee, the Other Trustees, the Depositary,  the Escrow Agent, the
Paying Agent and the Subordination Agent.

            (4) Deposit Agreement (Class A-2) dated as of March 15, 2000 between
the Escrow Agent and the Depositary.

            (5)  Each  of  the   Operative   Agreements   (as   defined  in  the
Participation Agreement for each Aircraft) in effect as of the Transfer Date.


<PAGE>

                                   Schedule II

                            Schedule of Beneficiaries

Wilmington Trust Company, not in its individual capacity but solely as
Subordination Agent

Wilmington Trust Company, not in its individual capacity but solely as Paying
Agent

Credit Suisse First Boston, acting through its New York branch, as Liquidity
Provider and Depositary

Continental Airlines, Inc.

Credit Suisse First Boston Corporation, as Underwriter

Morgan Stanley & Co. Incorporated, as Underwriter

Chase Securities Inc., as Underwriter

Merrill Lynch, Pierce, Fenner & Smith Incorporated, as Underwriter

Salomon Smith Barney Inc., as Underwriter

First Security Bank, National Association, as Escrow Agent

Each of the other parties to the Assigned Documents




                        TRUST SUPPLEMENT No. 2000-1A-2-S

                              Dated March 15, 2000


                                     between

                            WILMINGTON TRUST COMPANY
                                   as Trustee,


                                       and


                           CONTINENTAL AIRLINES, INC.

                                       to

                          PASS THROUGH TRUST AGREEMENT
                         Dated as of September 25, 1997


                                  $117,852,000

               Continental Airlines Pass Through Trust 2000-1A-2-S
                           7.918% Continental Airlines
                           Pass Through Certificates,
                               Series 2000-1A-2-S


<PAGE>

            This Trust  Supplement No.  2000-1A-2-S,  dated as of March 15, 2000
(herein called the "TRUST SUPPLEMENT"),  between Continental  Airlines,  Inc., a
Delaware  corporation  (the  "COMPANY"),   and  Wilmington  Trust  Company  (the
"TRUSTEE"), to the Pass Through Trust Agreement, dated as of September 25, 1997,
between the Company and the Trustee (the "BASIC AGREEMENT").

                             W I T N E S S E T H:
                             - - - - - - - - - - 

            WHEREAS,  the  Basic  Agreement,   unlimited  as  to  the  aggregate
principal amount of Certificates (unless otherwise specified herein, capitalized
terms used herein without definition having the respective meanings specified in
the Basic  Agreement)  which  may be  issued  thereunder,  has  heretofore  been
executed and delivered;

            WHEREAS,  the Company has obtained  commitments  from Boeing for the
delivery of certain Aircraft;

            WHEREAS,  as of the Transfer  Date (as defined  below),  the Company
will have financed the  acquisition of all or a portion of
 such Aircraft  either
(i) through  separate  leveraged lease  transactions,  in which case the Company
leases such  Aircraft  (collectively,  the "LEASED  AIRCRAFT"),  or (ii) through
separate secured loan transactions, in which case the Company owns such Aircraft
(collectively, the "OWNED AIRCRAFT");

            WHEREAS,  as of the  Transfer  Date,  in the  case  of  each  Leased
Aircraft,  each  Owner  Trustee,  acting on behalf  of the  corresponding  Owner
Participant, will have issued pursuant to an Indenture, on a non-recourse basis,
Equipment  Notes in order to  finance a portion  of its  purchase  price of such
Leased Aircraft;

            WHEREAS,  as of  the  Transfer  Date,  in the  case  of  each  Owned
Aircraft,  the Company will have issued pursuant to an Indenture,  on a recourse
basis,  Equipment Notes to finance a portion of the purchase price of such Owned
Aircraft;

            WHEREAS,  as of the Transfer Date, the Related  Trustee will assign,
transfer  and deliver all of such  trustee's  right,  title and  interest to the
trust  property  held by the  Related  Trustee to the  Trustee  pursuant  to the
Assignment and Assumption Agreement (as defined below);

            WHEREAS,  the  Trustee,  effective  only,  but  automatically,  upon
execution  and delivery of the  Assignment  and  Assumption  Agreement,  will be
deemed to have  declared the creation of the  Continental  Airlines Pass Through
Trust  2000-1A-2-S  (the  "APPLICABLE  TRUST") for the benefit of the Applicable
Certificateholders, and each Holder of Applicable Certificates outstanding as of
the Transfer Date, as the grantors of the Applicable  Trust, by their respective
acceptances of such Applicable  Certificates,  will join in the creation of this
Applicable Trust with the Trustee;


<PAGE>

            WHEREAS,  all  Applicable  Certificates  (as defined  below)  deemed
issued by the Applicable Trust will evidence  fractional  undivided interests in
the Applicable Trust and will convey no rights, benefits or interests in respect
of any  property  other  than the Trust  Property  except  for those  Applicable
Certificates to which an Escrow Receipt (as defined below) has been affixed;

            WHEREAS,  upon the  execution  and  delivery of the  Assignment  and
Assumption Agreement,  all of the conditions and requirements  necessary to make
this Trust Supplement,  when duly executed and delivered,  a valid,  binding and
legal  instrument  in  accordance  with its  terms and for the  purposes  herein
expressed,  have been done,  performed  and  fulfilled,  and the  execution  and
delivery  of this Trust  Supplement  in the form and with the terms  hereof have
been in all respects duly authorized;

            WHEREAS,  this Trust  Supplement is subject to the provisions of the
Trust Indenture Act of 1939, as amended, and shall, to the extent applicable, be
governed by such provisions;

            NOW THEREFORE, in consideration of the premises herein, it is agreed
between the Company and the Trustee as follows:


                                    ARTICLE I
                                THE CERTIFICATES

            Section 1.01. THE CERTIFICATES. The Applicable Certificates shall be
known  as  "7.918%  Continental  Airlines  Pass  Through  Certificates,   Series
2000-1A-2-S".  Each  Applicable  Certificate  represents a fractional  undivided
interest in the Applicable  Trust created  hereby.  The Applicable  Certificates
shall be the only instruments  evidencing a fractional undivided interest in the
Applicable Trust.

            The terms and conditions  applicable to the Applicable  Certificates
are as follows:

            (a) The aggregate  principal  amount of the Applicable  Certificates
      that shall be initially  deemed issued under the Agreement  shall be equal
      to  the  aggregate   principal  amount  of   "Outstanding"   pass  through
      certificates  representing  fractional  undivided interests in the Related
      Trust on the Transfer Date.  Subject to the preceding sentence and Section
      5.01 of this  Trust  Supplement  and except  for  Applicable  Certificates
      authenticated  and delivered  under Sections 3.03,  3.04, 3.05 and 3.06 of
      the Basic  Agreement,  no Applicable  Certificates  shall be authenticated
      under the Agreement.

            (b) The Regular  Distribution  Dates with  respect to any payment of
      Scheduled Payments means May 1 and November 1 of each year,  commencing on
      May 1, 2000,  until  payment of all of the  Scheduled  Payments to be made
      under the Equipment Notes has been made.


<PAGE>

            (c) The Special  Distribution  Dates with respect to the  Applicable
      Certificates  means any Business  Day on which a Special  Payment is to be
      distributed pursuant to the Agreement.

            (d) At the Escrow Agent's  request under the Escrow  Agreement,  the
      Trustee shall affix the  corresponding  Escrow Receipt to each  Applicable
      Certificate.  In any event,  any  transfer or  exchange of any  Applicable
      Certificate shall also effect a transfer or exchange of the related Escrow
      Receipt.  Prior to the Final  Withdrawal  Date, no transfer or exchange of
      any Applicable  Certificate  shall be permitted  unless the  corresponding
      Escrow  Receipt  is  attached  thereto  and  also  is  so  transferred  or
      exchanged.  By acceptance of any Applicable Certificate to which an Escrow
      Receipt  is  attached,  each  Holder  of  such an  Applicable  Certificate
      acknowledges  and  accepts  the  restrictions  on  transfer  of the Escrow
      Receipt set forth herein and in the Escrow Agreement.

            (e) (i) The Applicable Certificates shall be in the form attached as
      Exhibit  A to  the  Related  Pass  Through  Trust  Supplement,  with  such
      appropriate insertions,  omissions,  substitutions and other variations as
      are required or permitted by the Related Pass Through  Trust  Agreement or
      the Agreement, as the case may be, or as the Trustee may deem appropriate,
      to reflect  the fact that the  Applicable  Certificates  are being  issued
      under the  Agreement as opposed to under the Related  Pass  Through  Trust
      Agreement.  Any Person acquiring or accepting an Applicable Certificate or
      an interest therein will, by such acquisition or acceptance,  be deemed to
      represent and warrant to and for the benefit of each Owner Participant and
      the Company that either (i) the assets of an employee benefit plan subject
      to Title I of the Employee  Retirement  Income  Security  Act of 1974,  as
      amended  ("ERISA"),  or of a plan  subject to Section 4975 of the Internal
      Revenue  Code of 1986,  as  amended  (the  "Code"),  have not been used to
      purchase  Applicable  Certificates  or an  interest  therein  or (ii)  the
      purchase and holding of Applicable  Certificates or an interest therein is
      exempt from the prohibited transaction  restrictions of ERISA and the Code
      pursuant to one or more prohibited transaction statutory or administrative
      exemptions.

                  (ii)  The   Applicable   Certificates   shall  be   Book-Entry
      Certificates  and  shall be  subject  to the  conditions  set forth in the
      Letter of  Representations  between the Company  and the  Clearing  Agency
      attached as Exhibit B to the Related Pass Through Trust Supplement.

            (f)  The  "Participation   Agreements"  as  defined  in  this  Trust
      Supplement  are the "Note  Purchase  Agreements"  referred to in the Basic
      Agreement.

            (g) The  Applicable  Certificates  are subject to the  Intercreditor
      Agreement, the Deposit Agreement and the Escrow Agreement.

            (h) The Applicable  Certificates are entitled to the benefits of the
      Liquidity Facility.

            (i)   The Responsible Party is the Company.


<PAGE>

            (j) The date referred to in clause (i) of the definition of the term
      "PTC Event of Default" in the Basic Agreement is the Final Maturity Date.

            (k) The particular  "sections of the Note Purchase  Agreement",  for
      purposes of clause (3) of Section 7.07 of the Basic Agreement, are Section
      8.1 (with  respect to Owned  Aircraft)  and Section  9.1 (with  respect to
      Leased Aircraft) of each Participation Agreement.

            (l) The  Equipment  Notes to be acquired and held in the  Applicable
      Trust, and the related  Aircraft and Note Documents,  are described in the
      NPA.


                                   ARTICLE II
                                   DEFINITIONS

            Section 2.01.  DEFINITIONS.  For all purposes of the Basic Agreement
as supplemented by this Trust Supplement,  the following  capitalized terms have
the following meanings (any term used herein which is defined in both this Trust
Supplement and the Basic  Agreement shall have the meaning  assigned  thereto in
this Trust  Supplement for purposes of the Basic  Agreement as  supplemented  by
this Trust Supplement):

            AGREEMENT:  Means the Basic Agreement, as supplemented by this Trust
      Supplement.

            AIRCRAFT:  Means each of the New Aircraft or Substitute  Aircraft in
      respect of which a  Participation  Agreement is entered into in accordance
      with the NPA (or any  substitute  aircraft,  including  engines  therefor,
      owned by or leased  to the  Company  and  securing  one or more  Equipment
      Notes).

            AIRCRAFT PURCHASE AGREEMENT: Has the meaning specified in the NPA.

            APPLICABLE CERTIFICATE:  Means any of the "Applicable  Certificates"
      issued by the Related Trust and that are  "Outstanding" (as defined in the
      Related  Pass  Through  Trust  Agreement)  as of the  Transfer  Date  (the
      "TRANSFER  DATE  CERTIFICATES")  and any  Certificate  issued in  exchange
      therefor or replacement thereof pursuant to the Agreement.

            APPLICABLE  CERTIFICATEHOLDER:  Means the  Person  in whose  name an
      Applicable  Certificate  is registered on the Register for the  Applicable
      Certificates.

            APPLICABLE TRUST: Has the meaning specified in the recitals hereto.

            ASSIGNMENT  AND  ASSUMPTION  AGREEMENT:  Means  the  assignment  and
      assumption agreement substantially in the form of Exhibit C to the Related
      Pass Through Trust  Supplement  executed and delivered in accordance  with
      Section 7.01 of the Related Trust Supplement.


<PAGE>

            BASIC AGREEMENT: Has the meaning specified in the first paragraph of
      this Trust Supplement.

            BOEING: Means The Boeing Company.

            BUSINESS DAY: Means any day other than a Saturday, a Sunday or a day
      on which  commercial banks are required or authorized to close in Houston,
      Texas,  New  York,  New  York,  Salt  Lake  City,  Utah or, so long as any
      Applicable  Certificate  is  Outstanding,  the city and state in which the
      Trustee  or any Loan  Trustee  maintains  its  Corporate  Trust  Office or
      receives and disburses funds.

            CLASS C  CERTIFICATEHOLDER:  Has the  meaning  specified  in Section
      4.01(b)(iii) of this Trust Supplement.

            CLASS  C  FRACTIONAL  UNDIVIDED  INTEREST:  Means,  at any  date  of
      computation, the fractional interest in the relevant Trust held by a Class
      C  Certificateholder  multiplied  by the Pool  Balance  (as defined in the
      Intercreditor  Agreement) of such Trust and divided by the aggregate  Pool
      Balances  (as  defined in the  Intercreditor  Agreement)  of the Class C-1
      Trust and the Class C-2 Trust, all determined at such date.

            CLASS D  CERTIFICATEHOLDER:  Has the  meaning  specified  in Section
      4.01(b)(iv) of this Trust Supplement.

            COMPANY:  Has the meaning  specified in the first  paragraph of this
      Trust Supplement.

            CONTROLLING  PARTY: Has the meaning  specified in the  Intercreditor
      Agreement.

            DELIVERY NOTICE: Has the meaning specified in the NPA.

            DELIVERY PERIOD  TERMINATION  DATE: Has the meaning specified in the
      Related Pass Through Trust Supplement.

            DEPOSITS: Has the meaning specified in the Deposit Agreement.

            DEPOSIT AGREEMENT: Means the Deposit Agreement dated as of March 15,
      2000 relating to the  Applicable  Certificates  between the Depositary and
      the Escrow Agent,  as the same may be amended,  supplemented  or otherwise
      modified from time to time in accordance with its terms.

            DEPOSITARY:  Means Credit Suisse First Boston, a banking institution
      organized  under  the laws of  Switzerland,  acting  through  its New York
      branch.

            DISTRIBUTION  DATE: Means any Regular  Distribution  Date or Special
      Distribution Date as the context requires.


<PAGE>

            ESCROW  AGENT:  Means,  initially,  First  Security  Bank,  National
      Association,  and any  replacement  or  successor  therefor  appointed  in
      accordance with the Escrow Agreement.

            ESCROW AGREEMENT:  Means the Escrow and Paying Agent Agreement dated
      as of March 15, 2000 relating to the  Applicable  Certificates,  among the
      Escrow Agent,  the Escrow Paying Agent, the Related Trustee (and after the
      Transfer  Date,  the  Trustee)  and the  Underwriters,  as the same may be
      amended,   supplemented  or  otherwise  modified  from  time  to  time  in
      accordance with its terms.

            ESCROW PAYING  AGENT:  Means the Person acting as paying agent under
      the Escrow Agreement.

            ESCROW RECEIPT:  Means the receipt substantially in the form annexed
      to the Escrow Agreement  representing a fractional  undivided  interest in
      the funds held in escrow thereunder.

            FINAL MATURITY DATE: Means November 1, 2011.

            FINAL WITHDRAWAL: Has the meaning specified in the Escrow Agreement.

            FINAL  WITHDRAWAL  DATE:  Has the  meaning  specified  in the Escrow
      Agreement.

            INDENTURE: Means each of the separate trust indentures and mortgages
      relating to the  Aircraft,  each as  specified  or described in a Delivery
      Notice  delivered  pursuant  to  the  NPA  or  the  related  Participation
      Agreement,  in each  case as the  same  may be  amended,  supplemented  or
      otherwise modified from time to time in accordance with its terms.

            INTERCREDITOR AGREEMENT:  Means the Intercreditor Agreement dated as
      of March 15, 2000 among the Related  Trustee (and after the Transfer Date,
      the Trustee), the Related Other Trustees (and after the Transfer Date, the
      Other Trustees),  the Liquidity Provider, the liquidity providers relating
      to the  Certificates  issued under each of the Related  Other Pass Through
      Trust Agreements, and Wilmington Trust Company, as Subordination Agent and
      as trustee thereunder, as amended, supplemented or otherwise modified from
      time to time in accordance with its terms.

            INVESTORS:  Means  the  Underwriters  together  with all  subsequent
      beneficial owners of the Applicable Certificates.

            LEASE:  Means,  with  respect  to each  Leased  Aircraft,  the lease
      between an Owner Trustee,  as the lessor, and the Company,  as the lessee,
      referred  to in the  related  Indenture,  as such  lease  may be  amended,
      supplemented or otherwise modified in accordance with its terms.

            LEASED AIRCRAFT:  Has the meaning  specified in the third recital to
      this Trust Supplement.


<PAGE>

            LEASED  AIRCRAFT  INDENTURE:   Has  the  meaning  specified  in  the
      Intercreditor Agreement.

            LIQUIDITY FACILITY: Means, initially, the Revolving Credit Agreement
      dated  as of March  15,  2000  relating  to the  Applicable  Certificates,
      between  the  Liquidity   Provider  and  Wilmington   Trust  Company,   as
      Subordination  Agent, as agent and trustee for the Applicable  Trust, and,
      from  and  after  the  replacement  of  such  agreement  pursuant  to  the
      Intercreditor  Agreement,  the replacement liquidity facility therefor, in
      each case as amended, supplemented or otherwise modified from time to time
      in accordance with their respective terms.

            LIQUIDITY PROVIDER: Means, initially,  Credit Suisse First Boston, a
      banking  institution  organized  under  the  laws of  Switzerland,  acting
      through its New York branch,  and any replacements or successors  therefor
      appointed in accordance with the Intercreditor Agreement.

            NEW AIRCRAFT: Has the meaning specified in the NPA.

            NOTE  DOCUMENTS:  Means the  Equipment  Notes  with  respect  to the
      Applicable  Certificates and, with respect to any such Equipment Note, (i)
      the Indenture and the Participation  Agreement  relating to such Equipment
      Note,  and  (ii) in the case of any  Equipment  Note  related  to a Leased
      Aircraft, the Lease relating to such Leased Aircraft.

            NPA:  Means the Note Purchase  Agreement  dated as of March 15, 2000
      among the Related Trustee (and after the Transfer Date, the Trustee),  the
      Related Other Trustees (and after the Transfer Date, the Other  Trustees),
      the  Company,   the  Escrow  Agent,   the  Escrow  Paying  Agent  and  the
      Subordination Agent, as the same may be amended, supplemented or otherwise
      modified from time to time, in accordance with its terms.

            OTHER  AGREEMENTS:  Means (i) the Basic Agreement as supplemented by
      Trust  Supplement  No.  2000-1A-1-S  dated  the date  hereof  relating  to
      Continental  Airlines  Pass  Through  Trust  2000-1A-1-S,  (ii) the  Basic
      Agreement as supplemented by Trust Supplement No. 2000-1B-S dated the date
      hereof  relating to  Continental  Airlines Pass Through  Trust  2000-1B-S,
      (iii)  the  Basic  Agreement  as  supplemented  by  Trust  Supplement  No.
      2000-1C-1-S  dated the date hereof  relating to Continental  Airlines Pass
      Through Trust  2000-1C-1-S and (iv) the Basic Agreement as supplemented by
      Trust  Supplement  No.  2000-1C-2-S  dated  the date  hereof  relating  to
      Continental Airlines Pass Through Trust 2000-1C-2-S.

            OTHER TRUSTEES:  Means the trustees under the Other Agreements,  and
      any successor or other trustee appointed as provided therein.

            OTHER  TRUSTS:  Means the  Continental  Airlines  Pass Through Trust
      2000-1A-1-S,  the Continental  Airlines Pass Through Trust 2000-1B-S,  the
      Continental  Airlines Pass Through Trust  2000-1C-1-S  and the Continental
      Airlines Pass Through Trust 2000-1C-2-S, created by the Other Agreements.


<PAGE>

            OUTSTANDING:  When used with  respect  to  Applicable  Certificates,
      means, as of the date of  determination,  all Transfer Date  Certificates,
      and  all  other  Applicable  Certificates  theretofore  authenticated  and
      delivered under this Agreement, in each case except:

                  (i)  Applicable  Certificates   theretofore  canceled  by  the
            Registrar  or  delivered  to  the  Trustee  or  the   Registrar  for
            cancellation;

                  (ii)  Applicable  Certificates  for  which  money  in the full
            amount required to make the final  distribution with respect to such
            Applicable  Certificates  pursuant  to  Section  11.01 of the  Basic
            Agreement has been  theretofore  deposited with the Trustee in trust
            for the Applicable Certificateholders as provided in Section 4.01 of
            the  Basic  Agreement  pending  distribution  of such  money to such
            Applicable  Certificateholders  pursuant  to  payment  of such final
            distribution; and

                  (iii)  Applicable  Certificates  in exchange for or in lieu of
            which other  Applicable  Certificates  have been  authenticated  and
            delivered pursuant to this Agreement.

            OWNED  AIRCRAFT:  Has the meaning  specified in the third recital to
      this Trust Supplement.

            OWNED  AIRCRAFT   INDENTURE:   Has  the  meaning  specified  in  the
      Intercreditor Agreement.

            OWNER PARTICIPANT:  With respect to any Equipment Note relating to a
      Leased  Aircraft,  means the "Owner  Participant"  as  referred  to in the
      Indenture  pursuant  to  which  such  Equipment  Note  is  issued  and any
      permitted  successor  or  assign  of such  Owner  Participant;  and  OWNER
      PARTICIPANTS  at  any  time  of  determination  means  all  of  the  Owner
      Participants thus referred to in the Indentures.

            OWNER  TRUSTEE:  With respect to any  Equipment  Note  relating to a
      Leased  Aircraft,  means  the  "Owner  Trustee",  as  referred  to in  the
      Indenture  pursuant  to which such  Equipment  Note is issued,  not in its
      individual capacity but solely as trustee; and OWNER TRUSTEES means all of
      the Owner Trustees party to any of the Indentures.

            OWNER  TRUSTEE'S  PURCHASE  AGREEMENT:  Means,  with  respect to any
      Leased Aircraft,  the agreement between the Company and the relevant Owner
      Trustee  pursuant to which,  INTER ALIA, the Company  assigns to the Owner
      Trustee  certain  rights  of  the  Company  under  the  aircraft  purchase
      agreement with respect to such Leased Aircraft.

            PARTICIPATION AGREEMENT:  Means each Participation Agreement entered
      into by the  Related  Trustee  pursuant  to the  NPA,  as the  same may be
      amended, supplemented or otherwise modified in accordance with its terms.

            POOL BALANCE: Means, as of any date, (i) the original aggregate face
      amount of the  "Applicable  Certificates"  as defined in the Related  Pass


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      Through Trust  Agreement,  less (ii) the aggregate  amount of all payments
      made in respect of such  Certificates,  the  Applicable  Certificates  (as
      defined in the Related  Pass Through  Trust  Agreement)  or the  Deposits,
      other than  payments  made in respect of  interest  or premium  thereon or
      reimbursement of any costs or expenses  incurred in connection  therewith.
      The Pool  Balance  as of any  Distribution  Date shall be  computed  after
      giving effect to any special distribution with respect to unused Deposits,
      payment of  principal  of the  Equipment  Notes or payment with respect to
      other Trust Property and the distribution thereof to be made on that date.

            POOL  FACTOR:  Means,  as of any  Distribution  Date,  the  quotient
      (rounded to the seventh  decimal place)  computed by dividing (i) the Pool
      Balance by (ii) the  original  aggregate  face  amount of the  "Applicable
      Certificates" as defined in the Related Pass Through Trust Agreement.  The
      Pool Factor as of any  Distribution  Date shall be computed  after  giving
      effect to any  special  distribution  with  respect  to  unused  Deposits,
      payment of principal of the  Equipment  Notes or payments  with respect to
      other Trust Property and the distribution thereof to be made on that date.

            PROSPECTUS  SUPPLEMENT:  Means the Prospectus Supplement dated March
      1, 2000 relating to the offering of the Certificates.

            RELATED  OTHER  PASS  THROUGH  TRUST  AGREEMENTS:  Means the  "Other
      Agreements" as defined in the Related Pass Through Trust Agreement.

            RELATED OTHER TRUSTEES: Means the "Other Trustees" as defined in the
      Related Pass Through Trust Agreement.

            RELATED  OTHER  TRUSTS:  Means the "Other  Trusts" as defined in the
      Related Pass Through Trust Agreement.

            RELATED PASS THROUGH TRUST  AGREEMENT:  Means the Basic Agreement as
      supplemented by the Trust Supplement No. 2000-1A-2-O dated the date hereof
      (the "RELATED PASS THROUGH TRUST SUPPLEMENT"), relating to the Continental
      Airlines  Pass Through Trust  2000-1A-2-O  and entered into by the Company
      and the Related Trustee,  as amended,  supplemented or otherwise  modified
      from time to time in accordance with its terms.

            RELATED TRUST: Means the Continental Pass Through Trust 2000-1A-2-O,
      formed under the Related Pass Through Trust Agreement.

            RELATED  TRUSTEE:  Means the trustee  under the Related Pass Through
      Trust Agreement.

            SPECIAL PAYMENT:  Means any payment (other than a Scheduled Payment)
      in respect of, or any proceeds of, any  Equipment  Note,  Trust  Indenture
      Estate (as defined in each Leased  Aircraft  Indenture) or Collateral  (as
      defined in each Owned Aircraft Indenture).


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            SUBSTITUTE AIRCRAFT: Has the meaning specified in the NPA.

            TRANSFER  DATE:  Means the moment of  execution  and delivery of the
      Assignment and Assumption Agreement by each of the parties thereto.

            TRANSFER  DATE  CERTIFICATES:  Has  the  meaning  specified  in  the
      definition of "Applicable Certificates".

            TRIGGERING  EVENT:  Has the  meaning  assigned  to such  term in the
      Intercreditor Agreement.

            TRUST PROPERTY:  Means (i) subject to the  Intercreditor  Agreement,
      the  Equipment  Notes held as the property of the  Applicable  Trust,  all
      monies at any time  paid  thereon  and all  monies  due and to become  due
      thereunder,  (ii) funds  from time to time  deposited  in the  Certificate
      Account and the Special Payments Account and, subject to the Intercreditor
      Agreement,  any proceeds from the sale by the Trustee  pursuant to Article
      VI of the Basic  Agreement of any  Equipment  Note and (iii) all rights of
      the Applicable Trust and the Trustee,  on behalf of the Applicable  Trust,
      under the Intercreditor  Agreement,  the Escrow Agreement, the NPA and the
      Liquidity Facility,  including,  without limitation, all rights to receive
      certain payments thereunder,  and all monies paid to the Trustee on behalf
      of the  Applicable  Trust pursuant to the  Intercreditor  Agreement or the
      Liquidity  Facility,  PROVIDED that rights with respect to the Deposits or
      under the Escrow Agreement will not constitute Trust Property.

            TRUST  SUPPLEMENT:  Has the meaning specified in the first paragraph
      of this trust supplement.