Collateral Maintenance Agreement (2006)Full Document 

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COLLATERAL MAINTENANCE AGREEMENT AMONG JETBLUE AIRWAYS CORPORATION, MBIA INSURANCE CORPORATION, AS INITIAL POLICY PROVIDER, WILMINGTON TRUST COMPANY, AS MORTGAGEE, AND ADDITIONAL POLICY PROVIDER, IF ANY, WHICH MAY FROM TIME TO TIME HEREAFTER BECOME PARTIES HERETO AS HEREIN PROVIDED DATED AS OF NOVEMBER 14, 2006 Collateral Maintenance Agreement TABLE OF CONTENTS PAGE ---- ARTICLE I DEFINITIONS AND RULES OF CONSTRUCTION......................... 1 SECTION 1.1 DEFINITIONS............................................ 1 SECTION 1.2 RULES OF CONSTRUCTION.................................. 1 ARTICLE II REPORTS REGARDING THE COLLATERAL............................. 1 SECTION 2.1 ANNUAL APPRAISAL....................................... 1 SECTION 2.2 SEMIANNUAL APPRAISAL................................... 2 SECTION 2.3 QUARTERLY REPORTS...................................... 3 SECTION 2.4 SPECIAL REPORTS........................................ 3 SECTION 2.5 INFORMATION FROM THE MORTGAGEE......................... 4 SECTION 2.6 INDEPENDENT APPRAISER.................................. 4 ARTICLE III COLLATERAL REQUIREMENTS..................................... 5 SECTION 3.1 MAINTENANCE OF COLLATERAL RATIO AND ROTABLE RATIO...... 5 SECTION 3.2 CERTAIN LIMITATIONS REGARDING THE COLLATERAL........... 8 SECTION 3.3 FLEET REDUCTION........................................ 8 SECTION 3.4 INSPECTION............................................. 9 ARTICLE IV MISCELLANEOUS................................................ 10 SECTION 4.1 BENEFITS OF AGREEMENT RESTRICTED....................... 10 SECTION 4.2 APPRAISER'S CERTIFICATE................................ 11 SECTION 4.3 NOTICES; WAIVER........................................ 11 SECTION 4.4 AMENDMENTS, ETC........................................ 11 SECTION 4.5 NO WAIVER.............................................. 12 SECTION 4.6 SUCCESSORS AND ASSIGNS................................. 12 SECTION 4.7 GOVERNING LAW.......................................... 12 SECTION 4.8 EFFECT OF HEADINGS..................................... 12 SECTION 4.9 COUNTERPART ORIGINALS.................................. 13 SECTION 4.10 SEVERABILITY........................................... 13 Appendix I - Form of Appraisal Compliance Report Appendix II - Form of Non-Appraisal Compliance Report Collateral Maintenance Agreement COLLATERAL MAINTENANCE AGREEMENT COLLATERAL MAINTENANCE AGREEMENT, dated as of November 14, 2006 (this "Agreement"), among JETBLUE AIRWAYS CORPORATION, a Delaware corporation (the "Company"), MBIA INSURANCE CORPORATION, a New York domiciled stock insurance company (the "Initial Policy Provider"), WILMINGTON TRUST COMPANY, as Mortgagee (the "Mortgagee") under the Trust Indenture and Mortgage, dated as of the date hereof, between the Company and the Mortgagee (the "Trust Indenture") and Additional Policy Provider(s), if any, which may from time to time hereafter become parties hereto as herein provided. RECITALS WHEREAS, the Company, and the Mortgagee have entered into the Trust Indenture providing for the issuance of $123,546,000.00 aggregate principal amount of Initial Equipment Notes, and the Initial Policy Provider has issued the Policy under which the Subordination Agent may make drawings to make certain payments with respect to the Class G-1 Certificates; WHEREAS, in order to secure the payment of the principal amount of and interest on the Equipment Notes and all other Secured Obligations under the Trust Indenture, the Company has granted a security interest in the Collateral pursuant to the Trust Indenture; and
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