AIRCRAFT LEASE AGREEMENT



                                     between



                             POLARIS HOLDING COMPANY



                                     Lessor



                                       and



                              POLAR AIR CARGO, INC.



                                     Lessee



                          Dated as of October 24, 2001



                   One Used Boeing 747-200F Freighter Aircraft

                         Manufacturer's Serial No. 22237

             Federal Aviation Administration Registration No. N920FT



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



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                                TABLE OF CONTENTS



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                                                                                                       Page

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Section 1.    Definitions ........................................................................       1

Section 2.    Lease ..............................................................................      12

Section 3.    Delivery, Acceptance, Term .........................................................      14

Section 4.    Rent ...............................................................................      14

Section 5.    Representations and Warranties .....................................................      17

Section 6.    Registration, Operation, Possession, Subleasing and Records ........................      21

Section 7.    Information ........................................................................      27

Section 8.    Covenants of Lessee ................................................................      28

Section 9.    Maintenance; Operation; Replacement of Parts; Alterations,

                 Modification and Additions ......................................................      31

Section 10.   General Tax Indemnity ..............................................................      34

Section 11.   Casualty Occurrences ...............................................................      35

Section 12.   Insurance ..........................................................................      39

Section 13.   Indemnification ....................................................................      39

Section 14.   Liens ..............................................................................      44

Section 15.   Perfection of Title and Further Assurances .........................................      45

Section 16.   Return of Aircraft and Records .....................................................      46

Section 17.   Events of Default ..................................................................      47

Section 18.   Remedies ...........................................................................      49

Section 19.   Assignment; Merger .................................................................      53

Section 20.   Intentionally Omitted ..............................................................      54

Section 21.   Alienation .........................................................................      54

Section 22.   Foreign Registration ...............................................................      55

Section 23.   Miscellaneous ......................................................................      57

</TABLE>



EXHIBITS



Exhibit A     -  Schedule and Description of Aircraft

Exhibit B     -  Aircraft Documents

Exhibit C     -  Definitions

Exhibit D     -  Lease Supplement

Exhibit E     -  Return Condition Requirements

Exhibit F     -  Report by Insurance Broker

Exhibit G     -  Insurance

Exhibit H-1   -  Form of Opinion of Special Counsel to Lessee

Exhibit H-2   -  Form of Opinion of Special Counsel to Guarantor

Exhibit I     -  Form of Opinion of In-house Counsel to Lessee

Exhibit J-1   -  Form of Opinion of Special Counsel to Lessor

Exhibit J-2   -  Form of Opinion of In-house Counsel to Lessor

Exhibit K     -  Form of Subordination, Non-Disturbance and Attomment Agreement



                                       -1-



<PAGE>



Exhibit L     -  Form of Parent Guaranty



                                      -ii-



<PAGE>



                            AIRCRAFT LEASE AGREEMENT



            THIS AIRCRAFT LEASE AGREEMENT dated as of October 24, 2001 ("Lease")

between POLARIS HOLDING COMPANY, a Delaware corporation, with its principal

place of business at 201 Mission Street, 27th Floor, San Francisco, California

94105 ("Lessor"), and Polar Air Cargo, Inc., a California corporation, with its

principal place of business at One Hundred Oceangate, Fifteenth Floor, Long

Beach, California 90802 ("Lessee").



            Lessee desires to lease from Lessor, and Lessor is willing to lease

to Lessee, the Aircraft (as hereinafter defined) upon and subject to the terms

and conditions of this Aircraft Lease Agreement.



                                    AGREEMENT



            In consideration of the mutual promises herein, Lessor and Lessee

agree as follows:



            Section 1. DEFINITIONS.



            The following terms shall have the following respective meanings for

all purposes of this Lease:



            ACMI CONTRACT means (i) any contract entered into by Lessee pursuant

to which Lessee furnishes the aircraft, crew, maintenance and insurance and the

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