EXHIBIT 4.23
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PARTICIPATION AGREEMENT
([_______])
Dated as of July 31, 2000
Among
UNITED AIR LINES, INC.,
Owner,
STATE STREET BANK AND TRUST COMPANY
OF CONNECTICUT, NATIONAL ASSOCIATION,
in its capacity as
Pass Through Trustee under each of the
Pass Through Trust Agreements,
STATE STREET BANK AND TRUST COMPANY
OF CONNECTICUT, NATIONAL ASSOCIATION,
as Subordination Agent
and
STATE STREET BANK AND TRUST COMPANY
OF CONNECTICUT, NATIONAL ASSOCIATION,
In its Individual Capacity and as Indenture Trustee
______________
United Air Lines, Inc.
One [_________] Aircraft
Bearing U.S. Registration No. [_______]
______________
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TABLE OF CONTENTS
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Page
SECTION 1. Certain Definitions............................................................. 2
SECTION 2. Purchase of Equipment Notes..................................................... 2
SECTION 3. Equipment Notes................................................................. 3
SECTION 4. Conditions...................................................................... 4
(a) Conditions Precedent....................................................... 4
(b) Conditions Precedent to the Obligations of Owner........................... 4
SECTION 5. Owner's Representations, Warranties and Indemnities............................. 4
SECTION 6. Representations, Warranties and Covenants....................................... 13
SECTION 7. Other Documents................................................................. 19
SECTION 8. Notices; Consent to Jurisdiction................................................ 19
SECTION 9. Miscellaneous................................................................... 20
SCHEDULES
SCHEDULE I - Names and Addresses
SCHEDULE II - Equipment Notes, Noteholders and Original Principal
Amount
SCHEDULE III - Description of Pass Through Trust Agreements
PARTICIPATION AGREEMENT ([______])
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THIS PARTICIPATION AGREEMENT ([______]) dated as of July 31, 2000
(this "Agreement") among (i) UNITED AIR LINES, INC., a Delaware corporation (the
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"Owner"), (ii) STATE STREET BANK AND TRUST COMPANY OF CONNECTICUT, NATIONAL
----
ASSOCIATION, a national banking association, not in its individual capacity,
except as otherwise provided herein, but solely as trustee under each of the
Pass Through Trust Agreements (as defined below), (iii) STATE STREET BANK AND
TRUST COMPANY OF CONNECTICUT, NATIONAL ASSOCIATION, a national banking
association, in its individual capacity and as Indenture Trustee (the "Indenture
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Trustee") under the Indenture (as defined below) and (iv) STATE STREET BANK AND
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TRUST COMPANY OF CONNECTICUT, NATIONAL ASSOCIATION, a national banking
association, not in its individual capacity but solely as subordination agent
and trustee (the "Subordination Agent") under the Intercreditor Agreement (as
-------------------
defined below).
WITNESSETH:
WHEREAS, Owner is the owner of the [__________] aircraft more
particularly described in the initial Indenture Supplement dated the Closing
Date for which it desires to obtain financing;
WHEREAS, pursuant to the Trust Indenture and Mortgage ([______])
dated as of July 31, 2000 (the "Indenture") between Owner and the Indenture
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Trustee, Owner proposes to issue up to four Series of Equipment Notes (or, if
Series D Equipment Notes are issued, five Series of Equipment Notes) in the form
set forth in Exhibit A to the Indenture, which Equipment Notes are to be secured
by the mortgage and security interest in the Aircraft created pursuant to the
Indenture by the Owner in favor of the Indenture Trustee;
WHEREAS, the Series X-0, Xxxxxx X-0, Series B and Series C-2
Equipment Notes will be issued on the Closing Date to the Subordination Agent as
nominee for the Pass Through Trustee for the applicable Pass Through Trust as
evidence of the Owner's indebtedness to each such Pass Through Trustee;
WHEREAS, Owner has the option to issue Series D Equipment Notes
at any time on or after the Closing Date to such holder as may be identified in
a supplement to this Participation Agreement;
WHEREAS, pursuant to the Basic Pass Through Trust Agreement and
each of the supplements thereto set forth in Schedule III hereto (the "Pass
----
Through Trust Agreements"), on the Closing Date a separate grantor trust
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(collectively, the "Pass Through Trusts" and, individually, a "Pass Through
------------------- ------------
Trust") will be created to facilitate certain of the transactions
-----
[Participation Agreement ([______])]
contemplated hereby, including, without limitation, the issuance and sale of
credit enhanced pass through certificates pursuant thereto (collectively, the
"Pass Through Certificates") to provide a portion of the financing of the
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Aircraft;
WHEREAS, the proceeds from the issuance and sale of the Pass
Through Certificates will be applied by the Pass Through Trustee to purchase
from the Owner, on behalf of each Pass Through Trust, the Series A-1, Series A-
2, Series B and Series C-2 Equipment Notes, respectively, issued under the
Indenture and bearing the same interest rate as the Pass Through Certificates
issued by such Pass Through Trust;
WHEREAS, concurrently with the execution and delivery of this
Agreement, (i) Landesbank Hessen-Thuringen Girozentrale (the "Liquidity
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Provider"), has entered into three revolving credit agreements (each, a
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"Liquidity Facility"), in each case for the benefit of the holders of the Pass
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Through Certificates of the United Air Lines 2000-1A-1 Pass Through Trust, the
United Air Lines 2000-1A-2 Pass Through Trust and the United Air Lines 2000-1B
Pass Through Trust, with the Subordination Agent, as agent for the Pass Through
Trustee on behalf of each such Pass Through Trust; and (ii) the Pass Through
Trustees, the Liquidity Provider and the Subordination Agent entered into the
Intercreditor Agreement, dated as of the date hereof (the "Intercreditor
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Agreement"); and
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WHEREAS, capitalized terms are used herein as defined in Section
1 hereof.
NOW THEREFORE, in consideration of the mutual agreements herein
contained, the parties hereto agree as follows:
SECTION 1. Certain Definitions. The terms "Owner," "Pass Through
------------------- ----- ------------
Trustee," "Subordination Agent," "Liquidity Provider" and the "Indenture
------- ------------------- ------------------ ---------
Trustee" shall have the further meanings attributed thereto in the Indenture
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and, except as otherwise defined in this Agreement, terms used herein in
capitalized form shall have the meanings attributed thereto in the Indenture.
Unless the context otherwise requires, any reference herein to any of the
Operative Documents refers to such document as it may be amended from time to
time in accordance with its terms and the terms of each other agreement
restricting the amendment thereof.
SECTION 2. Purchase of Equipment Notes. (a) Subject to the
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satisfaction or waiver of the conditions set forth herein, on the date hereof or
on such other date agreed to by the parties hereto (the "Closing Date"):
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(i) the Pass Through Trustee for each Pass Through Trust
shall pay to the Owner the purchase price set forth on Schedule II
hereto of the Equipment Note being issued to such Pass Through Trust;
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[Participation Agreement ([______])]
(ii) the Owner shall issue, pursuant to Article 2 of the
Indenture, to the Subordination Agent, as nominee for the Pass Through
Trustee for each of the Pass Through Trusts, an Equipment Note of the
maturity and principal amount and bearing the interest rate set forth
on Schedule II hereto opposite the name of such Pass Through Trust.
(b) Owner shall, subject to the confirmation of the Rating
Agencies, have the option to elect at any time on or after the Closing Date to
issue Series D Equipment Notes on the terms specified herein, in the Indenture
and in the Intercreditor Agreement. In the event Owner elects to issue such
Series D Equipment Notes, Owner will arrange for the purchase of such Equipment
Notes by lender(s) other than the Pass Through Trusts (such lender or lenders
being herein referred to as the "Initial Series D Noteholders") and, on or prior
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to the Issuance Date with respect to such Series, Schedule II hereto and Exhibit
B-4 to the Indenture shall be supplemented to incorporate appropriate
information regarding such Initial Series D Noteholders and such Series D Notes
and, upon receipt by Owner of the purchase price therefor and subject to
appropriate conditions precedent, Owner shall issue, pursuant to Article 2 of
the Indenture, the Series D Equipment Notes to the Initial Series D Noteholders.
(c) The closing (the "Closing") of the issuance of the Series A-
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1, Series A-2, Series B and Series C-2 Equipment Notes described in this
Agreement shall take place at the offices of Vedder, Price, Xxxxxxx & Kammholz,
000 X. XxXxxxx Xx., Xxxxxxx, Xxxxxxxx, at 10:00 a.m. (Chicago time) on the
Closing Date, or at such other place as the parties hereto may agree.
(d) All payments pursuant to this Section 1 shall be made in
immediately available funds to such accounts and at such banks as the parties
hereto shall designate in writing not less than one Business Day prior to the
Closing Date.
(e) Owner may elect to postpone the issuance of a series of
Equipment Notes pursuant to Section 2.02(b) of the Pass Through Trust Agreement.
(f) In order to facilitate the transactions contemplated hereby,
the Owner has entered into the United Equipment Note Purchase Agreement dated as
of July 31, 2000 (the "Note Purchase Agreement") among the Owner, the Pass
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Through Trustees, the Subordination Agent and the Indenture Trustee, and,
subject to the terms and conditions hereof, the Owner will enter into each of
the Pass Through Trust Agreements and will undertake to perform certain
administrative and ministerial duties under such Pass Through Trust Agreements.
SECTION 3. Equipment Notes. On the applicable Issuance Date with
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respect to each Series, the Owner shall execute, and the Indenture Trustee shall
authenticate and deliver to the applicable Noteholder, an Equipment Note of such
Series in the principal amount and bearing the interest rate set forth opposite
the name of such Noteholder on Schedule II hereto. Subject to the terms hereof,
of the Pass Through Agreements and of the other Operative Agreements, all such
Equipment Notes shall be dated and authenticated as of the applicable Issuance
Date (and
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[Participation Agreement ([______])]
shall bear interest therefrom), shall be registered in such names as shall be
specified by the Noteholder and shall be paid in the manner and at such places
as are set forth in the Indenture.
SECTION 4. Conditions. (a) Conditions Precedent. The obligations
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of each Pass Through Trustee to make the payment described in Section 2(a)(i),
are subject to the satisfaction (or waiver) prior to or on the Closing Date of
the conditions specified in Section 3 of the Note Purchase Agreement.
(b) Conditions Precedent to the Obligations of Owner. It is
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agreed that the obligations of Owner to participate in the transactions
contemplated hereby and to enter into the Operative Documents to which it is a
party are all subject to the fulfillment to the satisfaction (or waiver) of
Owner prior to or on the Closing Date of the following conditions precedent:
(i) The representations and warranties of the Indenture
Trustee, the Pass Through Trustees and the Subordination Agent
contained in Section 6 hereof shall be true and accurate as of the
Closing Date as though made on and as of such date except to the extent
that such representations and warranties relate solely to an earlier
date (in which event such representations and warranties shall have
been true and accurate on and as of such earlier date) and Owner shall
have received a certificate signed by the Chairman of the Board, the
President, any Vice President or any Assistant Vice President or other
authorized representative of the Indenture Trustee, the Pass Through
Trustees and the Subordination Agent, respectively, certifying as to
the foregoing matters with respect to the Indenture Trustee, the Pass
Through Trustees and the Subordination Agent, respectively.
(ii) No action or proceeding shall have been instituted
nor shall governmental action be threatened before any court or
governmental agency, nor shall any order, judgment or decree have been
issued or proposed to be issued by any court or governmental agency at
the time of the Closing Date to set aside, restrain, enjoin or prevent
the completion and consummation of this Agreement or the transactions
contemplated hereby.
(iii) No change shall have occurred after the date of the
execution and delivery of this Agreement in applicable law or
regulations thereunder or interpretations thereof by appropriate
regulatory authorities which, in the opinion of Owner, would make it a
violation of law or regulations for Owner to enter into any transaction
contemplated by the Operative Documents.
SECTION 5. Owner's Representations, Warranties and Indemnities.
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(a) Representations and Warranties. Owner represents and warrants to the
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Indenture Trustee, the Pass Through Trustees and the Liquidity Provider that as
of the Closing Date:
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[Participation Agreement ([______])]
(i) Owner is a corporation duly organized and validly
existing in good standing pursuant to the laws of the State of
Delaware; is a Citizen of the United States and a Certificated Air
Carrier; has its chief executive office (as such term is defined in
rticle 9 of the Uniform Commercial Code) at 0000 Xxxx Xxxxxxxxx Xxxx,
Xxx Xxxxx Xxxxxxxx, Xxxxxxxx 00000; is duly qualified to do business as
foreign corporation in each jurisdiction in which it has intrastate
routes or has its principal office or a major overhaul facility, except
where the failure to be so qualified would not have a material adverse
effect on the ability of Owner to perform its obligations under the
Owner Documents (as defined below); holds all material licenses,
certificates, permits and franchises from the appropriate agencies of
the United States of America and/or all other governmental authorities
having jurisdiction, necessary to authorize Owner to engage in all
transport and to carry on scheduled passenger service, in each case as
presently conducted, perform its obligations under this Agreement, the
Indenture, the initial Indenture Supplement, the Equipment Notes, the
Pass Through Trust Agreements and all other documents executed by Owner
in connection herewith or therewith (collectively, the "Owner
Documents");
(ii) the execution, delivery and performance by Owner of
the Owner Documents have been duly authorized by all necessary
corporate action on the part of Owner, do not require any stockholder
approval, or approval or consent of any trustee or holders of any
indebtedness or obligations of Owner except such as have been duly
obtained, and none of the execution, delivery and performance by Owner
of such Owner Documents contravenes any law, judgment, governmental
rule, regulation or order binding on Owner or the certificate of
incorporation or by-laws of Owner or contravenes the provisions of, or
constitutes a default under, or results in the creation of any Lien
(other than Permitted Liens) upon the property of Owner under: (x) its
certificate of incorporation or bylaws; or (y) any indenture, mortgage,
chattel mortgage, deed of trust, conditional sales contract, bank loan
or credit agreement or other agreement or instrument to which Owner is
a party or by which it or its properties may be bound or affected,
unless such contravention, default or Lien pertains to an agreement of
the type listed in clause (y) of this Section and, individually or in
the aggregate, would be reasonably unlikely to have a material adverse
effect on the ability of the Owner to perform its obligations under the
Owner Documents;
(iii) neither the execution and delivery by Owner of the
Owner Documents nor the performance by Owner of its obligations
thereunder require the consent or approval of, the giving of notice to,
the registration with, or the taking of any other action in respect of
any federal, state, local or foreign government authority or agency,
except for (A) the qualification of the Pass Through Trust Agreements
under the Trust Indenture Act of 1939, as amended, pursuant to an order
of the Securities and Exchange Commission, (B) the registrations and
filings referred to in Section 5(a)(v), (C) authorizations, consents,
approvals, actions, notices and filings required to be obtained, taken,
given or made which have been duly obtained and are in full force and
effect or the
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[Participation Agreement ([______])]
failure of which to obtain, take, give or make would not be reasonably
likely to have a material adverse effect on the financial condition,
properties or results of operations of the Owner, (D) any normal
periodic and other reporting requirements under the applicable rules
and regulations of the FAA to the extent required to be given or
obtained only after the Closing Date, and (E) the recordings with the
FAA described in the opinion referred to in Section 4(a)(ix);
(iv) each of the Owner Documents has been duly executed and
delivered by Owner and constitutes legal, valid and binding obligations
of Owner enforceable against Owner in accordance with the terms
thereof, except as the same may be limited by (a) applicable
bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium or similar laws affecting the enforcement of creditors'
rights generally, (b) by general principles of equity, whether
considered in a proceeding at law or in equity, (c) in the case of
indemnity provisions contained in such documents, public policy
considerations, and (d) in the case of the Indenture, applicable laws
which may affect the remedies provided in the Indenture, which laws,
however, do not make the remedies provided in the Indenture inadequate
for practical realization of the benefits intended to be afforded
thereby;
(v) except for (A) the filing for recording pursuant to the
Federal Aviation Act of the Indenture and the Indenture Supplement
attached thereto and made a part thereof, (B) the taking of possession
by the Indenture Trustee of the original counterparts of the Indenture
and the Indenture Supplement attached thereto, (C) the registration of
the Aircraft with the FAA pursuant to the Federal Aviation Act in the
name of the Owner, (D) the affixation of the nameplates referred to in
Section 4.01(c) of the Indenture and (E) the filing of financing
statements (and continuation statements at periodic intervals) with
respect to the security and other interests created by such documents
under the Uniform Commercial Code of Illinois, no further action,
including any filing or recording of any document is necessary or
advisable in order to perfect the security interest in favor of the
Indenture Trustee in the Owner's interest in the Aircraft in any
applicable jurisdiction in the United States and, on the Closing Date,
after giving effect to such filings, the Indenture Trustee will have a
duly perfected first priority security interest in all of Owner's
right, title and interest in and to the Aircraft, subject only to
Permitted Liens;
(vi) there has not occurred any event which constitutes an
Indenture Default or an Indenture Event of Default which is presently
continuing and there has not occurred any event which constitutes or
would, with the passage of time or the giving of notice, or both,
constitute an Event of Loss with respect to the Airframe or any Engine;
6
[Participation Agreement ([______])]
(vii) the Owner has good and marketable title to the
Aircraft, free and clear of all Liens, other than Permitted Liens, and
the FAA Xxxx of Sale conveying title to the Owner has been duly filed
with the FAA;
(viii) neither Owner nor anyone acting on behalf of Owner
has offered any interest in any Pass Through Certificate or any
Equipment Note in a manner which would violate the Securities Act of
1933 administrative and judicial interpretation thereof;
(ix) the Aircraft has been duly certified by the FAA as to
type and airworthiness and such certification remains in full force and
effect;
(x) neither Owner nor any subsidiary of Owner is an
"investment company" or a company "controlled by an investment company"
within the meaning of the Investment Company Act of 1940, as amended;
(xi) except for the proceedings described in the
discussion of Legal Proceedings in Owner's Annual Report on Form 10-K
for the year ended December 31, 1999 and subsequently filed Form 10-Qs
filed prior to the Closing Date, there are no pending or, to the
knowledge of Owner, threatened actions or proceedings before any court
or administrative agency which individually (or in the aggregate in the
case of any group of related lawsuits) is expected to have a material
adverse effect on the ability of Owner to perform its obligations under
the Owner Documents or that seek to set aside, restrain, enjoin or
prevent the consummation of this Agreement, the other Fundamental
Documents or the transactions contemplated hereby or thereby;
(xii) none of the proceeds from the issuance of the
Equipment Notes will be used directly or indirectly by Owner to
purchase or carry any "margin stock" as such term is defined in
Regulation T or U of the Board of Governors of the Federal Reserve
System;
(xiii) Owner agrees to give each of the Indenture Trustee
and the Pass Through Trustees at least 30 days' prior written notice of
any relocation of its chief executive office from its present location;
(xiv) the Indenture Trustee, as a secured party under the
Indenture (for the benefit of the Noteholders and the Swap
Counterparty), is entitled to the benefits of Section 1110 of the
United States Bankruptcy Code with respect to the Aircraft;
(xv) the Owner's obligations under the Confirmation
constitute "obligations of the debtor under [the] security agreement"
for purposes of 11 U.S.C.(S) 1110(a)(2); and
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[Participation Agreement ([______])]
(xvi) the statements of financial position of Owner as of
December 31, 1999 and March 31, 2000 and the related statements of
earnings and cash flow of Owner for the year and three months then
ended, fairly present the financial condition of Owner as at such dates
and the results of operations and cash flow of Lessee for the periods
ended on such dates, in accordance with generally accepted accounting
principles consistently applied (except as may be stated in the notes
thereto), and subject in the case of the March 31, 2000 statements, to
normal year-end audit adjustments, and since March 31, 2000, there has
been no material adverse change in such condition or operations, except
for such matters timely disclosed in press releases issued by UAL
Corporation or Owner or in public filings, effective as of the date
hereof, with the Securities and Exchange Commission under the
Securities Exchange Act of 1934, as amended, by UAL Corporation or
Owner.
(b) General Indemnity. Owner hereby agrees to indemnify, on an
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after-tax basis, each Indemnitee against, and agrees to protect, save and keep
harmless and shall pay on demand each of them from (whether or not the
transactions contemplated herein or in any of the other Operative Documents or
the Pass Through Trust Agreements are consummated), any and all Expenses and
Taxes imposed on, incurred by or asserted against any Indemnitee, in any way
relating to or arising out of (A) the Operative Documents and any Permitted
Lease, or the enforcement of any of the terms of any thereof; or (B) the
manufacture, design, purchase, resale, acceptance or rejection of the Airframe
or any Engine or Parts; or (C) the Aircraft (or any portion thereof) or any
Engine whether or not installed on the Airframe or any airframe on which an
Engine is installed whether or not arising out of the finance, refinance,
ownership, delivery, nondelivery, storage, lease, possession, use, non-use,
operation, maintenance, modification, alteration, condition, sale, replacement,
substitution, disposition, registration, reregistration or airworthiness of the
Aircraft (or any portion thereof) including, without limitation, latent or other
defects, whether or not discoverable, strict tort liability and any damage to
property or the environment, death or injury to any person and any claim for
patent, trademark or copyright infringement; or (D) the offer, sale, holding,
transfer or delivery of the Equipment Notes or the Pass Through Certificates,
whether before, on or after the applicable Issuance Date (the indemnity in this
clause (D) to extend also to any person who controls an Indemnitee, its
successors, assigns, employees, directors, officers, servants and agents within
the meaning of Section 15 of the Securities Act of 1933, as amended); or (E) the
Confirmation, the Pass Through Documents and each Pass Through Trust Agreement
(and any amendments thereto), or the enforcement of any of the terms of any
thereof; provided, with respect to an Indemnitee, that the foregoing indemnity
shall not extend to any Expense to the extent resulting from or arising out of
one or more of the following:
(1) any representation or warranty by such
Indemnitee or any Related Indemnitee (as defined below) thereof
in any Fundamental Documents being incorrect; or
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[Participation Agreement ([______])]
(2) the failure by such Indemnitee or any Related
Indemnitee thereof to perform or observe any agreement,
covenant or condition in any of the Fundamental Documents; or
(3) the willful misconduct or the gross negligence
of such Indemnitee or any Related Indemnitee thereof (other
than gross negligence imputed to such Indemnitee or any
Related Indemnitee thereof solely by reason of its interest in
the Aircraft); or
(4) a disposition (voluntary or involuntary) by
such Indemnitee of all or any part of its interest in any
Equipment Note or any of all or any part of its interest in
the Fundamental Documents, other than during the continuance
of an Indenture Event of Default or in connection with the
exercise of remedies under any Fundamental Documents or
pursuant to the exercise by Owner of its option to redeem or
refinance the Equipment Notes; or
(5) any Tax; provided, however, this Clause (5)
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shall not apply to (A) Taxes taken into consideration in
making any payments on an after-tax basis or (B) any license,
documentation, registration or filing fees imposed upon or in
connection with the execution, delivery, registration or
filing of the Indenture; or
(6) in the case of the Indenture Trustee in its
individual capacity, any Expense to the extent attributable to
the failure of the Indenture Trustee to distribute funds
received and distributable by it in accordance with the
Indenture, (B) in the case of the Subordination Agent in its
individual capacity, any Expense to the extent attributable to
the failure of the Subordination Agent to distribute funds
received and distributable by it in accordance with the
Intercreditor Agreement, or (C) in the case of any Pass
Through Trustee in its individual capacity, any Expense to the
extent attributable to the failure of such Pass Through
Trustee to distribute funds received and distributable by it
in accordance with the Pass Through Trust Agreement to which
it is a party; or
(7) other than during the continuation of an
Indenture Event of Default, the authorization or giving or
withholding of any future amendments, supplements, waivers or
consents by such Indemnitee or any Related Indemnitee thereof
with respect to any of the Fundamental Documents unless such
amendments, supplements, waivers or consents are requested by
Owner or are required pursuant to the terms of the Fundamental
Documents (unless the same results from the actions of such
Indemnitee or Related Indemnitee); or
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[Participation Agreement ([______])]
(8) except to the extent attributable to acts or
events occurring on or prior thereto, acts or events which
occur after the termination of the Indenture in accordance
with Section 10.01 thereof; or
(9) any Expense to the extent attributable to the
offer or sale by such Indemnitee or any Related Indemnitee of
any interest in the Aircraft, any Equipment Note, any Pass
Through Certificate or any similar interest in violation of
the Securities Act, other applicable federal, state or foreign
securities laws or any other law on or prior to the applicable
Issuance Date; or
(10) any Expense or other amount which such
Indemnitee expressly agrees to pay or such Indemnitee
expressly agrees shall not be paid by or be reimbursed by
Owner; or
(11) any Expense that is an ordinary and usual
operating or overhead expense; or
(12) any Expense resulting from any Lien on the
Aircraft which such Indemnitee or any of its Related
Indemnitees is required to discharge under the Fundamental
Documents;
(13) activities or transactions of such Indemnitee
not arising out of or resulting form, or attributable to the
transactions contemplated by the Fundamental Documents;
(14) Expenses under Clauses (D) or (E) hereof to the
extent such Expenses exceed the Owner's Pro Rata Share of such
Expenses; or
(15) if such Indemnitee shall be a Noteholder or any
Related Indemnitee, for any Expense incurred by or asserted
against such Indemnitee as a result of any "prohibited
transaction" within the meaning of Section 406 of ERISA or
Section 4975(c)(1) of the Code.
For purposes of this Section 5(b), if such Indemnitee is a
Pass Through Trustee, the Subordination Agent or the Indenture Trustee or a
director, officer, employee, agent, servant or Affiliate of any thereof, a
Person shall be considered a "Related Indemnitee" with respect to any such
Person if such Person is a Pass Through Trustee, the Subordination Agent or the
Indenture Trustee or a director, officer, employee, agent, servant or Affiliate
of any thereof.
For purposes of this Section 5(b), "Owner's Pro Rata Share"
means as of any time a fraction, the numerator of which is the principal balance
then outstanding of Equipment Notes
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[Participation Agreement ([______])]
and the denominator of which is the aggregate principal balance then outstanding
of all "United Equipment Notes" (as such term is defined in the Intercreditor
Agreement).
Notwithstanding clause 5(b)(5) above, Owner further agrees
that any payment or indemnity pursuant to this Section 5(b) in respect of any
"Expenses" shall be in an amount which, after deduction of all Taxes required to
be paid by such recipient with respect to such payment or indemnity under the
laws of any federal, state or local government or taxing authority in the United
States, or under the laws of any taxing authority or governmental subdivision of
a foreign country, or any territory or possession of the United States or any
international authority, shall be equal to the excess, if any, of (A) the amount
of such Expense over (B) the current net reduction in Taxes actually realized by
such recipient resulting from the accrual or payment of such Expense.
Nothing in this Section 5(b) shall be construed as a guaranty
by Owner of payments due pursuant to the Pass Through Certificates or of the
residual value of the Aircraft.
If a claim is made against an Indemnitee involving one or more
Expenses and such Indemnitee has notice thereof, such Indemnitee shall promptly
after receiving such notice give notice of such claim to Owner; provided that
the failure to provide such notice shall not release Owner from any of its
obligations to indemnify hereunder except to the extent that such failure
results in an additional Expense to Owner (in which case Owner shall not be
responsible for such additional Expense) or Owner is prejudiced in the conduct
of or precluded from conducting a meritorious contest of such claim; provided
further that no payment by Owner to an Indemnitee pursuant to this Section 5(b)
shall be deemed to constitute a waiver or release of any right or remedy which
the Owner may have against such Indemnitee for any actual damages as a result of
the failure by such Indemnitee to give Owner such notice. Owner shall be
entitled, at its sole cost and expense, acting through counsel reasonably
acceptable to the respective Indemnitee, (A) in any judicial or administrative
proceeding that involves solely a claim for one or more Expenses, to assume
responsibility for and control thereof, (B) in any judicial or administrative
proceeding involving a claim for one or more Expenses and other claims related
or unrelated to the transactions contemplated by the Fundamental Documents, to
assume responsibility for and control of such claim for Expenses to the extent
that the same may be and is severed from such other claims (and such Indemnitee
shall use reasonable efforts to obtain such severance), and (C) in any other
case, to be consulted by such Indemnitee with respect to judicial proceedings
subject to the control of such Indemnitee and to be allowed, at Owner's sole
expense, to participate therein. Notwithstanding any of the foregoing to the
contrary, Owner shall not be entitled to assume responsibility for and control
of any such judicial or administrative proceedings if (i) an Indenture Event of
Default shall have occurred and be continuing, (ii) if such proceedings will
involve a material risk of the sale, forfeiture or loss of, or the creation of
any Lien (other than a Permitted Lien) on, the Aircraft, the Indenture Estate or
any part thereof unless Owner shall have posted a bond or other security
reasonably satisfactory to the relevant Indemnitees in respect to such risk or
(iii) if such proceedings could, in the reasonable judgment of the Indemnitee,
entail
11
[Participation Agreement ([______])]
any risk of criminal liability. The Indemnitee may participate at its own
expense and with its own counsel in any judicial proceeding controlled by Owner
pursuant to the preceding provisions; provided, that such Indemnitee's
--------
participation does not, in the reasonable opinion of the independent counsel
appointed by the Owner or its insurers to conduct such proceedings, interfere
with the defense of such case.
The Indemnitee shall supply Owner, at Owner's expense, with
such information reasonably requested by Owner as is necessary or advisable for
Owner to control or participate in any proceeding to the extent permitted by
this Section 5(b). In no event shall any Indemnitee enter into a settlement or
other compromise with respect to any Expense (i) unless (x) the Indemnitee has
given Owner at least 30 days' prior written notice of the nature and scope of
the proposed settlement or compromise and (y) such Indemnitee has received
Owner's prior written consent, which consent shall not be unreasonably withheld
or delayed, or (ii) unless such Indemnitee waives its right to be indemnified
with respect to such Expense under this Section 5(b).
The Owner shall supply the Indemnitee with such information
reasonably requested by the Indemnitee as is necessary or advisable for the
Indemnitee to control or participate in any proceeding to the extent permitted
by this Section 5(b).
Upon payment of any Expense pursuant to this Section 5(b),
Owner, without any further action, shall be subrogated to any claims the
Indemnitee may have relating thereto other than claims under Section 9.06 of the
Indenture. The Indemnitee agrees to give such further assurances or agreements
and to cooperate with Owner or its insurers to permit Owner or its insurers to
pursue such claims, if any, to the extent reasonably requested by Owner.
In the event that Owner shall have paid an amount to an
Indemnitee pursuant to this Section 5(b), and such Indemnitee subsequently shall
be reimbursed in respect of such indemnified amount from any other person, such
Indemnitee shall promptly pay Owner an amount equal to the sum of (I) the amount
of such reimbursement, including interest received attributable thereto, net of
taxes required to be paid by such Indemnitee as a result of any reimbursement
including interest received attributable thereto and (II) any tax benefit
realized by such Indemnitee as a result of any payment to Owner hereunder;
provided, however, that (x) such amount attributable to (I) above shall not be
in excess of the amount of such Expense payment made by Owner plus interest
received attributable thereto and (y) any amount which is payable to Owner by
any Person pursuant to this Section 5(b) shall not be paid to Owner if an
Indenture Default under Section 8.01(a), (e) or (f) of the Indenture or an
Indenture Event of Default shall have occurred and be continuing or if any
payment is due and owing by Owner to such Person hereunder or under any other
Operative Document. Any such amount shall be held by such Person (the Owner
hereby granting a security interest in such amount to such Person) and, during
the continuance of such Indenture Default or Indenture Event of Default, shall
be applied against Owner's obligations hereunder to such Person as and when due.
At such time as there shall not
12
[Participation Agreement ([______])]
be continuing any such Indenture Default or Indenture Event of Default or there
shall not be due and owing any such payment, such amount shall be paid to Owner
to the extent not previously applied in accordance with the immediately
preceding sentence.
Owner's obligations under the indemnities provided for in this
Agreement shall be those of a primary obligor, whether or not the Person
indemnified shall also be indemnified with respect to the same matter under the
terms of any other document or instrument, and the Person seeking
indemnification from Owner pursuant to any provision of this Agreement may
proceed directly against Owner without first seeking to enforce any other right
of indemnification.
(c) Withholding. If Owner advises the Indenture Trustee and
-----------
the relevant Noteholder in writing that interest on its Equipment Notes is
subject to United States withholding tax, then the Indenture Trustee shall
withhold as provided in Section 2.10 of the Indenture.
SECTION 6. Representations, Warranties and Covenants.
-----------------------------------------
(a) So long as the Lien of the Indenture shall not have been
discharged and no Indenture Default under Section 8.01(a), (e) or (f) of the
Indenture or any Indenture Event of Default shall have occurred or be
continuing, the Owner may, at its own cost and expense and without the consent
of the Indenture Trustee or any other Person, cause such Aircraft to be
appropriately re-registered in the name of the Owner (or, if appropriate, in the
name of any Permitted Lessee as "lessee") under the laws of (i) any country
listed on Exhibit F to the Indenture with which the United States then maintains
normal diplomatic relations or, if Taiwan, the United States then maintains
diplomatic relations at least as good as those in effect on the Closing Date (a
"Scheduled Country"), or (ii) any other country, in each case subject to the
provisions hereof.
Prior to any such re-registration under the laws of a
Scheduled Country, the Indenture Trustee shall have received a favorable opinion
of counsel addressed to it to the effect that (i) the laws of the new country of
registration will recognize the Owner's right of ownership with respect to the
Aircraft and will give effect to the Lien and security interest created by the
Indenture and (ii) the Indenture and the Indenture Trustee's Lien and right to
repossession thereunder is valid and enforceable under the laws of such country.
Prior to any such re-registration under the laws of any
country other than the U.S. or a Scheduled Country, the Indenture Trustee shall
have received a favorable opinion of counsel in the new jurisdiction of registry
covering the matters set forth in the preceding paragraph and to the effect that
(A) the terms (including, without limitation, the governing-law, service-of-
process and jurisdictional-submission provisions thereof) of the Indenture are
legal, valid, binding and enforceable in such jurisdiction, (B) that it is not
necessary for the Indenture Trustee to register or qualify to do business in
such jurisdiction, (C) that there is no tort liability of the lender of an
aircraft not in possession thereof under the laws of such jurisdiction other
than tort liability
13
[Participation Agreement ([______])]
which might have been imposed on such lender under the laws of the United States
or any state thereof (it being understood that, such opinion shall be waived if
insurance reasonably satisfactory to Indenture Trustee is provided, at Owner's
expense, to cover such risk), and (D) (unless Owner shall have agreed to provide
insurance covering the risk of requisition of use or title of the Aircraft by
the government of such jurisdiction so long as the Aircraft is registered under
the laws of such jurisdiction) that the laws of such jurisdiction require fair
compensation by the government of such jurisdiction payable in currency freely
convertible into U.S. Dollars for the loss of use or title of the Aircraft in
the event of the requisition by such government of such use or title.
In connection with any such re-registration, the Owner shall, at
its cost and to the extent permitted by the laws of such country, cause the
interests of the Indenture Trustee in the Aircraft to be duly registered or
recorded under the laws of such country and at all times thereafter to remain so
duly registered or recorded unless and until changed as provided herein, and
shall cause to be done at all times all other acts (including the filing,
recording and delivery of any document or instrument and the payment of any sum)
necessary or, by reference to prudent industry practice in such country,
advisable in order to establish the Indenture Trustee's interest in and to such
Aircraft as against the Owner, any Permitted Lessee or any third parties in such
jurisdiction.
The Indenture Trustee shall execute and deliver all such
documents as the Owner may reasonably request and otherwise cooperate with the
Owner for the purpose of effecting, continuing or (as provided in this Section
6(a)) changing the registration of the Aircraft.
The Owner shall pay all reasonable fees and expenses on an after-
tax basis of the Indenture Trustee in connection with any change of registry of
the Aircraft.
(b) State Street, in its individual capacity, covenants and
agrees that it shall not cause or permit to exist any Lien, arising as a result
of (i) claims against the Indenture Trustee, the Subordination Agent or any Pass
Through Trustee not related to its interest in the Aircraft or the
administration of the Indenture Estate pursuant to the Indenture, (ii) acts of
the Indenture Trustee, the Subordination Agent or any Pass Through Trustee not
permitted by, or failure of the Indenture Trustee, the Subordination Agent or
any Pass Through Trustee to take any action required by, the Fundamental
Documents to the extent such acts arise or such failure arises from or
constitutes gross negligence or willful misconduct, (iii) claims against the
Indenture Trustee, the Subordination Agent or any Pass Through Trustee relating
to Taxes or Expenses which are excluded from the indemnification provided by
Section 5(b) pursuant to said Section 5(b), or (iv) claims against the Indenture
Trustee, the Subordination Agent or any Pass Through Trustee arising out of the
transfer by any such party of all or any portion of its interest in the
Aircraft, the Indenture Estate or the Fundamental Documents other than a
transfer of the Aircraft pursuant to Article 5 or 8 of the Indenture.
14
[Participation Agreement ([______])]
(c) State Street, in its individual capacity and as Indenture
Trustee, Subordination Agent and Pass Through Trustee as provided below,
represents to the Owner and the Liquidity Provider as follows:
(i) it is a Citizen of the United States, that it will
notify promptly all parties to this Agreement if in its reasonable
opinion its status as a Citizen of the United States is likely to
change and that it will resign as Indenture Trustee as provided in
Section 9.07 of the Indenture if it should cease to be a Citizen of the
United States;
(ii) it is a national banking association and has the full
corporate power, authority and legal right under the laws of the United
States of America to enter into and perform its obligations under the
Fundamental Documents to which it is a party (the "State Street
------------
Documents") and, in its capacity as Indenture Trustee and Pass Through
---------
Trustee, respectively, to authenticate the Equipment Notes and the Pass
Through Certificates;
(iii) the State Street Documents, and the authentication of
the Equipment Notes and the Pass Through Certificates have been duly
authorized by all necessary corporate action on the part of State
Street, the Indenture Trustee, the Subordination Agent and the relevant
Pass Through Trustee, as it shall be a party thereto in any such
capacity, and neither the execution (or, in the case of the Equipment
Notes and the Pass Through Certificates, the authentication) and
delivery thereof in any such capacity nor the performance by it in any
such capacity of any of the terms and provisions thereof will violate
any federal or Connecticut law or regulation relating to the banking or
trust powers of State Street or contravene or result in any breach of,
or constitute any default under its charter or by-laws or the
provisions of any indenture, mortgage, contract or other agreement to
which State Street, the Indenture Trustee, the Subordination Agent or
the Pass Through Trustee is a party or by which it or its properties
may be bound or affected;
(iv) each of the State Street Documents has been duly
executed (or, in the case of the Equipment Notes and the Pass Through
Certificates, authenticated) and delivered by State Street, the
Indenture Trustee, the Subordination Agent and the relevant Pass
Through Trustee, as it shall be a party thereto in any such capacity,
and, assuming that each such agreement is the legal, valid and binding
obligation of each other party thereto (other than State Street, the
Indenture Trustee, the Subordination Agent and the relevant Pass
Through Trustee), is the legal, valid and binding obligation of State
Street, the Indenture Trustee, the Subordination Agent and the relevant
Pass Through Trustee, as it shall be a party thereto in any such
capacity, enforceable against it in accordance with its terms;
15
[Participation Agreement([_____])]
(v) neither the execution (or, in the case of the
Equipment Notes and the Pass Through Certificates, the authentication)
and delivery by State Street, the Indenture Trustee, the Subordination
Agent or any Pass Through Trustee, as it is a party in any such
capacity to any of the State Street Documents, nor the consummation by
it in any such capacity of any of the transactions contemplated hereby,
by the Indenture, by the Pass Through Trust Agreements, by the
Equipment Notes or by the Pass Through Certificates requires the
consent or approval of, the giving of notice to, or the registration
with, or the taking of any other action with respect to, any
Connecticut state or federal governmental authority or agency
regulating the banking, trust or fiduciary powers of State Street;
(vi) there are no Taxes payable by State Street, the
Indenture Trustee, the Subordination Agent or any Pass Through Trustee
imposed by the State of Connecticut or any political subdivision or
taxing authority thereof in connection with the execution (or, in the
case of the Equipment Notes and the Pass Through Certificates, the
authentication) and delivery by it as a party in any such capacity to
any State Street Document or the performance by it as a party in any
such capacity of any State Street Document (other than franchise or
other taxes based on or measured by any fees or compensation received
by State Street, the Indenture Trustee, the Subordination Agent or any
Pass Through Trustee, as the case may be, for services rendered in
connection with the transactions contemplated thereby), and there are
no Taxes payable by State Street, the Indenture Trustee, the
Subordination Agent or any Pass Through Trustee imposed by the State of
Connecticut or any political subdivision thereof in connection with the
acquisition, possession or ownership by any Pass Through Trustee of any
of the Equipment Notes (other than franchise or other taxes based on or
measured by any fees or compensation received by a Pass Through Trustee
for services rendered in connection with the transactions contemplated
by the respective Pass Through Trust Agreement);
(vii) there are no pending or threatened actions or
proceedings against any of State Street, the Indenture Trustee, the
Subordination Agent or the Pass Through Trustees before any court or
administrative agency which individually (or in the aggregate in the
case of any group of related lawsuits) purports to affect the legality,
validity or enforceability of, or which is reasonably likely to
materially adversely affect the ability of State Street, the Indenture
Trustee, the Subordination Agent or the Pass Through Trustees to
perform its obligations as a party in any such capacity under any State
Street Document;
(viii) except for the issuance and sale pursuant to the
respective Pass Through Trust Agreement of the Pass Through
Certificates contemplated hereby, neither State Street nor any Pass
Through Trustee has directly or indirectly offered any Equipment Note
or Pass Through Certificate for sale to any Person, or solicited any
offer to acquire any Equipment Note or Pass Through Certificate from
any Person, and neither
16
[Participation Agreement([_____])]
State Street nor any Pass Through Trustee has authorized anyone to act
on its behalf to offer directly or indirectly any Equipment Note or
Pass Through Certificate for sale to any Person, or to solicit any
offer to acquire any Equipment Note or Pass Through Certificate from
any Person, and no Pass Through Trustee is in default under any
respective Pass Through Trust Agreement;
(ix) on the Closing Date there shall be no Liens
attributable to State Street in respect of all or any part of the
Indenture Estate; and
(x) the Equipment Notes to be acquired by the
Subordination Agent are being acquired by it for the account of the
applicable Pass Through Trustee, for investment and not with a view to
any resale or distribution thereof, except that, subject to the
restrictions on transfer set forth in each Pass Through Trust
Agreement, the disposition by it of its Equipment Notes shall at all
times be within its control.
(xi) Each of the Indenture Trustee, the
Subordination Agent and the Pass Through Trustee covenants and agrees
that, so long as no Indenture Event of Default shall have occurred and
be continuing and the Owner has not been duly declared in default, that
such Person shall not (and shall not permit any Affiliate or other
Person claiming by, through or under it to) interfere with the Owner's
continued possession, use and operation of, and quiet enjoyment of, the
Aircraft.
(xii) Each of the Indenture Trustee, the Pass
Through Trustee and the Subordination Agent agrees that it will not
transfer any Equipment Note (or any part thereof) to any entity unless
such entity makes (or is deemed to have made) a representation and
warranty as of the date of transfer that either no part of the funds to
be used by it for the purchase and holding of such Equipment Note (or
any part thereof) constitutes assets of any "employee benefit plan" or
that such purchase and holding will not result in a non-exempt
prohibited transaction (under Section 4975 of the Code and Section 406
of ERISA).
(d) The Indenture Trustee agrees for the benefit of AVSA,
the Manufacturer and Owner that it will not disclose or suffer to be disclosed
the terms of the Purchase Agreement to any third party except (A) as may be
required by any applicable statue, court or administrative order or decree or
governmental ruling or regulation or to any regulatory authorities having
official jurisdiction over them, (B) in connection with the financing of the
Aircraft and the other transactions contemplated by the Fundamental Documents
(including any transfer of Equipment Notes (including by way of participation or
assignment of an interest, provided such participant or assignee agrees to hold
such terms confidential to the same extent as herein provided) and any exercise
of remedies under the Indenture), (C) with the prior written consent of the
Manufacturer, AVSA and Owner or (D) to the Indenture Trustee's counsel or
special counsel, independent insurance brokers or other agents who agree to hold
such information confidential.
17
[Participation Agreement ([______])]
(e) The Pass Through Trustee covenants and agrees that it
shall not cause or permit to exist a Lien attributable to it with respect to the
Aircraft. The Pass Through Trustee agrees that it will promptly, at its own
expense, take such other action as may be necessary duly to discharge such Lien
attributable to it. The Pass Through Trustee agrees to make restitution to Owner
for any actual diminution of the assets of Owner resulting from such Lien
attributable to it.
(f) State Street, in its individual capacity, covenants and
agrees that it shall not cause or permit to exist any Liens attributable to it
with respect to the Indenture Estate. State Street, in its individual capacity,
agrees that it will promptly, at its own expense, take such action as may be
necessary duly to discharge such Liens. State Street, in its individual
capacity, agrees to make restitution to Owner for any actual diminution of the
assets of the Indenture Estate resulting from such Liens.
(g) The Pass Through Trustee hereby represents, warrants and
agrees that it shall not transfer any interest in any Equipment Note unless and
until the transferee agrees in writing (copies of which shall be provided by the
Indenture Trustee to Owner) to make the representations contemplated to be made
by the Pass Through Trustee in this Agreement and to be bound by the terms of
this Agreement and the Indenture.
(h) So long as the Lien of the Indenture shall not have been
discharged in accordance with the terms thereof, the Owner will not consolidate
with or merge into any other corporation or convey, transfer or lease
substantially all of its assets to any Person unless:
(i) the corporation formed by such consolidation or
into which Owner is merged or the Person which acquires by conveyance,
transfer or lease substantially all of the assets of Owner as an
entirety (the "Successor") shall be a Citizen of the United States and
---------
shall be a Certificated Air Carrier;
(ii) the Successor shall execute and deliver to the
Indenture Trustee a duly authorized, valid, binding and enforceable
agreement in form and substance reasonably satisfactory to the
Indenture Trustee containing an assumption by such Successor of the due
and punctual performance and observance of each covenant and condition
of the Owner Documents to be performed or observed by Owner;
(iii) immediately after giving effect to such
transaction, no Indenture Event of Default shall have occurred and be
continuing; and
(iv) Owner shall have delivered to the Indenture
Trustee a certificate signed by the President or any Vice President and
by the Secretary or an Assistant Secretary of Owner, and an opinion of
counsel (which may be Owner's General Counsel)
18
[Participation Agreement ([______])]
reasonably satisfactory to the Indenture Trustee, each stating that
such consolidation, merger, conveyance, transfer or lease and the
assumption agreement mentioned in clause (ii) above comply with this
Section 6(d) and that all conditions precedent herein provided for in
this Section 6(d) relating to such transaction have been complied with.
Upon any consolidation or merger, or any conveyance, transfer
or lease of substantially all of the assets of Owner as an entirety in
accordance with this Section 6(h), the Successor shall succeed to, and be
substituted for, and may exercise every right and power of, Owner under the
Owner Documents with the same effect as if such Successor had been named as
Owner herein and therein. Nothing contained herein shall permit any lease or
other arrangement for the use, operation or possession of the Aircraft except in
compliance with the applicable provisions of the Indenture.
(i) So long as the Lien of the Indenture shall not have been
discharged in accordance with the terms thereof, the Owner covenants and agrees
with the Indenture Trustee as follows:
(i) Owner will cause to be done, executed, acknowledged
and delivered all and every such further acts, conveyances and
assurances as the Indenture Trustee shall reasonably require for
accomplishing the purposes of this Agreement and the other Fundamental
Documents; provided that any instrument or other document so executed
by Owner will not expand any obligations or limit any rights of Owner
in respect of the transactions contemplated by any Fundamental
Documents; and
(ii) Owner, at its expense, will cause the Indenture and
all supplements and amendments to the Indenture to be promptly filed
and recorded, or filed for recording, to the extent permitted under the
Federal Aviation Act, or required under any other applicable law.
(j) The parties hereto agree that in any case where Owner is
required to deliver legal opinions to any party pursuant to any Operative
Document, such legal opinions may in all cases be subject to such exceptions,
assumptions, qualifications and/or reservations for that relevant jurisdiction
that are considered acceptable in international aircraft finance transactions,
but shall nonetheless be considered sufficient to satisfy Owner's obligations to
deliver such legal opinions.
SECTION 7. Other Documents. So long as the Lien of the
---------------
Indenture has not been terminated, the Pass Through Trustee, the Subordination
Agent and the Indenture Trustee hereby agree for the benefit of Owner that
without Owner's consent, each such party will not amend any other provision of
any Fundamental Document in a manner adversely affecting Owner. Each of the
Indenture Trustee, the Subordination Agent and the Pass Through Trustee agree to
promptly furnish to Owner copies of any supplement, amendment, waiver or
19
[Participation Agreement ([______])]
modification of any of the Fundamental Documents to which Owner is not a party.
The Pass Through Trustee agrees that it will not take any action in respect of
the Indenture Estate except through the Indenture Trustee pursuant to the
Indenture or as otherwise permitted by the Indenture.
SECTION 8. Notices; Consent to Jurisdiction. (a) All notices,
---------------------------------
demands, instructions and other communications required or permitted to be given
to or made upon any party hereto shall be in writing and shall be personally
delivered or sent by registered or certified mail, postage prepaid, or by
telecopier (with a copy of such notice to follow by registered or certified mail
or by prepaid courier), or by prepaid courier service, and shall be deemed to be
given for purposes of this Agreement on the day that such writing is delivered
or received or if given by certified mail, three Business Days after being
deposited in the mails, in accordance with the provisions of this Section 8(a).
Unless otherwise specified in a notice sent or delivered in accordance with the
foregoing provisions of this Section 8(a), notices, demands, instructions and
other communications in writing shall be given to or made upon the respective
parties hereto at their respective addresses (or to their respective telecopier
numbers) as follows: (A) if to Owner, the Indenture Trustee, the Pass Through
Trustees or the Subordination Agent, to the respective addresses set forth on
Schedule I hereto or (B) if to any subsequent Noteholder addressed to such
Noteholder at its address set forth in the Register maintained pursuant to
Section 2.03 of the Indenture.
(b) EACH PARTY TO THIS AGREEMENT (INCLUDING EACH NOTEHOLDER)
(INDIVIDUALLY A "PARTY" AND COLLECTIVELY "PARTIES") IRREVOCABLY AGREES THAT ANY
LEGAL SUIT, ACTION OR PROCEEDING BROUGHT BY ANY OTHER PARTY, WHICH ARISES SOLELY
OUT OF OR RELATES SOLELY TO THE FUNDAMENTAL DOCUMENTS OR ANY OF THE TRANSACTIONS
CONTEMPLATED HEREBY OR THEREBY OR ANY DOCUMENT REFERRED TO HEREIN OR THEREIN,
MAY BE INSTITUTED IN THE CIRCUIT COURT OF THE STATE OF ILLINOIS, XXXX COUNTY OR
THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS AND THAT
THEY HEREBY WAIVE THE RIGHT TO TRIAL BY JURY IN ANY SUCH PROCEEDING; PROVIDED,
HOWEVER, THAT THE FOREGOING PROVISIONS SHALL NOT APPLY TO THIRD PARTY TORT
CLAIMS (BUT SHALL APPLY TO AN INDEMNITY CLAIM WITH RESPECT TO SUCH TORT CLAIM)
AND THAT THE FOREGOING SHALL NOT APPLY TO ANY RIGHT A PARTY MAY HAVE TO SEEK
REMOVAL OF SUCH LEGAL SUIT, ACTION OR PROCEEDING TO FEDERAL COURT OR TO SEEK
CONSOLIDATION OF ANY SEPARATE LEGAL SUITS, ACTIONS OR PROCEEDINGS BROUGHT BY ANY
ONE OR MORE OF THE OTHER PARTIES IN THE SAME OR DIFFERENT JURISDICTIONS. Each
Party hereby waives, and agrees not to assert, by way of motion, as a defense,
or otherwise, in any such suit, action or proceeding, to the extent permitted by
applicable law, that the suit, action or proceeding is improper, or that this
Agreement or any other Fundamental Document or the subject matter of any thereof
or any of the transactions contemplated hereby or thereby may be enforced in
such
20
[Participation Agreement ([______])]
courts. The agreement set forth in this Section 8(b) is given solely for the
benefit of the Parties and such agreement is not intended to and shall not inure
to the benefit of any other person.
SECTION 9. Miscellaneous. (a) Each of the Pass Through
-------------
Trustees and, by its acceptance of an Equipment Note, each subsequent Noteholder
covenants and agrees that it shall not unreasonably withhold its consent to any
consent requested of the Indenture Trustee under the terms of the Indenture.
(b) The representations, warranties, indemnities and
agreements of Owner, the Indenture Trustee, the Pass Through Trustee, the
Subordination Agent and the Noteholders provided for in this Agreement, and
Owner's, Indenture Trustee's, the Pass Through Trustees', the Subordination
Agent's and the Noteholders' obligations under any and all thereof, shall
survive the issuance of the Equipment Notes and the Pass Through Certificates or
the transfer of any interest by any Noteholder in any Equipment Note or the
Indenture Estate and the expiration or other termination of this Agreement or
any other Fundamental Document.
(c) This Agreement may be executed by the parties hereto in
separate counterparts, each of which when so executed and delivered shall be an
original, but all such counterparts shall together constitute but one and the
same instrument. Neither this Agreement nor any of the terms hereof may be
terminated, amended, supplemented, waived or modified, except by an instrument
in writing signed by the party against which the enforcement of the termination,
amendment, supplement, waiver or modification is sought; and no such
termination, amendment, supplement, waiver or modification shall be effective
unless a signed copy thereof shall have been delivered to the Owner and the
Indenture Trustee. The terms of this Agreement shall be binding upon, and inure
to the benefit of and shall be enforceable by, Owner, the Pass Through Trustee,
the Subordination Agent, the Indenture Trustee, the Liquidity Provider and the
Noteholders. THIS AGREEMENT SHALL IN ALL RESPECTS BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF ILLINOIS, INCLUDING ALL
MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE. This Agreement is being
delivered in the State of Illinois.
* * *
21
[Participation Agreement ([______])]
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed by their respective officers thereunto duly authorized as of
the day and year first above written.
UNITED AIR LINES, INC.,
Owner
By:
Title:
STATE STREET BANK AND TRUST
COMPANY OF CONNECTICUT,
NATIONAL ASSOCIATION,
as Indenture Trustee
By:
Title:
STATE STREET BANK AND TRUST
COMPANY OF CONNECTICUT,
NATIONAL ASSOCIATION,
in its capacity as Pass
Through Trustee under each
of the Pass Through Trust
Agreements
By:
Title:
22
[Participation Agreement ([______])]
STATE STREET BANK AND TRUST
COMPANY OF CONNECTICUT,
NATIONAL ASSOCIATION,
as Subordination Agent
By:
Title:
23
[Participation Agreement ([______])]
SCHEDULE I
NAMES AND ADDRESSES
OWNER:
-----
Address for Notices:
If by U.S. Mail
------------------------
United Air Lines, Inc.
X.X. Xxx 00000
Xxxxxxx, Xxxxxxxx 00000
Attn: Assistant Treasurer
Telecopy: (000) 000-0000
If by Overnight Delivery Service
-----------------------------------------
United Air Lines, Inc.
0000 Xxxx Xxxxxxxxx Xxxx
Xxx Xxxxx Xxxxxxxx, XX 00000
Attn: Assistant Treasurer
Telecopy: (000) 000-0000
PASS THROUGH TRUSTEE:
--------------------
Address for Notices:
State Street Bank and Trust
Company of Connecticut, National Association
000 Xxxxxx Xxxxxx
Xxxxxxx Xxxxxx
Xxxxxxxx, Xxxxxxxxxxx 00000
Attn: Corporate Trust Division
Telecopy: 000-000-0000
--------------------------------
--------------------------------
--------------
[Participation Agreement ([______])]
SUBORDINATION AGENT:
-------------------
Address for Notices:
State Street Bank and Trust
Company of Connecticut, National Association
000 Xxxxxx Xxxxxx
Xxxxxxx Xxxxxx
Xxxxxxxx, Xxxxxxxxxxx 00000
Attn: Corporate Trust Division
Telecopy: 000-000-0000
Address for Payments:
State Street Bank and Trust Company
of Connecticut, National Association
ABA: 000000000
Attn: Xxxx X. Xxxxxxx, Corporate Trust Department
Acct: 99039901
Ref: United EETC ([______])
I-2
[Participation Agreement ([______])]
SCHEDULE II
EQUIPMENT NOTES, NOTEHOLDERS
AND ORIGINAL PRINCIPAL AMOUNT
Noteholders Equipment Notes Original Principal Interest Rate
---------- --------------- ------------------ -------------
Amount
------
2000-1A-1 Pass Through Trust A-1 $ 7.783%
2000-1A-2 Pass Through Trust A-2 $ 7.730%
2000-1B Pass Through Trust B $ 8.030%
2000-1C-2 Pass Through Trust C-2 $ 8.450%
[Participation Agreement ([______])]
SCHEDULE III
DESCRIPTION OF PASS THROUGH TRUST AGREEMENTS
United Air Lines, Inc. 2000-1A-1 Pass Through Trust Agreement
United Air Lines, Inc. 2000-1A-2 Pass Through Trust Agreement
United Air Lines, Inc. 2000-1B Pass Through Trust Agreement
United Air Lines, Inc. 2000-1C-2 Pass Through Trust Agreement
