PASS THROUGH TRUST AGREEMENT DATED DECEMBER 21, 2010 BETWEEN US AIRWAYS, INC. AND WILMINGTON TRUST COMPANY AS TRUSTEE
Exhibit 4.1
EXECUTION VERSION
DATED DECEMBER 21, 2010
BETWEEN
US AIRWAYS, INC.
AND
WILMINGTON TRUST COMPANY
AS TRUSTEE
TABLE OF CONTENTS
Page | ||||
ARTICLE I DEFINITIONS |
2 | |||
Section 1.01. Definitions |
2 | |||
Section 1.02. Compliance Certificates and Opinions |
12 | |||
Section 1.03. Form of Documents Delivered to Trustee |
12 | |||
Section 1.04. Directions of Certificateholders |
13 | |||
ARTICLE II ORIGINAL ISSUANCE OF CERTIFICATES: ACQUISITION OF TRUST PROPERTY |
14 | |||
Section 2.01. Amount Unlimited; Issuable in Series |
14 | |||
Section 2.02. Acquisition of Equipment Notes |
17 | |||
Section 2.03. Acceptance by Trustee |
19 | |||
Section 2.04. Limitation of Powers |
19 | |||
ARTICLE III THE CERTIFICATES |
19 | |||
Section 3.01. Form, Denomination and Execution of Certificates |
19 | |||
Section 3.02. Authentication of Certificates |
20 | |||
Section 3.03. Temporary Certificates |
20 | |||
Section 3.04. Transfer and Exchange |
20 | |||
Section 3.05. Book-Entry and Definitive Certificates |
21 | |||
Section 3.06. Mutilated, Destroyed, Lost or Stolen Certificates |
23 | |||
Section 3.07. Persons Deemed Owners |
24 | |||
Section 3.08. Cancellation |
24 | |||
Section 3.09. Limitation of Liability for Payments |
24 | |||
Section 3.10. CUSIP Numbers |
25 | |||
ARTICLE IV DISTRIBUTIONS; STATEMENTS TO CERTIFICATEHOLDERS |
25 | |||
Section 4.01. Certificate Account and Special Payments Account |
25 | |||
Section 4.02. Distributions from Certificate Account and Special Payments Account |
25 | |||
Section 4.03. Statements to Certificateholders |
27 | |||
Section 4.04. Investment of Special Payment Moneys |
28 | |||
ARTICLE V THE COMPANY |
28 | |||
Section 5.01. Maintenance of Corporate Existence |
28 | |||
Section 5.02. Consolidation, Merger, Etc. |
29 |
i
Page | ||||
ARTICLE VI DEFAULT |
30 | |||
Section 6.01. Indenture Events of Default and Triggering Events |
30 | |||
Section 6.02. Incidents of Sale of Equipment Notes |
31 | |||
Section 6.03. Judicial Proceedings Instituted by Trustee; Trustee May Bring Suit |
31 | |||
Section 6.04. Control by Certificateholders |
32 | |||
Section 6.05. Waiver of Past Defaults |
32 | |||
Section 6.06. Right of Certificateholders to Receive Payments Not to Be Impaired |
33 | |||
Section 6.07. Certificateholders May Not Bring Suit Except Under Certain Conditions |
33 | |||
Section 6.08. Remedies Cumulative |
34 | |||
Section 6.09. Undertaking for Costs |
34 | |||
ARTICLE VII THE TRUSTEE |
34 | |||
Section 7.01. Certain Duties and Responsibilities |
34 | |||
Section 7.02. Notice of Defaults |
35 | |||
Section 7.03. Certain Rights of Trustee |
35 | |||
Section 7.04. Not Responsible for Recitals or Issuance of Certificates |
36 | |||
Section 7.05. May Hold Certificates |
36 | |||
Section 7.06. Money Held in Trust |
36 | |||
Section 7.07. Compensation and Reimbursement |
36 | |||
Section 7.08. Corporate Trustee Required; Eligibility |
37 | |||
Section 7.09. Resignation and Removal; Appointment of Successor |
38 | |||
Section 7.10. Acceptance of Appointment by Successor |
39 | |||
Section 7.11. Merger, Conversion, Consolidation or Succession to Business |
40 | |||
Section 7.12. Maintenance of Agencies |
40 | |||
Section 7.13. Money for Certificate Payments to Be Held in Trust |
41 | |||
Section 7.14. Registration of Equipment Notes in Trustee’s Name |
42 | |||
Section 7.15. Representations and Warranties of Trustee |
42 | |||
Section 7.16. Withholding Taxes; Information Reporting |
43 | |||
Section 7.17. Trustee’s Liens |
43 | |||
Section 7.18. Preferential Collection of Claims |
44 | |||
ARTICLE VIII CERTIFICATEHOLDERS’ LISTS AND REPORTS BY TRUSTEE |
44 | |||
Section 8.01. The Company to Furnish Trustee with Names and Addresses of Certificateholders |
44 | |||
Section 8.02. Preservation of Information; Communications to Certificateholders |
44 | |||
Section 8.03. Reports by Trustee |
44 | |||
Section 8.04. Reports by the Company |
44 |
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Page | ||||
ARTICLE IX SUPPLEMENTAL AGREEMENTS |
45 | |||
Section 9.01. Supplemental Agreements without Consent of Certificateholders |
45 | |||
Section 9.02. Supplemental Agreements with Consent of Certificateholders |
47 | |||
Section 9.03. Documents Affecting Immunity or Indemnity |
48 | |||
Section 9.04. Execution of Supplemental Agreements |
49 | |||
Section 9.05. Effect of Supplemental Agreements |
49 | |||
Section 9.06. Conformity with Trust Indenture Act |
49 | |||
Section 9.07. Reference in Certificates to Supplemental Agreements |
49 | |||
ARTICLE X AMENDMENTS TO INDENTURES AND OTHER NOTE DOCUMENTS |
49 | |||
Section 10.01. Amendments and Supplements to Indentures and Other Note Documents |
49 | |||
ARTICLE XI TERMINATION OF TRUSTS |
50 | |||
Section 11.01. Termination of the Trusts |
50 | |||
ARTICLE XII MISCELLANEOUS PROVISIONS |
51 | |||
Section 12.01. Limitation on Rights of Certificateholders |
51 | |||
Section 12.02. Certificates Nonassessable and Fully Paid |
51 | |||
Section 12.03. Registration of Equipment Notes in Name of Subordination Agent |
52 | |||
Section 12.04. Notices |
52 | |||
Section 12.05. Governing Law and Venue; Waiver of Jury Trial |
53 | |||
Section 12.06. Severability of Provisions |
54 | |||
Section 12.07. Trust Indenture Act Controls |
54 | |||
Section 12.08. Effect of Headings and Table of Contents |
54 | |||
Section 12.09. Successors and Assigns |
54 | |||
Section 12.10. Benefits of Agreement |
55 | |||
Section 12.11. Legal Holidays |
55 | |||
Section 12.12. Counterparts |
55 | |||
Section 12.13. Communication by Certificateholders with Other Certificateholders |
55 | |||
Section 12.14. Intention of Parties |
55 | |||
Section 12.15. No Recourse Against Others |
55 |
iii
Reconciliation and tie between US Airways Pass Through Trust Agreement, dated December 21, 2010 and
the Trust Indenture Act of 1939. This reconciliation does not constitute part of the Pass Through
Trust Agreement.
Trust Indenture Act of 1939 Section | Pass Through Trust Agreement Section | |||
310 (a) (1)
|
7.08 | |||
310(a) (2)
|
7.08 | |||
312(a)
|
3.05; 7.12; 8.01; 8.02 | |||
313(a)
|
8.03 | |||
313 (b) |
8.03 | |||
314(a) (l)-(3)
|
8.04(a)-(c) | |||
314(a) (4)
|
8.04(d) | |||
314 (c) (1)
|
1.02 | |||
314 (c) (2)
|
1.02 | |||
314 (d) (1)
|
1.02; 7.13; 11.01 | |||
314 (d) (2)
|
1.02; 7.13; 11.01 | |||
314 (d) (3)
|
2.01 | |||
314 (e)
|
1.02 | |||
315 (b)
|
7.02 | |||
315 (c)
|
7.01 (b) | |||
316 (a) (last sentence)
|
1.04 (c) | |||
316 (a) (1) (A)
|
6.04 | |||
316 (a) (1) (B)
|
6.05 | |||
316 (b)
|
6.06 | |||
316 (c)
|
1.04 (d) | |||
317 (a) (1)
|
6.03 | |||
317 (b)
|
7.13 | |||
318 (a)
|
12.07 |
This PASS THROUGH TRUST AGREEMENT, dated as of December 21, 2010 (the “Basic
Agreement”), between US AIRWAYS, INC., a Delaware corporation (the “Company”), and
WILMINGTON TRUST COMPANY, a Delaware banking corporation, as Trustee, is made with respect to the
formation from time to time of separate US Airways Pass Through Trusts, and the issuance from time
to time of separate series of Pass Through Certificates representing fractional undivided interests
in the respective Trusts.
W I T N E S S E T H:
WHEREAS, from time to time, the Company and the Trustee may enter into a Trust Supplement
(this and certain other defined terms used herein are defined in Section 1.01) pursuant to which
the Trustee shall declare the creation of a separate Trust for the benefit of the Holders of the
series of Certificates to be issued in respect of such Trust, and the initial Holders of the
Certificates of such series, as the grantors of such Trust, by their respective acceptances of the
Certificates of such series, shall join in the creation of such Trust with the Trustee;
1
WHEREAS, all Certificates to be issued in respect of each separate Trust will be issued as a
separate series pursuant to this Agreement, will evidence fractional undivided interests in such
Trust and will have no rights, benefits or interests in respect of any other separate Trust or the
property held therein, subject, however, to the provisions of any Intercreditor Agreement to which
one or more Trusts may be a party and to any provisions to the contrary in any applicable Trust
Supplement;
WHEREAS, from time to time, pursuant to the terms and conditions of this Agreement with
respect to each separate Trust formed under this Agreement, the Trustee on behalf of such Trust
shall purchase one or more issues of Equipment Notes, or notes issued by a separate trust or other
entity secured by Equipment Notes, having the same interest rate as, and final maturity dates not
later than the final Regular Distribution Date of, the series of Certificates issued in respect of
such Trust and, subject to the terms of any related Intercreditor Agreement and to any terms to the
contrary in any applicable Trust Supplement, shall hold such Equipment Notes in trust for the
benefit of the Certificateholders of such Trust;
WHEREAS, to facilitate the sale of Equipment Notes to, and the purchase of Equipment Notes by,
the Trustee on behalf of each Trust created from time to time pursuant to this Agreement, the
Company as the “issuer,” as such term is defined in and solely for purposes of the Securities Act
of 1933, as amended, of the Certificates to be issued in respect of each Trust and as the
“obligor”, as such term is defined in and solely for purposes of the Trust Indenture Act has duly
authorized the execution and delivery of this Basic Agreement and is undertaking to perform certain
administrative and ministerial duties under this Agreement and is also undertaking to pay the fees
and expenses of the Trustee; and
WHEREAS, this Basic Agreement, as supplemented from time to time, is subject to the provisions
of the Trust Indenture Act and shall, to the extent applicable, be governed by such provisions;
NOW, THEREFORE, in consideration of the mutual agreements herein contained, and of other good
and valuable consideration the receipt and adequacy of which are hereby acknowledged, the parties
hereto agree as follows:
ARTICLE I
DEFINITIONS
Section 1.01. Definitions. For all purposes of this Basic Agreement, except as
otherwise expressly provided or unless the context otherwise requires:
(1) the terms used herein that are defined in this Article I have the meanings assigned
to them in this Article I, and include the plural as well as the singular;
(2) all other terms used herein that are defined in the Trust Indenture Act, either
directly or by reference therein, or by the rules promulgated under the Trust Indenture Act,
have the meanings assigned to them therein;
2
(3) all references in this Basic Agreement to designated “Articles,” “Sections,”
“Subsections” and other subdivisions are to the designated Articles, Sections, Subsections
and other subdivisions of this Basic Agreement;
(4) the words “herein,” “hereof” and “hereunder” and other words of similar import
refer to this Basic Agreement as a whole and not to any particular Article, Section,
Subsection or other subdivision;
(5) unless the context otherwise requires, whenever the words “including,” “include” or
“includes” are used herein, it shall be deemed to be followed by the phrase “without
limitation”; and
(6) the term “this Agreement” (as distinguished from “this Basic Agreement”) refers,
unless the context otherwise requires, to this Basic Agreement as supplemented by the Trust
Supplement creating a particular Trust and establishing the series of Certificates issued or
to be issued in respect thereof, with reference to such Trust and such series of
Certificates, as this Basic Agreement as so supplemented may be further supplemented with
respect to such Trust and such series of Certificates.
Act: Has the meaning, with respect to any Certificateholder, specified in Section
1.04(a).
Affiliate: Means, with respect to any specified Person, any other Person directly or
indirectly controlling or controlled by or under direct or indirect common control with such
Person. For the purposes of this definition, “Control,” when used with respect to any specified
Person, means the power, directly or indirectly, to direct the management and policies of such
Person, whether through the ownership of voting securities or by contract or otherwise, and the
terms “controlling” and “controlled” have meanings correlative to the foregoing.
Aircraft: Means one or more aircraft, including engines therefor, owned by or leased
to the Company and securing one or more Equipment Notes.
Authorized Agent: Means, with respect to the Certificates of any series, any Paying
Agent or Registrar for the Certificates of such series.
Avoidable Tax: Has the meaning specified in Section 7.09(e).
Basic Agreement: Means this Pass Through Trust Agreement, as the same may from time
to time be supplemented, amended or modified, but does not include any Trust Supplement.
Book-Entry Certificates: Means, with respect to the Certificates of any series, a
beneficial interest in the Certificates of such series, ownership and transfers of which shall be
made through book entries as described in Section 3.05.
Business Day: Means, with respect to the Certificates of any series, any day other
than a Saturday, a Sunday or a day on which commercial banks are required or authorized to close in
Phoenix, Arizona, New York, New York, or, so long as any Certificate of such series is outstanding,
the city and state in which the Trustee or any related Loan Trustee maintains its Corporate Trust
Office or receives and disburses funds.
3
Certificate: Means any one of the certificates executed and authenticated by the
Trustee, substantially in the form attached to the Trust Supplement establishing such series of
Certificates.
Certificate Account: Means, with respect to the Certificates of any series, the
account or accounts created and maintained for such series pursuant to Section 4.01(a) and the
related Trust Supplement.
Certificateholder or Holder: Means, with respect to the Certificates of any
series, the Person in whose name a Certificate of such series is registered in the Register for
Certificates of such series.
Certificate Owner: Means, with respect to the Certificates of any series, for
purposes of Section 3.05, the Person who owns a Book-Entry Certificate of such series.
Clearing Agency: Means an organization registered as a “clearing agency” pursuant to
Section 17A of the Securities Exchange Act of 1934, as amended.
Clearing Agency Participant: Means a broker, dealer, bank, other financial
institution or other Person for whom from time to time a Clearing Agency effects, directly or
indirectly, book-entry transfers and pledges of securities deposited with the Clearing Agency.
Company: Means US Airways, Inc., a Delaware corporation, or its successor in interest
pursuant to Section 5.02, or (only in the context of provisions hereof, if any, when such reference
is required for purposes of compliance with the Trust Indenture Act) any other “obligor” (within
the meaning of the Trust Indenture Act) with respect to the Certificates of any series.
Controlling Party: Means, with respect to the Certificates of any series, the Person
entitled to act as such pursuant to the terms of the related Intercreditor Agreement.
Corporate Trust Office: Means, with respect to the Trustee or any Loan Trustee, the
office of such trustee in the city at which at any particular time its corporate trust business
shall be principally administered.
Cut-Off Date: Means, with respect to the Certificates of any series, the date
designated as such in the Trust Supplement establishing such series.
Definitive Certificates: Has the meaning, with respect to the Certificates of any
series, specified in Section 3.05.
Direction: Has the meaning specified in Section 1.04(a).
Distribution Date: Means any Regular Distribution Date, Special Distribution Date or
Initial Regular Distribution Date.
Equipment Notes: Means, with respect to any Trust, any one of the notes, certificates
or instruments issued pursuant to any Indenture and described as “Equipment Notes” in, or on a
schedule attached to, the Trust Supplement in respect of such Trust and to be held by the Trustee
4
as part of such Trust, including any Equipment Note (as so defined) issued under the
applicable Indenture in replacement thereof or substitution therefor.
ERISA: Means the Employee Retirement Income Security Act of 1974, as amended from
time to time, or any successor federal statute.
Escrow Account: Has the meaning, with respect to any Trust, specified in Section
2.02(b).
Escrowed Funds: Has the meaning, with respect to any Trust, specified in Section
2.02(b).
Event of Default: Means, in respect of any Trust, an Indenture Event of Default under
any Indenture pursuant to which Equipment Notes held by such Trust were issued and such other event
as may be designated under the related Trust Supplement as an “Event of Default.”
Fractional Undivided Interest: Means the fractional undivided interest in a Trust
that is evidenced by a Certificate relating to such Trust.
Guarantee: Means, with respect to the Certificates of any series, a guarantee by the
Parent of the obligations of the Company under any Equipment Notes or any Leases related to
Equipment Notes to be acquired and held in the Trust as to which the Certificates of such series
represent fractional undivided interests.
Indenture: Means, with respect to any Trust, each of the one or more separate trust
indenture and security agreements or trust indenture and mortgages or similar documents described
in, or on a schedule attached to, the Trust Supplement and an indenture having substantially the
same terms and conditions which relates to a Substitute Aircraft, as each such indenture may be
amended or supplemented in accordance with its respective terms; and “Indentures” means all of such
agreements.
Indenture Event of Default: Means, with respect to any Indenture, any Indenture Event
of Default (as such term is defined in such Indenture).
Initial Regular Distribution Date: Means, with respect to the Certificates of any
series, the first Regular Distribution Date on which a Scheduled Payment is to be made.
Intercreditor Agreement: Means (a) any agreement by and among the Trustee, as trustee
hereunder with respect to one or more Trusts, one or more Liquidity Providers, if applicable, and a
Subordination Agent providing, among other things, for the distribution of payments made in respect
of Equipment Notes held by such Trusts, or (b) such other agreement or agreements designated as an
“Intercreditor Agreement” in the Trust Supplement relating to any Trust.
Issuance Date: Means, with respect to the Certificates of any series, the date of the
issuance of such Certificates.
Lease: Means any lease between an Owner Trustee, as the lessor (or such other Person
acting as the lessor), and the Company, as the lessee, referred to in the related Indenture, as
such
5
lease may be amended, supplemented or otherwise modified in accordance with its terms; and
“Leases” means all such Leases.
Letter of Representations: Means, with respect to the Certificates of any series, an
agreement among the Company, the Trustee and the initial Clearing Agency substantially in the form
attached as an Exhibit to the related Trust Supplement, as such letter may be modified or
supplemented, or any successor letter thereto.
Liquidity Facility: Means, with respect to the Certificates of any series or any
Equipment Notes, (a) any revolving credit agreement, letter of credit, bank guarantee, insurance
policy, surety bond or financial guaranty or any other type of agreement or arrangement for the
provision of insurance, a guarantee or other credit enhancement or liquidity support relating to
the Certificates of such series between a Liquidity Provider and a Subordination Agent or one or
more other Persons, as amended, replaced, supplemented or otherwise modified from time to time in
accordance with its terms and, if applicable, the terms of any Intercreditor Agreement, or (b) such
other agreement or agreements designated as a “Liquidity Facility” in the Trust Supplement relating
to any Trust.
Liquidity Provider: Means, with respect to the Certificates of any series, a bank,
insurance company, financial institution or other Person that agrees to provide a Liquidity
Facility for the benefit of the holders of Certificates of such series.
Loan Trustee: Means, with respect to any Equipment Note or the Indenture applicable
thereto, the bank, trust company or other financial institution designated as loan or indenture
trustee under such Indenture, and any successor to such Loan Trustee as such trustee; and “Loan
Trustees” means all of the Loan Trustees under the Indentures.
Note Documents: Means, with respect to the Certificates of any series, the Equipment
Notes with respect to such Certificates and, with respect to such Equipment Notes, the related
Participation Agreement, Indenture, Note Purchase Agreement, Purchase Agreement Assignment and, if
the related Aircraft is leased to the Company, the Lease and the Trust Agreement relating to such
Aircraft, and, if the Parent has guaranteed the obligations of the Company under any such Equipment
Notes or Leases, the Guarantee.
Note Purchase Agreement: Means, with respect to the Certificates of any series, any
note purchase, refunding, participation or similar agreement providing for, among other things, the
purchase of Equipment Notes by the Trustee on behalf of the relevant Trust; and “Note Purchase
Agreements” means all such agreements.
Officer’s Certificate: Means a certificate signed, (a) in the case of the Company by
(i) the Chairman or Vice Chairman of the Board of Directors, the President, any Executive Vice
President, any Senior Vice President or the Treasurer of the Company signing alone, or (ii) any
Vice President of the Company signing together with the Secretary, the Assistant Secretary, the
Treasurer or any Assistant Treasurer of the Company or (b) in the case of the Trustee or an Owner
Trustee or a Loan Trustee, a Responsible Officer of the Trustee or such Owner Trustee or such Loan
Trustee, as the case may be.
6
Opinion of Counsel: Means a written opinion of legal counsel who (a) in the case of
counsel for the Company may be (i) a senior attorney of the Company one of whose principal duties
is furnishing advice as to legal matters, (ii) Xxxxxx & Xxxxxxx LLP or (iii) such other counsel
designated by the Company and reasonably acceptable to the Trustee and (b) in the case of any Owner
Trustee or any Loan Trustee, may be such counsel as may be designated by any of them whether or not
such counsel is an employee of any of them, and who shall be reasonably acceptable to the Trustee.
Other Agreements: Has the meaning specified in Section 6.01(b).
Outstanding: When used with respect to Certificates of any series, means, as of the
date of determination, all Certificates of such series theretofore authenticated and delivered
under this Agreement, except:
(i) Certificates of such series theretofore cancelled by the Registrar or
delivered to the Trustee or the Registrar for cancellation;
(ii) All of the Certificates of such series if money in the full amount
required to make the final distribution with respect to such series pursuant to
Section 11.01 hereof has been theretofore deposited with the Trustee in trust for
the Holders of the Certificates of such series as provided in Section 4.01, pending
distribution of such money to such Certificateholders pursuant to payment of such
final distribution payment; and
(iii) Certificates of such series in exchange for or in lieu of which other
Certificates of such series have been authenticated and delivered pursuant to this
Agreement.
Owner Participant: Means, with respect to any Equipment Note, the “Owner
Participant”, if any, 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: Means, with respect to any Equipment Note, the “Owner Trustee”, if
any, 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 related Indentures.
Parent: Means US Airways Group, Inc., a Delaware corporation, and its successors and
assigns.
Paying Agent: Means, with respect to the Certificates of any series, the paying agent
maintained and appointed for the Certificates of such series pursuant to Section 7.12.
Permitted Investments: Means obligations of the United States of America or agencies
or instrumentalities thereof for the payment of which the full faith and credit of the United
States of America is pledged, maturing in not more than 60 days after the date of acquisition
thereof or
7
such lesser time as is required for the distribution of any Special Payments on a Special
Distribution Date.
Person: Means any person, including any individual, corporation, limited liability
company, partnership, joint venture, association, joint-stock company, trust, trustee,
unincorporated organization, or government or any agency or political subdivision thereof.
Pool Balance: Means, with respect to the Certificates of any series as of any date,
except to the extent otherwise provided in the applicable Trust Supplement, (i) the original
aggregate face amount of the Certificates of such series less (ii) the aggregate amount of all
distributions made in respect of such Certificates other than distributions 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
the payment of principal, if any, on the Equipment Notes or other Trust Property held in the Trust
and the distribution thereof to be made on such Distribution Date.
Pool Factor: Means, with respect to any series of Certificates as of any date, except
to the extent otherwise provided in the applicable Trust Supplement, the quotient (rounded to the
seventh decimal place) computed by dividing (i) the Pool Balance of such series as of such date by
(ii) the original aggregate face amount of the Certificates of such series. The Pool Factor as of
any Distribution Date shall be computed after giving effect to the payment of principal, if any, on
the Equipment Notes or other Trust Property held in the Trust relating to such series and the
distribution thereof to be made on such Distribution Date.
Postponed Notes: Means, with respect to any Trust or the related series of
Certificates, the Equipment Notes to be held in such Trust as to which a Postponement Notice shall
have been delivered pursuant to Section 2.02(b).
Postponement Notice: Means, with respect to any Trust or the related series of
Certificates, an Officer’s Certificate of the Company (1) requesting that the Trustee temporarily
postpone purchase of the related Equipment Notes to a date later than the Issuance Date of such
series of Certificates, (2) identifying the amount of the purchase price of each such Equipment
Note and the aggregate purchase price for all such Equipment Notes, (3) setting forth the reasons
for such postponement and (4) with respect to each such Equipment Note, either (a) setting or
resetting a new Transfer Date (which shall be on or prior to the applicable Cut-off Date) for
payment by the Trustee of such purchase price and issuance of the related Equipment Note (subject
to subsequent change from time to time in accordance with the relevant Note Purchase Agreement), or
(b) indicating that such new Transfer Date (which shall be on or prior to the applicable Cut-off
Date) will be set by subsequent written notice not less than one Business Day prior to such new
Transfer Date (subject to subsequent change from time to time in accordance with the relevant Note
Purchase Agreement).
Potential Purchaser: Has the meaning, with respect to any Certificateholder,
specified in Section 6.01(b).
PTC Event of Default: Means, with respect to the Certificates of any series, any
failure to pay within ten Business Days of the due date thereof: (i) the outstanding Pool Balance
of such
8
series of Certificates on the date specified in any Trust Supplement for such payment or (ii)
interest due on the Certificates of such series on any Distribution Date (unless the related
Subordination Agent shall have made an Interest Drawing or Drawings (as defined in the related
Intercreditor Agreement), or a withdrawal or withdrawals pursuant to a cash collateral account
under such Intercreditor Agreement, with respect thereto in an aggregate amount sufficient to pay
such interest and shall have distributed such amount to the Trustee).
Purchase Agreement Assignment: Has the meaning, with respect to the Certificates of
any series, specified therefor in the related Participation Agreement.
Purchasing Certificateholder: Has the meaning, with respect to any Certificateholder,
specified in Section 6.01(b).
Record Date: Means, with respect to any Trust or the related series of Certificates,
(i) for Scheduled Payments to be distributed on any Regular Distribution Date, other than the final
distribution with respect to such series, the 15th day (whether or not a Business Day) preceding
such Regular Distribution Date, or such other date as shall be specified for such series in the
applicable Trust Supplement, and (ii) for Special Payments to be distributed on any Special
Distribution Date, other than the final distribution with respect to such series, the 15th day
(whether or not a Business Day) preceding such Special Distribution Date, or such other date as
shall be specified for such series in the applicable Trust Supplement.
Register and Registrar: Means, each with respect to the Certificates of any
series, the register maintained and the registrar appointed pursuant to Sections 3.04 and 7.12.
Regular Distribution Date: Means, with respect to distributions of Scheduled Payments
in respect of any series of Certificates, each date designated as such in this Agreement, until
payment of all the Scheduled Payments to be made under the Equipment Notes held in the Trust have
been made, or until such Equipment Notes have been redeemed or otherwise prepaid in full;
provided that, if any such day is not a Business Day, the related distribution shall be
made on the next succeeding Business Day.
Request: Means a request by the Company setting forth the subject matter of the
request accompanied by an Officer’s Certificate and an Opinion of Counsel as provided in Section
1.02 of this Basic Agreement.
Responsible Officer: Means, with respect to any Trustee, any Loan Trustee and any
Owner Trustee, any officer in the Corporate Trust Department or similar department of the Trustee,
Loan Trustee or Owner Trustee or any other officer customarily performing functions similar to
those performed by the persons who at the time shall be such officers, respectively, or to whom any
corporate trust matter is referred because of his knowledge of and familiarity with a particular
subject.
Responsible Party: Means, with respect to the Certificates of any series, the Person
designated as such in the related Trust Supplement.
Scheduled Payment: Means, with respect to any Equipment Note, except to the extent
otherwise provided in the applicable Trust Supplement, (i) any payment of principal or interest
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on such Equipment Note (other than any such payment which is not in fact received by the
Trustee or any Subordination Agent within five days after the date on which such payment is
scheduled to be made) or (ii) any payment of interest on the Certificates of any series with funds
drawn under the Liquidity Facility for such series (other than any such payment which is not in
fact received by the Trustee or any Subordination Agent within five days after the date upon which
payment is scheduled to be made), which payment in the case of clauses (i) or (ii) represents an
installment of principal on such Equipment Note at the stated maturity of such installment, the
payment of regularly scheduled interest accrued on the unpaid principal amount of such Equipment
Note, or both; provided, however, that any payment of principal, premium, if any,
or interest resulting from the redemption or purchase of any Equipment Note shall not constitute a
Scheduled Payment.
SEC: Means the Securities and Exchange Commission, as from time to time constituted
or created under the Securities Exchange Act of 1934, as amended, or, if at any time after the
execution of this instrument such Commission is not existing and performing the duties now assigned
to it under the Trust Indenture Act, then the body performing such duties on such date.
Selling Certificateholder: Has the meaning, with respect to any Certificateholder,
specified in Section 6.01(b).
Special Distribution Date: Means, with respect to the Certificates of any series,
each date on which a Special Payment is to be distributed as specified in this Agreement;
provided that, if any such day is not a Business Day, the related distribution shall be
made on the next succeeding Business Day.
Special Payment: Means, except to the extent otherwise provided in the applicable
Trust Supplement, (i) any payment (other than a Scheduled Payment) in respect of, or any proceeds
of, any Equipment Note or Trust Indenture Estate (as defined in each Indenture relating to such
Trust), (ii) the amounts required to be distributed pursuant to the last paragraph of Section
2.02(b), or (iii) the amounts required to be distributed pursuant to the penultimate paragraph of
Section 2.02(b).
Special Payment Accounts: Means, with respect to the Certificates of any series, the
account or accounts created and maintained for such series pursuant to Section 4.01(b) and the
related Trust Supplement.
Specified Investments: Means, with respect to any Trust, unless otherwise specified
in the related Trust Supplement, (i) obligations of, or guaranteed by, the United States Government
or agencies thereof, (ii) open market commercial paper of any corporation incorporated under the
laws of the United States of America or any state thereof rated at least P-2 or its equivalent by
Xxxxx’x Investors Service, Inc. (“Moody’s”) or at least A-2 or its equivalent by Standard &
Poor’s Ratings Services, a Standard & Poor’s Financial Services LLC business (“S&P”), (iii)
certificates of deposit issued by commercial banks organized under the laws of the United States or
of any political subdivision thereof having a combined capital and surplus in excess of
$500,000,000 which banks or their holding companies have a rating of A or its equivalent by Moody’s
or A2 or its equivalent by S&P; provided, however, that the aggregate amount at any
one time so invested in certificates of deposit issued by any one bank shall not exceed 5% of
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such bank’s capital and surplus, (iv) U.S. dollar-denominated offshore certificates of deposit
issued by, or offshore time deposits with, any commercial bank described in clause (iii) above or
any subsidiary thereof and (v) repurchase agreements with any financial institution having combined
capital and surplus of at least $500,000,000 with any of the obligations described in clauses (i)
through (iv) above as collateral; provided further, that if all of the above
investments are unavailable, the entire amounts to be invested may be used to purchase federal
funds from an entity described in clause (iii) above.
Subordination Agent: Has the meaning, with respect to the Certificates of any series,
specified therefor in the relevant Intercreditor Agreement.
Substitute Aircraft: Means, with respect to any Trust, any Aircraft of a type
specified in this Agreement and, at the election of the Company, substituted prior to the
applicable Cut-off Date, if any, pursuant to the terms of this Agreement.
Transfer Date: Has the meaning, with respect to the Certificates of any series,
assigned to that term or any of the terms “Delivery Date,” “Funding Date” or “Closing Date” in any
relevant Note Purchase Agreement, and in any event refers to any such date as it may be changed
from time to time in accordance with the terms of such Note Purchase Agreement.
Triggering Event: Has the meaning, with respect to the Certificates of any series,
specified therefor in the relevant Intercreditor Agreement.
Trust: Means, with respect to the Certificates of any series, the separate trust
created under this Agreement.
Trustee: Means Wilmington Trust Company, or its successor in interest, and any
successor or other trustee appointed as provided herein.
Trust Indenture Act: Except as otherwise provided in Section 9.06, means, with
respect to any particular Trust, the Trust Indenture Act of 1939, as in force at the date as of
which the related Trust Supplement was executed.
Trust Property: Means, with respect to any Trust, except to the extent otherwise
provided in the applicable Trust Supplement, (i) subject to any related Intercreditor Agreement,
the Equipment Notes held as the property of such Trust, the related Guarantee, if any, all monies
at any time paid thereon and all monies due and to become due thereunder, (ii) debt instruments
issued by the Company in accordance with the first paragraph of Section 2.02(b), (iii) funds from
time to time deposited in the related Escrow Account, the related Certificate Account and the
related Special Payments Account and, subject to any related Intercreditor Agreement, any proceeds
from the sale by the Trustee pursuant to Article VI hereof of any Equipment Note referred to in (i)
above, (iv) all rights of such Trust and the Trustee, on behalf of the Trust, under any
Intercreditor Agreement or Note Purchase Agreement, including, without limitation, all monies
receivable in respect of such rights, and (v) all monies receivable under any Liquidity Facility
for such Trust.
Trust Supplement: Means an agreement supplemental hereto pursuant to which (i) a
separate Trust is created for the benefit of the Holders of the Certificates of a series, (ii) the
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issuance of the Certificates of such series representing fractional undivided interests in
such Trust is authorized and (iii) the terms of the Certificates of such series are established, as
such agreement may from time to time be supplemented, amended or otherwise modified.
Section 1.02. Compliance Certificates and Opinions. Upon any application or request
(except with respect to matters set forth in Article II) by the Company, any Owner Trustee or any
Loan Trustee to the Trustee to take any action under any provision of this Basic Agreement or, in
respect of the Certificates of any series, this Agreement, the Company, such Owner Trustee or such
Loan Trustee, as the case may be, shall furnish to the Trustee (i) an Officer’s Certificate stating
that, in the opinion of the signer or signers, all conditions precedent, if any, provided for in
this Basic Agreement or this Agreement relating to the proposed action have been complied with and
(ii) an Opinion of Counsel stating that in the opinion of such counsel all such conditions
precedent, if any, have been complied with, except that in the case of any such application or
request as to which the furnishing of such documents is specifically required by any provision of
this Basic Agreement or this Agreement relating to such particular application or request, no
additional certificate or opinion need be furnished.
Every Officer’s Certificate or Opinion of Counsel with respect to compliance with a condition
or covenant provided for in this Basic Agreement or, in respect of the Certificates of any series,
this Agreement (other than a certificate provided pursuant to Section 8.04(d)) or any Trust
Supplement shall include:
(1) a statement that (x) each individual signing such certificate or (y) each firm or
person executing such Opinion of Counsel has read such covenant or condition and the
definitions in this Basic Agreement or this Agreement relating thereto;
(2) a brief statement as to the nature and scope of the examination or investigation
upon which the statements or opinions contained in such certificate or Opinion of Counsel
are based;
(3) a statement that, in the opinion of each such individual or firm, he or it has made
such examination or investigation as is necessary to enable him or it to express an informed
opinion as to whether or not such covenant or condition has been complied with; and
(4) a statement as to whether, in the opinion of each such individual or firm, such
condition or covenant has been complied with.
Section 1.03. Form of Documents Delivered to Trustee. In any case where several
matters are required to be certified by, or covered by an opinion of, any specified Person, it is
not necessary that all such matters be certified by, or covered by the opinion of, only one such
Person, or that they be so certified or covered by only one document, but one such Person may
certify or give an opinion with respect to some matters and one or more other such Persons as to
other matters and any such Person may certify or give an opinion as to such matters in one or
several documents.
Where any Person is required to make, give or execute two or more applications, requests,
consents, certificates, statements, opinions or other instruments under this Basic
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Agreement or, in respect of the Certificates of any series, this Agreement, they may, but need
not, be consolidated and form one instrument.
Section 1.04. Directions of Certificateholders. (a) Any direction, consent, request,
demand, authorization, notice, waiver or other action provided by this Agreement in respect of the
Certificates of any series to be given or taken by Certificateholders (a “Direction”) may
be embodied in and evidenced by one or more instruments of substantially similar tenor signed by
such Certificateholders in person or by an agent or proxy duly appointed in writing; and, except as
herein otherwise expressly provided, such action shall become effective when such instrument or
instruments are delivered to the Trustee and, when it is expressly required pursuant to this
Agreement, to the Company or any Loan Trustee. Such instrument or instruments (and the action
embodied therein and evidenced thereby) are herein sometimes referred to as the “Act” of
the Certificateholders signing such instrument or instruments. Proof of execution of any such
instrument or of a writing appointing any such agent or proxy shall be sufficient for any purpose
of this Agreement and conclusive in favor of the Trustee, the Company and the related Loan Trustee,
if made in the manner provided in this Section 1.04.
(b) The fact and date of the execution by any Person of any such instrument or writing may be
proved by the certificate of any notary public or other officer of any jurisdiction authorized to
take acknowledgments of deeds or administer oaths that the Person executing such instrument
acknowledged to him the execution thereof, or by an affidavit of a witness to such execution sworn
to before any such notary or such other officer, and where such execution is by an officer of a
corporation or association or a member of a partnership, on behalf of such corporation, association
or partnership, such certificate or affidavit shall also constitute sufficient proof of his
authority. The fact and date of the execution of any such instrument or writing, or the authority
of the Person executing the same, may also be proved in any other reasonable manner which the
Trustee deems sufficient.
(c) In determining whether the Certificateholders of the requisite Fractional Undivided
Interests of Certificates of any series Outstanding have given any Direction under this Agreement,
Certificates owned by the Company, any related Owner Trustee, any related Owner Participant or any
Affiliate of any such Person shall be disregarded and deemed not to be Outstanding for purposes of
any such determination. In determining whether the Trustee shall be protected in relying upon any
such Direction, only Certificates which the Trustee knows to be so owned shall be so disregarded.
Notwithstanding the foregoing, (i) if any such Person owns 100% of the Certificates of any series
Outstanding, such Certificates shall not be so disregarded, and (ii) if any amount of Certificates
of any series so owned by any such Person have been pledged in good faith, such Certificates shall
not be disregarded if the pledgee establishes to the satisfaction of the Trustee the pledgee’s
right so to act with respect to such Certificates and that the pledgee is not the Company, any
related Owner Trustee, any related Owner Participant or any Affiliate of any such Person.
(d) The Company may, at its option, by delivery of an Officer’s Certificate to the Trustee,
set a record date to determine the Certificateholders in respect of the Certificates of any series
entitled to give any Direction. Notwithstanding Section 316 (c) of the Trust Indenture Act, such
record date shall be the record date specified in such Officer’s Certificate, which shall be a date
not more than 30 days prior to the first solicitation of Certificateholders of the
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applicable series in connection therewith. If such a record date is fixed, such Direction may
be given before or after such record date, but only the Certificateholders of record of the
applicable series at the close of business on such record date shall be deemed to be
Certificateholders for the purposes of determining whether Certificateholders of the requisite
proportion of Outstanding Certificates of such series have authorized or agreed or consented to
such Direction, and for that purpose the Outstanding Certificates of such series shall be computed
as of such record date; provided, however, that no such Direction by the
Certificateholders on such record date shall be deemed effective unless it shall become effective
pursuant to the provisions of this Agreement not later than one year after such record date.
(e) Any Direction by the Holder of any Certificate shall bind the Holder of every Certificate
issued upon the transfer thereof or in exchange therefor or in lieu thereof, whether or not
notation of such Direction is made upon such Certificate.
(f) Except as otherwise provided in Section 1.04(c), Certificates of any series owned by or
pledged to any Person shall have an equal and proportionate benefit under the provisions of this
Agreement, without preference, priority or distinction as among all of the Certificates of such
series.
ARTICLE II
ORIGINAL ISSUANCE OF CERTIFICATES: ACQUISITION OF TRUST PROPERTY
Section 2.01. Amount Unlimited; Issuable in Series. (a) The aggregate face amount of
Certificates that may be authenticated and delivered under this Basic Agreement is unlimited. The
Certificates may be issued from time to time in one or more series and shall be designated
generally as the “Pass Through Certificates”, with such further designations added or incorporated
in such title for the Certificates of each series as are specified in the related Trust Supplement.
Each Certificate shall bear upon its face the designation so selected for the series to which it
belongs. All Certificates of the same series shall be substantially identical except that the
Certificates of a series may differ as to denomination and as may otherwise be provided in the
Trust Supplement establishing the Certificates of such series. Each series of Certificates issued
pursuant to this Agreement will evidence fractional undivided interests in the related Trust and,
except as may be specified in any Intercreditor Agreement or in the applicable Trust Supplement,
will have no rights, benefits or interests in respect of any other Trust or the Trust Property held
therein. All Certificates of the same series shall be in all respects equally and ratably entitled
to the benefits of this Agreement without preference, priority or distinction on account of the
actual time or times of authentication and delivery, all in accordance with the terms and
provisions of this Agreement.
(b) The following matters shall be established with respect to the Certificates of each series
issued under this Agreement by a Trust Supplement executed and delivered (x) by and between the
Company and the Trustee, or (y) if the Parent will guarantee the obligations of the Company under
any Equipment Notes or any Leases related to Equipment Notes to be acquired and held in the Trust
formed by such Trust Supplement, by and among the Parent, the Company and the Trustee:
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(1) the formation of the Trust as to which the Certificates of such series represent
fractional undivided interests and its designation (which designation shall distinguish such
Trust from each other Trust created under this Basic Agreement and a Trust Supplement);
(2) the specific title of the Certificates of such series (which title shall
distinguish the Certificates of such series from each other series of Certificates created
under this Basic Agreement and a Trust Supplement);
(3) subject to Section 2.01(a), any limit upon the aggregate face amount of the
Certificates of such series which may be authenticated and delivered under this Basic
Agreement (which limit shall not pertain to Certificates authenticated and delivered upon
registration of transfer of, or in exchange for, or in lieu of, other Certificates of the
series pursuant to Sections 3.03, 3.04, 3.05(d) and 3.06);
(4) the Cut-off Date with respect to the Certificates of such series and the related
Trust;
(5) the Regular Distribution Dates applicable to the Certificates of such series;
(6) the Special Distribution Dates applicable to the Certificates of such series;
(7) if other than as provided in Sections 3.04 or 7.12(b), the Registrar or the Paying
Agent for the Certificates of such series, including any Co-Registrar or additional Paying
Agent;
(8) if other than as provided in Section 3.01, the denominations in which the
Certificates of such series shall be issuable;
(9) if other than United States dollars, the currency or currencies (including
composite currencies or currency units) in which the Certificates of such series shall be
denominated or payable, in whole or in part;
(10) the specific form of the Certificates of such series (including the interest rate
applicable thereto) and whether or not Certificates of such series are to be issued as
Book-Entry Certificates and, if such Certificates are to be Book-Entry Certificates, the
form of Letter of Representations, if any (or, in the case of any Certificates denominated
or payable in a currency other than United States dollars and if other than as provided in
Section 3.05, whether and the circumstances under which beneficial owners of interests in
such Certificates in permanent global form may exchange such interests for Certificates of
such series and of like tenor of any authorized form and denomination);
(11) a description of the Equipment Notes, and, if applicable, of any notes issued by a
trust or other entity secured by Equipment Notes, to be acquired and held in the Trust
formed by such Trust Supplement and of the related Aircraft, if determined, and Note
Documents, if determined;
15
(12) provisions with respect to the terms for which the definitions set forth in
Article I hereof or the terms of any Section of this Basic Agreement, including Section
11.01, permit or require further specification in the related Trust Supplement;
(13) any restrictions (including legends) in respect of ERISA or tax matters;
(14) the acceptance of appointment by the institution named to act as Trustee with
respect to such Trust, if different from the institution executing this Basic Agreement or
its successor;
(15) whether such series will be subject to an Intercreditor Agreement and, if so, the
specific designation of such Intercreditor Agreement and the rights of Potential Purchasers
upon the occurrence of a Triggering Event;
(16) whether such series will have the benefit of a Liquidity Facility or other form of
credit enhancement and, if so, any terms appropriate thereto;
(17) whether the Parent will guarantee the obligations of the Company under any
Equipment Notes or any Leases related to Equipment Notes to be acquired and held in the
Trust formed by such Trust Supplement and, if so, the specific form of such Guarantee or
Guarantees and a statement that the Parent shall be an “obligor” as such term is defined in
and solely for purposes of the Trust Indenture Act and shall be required to comply with
those provisions of this Agreement compliance with which is required by an “obligor” under
the Trust Indenture Act;
(18) whether there will be a deposit agreement, escrow agreement or other arrangement
prior to the delivery of one or more Aircraft or the commencement of the Lease with respect
to one or more Aircraft, and, if so, any terms appropriate thereto;
(19) the extent, if any, to which the Company may acquire Certificates and deliver such
Certificates or cash to the respective Trusts and obtain the release of Equipment Notes or
other Trust Property held by such Trusts;
(20) if the Certificates of such series are to be issued in bearer form, the forms
thereof and any other special terms relating thereto;
(21) the “Responsible Party” for purposes of directing the Trustee to make Specified
Investments; and
(22) any other terms of the Certificates of such series or any related Guarantee (which
terms shall not be inconsistent with the provisions of the Trust Indenture Act but may
modify, amend, supplement or delete any of the terms of this Basic Agreement), including any
terms of the Certificates of such series which may be required or advisable under United
States laws or regulations or advisable (as determined by the Company) in connection with
the marketing of Certificates of the series.
(c) At any time and from time to time after the execution and delivery of this Basic Agreement
and a Trust Supplement forming a Trust and establishing the terms of
16
Certificates of a series, Certificates of such series shall be executed, authenticated and
delivered by the Trustee to the Person or Persons specified by the Company upon request of the
Company and upon satisfaction or waiver of any conditions precedent set forth in such Trust
Supplement or in any other document to which a Trustee is a party relating to the issuance of the
Certificates of such series.
Section 2.02. Acquisition of Equipment Notes. (a) Unless otherwise specified in the
related Trust Supplement, on or prior to the Issuance Date of the Certificates of a series, the
Trustee shall execute and deliver the related Note Purchase Agreements in the form delivered to the
Trustee by the Company and shall, subject to the respective terms thereof, perform its obligations
under such Note Purchase Agreements. Unless otherwise specified in the related Trust Supplement,
the Trustee shall issue and sell such Certificates, in authorized denominations and in such
Fractional Undivided Interests, so as to result in the receipt of consideration in an amount equal
to the aggregate purchase price of the Equipment Notes (and/or, if applicable, any notes issued by
a trust or other entity secured by Equipment Notes) contemplated to be purchased by the Trustee
under the related Note Purchase Agreements and, concurrently therewith (unless the Company shall
have delivered to the Trustee the Postponement Notice relating to one or more Postponed Notes
pursuant to Subsection (b) below), the Trustee shall purchase, pursuant to the terms and conditions
of the Note Purchase Agreements, such Equipment Notes (except Postponed Notes, if any)(or other
notes) at a purchase price equal to the amount of such consideration so received. Except as
provided in Sections 3.03, 3.04, 3.05 and 3.06 hereof, the Trustee shall not execute, authenticate
or deliver Certificates of such series in excess of the aggregate amount specified in this
paragraph. The provisions of this Subsection (a) are subject to the provisions of Subsection (b)
below.
(b) Unless otherwise specified in the related Trust Supplement, if on or prior to the Issuance
Date with respect to a series of Certificates the Company shall deliver to the Trustee a
Postponement Notice relating to one or more Postponed Notes, the Trustee shall postpone the
purchase of such Postponed Notes and shall deposit into an escrow account (as to the related Trust,
the “Escrow Account”) to be maintained as part of the related Trust an amount equal to the
purchase price of such Postponed Notes (the “Escrowed Funds”). The portion of the Escrowed
Funds so deposited with respect to any particular Postponed Notes shall be invested (a) by the
Trustee at the written direction and risk of, and for the benefit of, the Responsible Party in
Specified Investments or (b) if provided in the Trust Supplement relating to such series of
Certificates and subject to the terms and conditions set forth therein, in debt instruments of the
Company, in each case (i) maturing no later than any scheduled Transfer Date relating to such
Postponed Notes, or (ii) if no such Transfer Date has been scheduled, maturing on the next Business
Day, or (iii) if subsequent to the giving of the applicable Postponement Notice the Company has
given notice to the Trustee that such Postponed Notes will not be issued, maturing on the next
applicable Special Distribution Date, if such investments are reasonably available for purchase.
The Trustee shall make withdrawals from the Escrow Account only as provided in this Agreement.
Upon request of the Company on one or more occasions and the satisfaction or waiver of the closing
conditions specified in the applicable Note Purchase Agreements on or prior to the related Cut-off
Date, the Trustee shall purchase the applicable Postponed Notes, on the terms specified in such
Note Purchase Agreements, with the Escrowed Funds withdrawn from the Escrow Account.
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The Trustee shall hold all Specified Investments until the maturity thereof and will not sell
or otherwise transfer Specified Investments. If Specified Investments held in an Escrow Account
mature prior to any applicable Transfer Date, any proceeds received on the maturity of such
Specified Investments (other than any earnings thereon) shall be reinvested by the Trustee at the
written direction and risk of, and for the benefit of, the Responsible Party in Specified
Investments maturing as provided in the preceding paragraph.
Subject to the provisions of the Intercreditor Agreement, any earnings on Specified
Investments received from time to time by the Trustee shall be promptly distributed to the
Responsible Party. The Responsible Party shall pay to the Trustee for deposit to the relevant
Escrow Account an amount equal to any net losses on any Specified Investments made at its direction
and risk as incurred. On any Regular Distribution Date in respect of the Certificates of any
series occurring prior to the date of purchase of any Postponed Notes by the Trustee, the
Responsible Party will pay (in immediately available funds) to the Trustee an amount equal to the
interest that would have accrued on such Postponed Notes if such Postponed Notes had been purchased
on the later of the Issuance Date or the previous Regular Distribution Date in respect of the
Certificates of such series to, but not including, such Regular Distribution Date. On the first
Regular Distribution Date in respect of the Certificates of any series following the purchase of
any Postponed Notes by the Trustee, the Responsible Party will pay (in immediately available funds)
to the Trustee an amount equal to the interest that would have accrued on such Postponed Notes if
such Postponed Notes had been purchased on the later of the Issuance Date or the previous Regular
Distribution Date in respect of the Certificates of such series to, but not including, the date of
the purchase of such Postponed Notes by the Trustee.
If, in respect of the Certificates of any series, the Company notifies the Trustee prior to
the Cut-off Date that any Postponed Notes will not be issued on or prior to the Cut-off Date for
any reason, on the next Special Distribution Date for such Certificates occurring not less than 15
days following the date of such notice, (i) the Responsible Party shall pay (in immediately
available funds) to the Trustee for deposit in the related Special Payments Account, an amount
equal to the interest that would have accrued on the Postponed Notes designated in such notice from
the later of the Issuance Date or the previous Regular Distribution Date in respect of the
Certificates of such series to, but not including, such Special Distribution Date and (ii) the
Trustee shall transfer an amount equal to that amount of Escrowed Funds that would have been used
to purchase the Postponed Notes designated in such notice and the amount paid by the Responsible
Party pursuant to the immediately preceding clause (i) to the related Special Payments Account for
distribution as a Special Payment in accordance with the provisions hereof.
If, on such Cut-off Date, an amount equal to less than all of the Escrowed Funds (other than
Escrowed Funds referred to in the immediately preceding paragraph) has been used to purchase
Postponed Notes, on the next Special Distribution Date occurring not less than 15 days following
such Cut-off Date (i) the Responsible Party shall pay to the Trustee for deposit in such Special
Payments Account, in immediately available funds, an amount equal to the interest that would have
accrued on such Postponed Notes contemplated to be purchased with such unused Escrowed Funds (other
than Escrowed Funds referred to in the immediately preceding paragraph) but not so purchased from
the later of the Issuance Date or the previous Regular Distribution Date in respect of the
Certificates of such series to, but not including, such
18
Special Distribution Date and (ii) the Trustee shall transfer such unused Escrowed Funds and the
amount paid by the Responsible Party pursuant to the immediately preceding clause (i) to such
Special Payments Account for distribution as a Special Payment in accordance with the provisions
hereof.
Section 2.03. Acceptance by Trustee. The Trustee, by the execution and delivery of a
Trust Supplement creating a Trust and establishing a series of Certificates, shall acknowledge its
acceptance of all right, title and interest in and to the Trust Property to be acquired pursuant to
Section 2.02 hereof and the related Note Purchase Agreements and shall declare that the Trustee
holds and will hold such right, title and interest for the benefit of all then present and future
Certificateholders of such series, upon the trusts herein and in such Trust Supplement set forth.
By the acceptance of each Certificate of such series issued to it under this Agreement, each
initial Holder of such series as grantor of such Trust shall thereby join in the creation and
declaration of such Trust.
Section 2.04. Limitation of Powers. Each Trust shall be constituted solely for the
purpose of making the investment in the Equipment Notes provided for in the related Trust
Supplement, and, except as set forth in this Agreement, the Trustee shall not be authorized or
empowered to acquire any other investments or engage in any other activities and, in particular,
the Trustee shall not be authorized or empowered to do anything that would cause such Trust to fail
to qualify as a “grantor trust” for federal income tax purposes (including, as subject to this
restriction, acquiring any Aircraft (as defined in the related Indentures) by bidding for such
Equipment Notes or otherwise, or taking any action with respect to any such Aircraft once
acquired).
ARTICLE III
THE CERTIFICATES
Section 3.01. Form, Denomination and Execution of Certificates. Except to the extent
otherwise provided in the applicable Trust Supplement, the Certificates of each series shall be
issued in fully registered form without coupons and shall be substantially in the form attached to
the related Trust Supplement, with such omissions, variations and insertions as are permitted by
this Agreement, and may have such letters, numbers or other marks of identification and such
legends or endorsements placed thereon as may be required to comply with any applicable laws,
rules, regulations, or the rules of any securities exchange on which such Certificates may be
listed or to conform to any usage in respect thereof, or as may, consistently with this Agreement,
be determined by the Trustee or the officers executing such Certificates, as evidenced by the
Trustee’s or such officers’ execution of the Certificates.
Except as provided in Section 3.05, the definitive Certificates of such series shall be typed,
printed, lithographed or engraved or produced by any combination of these methods or may be
produced in any other manner permitted by the rules of any securities exchange on which the
Certificates may be listed, all as determined by the officers executing such Certificates, as
evidenced by their execution of such Certificates.
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Except as otherwise provided in the related Trust Supplement, the Certificates of each series
shall be issued in minimum denominations of $1,000 or integral multiples thereof except that one
Certificate of such series may be issued in a different denomination.
The Certificates of such series shall be executed on behalf of the Trustee by manual or
facsimile signature of a Responsible Officer of the Trustee. Certificates of any series bearing
the manual or facsimile signature of an individual who was, at the time when such signature was
affixed, authorized to sign on behalf of the Trustee shall be valid and binding obligations of the
Trustee, notwithstanding that such individual has ceased to be so authorized prior to the
authentication and delivery of such Certificates or did not hold such office at the date of such
Certificates.
Section 3.02. Authentication of Certificates. (a) Except to the extent otherwise
provided in the applicable Trust Supplement, on the Issuance Date, the Trustee shall duly execute,
authenticate and deliver Certificates of each series in authorized denominations equaling in the
aggregate the aggregate principal amount of the Equipment Notes that may be purchased by the
Trustee pursuant to the related Note Purchase Agreements, and evidencing the entire ownership of
the related Trust. Thereafter, the Trustee shall duly execute, authenticate and deliver the
Certificates of such series as provided in this Agreement.
(b) No Certificate of any series shall be entitled to any benefit under this Agreement, or be
valid for any purpose, unless there appears on such Certificate a certificate of authentication
substantially in the form set forth in Exhibit A executed by the Trustee by manual signature, and
such certificate of authentication upon any Certificate shall be conclusive evidence, and the only
evidence, that such Certificate has been duly authenticated and delivered hereunder. All
Certificates of any series shall be dated the date of their authentication.
Section 3.03. Temporary Certificates. Until definitive Certificates are ready for
delivery, the Trustee shall execute, authenticate and deliver temporary Certificates of each
series. Temporary Certificates of each series shall be substantially in the form of definitive
Certificates of such series but may have insertions, substitutions, omissions and other variations
determined to be appropriate by the officers executing the temporary Certificates of such series,
as evidenced by their execution of such temporary Certificates. If temporary Certificates of any
series are issued, the Trustee will cause definitive Certificates of such series to be prepared
without unreasonable delay. After the preparation of definitive Certificates of such series, the
temporary Certificates shall be exchangeable for definitive Certificates upon surrender of such
temporary Certificates at the office or agency of the Trustee designated for such purpose pursuant
to Section 7.12, without charge to the Certificateholder. Upon surrender for cancellation of any
one or more temporary Certificates, the Trustee shall execute, authenticate and deliver in exchange
therefor a like face amount of definitive Certificates of like series, in authorized denominations
and of a like Fractional Undivided Interest. Until so exchanged, such temporary Certificates shall
be entitled to the same benefits under this Agreement as definitive Certificates of such series.
Section 3.04. Transfer and Exchange. The Trustee shall cause to be kept at the office
or agency to be maintained by it in accordance with the provisions of Section 7.12 a register (the
“Register”) for each series of Certificates in which, subject to such reasonable
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regulations as it may prescribe, the Trustee shall provide for the registration of
Certificates of such series and of transfers and exchanges of such Certificates as herein provided.
The Trustee shall initially be the registrar (the “Registrar”) for the purpose of
registering such Certificates of each series and transfers and exchanges of such Certificates as
herein provided.
All Certificates issued upon any registration of transfer or exchange of Certificates of any
series shall be valid obligations of the applicable Trust, evidencing the same interest therein,
and entitled to the same benefits under this Agreement, as the Certificates of such series
surrendered upon such registration of transfer or exchange.
Upon surrender for registration of transfer of any Certificate at the Corporate Trust Office
or such other office or agency, the Trustee shall execute, authenticate and deliver, in the name of
the designated transferee or transferees, one or more new Certificates of like series, in
authorized denominations of a like aggregate Fractional Undivided Interest.
At the option of a Certificateholder, Certificates may be exchanged for other Certificates of
like series, in authorized denominations and of a like aggregate Fractional Undivided Interest,
upon surrender of the Certificates to be exchanged at any such office or agency. Whenever any
Certificates are so surrendered for exchange, the Trustee shall execute, authenticate and deliver
the Certificates that the Certificateholder making the exchange is entitled to receive. Every
Certificate presented or surrendered for registration of transfer or exchange shall be duly
endorsed or accompanied by a written instrument of transfer in form satisfactory to the Trustee and
the Registrar duly executed by the Certificateholder thereof or its attorney duly authorized in
writing.
Except to the extent otherwise provided in the applicable Trust Supplement, no service charge
shall be made to a Certificateholder for any registration of transfer or exchange of Certificates,
but the Trustee shall require payment of a sum sufficient to cover any tax or governmental charge
that may be imposed in connection with any transfer or exchange of Certificates. All Certificates
surrendered for registration of transfer or exchange shall be cancelled and subsequently destroyed
by the Trustee.
Section 3.05. Book-Entry and Definitive Certificates. (a) Except for one Certificate
of each series that may be issued in a denomination of other than an even multiple of $1,000, the
Certificates of any series may be issued at the option of the Company in the form of one or more
typewritten Certificates representing the Book-Entry Certificates of such series, to be delivered
to The Depository Trust Company, the initial Clearing Agency, by, or on behalf of, the Company. In
such case, the Certificates of such series delivered to The Depository Trust Company shall
initially be registered on the Register in the name of Cede & Co., the nominee of the initial
Clearing Agency, and no Certificate Owner will receive a definitive certificate representing such
Certificate Owner’s interest in the Certificates of such series, except as provided above and in
Subsection (d) below. As to the Certificates of any such series (other than the one Certificate of
such series issued in a denomination of other than an even multiple of $1,000), unless and until
definitive, fully registered Certificates (the “Definitive Certificates”) have been issued
pursuant to Subsection (d) below:
(i) the provisions of this Section 3.05 shall be in full force and effect;
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(ii) the Company, the Paying Agent, the Registrar and the Trustee may deal with the
Clearing Agency for all purposes (including the making of distributions on the
Certificates);
(iii) to the extent that the provisions of this Section 3.05 conflict with any other
provisions of this Agreement (other than the provisions of any Trust Supplement expressly
amending this Section 3.05 as permitted by this Basic Agreement), the provisions of this
Section 3.05 shall control;
(iv) the rights of Certificate Owners shall be exercised only through the Clearing
Agency and shall be limited to those established by law and agreements between such
Certificate Owners and the Clearing Agency and/or the Clearing Agency Participants; and
until Definitive Certificates are issued pursuant to Subsection (d) below, the Clearing
Agency will make book-entry transfers among the Clearing Agency Participants and receive and
transmit distributions of principal, interest and premium, if any, on the Certificates to
such Clearing Agency Participants;
(v) such Certificates of such series may be transferred in whole, but not in part, and
in the manner provided in Section 3.04, by the Clearing Agency holding such Certificates to
a nominee of such Clearing Agency, or by such Clearing Agency to a successor Clearing Agency
that has been selected or approved by the Company or to a nominee of such successor Clearing
Agency; and
(vi) whenever this Agreement requires or permits actions to be taken based upon
instructions or directions of Certificateholders of such series holding Certificates of such
series evidencing a specified percentage of the Fractional Undivided Interests in the
related Trust, the Clearing Agency shall be deemed to represent such percentage only to the
extent that it has received instructions to such effect from Clearing Agency Participants
owning or representing, respectively, such required percentage of the beneficial interest in
Certificates of such series and has delivered such instructions to the Trustee. None of the
Company, the Parent or the Trustee or any agent of any of them shall have any obligation to
determine whether the Clearing Agency has in fact received any such instructions.
(b) Whenever notice or other communication to the Certificateholders of a series is required
under this Agreement, unless and until Definitive Certificates shall have been issued pursuant to
Subsection (d) below, the Trustee shall give all such notices and communications specified in this
Agreement to be given to Certificateholders of such series to the Clearing Agency.
(c) Unless and until Definitive Certificates of a series are issued pursuant to Subsection (d)
below, on the Record Date prior to each applicable Regular Distribution Date and Special
Distribution Date, the Trustee will request from the Clearing Agency a securities position listing
setting forth the names of all Clearing Agency Participants reflected on the Clearing Agency’s
books as holding interests in the Certificates on such Record Date.
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(d) If with respect to the Certificates of any series (i) the Company advises the Trustee in
writing that the Clearing Agency is no longer willing or able to discharge properly its
responsibilities and the Trustee or the Company is unable to locate a qualified successor, (ii) the
Company, at its option, advises the Trustee in writing that it elects to terminate the book-entry
system through the Clearing Agency or (iii) after the occurrence of an Event of Default,
Certificate Owners of Book-Entry Certificates of such series evidencing Fractional Undivided
Interests aggregating not less than a majority in interest in the related Trust, by Act of such
Certificate Owners delivered to the Company and the Trustee, advise the Company, the Trustee and
the Clearing Agency through the Clearing Agency Participants in writing that the continuation of a
book-entry system through the Clearing Agency Participants is no longer in the best interests of
the Certificate Owners of such series, then the Trustee shall notify all Certificate Owners of such
series, through the Clearing Agency, of the occurrence of any such event and of the availability of
Definitive Certificates. Upon surrender to the Trustee of all the Certificates of such series held
by the Clearing Agency, accompanied by registration instructions from the Clearing Agency
Participants for registration of Definitive Certificates in the names of Certificate Owners of such
series, the Trustee shall issue and deliver the Definitive Certificates of such series in
accordance with the instructions of the Clearing Agency. None of the Company, the Registrar, the
Paying Agent or the Trustee shall be liable for any delay in delivery of such instructions and may
conclusively rely on, and shall be protected in relying on, such registration instructions. Upon
the issuance of Definitive Certificates of such series, the Trustee shall recognize the Persons in
whose names the Definitive Certificates are registered in the Register as Certificateholders under
this Agreement. Neither the Company nor the Trustee shall be liable if the Trustee or the Company
is unable to locate a qualified successor Clearing Agency.
(e) Except as otherwise provided in the related Trust Supplement, the Trustee shall enter into
the applicable Letter of Representations with respect to such series of Certificates and fulfill
its responsibilities thereunder.
(f) The provisions of this Section 3.05 may be made inapplicable to any series or may be
amended with respect to any series in the related Trust Supplement.
Section 3.06. Mutilated, Destroyed, Lost or Stolen Certificates. If (a) any mutilated
Certificate is surrendered to the Registrar, or the Registrar receives evidence to its satisfaction
of the destruction, loss or theft of any Certificate, and (b) there is delivered to the Registrar
and the Trustee such security, indemnity or bond, as may be required by them to save each of them
and the Company harmless, then, in the absence of notice to the Registrar or the Trustee that such
destroyed, lost or stolen Certificate has been acquired by a protected purchaser, and
provided that the requirements of Section 8-405 of the Uniform Commercial Code in effect in
any applicable jurisdiction are met, the Trustee shall execute, authenticate and deliver, in
exchange for or in lieu of any such mutilated, destroyed, lost or stolen Certificate, a new
Certificate or Certificates of like series, in authorized denominations and of like Fractional
Undivided Interest and bearing a number not contemporaneously outstanding.
In connection with the issuance of any new Certificate under this Section 3.06, the Trustee
shall require the payment of a sum sufficient to cover any tax or other governmental
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charge that may be imposed in relation thereto and any other expenses (including the fees and
expenses of the Trustee and the Registrar) connected therewith.
Any duplicate Certificate issued pursuant to this Section 3.06 shall constitute conclusive
evidence of the appropriate Fractional Undivided Interest in the related Trust, as if originally
issued, whether or not the lost, stolen or destroyed Certificate shall be found at any time.
The provisions of this Section 3.06 are exclusive and shall preclude (to the extent lawful)
all other rights and remedies with respect to the replacement or payment of mutilated, destroyed,
lost or stolen Certificates.
Section 3.07. Persons Deemed Owners. Prior to due presentment of a Certificate for
registration of transfer, the Company, the Trustee, the Registrar and any Paying Agent may treat
the Person in whose name any Certificate is registered (as of the day of determination) on the
Register as the owner of such Certificate and the Certificateholder for the purpose of receiving
distributions pursuant to Article IV and for all other purposes whatsoever, and none of the
Company, the Trustee, the Registrar or any Paying Agent shall be affected by any notice to the
contrary. All payments or distributions made to any such Person shall be valid and, to the extent
of the sum or sums so paid, effectual to satisfy and discharge the liability for moneys payable on
any such Certificate.
Unless otherwise provided with respect to any Certificates pursuant to Section 2.01(b), the
Company, the Parent, any other obligor upon any Certificates and any Affiliate of any thereof may
acquire, tender for, purchase, own, hold, become the pledgee of and otherwise deal with any
Certificates.
Section 3.08. Cancellation. All Certificates surrendered for payment or transfer or
exchange shall, if surrendered to the Trustee or any agent of the Trustee other than the Registrar,
be delivered to the Registrar for cancellation and shall promptly be cancelled by it. No
Certificates shall be authenticated in lieu of or in exchange for any Certificates cancelled as
provided in this Section 3.08, except as expressly permitted by this Agreement. All cancelled
Certificates held by the Registrar shall be destroyed and a certification of their destruction
delivered to the Trustee.
Section 3.09. Limitation of Liability for Payments. All payments and distributions
made to Certificateholders of any series in respect of the Certificates of such series shall be
made only from the Trust Property of the related Trust and only to the extent that the Trustee
shall have sufficient income or proceeds from such Trust Property to make such payments in
accordance with the terms of Article IV of this Agreement. The Certificates do not represent
indebtedness of the related Trusts, and references herein or in any Trust Supplement to interest
accruing on any Certificates are intended for purposes of computation only. Each
Certificateholder, by its acceptance of a Certificate, agrees that it will look solely to the
income and proceeds from the Trust Property of the related Trust for any payment or distribution
due to such Certificateholder pursuant to the terms of this Agreement and that it will not have any
recourse to the Company, the Trustee, any Liquidity Providers, the Loan Trustees, any Owner
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Trustee or any Owner Participant, except as otherwise expressly provided in this Agreement, in
any Note Document or in any related Intercreditor Agreement.
The Company is a party to this Agreement solely for purposes of meeting the requirements of
the Trust Indenture Act, and therefore the Company shall not have any right, obligation or
liability hereunder, or under the terms of any Trust Supplement or any Certificates (except as
otherwise expressly provided herein or therein).
Section 3.10. CUSIP Numbers. The Certificates may include “CUSIP” numbers (if then
generally in use), and if so, the Trustee may use the CUSIP numbers in notices in respect of the
Certificates; provided, however, that any such notice may state that no
representation is made as to the correctness or accuracy of the CUSIP number printed in the notice
or on the Certificates, that reliance may be placed only on the other identification numbers
printed on the Certificates, and any such notice shall not be affected by any defect or omission of
such CUSIP numbers.
ARTICLE IV
DISTRIBUTIONS; STATEMENTS TO CERTIFICATEHOLDERS
Section 4.01. Certificate Account and Special Payments Account. (a) The Trustee shall
establish and maintain on behalf of the Certificateholders of each series a Certificate Account as
one or more non-interest-bearing accounts. The Trustee shall hold such Certificate Account in
trust for the benefit of the Certificateholders of such series, and shall make or permit
withdrawals therefrom only as provided in this Agreement or any Intercreditor Agreement. On each
day when a Scheduled Payment is made to the Trustee with respect to the Certificates of any series,
the Trustee, upon receipt thereof, shall immediately deposit the aggregate amount of such Scheduled
Payment in the applicable Certificate Account.
(b) The Trustee shall establish and maintain on behalf of the Certificateholders of each
series a Special Payments Account as one or more accounts, which shall be non-interest bearing
except as provided in Section 4.04. The Trustee shall hold the Special Payments Account in trust
for the benefit of the Certificateholders of such series and shall make or permit withdrawals
therefrom only as provided in this Agreement or any Intercreditor Agreement. On each day when one
or more Special Payments are made to the Trustee with respect to the Certificates of any series,
the Trustee, upon receipt thereof, shall immediately deposit the aggregate amount of such Special
Payments in the applicable Special Payments Account.
(c) The Trustee shall present (or, if applicable, cause the Subordination Agent to present) to
the related Loan Trustee of each Equipment Note such Equipment Note on the date of its stated final
maturity or, in the case of any Equipment Note which is to be redeemed or purchased in whole
pursuant to the related Indenture, on the applicable redemption or purchase date under such
Indenture.
Section 4.02. Distributions from Certificate Account and Special Payments Account.
(a) Subject to the provisions of the Intercreditor Agreement, on each Regular
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Distribution Date with respect to a series of Certificates or as soon thereafter as the
Trustee has confirmed receipt of the payment of all or any part of the Scheduled Payments due on
the Equipment Notes held in the related Trust on such date, the Trustee shall distribute out of the
applicable Certificate Account the entire amount deposited therein pursuant to Section 4.01(a).
There shall be so distributed to each Certificateholder of record of such series on the Record Date
with respect to such Regular Distribution Date (other than as provided in Section 11.01 concerning
the final distribution) by check mailed to such Certificateholder, at the address appearing in the
Register, such Certificateholder’s pro rata share (based on the aggregate Fractional Undivided
Interest in the related Trust held by such Certificateholder) of the total amount in the applicable
Certificate Account, 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 in
immediately available funds to the account designated by such Clearing Agency (or such nominee).
(b) Subject to the provisions of the Intercreditor Agreement, on each Special Distribution
Date with respect to any Special Payment with respect to a series of Certificates or as soon
thereafter as the Trustee has confirmed receipt of any Special Payments due on the Equipment Notes
held in the related Trust or realized upon the sale of such Equipment Notes, the Trustee shall
distribute out of the applicable Special Payments Account the entire amount of such applicable
Special Payment deposited therein pursuant to Section 4.01(b). There shall be so distributed to
each Certificateholder of record of such series on the Record Date with respect to such Special
Distribution Date (other than as provided in Section 11.01 concerning the final distribution) by
check mailed to such Certificateholder, at the address appearing in the Register, such
Certificateholder’s pro rata share (based on the aggregate Fractional Undivided Interest in the
related Trust held by such Certificateholder) of the total amount in the applicable Special
Payments Account on account of such Special Payment, 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 in immediately available funds to the account designated by such
Clearing Agency (or such nominee).
(c) The Trustee shall, at the expense of the Company, cause notice of each Special Payment
with respect to a series of Certificates to be mailed to each Certificateholder of such series at
such Certificateholder’s address as it appears in the Register. Subject to the provisions of the
Intercreditor Agreement: (i) in the event of redemption or purchase of Equipment Notes held in the
related Trust, such notice shall be mailed not less than 15 days prior to the Special Distribution
Date for the Special Payment resulting from such redemption or purchase, which Special Distribution
Date shall be the date of such redemption or purchase; (ii) in the event that the Trustee receives
a notice from the Company pursuant to Section 2.02 that Postponed Notes will not be purchased by
the Trustee, such notice of Special Payment shall be mailed as soon as practicable after receipt of
such notice from the Company and shall state the Special Distribution Date for such Special
Payment, which shall occur 15 days after the date of such notice of Special Payment or (if such
15th day is not practicable) as soon as practicable thereafter; (iii) in the event that any Special
Payment is to be made pursuant to the last paragraph of Section 2.02(b) hereof, such notice of
Special Payment shall be mailed on the Cut-off Date (or, if such mailing on the Cut-off Date is not
practicable, as soon as practicable after the Cut-off Date), and shall state the Special
Distribution Date for such Special Payment, which shall occur 15 days after the date of such notice
of Special Payment (or, if such 15th day is not practicable,
26
as soon as practicable thereafter); and (iv) in the case of any other Special
Payments, such notice of Special Payment shall be mailed as soon as practicable after the Trustee
has confirmed that it has received funds for such Special Payment, and shall state the Special
Distribution Date for such Special Payment, which shall occur 15 days after the date of such notice
of Special Payment or (if such 15th day is not practicable) as soon as practicable thereafter.
Notices mailed by the Trustee as provided in the paragraphs above shall set forth:
(i) the Special Distribution Date and the Record Date therefor (except as otherwise
provided in Section 11.01);
(ii) the amount of the Special Payment (taking into account any payment to be made by
the Responsible Party pursuant to Section 2.02(b)) for each $1,000 face amount Certificate
and the amount thereof constituting principal, premium, if any, and interest;
(iii) the reason for the Special Payment; and
(iv) if the Special Distribution Date is the same date as a Regular Distribution Date
for the Certificates of such series, the total amount to be received on such date for each
$1,000 face amount Certificate.
If the amount of premium, if any, payable upon the redemption or purchase of an Equipment Note
has not been calculated at the time that the Trustee mails notice of a Special Payment, it shall be
sufficient if the notice sets forth the other amounts to be distributed and states that any premium
received will also be distributed.
If any redemption or purchase of the Equipment Notes held in any Trust is cancelled, the
Trustee, as soon as possible after learning thereof, shall cause notice thereof to be mailed to
each Certificateholder of the related series at its address as it appears on the Register.
Section 4.03. Statements to Certificateholders. (a) On each Regular Distribution Date
and Special Distribution Date, the Trustee will include with each distribution of a Scheduled
Payment or Special Payment, as the case may be, to Certificateholders of the related series a
statement setting forth the information provided below. Such statement shall, except to the extent
otherwise provided in the applicable Trust Supplement, set forth (per $1,000 aggregate face amount
of Certificate as to (i), (ii) and (iii) below) the following information:
(i) the aggregate amount of funds distributed on such Distribution Date under this
Agreement, indicating the amount allocable to each source including any portion thereof
provided by the Liquidity Providers;
(ii) the amount of such distribution under this Agreement allocable to principal and
the amount allocable to premium, if any;
(iii) the amount of such distribution under this Agreement allocable to interest; and
(iv) the Pool Balance and the Pool Factor of the related Trust.
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With respect to the Certificates registered in the name of a Clearing Agency or its nominee,
on the Record Date prior to each Distribution Date, the Trustee will, at the expense of the
Company, request from the Clearing Agency a securities position listing setting forth the names of
all the Clearing Agency Participants reflected on the Clearing Agency’s books as holding interests
in the Certificates on such Record Date. On each Distribution Date, the applicable 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 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, except to the extent otherwise provided in the applicable Trust
Supplement, the Trustee shall furnish to each Person who at any time during such calendar year was
a Certificateholder of record a statement containing the sum of the amounts determined pursuant to
clauses (a)(i), (a)(ii) and (a)(iii) above with respect to the related Trust for such calendar year
or, in the event such Person was a Certificateholder of record during a portion of such calendar
year, for the applicable portion of such year, and such other items as are readily available to the
Trustee and which a Certificateholder shall reasonably request as necessary for the purpose of such
Certificateholder’s preparation of its federal income tax returns. With respect to Certificates
registered in the name of a Clearing Agency or its nominee, 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
Certificates.
Section 4.04. Investment of Special Payment Moneys. Any money received by the Trustee
pursuant to Section 4.01(b) representing a Special Payment which is not distributed on the date
received shall, to the extent practicable, be invested by the Trustee in Permitted Investments
selected by the Controlling Party in telephonic (confirmed in writing) or written instructions to
the Trustee pending distribution of such Special Payment pursuant to Section 4.02. Absent receipt
of such instructions from the Controlling Party, such Special Payment shall remain uninvested by
the Trustee pending receipt of investment instructions. Any investment made pursuant to this
Section 4.04 shall be in such Permitted Investments having maturities not later than the date that
such moneys are required to be used to make the payment required under Section 4.02 on the
applicable Special Distribution Date and the Trustee shall hold any such Permitted Investments
until maturity. The Trustee shall have no liability with respect to any investment made pursuant
to this Section 4.04, other than by reason of the willful misconduct or negligence of the Trustee.
All income and earnings from such investments shall be distributed on such Special Distribution
Date as part of such Special Payment.
ARTICLE V
THE COMPANY
Section 5.01. Maintenance of Corporate Existence. The Company, at its own cost and
expense, will do or cause to be done all things necessary to preserve and keep in full force and
effect its corporate existence, rights and franchises, except as otherwise specifically permitted
in Section 5.02; provided, however, that the Company shall not be required to
preserve
28
any right or franchise if the Company shall determine that the preservation thereof is no
longer desirable in the conduct of the business of the Company.
Section 5.02. Consolidation, Merger, Etc. The Company shall not consolidate with or
merge into any other Person under circumstances in which the Company is not the surviving
corporation or convey, transfer or lease substantially all of its assets as an entirety to any
Person unless:
(a) the Person formed by such consolidation or into which the Company is merged or the Person
that acquires by conveyance, transfer or lease substantially all of the assets of the Company as an
entirety shall (i) be organized and validly existing under the laws of the United States of America
or any state thereof or the District of Columbia, (ii) be a “citizen of the United States” as
defined in 49 U.S.C. Sections 40102 (a) (15), as amended, and (iii) hold an air carrier operating
certificate issued pursuant to Chapter 447 of Title 49 of the United States Code for aircraft
capable of carrying 10 or more individuals or 6,000 pounds or more of cargo, if and so long as such
status is a condition of entitlement to the benefits of Section 1110 of the Bankruptcy Reform Act
of 1978, as amended (11 U.S.C. Sections 1110), with respect to the Leases or the Aircraft owned by
the Company; and
(b) the Person formed by such consolidation or into which the Company is merged or the Person
which acquires by conveyance, transfer or lease substantially all of the assets of the Company as
an entirety shall execute and deliver to the Trustee applicable to the Certificates of each series
a duly authorized, valid, binding and enforceable agreement in form and substance reasonably
satisfactory to the Trustee containing an assumption by such successor corporation or Person of the
due and punctual performance and observance of each covenant and condition of the Note Documents
and of this Agreement applicable to the Certificates of each series to be performed or observed by
the Company.
The Trustee may request an Officer’s Certificate of the Company and an Opinion of Counsel of
the Company (that may be the Company’s General Counsel, Deputy General Counsel, Associate General
Counsel or other senior attorney of the Company) reasonably satisfactory to the Trustee, each
stating that such consolidation, merger, conveyance, transfer or lease and the assumption agreement
mentioned in clause (b) above comply with this Section 5.02 and that all conditions precedent
herein provided for 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 the Company as an entirety in accordance with this Section 5.02, the successor
corporation or Person formed by such consolidation or into which the Company is merged or to which
such conveyance, transfer or lease is made shall succeed to, and be substituted for, and may
exercise every right and power of, the Company under this Agreement applicable to the Certificates
of each series with the same effect as if such successor corporation or Person had been named as
the Company herein. No such conveyance, transfer or lease of substantially all of the assets of
the Company as an entirety shall have the effect of releasing any successor corporation or Person
which shall have become such in the manner prescribed in this Section 5.02 from its liability in
respect of this Agreement and any Note Document applicable to the Certificates of such series to
which it is a party.
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ARTICLE VI
DEFAULT
Section 6.01. Indenture Events of Default and Triggering Events. (a) Upon the
occurrence and during the continuation of any Indenture Event of Default under any Indenture, the
Trustee may (i) to the extent it is the Controlling Party at such time (as determined pursuant to
the related Intercreditor Agreement), direct the exercise of remedies as provided in such related
Intercreditor Agreement and (ii) if there is no related Intercreditor Agreement, direct the
exercise of remedies or take other action as provided in the relevant Indenture to the extent that
it may do so as the holder of the Equipment Notes issued under such Indenture and held in the
related Trust.
(b) By acceptance of its Certificate, each Certificateholder agrees that at any time after the
occurrence and during the continuation of a Triggering Event, each Certificateholder of
Certificates of certain series (each, a “Potential Purchaser” and, collectively, the
“Potential Purchasers”) may have certain rights to purchase the Certificates of one or more
other series, all as set forth in the Trust Supplement applicable to the Certificates held by such
Potential Purchaser. The purchase price with respect to the Certificates of any series shall be
equal to the Pool Balance of the Certificates of such series, 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 Certificateholders of such series under this Agreement, any related
Intercreditor Agreement or any other Note Document or on or in respect of the Certificates of such
series; provided, however, that if such purchase occurs after a Record Date, such
purchase price shall be reduced by the amount to be distributed under this Agreement on the related
Distribution Date (which deducted amounts shall remain distributable to, and may be retained by,
the Certificateholder as of such Record Date); provided, further, that no such
purchase of Certificates of such series shall be effective unless the purchasing Certificateholder
(each, a “Purchasing Certificateholder” and, collectively, the “Purchasing
Certificateholders”) shall certify to the Trustee that contemporaneously with such purchase,
one or more Purchasing Certificateholders are purchasing, pursuant to the terms of this Agreement
and the other Agreements, if any, relating to the Certificates of a series that are subject to the
same Intercreditor Agreement (such other Agreements, the “Other Agreements”), the
Certificates of each such series that the Trust Supplement applicable to the Certificates held by
the Purchasing Certificateholder specifies may be purchased by such Purchasing Certificateholder.
Each payment of the purchase price of the Certificates of any series 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 6.01. By acceptance of its Certificate, each Certificateholder (each, a “Selling
Certificateholder” and, collectively, the “Selling Certificateholders”) of a series
that is subject to purchase by Potential Purchasers, all as set forth in the Trust Supplement
applicable to the Certificates held by the Selling Certificateholders, agrees that, at any time
after the occurrence and during the continuance of a Triggering Event, it will, upon payment of the
purchase price specified in this Agreement by one or more Purchasing Certificateholders, forthwith
sell, assign, transfer and convey to such Purchasing Certificateholder (without recourse,
representation or warranty of any kind except for its own acts), all of the right, title, interest
and obligation of such Selling Certificateholder in this Agreement, any related Intercreditor
Agreement, the related Liquidity Facility, the related Note Documents and all Certificates of such
series held by such
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Selling 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 Purchasing Certificateholder shall assume all of such Selling Certificateholder’s obligations
under this Agreement, any related Intercreditor Agreement, any related Liquidity Facility and the
related Note Documents. The Certificates of such series will be deemed to be purchased on the date
payment of the purchase price is made notwithstanding the failure of any Selling Certificateholder
to deliver any Certificates of such series and, upon such a purchase, (i) the only rights of the
Selling Certificateholders will be to deliver the Certificates to the Purchasing Certificateholder
and receive the purchase price for such Certificates of such series and (ii) if the Purchasing
Certificateholder shall so request, such Selling Certificateholder will comply with all of the
provisions of Section 3.04 hereof to enable new Certificates of such series to be issued to the
Purchasing Certificateholder in such denominations as it shall request. All charges and expenses
in connection with the issuance of any such new Certificates shall be borne by the Purchasing
Certificateholder.
Section 6.02. Incidents of Sale of Equipment Notes. Upon any sale of all or any part
of the Equipment Notes held in the Trust made either under the power of sale given under this
Agreement or otherwise for the enforcement of this Agreement, the following shall be applicable:
(1) Certificateholders and Trustee May Purchase Equipment Notes. Any
Certificateholder, the Trustee in its individual or any other capacity or any other Person
may bid for and purchase any of the Equipment Notes held in the Trust, and upon compliance
with the terms of sale, may hold, retain, possess and dispose of such Equipment Notes in
their own absolute right without further accountability.
(2) Receipt of Trustee Shall Discharge Purchaser. The receipt of the Trustee making
such sale shall be a sufficient discharge to any purchaser for its purchase money, and,
after paying such purchase money and receiving such receipt, such purchaser or its personal
representative or assigns shall not be obliged to see to the application of such purchase
money, or be in any way answerable for any loss, misapplication or non-application thereof.
(3) Application of Moneys Received upon Sale. Any moneys collected by the Trustee upon
any sale made either under the power of sale given by this Agreement or otherwise for the
enforcement of this Agreement shall be applied as provided in Section 4.02.
Section 6.03. Judicial Proceedings Instituted by Trustee; Trustee May Bring Suit. If
there shall be a failure to make payment of the principal of, premium, if any, or interest on any
Equipment Note held in the related Trust, or if there shall be any failure to pay Rent (as defined
in the relevant Lease) under any Lease when due and payable, then the Trustee, in its own name and
as trustee of an express trust, as holder of such Equipment Notes, to the extent permitted by and
in accordance with the terms of any related Intercreditor Agreement and any related Note Documents
(subject to rights of the applicable Owner Trustee or Owner Participant to cure any such failure to
pay principal of, premium, if any, or interest on any Equipment Note
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or to pay Rent under any Lease in accordance with the applicable Indenture and to the rights
of the Lessee under any applicable Lease), shall be entitled and empowered to institute any suits,
actions or proceedings at law, in equity or otherwise, for the collection of the sums so due and
unpaid on such Equipment Notes or under such Lease and may prosecute any such claim or proceeding
to judgment or final decree with respect to the whole amount of any such sums so due and unpaid.
Section 6.04. Control by Certificateholders. Subject to Section 6.03 and any related
Intercreditor Agreement, the Certificateholders holding Certificates of a series evidencing
Fractional Undivided Interests aggregating not less than a majority in interest in the related
Trust shall have the right to direct the time, method and place of conducting any proceeding for
any remedy available to the Trustee with respect to such Trust or pursuant to the terms of such
Intercreditor Agreement, or exercising any trust or power conferred on the Trustee under this
Agreement or such Intercreditor Agreement, including any right of the Trustee as Controlling Party
under such Intercreditor Agreement or as holder of the Equipment Notes held in the related Trust;
provided, however, that
(1) such Direction shall not in the opinion of the Trustee be in conflict with any rule
of law or with this Agreement and would not involve the Trustee in personal liability or
expense;
(2) the Trustee shall not determine that the action so directed would be unjustly
prejudicial to the Certificateholders of such series not taking part in such Direction; and
(3) the Trustee may take any other action deemed proper by the Trustee which is not
inconsistent with such Direction.
Section 6.05. Waiver of Past Defaults. Subject to any related Intercreditor
Agreement, the Certificateholders holding Certificates of a series evidencing Fractional Undivided
Interests aggregating not less than a majority in interest in the related Trust (i) may on behalf
of all of the Certificateholders of such series waive any past default or Event of Default under
this Agreement and its consequences or (ii) if the Trustee is the Controlling Party, may direct the
Trustee to instruct the applicable Loan Trustee to waive any past Indenture default, Indenture
Event of Default, or, if applicable, the corresponding Lease default, under any related Indenture
and its consequences, and thereby annul any Direction given by such Certificateholders or the
Trustee to such Loan Trustee with respect thereto, except a default:
(1) in the deposit of any Scheduled Payment or Special Payment under Section 4.01 or in
the distribution of any payment under Section 4.02 on the Certificates of a series; or
(2) in the payment of the principal of, premium, if any, or interest, if any, on the
Equipment Notes held in the related Trust; or
(3) in respect of a covenant or provision hereof which under Article IX hereof cannot
be modified or amended without the consent of each Certificateholder holding an Outstanding
Certificate of the series affected thereby.
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Upon any such waiver, such default shall cease to exist with respect to the Certificates of
such series and any Event of Default arising therefrom shall be deemed to have been cured for every
purpose and any direction given by the Trustee on behalf of the Certificateholders of such series
to the relevant Loan Trustee shall be annulled with respect thereto; but no such waiver shall
extend to any subsequent or other default or Event of Default or impair any right consequent
thereon. Upon any such waiver, the Trustee shall vote the Equipment Notes issued under the
relevant Indenture to waive the corresponding Indenture Event of Default (and, if applicable, the
corresponding Lease default).
Section 6.06. Right of Certificateholders to Receive Payments Not to Be Impaired.
Anything in this Agreement to the contrary notwithstanding, including, without limitation, Section
6.07 hereof, but subject to any related Intercreditor Agreement, the right of any Certificateholder
to receive distributions of payments required pursuant to Section 4.02 hereof on the applicable
Certificates when due, or to institute suit for the enforcement of any such payment on or after the
applicable Regular Distribution Date or Special Distribution Date, shall not be impaired or
affected without the consent of such Certificateholder.
Section 6.07. Certificateholders May Not Bring Suit Except Under Certain Conditions.
A Certificateholder of any series shall not have the right to institute any suit, action or
proceeding at law or in equity or otherwise with respect to this Agreement, for the appointment of
a receiver or for the enforcement of any other remedy under this Agreement, unless:
(1) such Certificateholder previously shall have given written notice to the Trustee of
a continuing Event of Default;
(2) Certificateholders holding Certificates of such series evidencing Fractional
Undivided Interests aggregating not less than 25% of the related Trust shall have requested
the Trustee in writing to institute such action, suit or proceeding and shall have offered
to the Trustee indemnity as provided in Section 7.03(e);
(3) the Trustee shall have refused or neglected to institute any such action, suit or
proceeding for 60 days after receipt of such notice, request and offer of indemnity; and
(4) no direction inconsistent with such written request shall have been given to the
Trustee during such 60-day period by Certificateholders holding Certificates of such series
evidencing Fractional Undivided Interests aggregating not less than a majority in interest
in the related Trust.
Except to the extent provided in any applicable Intercreditor Agreement or in any applicable
Trust Supplement, it is understood and intended that no one or more of the Certificateholders of
any series shall have any right in any manner whatsoever hereunder or under the related Trust
Supplement or under the Certificates of such series to (i) surrender, impair, waive, affect,
disturb or prejudice any property in the Trust Property of the related Trust, or the lien of any
related Indenture on any property subject thereto, or the rights of the Certificateholders of such
series or the holders of the related Equipment Notes, (ii) obtain or seek
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to obtain priority over or preference with respect to any other such Certificateholder of such
series or (iii) enforce any right under this Agreement, except in the manner provided in this
Agreement and for the equal, ratable and common benefit of all the Certificateholders of such
series subject to the provisions of this Agreement.
Section 6.08. Remedies Cumulative. Every remedy given under this Agreement to the
Trustee or to any of the Certificateholders of any series shall not be exclusive of any other
remedy or remedies, and every such remedy shall be cumulative and in addition to every other remedy
given under this Agreement or now or hereafter given by statute, law, equity or otherwise.
Section 6.09. Undertaking for Costs. In any suit for the enforcement of any right or
remedy under this Agreement, or in any suit against the Trustee for any action taken, suffered or
omitted by it as Trustee, a court may require any party litigant in such suit to file an
undertaking to pay the costs of such suit, and may assess costs against any such party litigant, in
the manner and to the extent provided in the Trust Indenture Act; provided,
however, that neither this Section 6.09 nor the Trust Indenture Act shall be deemed to
authorize any court to require such an undertaking or to make such an assessment in any suit
instituted by the Company.
ARTICLE VII
THE TRUSTEE
Section 7.01. Certain Duties and Responsibilities. (a) Except during the continuance
of an Event of Default in respect of a Trust, the Trustee undertakes to perform such duties in
respect of such Trust as are specifically set forth in this Agreement, and no implied covenants or
obligations shall be read into this Agreement against the Trustee.
(b) In case an Event of Default in respect of a Trust has occurred and is continuing, the
Trustee shall exercise such of the rights and powers vested in it by this Agreement in respect of
such Trust, and use the same degree of care and skill in their exercise, as a prudent person would
exercise or use under the circumstances in the conduct of his or her own affairs.
(c) No provision of this Agreement shall be construed to relieve the Trustee from liability
for its own negligent action, its own negligent failure to act, or its own willful misconduct,
except that:
(1) this Subsection (c) shall not be construed to limit the effect of Subsection (a) of
this Section 7.01; and
(2) the Trustee shall not be liable for any error of judgment made in good faith by a
Responsible Officer of the Trustee, unless it shall be proved that the Trustee was negligent
in ascertaining the pertinent facts.
(d) Whether or not herein expressly so provided, every provision of this Agreement relating to
the conduct or affecting the liability of or affording protection to the Trustee shall be subject
to the provisions of this Section 7.01.
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Section 7.02. Notice of Defaults. (a) As promptly as practicable after, and in any
event within 90 days after, the occurrence of any default (as such term is defined below) hereunder
known to the Trustee, the Trustee shall transmit by mail to the Company, any related Owner
Trustees, any related Owner Participants, the related Loan Trustees and the Certificateholders
holding Certificates of the related series, in the manner and to the extent provided in Section 313
(c) of the Trust Indenture Act, notice of such default hereunder known to the Trustee, unless such
default shall have been cured or waived; provided, however, that, except in the
case of a default in the payment of the principal, premium, if any, or interest on any Equipment
Note, the Trustee shall be protected in withholding such notice if and so long as the board of
directors, the executive committee or a trust committee of directors and/or Responsible Officers of
the Trustee in good faith shall determine that the withholding of such notice is in the interests
of the Certificateholders of the related series. For the purpose of this Section 7.02 in respect
of any Trust, the term “default” means any event that is, or after notice or lapse of time or both
would become, an Event of Default in respect of that Trust.
(b) The Trustee shall not be deemed to have knowledge of any Default unless a Responsible
Officer of the Trustee shall have received written notice of such Default; provided,
however, that the Trustee shall be deemed to have notice of any failure to receive
Scheduled Payments under this Agreement.
Section 7.03. Certain Rights of Trustee. Subject to the provisions of Section 315 of
the Trust Indenture Act:
(a) the Trustee may rely and shall be protected in acting or refraining from acting in
reliance upon any resolution, certificate, statement, instrument, opinion, report, notice, request,
direction, consent, order, bond, debenture or other paper or document believed by it to be genuine
and to have been signed or presented by the proper party or parties;
(b) any request or direction of the Company mentioned herein shall be sufficiently evidenced
by a Request;
(c) whenever in the administration of this Agreement or any Intercreditor Agreement, the
Trustee shall deem it desirable that a matter be proved or established prior to taking, suffering
or omitting any action hereunder, the Trustee (unless other evidence be herein specifically
prescribed) may, in the absence of bad faith on its part, rely upon an Officer’s Certificate of the
Company, any related Owner Trustee or any related Loan Trustee;
(d) the Trustee may consult with counsel and the advice of such counsel or any Opinion of
Counsel shall be full and complete authorization and protection in respect of any action taken,
suffered or omitted by it hereunder in good faith and in reliance thereon;
(e) the Trustee shall be under no obligation to exercise any of the rights or powers vested in
it by this Agreement or any Intercreditor Agreement at the Direction of any of the
Certificateholders pursuant to this Agreement or any Intercreditor Agreement, unless such
Certificateholders shall have offered to the Trustee reasonable security or indemnity against the
cost, expenses and liabilities which might be incurred by it in compliance with such Direction;
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(f) the Trustee shall not be bound to make any investigation into the facts or matters stated
in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction,
consent, order, bond, debenture or other paper or document;
(g) the Trustee may execute any of the trusts or powers under this Agreement or any
Intercreditor Agreement or perform any duties under this Agreement or any Intercreditor Agreement
either directly or by or through agents or attorneys, and the Trustee shall not be responsible for
any misconduct or negligence on the part of any agent or attorney appointed with due care by it
under this Agreement or any Intercreditor Agreement;
(h) the Trustee shall not be liable with respect to any action taken or omitted to be taken by
it in good faith in accordance with the Direction of the Certificateholders holding Certificates of
any series evidencing Fractional Undivided Interests aggregating not less than a majority in
interest in the related Trust relating to the time, method and place of conducting any proceeding
for any remedy available to the Trustee, or exercising any trust or power conferred upon the
Trustee, under this Agreement or any Intercreditor Agreement; and
(i) the Trustee shall not be required to expend or risk its own funds in the performance of
any of its duties under this Agreement, or in the exercise of any of its rights or powers, if it
shall have reasonable grounds for believing that repayment of such funds or adequate indemnity
against such risk is not reasonably assured to it.
Section 7.04. Not Responsible for Recitals or Issuance of Certificates. The recitals
contained herein and in the Certificates of each series, except the certificates of authentication,
shall not be taken as the statements of the Trustee, and the Trustee assumes no responsibility for
their correctness. Subject to Section 7.15, the Trustee makes no representations as to the
validity or sufficiency of this Basic Agreement, any Equipment Notes, any Intercreditor Agreement,
any Liquidity Facility to which the Trustee may be a party, the Certificates of any series, any
Trust Supplement or any Note Documents, except that the Trustee hereby represents and warrants that
this Basic Agreement has been, and each Trust Supplement, each Certificate, each Note Purchase
Agreement, each Intercreditor Agreement and any such Liquidity Facility of, or relating to, each
series will be executed and delivered by one of its officers who is duly authorized to execute and
deliver such document on its behalf.
Section 7.05. May Hold Certificates. The Trustee, any Paying Agent, Registrar or any
of their Affiliates or any other agent, in their respective individual or any other capacity, may
become the owner or pledgee of Certificates and, subject to Sections 310(b) and 311 of the Trust
Indenture Act, if applicable, may otherwise deal with the Company, the Parent, any Owner Trustees,
any Owner Participants or the Loan Trustees with the same rights it would have if it were not
Trustee, Paying Agent, Registrar or such other agent.
Section 7.06. Money Held in Trust. Money held by the Trustee or the Paying Agent in
trust under this Agreement need not be segregated from other funds except to the extent required in
this Agreement or by law and neither the Trustee nor the Paying Agent shall have any liability for
interest upon any such moneys except as provided for in this Agreement.
Section 7.07. Compensation and Reimbursement. The Company agrees:
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(1) to pay, or cause to be paid, to the Trustee from time to time such reasonable
compensation for all services rendered by it under this Agreement as the Company and the
Trustee may agree in writing from time to time (which compensation shall not be limited by
any provision of law in regard to the compensation of a trustee of an express trust); and
(2) except as otherwise expressly provided herein or in any Trust Supplement, to
reimburse, or cause to be reimbursed, the Trustee upon its request for all reasonable
out-of-pocket expenses, disbursements and advances incurred or made by the Trustee in
accordance with any provision of this Basic Agreement, any Trust Supplement, any
Intercreditor Agreement or any Liquidity Facility to which the Trustee may be a party
(including the reasonable compensation and the expenses and disbursements of its agents and
counsel), except any such expense, disbursement or advance as may be attributable to the
Trustee’s negligence, willful misconduct or bad faith or as may be incurred due to the
Trustee’s breach of its representations and warranties set forth in Section 7.15; and
(3) to indemnify, or cause to be indemnified, the Trustee with respect to the
Certificates of any series, pursuant to the particular sections of the Note Purchase
Agreement specified in the related Trust Supplement.
The Trustee shall be entitled to reimbursement from, and shall have a lien prior to the
Certificates of each series upon, all property and funds held or collected by the Trustee in its
capacity as Trustee with respect to such series or the related Trust for any tax incurred without
negligence, bad faith or willful misconduct, on its part, arising out of or in connection with the
acceptance or administration of such Trust (other than any tax attributable to the Trustee’s
compensation for serving as such), including any reasonable costs and expenses incurred in
contesting the imposition of any such tax. The Trustee shall notify the Company of any claim for
any tax for which it may seek reimbursement. If the Trustee reimburses itself from the Trust
Property of such Trust for any such tax, it will mail a brief report within 30 days setting forth
the amount of such tax and the circumstances thereof to all Certificateholders of such series as
their names and addresses appear in the Register.
Section 7.08. Corporate Trustee Required; Eligibility. Each Trust shall at all times
have a Trustee which shall be a bank, trust company or other financial institution organized and
doing business under the laws of the United States or any state thereof, shall be eligible to act
as a trustee under Section 310(a) of the Trust Indenture Act and shall have a combined capital and
surplus of at least $75,000,000 (or a combined capital and surplus in excess of $5,000,000 and the
obligations of which, whether now in existence or hereafter incurred, are fully and unconditionally
guaranteed by a corporation organized and doing business under the laws of the United States, any
state or territory thereof or the District of Columbia and having a combined capital and surplus of
at least $75,000,000). If such bank, trust company or other financial institution or such
corporation publishes reports of conditions at least annually, pursuant to law or to the
requirements of federal, state, territorial or District of Columbia supervising or examining
authority, then for the purposes of this Section 7.08 the combined capital and surplus of such
bank, trust company or other financial institution or such corporation shall be deemed to be its
combined capital and surplus as set forth in its most recent report of conditions so published.
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In case at any time the Trustee shall cease to be eligible in accordance with the provisions
of this Section 7.08 to act as Trustee of any Trust, the Trustee shall resign immediately as
Trustee of such Trust in the manner and with the effect specified in Section 7.09.
Section 7.09. Resignation and Removal; Appointment of Successor. (a) No resignation
or removal of the Trustee and no appointment of a successor Trustee of any Trust pursuant to this
Article VII shall become effective until the acceptance of appointment by the successor Trustee
under Section 7.10.
(b) The Trustee may resign at any time as Trustee of any or all Trusts by giving prior written
notice thereof to the Company, the Authorized Agents, any related Owner Trustees and the related
Loan Trustees. If an instrument of acceptance by a successor Trustee shall not have been delivered
to the Company, any related Owner Trustees and the Trustee within 30 days after the giving of such
notice of resignation, the resigning Trustee may petition any court of competent jurisdiction for
the appointment of a successor Trustee.
(c) The Trustee may be removed at any time as the Trustee of any Trust by Direction of the
Certificateholders of the related series holding Certificates of such series evidencing Fractional
Undivided Interests aggregating not less than a majority in interest in such Trust delivered to the
Trustee and to the Company, any related Owner Trustees and the related Loan Trustees.
(d) If at any time in respect of any Trust:
(1) the Trustee shall fail to comply with Section 310 of the Trust Indenture Act, if
applicable, after written request therefore by the Company or by any Certificateholder who
has been a bona fide Certificateholder for at least six months; or
(2) the Trustee shall cease to be eligible under Section 7.08 and shall fail to resign
after written request therefor by the Company or by any such Certificateholder; or
(3) the Trustee shall become incapable of acting or shall be adjudged a bankrupt or
insolvent, or a receiver of the Trustee or of its property shall be appointed or any public
officer shall take charge or control of the Trustee or of its property or affairs for the
purpose of rehabilitation, conservation or liquidation;
then, in any case, (i) the Company may remove the Trustee or (ii) any Certificateholder of the
related series who has been a bona fide Certificateholder for at least six months may, on behalf of
itself and all others similarly situated, petition any court of competent jurisdiction for the
removal of the Trustee and the appointment of a successor Trustee of such Trust.
(e) If a Responsible Officer of the Trustee shall obtain actual knowledge of an Avoidable Tax
(as defined below) in respect of any Trust which has been or is likely to be asserted, the Trustee
shall promptly notify the Company and shall, within 30 days of such notification, resign as Trustee
of such Trust hereunder unless within such 30-day period the Trustee shall have received notice
that the Company has agreed to pay such tax. The Company shall promptly appoint a successor
Trustee of such Trust in a jurisdiction where there are no Avoidable Taxes. As used herein, an
“Avoidable Tax” in respect of such Trust means a state or
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local tax: (i) upon (w) such Trust, (x) such Trust Property, (y) Certificateholders of such
Trust or (z) the Trustee for which the Trustee is entitled to seek reimbursement from the Trust
Property of such Trust, and (ii) which would be avoided if the Trustee were located in another
state, or jurisdiction within a state, within the United States of America. A tax shall not be an
Avoidable Tax in respect of any Trust if the Company or any Owner Trustee shall agree to pay, and
shall pay, such tax.
(f) If the Trustee shall resign, be removed or become incapable of acting as Trustee of any
Trust or if a vacancy shall occur in the office of the Trustee of any Trust for any cause, the
Company shall promptly appoint a successor Trustee of such Trust. If, within one year after such
resignation, removal or incapability, or other occurrence of such vacancy, a successor Trustee of
such Trust shall be appointed by Direction of the Certificateholders of the related series holding
Certificates of such series evidencing Fractional Undivided Interests aggregating not less than a
majority in interest in such Trust delivered to the Company, any related Owner Trustees, the
related Loan Trustee and the retiring Trustee, then the successor Trustee of such Trust so
appointed shall, with the approval of the Company of such appointment, which approval shall not be
unreasonably withheld, forthwith upon its acceptance of such appointment, become the successor
Trustee of such Trust and supersede the successor Trustee of such Trust appointed by the Company as
provided above. If no successor Trustee shall have been so appointed by the Company as provided
above and accepted appointment in the manner hereinafter provided, the resigning Trustee or any
Certificateholder who has been a bona fide Certificateholder of the related series for at least six
months may, on behalf of himself and all others similarly situated, petition any court of competent
jurisdiction for the appointment of a successor Trustee of such Trust.
(g) The successor Trustee of a Trust shall give notice of the resignation and removal of the
Trustee and appointment of the successor Trustee by mailing written notice of such event by
first-class mail, postage prepaid, to the Certificateholders of the related series as their names
and addresses appear in the Register. Each notice shall include the name of such successor Trustee
and the address of its Corporate Trust Office.
Section 7.10. Acceptance of Appointment by Successor. Every successor Trustee
appointed hereunder shall execute and deliver to the Company and to the retiring Trustee with
respect to any or all Trusts an instrument accepting such appointment, and thereupon the
resignation or removal of the retiring Trustee with respect to such trust or Trusts shall become
effective and such successor Trustee, without any further act, deed or conveyance, shall become
vested with all the rights, powers, trusts and duties of the retiring Trustee; but, on request of
the Company or the successor Trustee, such retiring Trustee shall execute and deliver an instrument
transferring to such successor Trustee all such rights, powers and trusts of the retiring Trustee
and shall duly assign, transfer and deliver to such successor Trustee all Trust Property held by
such retiring Trustee in respect of such Trusts hereunder (subject nevertheless to its lien, if
any, provided for in Section 7.07) and all books and records, or true, correct and complete copies
thereof, held by such retiring Trustee in respect of such Trusts hereunder. Upon request of any
such successor Trustee, the Company, the retiring Trustee and such successor Trustee shall execute
and deliver any and all instruments containing such provisions as shall be necessary or desirable
to transfer and confirm to, and for more fully and certainly vesting in, such successor Trustee all
such rights, powers and trusts.
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If a successor Trustee is appointed with respect to one or more (but not all) Trusts, the
Company, the predecessor Trustee and each successor Trustee with respect to any Trust shall execute
and deliver a supplemental agreement hereto which shall contain such provisions as shall be deemed
necessary or desirable to confirm that all of the rights, powers, trusts and duties of the
predecessor Trustee with respect to the Trusts as to which the predecessor Trustee is not retiring
shall continue to be vested in the predecessor Trustee, and shall add to or change any of the
provisions of this Basic Agreement and the applicable Trust Supplements as shall be necessary to
provide for or facilitate the administration of the Trusts under this Agreement by more than one
Trustee, it being understood that nothing herein or in such supplemental agreement shall constitute
such Trustees as co-Trustees of the same Trust and that each such Trustee shall be Trustee of
separate Trusts.
No institution shall accept its appointment as a Trustee hereunder unless at the time of such
acceptance such institution shall be qualified and eligible under this Article VII.
Section 7.11. Merger, Conversion, Consolidation or Succession to Business. Any
corporation into which the Trustee may be merged or converted or with which it may be consolidated,
or any corporation resulting from any merger, conversion or consolidation to which the Trustee
shall be a party, or any corporation succeeding to all or substantially all of the corporate trust
business of the Trustee, shall be the successor of the Trustee hereunder; provided,
however, that such corporation shall be otherwise qualified and eligible under this Article
VII, without the execution or filing of any paper or any further act on the part of any of the
parties hereto. In case any Certificates shall have been executed or authenticated, but not
delivered, by the Trustee then in office, any successor by merger, conversion or consolidation to
such authenticating Trustee may adopt such execution or authentication and deliver the Certificates
so executed or authenticated with the same effect as if such successor Trustee had itself executed
or authenticated such Certificates.
Section 7.12. Maintenance of Agencies. (a) With respect to each series of
Certificates, there shall at all times be maintained an office or agency in the location set forth
in Section 12.04 or at such other location as may be specified in the applicable Trust Supplement
where Certificates of such series may be presented or surrendered for registration of transfer or
for exchange, and for payment thereof, and where notices and demands to or upon the Trustee in
respect of such Certificates or this Agreement may be served; provided, however,
that, if it shall be necessary that the Trustee maintain an office or agency in another location
with respect to the Certificates of any series (e.g., the Certificates of such series shall be
represented by Definitive Certificates and shall be listed on a national securities exchange), the
Trustee will make all reasonable efforts to establish such an office or agency. Written notice of
the location of each such other office or agency and of any change of location thereof shall be
given by the Trustee to the Company, any Owner Trustees, the Loan Trustees (in the case of any
Owner Trustee or Loan Trustee, at its address specified in the Note Documents or such other address
as may be notified to the Trustee) and the Certificateholders of such series. In the event that no
such office or agency shall be maintained or no such notice of location or of change of location
shall be given, presentations and demands may be made and notices may be served at the Corporate
Trust Office of the Trustee.
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(b) There shall at all times be a Registrar and a Paying Agent hereunder with respect to the
Certificates of each series. Each such Authorized Agent shall be a bank, trust company, or other
financial institution organized and doing business under the laws of the United States or any state
thereof, with a combined capital and surplus of at least $75,000,000 (or a combined capital and
surplus in excess of $5,000,000, the obligations of which are fully and unconditionally guaranteed
by a corporation organized and doing business under the laws of the United States or any state or
territory thereof or the District of Columbia, with a combined capital and surplus of at least
$75,000,000), and shall be authorized under such laws to exercise corporate trust powers, subject
to supervision by federal or state authorities. The Trustee shall initially be the Paying Agent
and, as provided in Section 3.04, Registrar hereunder with respect to the Certificates of each
series. Each Registrar other than the Trustee shall furnish to the Trustee, at stated intervals of
not more than six months, and at such other times as the Trustee may request in writing, a copy of
the Register maintained by such Registrar.
(c) Any corporation into which any Authorized Agent may be merged or converted or with which
it may be consolidated, or any corporation resulting from any merger, consolidation or conversion
to which any Authorized Agent shall be a party, or any corporation succeeding to the corporate
trust business of any Authorized Agent, shall be the successor of such Authorized Agent, if such
successor corporation is otherwise eligible under this Section 7.12, without the execution or
filing of any paper or any further act on the part of the parties hereto or such Authorized Agent
or such successor corporation.
(d) Any Authorized Agent may at any time resign by giving written notice of resignation to the
Trustee, the Company, any related Owner Trustees and the related Loan Trustees. The Company may,
and at the request of the Trustee shall, at any time terminate the agency of any Authorized Agent
by giving written notice of termination to such Authorized Agent and to the Trustee. Upon the
resignation or termination of an Authorized Agent or in case at any time any such Authorized Agent
shall cease to be eligible under this Section 7.12 (when, in either case, no other Authorized Agent
performing the functions of such Authorized Agent shall have been appointed), the Company shall
promptly appoint one or more qualified successor Authorized Agents, reasonably satisfactory to the
Trustee, to perform the functions of the Authorized Agent which has resigned or whose agency has
been terminated or who shall have ceased to be eligible under this Section 7.12. The Company shall
give written notice of any such appointment made by it to the Trustee, any related Owner Trustees
and the related Loan Trustees; and in each case the Trustee shall mail notice of such appointment
to all Certificateholders of the related series as their names and addresses appear on the Register
for such series.
(e) The Company agrees to pay, or cause to be paid, from time to time to each Authorized Agent
such compensation for its services as the Company and the Trustee may agree in writing from time to
time and to reimburse it for its reasonable expenses to the extent set forth in Section 7.07(2).
Section 7.13. Money for Certificate Payments to Be Held in Trust. All moneys
deposited with any Paying Agent for the purpose of any payment on Certificates shall be deposited
and held in trust for the benefit of the Certificateholders entitled to such payment, subject to
the provisions of this Section 7.13. Moneys so deposited and held in trust shall
constitute a separate trust fund for the benefit of the Certificateholders with respect to
which such money was deposited.
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The Trustee may at any time, for the purpose of obtaining the satisfaction and discharge of
this Agreement or for any other purpose, direct any Paying Agent to pay to the Trustee all sums
held in trust by such Paying Agent, such sums to be held by the Trustee upon the same trusts as
those upon which such sums were held by such Paying Agent; and, upon such payment by any Paying
Agent to the Trustee, such Paying Agent shall be released from all further liability with respect
to such money.
Section 7.14. Registration of Equipment Notes in Trustee’s Name. Subject to the
provisions of any Intercreditor Agreement and Section 12.03 hereof, the Trustee agrees that all
Equipment Notes to be purchased by any Trust, Specified Investments, if any, to be held by the
Trustee on behalf of a Trust and Permitted Investments, if any, to be held by the Trustee on behalf
of a Trust shall be issued in the name of the Trustee as trustee for the applicable Trust or its
nominee and held by the Trustee in trust for the benefit of the Certificateholders of such series,
or, if not so held, the Trustee or its nominee shall be reflected as the owner of such Equipment
Notes, Specified Investments or Permitted Investments, as the case may be, in the register of the
issuer of such Equipment Notes, Specified Investments or Permitted Investments, as the case may be.
In no event shall the Trustee invest in, or hold, Equipment Notes, Specified Investments or
Permitted Investments in a manner that would cause the Trustee not to have the ownership interest
in (or a securities entitlement with respect to) such Equipment Notes, Specified Investments or
Permitted Investments under the applicable provisions of the Uniform Commercial Code in effect
where the Trustee holds such Equipment Notes, Specified Investments or Permitted Investments or
other applicable law then in effect.
Section 7.15. Representations and Warranties of Trustee. The Trustee hereby
represents and warrants that:
(a) the Trustee is a Delaware banking corporation duly organized and validly existing in good
standing under the laws of the State of Delaware.
(b) the Trustee has full power, authority and legal right to execute, deliver and perform this
Agreement, any Intercreditor Agreement, any Liquidity Facility, the Certificates and the Note
Purchase Agreements and has taken all necessary action to authorize the execution, delivery and
performance by it of this Agreement, any Intercreditor Agreement, any Liquidity Facility, the
Certificates and the Note Purchase Agreements;
(c) the execution, delivery and performance by the Trustee of this Agreement, any
Intercreditor Agreement, any Liquidity Facility, the Certificates and the Note Purchase Agreements
(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 charter documents or
by-laws of the Trustee, and (iii) will not violate any provision of, or constitute, with or without
notice or lapse of time or both, 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
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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;
(d) the execution, delivery and performance by the Trustee of this Agreement, any
Intercreditor Agreement, any Liquidity Facility, the Certificates and the Note Purchase Agreements
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;
(e) this Agreement, any Intercreditor Agreement, any Liquidity Facility, the Certificates and
the Note Purchase Agreements have been or will be duly executed and delivered by the Trustee and
constitute or upon such execution and delivery will constitute 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; and
(f) the statements made by it in a Statement of Eligibility on Form T-l supplied or to be
supplied to the Company in connection with the registration of any Certificates are and will be
true and accurate subject to the qualifications set forth therein; and that such statement complies
and will comply in all material respects with the requirements of the Trust Indenture Act and the
Securities Act of 1933, as amended.
The representation and warranties set forth above shall be deemed to be made by the Trustee on
each Issuance Date, except as otherwise provided in the applicable Trust Supplement.
Section 7.16. Withholding Taxes; Information Reporting. As to the Certificates of any
series, the Trustee, as trustee of the related grantor trust created by this Agreement, shall
exclude and withhold from each distribution of principal, premium, if any, and interest and other
amounts due under this Agreement or under the Certificates of such series any and all withholding
taxes applicable thereto as required by law. The Trustee agrees to act as such withholding agent
and, in connection therewith, whenever any present or future taxes or similar charges are required
to be withheld with respect to any amounts payable in respect of the Certificates of such series,
to withhold such amounts and timely pay the same to the appropriate authority in the name of and on
behalf of the Certificateholders of such series, that it will file any necessary withholding tax
returns or statements when due, and that, as promptly as possible after the payment thereof, it
will deliver to each such Certificateholder of such series appropriate documentation showing the
payment thereof, together with such additional documentary evidence as such Certificateholders may
reasonably request from time to time. The Trustee agrees to file any other information reports as
it may be required to file under United States law.
Section 7.17. Trustee’s Liens. The Trustee in its individual capacity agrees that it
will, in respect of each Trust created by this Agreement, at its own cost and expense (and
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without the right of indemnity hereunder, including Section 7.07), promptly take any action as
may be necessary to duly discharge and satisfy in full any mortgage, pledge, lien, charge,
encumbrance, security interest or claim (“Trustee’s Liens”) on or with respect to the Trust
Property of such Trust which is attributable to the Trustee either (i) in its individual capacity
and which is unrelated to the transactions contemplated by this Agreement or the related Note
Documents or (ii) as Trustee under this Agreement or in its individual capacity and which arises
out of acts or omissions which are not contemplated by this Agreement.
Section 7.18. Preferential Collection of Claims. The Trustee shall comply with
Section 311(a) of the Trust Indenture Act, excluding any creditor relationship listed in Section
311(b) of the Trust Indenture Act. If the Trustee shall resign or be removed as Trustee, it shall
be subject to Section 311(a) of the Trust Indenture Act to the extent provided therein.
ARTICLE VIII
CERTIFICATEHOLDERS’ LISTS AND REPORTS BY TRUSTEE
Section 8.01. The Company to Furnish Trustee with Names and Addresses of
Certificateholders. The Company will furnish to the Trustee within 15 days after each Record
Date with respect to a Scheduled Payment, and at such other times as the Trustee may request in
writing within 30 days after receipt by the Company of any such request, a list, in such form as
the Trustee may reasonably require, of all information in the possession or control of the Company
as to the names and addresses of the Certificateholders of each series, in each case as of a date
not more than 15 days prior to the time such list is furnished; provided, however,
that so long as the Trustee is the sole Registrar for such series, no such list need be furnished;
and provided further, however, that no such list need be furnished for so
long as a copy of the Register is being furnished to the Trustee pursuant to Section 7.12.
Section 8.02. Preservation of Information; Communications to Certificateholders. The
Trustee shall preserve, in as current a form as is reasonably practicable, the names and addresses
of Certificateholders of each series contained in the most recent list furnished to the Trustee as
provided in Section 7.12 or Section 8.01, as the case may be, and the names and addresses of
Certificateholders of each series received by the Trustee in its capacity as Registrar, if so
acting. The Trustee may destroy any list furnished to it as provided in Section 7.12 or Section
8.01, as the case may be, upon receipt of a new list so furnished.
Section 8.03. Reports by Trustee. Within 60 days after May 15 of each year commencing
with the first full year following the issuance of any series of Certificates, the Trustee shall
transmit to the Certificateholders of such series, as provided in Section 313(c) of the Trust
Indenture Act, a brief report dated as of such May 15, if required by and in compliance with
Section 313(a) of the Trust Indenture Act. The Trustee shall also transmit to Certificateholders
such reports, if any, as may be required pursuant to Section 313(b) of the Trust Indenture Act at
the times and in the manner provided pursuant thereto and to Section 313(c) thereof.
Section 8.04. Reports by the Company. The Company shall:
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(a) file with the Trustee, within 30 days after the Company is required to file the same with
the SEC, copies of the annual reports and of the information, documents and other reports (or
copies of such portions of any of the foregoing as the SEC may from time to time by rules and
regulations prescribe) which the Company is required to file with the SEC pursuant to section 13 or
section 15(d) of the Securities Exchange Act of 1934, as amended; or, if the Company is not
required to file information, documents or reports pursuant to either of such sections, then to
file with the Trustee and the SEC, in accordance with rules and regulations prescribed by the SEC,
such of the supplementary and periodic information, documents and reports which may be required
pursuant to section 13 of the Securities Exchange Act of 1934, as amended, in respect of a security
listed and registered on a national securities exchange as may be prescribed in such rules and
regulations;
(b) file with the Trustee and the SEC, in accordance with the rules and regulations prescribed
by the SEC, such additional information, documents and reports with respect to compliance by the
Company with the conditions and covenants of the Company provided for in this Agreement, as may be
required by such rules and regulations, including, in the case of annual reports, if required by
such rules and regulations, certificates or opinions of independent public accountants, conforming
to the requirements of Section 1.02;
(c) transmit to all Certificateholders, in the manner and to the extent provided in Section
313 (c) of the Trust Indenture Act, such summaries of any information, documents and reports
required to be filed by the Company pursuant to subsections (a) and (b) of this Section 8.04 as may
be required by rules and regulations prescribed by the SEC; and
(d) furnish to the Trustee, not less often than annually, a brief certificate from the
principal executive officer, principal financial officer or principal accounting officer as to his
or her knowledge of the Company’s compliance with all conditions and covenants of the Company under
this Agreement (it being understood that for purposes of this paragraph (d), such compliance shall
be determined without regard to any period of grace or requirement of notice provided under this
Agreement).
ARTICLE IX
SUPPLEMENTAL AGREEMENTS
Section 9.01. Supplemental Agreements without Consent of Certificateholders. Without
the consent of any Certificateholders, the Company may (but will not be required to), and the
Trustee (subject to Section 9.03) shall, at the Company’s request, at any time and from time to
time, enter into one or more agreements supplemental hereto or, if applicable, to an Intercreditor
Agreement, a Note Purchase Agreement, a Liquidity Facility or a Guarantee, for any of the following
purposes:
(1) to provide for the formation of a Trust, the issuance of a series of Certificates
and other matters contemplated by Section 2.01(b) or to add, or to change or eliminate, any
provision effecting a series of Certificates not yet issued, including to make appropriate
provisions for a Guarantee; or
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(2) to evidence the succession of another Person to the Company and the assumption by
any such successor of the covenants of the Company herein contained or of the Company’s
obligations under any Intercreditor Agreement, any Note Purchase Agreement, or any Liquidity
Facility or, if applicable, to evidence the succession of another Person to the Parent and
the assumption by any such successor of the covenants of the Parent contained in this
Agreement or of the Parent’s obligations under any Guarantee; or
(3) to add to the covenants of the Company or the Parent for the benefit of the
Certificateholders of any series, or to surrender any right or power conferred upon the
Company or the Parent in this Agreement, any Note Purchase Agreement, any Intercreditor
Agreement, any Liquidity Facility or any Guarantee; or
(4) to correct or supplement any provision in this Agreement, any Intercreditor
Agreement, any Note Purchase Agreement, any Liquidity Facility or any Guarantee which may be
defective or inconsistent with any other provision herein or therein or to cure any
ambiguity or to modify any other provision with respect to matters or questions arising
under this Agreement, any Intercreditor Agreement, any Note Purchase Agreement, any
Liquidity Facility or any Guarantee, provided, however, that any such action
shall not materially adversely affect the interests of the Certificateholders of any series;
to correct any mistake in this Agreement, any Intercreditor Agreement, any Note Purchase
Agreement, any Liquidity Facility or any Guarantee; or, as provided in any Intercreditor
Agreement, to give effect to or provide for a Replacement Liquidity Facility (as defined in
such Intercreditor Agreement); or
(5) to comply with any requirement of the SEC, any applicable law, rules or regulations
of any exchange or quotation system on which the Certificates of any series are listed or of
any regulatory body; or
(6) to modify, eliminate or add to the provisions of this Agreement, any Intercreditor
Agreement, any Note Purchase Agreement, any Liquidity Facility or any Guarantee to such
extent as shall be necessary to continue or obtain the qualification of this Agreement, any
Intercreditor Agreement, any Note Purchase Agreement, any Liquidity Facility or any
Guarantee under the Trust Indenture Act or under any similar Federal statute hereafter
enacted, and to add to this Agreement, any Intercreditor Agreement, any Note Purchase
Agreement, any Liquidity Facility or any Guarantee such other provisions as may be expressly
permitted by the Trust Indenture Act, excluding, however, the provisions referred to in
Section 316(a)(2) of the Trust Indenture Act as in effect at the date as of which this Basic
Agreement was executed or any corresponding provision in any similar Federal statute
hereafter enacted; or
(7) to evidence and provide for the acceptance of appointment under this Agreement, any
Intercreditor Agreement, any Note Purchase Agreement, any Liquidity Facility or any
Guarantee by a successor Trustee with respect to one or more Trusts and to add to or change
any of the provisions of this Agreement, any Intercreditor Agreement, any Note Purchase
Agreement, any Liquidity Facility or any Guarantee as shall be
necessary to provide for or facilitate the administration of the Trust, pursuant to the
requirements of Section 7.10; or
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(8) to provide the information required under Section 7.12 and Section 12.04 as to the
Trustee; or
(9) to add to or change any of the provisions of the Certificate of any series or this
Agreement to such extent as shall be necessary to facilitate the issuance of Certificates of
such series in bearer form or to facilitate or provide for the issuance of Certificates of
such series in global form in addition to or in place of Certificates in certificated form;
or
(10) to provide for the delivery of agreements supplemental to this Agreement or the
Certificates of any series in or by any means of any computerized, electronic or other
medium, including without limitation by computer diskette; or
(11) to correct or supplement the description of any property constituting property of
the Trust; or
(12) to modify, eliminate or add to the provisions of this Basic Agreement, any Trust
Supplement or any applicable Note Purchase Agreement in order to reflect the substitution of
a Substitute Aircraft for any Aircraft; or
(13) to comply with any requirement of the SEC in connection with the qualification of
this Agreement, any Guarantee or any other agreement or instrument related to the
Certificates of any series under the Trust Indenture Act; or
(14) to make any other amendments or modifications hereto, provided,
however, that such amendments or modifications shall apply to Certificates of any
series to be thereafter issued;
provided, however, that no such supplemental agreement shall adversely affect the
status of any Trust as a grantor trust under Subpart E, Part I of Subchapter J of Chapter 1 of
Subtitle A of the Internal Revenue Code of 1986, as amended, for U.S. federal income tax purposes.
Section 9.02. Supplemental Agreements with Consent of Certificateholders. With
respect to each separate Trust and the series of Certificates relating thereto, with the consent of
the Certificateholders holding Certificates of such series (including consents obtained in
connection with a tender offer or exchange offer for the Certificates) evidencing Fractional
Undivided Interests aggregating not less than a majority in interest in such Trust, by Direction of
said Certificateholders delivered to the Company and the Trustee, the Company, and, if applicable,
the Parent may, but shall not be obligated to, and the Trustee (subject to Section 9.03) shall,
enter into an agreement or agreements supplemental hereto for the purpose of adding any provisions
to or changing in any manner or eliminating any of the provisions of this Agreement, any
Intercreditor Agreement, any Liquidity Facility or any Guarantee to the extent applicable to such
Certificateholders or of modifying in any manner the rights and obligations of such
Certificateholders under this Agreement, any Intercreditor Agreement, any Liquidity Facility or
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any Guarantee; provided, however, that no such agreement shall, without the
consent of the Certificateholder of each Outstanding Certificate adversely affected thereby:
(1) reduce in any manner the amount of, or delay the timing of, any receipt by the
Trustee of payments on the Equipment Notes held in such Trust or distributions that are
required to be made herein on any Certificate of such series, or change any date of payment
on any Certificate of such series, or change the place of payment where, or the coin or
currency in which, any Certificate of such series is payable (other than as provided for in
such Certificate), or impair the right to institute suit for the enforcement of any such
payment or distribution on or after the Regular Distribution Date or Special Distribution
Date applicable thereto; or
(2) permit the disposition of any Equipment Note included in the Trust Property of such
Trust except as permitted by this Agreement or any Intercreditor Agreement, or otherwise
deprive such Certificateholder of the benefit of the ownership of the Equipment Notes in
such Trust; or
(3) alter the priority of distributions specified in the relevant Intercreditor
Agreement, if any, in a manner materially adverse to the interests of the Certificateholders
of such series; or
(4) reduce the specified percentage of the aggregate Fractional Undivided Interests of
such Trust that is required for any such supplemental agreement, or reduce such specified
percentage required for any waiver (of compliance with certain provisions of this Agreement
or certain defaults hereunder and their consequences) provided for in this Agreement; or
(5) modify any of the provisions of this Section 9.02 or Section 6.05, except to
increase any such percentage or to provide that certain other provisions of this Agreement
cannot be modified or waived without the consent of the Certificateholder of each
Certificate of such series affected thereby;
(6) adversely affect the status of any Trust as a grantor trust under Subpart E, Part I
of Subchapter J of Chapter 1 of Subtitle A of the Internal Revenue Code of 1986, as amended,
for U.S. federal income tax purposes; or
(7) if a Guarantee is issued guaranteeing the Equipment Notes held in such Trust or any
Leases related to Equipment Notes to be acquired and held in such Trust, modify such
Guarantee in a manner materially adverse to the interests of the Certificateholders of such
series.
It shall not be necessary for any Direction of such Certificateholders under this Section 9.02
to approve the particular form of any proposed supplemental agreement, but it shall be sufficient
if such Direction shall approve the substance thereof.
Section 9.03. Documents Affecting Immunity or Indemnity. If in the opinion of the
Trustee any document required to be executed by it pursuant to the terms of Section 9.01 or 9.02
affects any interest, right, duty, immunity or indemnity in favor of the Trustee under this
Basic Agreement or any Trust Supplement, the Trustee may in its discretion decline to execute
such document.
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Section 9.04. Execution of Supplemental Agreements. In executing, or accepting the
additional trusts created by, any supplemental agreement permitted by this Article IX or the
modifications thereby of the trusts created by this Agreement, the Trustee shall be entitled to
receive, and shall be fully protected in relying upon, an Opinion of Counsel stating that the
execution of such supplemental agreement is authorized or permitted by this Agreement.
Section 9.05. Effect of Supplemental Agreements. Upon the execution of any agreement
supplemental to this Agreement under this Article IX, this Agreement shall be modified in
accordance therewith, and such supplemental agreement shall form a part of this Agreement for all
purposes; and every Certificateholder of each series theretofore or thereafter authenticated and
delivered hereunder shall be bound thereby to the extent applicable to such series.
Section 9.06. Conformity with Trust Indenture Act. Every supplemental agreement
executed pursuant to this Article IX shall conform to the requirements of the Trust Indenture Act
as then in effect.
Section 9.07. Reference in Certificates to Supplemental Agreements. Certificates of
each series authenticated and delivered after the execution of any supplemental agreement
applicable to such series pursuant to this Article IX may bear a notation in form approved by the
Trustee as to any matter provided for in such supplemental agreement; and, in such case, suitable
notation may be made upon Outstanding Certificates of such series after proper presentation and
demand.
ARTICLE X
AMENDMENTS TO INDENTURES AND OTHER NOTE DOCUMENTS
Section 10.01. Amendments and Supplements to Indentures and Other Note Documents. In
the event that the Trustee, as holder (or beneficial owner through the Subordination Agent) of any
Equipment Notes (or as a prospective purchaser of any Postponed Notes) in trust for the benefit of
the Certificateholders of any series or as Controlling Party under an Intercreditor Agreement,
receives (directly or indirectly through the Subordination Agent) a request for a consent to any
amendment, modification, waiver or supplement under any Indenture, other Note Document or any other
related document, the Trustee shall forthwith send a notice of such proposed amendment,
modification, waiver or supplement to each Certificateholder of such series registered on the
Register as of the date of such notice. The Trustee shall request from the Certificateholders of
such series a Direction as to (a) whether or not to take or refrain from taking (or direct the
Subordination Agent to take or refrain from taking) any action which a holder of (or, with respect
to Postponed Notes, a prospective purchaser of) such Equipment Note or a Controlling Party has the
option to direct, (b) whether or not to give or execute (or direct the Subordination Agent to give
or execute) any waivers, consents, amendments, modifications or supplements as a holder of (or,
with respect to Postponed Notes, a prospective purchaser of) such Equipment Note or a Controlling
Party and
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(c) how to vote (or direct the Subordination Agent to vote) any Equipment Note (or, with
respect to a Postponed Note, its commitment to acquire such Postponed Note) if a vote has been
called for with respect thereto. Provided such a request for Certificateholder Direction shall
have been made, in directing any action or casting any vote or giving any consent as the holder of
any Equipment Note (or in directing the Subordination Agent in any of the foregoing), (i) other
than as Controlling Party, the Trustee shall vote for or give consent to any such action with
respect to such Equipment Note (or Postponed Note) in the same proportion as that of (A) the
aggregate face amount of all Certificates actually voted in favor of or for giving consent to such
action by such Direction of Certificateholders to (B) the aggregate face amount of all Outstanding
Certificates and (ii) as Controlling Party, the Trustee shall vote as directed in such
Certificateholder Direction by the Certificateholders of such series evidencing a Fractional
Undivided Interest aggregating not less than a majority in interest in the Trust. For purposes of
the immediately preceding sentence, a Certificate shall have been “actually voted” if the Holder of
such Certificate has delivered to the Trustee an instrument evidencing such Holder’s consent to
such Direction prior to one Business Day before the Trustee directs such action or casts such vote
or gives such consent. Notwithstanding the foregoing, but subject to Section 6.04 and any
Intercreditor Agreement, the Trustee may, with respect to the Certificates of any series, in its
own discretion and at its own direction, consent and notify the relevant Loan Trustee of such
consent (or direct the Subordination Agent to consent and notify the Loan Trustee of such consent)
to any amendment, modification, waiver or supplement under any related Indenture or any other
related Note Document if an Event of Default hereunder shall have occurred and be continuing or if
such amendment, modification, waiver or supplement will not materially adversely affect the
interests of the Certificateholders of such series.
ARTICLE XI
TERMINATION OF TRUSTS
Section 11.01. Termination of the Trusts. In respect of each Trust created by the
Basic Agreement as supplemented by a related Trust Supplement, the respective obligations and
responsibilities of the Company and the Trustee and, if applicable, the Parent, with respect to
such Trust shall terminate upon the distribution to all Holders of Certificates of the series of
such Trust 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 of such Trust;
provided, however, that in no event shall such Trust continue beyond 21 years less
one day following the death of the last survivor of all descendants living on the date hereof of
Xxxxxx X. Xxxxxxx, Xx., unless applicable law shall permit a longer term, in which case such longer
term shall apply.
Notice of any termination of a Trust, specifying the applicable Regular Distribution Date (or
applicable Special Distribution Date, as the case may be) upon which the Certificateholders of any
series may surrender their Certificates to the Trustee for payment of the final distribution and
cancellation, shall be mailed promptly by the Trustee to Certificateholders of such series not
earlier than the minimum number of days and not later than the maximum number of days specified
therefor in the related Trust Supplement preceding such final distribution specifying (A) the
Regular Distribution Date (or Special Distribution Date, as the case may be) upon which the
proposed final payment of the Certificates of such series will be
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made upon presentation and surrender of Certificates of such series 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 Regular Distribution Date (or Special Distribution Date,
as the case may be) is not applicable, payments being made only upon presentation and surrender of
the Certificates of such series 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
Certificateholders of such series. Upon presentation and surrender of the Certificates of such
series in accordance with such notice, the Trustee shall cause to be distributed to
Certificateholders of such series amounts distributable on such Regular Distribution Date (or
Special Distribution Date, as the case may be) pursuant to Section 4.02.
In the event that all of the Certificateholders of such series shall not surrender their
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 Certificateholders
of such series to surrender their Certificates for cancellation and receive the final distribution
with respect thereto. No additional interest shall accrue on the Certificates of such series after
any Regular Distribution Date (or Special Distribution Date, as the case may be) of such series, as
specified in the first written notice. In the event that any money held by the Trustee for the
payment of distributions on the Certificates of such series shall remain unclaimed for two years
(or such lesser time as the Trustee shall be satisfied, after 60 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 any related Owner
Trustees and the Company.
ARTICLE XII
MISCELLANEOUS PROVISIONS
Section 12.01. Limitation on Rights of Certificateholders. (a) The insolvency, death
or incapacity of any Certificateholder of any series shall not operate to terminate this Agreement
or the related Trust, nor entitle such Certificateholder’s legal representatives or heirs to claim
an accounting or to take any action or commence any proceeding in any court for a partition or
winding up of the Trust, nor otherwise affect the rights, obligations and liabilities of the
parties hereto or any of them. No Certificateholder of any series shall be entitled to revoke the
related Trust.
(b) No transfer, by operation of law or otherwise, of any Certificate or other right, title
and interest of any Certificateholder in and to the applicable Trust Property or under the related
Trust shall operate to terminate the Trust or entitle such Certificateholder or any successor or
transferee of such Certificateholder to an accounting or to the transfer to it of legal title to
any part of such Trust Property.
Section 12.02. Certificates Nonassessable and Fully Paid. Except as set forth in the
last sentence of this Section 12.02, Certificateholders of each series shall not be personally
liable for obligations of the related Trust, the Fractional Undivided Interests represented by the
Certificates of such series shall be nonassessable for any losses or expenses of such Trust or for
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any reason whatsoever, and Certificates of such series upon authentication thereof by the
Trustee pursuant to Section 3.02 are and shall be deemed fully paid. No Certificateholder of such
series shall have any right (except as expressly provided herein) to vote or in any manner
otherwise control the operation and management of the related Trust Property, the related Trust, or
the obligations of the parties hereto, nor shall anything set forth herein, or contained in the
terms of the Certificates of such series, be construed so as to constitute the Certificateholders
of such series from time to time as partners or members of an association. Neither the existence
of the Trust nor any provision in this Agreement is intended to or shall limit the liability the
Certificateholders would otherwise incur if the Certificateholders owned Trust Property as
co-owners, or incurred any obligations of the Trust, directly rather than through the Trust.
Section 12.03. Registration of Equipment Notes in Name of Subordination Agent. If a
Trust is party to an Intercreditor Agreement, the Trustee agrees that all Equipment Notes to be
purchased by such Trust may be issued in the name of the Subordination Agent under such
Intercreditor Agreement or its nominee and held by such Subordination Agent in trust for the
benefit of the Certificateholders, or, if not so held, such Subordination Agent or its nominee
shall be reflected as the owner of such Equipment Notes in the register of the issuer of such
Equipment Notes.
Section 12.04. Notices. (a) Unless otherwise specifically provided or permitted
herein or in the applicable Trust Supplement with respect to any Trust, all notices required or
permitted under the terms and provisions of this Basic Agreement or such Trust Supplement with
respect to such Trust shall be in English and in writing, and any such notice may be given by
United States mail, courier service or facsimile, or any other customary means of communication,
and any such notice shall be effective when delivered or received or, if mailed, three days after
deposit in the United States mail with proper postage for ordinary mail prepaid, and if delivered
by facsimile, upon completion of transmission and confirmation by the sender (by a telephone call
to a representative of the recipient or by machine confirmation) that the transmission was
received),
if to the Company:
US Airways, Inc.
000 Xxxx Xxx Xxxxxx Xxxxxxx
Xxxxx, XX 00000
Attention: Treasurer
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
000 Xxxx Xxx Xxxxxx Xxxxxxx
Xxxxx, XX 00000
Attention: Treasurer
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
with a copy to the attention of the Company’s Office
of the General Counsel at the same address:
of the General Counsel at the same address:
Attention: Aircraft Counsel
Facsimile: (000) 000-0000
Facsimile: (000) 000-0000
if to the Trustee:
Wilmington Trust Company, as Trustee
52
000 Xxxxx Xxxxxx Xxxxxx
Xxxxxxxxxx, XX 00000-0000
Attention: Corporate Trust Administration
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
Xxxxxxxxxx, XX 00000-0000
Attention: Corporate Trust Administration
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
(b) The Company or the Trustee, by notice to the other, may designate additional or different
addresses for subsequent notices or communications.
(c) Any notice or communication to Certificateholders of any series shall be mailed by
first-class mail to the addresses for Certificateholders of such series shown on the Register kept
by the Registrar and to addresses filed with the Trustee for Certificate Owners of such series;
provided, however, that if The Depository Trust Company, or Cede & Co., as its
nominee, is the sole Certificateholder of record, such notices or communications need only be sent
to The Depository Trust Company and may be sent by any means permitted under subsection (a) above.
Failure so to mail a notice or communication or any defect in such notice or communication shall
not affect its sufficiency with respect to other Certificateholders or Certificate Owners of such
series.
(d) If a notice or communication is mailed in the manner provided above within the time
prescribed, it is conclusively presumed to have been duly given, whether or not the addressee
receives it.
(e) If the Company mails a notice or communication to the Certificateholders of such series,
it shall mail a copy to the Trustee and to each Paying Agent for such series at the same time.
(f) Notwithstanding the foregoing, all communications or notices to the Trustee shall be
deemed to be given only when received by a Responsible Officer of the Trustee.
(g) The Trustee shall promptly furnish the Company with a copy of any report, demand, notice
or written communication received by the Trustee hereunder from, or sent or furnished by the
Trustee hereunder to, any Certificateholder, Owner Trustee, Loan Trustee, Liquidity Provider,
Subordination Agent or other Person.
Section 12.05. Governing Law and Venue; Waiver of Jury Trial. (a) THIS BASIC
AGREEMENT, TOGETHER WITH ALL TRUST SUPPLEMENTS AND CERTIFICATES (UNLESS SPECIFIED OTHERWISE IN A
TRUST SUPPLEMENT), SHALL BE DEEMED TO BE MADE IN AND IN ALL RESPECTS SHALL BE INTERPRETED,
CONSTRUED AND GOVERNED BY AND IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO
THE CONFLICTS OF LAW PRINCIPLES THEREOF. The parties hereby irrevocably submit to the jurisdiction
of the courts of the State of New York and the federal courts of the United States of America
located in the State of New York, solely in respect of the interpretation and enforcement of the
provisions of this Basic Agreement and of the documents referred to in this Basic Agreement, and in
respect of the transactions contemplated hereby, and hereby waive, and agree not to assert, as a
defense in any action, suit or proceeding for the interpretation or enforcement hereof or of any
such document,
53
that it is not subject thereto or that such action, suit or proceeding may not be brought or
is not maintainable in said courts or that the venue thereof may not be appropriate or that this
Basic Agreement or any such document may not be enforced in or by such courts, and the parties
hereto irrevocably agree that all claims with respect to such action or proceeding shall be heard
and determine in such courts. The parties hereby consent to and grant any such court jurisdiction
over the person of such parties and consent to the jurisdiction of any such court over the subject
matter of such dispute and agree that mailing of process or other papers in connection with any
such action or proceeding in the manner provided in Section 12.04 or in such other manner as may be
permitted by law shall be valid and sufficient service thereof.
(b) EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS
AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY
HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN
RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS BASIC
AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED BY THIS BASIC AGREEMENT. EACH PARTY CERTIFIES AND
ACKNOWLEDGES THAT (i) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO
ENFORCE THE FOREGOING WAIVER, (ii) EACH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF
THIS WAIVER, (iii) EACH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (iv) EACH PARTY HAS BEEN INDUCED
TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION 12.05.
Section 12.06. Severability of Provisions. If any one or more of the covenants,
agreements, provisions or terms of this Agreement shall be for any reason whatsoever held invalid,
then such covenants, agreements, provisions, or terms shall be deemed severable from the remaining
covenants, agreements, provisions or terms of this Agreement and shall in no way affect the
validity or enforceability of the other provisions of this Agreement or the related Trust, or of
the Certificates of such series or the rights of the Certificateholders thereof.
Section 12.07. Trust Indenture Act Controls. This Agreement is subject to the
provisions of the Trust Indenture Act and shall, to the extent applicable, be governed by such
provisions. If any provision of this Agreement limits, qualifies or conflicts with another
provision which is required to be included in this Agreement by the Trust Indenture Act, the
required provision shall control.
Section 12.08. Effect of Headings and Table of Contents. The Article and Section
headings herein and the Table of Contents are for convenience only and shall not affect the
construction hereof.
Section 12.09. Successors and Assigns. All covenants, agreements, representations and
warranties in this Agreement by the Trustee and the Company shall bind and, to the extent permitted
hereby, shall inure to the benefit of and be enforceable by their respective
54
successors and assigns, whether so expressed or not. Any request, notice, direction, consent,
waiver or other instrument or action by any Certificateholder shall bind the successors and assigns
of such Certificateholder.
Section 12.10. Benefits of Agreement. Nothing in this Agreement or in the
Certificates of any series, express or implied, shall give to any Person, other than the parties to
this Agreement and their successors under this Agreement, and the Certificateholders of each
series, any benefit or any legal or equitable right, remedy or claim under this Agreement, except
as provided expressly herein.
Section 12.11. Legal Holidays. In any case where any Regular Distribution Date or
Special Distribution Date relating to any Certificate of any series shall not be a Business Day
with respect to such series, then (notwithstanding any other provision of this Agreement) payment
need not be made on such date, but may be made on the next succeeding 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.
Section 12.12. Counterparts. For the purpose of facilitating the execution of this
Agreement and for other purposes, this Agreement may be executed simultaneously in any number of
counterparts, each of which counterparts shall be deemed to be an original, and all of which
counterparts shall constitute but one and the same instrument.
Section 12.13. Communication by Certificateholders with Other Certificateholders.
Certificateholders of any series may communicate with other Certificateholders of such series with
respect to their rights under this Basic Agreement, the related Trust Supplement or the
Certificates of such series pursuant to Section 312(b) of the Trust Indenture Act. The Company,
the Trustee and any and all other persons benefited by this Agreement shall have the protection
afforded by Section 312(c) of the Trust Indenture Act.
Section 12.14. Intention of Parties. The parties to this Agreement intend that each
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. The powers granted and obligations undertaken
pursuant to this Agreement shall be construed so as to further such intent.
Section 12.15. No Recourse Against Others. No past, present or future director,
officer, employee, agent, member, manager, trustee or stockholder, as such, of the Company, the
Parent or any successor Person or any Affiliate of any thereof shall have any liability for any
obligations of the Company, the Parent or any successor Person or any Affiliate of any thereof,
either directly or through the Company, the Parent or any successor Person or any Affiliate of any
thereof, under the Certificates, this Agreement or any Guarantee or for any claim based on, in
respect of or by reason of such obligations or their creation, whether by virtue of any rule of
law, statute or constitutional provision or by the enforcement of any assessment or by any legal or
equitable proceeding or otherwise. By accepting a Certificate, each Certificateholder agrees to
the provisions of this Section 12.15 and waives and releases all such liability. Such waiver and
release shall be part of the consideration for the issue of the Certificates.
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IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed by their
respective officers thereunto duly authorized as of the day and year first written above.
US AIRWAYS, INC. |
||||
By: | /s/ Xxxxxx X. Xxxx | |||
Name: | Xxxxxx X. Xxxx | |||
Title: | Vice President and Treasurer | |||
WILMINGTON TRUST COMPANY, as Trustee |
||||
By: | /s/ Xxxxxx X. Xxxxx, Xx. | |||
Name: | Xxxxxx X. Xxxxx, Xx. | |||
Title: | Assistant Vice President | |||
Signature Page to Pass Through Trust Agreement