Exhibit 4(a)(4)
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XXXXXXXXX
[XX 0000 B]
Dated as of November 20, 1998
from
NORTHWEST AIRLINES CORPORATION
One Boeing 757-251 Aircraft
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TABLE OF CONTENTS TO GUARANTEE
Page
----
1. Guarantee ............................................................ 2
2. No Implied Third Party Beneficiaries ................................. 4
3. Waiver; No Set-off; Reinstatement; Subrogation ....................... 4
4. Amendments, Etc ...................................................... 4
5. Payments ............................................................. 4
6. Assignment of Guarantee .............................................. 5
7. Representations and Warranties ....................................... 5
8. Jurisdictional Matters ............................................... 6
9. Integration; Counterparts; Successors and Assigns; Headings .......... 6
10. Notices .............................................................. 6
11. No Waivers ........................................................... 6
12. Survival ............................................................. 7
13. Severability ......................................................... 7
14. GOVERNING LAW ........................................................ 7
15. Enforcement Expenses ................................................. 7
16. Termination .......................................................... 7
17. No Guarantee of Secured Certificates ................................. 7
GUARANTEE
[NW 1995 B]
This XXXXXXXXX [XX 0000 X], dated as of November 20, 1998 (as
amended, modified or supplemented from time to time, this "Guarantee"), from
NORTHWEST AIRLINES CORPORATION (formerly known as Newbridge Parent Corporation),
a Delaware corporation (together with its permitted successors and assigns, the
"Guarantor"), to the parties listed in Schedule I hereto (collectively, together
with their successors and permitted assigns, the "Parties", and, individually, a
"Party").
WHEREAS, Northwest Airlines, Inc., a Minnesota corporation (the
"Lessee"), an indirect wholly-owned subsidiary of the Guarantor, has entered
into a Lease Agreement [NW 1995 B], dated as of December 13, 1995 (as amended,
modified or supplemented from time to time, the "Lease"), between the Lessee and
First Security Bank of Utah, National Association, not in its individual
capacity but solely as Owner Trustee (as defined therein), except as expressly
provided therein (the "Lessor"), initially relating to one (1) Boeing 757-251
aircraft, together with two (2) Xxxxx & Xxxxxxx Model PW2037 engines (such
aircraft and engines, and any substitute Airframe and Engines under the Lease,
being collectively referred to herein as the "Aircraft"), pursuant to a
Participation Agreement [NW 1995 B], dated December 13, 1995 (as amended,
modified or supplemented from time to time, the "Participation Agreement"),
among the Lessee and the Parties; and
WHEREAS, it was a condition precedent to the obligations of the
Parties to consummate the transactions contemplated by the Participation
Agreement that Northwest Airlines Holding Corporation (formerly known as
Northwest Airlines Corporation), a Delaware corporation ("Old Northwest"),
execute and deliver this Guarantee; and
WHEREAS, the Lessor has assigned by way of collateral security
certain of its right, title and interest in and to this Guarantee to the
Indenture Trustee (as defined in the Lease), pursuant to a Trust Indenture and
Security Agreement [NW 1995 B], dated as of December 13, 1995, between the
Lessor and the Indenture Trustee (as amended, modified or supplemented from time
to time, the "Trust Indenture"), as security for the obligations of the Lessor
referred to therein; and
WHEREAS, as of the date of this Guarantee, Newbridge Merger
Corporation, a wholly-owned subsidiary of the Guarantor, will merge with and
into Old Northwest, with Old Northwest as surviving corporation, in accordance
with Section 251(g) of the General Corporation Law of the State of Delaware and
pursuant to the Agreement and Plan of Merger, dated as of January 25, 1998 (as
amended and restated as of October 30, 1998, the "Merger Agreement") among Old
Northwest, the Guarantor and Newbridge Merger Corporation, and thereafter Old
Northwest shall be a wholly-owned subsidiary of the Guarantor; and
WHEREAS, the capitalized terms used herein that are not defined
herein are used herein as defined in the Lease;
NOW, THEREFORE, in consideration of the foregoing and for other good
and valuable consideration, receipt of which is hereby acknowledged, the parties
hereto agree as follows:
1. Guarantee.
(a) The Guarantor does hereby acknowledge that it is fully aware of
the terms and conditions of the Lease, the Participation Agreement and the other
Operative Documents and the transactions and the other documents contemplated
thereby, and does hereby irrevocably and fully and unconditionally guarantee, as
primary obligor not as surety merely, to the Parties, as their respective
interests may appear, the payment by the Lessee of all payment obligations when
due under the Lease (including, without limitation, Basic Rent and Supplemental
Rent), the Participation Agreement, the Tax Indemnity Agreement and the other
Operative Documents to which the Lessee is a party (such obligations of the
Lessee guaranteed hereby being hereafter referred to, individually, as a
"Financial Obligation" and, collectively, as the "Financial Obligations") in
accordance with the terms of the Operative Documents, and the timely performance
of all other obligations of the Lessee thereunder (individually, a "Nonfinancial
Obligation" and, collectively, the "Nonfinancial Obligations" or, collectively
with the Financial Obligations, the "Obligations"). The Guarantor does hereby
agree that in the event that the Lessee fails to pay any Financial Obligation
when due for any reason (including, without limitation, the liquidation,
dissolution, receivership, insolvency, bankruptcy, assignment for the benefit of
creditors, reorganization, arrangement, composition or readjustment of, or other
similar proceedings affecting the status, existence, assets or obligations of,
the Lessee, or the disaffirmance with respect to the Lessee of the Lease or the
Operative Documents to which the Lessee is a party in any such proceeding)
within five days after the date on which such Financial Obligation became due
and payable and the applicable grace period has expired, the Guarantor shall pay
or cause to be paid forthwith, upon the receipt of notice from any Party (such
notice to be sent to the Lessee (to the extent such Party is not stayed or
prevented from doing so by operation of law) and the Guarantor) stating that
such Financial Obligation was not paid when due and for five days after the
applicable grace period has expired, the amount of such Financial Obligation,
together with all other Financial Obligations of the Lessee which are then due
and unpaid. The Guarantor hereby agrees that in the event the Lessee fails to
perform any Nonfinancial Obligation for any reason (including, without
limitation, the liquidation, dissolution, receivership, insolvency, bankruptcy,
assignment for the benefit of creditors, reorganization, arrangement,
composition or readjustment of, or other similar proceedings affecting the
status, existence, assets or obligations of, the Lessee, or the disaffirmance
with respect to the Lessee of the Lease or the Operative Documents to which the
Lessee is a party in any such proceeding) within 10 Business Days after the date
on which such Nonfinancial Obligation is required to be performed (for avoidance
of doubt, to include any applicable grace period), the Guarantor shall cause
such Nonfinancial Obligation to be performed within 10 Business Days following
the receipt of notice from any Party (such notice be sent to the Lessee (to the
extent such Party is not stayed or prevented from doing so by operation of law)
and the Guarantor) stating that such Nonfinancial Obligation was not performed
when so required and that any applicable grace period has expired.
(b) The obligations of the Guarantor hereunder shall not be, to the
fullest extent permitted by law, affected by: the genuineness, validity,
regularity or enforceability (or lack thereof) of any of the Lessee's
obligations under the Lease or any other Operative Document to which the Lessee
is a party, any amendment, waiver or other modification of the Lease or such
other Operative Document (except that any such amendment or other modification
in writing
2
shall be given effect in determining the obligations of the Guarantor
hereunder), or by any substitution, release or exchange of collateral for or
other guaranty of any of the Obligations (except to the extent that said
Obligations have been satisfied by such substitution, release or exchange in
accordance with the terms of the other Operative Documents) without the consent
of the Guarantor, or by any priority or preference to which any other
obligations of the Lessee may be entitled over the Lessee's obligations under
the Lease and the other Operative Documents to which the Lessee is a party, or
by any other circumstance that might otherwise constitute a legal or equitable
defense to or discharge of the obligations of a surety or guarantor including,
without limitation, any defense arising out of any laws of the United States of
America or any State thereof which would excuse, discharge, exempt, modify or
delay the due or punctual payment and performance of the obligations of the
Guarantor hereunder. Without limiting the generality of the foregoing, it is
agreed that the occurrence of any one or more of the following shall not, to the
fullest extent permitted by law, affect the liability of the Guarantor
hereunder: (a) the extension of the time for or waiver of, at any time or from
time to time, without notice to the Guarantor, the Lessee's performance of or
compliance with any of its obligations under the Operative Documents (except
that such extension or waiver in writing shall be given effect in determining
the obligations of the Guarantor hereunder), (b) any assignment, transfer,
sublease or other arrangement by which the Lessee transfers possession or loses
control of the use of the Aircraft, (c) any defect in the title, condition,
design, operation or fitness for use of, or damage to or loss or destruction of,
the Aircraft, whether or not due to the fault of the Lessee, (d) any merger or
consolidation of the Lessee or the Guarantor into or with any other Person, or
any sale, transfer, lease or disposal of any of its assets or (e) any change in
the ownership of any shares of capital stock of the Lessee.
(c) This Guarantee is an absolute, present and continuing guaranty
of payment and performance and not of collectability and is in no way
conditional or contingent upon any attempt to collect from the Lessee any unpaid
amounts due or otherwise to enforce performance by the Lessee. The Guarantor
specifically agrees, to the fullest extent permitted by law, that it shall not
be necessary or required, and that the Guarantor shall not be entitled to
require, that any Party (i) file suit or proceed to obtain or assert a claim for
personal judgment against the Lessee for the Obligations, or (ii) make any
effort at collection of the Obligations from the Lessee, or (iii) foreclose
against or seek to realize upon any security now or hereafter existing for the
Obligations, including the Trust Estate or the Trust Indenture Estate (as such
term is defined in the Trust Indenture), or (iv) file suit or proceed to obtain
or assert a claim for personal judgment against any other Person liable for the
Obligations, or make any effort at collection of the Obligations from any such
other Person, or exercise or assert any other right or remedy to which any Party
is or may be entitled in connection with the Obligations or any security or
other guaranty therefor, or (v) assert or file any claim against the assets of
the Lessee or any other guarantor or other Person liable for the Obligations, or
any part thereof, before or as a condition of enforcing the liability of the
Guarantor under this Guarantee or requiring payment of said Obligations by the
Guarantor hereunder, or at any time thereafter.
(d) The Guarantor agrees, to the fullest extent permitted by law,
that, without limiting the generality of this Guarantee, if an Event of Default
shall have occurred and be continuing and the Lessor (or any assignee thereof
including, without limitation, the Indenture Trustee) shall be prevented by
applicable law from exercising its remedies (or any of them) under
3
Section 15 of the Lease, the Lessor (or any assignee thereof, including, without
limitation, the Indenture Trustee) shall be, nevertheless, entitled to receive
hereunder from the Guarantor, upon demand therefor the sums that would otherwise
have been due from the Lessee under the Lease had such remedies been able to be
exercised. The Guarantor hereby unconditionally waives, to the fullest extent
permitted by law, any requirement that, as a condition precedent to the
enforcement of the obligations of the Guarantor hereunder, the Lessee or all or
any one or more of any other guarantors of any of the Obligations be joined as
parties to any proceedings for the enforcement of any provision of this
Guarantee.
2. No Implied Third Party Beneficiaries. This Guarantee shall not be
deemed to create any right in any Person except a Party and shall not be
construed in any respect to be a contract in whole or in part for the benefit of
any other Person. Following the termination of the Trust Indenture in accordance
with its terms, none of the Persons listed on Schedule I hereto under the
caption "Lender Parties" shall be, or be deemed to be, Parties for purposes of
this Guarantee.
3. Waiver; No Set-off; Reinstatement; Subrogation. The Guarantor
waives notice of the acceptance of this Guarantee and of the performance or
nonperformance by the Lessee, demand for payment from the Lessee or any other
Person, notice of nonpayment or failure to perform on the part of the Lessee,
diligence, presentment, protest, dishonor and, to the fullest extent permitted
by law, all other demands or notices whatsoever, other than the request for
payment hereunder and notice provided for in Section 1 hereof. The obligations
of the Guarantor shall be absolute and unconditional and shall remain in full
force and effect until satisfaction of all Obligations hereunder and, without
limiting the generality of the foregoing, to the extent not prohibited by
applicable law, shall not be released, discharged or otherwise affected by the
existence of any claims, set-off, defense or other rights that the Guarantor may
have at any time and from time to time against any Party, whether in connection
herewith or any unrelated transactions. This Guarantee shall continue to be
effective or be reinstated, as the case may be, if at any time any payment of
any Financial Obligation is rescinded or must otherwise be returned by any Party
upon the insolvency, bankruptcy, reorganization, arrangement, readjustment of
debt, dissolution, liquidation or similar proceeding with respect to the Lessee
or otherwise, all as though such payment had not been made. The Guarantor, by
virtue of any payment or performance hereunder to a Party, shall be subrogated
to such Party's claim against the Lessee or any other Person relating thereto;
provided, however, that the Guarantor shall not be entitled to receive payment
from the Lessee in respect of any claim against the Lessee arising from a
payment by the Guarantor while an Event of Default shall have occurred and be
continuing.
4. Amendments, Etc. No amendment of or supplement to this Guarantee,
or waiver or modification of, or consent under, the terms hereof, shall be
effective unless evidenced by an instrument in writing signed by the Guarantor
and each Party against whom such amendment, supplement, waiver, modification or
consent is to be enforced.
5. Payments. All payments by the Guarantor hereunder in respect of
any Obligation shall be made in Dollars and otherwise as provided in the Lease,
the Participation Agreement or any other Operative Document in which such
Obligation is contained; provided
4
that the Guarantor consents to all the terms of the Trust Indenture and agrees
to make all payments hereunder directly to the Indenture Trustee until such time
as the Indenture Trustee shall give notice to the Guarantor that the Lien of the
Trust Indenture has been fully discharged and thereafter to the Owner Trustee;
provided, further, that the Guarantor shall pay directly to the Lessor, in its
individual capacity, or to the Owner Participant or another Party, as the case
may be, any amount owing to such Person as Supplemental Rent for indemnities
provided in Section 7 of the Participation Agreement or the Tax Indemnity
Agreement or otherwise not constituting part of the Trust Indenture Estate (as
such term is defined in the Trust Indenture).
6. Assignment of Guarantee. As and to the extent provided in the
Trust Indenture, the Lessor will assign, and create a security interest in,
certain of its rights hereunder to and for the benefit of the Indenture Trustee.
From and after the execution and delivery of the Trust Indenture, and until
receipt by the Guarantor of a written notice from the Indenture Trustee to the
effect that the Trust Indenture has been fully satisfied and discharged, no
remedy or election hereunder may be exercised by the Lessor or consent given by
the Lessor other than in respect of Excluded Payments (as such term is defined
in the Trust Indenture), except by or with the prior written consent of the
Indenture Trustee, and the Guarantor will make payment of all amounts hereunder
that are assigned to the Indenture Trustee directly to the Indenture Trustee,
and such payments shall discharge the obligations of the Guarantor to the Lessor
to the extent of such payments.
7. Representations and Warranties. The Guarantor hereby represents
and warrants to the Parties as follows:
(a) It is a corporation duly organized and validly existing in good
standing pursuant to the laws of the State of Delaware. It has all
requisite corporate power and authority to own and operate its properties,
to carry on its business as presently conducted and to enter into and
perform its obligations under this Guarantee.
(b) No order, license, consent, authorization or approval of, or
exemption by, or the giving of notice to, or the registration with or the
taking of any other action in respect of, any Federal, state, municipal or
other governmental department, bureau, agency or instrumentality, and no
filing, recording, publication or registration in any public office or any
other place, is now, or under existing law in the future will be, required
or necessary on its behalf to authorize the execution, delivery and
performance (other than as contemplated by the Operative Documents in the
case of the performance of the Non-Financial Obligations) by it of this
Guarantee, or for the legality, validity, binding effect or enforceability
hereof.
(c) Neither the execution and delivery of this Guarantee, the
performance of its obligations hereunder, nor its consummation of the
transactions contemplated hereby, will conflict with or result in any
breach of, or constitute a default under, or result in any creation or
imposition of any Lien upon any of its property or assets under, any
applicable laws or any indenture, mortgage, deed of trust or other
instrument or agreement to which it is a party or by which it may be bound
or to which any of its property or assets may be subject, or its Articles
of Incorporation or by-laws.
5
(d) The execution, delivery and performance by it of this Guarantee
have been duly authorized by all necessary corporate action. This
Guarantee has been duly executed and delivered by it and constitutes its
legal, valid and binding obligation enforceable in accordance with its
terms except as enforceability thereof may be limited by applicable
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium
or similar laws affecting the enforcement of creditors' rights generally
and by general equitable principles (whether enforcement is sought by
proceedings in equity or at law).
8. Jurisdictional Matters. The Guarantor (a) hereby irrevocably
submits itself to the non-exclusive jurisdiction of the United States District
Court for the Southern District of New York and to the nonexclusive jurisdiction
of the Supreme Court of the State of New York, New York County, for the purposes
of any suit, action or other proceeding arising out of this Guarantee brought by
any party, and (b) hereby waives, and agrees not to assert, by way of motion, as
a defense, or otherwise, in any such suit, action or proceeding, to the extent
permitted by applicable law, that the suit, action or proceeding is brought in
an inconvenient forum, that the venue of the suit, action or proceeding is
improper, or that this Guarantee may not be enforced in or by such courts. The
Guarantor hereby generally consents to service of process at Cadwalader,
Xxxxxxxxxx & Xxxx, 000 Xxxxxx Xxxx, Xxx Xxxx, Xxx Xxxx 00000, Attention:
Managing Attorney, or such office of the Guarantor in New York City as from time
to time may be designated by the Guarantor in writing to the Parties.
9. Integration; Counterparts; Successors and Assigns; Headings. This
Guarantee (a) constitutes the entire agreement, and supersedes all prior
agreements and understandings, both written and oral, among the Guarantor and
the Parties, with respect to the subject matter hereof, (b) may be executed in
several counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument, and (c) shall be
binding upon the successors and assigns of the Guarantor shall inure to the
benefit of, and shall be enforceable by, each of the Parties to the fullest
extent permitted by applicable laws. The headings in this Guarantee are for
purposes of reference only, and shall not limit or otherwise affect the meanings
hereof.
10. Notices. All requests, notices or other communications hereunder
shall be in writing, addressed as follows:
If to the Guarantor:
Northwest Airlines Corporation
for U.S. Mail: 0000 Xxxxxxxxx Xxxxx (A4010)
Xx. Xxxx, Xxxxxxxxx 00000-0000
6
for overnight courier:
0000 Xxxx Xxx Xxxxxxx (A4010)
Xxxxx, Xxxxxxxxx 00000
Attention: Senior Vice President--Finance
and Treasurer
Telecopy No.: (000) 000-0000
If to a Party:
to the address or telecopy number set forth in or
pursuant to the Participation Agreement.
All requests, notices or other communications shall be given in the manner, and
shall be effective at the times and under the terms, set forth in Section 13(b)
of the Participation Agreement.
11. No Waivers. No failure on the part of any Party to exercise, no
delay in exercising, and no course of dealing with respect to, any right or
remedy hereunder will operate as a waiver thereof; nor will any single or
partial exercise of any right or remedy hereunder preclude any other or further
exercise of such right or remedy or the exercise of any other right or remedy.
12. Survival. All representations and warranties contained herein or
made in writing by the Guarantor in connection herewith shall survive the
execution and delivery of this Guarantee regardless of any investigation made by
any Party or any other Person.
13. Severability. To the fullest extent permitted by applicable law,
any provision of this Guarantee that is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof or any provision in any other Operative Document, and any such
prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.
14. GOVERNING LAW. THIS GUARANTY IS DELIVERED IN, AND SHALL (AND THE
RIGHTS AND DUTIES OF THE GUARANTOR AND THE PARTIES SHALL) IN ALL RESPECTS BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE.
15. Enforcement Expenses. The Guarantor agrees to pay to any Party
any and all reasonable costs and expenses (including reasonable legal fees and
expenses) incurred by such Party in enforcing, or collecting under, this
Guarantee.
16. Termination. Subject to the provisions of Section 3 hereof, this
Guarantee shall terminate upon the indefeasible payment and performance in full
of all of the Obligations.
7
17. No Guarantee of Secured Certificates. This Guarantee relates
only to the Obligations described in Section 1 and nothing in this Guarantee
shall be deemed to constitute a guarantee of payment of any of the Secured
Certificates or shall give rise to any inference that the Lessee or the
Guarantor has so guaranteed such payment.
8
IN WITNESS WHEREOF, the parties hereto have caused this Guarantee to
be duly executed as of the date first hereinabove set forth.
NORTHWEST AIRLINES CORPORATION
By: /s/ Xxxxxxx X. Xxxxxxxxx
------------------------------------
Name: Xxxxxxx X. Xxxxxxxxx
Title: Executive Vice President,
General Counsel and Secretary
SCHEDULE I
TO GUARANTEE
[NW1995 B]
PARTIES
Equity Parties
First Security Bank of Utah, National Association,
in its individual capacity and as Owner Trustee
USL Capital Corporation
Lender Parties
State Street Bank and Trust Company, as Indenture Trustee
ABN AMRO Bank N. V.
Bankers Trust Company
Rabobank Nederland (Cooperatieve Centrale Raiffeisen-Boerenleenbank B. A.)
The Chase Manhattan Bank (National Association)
Landesbank Hessen-Thuringen Girozentrale
Chemical Bank
The Bank of Tokyo Trust Company
The Bank of Nova Scotia
Banque Francaise du Commerce Exterieur
Banque Nationale de Paris
Banque Paribas
Compagnie Financiare de CIC et de I'Union Europeene
Credit Suisse
De Nationale Investeringsbank N. V.
Hamburgische Landesbank-Girozentrale
Internationale Nederlanden Lease Ireland B. V., Dublin
KB Financial Services (Ireland)
The Nippon Credit Bank, Ltd., Los Angeles Agency
Norddeutsche Landesbank Girozentrale
PNC Bank, National Association
Royal Bank of Canada
Westland/Utrecht Hypotheekbank N. V.
The Yasuda Trust and Banking Company, Ltd.
Berliner Bank AG, London Branch
