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NOTE PURCHASE AGREEMENT
Dated as of November 28, 2000
Among
CONTINENTAL AIRLINES, INC.,
WILMINGTON TRUST COMPANY,
as Pass Through Trustee under each of the
Pass Through Trust Agreements
WILMINGTON TRUST COMPANY,
as Subordination Agent
FIRST SECURITY BANK, NATIONAL ASSOCIATION,
as Escrow Agent
and
WILMINGTON TRUST COMPANY,
as Paying Agent
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INDEX TO NOTE PURCHASE AGREEMENT
Page
SECTION 1. Financing of New Aircraft........................................3
SECTION 2. Conditions Precedent.............................................8
SECTION 3. Representations and Warranties...................................9
SECTION 4. Covenants.......................................................14
SECTION 5. Notices.........................................................15
SECTION 6. Expenses........................................................15
SECTION 7. Further Assurances..............................................16
SECTION 8. Miscellaneous...................................................17
SECTION 9. Governing Law...................................................18
SCHEDULES
Schedule I New Aircraft and Scheduled Delivery Months
Schedule II Trust Supplements
Schedule III Deposit Agreements
Schedule IV Escrow and Paying Agent Agreements
Schedule V Mandatory Document Terms
Schedule VI Mandatory Economic Terms
Schedule VII Aggregate Amortization Schedule
ANNEX
Annex A Definitions
EXHIBITS
Exhibit A-1 Form of Leased Aircraft Participation Agreement
Exhibit A-2 Form of Lease
Exhibit A-3 Form of Leased Aircraft Indenture
Exhibit A-4 Form of Aircraft Purchase Agreement Assignment
Exhibit A-5 Form of Leased Aircraft Trust Agreement
Exhibit A-6 Form of Special Indenture
Exhibit B Form of Delivery Notice
Exhibit C-1 Form of Owned Aircraft Participation Agreement
Exhibit C-2 Form of Owned Aircraft Indenture
Exhibit D Form of Special Addition to Participation Agreement
Exhibit E Special Revisions to Section 6.2 of the Participation
Agreement
Exhibit F Additional Subordination Provision for Series D Equipment
Notes
NOTE PURCHASE AGREEMENT
This NOTE PURCHASE AGREEMENT, dated as of November 28, 2000,
among (i)CONTINENTAL AIRLINES, INC., a Delaware corporation (the "Company"),
(ii)WILMINGTON TRUST COMPANY ("WTC"), a Delaware banking corporation, not in
its individual capacity except as otherwise expressly provided herein, but
solely as trustee (in such capacity together with its successors in such
capacity, the "Pass Through Trustee") under each of the four separate Pass
Through Trust Agreements (as defined below), (iii) WILMINGTON TRUST COMPANY,
a Delaware banking corporation, as subordination agent and trustee (in such
capacity together with its successors in such capacity, the "Subordination
Agent") under the Intercreditor Agreement (as defined below), (iv)FIRST
SECURITY BANK, NATIONAL ASSOCIATION, a national banking association, as
Escrow Agent (in such capacity together with its successors in such capacity,
the "Escrow Agent"), under each of the Escrow and Paying Agent Agreements (as
defined below) and (v) WILMINGTON TRUST COMPANY, a Delaware banking
corporation, as Paying Agent (in such capacity together with its successors
in such capacity, the "Paying Agent") under each of the Escrow and Paying
Agent Agreements.
W I T N E S S E T H:
WHEREAS, capitalized terms used but not defined herein shall have
the meanings ascribed to such terms in Annex A hereto;
WHEREAS, the Company has obtained commitments from the
Manufacturer pursuant to the Aircraft Purchase Agreements for the delivery of
the 32 aircraft listed in Schedule I hereto (together with any aircraft
substituted therefor in accordance with an Aircraft Purchase Agreement prior
to the delivery thereof, the "ELIGIBLE AIRCRAFT"), and the Company wishes to
finance pursuant to this Agreement a portion of the purchase price of ten of
the fourteen Boeing 737-824 aircraft, seven of the ten Boeing 737-924
Aircraft, four of the six Boeing 767-224 aircraft and two Boeing 767-424
aircraft included in the Eligible Aircraft (such aircraft to be financed
hereunder, the "NEW AIRCRAFT");
WHEREAS, pursuant to the Basic Pass Through Trust Agreement and
each of the Trust Supplements set forth in Schedule II hereto, and
concurrently with the execution and delivery of this Agreement, separate
grantor trusts (collectively, the "PASS THROUGH TRUSTS" and, individually, a
"PASS THROUGH TRUST") have been created to facilitate certain of the
transactions contemplated hereby, including, without limitation, the issuance
and sale of pass through certificates pursuant thereto (collectively, the
"CERTIFICATES") to provide for a portion of the financing of the New Aircraft;
WHEREAS, the Company has entered into the Underwriting Agreement
dated as of November 14, 2000 (the "UNDERWRITING AGREEMENT") with the several
underwriters (the "UNDERWRITERS") named therein, which provides that the
Company will cause each Pass Through Trustee to issue and sell the
Certificates to the Underwriters;
WHEREAS, concurrently with the execution and delivery of this
Agreement, (i) the Escrow Agents and the Depositary entered into the Deposit
Agreements set forth in Schedule III hereto (the "DEPOSIT AGREEMENTS")
whereby the applicable Escrow Agent agreed to direct the Underwriters to make
certain deposits referred to therein on the Issuance Date (the "INITIAL
DEPOSITS") and to permit the applicable Pass Through Trustee to make
additional deposits from time to time thereafter (the Initial Deposits
together with such additional deposits are collectively referred to as the
"DEPOSITS") and (ii) the Pass Through Trustees, the Underwriters, the Paying
Agents and the Escrow Agents entered into the Escrow and Paying Agent
Agreements set forth in Schedule IV hereto (the "ESCROW AND PAYING AGENT
AGREEMENTS") whereby, among other things, (a) the Underwriters agreed to
deliver an amount equal to the amount of the Initial Deposits to the
Depositary on behalf of the applicable Escrow Agent and (b) the applicable
Escrow Agent, upon the Depositary receiving such amount, has agreed to
deliver escrow receipts to be affixed to each Certificate;
WHEREAS, prior to the financing of each New Aircraft, the Company
will determine whether to enter into a leveraged lease transaction as lessee
with respect to such New Aircraft (a "LEASED AIRCRAFT") or to purchase as
owner such New Aircraft (an "OWNED AIRCRAFT") and which series of Equipment
Notes will be issued with respect to such New Aircraft, and the Company will
give to the Pass Through Trustee a Delivery Notice (as defined below)
specifying its election;
WHEREAS, upon receipt of a Delivery Notice with respect to a New
Aircraft, subject to the terms and conditions of this Agreement, the
applicable Pass Through Trustees will enter into the applicable Financing
Agreements relating to such New Aircraft;
WHEREAS, upon the financing of each New Aircraft, each applicable
Pass Through Trustee will fund its purchase of Equipment Notes with the
proceeds of one or more Deposits withdrawn by the applicable Escrow Agent
under the related Deposit Agreement bearing the same interest rate as the
Certificates issued by such Pass Through Trust (or, if financed on the
Issuance Date, with a portion of the proceeds from the offering of the
Certificates); and
WHEREAS, concurrently with the execution and delivery of this
Agreement, (i) Landesbank Hessen-Thuringen Girozentrale (the "LIQUIDITY
PROVIDER"), has entered into four separate revolving credit agreements, one
each for the benefit of the Certificateholders of each Pass Through Trust, in
each case with the Subordination Agent, as agent for the Pass Through Trustee
on behalf of each such Pass Through Trust (each such revolving credit
agreement with the Liquidity Provider, a "LIQUIDITY FACILITY") and (ii) the
Pass Through Trustee, the Liquidity Provider and the Subordination Agent have
entered into the Intercreditor Agreement, dated as of the date hereof (the
"INTERCREDITOR AGREEMENT");
NOW, THEREFORE, in consideration of the foregoing premises and
the mutual agreements herein contained and other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, the
parties hereto agree as follows:
SECTION 1. FINANCING OF NEW AIRCRAFT. (a) The Company confirms
that it has entered into the Aircraft Purchase Agreements with the
Manufacturer pursuant to which the Company has agreed to purchase, and the
Manufacturer has agreed to deliver, the Eligible Aircraft in the months
specified in Schedule I hereto, all on and subject to terms and conditions
specified in the applicable Aircraft Purchase Agreement. The Company agrees
to finance the New Aircraft in the manner provided herein, all on and subject
to the terms and conditions hereof and of the relevant Financing Agreements.
(b) In furtherance of the foregoing, the Company agrees to give
the parties hereto, the Depositary and each of the Rating Agencies not less
than two Business Days' prior notice substantially in the form of Exhibit B
hereto (a "DELIVERY NOTICE") of the scheduled delivery date (the "SCHEDULED
DELIVERY DATE") (or, in the case of a substitute Delivery Notice under
Section 1(e) or (f) hereof, one Business Day's prior notice) in respect of
each New Aircraft under the applicable Aircraft Purchase Agreement, which
notice shall:
(i) specify whether the Company has elected to treat such New
Aircraft as a Leased Aircraft or an Owned Aircraft;
(ii) specify the Scheduled Delivery Date of such New Aircraft
(which shall be a Business Day before the Cut-off Date and, except as
provided in Section 1(f) hereof, the date (the "FUNDING DATE") on which the
financing therefor in the manner provided herein shall be consummated);
(iii) instruct each Pass Through Trustee being requested to
purchase Equipment Notes pursuant to such Delivery Notice (the "APPLICABLE
PASS THROUGH TRUSTEES") to instruct the relevant Escrow Agent to provide a
Notice of Purchase Withdrawal to the Depositary with respect to the Equipment
Notes to be issued in connection with the financing of such New Aircraft
(except in the case of any such financing on the Issuance Date);
(iv) instruct each Applicable Pass Through Trustee to enter into
the Participation Agreement included in the Financing Agreements with respect
to such Aircraft in such form and at such a time on or before the Funding
Date specified in such Delivery Notice and to perform its obligations
thereunder;
(v) specify the aggregate principal amount of each series of
Equipment Notes, if any, to be issued, and purchased by the Applicable Pass
Through Trustees, in connection with the financing of such New Aircraft
scheduled to be delivered on such Funding Date (which shall in all respects
comply with the Mandatory Economic Terms); and
(vi) if such New Aircraft is to be a Leased Aircraft, certify
that the related Owner Participant (A) is not an Affiliate of the Company and
(B) based on the representations of such Owner Participant, is either (1) a
Qualified Owner Participant or (2) any other person the obligations of which
under the Owner Participant Agreements (as defined in the applicable
Participation Agreement) are guaranteed by a Qualified Owner Participant.
Notwithstanding the foregoing, in the event the Issuance Date coincides with
the Scheduled Delivery Date of any Aircraft to be financed pursuant to the
terms hereof, the Delivery Notice therefor may be delivered to the parties
hereto on such Scheduled Delivery Date.
(c) Upon receipt of a Delivery Notice, the Applicable Pass
Through Trustees shall, and shall cause the Subordination Agent to, enter
into and perform their obligations under the Participation Agreement
specified in such Delivery Notice, PROVIDED that such Participation Agreement
and the other Lease Financing Agreements or Owner Financing Agreements to be
entered into pursuant to such Participation Agreement shall be in the forms
thereof annexed hereto in all material respects with such changes therein as
shall have been requested by the related Owner Participant (in the case of
Lease Financing Agreements) or by the initial purchasers of the Series D
Equipment Notes or Class D Pass Through Certificates, agreed to by the
Company and, if modified in any material respect, as to which Rating Agency
Confirmation shall have been obtained from each Rating Agency by the Company
(to be delivered by the Company to the Applicable Pass Through Trustees on or
before the relevant Funding Date, it being understood that if Rating Agency
Confirmation shall have been received with respect to any Financing
Agreements and such Financing Agreements are utilized for subsequent New
Aircraft (or Substitute Aircraft) without material modifications, no
additional Rating Agency Confirmation shall be required); PROVIDED, HOWEVER,
that the relevant Financing Agreements as executed and delivered shall not
vary the Mandatory Economic Terms and shall contain the Mandatory Document
Terms. Notwithstanding the foregoing, (i) if The Boeing Company or General
Electric Company, or any of their respective Affiliates, is the Owner
Participant with respect to any Leased Aircraft, the Leased Aircraft
Participation Agreement to be entered into pursuant to the Delivery Notice
with respect to such Leased Aircraft may be modified, if agreed to by the
Company, from the form annexed hereto (A) to add a Section 16 thereto
substantially in the form of Exhibit D hereto and (B) in the case of The
Boeing Company or any of its Affiliates, Section 6.2 may be changed as set
forth in Exhibit E hereto, and such Leased Aircraft Participation Agreement,
as so modified, shall be deemed (1) to be substantially in the form thereof
annexed hereto and (2) by virtue of such modification not to be inconsistent
with the Mandatory Document Terms, (ii) if any Financing Agreement annexed
hereto shall not have been reviewed by either Rating Agency prior to the
Issuance Date, then, prior to the use thereof in connection with the
financing of any Aircraft hereunder, the Company shall obtain from each
Rating Agency a confirmation that the use of such Financing Agreement would
not result in (A) a reduction of the rating for any Class of Certificates
below the then current rating for such Class of Certificates or (B) a
withdrawal or suspension of the rating of any Class of Certificates, and
(iii) an Indenture may be modified to the extent required pursuant to Section
4(a)(vi) of this Agreement. The Company shall pay the reasonable costs and
expenses of the Rating Agencies in connection with obtaining any such Rating
Agency Confirmation. With respect to each New Aircraft, the Company shall
cause WTC (or such other person that meets the eligibility requirements to
act as loan trustee under the Leased Aircraft Indenture, Owned Aircraft
Indenture or Special Indenture) to execute as Loan Trustee the Financing
Agreements relating to such Aircraft to which such Loan Trustee is intended
to be a party, and shall concurrently therewith execute such Financing
Agreements to which the Company is intended to be a party and perform its
respective obligations thereunder. Upon the request of either Rating Agency,
the Company shall deliver or cause to be delivered to each Rating Agency a
true and complete copy of each Financing Agreement relating to the financing
of each New Aircraft together with a true and complete set of the closing
documentation (including legal opinions) delivered to the related Loan
Trustee, Subordination Agent and Pass Through Trustee under the related
Participation Agreement.
(d) [Intentionally omitted.]
(e) If after giving any Delivery Notice, there shall be a delay
in the delivery of the Eligible Aircraft referred to therein, or if on the
Scheduled Delivery Date of the Eligible Aircraft the financing thereof in the
manner contemplated hereby shall not be consummated for whatever reason, the
Company shall give the parties hereto prompt notice thereof. Concurrently
with the giving of such notice of postponement or subsequently, the Company
shall give the parties hereto a substitute Delivery Notice specifying the
date to which delivery and related financing of such Eligible Aircraft or of
another Eligible Aircraft of the same type in lieu thereof shall have been
re-scheduled (which shall be a Business Day before the Cut-off Date on which
the Escrow Agents shall be entitled to withdraw one or more Deposits under
each of the applicable Deposit Agreements to enable each Applicable Pass
Through Trustee to fund its purchase of the related Equipment Notes). Upon
receipt of any such notice of postponement, each Applicable Pass Through
Trustee shall comply with its obligations under Section 5.01 of each of the
Trust Supplements and thereafter the financing of such Eligible Aircraft, as
specified in such substitute Delivery Notice, shall take place on the
re-scheduled Delivery Date therefor (all on and subject to the terms and
conditions of the relevant Financing Agreements or other financing agreements
in the case of a Special Structure) unless further postponed as provided
herein.
(f) Anything in this Section 1 to the contrary notwithstanding,
the Company shall have the right at any time on or before the Scheduled
Delivery Date of any New Aircraft, and subsequent to its giving a Delivery
Notice therefor, to postpone the Scheduled Delivery Date of such New Aircraft
so as to enable the Company to change its election to treat such New Aircraft
as a Leased Aircraft or an Owned Aircraft by written notice of such
postponement to the other parties hereto. The Company shall subsequently
give the parties hereto a substitute Delivery Notice complying with the
provisions of Section 1(b) hereof and specifying the new Funding Date for
such postponed New Aircraft (which shall be a Business Day occurring before
the Cut-off Date and on which the Escrow Agents shall be entitled to withdraw
Deposits under each of the applicable Deposit Agreements sufficient to enable
each Applicable Pass Through Trustee to fund its purchase of the related
Equipment Notes). In addition, the Company shall have the further right,
anything in this Section 1 to the contrary notwithstanding, to accept
delivery of a New Aircraft under the applicable Aircraft Purchase Agreement
on the Delivery Date thereof by utilization of bridge financing of such New
Aircraft and promptly thereafter give the parties hereto a Delivery Notice
specifying a Funding Date not later than 30 days after the Delivery Date of
such New Aircraft and no later than the Cut-off Date and otherwise complying
with the provisions of Section 1(b) hereof. All other terms and conditions
of this Note Purchase Agreement shall apply to the financing of any such New
Aircraft on the re-scheduled Funding Date therefor except (i) the
re-scheduled Funding Date shall be deemed the Delivery Date of such New
Aircraft for all purposes of this Section 1 and (ii) the related Financing
Agreements shall be amended to reflect the original delivery of such New
Aircraft to the Company.
(g) If the Scheduled Delivery Date for any Eligible Aircraft is
delayed (a) more than 30 days beyond the last day of the month set forth
opposite such Eligible Aircraft under the heading "Scheduled Delivery Months"
in Schedule I hereto or (b) beyond February 1, 2002, the Company may identify
for delivery a substitute aircraft therefor meeting the following conditions
(a "SUBSTITUTE AIRCRAFT"): (i) a Substitute Aircraft must be a Boeing
737-800, 737-900, 767-200 or 767-400 aircraft manufactured after the date of
this Agreement, (ii) one or more Substitute Aircraft of the same or different
types may be substituted for one or more Eligible Aircraft of the same or
different types so long as after giving effect thereto such substitution does
not vary the Mandatory Economic Terms and (iii) the Company shall be
obligated to obtain Rating Agency Confirmation in respect of the replacement
of any Eligible Aircraft by Substitute Aircraft. Upon the satisfaction of
the conditions set forth above with respect to a Substitute Aircraft, the
Eligible Aircraft to be replaced shall cease to be subject to this Agreement
and all rights and obligations of the parties hereto concerning such Eligible
Aircraft shall cease, and such Substitute Aircraft shall become and
thereafter be subject to the terms and conditions of this Agreement to the
same extent as such Eligible Aircraft.
(h) The Company shall have no liability for the failure of the
Pass Through Trustees to purchase Equipment Notes with respect to any New
Aircraft or Substitute Aircraft.
(i) The parties agree that if, in connection with the delivery
of a New Aircraft or Substitute Aircraft, any Owner Participant who is to be
a party to any Lease Financing Agreement shall not be a "Citizen of the
United States" within the meaning of Section 40102(a)(15) of the Act, then
the applicable Lease Financing Agreements shall be modified, consistent with
the Mandatory Document Terms, to require such Owner Participant to enter into
a voting trust, voting powers or similar arrangement satisfactory to the
Company that (A) enables such New Aircraft or Substitute Aircraft to be
registered in the United States and (B) complies with the FAA regulations
issued under the Act applicable thereto.
(j) Anything herein to the contrary notwithstanding, the
Company shall not have the right, and shall not be entitled, at any time to
request the issuance of Equipment Notes of any series to any Pass Through
Trustee in an aggregate principal amount in excess of the amount of the
Deposits then available for withdrawal by the Escrow Agent under and in
accordance with the provisions of the related Deposit Agreement.
SECTION 2. CONDITIONS PRECEDENT. The obligation of the Pass
Through Trustees to enter into, and to cause the Subordination Agent to enter
into, any Participation Agreement as directed pursuant to a Delivery Notice
and to perform its obligations thereunder is subject to satisfaction of the
following conditions:
(a) no Triggering Event shall have occurred;
(b) the Company shall have delivered a certificate to each such
Pass Through Trustee and the Liquidity Provider stating that (i) such
Participation Agreement and the other Financing Agreements to be entered into
pursuant to such Participation Agreement do not vary the Mandatory Economic
Terms and contain the Mandatory Document Terms, and (ii) any substantive
modification of such Financing Agreements from the forms of Financing
Agreements attached to this Agreement do not materially and adversely affect
the Certificateholders, and such certification shall be true and correct.
Anything herein to the contrary notwithstanding, the obligation
of each Pass Through Trustee to purchase Equipment Notes shall terminate on
the Cut-off Date.
SECTION 3. REPRESENTATIONS AND WARRANTIES. (a) The Company
represents and warrants that:
(i) the Company is duly incorporated, validly existing and
in good standing under the laws of the State of Delaware and is a
"citizen of the United States" as defined in Section 40102(a)(15)
of the Act, and has the full corporate power, authority and legal
right under the laws of the State of Delaware to execute and
deliver this Agreement and each Financing Agreement to which it
will be a party and to carry out the obligations of the Company
under this Agreement and each Financing Agreement to which it
will be a party;
(ii) the execution and delivery by the Company of this
Agreement and the performance by the Company of its obligations
under this Agreement have been duly authorized by the Company and
will not violate its Certificate of Incorporation or by-laws or
the provisions of any indenture, mortgage, contract or other
agreement to which it is a party or by which it is bound; and
(iii) this Agreement constitutes the legal, valid and
binding obligation of the Company, enforceable against it in
accordance with its terms, except as the same may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or
similar laws affecting the rights of creditors generally and by
general principles of equity, whether considered in a proceeding
at law or in equity.
(b) WTC represents and warrants that:
(i) WTC is duly incorporated, validly existing and in good
standing under the laws of the State of Delaware and is a
"citizen of the United States" as defined in Section 40102(a)(15)
of the Act, and has the full corporate power, authority and legal
right under the laws of the State of Delaware and the United
States pertaining to its banking, trust and fiduciary powers to
execute and deliver this Agreement and each Financing Agreement
to which it will be a party and to carry out the obligations of
WTC, in its capacity as Subordination Agent, Pass Through Trustee
or Paying Agent, as the case may be, under this Agreement and
each Financing Agreement to which it will be a party;
(ii) the execution and delivery by WTC, in its capacity as
Subordination Agent, Pass Through Trustee or Paying Agent, as the
case may be, of this Agreement and the performance by WTC, in its
capacity as Subordination Agent, Pass Through Trustee or Paying
Agent, as the case may be, of its obligations under this
Agreement have been duly authorized by WTC, in its capacity as
Subordination Agent, Pass Through Trustee or Paying Agent, as the
case may be, and will not violate its articles of association or
by-laws or the provisions of any indenture, mortgage, contract or
other agreement to which it is a party or by which it is bound;
and
(iii) this Agreement constitutes the legal, valid and
binding obligations of WTC, in its capacity as Subordination
Agent, Pass Through Trustee or Paying Agent, as the case may be,
enforceable against it in accordance with its terms, except as
the same may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the rights
of creditors generally and by general principles of equity,
whether considered in a proceeding at law or in equity.
(c) The Pass Through Trustee hereby confirms to each of the
other parties hereto that its representations and warranties set forth in
Section 7.15 of the Basic Pass Through Trust Agreement and Section 5.04 of
each Trust Supplement are true and correct as of the date hereof.
(d) The Subordination Agent represents and warrants that:
(i) the Subordination Agent is duly incorporated, validly
existing and in good standing under the laws of the State of
Delaware, and has the full corporate power, authority and legal
right under the laws of the State of Delaware and the United
States pertaining to its banking, trust and fiduciary powers to
execute and deliver this Agreement and each Financing Agreement
to which it is or will be a party and to perform its obligations
under this Agreement and each Financing Agreement to which it is
or will be a party;
(ii) this Agreement has been duly authorized, executed and
delivered by the Subordination Agent; this Agreement constitutes
the legal, valid and binding obligations of the Subordination
Agent enforceable against it in accordance with its terms, except
as the same may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the rights
of creditors generally and by general principles of equity,
whether considered in a proceeding at law or in equity;
(iii) none of the execution, delivery and performance by
the Subordination Agent of this Agreement contravenes any law,
rule or regulation of the State of Delaware or any United States
governmental authority or agency regulating the Subordination
Agent's banking, trust or fiduciary powers or any judgment or
order applicable to or binding on the Subordination Agent and do
not contravene the Subordination Agent's articles of association
or by-laws or result in any breach of, or constitute a default
under, any agreement or instrument to which the Subordination
Agent is a party or by which it or any of its properties may be
bound;
(iv) neither the execution and delivery by the
Subordination Agent of this Agreement nor the consummation by the
Subordination Agent of any of the transactions contemplated
hereby requires the consent or approval of, the giving of notice
to, the registration with, or the taking of any other action with
respect to, any Delaware governmental authority or agency or any
federal governmental authority or agency regulating the
Subordination Agent's banking, trust or fiduciary powers;
(v) there are no Taxes payable by the Subordination Agent
imposed by the State of Delaware or any political subdivision or
taxing authority thereof in connection with the execution,
delivery and performance by the Subordination Agent of this
Agreement (other than franchise or other taxes based on or
measured by any fees or compensation received by the
Subordination Agent for services rendered in connection with the
transactions contemplated by the Intercreditor Agreement or any
of the Liquidity Facilities), and there are no Taxes payable by
the Subordination Agent imposed by the State of Delaware or any
political subdivision thereof in connection with the acquisition,
possession or ownership by the Subordination Agent of any of the
Equipment Notes (other than franchise or other taxes based on or
measured by any fees or compensation received by the
Subordination Agent for services rendered in connection with the
transactions contemplated by the Intercreditor Agreement or any
of the Liquidity Facilities); and
(vi) there are no pending or threatened actions or
proceedings against the Subordination Agent before any court or
administrative agency which individually or in the aggregate, if
determined adversely to it, would materially adversely affect the
ability of the Subordination Agent to perform its obligations
under this Agreement.
(e) The Escrow Agent represents and warrants that:
(i) the Escrow Agent is a national banking association
duly incorporated, validly existing and in good standing under
the laws of the United States and has the full corporate power,
authority and legal right under the laws of the United States
pertaining to its banking, trust and fiduciary powers to execute
and deliver this Agreement, each Deposit Agreement and each
Escrow and Paying Agent Agreement (collectively, the "ESCROW
AGENT AGREEMENTS") and to carry out the obligations of the Escrow
Agent under each of the Escrow Agent Agreements;
(ii) the execution and delivery by the Escrow Agent of
each of the Escrow Agent Agreements and the performance by the
Escrow Agent of its obligations hereunder and thereunder have
been duly authorized by the Escrow Agent and will not violate its
articles of association or by-laws or the provisions of any
indenture, mortgage, contract or other agreement to which it is a
party or by which it is bound; and
(iii) each of the Escrow Agent Agreements constitutes the
legal, valid and binding obligations of the Escrow Agent
enforceable against it in accordance with its terms, except as
the same may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the rights
of creditors generally and by general principles of equity,
whether considered in a proceeding at law or in equity.
(f) The Paying Agent represents and warrants that:
(i) the Paying Agent is duly incorporated, validly
existing and in good standing under the laws of the State of
Delaware and has the full corporate power, authority and legal
right under the laws of the United States pertaining to its
banking, trust and fiduciary powers to execute and deliver this
Agreement and the Escrow and Paying Agent Agreement
(collectively, the "PAYING AGENT AGREEMENTS") and to carry out
the obligations of the Paying Agent under each of the Paying
Agent Agreements;
(ii) the execution and delivery by the Paying Agent of
each of the Paying Agent Agreements and the performance by the
Paying Agent of its obligations hereunder and thereunder have
been duly authorized by the Paying Agent and will not violate its
articles of association or by-laws or the provisions of any
indenture, mortgage, contract or other agreement to which it is a
party or by which it is bound; and
(iii) each of the Paying Agent Agreements constitutes the
legal, valid and binding obligations of the Paying Agent
enforceable against it in accordance with its terms, except as
the same may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the rights
of creditors generally and by general principles of equity,
whether considered in a proceeding at law or in equity.
SECTION 4. COVENANTS. (a) The Company covenants with each of
the other parties hereto that:
(i) [Intentionally omitted];
(ii) subject to Section 4(a)(iv) of this Agreement, the Company
shall at all times maintain its corporate existence and shall not wind up,
liquidate or dissolve or take any action, or fail to take any action, that
would have the effect of any of the foregoing;
(iii) the Company shall at all times remain a U.S. Air Carrier
(as defined in the Financing Agreements) and shall at all times be otherwise
certificated and registered to the extent necessary to entitle (i) in the
case of Leased Aircraft, the Owner Trustee (and the Loan Trustee as assignee
of the Owner Trustee's rights under each Lease) to the rights afforded to
lessors of aircraft equipment under Section 1110 and (ii) in the case of
Owned Aircraft, the Loan Trustee to the rights afforded to secured parties of
aircraft equipment under Section 1110;
(iv) Section 13.2.1 of each Lease is hereby incorporated by
reference herein;
(v) the Company agrees to provide written notice to each of the
parties hereto of the occurrence of the Cut-off Date no later than one
Business Day after the date thereof; such notice to refer specifically to the
Pass Through Trustee's obligation to assign, transfer and deliver all of its
right, title and interest to the Trust Property (as defined in each Pass
Through Trust Agreement) to the trustee of the Related Trust (as defined in
each Pass Through Trust Agreement) in accordance with Section 7.01 of each of
the Trust Supplements; and
(vi) the Company shall not issue Series D Equipment Notes
pursuant to any Indenture, unless it shall have obtained written confirmation
from each Rating Agency that the issuance of such Series D Equipment Notes
will not result in (i) a reduction of the rating for any Class of
Certificates below the then current rating for such Class of Certificates or
(ii) a withdrawal or suspension of the rating of any Class of Certificates.
If Series D Equipment Notes are initially issued to other than the pass
through trustee for the Class D Certificates, the Company will cause (i) such
Series D Equipment Notes to be subject to the provisions of the Intercreditor
Agreement that allow the "Controlling Party" (as defined in the Intercreditor
Agreement), during the continuance of an "Indenture Default" (as defined in
the Intercreditor Agreement), to direct the Loan Trustee in taking action
under the applicable Indenture and (ii) the Indenture under which such Series
D Equipment Notes are issued to include the provisions set forth in Exhibit F
to this Agreement.
(b) WTC, in its individual capacity, covenants with each of the
other parties to this Agreement that it will, immediately upon obtaining
knowledge of any facts that would cast doubt upon its continuing status as a
"citizen of the United States" as defined in Section 40102(a)(15) of the Act
and promptly upon public disclosure of negotiations in respect of any
transaction which would or might adversely affect such status, notify in
writing all parties hereto of all relevant matters in connection therewith.
Upon WTC giving any such notice, WTC shall, subject to Section 8.02 of any
Indenture then entered into, resign as Loan Trustee in respect of such
Indenture.
SECTION 5. NOTICES. Unless otherwise specifically provided
herein, all notices required or permitted by the terms of this Agreement
shall be in English and in writing, and any such notice shall become
effective upon being delivered personally or, if promptly confirmed by mail,
when dispatched by facsimile or other written telecommunication, addressed to
such party hereto at its address or facsimile number set forth below the
signature of such party at the foot of this Agreement.
SECTION 6. EXPENSES. (a) The Company agrees to pay to the
Subordination Agent when due an amount or amounts equal to the fees payable
to the Liquidity Provider under Section 2.03 of each Liquidity Facility and
the related Fee Letter (as defined in the Intercreditor Agreement) multiplied
by a fraction the numerator of which shall be the then outstanding aggregate
amount of the Deposits under the Deposit Agreements and the denominator of
which shall be the sum of (x) the then outstanding aggregate principal amount
of the Series A-1 Equipment Notes, Series A-2 Equipment Notes, Series B
Equipment Notes and Series C Equipment Notes issued under all of the
Indentures and (y) the then outstanding aggregate amount of the Deposits
under the Deposit Agreements.
(b) So long as no Equipment Notes have been issued in respect
of any Aircraft, the Company agrees to pay (i) to the Subordination Agent
when due (A) the amount equal to interest on any Downgrade Advance (other
than any Applied Downgrade Advance) payable under Section 3.07 of each
Liquidity Facility minus Investment Earnings while such Downgrade Advance
shall be outstanding, (B) the amount equal to interest on any Non-Extension
Advance (other than any Applied Non-Extension Advance) payable under Section
3.07 of each Liquidity Facility minus Investment Earnings while such
Non-Extension Advance shall be outstanding and (C) any other amounts owed to
the Liquidity Provider by the Subordination Agent as borrower under each
Liquidity Facility (other than amounts due as repayment of advances
thereunder or as interest on such advances, except to the extent payable
pursuant to clause (A) or (B)), (ii) all compensation and reimbursement of
expenses, disbursements and advances payable by the Company under the Pass
Through Trust Agreements, (iii) all compensation and reimbursement of
expenses and disbursements payable to the Subordination Agent under the
Intercreditor Agreement except with respect to any income or franchise taxes
incurred by the Subordination Agent in connection with the transactions
contemplated by the Intercreditor Agreement and (iv) in the event the Company
requests any amendment to any Operative Agreement, all reasonable fees and
expenses (including, without limitation, fees and disbursements of counsel)
of the Escrow Agent and/or the Paying Agent in connection therewith. For
purposes of this Section 6(b), the terms "Applied Downgrade Advance",
"Applied Non-Extension Advance", "Downgrade Advance", "Investment Earnings"
and "Non-Extension Advance" shall have the meanings specified in each
Liquidity Facility.
SECTION 7. FURTHER ASSURANCES. Each party hereto shall duly
execute, acknowledge and deliver, or shall cause to be executed, acknowledged
and delivered, all such further agreements, instruments, certificates or
documents, and shall do and cause to be done such further acts and things, in
any case, as any other party hereto shall reasonably request in connection
with its administration of, or to carry out more effectually the purposes of,
or to better assure and confirm unto it the rights and benefits to be
provided under, this Agreement.
SECTION 8. MISCELLANEOUS. (a) Provided that the transactions
contemplated hereby have been consummated, and except as otherwise provided
for herein, the representations, warranties and agreements herein of the
Company, the Subordination Agent, the Escrow Agent, the Paying Agent and the
Pass Through Trustee, and the Company's, the Subordination Agent's, the
Escrow Agent's, the Paying Agent's and the Pass Through Trustee's obligations
under any and all thereof, shall survive the expiration or other termination
of this Agreement and the other agreements referred to herein.
(b) This Agreement may be executed in any number of
counterparts (and each of the parties hereto shall not be required to execute
the same counterpart). Each counterpart of this Agreement, including a
signature page executed by each of the parties hereto, shall be an original
counterpart of this Agreement, but all of such counterparts together shall
constitute one instrument. Neither this Agreement nor any of the terms
hereof may be terminated, amended, supplemented, waived or modified orally,
but only by an instrument in writing signed by the party against which the
enforcement of the termination, amendment, supplement, waiver or modification
is sought. The index preceding this Agreement and the headings of the
various Sections of this Agreement are for convenience of reference only and
shall not modify, define, expand or limit any of the terms or provisions
hereof. The terms of this Agreement shall be binding upon, and shall inure
to the benefit of, the Company and its successors and permitted assigns, the
Pass Through Trustee and its successors as Pass Through Trustee (and any
additional trustee appointed) under any of the Pass Through Trust Agreements,
the Escrow Agent and its successors as Escrow Agent under the Escrow and
Paying Agent Agreements, the Paying Agent and its successors as Paying Agent
under the Escrow and Paying Agent Agreement and the Subordination Agent and
its successors as Subordination Agent under the Intercreditor Agreement.
(c) This Agreement is not intended to, and shall not, provide
any person not a party hereto (other than the Underwriters and each of the
beneficiaries of Section 6 hereof) with any rights of any nature whatsoever
against any of the parties hereto, and no person not a party hereto (other
than the Underwriters and each of the beneficiaries of Section 6 hereof)
shall have any right, power or privilege in respect of, or have any benefit
or interest arising out of, this Agreement.
SECTION 9. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY,
AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. THIS
AGREEMENT IS BEING DELIVERED IN THE STATE OF NEW YORK.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement
to be duly executed by their respective officers thereunto duly authorized as
of the day and year first above written.
CONTINENTAL AIRLINES, INC.
By
------------------------------------
Name:
Title:
Address: 0000 Xxxxx Xxxxxx
Xxxx. XXX-XX
Xxxxxxx, XX 00000
Attention: Senior Vice
President-Finance
Facsimile: (000) 000-0000
WILMINGTON TRUST COMPANY,
not in its individual capacity, except as
otherwise provided herein, but solely as
Pass Through Trustee
By
------------------------------------
Name:
Title:
Address: Xxxxxx Square North
0000 Xxxxx Xxxxxx Xxxxxx
Xxxxxxxxxx, Xxxxxxxx 00000
Attention: Corporate Trust
Administration
Facsimile: (000) 000-0000
WILMINGTON TRUST COMPANY,
not in its individual capacity, except as
otherwise provided herein, but solely as
Subordination Agent
By
------------------------------------
Name:
Title:
Address: Xxxxxx Square North
0000 Xxxxx Xxxxxx Xxxxxx
Xxxxxxxxxx, Xxxxxxxx 00000
Attention: Corporate Trust
Administration
Facsimile: (000) 000-0000
FIRST SECURITY BANK, NATIONAL ASSOCIATION,
as Escrow Agent
By
------------------------------------
Name:
Title:
Address: 00 Xxxxx Xxxx Xxxxxx
Xxxx Xxxx Xxxx, Xxxx 00000
Attention: Corporate Trust
Department, 3rd Floor
Facsimile: (000) 000-0000
WILMINGTON TRUST COMPANY,
as Paying Agent
By
------------------------------------
Name:
Title:
Address: Xxxxxx Square North
0000 Xxxxx Xxxxxx Xxxxxx
Xxxxxxxxxx, Xxxxxxxx 00000
Attention: Corporate Trust
Administration
Facsimile: (000) 000-0000
SCHEDULE I to
NOTE PURCHASE AGREEMENT
ELIGIBLE AIRCRAFT AND SCHEDULED DELIVERY MONTHS
New Aircraft Expected Manufacturer's Scheduled
Type Registration Number Serial Number Delivery Month
---------------- ------------------------- ----------------- -------------------
Boeing 737-824 N73259 30803 May 2001
Boeing 737-824 N35260 30855 Jun 2001
Boeing 737-824 N77261 31582 Jul 2001
Boeing 737-824 N33262 32402 Jul 2001
Boeing 737-824 N37263 31583 Aug 2001
Boeing 737-824 N33264 31584 Aug 2001
Boeing 737-824 N76265 31585 Aug 2001
Boeing 737-824 N33266 32403 Aug 2001
Boeing 737-824 N37267 31586 Sep 2001
Boeing 737-824 N38268 31587 Sep 2001
Boeing 737-824 N76269 31588 Oct 2001
Boeing 737-824 N73270 31632 Oct 2001
Boeing 737-824 N36272 31589 Nov 2001
Boeing 737-824 N37273 31590 Nov 2001
Boeing 737-924 N30401 30118 May 2001
Boeing 737-924 N79402 30119 Jun 2001
Boeing 737-924 N38403 30120 Jul 2001
Boeing 737-924 N32404 30121 Jul 2001
Boeing 737-924 N72405 30122 Aug 2001
Boeing 737-924 N73406 30124 Sep 2001
Boeing 737-924 N35407 30125 Sep 2001
Boeing 737-924 N37408 30126 Oct 2001
Boeing 737-924 N37409 30127 Nov 2001
Boeing 737-924 N75410 30128 Dec 2001
Boeing 767-224 N68155 30434 Feb 2001
Boeing 767-224 N76156 30435 Mar 2001
Boeing 767-224 N67157 30436 Apr 2001
Boeing 767-224 N67158 30437 May 2001
Boeing 767-224 N68159 30438 Jul 2001
Boeing 767-224 N68160 30439 Oct 2001
Boeing 767-424 N76055 29450 Mar 2001
Boeing 767-424 N66056 29451 Jun 2001
SCHEDULE II to
NOTE PURCHASE AGREEMENT
TRUST SUPPLEMENTS
Trust Supplement dated as of the Issuance Date between the Company and the
Pass Through Trustee in respect of Continental Airlines Pass Through Trust,
Series 2000-2A-1-O.
Trust Supplement dated as of the Issuance Date between the Company and the
Pass Through Trustee in respect of Continental Airlines Pass Through Trust,
Series 2000-2A-2-O.
Trust Supplement dated as of the Issuance Date between the Company and the
Pass Through Trustee in respect of Continental Airlines Pass Through Trust,
Series 2000-2B-O.
Trust Supplement dated as of the Issuance Date between the Company and the
Pass Through Trustee in respect of Continental Airlines Pass Through Trust,
Series 2000-2C-O.
SCHEDULE III to
NOTE PURCHASE AGREEMENT
DEPOSIT AGREEMENTS
Deposit Agreement (Class A-1) dated as of the Issuance Date between the
Depositary and the Escrow Agent.
Deposit Agreement (Class A-2) dated as of the Issuance Date between the
Depositary and the Escrow Agent.
Deposit Agreement (Class B) dated as of the Issuance Date between the
Depositary and the Escrow Agent.
Deposit Agreement (Class C) dated as of the Issuance Date between the
Depositary and the Escrow Agent.
SCHEDULE IV to
NOTE PURCHASE AGREEMENT
ESCROW AND PAYING AGENT AGREEMENTS
Escrow and Paying Agent Agreement (Class A-1) dated as of the Issuance Date
among the Escrow Agent, the Underwriters, the Pass Through Trustee and the
Paying Agent.
Escrow and Paying Agent Agreement (Class A-2) dated as of the Issuance Date
among the Escrow Agent, the Underwriters, the Pass Through Trustee and the
Paying Agent.
Escrow and Paying Agent Agreement (Class B) dated as of the Issuance Date
among the Escrow Agent, the Underwriters, the Pass Through Trustee and the
Paying Agent.
Escrow and Paying Agent Agreement (Class C) dated as of the Issuance Date
among the Escrow Agent, the Underwriters, the Pass Through Trustee and the
Paying Agent.
SCHEDULE V TO
NOTE PURCHASE AGREEMENT
MANDATORY DOCUMENT TERMS
The terms "Trust Indenture Form," "Lease Form" and "Participation Agreement
Form" shall have the respective meanings specified in Schedule VI to the Note
Purchase Agreement.
1. May not modify in any material adverse respect the Granting Clause of
the Trust Indenture Form so as to deprive the Note Holders of a first
priority security interest in and mortgage lien on the Aircraft and the
Lease or to eliminate any of the obligations secured thereby or
otherwise modify in any material adverse respect as regards the
interests of the Note Holders, the Subordination Agent, the Liquidity
Providers or the Mortgagee the provisions of Article II or III or
Section 4.02, 4.03, 4.04, 5.02, 5.06, 9.01(b), 10.04, 10.11 or 10.12 of
the Trust Indenture Form.
2. May not modify in any material adverse respect as regards the interests
of the Note Holders, the Subordination Agent, the Liquidity Providers
or the Mortgagee the provisions of Section 3.2.1(e), 3.3(c), 4.7, the
final sentence of 7.1.1, 10.3.1(d)(ii), 13.3, 16, 18.3 or 18.7(a) of
the Lease Form or otherwise modify the terms of the Lease Form so as to
deprive the Mortgagee of rights expressly granted to the "Mortgagee"
therein.
3. May not modify in any material adverse respect as regards the interests
of the Note Holders, the Subordination Agent, the Liquidity Providers
or the Mortgagee the provisions of Section 5.1.9, 5.1.10, 5.1.11,
5.1.12, 7.5, 12, 15.8(a) or 15.9 of the Participation Agreement Form or
of the provisions of Section 5.1.2(xxiii) or 10.1.1(a)(iv) of the
Participation Agreement Form so as to eliminate the requirement to
deliver to the Loan Participant or the Mortgagee, as the case may be,
the legal opinions to be provided to such Persons thereunder
(recognizing that the lawyers rendering such opinions may be changed)
or of the provisions of Section 7.6.11(a)(ii) of the Participation
Agreement Form as regards the rights of the Mortgagee thereunder or
otherwise modify the terms of the Participation Agreement Form to
deprive the Trustees, the Subordination Agent, the Liquidity Providers
or the Mortgagee of any indemnity or right of reimbursement in its
favor for Expenses or Taxes.
4. May not modify, in any material adverse respect as regards the
interests of the Note Holders, the Subordination Agent, the Liquidity
Providers or the Mortgagee, the definition of "Make Whole Amount" in
Annex A to the Participation Agreement Form.
Notwithstanding the foregoing, any such Mandatory Document Term may be
modified to correct or supplement any such provision which may be
defective or to cure any ambiguity or correct any mistake, PROVIDED
that any such action shall not materially adversely affect the
interests of the Note Holders, the Subordination Agent, the Liquidity
Providers, the Mortgagee or the Certificateholders.
SCHEDULE VI TO
NOTE PURCHASE AGREEMENT
MANDATORY ECONOMIC TERMS
EQUIPMENT NOTES
Obligor: Continental or an Owner Trust
Maximum Principal Amount:
The aggregate principal amount of all the Equipment Notes issued with respect to
an Aircraft shall not exceed the amounts set forth in the following table:
MAXIMUM
MANUFACTURER'S PRINCIPAL
SERIAL AMOUNT OF
AIRCRAFT TYPE NUMBER EQUIPMENT NOTES
Boeing 737-824 30803 $30,422,500
Boeing 737-824 30855 30,442,500
Boeing 737-824 31582 30,712,500
Boeing 737-824 32402 30,712,500
Boeing 737-824 31583 30,712,500
Boeing 737-824 31584 30,712,500
Boeing 737-824 31585 30,712,500
Boeing 737-824 32403 30,712,500
Boeing 737-824 31586 30,712,500
Boeing 737-824 31587 30,712,500
Boeing 737-824 31588 30,915,000
Boeing 737-824 31632 30,915,000
Boeing 737-824 31589 30,915,000
Boeing 737-824 31590 30,915,000
Boeing 737-924 30118 31,812,000
Boeing 737-924 30119 31,812,000
Boeing 737-924 30120 32,076,000
Boeing 737-924 30121 32,076,000
Boeing 737-924 30122 32,076,000
MAXIMUM
MANUFACTURER'S PRINCIPAL
SERIAL AMOUNT OF
AIRCRAFT TYPE NUMBER EQUIPMENT NOTES
Boeing 737-924 30124 32,076,000
Boeing 737-924 30125 32,076,000
Boeing 737-924 30126 32,274,000
Boeing 737-924 30127 32,274,000
Boeing 737-924 30128 32,274,000
Boeing 767-224 30434 50,780,400
Boeing 767-224 30435 50,857,400
Boeing 767-224 30436 51,044,400
Boeing 767-224 30437 51,121,400
Boeing 767-224 30438 51,354,600
Boeing 767-224 30439 51,671,400
Boeing 767-424 29450 65,214,600
Boeing 767-424 29451 65,623,800
The original aggregate principal amount of all Equipment Notes (other than
Series D Equipment Notes, if any) for all Aircraft shall not exceed the
aggregate face amount of all Certificates issued on the Issuance Date. The
original aggregate principal amount of all Equipment Notes of any series (other
than Series D Equipment Notes, if any) shall not exceed the original aggregate
face amount of all Certificates of the related Class issued on the Issuance
Date.
The Loan to Aircraft Value for each series of Equipment Notes issued in respect
of each Aircraft computed on the date of issuance thereof (with (i) the
principal amount of the series of Equipment Notes that rank equally or senior
aggregated for purposes of the calculation and (ii) the value for such Aircraft
for these purposes equal to the value ("the ASSUMED APPRAISED VALUE") for such
Aircraft set forth in the Prospectus Supplement under "Description of the
Aircraft and the Appraisals--The Appraisals" in the column "Appraised Value")
and thereafter based on such value after giving effect to the Depreciation
Assumption (as defined in the Prospectus Supplement in "Description of the
Equipment Notes--Loan to Value Ratios of Equipment Notes")) will not exceed as
of the issuance date of such Equipment Notes and any Regular Distribution Date
thereafter (assuming no default in the payment of the Equipment Notes and after
giving effect to scheduled payments) the Loan to Aircraft Value for such series
of Equipment Notes for such Aircraft set forth in the applicable table in
Appendix III to the Prospectus Supplement.
As of the Delivery Period Termination Date and each Regular Distribution Date
thereafter, the Loan to Aircraft Value for each Class of Certificates (computed
(i) after aggregating the principal amount of the class of Certificates that
rank equally or senior and (ii) as of any such date on the basis of the Assumed
Appraised Value of all Aircraft that have been financed pursuant to the Note
Purchase Agreement and the Depreciation Assumption) will not exceed (assuming no
default in the payment of the Equipment Notes and after giving effect to
scheduled payments) the percentages set forth in the following table for the
applicable date:
CLASS A-1 CLASS A-2 CLASS B CLASS C
DATE CERTIFICATES CERTIFICATES CERTIFICATES CERTIFICATES
----------------------- ------------ ------------ ------------ ------------
October 2, 2001........ 42.4% 42.4% 54.0% 64.0%
April 2, 2002.......... 41.8 41.8 54.0 64.0
October 2, 2002........ 41.3 41.3 54.0 64.0
April 2, 2003.......... 41.2 41.2 53.9 63.9
October 2, 2003........ 41.0 41.0 53.6 63.6
April 2, 2004.......... 41.0 41.0 53.6 63.5
October 2, 2004........ 40.9 40.9 53.4 63.4
April 2, 2005.......... 40.9 40.9 53.5 63.5
October 2, 2005........ 40.9 40.9 53.5 63.4
April 2, 2006.......... 41.1 41.1 53.0 62.0
October 2, 2006........ 41.1 41.1 53.0 62.0
April 2, 2007.......... 41.3 41.3 53.0 61.0
October 2, 2007........ 41.3 41.3 53.0 61.0
April 2, 2008.......... 41.6 41.6 53.0 60.0
October 2, 2008........ 41.7 41.7 53.0 60.0
April 2, 2009.......... 41.9 41.9 53.0 60.0
October 2, 2009........ 42.0 42.0 53.0 60.0
April 2, 2010.......... 42.1 42.1 53.0 60.0
October 2, 2010........ 42.1 N/A 53.0 N/A
April 2, 2011.......... 42.3 N/A 53.0 N/A
October 2, 2011........ 42.2 N/A 53.0 N/A
April 2, 2012 and 42.6 N/A 53.0 N/A
thereafter............. 42.6 N/A 53.0 N/A
----------
If the Delivery Period Termination Date is not a Regular Distribution Date, the
LTV applicable to the Delivery Period Termination Date shall be the LTV for the
next preceding Regular Distribution Date, unless the Delivery Period Termination
Date is before October 2, 2001, in which case the LTVs for October 2, 2001 shall
apply.
Initial Average Life (in years) from the Issuance Date for any Aircraft:
Series A-1: not more than 14.75 years
Series B: not more than 12.0 years
Series C: not more than 8.0 years
AVERAGE LIFE (IN YEARS)
As of the Delivery Period Termination Date, the average life of the
Class A-1 Certificates, the Class B Certificates and the Class C
Certificates shall not be more than, respectively, 12.7 years, 10.0
years, and 5.1 years from the Issuance Date (computed without regard to
the acceleration of any Equipment Notes and after giving effect to any
special distribution on the Certificates thereafter required in respect
of unused Deposits).
FINAL MATURITY DATE
There shall be a payment of principal scheduled on at least one Series
A-1 Equipment Note on April 2, 2021, and no Series A-1 Equipment Note
shall mature after such date.
Series A-2: October 2, 2010, with no scheduled amortization
There shall be a payment of principal scheduled on at least one Series
B Equipment Note on April 2, 2018, and no Series B Equipment Note shall
mature after such date.
There shall be a payment of principal scheduled on at least one
Series C Equipment Note on April 2, 2011, and no Series C Equipment
Note shall mature after such date.
As of the Delivery Period Termination Date (assuming Equipment Notes are
acquired by the Pass Through Trusts for all of the Aircraft), the aggregate
principal amount of the Series A-2 Equipment Notes shall equal the original face
amount of the Class A-2 Certificates.
Debt Rate (computed on the basis of a 360-day year consisting of twelve 30-day
months, payable semi-annually in arrears)
Series A-1: 7.707%
Series A-2: 7.487%
Series B: 8.307%
Series C: 8.312%
Payment Due Rate: Debt Rate plus 2% per annum
Payment Dates: April 2 and October 2
Make-Whole Premiums: As provided in Article II of the form of Trust
Indenture marked as Exhibit A-3 or A-6 (whichever
shall be utilized for a Leased Aircraft) of the
Note Purchase Agreement (the "TRUST INDENTURE
FORM") or the Owned Aircraft Indenture marked as
Exhibit C-2 of the Note Purchase Agreement
Redemption and Purchase: As provided in Article II of the Trust
Indenture Form
LEASE
Term: The Base Lease Term shall expire by its terms
on or after final maturity date of the latest
maturity date of the related Equipment Notes
Lease Payment Dates: April 2 and October 2
Minimum Rent: Basic Rent due and payable on each Payment Date
shall be at least sufficient to pay in full, as
of such Payment Date (assuming timely payment
of the related Equipment Notes prior to such
Date), the aggregate principal amount of
scheduled installments due on the related
Equipment Notes outstanding on such Payment
Date, together with accrued and unpaid interest
thereon.
Supplemental Rent: Sufficient to cover the sums described in
clauses (a) through (d) of such term as defined
in Annex A to the form of Lease (the "LEASE
Form") marked as Exhibit A-2 of the Note
Purchase Agreement
Stipulated Loss Value: At all times equal to or greater than the then
outstanding principal amount of the related
Equipment Notes together with accrued interest
thereon
Termination Value: At all times equal to or greater than the then
outstanding principal amount of the related
Equipment Notes together with accrued interest
thereon
All-risk hull insurance: Not less than Stipulated Loss Value, subject to
Lessee's right to self-insure on terms no more
favorable to Lessee in any material respect
than those set forth in Section G of Annex D to
the Lease Form.
Minimum Liability As set forth in Schedule 1 to the
Insurance Amount: Lease Form.
Payment Due Rate: As set forth in Schedule 1 to the Lease Form.
SLV Rate: As set forth in Schedule 1 Lease Form.
PARTICIPATION AGREEMENT
Mortgagee, Subordination Agent, Liquidity Provider, Pass Through Trustees,
Escrow Agents and Note Holders indemnified against Expenses and Taxes to the
extent set forth in Section 9 of the form of the Participation Agreement (the
"PARTICIPATION AGREEMENT FORM") marked as Exhibit A-1 to the Note Purchase
Agreement
SCHEDULE VII to
NOTE PURCHASE AGREEMENT
AGGREGATE AMORTIZATION SCHEDULE
CLASS A-1 CLASS A-2 CLASS B CLASS C
--------- --------- ------- -------
SCHEDULED EXPECTED SCHEDULED EXPECTED SCHEDULED EXPECTED SCHEDULED EXPECTED
PRINCIPAL POOL PRINCIPAL POOL PRINCIPAL POOL PRINCIPAL POOL
DATE PAYMENTS FACTOR PAYMENTS FACTOR PAYMENTS FACTOR PAYMENTS FACTOR
---- -------- ------ -------- ------ -------- ------ -------- ------
April 2, 2001...... $ 0.00 1.1371353 $ 0.00 1.0000000 $ 0.00 1.0000000 $ 0.00 1.0000000
October 2, 2001.... 3,355,990.72 1.1250700 0.00 1.0000000 1,863,229.01 0.9876679 12,695,765.55 0.9085082
April 2, 2002...... 15,211,376.61 1.0703824 0.00 1.0000000 6,303,310.33 0.9459485 37,436,601.94 0.6387221
October 2, 2002.... 11,026,586.73 1.0307399 0.00 1.0000000 1,086,542.52 0.9387570 0.00 0.6387221
April 2, 2003...... 11,211,239.81 0.9904335 0.00 1.0000000 4,558,391.68 0.9085866 1,119,042.01 0.6306577
October 2, 2003.... 8,667,808.07 0.9592712 0.00 1.0000000 3,977,554.10 0.8822605 1,675,037.02 0.6185866
April 2, 2004...... 9,117,980.65 0.9264904 0.00 1.0000000 1,148,388.46 0.8746597 790,186.41 0.6128922
October 2, 2004.... 8,612,985.58 0.8955253 0.00 1.0000000 0.00 0.8746597 0.00 0.6128922
April 2, 2005...... 9,847,384.26 0.8601222 0.00 1.0000000 1,274,626.87 0.8662234 17,535,201.79 0.4865251
October 2, 2005.... 5,664,581.75 0.8397570 0.00 1.0000000 0.00 0.8662234 0.00 0.4865251
April 2, 2006...... 8,985,573.73 0.8074523 0.00 1.0000000 2,038,807.30 0.8527292 11,371,384.35 0.4045774
October 2, 2006.... 4,880,706.86 0.7899053 0.00 1.0000000 363,377.65 0.8503241 402,406.21 0.4016775
April 2, 2007...... 9,477,598.58 0.7558317 0.00 1.0000000 3,196,928.50 0.8291647 7,650,215.99 0.3465464
October 2, 2007.... 9,051,841.24 0.7232887 0.00 1.0000000 0.00 0.8291647 0.00 0.3465464
April 2, 2008...... 8,602,654.79 0.6923606 0.00 1.0000000 3,832,454.42 0.8037990 8,531,899.93 0.2850614
October 2,2008..... 727,607.15 0.6897448 0.00 1.0000000 4,650,336.82 0.7730200 0.00 0.2850614
April 2,2009....... 10,962,294.82 0.6503334 0.00 1.0000000 37,258,301.79 0.5264200 9,257,336.45 0.2183486
October 2, 2009.... 2,349,328.50 0.6418871 0.00 1.0000000 0.00 0.5264200 0.00 0.2183486
April 2, 2010...... 5,700,042.12 0.6213945 0.00 1.0000000 0.00 0.5264200 2,577,972.63 0.1997705
October 2, 2010.... 0.00 0.6213945 170,766,000.00 0.0000000 9,894,485.39 0.4609318 5,418,416.37 0.1607228
April 2, 2011...... 106,409.23 0.6210119 0.00 0.0000000 3,597,225.77 0.4371230 22,302,533.35 0.0000000
October 2, 2011.... 0.00 0.6210119 0.00 0.0000000 0.00 0.4371230 0.00 0.0000000
April 2, 2012...... 4,767,942.55 0.6038703 0.00 0.0000000 8,828,861.42 0.3786878 0.00 0.0000000
October 2, 2012.... 1,290,688.77 0.5992301 0.00 0.0000000 299,744.26 0.3767039 0.00 0.0000000
April 2, 2013...... 8,818,376.45 0.5675265 0.00 0.0000000 12,430,836.60 0.2944284 0.00 0.0000000
October 2, 2013.... 2,353,801.17 0.5590641 0.00 0.0000000 324,251.77 0.2922823 0.00 0.0000000
April 2, 2014...... 8,713,277.95 0.5277384 0.00 0.0000000 15,781,703.37 0.1878286 0.00 0.0000000
October 2, 2014.... 2,325,540.78 0.5193776 0.00 0.0000000 341,347.38 0.1855693 0.00 0.0000000
April 2, 2015...... 15,976,076.06 0.4619408 0.00 0.0000000 7,807,101.86 0.1338968 0.00 0.0000000
October 2, 2015.... 2,737,444.05 0.4520992 0.00 0.0000000 358,852.53 0.1315216 0.00 0.0000000
April 2, 2016...... 20,621,661.86 0.3779607 0.00 0.0000000 3,868,648.04 0.1059164 0.00 0.0000000
October 2, 2016.... 2,874,647.67 0.3676259 0.00 0.0000000 376,774.85 0.1034226 0.00 0.0000000
April 2, 2017...... 26,373,913.19 0.2728070 0.00 0.0000000 5,918,401.18 0.0642507 0.00 0.0000000
October 2, 2017.... 3,082,670.88 0.2617243 0.00 0.0000000 5,803,035.26 0.0258424 0.00 0.0000000
April 2, 2018...... 8,183,708.08 0.2323024 0.00 0.0000000 3,904,480.87 0.0000000 0.00 0.0000000
October 2, 2018.... 7,086,629.72 0.2068247 0.00 0.0000000 0.00 0.0000000 0.00 0.0000000
April 2, 2019...... 19,384,142.56 0.1371353 0.00 0.0000000 0.00 0.0000000 0.00 0.0000000
October 2, 2019.... 0.00 0.1371353 0.00 0.0000000 0.00 0.0000000 0.00 0.0000000
April 2, 2020...... 38,144,262.87 0.1893018 0.00 0.0000000 0.00 0.0000000 0.00 0.0000000
October 2, 2020.... 14,510,135.41 0.3673892 0.00 0.0000000 0.00 0.0000000 0.00 0.0000000
April 2, 2021...... 49,535,088.78 0.3673892 0.00 0.0000000 0.00 0.0000000 0.00 0.0000000
ANNEX A to
NOTE PURCHASE AGREEMENT
DEFINITIONS
"ACT" means 49 U.S.C.ss.ss.40101-46507.
"AFFILIATE" means, with respect to any person, any other person directly or
indirectly controlling, controlled by or under common control with such person.
For purposes of this definition, "control" means the power, directly or
indirectly, to direct or cause the direction of the management and policies of
such person, whether through the ownership of voting securities or by contract
or otherwise and "controlling," "controlled by" and "under common control with"
have correlative meanings.
"AIRCRAFT PURCHASE AGREEMENT" means, in the case of the Boeing 767-224 Aircraft,
the Purchase Agreement No. 2211, dated as of November 16, 1998, in the case of
the Boeing 767-424 Aircraft, the Purchase Agreement No. 2060, dated as of
October 10, 1997, or, in the case of the Boeing 737-924 Aircraft and the Boeing
737-824 Aircraft, the Purchase Agreement No. 1951 dated July 23, 1996, as
amended, each between the Company and the Manufacturer (including all exhibits
thereto, together with all letter agreements entered into that by their terms
constitute part of any such Purchase Agreement); and "AIRCRAFT PURCHASE
AGREEMENTS" means all such agreements.
"AIRCRAFT PURCHASE AGREEMENT ASSIGNMENT" means a Purchase Agreement and Engine
Warranties Assignment substantially in the form of Exhibit A-4-I or A-4-II to
the Note Purchase Agreement.
"ASSUMED AMORTIZATION SCHEDULE" means Schedule VII to the Note Purchase
Agreement.
"BANKRUPTCY CODE" means the United States Bankruptcy Code, 11 U.S.C.ss.ss.102 ET
SEQ.
"BASIC PASS THROUGH TRUST AGREEMENT" means the Pass Through Trust Agreement,
dated September 25, 1997, between the Company and Pass Through Trustee, as such
agreement may be supplemented, amended or modified, but does not include any
Trust Supplement.
"BUSINESS DAY" means any day, other than a Saturday, Sunday or other day on
which commercial banks are authorized or required by law to
close in New York, New York, Houston, Texas, Wilmington, Delaware or Salt Lake
City, Utah.
"CERTIFICATE" has the meaning set forth in the third recital to the Note
Purchase Agreement.
"CERTIFICATEHOLDER" means the Person in whose name a Certificate is registered
in the Register.
"CLASS" means the class of Certificates issued by each Pass Through Trust.
"CLASS D CERTIFICATES" means pass through certificates issued by the Continental
Airlines Pass Through Trust, Series 2000-2D, if any.
"COMPANY" means Continental Airlines, Inc., a Delaware corporation.
"CORPORATE TRUST OFFICE" with respect to any Pass Through Trustee or any Loan
Trustee, means 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 the earlier of (a) the day after the Delivery Period
Termination Date and (b) the date on which a Triggering Event occurs.
"DELIVERY PERIOD TERMINATION DATE" means the earlier of (a) February 1, 2002,
or, if the Equipment Notes relating to all of the New Aircraft (or Substitute
Aircraft in lieu thereof) have not been purchased by the Pass Through Trustees
on or prior to such date due to any reason beyond the control of the Company and
not occasioned by the Company's fault or negligence, May 1, 2002 (provided that,
if a labor strike occurs or continues at the Manufacturer after the Issuance
Date on or prior to either or both of such dates referred to in this clause (a),
such date or dates on or following the Issuance Date shall be extended by adding
thereto the number of days that such strike continued in effect after the
Issuance Date) and (b) the date on which Equipment Notes issued with respect to
all of the New Aircraft (or Substitute Aircraft in lieu thereof) have been
purchased by the Pass Through Trustees in accordance with the Note Purchase
Agreement.
"DELIVERY DATE" means the Business Day on which a New Aircraft is delivered to
and accepted by the Company.
"DEPOSIT" has the meaning set forth in the fifth recital to the Note Purchase
Agreement.
"DEPOSIT AGREEMENT" has the meaning set forth in the fifth recital to the Note
Purchase Agreement.
"DEPOSITARY" means Credit Suisse First Boston, a banking institution organized
under the laws of Switzerland, acting through its New York branch.
"ELIGIBLE AIRCRAFT" has the meaning set forth in the second recital to the Note
Purchase Agreement.
"EQUIPMENT NOTES" means and includes any equipment notes issued under any
Indenture in the form specified in Section 2.01 thereof (as such form may be
varied pursuant to the terms of such Indenture) and any Equipment Note issued
under any Indenture in exchange for or replacement of any other Equipment Note.
"ESCROW AGENT" has the meaning set forth in the first paragraph of the Note
Purchase Agreement.
"ESCROW AND PAYING AGENT AGREEMENT" has the meaning set forth in the fifth
recital to the Note Purchase Agreement.
"FAA" means the Federal Aviation Administration of the United States.
"FINAL WITHDRAWAL" with respect to each Escrow and Paying Agent Agreement, has
the meaning set forth in Section 1.02 thereof.
"FINANCING AGREEMENTS" means, collectively, the Lease Financing Agreements and
the Owner Financing Agreements.
"GOVERNMENT ENTITY" means (a) any federal, state, provincial or similar
government, and any body, board, department, commission, court, tribunal,
authority, agency or other instrumentality of any such government or otherwise
exercising any executive, legislative, judicial, administrative or regulatory
functions of such government or (b) any other government entity having
jurisdiction over any matter contemplated by the Operative Agreements or
relating to the observance or performance of the obligations of any of the
parties to the Operative Agreements.
"INDENTURES" means, collectively, the Leased Aircraft Indentures, the Special
Indentures and the Owned Aircraft Indentures.
"INTERCREDITOR AGREEMENT" has the meaning set forth in the ninth recital to the
Note Purchase Agreement.
"ISSUANCE DATE" means the date of the original issuance of the Certificates.
"LAW" means (a) any constitution, treaty, statute, law, decree, regulation,
order, rule or directive of any Government Entity, and (b) any judicial or
administrative interpretation or application of, or decision under, any of the
foregoing.
"LEASE" means a Lease Agreement substantially in the form of Exhibit A-2 to the
Note Purchase Agreement.
"LEASE FINANCING AGREEMENTS" means, collectively, the Aircraft Purchase
Agreement Assignment, the Leased Aircraft Participation Agreement, the Lease,
the Leased Aircraft Indenture (or, in a case where The Boeing Company or any of
its Affiliates is the Owner Participant and if so specified in the Delivery
Notice, the Special Indenture), the Equipment Notes issued thereunder and the
Trust Agreement relating to the financing of a Leased Aircraft.
"LEASED AIRCRAFT" means a New Aircraft subject to a Lease.
"LEASED AIRCRAFT INDENTURE" means a Trust Indenture and Mortgage substantially
in the form of Exhibit A-3 to the Note Purchase Agreement.
"LEASED AIRCRAFT PARTICIPATION AGREEMENT" means a Participation Agreement
substantially in the form of Exhibit A-1 to the Note Purchase Agreement.
"LIQUIDITY FACILITY" has the meaning set forth in the ninth recital to the Note
Purchase Agreement.
"LIQUIDITY PROVIDER" has the meaning set forth in the ninth recital to the Note
Purchase Agreement.
"LOAN TRUSTEE" means the "Mortgagee" as defined in the Financing Agreements.
"MANDATORY DOCUMENT TERMS" means the terms set forth on Schedule V to the Note
Purchase Agreement.
"MANDATORY ECONOMIC TERMS" means the terms set forth on Schedule VI to the Note
Purchase Agreement.
"MANUFACTURER" means The Boeing Company, a Delaware corporation, solely in its
capacity as manufacturer or seller of New Aircraft.
"NEW AIRCRAFT" has the meaning set forth in the second recital to the Note
Purchase Agreement.
"NOTE PURCHASE AGREEMENT" means the Note Purchase Agreement to which this Annex
A is attached.
"NOTICE OF PURCHASE WITHDRAWAL" with respect to each Deposit Agreement, has the
meaning set forth in Section 2.3 thereof.
"OPERATIVE AGREEMENTS" means, collectively, the Pass Through Trust Agreements,
the Escrow and Paying Agent Agreements, the Deposit Agreements, the Liquidity
Facilities, the Guarantee Agreements, the Intercreditor Agreement, the Trust
Agreements, the Equipment Notes, the Certificates and the Financing Agreements.
"OWNED AIRCRAFT" means a New Aircraft subject to an Owned Aircraft Indenture.
"OWNED AIRCRAFT INDENTURE" means a Trust Indenture and Mortgage substantially in
the form of Exhibit C-2 to the Note Purchase Agreement.
"OWNED AIRCRAFT PARTICIPATION AGREEMENT" means a Participation Agreement
substantially in the form of Exhibit C-1 to the Note Purchase Agreement.
"OWNER FINANCING AGREEMENTS" means, collectively, the Owned Aircraft
Participation Agreement, the Owned Aircraft Indenture and the Equipment Notes
issued thereunder.
"OWNER PARTICIPANT" means, with respect to any Leased Aircraft, the Person named
as the Owner Participant in the Participation Agreement with respect to such
Leased Aircraft.
"OWNER TRUST" means with respect to any Leased Aircraft, the trust created by
the "Trust Agreement" referred to in the Leased Aircraft Indenture or Special
Indenture related thereto.
"OWNER TRUSTEE" means with respect to any Leased Aircraft, the "Owner Trustee"
party to the "Trust Agreement" referred to in the Leased Aircraft Indenture or
Special Indenture related thereto.
"PARTICIPATION AGREEMENTS" means, collectively, the Leased Aircraft
Participation Agreements and the Owned Aircraft Participation Agreements.
"PASS THROUGH TRUST" has the meaning set forth in the third recital to the Note
Purchase Agreement.
"PASS THROUGH TRUST AGREEMENT" means each of the four separate Trust
Supplements, together in each case with the Basic Pass Through Trust Agreement,
each dated as of the Issuance Date, by and between the Lessee and Pass Through
Trustee.
"PASS THROUGH TRUSTEE" has the meaning set forth in the first paragraph of the
Note Purchase Agreement.
"PAYING AGENT" has the meaning set forth in the first paragraph of the Note
Purchase Agreement.
"PERSON" means any individual, firm, partnership, joint venture, trust, trustee,
Government Entity, organization, association, corporation, limited liability
company, government agency, committee, department, authority and other body,
corporate or incorporate, whether having distinct legal status or not, or any
member of any of the same.
"QUALIFIED OWNER PARTICIPANT" means any bank, trust company, insurance company,
financial institution, partnership, limited liability company or corporation
(other than, without the Company's consent, a commercial air carrier, a
commercial aircraft operator, a freight forwarder or Affiliate of any of the
foregoing), in each case with a combined capital and surplus or net worth of at
least $50,000,000.
"RATING AGENCIES" means, collectively, at any time, each nationally recognized
rating agency which shall have been requested to rate the Certificates and which
shall then be rating the Certificates. The initial Rating Agencies will be
Xxxxx'x Investors Service, Inc. and Standard & Poor's Ratings Services, a
division of The XxXxxx-Xxxx Companies, Inc.
"RATING AGENCY CONFIRMATION" means, with respect to any Financing Agreement that
has been modified in any material respect from the forms thereof attached to the
Note Purchase Agreement, with respect to Substitute Aircraft, a written
confirmation from each of the Rating Agencies that the use of such Financing
Agreement with such modifications or the substituting of such Substitute
Aircraft for an Eligible Aircraft, whichever of the foregoing shall in a
particular case require Rating Agency Confirmation, would not result in (i) a
reduction of the rating for any Class of Certificates below the then current
rating for such Class of Certificates or (ii) a withdrawal or suspension of the
rating of any Class of Certificates.
"REGISTER" means the register maintained pursuant to Sections 3.04 and 7.12 of
the Basic Pass Through Trust Agreement with respect to each Pass Through Trust.
"REGULAR DISTRIBUTION DATES" shall mean April 2 and October 2 of each year,
commencing April 2, 2001.
"SECTION 1110" means 11 U.S.C. ss. 1110 of the Bankruptcy Code or any successor
or analogous Section of the federal bankruptcy Law in effect from time to time.
"SERIES A-1 EQUIPMENT NOTES" means Equipment Notes issued under an Indenture and
designated as "Series A-1" thereunder.
"SERIES A-2 EQUIPMENT NOTES" means Equipment Notes issued under an Indenture and
designated as "Series A-2" thereunder.
"SERIES B EQUIPMENT NOTES" means Equipment Notes issued under an Indenture and
designated as "Series B" thereunder.
"SERIES C EQUIPMENT NOTES" means Equipment Notes issued under an Indenture and
designated as "Series C" thereunder.
"SERIES D EQUIPMENT NOTES" means Equipment Notes issued under an Indenture and
designated as "Series D" thereunder, if any.
"SPECIAL INDENTURE" means a Trust Indenture and Mortgage substantially in the
form of Exhibit A-6 to the Note Purchase Agreement.
"SUBORDINATION AGENT" has the meaning set forth in the first paragraph of the
Note Purchase Agreement.
"SUBSTITUTE AIRCRAFT" has the meaning set forth in Section 1(g) of the Note
Purchase Agreement.
"TAXES" means all license, recording, documentary, registration and other
similar fees and all taxes, levies, imposts, duties, charges, assessments or
withholdings of any nature whatsoever imposed by any Taxing Authority, together
with any penalties, additions to tax, fines or interest thereon or additions
thereto.
"TAXING AUTHORITY" means any federal, state or local government or other taxing
authority in the United States, any foreign government or any political
subdivision or taxing authority thereof, any international taxing authority or
any territory or possession of the United States or any taxing authority
thereof.
"TRIGGERING EVENT" has the meaning assigned to such term in the Intercreditor
Agreement.
"TRUST AGREEMENT" means a Trust Agreement substantially in the form of Exhibit E
to the Note Purchase Agreement.
"TRUST SUPPLEMENT" means an agreement supplemental to the Basic Pass Through
Trust Agreement pursuant to which (i) a separate trust is created for the
benefit of the holders of the Pass Through Certificates of a class, (ii) the
issuance of the Pass Through Certificates of such class representing fractional
undivided interests in such trust is authorized and (iii) the terms of the Pass
Through Certificates of such class are established.
"UNDERWRITERS" has the meaning set forth in the fourth recital to the Note
Purchase Agreement.
"WTC" has the meaning set forth in the first paragraph of the Note Purchase
Agreement.
EXHIBIT A-1 to
NOTE PURCHASE AGREEMENT
FORM OF LEASED AIRCRAFT PARTICIPATION AGREEMENT
(Filed Separately)
EXHIBIT A-2 to
NOTE PURCHASE AGREEMENT
FORM OF LEASE
(Filed Separately)
EXHIBIT A-3 to
NOTE PURCHASE AGREEMENT
FORM OF LEASED AIRCRAFT INDENTURE
(Filed Separately)
EXHIBIT A-4-I to
NOTE PURCHASE AGREEMENT
FORM OF AIRCRAFT PURCHASE AGREEMENT ASSIGNMENT - CFM
-----------------------------------------------------
| CONFIDENTIAL: SUBJECT TO RESTRICTIONS ON |
| DISSEMINATION SET FORTH IN SECTION 8 OF THE |
| PARTICIPATION AGREEMENT (AS DEFINED HEREIN) |
-----------------------------------------------------
PURCHASE AGREEMENT AND ENGINE WARRANTIES ASSIGNMENT ___
PURCHASE AGREEMENT AND ENGINE WARRANTIES ASSIGNMENT ___, dated as of
__________, between Continental Airlines, Inc., a Delaware corporation
("Assignor"), and First Security Bank, National Association, a national banking
association, not in its individual capacity but solely as Owner Trustee
("Assignee") under Trust Agreement ___ dated as of __________ (the "Trust
Agreement"), between the Owner Participant named therein and Assignee, in its
individual capacity, and otherwise not in its individual capacity but solely as
trustee thereunder.
Assignor and Manufacturer (as such term and other capitalized terms
are hereinafter defined) are parties to the Purchase Agreement, providing, among
other things, for the manufacture and sale by Manufacturer or Manufacturer's
wholly owned subsidiary to Assignor of certain aircraft, engines and related
equipment, including the Aircraft. Assignor and Engine Manufacturer are parties
to the General Terms Agreement, containing, among other terms and conditions,
the Engine Warranties.
Assignee wishes to acquire the Aircraft and Assignor, on the terms
and conditions hereinafter set forth, is willing to assign to Assignee certain
of Assignor's rights and interests under the Purchase Agreement and the General
Terms Agreement and Assignee is willing to accept such assignment, as
hereinafter set forth.
AGREEMENTS
The parties hereto agree as follows:
Section 1. DEFINITIONS. For all purposes of this Assignment, except
as otherwise expressly provided or unless the context otherwise requires, the
following terms shall have the following meanings:
AIRCRAFT - The Boeing Model 737-___ aircraft bearing Manufacturer's
Serial No. _______ and U.S. Registration No. __________, to be financed pursuant
to the Participation Agreement, including the Engines.
ENGINES - Two CFM Model ________ series engines bearing
manufacturer's serial numbers ________ and ________, respectively, installed
on the Aircraft.
ENGINE MANUFACTURER - CFM International, Inc., a Delaware
corporation, and its successors and assigns.
ENGINE WARRANTIES - Engine Manufacturer's "New Engine Warranty,"
"New Parts Warranty," "Ultimate Life Warranty" and "Campaign Change
Warranty," as set forth in the Engine Manufacturer's Engine Product Support
Plan which forms a part of the General Terms Agreement, and as limited by the
applicable terms of the General Terms Agreement and such Engine Product
Support Plan.
GENERAL TERMS AGREEMENT - The Agreement No. 6-7075, dated as of
June 10, 1985, by and between Engine Manufacturer and Assignor, including the
"Engine Product Support Plan" at Exhibit B thereto, insofar as such Engine
Product Support Plan relates to the Engine Warranties, but excluding any and
all letter agreements attached thereto, to the extent that such General Terms
Agreement and such Exhibit relate to the Engines, as such General Terms
Agreement may hereafter be amended, supplemented and modified to the extent
permitted by the terms of this Assignment to the extent relating to the
Engines.
LEASE - The Lease Agreement ___, dated as of __________, as at
any time amended, supplemented and modified, between Assignee, as lessor, and
Assignor, as lessee, providing for the lease of the Aircraft.
MANUFACTURER - The Boeing Company, a Delaware corporation, and
its successors and assigns.
PARTICIPATION AGREEMENT - The Participation Agreement ___, dated
as of ___________, among Assignor, the Participants, Assignee and Mortgagee,
as at any time amended, supplemented and modified.
PURCHASE AGREEMENT - Purchase Agreement No. 1951, dated July 23,
1996, between Manufacturer and Assignor, providing, among other things, for
the manufacture and sale by Manufacturer to Assignor of certain Boeing Model
737 aircraft (including the Aircraft) and including as part thereof Exhibits
A, B, D, E and F thereto, but excluding all other exhibits and letter and
supplemental agreements, to the extent that such Purchase Agreement and such
Exhibits relate to the Aircraft, as such Purchase Agreement may hereafter be
amended, supplemented and modified to the extent permitted by the terms of
this Assignment.
Capitalized terms used but not defined herein shall have the
respective meanings set forth or incorporated by reference, and shall be
construed and interpreted in the manner described, in the Participation
Agreement.
Section 2. ASSIGNMENT. Assignor does hereby sell, assign,
transfer and set over unto Assignee and its successors and permitted assigns
all of Assignor's rights and interests in and to the Purchase Agreement, as
and only to the extent that the same relates to the Aircraft, and in and to
the General Terms Agreement, as and only to the extent that the Engine
Warranties contained therein relate to the Engines, except to the extent
reserved below, including without limitation in such assignment (a) all
claims for damages in respect of the Aircraft and the Engines arising as a
result of any default by Manufacturer under the Purchase Agreement or Engine
Manufacturer or any other vendor or supplier of other parts or equipment
installed on or in the Aircraft, including without limitation all warranty
service life policies, aircraft performance guarantees and indemnity
provisions contained in the Purchase Agreement and the Engine Warranties, and
all claims arising thereunder, in respect of the Aircraft and the Engines,
(b) any and all rights of Assignor to compel performance of the terms of the
Purchase Agreement in respect of the Aircraft and the Engine Warranties in
respect of the Engines and (c) the right to purchase and take title to the
Aircraft pursuant to the Purchase Agreement; reserving to Assignor, however,
with respect to the Aircraft and each Engine, (i) all rights to receive any
credits due to Assignor with respect to the purchase price of the Aircraft
pursuant to the Purchase Agreement and of the Engines pursuant to the General
Terms Agreement, (ii) all of Assignor's rights and interests in or arising
out of any payments or deposits made relating to the Aircraft or to be made
by Assignor on amounts credited or to be credited or paid or to be paid by
the Manufacturer to the Assignor in respect of the Aircraft and (iii) so
long and only so long as the Aircraft and each Engine shall be subject to the
Lease and no Lease Event of Default shall have occurred and be continuing
thereunder, the rights (A) to demand, accept and retain all rights in and to
all property (other than the Aircraft), data and services that Manufacturer
or Engine Manufacturer is obligated to provide or does provide pursuant to
the Purchase Agreement or the General Terms Agreement, as the case may be,
and (B) to obtain services, training, data and demonstration and test flights
pursuant to the Purchase Agreement or the General Terms Agreement, as the
case may be.
Assignee hereby accepts such assignment subject to the terms hereof.
Assignor has furnished a true copy of the Purchase Agreement and a true copy of
the General Terms Agreement to Assignee and has specifically directed Assignee's
attention to Paragraph 10 of Part A, Paragraph 5 of Part C, Paragraph 3 of Part
D, Paragraph 2 of Part D-1, Paragraph 5 of Part F-1, and Paragraph 9 and 10 of
Part F-2 of Exhibit B to the Purchase Agreement.
Section 3. EXERCISE OF RIGHTS OF "BUYER" UNDER PURCHASE AGREEMENT
AND OF "AIRLINE" UNDER GENERAL TERMS AGREEMENT. Notwithstanding the foregoing,
if and so long as no Lease Event of Default shall have occurred and be
continuing, Assignee authorizes Assignor, to the exclusion of Assignee, during
the Term, to exercise in Assignor's name all rights and powers of the "Buyer" in
respect of the Aircraft under the Purchase Agreement and of the "Airline" in
respect of each Engine under the General Terms Agreement, and of Assignee in
respect of a default by any vendor or supplier of parts and equipment (as
specified in clause (a) of Section 2 above) and to retain any recovery or
benefit resulting from the enforcement of any warranty or indemnity under the
Purchase Agreement or the General Terms Agreement in respect of the Aircraft or
each Engine, as the case may be, except that Assignor may not enter into any
change order or other amendment, modification or supplement to the Purchase
Agreement without the written consent or countersignature of Assignee if such
change order, amendment, modification or supplement would (i) result in any
rescission, cancellation or termination of the Purchase Agreement in respect of
the Aircraft or (ii) materially diminish the rights assigned hereunder to
Assignee. Assignee agrees that, as between Assignee and Manufacturer or Engine
Manufacturer, as the case may be (and without affecting Assignor's duties or
obligations under the Participation Agreement or the Lease), neither
Manufacturer nor Engine Manufacturer, as the case may be, shall be deemed to
have knowledge of any Lease Default, Lease Event of Default, declaration of
default or the discontinuance or remedy thereof or the Aircraft or either Engine
being no longer subject to the Lease or any change in the authority of Assignor
or Assignee, as the case may be, to exercise any of the rights established
hereunder unless and until Manufacturer shall have received written notice
thereof from Assignee or Mortgagee addressed to its Vice President - Contracts
at X.X. Xxx 0000, Mail Code 21-34, Xxxxxxx, Xxxxxxxxxx 00000-0000, if by mail,
or to (000) 000-0000,
if by facsimile, or, in the case of Engine Manufacturer, Engine Manufacturer
shall have received written notice thereof from Assignee or Mortgagee
addressed to its Commercial Contract Director at X.X. Xxx 00000, Xxxxxxxxxx,
Xxxx 00000-0000, if by mail, or to (000) 000-0000, if by facsimile. So long
as Manufacturer and Engine Manufacturer act in good faith, Manufacturer and
Engine Manufacturer may rely conclusively on any such notice without
inquiring as to the accuracy of, or the entitlement of the party to give,
such notice.
The Engine Manufacturer shall not be deemed to have knowledge of the
replacement of an Engine with another CFM engine, until the Engine Manufacturer
has received written notice thereof. Such notice shall include the serial number
of the Engine being replaced, as well as the serial number of the replacement
Engine and shall be sent to: Lease Pool Manager, Customer Support Operation, GE
Aircraft Engines, 000 Xxxxxxxx Xxxxxx, Xxxx 000, Xxxxxxxxxx, Xxxx 00000.
Section 4. CERTAIN AGREEMENTS. It is expressly agreed that, anything
herein contained to the contrary notwithstanding:
(a) Assignor shall at all times remain liable (i) to
Manufacturer under the Purchase Agreement to perform all the duties and
obligations of the "Buyer" thereunder and (ii) to Engine Manufacturer
under the General Terms Agreement to perform all the duties and
obligations of the "Airline" thereunder, in each case to the same
extent as if this Assignment had not been executed,
(b) the exercise by Assignee of any of the rights assigned
hereunder shall not release Assignor from any of its duties or
obligations to Manufacturer under the Purchase Agreement or to Engine
Manufacturer under the General Terms Agreement except to the extent
that such exercise by Assignee shall constitute performance of such
duties and obligations, and
(c) except as provided in the next sentence, none of Assignee,
Mortgagee or any Participant shall have any obligation or liability
under the Purchase Agreement or the General Terms Agreement by reason
of, or arising out of, this Assignment or be obligated to perform any
of the obligations or duties of Assignor under the Purchase Agreement
or the General Terms Agreement or to make any payment thereunder or to
make any inquiry as to the sufficiency of any payment received by any
of them or to present or file any claim or to take any other action to
collect or enforce any claim for any payment assigned hereunder.
Anything contained in this Assignment, the Consent and Agreement or the Engine
Consent and Agreement to the contrary notwithstanding, but without in any way
releasing Assignor from any of its duties or obligations under the Purchase
Agreement, the General Terms Agreement or this Assignment, Assignee and
Mortgagee confirm for the benefit of Manufacturer and Engine Manufacturer,
respectively, that, insofar as the provisions of the Purchase Agreement or the
Engine Warranties relate to the Aircraft or the Engines, as the case may be, in
exercising any rights under the Purchase Agreement or the Engine Warranties, or
in making any claim with respect to the Aircraft or other goods and services
delivered or to be delivered pursuant to the Purchase Agreement or the Engine
Warranties, the terms and conditions of the Purchase Agreement and the Engine
Warranties including, without limitation, the Disclaimer and Release and
Exclusion of Liabilities provisions of Article 12, including without limitation
Exhibit B (the "Product Assurance Document") and Exhibit C (the "Customer
Support Document") of the Purchase Agreement shall apply to, and be binding
upon, Assignee and Mortgagee to the same extent as Assignor.
Section 5. PRESERVATION OF RIGHTS. Nothing contained in this
Assignment shall in any way diminish or limit the provisions of Assignor's
indemnity in Section 9 of the Participation Agreement with respect to any
liability of Assignee to Manufacturer in any way relating to or arising out of
the Purchase Agreement. Nothing contained in this Assignment shall subject
Manufacturer or Engine Manufacturer to any obligation or liability to which it
would not otherwise be subject under the Purchase Agreement or under the General
Terms Agreement, as the case may be, or modify in any respect the contract
rights of Manufacturer or Engine Manufacturer thereunder, except as may be
provided in the Consent and Agreement and the Engine Consent and Agreement, or
require Manufacturer to divest itself of title to or possession of the Aircraft
or other goods and services until delivery thereof and payment therefor as
provided in the Purchase Agreement or subject Manufacturer or Engine
Manufacturer to any multiple or duplicative liability or obligation under the
Purchase Agreement or the General Terms Agreement, as the case may be. No
further assignment of the Engine Warranties, including without limitation
assignments for security purposes (other than under the Trust Indenture), are
permitted without the express written consent of Engine Manufacturer.
Section 6. APPOINTMENT OF ATTORNEY. Effective at any time when a
Lease Event of Default shall have occurred and be continuing, (i) unless
Assignee and Mortgagee (so long as the Lien of the Trust Indenture has not been
discharged), in their sole discretion, shall notify Manufacturer or Engine
Manufacturer, as the case may be, to the contrary, the authorization given to
Assignor under Section 3 hereof to enforce such rights and claims shall
henceforth cease to be effective and Assignee and its successors and permitted
assigns shall, to the exclusion of Assignor, be entitled to assert and enforce
such rights and claims as substitute party plaintiff or otherwise, and Assignor
shall, at the request of Assignee or its successors or permitted assigns and at
Assignor's expense, cooperate with and take such action as is reasonably
necessary to enable Assignee and its successors and permitted assigns to enforce
such rights and claims, and (ii) Assignor does hereby constitute Assignee, its
successors and permitted assigns, Assignor's true and lawful attorney,
irrevocably, with full power (in the name of Assignor or otherwise) to ask,
require, demand, receive, compound and give acquittance for any and all monies
and claims for monies due and to become due under, or arising out of, the
Purchase Agreement in respect of the Aircraft or the Engine Warranties in
respect of the Engines, as the case may be, to the extent that the same have
been assigned by this Assignment and, for such period as Assignee may exercise
rights with respect thereto under this Assignment, to endorse any checks or
other instruments or orders in connection therewith and to file any claims or
take any action or institute (or, if previously commenced, assume control of)
any proceeding and to obtain any recovery in connection therewith which Assignee
may deem to be necessary or advisable in the premises.
Section 7. OTHER ACTION. Assignor agrees that, at Assignor's sole
cost and expense, at any time and from time to time, upon the written request of
Assignee or, so long as the Lien of the Trust Indenture has not been discharged,
Mortgagee, Assignor will promptly and duly execute and deliver any and all such
further instruments and documents and take such further action as Assignee or,
so long as the Lien of the Trust Indenture has not been discharged, Mortgagee,
may reasonably request in order to obtain the full benefits of this Assignment
and of the rights and powers herein granted.
Section 8. ASSIGNOR'S REPRESENTATIONS AND WARRANTIES. Assignor does
hereby represent and warrant that the Purchase Agreement and the General Terms
Agreement are in full force and effect as to Assignor and are enforceable
against Assignor in accordance with their respective terms. Assignor does hereby
further represent and warrant that Assignor has, with the authorized execution
of the Consent and Agreement and the Engine Consent and Agreement, (i) received
all necessary consents to the assignment and transfer contemplated herein
(including without limitation the assignment and transfer contemplated herein of
Assignor's rights under the Purchase Agreement and the General Terms Agreement)
and (ii) assuming that the Consent and Agreement and the Engine Consent and
Agreement are in full force and effect, such consents are in full force and
effect and Assignor further represents and warrants that Assignor has not
assigned (except as assigned hereby) or pledged (except pursuant to the 737
Purchase Agreement Assignment dated as of November 27, 1996 between Lessee and
Manufacturer, the Lien of which will have been released at or prior to the
delivery of this Agreement), and hereby covenants that it will not during the
Term assign (except as assigned hereby) or pledge so long as this Assignment
shall remain in effect, the whole or any part of the rights hereby assigned or
any of its rights with respect to the Aircraft under the Purchase Agreement or
with respect to the Engines under the General Terms Agreement not assigned
hereby to anyone other than Assignee.
Section 9. PAYMENTS. Notwithstanding this Assignment and anything
herein to the contrary, all amounts that Manufacturer or Engine Manufacturer is
obligated to pay to Assignor under the Purchase Agreement with respect to the
Aircraft or under the General Terms Agreement with respect to the Engines,
including, without limitation, resulting from the enforcement of any warranty,
covenant, representation, indemnity or product support agreement thereunder or
the enforcement or exercise of any right or power thereunder or hereunder (in
the case of Manufacturer, a "Manufacturer Payment," and in the case of Engine
Manufacturer, an "Engine Manufacturer Payment") (excluding, however, from
Manufacturer Payments and Engine Manufacturer Payments any amounts Manufacturer
is obligated to pay to Assignor with respect to the rights reserved to Assignor
in Section 2 hereof), will be payable and applicable as follows: all
Manufacturer Payments and Engine Manufacturer Payments shall be paid to Assignor
unless and until Manufacturer or Engine Manufacturer, as the case may be, shall
have received written notice as set forth in Section 3 hereof from Assignee or
Mortgagee that a Lease Event of Default has occurred and is continuing,
whereupon Manufacturer or Engine Manufacturer, as the case may be, will, until
Manufacturer or Engine Manufacturer, as the case may be, shall have received
written notice from Assignee or Mortgagee that all Lease Events of Default have
been cured or waived, make any and all such payments directly to Assignee (or,
so long as the Trust Indenture has not been discharged and Manufacturer or
Engine Manufacturer, as the case may be, shall have received notice thereof, to
Mortgagee). Any amounts received by Assignee pursuant to the immediately
preceding sentence shall, to the extent not theretofore applied in satisfaction
of sums owing to Assignee in accordance with the terms of the Operative
Agreements, be held and invested as provided in Section 4.4 of the Lease.
Section 10. ASSIGNEE'S AGREEMENT. Assignee agrees that, during the
Term, except as otherwise contemplated by Section 2 hereof and unless a Lease
Event of Default shall have occurred and be continuing, it will not enter into
any agreement that would amend, modify, supplement, rescind, cancel or terminate
the Purchase Agreement or the General Terms Agreement in respect of the Aircraft
or the Engines without the prior written consent of Assignor.
Section 11. EXECUTION; COUNTERPARTS, ETC. This Assignment is
executed by Assignor and Assignee concurrently with the execution and delivery
of the Lease. This Assignment may be executed by the parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original,
and all of which counterparts, taken together, shall constitute one and the same
instrument. The section headings in this Assignment are for convenience of
reference only and shall not modify, define, expand or limit any of the terms or
provisions hereof.
Section 12. CONFIDENTIAL TREATMENT. Assignee agrees that it will not
disclose to any third party the terms of the Purchase Agreement or the General
Terms Agreement except (i) as required by applicable law or governmental
regulation, (ii) in connection with the financing of the Aircraft, (iii) as
permitted under Section 8 of the Participation Agreement as if this Assignment
were specifically referred to therein, (iv) with the consent of Assignor,
Manufacturer and the Engine Manufacturer (as the case may be) or (v) in
connection with any sale or lease of the Aircraft. Assignee further agrees that
in connection with any disclosures made as contemplated by clauses (ii) (except
in connection with the financing contemplated by the Participation Agreement),
(iii) (except as to clauses (C) and (E) and (F) of Section 8 of the
Participation Agreement) or (iv) of the preceding sentence, Assignee shall
instruct the entity to which such information is disclosed to treat such
information as confidential on the terms set forth in this Section 12.
Section 13. ASSIGNMENT TO MORTGAGEE. The right, title and interest
of Assignee in and to this Assignment has been assigned to and is subject to a
security interest in favor of Wilmington Trust Company, as Mortgagee under the
Trust Indenture, for the benefit of the Noteholders and the Indenture
Indemnitees referred to in such Trust Indenture, all to the extent provided in
such Trust Indenture. Assignor hereby consents to such assignment and to the
creation of such security interest in and to this Assignment.
SECTION 14. GOVERNING LAW. THIS ASSIGNMENT SHALL IN ALL RESPECTS BE
GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, INCLUDING ALL MATTERS OF
CONSTRUCTION, VALIDITY AND PERFORMANCE, WITHOUT GIVING EFFECT TO PRINCIPLES OF
CONFLICTS OF LAWS.
[This space intentionally left blank.]
IN WITNESS WHEREOF, the parties hereto have caused this Purchase
Agreement and Engine Warranties Assignment ___ to be duly executed as of the day
and year first above written.
CONTINENTAL AIRLINES, INC.
By
----------------------------------------
Name:
Title:
FIRST SECURITY BANK, NATIONAL ASSOCIATION,
not in its individual capacity but
solely as Owner Trustee
By
----------------------------------------
Name:
Title:
The undersigned, as Mortgagee for the benefit of the Note Holders
and Indenture Indemnitees and as assignee of, and holder of a security interest
in, the estate, right, title and interest of Assignee in and to the foregoing
Assignment pursuant to the terms of the Trust Indenture agrees to the terms of
the foregoing Assignment and agrees that its rights and remedies under the Trust
Indenture shall be subject to the terms and conditions of the foregoing
Assignment, including Sections 4 and 5 therein, and of the Purchase Agreement
and the General Terms Agreement.
WILMINGTON TRUST COMPANY,
as Mortgagee
By
----------------------------------------
Name:
Title:
MANUFACTURER CONSENT AND AGREEMENT ___
The undersigned, THE BOEING COMPANY, a Delaware corporation, hereby
acknowledges notice of and consents to all of the terms of Purchase Agreement
and Engine Warranties Assignment ___ (herein called the "Assignment") (the
defined terms therein being hereinafter used with the same meanings unless
otherwise defined herein) between Continental Airlines, Inc., as Assignor, and
First Security Bank, National Association, as Owner Trustee, as Assignee, and
hereby confirms to Assignee that: (i) all representations, warranties,
indemnities and agreements of Manufacturer under the Purchase Agreement with
respect to the Aircraft shall inure to the benefit of Assignee to the same
extent as if originally named the "Buyer" therein, except as provided by Section
2 of the Assignment; (ii) Assignee shall not be liable for any of the
obligations or duties of Assignor under the Purchase Agreement, nor shall the
Assignment give rise to any duties or obligations whatsoever on the part of
Assignee owing to Manufacturer, except as provided in Section 4 of the
Assignment; (iii) Manufacturer consents to the grant of a security interest in
the Aircraft pursuant to the Trust Indenture by Assignee and agrees that the
Assignment constitutes an agreement by Assignee as required by Article 10.2 of
the Purchase Agreement; and (iv) Manufacturer will continue to pay to Assignor
or its order all payments that Manufacturer may be required to make in respect
of the Aircraft under the Purchase Agreement unless and until Manufacturer shall
have received written notice from Assignee or Mortgagee addressed to its Vice -
President - Contracts at X.X. Xxx 0000, Mail Code 21-34, Xxxxxxx, Xxxxxxxxxx
00000-0000, if by mail, or to (000) 000-0000, if by facsimile, that a Lease
Event of Default has occurred and is continuing or the Lease has been terminated
(unless Assignor or its designee has acquired ownership of the Aircraft pursuant
to the Operative Agreements and Assignor has given written notice thereof to
Manufacturer), whereupon Manufacturer will not be required to make further
inquiry into the content of such notice and will make any and all payments that
it may be required thereafter to make in respect of the Aircraft under the
Purchase Agreement and the right to receive that has been assigned under the
Assignment, directly to Assignee at its address at 00 Xxxxx Xxxx Xxxxxx, Xxxxx
Xxxxx, Xxxx Xxxx Xxxx, Xxxx 00000, Attn: Corporate Trust Department (or, so long
as the Trust Indenture has not been discharged, directly to Mortgagee at its
address at Xxxxxx Square North, 0000 Xxxxx Xxxxxx Xxxxxx, Xxxxxxxxxx, Xxxxxxxx
00000, Attn: Corporate Trust Administration), unless and until Manufacturer
shall have received notice in writing from Assignee or Mortgagee that no Lease
Event of Default is continuing, whereupon Manufacturer shall make all payments
that Manufacturer may be required to make in respect of the Aircraft under the
Purchase Agreement to Assignor or its order, as aforesaid.
Manufacturer hereby represents and warrants that: (i) Manufacturer
is a corporation duly organized, validly existing and in good standing under the
laws of the State of Delaware; (ii) the making and performance of the Purchase
Agreement and this Manufacturer Consent and Agreement ___ have been duly
authorized by all necessary corporate action on the part of Manufacturer, do not
require any stockholder approval and do not contravene Manufacturer's Restated
Certificate of Incorporation or By-laws or any indenture, credit agreement or
other contractual agreement to which Manufacturer is a party or by which it is
bound and the making of the Purchase Agreement and this Manufacturer Consent and
Agreement ___, the giving of the warranty obligations thereunder, do not, as to
such making or giving, contravene any law binding on Manufacturer; and (iii) the
Purchase Agreement constituted, as of the date thereof and at all times
thereafter to and including the date of this Manufacturer Consent and Agreement
___, and this Manufacturer Consent and Agreement ___ constitutes, binding
obligations of Manufacturer enforceable against Manufacturer in accordance with
their respective terms subject to (A) the limitations of applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the rights of
creditors generally and (B) general principles of equity (regardless of whether
such enforceability is considered in a proceeding in equity or at law), which
principles do not make the remedies available at law or in equity with respect
to the Purchase Agreement and this Manufacturer Consent and Agreement ___
inadequate for the practical realization of the benefits intended to be provided
thereby. It is understood that the execution of this Manufacturer Consent and
Agreement ___ by Manufacturer is subject to the condition that, concurrently
with the delivery of the Aircraft to Assignee, Assignee shall lease the Aircraft
to Assignor under the Lease.
THIS MANUFACTURER CONSENT AND AGREEMENT ___ SHALL IN ALL RESPECTS BE
GOVERNED BY THE INTERNAL LAWS OF THE STATE OF WASHINGTON, INCLUDING ALL MATTERS
OF CONSTRUCTION, VALIDITY AND PERFORMANCE, WITHOUT REFERENCE TO CONFLICTS OF
LAWS PRINCIPLES.
Dated as of ____________.
THE BOEING COMPANY
By
----------------------------------------
Name:
Title:
ENGINE MANUFACTURER CONSENT AND AGREEMENT ___
The undersigned, CFM INTERNATIONAL INC., a Delaware corporation,
hereby acknowledges notice of and consents to all of the terms of Purchase
Agreement and Engine Warranties Assignment ___ (herein called the "Assignment")
(the defined terms therein being hereinafter used with the same meanings unless
otherwise defined herein) between Continental Airlines, Inc., as Assignor, and
First Security Bank, National Association, as Owner Trustee, as Assignee. Under
the General Terms Agreement, Engine Manufacturer has agreed to support certain
CFM Model 56-7B26 engines and spare parts therefor purchased by Assignor from
Engine Manufacturer, as installed on certain Boeing Model 737 aircraft. Engine
Manufacturer hereby confirms to Assignor and Assignee that the Engine
Warranties, as and to the extent that such relate to the Engines, shall inure to
the benefit of Assignee (and, so long as the Trust Indenture has not been
discharged, Mortgagee) to the same extent as if originally named "Airline" in
the General Terms Agreement and to the benefit of Assignor (but only to the
extent provided for in the Assignment) in each case subject to the terms and
conditions of the Assignment; provided, that Engine Manufacturer shall not owe
any liability or obligation under the Engine Warranties more than once in total.
Engine Manufacturer represents and warrants that:
1. It is a corporation duly organized and validly existing in good
standing under the laws of the State of Delaware;
2. The making and performance of this Engine Manufacturer Consent
and Agreement ___ in accordance with its terms have been duly authorized by all
necessary corporate action on the part of Engine Manufacturer, do not require
any stockholder approval and do not contravene its Certificate of Incorporation
or by-laws or any debenture, credit agreement or other contractual agreement to
which Engine Manufacturer is a party or by which it is bound or any law binding
on Engine Manufacturer;
3. The making and performance of the Engine Warranties in accordance
with their terms have been duly authorized by all necessary corporate action on
the part of Engine Manufacturer, do not require any stockholder approval and do
not contravene Engine Manufacturer's Certificate of Incorporation or by-laws or
any debenture, credit agreement or other contractual agreement to which Engine
Manufacturer is a party or by which it is bound, and do not, as to the making
thereof, contravene any law binding on Engine Manufacturer, and to the best of
its knowledge, do not as to the performance thereof contravene any law binding
on Engine Manufacturer; and
4. The Engine Warranties constituted as of the date on which they
were made and at all times thereafter to and including the date of this Engine
Manufacturer Consent and Agreement ___, and this Engine Manufacturer Consent and
Agreement ___ constitute binding obligations of Engine Manufacturer enforceable
against Engine Manufacturer in accordance with their respective terms subject
to:
(a) the limitations of applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the
rights of creditors generally; and
(b) general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or
at law).
[This space intentionally left blank.]
THIS ENGINE MANUFACTURER CONSENT AND AGREEMENT ___ SHALL IN ALL
RESPECTS BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, INCLUDING ALL MATTERS
OF CONSTRUCTION, VALIDITY AND PERFORMANCE, WITHOUT GIVING EFFECT TO PRINCIPLES
OF CONFLICTS OF LAWS.
Dated as of _____________.
CFM INTERNATIONAL, INC.
By
----------------------------------------
Name:
Title:
EXHIBIT A-4-II
NOTE PURCHASE AGREEMENT
FORM OF AIRCRAFT PURCHASE AGREEMENT ASSIGNMENT - GE
-----------------------------------------------------
| CONFIDENTIAL: SUBJECT TO RESTRICTIONS ON |
| DISSEMINATION SET FORTH IN SECTION 8 OF THE |
| PARTICIPATION AGREEMENT (AS DEFINED HEREIN) |
-----------------------------------------------------
PURCHASE AGREEMENT AND ENGINE WARRANTIES ASSIGNMENT [___]
PURCHASE AGREEMENT AND ENGINE WARRANTIES ASSIGNMENT [___], dated as
of [___________], between Continental Airlines, Inc., a Delaware corporation
("Assignor"), and First Security Bank, National Association, a national banking
association, not in its individual capacity but solely as Owner Trustee
("Assignee") under Trust Agreement [___] dated as of [___________] (the "Trust
Agreement"), between the Owner Participant named therein and Assignee, in its
individual capacity, and otherwise not in its individual capacity but solely as
trustee thereunder.
Assignor and Manufacturer (as such term and other capitalized terms
are hereinafter defined) are parties to the Purchase Agreement, providing, among
other things, for the manufacture and sale by Manufacturer or Manufacturer's
wholly owned subsidiary to Assignor of certain aircraft, engines and related
equipment, including the Aircraft. Assignor and Engine Manufacturer are parties
to the General Terms Agreement, containing, among other terms and conditions,
the Engine Warranties.
Assignee wishes to acquire the Aircraft and Assignor, on the terms
and conditions hereinafter set forth, is willing to assign to Assignee certain
of Assignor's rights and interests under the Purchase Agreement and the General
Terms Agreement and Assignee is willing to accept such assignment, as
hereinafter set forth.
AGREEMENTS
The parties hereto agree as follows:
Section 1. DEFINITIONS. For all purposes of this Assignment, except
as otherwise expressly provided or unless the context otherwise requires, the
following terms shall have the following meanings:
AIRCRAFT - The Boeing Model [767-424] [767-224] aircraft bearing
Manufacturer's Serial No. [______] and U.S. Registration No. N[_________], to be
financed pursuant to the Participation Agreement, including the Engines.
AGTA - The Aircraft General Terms Agreement AGTA-CAL between the
Manufacturer and Lessee, dated October 10, 1997.
ENGINES - Two General Electric Company [CF6-80C2B8F] series engines
bearing manufacturer's serial numbers [______] and [______], respectively,
installed on the Aircraft.
ENGINE MANUFACTURER - General Electric Company, a New York
corporation, and its successors and assigns.
ENGINE WARRANTIES - Engine Manufacturer's "New Engine Warranty,"
"New Parts Warranty," "Ultimate Life Warranty" and "Campaign Change Warranty,"
as set forth in the Engine Manufacturer's Engine Product Support Plan which
forms a part of the General Terms Agreement, and as limited by the applicable
terms of the General Terms Agreement and such Engine Product Support Plan.
GENERAL TERMS AGREEMENT - The Amended and Restated General Terms
Agreement No. 6-8057, dated as of November 1, 1994, by and between Engine
Manufacturer and Assignor, including the "Engine Product Support Plan" at
Exhibit B thereto, insofar as such Engine Product Support Plan relates to the
Engine Warranties, but excluding any and all letter agreements attached thereto,
to the extent that such General Terms Agreement and such Exhibit relate to the
Engine Warranties, as such General Terms Agreement may hereafter be amended,
supplemented and modified to the extent permitted by the terms of this
Assignment to the extent relating to the Engines.
LEASE - The Lease Agreement [___], dated as of [___________], as at
any time amended, supplemented and modified, between Assignee, as lessor, and
Assignor, as lessee, providing for the lease of the Aircraft.
MANUFACTURER - The Boeing Company, a Delaware corporation, and its
successors and assigns.
PARTICIPATION AGREEMENT - The Participation Agreement [___], dated
as of [___________], among Assignor, the Participants, Assignee and Mortgagee,
as at any time amended, supplemented and modified.
PURCHASE AGREEMENT - Purchase Agreement No. [2060, dated as of
October 10, 1997,] [2211, dated as of November 16, 1998] between Manufacturer
and Assignor, providing, among other things, for the manufacture and sale by
Manufacturer to Assignor of certain Boeing Model [767-424] [767-224] aircraft
(including the Aircraft) and including as part thereof Xxxxxxxx [X, X, XXX0, XX0
and SLP1] thereto and the AGTA (as and to the extent incorporated by reference
in the Purchase Agreement and including Exhibit C to the AGTA and excluding the
other Exhibits and Letter Agreements hereto), but excluding all other exhibits
and letter and supplemental agreements, to the extent that such Purchase
Agreement and such Exhibits relate to the Aircraft, as such Purchase Agreement
may hereafter be amended, supplemented and modified to the extent permitted by
the terms of this Assignment.
Capitalized terms used but not defined herein shall have the
respective meanings set forth or incorporated by reference, and shall be
construed and interpreted in the manner described, in the Participation
Agreement.
Section 2. ASSIGNMENT. Assignor does hereby sell, assign, transfer
and set over unto Assignee and its successors and permitted assigns all of
Assignor's rights and interests in and to the Purchase Agreement, as and only to
the extent that the same relates to the Aircraft, and in and to the General
Terms Agreement, as and only to the extent that the Engine Warranties contained
therein relate to the Engines, except to the extent reserved below, including
without limitation in such assignment (a) all claims for damages in respect of
the Aircraft and the Engines arising as a result of any default by Manufacturer
under the Purchase Agreement or Engine Manufacturer or any other vendor or
supplier of other parts or equipment installed on or in the Aircraft, including
without limitation all warranty service life policies, aircraft performance
guarantees and indemnity provisions contained in the Purchase Agreement and the
Engine Warranties, and all claims arising thereunder, in respect of the Aircraft
and the Engines, (b) any and all rights of Assignor to compel performance of the
terms of the Purchase Agreement in respect of the Aircraft and the Engine
Warranties in respect of the Engines and (c) the right to purchase and take
title to the Aircraft pursuant to the Purchase Agreement; reserving to Assignor,
however, with respect to the Aircraft and each Engine, (i) all rights to receive
any credits due to Assignor with respect to the purchase price of the Aircraft
pursuant to the Purchase Agreement and of the Engines pursuant to the General
Terms Agreement, (ii) all of Assignor's rights and interests in or arising out
of any payments or deposits made relating to the Aircraft or to be made by
Assignor or amounts credited or to be credited or paid or to be paid by the
Manufacturer to the Assignor in respect of the Aircraft and (iii) so long and
only so long as the Aircraft and each Engine shall be subject to the Lease and
no Lease Event of Default shall have occurred and be continuing thereunder, the
rights (A) to demand, accept and retain all rights in and to all property (other
than the Aircraft), data and services that Manufacturer or Engine Manufacturer
is obligated to provide or does provide pursuant to the Purchase Agreement or
the General Terms Agreement, as the case may be, and (B) to obtain services,
training, data and demonstration and test flights pursuant to the Purchase
Agreement or the General Terms Agreement, as the case may be.
Assignee hereby accepts such assignment subject to the terms hereof.
Assignor has furnished a true copy of the Purchase Agreement and a true copy of
the General Terms Agreement to Assignee and has specifically directed Assignee's
attention to Section 12 of Part 2, Section 5 of Part 3, Section 6 of Part 5 and
Section 3 of Part 6 of Exhibit C to the AGTA.
Section 3. EXERCISE OF RIGHTS OF "CUSTOMER" UNDER PURCHASE AGREEMENT
AND OF "AIRLINE" UNDER GENERAL TERMS AGREEMENT. Notwithstanding the foregoing,
if and so long as no Lease Event of Default shall have occurred and be
continuing, Assignee authorizes Assignor, to the exclusion of Assignee, during
the Term, to exercise in Assignor's name all rights and powers of the "Customer"
in respect of the Aircraft under the Purchase Agreement and of the "Airline" in
respect of each Engine under the General Terms Agreement, and of Assignee in
respect of a default by any vendor or supplier of parts and equipment (as
specified in clause (a) of Section 2 above) and to retain any recovery or
benefit resulting from the enforcement of any warranty or indemnity under the
Purchase Agreement or the General Terms Agreement in respect of the Aircraft or
each Engine, as the case may be, except that Assignor may not enter into any
change order or other amendment, modification or supplement to the Purchase
Agreement without the written consent or countersignature of Assignee if such
change order, amendment, modification or supplement would (i) result in any
rescission, cancellation or termination of the Purchase Agreement in respect of
the Aircraft or (ii) materially diminish the rights assigned hereunder to
Assignee. Assignee agrees that, as between Assignee and Manufacturer or Engine
Manufacturer, as the case may be (and without affecting Assignor's duties or
obligations under the Participation Agreement or the Lease), neither
Manufacturer nor Engine Manufacturer, as the case may be, shall be deemed to
have knowledge of any Lease Default, Lease Event of Default, declaration of
default or the discontinuance or remedy thereof or the Aircraft or either Engine
being no longer subject to the Lease or any change in the authority of Assignor
or Assignee, as the case may be, to exercise any of the rights established
hereunder unless and until Manufacturer shall have received written notice
thereof from Assignee or Mortgagee addressed to its Vice President - Contracts
at X.X. Xxx 0000, Mail Code 21-34, Xxxxxxx, Xxxxxxxxxx 00000-0000, if by mail,
or to (000) 000-0000, if by facsimile, or, in the case of Engine Manufacturer,
Engine Manufacturer shall have received written notice thereof from Assignee or
Mortgagee addressed to General Electric Company, GE Aircraft Engines, Xxx Xxxxxx
Xxx, Xxxxxxxxxx, Xxxx 00000-0000, Attention: Director, Commercial Contracts, if
by facsimile. So long as Manufacturer and Engine Manufacturer act in good faith,
Manufacturer and Engine Manufacturer may rely conclusively on any such notice
without inquiring as to the accuracy of, or the entitlement of the party to
give, such notice.
The Engine Manufacturer shall not be deemed to have knowledge of the
replacement of an Engine with another CF6-80C2B8F engine, until the Engine
Manufacturer has received written notice thereof. Such notice shall include the
serial number of the Engine being replaced, as well as the serial number of the
replacement Engine and shall be sent to: Lease Pool Manager, Customer Support
Operation, GE Aircraft Engines, 000 Xxxxxxxx Xxxxxx, Xxxx 000, Xxxxxxxxxx, Xxxx
00000.
Section 4. CERTAIN AGREEMENTS. It is expressly agreed that, anything
herein contained to the contrary notwithstanding:
(a) Assignor shall at all times remain liable (i) to Manufacturer
under the Purchase Agreement to perform all the duties and obligations of
the "Customer" thereunder and (ii) to Engine Manufacturer under the
General Terms Agreement to perform all the duties and obligations of the
"Airline" thereunder, in each case to the same extent as if this
Assignment had not been executed,
(b) the exercise by Assignee of any of the rights assigned hereunder
shall not release Assignor from any of its duties or obligations to
Manufacturer under the Purchase Agreement or to Engine Manufacturer under
the General Terms Agreement except to the extent that such exercise by
Assignee shall constitute performance of such duties and obligations, and
(c) except as provided in the next sentence, none of Assignee,
Mortgagee or any Participant shall have any obligation or liability under
the Purchase Agreement or the General Terms Agreement by reason of, or
arising out of, this Assignment or be obligated to perform any of the
obligations or duties of Assignor under the Purchase Agreement or the
General Terms Agreement or to make any payment thereunder or to make any
inquiry as to the sufficiency of any payment received by any of them or to
present or file any claim or to take any other action to collect or
enforce any claim for any payment assigned hereunder.
Anything contained in this Assignment, the Consent and Agreement or the
Engine Consent and Agreement to the contrary notwithstanding, but without in
any way releasing Assignor from any of its duties or obligations under the
Purchase Agreement, the General Terms Agreement or this Assignment, Assignee
and Mortgagee confirm for the benefit of Manufacturer and Engine
Manufacturer, respectively, that, insofar as the provisions of the Purchase
Agreement or the Engine Warranties relate to the Aircraft or the Engines, as
the case may be, in exercising any rights under the Purchase Agreement or the
Engine Warranties, or in making any claim with respect to the Aircraft or
other goods and services delivered or to be delivered pursuant to the
Purchase Agreement or the Engine Warranties, the terms and conditions of the
Purchase Agreement and the Engine Warranties including, without limitation,
the Disclaimer and Release and the Exclusion of Consequential and Other
Damages provisions of Article 11 of Part 2 of Exhibit C and Article 8 to the
AGTA, including without limitation Exhibit B (the "Product Assurance
Document") shall apply to, and be binding upon, Assignee and Mortgagee to the
same extent as Assignor.
Section 5. PRESERVATION OF RIGHTS. Nothing contained in this
Assignment shall in any way diminish or limit the provisions of Assignor's
indemnity in Section 9 of the Participation Agreement with respect to any
liability of Assignee to Manufacturer in any way relating to or arising out of
the Purchase Agreement. Nothing contained in this Assignment shall subject
Manufacturer or Engine Manufacturer to any obligation or liability to which it
would not otherwise be subject under the Purchase Agreement or under the General
Terms Agreement, as the case may be, or modify in any respect the contract
rights of Manufacturer or Engine Manufacturer thereunder, except as may be
provided in the Consent and Agreement and the Engine Consent and Agreement, or
require Manufacturer to divest itself of title to or possession of the Aircraft
or other goods and services until delivery thereof and payment therefor as
provided in the Purchase Agreement or subject Manufacturer or Engine
Manufacturer to any multiple or duplicative liability or obligation under the
Purchase Agreement or the General Terms Agreement, as the case may be. No
further assignment of the Engine Warranties, including without limitation
assignments for security purposes (other than under the Trust Indenture), are
permitted without the express written consent of Engine Manufacturer.
Section 6. APPOINTMENT OF ATTORNEY. Effective at any time when a
Lease Event of Default shall have occurred and be continuing, (i) unless
Assignee and Mortgagee (so long as the Lien of the Trust Indenture has not been
discharged), in their sole discretion, shall notify Manufacturer or Engine
Manufacturer, as the case may be, to the contrary, the authorization given to
Assignor under Section 3 hereof to enforce such rights and claims shall
henceforth cease to be effective and Assignee and its successors and permitted
assigns shall, to the exclusion of Assignor, be entitled to assert and enforce
such rights and claims as substitute party plaintiff or otherwise, and Assignor
shall, at the request of Assignee or its successors or permitted assigns and at
Assignor's expense, cooperate with and take such action as is reasonably
necessary to enable Assignee and its successors and permitted assigns to enforce
such rights and claims, and (ii) Assignor does hereby constitute Assignee, its
successors and permitted assigns, Assignor's true and lawful attorney,
irrevocably, with full power (in the name of Assignor or otherwise) to ask,
require, demand, receive, compound and give acquittance for any and all monies
and claims for monies due and to become due under, or arising out of, the
Purchase Agreement in respect of the Aircraft or the Engine Warranties in
respect of the Engines, as the case may be, to the extent that the same have
been assigned by this Assignment and, for such period as Assignee may exercise
rights with respect thereto under this Assignment, to endorse any checks or
other instruments or orders in connection therewith and to file any claims or
take any action or institute (or, if previously commenced, assume control of)
any proceeding and to obtain any recovery in connection therewith which Assignee
may deem to be necessary or advisable in the premises.
Section 7. OTHER ACTION. Assignor agrees that, at Assignor's sole
cost and expense, at any time and from time to time, upon the written request of
Assignee or, so long as the Lien of the Trust Indenture has not been discharged,
Mortgagee, Assignor will promptly and duly execute and deliver any and all such
further instruments and documents and take such further action as Assignee or,
so long as the Lien of the Trust Indenture has not been discharged, Mortgagee,
may reasonably request in order to obtain the full benefits of this Assignment
and of the rights and powers herein granted.
Section 8. ASSIGNOR'S REPRESENTATIONS AND WARRANTIES. Assignor does
hereby represent and warrant that the Purchase Agreement and the General Terms
Agreement are in full force and effect as to Assignor and are enforceable
against Assignor in accordance with their respective terms. Assignor does hereby
further represent and warrant that Assignor has, with the authorized execution
of the Consent and Agreement and the Engine Consent and Agreement, (i) received
all necessary consents to the assignment and transfer contemplated herein
(including without limitation the assignment and transfer contemplated herein of
Assignor's rights under the Purchase Agreement and the General Terms Agreement)
and (ii) assuming that the Consent and Agreement and the Engine Consent and
Agreement are in full force and effect, such consents are in full force and
effect and Assignor further represents and warrants that Assignor has not
assigned (except as assigned hereby) or pledged (except pursuant to the 767
Purchase Agreement Assignment dated as of October 10, 1997 between Lessee and
Manufacturer, the Lien of which will have been released at or prior to the
delivery of this Agreement), and hereby covenants that it will not during the
Term assign (except as assigned hereby) or pledge so long as this Assignment
shall remain in effect, the whole or any part of the rights hereby assigned or
any of its rights with respect to the Aircraft under the Purchase Agreement or
with respect to the Engines under the General Terms Agreement not assigned
hereby to anyone other than Assignee.
Section 9. PAYMENTS. Notwithstanding this Assignment and anything
herein to the contrary, all amounts that Manufacturer or Engine Manufacturer is
obligated to pay to Assignor under the Purchase Agreement with respect to the
Aircraft or under the General Terms Agreement with respect to the Engines,
including, without limitation, resulting from the enforcement of any warranty,
covenant, representation, indemnity or product support agreement thereunder or
the enforcement or exercise of any right or power thereunder or hereunder (in
the case of Manufacturer, a "Manufacturer Payment," and in the case of Engine
Manufacturer, an "Engine Manufacturer Payment") (excluding, however, from
Manufacturer Payments and Engine Manufacturer Payments any amounts Manufacturer
is obligated to pay to Assignor with respect to the rights reserved to Assignor
in Section 2 hereof), will be payable and applicable as follows: all
Manufacturer Payments and Engine Manufacturer Payments shall be paid to Assignor
unless and until Manufacturer or Engine Manufacturer, as the case may be, shall
have received written notice as set forth in Section 3 hereof from Assignee or
Mortgagee that a Lease Event of Default has occurred and is continuing,
whereupon Manufacturer or Engine Manufacturer, as the case may be, will, until
Manufacturer or Engine Manufacturer, as the case may be, shall have received
written notice from Assignee or Mortgagee that all Lease Events of Default have
been cured or waived, make any and all such payments directly to Assignee (or,
so long as the Trust Indenture has not been discharged and Manufacturer or
Engine Manufacturer, as the case may be, shall have received notice thereof, to
Mortgagee). Any amounts received by Assignee pursuant to the immediately
preceding sentence shall, to the extent not theretofore applied in satisfaction
of sums owing to Assignee in accordance with the terms of the Operative
Agreements, be held and invested as provided in Section 4.4 of the Lease.
Section 10. ASSIGNEE'S AGREEMENT. Assignee agrees that, during the
Term, except as otherwise contemplated by Section 2 hereof and unless a Lease
Event of Default shall have occurred and be continuing, it will not enter into
any agreement that would amend, modify, supplement, rescind, cancel or terminate
the Purchase Agreement or the General Terms Agreement in respect of the Aircraft
or the Engines without the prior written consent of Assignor.
Section 11. EXECUTION; COUNTERPARTS, ETC. This Assignment is
executed by Assignor and Assignee concurrently with the execution and delivery
of the Lease. This Assignment may be executed by the parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original,
and all of which counterparts, taken together, shall constitute one and the same
instrument. The section headings in this Assignment are for convenience of
reference only and shall not modify, define, expand or limit any of the terms or
provisions hereof.
Section 12. CONFIDENTIAL TREATMENT. Assignee agrees that it will not
disclose to any third party the terms of the Purchase Agreement or the General
Terms Agreement except (i) as required by applicable law or governmental
regulation, (ii) in connection with the financing of the Aircraft, (iii) as
permitted under Section 8 of the Participation Agreement as if this Assignment
were specifically referred to therein, (iv) with the consent of Assignor,
Manufacturer and the Engine Manufacturer (as the case may be) or (v) in
connection with any sale or lease of the Aircraft. Assignee further agrees that
in connection with any disclosures made as contemplated by clauses (ii) (except
in connection with the financing contemplated by the Participation Agreement),
(iii) (except as to clauses (C) and (E) and (F) of Section 8 of the
Participation Agreement) or (iv) of the preceding sentence, Assignee shall
instruct the entity to which such information is disclosed to treat such
information as confidential on the terms set forth in this Section 12.
Section 13. ASSIGNMENT TO MORTGAGEE. The right, title and interest
of Assignee in and to this Assignment has been assigned to and is subject to a
security interest in favor of Wilmington Trust Company, as Mortgagee under the
Trust Indenture, for the benefit of the Noteholders and the Indenture
Indemnitees referred to in such Trust Indenture, all to the extent provided in
such Trust Indenture. Assignor hereby consents to such assignment and to the
creation of such security interest in and to this Assignment.
SECTION 14. GOVERNING LAW. THIS ASSIGNMENT SHALL IN ALL RESPECTS BE
GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, INCLUDING ALL MATTERS OF
CONSTRUCTION, VALIDITY AND PERFORMANCE, WITHOUT GIVING EFFECT TO PRINCIPLES OF
CONFLICTS OF LAWS.
[This space intentionally left blank.]
IN WITNESS WHEREOF, the parties hereto have caused this Purchase
Agreement and Engine Warranties Assignment [___] to be duly executed as of the
day and year first above written.
CONTINENTAL AIRLINES, INC.
By
----------------------------------------
Name:
Title:
FIRST SECURITY BANK, NATIONAL ASSOCIATION,
not in its individual capacity
but solely as Owner Trustee
By
----------------------------------------
Name:
Title:
The undersigned, as Mortgagee for the benefit of the Note Holders
and Indenture Indemnitees and as assignee of, and holder of a security
interest in, the estate, right, title and interest of Assignee in and to the
foregoing Assignment pursuant to the terms of the Trust Indenture agrees to
the terms of the foregoing Assignment and agrees that its rights and remedies
under the Trust Indenture shall be subject to the terms and conditions of the
foregoing Assignment, including Sections 4 and 5 therein, and of the Purchase
Agreement and the General Terms Agreement.
WILMINGTON TRUST COMPANY,
as Mortgagee
By
----------------------------------------
Name:
Title:
MANUFACTURER CONSENT AND AGREEMENT
The undersigned, THE BOEING COMPANY, a Delaware corporation, hereby
acknowledges notice of and consents to all of the terms of Purchase Agreement
and Engine Warranties Assignment [___] (herein called the "Assignment") (the
defined terms therein being hereinafter used with the same meanings unless
otherwise defined herein) between Continental Airlines, Inc., as Assignor, and
First Security Bank, National Association, as Owner Trustee, as Assignee, and
hereby confirms to Assignee that: (i) all representations, warranties,
indemnities and agreements of Manufacturer under the Purchase Agreement with
respect to the Aircraft shall inure to the benefit of Assignee to the same
extent as if originally named the "Customer" therein, except as provided by
Section 2 of the Assignment; (ii) Assignee shall not be liable for any of the
obligations or duties of Assignor under the Purchase Agreement, nor shall the
Assignment give rise to any duties or obligations whatsoever on the part of
Assignee owing to Manufacturer, except as provided in Section 4 of the
Assignment; (iii) Manufacturer consents to the grant of a security interest in
the Aircraft pursuant to the Trust Indenture by Assignee and agrees that the
Assignment constitutes an agreement by Assignee as required by Article 9.2 of
the AGTA; and (iv) Manufacturer will continue to pay to Assignor or its order
all payments that Manufacturer may be required to make in respect of the
Aircraft under the Purchase Agreement unless and until Manufacturer shall have
received written notice from Assignee or Mortgagee addressed to its Vice -
President - Contracts at X.X. Xxx 0000, Mail Code 21-34, Xxxxxxx, Xxxxxxxxxx
00000-0000, if by mail, or to (000) 000-0000, if by facsimile, that a Lease
Event of Default has occurred and is continuing, whereupon Manufacturer will not
be required to make further inquiry into the content of such notice and will
make any and all payments that it may be required thereafter to make in respect
of the Aircraft under the Purchase Agreement and the right to receive that has
been assigned under the Assignment, directly to Assignee at its address at 00
Xxxxx Xxxx Xxxxxx, Xxxxx Xxxxx, Xxxx Xxxx Xxxx, Xxxx 00000, Attn: Corporate
Trust Department (or, so long as the Trust Indenture has not been discharged,
directly to Mortgagee at its address at Xxxxxx Square North, 0000 Xxxxx Xxxxxx
Xxxxxx, Xxxxxxxxxx, Xxxxxxxx 00000, Attn: Corporate Trust Administration),
unless and until Manufacturer shall have received notice in writing from
Assignee or Mortgagee that no Lease Event of Default is continuing, whereupon
Manufacturer shall make all payments that Manufacturer may be required to make
in respect of the Aircraft under the Purchase Agreement to Assignor or its
order, as aforesaid.
Manufacturer hereby represents and warrants that: (i) Manufacturer
is a corporation duly organized, validly existing and in good standing under the
laws of the State of Delaware; (ii) the making and performance of the Purchase
Agreement and this Manufacturer Consent and Agreement [___] have been duly
authorized by all necessary corporate action on the part of Manufacturer, do not
require any stockholder approval and do not contravene Manufacturer's Restated
Certificate of Incorporation or By-laws or any indenture, credit agreement or
other contractual agreement to which Manufacturer is a party or by which it is
bound and the making of the Purchase Agreement and this Manufacturer Consent and
Agreement [___], the giving of the warranty obligations thereunder, do not, as
to such making or giving, contravene any law binding on Manufacturer; and (iii)
the Purchase Agreement constituted, as of the date thereof and at all times
thereafter to and including the date of this Manufacturer Consent and Agreement
[___], and this Manufacturer Consent and Agreement [___] constitutes, binding
obligations of Manufacturer enforceable against Manufacturer in accordance with
their respective terms subject to (A) the limitations of applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the rights of
creditors generally and (B) general principles of equity (regardless of whether
such enforceability is considered in a proceeding in equity or at law), which
principles do not make the remedies available at law or in equity with respect
to the Purchase Agreement and this Manufacturer Consent and Agreement [___]
inadequate for the practical realization of the benefits intended to be provided
thereby. It is understood that the execution of this Manufacturer Consent and
Agreement [___] by Manufacturer is subject to the condition that, concurrently
with the delivery of the Aircraft to Assignee, Assignee shall lease the Aircraft
to Assignor under the Lease.
THIS MANUFACTURER CONSENT AND AGREEMENT [___] SHALL IN ALL RESPECTS
BE GOVERNED BY THE INTERNAL LAWS OF THE STATE OF WASHINGTON, INCLUDING ALL
MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, WITHOUT REFERENCE TO
CONFLICTS OF LAWS PRINCIPLES.
Dated as of _________ __, ____.
THE BOEING COMPANY
By
----------------------------------------
Name:
Title:
MSN: ______
ENGINE MANUFACTURER CONSENT AND AGREEMENT
The undersigned, GENERAL ELECTRIC COMPANY, a New York corporation, hereby
acknowledges notice of and consents to all of the terms of Purchase Agreement
and Engine Warranties Assignment [___] (herein called the "Assignment") (the
defined terms therein being hereinafter used with the same meanings unless
otherwise defined herein) between Continental Airlines, Inc., as Assignor, and
First Security Bank, National Association, as Owner Trustee, as Assignee. Under
the General Terms Agreement, Engine Manufacturer has agreed to support certain
[CF6-80C2B8F] [CF6-80C2B4F] engines and spare parts therefor purchased by
Assignor from Engine Manufacturer, as installed on certain Boeing Model
[767-424] [767-224] aircraft. Engine Manufacturer hereby confirms to Assignor
and Assignee that the Engine Warranties, as and to the extent that such relate
to the Engines, shall inure to the benefit of Assignee (and, so long as the
Trust Indenture has not been discharged, Mortgagee) to the same extent as if
originally named "Airline" in the General Terms Agreement and to the benefit of
Assignor (but only to the extent provided for in the Assignment) in each case
subject to the terms and conditions of the Assignment; PROVIDED, that Engine
Manufacturer shall not owe any liability or obligation under the Engine
Warranties more than once in total.
Engine Manufacturer represents and warrants that:
1. It is a corporation duly organized and validly existing in good
standing under the laws of the State of Delaware;
2. The making and performance of this Engine Manufacturer Consent and
Agreement [___] in accordance with its terms have been duly authorized by all
necessary corporate action on the part of Engine Manufacturer, do not require
any stockholder approval and do not contravene its Certificate of Incorporation
or by-laws or any debenture, credit agreement or other contractual agreement to
which Engine Manufacturer is a party or by which it is bound or any law binding
on Engine Manufacturer;
3. The making and performance of the Engine Warranties in accordance with
their terms have been duly authorized by all necessary corporate action on the
part of Engine Manufacturer, do not require any stockholder approval and do not
contravene Engine Manufacturer's Certificate of Incorporation or by-laws or any
debenture, credit agreement or other contractual agreement to which Engine
Manufacturer is a party or by which it is bound, and do not, as to the making
thereof, contravene any law binding on Engine Manufacturer, and to the best of
its knowledge, do not as to the performance thereof contravene any law binding
on Engine Manufacturer; and
4. The Engine Warranties constituted as of the date on which they were
made and at all times thereafter to and including the date of this Engine
Manufacturer Consent and Agreement [___], and this Engine Manufacturer Consent
and Agreement [___] constitute binding obligations of Engine Manufacturer
enforceable against Engine Manufacturer in accordance with their respective
terms subject to:
(a) the limitations of applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the rights
of creditors generally; and
(b) general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law).
[This space intentionally left blank.]
THIS ENGINE MANUFACTURER CONSENT AND AGREEMENT [___] SHALL IN ALL RESPECTS
BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, INCLUDING ALL MATTERS OF
CONSTRUCTION, VALIDITY AND PERFORMANCE, WITHOUT GIVING EFFECT TO PRINCIPLES OF
CONFLICTS OF LAWS. Dated as of _________ __, ____.
GENERAL ELECTRIC COMPANY
By
----------------------------------------
Name:
Title:
EXHIBIT A-5 to
NOTE PURCHASE AGREEMENT
FORM OF LEASED AIRCRAFT TRUST AGREEMENT
(Filed Separately)
EXHIBIT A-6 to
NOTE PURCHASE AGREEMENT
FORM OF SPECIAL INDENTURE
(Filed Separately)
EXHIBIT B to
NOTE PURCHASE AGREEMENT
FORM OF DELIVERY NOTICE
DELIVERY NOTICE
Dated as of [__________]
To each of the addressees listed
in Schedule A hereto
RE: DELIVERY NOTICE IN ACCORDANCE WITH NOTE
PURCHASE AGREEMENT REFERRED TO BELOW
Gentlemen:
Reference is made to the Note Purchase Agreement, dated as of November 28,
2000, among Continental Airlines, Inc. (the "COMPANY"), Wilmington Trust
Company, as Pass Through Trustee under each of the Pass Through Trust Agreements
(as defined therein) (the "PASS THROUGH TRUSTEE"), Wilmington Trust Company, as
Subordination Agent (the "SUBORDINATION AGENT"), First Security Bank, National
Association, as Escrow Agent (the "ESCROW Agent") and Wilmington Trust Company,
as Paying Agent (the "PAYING AGENT") (as in effect from time to time, the "NOTE
PURCHASE AGREEMENT"). Unless otherwise defined herein, capitalized terms used
herein shall have the meanings set forth in the Note Purchase Agreement or, to
the extent not defined therein, the Intercreditor Agreement.
Pursuant to Sections 1(b) of the Note Purchase Agreement, the undersigned
hereby notifies you, in respect of the Boeing [_______] aircraft with
manufacturer's serial number [______] (the "AIRCRAFT"), of the following:
(1) The Company has elected to treat the Aircraft as [a Leased Aircraft]
[an Owned Aircraft];
(2) The Scheduled Delivery Date of the Aircraft is [_________];
(3) The Funding Date for the Aircraft shall be [__________]; and
(4) The aggregate amount of each series of Equipment Notes to be issued,
and purchased by the respective Pass Through Trustees referred to below
(each, an "APPLICABLE PASS THROUGH TRUSTEE"), on the Funding Date, in
connection with the financing of such Aircraft is as follows:
(a) the Class A-1 Trustee shall purchase Series A-1 Equipment Notes in
the amount of $[__________];
(b) The Class A-2 Trustee shall purchase Series A-2 Equipment Notes in
the amount of $[__________];
(c) the Class B Trustee shall purchase Series B Equipment Notes in the
amount of $[__________]; and
(d) the Class C Trustee shall purchase Series C Equipment Notes in the
amount of $[__________].
The Company hereby instructs the Class A-1 Trustee to (i) execute a
Withdrawal Certificate in the form of Annex A hereto dated as of [__________]
and attach thereto a Notice of Purchase Withdrawal dated such date completed as
set forth on Exhibit A-1 hereto and (ii) deliver such Withdrawal Certificate and
Notice of Purchase Withdrawal to the applicable Escrow Agent.
The Company hereby instructs the Class A-2 Trustee to (i) execute a
Withdrawal Certificate in the form of Annex A hereto dated as of [__________]
and attach thereto a Notice of Purchase Withdrawal dated such date completed as
set forth on Exhibit A-2 hereto and (ii) deliver such Withdrawal Certificate and
Notice of Purchase Withdrawal to the applicable Escrow Agent.
The Company hereby instructs the Class B Trustee to (i) execute a
Withdrawal Certificate in the form of Annex A hereto dated as of [__________]
and attach thereto a Notice of Purchase Withdrawal dated such date completed as
set forth on Exhibit B hereto and (ii) deliver such Withdrawal Certificate and
Notice of Purchase Withdrawal to the applicable Escrow Agent.
The Company hereby instructs the Class C Trustee to (i) execute a
Withdrawal Certificate in the form of Annex A hereto dated as of [__________]
and attach thereto a Notice of Purchase Withdrawal dated such date completed as
set forth on Exhibit C hereto and (ii) deliver such Withdrawal Certificate and
Notice of Purchase Withdrawal to the applicable Escrow Agent.
----------
Eliminate each applicable clause if the specified Pass Through Trustee will not
purchase Equipment Notes for the Aircraft.
Eliminate if the specified Pass Through Trustee will not purchase Equipment
Notes for the Aircraft or if the Funding Date is the Issuance Date.
Eliminate if the specified Pass Through Trustee will not purchase Equipment
Notes for the Aircraft or if the Funding Date is the Issuance Date.
Eliminate if the specified Pass Through Trustee will not purchase Equipment
Notes for the Aircraft or if the Funding Date is the Issuance Date.
Eliminate if the specified Pass Through Trustee will not purchase Equipment
Notes for the Aircraft or if the Funding Date is the Issuance Date.
The Company hereby instructs each Applicable Pass Through Trustee to (i)
purchase Equipment Notes of a series and in an amount set forth opposite such
Pass Through Trustee in clause (4) above with a portion of the proceeds [of the
withdrawals of Deposits referred to in the applicable Notice of Purchase
Withdrawal referred to above] [received by it from the sale of Certificates on
the Issuance Date] and (ii) re-deposit with the Depositary the excess, if any,
of the amount so withdrawn OVER the purchase price of such Equipment Notes.
The Company hereby instructs each Applicable Pass Through Trustee to (a)
enter into the Participation Agreement [____] dated as of [__________] among the
Company, as Lessee, Wilmington Trust Company, as Mortgagee and Loan Participant,
First Security Bank, National Association, as Owner Trustee, and [__________],
as Owner Participant, (b) perform its obligations thereunder and (c) deliver
such certificates, documents and legal opinions relating to such Pass Through
Trustee as required thereby. [The Company confirms that the Special Indenture
shall be utilized in lieu of the Leased Aircraft Indenture.]
The Company hereby certifies that the Owner Participant with respect to
the Aircraft (A) is not an Affiliate of the Company and (B) based on the
representations of such Owner Participant, is either a Qualified Owner
Participant or a person whose obligations under the Owner Participant Agreements
(as defined in the Participation Agreement) are guaranteed by a Qualified Owner
Participant.
Yours faithfully,
Continental Airlines, Inc.
By:
----------------------------------------
Name:
Title:
SCHEDULE A
Wilmington Trust Company, as
Pass Through Trustee, Subordination
Agent and Mortgagee
Xxxxxx Square North
0000 Xxxxx Xxxxxx Xxxxxx
Xxxxxxxxxx, Xxxxxxxx 00000
Attention: Corporate Trust Administration
Facsimile: (000) 000-0000
First Security Bank, National Association,
as Escrow Agent
00 Xxxxx Xxxx Xxxxxx, 0xx Xxxxx
Xxxx Xxxx Xxxx, Xxxx 00000
Attention: Corporate Trust Department
Facsimile: (000) 000-0000
Standard & Poor's Ratings Services
00 Xxxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Xxxxxxx X. Xxxxxxx
Facsimile: (000) 000-0000
Xxxxx'x Investors Service, Inc.
00 Xxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Xxxxxxx Xxxxxxxxxxxx
Facsimile: (000) 000-0000
Annex A
WITHDRAWAL CERTIFICATE
(Class ___)
First Security Bank, National Association,
as Escrow Agent
Ladies and Gentlemen:
Reference is made to the Escrow and Paying Agent Agreement, dated
as of November 28, 2000 (the "Agreement"). We hereby certify to you that the
conditions to the obligations of the undersigned to execute a Participation
Agreement pursuant to the Note Purchase Agreement have been satisfied.
Pursuant to Section 1.02(c) of the Agreement, please execute the attached
Notice of Withdrawal and immediately transmit by facsimile to the Depositary,
at (000) 000-0000.
Capitalized terms used herein but not defined herein shall have
the meanings set forth in the Agreement.
Very truly yours,
WILMINGTON TRUST COMPANY,
not in its individual capacity by solely
as Pass
Through Trustee
By:
----------------------------------------
Name:
Title:
Dated: As of [__________]
Exhibit A-1
NOTICE OF PURCHASE WITHDRAWAL
CREDIT SUISSE FIRST BOSTON
New York Branch
00 Xxxxxxx Xxxxxx
Xxx Xxxx, XX 00000
Attention: Xxxxxx Xxxxxx
Telecopier: 000-000-0000
Gentlemen:
Reference is made to the Deposit Agreement (Class A-1) dated as
of November 28, 2000 (the "DEPOSIT AGREEMENT") between First Security Bank,
National Association, as Escrow Agent, and Credit Suisse First Boston, New
York branch, as Depositary (the "DEPOSITARY").
In accordance with Section 2.3(a) of the Deposit Agreement, the
undersigned hereby requests the withdrawal of the entire amount of the Deposit,
$[_______], Account No. [____].
The undersigned hereby directs the Depositary to pay the proceeds of
the Deposit to [___________________], Account No. ____, Reference: _________] on
________ __, 20___, upon the telephonic request of a representative of the Pass
Through Trustee.
FIRST SECURITY BANK,
NATIONAL ASSOCIATION,
as Escrow Agent
By
----------------------------------------
Name:
Title:
Dated: As of [__________]
Exhibit A-2
NOTICE OF PURCHASE WITHDRAWAL
CREDIT SUISSE FIRST BOSTON
New York Branch
00 Xxxxxxx Xxxxxx
Xxx Xxxx, XX 00000
Attention: Xxxxxx Xxxxxx
Telecopier: 000-000-0000
Gentlemen:
Reference is made to the Deposit Agreement (Class A-2) dated as of
November 28, 2000 (the "DEPOSIT AGREEMENT") between First Security Bank,
National Association, as Escrow Agent, and Credit Suisse First Boston, New York
branch, as Depositary (the "DEPOSITARY").
In accordance with Section 2.3(a) of the Deposit Agreement, the
undersigned hereby requests the withdrawal of the entire amount of the Deposit,
$[_______], Account No. [____].
The undersigned hereby directs the Depositary to pay the proceeds of
the Deposit to [___________________], Account No. ____, Reference: _________] on
________ __, 20__, upon the telephonic request of a representative of the Pass
Through Trustee.
FIRST SECURITY BANK,
NATIONAL ASSOCIATION,
as Escrow Agent
By
----------------------------------------
Name:
Title:
Dated: As of [__________]
Exhibit B
NOTICE OF PURCHASE WITHDRAWAL
CREDIT SUISSE FIRST BOSTON
New York Branch
00 Xxxxxxx Xxxxxx
Xxx Xxxx, XX 00000
Attention: Xxxxxx Xxxxxx
Telecopier: 000-000-0000
Gentlemen:
Reference is made to the Deposit Agreement (Class B) dated as of
November 28, 2000 (the "DEPOSIT AGREEMENT") between First Security Bank,
National Association, as Escrow Agent, and Credit Suisse First Boston, New York
branch, as Depositary (the "DEPOSITARY").
In accordance with Section 2.3(a) of the Deposit Agreement, the
undersigned hereby requests the withdrawal of the entire amount of the Deposit,
$[_______], Account No. [_____].
The undersigned hereby directs the Depositary to pay the proceeds of
the Deposit to ___________________], Account No. ____, Reference: _________] on
________ __, 20__, upon the telephonic request of a representative of the Pass
Through Trustee.
FIRST SECURITY BANK,
NATIONAL ASSOCIATION,
as Escrow Agent
By
----------------------------------------
Name:
Title:
Dated: As of [__________]
Exhibit C
NOTICE OF PURCHASE WITHDRAWAL
CREDIT SUISSE FIRST BOSTON
New York Branch
00 Xxxxxxx Xxxxxx
Xxx Xxxx, XX 00000
Attention: Xxxxxx Xxxxxx
Telecopier: 000-000-0000
Gentlemen:
Reference is made to the Deposit Agreement (Class C) dated as of
November 28, 2000 (the "DEPOSIT AGREEMENT") between First Security Bank,
National Association, as Escrow Agent, and Credit Suisse First Boston, New York
branch, as Depositary (the "DEPOSITARY").
In accordance with Section 2.3(a) of the Deposit Agreement, the
undersigned hereby requests the withdrawal of the entire amount of the Deposit,
$[_______], Account No. [_____].
The undersigned hereby directs the Depositary to pay the proceeds of
the Deposit to ___________________], Account No. ____, Reference: _________] on
________ __, 20___, upon the telephonic request of a representative of the Pass
Through Trustee.
FIRST SECURITY BANK,
NATIONAL ASSOCIATION,
as Escrow Agent
By
----------------------------------------
Name:
Title:
Dated: As of [__________]
EXHIBIT C-1 to
NOTE PURCHASE AGREEMENT
FORM OF OWNED AIRCRAFT PARTICIPATION AGREEMENT
(Filed Separately)
EXHIBIT C-2 to
NOTE PURCHASE AGREEMENT
FORM OF OWNED AIRCRAFT INDENTURE
(Filed Separately)
EXHIBIT D to
NOTE PURCHASE AGREEMENT
SECTION 16. OWNER PARTICIPANT'S RIGHT TO RESTRUCTURE
16.1 GENERAL RIGHT TO RESTRUCTURE
Lessee, Loan Participant and each Note Holder agree that after
the Delivery Date and subject to the limitations of Section 16.2, the
original Owner Participant (or any transferee Owner Participant that is an
Affiliate of the original Owner Participant) shall have the right to
restructure the Transactions using (a) a "cross-border lease," a tax lease or
a head-lease/sublease structure and (b) any other type of transaction, which
may involve special structural arrangements, as such Owner Participant may
elect (any such structure described above, a "Special Structure"). Any
Special Structure may result in additional persons participating in the
Transactions, which persons shall agree to provisions comparable to Sections
7.6.4(a) and 7.6.13. Subject to the provisions of Sections 16.2 and 16.3,
Lessee, Loan Participant and each Note Holder agree to cooperate in the
implementation of any such restructuring and take such action as may
reasonably be requested by the original Owner Participant to accomplish such
restructuring, including taking such actions as may be reasonable or
customary in the type of Special Structure selected. In connection with any
proposed Special Structure, Owner Participant shall provide all information
reasonably requested by Lessee, Loan Participant or any Note Holder with
respect thereto. The original Owner Participant shall be entitled to retain
all of the benefits of any such transaction.
16.2 LIMITATIONS ON RESTRUCTURING PROVISIONS; ADDITIONAL TERMS
16.2.1 LESSEE
(a) Notwithstanding Section 16.1 or 16.2.1(b), in no event
shall any such Special Structure (a) change the terms and conditions of
Lessee's rights and obligations, from those which Lessee would otherwise
possess or be subject to in the absence of any such Special Structure, in a
manner which is materially adverse to Lessee, (b) expose Lessee to any
additional risks (including overall tax risks) beyond those to which Lessee
would be exposed in the absence of any such Special Structure unless Lessee
shall have been indemnified against such additional risks by the original
Owner Participant, or other participants in such transaction (so long as such
original Owner Participant or other participants shall, as to their
creditworthiness at the time any such indemnity is given, be reasonably
acceptable to Lessee) in a manner reasonably satisfactory to Lessee. In no
event shall Lessee be required to provide an indemnity with respect to any
foreign tax benefit of a Special Structure or to indemnify against the
failure of a head-lease not to constitute a true lease for U.S. federal
income tax purposes.
(b) In any Special Structure that may be entered into pursuant
to this Section 16, the Termination Values under the Lease (as the same may
be restructured) shall not be affected by the termination values under any
head-lease, except that any prepayment premiums and any funding or swap
breakage costs under such head-lease or similar arrangement will be added in
calculating the Termination Values and Stipulated Loss Values under the Lease
(as the same may be restructured). Further, upon implementation of any
Special Structure, the Stipulated Loss Values payable by Lessee under the
Lease (as the same may be restructured) shall in no event be less than the
stipulated loss values payable under the applicable head-lease or similar
arrangement.
16.2.2 LOAN PARTICIPANT AND CERTIFICATE HOLDERS
Notwithstanding Section 16.1, any such Special Structure shall
not, and prior to the exercise of its rights thereunder, the Owner
Participant shall deliver an officer's certificate to the Pass Through
Trustee that provides that any such Special Structure shall not, (a) change
the terms and conditions of Loan Participant's, any Note Holder's or any Pass
Through Indemnitee's rights and obligations under the Operative Agreements or
rights and obligations of holders of Pass Through Certificates, from those
which Loan Participant, Note Holders, Pass Through Indemnitees and such Pass
Through Certificate holders would otherwise possess or be subject to in the
absence of such Special Structure (including, without limitation, the amount
and timing of any payment of principal, interest and Make-Whole Amount under
the Equipment Notes, the relative rights of the Note Holders with respect to
such payments and such holder of Pass Through Certificates and the priority
of Mortgagee's Lien on the Trust Indenture Estate under the Trust Indenture)
or (b) expose Loan Participant, any such Note Holder, any such Pass Through
Indemnitee or any such holder of Pass Through Certificates to any additional
risks beyond those to which Loan Participant, such Note Holder, Pass Through
Indemnitee or such holder of such Pass Through Certificates would be exposed
in the absence of such Special Structure. In addition, in no event shall any
Special Structure be permitted unless a written confirmation from the Rating
Agencies (as defined in the Note Purchase Agreement) is obtained prior to the
implementation of such Special Structure to the effect that such Special
Structure will not adversely affect the ratings of the Pass Through
Certificates.
16.3 TRANSACTION EXPENSES
Whether or not any proposed restructuring transaction under this
Section 16 is consummated, the original Owner Participant shall pay (or cause
to be paid) the reasonable costs and expenses incurred by all parties in
connection therewith and shall pay the reasonable costs and expenses of the
Rating Agencies in connection with obtaining the confirmations referred to in
Section 16.2.2; PROVIDED, that, only in connection with a consummated
transaction (unless Lessee shall have, by failing to act in good faith,
caused a transaction not to be consummated), Lessee shall pay or reimburse
such original Owner Participant for the original Owner Participant's
reasonable estimate of the costs and expenses that would have been incurred
by all parties if the Transactions had been restructured as a
head-lease/sublease transaction in which the original Owner Participant, or
an Affiliate or designee thereof, were the head-lessee/sublessor and Lessee
were the sublessee.
EXHIBIT E to
NOTE PURCHASE AGREEMENT
Section 6.2 may be amended to delete Section 6.2.9 in its
entirety.
EXHIBIT F TO NOTE PURCHASE AGREEMENT
Subordination. (a) As between the Note Holders, this Trust
Indenture shall be a subordination agreement for purposes of Xxxxxxx 000 xx
xxx Xxxxxx Xxxxxx Bankruptcy Code, as amended from time to time.
(b) If any Note Holder receives any payment in respect of any
obligations owing hereunder, which is subsequently invalidated, declared
preferential, set aside and/or required to be repaid to a trustee, receiver
or other party, then, to the extent of such payment, such obligations
intended to be satisfied shall be revived and continue in full force and
effect as if such payment had not been received.
(c) Each of the Note Holders may take any of the following
actions without impairing its rights under this Trust Indenture:
(i) obtain a Lien on any property to secure any amounts owing to
it hereunder,
(ii) obtain the primary or secondary obligation of any other
obligor with respect to any amounts owing to it hereunder,
(iii) renew, extend, increase, alter or exchange any amounts
owing to it hereunder, or release or compromise any obligation of any
obligor with respect thereto,
(iv) refrain from exercising any right or remedy, or delay in
exercising such right or remedy, which it may have, or
(v) take any other action which might discharge a subordinated
party or a surety under applicable law;
provided, however, that the taking of any such actions by any of the Note
Holders shall not prejudice the rights or adversely affect the obligations of
any other party under this Trust Indenture.
