Exhibit 10.12
ESCROW AND PAYING AGENT AGREEMENT
(Class C)
Dated as of September 27, 2000
among
FIRST UNION TRUST COMPANY, NATIONAL ASSOCIATION
as Escrow Agent
XXXXXX XXXXXXX & CO. INCORPORATED
and
SEABURY SECURITIES LLC
as Placement Agents
ALLFIRST BANK,
not in its individual capacity,
but solely as Pass Through Trustee
for and on behalf of
Midway Airlines Pass Through Trust 2000-1C
as Pass Through Trustee
and
ALLFIRST BANK
as Paying Agent
TABLE OF CONTENTS
Page
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SECTION 1. Escrow Agent................................................................................... 2
Section 1.01. Appointment of Escrow Agent........................................................ 2
Section 1.02. Instruction; Etc................................................................... 3
Section 1.03. Initial Escrow Amount; Issuance of Escrow Receipts................................. 3
Section 1.04. Payments to Receiptholders......................................................... 4
Section 1.05. Mutilated, Destroyed, Lost or Stolen Escrow Receipt................................ 4
Section 1.06. Additional Escrow Amounts.......................................................... 5
Section 1.07. Resignation or Removal of Escrow Agent............................................. 5
Section 1.08. Persons Deemed Owners.............................................................. 5
Section 1.09. Further Assurances................................................................. 6
SECTION 2. Paying Agent................................................................................... 6
Section 2.01. Appointment of Paying Agent........................................................ 6
Section 2.02. Establishment of Paying Agent Account.............................................. 6
Section 2.03. Payments from Paying Agent Account................................................. 6
Section 2.04. Withholding Taxes.................................................................. 7
Section 2.05. Resignation or Removal of Paying Agent............................................. 7
Section 2.06. Notice of Final Withdrawal......................................................... 8
SECTION 3. Payments....................................................................................... 8
SECTION 4. Other Actions.................................................................................. 9
SECTION 5. Representations and Warranties of the Escrow Agent............................................. 9
SECTION 6. Representations and Warranties of the Paying Agent............................................. 10
SECTION 7. Indemnification................................................................................ 11
SECTION 8. Amendment, Etc................................................................................. 11
SECTION 9. Notices........................................................................................ 12
SECTION 10. Transfer...................................................................................... 12
i
SECTION 11. Entire Agreement................................................................................... 13
SECTION 12. Governing Law...................................................................................... 13
SECTION 13. Waiver of Jury Trial Right......................................................................... 13
SECTION 14. Counterparts....................................................................................... 13
EXHIBIT A Escrow Receipt
EXHIBIT B Withdrawal Certificate
ii
ESCROW AND PAYING AGENT AGREEMENT (Class C) dated as of
September 27, 2000 (as amended, modified or supplemented from time to time, this
"Agreement") among FIRST UNION TRUST COMPANY, NATIONAL ASSOCIATION, a national
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banking association, as Escrow Agent (in such capacity, together with its
successors in such capacity, the "Escrow Agent"); XXXXXX XXXXXXX & CO.
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INCORPORATED and SEABURY SECURITIES LLC, as Placement Agents of the Certificates
referred to below (the "Placement Agents" and together with their respective
----------------
transferees and assigns as registered owners of the Certificates, the
"Investors") under the Placement Agreement referred to below; ALLFIRST BANK, a
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Maryland state-chartered commercial bank, 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
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the Pass Through Trust Agreement referred to below; and ALLFIRST BANK, a
Maryland state-chartered commercial bank, as paying agent hereunder (in such
capacity, together with its successors in such capacity, the "Paying Agent").
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W I T N E S S E T H
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WHEREAS, Midway Airlines Corporation ("Midway") and the Pass
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Through Trustee have entered into the Pass Through Trust Agreement, dated as of
September 27, 2000 (together, as amended, modified or supplemented from time to
time in accordance with the terms thereof, the "Pass Through Trust Agreement")
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relating to Midway Airlines Pass Through Trust 2000-1C (the "Pass Through
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Trust") pursuant to which the Midway Airlines Pass Through Trust, Series 2000-1C
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Certificates referred to therein (the "Certificates") are being issued;
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WHEREAS, Midway and the Placement Agents have entered into a
Placement Agreement dated September 22, 2000 (as amended, modified or
supplemented from time to time in accordance with the terms thereof, the
"Placement Agreement") pursuant to which the Pass Through Trustee will issue and
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sell the Certificates to the Placement Agents;
WHEREAS, Midway, the Pass Through Trustee, certain other pass
through trustees and certain other persons concurrently herewith are entering
into the Note Purchase Agreement, dated as of the date hereof (the "Note
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Purchase Agreement"), pursuant to which the Pass Through Trustee has agreed to
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acquire from time to time on or prior to the Delivery Period Termination Date
(as defined in the Note Purchase Agreement) equipment notes (the "Equipment
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Notes") issued to finance the acquisition of aircraft by Midway, as lessee or as
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owner, utilizing a portion of the proceeds from the sale of the Certificates
(the "Net Proceeds");
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WHEREAS, the Placement Agents and the Pass Through Trustee
intend that the Net Proceeds be held in escrow by the Escrow Agent on behalf of
the Investors, subject to withdrawal upon request by the Pass Through Trustee
and satisfaction of the conditions set forth in the Note Purchase Agreement for
the purpose of purchasing Equipment Notes, and that pending such
withdrawal the Net Proceeds be deposited on behalf of the Escrow Agent with
Allfirst Bank, as Depositary (the "Depositary") under the Deposit Agreement,
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dated as of the date hereof between the Depositary and the Escrow Agent relating
to the Pass Through Trust (as amended, modified or supplemented from time to
time in accordance with the terms thereof, the "Deposit Agreement") pursuant to
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which, among other things, the Depositary will pay interest for distribution to
the Investors and establish accounts from which the Escrow Agent shall make
withdrawals upon request of and proper certification by the Pass Through
Trustee;
WHEREAS, the Escrow Agent wishes to appoint the Paying Agent
to pay amounts required to be distributed to the Investors in accordance with
this Agreement; and
WHEREAS, capitalized terms used but not defined herein shall
have the meanings ascribed to such terms in the Pass Through Trust Agreement.
NOW, THEREFORE, in consideration of the obligations contained
herein, and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto hereby agree as
follows:
SECTION 1. Escrow Agent.
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Section 1.01 Appointment of Escrow Agent. Each of the
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Placement Agents, for and on behalf of each of the Investors, hereby irrevocably
appoints, authorizes and directs the Escrow Agent to act as escrow agent and
fiduciary hereunder and under the Deposit Agreement for such specific purposes
and with such powers as are specifically delegated to the Escrow Agent by the
terms of this Agreement, together with such other powers as are reasonably
incidental thereto. Any and all money received and held by the Escrow Agent
under this Agreement or the Deposit Agreement shall be held in escrow by the
Escrow Agent in accordance with the terms of this Agreement. This Agreement is
irrevocable and the Investors' rights with respect to any monies received and
held in escrow by the Escrow Agent under this Agreement or the Deposit Agreement
shall only be as provided under the terms and conditions of this Agreement and
the Deposit Agreement. The Escrow Agent (which term as used in this sentence
shall include reference to its affiliates and its own and its affiliates'
officers, directors, employees and agents): (a) shall have no duties or
responsibilities except those expressly set forth in this Agreement; (b) shall
not be responsible to the Pass Through Trustee or the Investors for any
recitals, statements, representations or warranties of any person other than
itself contained in this Agreement or the Deposit Agreement or for the failure
by the Pass Through Trustee, the Investors or any other person or entity (other
than the Escrow Agent) to perform any of its obligations hereunder (whether or
not the Escrow Agent shall have any knowledge thereof); and (c) shall not be
responsible for any action taken or omitted to be taken by it hereunder or
provided for herein or in connection herewith, except for its own willful
misconduct or gross negligence (or simple negligence in connection with the
handling of funds).
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Section 1.02 Instruction; Etc. The Placement Agents, for and
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on behalf of each of the Investors, hereby irrevocably instruct the Escrow
Agent, and the Escrow Agent agrees, (a) to enter into the Deposit Agreement, (b)
to appoint the Paying Agent as provided in this Agreement, (c) upon receipt at
any time and from time to time prior to the Termination Date (as defined below)
of a certificate substantially in the form of Exhibit B hereto (a "Withdrawal
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Certificate") executed by the Pass Through Trustee, together with an attached
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Notice of Purchase Withdrawal in substantially the form of Exhibit A to the
Deposit Agreement duly completed by the Pass Through Trustee (the "Applicable
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Notice of Purchase Withdrawal") and the withdrawal to which it relates, a
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"Purchase Withdrawal"), immediately to execute the Applicable Notice of Purchase
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Withdrawal as Escrow Agent and transmit it to the Depositary by facsimile
transmission in accordance with the Deposit Agreement; provided that, upon the
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request of the Pass Through Trustee after such transmission, the Escrow Agent
shall cancel such Applicable Notice of Purchase Withdrawal, and (d) if there are
any undrawn Deposits (as defined in the Deposit Agreement) on the "Termination
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Date", which shall mean the earlier of (i) November 30, 2001 (provided that, if
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a labor strike occurs at The Boeing Company prior to such date (a "Labor
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Strike"), such date shall be extended by adding thereto the number of days that
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such strike continued in effect (the "Additional Days") and (ii) the day on
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which the Escrow Agent receives notice from the Pass Through Trustee that the
Pass Through Trustee's obligation to purchase Equipment Notes under the Note
Purchase Agreement has terminated, to give notice to the Depositary (with a copy
to the Paying Agent) substantially in the form of Exhibit B to the Deposit
Agreement requesting a withdrawal of all of the remaining Deposits, together
with accrued and unpaid interest on such Deposits to the date of withdrawal, on
the 15th day after the date that such notice of withdrawal is given to the
Depositary (or, if not a Business Day, on the next succeeding Business Day) (a
"Final Withdrawal"), provided that if the day scheduled for the Final Withdrawal
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in accordance with the foregoing is within 10 days before or after a Regular
Distribution Date, then the Escrow Agent shall request that such requested Final
Withdrawal be made on such Regular Distribution Date (the date of such requested
withdrawal, the "Final Withdrawal Date"). If for any reason the Escrow Agent
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shall have failed to give the Final Withdrawal Notice to the Depositary on or
before November 30, 2001 (provided that if a Labor Strike occurs, such date
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shall be extended by the Additional Days) and there are unwithdrawn Deposits on
such date, the Final Withdrawal Date shall be deemed to be December 16, 2001
(provided that if a Labor Strike occurs, such date shall be extended by the
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Additional Days).
Section 1.03 Initial Escrow Amount; Issuance of Escrow
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Receipts. The Escrow Agent hereby directs the Placement Agents to, and the
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Placement Agents hereby acknowledge that on the date hereof they shall,
irrevocably deliver to the Depositary on behalf of the Escrow Agent, an amount
in U.S. dollars ("Dollars") and immediately available funds equal to $16,661,000
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for deposit on behalf of the Escrow Agent with the Depositary in accordance with
Section 2.1 of the Deposit Agreement. The Placement Agents hereby instruct the
Escrow Agent, upon receipt of such sum from the Placement Agents, to confirm
such receipt by executing and delivering to the Pass Through Trustee an Escrow
Receipt in the form of Exhibit A hereto (an "Escrow Receipt"), (a) to be affixed
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by the Pass Through Trustee to each Certificate and (b) to evidence the same
percentage interest (the "Escrow Interest") in the Account Amounts (as defined
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below) as the Fractional
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Undivided Interest in the Pass Through Trust evidenced by the Certificate to
which it is to be affixed. The Escrow Agent shall provide to the Pass Through
Trustee for attachment to each Certificate newly issued under and in accordance
with the Pass Through Trust Agreement an executed Escrow Receipt as the Pass
Through Trustee may from time to time request of the Escrow Agent. Each Escrow
Receipt shall be registered by the Escrow Agent in a register (the "Register")
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maintained by the Escrow Agent in the same name and same manner as the
Certificate to which it is attached and may not thereafter be detached from such
Certificate to which it is to be affixed prior to the distribution of the Final
Withdrawal (the "Final Distribution"). After the Final Distribution, no
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additional Escrow Receipts shall be issued and the Pass Through Trustee shall
request the return to the Escrow Agent for cancellation of all outstanding
Escrow Receipts.
Section 1.04 Payments to Receiptholders. All payments and
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distributions made to holders of an Escrow Receipt (collectively
"Receiptholders") in respect of the Escrow Receipt shall be made only from
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amounts deposited in the Paying Agent Account (as defined below) ("Account
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Amounts"). Each Receiptholder, by its acceptance of an Escrow Receipt, agrees
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that (a) it will look solely to the Account Amounts for any payment or
distribution due to such Receiptholder pursuant to the terms of the Escrow
Receipt and this Agreement and (b) it will have no recourse to Midway, the Pass
Through Trustee, the Paying Agent or the Escrow Agent, except as expressly
provided herein or in the Pass Through Trust Agreement. No Receiptholder shall
have any right to vote or in any manner otherwise control the operation and
management of the Paying Agent Account or the obligations of the parties hereto,
nor shall anything set forth herein, or contained in the terms of the Escrow
Receipt, be construed so as to constitute the Receiptholders from time to time
as partners or members of an association.
Section 1.05 Mutilated, Destroyed, Lost or Stolen Escrow
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Receipt. If (a) any mutilated Escrow Receipt is surrendered to the Escrow Agent
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or the Escrow Agent receives evidence to its satisfaction of the destruction,
loss or theft of any Escrow Receipt and (b) there is delivered to the Escrow
Agent and the Pass Through Trustee such security, indemnity, or bond, as may be
required by them to hold each of them harmless, then, absent notice to the
Escrow Agent or the Pass Through Trustee that such destroyed, lost or stolen
Escrow Receipt has been acquired by a bona fide purchaser, and provided that the
requirements of Section 8-405 of the Uniform Commercial Code in effect in any
applicable jurisdiction are met, the Escrow Agent shall execute, authenticate
and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost
or stolen Escrow Receipt, a new Escrow Receipt or Escrow Receipts and of like
Escrow Interest in the Account Amounts and bearing a number not
contemporaneously outstanding.
In connection with the issuance of any new Escrow Receipt
under this Section 1.05, the Escrow Agent may require the payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
relation thereto and any other expenses (including the fees and expenses of the
Pass Through Trustee and the Escrow Agent) connected therewith.
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Any duplicate Escrow Receipt issued pursuant to this Section
1.05 shall constitute conclusive evidence of the appropriate Escrow Interest in
the Account Amounts, as if originally issued, whether or not the lost, stolen or
destroyed Escrow Receipt shall be found at any time.
The provisions of this Section are exclusive and shall
preclude (to the extent lawful) all other rights and remedies with respect to
the replacement or payment of mutilated, destroyed, lost or stolen Escrow
Receipts.
Section 1.06 Additional Escrow Amounts. On the date of any
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Purchase Withdrawal, the Pass Through Trustee may re-deposit with the Depositary
some or all of the amounts so withdrawn in accordance with Section 2.4 of the
Deposit Agreement.
Section 1.07 Resignation or Removal of Escrow Agent. Subject
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to the appointment and acceptance of a successor Escrow Agent as provided below,
the Escrow Agent may resign at any time by giving 30 days' prior written notice
thereof to the Pass Through Trustee, but may not otherwise be removed except for
cause by the written consent of the Investors with respect to Investors
representing Escrow Interests aggregating not less than a majority in interest
in the Account Amounts (an "Action of Investors"). Upon any such resignation or
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removal, the Investors, by an Action of Investors, shall have the right to
appoint a successor Escrow Agent. If no successor Escrow Agent shall have been
so appointed and shall have accepted such appointment within 30 days after the
retiring Escrow Agent's giving of notice of resignation or the removal of the
retiring Escrow Agent, then the retiring Escrow Agent may appoint a successor
Escrow Agent. Any successor Escrow Agent shall be a bank which has an office in
the United States with a combined capital and surplus of at least $100,000,000.
Upon the acceptance of any appointment as Escrow Agent hereunder by a successor
Escrow Agent, such successor Escrow Agent shall enter into such documents as the
Pass Through Trustee shall require and shall thereupon succeed to and become
vested with all the rights, powers, privileges and duties of the retiring Escrow
Agent, and the retiring Escrow Agent shall be discharged from its duties and
obligations hereunder. No resignation or removal of the Escrow Agent shall be
effective unless a written confirmation shall have been obtained from each of
Xxxxx'x Investors Service, Inc. and Standard & Poor's Rating Group, a division
of XxXxxx-Xxxx Inc., that the replacement of the Escrow Agent with the successor
Escrow Agent will not result in (a) a reduction of the rating for the
Certificates below the then current rating for the Certificates or (b) a
withdrawal or suspension of the rating of the Certificates.
Section 1.08 Persons Deemed Owners. Prior to due presentment
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of a Certificate for registration of transfer, the Escrow Agent and the Paying
Agent may treat the Person in whose name any Escrow Receipt is registered (as of
the day of determination) as the owner of such Escrow Receipt for the purpose of
receiving distributions pursuant to this Agreement and for all other purposes
whatsoever, and neither the Escrow Agent nor the Paying Agent shall be affected
by any notice to the contrary.
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Section 1.09 Further Assurances. The Escrow Agent agrees to
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take such actions, and execute such other documents, as may be reasonably
requested by the Pass Through Trustee in order to effectuate the purposes of
this Agreement and the performance by the Escrow Agent of its obligations
hereunder.
SECTION 2. Paying Agent.
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Section 2.01 Appointment of Paying Agent. The Escrow Agent
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hereby irrevocably appoints and authorizes the Paying Agent to act as its paying
agent hereunder, for such specific purposes and with such powers as are
specifically delegated to the Paying Agent by the terms of this Agreement,
together with such other powers as are reasonably incidental thereto. Any and
all money received and held by the Paying Agent under this Agreement or the
Deposit Agreement shall be held in the Paying Agent Account for the benefit of
the Investors. The Paying Agent (which term as used in this sentence shall
include reference to its affiliates and its own and its affiliates' officers,
directors, employees and agents): (a) shall have no duties or responsibilities
except those expressly set forth in this Agreement, and shall not by reason of
this Agreement be a trustee for the Escrow Agent; (b) shall not be responsible
to the Escrow Agent for any recitals, statements, representations or warranties
of any person other than itself contained in this Agreement or for the failure
by the Escrow Agent or any other person or entity (other than the Paying Agent)
to perform any of its obligations hereunder (whether or not the Paying Agent
shall have any knowledge thereof); and (c) shall not be responsible for any
action taken or omitted to be taken by it hereunder or provided for herein or in
connection herewith, except for its own willful misconduct or gross negligence
(or simple negligence in connection with the handling of funds).
Section 2.02 Establishment of Paying Agent Account. The Paying
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Agent shall establish a deposit account (the "Paying Agent Account") at Allfirst
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Bank in the name of the Escrow Agent. It is expressly understood by the parties
hereto that the Paying Agent is acting as the paying agent of the Escrow Agent
hereunder and that no amounts on deposit in the Paying Agent Account constitute
part of the Trust Property.
Section 2.03 Payments from Paying Agent Account. The Escrow
----------------------------------
Agent hereby irrevocably instructs the Paying Agent, and the Paying Agent agrees
to act, as follows:
(a) On each Interest Payment Date (as defined in the Deposit
Agreement) or as soon thereafter as the Paying Agent has confirmed
receipt in the Paying Agent Account from the Depositary of any amount
in respect of accrued interest on the Deposits, the Paying Agent shall
distribute out of the Paying Agent Account the entire amount deposited
therein by the Depositary. There shall be so distributed to each
Receiptholder of record on the 15th day (whether or not a Business Day)
preceding such Interest Payment Date by check mailed to such
Receiptholder, at the address appearing in the Register, such
Receiptholder's pro rata share (based on the Escrow Interest in the
Account Amounts held by such Receiptholder) of the total amount of
interest deposited by the Depositary in the Paying Agent Account on
such
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date, except that, with respect to Escrow Receipts registered on the
Record Date in the name of DTC, such distribution shall be made by wire
transfer in immediately available funds to the account designated by
DTC.
(b) Upon the confirmation by the Paying Agent of receipt in
the Paying Agent Account from the Depositary of any amount in respect
of the Final Withdrawal, the Paying Agent shall forthwith distribute
the entire amount of the Final Withdrawal deposited therein by the
Depositary. There shall be so distributed to each Receiptholder of
record on the 15th day (whether or not a Business Day) preceding the
Final Withdrawal Date by check mailed to such Receiptholder, at the
address appearing in the Register, such Receiptholder's pro rata share
(based on the Escrow Interest in the Account Amounts held by such
Receiptholder) of the total amount in the Paying Agent Account on
account of such Final Withdrawal, except that, with respect to Escrow
Receipts registered on the Record Date in the name of DTC, such
distribution shall be made by wire transfer in immediately available
funds to the account designated by DTC.
(c) If any payment of interest or principal in respect of the
Final Withdrawal is not received by the Paying Agent within five days
of the applicable date when due, then it shall be distributed to
Receiptholders after actual receipt by the Paying Agent on the same
basis as a Special Payment is distributed under the Pass Through Trust
Agreement.
(d) The Paying Agent shall include with any check mailed
pursuant to this Section any notice required to be distributed under
the Pass Through Trust Agreement that is furnished to the Paying Agent
by the Pass Through Trustee.
Section 2.04 Withholding Taxes. The Paying Agent shall exclude
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and withhold from each distribution of accrued interest on the Deposits (as
defined in the Deposit Agreement) and any amount in respect of the Final
Withdrawal any and all withholding taxes applicable thereto as required by law.
The Paying Agent agrees to act as such withholding agent and, in connection
therewith, whenever any present or future taxes or similar charges are required
to be withheld with respect to any amounts payable in respect of the Deposits
(as defined in the Deposit Agreement) or the escrow amounts, to withhold such
amounts and timely pay the same to the appropriate authority in the name of and
on behalf of the Receiptholders, that it will file any necessary withholding tax
returns or statements when due, and that, as promptly as possible after the
payment thereof, it will deliver to each such Receiptholder appropriate
documentation showing the payment thereof, together with such additional
documentary evidence as such Receiptholder may reasonably request from time to
time. The Paying Agent agrees to file any other information reports as it may be
required to file under United States law.
Section 2.05 Resignation or Removal of Paying Agent. Subject
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to the appointment and acceptance of a successor Paying Agent as provided below,
the Paying Agent may resign at any time by giving 30 days' prior written notice
thereof to the Escrow Agent, but may not otherwise be
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removed except for cause by the Escrow Agent. Upon any such resignation or
removal, the Escrow Agent shall have the right to appoint a successor Paying
Agent. If no successor Paying Agent shall have been so appointed and shall have
accepted such appointment within 30 days after the retiring Paying Agent's
giving of notice of resignation or the removal of the retiring Paying Agent,
then the retiring Paying Agent may appoint a successor Paying Agent. Any
Successor Paying Agent shall be a bank which has an office in the United States
with a combined capital and surplus of at least $100,000,000. Upon the
acceptance of any appointment as Paying Agent hereunder by a successor Paying
Agent, such successor Paying Agent shall enter into such documents as the Escrow
Agent shall require and shall thereupon succeed to and become vested with all
the rights, powers, privileges and duties of the retiring Paying Agent, and the
retiring Paying Agent shall be discharged from its duties and obligations
hereunder.
Section 2.06 Notice of Final Withdrawal. Promptly after
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receipt by the Paying Agent of notice that the Escrow Agent has requested a
Final Withdrawal or that a Final Withdrawal will be made, the Paying Agent shall
cause notice of the distribution of the Final Withdrawal to be mailed to each of
the Receiptholders at its address as it appears in the Register. Such notice
shall be mailed not less than 15 days prior to the Final Withdrawal Date. Such
notice shall set forth:
(i) the Final Withdrawal Date and the date for
determining Receiptholders of record who shall be entitled to
receive distributions in respect of the Final Withdrawal,
(ii) the amount of the payment in respect of the
Final Withdrawal for each $1,000 face amount Certificate
(based on information provided by the Pass Through Trustee)
and the amount thereof constituting unused Deposits (as
defined in the Deposit Agreement) and interest thereon, and
(iii) if the Final Withdrawal Date is the same date
as a Regular Distribution Date, the total amount to be
received on such date for each $1,000 face amount Certificate
(based on information provided by the Pass Through Trustee).
Such mailing may include any notice required to be given to
Certificate holders in connection with such distribution pursuant to the Pass
Through Trust Agreement.
SECTION 3. Payments. If, notwithstanding the instructions
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in Section 4 of the Deposit Agreement that all amounts payable to the Escrow
Agent under the Deposit Agreement be paid by the Depositary directly to the
Paying Agent or the Pass Through Trustee (depending on the circumstances), the
Escrow Agent receives any payment thereunder, then the Escrow Agent shall
forthwith pay such amount in Dollars and in immediately available funds by wire
transfer to (a) in the case of a payment of accrued interest on the Deposits (as
defined in the Deposit Agreement) or any Final Withdrawal, directly to the
Paying Agent Account and (b) in the case of any Purchase Withdrawal, directly to
the Pass Through Trustee or its designee as specified and in the manner
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provided in the Applicable Notice of Purchase Withdrawal. The Escrow Agent
hereby waives any and all rights of set-off, combination of accounts, right of
retention or similar right (whether arising under applicable law, contract or
otherwise) it may have against amounts payable to the Paying Agent howsoever
arising.
SECTION 4. Other Actions. The Escrow Agent shall take such
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other actions under or in respect of the Deposit Agreement (including, without
limitation, the enforcement of the obligations of the Depositary thereunder) as
the Investors, by an Action of Investors, may from time to time request.
SECTION 5. Representations and Warranties of the Escrow Agent.
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The Escrow Agent represents and warrants to Midway, the Investors, the Paying
Agent and the Pass Through Trustee as follows:
(i) it is a national banking association duly organized
and validly existing in good standing under the laws of the
United States of America;
(ii) it has full power, authority and legal right to
conduct its business and operations as currently conducted and
to enter into and perform its obligations under this Agreement
and the Deposit Agreement;
(iii) the execution, delivery and performance of each of
this Agreement and the Deposit Agreement have been duly
authorized by all necessary corporate action on the part of it
and do not require any stockholder approval, or approval or
consent of any trustee or holder of any indebtedness or
obligations of it, and each such document has been duly
executed and delivered by it and constitutes its legal, valid
and binding obligations enforceable against it in accordance
with the terms hereof or thereof except as such enforceability
may be limited by bankruptcy, insolvency, moratorium,
reorganization or other similar laws or equitable principles
of general application to or affecting the enforcement of
creditors' rights generally (regardless of whether such
enforceability is considered in a proceeding in equity or at
law);
(iv) no authorization, consent or approval of or other
action by, and no notice to or filing with, any United States
federal or state governmental authority or regulatory body is
required for the execution, delivery or performance by it of
this Agreement or the Deposit Agreement;
(v) neither the execution, delivery or performance by
it of this Agreement or the Deposit Agreement, nor compliance
with the terms and provisions hereof or thereof, conflicts or
will conflict with or results or will result in a breach or
violation of any of the terms, conditions or provisions of, or
will require any consent or
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approval under, any law, governmental rule or regulation or
the charter documents, as amended, or bylaws, as amended, of
it or any similar instrument binding on it or any order, writ,
injunction or decree of any court or governmental authority
against it or by which it or any of its properties is bound or
any indenture, mortgage or contract or other agreement or
instrument to which it is a party or by which it or any of its
properties is bound, or constitutes or will constitute a
default thereunder or results or will result in the imposition
of any lien upon any of its properties; and
(vi) there are no pending or, to its knowledge,
threatened actions, suits, investigations or proceedings
(whether or not purportedly on behalf of it) against or
affecting it or any of its property before or by any court or
administrative agency which, if adversely determined, (A)
would adversely affect the ability of it to perform its
obligations under this Agreement or the Deposit Agreement or
(B) would call into question or challenge the validity of this
Agreement or the Deposit Agreement or the enforceability
hereof or thereof in accordance with the terms hereof or
thereof, nor is the Escrow Agent in default with respect to
any order of any court, governmental authority, arbitration
board or administrative agency so as to adversely affect its
ability to perform its obligations under this Agreement or the
Deposit Agreement.
SECTION 6. Representations and Warranties of the Paying Agent.
--------------------------------------------------
The Paying Agent represents and warrants to Midway, the Investors, the Escrow
Agent and the Pass Through Trustee as follows:
(i) it is a state-chartered commercial bank duly
organized and validly existing in good standing under the laws
of the State of Maryland;
(ii) it has full power, authority and legal right to
conduct its business and operations as currently conducted and
to enter into and perform its obligations under this
Agreement;
(iii) the execution, delivery and performance of this
Agreement has been duly authorized by all necessary corporate
action on the part of it and does not require any stockholder
approval, or approval or consent of any trustee or holder of
any indebtedness or obligations of it, and such document has
been duly executed and delivered by it and constitutes its
legal, valid and binding obligations enforceable against it in
accordance with the terms hereof except as such enforceability
may be limited by bankruptcy, insolvency, moratorium,
reorganization or other similar laws or equitable principles
of general application to or affecting the enforcement of
creditors' rights generally (regardless of whether such
enforceability is considered in a proceeding in equity or at
law);
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(iv) no authorization, consent or approval of or other
action by, and no notice to or filing with, any State of
Maryland governmental authority or regulatory body is required
for the execution, delivery or performance by it of this
Agreement;
(v) neither the execution, delivery or performance by
it of this Agreement, nor compliance with the terms and
provisions hereof, conflicts or will conflict with or results
or will result in a breach or violation of any of the terms,
conditions or provisions of, or will require any consent or
approval under, any law, governmental rule or regulation or
the articles of association documents, as amended, or bylaws,
as amended, of it or any similar instrument binding on it or
any order, writ, injunction or decree of any court or
governmental authority against it or by which it or any of its
properties is bound or any indenture, mortgage or contract or
other agreement or instrument to which it is a party or by
which it or any of its properties is bound, or constitutes or
will constitute a default thereunder or results or will result
in the imposition of any lien upon any of its properties; and
(vi) there are no pending or, to its knowledge,
threatened actions, suits, investigations or proceedings
(whether or not purportedly on behalf of it) against or
affecting it or any of its property before or by any court or
administrative agency which, if adversely determined, (A)
would adversely affect the ability of it to perform its
obligations under this Agreement or (B) would call into
question or challenge the validity of this Agreement or the
enforceability hereof in accordance with the terms hereof, nor
is the Paying Agent in default with respect to any order of
any court, governmental authority, arbitration board or
administrative agency so as to adversely affect its ability to
perform its obligations under this Agreement.
SECTION 7. Indemnification. Except for actions expressly
---------------
required of the Escrow Agent or the Paying Agent hereunder, each of the Escrow
Agent and the Paying Agent shall in all cases be fully justified in failing or
refusing to act hereunder unless it shall have been indemnified by the party
requesting such action in a manner reasonably satisfactory to it against any and
all liability and expense which may be incurred by it by reason of taking or
continuing to take any such action. In the event Midway requests any amendment
to any Operative Agreement (as defined in the Note Purchase Agreement), the Pass
Through Trustee, solely to the extent of funds made available by Midway for such
purpose, agrees to pay all reasonable fees and expenses (including, without
limitation, fees and disbursements of counsel) of the Escrow Agent and the
Paying Agent in connection therewith.
SECTION 8. Amendment, Etc. Upon request of the Pass Through
--------------
Trustee and approval by an Action of Investors, the Escrow Agent shall enter
into an amendment to this Agreement, so long as such amendment does not
adversely affect the rights or obligations of the Escrow Agent or the Paying
Agent, provided that upon request of the Pass Through Trustee and
--------
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without any consent of the Investors, the Escrow Agent shall enter into an
amendment to this Agreement for any of the following purposes:
(1) to correct or supplement any provision in this Agreement
which may be defective or inconsistent with any other provision herein
or to cure any ambiguity or correct any mistake or to modify any other
provision with respect to matters or questions arising under this
Agreement, provided that any such action shall not materially adversely
--------
affect the interests of the Investors; or
(2) to comply with any requirement of the SEC, applicable law,
rules or regulations of any exchange or quotation system on which the
Certificates are listed or any regulatory body; or
(3) to evidence and provide for the acceptance of appointment
under this Agreement of a successor Escrow Agent, successor Paying
Agent or successor Pass Through Trustee.
SECTION 9. Notices. Unless otherwise expressly provided
-------
herein, any notice or other communication under this Agreement shall be in
writing (including by facsimile) and shall be deemed to be given and effective
upon receipt thereof. All notices shall be sent to (a) in the case of the
Investors, as their respective addresses shall appear in the Register, (b) in
the case of the Escrow Agent, First Union Trust Company, National Association,
One Xxxxxx Square, 000 Xxxx Xxxxxx, Xxxxx 000, Xxxxxxxxxx, Xxxxxxxx 00000,
Attention: Corporate Trust Administration (Telecopier: (000) 000-0000), (c) in
the case of the Pass Through Trustee, Allfirst Bank, 00 Xxxxx Xxxxxxx Xxxxxx,
Mail Code 101-591, Xxxxxxxxx, Xxxxxxxx 00000, Attention: Corporate Trust
Department (Telecopier: (000) 000-0000) or (d) in the case of the Paying Agent,
Allfirst Bank, 00 Xxxxx Xxxxxxx Xxxxxx, Mail Code 101-591, Xxxxxxxxx, Xxxxxxxx
00000, Attention: Corporate Trust Department (Telecopier: (000) 000-0000), in
each case with a copy to Midway, Midway Airlines Corporation, 0000 Xxxxxx Xxxx,
Xxxxx 000, Xxxxxxxxxxx, Xxxxx Xxxxxxxx 00000, Attention: General Counsel
(Telecopier: (000) 000-0000) (or at such other address as any such party may
specify from time to time in a written notice to the other parties). On or prior
to the execution of this Agreement, the Pass Through Trustee has delivered to
the Escrow Agent a certificate containing specimen signatures of the
representatives of the Pass Through Trustee who are authorized to give notices
and instructions with respect to this Agreement. The Escrow Agent may
conclusively rely on such certificate until the Escrow Agent receives written
notice from the Pass Through Trustee to the contrary.
SECTION 10. Transfer. No party hereto shall be entitled to
--------
assign or otherwise transfer this Agreement (or any interest herein) other than
(in the case of the Escrow Agent) to a successor escrow agent under Section 1.06
hereof or (in the case of the Paying Agent) to a successor paying agent under
Section 2.04 hereof, and any purported assignment in violation thereof shall be
void. This Agreement shall be binding upon the parties hereto and their
respective successors and (in the case of the Escrow Agent and the Paying Agent)
their respective permitted assigns.
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SECTION 11. Entire Agreement. This Agreement sets forth all of
----------------
the promises, covenants, agreements, conditions and understandings among the
Escrow Agent, the Paying Agent, the Underwriters and the Pass Through Trustee
with respect to the subject matter hereof, and supersedes all prior and
contemporaneous agreements and undertakings, inducements or conditions, express
or implied, oral or written.
SECTION 12. Governing Law. This Agreement shall be governed
-------------
by, and construed in accordance with, the laws of the State of New York.
SECTION 13. Waiver of Jury Trial Right. EACH OF THE ESCROW
---------------------------
AGENT, THE PAYING AGENT, THE INVESTORS AND THE PASS THROUGH TRUSTEE ACKNOWLEDGES
AND ACCEPTS THAT IN ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO
THIS AGREEMENT SUCH PARTY IRREVOCABLY WAIVES ITS RIGHT TO A TRIAL BY JURY.
SECTION 14. Counterparts. This Agreement may be executed in
-------------
one or more counterparts all of which taken together shall constitute one
instrument.
[The remainder of this page is intentionally left blank]
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IN WITNESS WHEREOF, the Escrow Agent, the Paying Agent, the
Placement Agents and the Pass Through Trustee have caused this Escrow and Paying
Agent Agreement (Class C) to be duly executed as of the day and year first above
written.
XXXXXX XXXXXXX & CO. INCORPORATED; and
SEABURY SECURITIES LLC
as Placement Agents
By: XXXXXX XXXXXXX & CO. INCORPORATED
By: /s/ Xxxxxxxxxxx X. Xxxxxx
-----------------------------------------
Name: Xxxxxxxxxxx X. Xxxxxx
Title: Principal
ALLFIRST BANK, not in its individual capacity, but
solely as Pass Through Trustee for and on behalf of M
idway Airlines Pass Through Trust 2000-1C
By: /s/ Xxxxxx X. Xxxxx
-----------------------------------------
Name: Xxxxxx X. Xxxxx
Title: Vice President
ALLFIRST BANK, as Paying Agent
By: /s/ Xxxxxx X. Xxxxx
------------------------------------------
Name: Xxxxxx X. Xxxxx
Title: Vice President
FIRST UNION TRUST COMPANY, NATIONAL
ASSOCIATION, as Escrow Agent
By: /s/ Xxxxxxxx X. Xxxxxxx
-----------------------------------------
Name: Xxxxxxxx X. Xxxxxxx
Title: Vice President
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EXHIBIT A
MIDWAY AIRLINES 2000-1C ESCROW RECEIPT
No. _
This Escrow Receipt evidences a fractional undivided interest
in amounts ("Account Amounts") from time to time deposited into a certain paying
---------------
agent account (the "Paying Agent Account") described in the Escrow and Paying
--------------------
Agent Agreement (Class C) dated as of September 27, 2000 (as amended, modified
or supplemented from time to time, the "Escrow and Paying Agent Agreement")
---------------------------------
among First Union Trust Company, National Association, as Escrow Agent (in such
capacity, together with its successors in such capacity, the "Escrow Agent"),
------------
Xxxxxx Xxxxxxx & Co. Incorporated and Seabury Securities LLC, as Placement
Agents, Allfirst Bank, as Pass Through Trustee (in such capacity, together with
its successors in such capacity, the "Pass Through Trustee") and Allfirst Bank,
--------------------
as paying agent (in such capacity, together with its successors in such
capacity, the "Paying Agent"). Capitalized terms not defined herein shall have
------------
the meanings assigned to them in the Escrow and Paying Agent Agreement.
This Escrow Receipt is issued under and is subject to the
terms, provisions and conditions of the Escrow and Paying Agent Agreement. By
virtue of its acceptance hereof the holder of this Escrow Receipt assents and
agrees to be bound by the provisions of the Escrow and Paying Agent Agreement
and this Escrow Receipt.
This Escrow Receipt represents a fractional undivided interest
in amounts deposited from time to time in the Paying Agent Account, and grants
or represents no rights, benefits or interests of any kind in respect of any
assets or property other than such amounts. This Escrow Receipt evidences the
same percentage interest in the Account Amounts as the Fractional Undivided
Interest in the Pass Through Trust evidenced by the Certificate to which this
Escrow Receipt is affixed.
All payments and distributions made to Receiptholders in
respect of the Escrow Receipt shall be made only from Account Amounts deposited
in the Paying Agent Account. The holder of this Escrow Receipt, by its
acceptance of this Escrow Receipt, agrees that it will look solely to the
Account Amounts for any payment or distribution due to it pursuant to this
Escrow Receipt and that it will not have any recourse to Midway, the Pass
Through Trustee, the Paying Agent or the Escrow Agent, except as expressly
provided herein or in the Pass Through Trust Agreement. No Receiptholder of this
Escrow Receipt shall have any right to vote or in any manner otherwise control
the operation and management of the Paying Agent Account, nor shall anything set
forth herein, or contained in the terms of this Escrow Receipt, be construed so
as to constitute the Receiptholders from time to time as partners or members of
an association.
This Escrow Receipt may not be assigned or transferred except
in connection with the assignment or transfer of the Certificate to which this
Escrow Receipt is affixed. After payment to the holder hereof of its Escrow
Interest in the Final Distribution, upon the request of the Pass Through
Trustee, the holder hereof will return this Escrow Receipt to the Pass Through
Trustee.
The Paying Agent may treat the person in whose name the
Certificate to which this Escrow Receipt is attached as the owner hereof for all
purposes, and the Paying Agent shall not be affected by any notice to the
contrary.
THIS ESCROW RECEIPT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.
[The remainder of this page is intentionally left blank]
-2-
IN WITNESS WHEREOF, the Escrow Agent has caused this Escrow
Receipt to be duly executed.
Dated: September __, 2000
First Union Trust Company, National
Association, as Escrow Agent
By ________________________________
Name:
Title:
-3-
EXHIBIT B
WITHDRAWAL CERTIFICATE
(Class C)
First Union Trust Company, National Association
as Escrow Agent
Dear Sirs:
Reference is made to the Escrow and Paying Agent Agreement,
dated as of September 27, 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 Notice of Purchase
Withdrawal attached as Annex A hereto and immediately transmit by facsimile to
the Depositary, at Allfirst Bank, Attention: Xxxxxx X. Xxxxx and Xxxxxx Xxxxxxxx
(facsimile no. (000) 000-0000).
Capitalized terms used herein but not defined herein shall
have the meanings set forth in the Agreement.
Very truly yours,
ALLFIRST BANK, not in its individual
capacity but solely as Pass Through Trustee
By ________________________________
Name
Dated:__________________ , 200_
ANNEX A to
WITHDRAWAL CERTIFICATE
NOTICE OF PURCHASE WITHDRAWAL
Allfirst Bank
00 Xxxxx Xxxxxxx Xxxxxx
Mail Code 101-591
Baltimore, Maryland
Attention: Xxxxxx X. Xxxxx and Xxxxxx Xxxxxxxx
Telecopier: (000) 000-0000
Gentlemen:
Reference is made to the Deposit Agreement (Class C) dated as
of September 27, 2000 (the "Deposit Agreement") between First Union Trust
Company, National Association, as Escrow Agent, and Allfirst Bank, as Depositary
(the "Depositary") and to Account No. 76966 (the "Account").
In accordance with Section 2.3(a) of the Deposit Agreement,
the undersigned hereby requests the withdrawal of $_________ from the Account on
______________.
The undersigned hereby directs the Depositary to pay the
proceeds of the Deposit to Allfirst Bank, ABA No. 000000000, Account No. 090-
02764, Attention: Credit Trust Receipts, Reference: Midway 2000 EETC A/C 76966
on __________, 200_, upon the telephonic request of a representative of the Pass
Through Trustee.
First Union Trust Company, National Association
as Escrow Agent
By__________________________
Name:
Title:
Dated: As of [ ]
