EX-4.12 14 d708993dex412.htm EX-4.12 EX-4.12

Exhibit 4.12

EXECUTION VERSION

 

 

NOTE PURCHASE AGREEMENT

Dated as of February 11, 2019

Among

UNITED AIRLINES, INC.,

WILMINGTON TRUST, NATIONAL ASSOCIATION,

as Pass Through Trustee under each of the

Pass Through Trust Agreements

WILMINGTON TRUST, NATIONAL ASSOCIATION,

as Subordination Agent

U.S. BANK NATIONAL ASSOCIATION,

as Escrow Agent

and

WILMINGTON TRUST, NATIONAL ASSOCIATION,

as Paying Agent

 

 


INDEX TO NOTE PURCHASE AGREEMENT

 

         Page  

SECTION 1.

 

Financing of Aircraft

     3  

SECTION 2.

 

Conditions Precedent

     7  

SECTION 3.

 

Representations and Warranties

     7  

SECTION 4.

 

Covenants

     12  

SECTION 5.

 

Notices

     16  

SECTION 6.

 

Expenses

     16  

SECTION 7.

 

Further Assurances

     18  

SECTION 8.

 

Miscellaneous

     18  

SECTION 9.

 

Governing Law

     19  

Schedules

 

Schedule I   

Aircraft and Scheduled Delivery Months

Schedule II   

Trust Supplements

Schedule III   

Required Terms

Annex
Annex A   

Definitions

Exhibits
Exhibit A   

Form of Closing Notice

Exhibit B   

Form of Participation Agreement

Exhibit C   

Form of Indenture


NOTE PURCHASE AGREEMENT

This NOTE PURCHASE AGREEMENT, dated as of February 11, 2019 (this “Agreement”), is among (i) UNITED AIRLINES, INC., a Delaware corporation (the “Company”), (ii) WILMINGTON TRUST, NATIONAL ASSOCIATION (“WTNA”), a national banking association, 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 two separate Pass Through Trust Agreements (as defined below), (iii) WILMINGTON TRUST, NATIONAL ASSOCIATION, a national banking association, 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) U.S. 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, NATIONAL ASSOCIATION, a national banking association, 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 Manufacturers pursuant to the applicable Aircraft Purchase Agreement for the delivery of nine Boeing 737 MAX 9 aircraft, six Boeing 787-10 aircraft and ten Embraer ERJ 175LL aircraft listed in Schedule I hereto (together with any aircraft substituted therefor in accordance with the applicable Aircraft Purchase Agreement prior to the delivery thereof, the “Aircraft”), provided that certain of such Aircraft have been delivered to the Company prior to the date hereof (the “Delivered Aircraft”, and the Aircraft excluding the Delivered Aircraft, the “New Aircraft”);

WHEREAS, pursuant to this Agreement the Company wishes to finance each of the Aircraft hereunder;

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 Aircraft contemplated hereby;

WHEREAS, the Company has entered into the Underwriting Agreement, dated as of January 28, 2019 (the “Underwriting Agreement”) with the Underwriters named therein (the “Underwriters”), which provides that the Company will cause the Pass Through Trustee under the Class AA Pass Through Trust (the “Class AA Pass Through Trustee”) and the Pass Through Trustee under the Class A Pass Through Trust (the “Class A Pass Through Trustee”) to issue and sell the Class AA Certificates and the Class A Certificates, respectively, to the Underwriters on the Issuance Date;

WHEREAS, concurrently with the execution and delivery of this Agreement, (i) the Escrow Agent and the Depositary have entered into two Deposit Agreements, dated as of the Issuance Date, one each relating to the Class AA and Class A Pass Through Trust (together, the “Deposit Agreements”) whereby the 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 Trustees 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 applicable Pass Through Trustees, Underwriters, Paying Agents and Escrow Agents have entered into two Escrow and Paying Agent Agreements, dated as of the Issuance Date, one each relating to the Class AA and Class A Pass Through Trust (together, 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, agreed to deliver escrow receipts to be affixed to each Certificate;

WHEREAS, upon receipt of a Closing Notice with respect to an 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 Aircraft;

 

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WHEREAS, upon the financing of each Aircraft, the Class AA and Class A Pass Through Trustees each 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 the applicable 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) National Australia Bank Limited, acting through its New York Branch (the “ Liquidity Provider”), has entered into two revolving credit agreements, one each for the benefit of the Certificateholders of the Class AA and Class A Pass Through Trusts, 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 Trustees, 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 Aircraft. (a) The Company confirms that (i) it currently owns the Delivered Aircraft that were delivered to it by the relevant Manufacturer prior to the date hereof and (ii) it has entered into each Aircraft Purchase Agreement with the relevant Manufacturer pursuant to which the Company has agreed to purchase, and the relevant Manufacturer has agreed to deliver, the New Aircraft subject thereto in the months specified in Schedule I hereto, all on and subject to terms and conditions specified in such Aircraft Purchase Agreement. The Company agrees to finance the 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 one Business Day’s prior notice substantially in the form of Exhibit A hereto (a “Closing Notice”) of the scheduled closing date (the “Scheduled Closing Date”) (or, in the case of a substitute Closing Notice under

 

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Section 1(e) or (f) hereof, one Business Day’s prior notice) in respect of the financing of each Aircraft under this Agreement, which notice shall:

(i) specify the Scheduled Closing Date of such 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);

(ii) instruct each Pass Through Trustee being requested to purchase Equipment Notes pursuant to such Closing Notice (the “Applicable Pass Through Trustees”) 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 Closing Notice and to perform its obligations thereunder;

(iii) instruct each of the Class AA and Class A 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 to such Pass Through Trustee in connection with the financing of such Aircraft (except in the case of any such financing on the Issuance Date); and

(iv) 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 Aircraft scheduled on such Funding Date (which shall in all respects comply with the Required Terms).

Notwithstanding the foregoing, in the case of any Aircraft to be financed hereunder on the Issuance Date, the Closing Notice therefor may be delivered to the parties hereto on the Issuance Date.

(c) Upon receipt of a Closing Notice, the Applicable Pass Through Trustees shall, and shall cause the Subordination Agent to, enter into and perform their respective obligations under the Participation Agreement specified in such Closing Notice, provided that such Participation Agreement and the Indenture to be entered into pursuant to such Participation Agreement shall be in the forms thereof annexed hereto in all material respects 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

 

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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 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 Required Terms. Notwithstanding the foregoing, an Indenture may be modified to the extent required for the issuance of Equipment Notes pursuant to Section 4(a)(vi) of this Agreement, subject to the terms of such Section and Section 9.1(c) or 9.1(d) of the Intercreditor Agreement, whichever may be applicable. 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 Aircraft, the Company shall cause WTNA (or such other person that meets the eligibility requirements to act as loan trustee under the 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 any Rating Agency, the Company shall deliver or cause to be delivered to such Rating Agency a true and complete copy of each Financing Agreement relating to the financing of each 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) The Company agrees that all Equipment Notes issued pursuant to any Indenture shall initially be registered in the name of the Subordination Agent on behalf of the Applicable Pass Through Trustees (or, in the case of any Additional Series Equipment Notes, on behalf of the Additional Series Pass Through Trustee with respect to the corresponding Additional Series Pass Through Certificates).

(e) If after giving any Closing Notice, there shall be a delay in the delivery of the Aircraft referred to therein, or if on the Scheduled Closing Date of the Aircraft referred to therein the financing thereof in the manner contemplated hereby shall not be consummated for whatever reason, the Company shall give the parties hereto and the Depositary prompt notice thereof. Concurrently with the giving of such notice of postponement or subsequently, the Company shall give the parties hereto and the Depositary a substitute Closing Notice specifying

 

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the date to which the financing of such Aircraft (or of another Aircraft of the same model 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 of the Class AA and Class A Pass Through Trustees 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 Aircraft, as specified in such substitute Closing Notice, shall take place on the re-scheduled Closing Date therefor (all on and subject to the terms and conditions of the relevant Financing Agreements) unless further postponed as provided herein.

(f) Anything in this Section 1 to the contrary notwithstanding, the Company shall have the right to accept delivery of an Aircraft (including a Delivered Aircraft) under the applicable Aircraft Purchase Agreement on the Delivery Date thereof by utilization of bridge financing of such Aircraft (including cash provided by the Company) and thereafter give the parties hereto and the Depositary a Closing Notice specifying a Funding Date (i) in the case of any New Aircraft, not later than 90 days after the Delivery Date of such New Aircraft, (ii) in the case of any Delivered Aircraft, not later than 60 days after the Issuance Date and (iii) in the case of any Aircraft, not later than the Cut-off Date, and otherwise complying with the provisions of Section 1(b) hereof. All other terms and conditions of this Agreement shall apply to the financing of any such Aircraft on the re-scheduled Funding Date therefor except the related Financing Agreements shall be amended to reflect the original delivery of such Aircraft to the Company.

(g) If the scheduled delivery date from the relevant Manufacturer for any New Aircraft is delayed more than 30 days beyond the last day of the month set forth opposite such New Aircraft under the heading “Scheduled Delivery Month” in Schedule I hereto, the Company may identify for delivery a substitute aircraft therefor meeting the following conditions (a “Substitute Aircraft”): (i) a Substitute Aircraft must be of the same model as the New Aircraft being replaced and (ii) the Company shall be obligated to obtain Rating Agency Confirmation in respect of the replacement of any New Aircraft by Substitute Aircraft. Upon the satisfaction of the conditions set forth above with respect to a Substitute Aircraft, the New Aircraft to be replaced shall cease to be subject to this Agreement and all

 

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rights and obligations of the parties hereto concerning such New 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 New Aircraft.

(h) The Company shall have no liability for the failure of the Pass Through Trustees to purchase Equipment Notes with respect to any Aircraft or Substitute Aircraft.

(i) 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 the Class AA or Class A 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 Applicable Pass Through Trustees to enter into, and to cause the Subordination Agent to enter into, any Participation Agreement as directed pursuant to a Closing Notice and to perform its obligations thereunder is subject to satisfaction of the following conditions:

(a) no Triggering Event shall have occurred; and

(b) the Company shall have delivered a certificate to each such Pass Through Trustee and the Liquidity Provider stating (i) that such Participation Agreement and the other Financing Agreements to be entered into pursuant to such Participation Agreement do not vary the Required Terms and (ii) that 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 or the Liquidity Provider, 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

 

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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) WTNA represents and warrants that:

(i) WTNA is a national banking association duly incorporated, validly existing and in good standing under the laws of the United States 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 United States and of the state of the United States in which it is located 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 WTNA, 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 WTNA, in its capacity as Subordination Agent, Pass Through Trustee or Paying Agent, as the case may be, of this Agreement

 

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and the performance by WTNA, 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 WTNA, 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 WTNA, 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 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 and of the state of the United States in which it is located 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

 

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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 the United States in which it is located 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 governmental authority or agency of the state of the United States in which it is located 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 any state of the United States in which it is located 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 any state of the United States in which it is located or any political subdivision thereof in connection with the acquisition, possession or

 

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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 and the state of the United States in which it is located 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

 

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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 a national banking association duly incorporated, validly existing and in good standing under the laws of the United States of America and has the full corporate power, authority and legal right under the laws of the United States and the state of the United States in which it is located pertaining to its banking, trust and fiduciary powers to execute and deliver this Agreement and each 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;

 

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(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 the Loan Trustee to the rights afforded to secured parties of aircraft equipment under Section 1110;

(iv) Section 4.07 of each Indenture 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;

(vi) the Company shall not repay and re-issue any Series A Equipment Notes or issue (or repay and reissue) any Additional Series Equipment Notes pursuant to any Indenture, unless it shall have obtained written confirmation from each Rating Agency that the reissuance or issuance of such Equipment Notes, as the case may be, will not result in (1) a reduction of the rating for any Class of Certificates then rated by such Rating Agency that will remain outstanding below the then current rating for such Class of Certificates or (2) a withdrawal or suspension of the rating of any Class of Certificates then rated by such Rating Agency that will remain outstanding. Any reissuance of the Series A Equipment Notes and issuance (or repayment and reissuance) of Additional Series Equipment Notes shall be subject to the terms of Section 9.1(c) and 9.1(d), respectively, of the Intercreditor Agreement; and

(vii) If (x) the Depositary’s long-term issuer credit rating and short-term issuer credit rating by Fitch Ratings, Inc. both fall below the Depositary Threshold Rating (or both such ratings have been withdrawn or suspended), or the Depositary’s short-term unsecured debt rating by Moody’s Investors Service, Inc. falls below the Depositary Threshold Rating (or if such rating has been withdrawn or suspended) or (y) the Company or the Depositary, in its sole discretion, gives written notice to the other of its election that the Depositary be replaced, the Company shall, within 35 days after such event occurring, cause the Depositary to be replaced with a depositary

 

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bank (a “Replacement Depositary”) on the following terms and preconditions:

(A) the Replacement Depositary must meet the Depositary Threshold Ratings and the Company shall have obtained written confirmation from each Rating Agency that such replacement will not cause a withdrawal, suspension or downgrading of any rating then in effect for any Class of Certificates by such Rating Agency (without regard to any withdrawal, suspension or downgrading of any rating of the Depositary being replaced);

(B) the Company shall pay all fees, expenses and other amounts then owing to the replaced Depositary and, except as expressly provided in clause (C) below, the Company shall pay any up-front fee of the Replacement Depositary and (without limitation of the foregoing) all out-of-pocket expenses (including reasonable fees and expenses of legal counsel) of the parties hereto (including without limitation all amounts payable to the Rating Agencies) incurred in connection with such replacement;

(C) solely in the case of the Depositary making an election in its discretion that it be replaced (and without limitation of clause (A) above), (x) the notice given by the Depositary to the Company shall nominate a Replacement Depositary, which shall satisfy all of terms and preconditions of this Section 4(a)(vii) (and the Company shall have the right to utilize such nominee as the Replacement Depositary or to select another Replacement Depositary), (y) the fees, expenses, indemnities and other amounts payable to the Replacement Depositary upon its execution of the Replacement Deposit Agreement or thereafter shall not to any extent exceed those which would have been payable to the Depositary had such replacement not occurred (it being specifically understood and agreed that any up-front fee of the Replacement Depositary shall be paid by the replaced Depositary, provided that, if the Company selects a Replacement Depositary other than the nominee of the replaced Depositary and the upfront fee of such selection exceeds that of such nominee, the Company shall pay such excess), and (without limitation of the foregoing) the Depositary shall pay all out-of-pocket expenses (including reasonable fees and expenses of legal counsel) of the parties hereto (including without limitation all amounts payable to the Rating Agencies) incurred in connection with such replacement, and (z) the Replacement Depositary shall be willing to enter into a Replacement Deposit Agreement for each of the Class AA and Class A Certificates with the Escrow Agent having the same

 

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terms and conditions (including without limitation as to the interest to be paid on the Deposits) as the Deposit Agreements to which the Depositary is a party; and

(D) the Company or, in the case of the Depositary making an election that it be replaced (unless the Company shall have selected such Replacement Depositary), the Depositary, shall cause the Replacement Depositary to enter into a Replacement Deposit Agreement for each of the Class AA and Class A Certificates with the Escrow Agent (and, upon request of the Company the Escrow Agent agrees to enter into any such Replacement Deposit Agreement) and shall cause the Replacement Depositary to deliver to the Company and each Rating Agency legal opinions and other closing documentation substantially similar in scope and substance as those that were delivered by the Depositary being replaced in connection with the execution and delivery of the Deposit Agreement being replaced.

Upon satisfaction of the foregoing conditions, the Company shall instruct the Class AA Pass Through Trustee and the Class A Pass Through Trustee, and each such Pass Through Trustee agrees, to execute and deliver to the Escrow Agent a duly completed Withdrawal Certificate (as defined in the Escrow and Paying Agent Agreements) together with a Notice of Replacement Withdrawal (as defined in the Escrow and Paying Agent Agreements).

Each of the parties hereto agrees, at the Company’s request, to enter into any amendments to this Agreement, the Escrow and Paying Agent Agreements and any other Operative Agreements as may be necessary or desirable to give effect to the replacement of the Depositary with the Replacement Depositary and the replacement of the Deposit Agreements with the Replacement Deposit Agreements.

Upon the execution and delivery of the Replacement Deposit Agreements, the Replacement Depositary shall be deemed to be the Depositary with all of the rights and obligations of the Depositary hereunder and under the other Operative Agreements and the Replacement Deposit Agreements shall be deemed to be the Deposit Agreements hereunder and under the other Operative Agreements, except that the obligations of the replaced Depositary under its Deposit Agreements resulting from the delivery of any Withdrawal Notice delivered thereunder shall remain in full force and effect notwithstanding the execution and delivery of the Replacement Deposit Agreements.

 

15


(viii) Promptly after the occurrence of a Triggering Event or an Indenture Default resulting from the failure of the Company to make payments on any Equipment Note and on every Regular Distribution Date while the Triggering Event or such Indenture Default shall be continuing, the Company will, at the Subordination Agent’s request from time to time but in any event no more frequently than once every three months, provide to the Subordination Agent a statement setting forth the following information with respect to each Aircraft then subject to the lien of an Indenture: (A) whether the Aircraft are currently in service or parked in storage, (B) the maintenance status of the Aircraft and (C) the location of the Engines (as defined in the respective Indentures to which such Aircraft are subject). As used in this sentence, the terms “Triggering Event”, “Indenture Default”, “Regular Distribution Date” shall have the respective meanings set forth in the Intercreditor Agreement as originally executed.

(b) WTNA, 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 WTNA giving any such notice, WTNA shall, subject to Section 9.01 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 or to such other address or facsimile number as such party may hereafter specify by notice to the other parties.

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

 

16


amount of the Deposits under the Deposit Agreements pertaining to the Class AA and Class A Pass Through Trusts and the denominator of which shall be the sum of (x) the then outstanding aggregate principal amount of the Series AA Equipment Notes and Series A Equipment Notes under all of the Indentures and (y) the then outstanding aggregate amount of the Deposits under the Deposit Agreements pertaining to the Class AA and Class A Pass Through Trusts.

(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, (C) the amount equal to interest on any Special Termination Advance (other than any Applied Special Termination Advance) payable under Section 3.07 of each Liquidity Facility minus Investment Earnings from such Special Termination Advance while such Special Termination Advance shall be outstanding, and (D) 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), (B) or (C)), (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”, “Applied Special Termination Advance”, “Downgrade Advance”, “Investment Earnings”, “Non-Extension Advance” and “Special Termination Advance” shall have the meanings specified in each Liquidity Facility.

 

17


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, in whole or in part, 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.

 

18


(c) This Agreement is not intended to, and shall not, provide any person not a party hereto (other than the Underwriters, each of the beneficiaries of Section 6 hereof and the Depositary as a beneficiary of Section 4(a)(vii)) with any rights of any nature whatsoever against any of the parties hereto, and no person not a party hereto (other than the Underwriters, each of the beneficiaries of Section 6 hereof and the Depositary as a beneficiary of Section 4(a)(vii)) shall have any right, power or privilege in respect of, or have any benefit or interest arising out of, this Agreement. To the extent that this Agreement expressly confers upon, gives or grants any right, power, privilege, benefit, interest, remedy or claim to any of the beneficiaries of Section 6 hereof (including, but not limited to rights, powers, privileges, benefits, interests, remedies and claims under Section 6) or to the Depositary with respect to Section 4(a)(vii), each such party is hereby recognized as a third party beneficiary hereunder and may enforce any such right, power, privilege, benefit, interest, remedy or claim.

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.

 

19


IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective officers thereunto duly authorized as of the day and year first above written.

 

UNITED AIRLINES, INC.
By  

/s/ Pamela S. Hendry

Name: Pamela S. Hendry
Title:   Vice President and Treasurer
Address:   233 S. Wacker Drive
  Chicago, IL 60606
  Attention: Chief Financial Officer
  Facsimile: (872) 825-0316
WILMINGTON TRUST, NATIONAL ASSOCIATION,
not in its individual capacity, except as otherwise provided herein, but solely as Pass Through Trustee
By  

/s/ Chad May

Name: Chad May
Title:   Vice President
Address:   1100 North Market Street
 

Wilmington, Delaware

19890-1605

  Attention: Corporate Trust
  Administration
  Facsimile: (302) 636-4140

S-1

 

Signature Page to Note Purchase Agreement 19-1 AA/A


WILMINGTON TRUST, NATIONAL ASSOCIATION,
not in its individual capacity, except as otherwise provided herein, but solely as Subordination Agent
By  

/s/ Chad May

Name: Chad May
Title:   Vice President
Address:   1100 North Market Street
 

Wilmington, Delaware

19890-1605

  Attention: Corporate Trust
  Administration
  Facsimile: (302) 636-4140
U.S. BANK NATIONAL ASSOCIATION,
as Escrow Agent
By  

/s/ David W. Doucette

Name: David W. Doucette
Title:   Vice President
Address:   Boston, MA Office
  One Federal Street, 3rd Floor
  EX-MA-FED
  Boston, MA 02110
  Attention: David W. Doucette
  Facsimile: (617) 603-6672

S-2

 

Signature Page to Note Purchase Agreement 19-1 AA/A


WILMINGTON TRUST, NATIONAL

    ASSOCIATION,

    as Paying Agent
By  

/s/ Chad May

Name: Chad May
Title:   Vice President
Address:   1100 North Market Street
 

Wilmington, Delaware

19890-1605

  Attention: Corporate Trust
  Administration
  Facsimile: (302) 636-4140

S-3

 

Signature Page to Note Purchase Agreement 19-1 AA/A


SCHEDULE I to

Note Purchase Agreement

AIRCRAFT AND SCHEDULED DELIVERY MONTHS

 

Aircraft Type

   Expected
Registration Number
   Expected
Manufacturer’s
Serial Number
   Scheduled
Delivery Month

Boeing 737 MAX 9

   N27509    43443    November 2018*

Boeing 737 MAX 9

   N27511    64493    December 2018*

Boeing 737 MAX 9

   N37510    43445    January 2019*

Boeing 737 MAX 9

   N47512    43449    January 2019*

Boeing 737 MAX 9

   N37513    64494    February 2019

Boeing 737 MAX 9

   N37514    43450    February 2019

Boeing 737 MAX 9

   N27515    43452    March 2019

Boeing 737 MAX 9

   N37516    43454    April 2019

Boeing 737 MAX 9

   N47517    43456    May 2019

Boeing 787-10

   N17002    40930    November 2018*

Boeing 787-10

   N12003    40935    December 2018*

Boeing 787-10

   N12004    60139    January 2019*

Boeing 787-10

   N12005    40937    February 2019

Boeing 787-10

   N12006    60140    March 2019

Boeing 787-10

   N16008    60138    March 2019

Embraer ERJ 175LL

   N601UX    17000790    April 2019

Embraer ERJ 175LL

   N602UX    TBD    May 2019

Embraer ERJ 175LL

   N603UX    TBD    May 2019

Embraer ERJ 175LL

   N604UX    TBD    May 2019

Embraer ERJ 175LL

   N605UX    TBD    June 2019

Embraer ERJ 175LL

   N606UX    TBD    June 2019

Embraer ERJ 175LL

   N607UX    TBD    June 2019

Embraer ERJ 175LL

   N608UX    TBD    July 2019

Embraer ERJ 175LL

   N609UX    TBD    July 2019

Embraer ERJ 175LL

   N610UX    TBD    July 2019

 

*

Indicates a Delivered Aircraft.


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 United Airlines Pass Through Trust, Series 2019-1AA-O.

Trust Supplement dated as of the Issuance Date between the Company and the Pass Through Trustee in respect of United Airlines Pass Through Trust, Series 2019-1A-O.


SCHEDULE III TO

Note Purchase Agreement

REQUIRED TERMS

Equipment Notes

Obligor:    United

Maximum Principal Amount:

The initial principal amount and amortization schedule of the Series AA and A Equipment Notes issued with respect to an Aircraft shall be as set forth in the following table for that Aircraft (it being understood that if the Equipment Notes are issued on or after a scheduled payment date set forth below, such payment date will not be included in the amortization schedule and the initial principal amount shall be reduced by the amount otherwise due on such payment date):


 

2

Boeing 737 MAX 9

 

     N27509  
     Equipment Note Ending Balance      Scheduled Payments of Principal  

Date

   Series AA
Equipment Note
     Series A
Equipment Note
     Series AA
Equipment Note
     Series A
Equipment Note
 

At Issuance

   $ 21,685,000.00      $ 8,970,000.00      $ 0.00      $ 0.00  

August 25, 2019

     21,685,000.00        8,970,000.00        0.00        0.00  

February 25, 2020

     21,231,101.52        8,788,448.62        453,898.48        181,551.38  

August 25, 2020

     20,678,732.09        8,560,501.78        552,369.43        227,946.84  

February 25, 2021

     20,126,362.66        8,332,554.94        552,369.43        227,946.84  

August 25, 2021

     19,573,993.23        8,104,608.10        552,369.43        227,946.84  

February 25, 2022

     19,021,623.80        7,876,661.26        552,369.43        227,946.84  

August 25, 2022

     18,469,254.37        7,648,714.42        552,369.43        227,946.84  

February 25, 2023

     17,916,884.94        7,420,767.58        552,369.43        227,946.84  

August 25, 2023

     17,364,515.51        7,192,820.74        552,369.43        227,946.84  

February 25, 2024

     16,812,146.08        6,964,873.90        552,369.43        227,946.84  

August 25, 2024

     16,259,776.65        6,736,927.06        552,369.43        227,946.84  

February 25, 2025

     15,707,407.22        6,508,980.22        552,369.43        227,946.84  

August 25, 2025

     15,155,037.79        6,281,033.38        552,369.43        227,946.84  

February 25, 2026

     14,602,668.36        6,053,086.54        552,369.43        227,946.84  

August 25, 2026

     14,050,298.93        5,825,139.70        552,369.43        227,946.84  

February 25, 2027

     13,497,929.50        5,597,192.86        552,369.43        227,946.84  

August 25, 2027

     12,945,560.07        5,369,246.02        552,369.43        227,946.84  

February 25, 2028

     12,393,190.64        5,141,299.18        552,369.43        227,946.84  

August 25, 2028

     11,840,821.21        4,913,352.34        552,369.43        227,946.84  

February 25, 2029

     11,288,451.78        4,685,405.50        552,369.43        227,946.84  

August 25, 2029

     10,736,082.35        4,457,458.66        552,369.43        227,946.84  

February 25, 2030

     10,183,712.92        4,229,511.82        552,369.43        227,946.84  

August 25, 2030

     9,631,343.49        4,001,564.98        552,369.43        227,946.84  

February 25, 2031

     9,078,974.06        3,773,618.14        552,369.43        227,946.84  

August 25, 2031

     0.00        0.00        9,078,974.06        3,773,618.14  
     N27511  
     Equipment Note Ending Balance      Scheduled Payments of Principal  

Date

   Series AA
Equipment Note
     Series A
Equipment Note
     Series AA
Equipment Note
     Series A
Equipment Note
 

At Issuance

   $ 21,722,000.00      $ 8,986,000.00      $ 0.00      $ 0.00  

August 25, 2019

     21,722,000.00        8,986,000.00        0.00        0.00  

February 25, 2020

     21,267,327.05        8,804,124.78        454,672.95        181,875.22  

August 25, 2020

     20,714,015.14        8,575,771.35        553,311.91        228,353.43  

February 25, 2021

     20,160,703.23        8,347,417.92        553,311.91        228,353.43  

August 25, 2021

     19,607,391.32        8,119,064.49        553,311.91        228,353.43  

February 25, 2022

     19,054,079.41        7,890,711.06        553,311.91        228,353.43  

August 25, 2022

     18,500,767.50        7,662,357.63        553,311.91        228,353.43  

February 25, 2023

     17,947,455.59        7,434,004.20        553,311.91        228,353.43  

August 25, 2023

     17,394,143.68        7,205,650.77        553,311.91        228,353.43  

February 25, 2024

     16,840,831.77        6,977,297.34        553,311.91        228,353.43  

August 25, 2024

     16,287,519.86        6,748,943.91        553,311.91        228,353.43  

February 25, 2025

     15,734,207.95        6,520,590.48        553,311.91        228,353.43  

August 25, 2025

     15,180,896.04        6,292,237.05        553,311.91        228,353.43  

February 25, 2026

     14,627,584.13        6,063,883.62        553,311.91        228,353.43  

August 25, 2026

     14,074,272.22        5,835,530.19        553,311.91        228,353.43  

February 25, 2027

     13,520,960.31        5,607,176.76        553,311.91        228,353.43  

August 25, 2027

     12,967,648.40        5,378,823.33        553,311.91        228,353.43  

February 25, 2028

     12,414,336.49        5,150,469.90        553,311.91        228,353.43  

August 25, 2028

     11,861,024.58        4,922,116.47        553,311.91        228,353.43  

February 25, 2029

     11,307,712.67        4,693,763.04        553,311.91        228,353.43  

August 25, 2029

     10,754,400.76        4,465,409.61        553,311.91        228,353.43  

February 25, 2030

     10,201,088.85        4,237,056.18        553,311.91        228,353.43  

August 25, 2030

     9,647,776.94        4,008,702.75        553,311.91        228,353.43  

February 25, 2031

     9,094,465.03        3,780,349.32        553,311.91        228,353.43  

August 25, 2031

     0.00        0.00        9,094,465.03        3,780,349.32  


 

3

     N37510  
     Equipment Note Ending Balance      Scheduled Payments of Principal  

Date

   Series AA
Equipment Note
     Series A
Equipment Note
     Series AA
Equipment Note
     Series A
Equipment Note
 

At Issuance

   $ 21,961,000.00      $ 9,084,000.00      $ 0.00      $ 0.00  

August 25, 2019

     21,961,000.00        9,084,000.00        0.00        0.00  

February 25, 2020

     21,501,324.44        8,900,141.27        459,675.56        183,858.73  

August 25, 2020

     20,941,924.62        8,669,297.45        559,399.82        230,843.82  

February 25, 2021

     20,382,524.80        8,438,453.63        559,399.82        230,843.82  

August 25, 2021

     19,823,124.98        8,207,609.81        559,399.82        230,843.82  

February 25, 2022

     19,263,725.16        7,976,765.99        559,399.82        230,843.82  

August 25, 2022

     18,704,325.34        7,745,922.17        559,399.82        230,843.82  

February 25, 2023

     18,144,925.52        7,515,078.35        559,399.82        230,843.82  

August 25, 2023

     17,585,525.70        7,284,234.53        559,399.82        230,843.82  

February 25, 2024

     17,026,125.88        7,053,390.71        559,399.82        230,843.82  

August 25, 2024

     16,466,726.06        6,822,546.89        559,399.82        230,843.82  

February 25, 2025

     15,907,326.24        6,591,703.07        559,399.82        230,843.82  

August 25, 2025

     15,347,926.42        6,360,859.25        559,399.82        230,843.82  

February 25, 2026

     14,788,526.60        6,130,015.43        559,399.82        230,843.82  

August 25, 2026

     14,229,126.78        5,899,171.61        559,399.82        230,843.82  

February 25, 2027

     13,669,726.96        5,668,327.79        559,399.82        230,843.82  

August 25, 2027

     13,110,327.14        5,437,483.97        559,399.82        230,843.82  

February 25, 2028

     12,550,927.32        5,206,640.15        559,399.82        230,843.82  

August 25, 2028

     11,991,527.50        4,975,796.33        559,399.82        230,843.82  

February 25, 2029

     11,432,127.68        4,744,952.51        559,399.82        230,843.82  

August 25, 2029

     10,872,727.86        4,514,108.69        559,399.82        230,843.82  

February 25, 2030

     10,313,328.04        4,283,264.87        559,399.82        230,843.82  

August 25, 2030

     9,753,928.22        4,052,421.05        559,399.82        230,843.82  

February 25, 2031

     9,194,528.40        3,821,577.23        559,399.82        230,843.82  

August 25, 2031

     0.00        0.00        9,194,528.40        3,821,577.23  
     N47512  
     Equipment Note Ending Balance      Scheduled Payments of Principal  

Date

   Series AA
Equipment Note
     Series A
Equipment Note
     Series AA
Equipment Note
     Series A
Equipment Note
 

At Issuance

   $ 21,961,000.00      $ 9,084,000.00      $ 0.00      $ 0.00  

August 25, 2019

     21,961,000.00        9,084,000.00        0.00        0.00  

February 25, 2020

     21,501,324.44        8,900,141.27        459,675.56        183,858.73  

August 25, 2020

     20,941,924.62        8,669,297.45        559,399.82        230,843.82  

February 25, 2021

     20,382,524.80        8,438,453.63        559,399.82        230,843.82  

August 25, 2021

     19,823,124.98        8,207,609.81        559,399.82        230,843.82  

February 25, 2022

     19,263,725.16        7,976,765.99        559,399.82        230,843.82  

August 25, 2022

     18,704,325.34        7,745,922.17        559,399.82        230,843.82  

February 25, 2023

     18,144,925.52        7,515,078.35        559,399.82        230,843.82  

August 25, 2023

     17,585,525.70        7,284,234.53        559,399.82        230,843.82  

February 25, 2024

     17,026,125.88        7,053,390.71        559,399.82        230,843.82  

August 25, 2024

     16,466,726.06        6,822,546.89        559,399.82        230,843.82  

February 25, 2025

     15,907,326.24        6,591,703.07        559,399.82        230,843.82  

August 25, 2025

     15,347,926.42        6,360,859.25        559,399.82        230,843.82  

February 25, 2026

     14,788,526.60        6,130,015.43        559,399.82        230,843.82  

August 25, 2026

     14,229,126.78        5,899,171.61        559,399.82        230,843.82  

February 25, 2027

     13,669,726.96        5,668,327.79        559,399.82        230,843.82  

August 25, 2027

     13,110,327.14        5,437,483.97        559,399.82        230,843.82  

February 25, 2028

     12,550,927.32        5,206,640.15        559,399.82        230,843.82  

August 25, 2028

     11,991,527.50        4,975,796.33        559,399.82        230,843.82  

February 25, 2029

     11,432,127.68        4,744,952.51        559,399.82        230,843.82  

August 25, 2029

     10,872,727.86        4,514,108.69        559,399.82        230,843.82  

February 25, 2030

     10,313,328.04        4,283,264.87        559,399.82        230,843.82  

August 25, 2030

     9,753,928.22        4,052,421.05        559,399.82        230,843.82  

February 25, 2031

     9,194,528.40        3,821,577.23        559,399.82        230,843.82  

August 25, 2031

     0.00        0.00        9,194,528.40        3,821,577.23  


 

4

     N37513  
     Equipment Note Ending Balance      Scheduled Payments of Principal  

Date

   Series AA
Equipment Note
     Series A
Equipment Note
     Series AA
Equipment Note
     Series A
Equipment Note
 

At Issuance

   $ 21,977,000.00      $ 9,092,000.00      $ 0.00      $ 0.00  

August 25, 2019

     21,977,000.00        9,092,000.00        0.00        0.00  

February 25, 2020

     21,516,989.53        8,907,979.36        460,010.47        184,020.64  

August 25, 2020

     20,957,182.15        8,676,932.24        559,807.38        231,047.12  

February 25, 2021

     20,397,374.77        8,445,885.12        559,807.38        231,047.12  

August 25, 2021

     19,837,567.39        8,214,838.00        559,807.38        231,047.12  

February 25, 2022

     19,277,760.01        7,983,790.88        559,807.38        231,047.12  

August 25, 2022

     18,717,952.63        7,752,743.76        559,807.38        231,047.12  

February 25, 2023

     18,158,145.25        7,521,696.64        559,807.38        231,047.12  

August 25, 2023

     17,598,337.87        7,290,649.52        559,807.38        231,047.12  

February 25, 2024

     17,038,530.49        7,059,602.40        559,807.38        231,047.12  

August 25, 2024

     16,478,723.11        6,828,555.28        559,807.38        231,047.12  

February 25, 2025

     15,918,915.73        6,597,508.16        559,807.38        231,047.12  

August 25, 2025

     15,359,108.35        6,366,461.04        559,807.38        231,047.12  

February 25, 2026

     14,799,300.97        6,135,413.92        559,807.38        231,047.12  

August 25, 2026

     14,239,493.59        5,904,366.80        559,807.38        231,047.12  

February 25, 2027

     13,679,686.21        5,673,319.68        559,807.38        231,047.12  

August 25, 2027

     13,119,878.83        5,442,272.56        559,807.38        231,047.12  

February 25, 2028

     12,560,071.45        5,211,225.44        559,807.38        231,047.12  

August 25, 2028

     12,000,264.07        4,980,178.32        559,807.38        231,047.12  

February 25, 2029

     11,440,456.69        4,749,131.20        559,807.38        231,047.12  

August 25, 2029

     10,880,649.31        4,518,084.08        559,807.38        231,047.12  

February 25, 2030

     10,320,841.93        4,287,036.96        559,807.38        231,047.12  

August 25, 2030

     9,761,034.55        4,055,989.84        559,807.38        231,047.12  

February 25, 2031

     9,201,227.17        3,824,942.72        559,807.38        231,047.12  

August 25, 2031

     0.00        0.00        9,201,227.17        3,824,942.72  
     N37514  
     Equipment Note Ending Balance      Scheduled Payments of Principal  

Date

   Series AA
Equipment Note
     Series A
Equipment Note
     Series AA
Equipment Note
     Series A
Equipment Note
 

At Issuance

   $ 21,977,000.00      $ 9,092,000.00      $ 0.00      $ 0.00  

August 25, 2019

     21,977,000.00        9,092,000.00        0.00        0.00  

February 25, 2020

     21,516,989.53        8,907,979.36        460,010.47        184,020.64  

August 25, 2020

     20,957,182.15        8,676,932.24        559,807.38        231,047.12  

February 25, 2021

     20,397,374.77        8,445,885.12        559,807.38        231,047.12  

August 25, 2021

     19,837,567.39        8,214,838.00        559,807.38        231,047.12  

February 25, 2022

     19,277,760.01        7,983,790.88        559,807.38        231,047.12  

August 25, 2022

     18,717,952.63        7,752,743.76        559,807.38        231,047.12  

February 25, 2023

     18,158,145.25        7,521,696.64        559,807.38        231,047.12  

August 25, 2023

     17,598,337.87        7,290,649.52        559,807.38        231,047.12  

February 25, 2024

     17,038,530.49        7,059,602.40        559,807.38        231,047.12  

August 25, 2024

     16,478,723.11        6,828,555.28        559,807.38        231,047.12  

February 25, 2025

     15,918,915.73        6,597,508.16        559,807.38        231,047.12  

August 25, 2025

     15,359,108.35        6,366,461.04        559,807.38        231,047.12  

February 25, 2026

     14,799,300.97        6,135,413.92        559,807.38        231,047.12  

August 25, 2026

     14,239,493.59        5,904,366.80        559,807.38        231,047.12  

February 25, 2027

     13,679,686.21        5,673,319.68        559,807.38        231,047.12  

August 25, 2027

     13,119,878.83        5,442,272.56        559,807.38        231,047.12  

February 25, 2028

     12,560,071.45        5,211,225.44        559,807.38        231,047.12  

August 25, 2028

     12,000,264.07        4,980,178.32        559,807.38        231,047.12  

February 25, 2029

     11,440,456.69        4,749,131.20        559,807.38        231,047.12  

August 25, 2029

     10,880,649.31        4,518,084.08        559,807.38        231,047.12  

February 25, 2030

     10,320,841.93        4,287,036.96        559,807.38        231,047.12  

August 25, 2030

     9,761,034.55        4,055,989.84        559,807.38        231,047.12  

February 25, 2031

     9,201,227.17        3,824,942.72        559,807.38        231,047.12  

August 25, 2031

     0.00        0.00        9,201,227.17        3,824,942.72  


 

5

     N27515  
     Equipment Note Ending Balance      Scheduled Payments of Principal  

Date

   Series AA
Equipment Note
     Series A
Equipment Note
     Series AA
Equipment Note
     Series A
Equipment Note
 

At Issuance

   $ 21,998,000.00      $ 9,100,000.00      $ 0.00      $ 0.00  

August 25, 2019

     21,998,000.00        9,100,000.00        0.00        0.00  

February 25, 2020

     21,537,549.97        8,915,817.44        460,450.03        184,182.56  

August 25, 2020

     20,977,207.67        8,684,567.02        560,342.30        231,250.42  

February 25, 2021

     20,416,865.37        8,453,316.60        560,342.30        231,250.42  

August 25, 2021

     19,856,523.07        8,222,066.18        560,342.30        231,250.42  

February 25, 2022

     19,296,180.77        7,990,815.76        560,342.30        231,250.42  

August 25, 2022

     18,735,838.47        7,759,565.34        560,342.30        231,250.42  

February 25, 2023

     18,175,496.17        7,528,314.92        560,342.30        231,250.42  

August 25, 2023

     17,615,153.87        7,297,064.50        560,342.30        231,250.42  

February 25, 2024

     17,054,811.57        7,065,814.08        560,342.30        231,250.42  

August 25, 2024

     16,494,469.27        6,834,563.66        560,342.30        231,250.42  

February 25, 2025

     15,934,126.97        6,603,313.24        560,342.30        231,250.42  

August 25, 2025

     15,373,784.67        6,372,062.82        560,342.30        231,250.42  

February 25, 2026

     14,813,442.37        6,140,812.40        560,342.30        231,250.42  

August 25, 2026

     14,253,100.07        5,909,561.98        560,342.30        231,250.42  

February 25, 2027

     13,692,757.77        5,678,311.56        560,342.30        231,250.42  

August 25, 2027

     13,132,415.47        5,447,061.14        560,342.30        231,250.42  

February 25, 2028

     12,572,073.17        5,215,810.72        560,342.30        231,250.42  

August 25, 2028

     12,011,730.87        4,984,560.30        560,342.30        231,250.42  

February 25, 2029

     11,451,388.57        4,753,309.88        560,342.30        231,250.42  

August 25, 2029

     10,891,046.27        4,522,059.46        560,342.30        231,250.42  

February 25, 2030

     10,330,703.97        4,290,809.04        560,342.30        231,250.42  

August 25, 2030

     9,770,361.67        4,059,558.62        560,342.30        231,250.42  

February 25, 2031

     9,210,019.37        3,828,308.20        560,342.30        231,250.42  

August 25, 2031

     0.00        0.00        9,210,019.37        3,828,308.20  
     N37516  
     Equipment Note Ending Balance      Scheduled Payments of Principal  

Date

   Series AA
Equipment Note
     Series A
Equipment Note
     Series AA
Equipment Note
     Series A
Equipment Note
 

At Issuance

   $ 22,015,000.00      $ 9,107,000.00      $ 0.00      $ 0.00  

August 25, 2019

     22,015,000.00        9,107,000.00        0.00        0.00  

February 25, 2020

     21,554,194.14        8,922,675.76        460,805.86        184,324.24  

August 25, 2020

     20,993,418.81        8,691,247.46        560,775.33        231,428.30  

February 25, 2021

     20,432,643.48        8,459,819.16        560,775.33        231,428.30  

August 25, 2021

     19,871,868.15        8,228,390.86        560,775.33        231,428.30  

February 25, 2022

     19,311,092.82        7,996,962.56        560,775.33        231,428.30  

August 25, 2022

     18,750,317.49        7,765,534.26        560,775.33        231,428.30  

February 25, 2023

     18,189,542.16        7,534,105.96        560,775.33        231,428.30  

August 25, 2023

     17,628,766.83        7,302,677.66        560,775.33        231,428.30  

February 25, 2024

     17,067,991.50        7,071,249.36        560,775.33        231,428.30  

August 25, 2024

     16,507,216.17        6,839,821.06        560,775.33        231,428.30  

February 25, 2025

     15,946,440.84        6,608,392.76        560,775.33        231,428.30  

August 25, 2025

     15,385,665.51        6,376,964.46        560,775.33        231,428.30  

February 25, 2026

     14,824,890.18        6,145,536.16        560,775.33        231,428.30  

August 25, 2026

     14,264,114.85        5,914,107.86        560,775.33        231,428.30  

February 25, 2027

     13,703,339.52        5,682,679.56        560,775.33        231,428.30  

August 25, 2027

     13,142,564.19        5,451,251.26        560,775.33        231,428.30  

February 25, 2028

     12,581,788.86        5,219,822.96        560,775.33        231,428.30  

August 25, 2028

     12,021,013.53        4,988,394.66        560,775.33        231,428.30  

February 25, 2029

     11,460,238.20        4,756,966.36        560,775.33        231,428.30  

August 25, 2029

     10,899,462.87        4,525,538.06        560,775.33        231,428.30  

February 25, 2030

     10,338,687.54        4,294,109.76        560,775.33        231,428.30  

August 25, 2030

     9,777,912.21        4,062,681.46        560,775.33        231,428.30  

February 25, 2031

     9,217,136.88        3,831,253.16        560,775.33        231,428.30  

August 25, 2031

     0.00        0.00        9,217,136.88        3,831,253.16  


 

6

     N47517  
     Equipment Note Ending Balance      Scheduled Payments of Principal  

Date

   Series AA
Equipment Note
     Series A
Equipment Note
     Series AA
Equipment Note
     Series A
Equipment Note
 

At Issuance

   $ 22,036,000.00      $ 9,115,000.00      $ 0.00      $ 0.00  

August 25, 2019

     22,036,000.00        9,115,000.00        0.00        0.00  

February 25, 2020

     21,574,754.58        8,930,513.84        461,245.42        184,486.16  

August 25, 2020

     21,013,444.33        8,698,882.24        561,310.25        231,631.60  

February 25, 2021

     20,452,134.08        8,467,250.64        561,310.25        231,631.60  

August 25, 2021

     19,890,823.83        8,235,619.04        561,310.25        231,631.60  

February 25, 2022

     19,329,513.58        8,003,987.44        561,310.25        231,631.60  

August 25, 2022

     18,768,203.33        7,772,355.84        561,310.25        231,631.60  

February 25, 2023

     18,206,893.08        7,540,724.24        561,310.25        231,631.60  

August 25, 2023

     17,645,582.83        7,309,092.64        561,310.25        231,631.60  

February 25, 2024

     17,084,272.58        7,077,461.04        561,310.25        231,631.60  

August 25, 2024

     16,522,962.33        6,845,829.44        561,310.25        231,631.60  

February 25, 2025

     15,961,652.08        6,614,197.84        561,310.25        231,631.60  

August 25, 2025

     15,400,341.83        6,382,566.24        561,310.25        231,631.60  

February 25, 2026

     14,839,031.58        6,150,934.64        561,310.25        231,631.60  

August 25, 2026

     14,277,721.33        5,919,303.04        561,310.25        231,631.60  

February 25, 2027

     13,716,411.08        5,687,671.44        561,310.25        231,631.60  

August 25, 2027

     13,155,100.83        5,456,039.84        561,310.25        231,631.60  

February 25, 2028

     12,593,790.58        5,224,408.24        561,310.25        231,631.60  

August 25, 2028

     12,032,480.33        4,992,776.64        561,310.25        231,631.60  

February 25, 2029

     11,471,170.08        4,761,145.04        561,310.25        231,631.60  

August 25, 2029

     10,909,859.83        4,529,513.44        561,310.25        231,631.60  

February 25, 2030

     10,348,549.58        4,297,881.84        561,310.25        231,631.60  

August 25, 2030

     9,787,239.33        4,066,250.24        561,310.25        231,631.60  

February 25, 2031

     9,225,929.08        3,834,618.64        561,310.25        231,631.60  

August 25, 2031

     0.00        0.00        9,225,929.08        3,834,618.64  

Boeing 787-10

 

     N17002  
     Equipment Note Ending Balance      Scheduled Payments of Principal  

Date

   Series AA
Equipment Note
     Series A
Equipment Note
     Series AA
Equipment Note
     Series A
Equipment Note
 

At Issuance

   $ 65,024,000.00      $ 26,899,000.00      $ 0.00      $ 0.00  

August 25, 2019

     65,024,000.00        26,899,000.00        0.00        0.00  

February 25, 2020

     63,662,953.43        26,354,568.49        1,361,046.57        544,431.51  

August 25, 2020

     62,006,634.78        25,671,007.51        1,656,318.65        683,560.98  

February 25, 2021

     60,350,316.13        24,987,446.53        1,656,318.65        683,560.98  

August 25, 2021

     58,693,997.48        24,303,885.55        1,656,318.65        683,560.98  

February 25, 2022

     57,037,678.83        23,620,324.57        1,656,318.65        683,560.98  

August 25, 2022

     55,381,360.18        22,936,763.59        1,656,318.65        683,560.98  

February 25, 2023

     53,725,041.53        22,253,202.61        1,656,318.65        683,560.98  

August 25, 2023

     52,068,722.88        21,569,641.63        1,656,318.65        683,560.98  

February 25, 2024

     50,412,404.23        20,886,080.65        1,656,318.65        683,560.98  

August 25, 2024

     48,756,085.58        20,202,519.67        1,656,318.65        683,560.98  

February 25, 2025

     47,099,766.93        19,518,958.69        1,656,318.65        683,560.98  

August 25, 2025

     45,443,448.28        18,835,397.71        1,656,318.65        683,560.98  

February 25, 2026

     43,787,129.63        18,151,836.73        1,656,318.65        683,560.98  

August 25, 2026

     42,130,810.98        17,468,275.75        1,656,318.65        683,560.98  

February 25, 2027

     40,474,492.33        16,784,714.77        1,656,318.65        683,560.98  

August 25, 2027

     38,818,173.68        16,101,153.79        1,656,318.65        683,560.98  

February 25, 2028

     37,161,855.03        15,417,592.81        1,656,318.65        683,560.98  

August 25, 2028

     35,505,536.38        14,734,031.83        1,656,318.65        683,560.98  

February 25, 2029

     33,849,217.73        14,050,470.85        1,656,318.65        683,560.98  

August 25, 2029

     32,192,899.08        13,366,909.87        1,656,318.65        683,560.98  

February 25, 2030

     30,536,580.43        12,683,348.89        1,656,318.65        683,560.98  

August 25, 2030

     28,880,261.78        11,999,787.91        1,656,318.65        683,560.98  

February 25, 2031

     27,223,943.13        11,316,226.93        1,656,318.65        683,560.98  

August 25, 2031

     0.00        0.00        27,223,943.13        11,316,226.93  


 

7

     N12003  
     Equipment Note Ending Balance      Scheduled Payments of Principal  

Date

   Series AA
Equipment Note
     Series A
Equipment Note
     Series AA
Equipment Note
     Series A
Equipment Note
 

At Issuance

   $ 65,024,000.00      $ 26,899,000.00      $ 0.00      $ 0.00  

August 25, 2019

     65,024,000.00        26,899,000.00        0.00        0.00  

February 25, 2020

     63,662,953.43        26,354,568.49        1,361,046.57        544,431.51  

August 25, 2020

     62,006,634.78        25,671,007.51        1,656,318.65        683,560.98  

February 25, 2021

     60,350,316.13        24,987,446.53        1,656,318.65        683,560.98  

August 25, 2021

     58,693,997.48        24,303,885.55        1,656,318.65        683,560.98  

February 25, 2022

     57,037,678.83        23,620,324.57        1,656,318.65        683,560.98  

August 25, 2022

     55,381,360.18        22,936,763.59        1,656,318.65        683,560.98  

February 25, 2023

     53,725,041.53        22,253,202.61        1,656,318.65        683,560.98  

August 25, 2023

     52,068,722.88        21,569,641.63        1,656,318.65        683,560.98  

February 25, 2024

     50,412,404.23        20,886,080.65        1,656,318.65        683,560.98  

August 25, 2024

     48,756,085.58        20,202,519.67        1,656,318.65        683,560.98  

February 25, 2025

     47,099,766.93        19,518,958.69        1,656,318.65        683,560.98  

August 25, 2025

     45,443,448.28        18,835,397.71        1,656,318.65        683,560.98  

February 25, 2026

     43,787,129.63        18,151,836.73        1,656,318.65        683,560.98  

August 25, 2026

     42,130,810.98        17,468,275.75        1,656,318.65        683,560.98  

February 25, 2027

     40,474,492.33        16,784,714.77        1,656,318.65        683,560.98  

August 25, 2027

     38,818,173.68        16,101,153.79        1,656,318.65        683,560.98  

February 25, 2028

     37,161,855.03        15,417,592.81        1,656,318.65        683,560.98  

August 25, 2028

     35,505,536.38        14,734,031.83        1,656,318.65        683,560.98  

February 25, 2029

     33,849,217.73        14,050,470.85        1,656,318.65        683,560.98  

August 25, 2029

     32,192,899.08        13,366,909.87        1,656,318.65        683,560.98  

February 25, 2030

     30,536,580.43        12,683,348.89        1,656,318.65        683,560.98  

August 25, 2030

     28,880,261.78        11,999,787.91        1,656,318.65        683,560.98  

February 25, 2031

     27,223,943.13        11,316,226.93        1,656,318.65        683,560.98  

August 25, 2031

     0.00        0.00        27,223,943.13        11,316,226.93  
     N12004  
     Equipment Note Ending Balance      Scheduled Payments of Principal  

Date

   Series AA
Equipment Note
     Series A
Equipment Note
     Series AA
Equipment Note
     Series A
Equipment Note
 

At Issuance

   $ 65,133,000.00      $ 26,944,000.00      $ 0.00      $ 0.00  

August 25, 2019

     65,133,000.00        26,944,000.00        0.00        0.00  

February 25, 2020

     63,769,671.90        26,398,657.69        1,363,328.10        545,342.31  

August 25, 2020

     62,110,576.76        25,713,953.16        1,659,095.14        684,704.53  

February 25, 2021

     60,451,481.62        25,029,248.63        1,659,095.14        684,704.53  

August 25, 2021

     58,792,386.48        24,344,544.10        1,659,095.14        684,704.53  

February 25, 2022

     57,133,291.34        23,659,839.57        1,659,095.14        684,704.53  

August 25, 2022

     55,474,196.20        22,975,135.04        1,659,095.14        684,704.53  

February 25, 2023

     53,815,101.06        22,290,430.51        1,659,095.14        684,704.53  

August 25, 2023

     52,156,005.92        21,605,725.98        1,659,095.14        684,704.53  

February 25, 2024

     50,496,910.78        20,921,021.45        1,659,095.14        684,704.53  

August 25, 2024

     48,837,815.64        20,236,316.92        1,659,095.14        684,704.53  

February 25, 2025

     47,178,720.50        19,551,612.39        1,659,095.14        684,704.53  

August 25, 2025

     45,519,625.36        18,866,907.86        1,659,095.14        684,704.53  

February 25, 2026

     43,860,530.22        18,182,203.33        1,659,095.14        684,704.53  

August 25, 2026

     42,201,435.08        17,497,498.80        1,659,095.14        684,704.53  

February 25, 2027

     40,542,339.94        16,812,794.27        1,659,095.14        684,704.53  

August 25, 2027

     38,883,244.80        16,128,089.74        1,659,095.14        684,704.53  

February 25, 2028

     37,224,149.66        15,443,385.21        1,659,095.14        684,704.53  

August 25, 2028

     35,565,054.52        14,758,680.68        1,659,095.14        684,704.53  

February 25, 2029

     33,905,959.38        14,073,976.15        1,659,095.14        684,704.53  

August 25, 2029

     32,246,864.24        13,389,271.62        1,659,095.14        684,704.53  

February 25, 2030

     30,587,769.10        12,704,567.09        1,659,095.14        684,704.53  

August 25, 2030

     28,928,673.96        12,019,862.56        1,659,095.14        684,704.53  

February 25, 2031

     27,269,578.82        11,335,158.03        1,659,095.14        684,704.53  

August 25, 2031

     0.00        0.00        27,269,578.82        11,335,158.03  


 

8

     N12005  
     Equipment Note Ending Balance      Scheduled Payments of Principal  

Date

   Series AA
Equipment Note
     Series A
Equipment Note
     Series AA
Equipment Note
     Series A
Equipment Note
 

At Issuance

   $ 65,238,000.00      $ 26,987,000.00      $ 0.00      $ 0.00  

August 25, 2019

     65,238,000.00        26,987,000.00        0.00        0.00  

February 25, 2020

     63,872,474.10        26,440,787.38        1,365,525.90        546,212.62  

August 25, 2020

     62,210,704.35        25,754,990.13        1,661,769.75        685,797.25  

February 25, 2021

     60,548,934.60        25,069,192.88        1,661,769.75        685,797.25  

August 25, 2021

     58,887,164.85        24,383,395.63        1,661,769.75        685,797.25  

February 25, 2022

     57,225,395.10        23,697,598.38        1,661,769.75        685,797.25  

August 25, 2022

     55,563,625.35        23,011,801.13        1,661,769.75        685,797.25  

February 25, 2023

     53,901,855.60        22,326,003.88        1,661,769.75        685,797.25  

August 25, 2023

     52,240,085.85        21,640,206.63        1,661,769.75        685,797.25  

February 25, 2024

     50,578,316.10        20,954,409.38        1,661,769.75        685,797.25  

August 25, 2024

     48,916,546.35        20,268,612.13        1,661,769.75        685,797.25  

February 25, 2025

     47,254,776.60        19,582,814.88        1,661,769.75        685,797.25  

August 25, 2025

     45,593,006.85        18,897,017.63        1,661,769.75        685,797.25  

February 25, 2026

     43,931,237.10        18,211,220.38        1,661,769.75        685,797.25  

August 25, 2026

     42,269,467.35        17,525,423.13        1,661,769.75        685,797.25  

February 25, 2027

     40,607,697.60        16,839,625.88        1,661,769.75        685,797.25  

August 25, 2027

     38,945,927.85        16,153,828.63        1,661,769.75        685,797.25  

February 25, 2028

     37,284,158.10        15,468,031.38        1,661,769.75        685,797.25  

August 25, 2028

     35,622,388.35        14,782,234.13        1,661,769.75        685,797.25  

February 25, 2029

     33,960,618.60        14,096,436.88        1,661,769.75        685,797.25  

August 25, 2029

     32,298,848.85        13,410,639.63        1,661,769.75        685,797.25  

February 25, 2030

     30,637,079.10        12,724,842.38        1,661,769.75        685,797.25  

August 25, 2030

     28,975,309.35        12,039,045.13        1,661,769.75        685,797.25  

February 25, 2031

     27,313,539.60        11,353,247.88        1,661,769.75        685,797.25  

August 25, 2031

     0.00        0.00        27,313,539.60        11,353,247.88  
     N12006  
     Equipment Note Ending Balance      Scheduled Payments of Principal  

Date

   Series AA
Equipment Note
     Series A
Equipment Note
     Series AA
Equipment Note
     Series A
Equipment Note
 

At Issuance

   $ 65,346,000.00      $ 27,032,000.00      $ 0.00      $ 0.00  

August 25, 2019

     65,346,000.00        27,032,000.00        0.00        0.00  

February 25, 2020

     63,978,213.50        26,484,876.59        1,367,786.50        547,123.41  

August 25, 2020

     62,313,692.73        25,797,935.79        1,664,520.77        686,940.80  

February 25, 2021

     60,649,171.96        25,110,994.99        1,664,520.77        686,940.80  

August 25, 2021

     58,984,651.19        24,424,054.19        1,664,520.77        686,940.80  

February 25, 2022

     57,320,130.42        23,737,113.39        1,664,520.77        686,940.80  

August 25, 2022

     55,655,609.65        23,050,172.59        1,664,520.77        686,940.80  

February 25, 2023

     53,991,088.88        22,363,231.79        1,664,520.77        686,940.80  

August 25, 2023

     52,326,568.11        21,676,290.99        1,664,520.77        686,940.80  

February 25, 2024

     50,662,047.34        20,989,350.19        1,664,520.77        686,940.80  

August 25, 2024

     48,997,526.57        20,302,409.39        1,664,520.77        686,940.80  

February 25, 2025

     47,333,005.80        19,615,468.59        1,664,520.77        686,940.80  

August 25, 2025

     45,668,485.03        18,928,527.79        1,664,520.77        686,940.80  

February 25, 2026

     44,003,964.26        18,241,586.99        1,664,520.77        686,940.80  

August 25, 2026

     42,339,443.49        17,554,646.19        1,664,520.77        686,940.80  

February 25, 2027

     40,674,922.72        16,867,705.39        1,664,520.77        686,940.80  

August 25, 2027

     39,010,401.95        16,180,764.59        1,664,520.77        686,940.80  

February 25, 2028

     37,345,881.18        15,493,823.79        1,664,520.77        686,940.80  

August 25, 2028

     35,681,360.41        14,806,882.99        1,664,520.77        686,940.80  

February 25, 2029

     34,016,839.64        14,119,942.19        1,664,520.77        686,940.80  

August 25, 2029

     32,352,318.87        13,433,001.39        1,664,520.77        686,940.80  

February 25, 2030

     30,687,798.10        12,746,060.59        1,664,520.77        686,940.80  

August 25, 2030

     29,023,277.33        12,059,119.79        1,664,520.77        686,940.80  

February 25, 2031

     27,358,756.56        11,372,178.99        1,664,520.77        686,940.80  

August 25, 2031

     0.00        0.00        27,358,756.56        11,372,178.99  


 

9

     N16008  
     Equipment Note Ending Balance      Scheduled Payments of Principal  

Date

   Series AA
Equipment Note
     Series A
Equipment Note
     Series AA
Equipment Note
     Series A
Equipment Note
 

At Issuance

   $ 65,346,000.00      $ 27,032,000.00      $ 0.00      $ 0.00  

August 25, 2019

     65,346,000.00        27,032,000.00        0.00        0.00  

February 25, 2020

     63,978,213.50        26,484,876.59        1,367,786.50        547,123.41  

August 25, 2020

     62,313,692.73        25,797,935.79        1,664,520.77        686,940.80  

February 25, 2021

     60,649,171.96        25,110,994.99        1,664,520.77        686,940.80  

August 25, 2021

     58,984,651.19        24,424,054.19        1,664,520.77        686,940.80  

February 25, 2022

     57,320,130.42        23,737,113.39        1,664,520.77        686,940.80  

August 25, 2022

     55,655,609.65        23,050,172.59        1,664,520.77        686,940.80  

February 25, 2023

     53,991,088.88        22,363,231.79        1,664,520.77        686,940.80  

August 25, 2023

     52,326,568.11        21,676,290.99        1,664,520.77        686,940.80  

February 25, 2024

     50,662,047.34        20,989,350.19        1,664,520.77        686,940.80  

August 25, 2024

     48,997,526.57        20,302,409.39        1,664,520.77        686,940.80  

February 25, 2025

     47,333,005.80        19,615,468.59        1,664,520.77        686,940.80  

August 25, 2025

     45,668,485.03        18,928,527.79        1,664,520.77        686,940.80  

February 25, 2026

     44,003,964.26        18,241,586.99        1,664,520.77        686,940.80  

August 25, 2026

     42,339,443.49        17,554,646.19        1,664,520.77        686,940.80  

February 25, 2027

     40,674,922.72        16,867,705.39        1,664,520.77        686,940.80  

August 25, 2027

     39,010,401.95        16,180,764.59        1,664,520.77        686,940.80  

February 25, 2028

     37,345,881.18        15,493,823.79        1,664,520.77        686,940.80  

August 25, 2028

     35,681,360.41        14,806,882.99        1,664,520.77        686,940.80  

February 25, 2029

     34,016,839.64        14,119,942.19        1,664,520.77        686,940.80  

August 25, 2029

     32,352,318.87        13,433,001.39        1,664,520.77        686,940.80  

February 25, 2030

     30,687,798.10        12,746,060.59        1,664,520.77        686,940.80  

August 25, 2030

     29,023,277.33        12,059,119.79        1,664,520.77        686,940.80  

February 25, 2031

     27,358,756.56        11,372,178.99        1,664,520.77        686,940.80  

August 25, 2031

     0.00        0.00        27,358,756.56        11,372,178.99  

Embraer ERJ 175 LL

 

     N601UX  
     Equipment Note Ending Balance      Scheduled Payments of Principal  

Date

   Series AA
Equipment Note
     Series A
Equipment Note
     Series AA
Equipment Note
     Series A
Equipment Note
 

At Issuance

   $ 12,799,000.00      $ 5,295,000.00      $ 0.00      $ 0.00  

August 25, 2019

     12,799,000.00        5,295,000.00        0.00        0.00  

February 25, 2020

     12,531,098.38        5,187,830.04        267,901.62        107,169.96  

August 25, 2020

     12,205,076.87        5,053,272.79        326,021.51        134,557.25  

February 25, 2021

     11,879,055.36        4,918,715.54        326,021.51        134,557.25  

August 25, 2021

     11,553,033.85        4,784,158.29        326,021.51        134,557.25  

February 25, 2022

     11,227,012.34        4,649,601.04        326,021.51        134,557.25  

August 25, 2022

     10,900,990.83        4,515,043.79        326,021.51        134,557.25  

February 25, 2023

     10,574,969.32        4,380,486.54        326,021.51        134,557.25  

August 25, 2023

     10,248,947.81        4,245,929.29        326,021.51        134,557.25  

February 25, 2024

     9,922,926.30        4,111,372.04        326,021.51        134,557.25  

August 25, 2024

     9,596,904.79        3,976,814.79        326,021.51        134,557.25  

February 25, 2025

     9,270,883.28        3,842,257.54        326,021.51        134,557.25  

August 25, 2025

     8,944,861.77        3,707,700.29        326,021.51        134,557.25  

February 25, 2026

     8,618,840.26        3,573,143.04        326,021.51        134,557.25  

August 25, 2026

     8,292,818.75        3,438,585.79        326,021.51        134,557.25  

February 25, 2027

     7,966,797.24        3,304,028.54        326,021.51        134,557.25  

August 25, 2027

     7,640,775.73        3,169,471.29        326,021.51        134,557.25  

February 25, 2028

     7,314,754.22        3,034,914.04        326,021.51        134,557.25  

August 25, 2028

     6,988,732.71        2,900,356.79        326,021.51        134,557.25  

February 25, 2029

     6,662,711.20        2,765,799.54        326,021.51        134,557.25  

August 25, 2029

     6,336,689.69        2,631,242.29        326,021.51        134,557.25  

February 25, 2030

     6,010,668.18        2,496,685.04        326,021.51        134,557.25  

August 25, 2030

     5,684,646.67        2,362,127.79        326,021.51        134,557.25  

February 25, 2031

     5,358,625.16        2,227,570.54        326,021.51        134,557.25  

August 25, 2031

     0.00        0.00        5,358,625.16        2,227,570.54  


 

10

     N602UX  
     Equipment Note Ending Balance      Scheduled Payments of Principal  

Date

   Series AA
Equipment Note
     Series A
Equipment Note
     Series AA
Equipment Note
     Series A
Equipment Note
 

At Issuance

   $ 12,808,000.00      $ 5,298,000.00      $ 0.00      $ 0.00  

August 25, 2019

     12,808,000.00        5,298,000.00        0.00        0.00  

February 25, 2020

     12,539,909.99        5,190,769.32        268,090.01        107,230.68  

August 25, 2020

     12,213,659.23        5,056,135.84        326,250.76        134,633.48  

February 25, 2021

     11,887,408.47        4,921,502.36        326,250.76        134,633.48  

August 25, 2021

     11,561,157.71        4,786,868.88        326,250.76        134,633.48  

February 25, 2022

     11,234,906.95        4,652,235.40        326,250.76        134,633.48  

August 25, 2022

     10,908,656.19        4,517,601.92        326,250.76        134,633.48  

February 25, 2023

     10,582,405.43        4,382,968.44        326,250.76        134,633.48  

August 25, 2023

     10,256,154.67        4,248,334.96        326,250.76        134,633.48  

February 25, 2024

     9,929,903.91        4,113,701.48        326,250.76        134,633.48  

August 25, 2024

     9,603,653.15        3,979,068.00        326,250.76        134,633.48  

February 25, 2025

     9,277,402.39        3,844,434.52        326,250.76        134,633.48  

August 25, 2025

     8,951,151.63        3,709,801.04        326,250.76        134,633.48  

February 25, 2026

     8,624,900.87        3,575,167.56        326,250.76        134,633.48  

August 25, 2026

     8,298,650.11        3,440,534.08        326,250.76        134,633.48  

February 25, 2027

     7,972,399.35        3,305,900.60        326,250.76        134,633.48  

August 25, 2027

     7,646,148.59        3,171,267.12        326,250.76        134,633.48  

February 25, 2028

     7,319,897.83        3,036,633.64        326,250.76        134,633.48  

August 25, 2028

     6,993,647.07        2,902,000.16        326,250.76        134,633.48  

February 25, 2029

     6,667,396.31        2,767,366.68        326,250.76        134,633.48  

August 25, 2029

     6,341,145.55        2,632,733.20        326,250.76        134,633.48  

February 25, 2030

     6,014,894.79        2,498,099.72        326,250.76        134,633.48  

August 25, 2030

     5,688,644.03        2,363,466.24        326,250.76        134,633.48  

February 25, 2031

     5,362,393.27        2,228,832.76        326,250.76        134,633.48  

August 25, 2031

     0.00        0.00        5,362,393.27        2,228,832.76  
     N603UX  
     Equipment Note Ending Balance      Scheduled Payments of Principal  

Date

   Series AA
Equipment Note
     Series A
Equipment Note
     Series AA
Equipment Note
     Series A
Equipment Note
 

At Issuance

   $ 12,808,000.00      $ 5,298,000.00      $ 0.00      $ 0.00  

August 25, 2019

     12,808,000.00        5,298,000.00        0.00        0.00  

February 25, 2020

     12,539,909.99        5,190,769.32        268,090.01        107,230.68  

August 25, 2020

     12,213,659.23        5,056,135.84        326,250.76        134,633.48  

February 25, 2021

     11,887,408.47        4,921,502.36        326,250.76        134,633.48  

August 25, 2021

     11,561,157.71        4,786,868.88        326,250.76        134,633.48  

February 25, 2022

     11,234,906.95        4,652,235.40        326,250.76        134,633.48  

August 25, 2022

     10,908,656.19        4,517,601.92        326,250.76        134,633.48  

February 25, 2023

     10,582,405.43        4,382,968.44        326,250.76        134,633.48  

August 25, 2023

     10,256,154.67        4,248,334.96        326,250.76        134,633.48  

February 25, 2024

     9,929,903.91        4,113,701.48        326,250.76        134,633.48  

August 25, 2024

     9,603,653.15        3,979,068.00        326,250.76        134,633.48  

February 25, 2025

     9,277,402.39        3,844,434.52        326,250.76        134,633.48  

August 25, 2025

     8,951,151.63        3,709,801.04        326,250.76        134,633.48  

February 25, 2026

     8,624,900.87        3,575,167.56        326,250.76        134,633.48  

August 25, 2026

     8,298,650.11        3,440,534.08        326,250.76        134,633.48  

February 25, 2027

     7,972,399.35        3,305,900.60        326,250.76        134,633.48  

August 25, 2027

     7,646,148.59        3,171,267.12        326,250.76        134,633.48  

February 25, 2028

     7,319,897.83        3,036,633.64        326,250.76        134,633.48  

August 25, 2028

     6,993,647.07        2,902,000.16        326,250.76        134,633.48  

February 25, 2029

     6,667,396.31        2,767,366.68        326,250.76        134,633.48  

August 25, 2029

     6,341,145.55        2,632,733.20        326,250.76        134,633.48  

February 25, 2030

     6,014,894.79        2,498,099.72        326,250.76        134,633.48  

August 25, 2030

     5,688,644.03        2,363,466.24        326,250.76        134,633.48  

February 25, 2031

     5,362,393.27        2,228,832.76        326,250.76        134,633.48  

August 25, 2031

     0.00        0.00        5,362,393.27        2,228,832.76  


 

11

     N604UX  
     Equipment Note Ending Balance      Scheduled Payments of Principal  

Date

   Series AA
Equipment Note
     Series A
Equipment Note
     Series AA
Equipment Note
     Series A
Equipment Note
 

At Issuance

   $ 12,808,000.00      $ 5,298,000.00      $ 0.00      $ 0.00  

August 25, 2019

     12,808,000.00        5,298,000.00        0.00        0.00  

February 25, 2020

     12,539,909.99        5,190,769.32        268,090.01        107,230.68  

August 25, 2020

     12,213,659.23        5,056,135.84        326,250.76        134,633.48  

February 25, 2021

     11,887,408.47        4,921,502.36        326,250.76        134,633.48  

August 25, 2021

     11,561,157.71        4,786,868.88        326,250.76        134,633.48  

February 25, 2022

     11,234,906.95        4,652,235.40        326,250.76        134,633.48  

August 25, 2022

     10,908,656.19        4,517,601.92        326,250.76        134,633.48  

February 25, 2023

     10,582,405.43        4,382,968.44        326,250.76        134,633.48  

August 25, 2023

     10,256,154.67        4,248,334.96        326,250.76        134,633.48  

February 25, 2024

     9,929,903.91        4,113,701.48        326,250.76        134,633.48  

August 25, 2024

     9,603,653.15        3,979,068.00        326,250.76        134,633.48  

February 25, 2025

     9,277,402.39        3,844,434.52        326,250.76        134,633.48  

August 25, 2025

     8,951,151.63        3,709,801.04        326,250.76        134,633.48  

February 25, 2026

     8,624,900.87        3,575,167.56        326,250.76        134,633.48  

August 25, 2026

     8,298,650.11        3,440,534.08        326,250.76        134,633.48  

February 25, 2027

     7,972,399.35        3,305,900.60        326,250.76        134,633.48  

August 25, 2027

     7,646,148.59        3,171,267.12        326,250.76        134,633.48  

February 25, 2028

     7,319,897.83        3,036,633.64        326,250.76        134,633.48  

August 25, 2028

     6,993,647.07        2,902,000.16        326,250.76        134,633.48  

February 25, 2029

     6,667,396.31        2,767,366.68        326,250.76        134,633.48  

August 25, 2029

     6,341,145.55        2,632,733.20        326,250.76        134,633.48  

February 25, 2030

     6,014,894.79        2,498,099.72        326,250.76        134,633.48  

August 25, 2030

     5,688,644.03        2,363,466.24        326,250.76        134,633.48  

February 25, 2031

     5,362,393.27        2,228,832.76        326,250.76        134,633.48  

August 25, 2031

     0.00        0.00        5,362,393.27        2,228,832.76  
     N605UX  
     Equipment Note Ending Balance      Scheduled Payments of Principal  

Date

   Series AA
Equipment Note
     Series A
Equipment Note
     Series AA
Equipment Note
     Series A
Equipment Note
 

At Issuance

   $ 12,820,000.00      $ 5,303,000.00      $ 0.00      $ 0.00  

August 25, 2019

     12,820,000.00        5,303,000.00        0.00        0.00  

February 25, 2020

     12,551,658.82        5,195,668.12        268,341.18        107,331.88  

August 25, 2020

     12,225,102.39        5,060,907.58        326,556.43        134,760.54  

February 25, 2021

     11,898,545.96        4,926,147.04        326,556.43        134,760.54  

August 25, 2021

     11,571,989.53        4,791,386.50        326,556.43        134,760.54  

February 25, 2022

     11,245,433.10        4,656,625.96        326,556.43        134,760.54  

August 25, 2022

     10,918,876.67        4,521,865.42        326,556.43        134,760.54  

February 25, 2023

     10,592,320.24        4,387,104.88        326,556.43        134,760.54  

August 25, 2023

     10,265,763.81        4,252,344.34        326,556.43        134,760.54  

February 25, 2024

     9,939,207.38        4,117,583.80        326,556.43        134,760.54  

August 25, 2024

     9,612,650.95        3,982,823.26        326,556.43        134,760.54  

February 25, 2025

     9,286,094.52        3,848,062.72        326,556.43        134,760.54  

August 25, 2025

     8,959,538.09        3,713,302.18        326,556.43        134,760.54  

February 25, 2026

     8,632,981.66        3,578,541.64        326,556.43        134,760.54  

August 25, 2026

     8,306,425.23        3,443,781.10        326,556.43        134,760.54  

February 25, 2027

     7,979,868.80        3,309,020.56        326,556.43        134,760.54  

August 25, 2027

     7,653,312.37        3,174,260.02        326,556.43        134,760.54  

February 25, 2028

     7,326,755.94        3,039,499.48        326,556.43        134,760.54  

August 25, 2028

     7,000,199.51        2,904,738.94        326,556.43        134,760.54  

February 25, 2029

     6,673,643.08        2,769,978.40        326,556.43        134,760.54  

August 25, 2029

     6,347,086.65        2,635,217.86        326,556.43        134,760.54  

February 25, 2030

     6,020,530.22        2,500,457.32        326,556.43        134,760.54  

August 25, 2030

     5,693,973.79        2,365,696.78        326,556.43        134,760.54  

February 25, 2031

     5,367,417.36        2,230,936.24        326,556.43        134,760.54  

August 25, 2031

     0.00        0.00        5,367,417.36        2,230,936.24  


 

12

     N606UX  
     Equipment Note Ending Balance      Scheduled Payments of Principal  

Date

   Series AA
Equipment Note
     Series A
Equipment Note
     Series AA
Equipment Note
     Series A
Equipment Note
 

At Issuance

   $ 12,820,000.00      $ 5,303,000.00      $ 0.00      $ 0.00  

August 25, 2019

     12,820,000.00        5,303,000.00        0.00        0.00  

February 25, 2020

     12,551,658.82        5,195,668.12        268,341.18        107,331.88  

August 25, 2020

     12,225,102.39        5,060,907.58        326,556.43        134,760.54  

February 25, 2021

     11,898,545.96        4,926,147.04        326,556.43        134,760.54  

August 25, 2021

     11,571,989.53        4,791,386.50        326,556.43        134,760.54  

February 25, 2022

     11,245,433.10        4,656,625.96        326,556.43        134,760.54  

August 25, 2022

     10,918,876.67        4,521,865.42        326,556.43        134,760.54  

February 25, 2023

     10,592,320.24        4,387,104.88        326,556.43        134,760.54  

August 25, 2023

     10,265,763.81        4,252,344.34        326,556.43        134,760.54  

February 25, 2024

     9,939,207.38        4,117,583.80        326,556.43        134,760.54  

August 25, 2024

     9,612,650.95        3,982,823.26        326,556.43        134,760.54  

February 25, 2025

     9,286,094.52        3,848,062.72        326,556.43        134,760.54  

August 25, 2025

     8,959,538.09        3,713,302.18        326,556.43        134,760.54  

February 25, 2026

     8,632,981.66        3,578,541.64        326,556.43        134,760.54  

August 25, 2026

     8,306,425.23        3,443,781.10        326,556.43        134,760.54  

February 25, 2027

     7,979,868.80        3,309,020.56        326,556.43        134,760.54  

August 25, 2027

     7,653,312.37        3,174,260.02        326,556.43        134,760.54  

February 25, 2028

     7,326,755.94        3,039,499.48        326,556.43        134,760.54  

August 25, 2028

     7,000,199.51        2,904,738.94        326,556.43        134,760.54  

February 25, 2029

     6,673,643.08        2,769,978.40        326,556.43        134,760.54  

August 25, 2029

     6,347,086.65        2,635,217.86        326,556.43        134,760.54  

February 25, 2030

     6,020,530.22        2,500,457.32        326,556.43        134,760.54  

August 25, 2030

     5,693,973.79        2,365,696.78        326,556.43        134,760.54  

February 25, 2031

     5,367,417.36        2,230,936.24        326,556.43        134,760.54  

August 25, 2031

     0.00        0.00        5,367,417.36        2,230,936.24  
     N607UX  
     Equipment Note Ending Balance      Scheduled Payments of Principal  

Date

   Series AA
Equipment Note
     Series A
Equipment Note
     Series AA
Equipment Note
     Series A
Equipment Note
 

At Issuance

   $ 12,820,000.00      $ 5,303,000.00      $ 0.00      $ 0.00  

August 25, 2019

     12,820,000.00        5,303,000.00        0.00        0.00  

February 25, 2020

     12,551,658.82        5,195,668.12        268,341.18        107,331.88  

August 25, 2020

     12,225,102.39        5,060,907.58        326,556.43        134,760.54  

February 25, 2021

     11,898,545.96        4,926,147.04        326,556.43        134,760.54  

August 25, 2021

     11,571,989.53        4,791,386.50        326,556.43        134,760.54  

February 25, 2022

     11,245,433.10        4,656,625.96        326,556.43        134,760.54  

August 25, 2022

     10,918,876.67        4,521,865.42        326,556.43        134,760.54  

February 25, 2023

     10,592,320.24        4,387,104.88        326,556.43        134,760.54  

August 25, 2023

     10,265,763.81        4,252,344.34        326,556.43        134,760.54  

February 25, 2024

     9,939,207.38        4,117,583.80        326,556.43        134,760.54  

August 25, 2024

     9,612,650.95        3,982,823.26        326,556.43        134,760.54  

February 25, 2025

     9,286,094.52        3,848,062.72        326,556.43        134,760.54  

August 25, 2025

     8,959,538.09        3,713,302.18        326,556.43        134,760.54  

February 25, 2026

     8,632,981.66        3,578,541.64        326,556.43        134,760.54  

August 25, 2026

     8,306,425.23        3,443,781.10        326,556.43        134,760.54  

February 25, 2027

     7,979,868.80        3,309,020.56        326,556.43        134,760.54  

August 25, 2027

     7,653,312.37        3,174,260.02        326,556.43        134,760.54  

February 25, 2028

     7,326,755.94        3,039,499.48        326,556.43        134,760.54  

August 25, 2028

     7,000,199.51        2,904,738.94        326,556.43        134,760.54  

February 25, 2029

     6,673,643.08        2,769,978.40        326,556.43        134,760.54  

August 25, 2029

     6,347,086.65        2,635,217.86        326,556.43        134,760.54  

February 25, 2030

     6,020,530.22        2,500,457.32        326,556.43        134,760.54  

August 25, 2030

     5,693,973.79        2,365,696.78        326,556.43        134,760.54  

February 25, 2031

     5,367,417.36        2,230,936.24        326,556.43        134,760.54  

August 25, 2031

     0.00        0.00        5,367,417.36        2,230,936.24  


 

13

     N608UX  
     Equipment Note Ending Balance      Scheduled Payments of Principal  

Date

   Series AA
Equipment Note
     Series A
Equipment Note
     Series AA
Equipment Note
     Series A
Equipment Note
 

At Issuance

   $ 12,833,000.00      $ 5,308,000.00      $ 0.00      $ 0.00  

August 25, 2019

     12,833,000.00        5,308,000.00        0.00        0.00  

February 25, 2020

     12,564,386.71        5,200,566.92        268,613.29        107,433.08  

August 25, 2020

     12,237,499.14        5,065,679.31        326,887.57        134,887.61  

February 25, 2021

     11,910,611.57        4,930,791.70        326,887.57        134,887.61  

August 25, 2021

     11,583,724.00        4,795,904.09        326,887.57        134,887.61  

February 25, 2022

     11,256,836.43        4,661,016.48        326,887.57        134,887.61  

August 25, 2022

     10,929,948.86        4,526,128.87        326,887.57        134,887.61  

February 25, 2023

     10,603,061.29        4,391,241.26        326,887.57        134,887.61  

August 25, 2023

     10,276,173.72        4,256,353.65        326,887.57        134,887.61  

February 25, 2024

     9,949,286.15        4,121,466.04        326,887.57        134,887.61  

August 25, 2024

     9,622,398.58        3,986,578.43        326,887.57        134,887.61  

February 25, 2025

     9,295,511.01        3,851,690.82        326,887.57        134,887.61  

August 25, 2025

     8,968,623.44        3,716,803.21        326,887.57        134,887.61  

February 25, 2026

     8,641,735.87        3,581,915.60        326,887.57        134,887.61  

August 25, 2026

     8,314,848.30        3,447,027.99        326,887.57        134,887.61  

February 25, 2027

     7,987,960.73        3,312,140.38        326,887.57        134,887.61  

August 25, 2027

     7,661,073.16        3,177,252.77        326,887.57        134,887.61  

February 25, 2028

     7,334,185.59        3,042,365.16        326,887.57        134,887.61  

August 25, 2028

     7,007,298.02        2,907,477.55        326,887.57        134,887.61  

February 25, 2029

     6,680,410.45        2,772,589.94        326,887.57        134,887.61  

August 25, 2029

     6,353,522.88        2,637,702.33        326,887.57        134,887.61  

February 25, 2030

     6,026,635.31        2,502,814.72        326,887.57        134,887.61  

August 25, 2030

     5,699,747.74        2,367,927.11        326,887.57        134,887.61  

February 25, 2031

     5,372,860.17        2,233,039.50        326,887.57        134,887.61  

August 25, 2031

     0.00        0.00        5,372,860.17        2,233,039.50  
     N609UX  
     Equipment Note Ending Balance      Scheduled Payments of Principal  

Date

   Series AA
Equipment Note
     Series A
Equipment Note
     Series AA
Equipment Note
     Series A
Equipment Note
 

At Issuance

   $ 12,833,000.00      $ 5,308,000.00      $ 0.00      $ 0.00  

August 25, 2019

     12,833,000.00        5,308,000.00        0.00        0.00  

February 25, 2020

     12,564,386.71        5,200,566.92        268,613.29        107,433.08  

August 25, 2020

     12,237,499.14        5,065,679.31        326,887.57        134,887.61  

February 25, 2021

     11,910,611.57        4,930,791.70        326,887.57        134,887.61  

August 25, 2021

     11,583,724.00        4,795,904.09        326,887.57        134,887.61  

February 25, 2022

     11,256,836.43        4,661,016.48        326,887.57        134,887.61  

August 25, 2022

     10,929,948.86        4,526,128.87        326,887.57        134,887.61  

February 25, 2023

     10,603,061.29        4,391,241.26        326,887.57        134,887.61  

August 25, 2023

     10,276,173.72        4,256,353.65        326,887.57        134,887.61  

February 25, 2024

     9,949,286.15        4,121,466.04        326,887.57        134,887.61  

August 25, 2024

     9,622,398.58        3,986,578.43        326,887.57        134,887.61  

February 25, 2025

     9,295,511.01        3,851,690.82        326,887.57        134,887.61  

August 25, 2025

     8,968,623.44        3,716,803.21        326,887.57        134,887.61  

February 25, 2026

     8,641,735.87        3,581,915.60        326,887.57        134,887.61  

August 25, 2026

     8,314,848.30        3,447,027.99        326,887.57        134,887.61  

February 25, 2027

     7,987,960.73        3,312,140.38        326,887.57        134,887.61  

August 25, 2027

     7,661,073.16        3,177,252.77        326,887.57        134,887.61  

February 25, 2028

     7,334,185.59        3,042,365.16        326,887.57        134,887.61  

August 25, 2028

     7,007,298.02        2,907,477.55        326,887.57        134,887.61  

February 25, 2029

     6,680,410.45        2,772,589.94        326,887.57        134,887.61  

August 25, 2029

     6,353,522.88        2,637,702.33        326,887.57        134,887.61  

February 25, 2030

     6,026,635.31        2,502,814.72        326,887.57        134,887.61  

August 25, 2030

     5,699,747.74        2,367,927.11        326,887.57        134,887.61  

February 25, 2031

     5,372,860.17        2,233,039.50        326,887.57        134,887.61  

August 25, 2031

     0.00        0.00        5,372,860.17        2,233,039.50  


 

14

     N610UX  
     Equipment Note Ending Balance      Scheduled Payments of Principal  

Date

   Series AA
Equipment Note
     Series A
Equipment Note
     Series AA
Equipment Note
     Series A
Equipment Note
 

At Issuance

   $ 12,833,000.00      $ 5,308,000.00      $ 0.00      $ 0.00  

August 25, 2019

     12,833,000.00        5,308,000.00        0.00        0.00  

February 25, 2020

     12,564,386.71        5,200,566.87        268,613.29        107,433.13  

August 25, 2020

     12,237,499.17        5,065,679.27        326,887.54        134,887.60  

February 25, 2021

     11,910,611.63        4,930,791.67        326,887.54        134,887.60  

August 25, 2021

     11,583,724.09        4,795,904.07        326,887.54        134,887.60  

February 25, 2022

     11,256,836.55        4,661,016.47        326,887.54        134,887.60  

August 25, 2022

     10,929,949.01        4,526,128.87        326,887.54        134,887.60  

February 25, 2023

     10,603,061.47        4,391,241.27        326,887.54        134,887.60  

August 25, 2023

     10,276,173.93        4,256,353.67        326,887.54        134,887.60  

February 25, 2024

     9,949,286.39        4,121,466.07        326,887.54        134,887.60  

August 25, 2024

     9,622,398.85        3,986,578.47        326,887.54        134,887.60  

February 25, 2025

     9,295,511.31        3,851,690.87        326,887.54        134,887.60  

August 25, 2025

     8,968,623.77        3,716,803.27        326,887.54        134,887.60  

February 25, 2026

     8,641,736.23        3,581,915.67        326,887.54        134,887.60  

August 25, 2026

     8,314,848.69        3,447,028.07        326,887.54        134,887.60  

February 25, 2027

     7,987,961.15        3,312,140.47        326,887.54        134,887.60  

August 25, 2027

     7,661,073.61        3,177,252.87        326,887.54        134,887.60  

February 25, 2028

     7,334,186.07        3,042,365.27        326,887.54        134,887.60  

August 25, 2028

     7,007,298.53        2,907,477.67        326,887.54        134,887.60  

February 25, 2029

     6,680,410.99        2,772,590.07        326,887.54        134,887.60  

August 25, 2029

     6,353,523.45        2,637,702.47        326,887.54        134,887.60  

February 25, 2030

     6,026,635.91        2,502,814.87        326,887.54        134,887.60  

August 25, 2030

     5,699,748.37        2,367,927.27        326,887.54        134,887.60  

February 25, 2031

     5,372,860.83        2,233,039.67        326,887.54        134,887.60  

August 25, 2031

     0.00        0.00        5,372,860.83        2,233,039.67  

Indenture

Debt Rate (as such term is defined in Annex A of the form of Indenture marked as Exhibit C of the Note Purchase Agreement (the “Indenture Form”)) for Series AA (computed on the basis of a 360-day year consisting of twelve 30-day months, payable semi-annually in arrears): 4.15%

Debt Rate (as such term is defined in Annex A of the Indenture Form) for Series A (computed on the basis of a 360-day year consisting of twelve 30 day months, payable semi-annually in arrears): 4.55%

 

Payment Due Rate:    Debt Rate plus 2% per annum
Payment Dates:    February 25 and August 25 (after February 25, 2019)
Make-Whole Premiums:    As provided in Article II of the Indenture Form
Redemption:    As provided in Article II of the Indenture Form
All-risk hull insurance:    Not less than the unpaid principal amount of the Equipment Notes relating to an Aircraft, together with six months of interest accrued thereon, subject to United’s right to self-insure on terms no more favorable to United in any material


 

15

   respect than those set forth in Section G of Annex B to the Indenture Form.

Participation Agreement

Mortgagee, Subordination Agent, Liquidity Providers, Pass Through Trustees, Escrow Agents and Note Holders indemnified against Expenses and Taxes to the extent set forth in Section 8 of the form of the Participation Agreement marked as Exhibit B to the Note Purchase Agreement.

Prohibited Modifications

 

1.

May not modify in any material adverse respect the Granting Clause of the Indenture so as to deprive the Note Holders or the Related Note Holders (as defined in the Indenture) of a first priority security interest in and mortgage lien on the Aircraft or, to the extent assigned thereunder, United’s rights under the Purchase Agreement (as defined in the Indenture) or to eliminate any of the obligations intended to be secured thereby or otherwise modify in any material adverse respect as regards the interests of the Note Holders, the Related Note Holder of a Related Series AA Equipment Note, the Related Note Holder of a Related Series A Equipment Note, the Subordination Agent, the Liquidity Providers or the Mortgagee the provisions of Article II or III or Section 4.05(c), 5.01, 5.02, 6.02, 10.01(a), 10.01(b)(vii), 11.01, 11.04, 11.11, 11.12 or 11.13 of the Indenture or the definition of “Make-Whole Amount” in Annex A to the Indenture.

 

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 4.1.3, 4.1.8, 4.1.9, 4.1.10, 4.1.11, 6.1.3(b), 6.3, 10, 12.8(a) or 12.9 of the Participation Agreement, of the provisions of Section 4.1.2(x) of the Participation Agreement so as to eliminate the requirement to deliver to the Subordination Agent 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 6.4.5(a)(ii) of the Participation Agreement as regards the rights of the Mortgagee thereunder or otherwise modify the terms of the Participation Agreement 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.

Notwithstanding the foregoing, any form of Financing Agreement 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


 

16

any such action shall not materially adversely affect the interests of the Note Holders, the Related Note Holder of a Related Series AA Equipment Note, the Related Note Holder of a Related Series A Equipment Note, the Subordination Agent, the Liquidity Providers, the Mortgagee or the Certificateholders.


ANNEX A to

Note Purchase Agreement

DEFINITIONS

Act” means 49 U.S.C. §§ 40101-46507.

Additional Series Equipment Notes” means Equipment Notes of each series issued under an Indenture and designated other than as “Series AA” or “Series A” issued thereunder, if any.

Additional Series Pass Through Certificates” means the pass through certificates issued pursuant to any Additional Series Pass Through Trust Agreement.

Additional Series Pass Through Trust” means a grantor trust created to facilitate the issuance and sale of pass through certificates in connection with the issuance of any Additional Series Equipment Notes.

Additional Series Pass Through Trust Agreement” means a Trust Supplement entered into in connection with the creation of an Additional Series Pass Through Trust, together with the Basic Pass Through Trust Agreement.

Additional Series Pass Through Trustee” means the trustee under an Additional Series Pass Through Trust Agreement.

Aircraft” has the meaning set forth in the second recital to the Note Purchase Agreement.

Aircraft Purchase Agreement” means, (a) with respect to any Boeing 737 MAX 9 aircraft, the Purchase Agreement No. PA-03776, dated as of July 12, 2012, between the Company (as assignee of UCH) and The Boeing Company (which incorporates the terms and conditions (except as specifically set forth in such Purchase Agreement) of the Aircraft General Terms Agreement UCH-AGTA, dated as of July 12, 2012 between The Boeing Company and UCH), as amended, (b) with respect to any Boeing 787-10 aircraft, the Purchase Agreement No. 3860, dated as of September 27, 2012, between the Company and The Boeing Company (which incorporates the terms and conditions (except as specifically set forth in such Purchase Agreement) of the Aircraft General Terms Agreement AGTA-UAL, dated as of February 19, 2010, between the Boeing Company and the Company), as amended and (c) with respect to any Embraer ERJ 175LL aircraft, the Purchase Agreement COM0370-18, dated as of July 13, 2018, between the Company and Embraer S.A., as amended (in each case under clauses (a), (b) and (c)


 

2

including all exhibits thereto, together with all letter agreements entered into that by their terms constitute part of such Purchase Agreement).

Applicable Pass Through Trustee” has the meaning provided in Section 1(b)(ii) of the Note Purchase Agreement.

Bankruptcy Code” means the United States Bankruptcy Code, 11 U.S.C. §§ 101 et seq.

Basic Pass Through Trust Agreement” means the Pass Through Trust Agreement, dated October 3, 2012, 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, Chicago, Illinois, Wilmington, Delaware or Boston, Massachusetts.

Certificateholder” means the Person in whose name a Certificate is registered in the Register.

Certificates” has the meaning set forth in the fourth recital to the Note Purchase Agreement.

Class” means the class of Certificates issued by each Pass Through Trust.

Class A Certificates” means Certificates issued by the Class A Pass Through Trust.

Class A Pass Through Trustee” has the meaning set forth in the fifth recital to the Note Purchase Agreement.

Class AA Certificates” means Certificates issued by the Class AA Pass Through Trust.

Class AA Pass Through Trustee” has the meaning set forth in the fifth recital to the Note Purchase Agreement.

Closing Notice” has the meaning set forth in Section 1(b) of the Note Purchase Agreement.

Company” means United Airlines, Inc., a Delaware corporation.

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.


 

3

Delivered Aircraft” has the meaning set forth in the second recital to the Note Purchase Agreement.

Delivery Date” means the Business Day on which an Aircraft is delivered to and accepted by the Company.

Delivery Period Termination Date” means the earlier of (a) November 30, 2019, (provided that, if a labor strike occurs or continues at either Manufacturer after the Issuance Date and on or prior to such date referred to in this clause (a), such date shall be extended by adding thereto the number of days that such strike continued in effect after the Issuance Date, but not more than 60 days (such extended number of days, the “Strike Period”)) (provided that the Strike Period shall not include any day of a labor strike (1) at The Boeing Company after the Pass Through Trustees shall have purchased in accordance with the Note Purchase Agreement Equipment Notes with respect to nine Boeing 737 MAX 9 aircraft and six Boeing 787-10 aircraft or (2) at Embraer S.A. after the Pass Through Trustees shall have purchased in accordance with the Note Purchase Agreement Equipment Notes with respect to ten Embraer ERJ 175 LL aircraft), and (b) the date on which Equipment Notes issued with respect to all of the Aircraft (including any Substitute Aircraft in lieu of any New Aircraft) have been purchased by the Pass Through Trustees in accordance with the Note Purchase Agreement.

Deposit Agreements” has the meaning set forth in the sixth recital to the Note Purchase Agreement.

Depositary” means Sumitomo Mitsui Banking Corporation, acting through its New York Branch, a joint stock corporation with limited liability organized and existing under the laws of Japan and licensed under the laws of the State of New York.

Depositary Threshold Ratings” means, in the case of Fitch, the long-term issuer credit rating of A- or short-term issuer credit rating of F1 and, in the case of Moody’s, a short-term unsecured debt rating of P-1.

Deposits” has the meaning set forth in the sixth 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


 

4

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 Agent Agreements” has the meaning set forth in Section 3(e)(i) of the Note Purchase Agreement.

Escrow and Paying Agent Agreements” has the meaning set forth in the sixth recital to the Note Purchase Agreement.

FAA” means the Federal Aviation Administration of the United States.

Financing Agreements” means, collectively, the Participation Agreement, the Indenture and the Equipment Notes issued thereunder.

Funding Date” has the meaning set forth in Section 1(b)(i) of the Note Purchase Agreement.

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.

Indenture” means the Trust Indenture and Mortgage substantially in the form of Exhibit C to the Note Purchase Agreement.

Initial Deposits” has the meaning set forth in the sixth recital to the Note Purchase Agreement.

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.


 

5

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.

Manufacturer” means, (A) with respect to any Boeing 737 MAX 9 aircraft or Boeing 787-10 aircraft, The Boeing Company, a Delaware corporation, and (B) with respect to any Embraer ERJ 175 LL aircraft, Embraer S.A., a company organized under the laws of Brazil, in each case solely in its capacity as manufacturer or seller of the Aircraft under the applicable Aircraft Purchase Agreement to which it is a party.

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 Intercreditor Agreement, the Equipment Notes, the Certificates and the Financing Agreements.

Participation Agreement” means the Participation Agreement substantially in the form of Exhibit B to the Note Purchase Agreement.

Pass Through Trust” has the meaning set forth in the fourth recital to the Note Purchase Agreement.

Pass Through Trust Agreement” means each of the two separate Trust Supplements referred to in the fourth recital to the Note Purchase Agreement, together in each case with the Basic Pass Through Trust Agreement, each dated as of the Issuance Date, by and between the Company and Pass Through Trustee.

Pass Through Trustee” has the meaning set forth in the first paragraph of the Note Purchase Agreement.


 

6

Paying Agent” has the meaning set forth in the first paragraph of the Note Purchase Agreement.

Paying Agent Agreements” has the meaning set forth in Section 3(f)(i) 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.

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 Fitch Ratings, Inc. and Moody’s Investors Service, Inc.

Rating Agency Confirmation” means, with respect to (1) any Financing Agreement that has been modified in any material respect from the forms thereof attached to the Note Purchase Agreement or (2) a Substitute Aircraft, a written confirmation from each of the Rating Agencies that (1) the use of such Financing Agreement with such modifications or (2) the substituting of such Substitute Aircraft for a New 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 then rated by such Rating Agency below the then current rating for such Class of Certificates or (ii) a withdrawal or suspension of the rating of any Class of Certificates then rated by such Rating Agency.

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.

Replacement Deposit Agreement” means, for each Class of Certificates, a deposit agreement substantially in the form of the replaced Deposit Agreement for such Class of Certificates as shall permit each Rating Agency to confirm in writing that the replacement of the Depositary will not cause a withdrawal, suspension or downgrading of the rating then in effect for such Class of Certificates by such Rating Agency (without regard to any withdrawal, suspension or downgrading of the Depositary being replaced.)


 

7

Replacement Depositary” has the meaning set forth in Section 4(a)(vii) of the Note Purchase Agreement.

Required Terms” means the terms set forth on Schedule III to the Note Purchase Agreement.

Scheduled Closing Date” has the meaning set forth in Section 1(b) of the Note Purchase Agreement.

Section 1110” means 11 U.S.C. § 1110 of the Bankruptcy Code or any successor or analogous Section of the federal bankruptcy Law in effect from time to time.

Series A Equipment Notes” means the “Series A Equipment Notes” as defined in each Indenture entered into pursuant to the Note Purchase Agreement.

Series AA Equipment Notes” means the “Series AA Equipment Notes” as defined in each Indenture entered into pursuant 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 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


 

8

undivided interests in such trust is authorized and (iii) the terms of the pass through certificates of such class are established.

UCH” means United Continental Holdings, Inc., a Delaware corporation.

Underwriters” has the meaning set forth in the fifth recital to the Note Purchase Agreement.

Underwriting Agreement” has the meaning set forth in the fifth recital to the Note Purchase Agreement.

WTNA” has the meaning set forth in the first paragraph of the Note Purchase Agreement.


EXHIBIT A

TO

NOTE PURCHASE AGREEMENT

CLOSING NOTICE

Dated as of [                    ]

To each of the addressees listed

in Schedule A hereto

 

  Re:

Closing Notice in accordance with Note Purchase Agreement referred to below

Ladies and Gentlemen:

Reference is made to the Note Purchase Agreement, dated as of February 11, 2019, among United Airlines, Inc. (the “Company”), Wilmington Trust, National Association, as Pass Through Trustee under each of the Pass Through Trust Agreements (as defined therein) (the “Pass Through Trustee”), Wilmington Trust, National Association, as Subordination Agent (the “Subordination Agent”), U.S. Bank National Association, as Escrow Agent (the “Escrow Agent”), and Wilmington Trust, National Association, 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 Section 1(b) of the Note Purchase Agreement, the undersigned hereby notifies you, in respect of the [Boeing][Embraer] Model [            ] aircraft with manufacturer’s serial number [            ] (the “Aircraft”), of the following:

 

(1)

The Scheduled Closing Date of the Aircraft is [                    ];

 

(2)

The Funding Date for the Aircraft shall be [                    ]; and

 

(3)

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 AA Pass Through Trustee shall purchase Series AA Equipment Notes in the amount of $[                    ]; and

 

  (b)

the Class A Pass Through Trustee shall purchase Series A Equipment Notes in the amount of $[                    ].


 

-2-

The Company hereby instructs the Class AA Pass Through 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 hereto and (ii) deliver such Withdrawal Certificate and Notice of Purchase Withdrawal to the applicable Escrow Agent.

The Company hereby instructs the Class A Pass Through 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 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 (3) above with a portion of the proceeds of the withdrawals of Deposits referred to in the applicable Notice of Purchase Withdrawal referred to above 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 Owner, and Wilmington Trust, National Association, as Mortgagee, Subordination Agent and Pass Through Trustee, (b) perform its obligations thereunder and (c) deliver such certificates, documents and legal opinions relating to such Pass Through Trustee as required thereby.


 

-3-

Yours faithfully,
United Airlines, Inc.
By:  

 

  Name:
  Title:


SCHEDULE A

Wilmington Trust, National Association, as

Pass Through Trustee, Subordination

Agent and Paying Agent

1100 North Market Street

Wilmington, Delaware 19890-1605

Attention: Corporate Trust Administration

Facsimile: (302) 636-4140

U.S. Bank National Association,

as Escrow Agent

Boston, MA Office

One Federal Street, 3rd Floor

EX-MA-FED

Boston, MA 02110

Attention: David W. Doucette

Facsimile: (617) 603-6672

Sumitomo Mitsui Banking Corporation,

acting through its New York Branch, as Depositary,

277 Park Avenue

New York, NY 10172,

Attention: BCDAD-Agency & Special Product Services

E-mail: AgencyServices@smbcgroup.com


Moody’s Investors Service, Inc.

7 World Trade Center at 250 Greenwich Street

New York, New York 10007

Attention: Jonathan Root

Facsimile: 212-553-4661

Fitch Ratings, Inc.

1 State Street

New York, New York 10004

Attention: Joe Rohlena

Facsimile: (212) 558-2564


Annex A

WITHDRAWAL CERTIFICATE

(Class         )

U.S. Bank National Association,

as Escrow Agent

Ladies and Gentlemen:

Reference is made to the Escrow and Paying Agent Agreement, dated as of February 11, 2019 (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 Purchase Withdrawal and immediately transmit by E-mail to the Depositary, at AgencyServices@smbcgroup.com (Attention: BCDAD-Agency & Special Product Services).

Capitalized terms used herein but not defined herein shall have the meanings set forth in the Agreement.

 

Very truly yours,
WILMINGTON TRUST, NATIONAL ASSOCIATION,
not in its individual capacity but solely as Pass
Through Trustee
By:  

 

  Name:
  Title:

Dated: As of [                    ]


Exhibit A

NOTICE OF PURCHASE WITHDRAWAL

Sumitomo Mitsui Banking Corporation,

acting through its New York Branch, as Depositary,

277 Park Avenue

New York, NY 10172,

Attention: BCDAD-Agency & Special Product Services

E-mail: AgencyServices@smbcgroup.com

Ladies and Gentlemen:

Reference is made to the Deposit Agreement (Class AA) dated as of February 11, 2019 (the “Deposit Agreement”) between U.S. Bank National Association, as Escrow Agent, and Sumitomo Mitsui Banking Corporation, acting through its 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 entire amount of the Deposit to Wilmington Trust, National Association, Account No. [            ], ABA No. 031-100-092, Account Name: United Airlines 2019-1 EETC, Reference: [                    ] on [                    ].

 

U.S. BANK NATIONAL ASSOCIATION,
    as Escrow Agent
By  

 

  Name:
  Title:

Dated: As of [                    ]


Exhibit B

NOTICE OF PURCHASE WITHDRAWAL

Sumitomo Mitsui Banking Corporation,

acting through its New York Branch, as Depositary,

277 Park Avenue

New York, NY 10172,

Attention: BCDAD-Agency & Special Product Services

E-mail: AgencyServices@smbcgroup.com

Ladies and Gentlemen:

Reference is made to the Deposit Agreement (Class A) dated as of February 11, 2019 (the “Deposit Agreement”) between U.S. Bank National Association, as Escrow Agent, and Sumitomo Mitsui Banking Corporation, acting through its 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 entire amount of the Deposit to Wilmington Trust, National Association, Account No. [            ], ABA No. 031-100-092, Account Name: United Airlines 2019-1 EETC, Reference: [                    ] on [                    ].

 

U.S. BANK NATIONAL ASSOCIATION,
as Escrow Agent
By  

 

  Name:
  Title:

Dated: As of [                    ]


EXHIBIT B TO NOTE PURCHASE AGREEMENT

 

 

    CONFIDENTIAL: Subject to Restrictions on    

Dissemination

Set Forth in Section 7 of this Agreement

 

 

 

 

PARTICIPATION AGREEMENT [        ]

Dated as of [            ]

Among

UNITED AIRLINES, INC.,

Owner,

and

WILMINGTON TRUST, NATIONAL ASSOCIATION,

Not in its individual capacity

except as expressly provided herein,

but solely as Mortgagee, Subordination Agent

under the Intercreditor Agreement and Pass Through Trustee

under each of the Applicable Pass Through Trust Agreements

 

 

One [Boeing][Embraer] Model [            ] Aircraft

Bearing Manufacturer’s Serial No. [            ]

and U.S. Registration No. N [            ]

 

 

 

 

     


CONTENTS

 

SECTION 1.

  DEFINITIONS AND CONSTRUCTION      2  

SECTION 2.

  SECURED LOANS; CLOSING      2  
  2.1    Making of Loans and Issuance of Equipment Notes      2  
  2.2    Closing      3  

SECTION 3.

  [Intentionally omitted]      3  

SECTION 4.

  CONDITIONS PRECEDENT      3  
  4.1    Conditions Precedent to the Obligations of the Pass Through Trustees      3  
  4.2    Conditions Precedent to Obligations of Mortgagee      8  
  4.3    Conditions Precedent to Obligations of Owner      8  
  4.4    Post-Registration Opinion      9  

SECTION 5.

  REPRESENTATIONS AND WARRANTIES      10  
  5.1    Owner’s Representations and Warranties      10  
  5.2    WTNA’s Representations and Warranties      13  

SECTION 6.

  COVENANTS, UNDERTAKINGS AND AGREEMENTS      17  
  6.1    Covenants of Owner      17  
  6.2    Covenants of WTNA      19  
  6.3    Covenants of Note Holders      20  
  6.4    Agreements      22  

SECTION 7.

  CONFIDENTIALITY      25  

SECTION 8.

  INDEMNIFICATION AND EXPENSES      26  
  8.1    General Indemnity      26  
  8.2    Expenses      32  
  8.3    General Tax Indemnity      33  
  8.4    Payments      43  
  8.5    Interest      43  
  8.6    Benefit of Indemnities      44  

SECTION 9.

  ASSIGNMENT OR TRANSFER OF INTEREST      44  
  9.1    Note Holders      44  
  9.2    Effect of Transfer      44  

 

      PAGE i


SECTION 10.

  SECTION 1110      45  

SECTION 11.

  CHANGE OF CITIZENSHIP      45  
  11.1    Generally      45  
  11.2    Mortgagee      45  

SECTION 12.

  MISCELLANEOUS      46  
  12.1    Amendments      46  
  12.2    Severability      46  
  12.3    Survival      46  
  12.4    Reproduction of Documents      46  
  12.5    Counterparts      47  
  12.6    No Waiver      47  
  12.7    Notices      47  
  12.8    GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE      48  
  12.9    Third-Party Beneficiary      49  
  12.10    Entire Agreement      49  
  12.11    Further Assurances      50  

SCHEDULES AND EXHIBITS

 

SCHEDULE 1 -   Accounts; Addresses
SCHEDULE 2 -   Commitments
SCHEDULE 3 -   Certain Terms
SCHEDULE 4 -   Permitted Countries
EXHIBIT A -   Opinion of special counsel to Owner
EXHIBIT B -   Opinion of corporate counsel to Owner
EXHIBIT C -   Opinion of special counsel to Mortgagee and to the Applicable Pass Through Trustees
EXHIBIT D -   Opinion of special counsel in Oklahoma City, Oklahoma

 

      PAGE ii


PARTICIPATION AGREEMENT [        ]

PARTICIPATION AGREEMENT [        ], dated as of [            ] (this “Agreement”), among (a) UNITED AIRLINES, INC., a Delaware corporation (“Owner”), (b) WILMINGTON TRUST, NATIONAL ASSOCIATION, a national banking association, not in its individual capacity, except as expressly provided herein, but solely as Mortgagee (in its capacity as Mortgagee, “Mortgagee” and in its individual capacity, “WTNA”), (c) WILMINGTON TRUST, NATIONAL ASSOCIATION, not in its individual capacity, except as expressly provided herein, but solely as Pass Through Trustee under each of the Applicable Pass Through Trust Agreements (each, an “Applicable Pass Through Trustee”) and (d) WILMINGTON TRUST, NATIONAL ASSOCIATION, not in its individual capacity, except as expressly provided herein, but solely as Subordination Agent under the Intercreditor Agreement (“Subordination Agent”).

RECITALS

A. [The Aircraft is currently owned by the Owner.]1 [Owner and Airframe Manufacturer have entered into the Purchase Agreement, pursuant to which, among other things, Airframe Manufacturer has agreed to manufacture and sell to Owner and Owner has agreed to purchase from Airframe Manufacturer, certain aircraft, including the Aircraft.]2

B. Pursuant to each of the Pass Through Trust Agreements, the Pass Through Trusts were created and the Pass Through Certificates were issued and sold.

C. Each Applicable Pass Through Trustee has agreed to use a portion of the proceeds from the issuance and sale of the Pass Through Certificates issued by each Applicable Pass Through Trust to purchase from Owner, on behalf of the related Applicable Pass Through Trust, the Equipment Note bearing the same interest rate as the Pass Through Certificates issued by such Pass Through Trust.

D. Owner and Mortgagee, concurrently with the execution and delivery hereof, have entered into the Trust Indenture for the benefit of the Note Holders, pursuant to which, among other things, Owner agrees (1) to issue Equipment Notes, in the amounts and otherwise as provided in the Trust Indenture, and (2) to mortgage, pledge and assign to Mortgagee all of Owner’s

 

 

1 

Insert for Delivered Aircraft.

2 

Insert for New Aircraft.

 

      PAGE 1


right, title and interest in the Collateral pursuant to the terms and conditions of the Indenture to secure the Secured Obligations, including, without limitation, Owner’s obligations under the Equipment Notes.

E. The parties hereto wish to set forth in this Agreement the terms and conditions upon and subject to which the aforesaid transactions shall be effected.

NOW, THEREFORE, in consideration of the premises and the mutual agreements contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

SECTION 1. DEFINITIONS AND CONSTRUCTION

Capitalized terms used but not defined herein (including in the initial paragraph and Recitals above) shall have the respective meanings set forth or incorporated by reference, and shall be construed and interpreted in the manner described, in Annex A to the Trust Indenture.

SECTION 2. SECURED LOANS; CLOSING

 

  2.1

Making of Loans and Issuance of Equipment Notes

Subject to the terms and conditions of this Agreement, on the date hereof or on such other date agreed to by the parties hereto (the “Closing Date”):

 

  (a)

Each Applicable Pass Through Trustee listed on Schedule 2 shall make a secured loan to the Owner in the amount in Dollars opposite such Trustee’s name on Schedule 2; and

 

  (b)

The Owner shall issue, pursuant to and in accordance with the provisions of Article II of the Trust Indenture, to the Subordination Agent as the registered holder on behalf of each such Applicable Pass Through Trustee, one or more Equipment Notes, dated the Closing Date, of the Series set forth opposite such Trustee’s name on Schedule 2, in an aggregate principal amount equal to the amount of the secured loan made by each such Applicable Pass Through Trustee.

In addition, the Owner shall have the option after the Closing Date to repay and reissue Series A Equipment Notes and

 

      PAGE 2


to issue (and repay and reissue) from time to time Additional Series Equipment Notes, subject to the terms of the Note Purchase Agreement and the Intercreditor Agreement. If Series A or Additional Series Equipment Notes are so reissued or issued after the Closing Date, the Note Holder of such Equipment Notes shall be entitled to execute a counterpart to this Agreement and become a party hereto.

 

  2.2

Closing

(a) The Closing of the transactions contemplated hereby shall take place at the offices of Hughes Hubbard & Reed LLP, One Battery Park Plaza, New York, New York 10004, or at such other place as the parties shall agree.

(b) All payments pursuant to this Section 2 shall be made in immediately available funds to such accounts set forth in Schedule 1 hereto.

SECTION 3. [Intentionally omitted]

SECTION 4. CONDITIONS PRECEDENT

 

  4.1

Conditions Precedent to the Obligations of the Pass Through Trustees

The obligation of each Applicable Pass Through Trustee listed on Schedule 2 to make the secured loan described in Section 2.1(a) and to participate in the transactions contemplated by this Agreement on the Closing Date is subject to the fulfillment, prior to or on the Closing Date, of the following conditions precedent:

 

  4.1.1

Equipment Notes

The Owner shall have tendered the Equipment Notes to be issued to such Applicable Pass Through Trustees to the Mortgagee for authentication and the Mortgagee shall have authenticated such Equipment Notes to be issued to such Applicable Pass Through Trustees and shall have tendered the Equipment Notes to the Subordination Agent on behalf of such Pass Through Trustee, against receipt of the loan proceeds, in accordance with Section 2.1.

 

      PAGE 3


  4.1.2

Delivery of Documents

The Subordination Agent on behalf of each such Applicable Pass Through Trustee shall have received executed counterparts or conformed copies of the following documents:

(i) this Agreement;

(ii) the Trust Indenture;

(iii) the initial Trust Indenture Supplement;

(iv) the broker’s report and insurance certificates required by Section 4.06 of the Trust Indenture;

(v) the Consent and Agreement and the Engine Consent and Agreement;

(vi) the Bills of Sale;

(vii) (A) a copy of the Certificate of Incorporation and By-Laws of Owner and resolutions of the board of directors of Owner and/or the executive committee thereof, in each case certified as of the Closing Date, by the Secretary or an Assistant Secretary of Owner, duly authorizing the execution, delivery and performance by Owner of the Operative Agreements to which it is party required to be executed and delivered by Owner on or prior to the Closing Date in accordance with the provisions hereof and thereof; and (B) an incumbency certificate of Owner as to the person or persons authorized to execute and deliver the Operative Agreements on behalf of Owner;

(viii) an Officer’s Certificate of Owner, dated as of the Closing Date, stating that its representations and warranties set forth in this Agreement are true and correct as of the Closing Date (or, to the extent that any such representation and warranty expressly relates to an earlier date, true and correct as of such earlier date);

(ix) the Financing Statements;

(x) the following opinions of counsel, in each case dated the Closing Date:

(A) an opinion of Hughes Hubbard & Reed LLP, special counsel to Owner, substantially in the form of Exhibit A;

 

      PAGE 4


(B) an opinion of Owner’s Legal Department, substantially in the form of Exhibit B;

(C) an opinion of Morris James LLP, special counsel to Mortgagee and to the Applicable Pass Through Trustees, substantially in the form of Exhibit C;

(D) an opinion of Lytle Soulé & Curlee, special counsel in Oklahoma City, Oklahoma, substantially in the form of Exhibit D; and

(xi) a copy of a current, valid [Standard Certificate of Airworthiness for the Aircraft duly issued by the FAA]3 [Export Certificate of Airworthiness duly issued by the Brazilian aviation authority]4 together with a copy of a duly executed application for registration (or of a certificate of aircraft registration) of the Aircraft with the FAA in the name of the Owner.

 

  4.1.3

Perfected Security Interest

On the Closing Date, after giving effect to the filing of the FAA Filed Documents, the filing of the Financing Statements and the registration of the International Interest (or Prospective International Interest) of the Mortgagee in the Airframe and each Engine with the International Registry, Mortgagee shall have received a duly perfected first priority security interest in all of Owner’s right, title and interest in the Aircraft, subject only to Permitted Liens.

 

  4.1.4

Violation of Law

No change shall have occurred after the date of this Agreement in any applicable Law that makes it a violation of Law for (a) Owner, any Applicable Pass Through Trustee, Subordination Agent or Mortgagee to execute, deliver and perform the Operative Agreements to which any of them is a party or (b) any Applicable Pass Through Trustee to make the loan contemplated by Section 2.1, to acquire an Equipment Note or to realize the benefits of the security afforded by the Trust Indenture.

 

3 

Insert for Boeing 737 MAX 9 Aircraft and 787-10 Aircraft.

4 

Insert for Embraer ERJ 175 LL Aircraft.

 

      PAGE 5


  4.1.5

Representations, Warranties and Covenants

The representations and warranties of each other party to this Agreement made, in each case, in this Agreement and in any other Operative Agreement to which it is a party, shall be true and accurate in all material respects as of the Closing Date (unless any such representation and warranty shall have been made with reference to a specified date, in which case such representation and warranty shall be true and accurate as of such specified date) and each other party to this Agreement shall have performed and observed, in all material respects, all of its covenants, obligations and agreements in this Agreement and in any other Operative Agreement to which it is a party to be observed or performed by it as of the Closing Date.

 

  4.1.6

No Event of Default

On the Closing Date, no event shall have occurred and be continuing, or would result from the mortgage of the Aircraft, which constitutes a Default or an Event of Default.

 

  4.1.7

No Event of Loss

No Event of Loss with respect to the Airframe or any Engine shall have occurred and no circumstance, condition, act or event that, with the giving of notice or lapse of time or both, would give rise to or constitute an Event of Loss with respect to the Airframe or any Engine shall have occurred.

 

  4.1.8

Title

Owner shall have good title (subject to filing and recordation of the FAA Bill of Sale with the FAA) to the Aircraft, free and clear of all Liens, except Permitted Liens.

 

  4.1.9

Certification

The Aircraft shall have been duly certificated by the FAA as to type [and airworthiness in accordance with the terms of the Purchase Agreement]5 [, and an export certificate of airworthiness shall have been issued by the Brazilian aviation authority]6.

 

5 

Insert for Boeing 737 MAX 9 Aircraft and 787-10 Aircraft.

6 

Insert for Embraer ERJ 175 LL Aircraft.

 

      PAGE 6


  4.1.10

Section 1110

Mortgagee shall be entitled to the benefits of Section 1110 (as currently in effect) with respect to the right to take possession of the Airframe and Engines and to enforce any of its other rights or remedies as provided in the Trust Indenture in the event of a case under Chapter 11 of the Bankruptcy Code in which Owner is a debtor.

 

  4.1.11

Filing

On the Closing Date (a) the FAA Filed Documents shall have been duly filed for recordation (or shall be in the process of being so duly filed for recordation) with the FAA in accordance with the Act, (b) the sale of the Airframe and Engines to the Owner and the International Interest (or Prospective International Interest) of the Mortgagee in the Airframe and Engines granted (or to be granted) under the Trust Indenture shall have been registered with the International Registry and there shall exist no registered International Interest with respect to the Airframe or either Engine on the International Registry with a priority over the International Interest of the Mortgagee therein, (c) each Financing Statement shall have been duly filed (or shall be in the process of being so duly filed) in the appropriate jurisdiction and (d) the Subordination Agent, on behalf of each Applicable Pass Through Trustee, shall have received a printout of the “priority search certificate” from the International Registry relating to the Airframe and each Engine showing no International Interest with a priority over the International Interest of the Mortgagee therein.

 

  4.1.12

No Proceedings

No action or proceeding shall have been instituted, nor shall any action be threatened in writing, before any Government Entity, nor shall any order, judgment or decree have been issued or proposed to be issued by any Government Entity, to set aside, restrain, enjoin or prevent the completion and consummation of this Agreement or any other Operative Agreement or the transactions contemplated hereby or thereby.

 

  4.1.13

Governmental Action

All appropriate action required to have been taken prior to the Closing Date by the FAA, or any governmental or political agency, subdivision or instrumentality of the United States, in connection with the transactions contemplated by this Agreement shall have been taken, and all orders, permits, waivers,

 

      PAGE 7


authorizations, exemptions and approvals of such entities required to be in effect on the Closing Date in connection with the transactions contemplated by this Agreement shall have been issued.

 

  4.1.14

Note Purchase Agreement

The conditions precedent to the obligations of the Applicable Pass Through Trustees and the other requirements relating to the Aircraft and the Equipment Notes set forth in the Note Purchase Agreement shall have been satisfied.

 

  4.2

Conditions Precedent to Obligations of Mortgagee

The obligation of Mortgagee to authenticate the Equipment Notes on the Closing Date is subject to the satisfaction or waiver by Mortgagee, on or prior to the Closing Date, of the conditions precedent set forth below in this Section 4.2.

 

  4.2.1

Documents

Executed originals of the agreements, instruments, certificates or documents described in Section 4.1.2 shall have been received by Mortgagee, except as specifically provided therein, unless the failure to receive any such agreement, instrument, certificate or document is the result of any action or inaction by Mortgagee.

 

  4.2.2

Other Conditions Precedent

Each of the conditions set forth in Sections 4.1.4, 4.1.5, 4.1.6 and 4.1.10 shall have been satisfied unless the failure of any such condition to be satisfied is the result of any action or inaction by Mortgagee.

 

  4.3

Conditions Precedent to Obligations of Owner

The obligation of Owner to participate in the transaction contemplated hereby on the Closing Date is subject to the satisfaction or waiver by Owner, on or prior to the Closing Date, of the conditions precedent set forth below in this Section 4.3.

 

  4.3.1

Documents

Executed originals of the agreements, instruments, certificates or documents described in Section 4.1.2 shall have been received by Owner, except as specifically provided therein, and shall be satisfactory to Owner, unless the failure to

 

      PAGE 8


receive any such agreement, instrument, certificate or document is the result of any action or inaction by Owner. In addition, the Owner shall have received the following:

(i) (A) an incumbency certificate of WTNA as to the person or persons authorized to execute and deliver the Operative Agreements on behalf of WTNA and (B) a copy of the Certificate of Incorporation and By-Laws and general authorizing resolution of the board of directors (or executive committee) or other satisfactory evidence of authorization of WTNA, certified as of the Closing Date by the Secretary or Assistant or Attesting Secretary of WTNA, which authorize the execution, delivery and performance by WTNA of the Operative Agreements to which it is a party; and

(ii) an Officer’s Certificate of WTNA, dated as of the Closing Date, stating that its representations and warranties in its individual capacity or as Mortgagee, an Applicable Pass Through Trustee or Subordination Agent, as the case may be, set forth in this Agreement are true and correct as of the Closing Date (or, to the extent that any such representation and warranty expressly relates to an earlier date, true and correct as of such earlier date).

 

  4.3.2

Other Conditions Precedent

Each of the conditions set forth in Sections 4.1.4, 4.1.5, 4.1.6, 4.1.7, 4.1.8, 4.1.9, 4.1.10, 4.1.11, 4.1.12 and 4.1.13 shall have been satisfied or waived by Owner, unless the failure of any such condition to be satisfied is the result of any action or inaction by Owner.

 

  4.4

Post-Registration Opinion

Promptly upon the registration of the Aircraft and the recordation of the FAA Filed Documents pursuant to the Act, Owner will cause Lytle Soulé & Curlee, special counsel in Oklahoma City, Oklahoma, to deliver to Owner, each Pass Through Trustee and Mortgagee a favorable opinion or opinions addressed to each of them with respect to such registration and recordation.

 

      PAGE 9


SECTION 5. REPRESENTATIONS AND WARRANTIES

 

  5.1

Owner’s Representations and Warranties

Owner represents and warrants to each Pass Through Trustee, Subordination Agent and Mortgagee that:

 

  5.1.1

Organization; Qualification

Owner is a corporation duly incorporated, validly existing and in good standing under the Laws of the State of Delaware and has the corporate power and authority to conduct the business in which it is currently engaged and to own or hold under lease its properties and to enter into and perform its obligations under the Operative Agreements to which it is party. Owner is duly qualified to do business as a foreign corporation in good standing in each jurisdiction in which the nature and extent of the business conducted by it, or the ownership of its properties, requires such qualification, except where the failure to be so qualified would not give rise to a Material Adverse Change to Owner.

 

  5.1.2

Corporate Authorization

Owner has taken, or caused to be taken, all necessary corporate action (including, without limitation, the obtaining of any consent or approval of stockholders required by its Certificate of Incorporation or By-Laws) to authorize the execution and delivery of each of the Operative Agreements to which it is party, and the performance of its obligations thereunder.

 

  5.1.3

No Violation

The execution and delivery by Owner of the Operative Agreements to which it is party, the performance by Owner of its obligations thereunder and the consummation by Owner on the Closing Date of the transactions contemplated thereby, do not and will not (a) violate any provision of the Certificate of Incorporation or By-Laws of Owner, (b) violate any Law applicable to or binding on Owner or (c) violate or constitute any default under (other than any violation or default that would not result in a Material Adverse Change to Owner), or result in the creation of any Lien (other than as permitted under the Trust Indenture) upon the Aircraft under, any indenture, mortgage, chattel mortgage, deed of trust, conditional sales contract, lease, loan or other material

 

      PAGE 10


agreement, instrument or document to which Owner is a party or by which Owner or any of its properties is bound.

 

  5.1.4

Approvals

The execution and delivery by Owner of the Operative Agreements to which Owner is a party, the performance by Owner of its obligations thereunder and the consummation by Owner on the Closing Date of the transactions contemplated thereby do not and will not require the consent or approval of, or the giving of notice to, or the registration with, or the recording or filing of any documents with, or the taking of any other action in respect of, (a) any trustee or other holder of any Debt of Owner and (b) any Government Entity, other than (x) the filings, registrations and recordations referred to in Section 5.1.6 and (y) filings, recordings, notices or other ministerial actions pursuant to any routine recording, contractual or regulatory requirements applicable to it.

 

  5.1.5

Valid and Binding Agreements

The Operative Agreements to which Owner is a party have been duly authorized, executed and delivered by Owner and, assuming the due authorization, execution and delivery thereof by the other party or parties thereto, constitute the legal, valid and binding obligations of Owner and are enforceable against Owner in accordance with the respective terms thereof, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, receivership, moratorium and other similar Laws affecting the rights of creditors generally and general principles of equity, whether considered in a proceeding at law or in equity.

 

  5.1.6

Registration and Recordation

Except for (a) the registration of the Aircraft with the FAA pursuant to the Act in the name of Owner (and the periodic renewal of such registration with the FAA prior to its expiration), (b) the filing with the FAA of the AC Forms 8050-135 with respect to the sale of the Airframe and Engines to Owner and the International Interests (or Prospective International Interests) granted under the Trust Indenture thereon and the filing with the FAA for recordation (and recordation) of the FAA Filed Documents, (c) the registration of the International Interest (or Prospective International Interest) in, and the sale to the Owner of, the Airframe and Engines with the International Registry, (d) the filing of the Financing Statements (and continuation statements relating

 

      PAGE 11


thereto at periodic intervals), and (e) the affixation of the nameplates referred to in Section 4.02(f) of the Trust Indenture, no further action, including any filing or recording of any document (including any financing statement in respect thereof under Article 9 of the UCC) is necessary in order to establish and perfect Mortgagee’s security interest in the Aircraft as against Owner and any other Person, in each case, in any applicable jurisdictions in the United States.

 

  5.1.7

Owner’s Location

The Owner’s location (as such term is used in Section 9-307 of the UCC) is Delaware. The full and correct legal name and mailing address of Owner are correctly set forth in Schedule 1 hereto in the column “Address for Notices”.

 

  5.1.8

No Event of Loss

No Event of Loss has occurred with respect to the Airframe or any Engine, and, to the Actual Knowledge of Owner, no circumstance, condition, act or event has occurred that, with the giving of notice or lapse of time or both gives rise to or constitutes an Event of Loss with respect to the Airframe or any Engine.

 

  5.1.9

Compliance With Laws

(a) Owner is a Citizen of the United States and a U.S. Air Carrier.

(b) Owner holds all licenses, permits and franchises from the appropriate Government Entities necessary to authorize Owner to lawfully engage in air transportation and to carry on scheduled commercial passenger service as currently conducted, except where the failure to so hold any such license, permit or franchise would not give rise to a Material Adverse Change to Owner.

(c) Owner is not an “investment company” or a company controlled by an “investment company” within the meaning of the Investment Company Act of 1940, as amended.

 

  5.1.10

Securities Laws

Neither Owner nor any person authorized to act on its behalf has directly or indirectly offered any beneficial interest or Security relating to the ownership of the Aircraft, or any of the Equipment Notes or any other interest in or

 

      PAGE 12


security under the Trust Indenture, for sale to, or solicited any offer to acquire any such interest or security from, or has sold any such interest or security to, any person in violation of the Securities Act.

 

  5.1.11

Broker’s Fees

No Person acting on behalf of Owner is or will be entitled to any broker’s fee, commission or finder’s fee in connection with the Transactions, other than the fees and expenses payable by Owner in connection with the sale of the Pass Through Certificates.

 

  5.1.12

Section 1110

Mortgagee is entitled to the benefits of Section 1110 (as currently in effect) with respect to the right to take possession of the Airframe and Engines and to enforce any of its other rights or remedies as provided in the Trust Indenture in the event of a case under Chapter 11 of the Bankruptcy Code in which Owner is a debtor.

 

  5.1.13

Cape Town

The Owner is a Transacting User Entity (as defined in the regulations of the International Registry); is “situated”, for the purposes of the Cape Town Treaty, in the United States; and has the power to “dispose” (as such term is used in the Cape Town Treaty) of the Airframe and each Engine. The Bills of Sale for the Airframe and Engines constitute a “contract of sale” (as defined in the Cape Town Treaty), and the Trust Indenture, as supplemented by the Trust Indenture Supplement in which such Airframe and Engines are listed, creates an International Interest in such Airframe and Engines. The Airframe and each Engine are “aircraft objects” (as defined in the Cape Town Treaty); and the United States is a Contracting State under the Cape Town Treaty.

 

  5.2

WTNA’s Representations and Warranties

WTNA represents and warrants (with respect to Section 5.2.10, solely in its capacity as Subordination Agent) to Owner that:

 

  5.2.1

Organization, Etc.

WTNA is a national banking association duly organized, validly existing and in good standing under the Laws of the

 

      PAGE 13


United States of America, holding a valid certificate to do business as a national banking association with corporate and banking authority to execute and deliver, and perform its obligations under, the Applicable Pass Through Trustee Agreements and the Operative Agreements to which it is a party.

 

  5.2.2

Corporate Authorization

WTNA has taken, or caused to be taken, all necessary corporate action (including, without limitation, the obtaining of any consent or approval of stockholders required by Law or by its Certificate of Incorporation or By-Laws) to authorize the execution and delivery by WTNA, in its individual capacity or as Mortgagee, a Pass Through Trustee or Subordination Agent, as the case may be, of the Pass Through Trustee Agreements and the Operative Agreements to which it is a party and the performance of its obligations thereunder.

 

  5.2.3

No Violation

The execution and delivery by WTNA, in its individual capacity or as Mortgagee, a Pass Through Trustee or Subordination Agent, as the case may be, of the Pass Through Trustee Agreements and the Operative Agreements to which it is a party, the performance by WTNA, in its individual capacity or as Mortgagee, a Pass Through Trustee or Subordination Agent, as the case may be, of its obligations thereunder and the consummation on the Closing Date of the transactions contemplated thereby, do not and will not (a) violate any provision of the Certificate of Incorporation or By-Laws of WTNA, (b) violate any Law applicable to or binding on WTNA, in its individual capacity or (except in the case of any Law relating to any Plan) as Mortgagee, a Pass Through Trustee or Subordination Agent, or (c) violate or constitute any default under (other than any violation or default that would not result in a Material Adverse Change to WTNA, in its individual capacity or Mortgagee, a Pass Through Trustee or Subordination Agent), or result in the creation of any Lien (other than the Lien of the Trust Indenture) upon any property of WTNA, in its individual capacity or as Mortgagee, a Pass Through Trustee or Subordination Agent, or any of WTNA’s subsidiaries under, any indenture, mortgage, chattel mortgage, deed of trust, conditional sales contract, lease, loan or other agreement, instrument or document to which WTNA, in its individual capacity or as Mortgagee, a Pass Through Trustee or Subordination Agent, is a party or by which WTNA, in its individual capacity or as Mortgagee, a Pass Through Trustee or Subordination Agent, or any of their respective properties is bound.

 

      PAGE 14


  5.2.4

Approvals

The execution and delivery by WTNA, in its individual capacity or as Mortgagee, a Pass Through Trustee or Subordination Agent, as the case may be, of the Pass Through Trustee Agreements and the Operative Agreements to which it is a party, the performance by WTNA, in its individual capacity or as Mortgagee, a Pass Through Trustee or Subordination Agent, as the case may be, of its obligations thereunder and the consummation on the Closing Date by WTNA, in its individual capacity or as Mortgagee, a Pass Through Trustee or Subordination Agent, as the case may be, of the transactions contemplated thereby do not and will not require the consent, approval or authorization of, or the giving of notice to, or the registration with, or the recording or filing of any documents with, or the taking of any other action in respect of, (a) any trustee or other holder of any Debt of WTNA or (b) any Government Entity, other than the filing of the FAA Filed Documents and the Financing Statements.

 

  5.2.5

Valid and Binding Agreements

The Pass Through Trustee Agreements and the Operative Agreements to which it is a party have been duly authorized, executed and delivered by WTNA and, assuming the due authorization, execution and delivery by the other party or parties thereto, constitute the legal, valid and binding obligations of WTNA, in its individual capacity or as Mortgagee, a Pass Through Trustee or Subordination Agent, as the case may be, and are enforceable against WTNA, in its individual capacity or as Mortgagee, a Pass Through Trustee or Subordination Agent, as the case may be, in accordance with the respective terms thereof, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, receivership, moratorium or other similar Laws affecting the rights of creditors generally and general principles of equity, whether considered in a proceeding at law or in equity.

 

  5.2.6

Citizenship

WTNA is a Citizen of the United States.

 

  5.2.7

No Liens

On the Closing Date, there are no Liens attributable to WTNA in respect of all or any part of the Collateral.

 

      PAGE 15


  5.2.8

Litigation

There are no pending or, to the Actual Knowledge of WTNA, threatened actions or proceedings against WTNA, in its individual capacity or as Mortgagee, a Pass Through Trustee or Subordination Agent, before any court, administrative agency or tribunal which, if determined adversely to WTNA, in its individual capacity or as Mortgagee, a Pass Through Trustee or Subordination Agent, as the case may be, would materially adversely affect the ability of WTNA, in its individual capacity or as Mortgagee, a Pass Through Trustee or Subordination Agent, as the case may be, to perform its obligations under any of the Mortgagee Agreements, the Pass Through Trustee Agreements or the Subordination Agent Agreements.

 

  5.2.9

Securities Laws

Neither WTNA nor any person authorized to act on its behalf has directly or indirectly offered any beneficial interest or Security relating to the ownership of the Aircraft or any interest in the Collateral or any of the Equipment Notes or any other interest in or security under the Collateral for sale to, or solicited any offer to acquire any such interest or security from, or has sold any such interest or security to, any Person other than the Subordination Agent and the Pass Through Trustees, except for the offering and sale of the Pass Through Certificates.

 

  5.2.10

Investment

The Equipment Notes to be acquired by the Subordination Agent are being acquired by it for the account of the Applicable Pass Through Trustees, for investment and not with a view to any resale or distribution thereof, except that, subject to the restrictions on transfer set forth in Section 9, the disposition by it of its Equipment Notes shall at all times be within its control.

 

  5.2.11

Taxes

There are no Taxes payable by any Applicable Pass Through Trustee or WTNA, as the case may be, imposed by the State of Delaware or any political subdivision or taxing authority thereof in connection with the execution, delivery and performance by such Pass Through Trustee or WTNA, as the case may be, of this Agreement or any of the Pass Through Trustee Agreements (other than franchise or other taxes based on or measured by any fees or compensation received by any such Pass

 

      PAGE 16


Through Trustee or WTNA, as the case may be, for services rendered in connection with the transactions contemplated by any of the Pass Through Trust Agreements), and there are no Taxes payable by any Applicable Pass Through Trustee or WTNA, as the case may be, imposed by the State of Delaware or any political subdivision thereof in connection with the acquisition, possession or ownership by any such Pass Through Trustee of any of the Equipment Notes (other than franchise or other taxes based on or measured by any fees or compensation received by any such Pass Through Trustee or WTNA, as the case may be, for services rendered in connection with the transactions contemplated by any of the Pass Through Trust Agreements), and, assuming that the trusts created by the Pass Through Trust Agreements will not be taxable as corporations, but, rather, each will be characterized as a grantor trust under subpart E, Part I of Subchapter J of the Code or as a partnership under Subchapter K of the Code, such trusts will not be subject to any Taxes imposed by the State of Delaware or any political subdivision thereof.

 

  5.2.12

Broker’s Fees

No Person acting on behalf of WTNA, in its individual capacity or as Mortgagee, any Applicable Pass Through Trustee or Subordination Agent, is or will be entitled to any broker’s fee, commission or finder’s fee in connection with the Transactions.

SECTION 6. COVENANTS, UNDERTAKINGS AND AGREEMENTS

 

  6.1

Covenants of Owner

Owner covenants and agrees, at its own cost and expense, with Note Holder and Mortgagee as follows:

 

  6.1.1

Corporate Existence; U.S. Air Carrier

Owner shall at all times maintain its corporate existence, except as permitted by Section 4.07 of the Trust Indenture, and shall at all times remain a U.S. Air Carrier.

 

  6.1.2

Notice of Change of Location

Owner will give Mortgagee timely written notice (but in any event within 30 days prior to the expiration of the period of time specified under applicable Law to prevent lapse of perfection) of any change in its location (as such term is used in Section 9-307 of the UCC) or legal name and will promptly

 

      PAGE 17


take any action required by Section 6.1.3(c) as a result of such relocation.

 

  6.1.3

Certain Assurances

(a) Owner 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 Mortgagee shall reasonably request for accomplishing the purposes of this Agreement and the other Operative Agreements, provided that any instrument or other document so executed by Owner will not expand any obligations or limit any rights of Owner in respect of the transactions contemplated by any Operative Agreement.

(b) Owner shall promptly take such action with respect to the recording, filing, re-recording and refiling of the Trust Indenture and any supplements thereto, including, without limitation, the initial Trust Indenture Supplement, as shall be necessary to continue the perfection and priority of the Lien created by the Trust Indenture.

(c) Owner, at its sole cost and expense, will cause the FAA Filed Documents, the Financing Statements and all continuation statements (and any amendments necessitated by any combination, consolidation or merger of the Owner, or any relocation of its chief executive office) in respect of the Financing Statements to be prepared and, subject only to the execution and delivery thereof by Mortgagee, duly and timely filed and recorded, or filed for recordation, to the extent permitted under the Act (with respect to the FAA Filed Documents) or the UCC or similar law of any other applicable jurisdiction (with respect to such other documents). Mortgagee, and not Owner, shall be responsible for any amendments to the foregoing documents and filings, recordings and registrations thereof necessitated in any such case by any combination, consolidation or merger of Mortgagee or change in the Mortgagee’s name, status, jurisdiction of organization or address.

(d) If the Aircraft has been registered in a country other than the United States pursuant to Section 4.02(e) of the Trust Indenture, Owner will furnish to Mortgagee annually after such registration, commencing with the calendar year after such registration is effected, an opinion of special counsel reasonably satisfactory to Mortgagee stating that, in the opinion of such counsel, either that (i) such action has been

 

      PAGE 18


taken with respect to the recording, filing, rerecording and refiling of the Operative Agreements and any supplements and amendments thereto as is necessary to establish, perfect and protect the Lien created by the Trust Indenture, reciting the details of such actions, or (ii) no such action is necessary to maintain the perfection of such Lien.

 

  6.1.4

Securities Laws

Neither Owner nor any person authorized to act on its behalf will directly or indirectly offer any beneficial interest or Security relating to the ownership of the Aircraft or any interest in any of the Equipment Notes or any other interest in or security under the Trust Indenture, for sale to, or solicit any offer to acquire any such interest or security from, or sell any such interest or security to, any person in violation of the Securities Act or applicable state or foreign securities Laws.

 

  6.2

Covenants of WTNA

WTNA in its individual capacity or as Mortgagee, each Applicable Pass Through Trustee or Subordination Agent, as the case may be, covenants and agrees with Owner as follows:

 

  6.2.1

Liens

WTNA (a) will not directly or indirectly create, incur, assume or suffer to exist any Lien attributable to it on or with respect to all or any part of the Collateral or the Aircraft, (b) will, at its own cost and expense, promptly take such action as may be necessary to discharge any Lien attributable to WTNA on all or any part of the Collateral or the Aircraft and (c) will personally hold harmless and indemnify Owner, each Note Holder, each of their respective Affiliates, successors and permitted assigns, and the Collateral from and against (i) any and all Expenses, (ii) any reduction in the amount payable out of the Collateral, and (iii) any interference with the possession, operation or other use of all or any part of the Aircraft, imposed on, incurred by or asserted against any of the foregoing as a consequence of any such Lien.

 

  6.2.2

Securities Act

WTNA in its individual capacity or as Mortgagee, an Applicable Pass Through Trustee or Subordination Agent, will not offer any beneficial interest or Security relating to the ownership of the Aircraft or any interest in the Collateral, or any of the Equipment Notes or any other interest in or security

 

      PAGE 19


under the Trust Indenture for sale to, or solicit any offer to acquire any such interest or security from, or sell any such interest or security to, any Person in violation of the Securities Act or applicable state or foreign securities Laws, provided that the foregoing shall not be deemed to impose on WTNA any responsibility with respect to any such offer, sale or solicitation by any other party hereto.

 

  6.2.3

Performance of Agreements

WTNA, in its individual capacity and as Mortgagee, an Applicable Pass Through Trustee or Subordination Agent, as the case may be, shall perform its obligations under the Pass Through Trustee Agreements and the Operative Agreements in accordance with the terms thereof.

 

  6.2.4

Withholding Taxes

WTNA shall indemnify (on an after-tax basis) and hold harmless Owner against any United States withholding taxes (and related interest, penalties and additions to tax) as a result of the failure by WTNA to withhold on payments to any Note Holder if such Note Holder failed to provide to Mortgagee necessary certificates or forms to substantiate the right to exemption from such withholding tax.

 

  6.3

Covenants of Note Holders

Each Note Holder (including Subordination Agent) as to itself only covenants and agrees with Owner and Mortgagee as follows:

 

  6.3.1

Withholding Taxes

Such Note Holder (if it is a Non-U.S. Person) agrees to indemnify (on an after-tax basis) and hold harmless Owner and Mortgagee against any United States withholding taxes (and related interest, penalties and additions to tax) as a result of the inaccuracy or invalidity of any certificate or form provided by such Note Holder to Mortgagee in connection with such withholding taxes. Any amount payable hereunder shall be paid within 30 days after receipt by a Note Holder of a written demand therefor.

 

  6.3.2

Transfer; Compliance

(a) Such Note Holder will (i) not transfer any Equipment Note or interest therein in violation of the Securities Act or

 

      PAGE 20


applicable state or foreign securities Law; provided, that the foregoing provisions of this section shall not be deemed to impose on such Note Holder any responsibility with respect to any such offer, sale or solicitation by any other party hereto, and (ii) perform and comply with the obligations specified to be imposed on it (as a Note Holder) under each of the Trust Indenture and the form of Equipment Note set forth in the Trust Indenture.

(b) Except for the transfer of the interests of each Applicable Pass Through Trustee in the Equipment Notes to the trustee of the Related Trust (as defined in each Applicable Pass Through Trust Agreement) in accordance with the related Applicable Pass Through Trust Agreement, each Note Holder will not sell, assign, convey, exchange or otherwise transfer any Equipment Note or any interest in, or represented by, any Equipment Note (it being understood that this provision is not applicable to the Pass Through Certificates) unless the proposed transferee thereof first provides Owner with both of the following:

(i) a written representation and covenant that either (a) no portion of the funds it uses to purchase, acquire and hold such Equipment Note or interest directly or indirectly constitutes, or may be deemed under the Code or ERISA or any rulings, regulations or court decisions thereunder to constitute, the assets of any Plan or (b) the transfer, and subsequent holding, of such Equipment Note or interest shall not involve or give rise to a transaction that constitutes a prohibited transaction within the meaning of Section 406 of ERISA or Section 4975(c)(1) of the Code involving Owner, a Pass Through Trustee, the Subordination Agent or the proposed transferee (other than a transaction that is exempted from the prohibitions of such sections by applicable provisions of ERISA or the Code or administrative exemptions or regulations issued thereunder); and

(ii) a written covenant that it will not transfer any Equipment Note or any interest in, or represented by, any Equipment Note unless the subsequent transferee also makes the representation described in clause (i) above and agrees to comply with this clause (ii).

 

      PAGE 21


  6.4

Agreements

 

  6.4.1

Quiet Enjoyment

Each Applicable Pass Through Trustee, Subordination Agent, each Note Holder and Mortgagee each agrees as to itself with Owner that, so long as no Event of Default shall have occurred and be continuing, such Person shall not (and shall not permit any Affiliate or other Person claiming by, through or under it to) interfere with Owner’s rights in accordance with the Indenture to the quiet enjoyment, possession and use of the Aircraft.

 

  6.4.2

Consents

Each Pass Through Trustee, Subordination Agent and Mortgagee each covenants and agrees, for the benefit of Owner, that it shall not unreasonably withhold its consent to any consent or approval requested of it under the terms of any of the Operative Agreements which by its terms is not to be unreasonably withheld.

 

  6.4.3

Insurance

Each Pass Through Trustee, Subordination Agent, Mortgagee and each Note Holder each agrees not to obtain or maintain insurance for its own account as permitted by Section 4.06 of the Trust Indenture if such insurance would limit or otherwise adversely affect the coverage of any insurance required to be obtained or maintained by Owner pursuant to Section 4.06 of the Trust Indenture.

 

  6.4.4

Extent of Interest of Note Holders

A Note Holder shall not, as such, have any further interest in, or other right with respect to, the Collateral when and if the principal and Make-Whole Amount, if any, of and interest on the Equipment Note held by such Holder, and all other sums, then due and payable to such Holder hereunder and under any other Operative Agreement, shall have been paid in full. The preceding sentence shall not limit the rights of the Related Note Holders with respect to Related Secured Obligations under the Trust Indenture, provided that a Related Note Holder shall not, as such, have any further interest in, or other right with respect to, the Collateral when and if the Related Secured Obligations attributable to the Related Equipment Note held by such Holder shall have been paid in full.

 

      PAGE 22


  6.4.5

Foreign Registration

Each Note Holder and Mortgagee hereby agree, for the benefit of Owner but subject to the provisions of Section 4.02(b) of the Trust Indenture:

(a) that Owner shall be entitled to register the Aircraft or cause the Aircraft to be registered in a country other than the United States subject to compliance with the following:

 

  (i)

each of the following requirements is satisfied:

 

  (A)

no Special Default or Event of Default shall have occurred and be continuing at the time of such registration;

 

  (B)

such proposed change of registration is made in connection with a Permitted Lease to a Permitted Air Carrier; and

 

  (C)

such country is a country with which the United States then maintains normal diplomatic relations or, if such country is Taiwan, the United States then maintains diplomatic relations at least as good as those in effect on the Closing Date; and

(ii) the Mortgagee shall have received an opinion of counsel (subject to customary exceptions) reasonably satisfactory to the Mortgagee addressed to Mortgagee to the effect that:

(A) such country would recognize the Owner’s ownership interest in the Aircraft;

(B) after giving effect to such change in registration, the Lien of the Trust Indenture on the Owner’s right, title and interest in and to the Aircraft shall continue as a valid and duly perfected first priority security interest and International Interest and all filing, recording or other action necessary to protect the same shall have been accomplished (or, if such opinion cannot be given at the time of such proposed change in registration because such change in registration is not yet effective, (1) the opinion shall detail what filing, recording or other action is necessary and (2) the Mortgagee shall have received a certificate from Owner that all possible preparations to accomplish such filing, recording and other action shall have been

 

      PAGE 23


done, and such filing, recording and other action shall be accomplished and a supplemental opinion to that effect shall be delivered to the Mortgagee on or prior to the effective date of such change in registration);

(C) unless Owner or the Permitted Air Carrier shall have agreed to provide insurance covering the risk of requisition of use of the Aircraft by the government of such country (so long as the Aircraft is registered under the laws of such country), the laws of such country require fair compensation by the government of such country payable in currency freely convertible into Dollars and freely removable from such country (without license or permit, unless Owner prior to such proposed reregistration has obtained such license or permit) for the taking or requisition by such government of such use; and

(D) it is not necessary, solely as a consequence of such change in registration and without giving effect to any other activity of the Mortgagee (or any Affiliate of the Mortgagee), for the Mortgagee to qualify to do business in such jurisdiction as a result of such reregistration in order to exercise any rights or remedies with respect to the Aircraft.

(b) In addition, as a condition precedent to any change in registration Owner shall have given to Mortgagee assurances reasonably satisfactory to Mortgagee:

 

  (i)

to the effect that the provisions of Section 4.06 of the Trust Indenture have been complied with after giving effect to such change of registration;

 

  (ii)

of the payment by Owner of all reasonable out-of-pocket expenses of each Note Holder and Mortgagee in connection with such change of registry, including, without limitation (1) the reasonable fees and disbursements of counsel to Mortgagee, (2) any filing or recording fees, Taxes or similar payments incurred in connection with the change of registration of the Aircraft and the creation and perfection of the security interest therein in favor of Mortgagee for the benefit of Note Holders, and (3) all costs and expenses incurred in connection with any filings necessary to continue in the United States the perfection

 

      PAGE 24


  of the security interest in the Aircraft in favor of Mortgagee for the benefit of Note Holders; and

 

  (iii)

to the effect that the tax and other indemnities in favor of each person named as an indemnitee under any other Operative Agreement afford each such person substantially the same protection as provided prior to such change of registration (or Owner shall have agreed upon additional indemnities that, together with such original indemnities, in the reasonable judgment of Mortgagee, afford such protection).

 

  6.4.6

Interest in Certain Engines

Each Note Holder and Mortgagee agree, for the benefit of each of the lessor, conditional seller, mortgagee or secured party of any airframe or engine leased to, or purchased by, Owner or any Permitted Lessee subject to a lease, conditional sale, trust indenture or other security agreement that it will not acquire or claim, as against such lessor, conditional seller, mortgagee or secured party, any right, title or interest in any engine as the result of such engine being installed on the Airframe at any time while such engine is subject to such lease, conditional sale, trust indenture or other security agreement and owned by such lessor or conditional seller or subject to a trust indenture or security interest in favor of such mortgagee or secured party.

SECTION 7. CONFIDENTIALITY

Owner, Note Holders and Mortgagee shall keep the Participation Agreement and Annex B to the Trust Indenture confidential and shall not disclose, or cause to be disclosed, the same to any Person, except (A) to prospective and permitted transferees of Owner’s, a Note Holder’s, the Liquidity Provider’s, Mortgagee’s or other Indenture Indemnitee’s interest or their respective counsel or special counsel, independent insurance brokers, auditors, or other agents who agree to hold such information confidential, (B) to Owner’s, a Note Holder’s, the Liquidity Provider’s, a Pass Through Trustee’s, Mortgagee’s or other Indenture Indemnitee’s counsel or special counsel, independent insurance brokers, auditors, or other agents, Affiliates or investors who agree to hold such information confidential, (C) as may be required by any statute, court or administrative order or decree, legal process or governmental ruling or regulation, including those of any applicable insurance regulatory bodies (including, without limitation, the

 

      PAGE 25


National Association of Insurance Commissioners), federal or state banking examiners, Internal Revenue Service auditors or any stock exchange, (D) with respect to a Note Holder or any Pass Through Trustee, to a nationally recognized rating agency for the purpose of obtaining a rating on the Equipment Notes or the Pass Through Certificates or to support an NAIC rating for the Equipment Notes or (E) such other Persons as are reasonably deemed necessary by the disclosing party in order to protect the interests of such party or for the purposes of enforcing such documents by such party; provided, that any and all disclosures permitted by clauses (C), (D), or (E) above shall be made only to the extent necessary to meet the specific requirements or needs of the Persons making such disclosures.

SECTION 8. INDEMNIFICATION AND EXPENSES

 

  8.1

General Indemnity

 

  8.1.1

Indemnity

Whether or not any of the transactions contemplated hereby are consummated, Owner shall indemnify, protect, defend and hold harmless each Indemnitee from, against and in respect of, and shall pay on a net after-tax basis, any and all Expenses of any kind or nature whatsoever that may be imposed on, incurred by or asserted against any Indemnitee, relating to, resulting from, or arising out of or in connection with, any one or more of the following:

(a) The Operative Agreements, the Pass Through Agreements, or the enforcement of any of the terms of any of the Operative Agreements or the Pass Through Agreements;

(b) The Aircraft, the Airframe, any Engine or any Part, including, without limitation, with respect thereto, (i) the manufacture, design, purchase, acceptance, nonacceptance or rejection, ownership, registration, reregistration, deregistration, delivery, nondelivery, lease, sublease, assignment, possession, use or non-use, operation, maintenance, testing, repair, overhaul, condition, alteration, modification, addition, improvement, storage, airworthiness, replacement, repair, sale, substitution, return, abandonment, redelivery or other disposition of the Aircraft, any Engine or any Part, (ii) any claim or penalty arising out of violations of applicable Laws by Owner (or any Permitted Lessee), (iii) tort liability, whether or not arising out of the negligence of any Indemnitee (whether active, passive or imputed), (iv) death or property damage of passengers, shippers or others, (v) environmental

 

      PAGE 26


control, noise or pollution and (vi) any Liens in respect of the Aircraft, any Engine or any Part;

(c) The offer, sale, or delivery of any Equipment Notes, Pass Through Certificates or any interest therein or represented thereby; and

(d) Any breach of or failure to perform or observe, or any other noncompliance with, any covenant or agreement or other obligation to be performed by Owner under any Operative Agreement to which it is party or any Pass Through Agreement or the falsity of any representation or warranty of Owner in any Operative Agreement to which it is party or any Pass Through Agreement.

 

  8.1.2

Exceptions

Notwithstanding anything contained in Section 8.1.1, Owner shall not be required to indemnify, protect, defend and hold harmless any Indemnitee pursuant to Section 8.1.1 in respect of any Expense of such Indemnitee:

(a) For any Taxes or a loss of Tax benefit, whether or not Owner is required to indemnify therefor pursuant to Section 8.3;

(b) Except to the extent attributable to acts or events occurring prior thereto, acts or events (other than acts or events related to the performance by Owner of its obligations pursuant to the terms of the Operative Agreements) that occur after the Trust Indenture is required to be terminated in accordance with Section 11.01 of the Trust Indenture; provided, that nothing in this clause (b) shall be deemed to exclude or limit any claim that any Indemnitee may have under applicable Law by reason of an Event of Default or for damages from Owner for breach of Owner’s covenants contained in the Operative Agreements or to release Owner from any of its obligations under the Operative Agreements that expressly provide for performance after termination of the Trust Indenture;

(c) To the extent attributable to any Transfer (voluntary or involuntary) by or on behalf of such Indemnitee of any Equipment Note or interest therein, except for out-of-pocket costs and expenses incurred as a result of any such Transfer pursuant to the exercise of remedies under any Operative Agreement;

(d) [Intentionally Omitted]

 

      PAGE 27


(e) To the extent attributable to the gross negligence or willful misconduct of such Indemnitee or any related Indemnitee (as defined below) (other than gross negligence or willful misconduct imputed to such person by reason of its interest in the Aircraft or any Operative Agreement);

(f) [Intentionally Omitted]

(g) To the extent attributable to the incorrectness or breach of any representation or warranty of such Indemnitee or any related Indemnitee contained in or made pursuant to any Operative Agreement or any Pass Through Agreement;

(h) To the extent attributable to the failure by such Indemnitee or any related Indemnitee to perform or observe any agreement, covenant or condition on its part to be performed or observed in any Operative Agreement or any Pass Through Agreement;

(i) To the extent attributable to the offer or sale by such Indemnitee or any related Indemnitee of any interest in the Aircraft, the Equipment Notes, the Pass Through Certificates, or any similar interest, in violation of the Securities Act or other applicable federal, state or foreign securities Laws (other than any thereof caused by acts or omissions of Owner);

(j) (i) With respect to any Indemnitee (other than Mortgagee), to the extent attributable to the failure of the Mortgagee to distribute funds received and distributable by it in accordance with the Trust Indenture, (ii) with respect to any Indemnitee (other than the Subordination Agent), to the extent attributable to the failure of the Subordination Agent to distribute funds received and distributable by it in accordance with the Intercreditor Agreement, (iii) with respect to any Indemnitee (other than the Pass Through Trustees), to the extent attributable to the failure of a Pass Through Trustee to distribute funds received and distributable by it in accordance with the Pass Through Trust Agreements, (iv) with respect to any Indemnitee (other than the Escrow Agent), to the extent attributable to the failure of the Escrow Agent to pay funds received and payable by it in accordance with any Escrow Agreement, (v) with respect to any Indemnitee (other than the Paying Agent), to the extent attributable to the failure of the Paying Agent to distribute funds received and distributable by it in accordance with any Escrow Agreement, (vi) to the extent attributable to the failure of the Depositary to pay funds payable by it in accordance with any Deposit Agreement, (vii) with respect to Mortgagee, to the extent attributable to

 

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the negligence or willful misconduct of Mortgagee in the distribution of funds received and distributable by it in accordance with the Trust Indenture, (viii) with respect to the Subordination Agent, to the extent attributable to the negligence or willful misconduct of the Subordination Agent in the distribution of funds received and distributable by it in accordance with the Intercreditor Agreement, (ix) with respect to the Pass Through Trustees, to the extent attributable to the negligence or willful misconduct of a Pass Through Trustee in the distribution of funds received and distributable by it in accordance with the Pass Through Trust Agreements, (x) with respect to the Escrow Agent, to the extent attributable to the negligence or willful misconduct of the Escrow Agent in the payment of funds received and payable by it in accordance with any Escrow Agreement and (xi) with respect to the Paying Agent, to the extent attributable to the negligence or willful misconduct of the Paying Agent in the distribution of funds received and distributable by it in accordance with any Escrow Agreement;

(k) Other than during the continuation of an Event of Default, to the extent attributable to the authorization or giving or withholding of any future amendments, supplements, waivers or consents with respect to any Operative Agreement or Pass Through Agreement other than such as have been requested by Owner or as are required by or made pursuant to the terms of the Operative Agreements or Pass Through Agreements (unless such requirement results from the actions of an Indemnitee not required by or made pursuant to the Operative Agreements or the Pass Through Agreements);

(l) To the extent attributable to any amount which any Indemnitee expressly agrees to pay or such Indemnitee expressly agrees shall not be paid by or be reimbursed by Owner;

(m) To the extent that it is an ordinary and usual operating or overhead expense;

(n) [Intentionally Omitted]

(o) For any Lien attributable to such Indemnitee or any related Indemnitee;

(p) If another provision of an Operative Agreement or a Pass Through Agreement specifies the extent of Owner’s responsibility or obligation with respect to such Expense, to the extent arising from other than failure of Owner to comply with such specified responsibility or obligation; or

 

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(q) To the extent incurred by or asserted against an Indemnitee as a result of any “prohibited transaction”, within the meaning of Section 406 of ERISA or Section 4975(c)(1) of the Code.

For purposes of this Section 8.1, a Person shall be considered a “related” Indemnitee with respect to an Indemnitee if such Person is an Affiliate or employer of such Indemnitee, a director, officer, employee, agent, or servant of such Indemnitee or any such Affiliate or a successor or permitted assignee of any of the foregoing.

 

  8.1.3

Separate Agreement

This Agreement constitutes a separate agreement with respect to each Indemnitee and is enforceable directly by each such Indemnitee.

 

  8.1.4

Notice

If a claim for any Expense that an Indemnitee shall be indemnified against under this Section 8.1 is made, such Indemnitee shall give prompt written notice thereof to Owner. Notwithstanding the foregoing, the failure of any Indemnitee to notify Owner as provided in this Section 8.1.4, or in Section 8.1.5, shall not release Owner from any of its obligations to indemnify such Indemnitee hereunder, except to the extent that such failure results in an additional Expense to Owner (in which event Owner shall not be responsible for such additional expense) or materially impairs Owner’s ability to contest such claim.

 

  8.1.5

Notice of Proceedings; Defense of Claims; Limitations

(a) In case any action, suit or proceeding shall be brought against any Indemnitee for which Owner is responsible under this Section 8.1, such Indemnitee shall notify Owner of the commencement thereof and Owner may, at its expense, participate in and to the extent that it shall wish (subject to the provisions of the following paragraph), assume and control the defense thereof and, subject to Section 8.1.5(c), settle or compromise the same.

(b) Owner or its insurer(s) shall have the right, at its or their expense, to investigate or, if Owner or its insurer(s) shall agree not to dispute liability to the Indemnitee giving notice of such action, suit or proceeding under this

 

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Section 8.1.5 for indemnification hereunder or under any insurance policies pursuant to which coverage is sought, control the defense of, any action, suit or proceeding, relating to any Expense for which indemnification is sought pursuant to this Section 8.1, and each Indemnitee shall cooperate with Owner or its insurer(s) with respect thereto; provided, that Owner shall not be entitled to control the defense of any such action, suit, proceeding or compromise any such Expense during the continuance of any Event of Default. In connection with any such action, suit or proceeding being controlled by Owner, such Indemnitee shall have the right to participate therein, at its sole cost and expense, with counsel reasonably satisfactory to Owner; provided, that such Indemnitee’s participation does not, in the reasonable opinion of the independent counsel appointed by the Owner or its insurers to conduct such proceedings, interfere with the defense of such case.

(c) In no event shall any Indemnitee enter into a settlement or other compromise with respect to any Expense without the prior written consent of Owner, which consent shall not be unreasonably withheld or delayed, unless such Indemnitee waives its right to be indemnified with respect to such Expense under this Section 8.1.

(d) In the case of any Expense indemnified by the Owner hereunder which is covered by a policy of insurance maintained by Owner pursuant to Section 4.06 of the Indenture, at Owner’s expense, each Indemnitee agrees to cooperate with the insurers in the exercise of their rights to investigate, defend or compromise such Expense as may be required to retain the benefits of such insurance with respect to such Expense.

(e) If an Indemnitee is not a party to this Agreement, Owner may require such Indemnitee to agree in writing to the terms of this Section 8 and Section 12.8 prior to making any payment to such Indemnitee under this Section 8.

(f) Nothing contained in this Section 8.1.5 shall be deemed to require an Indemnitee to contest any Expense or to assume responsibility for or control of any judicial proceeding with respect thereto.

 

  8.1.6

Information

Owner will provide the relevant Indemnitee with such information not within the control of such Indemnitee, as is in Owner’s control or is reasonably available to Owner, which such Indemnitee may reasonably request and will otherwise cooperate

 

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with such Indemnitee so as to enable such Indemnitee to fulfill its obligations under Section 8.1.5. The Indemnitee shall supply Owner with such information not within the control of Owner, as is in such Indemnitee’s control or is reasonably available to such Indemnitee, which Owner may reasonably request to control or participate in any proceeding to the extent permitted by Section 8.1.5.

 

  8.1.7

Effect of Other Indemnities; Subrogation; Further Assurances

Upon the payment in full by Owner of any indemnity provided for under this Agreement, Owner, without any further action and to the full extent permitted by Law, will be subrogated to all rights and remedies of the person indemnified (other than with respect to any of such Indemnitee’s insurance policies or in connection with any indemnity claim such Indemnitee may have under Section 6.03 or 8.01 of the Trust Indenture) in respect of the matter as to which such indemnity was paid. Each Indemnitee will give such further assurances or agreements and cooperate with Owner to permit Owner to pursue such claims, if any, to the extent reasonably requested by Owner and at Owner’s expense.

 

  8.1.8

Refunds

If an Indemnitee receives any refund, in whole or in part, with respect to any Expense paid by Owner hereunder, it will promptly pay the amount refunded (but not an amount in excess of the amount Owner or any of its insurers has paid in respect of such Expense) over to Owner unless an Event of Default shall have occurred and be continuing, in which case such amounts shall be paid over to Mortgagee to hold as security for Owner’s obligations under the Operative Agreements or, if requested by Owner, applied to satisfy such obligations.

 

  8.2

Expenses

 

  8.2.1

Invoices and Payment

The Mortgagee, the Applicable Pass Through Trustees and the Subordination Agent shall promptly submit to Owner for its prompt approval (which shall not be unreasonably withheld) copies of invoices in reasonable detail of the Transaction Expenses for which it is responsible for providing information as they are received (but in no event later than the 90th day after the Closing Date). If so submitted and approved, the Owner agrees promptly, but in any event no later than the 105th day after the Closing Date, to pay Transaction Expenses.

 

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  8.2.2

Payment of Other Expenses

Owner shall pay (i) the ongoing fees and expenses of Mortgagee, and (ii) all reasonable out-of-pocket costs and expenses (including the reasonable fees and disbursements of counsel) incurred by Mortgagee or any Note Holder attributable to any waiver, amendment or modification of any Operative Agreement to the extent requested by Owner.

 

  8.3

General Tax Indemnity

 

  8.3.1

General

Except as provided in Section 8.3.2, Owner agrees that each payment paid by Owner under the Equipment Notes, and any other payment or indemnity paid by Owner to a Tax Indemnitee under any Operative Agreement, shall be free of all withholdings or deductions with respect to Taxes of any nature (other than U.S. federal, state or local withholding taxes on, based on or measured by gross or net income, including, without limitation, any such taxes imposed under FATCA), and in the event that Owner shall be required by applicable law to make any such withholding or deduction for any such payment (x) Owner shall make all such withholdings or deductions, (y) the amount payable by Owner shall be increased so that after making all required withholdings or deductions such Tax Indemnitee receives the same amount that it would have received had no such withholdings or deductions been made, and (z) Owner shall pay the full amount withheld or deducted to the relevant Taxing Authority in accordance with applicable law. Except as provided in Section 8.3.2 and whether or not any of the transactions contemplated hereby are consummated, Owner shall pay, indemnify, protect, defend and hold each Tax Indemnitee harmless from all Taxes imposed by any Taxing Authority that may from time to time be imposed on or asserted against any Tax Indemnitee or the Aircraft, the Airframe, any Engine or any Part or any interest in any of the foregoing (whether or not indemnified against by any other Person), upon or with respect to the Operative Agreements or the transactions or payments contemplated thereby, including but not limited to any Tax imposed upon or with respect to (x) the Aircraft, the Airframe, any Engine, any Part, any Operative Agreement (including without limitation any Equipment Notes) or any data or any other thing delivered or to be delivered under an Operative Agreement, (y) the purchase, manufacture, acceptance, rejection, sale, transfer of title, return, ownership, mortgaging, delivery, transport, charter, rental, lease, re-lease, sublease, assignment, possession, repossession, presence, use, condition, storage, preparation,

 

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maintenance, modification, alteration, improvement, operation, registration, transfer or change of registration, reregistration, repair, replacement, overhaul, location, control, the imposition of any Lien, financing, refinancing requested by the Owner, abandonment or other disposition of the Aircraft, the Airframe, any Engine, any Part, any data or any other thing delivered or to be delivered under an Operative Agreement or (z) interest, fees or any other income, proceeds, receipts or earnings, whether actual or deemed, arising upon, in connection with, or in respect of, any of the Operative Agreements (including the property or income or other proceeds with respect to property held as part of the Collateral) or the transactions contemplated thereby.

 

  8.3.2

Certain Exceptions

The provisions of Section 8.3.1 shall not apply to, and Owner shall have no liability hereunder for, Taxes:

(a) imposed on a Tax Indemnitee by the federal government of the United States or any Taxing Authority or governmental subdivision of the United States or therein (including any state or local Taxing Authority) (i) on, based on, or measured by, gross or net income or gross or net receipts, including capital gains taxes, excess profits taxes, minimum taxes from tax preferences, alternative minimum taxes, branch profits taxes, accumulated earnings taxes, personal holding company taxes, succession taxes and estate taxes, and any withholding taxes on, based on or measured by gross or net income or receipts, including, without limitation, any such taxes imposed under FATCA or (ii) on, or with respect to, or measured by, capital or net worth or in the nature of a franchise tax or a tax for the privilege of doing business (other than, in the case of clause (i) or (ii), sales, use, license or property Taxes);

(b) imposed on a Tax Indemnitee by any Taxing Authority or governmental subdivision thereof or therein outside of the United States (including any Taxing Authority in or of a territory, possession or commonwealth of the United States) (i) on, based on, or measured by, gross or net income or gross or net receipts, including capital gains taxes, excess profits taxes, minimum taxes from tax preferences, alternative minimum taxes, branch profits taxes, accumulated earnings taxes, personal holding company taxes, succession taxes and estate taxes, and any withholding taxes on, based on or measured by gross or net income or receipts or (ii) on, or with respect to, or measured by, capital or net worth or in the nature of a franchise tax or a tax for the privilege of doing business

 

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(other than, in the case of clause (i) or (ii), (A) sales, use, license or property Taxes, or (B) any Taxes imposed by any Taxing Authority (other than a Taxing Authority within whose jurisdiction such Tax Indemnitee is incorporated or organized or maintains its principal place of business) if such Tax Indemnitee would not have been subject to Taxes of such type by such jurisdiction but for (I) the location, use or operation of the Aircraft, the Airframe, any Engine or any Part thereof by an Owner Person within the jurisdiction of the Taxing Authority imposing such Tax, or (II) the activities of any Owner Person in such jurisdiction, including, but not limited to, use of any other aircraft by Owner in such jurisdiction, (III) the status of any Owner Person as a foreign entity or as an entity owned in whole or in part by foreign persons, (IV) Owner having made (or having been deemed to have made) payments to such Tax Indemnitee from the relevant jurisdiction or (V) in the case of the Pass Through Trustees, the Note Holders or any related Tax Indemnitee, the Owner being incorporated or organized or maintaining a place of business or conducting activities in such jurisdiction);

(c) on, or with respect to, or measured by, any trustee fees, commissions or compensation received by the Pass Through Trustee, Subordination Agent or Mortgagee;

(d) that are being contested as provided in Section 8.3.4 hereof;

(e) imposed on any Tax Indemnitee to the extent that such Taxes result from the gross negligence or willful misconduct of such Tax Indemnitee or any Affiliate thereof;

(f) imposed on or with respect to a Tax Indemnitee (including the transferee in those cases in which the Tax on transfer is imposed on, or is collected from, the transferee) as a result of a transfer or other disposition (including a deemed transfer or disposition) by such Tax Indemnitee or a related Tax Indemnitee of any interest in the Aircraft, the Airframe, any Engine or any Part, any interest arising under the Operative Agreements or any Equipment Note or as a result of a transfer or disposition (including a deemed transfer or disposition) of any interest in a Tax Indemnitee (other than (A) a substitution or replacement of the Aircraft, the Airframe, any Engine or any Part by an Owner Person that is treated for Tax purposes as a transfer or disposition, or (B) a transfer pursuant to an exercise of remedies upon an Event of Default that shall have occurred and have been continuing);

 

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(g) Taxes in excess of those that would have been imposed had there not been a transfer or other disposition by or to such Tax Indemnitee or a related Tax Indemnitee described in paragraph (f) above;

(h) consisting of any interest, penalties or additions to tax imposed on a Tax Indemnitee as a result of (in whole or in part) failure of such Tax Indemnitee or a related Tax Indemnitee to file any return properly and timely, unless such failure shall be caused by the failure of Owner to fulfill its obligations, if any, under Section 8.3.6 with respect to such return;

(i) resulting from, or that would not have been imposed but for, any Liens arising as a result of claims against, or acts or omissions of, or otherwise attributable to such Tax Indemnitee or a related Tax Indemnitee that the Owner is not obligated to discharge under the Operative Agreements;

(j) imposed on any Tax Indemnitee as a result of the breach by such Tax Indemnitee or a related Tax Indemnitee of any covenant of such Tax Indemnitee or any Affiliate thereof contained in any Operative Agreement or the inaccuracy of any representation or warranty by such Tax Indemnitee or any Affiliate thereof in any Operative Agreement;

(k) in the nature of an intangible or similar Tax (i) upon or with respect to the value or principal amount of the interest of any Note Holder in any Equipment Note or the loan evidenced thereby but only if such Taxes are in the nature of franchise Taxes or result from the Tax Indemnitee doing business in the taxing jurisdiction and are imposed because of the place of incorporation or the activities unrelated to the transactions contemplated by the Operative Agreements in the taxing jurisdiction of such Tax Indemnitee;

(l) imposed on a Tax Indemnitee by a Taxing Authority of a jurisdiction outside the United States to the extent that such Taxes would not have been imposed but for a connection between the Tax Indemnitee or a related Tax Indemnitee and such jurisdiction imposing such Tax unrelated to the transactions contemplated by the Operative Agreements; or

(m) Taxes relating to ERISA or Section 4975 of the Code.

For purposes hereof, a Tax Indemnitee and any other Tax Indemnitees that are successors, assigns, agents, servants or

 

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Affiliates of such Tax Indemnitee shall be related Tax Indemnitees.

 

  8.3.3

Payment

(a) Owner’s indemnity obligation to a Tax Indemnitee under this Section 8.3 shall equal the amount which, after taking into account any Tax imposed upon the receipt or accrual of the amounts payable under this Section 8.3 and any tax benefits actually recognized by such Tax Indemnitee as a result of the indemnifiable Tax (including, without limitation, any benefits recognized as a result of an indemnifiable Tax being utilized by such Tax Indemnitee as a credit against Taxes not indemnifiable under this Section 8.3), shall equal the amount of the Tax indemnifiable under this Section 8.3.