Document:

Exhibit 10.4

 

AMENDMENT NO. 1 TO LEASE AGREEMENT

(33421)

 

This AMENDMENT NO. 1 TO LEASE AGREEMENT (“Amendment”)
is dated as of September 23, 2002, and is entered into by and between AWMS I, a
Delaware statutory business trust (“Lessor”), and Hawaiian Airlines, Inc., a
Hawaii corporation (“Lessee”)

 

RECITALS

 

A.                                   Lessor and
Lessee have heretofore entered into a Lease Agreement (33421) dated as of
September 20, 2001, as supplemented by Lease Supplement dated September 23,
2002 which was recorded by the Federal Aviation Administration on October 3,
2002 and assigned Conveyance No. F81267 (as amended, modified or supplemented
to the date hereof, the “Lease”), providing for the lease of one (1) Boeing
Model 767-33AER aircraft bearing Manufacturer’s Serial Number 33421.

 

B.                                     Lessee has
requested that certain master changes, seat and galley options, and certain BFE
associated therewith be incorporated into the Aircraft at Lessee’s cost and
Lessor has so agreed.

 

C.                                     Lessor and
Lessee wish to amend the terms of the Lease on the terms and conditions set
forth herein in order to give effect to the foregoing agreement.

 

D.                                    Capitalized
terms used herein and not otherwise defined herein shall have the meaning
assigned to such terms in the Lease and references to “Articles” herein shall
be construed to refer to Articles of the Lease.

 

TERMS AND CONDITIONS

 

Therefore, in consideration of the premises, and
for good and valuable consideration, receipt of which is hereby acknowledged,
the parties hereto hereby agree as follows:

 

1.                                       The Lease is
hereby amended as follows:

 

(a)          Article 1 of
the Lease is hereby amended by adding the following defined term in the
appropriate alphabetical order:

 

“Package B” means the master changes, configuration,
seat and galley options, all as identified on Attachment B to Schedule 2, and
the BFE associated therewith.

 

(b)         Article
2(a)(ii)(A) of the Lease is hereby amended by: 
(i) deleting “and” from the end of clause (f) of such article; (ii)
re-designating clause (g) of such article as clause (h); and (iii) inserting
the following new clause (g) immediately after clause (f) of such article:

 

 

“(g)                           payment
in full for the cost of any Package B paid by Lessor; and”

 

(c)          Article 2(h)
of the Lease is hereby amended by (i) changing the caption of such article to
read “BFE/Package B”, and (ii) adding the following thereto at the end
of such article:

 

“Prior to the Delivery Date, if consistent with
applicable Manufacturer and vendor lead-time constraints, Lessor shall, at
Lessee’s cost, acquire and install or cause to be installed in the Aircraft the
Package B. If installation of any portion of the Package B prior to the
Delivery Date is not consistent with applicable Manufacturer and vendor
lead-time constraints, then Lessor shall have no obligation to install such
portion and Lessee may, at its option and cost, install such portion after the
Delivery Date.”

 

(d)                                 Paragraph 2
of Schedule “1” of the Lease is hereby amended by adding the following new
sentences at the end of such paragraph:

 

“The total cost (including without limitation taxes,
handling charges and cost of installation) of the Package B shall be the sole
cost and responsibility of Lessee.  If
Lessor pays or is obligated to pay all, or any portion of, the cost of the
Package B, then at such time as Lessor pays such cost, and in any event on or
before the Delivery Date, Lessee shall reimburse Lessor for the amount of such
cost paid or to be paid by Lessor.”

 

(e)                                  Schedule 2
of the Lease is hereby amended by (i) replacing the text “See Attachment A to
this Schedule 2” in Paragraph 1.1 of such schedule with “See Attachments A and
B to this Schedule 2”, and (ii) adding Attachment B to this Amendment to such
schedule as a new Attachment B.

 

2.                                       Lessee
hereby represents and warrants to Lessor as of the date hereof that: (A) Lessee
is a corporation duly organized and existing in good standing under the laws of
Hawaii, and has full power, authority and legal right to own its properties and
to carry on its business as presently conducted and to perform its obligations
under this Amendment and the Lease as amended hereby; (B) the execution and
delivery of this Amendment and the performance by Lessee of its obligations
hereunder and under the Lease as amended hereby have been authorized by all
necessary action on the part of Lessee, do not require any approval of
stockholders of Lessee or of any other Person; and (C) this Amendment has been
duly executed and delivered by Lessee and this Amendment and the Lease as
amended hereby constitute legal, valid and binding obligations of Lessee,
enforceable in accordance with their terms, except where the enforceability
hereof or thereof may be limited by applicable bankruptcy, insolvency or other
laws affecting creditors’ rights generally.

 

3.                                       This
amendment when executed and delivered by Lessor and Lessee shall be effective
as of the date first set forth above.

 

2

 

4.                                       This
Amendment may be executed in two or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same
instrument.

 

5.                                       Any
provision of this Amendment which is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof, and such prohibition or unenforceability in any jurisdiction
shall not invalidate or render unenforceable such provision in any other
jurisdiction.  To the extent permitted by
applicable law, Lessee hereby waives any provision of law which renders any
provision hereof prohibited or unenforceable in any respect.  No term or provision of this Amendment may be
changed, waived, discharged or terminated orally, but only by an instrument in
writing signed by the party against whom the enforcement of the change, waiver,
discharge or termination is sought.

 

6.                                       This
Amendment supersedes all prior agreements and understandings between the
parties hereto with respect to the subject matter hereof.

 

7.                                       Except as
specifically amended hereby, the Lease (and all of Lessee’s obligations
thereunder) remains in full force and effect and is hereby reaffirmed.  This Amendment does not constitute a novation
of the Lease, and Lessee’s obligations under the Lease shall continue in full
force and effect, except and only to the extent modified herein.  This Amendment is ancillary to the Lease and
the governing law and jurisdiction set forth in the Lease shall apply to this
Amendment.

 

8.                                       Delivery of
an executed counterpart of this Amendment by telefax shall be equally as
effective as delivery of a manually executed counterpart thereof.  Any party hereto delivering an executed
counterpart of this Amendment by telefax shall also deliver a manually executed
counterpart, but the failure to so deliver a manually executed counterpart
shall not affect the validity, enforceability or binding effect hereof.

 

9.                                       On and after
the effectiveness of this Amendment, each reference in the Lease to “the Lease”,
“this Lease”, “hereunder”, “hereof”, or words of like import referring to the
Lease, shall mean and be a reference to the Lease as amended by this Amendment.

 

[Remainder of page intentionally left blank.]

 

3

 

IN WITNESS WHEREOF, the parties hereto have
caused this Amendment to be duly executed by their respective authorized
officers or representatives as of the date first written above.

 

 

	
   

  	
  AWMS I

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kimberly
  Karavasilis

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  HAWAIIAN AIRLINES,
  INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Christine Deister

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Brian Hermansader

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
				

 

4

 

Attachment B

Package B

 

ADDITIONAL CHANGE OPTIONS TO PA 2376

 

	
  OPTION

  NUMBER

  	
   

  	
  DESCRIPTION

  
	
  2210-000039

  	
   

  	
  AUTOFLIGHT - FULL TIME FLIGHT DIRECTOR

  
	
  2311-000137

  	
   

  	
  HF COMMUNICATIONS - PARTIAL PROVISIONS FOR
  DUAL ARINC 753 HF DATALINK

  
	
  2311A138A52

  	
   

  	
  DUAL HF DATA RADIO - ARINC 753 - ACTIVATION
  - AIRLINE DATA LINK COMMUNICATIONS ONLY

  
	
  2311A138A55

  	
   

  	
  HF COMMUNICATIONS - DUAL ALLIEDSIGNAL HF
  TRANSCEIVERS - P/N 964-0452-012 - AND DIGITAL HF COUPLERS - P/N 964-0453-011
  - BFE/SPE

  
	
  2331A045M63

  	
   

  	
  PASSENGER ADDRESS - PRE-RECORDED
  ANNOUNCEMENT AND BOARDING MUSIC SYSTEM - SONY/ROCKWELL COLLINS

  
	
  2332A045L30

  	
   

  	
  PARTIAL PROVISIONS FOR AIRSHOW 420
  PASSENGER FLIGHT INFORMATION SYSTEM

  
	
  2351-000033

  	
   

  	
  HAND HELD MICROPHONE - CAPTAIN AND FIRST
  OFFICER - ELECTROVOICE - P/N 903-1342 - BFE/SPE

  
	
  2351A213B79

  	
   

  	
  BOOM MICROPHONE HEADSET - SECOND OBSERVER -
  TELEX AIRMAN 750 - P/N 64300-200 - BFE/SPE

  
	
  2520A134P95

  	
   

  	
  INTERIOR DECOR - AWW

  
	
  2528A134P88

  	
   

  	
  LITERATURE POCKETS - BFE

  
	
  2562A134P96

  	
   

  	
  OVERWATER EMERGENCY EQUIPMENT

  
	
  2564A134P97

  	
   

  	
  DETACHABLE EMERGENCY EQUIPMENT - PASSENGER
  COMPARTMENT

  
	
  3133-000057

  	
   

  	
  FULL FORMAT PRINTER - MILTOPE - ARINC 744 -
  P/N 706300-212 - BFE/SPE

  
	
  3342-000022

  	
   

  	
  TAXI LIGHT ON NOSE LANDING GEAR - STEERABLE

  
	
  3446A065A49

  	
   

  	
  EGPWS - PEAKS AND OBSTACLES FEATURES

  
	
  3453A065A23

  	
   

  	
  ATC SYSTEM - ALLIEDSIGNAL ATC TRANSPONDER
  P/N 066-01127-1601 - TCAS CHANGE 7 COMPLIANT - ALLIEDSIGNAL CONTROL PANEL P/N
  071-01503-1501 - BFE/SPE

  
	
  3453A887B73

  	
   

  	
  AIR TRAFFIC CONTROL TRANSPONDER SYSTEM -
  PARTIAL PROVISIONS FOR ENHANCED SURVEILLANCE -

  
	
  3611-000006

  	
   

  	
  ALLIEDSIGNAL INC. - INTERMEDIATE PRESSURE
  (IP) CHECK VALVES - GE\P&W ENGINES

  
	
  3832-000031

  	
   

  	
  VACUUM WASTE SYSTEM - ENVIROVAC TOILET
  ASSEMBLIES

  

 

B-1

 

MASTER CHANGES REQUESTED AND ACCEPTED BY
HAWAIIAN AIRLINES

 

	
  CHANGE

  NUMBER

  	
   

  	
  DESCRIPTION

  
	
  1135B665A15

  	
   

  	
  MP
  - EMERGENCY EQUIPMENT LOCATION CODE PLACARDS - BFE- INSTALLATION

  
	
  2331A045P06

  	
   

  	
  MP - PASSENGER ADDRESS (PA) SYSTEM - REPLACEMENT - RAM/BMM - STAND
  ALONE SYSTEM IN LIEU OF INTEGRATED SYSTEM – CSE

  
	
  2340A973A36

  	
   

  	
  MP - INTERPHONE - REVISION - CREW COMMUNICATION - PILOT’S CALL PANEL
  - WITH “PA IN USE” - THREE BLUE CABIN CALL INDICATORS/SWITCHES IN LIEU OF
  FOUR INDICATORS/SWITCHES

  
	
  2520A044J60

  	
   

  	
  MP - PASSENGER COMPARTMENT - REVISION – INTERIOR DECOR - STAINLESS
  STEEL KICKPLATE DELETION

  
	
  2527B665B64

  	
   

  	
  MP – FLOOR COVERING – REVISION – NOTCHED SEAT TRACK COVERS

  
	
  2528A044J61

  	
   

  	
  MP - STOWAGE COMPARTMENTS - REVISION – MAGAZINE RACKS - BFE IN LIEU
  OF SFE

  
	
  2540B665A19

  	
   

  	
  MP - 2F-4L LAVATORY - REVISION - ADDITION OF INSERTS FOR FOLDING CART
  STOWAGE

  
	
  2564B665A22

  	
   

  	
  MP - EMERGERNCY EQUIPMENT – REVISION

  
	
  2564B665A62

  	
   

  	
  MP - DETACHABLE EMERGENCY EQUIPMENT - REVISION - PASSENGER
  COMPARTMENT

  
	
  2564B665B39

  	
   

  	
  MP – DETACHABLE EMERGENCY EQUIPMENT – RELOCATION – PASSENGER
  COMPARTMENT

  
	
  3133B716A01

  	
   

  	
  MP - MULTI-INPUT PRINTER - THALES - P/N C12349CC03 - IN LIEU OF
  MILTOPE - BFE

  

 

ADDITIONAL CSE EQUIPMENT

 

The following equipment is CSE and
is purchased by Boeing

 

	
  REASON

  	
   

  	
  VENDOR

  	
   

  	
  DESCRIPTION

  	
   

  	
  P/NO

  	
   

  	
  QTY

  
	
  MC 2331A045P06

  	
   

  	
  Rockwell

  	
   

  	
  PRAM

  	
   

  	
  980-0800-139

  	
   

  	
  1

  
	
  MC 2331A045P06

  	
   

  	
  Rockwell

  	
   

  	
  PRAM Controller

  	
   

  	
  980-4597-001

  	
   

  	
  1

  

 

B-2

 

ADDITIONAL BFE EQUIPMENT

 

The following equipment has been
purchased by AWW/BCC to support Hawaiian requested Options or Master Changes.

 

 

	
  REASON

  	
   

  	
  VENDOR

  	
   

  	
  DESCRIPTION

  	
   

  	
  P/NO

  	
   

  	
  QTY

  
	
  Note 2

  	
   

  	
  Jamco

  	
   

  	
  Removeable Sink Strainers

  	
   

  	
  Various

  	
   

  	
   

  
	
  MC 2528A044J61

  	
   

  	
  Magee

  	
   

  	
  2-Tier Mag. Rack

  	
   

  	
  124-11064-1A

  	
   

  	
  4

  
	
  MC 2528A044J61

  	
   

  	
  Magee

  	
   

  	
  Single Tier Mag. Rack

  	
   

  	
  124-11042-4C

  	
   

  	
  2

  
	
  MC 3133B716A01

  (Note 1)

  	
   

  	
  Thales

  	
   

  	
  ACARS Printer

  	
   

  	
  C12349CC03

  	
   

  	
  1

  
	
  2351-000033

  	
   

  	
  Electrovoice

  	
   

  	
  Hand Microphone

  	
   

  	
  903-1342

  	
   

  	
  2

  
	
  2351A213B79

  	
   

  	
  Telex

  	
   

  	
  Boom Microphone

  	
   

  	
  64300-200

  	
   

  	
  1

  
	
  2520A134P95

  	
   

  	
  Tapis

  	
   

  	
  Tapestry

  	
   

  	
  GPWB-900-223-EMB-HAW

  	
   

  	
  18 sheets

  
	
  2520A134P95

  	
   

  	
  Tapis

  	
   

  	
  Grospoint

  	
   

  	
  GPWB-900-99

  	
   

  	
  30 feet

  
	
  2520A134P95

  	
   

  	
  Tapis

  	
   

  	
  Tapestry

  	
   

  	
  GPWB-900-223-EMB-HAW-EX

  	
   

  	
  1 sheet

  
	
  2528A134P88

  	
   

  	
  Brice Mfg

  	
   

  	
  Literature Pocket

  	
   

  	
  7079-501AN

  	
   

  	
  20

  
	
  2564A134P97

  	
   

  	
  Kidde

  	
   

  	
  Halon Extinguisher

  	
   

  	
  466090

  	
   

  	
  3

  

 

Note 1:                      Allied Signal ACARS Printer included
in the Baseline AWW Specification is replaced by MC 3133B716A01.

Note 2:                      Galley Design feature requested by
Hawaiian Airlines.

 

The following are one-time only
charges that will be billed on the first aircraft only.

 

	
  REASON

  	
   

  	
  VENDOR

  	
   

  	
  DESCRIPTION

  
	
  Note 1

  	
   

  	
  Jamco

  	
   

  	
  Engineering for Removeable Sink
  Strainers

  
	
  Note 1

  	
   

  	
  Jamco

  	
   

  	
  Design of Misc. Stowage Boxes

  
	
  2528A044J61

  	
   

  	
  Jamco

  	
   

  	
  Incorporation of BFE Magazine
  Racks

  
	
  Note 1

  	
   

  	
  Jamco

  	
   

  	
  Wheelchair Restraint Incorporation

  
	
  2520A134P95

  	
   

  	
  Tapis

  	
   

  	
  Tapestry. 4 sheets required for
  flammability testing at Jamco

  

 

Note 1:                      Galley Design feature requested by Hawaiian Airlines.

 

B-3

 

DEVELOPMENT CHANGES

 

The following Master Changes have been
accepted in order to make specification corrections. These are at No Cost to
Hawaiian but form part of the aircraft specification.

 

	
  CHANGE
  NUMBER

  	
   

  	
  DESCRIPTION

  
	
  2524B665A56

  	
   

  	
  CLOSETS, PARTITIONS AND CLASS
  DIVIDERS – REVISION – DOOR 1, LH

  
	
  2550A973A35

  	
   

  	
  CARGO COMPARTMENTS – REVISION – NO
  PROVISIONS FOR LOADING LONG LIGHTWEIGHT ITEMS – FORWARD CARGO COMPARTMENT

  
	
  2560B745A08

  	
   

  	
  EMERGENCY EQUIPMENT – REPLACEMENT
  – PROTECTIVE BREATHING EQUIPMENT – FLIGHT DECK – B/E AEROSPACE – BFE

  
	
  3350B665A44

  	
   

  	
  EMERGENCY LIGHTING – REVISION –
  ESCAPE PATH LIGHTING – FLOOR MOUNTED - BFE

  

 

B-4Exhibit
10.5

 

AMENDMENT NO. 2 TO LEASE
AGREEMENT

 

This Amendment No. 2 to Lease Agreement (“Amendment”),
dated as of May 7, 2003, is entered into by and between AWMS I, a Delaware
statutory business trust, having a place of business at c/o Ansett Worldwide
Aviation Services, Inc., 445 Park Avenue, 20th Floor, New York,
New York 10022 (herein called “Lessor”), and Hawaiian Airlines, Inc., a
Hawaii corporation, having its principal place of business at 3375 Koapaka
Street, Suite G350, Honolulu, Hawaii 96819 (herein called “Lessee”).

 

RECITALS

 

A.            Lessor
and Lessee have heretofore entered into a Lease Agreement dated as of September 20,
2001, as supplemented by a Lease Supplement dated September 23, 2002,
which were both recorded with the Federal Aviation Administration as one
document on October 3, 2002, and assigned Conveyance Number F81267, as
amended by an Amendment No. 1 to Lease Agreement dated as of September 23,
2002, which was recorded by the FAA on December 18, 2002 and assigned
Conveyance Number II027157 (hereafter, jointly, the “Lease”), pursuant to which
Lessor has leased to Lessee one Boeing Model 767-33AER aircraft bearing
manufacturer’s serial number 33421 and US Registration Number N587HA, together
with two Pratt & Whitney Model PW4060 engines installed thereon
bearing manufacturer’s serial numbers P729108 and P729109, respectively.

 

B.            On March 21, 2003, Lessee
commenced a bankruptcy case, Bankruptcy Case No. 03-00817, in the United
States Bankruptcy Court for the District of Hawaii (the “Bankruptcy Court”)
seeking relief under Chapter 11 of Title 11 of the United States Code.

 

C.            In connection with the Lessee’s
Chapter 11 Bankruptcy Case, Lessor and Lessee wish to amend the terms of the
Lease and, in consideration thereof, Lessee wishes to assume all of the rights,
benefits and obligations of the Lease, as amended hereby, and to obtain the
necessary approval of the Bankruptcy Court approving the terms of this
Amendment and the assumption of the Lease, as amended hereby, by Lessee.

 

D.            Capitalized
terms used herein and not otherwise defined herein shall have the meaning
assigned to such terms in the Lease and reference to “Articles” herein shall be
construed to refer to Articles of the Lease.

 

TERMS
AND CONDITIONS

 

Therefore,
in consideration of the premises, and for good and valuable consideration,
receipt of which is hereby acknowledged, the parties hereto hereby agree as
follows:

 

 

1.             The definition of “Companion Lease”
in Article 1 of the Lease is amended and restated as follows:

 

“Companion Lease” means: (i) the Lease Agreement
dated as of June 8, 2001, between Lessor and Lessee, pursuant to which
Lessor has leased to Lessee one Boeing Model 767-33AER aircraft bearing
Manufacturer’s Serial Number 28139, (ii) the Lease Agreement dated as of June 8,
2001, between Lessor and Lessee, pursuant to which Lessor has leased to Lessee
one Boeing Model 767-33AER aircraft bearing Manufacturer’s Serial Number 28140,
(iii) the Lease Agreement dated as of June 8, 2001, between Lessor
and Lessee, pursuant to which Lessor has leased to Lessee one Boeing Model 767-33AER
aircraft bearing Manufacturer’s Serial Number 28141, (iv) the Lease
Agreement dated as of September 20, 2001, between Lessor and Lessee,
pursuant to which Lessor has leased to Lessee one Boeing Model 767-33AER
aircraft bearing Manufacturer’s Serial Number 33422, (v) the Lease
Agreement dated as of September 20, 2001, between Lessor and Lessee,
pursuant to which Lessor has leased to Lessee one Boeing Model 767-33AER
aircraft bearing Manufacturer’s Serial Number 33423, and (vi) the Lease
Agreement dated as of September 20, 2001, between Lessor and Lessee,
pursuant to which Lessor has leased to Lessee one Boeing Model 767-33AER
aircraft bearing Manufacturer’s Serial Number 33424.

 

2.             Article 3(a) of the Lease
is hereby amended by adding the following language at the end thereof:

 

“Notwithstanding anything herein to the contrary,
without further approval of the Bankruptcy Court, Lessor may elect to terminate
the Term of this Lease, and all of Lessee’s rights in respect of the Aircraft
hereunder, on any date (such date being hereafter referred to as the “Early
Termination Date”) occurring on or after March 21, 2007, subject to the
following conditions:

 

(i)                                     Lessor
shall give Lessee at least 180 days’ prior written notice of Lessor’s election
to terminate the Term pursuant to this paragraph, specifying the Early
Termination Date in such written notice (and, for the avoidance of doubt, such
written notice may be given to Lessee at any time prior to or after March 21,
2007); and

 

(ii)                                  Lessor
may terminate the Term of this Lease pursuant to this paragraph during the
period March 21, 2007, through September 20, 2007, only if, during
the period March 21, 2007, through September 20, 2007, Lessor has not
terminated the lease term of more than one of the Companion Leases pursuant to
the second paragraph of Article 3(a) of any of the Companion
Leases.  Lessor may terminate the Term of
this Lease pursuant to this paragraph during the period September 21,
2007, through March 20, 2008, only if, during the period September 21,
2007, through March 20, 2008, Lessor has not terminated the lease term of
more than two of

 

2

 

the Companion
Leases pursuant to the second paragraph of Article 3(a) of any of the
Companion Leases.  Lessor may terminate
the Term of this Lease pursuant to this paragraph during the period March 21,
2008, through September 20, 2009, only if, during the period March 21,
2008, through September 20, 2009, Lessor has not terminated the lease term
of more than one of the Companion Leases pursuant to the second paragraph of Article 3(a) of
any of the Companion Leases.  On or after
September 21, 2009, Lessor shall be entitled to terminate the Term of this
Lease without any restrictions under this clause (ii) or under clause (ii) of
the second paragraph of Article 3(a) of any of the Companion
Leases.  For the avoidance of doubt,
during the period set forth below, Lessor may terminate the Term of this Lease
and the lease term of Companion Leases in a maximum number set forth below:

 

	
  Period

  	
   

  	
  Number of Terms of Companion 

  Leases and this Lease That May Be 

  Terminated

  
	
  March 21, 2007 to September 20, 2007

  	
   

  	
  2

  
	
  September 21, 2007 to March 20, 2008

  	
   

  	
  3

  
	
  March 21, 2008 to September 20, 2009

  	
   

  	
  2

  
	
  On or after September 21, 2009

  	
   

  	
  No limitation.

  

 

“Following Lessee’s receipt of Lessor’s notice of its
election to terminate the Term of this Lease, Lessee shall, on the Early
Termination Date, return the Aircraft and Aircraft Documentation to Lessor in
compliance with the terms of Article 13 hereof as if the Aircraft were
being returned at the normal expiration of the 15-year Term, whereupon the Term
shall end and Lessee shall have no further obligation to pay Basic Rent for any
period after the date on which the Early Termination Date occurs and the
Aircraft is returned to Lessor in compliance with the terms of this Lease.  For the avoidance of doubt, if the Term of
this Lease is terminated as contemplated in this second paragraph of Article 3(a),
such termination shall not be deemed a termination as the result of an Event of
Default and, therefore, damages measured by reference to Stipulated Loss Values
shall not become payable hereunder.”

 

3

 

3.             With effect from the “Effective
Date” (as defined in paragraph 9 of this Amendment), and as contemplated by the
order of the Bankruptcy Court approving this Amendment, Lessor shall be
relieved of the automatic stay under Section 362 of the Bankruptcy Code
and be entitled to retain the Security Deposit, and any interest accrued
thereon, in full, as additional consideration for the agreements of Lessor
contained in this Amendment, including Lessor’s agreement to accept a reduction
in Basic Rent payments contemplated hereby. 
Consequently, from and after the Effective Date, Lessor shall no longer
be deemed to hold the Security Deposit, any interest accrued thereon, or any
other property of Lessee as security for the performance of Lessee’s
obligations under the Lease, Lessee shall not have any obligation to pay any
additional amounts to Lessor as a Security Deposit pursuant to the terms of the
Lease, and all references in the Lease to “Security Deposit” shall be deemed
deleted.

 

4.             Lessee represents and warrants to
Lessor on the date this Amendment is signed by Lessor and Lessee, and on the
Effective Date, that:

 

(i)            Lessee is a corporation duly
organized and existing in good standing under the laws of Hawaii, has full
power, authority and legal right to own its properties and to carry on its
business as presently conducted and to perform its obligations under the Lease,
as amended hereby, holds all licenses, certificates and permits from all
governmental authorities necessary for the conduct of its business, and is duly
qualified to do business as a corporation in good standing in each jurisdiction
in which the failure to be so qualified would have a materially adverse effect
on Lessee or on its ability to perform its obligations under the Lease, as
amended hereby.

 

(ii)           This Amendment has been duly
authorized by all necessary action on the part of Lessee, and neither the
execution and delivery hereof nor the consummation of the transactions
contemplated hereby nor compliance by Lessee with any of the terms and
provisions hereof does or will violate any provision of the articles of
incorporation or by-laws of Lessee or any law, rule, regulation, judgment,
order or decree of any government or governmental instrumentality or court
having jurisdiction over Lessee, or any of its activities or properties, or
does or will result in any breach of, or constitute any default under, or
result in the creation of any Lien upon any property of Lessee under, any
indenture, mortgage, deed of trust, conditional sale contract, loan or credit
agreement, or other agreement or instrument to which Lessee is a party or by
which Lessee or its properties may be bound or affected.

 

(iii)          Neither the execution and delivery by
Lessee of this Amendment nor the performance by Lessee of any of the
transactions contemplated hereby require the consent, approval, order or
authorization of, or registration with, or the giving of notice to, the
Aeronautics Authority or any other domestic or foreign governmental authority,
except for the approvals, authorizations and consents that have heretofore been
obtained, including the order of the Bankruptcy Court approving the terms
hereof and the transactions contemplated hereby, true and complete copies of
which have been delivered to Lessor.

 

(iv)          This Amendment has been duly executed
and delivered by Lessee and, subject to obtaining the order of the Bankruptcy
Court contemplated herein, constitutes the legal, valid, binding and
enforceable obligation of Lessee.

 

4

 

(v)           Lessee is a Certificated Air Carrier
within the meaning of Section 41102 of Title 49 of the United States Code
Annotated, and Lessor is entitled to the benefits and protections of Section 1110
of the Bankruptcy Code (11 U.S.C. Section 1110) in respect of the Aircraft
leased to Lessee under the Lease, as amended hereby.

 

5.             The phrase “Article 10(d), or Article 12”
in Article 14(c) of the Lease is replaced with the phrase “ Article 10(d),
Article 12, or Schedule ‘3’”.

 

6.             Lessee shall cause this Amendment,
so far as required or permitted by applicable law or regulation, to be kept,
filed, registered and recorded at all times in accordance with Article 12
of the Lease.

 

7.             Paragraph 3 of Schedule “1” to
the Lease is amended and restated in its entirety as provided in Schedule “1”
hereto.

 

8.             The Lease is hereby amended by
adding a new Schedule “3” as provided in Schedule “2” hereto which
shall be incorporated into the Lease as Schedule “3”.  Lessee agrees to comply with the terms and
conditions of the new Schedule “3.”

 

9.             This Amendment shall become
effective, and Lessee will be deemed to have assumed the rights and obligations
of the Lease, as amended hereby, on the date (the “Effective Date”) that Lessee
complies with the following conditions to the reasonable satisfaction of
Lessor:

 

(i) Lessee
shall have provided Lessor with a copy of a resolution of the Board of
Directors of Lessee, certified by the Secretary or an Assistant Secretary of
Lessee, duly authorizing and ratifying the execution, delivery and performance
by Lessee of the obligations of Lessee contemplated by this Amendment, together
with an incumbency certificate as to the person or persons authorized to
execute and deliver this Amendment and related documents on behalf of Lessee;

 

(ii) Lessor
shall have received satisfactory evidence that the Bankruptcy Court has entered
a final, non-appealable order, in form and substance satisfactory to Lessor,
approving this Amendment and the transactions contemplated hereby;

 

(iii) Lessor
shall have received satisfactory legal opinions from FAA counsel, and New York
and Hawaii counsel as to the matters referred to in Paragraph 4(i) through
(v) and Paragraph 6, above, and as to such other matters as Lessor may
reasonably request;

 

(iv) Lessee
shall have reimbursed (and from time to time after the Effective Date will
reimburse) Lessor for all its reasonable costs and expenses, including legal
fees, incurred in connection with Lessee’s bankruptcy case, this Amendment and
the amendment of each Companion Lease, up to a maximum sum of $200,000; and

 

(v) All
conditions precedent to the effectiveness of each “Amendment to Lease
Agreement,” dated as of the date hereof, between Lessor and Lessee, amending each
of the Companion Leases on substantially the same terms and conditions as set
forth herein, shall have been fulfilled and the same shall be in full force and
effect.

 

5

 

If Lessee fails to comply with the conditions set
forth in the foregoing clauses (i) through (v) on or before May 19,
2003, this Amendment shall become null and void.

 

10.           Lessee acknowledges that Lessee’s
failure to perform the terms of the Lease as they existed prior to this
Amendment has resulted in aggregate damages to Lessor in the sum of
$14,815,835.  Lessee agrees that Lessor
shall apply the $585,000 Security Deposit paid to Lessor at the time of
entering into the Lease to reduce the amount of such damages to $14,230,835,
and that Lessor shall be allowed an unsecured claim for damages against Lessee’s
bankruptcy estate in the sum of $14,230,835. 
Lessee acknowledges that Lessor’s claim for such damages is an accurate
and liquidated claim for damages incurred by Lessor as the result of Lessee’s
failure to perform the terms of the Lease without giving effect to this
Amendment, and that the foregoing agreements constitute an integral part of the
consideration between the parties to enter into this Amendment.

 

11.           In all other respects, the Lease, as
amended hereby, is hereby ratified and confirmed and remains in full force and
effect, and is hereby assumed for all purposes by Lessee.

 

12.           On and after the Effective Date of
this Amendment, each reference in the Lease to “this Lease”, “hereunder”, “hereof”,
or words of like import referring to the Lease shall mean and be a reference to
the Lease as amended by this Amendment. 
The Lease, except to the extent amended by this Amendment, remains in
full force and effect and is hereby in all respects ratified and confirmed.

 

13.           This Amendment may be executed in any
number of counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same
agreement.  Delivery of an executed
counterpart of this Amendment by facsimile shall be equally as effective as
delivery of an originally executed counterpart. 
Any party hereto delivering an executed counterpart of this Amendment by
facsimile shall also deliver an originally executed counterpart but the failure
to so deliver a manually executed counterpart shall not affect the validity,
enforceability or binding effect hereof.

 

14.           This Amendment shall in all respects
be governed by, and construed in accordance with, the internal laws of the
State of California, United States of America (without regard to any conflict
of laws rule that might result in the application of the laws of any other
jurisdiction), including all matters of construction, validity and performance.

 

15.           Lessor and Lessee acknowledge and
agree that upon Lessee’s assumption of the Lease (as amended hereby), as
contemplated herein, the obligations of Lessee under the Lease, as amended
hereby, constitute obligations of Lessee that have priority as an
administrative expense in Lessee’s Chapter 11 Bankruptcy Case.  Lessor agrees, however, that, during the
pendency of Lessee’s bankruptcy case, in the event Lessee ceases operations and
liquidates its assets pursuant to a liquidating plan of reorganization in its
Chapter 11 Bankruptcy Case or through the conversion of its Chapter 11
Bankruptcy Case to a Chapter 7 Bankruptcy Case (and,

 

6

 

for the
avoidance of doubt, the transfer of Lessee’s assets to a successor company in
connection with a plan of reorganization shall not be deemed a ceasing of
business by Lessee or a liquidation of Lessee’s assets), Lessor agrees that,
provided Lessee returns the Aircraft to Lessor in accordance with the
requirements of the Lease, Lessor’s administrative claim for damages under the
Lease measured by Lessee’s non-payment of Basic Rent shall be limited to
$1,500,000, and the balance of Lessor’s claim for damages under the Lease will
be classified as a general unsecured claim. 
Except as provided in the preceding sentence, if an Event of Default
occurs (other than an Event of Default based on the existence of Lessee’s
Chapter 11 case) or Lessee attempts to reject this Lease, whether in a plan of
reorganization or otherwise, Lessee and its assets shall be fully liable for
all damages incurred by Lessor as the result of such Event of Default and
Lessor shall be entitled to exercise all its rights and remedies as provided in
the Lease to the same extent as if this Paragraph 15 did not exist.

 

[signature page follows]

 

7

 

IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed by their respective authorized officers or representatives as of the
date first written above.

 

 

	
   

  	
  AWMS I

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kimberly Karavasilis

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  HAWAIIAN AIRLINES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark B. Dunkerley

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Christine Deister

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

8

 

Schedule I

 

Intentionally omitted as containing confidential information,
which has been filed separately with the Securities and Exchange Commission.

 

S-1

 

Schedule 2

 

Intentionally omitted as containing confidential
information, which has been filed separately with the Securities and Exchange
Commission.

 

S-1

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