Document:

Exhibit 10.36

 

AMENDMENT

NO. 2 TO CREDIT AGREEMENT *

 

                This AMENDMENT NO. 2 TO CREDIT AGREEMENT (the

“Amendment”) is dated as of November 13, 2002 among Willis Lease Finance

Corporation, a Delaware corporation (“Borrower”), the banking institutions

signatories hereto (the “Banks”), National City Bank, as administrative agent

for the Banks (the “Administrative Agent”), Fortis Bank [Nederland] N.V., as

security agent (the “Security Agent”), and Fortis Bank [Nederland] N.V., as

structuring agent (the “Structuring Agent”).

 

W I T N E S S E T H

 

                WHEREAS, the Borrower, the Banks, the

Administrative Agent, the Security Agent, and the Structuring Agent are parties

to that certain Credit Agreement dated as of May 1, 2001, as amended by

Amendment No. 1 to Credit Agreement dated as of July 5, 2001 (the “Credit

Agreement”);

 

                WHEREAS,

the Borrower  has requested that Banks

and Agents amend the definition of “EBIT” so as to add back to Net Income the

amount deducted for the non-cash write-off of $781,000 in previously paid legal

and bank fees related to the former WLFC Funding Corporation loan from Wachovia

Bank, N.A. (the “Write-Off”) and make certain other changes to the Credit

Agreement and the other Loan Documents, and the Banks and the Agents are

willing to do so;

 

                NOW, THEREFORE, in consideration of the

foregoing and for other good and valuable consideration, the receipt of which

is hereby acknowledged, the parties hereto agree as follows:

 

                SECTION 1. 

Definitions.  Capitalized terms not defined herein shall

have the meanings assigned to those terms in the Credit Agreement.

 

                SECTION 2.  Amendment to Definitions of “EBIT” and

“Interest Coverage Ratio.”

 

(a)           The definition of “EBIT” contained in

Section 1.1 of the Credit Agreement is hereby amended and restated in its

entirety to read as follows:

 

                ““EBIT” shall mean the sum of (i) Net Income

less any extraordinary gain or loss included in the calculation thereof, plus

(ii) amounts deducted for interest expense and income taxes, plus (iii) to the

extent not included in clause (ii), amounts deducted for the non-cash write-off

of $781,000 in previously paid legal and bank fees related to the former WLFC

Funding Corporation loan from Wachovia Bank, N.A.”

 

                *              Portions

of the material in this Exhibit have been redacted pursuant to a request for

confidential treatment, and the redacted material has been filed separately

with the Securities and Exchange Commission (the “Commission”).  An asterisk has been placed in the precise

places in this Agreement where we have redacted information, and the asterisk

is keyed to a legend which states that the material has been omitted pursuant

to a request for confidential treatment.

 

1

 

                                (b)           The

definition of “Interest Coverage Ratio” contained in Section 1.1 of the Credit

Agreement is hereby amended and restated in its entirety to read as follows:

 

                ““Interest Coverage Ratio” shall mean the

ratio of EBIT of the Willis Companies plus rent expenses of the Willis

Companies to interest expense (excluding, to the extent otherwise included

therein, amounts deducted for the non-cash write-off of $781,000 in previously

paid legal and bank fees related to the former WLFC Funding Corporation loan

from Wachovia Bank, N.A.) of the Willis Companies plus rent expenses of the

Willis Companies.”

 

                SECTION

3.         Other Amendments.  In addition to the

amendments contained in Section 2 above, the Credit Agreement and the other

Loan Documents are hereby amended in the following respects:

 

                                (a)           All

references in the Credit Agreement and the other Loan Documents to the “Funding

Corp. Guaranty” are hereby deleted and replaced by “Willis Engine Funding

Guaranty”; all references in the Credit Agreement and the other Loan Documents

to “WLFC Funding Corporation” are hereby deleted and replaced by “Willis Engine

Funding LLC, a Delaware limited liability company”; and all references in the

Credit Agreement and the other Loan Documents to the “WLFC Funding Facility”

are hereby deleted and replaced by “Willis Engine Funding Facility.”

 

                                (b)           The

definition of “Consent and Intercreditor Agreement” contained in Section 1.1 of

the Credit Agreement is hereby deleted. 

All references in the Credit Agreement and the other Loan Documents to

the “Consent and Intercreditor Agreement” are hereby deleted.

 

                                (c)           The

definition of “Debt” contained in Section 1.1 of the Credit Agreement is hereby

amended by adding the following language to the end of clause (v) thereof:

 

                “, except for guaranties of the obligations of Owner

Trustees as lessor under Leases entered into in the ordinary course of

business, where the Owner Trustee is acting as trustee under a Trust Agreement

having the Borrower as the sole beneficiary”

 

                                (d)           The

definition of “WLFC Funding Facility” contained in Section 1.1 of the Credit

Agreement is hereby deleted.  A new

definition of “Willis Engine Funding Facility” is hereby added to Section 1.1

of the Credit Agreement in alphabetical order to read as follows:

 

                ““Willis Engine Funding Facility” shall mean

the transactions contemplated by (i) that certain Indenture dated as of

September 12, 2002 (the “Indenture”) between Willis Engine Funding LLC, a

Delaware limited liability company (“WEF”) and The Bank of New York, as

indenture trustee (the “Indenture Trustee”), as supplemented by that certain

Series 2002-1 Supplement dated as of September 12, 2002 (the “Supplement”)

between WEF and the Indenture Trustee, (ii) that certain Class A Note Purchase

Agreement dated as of September 12, 2002 (the “Class A Note Purchase Agreement”)

by and among Borrower, WEF, Sheffield Receivables Corporation (“Sheffield”)

(“Class A Purchaser,” together with Class B Purchasers (as defined below), each

individually a “Purchaser” and collectively, the “Purchasers”), and Barclays

Bank PLC (“Barclays”), as agent on behalf of the Class A Purchasers, (iii) that

certain Class B Note

 

2

 

Purchase Agreement dated

as of September 12, 2002 (the “Class B Note Purchase Agreement”; together with

the Class A Note Purchase Agreement, the “Note Purchase Agreement”) by and

among Borrower, WEF, Fortis (a “Class B Purchaser”), and Barclays, as a Class B

Purchaser and as agent on behalf of the Class B Purchasers, (iv) that certain

Contribution and Sale Agreement dated as of September 12, 2002 (the

“Contribution Agreement”) by and between Borrower and WEF, (v) that certain

Administration Agreement dated as of September 12, 2002 (the “Administration

Agreement”) by and among WEF, as issuer, Borrower, as servicer, Barclays, as administrative

agent, and the Indenture Trustee, (vi) that certain Guaranty dated as of

September 12, 2002 (the “Willis Engine Funding Guaranty”) by Borrower in favor

of Barclays, as deal agent and as a Class B Purchaser, and Fortis as a Class B

Purchaser, (vii) that certain Reimbursement Agreement dated as of September 12,

2002 (the “Reimbursement Agreement”) by and between Borrower and WEF, (viii)

that certain letter regarding indemnification obligations dated September 12,

2002 (the “Indemnification Letter”) by Borrower in favor of Indenture Trustee,

(ix) that certain Custodial Agreement dated as of September 12, 2002 (the

“Custodial Agreement”) by and among Borrower, BNY Midwest Trust Company, as

custodian, WEF, Indenture Trustee, and Barclays, as deal agent on behalf of the

Purchasers, (x) that certain Servicing Agreement dated as of September 12, 2002

(the “Servicing Agreement”) by and between Borrower and WEF, (xi) that certain

Agreement and Limited Waiver dated as of September 12, 2002 (the “Agreement and

Limited Waiver”) by and among WEF, Barclays, as deal agent and a Class B

Purchaser, Sheffield, as a Class A Purchaser, and Fortis, as a Class B Note

Purchaser;  (xii) that certain First

Transfer Master Assignment and Assumption Agreement and Bill of Sale dated as

of September 16, 2002 (the “First Transfer Master Agreement”) by and between

Borrower and Wells Fargo Bank Northwest, National Association, not in its

individual capacity, but solely in its capacity as owner trustee under the

trust agreements listed in Exhibit A thereto, (xiii) that certain Engine or

Beneficial Interest Transfer Certificate dated as of September 16, 2002 (the

“Engine Transfer Certificate”) by and between Borrower and WEF, and (xiv)

certain other documents and agreements ancillary thereto; in each of cases (i),

(ii), (iii), (iv), (v), (vi), (vii), (viii), (ix), (x), (xi), (xii), (xiii),

and (xiv) as amended, waived, restated and supplemented from time to time.”

 

                                (e)           The

first sentence of Section 6.3 of the Credit Agreement is hereby amended and

restated in its entirety to read as follows:

 

                “Guarantee or otherwise in any way become or be

responsible for indebtedness or obligations (including working capital

maintenance, take-or-pay contracts) of any unconsolidated Person, contingently

or otherwise, except for guaranties of the obligations of Owner Trustees as

lessor under Leases entered into in the ordinary course of business, where the

Owner Trustee is acting as trustee under a Trust Agreement having the Borrower

as the sole beneficiary.”

 

                SECTION 4.  Amended Disclosure Schedule (Schedule 1) and

Schedule 2.  The Disclosure Schedule (Schedule 1) to

the Credit Agreement is hereby deleted in its entirety and replaced with the

Disclosure Schedule (Schedule 1) attached to this Amendment.  Schedule 2 to the Credit Agreement is hereby

deleted in its entirety and replaced with Schedule 2 attached to this

Amendment.

 

                SECTION 5.  Amendment Fee.  The

Borrower agrees, on the date of this Amendment, to pay to the Administrative

Agent for the account of each Bank signatory to this Amendment an

 

3

 

amendment fee equal to

   basis points of such Bank’s Revolving Loan Commitment on the date

of this Amendment.  The Administrative

Agent shall promptly distribute to such Banks their respective portions of the

amendment fee.  Any Bank that is not a

signatory to this Amendment on the date of this Amendment will not be entitled

to an amendment fee.*

 

                SECTION

6.  Full Force and Effect; Entire

Agreement.  Except to the extent expressly provided

in this Amendment, the terms and conditions of the Credit Agreement and each of

the other Loan Documents shall remain unchanged and in full force and

effect.  This Amendment constitutes the

final agreement of the parties hereto with respect to the matters set forth

herein and supersedes any prior agreement or understanding, written or oral,

with respect to the matters contained herein.

 

                SECTION 7.  Effective Date of Amendment.  This Amendment shall be deemed effective retroactively

to September 16, 2002.  From and after

such date, any and all references to the “Credit Agreement” and the other Loan

Documents shall be deemed to refer to the Credit Agreement and the other Loan

Documents as amended hereby.

 

                SECTION

8.  Governing Law; Severability;

Construction of Amendment.  This Amendment and all rights and

obligations of the parties hereunder shall be governed by and be construed and

enforced in accordance with the laws of the State of California without regard

to California or federal principles of conflict of laws.  To the extent permitted by applicable law,

the parties hereby waive any provision of law which renders any provision

hereof prohibited or unenforceable in any respect.  Otherwise, 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 any of the remaining provisions hereof, and any such prohibition

or unenforceability in any one or more jurisdictions shall not invalidate or

render unenforceable such provisions in other jurisdictions.  The parties’ failure at any time to require

strict performance of any of the provisions of this Amendment shall not waive or

diminish any right thereafter to demand strict compliance therewith or with any

other provision of this Amendment.

 

                SECTION

9.  Counterparts.  This Amendment may be signed in any number of

counterparts, and by different parties in separate counterparts, with the same

effect as if the signatures to each such counterpart were upon a single

instrument.  All counterparts shall be

deemed an original of this Amendment.

 

                SECTION 10.  Headings. 

All

section headings contained herein are for convenience of reference only and are

not intended to define or limit the scope of any provision of this Amendment.

 

                SECTION 11.  Representations and Warranties.  Borrower hereby represents and warrants to each of the

other parties hereto that (i) this Amendment has been duly authorized, executed

and delivered by it and (ii) this Amendment constitutes its legal, valid and

binding obligation, enforceable against it in accordance with its terms.

 

                *              This

redacted material has been omitted pursuant to a request for confidential

treatment, and the material has been filed separately with the Commission.

 

4

 

                SECTION 12. 

Facsimile Signatures. The parties agree that this Amendment

will be considered executed and delivered when the signature of a party is

delivered to the Administrative Agent by facsimile transmission.  Such facsimile signature shall be treated in

all respects as having the same effect as an original signature.

 

IN WITNESS

WHEREOF, the

parties have caused this Amendment to be duly executed and delivered by their

proper and duly authorized officers as of the date and year first written

above.

 

	

   

  	

  WILLIS LEASE FINANCE

  CORPORATION

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ MONICA J. BURKE

  	

   

  
	

   

  	

  Name:

  	

  Monica J. Burke

  
	

   

  	

  Title:

  	

  Executive Vice

  President and Chief Financial Officer

  
	

   

  	

   

  
	

   

  	

  NATIONAL CITY BANK

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ CHRISTOS KYTZIDIS

  	

   

  
	

   

  	

  Name:

  	

  Christos Kytzidis

  
	

   

  	

  Title:

  	

  Vice President

  
	

   

  	

   

  
	

   

  	

  NATIONAL CITY BANK, as

  Administrative Agent

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ CHRISTOS KYTZIDIS

  	

   

  
	

   

  	

  Name:

  	

  Christos Kytzidis

  
	

   

  	

  Title:

  	

  Vice President

  
	

   

  	

   

  
	

   

  	

  FORTIS BANK [NEDERLAND]

  N.V.

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ M.P.A. ZONDAG; B.M.

  KOOL

  	

   

  
	

   

  	

  Name:

  	

  M.P.A. Zondag; B.M.

  Kool

  
	

   

  	

  Title:

  	

   

  
	

   

  	

   

  
	

   

  	

  FORTIS BANK [NEDERLAND]

  N.V., as Security Agent

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ M.P.A. ZONDAG; B.M.

  KOOL

  	

   

  
	

   

  	

  Name:

  	

  M.P.A. Zondag; B.M.

  Kool

  
	

   

  	

  Title:

  	

   

  
	

   

  	

   

  
	

   

  	

  FORTIS BANK [NEDERLAND]

  N.V., as Structuring Agent

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ M.P.A. ZONDAG; B.M.

  KOOL

  	

   

  
	

   

  	

  Name:

  	

  M.P.A. Zondag; B.M.

  Kool

  
	

   

  	

  Title:

  	

   

  

 

5

 

	

   

  	

  WACHOVIA BANK, NATIONAL

  ASSOCIATION,

  f/k/a First Union

  National Bank  

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  	

   

  
	

   

  	

  Name:

  	

   

  
	

   

  	

  Title:

  	

   

  
	

   

  	

   

  
	

   

  	

  CITY NATIONAL BANK

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ NANCI BRUSATI DIAS

  	

   

  
	

   

  	

  Name:

  	

  Nanci Brusati Dias

  
	

   

  	

  Title:

  	

  Vice President

  
	

   

  	

   

  
	

   

  	

  CITIBANK, N.A., as

  successor to European American Bank

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  	

   

  
	

   

  	

  Name:

  	

   

  
	

   

  	

  Title:

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  CALIFORNIA BANK &

  TRUST

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ J. MICHAEL SULLIVAN

  	

   

  
	

   

  	

  Name:

  	

  J. Michael Sullivan

  
	

   

  	

  Title:

  	

  Vice President

  
	

   

  	

   

  
	

   

  	

  BANCO POPULAR NORTH

  AMERICA

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  	

   

  
	

   

  	

  Name:

  	

   

  
	

   

  	

  Title:

  	

   

  
	

   

  	

   

  
	

   

  	

  CAPITAL BANK PLC

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  	

   

  
	

   

  	

  Name:

  	

   

  
	

   

  	

  Title:

  	

   

  

 

6Exhibit

No. 10. 1

Confidential Materials

omitted and filed separately with the

Securities and Exchange

Commission.  Asterisks denote omissions.

 

 

	

   

  	

  Worldwide

  Strategic & Operations Management

  
	

   

  	

  Pfizer

  Inc.

  
	

   

  	

  50

  Pequot Avenue  MS 6025/C5133

  
	

   

  	

  New

  London, CT 06320

  
	

   

  	

  Tel

  860 732 3735  Fax 860 732 7028

  
	

   

  	

  Email

  alan_r_proctor@groton.pfizer.com

  
	

   

  	

   

  
	

   

  	

  Global Research & Development

  
	

  Pfizer

  	

   

  
	

   

  	

  Alan R. Proctor, Ph.D.

  
	

   

  	

  Vice President, PGRD

  
	

   

  	

  Head of Strategic Alliances

  

 

May 13, 2002

 

Dr. Krishnan Nandabalan

Vice President, Alliances

Genaissance Pharmaceuticals, Inc.

5 Science Park

New Haven, CT 06511

 

Dear Dr. Nandabalan:

 

Further to our recent discussions regarding the

Agreement between Pfizer Inc. and Genaissance Pharmaceuticals, Inc. dated

August 31, 2001 (“2001 Agreement”); Pfizer Inc. (“Pfizer”) and Genaissance

Pharmaceuticals, Inc. (“Genaissance”) will amend the 2001 Agreement as follows:

 

Section 1.3   “Research Plan” shall mean the written plan

describing the research to be carried out by Genaissance.  The Research Plan is appended to and made a

part of this Agreement as Exhibit A.

 

Section 3   Term: 

The term of this Agreement is one (1) year and six months from August

31, 2001.

 

All other terms and

conditions of the 2001 Agreement shall remain unchanged and in full force.

 

Please have the

appropriate official of Genaissance Pharmaceuticals, Inc. sign both copies of

this Agreement and return one original to Kelly P. Longo at the above address.

 

Sincerely,

/s/Alan R. Proctor

Alan R. Proctor

Vice President

Strategic Alliances

 

 

 

Agreed:

Genaissance

Pharmaceuticals, Inc.

By: /s/ Krishnan

Nandabalan
       Krishnan Nandabalan
       Vice President, Alliances

Date: 5/16/02

 

 

PROPOSAL

Pfizer/Genaissance:  A Proposal for Comprehensive SNP

Identification in Candidate

Genes

[**]

 

 

Research

Goal:  To define comprehensive genetic variation and

haplotype information in key candidate genes of research interest to Pfizer

Global Research and Development (Pfizer, please define this acronym).

 

 

Research

Proposal

 

•                  Pfizer will provide Genaissance with an initial list of approximately

[**] candidate genes (see Appendix 1 for details) for which Genaissance will

obtain a comprehensive assessment of genetic variation.

                        Genaissance will provide genomic sequence

for the candidate genes listed in Appendix 1. 

This sequence will be generated using Genaissance’s Standard Operating

Procedure for discovering HAPTM

Markers for a gene.  This procedure

consists of sequencing, from the Index Repository, ninety-three (93) individual

samples of human genomic DNA and one sample of chimpanzee genomic DNA.  The genomic regions of each gene, which are

targeted for sequencing, are as follows.

 

(i)            “Exons” shall mean the genomic DNA

segments of a gene whose sequence information is translated into the protein

product of that gene.  The goal is to

obtain sequence information for all Exons of a gene.

 

(ii)           “Exon/Intron Junction” shall mean the

junctions between the Exons and the Introns in genomic DNA.  Beginning with the initiation codon at one

end of a gene and ending with the termination codon at the other end of a gene,

the goal is to obtain sequence information for each Exon/Intron Junction within

this genomic region.

 

(iii)          “Introns” shall mean the genomic DNA

segments of a gene, which are located between Exons.  Beginning with the initiation codon at one end of a gene and

ending with the termination codon at the other end of a gene, the goal is to

obtain a minimum of ten (10) to twenty (20) bases and a maximum of one hundred

(100) bases of sequence information from the Exon/Intron Junction into the

Intron for every Intron within this genomic region.

 

(iv)          “Promoter” shall mean the region that

is immediately upstream of the genomic segment that is found at the five-prime

end of a Messenger RNA molecule. 

(“Messenger RNA” shall mean a ribonucleic acid sequence from which the

protein product of a gene is translated). 

The goal is to obtain sequence information for up to one thousand (1000)

bases of the Promoter with the desire to obtain an additional 1KB where

possible.

 

 

(v)           “Three-Prime Untranslated Region”

shall mean the genomic region immediately downstream from the termination codon

of a gene.  The goal is to obtain

sequence information for at least one hundred (100) bases of the Three-Prime

Untranslated Region downstream of the termination codon.  Optimally, we will have coverage to 500bases

of the 3’ UTR.

 

                Specific genomic sequence information is required to

meet the goals outlined in (i) through (v) above.  If genomic sequence information is available for a majority of

these regions, even if the available genomic sequence information is not

sufficient to meet all of the goals in (i) through (v) above, a gene will still

be queued for HAPTM Marker

discovery.

 

•                  A gene shall be considered completely sequenced if sequence information

is obtained for: (i) at least [**] of the [**]; (ii) the [**] containing the

[**]; and (iii) [**].  A specific region

targeted for sequencing within a gene shall be considered completely sequenced

if sequence information is obtained for at [**].  However, the presence of runs of guanine and cytosine, secondary

structure or errors in publicly available sequence information may prevent the

generation of sufficient sequence information for that gene to be considered

completely sequenced as defined above.

•                  The candidate genes will be interrogated using Genaissance’s SNP

Scoring and HAPTM Building

Standard Operating Procedures for identification of SNPs and inference of

haplotypes.

•                  The results of performing the above Standard Operating Procedures for

each gene will be reported [**] and will [**] in which [**]Genaissance shall

complete the forgoing Research Proposal for the initial list of [**] genes

within approximately [**] of receipt [**].

Cost structure

Payment is based [**], as set forth below.  A minimum of [**] genes will be analyzed within one calendar year

from the commencement of the collaboration.

 

Costs:

[**]

 

 

Appendix 1 to Exhibit A

Pfizer Gene List for

comprehensive variant detection

 

 

	

  Pfizer Gene ID

  	

   

  	

  HUGO Symbol

  	

   

  	

  Gene Name

  	

   

  	

  Genbank/Ref Seq Accession  No

  	

   

  
	

  [**]

  	

   

  	

  [**]

  	

   

  	

  [**]

  	

   

  	

  [**]

  	

   

  
	

  [**]

  	

   

  	

  [**]

  	

   

  	

  [**]

  	

   

  	

  [**]

  	

   

  
	

  [**]

  	

   

  	

  [**]

  	

   

  	

  [**]

  	

   

  	

  [**]

  	

   

  
	

  [**]

  	

   

  	

  [**]

  	

   

  	

  [**]

  	

   

  	

  [**]

  	

   

  
	

  [**]

  	

   

  	

  [**]

  	

   

  	

  [**]

  	

   

  	

  [**]

  	

   

  
	

  [**]

  	

   

  	

  [**]

  	

   

  	

  [**]

  	

   

  	

  [**]

  	

   

  
	

  [**]

  	

   

  	

  [**]

  	

   

  	

  [**]

  	

   

  	

  [**]

  	

   

  
	

  [**]

  	

   

  	

  [**]

  	

   

  	

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