Document:

Exhibit 10.2

 

FIRST AMENDMENT TO TERM LOAN CREDIT AGREEMENT

 

FIRST AMENDMENT (this “Amendment”), dated as of April 03, 2014, between Delos Finance S.à r.l., a private limited liability company (société à responsabilité limitée) incorporated under the laws of Luxembourg (the “Borrower”), International Lease Finance Corporation, a California corporation (“ILFC”), Hyperion Aircraft Limited, a private limited liability company incorporated under the laws of Ireland (“Grandparent Holdco”), Delos Aircraft Limited, a private limited liability company incorporated under the laws of Ireland (“Parent Holdco”), Apollo Aircraft Inc., a California corporation (“CA Subsidiary Holdco”), Artemis (Delos) Limited, a private limited liability company incorporated under the laws of Ireland (“Irish Subsidiary Holdco”), AerCap Global Aviation Trust, a Delaware statutory trust (“Financing Trust”), AerCap U.S. Global Aviation LLC, a Delaware limited liability company (“USHoldco”), AerCap Holdings N.V., a public company with limited liability incorporated under the laws of The Netherlands (“AerCap”), AerCap Aviation Solutions B.V., a private company with limited liability incorporated organized under the laws of The Netherlands (“AAS”), AerCap Ireland Limited, a private limited liability company incorporated under the laws of Ireland (“AIL”) and AerCap Ireland Capital Limited, a private limited liability company incorporated under the laws of Ireland (“AICL” and together with USHoldco, AerCap, AAS and AIL, the “Acceding Obligors”) and Deutsche Bank AG New York Branch, as Collateral Agent and Administrative Agent, to the Term Loan Credit Agreement, dated as of March 6, 2014 (as heretofore amended, restated or otherwise modified from time to time, the “Credit Agreement”), between the Borrower, ILFC, Grandparent Holdco, Parent Holdco, CA Subsidiary Holdco, Irish Subsidiary Holdco, the Lenders party thereto and Deutsche Bank AG New York Branch, as Collateral and Administrative Agent.

 

WHEREAS, ILFC, Financing Trust and certain other affiliates of Financing Trust or ILFC will enter into the Completion Date Transfer Agreement to be dated on or prior to the Amendment Effective Date (as amended, modified and supplemented from time to time, the “Completion Date Transfer Agreement”) and ILFC, USHoldco and certain other affiliates of Financing Trust or ILFC will enter into the Reallocation Agreement to be dated on or prior to the Amendment Effective Date (as amended, modified and supplemented from time to time, the “Reallocation Agreement” and, together with the Completion Date Transfer Agreement, the “Transfer Agreements”), pursuant to which ILFC will transfer, including pursuant to certain declarations of trust, its assets and properties substantially as an entirety to Financing Trust with the effect that, upon the Transfer Agreements becoming effective, and subject to satisfaction of the conditions precedent set forth in Section 5.17 of the Credit Agreement, Financing Trust will succeed to and (other than as described herein) be substituted for ILFC under the Loan Documents with the same effect as if Financing Trust had been named as ILFC in the Loan Documents;

 

WHEREAS, notwithstanding the foregoing and the provisions of Section 5.17(b) of the Credit Agreement, ILFC wishes to continue to guarantee the Obligations and each of the Acceding Obligors wishes to provide its guarantee of the Obligations as well; and

 

WHEREAS, the parties hereto wish to amend the Credit Agreement to provide, among other things, for the foregoing, in each case on and subject to the terms and conditions set forth herein;

 

 

NOW, THEREFORE, in consideration of the foregoing 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.  Except as otherwise defined herein, terms defined in the Credit Agreement are used herein as defined therein.

 

Section 2.              Amendments.  Subject to the satisfaction of the conditions precedent specified in Section 4 below, but effective as of the Amendment Effective Date (as defined below), each of the Credit Agreement and each other Loan Document is hereby amended as follows:

 

2.01        The following definition shall be added to Section 1.01 of the Credit Agreement:

 

“Financing Trust” means AerCap Global Aviation Trust.

 

2.02        Financing Trust hereby assumes (i) ILFC’s guaranty in Article 7 of the Credit Agreement of the due and punctual payment of the principal of (and premium, if any) and interest on all the Loans and (ii) the performance of every covenant of the Credit Agreement and the other Loan Documents on the part of ILFC to be performed or observed.  All references in the Loan Documents (other than in the definition of “ILFC” in Section 1.01 of the Credit Agreement, in the definition of “Acceding Guarantor” in Section 1.01 of the Credit Agreement and in Articles 3 and 4 of the Credit Agreement, and as provided in Sections 2.03 and 2.05 of this Amendment) to “International Lease Finance Corporation,” “International Lease Finance Corporation, a California corporation” and “ILFC” existing immediately prior to the Amendment Effective Date shall be deemed to refer to “AerCap Global Aviation Trust,” “AerCap Global Aviation Trust, a Delaware statutory trust” and “Financing Trust” respectively.

 

2.03        Notwithstanding Section 5.17(b) of the Credit Agreement, Section 2.02 of this Amendment and the entry into effect of the Transfer Agreements, ILFC hereby agrees to continue its guaranty of the Obligations as an “Obligor” as set forth in Article 7 of the Credit Agreement.

 

2.04        Each Acceding Obligor hereby agrees to guarantee the Guaranteed Obligations as an “Obligor” under and pursuant to Article 7 of the Credit Agreement.

 

2.05        Notwithstanding anything to the contrary herein,

 

(a)           each of the Acceding Guarantors shall be deemed an “Obligor” and “Transaction Party” in the Loan Documents solely with respect to (i) the definitions of “Deemed Removal”, “Guaranteed Obligations”, “Obligations” and “Permitted Liens” in the Credit Agreement, (ii) Sections 2.05(a) and 2.09 of the Credit Agreement, (iii) clauses (g), (h) and (i) of Article 6 of the Credit Agreement, (iv) Article 7 of the Credit Agreement, (v) Sections 8.09 and 8.10 of the Credit Agreement and (vi) Sections 9.01, 9.03(c), 9.07, 9.10 and 9.11 of the Credit Agreement; and

 

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(b)           for no other purpose shall an Acceding Obligor or ILFC be deemed to be an Obligor or Transaction Party under the Credit Agreement or the other Loan Documents.

 

Without limiting the foregoing, in no event shall an Acceding Obligor or ILFC be an Obligor for the purposes of Article 5 or (other than clauses (g), (h) and (i) thereof) 6 of the Credit Agreement.

 

2.06        References in the Loan Documents to “this Agreement” or the “Credit Agreement” or the like (and indirect references such as “hereunder”, “hereby”, “herein” and “hereof”) shall be deemed to be references to the Credit Agreement as amended hereby.

 

2.07        Pursuant to Section 3.14 of the Credit Agreement, Schedule 3.14 of the Credit Agreement is hereby supplemented and updated as set forth in Annex I.

 

2.08        For purposes of Section 9.01 of the Credit Agreement, the notice details of ILFC and the Acceding Obligors are as set forth in Annex II.

 

2.09        This Amendment shall constitute a “Loan Document”.

 

Section 3.              Representations and Warranties.

 

3.01        The delivery of the notice of the Amendment Effective Date shall be deemed a representation and warranty by each of ILFC and Financing Trust to the Lender Parties that, on and as of the Amendment Effective Date no Event of Default, and no event which, after notice or lapse of time or both, would become an Event of Default, shall have occurred and be continuing.

 

3.02        Each of Financing Trust, ILFC, each Acceding Obligor and the other Borrower Parties party hereto on the date hereof and on and as of the Amendment Effective Date represents and warrants to the Lender Parties that:

 

(i)            it is a Person duly organized, validly existing and, if applicable, in good standing under the laws of the jurisdiction of its organization; and it has the power and authority to own its property and to carry on its business as now being conducted and is duly qualified and, if applicable, in good standing as a foreign corporation or other entity authorized to do business in each jurisdiction where, because of the nature of its activities or properties, such qualification is required, except where the failure to be so qualified or in good standing could not reasonably be expected to have a Material Adverse Effect;

 

(ii)           the execution and delivery by it of this Amendment and the performance by it of its obligations under this Amendment and the Credit Agreement, as amended hereby, and each other Loan Document (including by assumption of obligations thereunder pursuant to this Amendment), and the performance of its obligations thereunder and the consummation of the transactions contemplated thereby (a) are within its organizational powers, i) have been duly authorized by all necessary corporate action, ii) have received all necessary approvals, authorizations, consents, registrations, notices, exemptions and licenses (if any shall be required) from Governmental Authorities and other Persons, except such approvals, authorizations, consents, registrations, notices, exemptions or licenses non-receipt of which

 

3

 

could not reasonably be expected to have a Material Adverse Effect and iii) do not and will not contravene, constitute a default under or conflict with any provision of (i) Law, (ii) any judgment, decree or order to which it is a party or by which it is bound, (iii) its Operating Documents or Organizational Documents or (iv) any provision of any agreement or instrument binding on it, or any agreement or instrument of which it is aware affecting the properties of it, except with respect to (d)(i), (ii) and (iv) above, for any such contravention or conflict which could not reasonably be expected to have a Material Adverse Effect;

 

(iii)          it has duly authorized, executed and delivered this Amendment; and

 

(iv)          this Amendment, the Credit Agreement and the other Loan Documents, as amended hereby, constitute its legal, valid and binding obligations, enforceable against it in accordance with their respective terms, subject to bankruptcy, insolvency, examinership, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors’ rights and to general equity principles.

 

Section 4.              Conditions Precedent.  As provided in Section 2 above, the amendments to the Credit Agreement contemplated hereby shall become effective as of the date notified by ILFC to the Administrative Agent (the “Amendment Effective Date”), provided that the following conditions precedent are satisfied on or prior to the Amendment Effective Date:

 

(a)           The Administrative Agent shall have received an officers’ certificate of ILFC stating that (i) the transfer of ILFC’s assets and properties substantially as an entirety to Financing Trust pursuant to the Transfer Agreements and (ii) this Amendment complies with Section 5.17 of the Credit Agreement and that all conditions precedent in the Credit Agreement relating to such transfer have been complied with.

 

(b)           The Administrative Agent shall have received a written opinion of Clifford Chance US LLP (addressed to the Administrative Agent and dated the Amendment Effective Date) in the form attached hereto as Exhibit A hereto stating that (i) the transfer of ILFC’s assets and properties substantially as an entirety to Financing Trust pursuant to the Transfer Agreements and (ii) this Amendment complies with Section 5.17 of the Credit Agreement and that all conditions precedent in the Credit Agreement relating to such transfer have been complied with.

 

(c)           The Administrative Agent shall have received a written opinion (in each case addressed to the Administrative Agent and dated the Amendment Effective Date) with respect to this Amendment from each of (i) Clifford Chance US LLP with respect to New York law in the form attached hereto as Exhibit B hereto, (ii) in-house counsel to ILFC with respect to California law and in relation to ILFC and CA Subsidiary Holdco in the form attached hereto as Exhibit C hereto, (iii) Morris, Nichols, Arsht & Tunnell LLP with respect to Delaware law and in relation to Financing Trust and USHoldco in the form attached hereto as Exhibit D hereto, (iv) Clifford Chance, Luxembourg with respect to Luxembourg law and in relation to the Borrower and in the form attached hereto as Exhibit E hereto, (vi) NautaDutilh with respect to Dutch law and in relation to AerCap and AAS in the form attached hereto as Exhibit F hereto and (vi)

 

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McCann Fitzgerald with respect to Irish law and in relation to Grandparent Holdco, Parent Holdco, Irish Subsidiary Holdco, AIL and AICL in the form attached hereto as Exhibit G hereto.

 

(d)           The representations and warranties of Financing Trust, ILFC, the Acceding Obligors and the Borrower Parties party hereto pursuant to Section 3 hereof shall be true and correct in all material respects.

 

(e)           On the Amendment Effective Date, no Default or Event of Default shall have occurred and be continuing.

 

Section 5.              Acknowledgement and Ratification.  Each of Financing Trust, ILFC, the Acceding Obligors and the Borrower Parties party hereto hereby acknowledges that it has reviewed the terms and provisions of this Amendment and consents to the modifications effected pursuant to this Amendment.  Each of Financing Trust, ILFC, the Acceding Obligors and the Borrower Parties party hereto hereby ratifies and confirms its obligations under this Amendment and each other Loan Document to which it is a party or under which it has obligations (including by assumption of obligations thereunder pursuant to this Amendment), and, in the case of Grandparent Holdco, Parent Holdco, the Borrower, CA Subsidiary Holdco and Irish Subsidiary Holdco, confirms its grants to the Collateral Agent of a continuing lien on and security interest in all of its right, title and interest in and to all Collateral as and to the extent provided under the Loan Documents as collateral security for the prompt payment and performance in full when due of the Obligations.  Without limiting the foregoing, the Borrower Parties, ILFC, the Financing Trust and the Acceding Obligors hereby acknowledge and confirm that each transfer of Ownership of a Pool Aircraft contemplated to be performed in connection with the transactions contemplated under the Transfer Agreements shall be performed in compliance with Section 2.10 of the Credit Agreement and the other provisions of the Loan Documents, it being acknowledged and agreed that no transfer of legal title to any Pool Aircraft is contemplated by the declarations of trust and that the instrument to be delivered (in connection with the transfer of Ownership by way of the declaration of trust) by each relevant Grantor for the purposes of Section 2.10 of the Credit Agreement and Section 2.15 of the Security Agreement shall be the Collateral Supplement.

 

Section 6.              Expenses.  Without limiting the Borrower’s obligations under Section 9.03 of the Credit Agreement, the Borrower agrees to pay all reasonable out-of-pocket costs and expenses incurred by the Administrative Agent and the Collateral Agent in connection with the negotiation, execution and delivery of this Amendment and the conditions precedent to the Amendment Effective Date including, without limitation, the reasonable fees and expenses of Milbank, Tweed, Hadley & McCloy LLP in connection therewith.

 

Section 7.              Miscellaneous.  Except as herein provided, the Credit Agreement and the other Loan Documents shall remain unchanged and in full force and effect.  This Amendment may be executed in any number of counterparts and by different parties hereto in separate 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 a signature page to this Amendment by electronic transmission shall be effective as delivery of a manually executed counterpart of this Amendment.  Sections 9.11 and 9.12 of the Credit Agreement are incorporated herein as if set out in full herein but with each reference therein to

 

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the “parties” being construed as a reference to the parties to this Amendment, each reference to “this Agreement” being construed as a reference to this Amendment and the reference to “Section 9.01” being construed as a reference to Section 9.01 of the Credit Agreement. This Amendment shall be governed by, and construed in accordance with, the law of the State of New York.

 

[Remainder of page left intentionally blank]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered as of the date first set forth above.

 

	
 
    	
DELOS FINANCE S.À R.L.
    
	
 
    	
Duly   represented by:
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/   Pamela S. Hendry
    
	
 
    	
Name:
    	
Pamela   S. Hendry
    
	
 
    	
Title:
    	
Class A   Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
INTERNATIONAL   LEASE FINANCE CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Pamela S. Hendry
    
	
 
    	
Name:
    	
Pamela   S. Hendry
    
	
 
    	
Title:
    	
Senior   Vice President & Treasurer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
AERCAP   GLOBAL AVIATION TRUST
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Isobel Hanley
    
	
 
    	
Name:
    	
Isobel   Hanley
    
	
 
    	
Title:
    	
Authorised   Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
AERCAP   U.S. GLOBAL AVIATION LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Isobel Hanley
    
	
 
    	
Name:
    	
Isobel   Hanley
    
	
 
    	
Title:
    	
Authorised   Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
SIGNED and DELIVERED as a DEED
    
	
 
    	
by   
    	
Niall   C. Sommerville
    
	
 
    	
as   attorney for
    
	
 
    	
HYPERION   AIRCRAFT LIMITED
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
/s/   Niall C. Sommerville
    
	
 
    	
Attorney
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
in   the presence of
    
	
 
    	
 
    
	
 
    	
 
    	
/s/   Susan Gordon
    
	
 
    	
Name:
    	
Susan   Gordon
    
	
 
    	
Address:
    	
IFSC,   Dubin
    
	
 
    	
Occupation:   
    	
Solicitor
    
				

 

First Amendment to Credit
 Agreement (Hyperion)
 Signature Pages

 

 

	
 
    	
SIGNED and DELIVERED as a DEED
    
	
 
    	
by
    	
Niall   C. Sommerville
    
	
 
    	
as   attorney for
    
	
 
    	
DELOS   AIRCRAFT LIMITED
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ Niall C. Sommerville
    
	
 
    	
Attorney
    
	
 
    	
 
    
	
 
    	
in   the presence of
    
	
 
    	
 
    
	
 
    	
 
    	
/s/   Susan Gordon
    
	
 
    	
Name:
    	
Susan   Gordon
    
	
 
    	
Address:
    	
IFSC,   Dubin
    
	
 
    	
Occupation:   Solicitor
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
SIGNED and DELIVERED as a DEED
    
	
 
    	
by
    	
Niall   C. Sommerville
    
	
 
    	
as   attorney for
    
	
 
    	
ARTEMIS   (DELOS) LIMITED
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ Niall C. Sommerville
    
	
 
    	
Attorney
    
	
 
    	
 
    
	
 
    	
in   the presence of
    
	
 
    	
 
    
	
 
    	
 
    	
/s/   Susan Gordon
    
	
 
    	
Name:
    	
Susan   Gordon
    
	
 
    	
Address:
    	
IFSC,   Dubin
    
	
 
    	
Occupation:   Solicitor
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
APOLLO   AIRCRAFT INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Pamela S. Hendry
    
	
 
    	
Name:
    	
Pamela   S. Hendry
    
	
 
    	
Title:
    	
Senior   Vice President & Treasurer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
AERCAP   HOLDINGS N.V.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Kenneth Ng
    
	
 
    	
Name:
    	
Kenneth   Ng
    
	
 
    	
Title:
    	
Attorney-in-Fact
    
				

 

First Amendment to Credit
 Agreement (Hyperion)
 Signature Pages

 

 

	
 
    	
AERCAP   AVIATION SOLUTIONS B.V.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Kenneth Ng
    
	
 
    	
Name:
    	
Kenneth   Ng
    
	
 
    	
Title:
    	
Attorney-in-Fact
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
SIGNED and DELIVERED as a DEED
    
	
 
    	
by
    	
Isobel Hanley
    
	
 
    	
as   attorney for
    
	
 
    	
AERCAP   IRELAND LIMITED
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ Isobel Hanley
    
	
 
    	
Attorney
    
	
 
    	
 
    
	
 
    	
in   the presence of
    
	
 
    	
 
    
	
 
    	
 
    	
/s/   Sharon Kelly
    
	
 
    	
Name:
    	
Sharon   Kelly
    
	
 
    	
Address:
    	
Shannon, Co.   Clare
    
	
 
    	
Occupation:   Treasury Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
SIGNED and DELIVERED as a DEED
    
	
 
    	
by
    	
Isobel Hanley
    
	
 
    	
as   attorney for
    
	
 
    	
AERCAP   IRELAND CAPITAL LIMITED
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ Isobel Hanley
    
	
 
    	
Attorney
    
	
 
    	
 
    
	
 
    	
in   the presence of
    
	
 
    	
 
    
	
 
    	
 
    	
/s/   Sharon Kelly
    
	
 
    	
Name:
    	
Sharon   Kelly
    
	
 
    	
Address:
    	
Shannon, Co.   Clare
    
	
 
    	
Occupation:   Treasury Manager
    
				

 

First Amendment to Credit
 Agreement (Hyperion)
 Signature Pages

 

 

	
 
    	
ADMINISTRATIVE   AGENT
    
	
 
    	
 
    
	
 
    	
DEUTSCHE   BANK AG NEW YORK BRANCH
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael Winters
    
	
 
    	
Name:
    	
Michael   Winters
    
	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Kirk L. Tashjian
    
	
 
    	
Name:
    	
Kirk   L. Tashjian
    
	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
COLLATERAL   AGENT
    
	
 
    	
 
    
	
 
    	
DEUTSCHE   BANK AG NEW YORK BRANCH
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael Winters
    
	
 
    	
Name:
    	
Michael   Winters
    
	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Kirk L. Tashjian
    
	
 
    	
Name:
    	
Kirk   L. Tashjian
    
	
 
    	
Title:
    	
Vice   President
    

 

First Amendment to Credit
 Agreement (Hyperion)
 Signature Pages

 

 

ANNEX 1

 

Schedule 3.14

 

	
Name of Transaction
   Party
    	
 
    	
Chief Executive
   Office
    	
 
    	
Jurisdiction
   of
   Incorporation
    	
 
    	
Entity Type
    	
 
    	
Employer or
   Taxpayer
   Identification
   Number
    
	
DELOS FINANCE S.À R.L.
    	
 
    	
46A,   Avenue
   J.F. Kennedy, L-1855 Luxembourg
    	
 
    	
Luxembourg
    	
 
    	
Private limited liability   company (société à responsabilité limitée)
    	
 
    	
In   the process of being registered with the Luxembourg Register of Commerce and   Companies and having a share capital of EUR 12,500
    
	
HYPERION AIRCRAFT LIMITED
    	
 
    	
30   North Wall
   Quay, Dublin 1, Ireland
    	
 
    	
Ireland
    	
 
    	
Private Limited Liability Company
    	
 
    	
538945
    
	
DELOS AIRCRAFT LIMITED
    	
 
    	
30   North Wall
   Quay, Dublin 1, Ireland
    	
 
    	
Ireland
    	
 
    	
Private Limited Liability Company
    	
 
    	
538946
    
	
APOLLO AIRCRAFT INC.
    	
 
    	
10250
   Constellation Blvd.,
   Suite 3400 Los Angeles, CA 90067
    	
 
    	
California
    	
 
    	
Corporation
    	
 
    	
27-2098782
    
	
ARTEMIS (DELOS) LIMITED
    	
 
    	
30   North Wall
   Quay, Dublin 1, Ireland
    	
 
    	
Ireland
    	
 
    	
Private Limited Liability Company
    	
 
    	
482230
    
	
INTERNATIONAL LEASE FINANCE CORPORATION
    	
 
    	
10250
   Constellation Blvd.,
   Suite 3400 Los Angeles, CA 90067
    	
 
    	
California
    	
 
    	
Corporation
    	
 
    	
22-3059110
    
	
AERCAP GLOBAL AVIATION TRUST
    	
 
    	
1100   North Market Street, DE 19890
    	
 
    	
Delaware
    	
 
    	
Statutory Trust
    	
 
    	
38-7108865
    

 

Annex 1 - 1

 

	
AERCAP U.S. GLOBAL AVIATION LLC
    	
 
    	
1209   Orange Street, Wilmington, DE 19801
    	
 
    	
Delaware
    	
 
    	
Limited Liability Company
    	
 
    	
30-0810106
    
	
AERCAP HOLDINGS N.V.
    	
 
    	
Stationsplein   965, 1117 CE
   Schiphol, The Netherlands
    	
 
    	
The Netherlands
    	
 
    	
Public Limited Liability Company (naamloze vennootschap)
    	
 
    	
816011163
    
	
AERCAP AVIATION SOLUTIONS   B.V.
    	
 
    	
Stationsplein   965, 1117 CE
   Schiphol, The Netherlands
    	
 
    	
The Netherlands
    	
 
    	
Private Limited Liability Company (besloten   vennootschap met beperkte aansprakelijkheid)
    	
 
    	
851559165
    
	
AERCAP IRELAND LIMITED
    	
 
    	
4450   Atlantic Avenue Shannon, Co. Clare
   Ireland
    	
 
    	
Ireland
    	
 
    	
Private Limited Liability Company
    	
 
    	
51950
    
	
AERCAP IRELAND CAPITAL LIMITED
    	
 
    	
4450   Atlantic Avenue Shannon, Co. Clare
   Ireland
    	
 
    	
Ireland
    	
 
    	
Private Limited Liability Company
    	
 
    	
535682
    

 

Annex 1 - 2

 

ANNEX II
 NOTICES

 

If to International Lease Finance Corporation:

 

International Lease Finance Corporation

10250 Constellation Blvd., Suite 3400

Los Angeles, CA 90067

Attention: Treasurer with a copy to the General Counsel

Telecopy No. (310) 788-1990

Electronic mail: legalnotices@ilfc.com

 

If to AerCap Global Aviation Trust

4450 Atlantic Avenue, Westpark, Shannon, Co. Clare, Ireland

Phone: +353 61 723600

Facsimile: +353 61 723850

Electronic mail: contractualnotices@aercap.com

 

If to AerCap U.S. Global Aviation LLC

4450 Atlantic Avenue, Westpark, Shannon, Co. Clare, Ireland

Phone: +353 61 723600

Facsimile: +353 61 723850

Electronic mail: contractualnotices@aercap.com

 

If to AerCap Holdings N.V.

Stationsplein 965, 1117 CE Schiphol, The Netherlands

Phone: +31 20 655 9655

Facsimile: +31 20 6599100

Electronic mail: contractualnotices@aercap.com

 

If to AerCap Aviation Solutions B.V.

Stationsplein 965, 1117 CE Schiphol, The Netherlands

Phone: +31 20 655 9655

Facsimile: +31 20 6599100

Electronic mail: contractualnotices@aercap.com

 

If to AerCap Ireland Limited

4450 Atlantic Avenue, Westpark, Shannon, Co. Clare, Ireland

Phone: +353 61 723600

Facsimile: +353 61 723850

Electronic mail: contractualnotices@aercap.com

 

If to AerCap Ireland Capital Limited

4450 Atlantic Avenue, Westpark, Shannon, Co. Clare, Ireland

Phone: +353 61 723600

Facsimile: +353 61 723850

Electronic mail: contractualnotices@aercap.com

 

 

EXHIBIT A
 FORM OF OPINION OF CLIFFORD CHANCE US LLP PURSUANT TO SECTION 4(b)

 

 

[        ], 2014

 

To the Addressees Listed on Schedule 1

 

Ladies and Gentlemen:

 

We have acted as New York counsel to International Lease Finance Corporation, a California corporation (“ILFC”), AerCap Global Aviation Trust, a Delaware statutory trust (“Financing Trust”) and the Acceding Obligors as defined below in connection with the First Amendment to Term Loan Credit Agreement (the “Amendment”) dated as of the date hereof among Delos Finance S.à r.l. as Borrower (“Borrower”), ILFC, Hyperion Aircraft Limited (“Grandparent Holdco”), Delos Aircraft Limited (“Parent Holdco”), Apollo Aircraft Inc. (“CA Subsidiary Holdco”), Artemis (Delos) Limited (“Irish Subsidiary Holdco”), Financing Trust, AerCap U.S. Global Aviation LLC, a Delaware limited liability company (“USHoldco”), AerCap Holdings N.V., a public company with limited liability incorporated under the laws of The Netherlands (“AerCap”), AerCap Aviation Solutions B.V., a private company with limited liability incorporated organized under the laws of The Netherlands (“AAS”), AerCap Ireland Limited, a private limited liability company incorporated under the laws of Ireland (“AIL”) and AerCap Ireland Capital Limited, a private limited liability company incorporated under the laws of Ireland (“AICL” and together with USHoldco, AerCap, AAS and AIL, the “Acceding Obligors”), and Deutsche Bank AG, New York Branch, as Administrative Agent and as Collateral Agent (the “Agent”).

 

Capitalized terms used herein and not otherwise defined shall have the meanings given such terms in the Credit Agreement as defined in the Amendment and as amended by the Amendment (the “Credit Agreement”). This opinion is delivered pursuant to Section 4(b) of the Amendment.

 

In rendering the opinions expressed below, we have examined executed copies of the following documents:

 

(a)                           Credit Agreement;

 

(b)                           Amendment;

 

(c)                            Completion Date Transfer Agreement, dated as of [the date hereof][—] by and among ILFC, Financing Trust and other parties signatory thereto (the “Completion Date Agreement”); and

 

(d)                           Reallocation Agreement, dated as of [the date hereof][—] by and among USHoldco, the parent of ILFC, Financing Trust and other parties signatory thereto (the “Reallocation Agreement”), pursuant to which certain of ILFC’s assets will be transferred to Financing Trust (the “Transfer”).

 

 

Each of ILFC, Grandparent Holdco, Parent Holdco, Borrower, CA Subsidiary Holdco, Irish Subsidiary Holdco, Financing Trust and each Acceding Obligor is referred to herein as an “Obligor”. Each of the Credit Agreement, the Amendment, the Completion Date Agreement and the Reallocation Agreement is referred to herein as a “Transaction Document”.

 

We have also examined and relied upon such records and statements and certificates of public officials and representatives and officers of the Obligors, including the Officer’s Certificate of ILFC provided for in Section 5.17(a)(iii) of the Credit Agreement and in Section 4(a) of the Amendment, which we have assumed has been received by you, and other persons as we have deemed necessary as a basis for the opinions expressed below. As to factual matters relevant to our opinions expressed below, we have, without independent investigation, relied upon the foregoing and the representations and warranties made in or pursuant to the Transaction Documents. We have not reviewed the dockets or other records of any court, arbitrator or governmental or regulatory body or agency or conducted any other investigation or inquiry or otherwise established or verified any factual matter.

 

In such examination, we have assumed the legal capacity of all natural persons, the genuineness of all signatures, the authenticity of all documents submitted to us as originals and the conformity with the originals of all documents submitted to us as certified or photostatic copies.

 

We have assumed, without investigation: (i) the due organization, valid existence and, to the extent applicable, good standing of each party to the Transaction Documents; (ii) that each party to the Transaction Documents has requisite power and authority to execute, deliver and perform its obligations under the Transaction Documents to which it is a party; (iii) that each Transaction Document has been duly authorized, executed and delivered by each party thereto; (iv) that each Transaction Document constitutes a valid, binding and enforceable obligation of each party thereto; (v) that the execution, delivery and performance by each party of the Transaction Documents to which it is a party do not contravene such party’s constitutional documents, violate any law, rule or regulation applicable to such party or result in any conflict with or breach of any agreement or instrument to which such party is a party or by which such party is bound; (vi) that each party to the Transaction Documents has obtained or made all consents, approvals, authorizations, filings, registrations, qualifications or recordations with each Governmental Authority required in connection with the execution, delivery and performance of the Transaction Documents; (vii) all applicable filings, registrations, recordations or other actions necessary to perfect as to ownership or security interest, including under the Cape Town Convention have been or will be made; (viii) that (a) you are receiving concurrently herewith notice from ILFC under the Amendment that the AerCap Acquisition Amendment Effective Date thereunder is occurring concurrently with the delivery of this opinion, (b) you have received the opinions referenced in Section 4(c) of the Amendment, (c) as of the date hereof the representations and warranties of the Obligors under Section 3 of the Amendment are true and correct in all material respects and (d) as of the date hereof no Default or Event of Default under the Credit Agreement (before and after giving effect to the Amendment) has occurred and is continuing, and (ix) the accuracy and completeness as of the date hereof of the foregoing and the other certificates and other information and statements delivered or made to us by representatives and officers of each Obligor.

 

2

 

We have made no investigation or review of any matters relating to the Obligors or any other person or entity other than as expressly described herein. Further, we have made no special investigation of the business operations of the Obligors or any other person or entity for the purpose of identifying laws or regulations to which the Obligors or any other person or entity is subject. We note that our representation of the Obligors is limited to this and similar transactions and that we are not generally familiar with their respective affairs or operations.

 

Based upon the foregoing and subject to the qualifications and limitations set forth below, we are of the opinion that:

 

1.                                      The Transfer and the Amendment comply with the provisions of Section 5.17 (a)(i)(A), (a)(ii) and (a)(iii) of the Credit Agreement.

 

2.                                      Upon execution and delivery of this opinion, all conditions precedent specified in Section 5.17 of the Credit Agreement relating to the Transfer have been complied with.

 

The opinions expressed herein are limited to the laws of the State of New York.

 

The opinions set forth herein are rendered as of the date hereof and we disclaim any undertaking to update this letter or otherwise advise you as to any changes of law or fact that may hereafter be brought to our attention.

 

This opinion is rendered solely for your benefit (and the benefit of your successors and permitted assigns) in connection with the Amendment and may not be relied upon for any other purpose, or relied upon by any other person or entity without our prior written consent in each instance, except that this opinion may be relied upon by an assignee or transferee of a Lender pursuant to an assignment or transfer that is made in accordance with the Credit Agreement.

 

	
Very   truly yours,
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Clifford   Chance US LLP
    	
 
    

 

3

 

Schedule 1

 

Deutsche Bank AG, New York Branch, as administrative agent, collateral agent and lender

 

Deutsche Bank Securities Inc., as joint lead arranger

 

Goldman Sachs Bank USA, as joint lead arranger

 

Each Lender that is a party to the Credit Agreement

 

International Lease Finance Corporation

 

4

 

EXHIBIT B
 FORM OF OPINION OF CLIFFORD CHANCE US LLP PURSUANT TO SECTION 4(c)

 

 

[      ], 2014

 

To the Addressees Listed on Schedule 1

 

Ladies and Gentlemen:

 

We have acted as New York counsel to International Lease Finance Corporation, a California corporation (“ILFC”), AerCap Global Aviation Trust, a Delaware statutory trust (“Financing Trust”) and the Acceding Obligors as defined below in connection with the First Amendment to Term Loan Credit Agreement (the “Amendment”) dated as of the date hereof among Delos Finance S.à r.l. as Borrower (“Borrower”), ILFC, Hyperion Aircraft Limited (“Grandparent Holdco”), Delos Aircraft Limited (“Parent Holdco”), Apollo Aircraft Inc. (“CA Subsidiary Holdco”), Artemis (Delos) Limited (“Irish Subsidiary Holdco”), Financing Trust, AerCap U.S. Global Aviation LLC, a Delaware limited liability company (“USHoldco”), AerCap Holdings N.V., a public company with limited liability incorporated under the laws of The Netherlands (“AerCap”), AerCap Aviation Solutions B.V., a private company with limited liability incorporated organized under the laws of The Netherlands (“AAS”), AerCap Ireland Limited, a private limited liability company incorporated under the laws of Ireland (“AIL”) and AerCap Ireland Capital Limited, a private limited liability company incorporated under the laws of Ireland (“AICL” and together with USHoldco, AerCap, AAS and AIL, the “Acceding Obligors”), and Deutsche Bank AG New York Branch, as Administrative Agent and as Collateral Agent (the “Agent”).

 

Capitalized terms used herein and not otherwise defined shall have the meanings given such terms in the Credit Agreement as defined in the Amendment and as amended by the Amendment (the “Credit Agreement”). This opinion is delivered pursuant to Section 4(c) of the Amendment.

 

In rendering the opinions expressed below, we have examined executed copies of the following documents:

 

(a)                           Credit Agreement;

 

(b)                           Amendment;

 

(c)                            Intercreditor Agreement (as supplemented by the Intercreditor Supplement referred to below (the “Intercreditor Agreement”)); and

 

(d)                           Intercompany Lender Supplement to the Intercreditor Agreement (the “Intercreditor Supplement”) dated as of the date hereof among Grandparent Holdco, Parent Holdco, Borrower, ILFC, CA Subsidiary Holdco, Irish Subsidiary Holdco, Financing Trust, the Acceding Obligors and the Agent.

 

Each of ILFC, Grandparent Holdco, Parent Holdco, Borrower, CA Subsidiary Holdco, Irish Subsidiary Holdco, Financing Trust and each Acceding Obligor is referred to herein as an

 

1

 

“Obligor”. Each of the Credit Agreement, the Amendment, the Intercreditor Agreement and the Intercreditor Supplement is referred to herein as a “Transaction Document”. Each of the Amendment and the Intercreditor Supplement is referred to herein as an “Execution Document”.

 

We have also examined and relied upon such records and statements and certificates of public officials and representatives and officers of the Obligors and other persons as we have deemed necessary as a basis for the opinions expressed below. As to factual matters relevant to our opinions expressed below, we have, without independent investigation, relied upon the foregoing and the representations and warranties made in or pursuant to the Transaction Documents. We have not reviewed the dockets or other records of any court, arbitrator or governmental or regulatory body or agency or conducted any other investigation or inquiry or otherwise established or verified any factual matter.

 

In such examination, we have assumed the legal capacity of all natural persons, the genuineness of all signatures, the authenticity of all documents submitted to us as originals and the conformity with the originals of all documents submitted to us as certified or photostatic copies.

 

Except as expressly opined on by us below, we have assumed, without investigation: (i) the due organization, valid existence and, to the extent applicable, good standing of each party to the Transaction Documents; (ii) that each party to the Transaction Documents has requisite power and authority to execute, deliver and perform its obligations under the Transaction Documents to which it is a party; (iii) that each Transaction Document has been duly authorized, executed and delivered by each party thereto; (iv) that each Transaction Document constitutes a valid, binding and enforceable obligation of each party thereto; (v) that the execution, delivery and performance by each party of the Transaction Documents to which it is a party do not contravene such party’s constitutional documents, violate any law, rule or regulation applicable to such party or result in any conflict with or breach of any agreement or instrument to which such party is a party or by which such party is bound; (vi) that each party to the Transaction Documents has obtained or made all consents, approvals, authorizations, filings, registrations, qualifications or recordations with each Governmental Authority required in connection with the execution, delivery and performance of the Transaction Documents; (vii) all applicable filings, registrations, recordations or other actions necessary to perfect as to ownership or security interest (except as set forth herein) including under the Cape Town Convention have been or will be made; and (viii) the accuracy and completeness as of the date hereof of the certificates and other information and statements delivered or made to us by representatives and officers of ILFC, Financing Trust and each Acceding Obligor.

 

We have made no investigation or review of any matters relating to the Obligors or any other person or entity other than as expressly described herein. Further, we have made no special investigation of the business operations of the Obligors or any other person or entity for the purpose of identifying laws or regulations to which the Obligors or any other person or entity is subject. With reference particularly to our opinion in paragraph 3 below, we note that our representation of the Obligors is limited to this and similar transactions and that we are not generally familiar with their respective affairs or operations.

 

Based upon the foregoing and subject to the qualifications and limitations set forth below, we are of the opinion that:

 

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1.                                      Each Transaction Document is a valid and binding obligation of each Obligor party thereto, enforceable against such Obligor in accordance with its terms.

 

2.                                      The execution and delivery by each Obligor of the Execution Documents to which it is a party does not, and the performance by each Obligor of its obligations under each Transaction Document to which it is a party will not, cause such Obligor to violate any Generally Applicable Law (defined below).

 

3.                                      No consent, approval or authorization of, and no filing, registration, qualification or recordation with, United States federal or State of New York governmental authorities pursuant to any Generally Applicable Law is required in connection with the execution and delivery by any Obligor of the Execution Documents to which it is a party or the consummation by any Obligor of the transactions contemplated by the Transaction Documents to which it is a party, other than (a) those that are specified in the Transaction Documents, (b) filings necessary to create, record, perfect or maintain security interests, (c) those that have been duly obtained, taken or made and (d) in the case of Collateral constituting securities, as may be required in connection with any disposition of such Collateral.

 

As used herein, “Generally Applicable Law” means any law otherwise included within the scope of this opinion that a New York lawyer exercising customary professional diligence would reasonably be expected to recognize as being currently applicable to the Obligors, the Transaction Documents or the transactions contemplated thereby, including the grants of the security interests, excluding securities laws and any law that is applicable to the Obligors, the Transaction Documents or the transactions contemplated thereby, including the grants of the security interests, solely because of the specific assets or business of any party to any of the Transaction Documents or any of its affiliates. In particular, but without limitation, we express no opinion upon the application or effect of (i) any customs, international trade or other laws relating to the possession, import, export, use, operation, maintenance, repair or replacement of or the nature of any equipment, or any interest therein; (ii) federal or state antitrust and unfair competition, environmental, intellectual property, pension and employee benefit, or securities (including “blue sky”) laws; (iii) federal or state laws relating to aviation, banking, communications, customs, insurance, international trade, public utilities or taxation; (iv) federal and state laws and policies relating to (A) national and local emergencies and (B) deference to acts of sovereign states, including court orders; (v) federal or state criminal and civil forfeiture laws; (vi) other federal and state statutes of general application to the extent they provide for criminal prosecution (e.g., mail fraud and wire fraud statutes); and (vii) the laws of any counties, cities, towns, municipalities and special political subdivisions or agencies thereof; and in the case of each of the foregoing, all rules and regulations promulgated thereunder or administrative or judicial decisions with respect thereto.

 

Our opinions set forth above are subject to the following qualifications and limitations:

 

(a)                                 Our opinion set forth in paragraph 1 above is subject to applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and similar laws affecting the enforcement of creditors’ rights and general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at

 

3

 

law, and including, without limitation, principles relating to materiality, good faith and fair dealing, reasonableness, unconscionability and availability of equitable remedies).

 

(b)                                 We express no opinion on the effect of the Cape Town Convention or the Convention on the International Recognition of Rights in Aircraft signed at Geneva on June 19, 1948.

 

(c)                                  We express no opinion as to any provision of a Transaction Document that provides the terms thereof may not be waived or modified except in writing, which may be limited under certain circumstances.

 

(d)                                 We express no opinion as to any provision in a Transaction Document asserting that the partial invalidity of one or more provisions thereof shall not invalidate the remaining provisions thereof.

 

(e)                                  We express no opinion with respect to any indemnification or reimbursement obligation or limitation on liability contained in a Transaction Document, insofar as such provision provides exculpation or exemption from, or requires indemnification or reimbursement of a party for, its own action or inaction, where such action or inaction involves such party’s gross negligence, recklessness or wilful or unlawful misconduct or to the extent any such provision is contrary to public policy.

 

(f)                                   United States federal court jurisdiction is limited by Section 28 U.S.C. § 1332 where diversity of citizenship is lacking and, even where diversity exists, federal courts retain the power to transfer an action from one federal court to another under 28 U.S.C. § 1404(a) or to dismiss by reason of the doctrine of forum non conveniens.

 

(g)                                  We express no opinion as to title to any property or whether a United States federal court or state court outside of the State of New York would give effect to the choice of New York law provided for in a Transaction Document. Our opinion as to the legality, validity, binding effect and enforceability of the governing law provisions of each Transaction Document is based solely on Section 5-1401 of the New York General Obligations Law. Our opinion as to the legality, validity, binding effect and enforceability of the provisions of each Transaction Document in respect of the submission to the jurisdiction of the courts of the State of New York is based solely on Section 5-1402 of the New York General Obligations Law.

 

(h)                                 We express no opinion as to the creation, perfection or priority of any lien, pledge or security interest.

 

(i)                                     We express no opinion as to indemnities against loss in converting from amounts denominated or paid in one currency into a second currency. We note that, generally, all judgments and decrees rendered by a federal or state court sitting in the State of New York are denominated in U.S. Dollars; under the laws of the State of New York, however, where a cause of action is based on an obligation denominated in another currency, any judgments or decrees must be rendered or entered in such currency and be converted into U.S. Dollars at the rate of exchange prevailing on the date of entry of the judgment or decree.

 

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(j)                                    We express no opinion as to any provision of a Transaction Document that purports to (i) grant rights of set-off to any person not a party thereto or (ii) permit set-off to be made without notice.

 

(k)                                 We express no opinion as to any provision of any Transaction Documents that purports to waive or exclude the rights of any person to commence any bankruptcy, reorganization, insolvency or similar proceeding or purports to waive notice of acceleration.

 

(l)                                     We express no opinion as to the effect of (i) the compliance or non-compliance of any Obligor, the Agent or any other person or entity with any state or federal laws or regulations applicable to such party because of its legal or regulatory status or the nature of its business or (ii) the failure of any person or entity to be duly authorized to conduct business in any jurisdiction.

 

(m)                             We also express no opinion as to the applicability to, or effect on, the obligations of any Obligor under any Transaction Document of Section 547 or 548 of the United States Bankruptcy Code, 11 U.S.C. Sections 101 et seq. (as amended from time to time, the “Bankruptcy Code”) or Article 10 of the New York Debtor and Creditor Law or any other New York or Federal law relating to preferences or fraudulent transfers and obligations.

 

(n)                                 We express no opinion at to any provision of any Transaction Document that provides for waiver of trial by jury or of other rights or defenses that under applicable law (including judicial decisions) or public policy cannot be waived.

 

(o)                                 We express no opinion as to compliance by any Obligor with the Commodity Exchange Act of 1936, as amended, or the rules or regulations promulgated thereunder.

 

The opinions expressed herein are limited to the federal laws of the United States and the laws of the State of New York.

 

The opinions set forth herein are rendered as of the date hereof and we disclaim any undertaking to update this letter or otherwise advise you as to any changes of law or fact that may hereafter be brought to our attention.

 

This opinion is rendered solely for your benefit (and the benefit of your successors and permitted assigns) in connection with the Amendment and may not be relied upon for any other purpose, or relied upon by any other person or entity without our prior written consent in each instance, except that this opinion may be relied upon by an assignee or transferee of a Lender pursuant to an assignment or transfer that is made in accordance with the Credit Agreement.

 

	
Very   truly yours,
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Clifford   Chance US LLP
    	
 
    

 

5

 

Schedule 1

 

Deutsche Bank AG New York Branch, as administrative agent, collateral agent and lender

 

Deutsche Bank Securities Inc., as joint lead arranger

 

Goldman Sachs Bank USA, as joint lead arranger

 

Each Lender that is a party to the Credit Agreement

 

International Lease Finance Corporation

 

6

 

EXHIBIT C
 FORM OF OPINION OF IN-HOUSE COUNSEL TO THE ORIGINAL OBLIGORS

 

 

	
 
    	
[•],   2014
    

 

To the addressees listed on Schedule I attached hereto

 

Ladies and Gentlemen:

 

This opinion is being delivered to you by the undersigned as Corporate Counsel of International Lease Finance Corporation, a California corporation (“ILFC”), in connection with that certain First Amendment to Term Loan Credit Agreement, dated as of the date hereof (the “Amendment”), among Delos Finance S.à r.l., a private limited liability company (société à responsabilité limitée) incorporated under the laws of Luxembourg, ILFC, Hyperion Aircraft Limited, a private limited liability company incorporated under the laws of Ireland, Delos Aircraft Limited, a private limited liability company incorporated under the laws of Ireland, Apollo Aircraft Inc., a California corporation (“CA Subsidiary Holdco”), Artemis (Delos) Limited, a private limited liability company incorporated under the laws of Ireland, AerCap Global Aviation Trust, a Delaware statutory trust, AerCap U.S. Global Aviation LLC, a Delaware limited liability company, AerCap Holdings N.V., a public company with limited liability incorporated under the laws of The Netherlands, AerCap Aviation Solutions B.V., a private company with limited liability incorporated organized under the laws of The Netherlands, AerCap Ireland Limited, a private limited liability company incorporated under the laws of Ireland and AerCap Ireland Capital Limited, a private limited liability company incorporated under the laws of Ireland, Deutsche Bank AG New York Branch, as administrative agent (in such capacity, the “Administrative Agent”) and Deutsche Bank AG New York Branch, as collateral agent (in such capacity, the “Collateral Agent”).

 

This opinion is being furnished pursuant to Sections 4(c)(ii) of the Amendment. Capitalized terms used and not otherwise defined herein shall have the respective meanings set forth in the “Credit Agreement” (as defined in, and as amended by, the Amendment (the “Credit Agreement”)).

 

In rendering the opinions set forth herein, I, or one or more attorneys under my supervision, have examined and relied on originals or copies of the following:

 

(a)                                 the Credit Agreement;

 

(b)                                 the Amendment;

 

(c)                                  the Articles of Incorporation of each CA Obligor, as certified by the Secretary of such CA Obligor as hereafter defined;

 

(d)                                 the Bylaws of each CA Obligor, as certified by the Secretary of such CA Obligor;

 

(e)                                  the resolutions of the Board of Directors of each CA Obligor adopted by unanimous written consent; and

 

1

 

(f)                                   certificates, from the Secretary of State of the State of California and the Franchise Tax Board of the State of California, as to each CA Obligor’s existence and good standing in the State of California.

 

Each of ILFC and the CA Subsidiary Holdco is referred to herein, individually, as a “CA Obligor”, and collectively, as the “CA Obligors.”

 

I, or one or more attorneys under my supervision, have also examined originals or copies, certified or otherwise identified to my satisfaction, of such records of the CA Obligors and such agreements, certificates and receipts of public officials, certificates of officers or other representatives of the CA Obligors and others, and such other documents as I have deemed necessary or appropriate as a basis for the opinions set forth below.

 

In my examination, or the examination by one or more attorneys under my supervision, we have assumed, with your permission, without independent investigation or inquiry, (a) the legal capacity of all natural persons, (b) the genuineness of all signatures, (c) the authenticity and completeness of all documents submitted to me as originals, (d) the conformity to original documents of all documents submitted to me as facsimile, electronic, certified or photostatic copies, (e) the authenticity of the originals of such copies, (f) that each party to the Amendment (other than any CA Obligor) (i) is duly formed, validly existing and in good standing under the laws of the jurisdiction of its incorporation or formation, (ii) has full power and authority and legal right to carry on its business and to enter into the Amendment and to perform its obligations thereunder, (iii) has duly and validly authorized the execution, delivery and performance of the Amendment by all necessary action, and (iv) has duly and validly executed and delivered the Amendment, and (g) that the Amendment constitutes the legal, valid and binding obligation of each party thereto, enforceable against such party in accordance with its respective terms. As to any facts material to the opinions expressed herein that I, or one or more attorneys under my supervision, did not independently establish or verify, I have relied upon statements and representations of other officers and other representatives of the CA Obligors and others and of public officials.

 

The opinions set forth below are subject to the following further qualifications, further assumptions and limitations:

 

(a)                                 the opinion set forth in paragraph 1 below with respect to the due incorporation, valid existence and good standing status of each CA Obligor under the laws of the State of California is based solely upon the certificates issued by the Secretary of State of the State of California and the Franchise Tax Board of the State of California;

 

(b)                                 for purposes of the opinions set forth below, (i) “Applicable Laws” means those laws, rules and regulations of the State of California and those federal laws, rules and regulations of the United States of America, in each case that, in my experience, are normally or customarily applicable to transactions of the type contemplated by the Amendment, but without having made any special investigation as to the applicability of any specific law, rule or regulation; (ii) “Governmental Approval” means any consent, approval, license, authorization or validation of, or filing, recording or registration with, any Governmental Authority pursuant to Applicable Laws where the failure to obtain such consent, approval, license, authorization or

 

2

 

validation or to make such filing, recording or registration will result in a Material Adverse Effect, and other than any consent, approval, license, authorization, validation, filing, qualification, recordation or registration that may have become applicable as a result of the involvement of any party (other than any of the CA Obligors) in the transactions contemplated by the Amendment or because of such parties’ legal or regulatory status or because of any other facts specifically pertaining to such parties or required to be obtained after the date hereof; and (iii) “Governmental Authority” means any court, regulatory body, administrative agency or governmental body of the State of California or the United States of America having jurisdiction over any CA Obligor under Applicable Laws;

 

(c)                                  I do not express any opinion as to the validity, binding effect or enforceability of the Amendment;

 

(d)                                 I express no opinion as to: (1) United States federal or state securities, insurance or banking laws or regulations; (2) United States federal or state antitrust or unfair competition laws or regulations; (3) United States federal or state environmental laws or regulations; (4) United States federal or state tax laws or regulations; (5) United States federal or state public utility laws or regulations; (6) pension or employee benefit laws or regulations; (7) United States federal patent, copyright or trademark, state trademark, or other United States federal or state intellectual property laws or regulations; (8) United States federal or state health and safety laws or regulations; (9) United States federal or state labor laws or regulations; (10) United States federal or state laws, regulations or policies relating to national or local emergencies; (11) statutes, ordinances, administrative decisions, rules or regulations of counties, towns, municipalities or special political subdivisions (whether created or enabled through legislative action at the United States federal, state or regional level); (12) United States federal or state laws, rules or regulations relating to zoning, land use, building or construction; (13) United States federal or state usury laws (other than California usury laws); (14) pension or employee benefits laws or regulations, including the Employee Retirement Income Security Act of 1974, as amended; (15) The USA Patriot Act (Title III of Public L. 107-56) or other anti-money laundering laws or regulations; (16) the Foreign Corrupt Practices Act; (17) (a) the Trading with the Enemy Act of 1917, 50 U.S.C.A. app. §1 et seq., of the United States, (b) the International Emergency Economic Powers Act, 50 U.S.C.A. §1701 et seq., of the United States, or (c) all United States Executive Orders (including the September 24, 2001, Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit or Support Terrorism), rules, regulations (including those from the Office of Foreign Assets Control of the U.S. Department of the Treasury), and other official acts promulgated under any of the foregoing; (18) aviation laws (including without limitation Title 49 of the U.S. Code, the Cape Town Convention, or any other laws, rules or regulations of the United States of America or promulgated under the Cape Town Convention relating to the sale, acquisition, ownership, registration, leasing, financing, mortgaging, use or operation of any aircraft, aircraft engines or any part thereof), or other laws, rules or regulations applicable to the particular nature of the equipment subject to the Amendment; (19) as to compliance by the CA Obligors with the Commodity Exchange Act of 1936, as amended, or the rules or regulations promulgated thereunder or (20) judicial decisions to the extent that they deal with any of the foregoing;

 

(e)                                  I do not express any opinion as to the effect on the opinions expressed herein of (i) the compliance or noncompliance of any party to the Amendment (other than the

 

3

 

CA Obligors to the extent necessary to render the opinions set forth herein) with any state, federal or other laws or regulations applicable to it or them or (ii) the legal or regulatory status or the nature of the business of any party (other than with respect to the CA Obligors to the extent necessary to render the opinions set forth herein); and

 

(f)                                   My opinions set forth below are subject to the effects of: (i) bankruptcy, insolvency, fraudulent conveyance, fraudulent transfer, reorganization, moratorium and other similar laws affecting or relating to creditors’ rights or remedies generally, (ii) general equitable principles, including concepts of materiality, reasonableness and good faith and other similar doctrines affecting the enforceability of agreements generally (whether considered in a proceeding in equity or at law), (iii) public policy, (iv) possible judicial action giving effect to foreign laws or foreign governmental or judicial actions affecting or relating to the rights or remedies of creditors, and (v) an implied covenant of good faith, reasonableness and fair dealing.

 

I am admitted to the bar of the State of California, and I do not express any opinion as to any laws other than the laws of the State of California and the federal laws of the United States of America to the extent referred to specifically herein. Insofar as the opinions expressed herein relate to matters governed by laws other than those set forth in the preceding sentence, I have assumed, without having made any independent investigation, that such laws do not affect any of the opinions set forth herein. The opinions expressed herein are based on laws in effect on the date hereof, which laws are subject to change with possible retroactive effect.

 

Based upon the foregoing and subject to the limitations, qualifications, exceptions and assumptions set forth herein, I am of the opinion that:

 

1.                                      Each CA Obligor is a corporation duly incorporated, validly existing and in good standing under the laws of the State of California.

 

2.                                      Each CA Obligor has the requisite corporate power and authority to execute and deliver the Amendment and perform its obligations under the Amendment. The execution and delivery by each CA Obligor of the Amendment and the performance by each CA Obligor of the Amendment has been duly authorized by all necessary corporate action on the part of the CA Obligor.

 

3.                                      The Amendment has been duly executed and delivered by each CA Obligor.

 

4.                                      The execution and delivery of the Amendment by each CA Obligor does not, and the performance by each CA Obligor of its obligations under the Amendment will not (a) violate such CA Obligor’s Articles of Incorporation or Bylaws, (b) contravene any provision of any Applicable Law or (c) result in or cause the creation of any security interest or lien upon any of the property of such CA Obligor other than pursuant to the Security Documents.

 

5.                                      No Governmental Approval is required on the part of any CA Obligor, for the authorization, execution, and delivery of or performance of its obligation under the Amendment, except for such Governmental Approvals (i) which have been obtained or taken and are in full force and effect, (ii) which will be obtained or made in the ordinary course of business or (iii) which are specified in Amendment.

 

4

 

The opinions set forth herein are solely for the benefit of the addressees (and their successors and permitted assigns) identified at the beginning of this opinion letter (the “Addressees”) in connection with the execution and delivery of the Amendment by each CA Obligor, and may not be relied upon in any manner or for any purpose by, nor may copies of this opinion letter be delivered or distributed to, any other person or entity without my prior written consent. The opinions set forth herein are limited to the matters stated herein and expressly set forth in this opinion letter, and no opinion is to be implied or may be inferred beyond the matters expressly stated herein. This opinion letter is being provided to the Addressees as of the date hereof, and the CA Obligors and I do not assume any obligation to update this opinion letter for events occurring after the date of this opinion letter or to provide the Addressees with any additional information that may come to our attention after the date hereof. Each Addressee’s recourse, if any, on account of any opinion herein proving inaccurate, shall be against the CA Obligors. I am rendering these opinions and this opinion letter in my capacity as Corporate Counsel of ILFC and not individually.

 

	
 
    	
Very   truly yours,
    
	
 
    	
 
    
	
 
    	
[        ]
    
	
 
    	
Corporate   Counsel
    

 

5

 

Schedule I

 

Deutsche Bank AG New York Branch, as Administrative Agent, on behalf of the Lenders

60 Wall Street

New York, NY 10005

 

Deutsche Bank AG New York Branch, as Collateral Agent, on behalf of the Lenders

60 Wall Street

New York, NY 10005

 

Deutsche Bank Securities Inc., as Joint Lead Arranger

60 Wall Street

New York, NY 10005

 

Goldman Sachs Bank USA, as Joint Lead Arranger

200 West Street

New York, NY 10282

 

The Lenders party to the Credit Agreement

 

 

EXHIBIT D
 FORM OF OPINION OF MORRIS, NICHOLS, ARSHT & TUNNELL LLP

 

 

[Letterhead of Morris, Nichols, Arsht & Tunnell LLP]

 

[·], 2014

 

TO:                           Each of the Addressees Identified
                                                  on Annex A Hereto

 

Re:                             AerCap Global Aviation Trust 
  AerCap U.S. Global Aviation LLC

 

Ladies and Gentlemen:

 

We have acted as special Delaware counsel to AerCap Global Aviation Trust, a Delaware statutory trust (the “Trust”), and AerCap U.S. Global Aviation LLC, a Delaware limited liability company (the “Company”), in connection with certain matters of Delaware law set forth below relating to the First Amendment (as defined below). Capitalized terms used herein and not otherwise herein defined are used as defined in the below-referenced Credit Agreement.

 

In rendering this opinion, we have examined and relied upon copies of the following documents in the forms provided to us: the Term Loan Credit Agreement (the “Credit Agreement”), dated as of March , 2014, among Delos Finance S.à r.l., a private limited liability company (société à responsabilité limitée) incorporated under the laws of Luxembourg (the “Borrower”), International Lease Finance Corporation, a California corporation (“ILFC”), Hyperion Aircraft Limited, a private limited liability company incorporated under the laws of Ireland (“Grandparent Holdco”), Delos Aircraft Limited, a private limited liability company incorporated under the laws of Ireland (“Parent Holdco”), Apollo Aircraft Inc., a California corporation (“CA Subsidiary Holdco”), Artemis (Delos) Limited, a private limited liability company incorporated under the laws of Ireland (“Irish Subsidiary Holdco”), the lenders party thereto and Deutsche Bank AG New York Branch, as Collateral Agent (as defined in the Credit Agreement) and Administrative Agent (as defined in the Credit Agreement); the First Amendment to the Credit Agreement (the “First Amendment”) dated as of [·], 2014 between the Borrower, ILFC, Grandparent Holdco, Parent Holdco, CA Subsidiary Holdco, Irish Subsidiary Holdco, the Trust, the Company, AerCap Holdings N.V., a public company with limited liability incorporated under the laws of The Netherlands, AerCap Aviation Solutions B.V., a private

 

 

company with limited liability incorporated under the laws of The Netherlands, AerCap Ireland Limited, a private limited liability company incorporated under the laws of Ireland, AerCap Ireland Capital Limited, a private limited liability company incorporated under the laws of Ireland, and Deutsche Bank AG New York Branch, as Collateral Agent and Administrative Agent; [the Intercreditor Agreement dated as of [·], 2014 (the “Intercreditor Agreement”) among ILFC, Grandparent Holdco, Parent Holdco the Borrower, Irish Subsidiary Holdco, CA Subsidiary Holdco, the Collateral Agent and each Junior Lien Representative]; [the Security Agreement dated as of [·], 2014 (the “Security Agreement,” and together with the Credit Agreement, the First Amendment and the Intercreditor Agreement, the “Opinion Documents”) among the Borrower Parties in favor of the Collateral Agent;] the Trust Agreement of the Trust dated as of February 5, 2014 (the “Trust Agreement”); the Certificate of Trust of the Trust as filed in the Office of the Secretary of State of the State of Delaware (the “State Office”) on February 5, 2014 (the “Certificate of Trust”); the Limited Liability Company Agreement of the Company dated as of February , 2014 (the “Company Agreement”); the Certificate of Formation of the Company as filed in the State Office on February 12, 2014, as amended by the Certificate of Amendment to Certificate of Formation of the Company as filed in the State Office on February 17, 2014 (as so amended, the “Certificate of Formation”); the Written Consent of the Regular Trustee of the Trust dated as of [·], 2014; the Unanimous Written Consent of the Board of Directors of the Company dated as of [·], 2014; and certificates of good standing of the Trust and the Company obtained from the State Office as of a recent date. In such examinations, we have assumed the genuineness of all signatures, the authenticity of all documents submitted to us as originals, the conformity to original documents of all documents submitted to us as copies or drafts of documents to be executed and the legal competence and capacity of natural persons to complete the execution of documents. We have further assumed for purposes of this opinion: (i) except to the extent addressed by our opinions in paragraphs 1 and 2 below, the due formation or organization, valid existence and good standing of each entity that is a signatory to any of the documents examined by us under the laws of the jurisdiction of its respective formation or organization; (ii) except to the extent addressed by our opinions in paragraphs 5 and 6 below, the due authorization, adoption, execution, and delivery, as applicable, of each of the above referenced documents; (iii) the payment of consideration for beneficial interests in the Trust by all beneficial owners of the Trust as provided in the Trust Agreement and the satisfaction of, or compliance with, all of the other terms, conditions and restrictions set forth in the Trust Agreement in connection with the admission of beneficial owners to the Trust and the issuance of beneficial interests in the Trust; (iv) the payment of consideration for limited liability company interests in the Company by all members of the Company as provided in the Company Agreement and the satisfaction of, or compliance with, all of the other terms, conditions and restrictions set forth in the Company Agreement in connection with the admission of members to the Company and the issuance of limited liability company interests in the Company; (v) that the activities of the Trust have been and will be conducted in accordance with the terms of the Trust Agreement and the Delaware Statutory Trust Act, 12 Del. C. §§ 3801 et seq. (the “Delaware Trust Act”); (vi) that the activities of the Company have been and will be conducted in accordance with the terms of the Company Agreement and the Delaware Limited Liability Company Act, 6 Del. C. §§ 18-101 et seq. (the “Delaware LLC Act”); (vii) that no event or circumstance has occurred on or prior to the date hereof that would

 

2

 

cause a termination or dissolution of the Trust under the Trust Agreement or the Delaware Trust Act, as applicable; (viii) that no event or circumstance has occurred on or prior to the date hereof that would cause a termination or dissolution of the Company under the Company Agreement or the Delaware LLC Act, as applicable; (ix) [that the Regular Trustee, acting on behalf of the Trust, has caused the Trust to voluntarily and unconditionally transfer possession of an executed counterpart of the First Amendment to each other party thereto with the intent of bringing the First Amendment into effect;] (x) [that [·], acting on behalf of the Company, has caused the Company to voluntarily and unconditionally transfer possession of an executed counterpart of the First Amendment to each other party thereto with the intent of bringing the First Amendment into effect;] (xi) that, except as set forth in the Opinion Documents, there are no covenants and agreements contained in the Loan Documents (as defined in the Credit Agreement) which are applicable to the Trust; and (xii) that each of the documents examined by us is in full force and effect, sets forth the entire understanding of the parties thereto with respect to the subject matter thereof and has not been amended, supplemented or otherwise modified, except as herein referenced. We have not reviewed any documents other than those identified above in connection with this opinion, and we have assumed that there are no other documents contrary to or inconsistent with the opinions expressed herein. No opinion is expressed herein with respect to the requirements of, or compliance with, federal or state securities or blue sky laws. Further, we express no opinion on the sufficiency or accuracy of any registration or offering documentation relating to the Trust or the Company. As to any facts material to our opinion, other than those assumed, we have relied, without independent investigation, on the above-referenced documents and on the accuracy, as of the date hereof, of the matters therein contained. For purposes of our opinions set forth in paragraphs 7 and 8 below, we refer only to applicable statutes, laws, rules and regulations of the State of Delaware that are of general application and that, in our experience, are likely to have application to transactions of the type contemplated by the First Amendment. In addition, we note that the First Amendment is governed by and construed in accordance with the laws of a jurisdiction other than the State of Delaware and, for purposes of our opinions set forth below, we have assumed that the First Amendment will be interpreted in accordance with the plain meaning of the written terms thereof as such terms would be interpreted as a matter of Delaware law and we express no opinion with respect to any legal standards or concepts under any laws other than those of the State of Delaware.

 

Based on and subject to the foregoing and to the exceptions and qualifications set forth below, and limited in all respects to matters of Delaware law, it is our opinion that:

 

1.                                      The Trust is a duly formed and validly existing statutory trust in good standing under the laws of the State of Delaware.

 

2.                                      The Company is a duly formed and validly existing limited liability company in good standing under the laws of the State of Delaware.

 

3.                                      The Trust has requisite statutory trust power and authority under the Trust Agreement and the Delaware Trust Act to execute and deliver the First Amendment and perform its obligations thereunder.

 

3

 

4.                                      The Company has requisite limited liability company power and authority under the Company Agreement and the Delaware LLC Act to execute and deliver the First Amendment and perform its obligations thereunder.

 

5.                                      The Trust has taken all requisite statutory trust action under the laws of the State of Delaware to authorize the execution, delivery and performance of the First Amendment by the Trust, and the First Amendment has been duly executed and delivered by the Trust.

 

6.                                      The Company has taken all requisite limited liability company action under the laws of the State of Delaware to authorize the execution, delivery and performance of the First Amendment by the Company, and the First Amendment has been duly executed and delivered by the Company.

 

7.                                      The execution and delivery by the Trust of the First Amendment, and the performance by the Trust of its obligations thereunder, do not violate (i) the Trust Agreement or the Certificate of Trust, or (ii) any applicable Delaware statute, law, rule or regulation.

 

8.                                      The execution and delivery by the Company of the First Amendment, and the performance by the Company of its obligations thereunder, do not violate (i) the Company Agreement or the Certificate of Formation, or (ii) any applicable Delaware statute, law, rule or regulation.

 

The opinions expressed herein are intended solely for the benefit of the addressees hereof and their permitted successors and assigns under the Credit Agreement in connection with the matters contemplated hereby and may not be relied upon by any other person or entity or for any other purpose without our prior written consent. This opinion speaks only as of the date hereof and is based on our understandings and assumptions as to present facts and our review of the above-referenced documents and the application of Delaware law as the same exist on the date hereof, and we undertake no obligation to update or supplement this opinion after the date hereof for the benefit of any person or entity (including any permitted successor or assign of the addressees hereof under the Credit Agreement) with respect to any facts or circumstances that may hereafter come to our attention or any changes in facts or law that may hereafter occur or take effect.

 

	
 
    	
Very   truly yours,
    
	
 
    	
 
    
	
 
    	
MORRIS,   NICHOLS, ARSHT & TUNNELL LLP
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Tarik   J. Haskins
    

 

4

 

ANNEX A

 

Identification of Addressees of
 Morris, Nichols, Arsht & Tunnell LLP Opinion 
 Dated [·], 2014

 

Deutsche Bank AG New York Branch
                                                  in its capacity as Collateral Agent and Administrative Agent 
 60 Wall Street
 New York, NY 10005

 

Deutsche Bank Securities Inc. and Goldman Sachs Bank USA 
                                                  as Joint Lead Arrangers

 

The Lenders party to the Credit Agreement on the date hereof

 

 

EXHIBIT E
 FORM OF OPINION OF CLIFFORD CHANCE, LUXEMBOURG

 

 

	
 
    	
Clifford Chance
    
	
 
    	
10, BOULEVARD G.D. CHARLOTTE
    
	
 
    	
B.P. 1147
    
	
 
    	
L-1011 LUXEMBOURG
    
	
 
    	
GRAND DUCHÉ DE LUXEMBOURG
    
	
 
    	
 
    
	
 
    	
TEL   +352 48 50 50 1
    
	
 
    	
FAX   +352 48 13 85
    
	
 
    	
 
    
	
 
    	
www.cliffordchance.com
    

 

DRAFT 2: 4 MARCH 2014

 

[SUBJECT TO INTERNAL REVIEW]

 

 

CLIFFORD CHANCE OPINION LETTER
 (LUXEMBOURG LAW)

 

FIRST AMENDMENT TO THE 2014 TERM LOAN
 CREDIT AGREEMENT

 

 

 

CONTENTS

 

	
Clause
    	
 
    	
Page
    
	
 
    	
 
    
	
1.
    	
Introduction
    	
2
    
	
 
    	
 
    	
 
    
	
2.
    	
Opinions
    	
3
    
	
 
    	
 
    	
 
    
	
3.
    	
No   Insolvency Proceedings
    	
6
    
	
 
    	
 
    	
 
    
	
4.
    	
Scope   of Opinion
    	
6
    
	
 
    	
 
    	
 
    
	
5.
    	
Addressees   And Purpose
    	
7
    
	
 
    	
 
    	
 
    
	
Schedule 1 Definitions
    	
9
    
	
 
    	
 
    
	
Schedule 2 Luxembourg Obligor
    	
11
    
	
 
    	
 
    
	
Schedule 3 Documents
    	
12
    
	
 
    	
 
    
	
Schedule 4 Assumptions
    	
13
    
	
 
    	
 
    
	
Schedule 5 Reservations
    	
16
    
				

 

i

 

Your reference:

Our reference:

Marc.mehlen@cliffordchance.com

 

	
To:
    	
Deutsche   Bank AG New York Branch as
    
	
 
    	
administrative   agent and collateral agent 
    	
[...]2014
    
	
 
    	
Each   Lender Party (as defined in Schedule 1)
    
	
 
    	
 
    
	
 
    	
Deutsche   Bank Securities Inc., as joint lead 
    
	
 
    	
arranger;
    
	
 
    	
 
    
	
 
    	
Goldman   Sachs Bank USA, as joint lead 
    
	
 
    	
arranger;   and
    
	
 
    	
 
    
	
 
    	
International   Lease Finance Corporation
    
	
 
    	
 
    
	
 
    	
(together   the “Addressees”)
    

 

Dear Sirs

 

First Amendment to the 2014 Term Loan Credit Agreement - Facility for Delos Finance S.à r.l.

 

We have acted as Luxembourg legal advisers of International Lease Finance Corporation in relation to the above transaction (the “Transaction”).

 

1

 

1.                                      INTRODUCTION

 

1.1                               Transaction Documents

 

The opinions given in this opinion letter (the “Opinion Letter”) relate to the following document entered into in connection with the Transaction:

 

1.1.1                                A New York law governed amendment agreement to be dated [...] 2014 (the “Credit Amendment Agreement”) between, amongst others, the Luxembourg Obligor as borrower, Deutsche Bank AG New York Branch as administrative agent and collateral agent (the “Collateral Agent”), Aercap Global Aviation Trust, AerCap U.S. Global Aviation LLC, AerCap Holdings N.V., AerCap Aviation Solutions B.V., AerCap Ireland Limited and AerCap Ireland Capital Limited as acceding obligors relating to a term loan credit agreement dated [...] March 2014 (the “Original Credit Agreement”) and entered into between, amongst others, the Luxembourg Obligor as borrower and the Collateral Agent as administrative agent and collateral agent (the “Amended Credit Agreement”).

 

1.2                               Defined terms and Interpretation

 

Terms defined in the Transaction Documents shall have the same meaning in this Opinion Letter, unless otherwise defined herein (and in particular in paragraph 1.1 (Transaction Documents) and in Schedule 1 (Definitions)).

 

Headings in this Opinion Letter are for ease of reference only and shall not affect its interpretation.

 

In this Opinion Letter, Luxembourg legal concepts are expressed in English terms and not in their original French terms. The concepts concerned may not be identical to the concepts described by the same English terms as they exist under the laws of other jurisdictions. This Opinion Letter may therefore only be relied upon under the express condition that any issues of interpretation arising thereunder will be governed by Luxembourg law.

 

1.3                               Legal review

 

We have not reviewed any documents other than the Transaction Documents and the Corporate Documents, and this Opinion Letter does not purport to address any legal issues that arise in relation to such other documents that may be or come into force between the Parties, even if there is a reference to any such documents in the Transaction Documents or the Corporate Documents or on the impact such documents may have on the opinions expressed in this Opinion Letter.

 

2

 

1.4                               Applicable law

 

The opinions given in this Opinion Letter are confined to and given on the basis of Luxembourg law as currently applied by the Luxembourg courts as evidenced in published case-law. We have made no independent investigation of any other laws for the purpose of this Opinion Letter and do not express or imply any opinion in relation to any such laws. In particular, as Luxembourg qualified lawyers we are not qualified nor in a position to assess the meaning and consequences of the terms of the Transaction Documents under the relevant foreign governing or applicable law and we have made no investigation into such laws as a basis for the opinions expressed hereafter and do not express or imply any opinion thereon, including in relation to any implied terms, statutory provisions referred to therein or any other consequences arising from the entry into or performance under such Transaction Documents under such laws. Accordingly, our review of the Transaction Documents has been limited to the terms of such documents as they appear on the face thereof without reference to their respective governing laws or any other applicable law (other than Luxembourg law).

 

The opinions given in this Opinion Letter are given on the basis that it is governed by and construed in accordance with the laws of Luxembourg and will be subject to the jurisdiction of the courts of Luxembourg.

 

1.5                               Assumptions and Reservations

 

The opinions given in this Opinion Letter are given on the assumptions set out in Schedule 4 (Assumptions) and are subject to the reservations set out in Schedule 5 (Reservations). The opinions given in this Opinion Letter are strictly limited to the matters stated in paragraph 2 (Opinions) and do not extend to any other matters.

 

2.                                      OPINIONS

 

We are of the opinion that:

 

2.1                               Corporate existence

 

The Luxembourg Obligor is a company incorporated and existing in Luxembourg as a société à responsabilité limitée.

 

2.2                               Capacity and Authorisation

 

2.2.1                                The Luxembourg Obligor has the capacity and power to enter into the Credit Amendment Agreement and to perform its obligations under the Credit Amendment Agreement.

 

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2.2.2                                All necessary corporate action has been taken to enable the Luxembourg Obligor validly to enter into and to perform its obligations under the Credit Amendment Agreement.

 

2.3                               Due execution

 

If the Credit Amendment Agreement have been executed on behalf of the Luxembourg Obligor by one of its Authorised Signatories, the Luxembourg Obligors has duly executed the Credit Amendment Agreement.

 

2.4                               No conflict

 

Neither the execution nor the delivery by the Luxembourg Obligor of the Credit Amendment Agreement nor the performance by the Luxembourg Obligor of its obligations under the Credit Amendment Agreement constitute a violation of its Constitutional Documents.

 

2.5                               Legal, valid, binding and enforceable obligations

 

The obligations expressed to be assumed by the Luxembourg Obligor in the Credit Amendment Agreement would, if analysed by a Luxembourg court in proceedings commenced in Luxembourg, be recognised by a Luxembourg court as its legal, valid and binding obligations, enforceable in accordance with its terms.

 

2.6                               Governing law

 

The choice of the governing law expressed in the Credit Amendment Agreement will be recognised and given effect by the courts of Luxembourg (i) where the choice relates to contractual obligations, in accordance with, and subject to the provisions of the Rome I Regulation and (ii) if and to the extent the choice relates to non-contractual obligations in accordance with, and subject to the provisions of the Rome II Regulation and, in each case, in accordance with and subject to, the corresponding Luxembourg procedural and substantive law.

 

2.7                               Jurisdiction

 

The submission by the Luxembourg Obligor to the jurisdiction of the Relevant Courts contained in the Credit Amendment Agreement is valid and binding (upon its terms) and a final judgment obtained in the Relevant Courts on or in respect of the Credit Amendment Agreement will be recognised and enforced by the courts of Luxembourg in accordance with general provisions of Luxembourg procedural law for the enforcement of foreign judgments originating from countries which are not bound by Regulation 44/2001 and which are not parties to the Lugano Convention.

 

4

 

Pursuant to such rules, a Relevant Judgment would not directly be enforceable in Luxembourg. However, a Party who obtains a Relevant Judgment may initiate enforcement proceedings in Luxembourg (exequatur), by requesting the enforcement of such Relevant Judgment from the District Court (Tribunal d’Arrondissement), pursuant to Section 678 of the Luxembourg New Code of Civil Procedure. The District Court will authorise the enforcement in Luxembourg of the Relevant Judgment without re-examination of the merits, if it is satisfied that the following conditions are met:

 

(a)                                 the Relevant Judgment is enforceable (exécutoire) in the respective jurisdiction of the Relevant Courts;

 

(b)                                 the assumption of jurisdiction (compétence) of the Relevant Courts is founded according to Luxembourg private international law rules;

 

(c)                                  the Relevant Court has acted in accordance with its own procedural rules and has applied to the dispute the substantive law which would have been applied by Luxembourg courts;

 

(d)                                 the principles of fair trial and due process have been complied with and in particular the judgment was granted following proceedings where the counterparty had the opportunity to appear, and if appeared, to present a defence; and

 

(e)                                  the Relevant Judgment does not contravene Luxembourg public policy and has not been obtained fraudulently.

 

2.8                               No further acts

 

No further acts or conditions are required by Luxembourg law to be done, fulfilled and performed in order (a) to enable the Luxembourg Obligor lawfully to enter into, and perform the obligations expressed to be assumed by it in the Credit Amendment Agreement and (b) to make the Credit Amendment Agreement admissible in evidence in Luxembourg.

 

2.9                               Registration and documentary duties

 

It is not necessary that the Credit Amendment Agreement be filed, recorded or enrolled with any court or other authority in Luxembourg or that any stamp, registration or similar tax be paid on or in relation to the Credit Amendment Agreement.

 

5

 

2.10                        License to carry on business

 

It is not necessary under the laws of Luxembourg that the Collateral Agent be licensed, qualified or authorised to carry on business in Luxembourg (i) by reason of the execution of the Credit Amendment Agreement or (ii) in order to enable the Collateral Agent to enforce its rights under the Credit Amendment Agreement. This opinion does not apply to the Collateral Agent if it has its registered office, principal place of management, an establishment or a branch in Luxembourg or otherwise operating in this jurisdiction.

 

3.                                      [NO INSOLVENCY PROCEEDINGS

 

According to the Negative Certificate, no Judicial Decision opening Judicial Proceedings (including in particular bankruptcy (faillite), controlled management (gestion contrôlée), suspension of payments (sursis de paiement), arrangement with creditors (concordat préventif de la faillite) and judicial liquidation (liquidation judiciaire) proceedings) against the Luxembourg Obligor has been registered with the RCS on the date stated therein. The Negative Certificate does not indicate whether a Judicial Decision has been taken or a Judicial Proceeding has been opened. The registration of a Judicial Decision must be requested by the legally determined persons at the latest one month after the Judicial Decision has been rendered. As a consequence a delay exists between the moment where the event rendering the registration with the RCS necessary occurs and the actual registration of the Judicial Decision in the RCS. It may furthermore not be excluded that no registration has occurred during the legally prescribed period of one month if no request for registration has been made. As a consequence the Negative Certificate is not conclusive as to the opening and existence or not of Judicial Decisions or Judicial Proceedings and should not be relied upon as such. The Negative Certificate does, for the avoidance of doubt, not purport to indicate whether or not a petition or order for any of the Judicial Proceedings has been presented or made.](1)

 

4.                                      SCOPE OF OPINION

 

We have not been responsible for advising any party to the Transaction other than International Lease Finance Corporation and the delivery of this Opinion Letter to any person other than International Lease Finance Corporation does not evidence an existence of any such advisory duty on our behalf to such person.

 

(1)  To be included if the Luxembourg Obligor will have been registered with the Luxembourg RCS at the time of issuance of our legal opinion.

 

6

 

We express no opinion as to any taxation matters or transfer pricing matters generally or liability to tax which may arise or be suffered as a result of or in connection with the Transaction Documents or the Transaction other than as mentioned in paragraph 2.9 (Registration and documentary duties) or on the impact which any tax laws may have on the opinions expressed in this Opinion Letter.

 

No opinion (except to the extent expressly opined upon herein) is expressed or implied in relation to the accuracy of any representation or warranty given by or concerning any of the parties to the Transaction Documents or whether such parties or any of them have complied with or will comply with any covenant or undertaking given by them or any obligations binding upon them.

 

Except in as far as the entry by the Luxembourg Obligor into and the performance by the Luxembourg Obligor of its obligations under the Transaction Documents is concerned, we express no opinion on any applicable licensing or similar requirements.

 

This Opinion Letter does not contain any undertaking to update it or to inform the Addressees of any changes in the laws of Luxembourg or any other laws which would affect the content thereof in any manner.

 

5.                                      ADDRESSEES AND PURPOSE

 

This Opinion Letter is provided in connection with the satisfaction of the conditions precedent under Section 4 of the Credit Amendment Agreement and is addressed to and is solely for the benefit of the Addressees. It may not, without our prior written consent, be relied upon for any other purpose or be disclosed to or relied upon by any other person save that it may be disclosed without such consent to:

 

(a)                     any person to whom disclosure is required to be made by applicable law or court order or pursuant to the rules or regulations of any supervisory or regulatory body or in connection with any judicial proceedings;

 

(b)                     the officers, employees, auditors and professional advisers of any Addressee;

 

(c)                      any person, not otherwise an Addressee of this Opinion Letter, who (i) becomes a lender in accordance with the Facility Agreement or (ii) is a potential transferee or assignee of any lender, and their respective professional advisers,

 

on the basis that (i) such disclosure is made solely to enable any such person to be informed that an opinion has been given and to be made aware of its terms but not for the purposes of reliance, and (ii) we do not assume any duty or liability to any person 

 

7

 

to whom such disclosure is made and in preparing this opinion we only had regard to the interests of our client(s).

 

Yours faithfully,

 

CLIFFORD CHANCE

 

Marc MEHLEN

 

Avocat à la Cour

 

8

 

SCHEDULE 1 
 DEFINITIONS

 

“Authorised Signatories” means, in respect of the Luxembourg Obligor, the persons defined as such under the heading Board Resolutions in paragraph 2 of Schedule 3 (Documents).

 

“Board Resolutions” means, in respect of the Luxembourg Obligor, the board resolutions listed under the heading Board Resolutions in paragraph 2 of Schedule 3 (Documents).

 

“Constitutional Documents” means, in respect of the Luxembourg Obligor, the constitutional documents listed under the heading Constitutional Documents in paragraph 2 of Schedule 3 (Documents).

 

“Corporate Documents” means the documents listed in paragraph 2 of Schedule 3 (Documents).

 

[“Excerpt” means the excerpt listed under the headings Excerpt in paragraph 2 of Schedule 3 (Documents).]

 

“Financial Collateral Law” means the Luxembourg law dated 5 August 2005 on financial collateral arrangements, as amended.

 

“Judicial Decision” means any judicial decision opening Judicial Proceedings.

 

“Judicial Proceedings” means one of the judicial proceedings referred to in article 13, items 2 to 11 of the RCS Law, including in particular, bankruptcy (faillite), controlled management (gestion contrôlée), suspension of payments (sursis de paiement), arrangement with creditors (concordat préventif de la faillite) and judicial liquidation (liquidation judiciaire) proceedings.

 

“Law on Commercial Companies” means the Luxembourg law dated 10 August 1915 on commercial companies, as amended.

 

“Lender Parties” means any person which is a “Lender Party” under the Amended Credit Agreement as at the date of this Opinion Letter.

 

“Luxembourg” means the Grand Duchy of Luxembourg.

 

“Luxembourg Obligor” means the company specified in Schedule 2 (Luxembourg Obligor).

 

“Lugano Convention” means the Lugano Convention of 30 October 2007 on jurisdiction and enforcement of judgments in civil and commercial matters.

 

[“Negative Certificate” means the negative certificate listed under the heading Negative Certificate in paragraph 2 of Schedule 3 (Documents).]

 

9

 

“Other Party” means each party to the Transaction Documents other than the Luxembourg Obligor.

 

“Parties” means all of the parties to the Transaction Documents. “RCS” means the Luxembourg register of commerce and companies.

 

“RCS Law” means the Luxembourg law dated 19 December 2002 relating to the register of commerce and companies as well as the accounting and the annual accounts of companies, as amended.

 

“Relevant Courts” means (i) any New York State court or federal court of the United States of America sitting in New York County and (ii) any appellate court from any thereof.

 

“Relevant Judgment” means an enforceable judgment rendered by a Relevant Court.

 

“Regulation 1346/2000” means Council Regulation (EC) No 1346/2000 of 29 May 2000 on insolvency proceedings.

 

“Regulation 44/2001” means Council Regulation (EC) No 44/2001 of 22 December 2000 on jurisdiction and the recognition and enforcement of judgements in civil and commercial matters.

 

“Rome I Regulation” means Council Regulation (EC) No 593/2008 of 17 June 2008 on the law applicable to contractual obligations.

 

“Rome II Regulation” means Council Regulation (EC) No 864/2007 of 11 July 2007 on the law applicable to non-contractual obligations.

 

“Transaction Documents” means the Credit Amendment Agreement and the Amended Credit Agreement.

 

10

 

SCHEDULE 2 
 LUXEMBOURG OBLIGOR

 

Delos Finance S.à r.l. a société à responsabilité limitée having its registered office at 46A, Avenue J.F. Kennedy, L-1855 Luxembourg and [registered with the RCS under number B [...] / whose registration with the RCS is currently pending] (“Luxembourg Obligor”).

 

11

 

SCHEDULE 3 
 DOCUMENTS

 

We have reviewed only the following documents for the purposes of this Opinion Letter.

 

1.                                      TRANSACTION AND ANCILLARY DOCUMENTS

 

Execution copies of each of the Transaction Documents.

 

2.                                      CORPORATE DOCUMENTS

 

2.1                               Relating to the Luxembourg Obligor:

 

(a)                                 Constitutional Documents

 

A copy of a notarial deed of incorporation dated 26 February 2014 and containing its initial articles of association.

 

(b)                                 Board Resolutions

 

A copy of the minutes of the meeting of its board of managers held on [...] 2014 and during which its board of managers has adopted resolutions approving the terms of the Credit Amendment Agreement and authorising [...], acting individually (the “Authorised Signatories”) to execute those documents on its behalf.

 

(c)                                  [Excerpt

 

An excerpt from the RCS dated [...] 2014.

 

(d)                                 Negative Certificate

 

A certificate from the RCS dated [...] 2014 stating that as of [...] 2014, no Judicial Decision has been registered with the RCS by application of article 13, items 2 to 11 and 13 and article 14 of the RCS Law, according to which the Luxembourg Obligor would be subject to Judicial Proceedings.](1)

 

(1)  To be included only if the Luxembourg company is registered with the Luxembourg RCS

 

12

 

SCHEDULE 4 
 ASSUMPTIONS

 

The opinions expressed in this Opinion Letter have been made on the following assumptions which are made both on the date of this Opinion Letter and on the date where the Transactions Documents have been entered into and for any time period in between such dates.

 

1.                                      ORIGINAL AND GENUINE DOCUMENTATION

 

(a)                                 All signatures are genuine, all original documents are authentic and all copy documents are complete and conform to the originals.

 

(b)                                 The legal capacity of all managers and any other authorised signatories.

 

(c)                                  Any Transaction Document listed in Schedule 3 (Documents) has been duly executed on the date specified in that document by all parties to it.

 

(d)                                 The Transaction Documents have been executed in the form of the execution copies reviewed by us.

 

2.                                      OTHER PARTIES

 

(a)                                 Each Other Party is duly incorporated or organised and validly existing.

 

(b)                                 Each Other Party has validly entered into the Transaction Documents to which it is a party.

 

3.                                      FOREIGN LAWS

 

(a)                                 All obligations under the Transaction Documents are valid, legally binding upon, validly perfected where required, and enforceable against, the Parties as a matter of all relevant laws (other than, but only to the extent opined upon herein, the laws of Luxembourg), most notably the expressed governing law, and the choice of such governing law is valid and enforceable as a matter of that governing law and all other laws (other than, but only to the extent opined upon herein, Luxembourg law), and there is no provision of the laws of any relevant jurisdiction (other than, but only to the extent opined upon herein, Luxembourg) that would have a bearing on the foregoing.

 

(b)                                 All acts, conditions or things required to be fulfilled, performed or effected in connection with the Transaction Documents under the laws of any jurisdiction other than Luxembourg have been duly fulfilled, performed and effected.

 

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(c)                                  There are no provisions of the laws of any jurisdiction other than Luxembourg that would adversely affect the opinions expressed in this Opinion Letter.

 

4.                                      CORPORATE MATTERS

 

(a)                                 There have been no amendments to the Constitutional Documents.

 

(b)                                 [The Excerpt is true, accurate and up to date both on the date of this Opinion and on the date on which the Board Resolutions have been adopted.]

 

(c)                                  [The Negative Certificate is correct and up-to-date] and all decisions and acts, the publication of which is required by applicable laws (including the RCS Law and the Law on Commercial Companies) have been duly registered within the applicable legal time periods with the RCS.

 

(d)                                 The Board Resolutions have been validly taken and all statements made therein are true, accurate and up-to-date.

 

(e)                                  The Board Resolutions, including the powers granted therein, have not been amended or rescinded and are in full force and effect.

 

(f)                                   The Luxembourg Obligor is not subject to bankruptcy (faillite), controlled management (gestion contrôlée), suspension of payments (sursis de paiement), arrangement with creditors (concordat préventif de la faillite), court ordered liquidation (liquidation judiciaire) or reorganisation, voluntary dissolution or liquidation (dissolution ou liquidation volontaire) or any similar procedure affecting the rights of creditors generally, whether under Luxembourg or any other law.

 

(g)                                  The place of the central administration (siège de l’administration centrale or siège de direction effective) and the centre of main interests of the Luxembourg Obligor is located at its registered office (siège statutaire) in Luxembourg and it has no establishment outside Luxembourg (each such terms as defined respectively in the Regulation 1346/2000 or domestic Luxembourg law including Luxembourg tax law and any relevant double tax treaties concluded by Luxembourg).

 

(h)                                 The entry into, the execution of and the performance under the Transaction Documents is in the corporate interest of the Luxembourg Obligor.

 

(i)                                     The Parties entered into the Transaction Documents with bona fide commercial intent, at arm’s length and without any fraudulent intent or any intention to deprive of any benefit any other persons or parties (including creditors) or to

 

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breach or circumvent any applicable mandatory laws or regulations of any jurisdiction.

 

5.                                      NO OTHER DOCUMENTS

 

Save for those listed in Schedule 3 (Documents), there is no other agreement, instrument or other arrangement between any of the Parties which modifies or supersedes any of the Transaction Documents.

 

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SCHEDULE 5 
 RESERVATIONS

 

The opinions expressed in this Opinion Letter are subject to the following reservations.

 

1.                                      LIMITATIONS ARISING FROM INSOLVENCY LAW

 

The rights and obligations of the Parties under the Transaction Documents may be limited and the opinions expressed in this Opinion Letter may be affected by general principles and specific provisions of bankruptcy, insolvency, liquidation, reorganisation, reconstruction or other laws affecting the enforcement of creditors’ rights generally. In particular, but without limitation, it is to be noted that:

 

(a)                                 during a gestion contrôlée (controlled management) procedure under the Grand-Ducal decree dated 24 May 1935 on the procedure of gestion contrôlée, the rights of secured creditors are frozen until a final decision has been taken by the court as to the petition for controlled management and may be affected thereafter by any reorganisation order given by the competent court. Furthermore, declarations of default and subsequent acceleration (such as an acceleration upon the occurrence of an event of default) will not be enforceable against reorganisation or liquidation orders given by a court, subject in each case to any exceptions established under Regulation 1346/2000 where applicable;

 

(b)                                 the effects of Luxembourg insolvency proceedings opened over a Luxembourg Obligor by a Luxembourg court would apply to all assets wherever situated, including assets located or deemed to be located outside Luxembourg, (except insofar Regulation 1346/2000 establishes any exceptions) and as a matter of Luxembourg law, the Luxembourg bankruptcy receiver appointed by the Luxembourg court would be empowered to take control over all assets of the Luxembourg Obligor wherever situated, including property located abroad, upon the conditions and to the extent provided for under Luxembourg insolvency laws and, with respect to the scope of Regulation 1346/2000, upon the terms thereof;

 

(c)                                  restrictions on the enforcement of its rights against other Obligors imposed on the Luxembourg Obligor may cease to be effective upon the bankruptcy of the Luxembourg Obligor;

 

(d)                                 the powers of any receivers appointed by virtue of any of the Transaction Documents would not be recognised by Luxembourg courts;

 

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(e)                                  any power of attorney and mandate, as well as any other agency provisions granted and all appointments of agents made by the Luxembourg Obligor (including any appointments made by way of security), explicitly or by implication, will terminate by law and without notice upon the Luxembourg Obligor’s bankruptcy (faillite) or judicial winding-up (liquidation judiciaire), and become ineffective upon the Luxembourg Obligor entering controlled management and suspension of payments (gestion contrôlée et sursis de paiement) (in both cases except in very limited circumstances); and

 

(f)                                   the filing of claims and the taking of actions by a party on behalf of the Secured Parties or other Parties may require the execution of additional documentation, such as, in case of the filing of a proof of claim in insolvency proceedings, a specific power of attorney.

 

2.                                      ENFORCEABILITY OF CLAIMS

 

(a)                                 The rights and obligations of the Parties under the Transaction Documents may be limited by general principles of criminal law, including but not limited to criminal freezing orders.

 

(b)                                 Periods of grace for the performance of its obligations may be granted by the courts to a debtor who has acted in good faith.

 

(c)                                  Rights may not be exercised in an abusive manner, and a Party may be denied the right to invoke a contractual right if so doing was abusive.

 

(d)                                 Specific creditors benefit from privileged rights by virtue of Luxembourg law and may take precedence over the rights of other secured or unsecured creditors. For instance, the Luxembourg tax authorities, the Luxembourg social security institutions and the salaried employees benefit from a general privilege over movables in relation to specific claims determined by law; this general privilege in principle takes precedence over the privilege of any other secured creditors.

 

(e)                                  The remuneration of an agent or intermediary may be subject to review and reduction by a Luxembourg court if considered excessive in light of the circumstances.

 

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(f)                                   Whilst, in the event of any proceedings being brought in a Luxembourg court in respect of a monetary obligation expressed to be payable in a currency other than Euro, a Luxembourg court would have power to give judgement expressed as an order to pay a currency other than Euro, enforcement of the judgement against any Party in Luxembourg would be available only in Euro and for such purposes all claims or debts would be converted into Euro.

 

(g)                                  A contractual provision conferring or imposing a remedy, an obligation or penalty consequent upon default may not be fully enforceable if it were construed by a Luxembourg court as constituting an excessive pecuniary remedy.

 

(h)                                 Limitation of liability clauses will not be enforceable in case of willful default or gross negligence, or where the obligation that has been improperly performed was the central obligation (obligation essentielle) of the person protected by the limitation of liability clause.

 

(i)                                     Insofar as the laws of Luxembourg are concerned, provisions in the Transaction Documents relating to the transfer or assignment of rights and obligations may require the execution of further documentation in order to be fully effective, as well as to ensure the transfer of any security interests attaching to the rights or obligations to be transferred or assigned.

 

(j)                                    The enforcement of the Transaction Documents and the rights and obligations of the Parties will be subject to the general statutory principles of Luxembourg law; remedies such as specific performance, the issue of an injunction or the termination for breach of contract are discretionary. Notwithstanding any agreement purporting to confer the availability of any remedy, such remedy may not be available where damages instead of specific performance or specific performance instead of termination for breach of contract are considered by the court to be an adequate alternative remedy. The enforcement of rights and obligations in an action before the Luxembourg courts is subject to Luxembourg rules of civil and commercial procedure.

 

(k)                                 Provisions of the Transaction Documents providing for interest being payable in specified circumstances on due and payable interest may not be enforceable against the Luxembourg Obligor before a Luxembourg court even if they are valid under the respective governing law.

 

(l)                                     Claims may become barred under the statute of limitations or may be or become subject to defences of set-off or counterclaim.

 

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(m)                             We express no opinion on the validity or enforceability of waivers granted for future rights or claims.

 

(n)                                 Provisions according to which the Collateral Agent is authorised to sue on behalf of the Luxembourg Obligor may not be enforceable.

 

(o)                                 A power of attorney governed by Luxembourg law and expressed to be irrevocable or any power of attorney (including if granted by way of security) expressed to be irrevocable and granted by or on behalf of the Luxembourg Obligor may as a matter of Luxembourg law (which a court may also apply to powers granted by or on behalf of the Luxembourg Obligor under foreign law), be subject to revocation or termination by or on behalf of the grantor despite its being expressed to be irrevocable, which causes the withdrawal of all powers to act on behalf of the grantor of the power of attorney.

 

(p)                                 The right of a Party to recover attorney’s fees or other fees relating to the exercise or defence of its rights may be subject to limitations or may not be enforceable in accordance with its terms before a Luxembourg court or in Luxembourg court or enforcement proceedings.

 

(q)                                 Luxembourg courts may refuse to recognise the validity and enforceability of the powers of any receiver appointed by virtue of any of the Transaction Documents or of any action taken by such receiver on behalf of a Luxembourg Obligor.

 

3.                                      TAXATION

 

(a)                                 In case of court proceedings in a Luxembourg court, or the presentation of the Transaction Documents to an autorité constituée in Luxembourg, such court or autorité constituée may require registration of the Transaction Documents or any agreements referred to therein, in which case such agreements and any agreement referred to therein will be subject to (depending on the nature of the agreements) ad valorem (such as for instance a registration duty of 0.24% calculated on the amounts mentioned in those agreements) or fixed (such as for instance a fixed duty of 12€ for a pledge) registration duties, such duties being payable by the Party being ordered to register them.

 

4.                                      CORPORATE MATTERS

 

(a)                                 By application of Article 203 of the Law on Commercial Companies, a company not respecting any provision of Luxembourg criminal law or the Luxembourg law applicable to commercial companies may be put into judicial dissolution and liquidation upon the application of the public prosecutor.

 

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(b)                                 The Constitutional Documents (as well as any other documents relating to the Luxembourg Obligor the publication of which is required by law) will only be enforceable against third parties after they have been published in the Mémorial C, except where such third parties have knowledge thereof, whereas however third parties may rely thereon prior to such publication. For the 15 days following the publication, such documents would not be enforceable against third parties who prove that it was impossible for them to have knowledge thereof.

 

(c)                                  A company which has been incorporated, but whose articles of association adopted upon incorporation have not yet been published in the Mémorial C will not be entitled to start any legal proceedings as plaintiff until such publication has been made.

 

5.                                      GOVERNING LAW

 

(a)                                 The Luxembourg courts would not apply a chosen foreign law if:

 

(i)                                     the choice was not made bona fide, or

 

(ii)                                  the foreign law was not pleaded and proved, or

 

(iii)                               if pleaded and proved, such foreign law would be contrary to the mandatory rules of Luxembourg law or manifestly incompatible with Luxembourg public policy or public order.

 

(b)                                 A Luxembourg court may refuse to apply the chosen governing law in the following cases:

 

(i)                                     where all other elements relevant to the situation at the time that the Transaction Documents were entered into are located in a country other than the country of the chosen governing law, to the extent the Parties’ choice of governing law affects the application of the provisions of the law of that other country which cannot be derogated from by agreement, which the court may then apply;

 

(ii)                                  where all other elements relevant to the situation at the time that the Transaction Documents were entered into are located in one or more Member States of the European Union and where the chosen law is not the one of a Member State, it may apply the provisions of EU law, where appropriate as implemented in Luxembourg, which cannot be derogated from by agreement;

 

20

 

(iii)                               if the overriding mandatory provisions (lois de police) of the law of the country where the obligations arising out of the Transaction Documents have to be or have been performed, render the performance of the Transaction Documents unlawful in such country, in which case it may apply such overriding mandatory provisions taking into account (in deciding such application) the nature and object of such laws, as well as the consequences of its application or non-application;

 

(iv)                              regarding the means of enforcement and measures to be taken by a creditor in case of a default in performance, it may apply the law of the country in which performance is taking place; or

 

(v)                                 if a Party is subject to insolvency proceedings, in which case it would apply the insolvency laws of the jurisdiction in which such insolvency proceedings have been regularly opened to the effects of such insolvency except to the extent any exceptions are established by Regulation 1346/2000.

 

(c)                                  We express no opinion on any choice of law provisions in the Transaction Documents relating to contractual obligations that do not fall within the scope of the Rome I Regulation and to non-contractual obligations that do not fall within the scope of the Rome II Regulation.

 

(d)                                 The determination of the governing law and the recognition of trusts by Luxembourg courts (whether or not one or more elements of the trust relationship or trust assets are located in Luxembourg) will be made in accordance with the Convention dated 1 July 1985 on the law applicable to trusts and their recognition (ratified by a law dated 27 July 2003 on trusts and fiduciary contracts) (the “Hague Trusts Convention”), to the extent the relevant trust comes within the scope thereof. The law chosen by the parties will in principle be recognised as governing law, and the effects of the trust (in particular the segregation of trust assets) will be recognised in accordance with the Hague Trusts Convention, subject to the exceptions established therein, including the non-recognition of the chosen governing law if the situation has a closer link with another jurisdiction which does not recognise trusts, the application of mandatory laws of Luxembourg and other jurisdictions in the matters referred to in Article 15 of the Hague Trusts Convention and the general exception of public order. In relation to the provision of any Transaction Document providing that the Luxembourg Obligor shall hold on trust certain assets received, the non-recognition of the trust under Luxembourg law would cause the purported beneficiaries to only have an

 

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unsecured claim against the Luxembourg Obligor, which claim will rank pari passu with the claims of other unsecured creditors of the Luxembourg Obligor.

 

6.                                      JURISDICTION

 

(a)                                 A Luxembourg court may stay proceedings if concurrent proceedings are being brought elsewhere.

 

(b)                                 Designation of jurisdiction of courts in the interest of one Party or one group of Parties only will not prevent those Parties from bringing actions in any other court of competent jurisdiction or concurrently in more than one jurisdiction.

 

(c)                                  In a decision dated 26 September 2012, the French Cour de Cassation has denied effect to a jurisdiction clause (in a form similar to the one in the Transaction Documents), which gives exclusive jurisdiction to one court but allows one of the parties to bring actions in other courts, as being contrary to the object and the finality of the prorogation of jurisdiction (prorogation de compétence) of Article 23 of Regulation 44/2001. While Luxembourg case- law has recognised the validity and enforceability of such jurisdiction clauses in the past (under the convention on jurisdiction and the enforcement of judgments in civil and commercial matters dated 27 September 1968, as amended), some uncertainty has arisen (even outside France) as to the validity and effectiveness of such clauses under Regulation 44/2001 as a result of the French decision. If a Luxembourg court would adopt the same approach, the jurisdiction clause would be ineffective and normal rules of jurisdiction would apply.

 

If such an approach was followed by Luxembourg courts in relation to the interpretation of Regulation 44/2001, it cannot be excluded that a similar approach would be adopted by them in relation to jurisdiction clauses outside the scope of application of Regulation 44/2001

 

(d)                                 The president of a competent court in Luxembourg, in any matter in which the plaintiff seeks provisional measures in summary proceedings (référé) or a permission to levy a prejudgement attachment (autorisation de saisie-arrêt conservatoire), may assume jurisdiction, on the basis of the general provisions of Luxembourg law, in connection with assets located in Luxembourg notwithstanding the aforementioned submission to the jurisdiction of the courts of other countries, and such action would be governed by Luxembourg law.

 

(e)                                  Jurisdiction clauses would not be enforceable in or binding on a Luxembourg court in relation to actions brought for non-contractual claims.

 

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7.                                      OTHER MATTERS

 

(a)                                 A contractual provision allowing the service of process against the Luxembourg Obligor or any other third party appointed to such effect could be overridden by Luxembourg statutory provisions allowing the valid service of process against the Luxembourg Obligor in accordance with applicable laws at their registered office. A provision allowing any other party to appoint a replacement process agent instead of the Luxembourg Obligor would most likely not be enforceable in or the effects thereof recognised by a Luxembourg court.

 

(b)                                 We express no opinion on any notification obligation to the Banque Centrale de Luxembourg for statistical purposes which may arise from any payments under the Transaction Documents.

 

(c)                                  The admissibility as evidence of the Transaction Documents before a Luxembourg court or public authority to which the Transaction Documents are produced will require that the Transaction Documents be accompanied by a complete or partial translation into French or German and a Luxembourg court may always require that the parties produce the original of a Transaction Document on the basis of which a claim is made.

 

(d)                                 A discretion established in favour of one Party by any of the Transaction Documents will have to be exercised in a reasonable manner.

 

(e)                                  With respect to provisions under which determination of circumstances or certification by any Party is stated or implied to be conclusive and binding upon the Luxembourg Obligor, a Luxembourg court would be authorised to examine whether such determination occurred in good faith and may nevertheless request a Party to provide further evidence.

 

(f)                                   All rights and obligations arising under the Transaction Documents involving (i) the government of any country which is currently the subject of United Nations, the European Union or any other applicable sanctions (an “Affected Country”), (ii) any person or body resident in, incorporated in or constituted under the laws of any Affected Country, (iii) any person or body controlled by any of the foregoing, (iv) any person or body exercising public functions in any Affected Country or (v) any person or body being itself subject of United Nations, the European Union or any other applicable sanctions may be subject to restrictions pursuant to such sanctions as implemented in Luxembourg law.

 

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(g)                                  A severability clause may be ineffective if a Luxembourg court considers that the illegal, invalid or unenforceable clause was a substantive or material clause.

 

*                                         *

 

*

 

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EXHIBIT F
 FORM OF OPINION OF NAUTADUTILH

 

 

ADVOCATEN · NOTARISSEN · BELASTINGADVISEURS

 

	
P.O. Box   7113 

1007   JC Amsterdam 

Strawinskylaan   1999 

1077   XV Amsterdam 

T   +31 20 71 71 000 

F   +31 20 71 71 111
    	
ND   Draft March 18, 2014, Subject to Internal Approval and to review of   documents

Rotterdam,   [date] 

 

Deutsche   Bank AG New York Branch in its capacity as Collateral Agent and Administrative   Agent under the Credit Agreement (as defined herein) 

 

Deutsche   Bank Securities Inc. and Goldman Sachs Bank USA as Joint Lead Arrangers under   the Credit Agreement 

 

The   Lenders as defined in and party to the Credit Agreement on the date of this   opinion letter
    
	
 
    	
 
    
	
 
    	
Ladies   and Gentlemen:
    
	
 
    	
 
    
	
 
    	
Re:   First Amendment to Term Loan Credit Agreement - AerCap Holdings N.V. and   AerCap Aviation Solutions B.V.
    
	
 
    	
 
    
	
 
    	
This   opinion letter is rendered to you at your request in connection with the   Credit Agreement (as defined below).
    
	
 
    	
 
    
	
 
    	
Capitalised   terms used in this opinion letter have the meanings set forth in Ex-hibit A.   The section headings used in this opinion letter are for convenience of   reference only and are not to affect its construction or to be taken into consideration   in its interpretation.
    
	
 
    	
 
    
	
 
    	
This   opinion letter is addressed solely to you. It may only be relied upon by you   in connection with the Credit Agreement. It does not purport to address all   matters of Netherlands law that may be of relevance to you with respect to   the Credit Agreement. This opinion letter is strictly limited to the matters   stated in it and may not be read as extending by implication to any matters   not specifically re-ferred to in it. Nothing in this opinion letter should be   taken as expressing an opinion in respect of any representations or   warranties, or other information, contained in the Loan Documents or any   other document reviewed in connection with this opinion letter, except as   expressly confirmed in this opinion letter. Its
    
	
Amsterdam   

 

Brussels   

 

London   

 

Luxemburg   

 

New   York 

 

Rotterdam
    	
This   communication is confidential and may be subject to professional privilege.   All legal relation-ships are subject to NautaDutilh N.V.’s general terms and   conditions (see www.nautadutilh.com/terms), which apply mutatis mutandis to   our relationship with third parties relying on statements of NautaDutilh   N.V., include a limitation of liability clause, have been filed with the   Rotterdam District Court and will be provided free of charge upon request.   NautaDutilh N.V.; corporate seat Rotterdam; trade register no. 24338323.
    
			

 

 

	
 
    	
contents   may not be quoted, otherwise included, summarised or referred to in any   publication or document or disclosed to any other party, in whole or in part,   for any purpose, without our prior written consent.
    
	
 
    	
 
    
	
 
    	
In   rendering the opinions expressed in this opinion letter, we have exclusively   reviewed and relied upon the Loan Documents and the Corporate Documents and   we have assumed that the Credit Agreement was entered into for bona fide   commercial reasons. We have not investigated or verified any factual matter   disclosed to us in the course of our review.
    
	
 
    	
 
    
	
 
    	
We   have not been involved in structuring, drafting or negotiating the Credit   Agreement.
    
	
 
    	
 
    
	
 
    	
This   opinion letter sets out our opinion on certain matters of the laws with   general applicability of the Netherlands, and, insofar as they are directly   applicable in the Netherlands, of the European Union, as at today’s date and   as presently interpreted under published authoritative case law of the   Netherlands courts, the General Court and the Court of Justice of the   European Union. We do not express any opinion on tax law. No undertaking is   assumed on our part to revise, update or amend this opinion letter in   connection with or to notify or inform you of, any developments and/or   changes of Netherlands law subsequent to today’s date.
    
	
 
    	
 
    
	
 
    	
The   opinions expressed in this opinion letter are to be construed and interpreted   in accordance with Netherlands law. This opinion letter may only be relied   upon by you, and our willingness to render this opinion letter is based, on   the condition that you accept and agree that (i) the competent courts at   Amsterdam, the Netherlands have exclusive jurisdiction to settle any issues   of interpretation or liability arising out of or in connection with this   opinion letter, (ii) all matters related to the legal relationship   between yourself and NautaDutilh, including the above submission to   jurisdiction, are governed by Netherlands law and (iii) no person other   than NautaDutilh may be held liable in connection with this opinion letter.
    
	
 
    	
 
    
	
 
    	
In   this opinion letter, legal concepts are expressed in English terms. The   Nether- lands legal concepts concerned may not be identical in meaning to the   concepts described by the English terms as they exist under the law of other   jurisdictions. In the event of a conflict or inconsistency, the relevant   expression shall be deemed to refer only to the Netherlands legal concepts   described by the English terms.
    
	
 
    	
 
    
	
 
    	
For   the purposes of this opinion letter, we have assumed that:
    

 

2

 

	
 
    	
a.           each copy of a document conforms to the original, each   original is authentic, and each signature is the genuine signature of the   individual purported to have placed that signature;
    
	
 
    	
 
    
	
 
    	
b.           no defects attach to the incorporation of the   Netherlands Companies (aan hun totstandkoming   geen gebreken kleven);
    
	
 
    	
 
    
	
 
    	
c.           (i) no regulations (reglementen)   have been adopted by any corporate body of any Netherlands Company, other   than the Board Regulations, and (ii) the Articles of Association of each   Netherlands Company are its articles of association currently in force. Item   (i) of this assumption is supported by the confirmation in this respect   as included in the Resolutions, and the Extracts support item (ii) of   this assumption;
    
	
 
    	
 
    
	
 
    	
d.           none of the Netherlands Companies has (i) been   dissolved (ontbonden), (ii) ceased to   exist pursuant to a merger (fusie) or a   division (splitsing), (iii) been converted (omgezet) into another legal form, either national or   foreign, (iv) had its assets placed under administration (onder bewind gesteld), (v) been declared bankrupt (failliet verklaard), granted a sus-pension of payments (surseance van betaling verleend) or subjected to emergency   regulations (noodregeling) on the basis of   Article 3:160 NFSA, (vi) been subjected to the appointment of an   administrator (cura-tor) in respect of any of   its bodies or representatives on the basis of Article 1:76 NFSA, or   (vii) been made subject to similar proceedings in any jurisdiction or   otherwise been limited in its power to dispose of its assets. The Extracts   and our inquiries of today with the Insolvency Registers support the items   (i) through (v) of this assumption. However, this information does   not constitute conclusive evidence that the events set out in items   (i) through (v) have not occurred;
    
	
 
    	
 
    
	
 
    	
e.           the resolutions recorded in the Resolutions are in full   force and effect, and the factual statements made and the confirmations given   in the Resolutions are complete and correct;
    
	
 
    	
 
    
	
 
    	
f.            no works council (ondernemingsraad)   has been established or is in the process of being established with respect   to the business of the Nether- lands Companies. This assumption is supported   by the confirmation in this respect as included in the Resolutions of the   managing board of the Netherlands Companies;
    

 

3

 

	
 
    	
g.                                  the Amendment   Agreement has been signed on behalf of each Netherlands Company by one of its   Attorneys;(1)
    
	
 
    	
 
    
	
 
    	
h.                                 none of the   management board members (bestuurders)   have a direct or indirect personal interest which conflicts with the interest   of the Nether- lands Companies and in entering into the Credit Agreement.   This assumption is supported by the confirmation in this respect as included   in the Resolutions;
    
	
 
    	
 
    
	
 
    	
i.                                     each Power of   Attorney (i) is in full force and effect, and (ii) under any   applicable law other than Netherlands law, validly authorises the person or   persons purported to be granted power of attorney, to represent and bind the   relevant Netherlands Company vis-à-vis the other parties to the Amendment   Agreement with regard to the transactions contemplated by and for the   purposes stated in the Amendment Agreement; and
    
	
 
    	
 
    
	
 
    	
j.                                    under any   applicable law (other than, in relation to the Netherlands Companies,   Netherlands law) (i) the Credit Agreement constitutes the legal, valid   and binding obligations of the persons expressed to be a party there- to,   enforceable against them in accordance with their terms and (ii) the   choice of law clause and the jurisdiction clause contained in the Credit   Agreement constitute a legal, valid and binding choice of law and sub-   mission to jurisdiction.
    
	
 
    	
 
    
	
 
    	
Based   upon and subject to the foregoing and subject to the qualifications set forth   in this opinion letter and to any matters, documents or events not disclosed   to us, we express the following opinions:
    
	
 
    	
 
    
	
 
    	
Corporate Status
    
	
 
    	
 
    
	
 
    	
1.                                 The   Netherlands Companies have been duly incorporated and are validly existing.
    
	
 
    	
 
    
	
 
    	
Corporate Power
    
	
 
    	
 
    
	
 
    	
2.                                 The   Netherlands Companies have the corporate power to enter into the Credit   Agreement and to perform their obligations thereunder. The Netherlands   Companies do not violate any provision of their Articles of
    

 

	
 
    	
(1)    This assumption can be deleted if the signature page of the Credit   Agreement clearly states who will sign the Credit Agreement.
    

 

4

 

	
 
    	
Association   by entering into the Credit Agreement or performing their obligations   thereunder.
    
	
 
    	
 
    
	
 
    	
Corporate Action
    
	
 
    	
 
    
	
 
    	
3.                                 The   Netherlands Companies have taken all corporate action required by their   Articles of Association and Netherlands law in connection with entering into   the Credit Agreement and the performance of their obligations thereunder.
    
	
 
    	
 
    
	
 
    	
Valid Signing
    
	
 
    	
 
    
	
 
    	
4.                                 The Amendment   Agreement has been validly signed on behalf of the Netherlands Companies.
    
	
 
    	
 
    
	
 
    	
Choice of Law
    
	
 
    	
 
    
	
 
    	
5.                                 The   Netherlands courts will recognise and give effect to the choice of the laws   of the State of New York to govern the contractual obligations of the   Netherlands Companies under the Credit Agreement.
    
	
 
    	
 
    
	
 
    	
No Violation of Law
    
	
 
    	
 
    
	
 
    	
6.                                 The entering   into of the Credit Agreement by the Netherlands Companies does not in itself   result in a violation of Netherlands law that would affect the enforceability   of the Credit Agreement against them in the Netherlands.
    
	
 
    	
 
    
	
 
    	
No Authorisations, Consents or Approvals
    
	
 
    	
 
    
	
 
    	
7.                                 No   authorisation, consent, approval, licence or order from or notice to or   filing with any regulatory or other authority or governmental body of the   Netherlands is required by the Netherlands Companies in connection with their   entering into the Credit Agreement or the performance of their contractual   obligations thereunder, which, if not obtained or made, would affect the   enforceability of the Credit Agreement against them in the Netherlands.
    
	
 
    	
 
    
	
 
    	
Jurisdiction
    
	
 
    	
 
    
	
 
    	
8.                                 The   submission by the Netherlands Companies in the Credit Agreement to the   jurisdiction of any New York State court or federal court of the United   States of America sitting in New York County, and any appellate court from   any thereof, will be recognised and given effect to by the
    

 

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Netherlands   courts.
    
	
 
    	
 
    
	
 
    	
Enforcement of U.S. judgments
    
	
 
    	
 
    
	
 
    	
9.                                 There is no   enforcement treaty between the Netherlands and the United States.   Consequently, a judgment of a U.S. court cannot be enforced in the Netherlands.   In order to obtain a judgment in respect of the Credit Agreement that can be   enforced in the Netherlands against the Nether-lands Companies, the dispute   will have to be re-litigated before the com-petent Netherlands court. This   court will have discretion to attach such weight to the judgment of a U.S.   court as it deems appropriate. Given the submission by the Netherlands   Companies to the jurisdiction of certain U.S. courts, the Netherlands courts   can be expected to give conclusive effect to a final and enforceable judgment   of such court in respect of the contractual obligations under the Credit   Agreement without re- examination or re-litigation of the substantive matters   adjudicated upon. This would require (i) proper service of process to   have been given, (ii) the proceedings before such court to have complied   with principles of proper procedure (behoorlijke   rechtspleging), and (iii) such judgment not being contrary to   the public policy of the Netherlands.
    
	
 
    	
 
    
	
 
    	
No Immunity
    
	
 
    	
 
    
	
 
    	
10.                          The   Netherlands Companies cannot claim immunity from the enforcement of judgments   of the competent Netherlands courts.
    
	
 
    	
 
    
	
 
    	
The   opinions expressed above are subject to the following qualifications:
    
	
 
    	
 
    
	
 
    	
A.                               As   Netherlands lawyers we are not qualified or able to assess the true meaning   and purport of the terms of the Credit Agreement under the applicable law and   the obligations of the parties to the Credit Agreement and we have made no   investigation of that meaning and purport. Our re-view of the Loan Documents   and of any other documents subject or ex-pressed to be subject to any law   other than Netherlands law has therefore been limited to the terms of these   documents as they appear to us on their face.
    
	
 
    	
 
    
	
 
    	
B.                               The   information contained in the Extracts does not constitute conclusive evidence   of the facts reflected in it.
    
	
 
    	
 
    
	
 
    	
C.                               Pursuant to   Article 2:7 NCC, any transaction entered into by a legal entity may be   nullified by the legal entity itself or its liquidator in
    

 

6

 

	
 
    	
bankruptcy   proceedings (curator) if the objects of that   entity were transgressed by the transaction and the other party to the   transaction knew or should have known this without independent investigation   (wist of zonder eigen onderzoek moest weten).   The Netherlands Supreme Court (Hoge Raad der   Nederlanden) has ruled that in determining whether the objects of   a legal entity are transgressed, not only the description of the objects in   that legal entity’s articles of association (statuten)   is decisive, but all (relevant) circumstances must be taken into account, in   particular whether the interests of the legal entity were served by the   transaction. Based on the objects clause contained in the Articles of   Association, we have no reason to believe that by entering into the Credit   Agreement any Netherlands Companies would transgress the description of the   objects contained in their Articles of Association. However, we cannot assess   whether there are other relevant circumstances that must be taken into   account, in particular whether the interests of the Netherlands Companies are   served by entering into the Credit Agreement since this is a matter of fact.
    
	
 
    	
 
    
	
 
    	
D.                               Pursuant to   Article 2:98c NCC, a naamloze vennootschap   may grant loans (leningen verstrekken)   only in accordance with the restrictions set out in Article 2:98c NCC,   and may not provide security (zekerheid stellen),   give a price guarantee (koersgarantie geven)   or otherwise bind itself, whether jointly and severally or otherwise with or   for third parties (zich op andere wijze   sterk maken of zich hoofdelijk of anderszins naast of voor anderen verbinden)   with a view to (met het oog op) the   subscription or acquisition by third parties of shares in its share capital   or depository receipts. This prohibition also applies to its subsidiaries (dochtervennootschappen). It is generally assumed that a   transaction entered into in violation of Article 2:98c NCC is null and   void (nietig).
    
	
 
    	
 
    
	
 
    	
E.                                Despite any   generally recognised choice of law clause contained in the Credit Agreement a   court in the Netherlands may (a) apply overriding mandatory provisions   of (i) the Netherlands and (ii) the law of the country where the   obligations arising out of the Credit Agreement have to be or have been   performed, in so far as those overriding mandatory provisions render the   performance of the Credit Agreement unlawful, (b) may refuse application   of a provision of the chosen law if application thereof is manifestly   incompatible with the public policy (“ordre public”)   of the Netherlands or the European Union and (c) may, in relation to the   manner of performance of an Credit Agreement and the steps to be taken in the   event of defective performance, have regard to
    

 

7

 

	
 
    	
the   law of the country where performance of the Credit Agreement takes place.
    
	
 
    	
 
    
	
 
    	
F.                                 The opinions   expressed in this opinion letter may be limited or affected by:
    
	
 
    	
 
    
	
 
    	
a.                                 any   applicable bankruptcy, insolvency, reorganisation, morato-rium or other   similar laws or procedures now or hereinafter in effect, relating to or   affecting the enforcement or protection of creditors’ rights generally;
    
	
 
    	
 
    
	
 
    	
b.                                 the   provisions of fraudulent preference and fraudulent convey-ance (Actio Pauliana) and similar rights available in other   juris-dictions to liquidators in bankruptcy proceedings or creditors;
    
	
 
    	
 
    
	
 
    	
c.                                  claims based   on tort (onrechtmatige daad); and
    
	
 
    	
 
    
	
 
    	
d.                                 sanctions and   measures implemented or effective in the Nether-lands under the Sanctions Act   1977 (Sanctiewet 1977) or Euro-pean Union   regulations.
    
	
 
    	
 
    
	
 
    	
G.                               Netherlands   courts may, notwithstanding any provision to the contrary in the Credit   Agreement, assume jurisdiction:
    
	
 
    	
 
    
	
 
    	
a.                                 if a   plaintiff seeks provisional measures in preliminary relief proceedings (kort geding) as provided for in Article 254 NCCP et   seq.;
    
	
 
    	
 
    
	
 
    	
b.                                 if a   plaintiff files a request for the levy of a pre-judgment attachment (conservatoir beslag) as provided for in Article 700   NCCP et seq.;
    
	
 
    	
 
    
	
 
    	
c.                                  in   proceedings concerning matters as to which Netherlands courts have exclusive   jurisdiction based on the Enforcement Regulation;
    
	
 
    	
 
    
	
 
    	
d.                                 if a   plaintiff files a request for a preliminary examination of witnesses (voorlopig getuigenverhoor), a preliminary expert opinion (voorlopig deskundigenbericht) or a preliminary site visit   and viewing (voorlopige plaatsopneming en bezichting);   and
    
	
 
    	
 
    
	
 
    	
e.                                  in   proceedings concerning legal matters as to which the competent court cannot   be freely determined by the parties
    

 

8

 

	
 
    	
(within   the meaning of Article 8, paragraph 2, NCCP).
    
	
 
    	
 
    
	
 
    	
H.                              Furthermore,   there is currently some debate whether a one sided jurisdiction clause (i.e.   a jurisdiction clause that is exclusive for one party only whereas the other   has the right to bring action in different jurisdiction), is valid. There is   no decisive case law on this matter.
    
	
 
    	
 
    
	
 
    	
Sincerely   yours,
    
	
 
    	
 
    
	
 
    	
NautaDutilh   N.V.
    

 

9

 

	
 
    	
EXHIBIT A
    
	
 
    	
LIST   OF
    
	
 
    	
DEFINITIONS
    
	
 
    	
 
    
	
 
    	
“Amendment Agreement”
    	
A   pdf copy of the First Amendment to a Term Loan Credit Agreement, dated as of   [...], 2014, between, inter alios,   Delos Finance S.à r.l., a private limited liability company (société à responsabilité limitée), International   Lease Finance Corporation, , Hyperion Aircraft Limited, , Delos Aircraft   Limited as Borrower, Apollo Aircraft Inc., Artemis (Delos) Limited, AerCap   Global Aviation Trust, AerCap U.S. Global Aviation LLC, AerCap Holdings N.V.,   AerCap Aviation Solutions B.V., AerCap Ireland Limited, and AerCap Ireland   Capital Limited, (“AICL” and   together with USHoldco, AerCap, AAS and AIL, the “Acceding   Obligors”) and Deutsche Bank AG New York Branch, as Collateral   Agent and Administrative Agent
    
	
 
    	
 
    	
 
    
	
 
    	
“Articles of Association”
    	
the   articles of association of the Netherlands Companies as currently in force   according to the Extracts
    
	
 
    	
 
    	
 
    
	
 
    	
“Attorney”
    	
each   person appointed as attorney by each Netherlands Company pursuant to the   Powers of Attorney
    
	
 
    	
 
    	
 
    
	
 
    	
“Board Regulations”
    	
the   board regulations (bestuursreglement)   of the managing board of AerCap Holdings N.V., dated 2 May 2013
    
	
 
    	
 
    	
 
    
	
 
    	
“Commercial Register”
    	
The   Netherlands Chamber of Commerce Com-mercial Register
    
	
 
    	
 
    	
 
    
	
 
    	
“Credit Agreement”
    	
the   Original Credit Agreement as amended by the Amendment Agreement
    

 

10

 

	
 
    	
“Corporate Documents”
    	
the   documents listed in Exhibit B
    
	
 
    	
 
    	
 
    
	
 
    	
“Deed of   Incorporation”
    	
a.                               in relation   to AerCap Holdings N.V., its deed of incorporation (akte van   oprichting), dated 10 July 2006; and
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
b.                                  in relation   to AerCap Aviation Solutions B.V., its deed of incorporation (akte van oprichting), dated 10 April 2012.
    
	
 
    	
 
    	
 
    
	
 
    	
“Enforcement Regulation”
    	
the   Council Regulation (EC) No 44/2001of 22 December 2000 on Jurisdiction   and Enforce-ment of Judgments in Civil and Commercial Matters
    
	
 
    	
 
    	
 
    
	
 
    	
“Exhibit”
    	
an   exhibit to this opinion letter
    
	
 
    	
 
    	
 
    
	
 
    	
“Extracts”
    	
the   extracts from the Commercial Register relating to the Netherlands Companies,   dated the date of this opinion letter
    
	
 
    	
 
    	
 
    
	
 
    	
“Insolvency Registers”
    	
i.                                     the online   central insolvency register (Centraal Insolventie   Register) and the online EU Insolvency Register (Centraal Insolventie Register-EU Registraties) held by the   Council for the Administration of Justice (Raad voor   de Rechtspraak); and
    
	
 
    	
 
    	
ii.                                  the Amsterdam   court (location Amsterdam) bankruptcy clerk’s office
    
	
 
    	
 
    	
 
    
	
 
    	
“Loan Documents”
    	
the   Original Credit Agreement and the Amend-ment Agreement
    
	
 
    	
 
    	
 
    
	
 
    	
“NautaDutilh”
    	
NautaDutilh   N.V.
    
	
 
    	
 
    	
 
    
	
 
    	
“NCC”
    	
the   Netherlands Civil Code (Burgerlijk Wet- boek)
    

 

11

 

	
 
    	
“NCCP”
    	
the   Netherlands Code of Civil Procedure (Wet- boek van   Burgerlijke Rechtsvordering)
    
	
 
    	
 
    	
 
    
	
 
    	
“the Netherlands”
    	
the   European territory of the Kingdom of the Netherlands
    
	
 
    	
 
    	
 
    
	
 
    	
“Netherlands Companies”
    	
AerCap   Holdings N.V. and AerCap Aviation Solutions B.V.
    
	
 
    	
 
    	
 
    
	
 
    	
“NFSA”
    	
the   Netherlands Financial Supervision Act (Wet op het financieel   toezicht)
    
	
 
    	
 
    	
 
    
	
 
    	
“Original Credit Agreement”
    	
the   Term Loan Credit Agreement dated as of March [...], 2014 among, inter alios, DELOS FINANCE S.À R.L., as Borrower   INTERNATIONAL LEASE FINANCE CORPORATION, as an Obligor, HYPERION AIRCRAFT   LIMITED, as an Ob-ligor, DELOS AIRCRAFT LIMITED, as an Obligor APOLLO   AIRCRAFT INC., as an Obligor ARTEMIS (DELOS) LIMITED, as an Obligor, the   lenders identified herein, as Lenders, DEUTSCHE BANK AG NEW YORK BRANCH, as   Administrative Agent, DEUTSCHE BANK AG NEW YORK BRANCH, as Collateral Agent,   DEUTSCHE BANK SECURITIES INC., and GOLDMAN SACHS BANK USA as Joint Lead   Arrangers, DEUTSCHE BANK SECURITIES INC. GOLDMAN SACHS BANK USA, and RBC   Capital Markets, LLC as Joint Bookrunners
    
	
 
    	
 
    	
 
    
	
 
    	
“Power of Attorney”
    	
the   powers of attorney as contained in the Reso-lutions, granted by the   Netherlands Companies in respect of the entering into the transactions   contemplated by the Credit Agreement
    
	
 
    	
 
    	
 
    
	
 
    	
“Resolutions”
    	
in   relation to each of the Netherlands Compa-nies, the documents containing the   resolutions of its managing board (bestuur),   dated [...]
    

 

12

 

	
 
    	
EXHIBIT B
    
	
 
    	
LIST   OF
    
	
 
    	
CORPORATE   DOCUMENTS
    
	
 
    	
 
    
	
 
    	
1.                                 pdf copies of   the Deeds of Incorporation;
    
	
 
    	
 
    
	
 
    	
2.                                 pdf copies of   the Articles of Association;
    
	
 
    	
 
    
	
 
    	
3.                                 the Extracts;   and
    
	
 
    	
 
    
	
 
    	
4.                                 pdf copies of   the Resolutions.
    

 

13

 

EXHIBIT G
 FORM OF OPINION OF MCCANN FITZGERALD

 

 

Indicative Draft Only.  Subject to Final Documents, Completion and Opinions Committee Approval

 

	
AKC\10509134.2
    	
2014
    

 

To the addressees set out in Schedule 1
 (collectively, the “Addressees”)

 

Private and Confidential

 

Dear Sirs

 

We have acted as special Irish counsel to Hyperion Aircraft Limited, Delos Aircraft Limited, Artemis (Delos) Limited, AerCap Ireland Capital Limited and AerCap Ireland Limited (each a “Company” and together, the “Companies”) in connection with the provision of this opinion letter to you in relation to certain Irish law matters set out in this Opinion on the Document as defined below.

 

1.                                      Documents examined, interpretation

 

1.1                               For the purposes of this opinion letter, we have examined copies of the following documents:

 

(a)                                 First Amendment To Term Loan Credit Agreement dated as of [ · ] 2014 between Delos Finance S.a.r.l (“Borrower”), International Lease Finance Corporation (“ILFC”), Hyperion Aircraft Limited (“Grandparent Holdco”), Delos Aircraft Limited (“Parent Holdco”), Apollo Aircraft Inc. (“CA Subsidiary Holdco”), Artemis (Delos) Limited (“Irish Subsidiary Holdco”), AerCap Global Aviation Trust, AerCap U.S. Global Aviation LLC, AerCap Holdings N.V., AerCap Aviation Solutions B.V., AerCap Ireland Limited, AerCap Ireland Capital Limited, Deutsche Bank AG New York Branch, as Collateral Agent and Administrative Agent (the “Document”) to the Term Loan Credit Agreement, dated as of March [ · ], 2014, between Borrower, ILFC, Parent Holdco, CA Subsidiary Holdco, Irish Subsidiary Holdco, the Lenders party thereto and Deutsche Bank AG New York Branch (“DB”), as Collateral and Administrative Agent; and

 

 

(b)                                 the following additional documents (the “Additional Documents”):

 

(i)                                     a Certificate of a director of each Company dated [ · ] 2014, a Certificate of a director of AerCap International (Isle of Man) Limited dated [ · ] 2014, a certificate of a director of [ · ](1) dated [ · ] 2014, a certificate of a director of [ · ](2) dated [ · ] 2014 and a certificate of a director of [Delos Aircraft Inc.,](3) dated [ · ] 2014 (the “Certificates”), a copy of each of which is attached to this opinion letter at Appendix 1; and

 

(ii)                                  the results of searches made by independent law searchers on our behalf at the Companies Registration Office, Dublin, the Petitions Section and Judgments Office of the Central Office of the Irish High Court on [ · ] 2014 against the Companies (together the “Searches”),

 

we have assumed that no circumstances or events have occurred between the dates on which the Certificates and Searches were given or made (none having being brought to our attention) which would cause us to cease to rely on the Certificates and Searches.

 

1.2          Scope of opinion

 

This opinion letter speaks only as of its date and is limited to the matters stated herein and does not extend, and is not to be read as extending by implication, to any other matters.

 

In particular:

 

(i)                                     save as expressly stated herein, we express no opinion on the effect, validity, or enforceability of or the creation or effectiveness of any document;

 

(ii)                                  we express no opinion on the contractual terms of any document other than by reference to the legal character thereof under the laws of Ireland;

 

(iii)                               we express no opinion as to the existence or validity of, or the title of any person to, any of the assets which are, or purport to be sold, transferred, exchanged, assigned or otherwise dealt with under the Document or as to whether any assets are marketable and/or are capable of being so dealt with free of any equities or of any security rights or interests which may have been created in favour of any other person;

 

(iv)                              we have made no investigation of, and express no opinion on, the laws, or the effect on the Document and the transactions contemplated thereby of the laws, of any country or jurisdiction other than Ireland,

 

(1)  Please confirm the identity of the parent company of Hyperion Aircraft Limited

(2)  Please confirm the identity of the parent company of Delos Aircraft Limited

(3)  Please confirm that this is the parent company of Artemis (Delos) Limited

 

2

 

and this opinion is strictly limited to the laws of Ireland as in force on the date hereof and as currently applied by the courts (excluding any foreign law to which reference may be made under the rules of Irish private international law). We have assumed without investigation that, insofar as the laws of any jurisdiction other than Ireland are relevant, such laws do not prohibit and are not inconsistent with any of the obligations or rights expressed in the Document or the transactions contemplated by the Document;

 

(v)                                 we express no views or opinions on matters relating to tax (other than Irish stamp duty as expressly referred to paragraph 4.16);

 

(vi)                             we express no views or opinions as to matters of fact;

 

(vii)                           we express no opinion on the characterisation of any security interest or issues of priority of interests; and

 

(viii)                        we have not for the purpose of this opinion letter examined any other drafts and/or copies of any contract, instrument or document entered into by or affecting the Companies or any other persons, or any corporate records of the Companies or any other person, except the Document and the Additional Documents; and (except as expressly set out herein) we have not made any other enquiries or searches concerning the Companies or any other person for the purposes of this opinion letter.

 

1.3                               This opinion letter is governed by, and is to be construed in accordance with the laws of Ireland as at the date hereof. Except as otherwise expressly stated herein, the opinions expressed herein are given on the basis of and subject to the foregoing and the matters set out in part 2 (Assumptions) and part 3 (Reservations and Qualifications).

 

1.4                               By giving this opinion letter we assume no obligation to inform any Addressee of any future change in law (including any change in interpretation of law) or to update this opinion letter at any time in the future.

 

1.5                               This opinion letter is solely for your benefit and solely for the purpose of the Document and may be relied upon only by the addressee of this opinion letter and may not be disclosed without our prior written consent.

 

1.6                               In this opinion letter:

 

“Minutes” means the minutes of a meeting of the board of directors of each Company held on [ · ] 2014, a copy of each of which is attached to each Certificate;

 

“Statutory Declaration” means the statutory declarations of a majority of the directors of each of (i) [Hyperion Aircraft Limited dated [ · ] 2014, (ii) Delos Aircraft Limited dated [ · ] 2014, (iii) Artemis (Delos) Limited dated [ · ] 2014](4), (iv) AerCap Ireland Limited

(4)  To be confirmed if required

 

3

 

dated [ · ] 2014, and (v) and AerCap Ireland Capital Limited dated [ · ] 2014, a copy of each of which is attached to each Certificate; and

 

“Special Resolution” means the special resolution of the sole member of each Company dated [ · ] 2014 approving the giving of the financial assistance referred to in the Statutory Declaration of each Company, a copy of each of which is attached to each Certificate.

 

2.                                      Assumptions

 

In considering the Document and in rendering this opinion letter, we have without further enquiry, assumed that as of the date hereof:

 

Authenticity and Completeness of Documents

 

(a)                                 the authenticity and completeness of all documents submitted to us as originals; the completeness and conformity to the originals of all copy (including facsimile or pdf copy) documents, certificates, letters, resolutions, powers of attorney, documents, permissions, minutes, authorisations and all other copy documents of any kind furnished to us; and the authenticity and completeness of the originals of any such copies (including facsimile or pdf copies) examined by us;

 

(b)                                 the genuineness of all signatures and seals on documents originals or copies of which have been examined by us; that the Document has been duly and unconditionally delivered by all parties thereto (other than the Companies) on the respective dates therein stated; and that all escrow or similar arrangements, agreements or understandings in connection with the Document and all conditions required to be met before the Document and/or any obligation thereunder is or is deemed to be or have been delivered and/or made effective, have been met and satisfied;

 

(c)                                  that the copies produced to us (including copies annexed to the Certificates) of minutes of meetings and/or of resolutions are true copies and correctly record the proceedings at such meetings and/or the subject matter which they purport to record; that any meetings referred to therein were duly convened and held, that those present at any such meetings acted bona-fide throughout, that all resolutions set out in such copies were duly passed and that no further resolutions have been passed, or corporate or other action taken, which would or might alter the effectiveness thereof and in this regard we refer to the Certificates;

 

(d)                                 that where a document has been examined in draft or specimen form it has been executed in the form of that draft or specimen as examined by us;

 

(e)                                  the completeness and accuracy as of the date hereof of:

 

(i)                                     all statements in, and attachments to, the Certificates;

 

(ii)                                  representations contained in the Document as to matters of fact, and matters of law other than Irish law; and

 

4

 

(iii)                               the results of the Searches; and that further searches would not reveal any circumstances which would affect this opinion letter;

 

The Document and related documentation

 

(f)                                   that the directors of each Company in authorising the entry into and the execution and the performance of, the Document to which it is a party have exercised their powers in good faith in the interests of such Company, its shareholders, creditors and employees, and have used due skill, care and diligence in considering and approving the matters before them;

 

(g)                                  that the Document has been entered into by the parties thereto for bona fide commercial purposes, on an arm’s-length basis having regard to the relationship of the parties and for their respective corporate benefit;

 

(h)                                 an absence of fraud, bad faith, undue influence, coercion, mistake or duress on the part of any party to the Document or their respective employees, agents, directors or advisers;

 

(i)                                     that the warranties and representations set out in the Document (other than warranties and representations as to matters of Irish law upon which we have opined in this opinion letter), are true and accurate at the date at which they are expressed to be made;

 

(j)                                    that there are no agreements or arrangements in existence or contemplated between the parties (or any of them) to the Document which have not been disclosed to us and which in any material way amend, add to or vary the terms or conditions of the Document, or the respective rights and interests of the parties thereto, or create any rights over any property the subject matter of the Document; that there are no contractual or similar restrictions binding on the parties which would affect the conclusions in this Opinion;

 

Solvency

 

(k)                                 that each Company is not and will not be as a result of the transactions contemplated by the Document, insolvent or unable to pay its debts, or deemed to be so under any applicable statutory provision or law, as at (i) the date of execution of the Document to which it is party, (ii) the effective date of the Document to which it is party or (iii) the date of this Opinion;

 

All Parties

 

(l)                                     the due performance of the Document by all parties (other than the Companies with respect to the matters that are the subject of this Opinion) thereto;

 

(m)                             that each of the parties to the Document, other than the Companies:

 

(i)                                     has been duly incorporated and is validly existing and has all necessary capacity and power, and has obtained all necessary consents, licences and approvals (governmental, regulatory, legal or otherwise) to enter

 

5

 

into the Document and to perform its obligations thereunder; and

 

(ii)                                  has validly authorised entry into, and has duly executed, the Document to which it is party;

 

(n)                                 that as a matter of all relevant laws (including in particular in relation to the Document the law expressed therein to be the governing law) other than the laws of Ireland:

 

(i)                                     all obligations under the Document are valid, legally binding upon, and enforceable in accordance with their terms against, the respective parties thereto; that the choice of governing law under the Document is valid; and, insofar as is relevant to any matter opined on herein, that words and phrases used therein have the same meaning and effect as they would if such documents were governed by Irish law; and

 

(ii)                                  all consents, approvals, notices, filings, recordations, publications, registrations and other steps necessary in order to permit the execution, delivery or performance of the Document or to perfect, protect or preserve any of the interests created by the Document, have been obtained, made or done or will be obtained, made or done within any relevant permitted period(s);

 

(o)                                 that, other than as disclosed in the Certificates and the Searches, none of the parties to the Document and/or any document referred to therein has taken any corporate or other action nor have any steps been taken or legal proceedings been started against any of such parties for the liquidation, winding-up, dissolution, striking-off, examination, reorganisation, or administration of, or for the appointment of a liquidator, receiver, trustee, examiner, administrator, administrative receiver or similar officer to, any of such parties or all or any of its assets and that none of such parties is or was at the date of execution or the effective date of any of such documents or will as a result of the transactions contemplated by such documents become insolvent, unable to pay its debts, or deemed unable to pay its debts under any relevant statutory provision, regulation or law, or has been dissolved; and that no event similar or analogous to any of the foregoing has occurred or will occur as a result of the transactions contemplated by such documents in relation to any of them under the laws of any jurisdiction applicable to any of such parties;

 

Financial Transfer Restriction

 

(p)                                 that the transactions and other matters contemplated by the Document are not and will not be affected by:

 

(i)                                     any financial restrictions or asset freezing measures arising from orders made by the Minister for Finance under the Financial Transfers Act 1992, the Criminal Justice (Terrorist Offences) Act 2005 or the European Communities Act 1972 to 2009 or European Communities Regulations having direct effect in Ireland. Regulations and orders which have been made under the aforementioned Acts, and which are in effect at the date

 

6

 

of this opinion, impose restrictions on financial transfers involving residents of certain countries and certain named individuals and certain entities arising from the implementation in Ireland of United Nations and EU sanctions; or

 

(ii)                                  any directions or orders made under the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010. That Act transposes into Irish law the European Union Directive 2005/60/EC of the European Parliament and the Council of 26 October 2005;

 

Group Companies

 

(r)                                    that AerCap Holdings N.V. (“AerCap”) is the ultimate holding company (within the meaning of Section 155 of the Companies Act, 1963) of each of AerCap Ireland Limited and AerCap Ireland Capital Limited (and will, at the effective date of the Document, be the ultimate holding company of each Obligor (as defined in the Document)) and accordingly AerCap Ireland Limited, AerCap Ireland Capital Limited and AerCap are members of the same group of companies consisting of a holding company and its subsidiaries for the purposes of the Companies Acts 1963 to 2013 (and AerCap and each Obligor (as defined in the Document) will on the effective date of the Document be members of the same group of companies consisting of a holding company and its subsidiaries for the purposes of the Companies Acts 1963 to 2013);

 

Insurance Legislation

 

(s)                                   in considering the application of the Insurance Acts, 1909 to 2009, regulations made thereunder and regulations relating to insurance under the European Communities Act, 1972, that each of AerCap Ireland Limited and AerCap Ireland Capital Limited is a subsidiary of AerCap (and that each Obligor (as defined in the Document) will at the effective date of the Document be a subsidiary of AerCap); and

 

(t)                                    AerCap Ireland Limited and AerCap Ireland Capital Limited have not received and will not receive any remuneration in connection with any guarantee indemnity or similar payment obligation given by AerCap Ireland Limited or AerCap Ireland Capital Limited under the terms of the Document.

 

Financial Assistance

 

(u)                                 that no person who has been appointed or acts in any way, whether directly or indirectly, as a director or secretary of, who has been concerned in or taken part in the promotion of, any Company has been the subject of a declaration under Section 150 (Restriction) or Section 160 (Disqualification of certain persons from acting as directors or auditors of or managing companies) of the Companies Act 1990;

 

(v)                                 a copy of each Statutory Declaration will be delivered to the Registrar of Companies within 21 days of the date on which the financial assistance referred to therein was given which we undertake to attend to within the statutorily prescribed period;

 

7

 

(w)                               that the opinions and matters respectively sworn in each Statutory Declaration were when sworn and given, and now remain, true and accurate and complete and are not misleading or incorrect in any respect;

 

(x)                                 in relation to each Company:

 

(i)                                     that the directors whose identities and signatures appear on each Statutory Declaration were a majority of the directors of such Company when the Statutory Declarations were made;

 

(ii)                                  that the Statutory Declarations were sworn, at the meetings of the board of directors referred to in the Minutes, before a solicitor who holds a practising certificate (which is in force) for the practice year ending 31 December 2014 issued by the Law Society of Ireland (in this regard we refer you to the practising certificate attached hereto at Annex 2);

 

(iii)                               that, as at the time when the Special Resolution of AerCap Ireland Limited was passed, AerCap International (Isle of Man) Limited was the sole member of AerCap Ireland Limited and that there was no other person who was entitled to attend and vote at any general meeting of AerCap Ireland Limited;

 

(iv)                              that, as at the time when the Special Resolution of AerCap Ireland Capital Limited was passed, AerCap Ireland Limited was the sole member of AerCap Ireland Capital Limited and that there was no other person who was entitled to attend and vote at any general meeting of AerCap Ireland Capital Limited;

 

(v)                                 [that, as at the time when the Special Resolution of Hyperion Aircraft Limited was passed, [ · ] was the sole member of Hyperion Aircraft Limited and that there was no other person who was entitled to attend and vote at any general meeting of Hyperion Aircraft Limited];

 

(vi)                              that, as at the time when the Special Resolution of Delos Aircraft Limited was passed, [ · ] was the sole member of Delos Aircraft Limited and that there was no other person who was entitled to attend and vote at any general meeting of Delos Aircraft Limited;

 

(vii)                           that, as at the time when the Special Resolution of Artemis (Delos) Limited was passed, Delos Aircraft Inc., was the sole member of Artemis (Delos) Limited and that there was no other person who was entitled to attend and vote at any general meeting of Artemis (Delos) Limited;

 

(viii)                        [that the person who signed the Special Resolution of Hyperion Aircraft Limited on behalf of [ · ] (as sole member of Hyperion Aircraft Limited) was a duly authorised representative of [ · ]];

 

(ix)                              [that the person who signed the Special Resolution of Delos Aircraft Limited on behalf of [ · ] (as sole member of Delos Aircraft Limited) was a duly authorised representative of [ · ]]

 

8

 

(x)                                 [that the person who signed the Special Resolution of Artemis (Delos) Limited on behalf of Delos Aircraft Inc., (as sole member of Artemis (Delos) Limited) was a duly authorised representative of Delos Aircraft Inc.,]

 

(xi)                              that the person who signed the Special Resolution of AerCap Ireland Limited on behalf of AerCap International (Isle of Man) Limited (as sole member of AerCap Ireland Limited) was a duly authorised representative of AerCap International (Isle of Man) Limited;

 

(xii)                           that a copy of the signed and sworn Statutory Declaration of a majority of the directors of AerCap Ireland Limited was attached to the Special Resolution of AerCap Ireland Limited prior to its execution on behalf of AerCap International (Isle of Man) Limited (as sole member of AerCap Ireland Limited);

 

(xiii)                        that a copy of the signed and sworn Statutory Declaration of a majority of the directors of AerCap Ireland Capital Limited was attached to the Special Resolution of AerCap Ireland Capital Limited prior to its execution on behalf of AerCap Ireland Limited (as sole member of AerCap Ireland Capital Limited);

 

(xiv)                       [that a copy of the signed and sworn Statutory Declaration of a majority of the directors of Hyperion Aircraft Limited was attached to the Special Resolution of Hyperion Aircraft Limited prior to its execution on behalf of [ · ], (as sole member of Hyperion Aircraft Limited)];

 

(xv)                          [that a copy of the signed and sworn Statutory Declaration of a majority of the directors of Delos Aircraft Limited was attached to the Special Resolution of Delos Aircraft Limited prior to its execution on behalf of [ · ], (as sole member of Delos Aircraft Limited;

 

(xvi)                       [that a copy of the signed and sworn Statutory Declaration of a majority of the directors of Artemis (Delos) Limited was attached to the Special Resolution of Artemis (Delos) Limited prior to its execution on behalf of [Delos Aircraft Inc.,], (as sole member of Artemis (Delos) Limited; and

 

(xvii)                    there are no other facts and there is no other information in relation to the giving of financial assistance by the Companies of which we do not have actual knowledge (being the actual knowledge of Hilary Marren and Andrew O’Callaghan, the lawyers in this firm who have acted on behalf of the Companies).

 

3.                                      Reservations and qualifications

 

3.1                               The opinions expressed in this opinion letter are subject to the following reservations and qualifications:

 

9

 

Documents

 

(a)                                 Provisions in the Document imposing additional obligations in the event of breach or default, or of payment or repayment being made other than on an agreed date, may be unenforceable to the extent that they are subsequently adjudicated to be penal in nature, but, the fact that any payment is held to be penal in nature would not, of itself, prejudice the legality or validity of any other provision contained in the Document which does not provide for the making of such payment.

 

(b)                                 Provisions in the Document that calculations or certifications or acknowledgements are to be conclusive and binding will not necessarily prevent judicial enquiry by the Irish courts into the merits of any claim by a party claiming to be aggrieved by such calculations, certifications or acknowledgements; nor do such provisions exclude the possibility of such calculations, certifications or acknowledgements being amended by order of the Irish courts.

 

(c)                                  To the extent that the Document vests a discretion in any party, or provides for any party determining any matter in its opinion, the exercise of such discretion and the manner in which such opinion is formed and the grounds on which it is based may be the subject of a judicial enquiry and review by the Irish courts.

 

(d)                                 The effectiveness of terms in the Document exculpating a party from a liability or a legal duty otherwise owed are limited by law.

 

(e)                                  Provisions of the Document providing for severance of provisions due to illegality, invalidity or unenforceability thereof may not be effective, depending on the nature of the illegality, invalidity or unenforceability in question.

 

Enforceability/Binding Nature of Obligations

 

(f)                                   The description of obligations as “enforceable” or “binding” refers to the legal character of the obligations in question. It implies no more than that they are of a character which Irish law recognises and enforces. It does not mean that the Document will be binding or enforced in all circumstances or that any particular remedy will be available. Equitable remedies, such as specific performance and injunctive relief, are in the discretion of the Irish courts and may not be available to persons seeking to enforce provisions in the Document. More generally, in any proceedings to enforce the provisions of the Document, the Irish courts may require that the party seeking enforcement acts with reasonableness and good faith. Enforcement of the Document may also be limited as a result of (i) the provisions of Irish law applicable to contracts held to have become frustrated by events happening after their execution and (ii) any breach of the terms of the Document by the party seeking to enforce the same.

 

(g)                                  Any person who is not a party to the Document may not be able to enforce any provision thereof which is expressed to be for the benefit of that person.

 

(h)                                 The obligations of each Company under the Document are subject to all insolvency, bankruptcy, liquidation, reorganisation, moratorium, examinership, trust schemes, preferential creditors, fraudulent transfer and other similar laws

 

10

 

relating to or affecting creditors’ rights generally.

 

(i)                                     Where an obligation is to be performed outside Ireland under the Document, it may not be enforceable in Ireland to the extent that performance would be illegal or contrary to public policy under the laws of that jurisdiction.

 

(j)                                    Any judgment of the Irish courts for moneys due under the Document may be expressed in a currency other than euro but the order may issue out of the Central Office of the High Court expressed in euro by reference to the official rate of exchange prevailing on or very shortly before the date of application for judgement. In addition, in a winding-up in Ireland of an Irish incorporated company, all foreign currency claims must be converted into euro for the purposes of proof. The rate of exchange to be used to convert foreign currency debts into euro for the purposes of proof in a winding-up is the spot rate as of, in the case of a compulsory winding-up either the date of commencement of the winding-up (presentation of the petition for winding-up or earlier resolution for winding-up) or of the winding-up order and in the case of a voluntary winding-up on the date of the relevant winding-up resolution.

 

(k)                                 An Irish court may refuse to give effect to a purported contractual obligation to pay costs arising from unsuccessful litigation brought against that party and may not award by way of costs all of the expenditure incurred by a successful litigator in proceedings before that court.

 

(l)                                     Claims against a Company be or become the subject of set-off or counterclaim and any waiver of those or other defences available to such Company may not be enforceable in all circumstances.

 

(m)                             Currency indemnities contained in the Document may not be enforceable in all circumstances.

 

Statutes of Limitation

 

(n)                                 Claims against a Company may become barred under relevant statutes of limitation if not pursued within the time limited by such statutes.

 

Searches

 

(o)                                 The failure of the Searches to reveal evidence that a Company has passed a voluntary winding-up resolution, that a petition has been presented or order made by a court for the winding-up of, or appointment of an examiner to a Company or a receiver or similar officer has been appointed in relation to any of its assets or revenues is not conclusive proof that no such event has occurred, in particular:

 

(i)                                     the Searches may not have revealed whether a petition for winding-up or the appointment or any examiner had been presented;

 

(ii)                                  notice of a resolution passed, a winding-up order made or the appointment of a receiver or examiner may not have been filed at the

 

11

 

Irish Companies Office immediately;

 

(iii)                               it has been assumed that the information disclosed by the Searches was accurate and that no information had been delivered for registration that was not on the file at the time the Searches were made; and

 

(iv)                              the position may have changed since the time the Searches were made.

 

Power of Court to Stay Actions

 

(p)                                 The Irish courts have power to stay an action where it is shown that there is some other forum, having competent jurisdiction, which is more appropriate for the trial of the action, in which the case can be tried more suitably for the interests of all the parties and the ends of justice, and where staying the action is not inconsistent with Council Regulation (EC) No. 44/2001 of 22 December 2000 on Jurisdiction and the Recognition and Enforcement of Judgments in Civil Commercial Matters, Council Regulation (EC) No.805/2004 of 21 April 2004 on creating a European Enforcement Order for uncontested claims, as amended, or Council Regulation (EC) No.1896/2006 of 12 December 2006 creating a European Enforcement Order for payment procedure, as amended (as applicable).

 

4.                                      Opinion

 

Other than as described in Section 1 above, under the assumptions set out at Section 2 above and the reservations set out in Section 3 above and to any matters or documents not disclosed to us, we are of the opinion as follows:

 

4.1                               Due Incorporation

 

Each Company is duly incorporated and validly existing under the laws of Ireland as a private limited company and the Searches revealed no order, resolution or petition for the winding-up of or for the appointment of an examiner over any Company and no notice of appointment of a liquidator, receiver or examiner in respect of any Company.

 

4.2                               Corporate Capacity

 

Each Company has the necessary legal capacity and authority to enter into, deliver and perform the Document.

 

4.3                               Corporate Authorisation

 

All necessary corporate action has been taken by each Company to authorise the entry into, execution and performance of the Document.

 

4.4                               Due Execution

 

The Document has been duly executed by each Company.

 

12

 

4.5                               Official Authorisations; No conflict with laws or constitutional documents

 

No consent, licence, approval or authorisation of any Irish governmental or regulatory authority is required on the part of any Company for the effectiveness or validity of the Document or the performance by each Company of its obligations thereunder.

 

Execution and performance by each Company of the Document will not (i) contravene any existing Irish law or regulation of general application to which any Company is subject or (ii) contravene or conflict with any provision of any Company’s Memorandum and Articles of Association.

 

4.6                               Registration and Filings

 

Save for the filings set out in 2(v) above, no filing, registration or recording of the Document is necessary under the laws of Ireland as a condition of the legality, validity, admissibility in evidence or enforceability of the Document against a Company.

 

4.7                               Validity and enforceability

 

The Document constitutes the legal, valid, binding and enforceable obligations of each Company.

 

4.8                               No Immunity

 

Each Company is generally subject to suit under the laws of Ireland and no Company nor any of such Company’s assets enjoys any general right of immunity from judicial proceedings or attachment of its assets pursuant to judicial proceedings.

 

4.9                               Ranking Of Obligations

 

Each Company’s obligations under the Document constitute direct, general and unconditional obligations of it and will rank in right of payment at least pari passu with all of its respective unsecured and unsubordinated debt, except for such obligations as may be mandatory preferences under the law of Ireland.

 

4.10                        Governing Law

 

Council Regulation (EC) No 593/2008 of 17 June 2008 on the law applicable to contractual obligations, as amended by Corrigendum to Regulation (EC) No 593/2008 of the European Parliament and of the Council of 17 June 2008 on the law applicable to contractual obligations (Rome I), (“Rome I”) has force of law in Ireland. The incorporation of the incorporation of the laws of the State of New York as the governing law of the Document is, in respect of contractual obligations which are within the scope of Rome I, valid in accordance with Article 3(1) of Rome I and accordingly, subject to and in accordance with Rome I, the laws so chosen will upon proof of the relevant provisions of the laws of the State of New York be applied by the Irish courts if any claim to enforce such contractual obligations against a Company under the Document comes under their jurisdiction.

 

4.11                        Recognition of Foreign Judgments

 

Any judgment in personam obtained in the courts of the State of New York against a

 

13

 

Company would be recognised and enforced in Ireland in summary proceedings without retrial or examination of the merits of the case, provided that:

 

(a)                                 the judgment has not been obtained or alleged to have been obtained by fraud or trick; the decision of the court in such state and the enforcement thereof was not and would not be contrary to natural or constitutional justice under the laws of Ireland;

 

(b)                                 the enforcement of the judgment would not be contrary to public policy as understood by the Irish courts or constitute the enforcement of a judgment of a penal or revenue (tax) nature;

 

(c)                                  the judgment is final and conclusive and is for a debt or definite sum of money;

 

(d)                                 the procedures / rules of the court giving the judgment have been observed;

 

(e)                                  the jurisdiction of the courts in such state has been exercised in circumstances which, as a matter of Irish law, an Irish court will recognise as justifying enforcement of the judgment; and

 

(f)                                   the judgment is not inconsistent with a judgment of the Irish courts in respect of the same matter.

 

4.12                        Financial Assistance

 

Based solely upon the Minutes, each Statutory Declaration and each Special Resolution, and subject in particular to paragraphs 2(u) and 2(x) of this opinion letter, we have been provided with documentation that corresponds to the procedures set out in sub-sections (2) to (11) (inclusive) of section 60 of the Companies Act 1963 (as amended) which enables each Company to give the financial assistance contemplated by each Statutory Declaration.

 

4.13                        Licences

 

It is not necessary that DB be licensed or authorised by any Irish regulatory or governmental authority to enforce its obligations under the Document.

 

4.14                        no deemed residence

 

DB will not be deemed to be resident or carrying on business in Ireland by reason solely of the execution, performance and/or enforcement of the Document.

 

4.15                        no usury laws

 

There is no applicable usury or interest limitation laws of Ireland which would restrict the recovery of payments in accordance with the Document.

 

4.16                        Stamp duty

 

No stamp duty is payable on the Document in Ireland in respect of its execution and

 

14

 

delivery or as a condition to the legality, validity, enforceability or admissibility in evidence thereof.

 

Yours faithfully

 

McCann FitzGerald

 

15

 

SCHEDULE 1

 

Addressees

 

Deutsche Bank AG New York Branch in its capacity as Collateral Agent and Administrative Agent 60 Wall Street New York, NY 10005

 

Deutsche Bank Securities Inc. and Goldman Sachs Bank USA as Joint Lead Arrangers

 

Deutsche Bank Securities Inc., Goldman Sachs Bank USA and RBS Capital Markets, LLC as Joint Bookrunners

 

International Lease Finance Corporation, 10250 Constellation Boulevard., Suite 3400, Los Angeles, CA 90067

 

Each Lender party to the Loan Agreement on date hereof.

 

16

 

ANNEX I

 

Certificates

 

17

 

ANNEX II

 

Certificate of practising solicitor

 

18Exhibit 10.3

 

EXECUTION TEXT

 

TERM LOAN SECURITY AGREEMENT

 

dated as of

 

March 6, 2014

 

among

 

HYPERION AIRCRAFT LIMITED,

 

DELOS AIRCRAFT LIMITED,

 

DELOS FINANCE S.À R.L.,

 

ARTEMIS (DELOS) LIMITED,

 

APOLLO AIRCRAFT INC.,

 

and

 

THE ADDITIONAL GRANTORS REFERRED TO HEREIN
 as the Grantors

 

and

 

DEUTSCHE BANK AG NEW YORK BRANCH,
 as the Collateral Agent

 

Term Loan Security Agreement 2014-1

 

 

TABLE OF CONTENTS

 

	
 
    	
PAGE
    
	
 
    	
 
    
	
ARTICLE I DEFINITIONS
    	
2
    
	
 
    	
 
    
	
Section 1.01
    	
Definitions
    	
2
    
	
Section 1.02
    	
Construction and Usage
    	
6
    
	
 
    	
 
    
	
ARTICLE II SECURITY
    	
8
    
	
 
    	
 
    
	
Section 2.01
    	
Grant of Security
    	
8
    
	
Section 2.02
    	
Security for Obligations
    	
10
    
	
Section 2.03
    	
Representations and Warranties of the Grantors
    	
10
    
	
Section 2.04
    	
Grantors Remain Liable
    	
12
    
	
Section 2.05
    	
Delivery of Collateral
    	
12
    
	
Section 2.06
    	
As to the Pool Aircraft Collateral
    	
12
    
	
Section 2.07
    	
As to the Equity Collateral and Investment Collateral
    	
13
    
	
Section 2.08
    	
Further Assurances
    	
14
    
	
Section 2.09
    	
Place of Perfection; Records
    	
15
    
	
Section 2.10
    	
Voting Rights; Dividends; Etc.
    	
15
    
	
Section 2.11
    	
Transfers and Other Liens; Additional Shares or Interests
    	
16
    
	
Section 2.12
    	
Collateral Agent Appointed Attorney-in-Fact
    	
16
    
	
Section 2.13
    	
Collateral Agent May Perform
    	
17
    
	
Section 2.14
    	
Covenant to Pay
    	
17
    
	
Section 2.15
    	
Delivery of Collateral Supplements
    	
17
    
	
Section 2.16
    	
Insurance
    	
18
    
	
Section 2.17
    	
Covenant Regarding Control
    	
18
    
	
Section 2.18
    	
Covenant Regarding Collateral Account
    	
18
    
	
Section 2.19
    	
As to Irish Law
    	
18
    
	
Section 2.20
    	
Additional Charges Over Shares
    	
18
    
	
 
    	
 
    
	
ARTICLE III REMEDIES
    	
19
    
	
 
    	
 
    
	
Section 3.01
    	
Remedies
    	
19
    
	
Section 3.02
    	
Priority of Payments
    	
19
    
	
 
    	
 
    
	
ARTICLE IV SECURITY INTEREST   ABSOLUTE
    	
19
    
	
 
    	
 
    
	
Section 4.01
    	
Security Interest Absolute
    	
19
    
	
 
    	
 
    
	
ARTICLE V THE COLLATERAL   AGENT
    	
20
    
	
 
    	
 
    
	
Section 5.01
    	
Authorization and Action
    	
20
    
	
Section 5.02
    	
Absence of Duties
    	
21
    
	
Section 5.03
    	
Representations or Warranties
    	
21
    
	
Section 5.04
    	
Reliance; Agents; Advice of Counsel
    	
21
    

 

i

 

	
Section 5.05
    	
No Individual Liability
    	
23
    
	
 
    	
 
    
	
ARTICLE VI SUCCESSOR COLLATERAL AGENT  
    	
23
    
	
 
    	
 
    
	
Section 6.01
    	
Resignation and Removal of the Collateral Agent
    	
23
    
	
Section 6.02
    	
Appointment of Successor
    	
23
    
	
 
    	
 
    
	
ARTICLE VII INDEMNITY AND   EXPENSES  
    	
24
    
	
 
    	
 
    
	
Section 7.01
    	
Indemnity
    	
24
    
	
Section 7.02
    	
Secured Parties’ Indemnity
    	
25
    
	
Section 7.03
    	
No Compensation from Secured Parties
    	
25
    
	
Section 7.04
    	
Collateral Agent Fees
    	
25
    
	
 
    	
 
    
	
ARTICLE VIII MISCELLANEOUS  
    	
26
    
	
 
    	
 
    
	
Section 8.01
    	
Amendments; Waivers; Etc.
    	
26
    
	
Section 8.02
    	
Addresses for Notices; Delivery of Documents
    	
26
    
	
Section 8.03
    	
Remedies
    	
27
    
	
Section 8.04
    	
Severability
    	
27
    
	
Section 8.05
    	
Continuing Security Interest
    	
27
    
	
Section 8.06
    	
Release and Termination
    	
27
    
	
Section 8.07
    	
Currency Conversion
    	
28
    
	
Section 8.08
    	
Governing Law
    	
29
    
	
Section 8.09
    	
Jurisdiction; Consent to Service of Process
    	
29
    
	
Section 8.10
    	
Counterparts; Integration; Effectiveness
    	
29
    
	
Section 8.11
    	
Table of Contents, Headings, Etc.
    	
30
    
	
Section 8.12
    	
Non-Invasive Provisions
    	
30
    
	
Section 8.13
    	
Limited Recourse
    	
30
    

 

	
SCHEDULES
    	
 
    
	
 
    	
 
    
	
Schedule   I
    	
Aircraft   Objects
    	
 
    
	
Schedule   II
    	
Pledged   Equity Interests; Pledged Debt
    	
 
    
	
Schedule   III
    	
Trade   Names
    	
 
    
	
Schedule   IV
    	
Chief   Place of Business and Chief Executive or Registered Office
    	
 
    
	
Schedule   V
    	
Insurance
    	
 
    
	
 
    	
 
    
	
EXHIBITS
    	
 
    
	
 
    	
 
    
	
Exhibit A-1
    	
Form of   Collateral Supplement
    	
 
    
	
Exhibit A-2
    	
Form of   Grantor Supplement
    	
 
    
	
Exhibit B
    	
Form of   Charge Over Shares of Parent Holdco
    	
 
    
	
Exhibit C
    	
Form of   Pledge Over Shares of Borrower
    	
 
    
	
Exhibit D
    	
Form of   Account Control Agreement
    	
 
    

 

ii

 

This TERM LOAN SECURITY AGREEMENT (this “Agreement”), dated as of March 6, 2014, is made among DELOS FINANCE S.À R.L., a private limited liability company (société à responsabilité limitée) incorporated under the laws of Luxembourg (the “Borrower”), HYPERION AIRCRAFT LIMITED, a private limited liability company incorporated under the laws of Ireland (“Grandparent Holdco”), DELOS AIRCRAFT LIMITED, a private limited liability company incorporated under the laws of Ireland (“Parent Holdco”), APOLLO AIRCRAFT INC., a California corporation (“CA Subsidiary Holdco”), ARTEMIS (DELOS) LIMITED, a private limited liability company incorporated under the laws of Ireland (“Irish Subsidiary Holdco”) and the ADDITIONAL GRANTORS who from time to time become grantors under this Agreement (together with Grandparent Holdco, Parent Holdco, the Borrower, the Irish Subsidiary Holdco and the CA Subsidiary Holdco, the “Grantors”), and DEUTSCHE BANK AG NEW YORK BRANCH (“Deutsche Bank”), as the collateral agent (in such capacity, and together with any permitted successor or assign thereto or any permitted replacement thereof, the “Collateral Agent”).

 

PRELIMINARY STATEMENTS:

 

(1)                                 International Lease Finance Corporation (“ILFC”), the Borrower, Grandparent Holdco, Parent Holdco, the Irish Subsidiary Holdco, the CA Subsidiary Holdco, the lenders identified therein, Deutsche Bank AG New York Branch as the administrative agent (in such capacity, the “Administrative Agent”) and the Collateral Agent have entered into the Term Loan Credit Agreement, dated as of the date hereof (the “Credit Agreement”), pursuant to which the Lenders have made the Loans to the Borrower.

 

(2)                                 ILFC is the direct or indirect owner of certain Aircraft and ILFC and certain of its Affiliates are parties to lease and sub-lease contracts with respect to such Aircraft.

 

(3)                                 (a) Grandparent Holdco owns 100% of the Equity Interests of Parent Holdco, (b) Parent Holdco owns 100% of the Equity Interests of the Borrower, 100% of the Equity Interests of the CA Subsidiary Holdco and 100% of the Equity Interests of the Irish Subsidiary Holdco, (c) the Irish Subsidiary Holdco and the CA Subsidiary Holdco directly or indirectly (and subject to the Local Requirements Exception) hold or will acquire from time to time, 100% of the Equity Interests in Owner Subsidiaries that may in turn hold or acquire from time to time 100% of the Equity Interests in other Owner Subsidiaries, and each Owner Subsidiary has acquired Pool Aircraft or will from time to time on or after the Effective Date acquire Pool Aircraft from ILFC or its Affiliates and (d) CA Subsidiary Holdco, Irish Subsidiary Holdco or an Owner Subsidiary will acquire directly or indirectly (and subject to the Local Requirements Exception) 100% of the Equity Interests of any Intermediate Lessee that will, from time to time on or after the Effective Date, act as leasing intermediary with respect to certain Pool Aircraft.

 

(4)                                 The Grantors in each case party thereto have agreed pursuant to the Credit Agreement, and it is a condition precedent to the making and release of the Loans by the Lenders under the Credit Agreement, that the Grantors grant the security interests required by this Agreement.

 

1

 

(5)                                 Each Grantor will derive substantial direct and indirect benefit from the transactions described above.

 

(6)                                 Deutsche Bank is willing to act as the Collateral Agent under this Agreement.

 

NOW, THEREFORE, in consideration of the premises, each Grantor hereby agrees with the Collateral Agent for its respective benefit and the benefit of the other Secured Parties as follows:

 

ARTICLE I
 DEFINITIONS

 

Section 1.01                             Definitions.  (a)  Certain Defined Terms.  For the purposes of this Agreement, the following terms have the meanings indicated below:

 

“1881 Act” has the meaning set forth in Section 2.20.

 

“Account Collateral” has the meaning specified in Section 2.01(e).

 

“Account Control Agreement” means the collateral account control agreement in the form attached hereto as Exhibit D in respect of the Collateral Account dated on or about the Effective Date among the Securities Intermediary, the Borrower and the Collateral Agent.

 

“Additional Grantor” has the meaning specified in Section 8.01(b).

 

“Agreed Currency” has the meaning specified in Section 8.07.

 

“Agreement” has the meaning specified in the recital of parties to this Agreement.

 

“Aircraft Objects” means, collectively, the “aircraft objects” (as defined in the Protocol) described on Schedule I hereto, as supplemented by each Collateral Supplement and Grantor Supplement.

 

“Airframe” means, individually, each of the airframes described on Schedule I hereto, as supplemented by any Collateral Supplement or Grantor Supplement.

 

“Beneficial Interest Collateral” has the meaning specified in Section 2.01(c).

 

“Borrower” has the meaning specified in the preliminary statements of this Agreement.

 

“Cape Town Lease” means any Lease (including any Lease between Grantors) that has been entered into, extended, assigned or novated after March 1, 2006 (or such later date as the Cape Town Convention may be given effect under the law of any applicable jurisdiction) (A) with a Cape Town Lessee or (B) where the related Aircraft Object is registered in a “Contracting State”.

 

2

 

“Cape Town Lessee” means a lessee under a Lease that is “situated in” a “Contracting State”.

 

“Certificated Security” means a certificated security (as defined in Section 8-102(a)(4) of the UCC) other than a Government Security.

 

“Collateral” has the meaning specified in Section 2.01.

 

“Collateral Agent” has the meaning specified in the recital of parties to this Agreement.

 

“Collateral Supplement” means a supplement to this Agreement in substantially the form attached as Exhibit A-1 executed and delivered by a Grantor.

 

“Credit Agreement” has the meaning specified in the preliminary statements to this Agreement.

 

“Deutsche Bank” has the meaning specified in the recital of parties to this Agreement.

 

“Eligible Institution” means (a) Deutsche Bank in its capacity as the Collateral Agent under this Agreement; (b) any bank not organized under the laws of the United States of America so long as it has either (i) a long-term unsecured debt rating of A or better by Standard & Poor’s and A2 or better by Moody’s or (ii) a short-term unsecured debt rating of A-1+ by Standard & Poor’s and P-1 or better by Moody’s; or (c) any bank organized under the laws of the United States of America or any state thereof, or the District of Columbia (or any branch of a foreign bank licensed under any such laws), so long as it (i) has either (A) a long-term unsecured debt rating of A (or the equivalent) or better by each of Standard & Poor’s and Moody’s or (B) a short-term unsecured debt rating of A-l+ by Standard & Poor’s and P-1 by Moody’s and (ii) can act as a securities intermediary under the New York Uniform Commercial Code.

 

“Enforcement Event” means, with respect to each section or provision of the Loan Documents where the term “Enforcement Event” is used, the occurrence and continuance of an Event of Default together with, except in the case of an Event of Default described in clauses (g), (h) or (i) of Article 6 of the Credit Agreement or if such notice is otherwise not permitted by applicable law, notice from the Collateral Agent to the Borrower and ILFC that such Event of Default shall constitute an Enforcement Event with respect to such section or provision (it being agreed that (a) the failure to include any such section or provision in any such notice shall not prejudice the Collateral Agent’s right to send a subsequent notice specifying such section or provision and (b) it shall be sufficient for any such notice to state that it applies to all such sections and provisions (without specifying the sections or provisions) or that it applies to all such sections and provisions except certain specified sections or provisions), unless revoked or rescinded pursuant to a notice to such effect from the Collateral Agent, for so long as such Event of Default is continuing.

 

“Equity Collateral” has the meaning specified in Section 2.07(a).

 

“Event of Default” means any Event of Default (as defined in the Credit

 

3

 

Agreement).

 

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

 

“Government Security” means any security issued or guaranteed by the United States of America or an agency or instrumentality thereof that is maintained in book-entry on the records of the FRBNY and is subject to Revised Book-Entry Rules.

 

“Grandparent Holdco” has the meaning specified in the recital of parties in this Agreement.

 

“Grantor Supplement” means a supplement to this Agreement in substantially the form attached as Exhibit A-2 executed and delivered by a Grantor.

 

“Grantors” has the meaning specified in the recital of parties to this Agreement.

 

“ILFC” has the meaning specified in the recital of parties in this Agreement.

 

“Instrument” means any “instrument” as defined in Section 9-102(a)(47) of the UCC.

 

“Insurances” means, in relation to each Pool Aircraft, any and all contracts or policies of insurance and reinsurance complying with the provisions of Schedule V hereto or an indemnity from a Governmental Authority as indemnitor, as appropriate, and required to be effected and maintained in accordance with this Agreement.

 

“International Registry” means the International Registry under the Cape Town Convention.

 

“Investment Collateral” has the meaning set forth in Section 2.01(d).

 

“Membership Interest Collateral” has the meaning specified in Section 2.01(b).

 

“Parent Holdco” has the meaning specified in the recital of parties in this Agreement.

 

“Parts” means all appliances, parts, components, instruments, appurtenances, accessories, furnishings, seats and other equipment of whatever nature (other than (a) engines, and (b) any appliance, part, component, instrument, appurtenance, accessory, furnishing, seat or other equipment that would qualify as a removable part and is leased by a Lessee from a third party or is subject to a security interest granted to a third party), that may from time to time be installed or incorporated in or attached or appurtenant to any Airframe or any engine or removed therefrom and, if the applicable Pool Aircraft or engine is subject to a Lease, is owned by a Grantor hereunder during the term of such Lease under the provisions of such Lease.

 

“Pledged Beneficial Interests” means all of the beneficial interest in the Pledged Equity Parties described in the attached Schedule II, as supplemented by any Collateral

 

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Supplement or Grantor Supplement.

 

“Pledged Borrower Debt” means any and all Indebtedness from time to time owing by the Borrower to any Borrower Party.

 

“Pledged CA Subsidiary Holdco Debt” means any and all Indebtedness from time to time owing by the CA Subsidiary Holdco to any Borrower Party.

 

“Pledged Debt” means the Pledged Grandparent Holdco Debt, the Pledged Parent Holdco Debt, the Pledged Borrower Debt, the Pledged Irish Subsidiary Holdco Debt, the Pledged CA Subsidiary Holdco Debt, the Pledged Owner Subsidiary Debt and the Pledged Intermediate Lessee Debt.

 

“Pledged Debt Collateral” has the meaning assigned to such term in Section 2.01(a)(iii).

 

“Pledged Equity Interests” means the Pledged Beneficial Interests, the Pledged Membership Interests and the Pledged Stock.

 

“Pledged Equity Party” means the Parent Holdco, the Borrower, the Irish Subsidiary Holdco, the CA Subsidiary Holdco, each Owner Subsidiary and each Intermediate Lessee.

 

“Pledged Grandparent Holdco Debt” means any and all Indebtedness from time to time owing by Grandparent Holdco to any Borrower Party.

 

“Pledged Intermediate Lessee Debt” means any and all Indebtedness from time to time owing by any Intermediate Lessee to any Borrower Party.

 

“Pledged Irish Subsidiary Holdco Debt” means any and all Indebtedness from time to time owing by the Irish Subsidiary Holdco to any Borrower Party.

 

“Pledged Owner Subsidiary Debt” means any and all Indebtedness from time to time owing by any Owner Subsidiary to any Borrower Party.

 

“Pledged Membership Interests” means all of the membership interests in the Pledged Equity Parties described in the attached Schedule II, as supplemented by any Collateral Supplement or Grantor Supplement.

 

“Pledged Parent Holdco Debt” means any and all Indebtedness from time to time owing by Parent Holdco to any Borrower Party.

 

“Pledged Stock” means the outstanding shares of capital stock and/or issued share capital of the Pledged Equity Parties described in the attached Schedule II, as supplemented by any Collateral Supplement or Grantor Supplement.

 

“Received Currency” has the meaning specified in Section 8.07.

 

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“Relevant Collateral” has the meaning specified in Section 2.07(a).

 

“Required Cape Town Registrations” has the meaning set forth in Section 2.08(c).

 

“Revised Book-Entry Rules” means 31 C.F.R. § 357 (Treasury bills, notes and bonds); 12 C.F.R. § 615 (book-entry securities of the Farm Credit Administration); 12 C.F.R. §§ 910 and 912 (book-entry securities of the Federal Home Loan Banks); 24 C.F.R. § 81 (book-entry securities of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation); 12 C.F.R. § 1511 (book-entry securities of the Resolution Funding Corporation); 31 C.F.R. § 354 (book-entry securities of the Student Loan Marketing Association); and any substantially comparable book-entry rules of any other Federal agency or instrumentality.

 

“Secured Obligations” has the meaning assigned to the term “Obligations” in the Credit Agreement.

 

“Secured Party” means any of or, in the plural form, all of the Collateral Agent, the Lenders, and the Administrative Agent.

 

“Securities Account” means a securities account as defined in Section 8-501(a) of the UCC maintained in the name of the Collateral Agent as “entitlement holder” (as defined in Section 8-102(a)(7) of the UCC) on the books and records of a Securities Intermediary whose “securities intermediary’s jurisdiction” (within the meaning of Section 8-110(e) of the UCC) is the State of New York.

 

“Securities Intermediary” means any “securities intermediary” with respect to the Collateral Agent as defined in 31 C.F.R. Section 357.2 or Section 8-102(a)(14) of the UCC.

 

“Security Collateral” has the meaning specified in Section 2.01(a).

 

“Uncertificated Security” means an uncertificated security (as defined in Section 8-102(a)(18) of the UCC) other than a Government Security.

 

(b)                                 Terms Defined in the Cape Town Convention.  The following terms shall have the respective meanings ascribed thereto in, or as otherwise used in, the Cape Town Convention: “Contracting State”, “contract of sale”, “international interest” and “situated in”.

 

(c)                                  Terms Defined in the Credit Agreement.  For all purposes of this Agreement, all capitalized terms used but not defined in this Agreement shall have the respective meanings assigned to such terms in the Credit Agreement.

 

(d)                                 Certain Terms Used in the Account Control Agreement.  As between the parties hereto, it is agreed that references in the Account Control Agreement to “enforcement event” and “loan documents” shall be construed respectively as references to “Enforcement Event” and “Loan Documents” as such terms are defined herein and in the Credit Agreement.

 

Section 1.02                             Construction and Usage.  Unless the context otherwise requires:

 

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(a)                                 A term has the meaning assigned to it and an accounting term not otherwise defined has the meaning assigned to it in accordance with GAAP.

 

(b)                                 The terms “herein”, “hereof” and other words of similar import refer to this Agreement as a whole and not to any particular Article, Section or other subdivision.

 

(c)                                  Unless otherwise indicated in context, all references to Articles, Sections, Schedules or Exhibits refer to an Article or Section of, or a Schedule or Exhibit to, this Agreement.

 

(d)                                 Words of the masculine, feminine or neuter gender shall mean and include the correlative words of other genders, and words in the singular shall include the plural, and vice versa.

 

(e)                                  The terms “include”, “including” and similar terms shall be construed as if followed by the phrase “without limitation”.

 

(f)                                   References in this Agreement to an agreement or other document (including this Agreement) include references to such agreement or document, as supplemented, amended, replaced or otherwise modified (without, however, limiting the effect of the provisions of this Agreement with regard to any such supplement, amendment, replacement or modification), and the provisions of this Agreement apply to successive events and transactions.  References to any Person shall include such Person’s successors in interest and permitted assigns.

 

(g)                                  References in this Agreement to any statute or other legislative provision shall include any statutory or legislative modification or re-enactment thereof, or any substitution therefor, and references to any governmental Person shall include reference to any governmental Person succeeding to the relevant functions of such Person.

 

(h)                                 References in this Agreement to any action, remedy or method of judicial proceeding for the enforcement of the rights of creditors or of security shall be deemed to include, in respect of any jurisdiction other than the State of New York, references to such action, remedy or method of judicial proceeding for the enforcement of the rights of creditors or of security available or appropriate in such jurisdiction as shall most nearly approximate such action, remedy or method of judicial proceeding described or referred to in this Agreement.

 

(i)                                     Where any payment is to be made, funds applied or any calculation is to be made hereunder on a day which is not a Business Day, unless any Loan Document otherwise provides, such payment shall be made, funds applied and calculation made on the next succeeding Business Day, and payments shall be adjusted accordingly; provided, however, that no additional interest shall be due in respect of such delay.

 

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ARTICLE II

SECURITY

 

Section 2.01                             Grant of Security.

 

To secure the Secured Obligations, each Grantor hereby assigns and pledges to the Collateral Agent, for its benefit and the benefit of the other Secured Parties, and hereby grants to the Collateral Agent for its benefit and the benefit of the other Secured Parties a security interest in, all of such Grantor’s right, title and interest in and to the following, whether now owned or hereafter acquired (collectively, the “Collateral”):

 

(a)                                 with respect to each Grantor, all of the following (the “Security Collateral”):

 

(i)                                     the Pledged Stock and the certificates representing such Pledged Stock, and all dividends, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the Pledged Stock;

 

(ii)                                  all additional shares of the capital stock of any other Pledged Equity Party from time to time acquired by such Grantor in any manner, including the capital stock of any other Pledged Equity Party that may be formed from time to time, and all certificates, if any, representing such additional shares of the capital stock and all dividends, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all such additional shares; and

 

(iii)                               the Pledged Debt and all instruments evidencing the Pledged Debt, and all interest, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the Pledged Debt (the “Pledged Debt Collateral”);

 

(b)                                 with respect to each Grantor, all of the following (the “Membership Interest Collateral”):

 

(i)                                     the Pledged Membership Interests, all certificates, if any, from time to time representing all of such Grantor’s right, title and interest in the Pledged Membership Interests, any contracts and instruments pursuant to which any such Pledged Membership Interests are created or issued and all distributions, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the Pledged Membership Interests; and

 

(ii)                                  all of such Grantor’s right, title and interest in all additional membership interests in any other Pledged Equity Party from time to time acquired by such Grantor in any manner, including the membership interests in any other Pledged Equity Party that may be formed from time to time, and all certificates, if any, from time to time representing such additional membership interests and all distributions, cash, instruments and other property from time to time received, receivable or otherwise

 

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distributed in respect of or in exchange for any or all such additional membership interests;

 

(c)                                  with respect to each Grantor, all of the following (the “Beneficial Interest Collateral”):

 

(i)                                     the Pledged Beneficial Interest, all certificates, if any, from time to time representing all of such Grantor’s right, title and interest in the Pledged Beneficial Interest, any contracts and instruments pursuant to which any such Pledged Beneficial Interest are created or issued and all distributions, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the Pledged Beneficial Interest; and

 

(ii)                                  all of such Grantor’s right, title and interest in all additional beneficial interests in any other Pledged Equity Party from time to time acquired by such Grantor in any manner, including the beneficial interests in any other Pledged Equity Party that may be formed from time to time, the trust agreements and any other contracts and instruments pursuant to which any such Pledged Equity Party is created or issued, and all certificates, if any, from time to time representing such additional beneficial interests and all distributions, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all such additional beneficial interests;

 

(d)                                 all other “investment property” (as defined in Section 9-102(a)(49) of the UCC) of such Grantor (the “Investment Collateral”) including written notification of all interest, dividends, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the then existing Investment Collateral, but excluding any loans or advances made, or dividends, contributions or distributions or other amounts paid, by any Pledged Equity Party to any Transaction Party;

 

(e)                                  with respect to each Grantor, all right of such Grantor in and to the Collateral Account and all funds, cash, investment property, investments, securities, instruments or other property (including all “financial assets” within the meaning of Section 8-102(a)(9) of the UCC) at any time or from time to time credited to any such account (collectively, the “Account Collateral”); and

 

(f)                                   all proceeds of any and all of the foregoing Collateral (including proceeds that constitute property of the types described in subsections (a), (b), (c), (d) and (e) of this Section 2.01);

 

provided, however, that notwithstanding any of the foregoing provisions, so long as no Enforcement Event shall have occurred and be continuing, each Grantor shall have the right, to the exclusion of the Collateral Agent, to (i) all distributions, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the Security Collateral (other than the Pledged Debt), (ii) all interest, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the Pledged Debt, and (iii) the Investment Collateral

 

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(subject to the exclusion in Section 2.01(d), and once paid by a Grantor to a non-Grantor shall be free and clear of the Lien hereof and shall not constitute Collateral), and if an Enforcement Event shall have occurred and be continuing, no Grantor shall make any such payment to a non-Grantor without the Collateral Agent’s consent The foregoing proviso shall in no event give rise to any right on behalf of any Transaction Party to cause the release of amounts from the Collateral Account other than in accordance with the Loan Documents; provided further that the Collateral shall not include any Non-Collateral Assets.

 

Section 2.02                             Security for Obligations.  This Agreement secures the payment and performance of all Secured Obligations of the Grantors to each Secured Party (subject to the subordination provisions of this Agreement) and shall be held by the Collateral Agent in trust for the Secured Parties.  Without limiting the generality of the foregoing, this Agreement secures the payment of all amounts that constitute part of the Secured Obligations and would be owed by any Grantor to any Secured Party but for the fact that Secured Obligations are unenforceable or not allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving such Grantor.

 

Section 2.03                             Representations and Warranties of the Grantors.  Each Grantor represents and warrants as of the date of this Agreement, the Effective Date, each Release Date in respect of which such Grantor is a Relevant Release Party and as of each date on which such Grantor executes and delivers a Grantor Supplement or a Collateral Supplement, as follows:

 

(a)                                 Each Pool Aircraft is legally and beneficially Owned by the Owner Subsidiary identified as the Owner of such Pool Aircraft in the applicable Release Request or legally Owned by the Owner Subsidiary and beneficially Owned by a Subsidiary Holdco or another Owner Subsidiary, except to the extent of the Local Requirements Exception and as provided in the definition of “Own”.  None of the Pool Aircraft Assets has been sold in violation of the provisions of the Loan Documents, or is currently pledged, assigned or otherwise encumbered except for Permitted Liens, and no Pool Aircraft Assets are described in (i) any UCC financing statements filed against any Transaction Party other than UCC financing statements which have been (or have been agreed by the secured parties referenced therein to be) terminated and UCC Financing Statements filed in connection with Permitted Liens or (ii) any other mortgage registries, including the International Registry (which for the avoidance of doubt, shall not include any contract of sale) or filing records that may be applicable to the Pool Aircraft or Collateral in any other relevant jurisdiction, other than such filings or registrations that have been (or have been agreed by the secured parties referenced therein to be) terminated or that have been made in connection with Permitted Liens. Except to the extent of the Local Requirements Exception and as provided in the definition of “Own”, the Grantors are the legal and beneficial owners of the Collateral. None of the Collateral has been sold in violation of the provisions of the Loan Documents, or is currently pledged, assigned or otherwise encumbered other than pursuant to the terms of the Loan Documents and except for Permitted Liens.  No Collateral is described in (i) any UCC financing statements filed against any Pledged Equity Party other than UCC financing statements which have been (or have been agreed by the secured parties referenced therein to be) terminated and the UCC financing statements filed in connection with Permitted Liens or (ii) any other mortgage registries, including the International Registry (which for the avoidance of doubt, shall not include any contract of sale), or filing records that may be applicable to the Collateral in any other relevant jurisdiction, other than such filings or

 

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registrations that have been (or have been agreed by the secured parties referenced therein to be) terminated or that have been made in connection with Permitted Liens, this Agreement or any other security document in favor of the Collateral Agent for the benefit of the Secured Parties, or, with respect to any Lease, in favor of the applicable Lessor Subsidiary or the Lessee thereunder.

 

(b)                                 In each case as and to the extent required under the Express Perfection Requirements, this Agreement creates a valid and (upon the taking of the actions required hereby) perfected security interest in favor of the Collateral Agent in the Collateral as security for the Secured Obligations, subject in priority to no other Liens (other than Permitted Liens), and all filings and other actions necessary to perfect and protect such security interest as a first priority security interest of the Collateral Agent have been (or to the extent permitted hereby or in the case of future Collateral, will be) duly taken, enforceable against the applicable Grantors and creditors of and purchasers from such Grantors.

 

(c)                                  No Grantor has any trade names except as set forth on Schedule III hereto.

 

(d)                                 No consent of any other Person and no authorization, approval or other action by, and no notice to or filing with, any governmental authority or regulatory body or other third party (including, for the avoidance of doubt, the International Registry) is required under any applicable law that is necessary to comply with the Express Perfection Requirements (i) for the grant by such Grantor of the assignment and security interest granted hereby, (ii) for the execution, delivery or performance of this Agreement by such Grantor or (iii) for the perfection or maintenance of the pledge, assignment and security interest created hereby, except for (A) the filing of financing and continuation statements under the UCC, (B) the Required Cape Town Registrations, (C) the applicable Irish filings pursuant to Section 2.08(e) and (D) such other filings as are required under relevant local law in the case of Grantors that are not domiciled in the United States or a state thereof.

 

(e)                                  The chief place of business, organizational identification number (if applicable) and chief executive or registered office of such Grantor and the office where such Grantor keeps records of the Collateral are located at the address specified opposite the name of such Grantor on the attached Schedule IV or, in the case of records, at ILFC.

 

(f)                                   The Pledged Stock constitutes the percentage of the issued and outstanding shares of capital stock of the issuers thereof indicated on the attached Schedule II.  The Pledged Membership Interests constitute the percentage of the membership interest of the issuer thereof, as indicated on Schedule II hereto.  The Pledged Beneficial Interests constitute the percentage of the beneficial interest of the issuer thereof indicated on Schedule II hereto.

 

(g)                                  The Pledged Stock, the Pledged Membership Interests and the Pledged Beneficial Interests have been duly authorized and validly issued and are fully paid up and nonassessable.  The Pledged Debt has been duly authorized or issued and delivered and is the legal, valid and binding obligation of each applicable Borrower Party thereunder.

 

(h)                                 The Pledged Stock and the Pledged Membership Interests constitute “certificated securities” within the meaning of Section 8-102(4) of the UCC. If the issuer thereof is organized under the laws of the United States or a state thereof, the terms of any Pledged

 

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Equity Interest expressly provide that such Pledged Equity Interest shall be governed by Article 8 of the Uniform Commercial Code as in effect in the jurisdiction of the issuer of such Pledged Membership Interest or such Article 8 shall be applicable thereto under applicable Laws.  Any Certificated Security or Instrument evidencing the Pledged Stock, the Pledged Debt, the Pledged Beneficial Interests, the Pledged Membership Interests and any Investment Collateral have been delivered to the Collateral Agent in accordance with Section 2.05 and 2.07. The Pledged Stock and the Pledged Membership Interest either (i) are in bearer form, (ii) have been indorsed, by an effective indorsement, to the Collateral Agent or in blank or (iii) have been registered in the name of the Collateral Agent.  None of the Pledged Stock, the Pledged Beneficial Interests and the Pledged Membership Interest that constitute or evidence the Collateral have any marks or notations indicating that they have been pledged, assigned or otherwise conveyed to any person other than the Collateral Agent (other than those agreed by the secured parties referenced therein to be terminated or released).  Any Pledged Beneficial Interests either (i) constitute “certificated securities” within the meaning of Section 8-102(a)(4) of the UCC, have been delivered to the Collateral Agent and (1) are in bearer form, (2) have been indorsed, by an effective indorsement, to the Collateral Agent or in blank or (3) have been registered in the name of the Collateral Agent or (ii) a fully executed “control agreement” has been delivered to the Collateral Agent with respect to such Pledged Beneficial Interests.

 

Section 2.04                             Grantors Remain Liable.  Anything contained herein to the contrary notwithstanding, (a) each Grantor shall remain liable under the contracts and agreements included in the Collateral to the extent set forth therein to perform all of its duties and obligations thereunder to the same extent as if this Agreement had not been executed, (b) the exercise by the Collateral Agent of any of its rights hereunder shall not release any Grantor from any of its duties or obligations under the contracts and agreements included in the Collateral and (c) in each case, unless the Collateral Agent or any other Secured Party, expressly in writing or by operation of law, assumes or succeeds to the interests of any Grantor hereunder, no Secured Party shall have any obligation or liability under the contracts and agreements included in the Collateral by reason of this Agreement, nor shall any Secured Party be obligated to perform any of the obligations or duties of any Grantor under the contracts and agreements included in the Collateral or to take any action to collect or enforce any claim for payment assigned under this Agreement.

 

Section 2.05                             Delivery of Collateral.  All certificates or instruments representing or evidencing any Collateral, if deliverable, shall be delivered to and held by or on behalf of the Collateral Agent and shall be in suitable form for transfer by delivery, or shall be accompanied by duly executed instruments of transfer or assignment in blank, all in form and substance satisfactory to evidence the security interests granted thereby.  The Collateral Agent shall have the right, upon the occurrence and during the continuance of an Enforcement Event, to transfer to or to register in the name of the Collateral Agent or any of its nominees any or all of the Pledged Equity Interests, subject only to the revocable rights specified in Section 2.10(a).  In addition, the Collateral Agent shall have the right at any time, upon the occurrence and during the continuance of an Enforcement Event, to exchange certificates or instruments representing or evidencing any Collateral for certificates or instruments of smaller or larger denominations.

 

Section 2.06                             As to the Pool Aircraft Collateral.  (a)  The Grantors shall provide a true and complete copy of all documents or instruments constituting Pool Aircraft Collateral to

 

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the Collateral Agent on or prior to the Release Date in respect of such Pool Aircraft.  Subsequent to a Release Date in respect of a Pool Aircraft, upon (i) the inclusion of any additional such document or instrument in the Pool Aircraft Collateral in respect of such Pool Aircraft or (ii) the amendment or replacement thereof, the Grantors will deliver, or cause to be delivered, a copy thereof to the Collateral Agent (or within the time period set forth in Section 5.20(c)(ii) of the Credit Agreement, if applicable).  Each such document or instrument will have been duly authorized, executed and delivered by the relevant Transaction Party, will be in full force and effect and will be binding upon and enforceable against all parties thereto in accordance with its terms subject to customary exceptions.

 

(b)                                 The Grantors shall, at their expense, use reasonable commercial efforts, in accordance with Leasing Company Practice to (A) perform and observe, or cause to be performed and observed, all the terms and provisions of the documents and instruments constituting Pool Aircraft Collateral to be performed or observed by a Transaction Party and (B) after an Enforcement Event has occurred and is continuing take all such action to such end as may be from time to time reasonably requested by the Collateral Agent.

 

Section 2.07                             As to the Equity Collateral and Investment Collateral.  (a)  All Security Collateral, Membership Interest Collateral and Beneficial Interest Collateral (collectively, the “Equity Collateral”) and all Investment Collateral (together with the Equity Collateral, the “Relevant Collateral”) shall be delivered to the Collateral Agent as follows:

 

(i)                                     in the case of each Certificated Security or Instrument, by (A) causing the delivery of such Certificated Security or Instrument to the Collateral Agent, registered in the name of the Collateral Agent or duly endorsed by an appropriate person to the Collateral Agent or in blank and, in each case, held by the Collateral Agent, or (B) if such Certificated Security or Instrument is registered in the name of any Securities Intermediary on the books of the issuer thereof or on the books of any Securities Intermediary, by causing such Securities Intermediary to continuously credit by book entry such Certificated Security or Instrument to a Securities Account maintained by such Securities Intermediary in the name of the Collateral Agent and confirming in writing to the Collateral Agent that it has been so credited;

 

(ii)                                  in the case of each Uncertificated Security, by (A) causing such Uncertificated Security to be continuously registered on the books of the issuer thereof in the name of the Collateral Agent or, in the case of the Pledged Stock of the Borrower, registering in accordance with the Luxembourg Share Pledge the security interest constituted thereby in the register of shareholders of the Borrower or (B) if such Uncertificated Security is registered in the name of a Securities Intermediary on the books of the issuer thereof or on the books of any securities intermediary of a Securities Intermediary, by causing such Securities Intermediary to continuously credit by book entry such Uncertificated Security to a Securities Account maintained by such Securities Intermediary in the name of the Collateral Agent and confirming in writing to the Collateral Agent that it has been so credited; and

 

(iii)                               in the case of each Government Security registered in the name of any Securities Intermediary on the books of the FRBNY or on the books of any securities

 

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intermediary of such Securities Intermediary, by causing such Securities Intermediary to continuously credit by book entry such security to the collateral account maintained by such Securities Intermediary in the name of the Collateral Agent and confirming in writing to the Collateral Agent that it has been so credited.

 

(b)                                 Each Grantor and the Collateral Agent hereby represents, with respect to the Account Collateral, that it has not entered into, and hereby agrees that it will not enter into, any currently effective agreement (i) with any of the other parties hereto or any Securities Intermediary specifying any jurisdiction other than the State of New York as the “securities intermediary’s jurisdiction” within the meaning of Section 8-110(e) of the UCC in connection with any Securities Account with any Securities Intermediary referred to in Section 2.07(a) for purposes of 31 C.F.R. Section 357.11(b), Section 8-110(e) of the UCC or any similar state or Federal law, or (ii) with any other person relating to such account pursuant to which it has agreed that any Securities Intermediary may comply with entitlement orders made by such person.  The Collateral Agent represents that it will, by express agreement with each Securities Intermediary, provide for each item of property constituting Account Collateral held in and credited to the Securities Account, including cash, to be treated as a “financial asset” within the meaning of Section 8-102(a)(9)(iii) of the UCC for the purposes of Article 8 of the UCC.

 

(c)                                  Without limiting the foregoing, each Grantor and the Collateral Agent agree, and the Collateral Agent shall cause each Securities Intermediary, to take such different or additional action as may be required in order to maintain the perfection and priority of the security interest of the Collateral Agent in the Equity Collateral in the event of any change in applicable law or regulation, including Articles 8 and 9 of the UCC and regulations of the U.S. Department of the Treasury governing transfers of interests in Government Securities.

 

Section 2.08                             Further Assurances.  (a)  In each case to the extent required pursuant to the Express Perfection Requirements, each Grantor agrees that from time to time, at the expense of such Grantor, such Grantor shall promptly execute and deliver all further instruments and documents, and take all further action (including under the laws of any foreign jurisdiction), that may be necessary, or that the Collateral Agent may reasonably request, in order to perfect and protect any pledge, assignment or security interest granted or purported to be granted hereby or to enable the Collateral Agent to exercise and enforce its rights and remedies hereunder with respect to any Collateral.  Without limiting the generality of the foregoing but subject to the qualification that the following are required only to the extent of the Express Perfection Requirements, each Grantor shall:  (i) execute and file such financing or continuation statements, or amendments thereto, under the UCC and such other instruments or notices, that may be necessary, or as the Collateral Agent may reasonably request, in order to perfect and preserve the pledge, assignment and security interest granted or purported to be granted hereby and (ii) execute, file, record, or register such additional documents and supplements to this Agreement, including any further assignments, security agreements, pledges, grants and transfers, as may be required under the laws of any foreign jurisdiction of organization or domicile of the relevant Grantor hereunder or as the Collateral Agent may reasonably request, to create, attach, perfect, validate, render enforceable, protect or establish the priority of the security interest and lien of this Agreement.

 

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(b)                                 Each Grantor hereby authorizes the Collateral Agent to file one or more financing or continuation statements, and amendments thereto, under the UCC relating to all or any part of the Collateral without the signature of such Grantor where permitted by law.  A photocopy or other reproduction of this Agreement or any financing statement covering the Collateral or any part thereof shall be sufficient as a financing statement where permitted by law.

 

(c)                                  Each Grantor shall ensure that at all times an individual shall be appointed as administrator with respect to each Owner Subsidiary and each Intermediate Lessee for purposes of the International Registry and shall cause each such Owner Subsidiary and each such Intermediate Lessee to register or cause to be registered, in each case to the extent legally practicable, with the International Registry (collectively, the “Required Cape Town Registrations”) (i) the international interest provided for in any Cape Town Lease to which such Owner Subsidiary or Intermediate Lessee is a lessor or lessee; and (ii) the contract of sale with respect to any Pool Aircraft by which title to such Pool Aircraft is conveyed by or to such Owner Subsidiary, but only if the seller under such contract of sale is situated in a Contracting State or if such Aircraft Object is registered in a Contracting State and if such seller agrees to such registration.

 

(d)                                 With respect to each Grantor holding an Equity Interest in a Pledged Equity Party incorporated under the laws of Ireland, such Grantor shall cause each Security Document executed by it and an Additional Charge Over Shares or, in each case, its relevant particulars to be filed in the Irish Companies Registration Office and, where applicable, the Irish Revenue Commissioners within 21 days of execution thereof.

 

Section 2.09                             Place of Perfection; Records.  Each Grantor shall keep its chief place of business and chief executive office at the location therefor specified in Schedule IV and shall keep its records concerning the Collateral at such location or at ILFC’s chief executive office or, upon 30 days’ prior written notice to the Collateral Agent, at such other locations in a jurisdiction where all actions required by Section 2.03(e) shall have been taken with respect to the Collateral.  Subject to applicable confidentiality restrictions, each Grantor shall hold and preserve such records and, if an Enforcement Event shall have occurred and be continuing, shall permit representatives of the Collateral Agent upon reasonable prior notice at any time during normal business hours reasonably to inspect and make abstracts from such records, all at the sole cost and expense of such Grantor.

 

Section 2.10                             Voting Rights; Dividends; Etc.  (a)  So long as no Enforcement Event shall have occurred and be continuing:

 

(i)                                     Each Grantor shall be entitled to exercise any and all voting and other consensual rights pertaining to all or any part of the Equity Collateral pledged by such Grantor for any purpose not inconsistent with the terms of this Agreement, the charter documents of such Grantor, or the Loan Documents; provided that such Grantor shall not exercise or shall refrain from exercising any such right if such action would constitute a breach of its obligations under the Loan Documents; and

 

(ii)                                  The Collateral Agent shall execute and deliver (or cause to be executed and delivered) to such Grantor all such proxies and other instruments as such

 

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Grantor may reasonably request in writing and provide for the purpose of enabling such Grantor to exercise the voting and other rights that it is entitled to exercise pursuant to Section 2.10(a)(i).

 

(b)                                 After an Enforcement Event shall have occurred and be continuing, any and all distributions, dividends and interest paid in respect of the Equity Collateral pledged by such Grantor, including any and all (i) distributions, dividends and interest paid or payable other than in cash in respect of, and instruments and other property received, receivable or otherwise distributed in respect of, or in exchange for, such Security Collateral, Membership Interest Collateral or Beneficial Interest Collateral; (ii) distributions, dividends and other distributions paid or payable in cash in respect of such Security Collateral, Membership Interest Collateral or Beneficial Interest Collateral in connection with a partial or total liquidation or dissolution or in connection with a reduction of capital, capital surplus or paid-in surplus; and (iii) cash paid, payable or otherwise distributed in respect of principal of, or in redemption of, or in exchange for, such Security Collateral, Membership Interest Collateral or Beneficial Interest Collateral shall be forthwith delivered to the Collateral Agent and, if received by such Grantor, shall be received in trust for the benefit of the Collateral Agent, be segregated from the other property or funds of such Grantor and be forthwith delivered to the Collateral Agent in the same form as so received (with any necessary endorsement).

 

(c)                                  During the continuance of an Enforcement Event, all rights of each Grantor to exercise or refrain from exercising the voting and other consensual rights that it would otherwise be entitled to exercise pursuant to Section 2.10(a)(i) and 2.10(a)(ii) shall cease, and all such rights shall thereupon become vested in the Collateral Agent, which shall thereupon have the sole right to exercise or refrain from exercising such voting and other consensual rights.

 

Section 2.11                             Transfers and Other Liens; Additional Shares or Interests.  (a) No Grantor shall (i) sell, assign (by operation of law or otherwise) or otherwise dispose of, or grant any option with respect to, any of the Collateral or (ii) create or suffer to exist any Lien upon or with respect to any of the Collateral, in the case of clause (i) or (ii) other than a Permitted Lien or as otherwise provided for or permitted in any Loan Document.

 

(b)                                 Except as otherwise provided pursuant to the Loan Documents, the Grantors (other than Grandparent Holdco) shall not issue, deliver or sell any shares, interests, participations or other equivalents except those pledged hereunder and except to the extent of the Local Requirements Exception.  Any beneficial interests, membership interests or capital stock or other securities or interests issued in respect of or in substitution for the Pledged Stock, the Pledged Membership Interests or the Pledged Beneficial Interest shall be issued or delivered (with any necessary endorsement) to the Collateral Agent in accordance with Section 2.07.

 

Section 2.12                             Collateral Agent Appointed Attorney-in-Fact.  Each Grantor hereby irrevocably appoints, as security for the Secured Obligations, the Collateral Agent as such Grantor’s attorney-in-fact, with full authority in the place and stead of such Grantor and in the name of such Grantor or otherwise, from time to time in the Collateral Agent’s discretion during the occurrence and continuance of an Enforcement Event, to take any action and to execute any instrument that the Collateral Agent may deem necessary or advisable to accomplish the purposes of this Agreement, including:

 

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(a)                                 to ask for, demand, collect, sue for, recover, compromise, receive and give acquittance and receipts for moneys due and to become due under or in respect of any of the Collateral;

 

(b)                                 to receive, indorse and collect any drafts or other instruments and documents in connection included in the Collateral;

 

(c)                                  to file any claims or take any action or institute any proceedings that the Collateral Agent may deem necessary for the collection of any of the Collateral or otherwise to enforce the rights of the Collateral Agent with respect to any of the Collateral; and

 

(d)                                 to execute and file any financing or continuation statements, or amendments thereto, and such other instruments or notices, as may be necessary, in order to perfect (except in the case of the Beneficial Interest Collateral provided pursuant to Section 2.01(c)) and preserve the pledge, assignment and security interest granted hereby; provided, that the Collateral Agent’s exercise of any such power in this clause (d) shall be subject to the Express Perfection Requirements.

 

Section 2.13                             Collateral Agent May Perform.  If any Grantor fails to perform any agreement contained in this Agreement, the Collateral Agent may (but shall not be obligated to) after such prior notice as may be reasonable under the circumstances, itself perform, or cause performance of, such agreement, and the expenses of the Collateral Agent incurred in connection with doing so shall be payable by the Grantors.

 

Section 2.14                             Covenant to Pay.  Each Grantor covenants with the Collateral Agent (for the benefit of the Secured Parties) that it will pay or discharge any monies and liabilities whatsoever that are now, or at any time hereafter may be, due, owing or payable by such Grantor in any currency, actually or contingently, solely and/or jointly, and/or severally with another or others, as principal or surety on any account whatsoever pursuant to the Loan Documents in accordance with their terms.  Each Grantor agrees that (except as provided in Article 7 of the Credit Agreement) no payment or distribution by such Grantor pursuant to the preceding sentence shall entitle such Grantor to exercise any rights of subrogation in respect thereof until the related Secured Obligations shall have been paid in full.

 

Section 2.15                             Delivery of Collateral Supplements; Delivery of Grantor Supplements.  (a)  Upon the acquisition by any Grantor of any Security Collateral, Membership Interest Collateral or Beneficial Interest Collateral, such Grantor shall concurrently execute and deliver to the Collateral Agent a Collateral Supplement duly completed with respect to such Collateral and shall take such steps with respect to the perfection of such Collateral as are called for by this Agreement for Collateral of the same type; provided that the foregoing shall not be construed to provide for any action with respect to perfection not required by the Express Perfection Requirements; and provided further that the failure of any Grantor to deliver any Collateral Supplement as to any such Collateral shall not impair the lien of this Agreement as to such Collateral.  Upon the acquisition by any Owner Subsidiary of an Aircraft Object (other than an aircraft engine) not previously described in Schedule I hereto as supplemented by Annex I to each Grantor Supplement and Collateral Supplement, the Grantor that directly Owns the Equity

 

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Interest in such Owner Subsidiary shall provide an updated Collateral Supplement describing such Aircraft Object.

 

(b)                                 Each Grantor shall, prior to or simultaneously with such Person Owning the Equity Interests in any Subsidiary (other than a Non-Collateral Subsidiary), cause any Subsidiary Obligor that was not a signatory hereto on the date of this Agreement to enter into a Grantor Supplement and become a Grantor hereunder.

 

Section 2.16                             Insurance.  The Grantors shall cause to be maintained, or procure that the relevant Lessee maintains, hull and third party liability insurance policies in respect of each Pool Aircraft in accordance with the terms of Schedule V hereto.

 

Section 2.17                             Covenant Regarding Control.  No Grantor shall cause nor permit any Person other than the Collateral Agent to have “control” (as defined in Section 8-106 of the UCC) of the Collateral Account pursuant to the terms of the Credit Agreement and the Account Control Agreement.

 

Section 2.18                             Covenant Regarding Account Collateral.  Borrower shall enter into the Account Control Agreement as of the date hereof.  The Collateral Agent agrees for purposes of paragraph 7 of the Account Control Agreement that it will confirm in writing to the Securities Intermediary its agreement to any investments selected by the Borrower which are Permitted Investments.

 

Section 2.19                             As to Irish Law.  Notwithstanding anything to the contrary contained in this Agreement and in addition to and without prejudice to any other rights or power of the Collateral Agent under this Agreement or under general law in any relevant jurisdiction, at any time that the Collateral shall become enforceable as provided in Section 3.01, the Collateral Agent shall be entitled to appoint a receiver under this Agreement or under the Land and Conveyancing Law Reform Act 2009 (as amended and as the same may be amended, modified or replaced from time to time, the “2009 Act”) without the need for the occurrence of any of the events specified in (a) to (c) of section 108(1) (Appointment of Receiver) of the 2009 Act, such receiver shall have all such powers, rights and authority conferred under the 2009 Act, this Agreement and otherwise under the laws of Ireland without any limitation or restriction imposed by the 2009 Act or otherwise under the laws of Ireland which may be excluded or removed. The statutory power of sale conferred by section 100 (Power of sale) of the 2009 Act shall apply to the Collateral free from restrictions contained in section 100(1), (2), (3) and (4) and without the requirement to serve notice (as provided for in section 100(1)) and section 108 (7) (Remuneration of a receiver) of the 2009 Act shall not apply to the Collateral or to any receiver appointed under this Agreement.

 

Section 2.20                             Additional Charges Over Shares.  Each Grantor undertakes with the Collateral Agent to enter into an Additional Charge Over Shares in respect of the Equity Interests held by it of any Subsidiary of a Grantor which is incorporated under the laws of Ireland and in respect of any other Subsidiary of a Grantor, in each case to the extent such Additional Charge Over Shares is necessary to perfect or protect the Collateral Agent’s interests in such Equity Interests under applicable Law and to the extent required under the Express Perfection Requirements.

 

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ARTICLE III
 REMEDIES

 

Section 3.01                             Remedies.  Notwithstanding anything herein or in any other Loan Document to the contrary, if any Enforcement Event shall have occurred and be continuing, and in each case subject to the quiet enjoyment rights of the applicable Lessee of any Pool Aircraft:

 

(a)                                 The Collateral Agent may exercise in respect of the Collateral, in addition to other rights and remedies provided for herein (including, for the avoidance of doubt, the rights and remedies of the Collateral Agent provided for in Section 2.10(c)), all of the rights and remedies of a secured party upon default under the UCC (whether or not the UCC applies to the affected Collateral) and all of the rights and remedies under applicable law and also may (i) require any Grantor to, and such Grantor hereby agrees that it shall at its expense and upon written request of the Collateral Agent forthwith, assemble all or any part of the Collateral as directed by the Collateral Agent and make it available to the Collateral Agent at a place to be designated by the Collateral Agent that is reasonably convenient to both parties and (ii) without notice except as specified below, sell or cause the sale of the Collateral or any part thereof in one or more parcels at public or private sale, at any of the Collateral Agent’s offices or elsewhere, for cash, on credit or for future delivery, and upon such other terms as the Collateral Agent may deem commercially reasonable. Each Grantor agrees that, to the extent notice of sale shall be required by law, at least ten days’ prior notice to such Grantor of the time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable notification.  The Collateral Agent shall not be obligated to make any sale of Collateral regardless of notice of sale having been given.  The Collateral Agent may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned.

 

(b)                                 All cash proceeds received by the Collateral Agent in respect of any sale of, collection from, or other realization upon all or any part of the Collateral shall be applied in accordance with Section 3.02.  Any sale or sales conducted in accordance with the terms of this Section 3.01 shall be deemed conclusive and binding on each Grantor and the Secured Parties.

 

Section 3.02                             Priority of Payments.  The Collateral Agent hereby agrees that all cash proceeds received by the Collateral Agent in respect of any Collateral pursuant to Section 3.01 hereof and any payments by any Grantor to the Collateral Agent following an Enforcement Event shall be paid by the Collateral Agent in the order of priority set forth below:

 

(a)                                 first, to the Collateral Agent for the benefit of the Secured Parties, until payment in full in cash of the Secured Obligations then outstanding; and

 

(b)                                 second, all remaining amounts to the relevant Grantors or whomsoever may be lawfully entitled to receive such amounts as directed by a court of competent jurisdiction.

 

ARTICLE IV
 SECURITY INTEREST ABSOLUTE

 

Section 4.01                             Security Interest Absolute.  A separate action or actions may be brought and prosecuted against each Grantor to enforce this Agreement, irrespective of whether

 

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any action is brought against any other Grantor or whether any other Grantor is joined in any such action or actions.  Except as otherwise provided in the Loan Documents, all rights of the Collateral Agent and the security interests and Liens granted under, and all obligations of each Grantor under, until the Secured Obligations then outstanding are paid in full, this Agreement and each other Loan Document shall be absolute and unconditional, irrespective of:

 

(a)                                 any lack of validity or enforceability of any Loan Document, Assigned Document or any other agreement or instrument relating thereto;

 

(b)                                 any change in the time, manner or place of payment of, the security for, or in any other term of, all or any of the Secured Obligations, or any other amendment or waiver of or any consent to any departure from any Loan Document or any other agreement or instrument relating thereto;

 

(c)                                  any taking, exchange, release or non-perfection of the Collateral or any other collateral or taking, release or amendment or waiver of or consent to departure from any guaranty, for all or any of the Secured Obligations;

 

(d)                                 any manner of application of Collateral, or proceeds thereof, to all or any of the Secured Obligations, or any manner of sale or other disposition of any Collateral for all or any of the Secured Obligations or any other assets of the Grantors;

 

(e)                                  any change, restructuring or termination of the corporate structure or existence of any Grantor; or

 

(f)                                   any other circumstance that might otherwise constitute a defense available to, or a discharge of, any Grantor or a third-party grantor of a security interest or a Person deemed to be a surety.

 

ARTICLE V
 THE COLLATERAL AGENT

 

The Collateral Agent and the Secured Parties agree among themselves as follows:

 

Section 5.01                             Authorization and Action.  (a)  Each Secured Party by its acceptance of the benefits of this Agreement hereby appoints and authorizes Deutsche Bank as the initial Collateral Agent to take such action as trustee on behalf of the Secured Parties and to exercise such powers and discretion under this Agreement and the other Loan Documents as are specifically delegated to the Collateral Agent by the terms of this Agreement and of the Loan Documents, and no implied duties and covenants shall be deemed to arise against the Collateral Agent.

 

(b)                                 The Collateral Agent accepts such appointment and agrees to perform the same but only upon the terms of this Agreement (including any quiet enjoyment covenants given to the Lessees) and agrees to receive and disburse all moneys received by it in accordance with the terms of this Agreement.  The Collateral Agent in its individual capacity shall not be answerable or accountable under any circumstances, except for its own willful misconduct or gross negligence (or simple negligence in the handling of funds or breach of any of its

 

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representations or warranties set forth in this Agreement) and the Collateral Agent shall not be liable for any action or inaction of any Grantor or any other parties to any of the Loan Documents.

 

Section 5.02                             Absence of Duties.  The powers conferred on the Collateral Agent under this Agreement with respect to the Collateral are solely to protect its interests in this Agreement and shall not impose any duty upon it, except as explicitly set forth herein, to exercise any such powers.  Except for the safe custody of any Collateral in its possession and the accounting for moneys actually received by it under this Agreement, the Collateral Agent shall not have any duty as to any Collateral, as to ascertaining or taking action with respect to calls, conversions, exchanges, maturities, tenders or other matters relative to any Collateral, whether or not any Secured Party has or is deemed to have knowledge of such matters, or as to the taking of any necessary steps to preserve or perfect rights against any parties or any other rights pertaining to any Collateral.  The Collateral Agent shall not have any duty to ascertain or inquire as to the performance or observance of any covenants, conditions or agreements on the part of any Grantor or Lessee.

 

Section 5.03                             Representations or Warranties.  The Collateral Agent shall not make nor shall it be deemed to have made any representations or warranties as to the validity, legality or enforceability of this Agreement, any other Loan Document or any other document or instrument or as to the correctness of any statement contained in any thereof, or as to the validity or sufficiency of any of the pledge and security interests granted hereby, except that the Collateral Agent in its individual capacity hereby represents and warrants (a) that each such specified document to which it is a party has been or will be duly executed and delivered by one of its officers who is and will at such time be duly authorized to execute and deliver such document on its behalf, and (b) this Agreement is or will be the legal, valid and binding obligation of the Collateral Agent in its individual capacity, enforceable against the Collateral Agent in its individual capacity in accordance with its terms, subject to the effect of any applicable bankruptcy, insolvency, reorganization, moratorium or similar law affecting creditors’ rights generally.

 

Section 5.04                             Reliance; Agents; Advice of Counsel.  (a)  The Collateral Agent shall not incur any liability to anyone as a result of acting upon any signature, instrument, notice, resolution, request, consent, order, certificate, report, opinion, bond or other document or paper believed by it to be genuine and believed by it to be signed by the proper party or parties.  The Collateral Agent may accept a copy of a resolution of the board or other governing body of any party to this Agreement or any Loan Document, certified by the Secretary or an Assistant Secretary thereof or other duly authorized Person of such party as duly adopted and in full force and effect, as conclusive evidence that such resolution has been duly adopted by said board or other governing body and that the same is in full force and effect.  As to any fact or matter the manner of ascertainment of which is not specifically described in this Agreement, the Collateral Agent shall be entitled to receive and may for all purposes hereof conclusively rely, and shall be fully protected in acting or refraining from acting, on a certificate, signed by an officer of any duly authorized Person, as to such fact or matter, and such certificate shall constitute full protection to the Collateral Agent for any action taken or omitted to be taken by them in good faith in reliance thereon.  The Collateral Agent shall assume, and shall be fully protected in assuming, that each other party to this Agreement is authorized by its constitutional documents

 

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to enter into this Agreement and to take all action permitted to be taken by it pursuant to the provisions of this Agreement, and shall not inquire into the authorization of such party with respect thereto.

 

(b)                                 The Collateral Agent may execute any of its powers hereunder or perform any duties under this Agreement either directly or by or through agents, including financial advisors, or attorneys or a custodian or nominee, provided, however, that the appointment of any agent shall not relieve the Collateral Agent of its responsibilities or liabilities hereunder.

 

(c)                                  The Collateral Agent may consult with counsel and any opinion of counsel or any advice of such counsel shall be full and complete authorization and protection in respect of any action taken or suffered or omitted by it under this Agreement in good faith and in accordance with such advice or opinion of counsel.

 

(d)                                 The Collateral Agent shall be under no obligation to exercise any of the rights or powers vested in it by this Agreement, or to institute, conduct or defend any litigation under this Agreement or in relation hereto, at the request, order or direction of any of the Secured Parties, pursuant to the provisions of this Agreement, unless such Secured Party shall have offered to the Collateral Agent reasonable security or indemnity reasonably satisfactory to it against the costs, expenses and liabilities which may be incurred therein or thereby.

 

(e)                                  The Collateral Agent shall not be required to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder, or in the exercise of any of its rights or powers, if there is reasonable ground for believing that the repayment of such funds or indemnity reasonably satisfactory to it against such risk or liability is not reasonably assured to it, and none of the provisions contained in this Agreement shall in any event require the Collateral Agent to perform, or be responsible or liable for the manner of performance of, any obligations of any Grantor under any of the Loan Documents.

 

(f)                                   If the Collateral Agent incurs expenses or renders services in connection with an exercise of remedies specified in Section 3.01, such expenses (including the fees and expenses of its counsel) and the compensation for such services are intended to constitute expenses of administration under any bankruptcy law or law relating to creditors’ rights generally.

 

(g)                                  The Collateral Agent shall not be charged with knowledge of an Event of Default unless the Collateral Agent obtains actual knowledge of such event or the Collateral Agent receives written notice of such event from any of the Secured Parties.

 

(h)                                 The Collateral Agent shall not have any duty to monitor the performance of any Grantor or any other party to the Loan Documents, nor shall the Collateral Agent have any liability in connection with the malfeasance or nonfeasance by such parties.  The Collateral Agent shall not have any liability in connection with compliance by any Grantor or any Lessee under a Lease with statutory or regulatory requirements related to the Collateral, any Pool Aircraft or any Lease.  The Collateral Agent shall not make or be deemed to have made any representations or warranties with respect to the Collateral, any Pool Aircraft or any Lease or the

 

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validity or sufficiency of any assignment or other disposition of the Collateral, any Pool Aircraft or any Lease.

 

Section 5.05                             No Individual Liability.  The Collateral Agent shall not have any individual liability in respect of all or any part of the Secured Obligations, and all shall look, subject to the lien and priorities of payment provided herein and in the Loan Documents, only to the property of the Grantors (to the extent provided in the Loan Documents) for payment or satisfaction of the Secured Obligations pursuant to this Agreement and the other Loan Documents.

 

ARTICLE VI
 SUCCESSOR COLLATERAL AGENT

 

Section 6.01                             Resignation and Removal of the Collateral Agent.  The Collateral Agent may resign at any time without cause by giving at least 30 days’ prior written notice to the Borrower and the Lenders.  The Required Lenders may at any time remove the Collateral Agent without cause by an instrument in writing delivered to the Borrower, the Lenders and the Collateral Agent.  No resignation by or removal of the Collateral Agent pursuant to this Section 6.01 shall become effective prior to the date of appointment by the Required Lenders of a successor Collateral Agent and the acceptance of such appointment by such successor Collateral Agent.

 

Section 6.02                             Appointment of Successor.  (a)  In the case of the resignation or removal of the Collateral Agent, the Required Lenders shall promptly appoint a successor Collateral Agent.  So long as no Event of Default shall have occurred and be continuing, any such successor Collateral Agent shall as a condition to its appointment be reasonably acceptable to the Borrower.  If a successor Collateral Agent shall not have been appointed and accepted its appointment hereunder within 60 days after the Collateral Agent gives notice of resignation, the retiring Collateral Agent, the Administrative Agent or the Required Lenders may petition any court of competent jurisdiction for the appointment of a successor Collateral Agent.  Any successor Collateral Agent so appointed by such court shall immediately and without further act be superseded by any successor Collateral Agent appointed as provided in the first sentence of this paragraph within one year from the date of the appointment by such court.

 

(b)                                 Any successor Collateral Agent shall execute and deliver to the relevant Secured Parties an instrument accepting such appointment.  Upon the acceptance of any appointment as Collateral Agent hereunder, a successor Collateral Agent, upon the execution and filing or recording of such financing statements, or amendments thereto, and such amendments or supplements to this Agreement, and, subject to the Express Perfection Requirements, such other instruments or notices, as may be necessary, or as the Administrative Agent may request in order to continue the perfection (if any) of the Liens granted or purported to be granted hereby, shall succeed to and become vested with all the rights, powers, discretion, privileges and duties of the retiring Collateral Agent, and the retiring Collateral Agent shall be discharged from its duties and obligations under this Agreement and the other Loan Documents.  The retiring Collateral Agent shall take all steps necessary to transfer all Collateral in its possession and all its control over the Collateral to the successor Collateral Agent.  All actions under this paragraph (b) shall be at the expense of the Borrower; provided that if a successor Collateral Agent has been

 

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appointed as a result of the circumstances described in Section 6.02(d), any actions under this paragraph (b) as relating to such appointment shall be at the expense of the successor Collateral Agent.

 

(c)                                  The Collateral Agent shall be an Eligible Institution, if there be such an institution willing, able and legally qualified to perform the duties of the Collateral Agent hereunder and, unless such institution is an Affiliate of a Secured Party or an Event of Default has occurred and is continuing, reasonably acceptable to the Borrower.

 

(d)                                 Any corporation or other entity into which the Collateral Agent may be merged or converted or with which it may be consolidated, or any corporation or other entity resulting from any merger, conversion or consolidation to which the Collateral Agent shall be a party, or any corporation or other entity to which substantially all the business of the Collateral Agent may be transferred, shall be the Collateral Agent under this Agreement without further act.

 

ARTICLE VII
 INDEMNITY AND EXPENSES

 

Section 7.01                             Indemnity.  (a)  Each of the Grantors shall indemnify, defend and hold harmless the Collateral Agent (and its officers, directors, employees, representatives and agents) from and against, any loss, liability or expense (including reasonable legal fees and expenses) incurred by it without negligence or bad faith on its part in connection with the acceptance or administration of this Agreement and its duties hereunder, including the costs and expenses of defending itself against any claim or liability and of complying with any process served upon it or any of its officers in connection with the exercise or performance of any of its powers or duties hereunder.  The Collateral Agent (i) must provide reasonably prompt notice to the applicable Grantor of any claim for which indemnification is sought, provided that the failure to provide notice shall only limit the indemnification provided hereby to the extent of any incremental expense or actual prejudice as a result of such failure; and (ii) must not make any admissions of liability or incur any significant expenses after receiving actual notice of the claim or agree to any settlement without the written consent of the applicable Grantor, which consent shall not be unreasonably withheld.  No Grantor shall be required to reimburse any expense or indemnity against any loss or liability incurred by the Collateral Agent through negligence or bad faith.

 

Each Grantor, as applicable, may, in its sole discretion, and at its expense, control the defense of the claim including, without limitation, designating counsel for the Collateral Agent and controlling all negotiations, litigation, arbitration, settlements, compromises and appeals of any claim; provided that (i) the applicable Grantor may not agree to any settlement involving any indemnified person that contains any element other than the payment of money and complete indemnification of the indemnified person without the prior written consent of the affected indemnified person, (ii) the applicable Grantor shall engage and pay the expenses of separate counsel for the indemnified person to the extent that the interests of the Collateral Agent are in conflict with those of such Grantor and (iii) the indemnified person shall have the right to approve the counsel designated by such Grantor which consent shall not be unreasonably withheld.

 

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(b)                                 Each Grantor shall within ten (10) Business Days after demand pay to the Collateral Agent the amount of any and all reasonable expenses, including the reasonable fees and expenses of its counsel and of any experts and agents, that the Collateral Agent may incur in connection with (i) the administration of this Agreement (in accordance with fee arrangements agreed between the Collateral Agent and ILFC), (ii) the custody, preservation, use or operation of, or the sale of, collection from or other realization upon, any of the Collateral, (iii) the exercise or enforcement of any of the rights of the Collateral Agent or any other Secured Party against such Grantor hereunder or (iv) the failure by any Grantor to perform or observe any of the provisions hereof.

 

Section 7.02                             Secured Parties’ Indemnity.  (a)  The Collateral Agent shall be entitled to be indemnified (subject to the limitations and requirements described in Section 7.01 mutatis mutandis) by the Lenders to the sole satisfaction of the Collateral Agent before proceeding to exercise any right or power under this Agreement at the request or direction of the Administrative Agent, provided that such indemnity by the Lenders shall not be required to the extent the Collateral Agent is indemnified with respect to such exercise by the Grantors and no Default or Event of Default has occurred and is continuing.

 

(b)                                 In order to recover under clause (a) above, the Collateral Agent: (i) must provide reasonably prompt notice to the Administrative Agent of any claim for which indemnification is sought, provided that the failure to provide notice shall only limit the indemnification provided hereby to the extent of any incremental expense or actual prejudice as a result of such failure; and (ii) must not make any admissions of liability or incur any significant expenses after receiving actual notice of the claim or agree to any settlement without the written consent of the Administrative Agent which consent shall not be unreasonably withheld.

 

(c)                                  The Administrative Agent may, in its sole discretion, and at its expense, control the defense of the claim including, without limitation, designating counsel for the Collateral Agent and controlling all negotiations, litigation, arbitration, settlements, compromises and appeals of any claim; provided that (i) the Administrative Agent may not agree to any settlement involving any indemnified person that contains any element other than the payment of money and complete indemnification of the indemnified person without the prior written consent of the affected indemnified person, (ii) the Administrative Agent shall engage and pay the expenses of separate counsel for the indemnified person to the extent that the interests of the Collateral Agent are in conflict with those of the Administrative Agent and (iii) the indemnified person shall have the right to approve the counsel designated by the Administrative Agent which consent shall not be unreasonably withheld.

 

(d)                                 The provisions of Section 7.01 and this Section 7.02 shall survive the termination of this Agreement or the earlier resignation or removal of the Collateral Agent.

 

Section 7.03                             No Compensation from Secured Parties.  The Collateral Agent agrees that it shall have no right against the Secured Parties for any fee as compensation for its services in such capacity.

 

Section 7.04                             Collateral Agent Fees.  In consideration of the Collateral Agent’s performance of the services provided for under this Agreement, the Grantors shall pay to the

 

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Collateral Agent the quarterly fee set forth in the Fee Letter and shall reimburse the Collateral Agent for expenses incurred including those associated with the International Registry.

 

ARTICLE VIII
 MISCELLANEOUS

 

Section 8.01                             Amendments; Waivers; Etc.  (a)  No amendment or waiver of any provision of this Agreement, and no consent to any departure by any party from the provisions of this Agreement, shall in any event be effective unless the same shall be in writing and signed by the Collateral Agent and each party hereto.  No failure on the part of the Collateral Agent to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any such right preclude any other or further exercise thereof or the exercise of any other right.  The Collateral Agent may, but shall have no obligation to, execute and deliver any amendment or modification which would affect its duties, powers, rights, immunities or indemnities hereunder.

 

(b)                                 Upon the execution and delivery by any Person of a Grantor Supplement, (i) such Person shall be referred to as an “Additional Grantor” and shall be and become a Grantor hereunder, and each reference in this Agreement to “Grantor” shall also mean and be a reference to such Additional Grantor, (ii) Annexes I, II, III and IV attached to each Grantor Supplement shall be incorporated into, become a part of and supplement Schedules I, II, III and IV, respectively, and the Collateral Agent may attach such Annexes as supplements to such Schedules; and each reference to such Schedules shall be a reference to such Schedules as so supplemented and (iii) such Additional Grantor shall be a Grantor for all purposes under this Agreement and shall be bound by the obligations of the Grantors hereunder.

 

(c)                                  Upon the execution and delivery by a Grantor of a Collateral Supplement, Annexes I and II to such Collateral Supplement shall be incorporated into, become a part of and supplement Schedules I and II, respectively, and the Collateral Agent may attach such Annexes as supplements to such Schedules; and each reference to such Schedules shall be a reference to such Schedules as so supplemented.

 

Section 8.02                             Addresses for Notices; Delivery of Documents.  (a)  Except in the case of notices and other communications expressly permitted to be given by telephone, all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by telecopier or electronic mail as follows, and all notices and other communications expressly permitted hereunder to be given by telephone shall be made to the applicable telephone number, as follows:

 

For each Grantor:

 

International Lease Finance Corporation
 10250 Constellation Blvd.
 Suite 3400
 Los Angeles, CA 90067
 Attention:  Treasurer with a copy to the General Counsel
 Facsimile:  (310) 788-1990

 

26

 

Telephone:  (310) 788-1999
 Electronic mail: legalnotices@ilfc.com

 

For the Collateral Agent:

 

Deutsche Bank AG New York Branch
 60 Wall Street
 New York, NY 10005
 Facsimile: (732) 380-3355
 Electronic mail:  Agency.Transactions@db.com

 

or, as to each party, at such other address as shall be designated by such party in a written notice to each other party complying as to delivery with the terms of this Section 8.02.  Notices and other communications sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices and other communications sent by telecopier or electronic mail shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next business day for the recipient).

 

(b)                                 All documents required to be delivered to the Collateral Agent shall be delivered in accordance with the provisions of Section 5.09(c) of the Credit Agreement.

 

Section 8.03                             Remedies.  The remedies herein provided are cumulative and not exclusive of any remedies provided by law.

 

Section 8.04                             Severability.  If any provision of this Agreement shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions hereof shall not in any way be affected or impaired.

 

Section 8.05                             Continuing Security Interest.  Subject to Section 8.06, this Agreement shall create a continuing security interest in the Collateral and shall (a) remain in full force and effect until the earlier of the payment in full in cash of the Secured Obligations then outstanding to the Secured Parties, (b) be binding upon each Grantor, its successors and assigns and (c) inure, together with the rights and remedies of the Collateral Agent hereunder, to the benefit of the Secured Parties and their respective successors, permitted transferees and permitted assigns.

 

Section 8.06                             Release and Termination.  (a)  Upon any sale, transfer or other disposition or removal from the Designated Pool of any Pool Aircraft (or Owner Subsidiary or Intermediate Lessee) or other item of Collateral in accordance with the terms of the Loan Documents, including the Pledged Equity Interest in each Owner Subsidiary or Intermediate Lessee that owns or leases such Pool Aircraft, or if applicable, Irish Subsidiary Holdco or CA Subsidiary Holdco (in each case, upon a removal of such Transaction Party in accordance with Sections 2.10 or 5.04 of the Credit Agreement), such Collateral will be deemed released from the Lien hereof (and related guarantees will be deemed released in accordance with Section 7.11 of the Credit Agreement), and the Collateral Agent will, at the relevant Grantor’s expense, execute and deliver to the Grantor of such item of Collateral such documents as such Grantor shall reasonably request and provide to the Collateral Agent to evidence the release of such item of

 

27

 

Collateral from the assignment and security interest granted hereby and to evidence the release of any related guaranty, and to the extent that (A) the Collateral Agent’s consent is required for any deregistration of the interests in such released Collateral from the International Registry or any other registry or (B) the Collateral Agent is required to initiate any such deregistration, the Collateral Agent shall ensure that such consent or such initiation of such deregistration is effected.

 

Any amounts released from the Collateral Account by the Collateral Agent in accordance with the terms of the Loan Documents shall be deemed released from the Lien hereof.

 

(b)                                 Upon the payment in full in cash of the Secured Obligations then outstanding, the pledge, assignment and security interest granted by Section 2.01 hereof shall terminate, the Collateral Agent shall cease to be a party to this agreement, and all provisions of this Agreement (except for this Section 8.06(b)) relating to the Secured Obligations, the Secured Parties or the Collateral Agent shall cease to be of any effect insofar as they relate to the Secured Obligations, the Secured Parties or the Collateral Agent.  Upon any such termination, the Collateral Agent will, at the relevant Grantor’s expense, execute and deliver to each relevant Grantor such documents as such Grantor shall prepare and reasonably request to evidence such termination.

 

(c)                                  If, prior to the termination of this Agreement, the Collateral Agent ceases to be the Collateral Agent in accordance with the definition of “Collateral Agent” in Section 1.01, all certificates, instruments or other documents being held by the Collateral Agent at such time shall, within five (5) Business Days from the date on which it ceases to be the Collateral Agent, be delivered to the successor Collateral Agent.

 

Section 8.07                             Currency Conversion.  If any amount is received or recovered by the Collateral Agent in a currency (the “Received Currency”) other than the currency in which such amount was expressed to be payable (the “Agreed Currency”), then the amount in the Received Currency actually received or recovered by the Collateral Agent, to the extent permitted by law, shall only constitute a discharge of the relevant Grantor to the extent of the amount of the Agreed Currency which the Collateral Agent was or would have been able in accordance with its or his normal procedures to purchase on the date of actual receipt or recovery (or, if that is not practicable, on the next date on which it is so practicable), and, if the amount of the Agreed Currency which the Collateral Agent is or would have been so able to purchase is less than the amount of the Agreed Currency which was originally payable by the relevant Grantor, such Grantor shall pay to the Collateral Agent for the benefit of the Secured Parties such amount as it shall determine to be necessary to indemnify the Collateral Agent and the Secured Parties against any loss sustained by it as a result (including the cost of making any such purchase and any premiums, commissions or other charges paid or incurred in connection therewith) and so that, to the extent permitted by law, (i) such indemnity shall constitute a separate and independent obligation of each Grantor distinct from its obligation to discharge the amount which was originally payable by such Grantor and (ii) shall give rise to a separate and independent cause of action and apply irrespective of any indulgence granted by the Collateral Agent and continue in full force and effect notwithstanding any judgment, order, claim or proof

 

28

 

for a liquidated amount in respect of the amount originally payable by any Grantor or any judgment or order and no proof or evidence of any actual loss shall be required.

 

Section 8.08                             Governing Law.  THIS AGREEMENT IS BEING DELIVERED IN THE STATE OF NEW YORK AND SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

 

Section 8.09                             Jurisdiction; Consent to Service of Process.  (a)  To the extent permitted by applicable law, each party hereto hereby irrevocably and unconditionally submits, for itself and its property, to the exclusive jurisdiction of any New York State court or federal court of the United States of America sitting in New York County, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement or the other Loan Documents, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such New York State or, to the extent permitted by law, in such federal court.  Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.  Nothing in this Agreement shall affect any right that any Secured Party may otherwise have to bring any action or proceeding relating to this Agreement or the other Loan Documents against any Borrower Party or its properties in the courts of any jurisdiction.

 

(b)                                 Each party hereto hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection that it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement or the other Loan Documents in any New York State or federal court described above.  Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

 

(c)                                  Each party to this Agreement irrevocably consents to service of process in the manner provided for notices in Section 8.02.  Nothing in this Agreement will affect the right of any party to this Agreement to serve process in any other manner permitted by law.

 

Section 8.10                             Counterparts; Integration; Effectiveness.  This Agreement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  This Agreement and the other Loan Documents constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof.  This Agreement (i) will become effective when the Collateral Agent shall have received counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto and (ii) thereafter will be binding upon and inure to the benefit of the parties hereto and their respective permitted successors and assigns.  Delivery of an executed counterpart of a signature page of this Agreement by telecopy or electronic mail will be effective as delivery of a manually executed counterpart of this Agreement.

 

29

 

Section 8.11                             Table of Contents, Headings, Etc.  The Table of Contents and headings of the Articles and Sections of this Agreement have been inserted for convenience of reference only, are not to be considered a part hereof and shall in no way modify or restrict any of the terms and provisions hereof.

 

Section 8.12                             Non-Invasive Provisions.  (a)  Notwithstanding any other provision of the Loan Documents, the Collateral Agent (for and on behalf of itself and the Secured Parties) agrees that, so long as no Enforcement Event shall have occurred and be continuing, not to take any action or cause to be taken any action, or permit any Person claiming by, through or on behalf of it to take any action or cause any action, that would interfere with the possession, use, operation and quiet enjoyment of and other rights with respect to any Pool Aircraft or Collateral related thereto and all rents, revenues, profits and income therefrom, including, the right to enforce manufacturers’ warranties, the right to apply or obtain insurance proceeds for damage to the Pool Aircraft to the repair or replacement of the Pool Aircraft or otherwise to the extent not required to be deposited as Account Collateral under the Loan Documents and the right to engage in pooling, leasing and similar actions, in each case in accordance with the terms of this Agreement or the other applicable Loan Documents.

 

(b)                                 Notwithstanding any other provision of the Loan Documents, the Collateral Agent agrees (for and on behalf of itself and the Secured Parties) that, so long as no “Event of Default” (or similar term) under a Lease (as defined in such Lease) shall have occurred and be continuing and as otherwise provided in any Lease, not to take any action or cause to be taken any action, or permit any person claiming by, through or on behalf of it to take any action or cause any action, that would interfere with the possession, use, operation and quiet enjoyment of and other rights of the Lessee with respect to any Pool Aircraft or Collateral related thereto and all rents, revenues, profits and income therefrom, including, the right to enforce manufacturers’ warranties, the right to apply or obtain insurance proceeds for damage to the Pool Aircraft to the repair of the Pool Aircraft or otherwise as provided in such Lease and the right to engage in pooling, leasing and similar actions, in each case in accordance with the terms of such Lease.

 

(c)                                  For the avoidance of doubt, the Collateral Agent (for and on behalf of itself and the Secured Parties) agrees that a Transaction Party may from time to time lease out an engine that is part of a Pool Aircraft or lease in an engine that is not part of a Pool Aircraft as it determines in accordance with Leasing Company Practice.

 

Section 8.13                             Limited Recourse.  (a)  In the event that the direct or indirect assets of the Grantors are insufficient, after payment of all other claims, if any, ranking in priority to the claims of the Collateral Agent or any Secured Party hereunder, to pay in full such claims of the Collateral Agent or such Secured Party (as the case may be), then the Collateral Agent or the Secured Party shall have no further claim against the Grantors (other than the Borrower) in respect of any such unpaid amounts; provided that the foregoing limitation on recourse shall in no way limit the right of any Secured Party to enforce the obligations of ILFC set forth in Article 7 of the Credit Agreement.

 

(b)                                 To the extent permitted by applicable law, no recourse under any obligation, covenant or agreement of any party contained in this Agreement shall be had against

 

30

 

any equityholder (not including any Grantor as an equityholder of any Pledged Equity Party hereunder), officer or director of the relevant party as such, by the enforcement of any assessment or by any proceeding, by virtue of any statute or otherwise; it being expressly agreed and understood that this Agreement is a corporate obligation of the relevant party and no personal liability shall attach to or be incurred by the equityholders (not including any Grantor as an equityholder of any other Grantor hereunder), officers or directors of the relevant party as such, or any of them under or by reason of any of the obligations, covenants or agreements of such relevant party contained in this Agreement, or implied therefrom, and that any and all personal liability for breaches by such party of any of such obligations, covenants or agreements, either at law or at equity or by statute or constitution, of every such equityholder (not including any Grantor as an equityholder of any Pledged Equity Party hereunder), officer or director is hereby expressly waived by the other parties as a condition of and consideration for the execution of this Agreement.

 

(c)                                  The guarantees, obligations, liabilities and undertakings granted by any Pledged Equity Party organized under the laws of France under this Agreement and the other Loan Documents shall, for each relevant financial year, be, in any and all cases, strictly limited to 90% of the annual net margin generated by such Pledged Equity Party or Pledged Equity Parties in connection with back-to-back leasing activities between it and any other Pledged Equity Party with respect to the lease of Pool Aircraft.

 

[The Remainder of this Page is Intentionally Left Blank]

 

31

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and delivered by its representative or officer thereunto duly authorized as of the date first above written.

 

	
 
    	
DELOS   FINANCE S.À R.L.
    
	
 
    	
Duly   represented by:
    
	
 
    	
 
    
	
 
    	
 
    	
/s/   Pamela Hendry
    
	
 
    	
 
    	
Name:   Pamela Hendry
    
	
 
    	
 
    	
Title:   Manager (Class A Manager)
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
SIGNED   and DELIVERED as a DEED
    
	
 
    	
for   and on behalf of
    
	
 
    	
HYPERION   AIRCRAFT LIMITED
    
	
 
    	
by   its duly authorized attorney
    
	
 
    	
 
    
	
 
    	
/s/   Niall C. Sommerville
    
	
 
    	
 
    
	
 
    	
in   the presence of
    
	
 
    	
 
    
	
 
    	
Susan   Gordon
    
	
 
    	
 
    
	
 
    	
Name:   Susan Gordon
    
	
 
    	
Address:
    	
Solicitor
    
	
 
    	
Occupation:
    	
IFSC
    
	
 
    	
 
    	
Dublin
    
				

 

Signature Page — Term Loan

Security Agreement

 

 

	
 
    	
SIGNED   and DELIVERED as a DEED
   for and on behalf of
   DELOS AIRCRAFT LIMITED
   by its duly authorized attorney
    
	
 
    	
 
    
	
 
    	
/s/   Niall C. Sommerville
    
	
 
    	
 
    
	
 
    	
in   the presence of
    
	
 
    	
 
    
	
 
    	
Susan   Gordon
    
	
 
    	
 
    
	
 
    	
Name:   Susan Gordon
    
	
 
    	
Address:
    	
Solicitor
    
	
 
    	
Occupation:
    	
IFSC
    
	
 
    	
 
    	
Dublin
    
	
 
    	
 
    
	
 
    	
SIGNED   and DELIVERED as a DEED
    
	
 
    	
for   and on behalf of
    
	
 
    	
ARTEMIS   (DELOS) LIMITED
    
	
 
    	
by   its duly authorized attorney
    
	
 
    	
 
    
	
 
    	
/s/   Niall C. Sommerville
    
	
 
    	
 
    
	
 
    	
in   the presence of
    
	
 
    	
 
    
	
 
    	
Susan   Gordon
    
	
 
    	
 
    
	
 
    	
Name:   Susan Gordon
    
	
 
    	
Address:
    	
 Solicitor
    
	
 
    	
Occupation:
    	
IFSC
    
	
 
    	
 
    	
Dublin
    
	
 
    	
 
    
	
 
    	
APOLLO   AIRCRAFT INC.
    
	
 
    	
By:
    	
/s/   Pamela Hendry
    
	
 
    	
 
    	
Name:
    	
Pamela   Hendry
    
	
 
    	
 
    	
Title:
    	
SVP,   Treasurer & Assistant Secretary
    

 

Signature Page — Term Loan
 Security Agreement

 

 

	
 
    	
DEUTSCHE   BANK AG NEW YORK BRANCH not in its individual capacity but solely as the   Collateral Agent
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Peter Cucchiara
    
	
 
    	
 
    	
Name:
    	
Peter   Cucchiara
    
	
 
    	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael Shannon
    
	
 
    	
 
    	
Name:
    	
Michael   Shannon
    
	
 
    	
 
    	
Title:
    	
Vice   President
    

 

Signature Page — Term Loan
 Security Agreement

 

 

SCHEDULE I

SECURITY AGREEMENT

 

AIRCRAFT OBJECTS

 

	
 
    	
 
    	
Airframe Manufacturer and Model
    	
 
    	
Airframe MSN
    	
 
    	
Engine Manufacturer and
    Engine Model
    
	
1
    	
 
    	
None
    	
 
    	
N/A
    	
 
    	
N/A
    

 

Schedule I-1

 

SCHEDULE II
 SECURITY AGREEMENT

 

PLEDGED EQUITY INTERESTS

 

PLEDGED STOCK

 

	
Pledged Equity Party
    	
 
    	
Par Value
    	
 
    	
Certificate
   No(s).
    	
 
    	
Number of
   Shares
    	
 
    	
Percentage of
   Outstanding
   Shares
    	
 
    
	
DELOS FINANCE S.À R.L.
    	
 
    	
1 Euro
    	
 
    	
N/A
    	
 
    	
12,500
    	
 
    	
100
    	
%
    
	
DELOS AIRCRAFT LIMITED
    	
 
    	
US$1
    	
 
    	
2
    	
 
    	
10
    	
 
    	
100
    	
%
    
	
APOLLO AIRCRAFT INC.
    	
 
    	
N/A
    	
 
    	
2
    	
 
    	
100
    	
 
    	
100
    	
%
    
	
ARTEMIS (DELOS) LIMITED
    	
 
    	
US$1
    	
 
    	
2
    	
 
    	
2
    	
 
    	
100
    	
%
    

 

PLEDGED BENEFICIAL INTERESTS

 

	
Pledged Equity Party
    	
 
    	
Certificate No./Date
    	
 
    	
Percentage of
   Beneficial Interest
    
	
N/A
    	
 
    	
N/A
    	
 
    	
N/A
    

 

PLEDGED MEMBERSHIP INTERESTS

 

	
Pledged Equity Party
    	
 
    	
Certificate No.
    	
 
    	
Percentage of
   Membership Interest
    
	
N/A
    	
 
    	
N/A
    	
 
    	
N/A
    

 

PLEDGED DEBT

 

	
Intercompany Lender
    	
 
    	
Intercompany Borrower
    	
 
    	
Description of Instrument of
   Pledged Debt
    
	
N/A
    	
 
    	
N/A
    	
 
    	
N/A
    

 

Schedule II-1

 

SCHEDULE III
 SECURITY AGREEMENT

 

TRADE NAMES

 

1.                                                        Grantor:  Hyperion Aircraft Limited
 Trade Name:  Hyperion Aircraft Limited

 

2.                                                        Grantor: Delos Aircraft Limited
 Trade Name:  Delos Aircraft Limited

 

3.                                                        Grantor: Delos Finance S.à r.l.
 Trade Name: Delos Finance S.à r.l.

 

4.                                                        Grantor: Artemis (Delos) Limited
 Trade Name:  Artemis (Delos) Limited

 

5.                                                        Grantor: Apollo Aircraft Inc.
 Trade Name:  Apollo Aircraft Inc.

 

Schedule III-1

 

SCHEDULE IV
 SECURITY AGREEMENT

 

CHIEF PLACE OF BUSINESS AND CHIEF EXECUTIVE OR REGISTERED OFFICE

 

	
Name of Grantor
    	
 
    	
Chief Executive Office, Chief Place of
   Business or Registered Office 
   and Organizational ID (if applicable)
    
	
 
    	
 
    	
 
    
	
Hyperion   Aircraft Limited
    	
 
    	
30   North Wall Quay
   Dublin 1, Ireland
   Facsimile: 353-1-672-0270
   Telephone: 353-1-819-2000
   Organizational ID: 538945
    
	
 
    	
 
    	
 
    
	
Delos   Aircraft Limited
    	
 
    	
30   North Wall Quay
   Dublin 1, Ireland
   Facsimile: 353-1-672-0270
   Telephone: 353-1-819-2000
   Organizational ID: 538946
    
	
 
    	
 
    	
 
    
	
Delos   Finance S.à r.l.
    	
 
    	
46A,   Avenue J.F. Kennedy,
   L-1855 Luxembourg
   Facsimile: 353-1-672-0270
   Telephone: 353-1-819-2000
   Organizational ID: In the process of being registered with the Luxembourg   Register of Commerce and Companies and having a share capital of EUR 12,500
    
	
 
    	
 
    	
 
    
	
Apollo   Aircraft Inc.
    	
 
    	
10250   Constellation Blvd.
   Suite 3400
   Los Angeles, CA 90067
   Facsimile: (310) 788-1990
   Telephone: (310) 788-1999
   Organizational ID: C3278478
    
	
 
    	
 
    	
 
    
	
Artemis   (Delos) Limited
    	
 
    	
30   North Wall Quay
   Dublin 1, Ireland
   Facsimile: 353-1-672-0270
   Telephone: 353-1-819-2000
   Organizational ID: 482230
    

 

Schedule IV-1

 

SCHEDULE V
 SECURITY AGREEMENT

 

INSURANCE

 

1.                                      Obligation to Insure

 

So long as this Agreement shall remain in effect, the Grantors will ensure that there is effected and maintained appropriate insurances, maintained with insurers or reinsured with reinsurers of recognized responsibility or pursuant to governmental indemnities, in respect of each Pool Aircraft and the Collateral Agent and the Administrative Agent and its operation including insurance for:

 

(a)                                 loss or damage to each Pool Aircraft and each part thereof; and

 

(b)                                 any liability for injury to or death of persons and damage to or the destruction of public or private property arising out of or in connection with the operation, storage, maintenance or use of (in each case to the extent available) the Pool Aircraft and of any other part thereof not belonging to the Grantors but from time to time installed on the airframe.

 

2.                                      Specific Insurances

 

The Grantors will maintain or will cause to be maintained the following specific insurances with respect to each Pool Aircraft (subject to paragraph 3):

 

(c)                                  All Risks Hull Insurance - All risks hull insurance policy on the Pool Aircraft in an amount at least equal to 110% of the outstanding principal of the Loans allocable to such Pool Aircraft, calculated based on the most recent appraised value (the “Required Insured Value”) on an agreed value basis and naming the Collateral Agent (for and on behalf of itself and the Secured Parties) as a loss payee for the Required Insured Value (provided, however, that, if the applicable insurance program uses AVN67B or a successor London market endorsement similar thereto, the Grantor shall procure that the Collateral Agent is named as a “Contract Party” in respect of such hull insurance and shall ensure that the Collateral Agent is also named as such a “Contract Party” in respect of any new Lease entered into);

 

(d)                                 Hull War Risk Insurance - Hull war risk and allied perils insurance, including hijacking, (excluding, however, confiscation by government of registry or country of domicile to the extent coverage of such risk is not generally available to the applicable Lessee in the relevant insurance market at a commercially reasonable cost or is not customarily obtained by operators in such jurisdiction at such time in accordance with Leasing Company Practice) on the Pool Aircraft where the custom in the industry is to carry war risk for aircraft operating on routes or kept in locations similar to the Pool Aircraft in an amount not less than the Required Insured Value on an agreed value basis and naming the Collateral Agent (for and on behalf of itself and the Secured Parties) as a loss payee for the Required Insured Value (provided, however, that, if the applicable insurance program uses AVN67B or a successor London market endorsement similar thereto, the Grantors

 

Schedule V-1

 

shall procure that the Collateral Agent is named as a “Contract Party” in respect of such insurance and shall ensure that the Collateral Agent is also named as such a “Contract Party” in respect of any new Lease entered into);

 

(e)                                  Legal Liability Insurance - Third party legal liability insurance (including war and allied perils) for a combined single limit (bodily injured and property damage) of not less than $500,000,000 for a Narrowbody Aircraft, and not less than $750,000,000 for Widebody Aircraft.  The Collateral Agent and the Administrative Agent (for and on behalf of themselves and the Secured Parties) shall be named as additional insureds on such policies; provided that if the applicable insurance program uses AVN 67B or a successor London market endorsement similar thereto, the Grantors shall procure that the Collateral Agent and the Administrative Agent are named as “Contract Parties” in respect of such insurance and the Grantors shall ensure that the Collateral Agent and the Administrative Agent are also named as such a “Contract Party” in respect of any new Lease.

 

(f)                                   Aircraft Spares Insurance - Insurance for the engines and the parts while not installed on the airframe for their replacement cost or an agreed value basis.

 

Proceeds of insurance paid to the Collateral Agent shall be disbursed to the Borrower unless an Enforcement Event has occurred and is continuing, in which case such proceeds will be held in the Collateral Account until applied as provided in the Credit Agreement or herein; provided, however, that if, pursuant to a Lease, such insurance proceeds are payable to a Lessee, such insurance proceeds shall in all circumstances be paid to such Lessee in accordance with such Lease.

 

3.                                      Variations on Specific Insurance Requirements

 

In certain circumstances, it is customary that not all of the insurances described in paragraph 2 be carried for the Pool Aircraft.  For example, when a Pool Aircraft is not on lease to a passenger air carrier or is in storage or is being repaired or maintained, ferry or ground rather than passenger flight coverage for the Pool Aircraft are applicable.  Similarly, indemnities may be provided by a Governmental Authority in lieu of particular insurances; provided, however, that the Grantors shall not, without the prior written consent of the Collateral Agent, be entitled to accept any new such governmental indemnities other than when such indemnities are granted by a Governmental Authority of a country or jurisdiction that is not a Prohibited Country.  The relevant Grantor will determine the necessary coverage for the Pool Aircraft in such situations consistent with Leasing Company Practice with respect to similar aircraft.

 

4.                                      Hull Insurances in Excess of Required Insurance Value

 

For the avoidance of doubt, any Grantor and/or any Lessee may carry hull risks and hull war and allied perils insurance on the Pool Aircraft in excess of the Required Insured Value which (subject, in the case of the Grantors with respect to the insurance not required to be carried by the Lessee under the Lease, to no Enforcement Event having

 

Schedule V-2

 

occurred and being continuing) will not be payable to the Collateral Agent.  Such excess insurance proceeds, if paid under the insurances required to be carried by the Lessee under the Lease, will be payable to (i) if payable to the Grantors, to the relevant Grantor, unless an Enforcement Event has occurred and is continuing in which case the excess shall be payable to the Collateral Agent or (ii) if payable to the Lessee to the Lessee in all circumstances.

 

5.                                      Currency

 

All insurance and reinsurances effected pursuant to this Schedule V shall be payable in Dollars, save that in the case of the insurances referred to in paragraph 2(c) (if such denomination is (a) required by the law of the state of registration of the Pool Aircraft; or (b) the normal practice of airlines in the relevant country that operate aircraft leased from lessors located outside such country; or (c) otherwise accepted in accordance with Leasing Company Practice) or paragraph 2(d).

 

6.                                      Specific Terms of Insurances

 

Insurance policies which are underwritten in the London and/or other non-US insurance market and which pertain to financed or leased aircraft equipment contain the coverage and endorsements described in AVN67B or a successor London market endorsement as it may be amended or revised or its equivalent.  Each of the Grantors agrees that, so long as this Agreement shall remain in effect, the Pool Aircraft will be insured and the applicable insurance policies endorsed either (i) in a manner consistent with AVN67B or a successor London market endorsement, as it may be amended or revised or its equivalent or (ii) as may then be customary in the airline industry for aircraft of the same type as the Pool Aircraft utilised by operators in the same country and whose operational network for such Pool Aircraft and credit status is similar to the type of business as the Lessee (if any) and at the time commonly available in the insurance market.  In all cases, the relevant Grantor will set the standards, review and manage the insurances on the Pool Aircraft consistent with Leasing Company Practice with respect to similar aircraft.

 

7.                                      Insurance Brokers and Insurers

 

In reviewing and accepting the insurance brokers (if any) and reinsurance brokers (if any) and insurers and reinsurers (if any) providing coverage with respect to the Pool Aircraft, the relevant Grantor will utilize standards consistent with Leasing Company Practice with respect to similar aircraft.  It is recognized that airlines in certain countries are required to utilize brokers (and sometimes even no brokers) or carry insurance with local insurance brokers and insurers.  If at any time any Pool Aircraft is not subject to a Lease, the relevant Grantor will cause its insurance brokers to provide the Collateral Agent with evidence that the insurances described in this Schedule V are in full force and effect.

 

8.                                      Deductible Amounts, Self-Insurance and Reinsurance

 

With respect to the type of aircraft concerned, the nationality and creditworthiness of the airline operator, the airline operator’s use and operation thereof and to the scope of and

 

Schedule V-3

 

the amount covered by the insurances carried by the Lessee, the relevant Grantor will apply standards consistent with Leasing Company Practice with respect to similar aircraft in reviewing and accepting the amount of any insurance deductibles, whether the Lessee may self-insure any of the risks covered by the insurances and the scope and terms of reinsurance, if any, including a cut-through and assignment clause.

 

9.                                      Renewals

 

The Grantors will monitor the insurances on the Pool Aircraft and their expiration dates.  The relevant Grantor shall, when requested by the Collateral Agent, promptly inform the Collateral Agent as to whether or not it has been advised that renewal instructions for any of the insurances have been given by the airline operator or its broker prior to or on the scheduled expiry date of the relevant insurance.  The relevant Grantor shall promptly notify the Collateral Agent in writing if it receives notice that any of the insurances have in fact expired without renewal.  Promptly after receipt, the relevant Grantor will provide to the Collateral Agent evidence of renewal of the insurances and reinsurance (if any).

 

10.                               Information

 

Subject to applicable confidentiality restrictions, each of the Grantors shall provide the Collateral Agent or shall ensure that the Collateral Agent is provided with any information reasonably requested by it from time to time concerning the insurances maintained with respect to the Pool Aircraft or, if reasonably available to the Grantors, in connection with any claim being made or proposed to be made thereunder.

 

Schedule V-4

 

EXHIBIT A-1
 SECURITY AGREEMENT

 

FORM OF COLLATERAL SUPPLEMENT

 

Deutsche Bank AG New York Branch, as the Collateral Agent
 60 Wall Street
 New York, NY 10005
 Facsimile No. (732) 380-3355

 

[Date]

 

Re:  Term Loan Security Agreement, dated as of March 6, 2014

 

Ladies and Gentlemen:

 

Reference is made to the Term Loan Security Agreement, dated as of March 6, 2014 (as amended, restated or otherwise modified from time to time, the “Security Agreement”), among Delos Finance S.à r.l., a private limited liability company (société à responsabilité limitée) incorporated under the laws of Luxembourg (the “Borrower”), Hyperion Aircraft Limited, a private limited liability company incorporated under the laws of Ireland (“Grandparent Holdco”), Delos Aircraft Limited, a private limited liability company incorporated under the laws of Ireland (“Parent Holdco”), Apollo Aircraft Inc., a California corporation (“CA Subsidiary Holdco”), Artemis (Delos) Limited, a private limited liability company incorporated under the laws of Ireland (“Irish Subsidiary Holdco”) and the Additional Grantors who from time to time become grantors under the Security Agreement (together with Grandparent Holdco, Parent Holdco, the Borrower, the Irish Subsidiary Holdco and the CA Subsidiary Holdco, the “Grantors”), and Deutsche Bank AG New York Branch, as the collateral agent (in such capacity, and together with any permitted successor or assign thereto or any permitted replacement thereof, the “Collateral Agent”).  Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to them in the Security Agreement.

 

The undersigned hereby delivers, as of the date first above written, the attached Annexes I and II pursuant to Section 2.15 of the Security Agreement.

 

The undersigned Grantor hereby confirms that the property included in the attached Annex II constitutes part of the Collateral and hereby makes each representation and warranty set forth in Section 2.03 of the Security Agreement (as supplemented by the attached Annexes).

 

Attached are duly completed copies of Annexes I and II hereto.

 

Exhibit A-1-1

 

This Collateral Supplement is delivered in and shall in all respects be governed by, and construed in accordance with, the laws of the State of New York, including all matters of construction, validity and performance.

 

	
Very   truly yours,
    	
 
    
	
 
    	
 
    
	
[                                  ]
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
Acknowledged   and agreed to as of the date first above written:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
DEUTSCHE   BANK AG NEW YORK BRANCH,
    	
 
    
	
not   in its individual capacity, but
    	
 
    
	
solely   as the Collateral Agent
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

Collateral Supplement Signature Page

 

 

ANNEX I
 COLLATERAL SUPPLEMENT

 

AIRCRAFT OBJECTS

 

	
Airframe MSN
    	
 
    	
Airframe Manufacturer
   and Model
    	
 
    	
Engine Manufacturer and
   Model
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

Annex I-1

 

ANNEX II
 COLLATERAL SUPPLEMENT

 

PLEDGED EQUITY INTERESTS

 

PLEDGED BENEFICIAL INTERESTS

 

	
Pledged Equity Party
    	
 
    	
Certificate No.
    	
 
    	
Percentage of
   Beneficial Interest
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

PLEDGED MEMBERSHIP INTERESTS

 

	
Pledged Equity Party
    	
 
    	
Certificate No.
    	
 
    	
Percentage of
   Membership Interest
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

PLEDGED STOCK

 

	
Pledged Equity Party
    	
 
    	
Certificate No.
    	
 
    	
Percentage Stock
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

PLEDGED DEBT

 

	
Intercompany Lender
    	
 
    	
Intercompany Borrower
    	
 
    	
Description of Instrument of
   Pledged Debt
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

Annex II-1

 

EXHIBIT A-2
 SECURITY AGREEMENT

 

FORM OF GRANTOR SUPPLEMENT

 

Deutsche Bank AG New York Branch, as the Collateral Agent
 60 Wall Street
 New York, NY 10005
 Facsimile No. (732) 380-3355

 

[Date]

 

Re: Term Loan Security Agreement, dated as of March 6, 2014

 

Ladies and Gentlemen:

 

Reference is made to the Term Loan Security Agreement, dated as of March 6, 2014 (as amended, restated or otherwise modified from time to time, the “Security Agreement”), among Delos Finance S.à r.l., a private limited liability company (société à responsabilité limitée) incorporated under the laws of Luxembourg (the “Borrower”), Hyperion Aircraft Limited, a private limited liability company incorporated under the laws of Ireland (“Grandparent Holdco”), Delos Aircraft Limited, a private limited liability company incorporated under the laws of Ireland (“Parent Holdco”), Apollo Aircraft Inc., a California corporation (“CA Subsidiary Holdco”), Artemis (Delos) Limited, a private limited liability company incorporated under the laws of Ireland (“Irish Subsidiary Holdco”) and the Additional Grantors who from time to time become grantors under the Security Agreement (together with Grandparent Holdco, Parent Holdco, the Borrower, the Irish Subsidiary Holdco and the CA Subsidiary Holdco, the “Grantors”), and Deutsche Bank AG New York Branch, as the collateral agent (in such capacity, and together with any permitted successor or assign thereto or any permitted replacement thereof, the “Collateral Agent”).  Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to them in the Security Agreement.

 

The undersigned hereby agrees, as of the date first above written, to become a Grantor under the Security Agreement as if it were an original party thereto and agrees that each reference in the Security Agreement to “Grantor” shall also mean and be a reference to the undersigned.

 

Grant of Security Interest.   To secure the Secured Obligations, the undersigned Grantor hereby assigns and pledges to the Collateral Agent for its benefit and the benefit of the other Secured Parties and hereby grants to the Collateral Agent for its benefit and the benefit of the other Secured Parties a first priority security interest in, all of its right, title and interest in and to the following (collectively, the “Supplementary Collateral”):

 

(a)                                 all of the following:

 

(i)                                     the Pledged Stock and the certificates representing such Pledged Stock, and all dividends, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the Pledged Stock;

 

Exhibit A-2-1

 

(ii)                                  all additional shares of the capital stock of any other Pledged Equity Party from time to time acquired by such Grantor in any manner, including the capital stock of any other Pledged Equity Party that may be formed from time to time, and all certificates, if any, representing such additional shares of the capital stock and all dividends, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all such additional shares; and

 

(iii)                               the Pledged Debt and all instruments evidencing the Pledged Debt, and all interest, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the Pledged Debt;

 

(b)                                 all of the following:

 

(i)                                     the Pledged Membership Interests, all certificates, if any, from time to time representing all of such Grantor’s right, title and interest in the Pledged Membership Interests, any contracts and instruments pursuant to which any such Pledged Membership Interests are created or issued and all distributions, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the Pledged Membership Interests; and

 

(ii)                                  all of such Grantor’s right, title and interest in all additional membership interests in any other Pledged Equity Party from time to time acquired by such Grantor in any manner, including the membership interests in any other Pledged Equity Party that may be formed from time to time, and all certificates, if any, from time to time representing such additional membership interests and all distributions, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all such additional membership interests;

 

(c)                                  all of the following:

 

(i)                                     the Pledged Beneficial Interest, all certificates, if any, from time to time representing all of such Grantor’s right, title and interest in the Pledged Beneficial Interest, any contracts and instruments pursuant to which any such Pledged Beneficial Interest are created or issued and all distributions, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the Pledged Beneficial Interest; and

 

(ii)                                  all of such Grantor’s right, title and interest in all additional beneficial interests in any other Pledged Equity Party from time to time acquired by such Grantor in any manner, including the beneficial interests in any other Pledged Equity Party that may be formed from time to time, the trust agreements and any other contracts and instruments pursuant to which any such Pledged Equity Party is created or issued, and all certificates, if any, from time to time representing such additional beneficial interests and all distributions, cash, instruments and other property from time to time

 

Exhibit A-2-2

 

received, receivable or otherwise distributed in respect of or in exchange for any or all such additional beneficial interests;

 

(d)                                 all other “investment property” (as defined in Section 9-102(a)(49) of the UCC) of such Grantor including written notification of all interest, dividends, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the then existing Investment Collateral, but excluding any loans or advances made, or dividends, contributions or distributions or other amounts paid, by any Pledged Equity Party to any Transaction Party;

 

(e)                                  with respect to each Grantor, all right of such Grantor in and to the Collateral Account and all funds, cash, investment property, investments, securities, instruments or other property (including all “financial assets” within the meaning of Section 8-102(a)(9) of the UCC) at any time or from time to time credited to any such account; and

 

(f)                                   all proceeds of any and all of the foregoing Collateral (including proceeds that constitute property of the types described in subsections (a), (b), (c), (d) and (e) above.

 

The undersigned Grantor hereby makes each representation and warranty set forth in Section 2.03 of the Security Agreement (as supplemented by the attached Annexes) and hereby agrees to be bound as a Grantor by all of the terms and provisions of the Security Agreement.  Each reference in the Security Agreement to the Security Collateral, the Membership Interest Collateral, the Beneficial Interest Collateral, the Investment Collateral and the Account Collateral shall be construed to include a reference to the corresponding Collateral hereunder.

 

The undersigned hereby agrees, together with the other Grantors, jointly and severally to indemnify the Collateral Agent and its officers, directors, employees and agents in the manner set forth in Section 8.01 of the Security Agreement.

 

Attached are duly completed copies of Annexes I, II, III and IV hereto.

 

[Signature Page Follows]

 

Exhibit A-2-3

 

This Grantor Supplement is delivered in the State of New York and shall in all respects be governed by, and construed in accordance with, the laws of the State of New York, including all matters of construction, validity and performance.

 

	
Very   truly yours,
    	
 
    
	
 
    	
 
    
	
[NAME   OF GRANTOR]
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
Name:
    	
 
    
	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Acknowledged   and agreed to as of the date first above written:
    	
 
    
	
 
    	
 
    
	
DEUTSCHE   BANK AG NEW YORK BRANCH,
    	
 
    
	
not   in its individual capacity, but solely as the
    	
 
    
	
Collateral   Agent
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

Grantor Supplement Signature Page

 

 

ANNEX I
 GRANTOR SUPPLEMENT

 

AIRCRAFT OBJECTS

 

	
Airframe MSN
    	
 
    	
Airframe Manufacturer and
   Model
    	
 
    	
Engine Manufacturer and
   Model
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

Annex I-1

 

ANNEX II
 GRANTOR SUPPLEMENT

 

PLEDGED EQUITY INTERESTS

 

PLEDGED BENEFICIAL INTERESTS

 

	
Pledged Equity Party
    	
 
    	
Certificate No.
    	
 
    	
Percentage of
   Beneficial Interest
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

PLEDGED MEMBERSHIP INTERESTS

 

	
Pledged Equity Party
    	
 
    	
Certificate No.
    	
 
    	
Percentage of
   Membership Interest
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

PLEDGED STOCK

 

	
Pledged Equity Party
    	
 
    	
Certificate No.
    	
 
    	
Percentage Stock
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

PLEDGED DEBT

 

	
Intercompany Lender
    	
 
    	
Intercompany Borrower
    	
 
    	
Description of Instrument of
   Pledged Debt
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

Annex II-1

 

ANNEX III
 GRANTOR SUPPLEMENT

 

TRADE NAMES

 

Annex III-1

 

ANNEX IV
 GRANTOR SUPPLEMENT

 

	
Name of Grantor
    	
 
    	
Chief Executive Office, Chief Place of
   Business and Registered Office and Organizational ID
   (if applicable)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    

 

Annex IV-1

 

EXHIBIT B
 SECURITY AGREEMENT

 

FORM OF CHARGE OVER SHARES OF PARENT HOLDCO

 

Exhibit B-1

 

      March 2014

 

SHARE CHARGE

 

between

 

HYPERION AIRCRAFT LIMITED

 

as Chargor

 

and

 

DEUTSCHE BANK AG NEW YORK BRANCH

 

as Chargee

 

in respect of shares of

 

Delos Aircraft Limited

 

A & L GOODBODY

 

1

 

THIS SHARE CHARGE is made on        March 2014

 

BETWEEN

 

(1)                                                   HYPERION AIRCRAFT LIMITED, a company incorporated under the laws of Ireland with registered number 538945 and its registered address at 30 North Wall Quay, Dublin 1 (the Chargor); and

 

(2)                                                   DEUTSCHE BANK AG NEW YORK BRANCH, as the collateral agent under the Security Agreement (as defined below) (the Chargee).

 

WHEREAS:

 

A.                                    By a term loan credit agreement dated as of        March 2014 among Delos Finance S.á.r.l. (Delos) as Borrower, International Lease Finance Corporation (ILFC), Hyperion Aircraft Limited, Delos Aircraft Limited, Apollo Aircraft Inc. and Artemis (Delos) Limited, as Obligors, the lenders party thereto, as Lenders, Deutsche Bank AG New York Branch, as Administrative Agent and the Chargee (the Credit Agreement), the Lenders (as defined therein) have agreed to make available a term loan facility to Delos.

 

B.                                    By a term loan security agreement dated as of        March 2014 among Delos, Hyperion Aircraft Limited, Delos Aircraft Limited, Apollo Aircraft Inc. and Artemis (Delos) Limited and the additional grantors referred to therein as Grantors and the Chargee, such Grantors have agreed to grant certain security to the Chargee (the Security Agreement).

 

C.                                    Pursuant to the terms of the Credit Agreement, the Chargor has agreed to grant this charge over the shares in the Company.

 

D.                                    The terms and conditions of this Charge are acceptable to the Chargee.

 

NOW THIS CHARGE WITNESSETH as follows:

 

1.                                      DEFINITIONS AND INTERPRETATION

 

1.1.                            In this Charge (including the Recitals), words and expressions defined in the Security Agreement shall (unless otherwise defined herein or the context requires otherwise) have the same meaning herein and the following words and expressions shall have the following meanings, except where the context otherwise requires:

 

Act means the Land and Conveyancing Law Reform Act 2009;

 

this Charge means this share charge;

 

Company means Delos Aircraft Limited (registered number 538946), a company incorporated in Ireland having its registered office at 30 North Wall Quay, Dublin 1, Ireland;

 

2

 

Charged Property means:

 

(1)                                 all the issued shares in the capital of the Company as described in Schedule A and all other shares and share warrants in the capital of the Company from time to time legally or beneficially owned by the Chargor during the Security Period (together the Charged Shares); and

 

(2)                                 including in each case all proceeds of sale thereof and all dividends, interest or other distributions hereafter declared, made, paid or payable in respect of the same and all allotments, accretions, offers, rights, benefits and advantages whatsoever at any time accruing, offered or arising in respect of or incidental to the same and all stocks, shares, rights, money or property accruing thereto or offered at any time by way of conversion, redemption, bonus, preference, option, substitution, capital redemption or otherwise in respect thereof;

 

Charged Shares has the meaning assigned thereto in the definition of Charged Property;

 

Delos has the meaning given to it in Recital A.

 

Loan Document has the meaning given to it in the Credit Agreement;

 

Parties means the parties to this Charge;

 

Receiver means a receiver (whether appointed pursuant to this Charge, pursuant to any statute, by a court or otherwise) of the Charged Property or any part of it;

 

Secured Obligations has the meaning given to it in the Credit Agreement;

 

Secured Party has the meaning given to such term in the Security Agreement; and

 

Security Period means the period commencing on the date of execution of this Charge and terminating upon the date on which the Secured Obligations have been unconditionally and irrevocably paid and discharged in full.

 

1.2.                            In this Charge:

 

1.2.1.                                    words and phrases the definition of which is contained in or referred to section 2 of the Companies Act, 1963 are to be construed as having the meaning attributed to them therein;

 

1.2.2.                                    references to statutory provisions shall be construed as references to those provisions as amended or re-enacted or as their application is modified by other provisions from time to time and shall include references to any provisions of which they are reenactments (whether with or without modification);

 

3

 

1.2.3.                                    references to clauses, recitals and schedules are references to clauses hereof, recitals hereof and schedules hereto; references to sub-clauses or paragraphs are, unless otherwise stated, references to sub-clauses of the clause or paragraphs of the schedule in which the reference appears;

 

1.2.4.                                    references to the singular shall include the plural and vice versa and references to the masculine shall include the feminine or neuter and vice versa;

 

1.2.5.                                    references to persons shall include natural persons, firms, partnerships, companies, corporations, associations, organisations, governments, states, foundations, trusts, bodies of persons whether incorporated or unincorporated (in each case whether or not having a separate legal personality);

 

1.2.6.                                    references to assets include property, rights and assets of every description;

 

1.2.7.                                    references to any document are to be construed as references to such document as amended, varied, assigned, novated, restated or supplemented from time to time;

 

1.2.8.                                    references to any person shall be construed so as to include that person’s successors, assigns and transferees;

 

1.2.9.                                    any reference to a legal term for any action, remedy, method of judicial proceeding, legal document, legal status, court, official or any legal concept or thing is, in respect of any jurisdiction other than Ireland, shall be deemed to include a reference to what mostly nearly approximates in that jurisdiction to the Irish legal term;

 

1.2.10.                             the headings are inserted for convenience only and are not to affect the construction of this Charge; and

 

1.2.11.                             any phrase introduced by the terms “including”, “include”, “in particular” or any similar expression is to be construed as illustrative and shall not limit the sense of the words proceeding those terms.

 

2.                                      COVENANT TO PAY AND PERFORM

 

2.1.                            The Chargor hereby covenants and undertakes with the Chargee that it shall pay and discharge the Secured Obligations as and when they become due to be paid or discharged as and to the extent provided in the Credit Agreement, this Charge or any other Loan Document.

 

2.2.                            The Chargor shall pay interest on any delinquent sum (before and after any judgment) from the date of demand until the date of payment calculated on a daily basis in accordance with the provisions of the Credit Agreement.

 

2.3.                            Any payment made by the Chargor under this Charge shall be made free and clear of and without any deduction for or on account of any set-off or counterclaim.

 

4

 

3.                                      SECURITY

 

3.1.                            As a continuing security for the payment and performance of the Secured Obligations, the Chargor as legal and beneficial owner hereby charges to the Chargee, by way of a first fixed charge, all of its right, title and interest in and to the Charged Property.

 

3.2.                            The Chargor hereby agrees to deliver to the Chargee, on the date of execution of this Charge:

 

3.2.1.                                    an undated stock transfer form (executed in blank by or on behalf of the Chargor) in respect of all the Charged Shares;

 

3.2.2.                                    all share certificates, warrants and other documents of title representing the Charged Shares together with a certified copy of the up to date register of members of the Company;

 

3.2.3.                                    an undated irrevocable proxy in respect of the Charged Shares executed by the Chargor, in the for set out in Schedule C to this Charge;

 

3.2.4.                                    an irrevocable appointment signed by the Chargor in respect of the Charged Shares, in the form set out in Schedule D to this Charge; and

 

3.2.5.                                    executed but undated letters of resignation and release from each of the directors, alternate directors and secretary of the Company appointed by the Chargor in the forms set out in Schedule B to this Charge,

 

and such documents will be held by the Chargee during the Security Period.

 

The Chargee acknowledges and agrees that if at any time the Secured Obligations have been unconditionally and irrevocably paid and discharged in full it shall, unless otherwise required pursuant to this Charge or the Security Agreement or the Credit Agreement, or in accordance with the Credit Agreement or the Security Agreement, deliver the documents referred to in this clause 3.2 to the Chargor and thereafter such documents shall be held by the Chargor.

 

3.3.                            The Chargor will procure that, for the duration of the Security Period, there shall be (a) no increase or reduction in the authorised or issued share capital of the Company, (b) no variation of the rights attaching to or conferred by the Charged Property or any part of it and (c) no alteration to the constitutive documents of the Company, in each case, without the prior consent in writing of the Chargee, but the foregoing shall not be interpreted as requiring the Chargee’s consent to further capital contribution to the Company by the Chargor.

 

3.4.                            The Chargor will deliver, or cause to be delivered, to the Chargee immediately upon (subject to clause 3.3) the issue of any further Charged Shares, the items listed in clauses 3.2.1, 3.2.2, 3.2.3 and 3.2.4 in respect of all such further Charged Shares.

 

5

 

3.5.                            The Chargor will deliver or cause to be delivered, to the Chargee immediately upon the appointment of any further director, alternate director or officer of the Company an undated, signed letter of resignation from such further director, alternate director or officer in a form acceptable to the Chargee.

 

3.6.                            The Chargor hereby covenants that, except as otherwise provided in the Loan Documents, during the Security Period:

 

3.6.1.                                    it will remain the legal and beneficial owner of the Charged Property;

 

3.6.2.                                    it will not create or suffer the creation or existence of any Liens (other than Permitted Liens) on or in respect of the whole of any part of the Charged Property or any of its interest therein;

 

3.6.3.                                    it will not sell, assign, transfer or otherwise dispose of any of its interest in the Charged Property in any such case, without the prior consent in writing of the Chargee;

 

3.6.4.                                    it will not permit any person other than the Chargee (or such person as may be specified for this purpose in writing by the Chargee) to be registered as holder of the Shares or any part thereof;

 

3.6.5.                                    it will duly and promptly pay all calls, instalments or other payments which may be or become due in respect of the Charged Shares as and when the same from time to time become due;

 

3.6.6.                                    it will promptly give to the Chargee all material notices and other documents received in respect of the Charged Shares;

 

3.6.7.                                    it will ensure that the Charged Shares are, and at all times remain, free from any restriction on transfer to the Chargee, its nominee(s) or to any purchaser from the Chargee pursuant to the exercise of any rights or remedies of the Chargee under or pursuant to this Charge;

 

3.6.8.                                    it will notify the Chargee immediately upon receipt of any notice issued under section 16(1) of the Companies Act, 1990 in respect of all or any of the Charged Shares or upon becoming aware that any such notice has been issued or that steps have been taken or are about to be taken to obtain an order for the sale of all or any of the Charged Shares under section 16(7) of the Companies Act 1990;

 

3.6.9.                                    it will not claim any set-off or counterclaim against the Chargee or any Secured Party;

 

3.6.10.                             following the occurrence of an Enforcement Event which is continuing, it will not claim or prove in competition with the Chargee or any Secured Party in the bankruptcy or liquidation of the Company or have the benefit of, or share in, any payment from or composition with, the Company for any indebtedness of

 

6

 

the Company provided that if so directed by the Chargee, it will prove for the whole or any part of its claim in the liquidation or bankruptcy of the Company on terms that the benefit of such proof and of all money received by it in respect thereof shall be held on trust for the Chargee and applied in or towards the discharge of the liabilities and obligations of the Chargor to the Chargee under this Charge in such manner as the Chargee shall deem appropriate;

 

3.6.11.                             it will not exercise its rights of subrogation against the Company;

 

3.6.12.                             following the occurrence of an Enforcement Event which is continuing, it will take such action as the Chargee may, in its absolute discretion, direct in the event that it becomes possible (whether under the terms of issue of the Charged Shares, a reorganisation or otherwise) to convert or exchange the Charged Shares or have them repaid or in the event that any offer to purchase is made in respect of the Charged Shares or any proposal is made for varying or abrogating any rights attaching to them; and

 

3.6.13.                             it will not permit any of the Charged Shares to be redeemed and repaid.

 

3.7.                            The Chargor shall remain liable to perform all the obligations assumed by it in relation to the Charged Property and the Chargee shall be under no obligation of any kind whatsoever in respect thereof or be under any liability whatsoever in the event of any failure by the Chargor to perform its obligations in respect thereof.

 

3.8.                            For the avoidance of doubt, the Chargee shall not in any circumstances incur and liability whatsoever in respect of any calls, instalments or otherwise in connection with the Charged Property.

 

3.9.                            Upon the Chargee being satisfied that the Secured Obligations have been unconditionally and irrevocably paid and discharged in full, or as otherwise provided in the Credit Agreement or the other Loan Documents, and following a written request therefor from the Chargor, the Chargee will, subject to being indemnified to their reasonable satisfaction for the costs and expenses incurred by the Chargee in connection therewith, release the security constituted by this Charge.

 

4.                                      REPRESENTATIONS AND WARRANTIES OF THE CHARGOR

 

4.1.                            The Chargor hereby represents and warrants to the Chargee and the Secured Parties that:

 

4.1.1.                                    it is not in breach of any of its obligations under this Charge;

 

4.1.2.                                    the Chargor is the sole legal and beneficial owner of all of the Charged Property free from any Lien (other than any Permitted Lien) and any options or rights of pre-emption;

 

4.1.3.                                    the Chargor has not sold or otherwise disposed of or agreed to sell or otherwise dispose of or granted or agreed to grant any option in respect of the Charged

 

7

 

Property and will not do any of the foregoing at any time during the Security Period;

 

4.1.4.                                    it is not necessary that this Charge be filed, recorded or enrolled with any court or other authority in Ireland or any other jurisdiction (except filing with the Irish Companies Registration Office pursuant to Section 111 of the Companies Act 1963 and under the Uniform Commercial Code enacted in any jurisdiction);

 

4.1.5.                                    the Charged Shares constitute all of the issued share capital of the Company;

 

4.1.6.                                    the Charged Shares have been duly authorised, validly issued and are fully paid or credited as fully paid, no calls have been made in respect thereof and remain unpaid and no calls can be made in respect of such Charged Shares in the future;

 

4.1.7.                                    the terms of the Charged Shares and of the constitutive documents of the Company do not restrict or otherwise limit the Chargor’s right to transfer or charge the Charged Shares and the directors of the Company cannot refuse to register any transfer of the Charged Shares to the Chargee or any party nominated by the Chargee;

 

4.1.8.                                    it will not be required to make any deduction or withholding from any payment it may make under this Charge.

 

4.2.                            The Chargor acknowledges that the Chargee has entered into this Charge in reliance on the representations and warranties set out in Clause 4.1.

 

5.                                      DEALINGS WITH CHARGED PROPERTY

 

5.1.                            Unless and until the occurrence of an Enforcement Event which is continuing:

 

5.1.1.                                    subject always to Clause 3.3, the Chargor shall continue to be entitled to exercise all voting and consensual powers pertaining to the Charged Property or any part thereof for all purposes not inconsistent with the terms of this Charge; and

 

5.1.2.                                    the Chargor shall be entitled to receive and retain any cash dividends, but not other moneys or assets accruing on or in respect of the Charged Property or any part thereof

 

provided that the Chargor shall not exercise such voting rights in any manner which, in the opinion of the Chargor, would, or would be reasonably likely to, violate the Credit Agreement or the Security Agreement.

 

5.2.                            The Chargor shall pay when due all calls, installments or other payments and shall discharge all other obligations, which may become due in respect of any of the Charged Property and following the occurrence of an Enforcement Event which is continuing, the

 

8

 

Chargee may if it thinks fit (but shall not be obliged to) make such payments or discharge such obligations on behalf of the Chargor. Any sums so paid by the Chargee in respect thereof shall be repayable on demand by the Chargor with interest thereon calculated in accordance with clause 2.2 and pending such repayment shall constitute part of the Secured Obligations.

 

5.3.                            The Chargee shall not have any duty to ensure that any dividends, interest or other moneys and assets receivable in respect of the Charged Property are duly and punctually paid, received or collected as and when the same become due and payable or to ensure that the correct amounts (if any) are paid or received on or in respect of the Charged Property or to ensure the taking up of any (or any offer of any) stocks, shares, rights, moneys or other property paid, distributed, accruing or offered at any time by way of redemption, bonus, rights, preference, or otherwise on or in respect of, any of the Charged Property.

 

5.4.                            The Chargor hereby authorises the Chargee to arrange at any time and from time to time (after the occurrence of an Enforcement Event which is continuing) for the Charged Property or any part thereof to be registered in the name of the Chargee (or its nominee) thereupon to be held, as so registered, subject to the terms of this Charge.

 

5.5.                            The Chargor may not take any action in relation to the Charged Property or this Charge under the provisions of Section 94 of the Act (Court order for sale).

 

6.                                      PRESERVATION OF SECURITY

 

6.1.                            It is hereby agreed and declared that:

 

6.1.1.                                    the security created by this Charge shall be held by the Chargee as a continuing security for the payment and discharge of the Secured Obligations and the security so created shall not be satisfied by any intermediate payment or satisfaction of any part of the Secured Obligations;

 

6.1.2.                                    the security created by this Charge is in addition to and independent of and shall not prejudice or merge with any other security (or any right of set-off) which the Chargee may hold at any time for the Secured Obligations or any of them;

 

6.1.3.                                    the Chargee shall not be bound to seek to recover any amounts due from Delos or any other person, exercise any rights against Delos or any other person or enforce any other security before enforcing the security created by this Charge;

 

6.1.4.                                    no delay or omission on the part of the Chargee in exercising any right, power or remedy under this Charge shall impair such right, power or remedy or be construed as a waiver thereof nor shall any single or partial exercise of any such right, power or remedy preclude any further exercise thereof or the exercise of any other right, power or remedy. The rights, powers and remedies herein provided are cumulative and not exclusive of any rights, powers and 

 

9

 

remedies provided by law and may be exercised from time to time and as often as the Chargee may deem expedient; and

 

6.1.5.                                    any waiver by the Chargee of any terms of this Charge shall only be effective if given in writing and then only against the Chargee and for the purpose and upon the terms for which it is given.

 

6.2.                            Where any discharge is made in whole or in part or any arrangement is made on the faith of any payment, security or other disposition which is avoided or must be repaid on bankruptcy, liquidation, by virtue of Section 1001 of the Taxes Consolidation Act 1997 or otherwise without limitation, this Charge shall continue in force as if there had been no such discharge or arrangement. The Chargee shall be entitled to concede or compromise in good faith any claim that any such payment, security or other disposition is liable to avoidance or repayment.

 

6.3.                            Until the Secured Obligations have been unconditionally and irrevocably satisfied and discharged in full to the satisfaction of the Chargee or as otherwise provided in the Credit Agreement or the Security Agreement, the Chargee may at any time keep in a separate account or accounts (without liability to pay interest thereon) in the name of the Chargee for as long as the Chargee may think fit, any moneys received recovered or realised under this Charge or under any other guarantee, security or agreement relating in whole or in part to the Secured Obligations without being under any intermediate obligation to apply the same or any part thereof in or towards the discharge of such amount.

 

7.                                      ENFORCEMENT OF SECURITY

 

7.1.                            The security hereby constituted shall become enforceable upon the occurrence of an Enforcement Event which is continuing.

 

7.2.                            At any time after the occurrence of an Enforcement Event which is continuing, the rights conferred on the Chargee under this Charge or by law shall be immediately exercisable upon and at any time thereafter and, without prejudice to the generality of the foregoing, the Chargee or any Receiver appointed hereunder without further notice to the Chargor:

 

7.2.1.                                    may solely and exclusively exercise all voting and/or consensual powers pertaining to the Charged Property or any part thereof and may exercise such powers in a such manner as the Chargee may think fit; and/or

 

7.2.2.                                    may complete any share transfer forms then held by the Chargee pursuant to this Charge in the name of the Chargee (or its nominee) and the Chargor shall do whatever the Chargee requires in order to procure the prompt registration of such transfer and the prompt issue of a new certificate or certificates for the relevant Charged Property in the name of the Chargee; and/or

 

7.2.3.                                    date any or all, as the Chargee in its absolute discretion may deem appropriate, of the letters of resignation of the Directors and Secretary of the Company provided to the Chargee pursuant to clause 3.2.5, the proxy provided to the Chargee pursuant to clause 3.2.3 and the appointment provided to the Chargee 

 

10

 

pursuant to clause 3.2.4 and sign, seal, execute, deliver, acknowledge, file and register all such documents, instruments, agreements, certificates and any other document (including, but not limited to, such letters of resignation) and do any and all such other acts or things as the Chargee may in its absolute discretion deem necessary or desirable to remove any or all of the Directors and/or Secretary from the office of director or, as the case may be, secretary of the Company; and/or

 

7.2.4.                                    may receive and retain all dividends, interest or other moneys or assets accruing on or in respect of the Charged Property or any part thereof, such dividends, interest or other moneys or assets to be held by the Chargee, as additional security charged under and subject to the terms of this Charge and any such dividends, interest and other moneys or assets received by the Chargor after such time shall be held in trust by the Chargor for the Chargee and paid or transferred to the Chargee on demand; and/or

 

7.2.5.                                    may sell, transfer, grant options over or otherwise dispose of the Charged Property or any part thereof at such place and in such manner and at such price or prices as the Chargee may deem fit, and thereupon the Chargee shall have the right to deliver, assign and transfer in accordance therewith the Charged Property so sold, transferred, granted options over or otherwise disposed of.

 

7.3.                            At any time after the security constituted by this Charge has become enforceable:

 

7.3.1. the statutory power of sale conferred by section 100 (Power of sale) of the Act free from restrictions contained in section 100(1)(a), (b), (c), (2), (3) and (4) and without the requirement to serve notice (as provided for in section 100(1)); and

 

7.3.2. the incidental powers of sale conferred by section 102 (Incidental powers)

 

will immediately arise and be exercisable by the Chargee and/or any Receiver (as appropriate).

 

7.4.                            Upon any sale of the Charged Property or any part thereof by the Chargee, the purchaser shall not be bound to see or enquire whether the Chargee’s power of sale has become exercisable in the manner provided in this Charge and for the purposes and benefit of such purchaser the sale shall be deemed to be within the power of the Chargee, and the receipt of the Chargee for the purchase money shall effectively discharge the purchaser who shall not be concerned with the manner of application of the proceeds of sale or be in any way answerable therefor.

 

7.5.                            The Chargee shall not be obliged to make any enquiry as to the nature or sufficiency of any payment received by it under this Charge or to make any claim or to take any action to collect any moneys assigned by this Charge or to enforce any rights or benefits assigned to it by this Charge or to which it may at any time be entitled hereunder.

 

7.6.                            Neither the Chargee nor any of its respective agents, managers, officers, employees, delegates and advisers shall be liable for any claim, demand, liability, loss, damage, cost

 

11

 

or expense incurred or arising in connection with the exercise or purported exercise of any rights, powers and discretions hereunder in the absence of gross negligence, dishonesty or willful default.

 

7.7.                            The provisions of section 97 of the Act (Taking possession), section 99(1) (Mortgagee in possession) and section 101 (Applications under sections 97 and 100) shall not apply to this Charge.

 

7.8.                            Receivers

 

7.8.1.                                    At any time after the occurrence of an Enforcement Event, the Chargee may by a written instrument and without notice to any party appoint a Receiver of the Charged Property or any part of it. A Receiver so appointed shall be the agent of the Chargor and the Chargor shall be solely responsible for his acts, defaults and remuneration but the Chargee will have power from time to time to fix the remuneration of any Receiver and direct payment thereof out of the proceeds of the Charged Property. The restrictions contained in section 108(1) and the provisions of sub-sections 108(4) and (7) (Appointment of a Receiver) of the Act will not apply to the appointment of a Receiver under this clause 7.8.1;

 

7.8.2.                                    The Chargee may by instrument in writing delegate to any such Receiver all or any of the rights, powers and discretions vested in it by this Charge pursuant to section 108(3) of the Act;

 

7.8.3.                                    The Chargee may by instrument in writing delegate to any such Receiver all or any of the rights, powers and discretions vested in it by this Charge;

 

7.8.4.                                    In addition to the powers conferred on the Chargee by this Charge, the Receiver appointed pursuant to Clause 7.8.1 shall have in relation to the Charged Property all the powers conferred by the Act (as extended by this Charge) on a Receiver appointed under that Act;

 

7.8.5.                                    The Chargee shall not be responsible for any negligence on the part of a Receiver, provided that the Chargee shall have used bona fides in the appointment of such Receiver;

 

7.8.6.                                    Neither the Chargee nor any Receiver appointed under this Charge shall be liable to account as mortgagee in possession in respect of any of the Charged Property or be liable for any loss upon realisation or for any neglect or default of any nature whatsoever (except to the extent that the same results from their or his gross negligence or willful default in connection with any of the Charged Property) for which a mortgagee in possession might as such be liable and all costs, charges and expenses incurred by the Chargee or any Receiver appointed hereunder (including the costs of any proceedings to enforce the security) together with all Value Added Tax thereon shall be paid by the Chargor on a solicitor and own client basis and shall form part of the Secured Obligations and be charged on and paid out of the Charged Property; and

 

12

 

7.8.7.                                    All amounts realized by the Chargee in connection with the exercise of rights and remedies hereunder shall be applied by the Chargee as provided in section 3.02 (Priority of Payments) of the Security Agreement. To the extent relevant, the subordination arrangements set forth in Sections 2, 5 and 6 of the Intercreditor Agreement shall apply to this Charge.

 

8.                                      FURTHER ASSURANCES

 

8.1.                            The Chargor shall from time to time at its expense, execute and deliver any and all such further instruments and documents and take all such actions as the Chargee in its reasonable discretion may require for:

 

8.1.1.                  perfecting, protecting or ensuring the priority of the security hereby created (or intended to be created);

 

8.1.2.                  preserving or protecting any of the rights of the Chargee under this Charge;

 

8.1.3.                  ensuring that the security constituted by this Charge and the covenants and obligations of the Chargor under this Charge shall enure to the benefit of any assignee of the Chargee;

 

8.1.4.                  facilitating the appropriation or realisation of the Charged Property or any part thereof; or

 

8.1.5.                  the exercise of any power, authority or discretion vested in the Chargee under this Charge, in any such case, forthwith upon demand by the Chargee and at the expense of the Chargor.

 

9.                                      INDEMNITIES

 

9.1.                            The Chargor will indemnify and save harmless the Chargee and each of its agents or attorneys appointed under or pursuant to this Charge from and against any and all expenses, claims, liabilities, losses, taxes, costs, duties, fees and charges suffered, incurred or made by the Chargee or such agent or attorney:

 

9.1.1.                                    in the exercise or purported exercise of any rights, powers or discretions vested in them pursuant to this Charge;

 

9.1.2.                                    in the preservation or enforcement of the Chargee’s rights under this Charge or the priority thereof; or

 

9.1.3.                                    on the release of any part of the Charged Property from the security created by this Charge,

 

as provided in the Security Agreement and subject to the terms thereof.

 

9.2                               If, under any applicable law or regulation, and whether pursuant to a judgment being made or registered against the Chargor or the bankruptcy or liquidation of the Chargor or

 

13

 

for any other reason any payment under or in connection with this Charge is made or fails to be satisfied in a currency (the Payment Currency) other than the currency in which such payment is due under or in connection with this Charge (the Contractual Currency), then to the extent that the amount of such payment actually received by the Chargee when converted into the Contractual Currency at the rate of exchange, falls short of the amount due under or in connection with this Charge, the Chargor, as a separate and independent obligation, shall indemnify and hold harmless the Chargee against the amount of such shortfall. For the purposes of this clause 9.2, rate of exchange means the rate at which the Chargee is able on or about the date of such payment to purchase the Contractual Currency with the Payment Currency and shall take into account any premium and other costs of exchange with respect thereto.

 

10.                               POWER OF ATTORNEY

 

10.1.                     The Chargor by way of security hereby irrevocably appoints and constitutes the Chargee and any Receiver jointly and also severally the attorney or attorneys of the Chargor on the Chargor’s behalf and in the name of the Chargor or otherwise and to do all acts and to execute, seal or otherwise affect any deed, assurance, agreement, instrument, document or act which the Chargor could itself do in relation to the Charged Property or which may be required or which may be deemed proper for any of the matters provided for in this Charge.

 

10.2.                     The power hereby conferred shall be a general power of attorney and the Chargor hereby ratifies and confirms and agrees to ratify and confirm any instrument, act or thing which any such attorney may execute or do. In relation to the power referred to herein, the exercise by the Chargee of such power shall be conclusive evidence of its right to exercise the same.

 

10.3.                     This power shall not become exercisable unless and until an Enforcement Event has occurred and is continuing.

 

11.                               EXPENSES

 

11.1.                     Subject to the terms of the Credit Agreement, the Chargor shall pay to the Chargee within 10 Business Days of demand all costs, fees and expenses (including, but not limited to, legal fees and expenses) and taxes thereon incurred by the Chargee (or any Secured Party) or for which the Chargee may become liable in connection with:

 

11.1.1.                             the negotiation, preparation and execution of this Charge;

 

11.1.2.                             the preserving or enforcing of, or attempting to preserve or enforce, any of its rights under this Charge or the priority hereof;

 

11.1.3.                             any variation of, or amendment or supplement to, any of the terms of this Charge; and /or

 

11.1.4.                             any consent or waiver required from the Chargee in relation to this Charge,

 

14

 

and in the case referred to in clauses 11.1.3 and 11.1.4 regardless of whether the same is actually implemented, completed or granted, as the case may be.

 

11.2.                     The Chargor shall pay promptly all stamp, documentary, registration and other like duties and taxes to which this Charge may be subject or give rise and shall indemnify the Chargee on demand against any and all liabilities with respect to or resulting from any delay or omission on the part of the Chargor to pay any such duties or taxes.

 

11.3.                     The provisions of section 109 (Application of money received) of the Act shall not apply to this Charge.

 

12.                               ASSIGNMENTS

 

12.1.                     This Charge shall be binding upon and shall enure to the benefit of the Chargor and the Chargee and each of their respective successors and (subject as hereinafter provided) assigns and references in this Charge to any of them shall be construed accordingly.

 

12.2.                     The Chargor may not assign or transfer all or any part of its rights and/or obligations under this Charge.

 

12.3.                     The Chargee may assign or transfer all or any part of its rights or obligations under this Charge as provided in the Security Agreement. The Chargee will be entitled to disclose any information concerning the Chargor to any proposed assignee or transferee. The Chargee shall notify the Chargor promptly following any such assignment or transfer.

 

12.4.                     In the event of assignment or transfer by the Chargee as permitted by clause 12.3, the Chargor shall at the request of the Chargee join in such assignment or transfer so as to cause the full benefit of this Charge to be passed to the relevant assignee or transferee.

 

13.                               MISCELLANEOUS

 

13.1.                     The Chargee, at any time and from time to time, may delegate by power of attorney or in any other manner to any person or persons all or any of the powers, authorities and discretions which are for the time being exercisable by the Chargee under this Charge in relation to the Charged Property or any part thereof. Any such delegation may be made upon such terms and be subject to the regulations as the Chargee may think fit. The Chargee shall not be in any way liable or responsible to the Chargor for any loss or damage arising from any act, default, omission or misconduct on the part of any such delegate provided that the Chargee has acted reasonably in selecting such delegate.

 

13.2.                     If any of the clauses, conditions, covenants or restrictions (the Provision) of this Charge or any deed or document emanating from it shall be found to be void but would be valid if some part thereof were deleted or modified, then the Provision shall apply with such deletion or modification as may be necessary to make it valid and effective.

 

13.3.                     This Charge (together with any documents referred to herein) constitutes the whole agreement between the Parties relating to its subject matter and no variations hereof shall be effective unless made in writing and signed by each of the Parties.

 

15

 

13.4.                     This Charge may be executed in counterparts each of which when executed and delivered shall constitute an original but all such counterparts together shall constitute one and the same instrument.

 

13.5.                     A certificate of the Chargee as to the amount of any Secured Obligation owed to it (whether for itself or in a representative capacity) shall, in the absence of manifest error, be conclusive evidence of the existence and amount of such Secured Obligation.

 

13.6.                     If the Chargee causes or requires Charged Property to be registered in the name of a nominee for the Chargee, any reference in this Charge to the Chargee shall, if the context so permits or requires, be construed as a reference to each of the Chargee and such nominee.

 

13.7.                     The rights and remedies of the Chargee under this Charge are cumulative and without prejudice and in addition to any rights or remedies which the Chargee may have at law or in equity. No exercise by the Chargee of any right or remedy under this Charge or at law or in equity shall (save to the extent, if any, provided expressly in this Charge, or at law or in equity) operate so as to hinder or prevent the exercise by it of any other right or remedy. Each and every right and remedy may be exercised from time to time as often and in such order as may be deemed expedient by the Chargee.

 

14.                               LIMIT OF LIABILITY

 

The provisions of section 8.13 (Limited Recourse) of the Security Agreement shall apply mutatis mutandis to this Charge as if written out in full herein.

 

15.                               LAW AND JURISDICTION

 

15.1.                     This Charge, and any non-contractual obligations arising out of or in connection with this Charge, shall be governed and construed in accordance with Irish law.

 

15.2.                     The Chargor irrevocably agrees for the benefit of the Chargee that the courts of Ireland shall have jurisdiction to hear and determine any suit, action or proceeding, and to settle any disputes, whether relating to a contractual or non-contractual obligation, which may arise out of or in connection with this Charge and, for such purposes, irrevocably submits to the jurisdiction of such courts.

 

15.3.                     The Chargor irrevocably waives any objection which it might now or hereafter have to the courts referred to in Clause 15.2 being nominated as the forum to hear and determine any suit, action or proceeding, and to settle any disputes, which may arise out of or in connection with this Charge and agrees not to claim that any such court is not a convenient or appropriate forum in each case whether on the grounds of venue or forum non convenient or any similar grounds or otherwise.

 

15.4.                     The submission to the jurisdiction of the courts referred to in Clause 15.2 shall not (and shall not be construed so as to) limit the right of the Chargee to take proceedings against the Chargor in any other court of competent jurisdiction nor shall the taking of

 

16

 

proceedings in any one or more jurisdictions preclude the taking of proceedings in any other jurisdiction, whether concurrently or not.

 

15.5.                     To the extent that the Chargor, or any of the property of the Chargor is or becomes entitled at any time to any immunity on the grounds of sovereignty or otherwise from any legal action, suit or proceeding, from set-off or counterclaim, from the jurisdiction of any competent court, from service of process, from attachment prior to judgment, from attachment in aid of execution, or from execution prior to judgment, or other legal process in any jurisdiction, the Chargor for itself, and its property does hereby irrevocably and unconditionally waive, and agrees not to plead or claim, any such immunity with respect to its or his, as the case may be, obligations, liabilities or any other matter under or arising out of or in connection with this Charge or the subject matter hereof or thereof.

 

16.                               CONFLICTS

 

In the event of a conflict between the provisions of this Charge on the one hand and the Credit Agreement or the Security Agreement on the other hand, the provisions of the Credit Agreement or Security Agreement shall control.

 

17

 

Schedule A

 

	
Company
    	
 
    	
Number and Description of
   Shares
    	
 
    	
Registered Holder
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Delos   Aircraft Limited
    	
 
    	
10   Ordinary Shares of USD$1.00 each
    	
 
    	
Hyperion   Aircraft Limited
    

 

18

 

SCHEDULE B

 

Part I

 

To:                             Deutsche Bank AG New York Branch
 (the Chargee)

 

Date:        March 2014
  (Date of Charge)

 

Dear Sirs

 

Delos Aircraft Limited (the Company)

 

I hereby unconditionally and irrevocably authorise you to date the resignation letter in respect of the Company deposited by me with you pursuant to the share charge dated  March 2014 (the Charge) between Hyperion Aircraft Limited and yourselves, as and when you become entitled to date and complete the same pursuant to the terms of the Charge.

 

Yours faithfully,

 

[name]

[Director] / [Secretary]

 

19

 

SCHEDULE B

 

PART II

 

Date

 

The Board of Directors
 Delos Aircraft Limited (the Company)

 

Dear Sirs,

 

Resignation of Directors/Secretary

 

[I]/[We] hereby tender [my]/[our] resignation as [Director]/[Secretary] of the Company with effect from the date hereof.

 

[I]/[We] hereby confirm that [I]/[We] have no rights to compensation or claims against the Company for loss of office or arrears of pay [(or, in the case of secretary, fees)].

 

This letter shall be governed by and construed in accordance with Irish law.

 

Yours faithfully,

 

	
Signed   and Delivered
    	
 
    	
 
    
	
by   [insert name of director/secretary]
    	
 
    	
 
    
	
in   the presence of:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Witness   Signature:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Witness   Name:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Witness   Address:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    

 

20

 

Schedule C

 

Form of Proxy

 

We, Hyperion Aircraft Limited, hereby irrevocably appoint Deutsche Bank AG New York Branch, (as Chargee) as our proxy to vote at meetings of the shareholders of Delos Aircraft Limited (the Company) in respect of any existing or further shares in the Company which may have been or may from time to time be issued to us and/or registered in our name. This proxy is irrevocable by reason of being coupled with the interest of Deutsche Bank AG New York Branch, (as Chargee) as chargee of the aforesaid shares.

 

 

	
 
    	
 
    
	
 
    	
 
    
	
HYPERION   AIRCRAFT LIMITED
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Dated:
    	
 
    	
 
    
			

 

21

 

Schedule D

 

Form of Irrevocable Appointment

 

We, Hyperion Aircraft Limited hereby irrevocably appoint Deutsche Bank AG New York Branch, (as Chargee) as our duly authorised representative to sign resolutions in writing of Delos Aircraft Limited (the Company) in respect of any existing or further shares in the Company which may have been or may from time to time be issued to us and/or registered in our name.

 

 

	
 
    	
 
    
	
 
    	
 
    
	
HYPERION   AIRCRAFT LIMITED
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Dated:
    	
 
    	
 
    
			

 

22

 

IN WITNESS whereof the parties hereto have caused this Charge to be duly executed on the date first written.

 

	
SIGNED   AND DELIVERED AS A DEED
    	
 
    
	
for   and on behalf of
    	
 
    
	
HYPERION   AIRCRAFT LIMITED
    	
 
    
	
by   its lawfully appointed attorney:
    	
 
    
	
 
    	
 
    
	
in   the presence of:
    	
 
    
	
 
    	
 
    
	
Witness   Signature:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Witness   Name:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Witness   Address:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
SIGNED   AND DELIVERED by
    	
 
    
	
DEUTSCHE   BANK AG NEW YORK BRANCH,
    	
 
    	
 
    
	
in   the presence of:
    	
 
    
	
 
    	
 
    
	
Witness   Signature:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Witness   Name:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Witness   Address:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    

 

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EXHIBIT C
 SECURITY AGREEMENT

 

FORM OF PLEDGE OVER SHARES OF BORROWER

 

Exhibit C-1

 

 

	
[CLIFFORD   CHANCE Logo]
    	
CLIFFORD   CHANCE
    
	
 
    	
 
    
	
 
    	
10,   BOULEVARD G.D.
    
	
 
    	
CHARLOTTE
    
	
 
    	
B.P.   1147
    
	
 
    	
L-1011   LUXEMBOURG
    
	
 
    	
GRAND-DUCHE   DE
    
	
 
    	
LUXEMBOURG
    
	
 
    	
 
    
	
 
    	
TEL   +352 48 50 50 1
    
	
 
    	
FAX   +352 48 13 85
    
	
 
    	
 
    
	
 
    	
WWW.CLIFFORDCHANCE.COM
    

 

DELOS AIRCRAFT LIMITED

 

AS PLEDGOR

 

AND

 

DEUTSCHE BANK AG NEW YORK BRANCH

 

AS COLLATERAL AGENT

 

 

PLEDGE OVER SHARES AGREEMENT

 

(DELOS FINANCE S.À R.L.)

 

 

 

CONTENTS

 

	
CLAUSE
    	
 
    	
PAGE
    
	
 
    	
 
    	
 
    
	
1.
    	
DEFINITIONS   AND INTERPRETATION
    	
2
    
	
2.
    	
PLEDGE   OVER SHARES (ACTIONS)
    	
4
    
	
3.
    	
VOTING   RIGHTS AND DIVIDENDS
    	
5
    
	
4.
    	
PLEDGOR’S   REPRESENTATIONS AND UNDERTAKINGS
    	
5
    
	
5.
    	
POWER   OF ATTORNEY
    	
6
    
	
6.
    	
REMEDIES   UPON ENFORCEMENT EVENT
    	
7
    
	
7.
    	
EFFECTIVENESS   OF COLLATERAL
    	
7
    
	
8.
    	
INDEMNITY
    	
8
    
	
9.
    	
RIGHTS   OF RECOURSE
    	
9
    
	
10.
    	
PARTIAL   ENFORCEMENT
    	
9
    
	
11.
    	
COSTS   AND EXPENSES
    	
9
    
	
12.
    	
CURRENCY   CONVERSION
    	
9
    
	
13.
    	
NOTICES
    	
10
    
	
14.
    	
SUCCESSORS
    	
10
    
	
15.
    	
AMENDMENTS   AND PARTIAL INVALIDITY
    	
10
    
	
16.
    	
LAW   AND JURISDICTION
    	
10
    
				

 

 

THIS PLEDGE AGREEMENT has been entered into on                                      2014

 

BETWEEN

 

(1)                                 DELOS AIRCRAFT LIMITED, a private limited liability company incorporated under the laws of Ireland, having its registered office at 30 North Wall Quay, Dublin 1 (the “Pledgor”);

 

(2)                                 DEUTSCHE BANK AG NEW YORK BRANCH, acting for itself and as agent for and on behalf of the Secured Parties (the “Collateral Agent”);

 

AND IN THE PRESENCE OF

 

(3)                                 DELOS FINANCE S.À R.L., a société á responsabilité limitée (private limited liability company), incorporated under the laws of Luxembourg, having its registered office at 46A, Avenue J.F. Kennedy, L-1855 Luxembourg, in the process of being registered with the Luxembourg Register of Commerce and Companies and having a share capital of EUR 12,500 (the “Company”).

 

WHEREAS:

 

(A)                               Pursuant to a term loan credit agreement (the “Term Loan Credit Agreement”) dated on or about the date hereof among, inter alios, the Company, as borrower, International Lease Finance Corporation, a California corporation, Hyperion Aircraft Limited, a private limited liability company incorporated under the laws of Ireland (“Grandparent Holdco”), Delos Aircraft Limited, a private limited liability company incorporated under the laws of Ireland (“Parent Holdco”), Apollo Aircraft Inc., a California corporation (“CA Subsidiary Holdco”), Artemis (Delos) Limited, a private limited liability company incorporated under the laws of Ireland (“Irish Subsidiary Holdco”), the lenders from time to time party to thereto, Deutsche Bank AG New York Branch, as Administrative Agent, and Deutsche Bank AG New York Branch as the Collateral Agent, certain loans have been made available to the Company.

 

(B)                               As a condition precedent to the drawdown under the Term Loan Credit Agreement, the Pledgor has agreed, for the purpose of creating a security interest for the payment and discharge of all of the Secured Obligations, to enter into this pledge agreement (the “Pledge Agreement”) which the Pledgor declares to be in its best corporate interest.

 

IT IS AGREED as follows:

 

1.                                      DEFINITIONS AND INTERPRETATION

 

1.1                               Terms defined in the Term Loan Credit Agreement or the Security Agreement, as applicable shall bear the same meaning herein, unless expressly provided to the contrary.

 

1.2                               In this Pledge Agreement:

 

 

“Enforcement Event” has the meaning ascribed to such term in the Security Agreement.

 

“Financial Collateral Law” means the Luxembourg law of 5 August 2005 on financial collateral arrangements, as amended.

 

“Loan Documents” has the meaning ascribed to such term in the Term Loan Credit Agreement.

 

“Obligors” means any Borrower Party (such term as defined in the Term Loan Credit Agreement).

 

“Pledged Portfolio” means the Shares and the Related Assets.

 

“Related Assets” means all dividends, interest and other monies payable in respect of the Shares and all other rights, benefits and proceeds (including the proceeds from any sale of the Shares following an enforcement of the Pledge and, in particular, any proceeds that may not immediately be used to discharge Secured Obligations) in respect of or derived from the Shares (whether by way of redemption, liquidation, bonus, preference, option, substitution, conversion or otherwise) except to the extent these constitute Shares.

 

“Rights of Recourse” means all and any rights, actions and claims the Pledgor may have against any Obligors or any other person having granted security or given a guarantee for the Secured Obligations, arising under or pursuant to the enforcement of the present Pledge including, in particular, the Pledgor’s right of recourse against any such entity under the terms of Article 2028 et seq. of the Luxembourg Civil Code (including, for the avoidance of doubt, any right of recourse prior to enforcement), or any right of recourse by way of subrogation or any other similar right, action or claim under any applicable law.

 

“Secured Obligations” means all principal of the Loans outstanding from time to time under the Term Loan Credit Agreement, all interest (including Post-Petition Interest) on the Loans, all other amounts now or hereafter payable by any Obligor under any Loan Document and any fees or other amounts now or hereafter payable by any Obligor to the Administrative Agent or the Collateral Agent for acting in its capacity as such pursuant to a separate agreement among such parties, in each case, whether direct or indirect, absolute or contingent, due or to become due, now existing or hereafter arising.

 

“Security Agreement” means the term loan security agreement, dated on or about the date hereof among, inter alios, the Company, Grandparent Holdco, Parent Holdco, CA Subsidiary Holdco, Irish Subsidiary Holdco, the additional grantors referred to therein and Deutsche Bank AG New York Branch.

 

“Shares” means all of the shares (“parts sociales”) in the share capital of the Company held by, to the order or on behalf of the Pledgor at any time, including for the avoidance of doubt any shares which shall be issued to the Pledgor from time to time, regardless of the reason of such issuance, whether by way of substitution, 

 

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replacement, dividend or in addition to the shares held on the date hereof, whether following an exchange, division, free attribution, contribution in kind or in cash or for any other reason (the “Future Shares”), in which case such Future Shares shall immediately be and become subject to the security interest created hereunder.

 

“Share Register” means the register of shareholders of the Company.

 

1.3                               In this Pledge Agreement, any reference to (a) a “Clause” is, unless otherwise stated, a reference to a Clause hereof and (b) to any agreement (including this Pledge Agreement, the Term Loan Credit Agreement or any other Loan Documents) is a reference to such agreement as amended, varied, modified or supplemented (however fundamentally) from time to time. Clause headings are for ease of reference only.

 

1.4                               This Pledge Agreement may be executed in any number of counterparts and by way of facsimile exchange of executed signature pages, all of which together shall constitute one and the same Pledge Agreement.

 

2.                                     PLEDGE OVER SHARES (ACTIONS)

 

2.1                               The Pledgor pledges the Pledged Portfolio in favour of the Collateral Agent, acting for itself and as agent for and on behalf of the Secured Parties, who accepts, as first-priority pledge (gage de premier rang) (the “Pledge”) for the due and full payment and discharge of all of the Secured Obligations.

 

2.2                               The Pledgor and the Collateral Agent request the Company and the Company, by signing hereunder for acceptance, undertakes to register the Pledge in the Share Register and to provide to the Collateral Agent a certified copy of the Share Register evidencing such registration on the date hereof. The Company furthermore undertakes to proceed to any further formalities and registrations required to perfect the present Pledge each time Future Shares are issued to the Pledgor.

 

2.3                               The following wording shall be used for the registration:

 

“All shares owned from time to time by Delos Aircraft Limited and, in particular, the (number) of shares owned on the date of the present registration, have been pledged as a first ranking pledge (gage de premier rang) in favour of Deutsche Bank AG New York Branch, as Collateral Agent, pursuant to a pledge over shares agreement dated [date], to secure the Secured Obligations (as defined in such pledge over shares agreement).”

 

2.4                               The Pledgor and the Collateral Agent hereby give power to any manager of the Company, with full power of substitution, to register the Pledge in the Share Register.

 

2.5                               Without prejudice to the above provisions, the Pledgor hereby irrevocably authorises and empowers the Collateral Agent to take or to cause any formal steps to be taken by the managers or other officers of the Company for the purpose of perfecting the present Pledge and, for the avoidance of doubt, undertakes to take any such steps itself if so directed by the Collateral Agent. In particular, should any such steps be 

 

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required in relation to Future Shares, the Pledgor undertakes to take any such steps simultaneously to the issuance or receipt of Future Shares.

 

2.6                               The Pledgor undertakes that during the subsistence of this Pledge Agreement it will not grant any pledge in respect of the Pledged Portfolio (other than the Pledge created under this Agreement) without the prior written approval of the Collateral Agent.

 

3.                                      VOTING RIGHTS AND DIVIDENDS

 

3.1                               As long as this Pledge Agreement remains in force and until the occurrence of an Enforcement Event which is continuing, the Pledgor shall be entitled to receive all Related Assets. Following the occurrence of an Enforcement Event which is continuing, the Collateral Agent shall be entitled to receive all Related Assets and to apply them in accordance with the terms of the Loan Documents. If the Pledgor receives any Related Assets following an Enforcement Event which is continuing, the Pledgor shall promptly pay them over to the Collateral Agent.

 

3.2                              Until the occurrence of an Enforcement Event which is continuing, the Pledgor shall be entitled to exercise all voting rights attached to the Shares in a manner which does not (i) adversely affect this Pledge, cause an Enforcement Event to occur or vary the rights attaching to or conferred by all or any part of the Pledged Portfolio or (ii) increase the issued share capital of the Company (except in accordance with clause 4.2.3 below). After the occurrence of an Enforcement Event which is continuing and, for as long as such Enforcement Event is continuing, the Pledgor shall not, without the prior written consent of the Collateral Agent, exercise any voting rights or otherwise in relation to the Shares.

 

3.3                               The Collateral Agent shall be entitled but not obliged, after an Enforcement Event has occurred, is continuing and for as long as such Enforcement Event is continuing, to exercise the voting rights attached to the Shares in accordance with the provisions of Article 9 of the Financial Collateral Law in any manner the Collateral Agent deems fit. The Pledgor shall do whatever is necessary in order to ensure that the exercise of the voting rights in these circumstances is facilitated and becomes possible for the Collateral Agent, including the issuing of a written proxy in any form or any other document that the Collateral Agent may require for the purpose of exercising the voting rights.

 

4.                                      PLEDGOR’S REPRESENTATIONS AND UNDERTAKINGS

 

4.1                               The Pledgor hereby represents to the Collateral Agent that during the subsistence of this Pledge Agreement:

 

4.1.1                     it is, and will be, the sole owner of the Pledged Portfolio free from any encumbrance (other than the Pledge);

 

4.1.2                     the Shares represent the entire issued share capital of the Company;

 

4.1.3                     the Company has not declared any dividends in respect of the Shares that are still unpaid at the date hereof;

 

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4.1.4                     it has not sold or disposed of all or any of its rights, title and interest in the Pledged Portfolio;

 

4.1.5                     it has the necessary power to enable it to enter into and perform its obligations under this Pledge Agreement; and

 

4.1.6                     all necessary authorisations to enable it to enter into this Pledge Agreement have been obtained and are, and will remain, in full force and effect.

 

4.2                               Except with the Collateral Agent’s prior written consent the Pledgor shall not:

 

4.2.1                     sell or otherwise dispose of all or any of the Shares or of its rights, title and interest in the Pledged Portfolio;

 

4.2.2                     create, grant or permit to exist (a) any encumbrance or security interest over or (b) any restriction on the ability to transfer or realise all or any part of the Pledged Portfolio (other than, for the avoidance of doubt, the Pledge or as permitted under the Loan Documents); or

 

4.2.3                     approve an increase of share capital except if the Pledgor subscribes for all the shares.

 

4.3                               The Pledgor hereby undertakes that, during the subsistence of this Pledge Agreement:

 

4.3.1                     it shall cooperate with the Collateral Agent and sign or cause to be signed all such further documents, instruments and powers of attorney and take all such further action as the Collateral Agent may from time to time request to perfect and protect this Pledge or to exercise its rights under this Pledge Agreement; and

 

4.3.2                     as shareholder of the Company, it shall act in good faith to maintain and exercise its rights in the Company, and in particular shall not knowingly take any steps or do anything which could adversely affect the existence of the security interest created hereunder or the value thereof.

 

5.                                      POWER OF ATTORNEY

 

5.1                               The Pledgor irrevocably appoints the Collateral Agent to be its attorney and in its name and on its behalf to execute, deliver and perfect all documents (including any share transfer forms and other instruments of transfer) and do all things that the Collateral Agent may consider to be requisite for (a) carrying out any obligation imposed on the Pledgor under this Pledge Agreement or (b) exercising any of the rights conferred on the Collateral Agent or the Secured Parties by this Pledge Agreement or by law, it being understood that the enforcement of the Pledge must be carried out as described in Clause 6 (Remedies upon Enforcement Event) hereunder.

 

5.2                               The Pledgor shall ratify and confirm all things done and all documents executed by the Collateral Agent in the exercise of that power of attorney, provided that such power of attorney shall not be exercisable prior to the occurrence of an Enforcement 

6

 

Event which is continuing save for such power of attorney necessary for the perfection of this Pledge Agreement.

 

6.                                      REMEDIES UPON ENFORCEMENT EVENT

 

6.1                               Following the occurrence of an Enforcement Event which is continuing, the Collateral Agent shall be entitled to realise the Pledged Portfolio in the most favourable manner provided for by Luxembourg law and may, in particular, but without limitation,

 

6.1.1                     appropriate the Pledged Portfolio in which case the Pledged Portfolio will be valued at its fair value, as determined by a registered, independent auditor (réviseur(s) d’entreprises agrée(s)) or another independent expert appointed by the Pledgor at the costs and expenses of the Pledgor;

 

6.1.2                     sell the Pledged Portfolio in a private sale at normal commercial terms (conditions commerciales normales) for a cash or non-cash consideration,

 

6.1.3                     sell the Pledged Portfolio in a sale organised by a stock exchange (to be chosen by the Collateral Agent) or in a public sale (organised at the discretion of the Collateral Agent and which, for the avoidance of doubt, does not need to be made by or within a stock exchange);

 

6.1.4                     request a judicial decision that the Pledged Portfolio shall be attributed to the Collateral Agent in discharge of the Secured Obligations following a valuation of the Pledged Portfolio made by a court appointed expert; or

 

6.1.5                     if applicable, proceed to a set off between the Secured Obligations and the Pledged Portfolio.

 

6.2                               The Collateral Agent shall apply the proceeds of the sale in paying the costs of that sale or disposal and in or towards the discharge of the Secured Obligations, in accordance with the terms of the Loan Documents.

 

7.                                      EFFECTIVENESS OF COLLATERAL

 

7.1                               The Pledge shall be a continuing security and shall not be considered as satisfied or discharged or prejudiced by any intermediate payment, satisfaction or settlement of any part of the Secured Obligations and shall remain in full force and effect until it has been discharged by the express written release thereof granted by the Collateral Agent.

 

7.2                               The Pledge shall be cumulative, in addition to, and independent of every other security which the Secured Parties may at any time hold as security for the Secured Obligations or any rights, powers and remedies provided by law and shall not operate so as in any way to prejudice or affect or be prejudiced or affected by any security interest or other right or remedy which the Secured Parties may now or at any time in the future have in respect of the Secured Obligations.

 

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7.3                               This Pledge shall not be prejudiced by any time or indulgence granted to any person, or any abstention or delay by the Secured Parties or the Collateral Agent in perfecting or enforcing any security interest or rights or remedies that the Secured Parties or the collateral Agent may now or at any time in the future have from or against the Pledgor or any other person.

 

7.4                               No failure on the part of the Collateral Agent to exercise, or delay on its part in exercising, any of its rights under this Pledge Agreement shall operate as a waiver hereof, nor shall any single or partial exercise of any such right preclude any further exercise of that or any other rights.

 

7.5                               Neither the obligations of the Pledgor contained in this Pledge Agreement nor the rights, powers and remedies conferred upon the Collateral Agent by this Pledge Agreement or by law, nor the Pledge created hereby shall be discharged, impaired or otherwise affected by:

 

7.5.1                     any amendment to, or any variation, waiver or release of, any Secured Obligation or of the obligations of any Obligor under any other Loan Documents;

 

7.5.2                     any failure to take, or fully to take, any security contemplated by the Loan Documents or otherwise agreed to be taken in respect of the Secured Obligations;

 

7.5.3                     any failure to realise or fully to realise the value of, or any release, discharge, exchange or substitution of, any security taken in respect of the Secured Obligations; or .

 

7.5.4                     any other act, event or omission which, but for this Clause 7.5, might operate to discharge, impair or otherwise affect any of the obligations of the Pledgor contained in this Pledge Agreement, the rights, powers and remedies conferred upon the Collateral Agent by this Pledge Agreement, the Pledge or by law.

 

7.6                               For the avoidance of doubt, the Pledgor hereby waives any rights arising for it now or in the future (if any) under Article 2037 of the Luxembourg Civil Code.

 

7.7                               Neither the Secured Parties, nor the Collateral Agent or any of their agents shall be liable by reason of (a) taking any action permitted by this Pledge Agreement or (b) any neglect or default in connection with the Pledged Portfolio or (c) the realisation of all or any part of the Pledged Portfolio, except in the case of gross negligence or wilful misconduct upon their part.

 

8.                                      INDEMNITY

 

8.1                               The Collateral Agent shall not be liable for any loss or damage suffered by the Pledgor save in respect of such loss or damage which is suffered as a result of wilful misconduct or gross negligence of the Collateral Agent.

 

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8.2                               The Secured Parties or the Collateral Agent shall be indemnified in accordance with the provisions of Clause 9.03 (Indemnity) of the Term Loan Credit Agreement.

 

9.                                      RIGHTS OF RECOURSE

 

9.1                               For as long as the Secured Obligations are outstanding and have not been unconditionally and irrevocably paid and discharged in full or the Collateral Agent or the Secured Parties have any obligations or commitments under the Loan Documents, the Pledgor shall not exercise any Rights of Recourse, arising for any reason whatsoever, by any means whatsoever (including for the avoidance of doubt, by way of provisional measures such as provisional attachment (“saisie-arrêt conservatoire”) or by way of set-off).

 

9.2                               The Pledgor furthermore irrevocably waives its Rights of Recourse against any Obligor if (and as of the moment where) the shares of such Obligor (or any holding company of such Obligor) have been disposed of to a person or persons outside the group by enforcement of any Security Document.

 

Without prejudice to Clause 9.1 above, this Clause shall remain in full force and effect notwithstanding any discharge, release or termination of this Pledge (whether or not in accordance with Clause 7.1 of this Pledge Agreement).

 

10.                               PARTIAL ENFORCEMENT

 

10.1                        Subject to Clause 6 (Remedies upon Enforcement Event), the Collateral Agent shall have the right, to request enforcement of all or part of the Pledged Portfolio in its most absolute discretion. No action, choice or absence of action in this respect, or partial enforcement, shall in any manner affect the Pledge created hereunder over the Pledged Portfolio, as it then shall be (and in particular those Shares which have not been subject to enforcement). The Pledge shall continue to remain in full and valid existence until enforcement, discharge or termination hereof, as the case may be.

 

11.                               COSTS AND EXPENSES

 

All the Collateral Agent’s reasonable costs and expenses (including legal fees, stamp duties and any value added tax) incurred in connection with (a) the execution of this Pledge Agreement or otherwise in relation to it, (b) the perfection or enforcement of the collateral hereby constituted or (c) the exercise of its rights, shall be reimbursed to the Collateral Agent in accordance with the provisions of Clause 9.02 (Expenses) of the Term Loan Credit Agreement.

 

12.                               CURRENCY CONVERSION

 

For the purpose of, or pending the discharge of, any of the Secured Obligations the Collateral Agent may convert any money received, recovered or realised or subject to application by it under this Pledge Agreement from one currency to another, as the Collateral Agent may think fit and any such conversion shall be effected at the Collateral Agent’s spot rate of exchange for the time being for obtaining such other currency with the first currency.

 

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13.                               NOTICES

 

Any notice or demand to be served by one person on another pursuant to this Pledge Agreement shall be served in accordance with the provisions of Clause 9.01 (Notices Generally) of the Term Loan Credit Agreement.

 

14.                               SUCCESSORS

 

14.1                        This Pledge Agreement shall remain in effect despite any amalgamation or merger (however effected) relating to the Secured Parties or the Collateral Agent, and references to the Secured Parties or the Collateral Agent shall be deemed to include any assignee or successor in title of the Secured Parties or the Collateral Agent and any person who, under any applicable law, has assumed the rights and obligations of the Secured Parties or the Collateral Agent hereunder or to which under such laws the same have been transferred or novated or assigned in any manner.

 

14.2                        For the purpose of Articles 1278 et seq. of the Luxembourg Civil Code and any other relevant legal provisions, to the extent required under applicable law and without prejudice to any other terms hereof or of any other Loan Documents and in particular Clause 14.1 hereof, the Secured Parties and the Collateral Agent hereby expressly reserve and the Pledgor agrees to the preservation of this Pledge Agreement and the Pledge in case of assignment, novation, amendment or any other transfer of the Secured Obligations or any other rights arising under the Loan Documents.

 

14.3                        To the extent a further notification or registration or any other step is required by law to give effect to the above, such further notification or registration shall be made and the Pledgor hereby gives power of attorney to the Collateral Agent to make any notifications and/or to require any required registrations to be made in the Share Register, or to take any other steps, and undertakes to do so itself if so requested by the Collateral Agent.

 

15.                               AMENDMENTS AND PARTIAL INVALIDITY

 

15.1                        Changes to this Pledge Agreement and any waiver of rights under this Pledge Agreement shall require written form executed by the parties hereto.

 

15.2                        If any provision of this Pledge Agreement is declared by any judicial or other competent authority to be void or otherwise unenforceable, that provision shall be severed from this Pledge Agreement and the remaining provisions of this Pledge Agreement shall remain in full force and effect. The Pledge Agreement shall, however, thereafter be amended by the parties in such reasonable manner so as to achieve, without illegality, the intention of the parties with respect to that severed provision.

 

16.                               LAW AND JURISDICTION

 

This Pledge Agreement and any non-contractual obligations arising out of or in connection with it shall be governed by Luxembourg law and the courts of Luxembourg-City shall have exclusive jurisdiction to settle any dispute which may arise from or in connection with it.

 

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This Pledge Agreement has been duly executed by the parties in three copies.

 

	
 
    	
 
    
	
The   Collateral Agent
    	
 
    
	
 
    	
 
    
	
DEUTSCHE   BANK AG NEW YORK
    	
 
    
	
 
    	
 
    
	
Duly   represented by:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Name:
    	
 
    
	
 
    	
 
    
	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Name:
    	
 
    
	
 
    	
 
    
	
Title:
    	
 
    

 

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The   Pledgor
    	
 
    
	
 
    	
 
    
	
DELOS   AIRCRAFT LIMITED
    	
 
    
	
 
    	
 
    
	
Duly   represented by:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Name:
    	
 
    
	
 
    	
 
    
	
Title:
    	
 
    

 

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By signing hereunder for acceptance, the Company acknowledges and accepts the existence of this Pledge Agreement and security interest created hereunder over the Pledged Portfolio for the purposes of the Financial Collateral Law, takes notice of the terms thereof, undertakes to duly register forthwith this Pledge in its Share Register and to provide the Collateral Agent with a certified copy of the Share Register, evidencing the registration of the present pledge on the date hereof.

 

	
The   Company
    	
 
    
	
 
    	
 
    
	
DELOS   FINANCE S.À R.L.
    	
 
    
	
 
    	
 
    
	
Duly   represented by:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Name:
    	
 
    
	
 
    	
 
    
	
Title:
    	
 
    

 

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EXHIBIT D
 SECURITY AGREEMENT

 

FORM OF ACCOUNT CONTROL AGREEMENT

 

March 6, 2014

 

Deutsche Bank Trust Company Americas
 60 Wall Street, 16th Floor
 Mail Stop:  NYC60-1630
 New York, New York 10005

 

Whereas, Delos Finance S.à r.l. (“Pledgor”) has granted to Deutsche Bank AG New York Branch, as Collateral Agent (“Pledgee”), for the benefit of the Secured Parties, a security interest in Account number S94009.1 (the “Collateral Account”), held by Deutsche Bank Trust Company Americas (the “Securities Intermediary”) together with all financial funds, investments, instruments, assets, investment property, securities, cash and other property now or hereafter held therein, and the proceeds thereof, including without limitation dividends payable in cash or stock and shares or other proceeds of conversions or splits of any securities in the Collateral Account (collectively, the “Collateral”).  Pledgor, Pledgee and the Securities Intermediary agree that the Collateral Account is a “securities account” within the meaning of Article 8 of the Uniform Commercial Code of the State of New York (the “UCC”) and that all Collateral held in the Collateral Account will be treated as a “financial asset” within the meaning of Section 8-102(a)(9) of the UCC.

 

Whereas, the grant of security interest described above is pursuant to that certain Term Loan Security Agreement dated as of the date hereof among Hyperion Aircraft Limited, the Pledgor, Delos Aircraft Limited, Artemis (Delos) Limited, Apollo Aircraft Inc., the additional grantors referred to therein, and the Pledgee (as amended from time to time, the “Security Agreement”).

 

Whereas, the Pledgor and Pledgee, inter alia, are party to the Term Loan Credit Agreement dated as of March 6, 2014 (as amended from time to time, the “Credit Agreement”).

 

In connection therewith, the parties hereto agree (which agreement by the Pledgor will be construed as instructions to the Securities Intermediary):

 

1.                                      The Pledgor and Pledgee hereby appoint Deutsche Bank Trust Company Americas as Securities Intermediary in accordance with the terms and conditions set forth herein, and the Securities Intermediary hereby accepts such appointment.

 

2.                                      Pledgor, simultaneously with the execution and delivery of this agreement (this “Agreement”), has caused to be deposited with the Securities Intermediary the Collateral and which Collateral shall be held by the Securities Intermediary upon the terms and conditions hereinafter set forth.  The Securities Intermediary shall have no duty to solicit the Collateral.

 

3.                                      The Securities Intermediary is instructed to register the pledge on its books.  Securities Intermediary shall hold all certificated securities that comprise all or part of the Collateral with proper endorsements to the Securities Intermediary or in blank, or will deliver possession of such certificated securities to the Pledgee in accordance with this Agreement.  The Securities Intermediary acknowledges the security interest granted by the Pledgor in favor of the Pledgee in the Collateral.

 

Exhibit D-1

 

4.                                      The Securities Intermediary represents, warrants and agrees that the Collateral Account (i) has been established and is and will be maintained with the Securities Intermediary on its books and records and (ii) is and will be a “securities account” (as defined in Section 8-501(a) of the UCC) in respect of which the (A) Securities Intermediary is a “securities intermediary” (as defined in Section 8-102(a)(14) of the UCC), (B) the Pledgor is the “entitlement holder” (as defined in Section 8-102(a)(7) of the UCC) of the Collateral Account subject to the “control” (as defined in Section 8-106 of the UCC) of the Pledgee, (C) the “securities intermediary’s jurisdiction” (as defined in Section 8-110(e) of the UCC) of the Securities Intermediary in respect of the Collateral Account is New York and (D) all financial assets carried in the Collateral Account will have been duly credited thereto in compliance with Section 8-501 of the UCC.

 

5.                                      The Securities Intermediary is instructed to deliver to the Pledgee copies of monthly statements on the Collateral Account.

 

6.                                      The Collateral Account will be styled:  “Delos Finance S.à r.l. Collateral Account for Deutsche Bank AG New York Branch”.

 

7.                                      During the term of this Agreement, the Securities Intermediary shall invest and reinvest the Collateral in any of the following investments, in each case at the written direction of an authorized person of the Pledgor:

 

a)                                     Blackrock - 0114 ICS US Dollar Liquidity Fund

 

b)                                     Goldman Sachs US$ Liquid Reserves Fund - Inst. Dist.

 

c)                                      HSBC US Dollar Liquidity Fund,

 

or such other investments as the Pledgor and the Pledgee may agree and confirm in writing to the Securities Intermediary.

 

The Securities Intermediary shall have no obligation to invest or reinvest the Collateral if deposited with the Securities Intermediary after 11:00 a.m. (E.S.T.) on such day of deposit.  Instructions received after 11:00 a.m. (E.S.T.) will be treated as if received on the following business day. The Securities Intermediary shall have no responsibility for any investment losses resulting from the investment, reinvestment or liquidation of the Collateral. Any interest or other income received on such investment and reinvestment of the Collateral shall become part of the Collateral and any losses incurred on such investment and reinvestment of the Collateral shall be debited against the Collateral.  If a selection is not made and a written direction not given to the Securities Intermediary, the Collateral shall remain uninvested with no liability for interest therein.  It is agreed and understood that the entity serving as Securities Intermediary may earn fees associated with the investments outlined above in accordance with the terms of such investments.  Notwithstanding the foregoing, the Securities Intermediary shall have the power to sell or liquidate the foregoing investments whenever the Securities Intermediary shall be required to release all or any portion of the Collateral.  In no event shall the Securities Intermediary be deemed an investment manager or adviser in respect of any selection of investments hereunder.  It is understood and agreed that the Securities Intermediary or its affiliates are permitted to receive additional compensation that could be deemed to be in the Securities Intermediary’s economic self-interest for (1) serving as investment adviser, administrator, shareholder servicing agent, custodian or sub custodian with respect to certain of the investments, (2) using affiliates to effect transactions in certain investments and (3) effecting transactions in investments.

 

Exhibit D-2

 

8.                                      All dividends, interest, gains and other profits with respect to the Collateral Account will be reported in the name and tax identification number of the Pledgor.

 

9.                                      (a)  The Securities Intermediary may not, without the prior written consent of Pledgee, deliver, release or otherwise dispose of the Collateral or any interest therein unless the proceeds thereof are held or reinvested in the Collateral Account as part of the Collateral or applied by Securities Intermediary to the satisfaction of an Unsubordinated Obligation (as defined below) owed to it.  Except for the limitation set forth in the immediately preceding sentence and unless and until the Securities Intermediary receives and has a reasonable period of time to act upon written notice from the Pledgee in substantially the form of Exhibit A hereto which states that Pledgee is exercising exclusive control over the Collateral Account (a “Notice of Exclusive Control”), the Securities Intermediary may comply with any investment orders or instructions from Pledgor concerning the Collateral Account, or as set forth in sub-paragraph 9(b) below.  A Notice of Exclusive Control (Exhibit A) may be delivered by the Pledgee at any time upon the occurrence and continuance of an enforcement event pursuant to the Security Agreement, and shall designate the account, person or other location to which the financial assets in the Collateral Account, and cash dividends, interest, income, earnings and other distributions received with respect thereto, shall thereafter be delivered.  As between Pledgor and Pledgee, Pledgee agrees not to deliver a Notice of Exclusive Control until the occurrence of an enforcement event pursuant to the Security Agreement that is continuing.  For the avoidance of doubt, Securities Intermediary shall have no responsibility for monitoring or determining whether an enforcement event has occurred or is continuing.

 

(b)  The Pledgee shall issue “entitlement orders” to the Securities Intermediary to distribute amounts from the Collateral Account as required pursuant to the provisions of Sections 2.03(c) or 5.16(c) of the Credit Agreement or as otherwise required by the loan documents.

 

(c)  Upon deposit of any insurance proceeds in the Collateral Account, the Pledgee shall instruct the Securities Intermediary to distribute from the Collateral Account the amount of such insurance proceeds in accordance with the instructions of the Collateral Agent (who shall direct that such amounts be distributed as set forth in Schedule V of the Security Agreement).

 

10.                               The Pledgor authorizes the Securities Intermediary, and the Securities Intermediary agrees, to comply with any order or instruction from Pledgee concerning the Collateral Account, including an order or instruction directing sale, transfer (to the extent that the Collateral is transferable), release or redemption of all or part of the Collateral and the remittance of the proceeds thereof, if any, to Pledgee or as otherwise instructed by the Pledgee, without further consent by the Pledgor.  Securities Intermediary shall have no responsibility or liability to Pledgor for complying with any order or instruction, whether oral or written, concerning the Collateral Account, the Collateral, any interest therein, or the proceeds thereof originated by Pledgee and shall have no responsibility to investigate the appropriateness of any such order or instruction, even if Pledgor notifies Securities Intermediary that Pledgee is not legally entitled to originate any such order or instruction.  Securities Intermediary shall have no responsibility or liability to Pledgee for complying with any order or instruction, whether oral or written, concerning the Collateral Account, the Collateral, any interest therein, or the proceeds thereof originated by Pledgor except to the extent such compliance would cause Securities Intermediary to violate (i) paragraph 9 hereof or (ii) written orders or instructions previously received from Pledgee, including without limitation, a Notice of Exclusive Control, but only to the extent Securities Intermediary has had reasonable opportunity to act thereon.  Securities Intermediary shall be able to conclusively rely upon any notice, order or instruction that it reasonably believes to be genuine.  Securities Intermediary shall have no responsibility or liability to Pledgor or Pledgee with respect to the 

 

Exhibit D-3

 

value of the Collateral Account or any of the Collateral.  This Agreement does not create any obligation or duty on the part of Securities Intermediary other than those expressly set forth herein.

 

11.                               For purposes of sending and receiving instructions or directions hereunder, all such instructions or directions shall be, and the Securities Intermediary may conclusively rely upon such instructions or directions, delivered, and executed by representatives of the Pledgor or Pledgee designated on Scheduled A attached hereto and made a part hereof (each such representative, an “Authorized Person”) which such designation shall include specimen signatures of such representatives, as such Schedule A may be updated from time to time.

 

12.                               The Securities Intermediary shall not be subject to, nor required to comply with, any other agreement to which the Pledgor or Pledgee is a party, even though reference thereto may be made herein, or to comply with any direction or instruction (other than those contained herein or delivered in accordance with this Agreement) from the Pledgor or Pledgee or an entity acting on its behalf. The Securities Intermediary shall not be required to expend or risk any of its own funds or otherwise incur any liability, financial or otherwise, in the performance of any of its duties hereunder. The Securities Intermediary shall not be responsible or liable for any special, indirect, punitive or consequential damages or loss of any kind whatsoever, even if advised of it in advance and even if foreseeable.

 

13.                               The Securities Intermediary may consult with legal counsel of its own choosing, at the reasonable expense of the Pledgor and Pledgee, as to any matter relating to this Agreement, and the Securities Intermediary shall not incur any liability in acting in good faith in accordance with any advice from such counsel.

 

14.                               In the event of any dispute between or conflicting claims among the Pledgor and Pledgee  and any other person or entity with respect to any Collateral, the Securities Intermediary shall be entitled, in its sole discretion, to refuse to comply with any and all claims, demands or instructions with respect to such Collateral so long as such dispute or conflict shall continue, and the Securities Intermediary shall not be or become liable in any way to the Pledgor and Pledgee  for failure or refusal to comply with such conflicting claims, demands or instructions.  The Securities Intermediary shall be entitled to refuse to act until, in its sole discretion, either (i) such conflicting or adverse claims or demands shall have been determined by a final order, judgment or decree of a court of competent jurisdiction, which order, judgment or decree is not subject to appeal, or settled by agreement between the conflicting parties as evidenced in a writing satisfactory to the Securities Intermediary or (ii) the Securities Intermediary shall have received security or an indemnity satisfactory to it sufficient to hold it harmless from and against any and all losses which it may incur by reason of so acting. Any court order, judgment or decree shall be accompanied by a legal opinion by counsel for the presenting party, satisfactory to the Securities Intermediary, to the effect that said order, judgment or decree represents a final adjudication of the rights of the parties by a court of competent jurisdiction, and that the time for appeal from such order, judgment or decree has expired without an appeal having been filed with such court. The Securities Intermediary shall act on such court order and legal opinions without further question.  The Securities Intermediary may, in addition, elect, in its sole discretion, to commence an interpleader action or seek other judicial relief or orders as it may deem, in its sole discretion, necessary. The costs and expenses (including reasonable attorneys’ fees and expenses) incurred in connection with such proceeding shall be paid by, and shall be deemed a joint and several obligation of, the Pledgor and Pledgee.

 

Exhibit D-4

 

15.                               Each of Pledgor and Pledgee agrees to indemnify and hold the Securities Intermediary, its directors, officers, employees, and agents harmless from and against any and all claims, causes of action, liabilities, losses, lawsuits, demands, damages, costs and expenses, including without limitation court costs and reasonable attorneys’ fees and expenses and allocated costs of in house counsel, that may arise out of or in connection with this Agreement or any action taken or not taken pursuant hereto, or as a result of any instructions (including entitlement orders) originated by Pledgee with respect to the Collateral Account and the Collateral, including any actions taken in response to a Notice of Exclusive Control, in each case except to the extent caused by Securities Intermediary’s gross negligence or willful misconduct.  This indemnity shall be a continuing obligation of each of Pledgor and Pledgee and its successors and assigns, notwithstanding the earlier of resignation of the Securities Intermediary or termination of this Agreement and shall survive the resignation of the Securities Intermediary or termination of this Agreement.

 

16.                               The Securities Intermediary is instructed that the Collateral Account is to remain a “cash account” within the meaning of Regulation T issued by the Board of Governors of the Federal Reserve System.  The Securities Intermediary represents that it has not received notice regarding any lien, encumbrance or other claim to the Collateral or the Collateral Account from any other person and has not entered into an agreement with any third party to act on such third party’s instructions without further consent of the Pledgor.  The Securities Intermediary further agrees not to enter into any such agreement with any third party.

 

17.                               The Securities Intermediary subordinates to the lien and security interest of the Pledgee any right of setoff, encumbrance, security interest, lien or other claim that it may have against the Collateral, except for any lien, claim, encumbrance or right of set off against the Collateral Account for its fees, expenses and indemnities including but not limited to (i) customary commissions and fees arising from permitted trading activity within the Collateral Account, and (ii) payment owed to Securities Intermediary for open trade commitments for the purchase and/or sale of financial assets in and for the Collateral Account (the “Unsubordinated Obligations”).

 

18                                  To the extent a conflict exists between the terms of this Agreement and any account agreement between the Pledgor and the Securities Intermediary, the terms of this Agreement will control, provided that this Agreement shall not alter or affect any mandatory arbitration provision currently in effect between Securities Intermediary and Pledgor.

 

19.                               The terms of this Agreement may not be modified except by a writing signed by all parties hereto.

 

20.                               Securities Intermediary reserves the right, unilaterally, to terminate this Agreement, such termination to be effective thirty (30) days after written notice thereof is given to Pledgor and Pledgee.  At the end of such thirty (30) day period, Securities Intermediary will deliver all assets held in the Collateral Account to Pledgee unless Pledgee and Pledgor deliver joint instructions to Securities Intermediary during such thirty (30) day period to deliver or transfer the assets held in the Collateral Account to another party or securities intermediary.  In the event that it is not possible or practicable, in the judgment of the Securities Intermediary, to transfer the Collateral or deliver the Collateral to any other party, the Securities Intermediary will sell such assets and deliver the proceeds according to the instructions provided by the Pledgee or the joint instructions given by the Pledgee and Pledgor.  Nothing set forth in this provision shall be deemed to limit the right of Pledgee to issue orders or instructions to the Securities Intermediary pursuant to paragraph 9 hereof.  Pledgee may terminate this Agreement by giving notice to Securities Intermediary and Pledgor.  Termination shall not affect any of the rights or liabilities of the parties hereto incurred before the date of termination.

 

Exhibit D-5

 

21.                               This Agreement sets forth the entire agreement of the parties with respect to the subject matter hereof (provided that this Agreement and the Loan Documents, as defined in the Credit Agreement, set forth the entire agreement of the Pledgor and the Pledgee with respect to the subject matter hereof), and, subject to paragraph 18 above, supersedes any prior agreement and contemporaneous oral agreements of the parties concerning its subject matter.

 

22.                               Except as otherwise expressly provided herein, any notice, order, instruction, request or other communication required or permitted to be given under this Agreement shall be in writing and may be delivered in person, sent by facsimile or other electronic means if electronic confirmation of error free receipt is received, or sent by United States mail, postage prepaid, addressed to the party at the address set forth below.

 

23.                               The Securities Intermediary will be excused from failing to act or delay in acting, and no such failure or delay shall constitute a breach of this Agreement or otherwise give rise to any liability of the Securities Intermediary, if (i) such failure or delay is caused by circumstances beyond the reasonable control of the Securities Intermediary, including without limitation legal constraint, emergency conditions, action or inaction of governmental, civil or military authority, terrorism, fire, strike, lockout or other labor dispute, war, riot, theft, flood, earthquake or other natural disaster, breakdown of public or private or common carrier communication or transmission facilities, equipment failure, or act, negligence or default of Pledgor or (ii) such failure or delay resulted from Securities Intermediary’s reasonable belief that the action would have violated any guideline, rule or regulation of any governmental authority.

 

24.                               Pledgor agrees to pay Securities Intermediary, upon receipt of Securities Intermediary’s invoice, all reasonable fees, costs, expenses (including reasonable attorneys’ fees) incurred in the preparation and administration of this Agreement (including any amendments hereto or instruments or agreements required hereunder).  Pledgor agrees to pay Securities Intermediary, upon receipt of Securities Intermediary’s invoice, all reasonable costs, expenses and attorneys’ fees incurred by Securities Intermediary in connection with the enforcement of this Agreement or any instrument or agreement required hereunder, including without limitation any reasonable costs, expenses, and fees arising out of the resolution of any conflict, dispute, motion regarding entitlement to rights or rights of action, or other action to enforce Securities Intermediary’s rights hereunder in a case arising under Title 11, United States Code.  This paragraph 24 shall survive termination of this Agreement.

 

25.                               Notwithstanding any of the other provisions of this Agreement, in the event of the commencement of a case pursuant to Title 11, United States Code, filed by or against Pledgor, or in the event of the commencement of any similar case under then applicable federal or state law providing for the relief of debtors or the protection of creditors by or against Pledgor, Securities Intermediary may act as Securities Intermediary deems necessary to comply with all applicable provisions of governing statutes and Pledgor shall not assert any claim against Securities Intermediary for so doing.

 

26.                               If any term or provision of this Agreement shall be invalid or unenforceable, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than those to which it is held invalid or unenforceable, shall be construed in all respects as if such invalid or unenforceable term or provision were omitted.

 

27.                               This Agreement may be executed in counterparts, each of which shall be an original, and all of which shall constitute one and the same agreement.

 

Exhibit D-6

 

28.                               If any party to this Agreement is not a natural person, the person executing this Agreement on behalf of such party hereby represents that he or she has the proper authority to execute this Agreement on behalf of such party.

 

29.                               This Agreement shall be governed and construed in accordance with the law of the State of New York excluding choice of law principles that would require application of the laws of a jurisdiction other than the State of New York.

 

30.                               The parties acknowledge that in order to help the United States government fight the funding of terrorism and money laundering activities, pursuant to Federal regulations that became effective on October 1, 2003 (Section 326 of the USA PATRIOT Act) all financial institutions are required to obtain, verify, record and update information that identifies each person establishing a relationship or opening an account.  The parties to this Agreement agree that they will provide to the Securities Intermediary such information as it may request, from time to time, in order for the Securities Intermediary to satisfy the requirements of the USA PATRIOT Act, including but not limited to the name, address, tax identification number and other information that will allow it to identify the individual or entity who is establishing the relationship or opening the account and may also ask for formation documents such as articles of incorporation or other identifying documents to be provided.

 

*                                         *                                         *                                         *                                         *                                         *

 

Exhibit D-7

 

IN WITNESS WHEREOF, the Pledgor and the Pledgee have agreed to the terms of this Agreement as of the date indicated above.

 

PLEDGOR:

	
 
    	
 
    
	
DELOS   FINANCE S.À R.L.
    	
 
    
	
Duly represented by:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Telephone   No.:
    	
 
    	
 
    
	
 
    	
 
    
				

Address:

 

c/o International Lease Finance Corporation
 10250 Constellation Blvd., Suite 3400
 Los Angeles, CA 90067
 Attention: Treasurer with a copy to the General Counsel
 Facsimile No. (310) 788-1990

 

Date:                  March       , 2014

 

Account Control Agreement Supplement Signature Pages

 

 

PLEDGEE:

DEUTSCHE BANK AG NEW YORK BRANCH, as Collateral Agent

 

	
By:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    
	
 
    	
 
    	
 
    

 

Telephone No.:

 

Address:

 

Deutsche Bank AG New York Branch
 60 Wall Street
 New York, NY 10005
 Electronic mail:  Agency.Transactions@db.com
 Facsimile No. (732) 380-3355

 

Date:                  March       , 2014

 

Account Control Agreement Supplement Signature Pages

 

 

Acknowledged and Agreed to:

 

SECURITIES INTERMEDIARY

 

DEUTSCHE BANK TRUST COMPANY
 AMERICAS

 

By:                            Deutsche Bank National Trust Company

 

	
By:
    	
 
    	
 
    	
 
    	
By:
    	
 
    
	
Name:
    	
 
    	
 
    	
 
    	
Name:
    	
 
    
	
Title:
    	
 
    	
 
    	
 
    	
Title:
    	
 
    
	
Date:
    	
 
    	
, 2014
    	
 
    	
Date:
    	
 
    
							

 

Address:

 

Deutsche Bank Trust Company Americas
 60 Wall Street, 16th Floor
 Mail Stop:  NYC60-1630
 New York, New York 10005
 Attention:  Escrow Team — Delos Finance S.a.r.l .
 Facsimile:  (732) 578-4593

 

Date:                  March       , 2014

 

Account Control Agreement Supplement Signature Pages

 

 

Schedule A

 

Authorized Persons

 

Pledgor Authorized Persons

 

	
Name
    	
 
    	
Title
    	
 
    	
Specimen Signature
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fred   Cromer
    	
 
    	
Authorized   Signatory
    	
 
    	
 
    
	
Elias   Habayeb
    	
 
    	
Authorized   Signatory
    	
 
    	
 
    
	
Pam   Hendry
    	
 
    	
Manager   and Authorized Signatory
    	
 
    	
 
    
	
Drew   Bauer
    	
 
    	
Authorized   Signatory
    	
 
    	
 
    

 

Pledgor Specimen Signature Page

 

 

Pledgee Authorized Persons

 

	
Name
    	
 
    	
Title
    	
 
    	
Specimen Signature
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    

 

 

Exhibit A

 

[Letterhead of the Pledgee]

 

[Date]

 

A.                                    BY FACSIMILE TRANSMISSION

 

((732) 578-4593) AND CERTIFIED MAIL

 

Deutsche Bank Trust Company Americas
 60 Wall Street, 16th Floor
 Mail Stop:  NYC60-1630
 New York, New York 10005
 Attention:  Escrow Team — Delos Finance S.a.r.l .
 Facsimile:  (732) 578-4593

 

Re: Delos Finance S.à r.l.
 Account No. S94009.1

 

B.                                    NOTICE OF EXCLUSIVE CONTROL

 

Ladies and Gentlemen:

 

As referenced in the Collateral Account Control Agreement, dated as of March 6, 2014, among Delos Finance S.à r.l., as Pledgor, Deutsche Bank AG New York Branch, as Collateral Agent for the Secured Parties, as Pledgee, and Deutsche Bank Trust Company Americas, as Securities Intermediary, we hereby give you notice of our exclusive control over securities account number S94009.1 (the “Collateral Account”) and all financial assets credited thereto.  You are hereby instructed not to accept any direction, instruction or entitlement order with respect to the Collateral Account or the financial assets credited thereto from any person other than the undersigned.

 

You are hereby instructed to [deliver][invest] the financial assets in the Collateral Account and cash dividends, interest, income, earning, and other distributions received with respect thereto, as follows:

 

[                                                        ]

 

	
 
    	
Very   truly yours,
    
	
 
    	
 
    
	
 
    	
Deutsche   Bank AG New York Branch, 
    
	
 
    	
as   Collateral Agent
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

cc:                                Delos Finance S.à r.l.

 

Exhibit A-1

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