Document:

Exhibit 10.4

 

SECOND AMENDMENT TO LEASE

 

THIS SECOND AMENDMENT TO LEASE (this “Amendment”) is entered into as of this 24 day of May, 2013, by and between BMR-ROGERS STREET LLC, a Delaware limited liability company (“Landlord”), and MOMENTA PHARMACEUTICALS, INC., a Delaware corporation (“Tenant”).

 

RECITALS

 

A.            WHEREAS, Landlord and Tenant entered into that certain Lease dated as of February 5, 2013, as amended by that certain First Amendment to Lease dated as of March 21, 2013 (collectively, and as the same may have been heretofore further amended, amended and restated, supplemented or modified from time to time, the “Lease”), whereby Tenant leases certain premises (the “Premises”) from Landlord in the building at 320 Bent Street, Cambridge, Massachusetts (the “Building”);

 

B.            WHEREAS, Landlord and Tenant desire to amend the maintenance responsibilities set forth in the Lease; and

 

C.            WHEREAS, Landlord and Tenant desire to modify and amend the Lease only in the respects and on the conditions hereinafter stated.

 

AGREEMENT

 

NOW, THEREFORE, Landlord and Tenant, in consideration of the mutual promises contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, agree as follows:

 

1.             Definitions.  For purposes of this Amendment, capitalized terms shall have the meanings ascribed to them in the Lease unless otherwise defined herein.  The Lease, as amended by this Amendment, is referred to herein as the “Amended Lease.”

 

2.             Maintenance Matrix. The maintenance matrix setting forth Tenant’s and Landlord’s responsibilities for heating, ventilating and air conditioning systems attached to the Lease as Exhibit H is hereby deleted in its entirety and replaced with the maintenance matrix attached hereto as New Exhibit H, which maintenance matrix shall be deemed to be and to replace Exhibit H to the Lease, as hereby amended, for all purposes.

 

3.             Repairs and Maintenance.  Section 18.2 of the Lease is hereby deleted in its entirety and replaced with the following:

 

“18.2      Except for services of Landlord, if any, required by Section 18.1, Tenant shall at Tenant’s sole cost and expense (a) be responsible for access and security to the Premises (rather than the Bent Building) and (b) maintain, repair,  and keep the Premises and every part thereof in good condition and repair, damage thereto from ordinary wear and tear excepted, including (i) those items that are identified in the column for “Tenant Maintenance” in Exhibit H hereto;

 

 

(ii) the central uninterruptible power supply system, including the power distribution units (“PDUs”) and all other related system components identified on Exhibit H attached hereto (collectively, the “UPS System”); (iii) the Acid Neutralization Tank; and (iv) all laboratory systems, including the reverse osmosis, de-ionized and other treated water systems, vacuum, compressed air and laboratory gas.  Tenant, at its sole cost and expense and outside of the TI Allowance, will disconnect and “make safe” the two (2) PDUs located on the third (3rd) floor of the Building, pull back the associated wiring to the junction box on the second (2nd) floor and remove such two (2) disconnected PDUs from the third (3rd) floor. Tenant shall, upon the expiration or sooner termination of the Term, surrender the Premises (including the UPS System) to Landlord in as good a condition as when received, ordinary wear and tear, damage by casualty or eminent domain, damage caused by the negligence or willful misconduct of Landlord, its agents, contractors, or employees; and damage resulting from the failure of Landlord to perform its obligations under this Lease in each case excepted and, subject to the foregoing, in substantially the same condition as existed on the Term Commencement Date; and shall, at Landlord’s request and Tenant’s sole cost and expense, remove all telephone and data systems, wiring and equipment from the Premises (but only to the extent installed by Tenant or Tenant’s employees, agents, contractors or invitees (each, a “Tenant Party”)), and repair any damage to the Premises caused thereby. Landlord shall have no obligation to alter, remodel, improve, repair, decorate or paint the Premises or any part thereof.”

 

4.             Broker. Tenant represents and warrants that it has not dealt with any broker or agent in the negotiation for or the obtaining of this Amendment, other than CB Richard Ellis (“Broker”), and agrees to indemnify, defend and hold Landlord harmless from any and all cost or liability for compensation claimed by any such broker or agent, other than Broker, employed or engaged by it or claiming to have been employed or engaged by it.  Broker is not entitled to a leasing commission in connection with the making of this Amendment.

 

5.             No Default.  Each of Landlord and Tenant represents, warrants and covenants that, to the best of the representing party’s knowledge, Landlord and Tenant are not in default of any of their respective obligations under the Lease and no event has occurred that, with the passage of time or the giving of notice (or both) would constitute a default by either Landlord or Tenant thereunder.

 

6.             Effect of Amendment.  Except as modified by this Amendment, the Lease and all the covenants, agreements, terms, provisions and conditions thereof shall remain in full force and effect and are hereby ratified and affirmed.  The covenants, agreements, terms, provisions and conditions contained in this Amendment shall bind and inure to the benefit of the parties hereto and their respective successors and, except as otherwise provided in the Lease, their respective assigns.  In the event of any conflict between the terms contained in this Amendment and the Lease, the terms herein contained shall supersede and control the obligations and liabilities of the parties.  From and after the date hereof, the term “Lease” as used in the Lease shall mean the Lease, as modified by this Amendment.

 

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7.             Miscellaneous.  This Amendment becomes effective only upon execution and delivery hereof by Landlord and Tenant. The captions of the paragraphs and subparagraphs in this Amendment are inserted and included solely for convenience and shall not be considered or given any effect in construing the provisions hereof.  All exhibits hereto are incorporated herein by reference.  Submission of this instrument for examination or signature by Tenant does not constitute a reservation of or option for a lease, and shall not be effective as a lease, lease amendment or otherwise until execution by and delivery to both Landlord and Tenant.

 

8.             Counterparts.  This Amendment may be executed in one or more counterparts, each of which, when taken together, shall constitute one and the same document.

 

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

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IN WITNESS WHEREOF, Landlord and Tenant have hereunto set their hands as of the date and year first above written, and acknowledge that they possess the requisite authority to enter into this transaction and to execute this Amendment.

 

	
LANDLORD:
    	
 
    
	
 
    	
 
    
	
BMR-ROGERS STREET LLC,
    	
 
    
	
a   Delaware limited liability company
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Kevin M. Simonsen
    	
 
    
	
Name:
    	
Kevin   M. Simonsen
    	
 
    
	
Title:
    	
VP,   Real Estate Legal
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
TENANT:
    	
 
    
	
 
    	
 
    
	
MOMENTA PHARMACEUTICALS, INC.,
    	
 
    
	
a   Delaware corporation
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Richard P. Shea
    	
 
    
	
Name:
    	
Richard   P. Shea
    	
 
    
	
Title:
    	
Sr.   VP & CFO
    	
 
    

 

 

NEW EXHIBIT H

 

MAINTENANCE MATRIX

 

See attached.

 

 

320 BENT

The below CAM pool is the pool used to account for all expenses

 

PREMISES= Includes all costs associated within the TENANT space

BASE BUILDING  = Includes all cost associated within the occupied building.

 

	
MOMENTA MATRIX CAM POOL
    	
 
    	
 
    	
 
    	
 
    
	
Account
    	
 
    	
Landlord Maintenance
    	
 
    	
Tenant Maintenance
    
	
Utilities:
    	
 
    	
 
    	
 
    	
 
    
	
Building   Electricity
    	
 
    	
x
    	
 
    	
 
    
	
Premises   Electricity
    	
 
    	
 
    	
 
    	
x
    
	
Building   Gas
    	
 
    	
x
    	
 
    	
 
    
	
Base   Building Plumbing System
    	
 
    	
x
    	
 
    	
 
    
	
Premises   Plumbing System
    	
 
    	
 
    	
 
    	
x
    
	
Base   Building HVAC Systems
    	
 
    	
x
    	
 
    	
 
    
	
Premises   Gas
    	
 
    	
 
    	
 
    	
x
    
	
Building   Water/Sewer
    	
 
    	
x
    	
 
    	
 
    
	
Premises   Water/Sewer
    	
 
    	
 
    	
 
    	
x
    
	
Data/telecom   cabling
    	
 
    	
 
    	
 
    	
x
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Maintenance & Repairs
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Premises   Bulbs/Ballasts
    	
 
    	
 
    	
 
    	
x
    
	
Premises   Lighting Repairs
    	
 
    	
 
    	
 
    	
x
    
	
Premises   Electrical Supplies
    	
 
    	
 
    	
 
    	
x
    
	
Premises   Electrical Repairs
    	
 
    	
 
    	
 
    	
x
    
	
Premises   Carpet/Floor Repairs
    	
 
    	
 
    	
 
    	
x
    
	
Premises   Ceiling Repairs
    	
 
    	
 
    	
 
    	
x
    
	
Premises   Computer Service
    	
 
    	
 
    	
 
    	
x
    
	
Base   Building Electrical Supplies
    	
 
    	
x
    	
 
    	
 
    
	
Base   Building Electrical Repairs
    	
 
    	
x
    	
 
    	
 
    
	
Base   Building Environmental Repairs
    	
 
    	
x
    	
 
    	
 
    
	
Base   Building Equipment Maintenance
    	
 
    	
x
    	
 
    	
 
    
	
Premises   Equipment Rental
    	
 
    	
 
    	
 
    	
x
    
	
Base   Building Equipment Rental
    	
 
    	
x
    	
 
    	
 
    
	
Exterior   Repairs
    	
 
    	
x
    	
 
    	
 
    
	
Premises   Fire Extinguisher
    	
 
    	
 
    	
 
    	
x
    
	
Base   Building Fire Extinguiishers
    	
 
    	
x
    	
 
    	
 
    
	
Base   Building General Repairs
    	
 
    	
x
    	
 
    	
 
    
	
Base   Building Shared Generator #3 (See Attachment)
    	
 
    	
x
    	
 
    	
 
    
	
Tenant   Dedicated Generator #2 (See Attachment)
    	
 
    	
 
    	
 
    	
x
    
	
Base   Building loading dock/overhead doors
    	
 
    	
x
    	
 
    	
 
    
	
Base   Building Glass Replacement
    	
 
    	
x
    	
 
    	
 
    
	
Premises   Glass replacement
    	
 
    	
 
    	
 
    	
x
    
	
Base   Building Key and Keycard Stock
    	
 
    	
x
    	
 
    	
 
    
	
Premises   key and Keycard Access
    	
 
    	
 
    	
 
    	
x
    
	
Inspection   Fees related to Premises or items listed under Tenant Maintenance
    	
 
    	
 
    	
 
    	
x
    
	
Locksmith   for the Premises
    	
 
    	
 
    	
 
    	
x
    
	
Premises   Maintenance Supplies
    	
 
    	
 
    	
 
    	
x
    
	
Base   Building Maintenance Supplies
    	
 
    	
x
    	
 
    	
 
    
	
Premises   Painting
    	
 
    	
 
    	
 
    	
x
    
	
Base   Building Pest Control
    	
 
    	
x
    	
 
    	
 
    
	
Premises   Pest Control
    	
 
    	
 
    	
 
    	
x
    
	
Premises   Plumbing Repairs
    	
 
    	
 
    	
 
    	
x
    
	
Premises   Plumbing Supplies
    	
 
    	
 
    	
 
    	
x
    
	
Acid   Neutralization Tank / MWRA
    	
 
    	
 
    	
 
    	
x
    
	
Premises   water heaters
    	
 
    	
 
    	
 
    	
x
    
	
Premises   Reverse Osmosis System
    	
 
    	
 
    	
 
    	
x
    
	
Premises   Vivarium
    	
 
    	
 
    	
 
    	
x
    
	
Tenant   dedicated back-up Generator to be used in the Vivarium
    	
 
    	
 
    	
 
    	
x
    
	
Tenant   Glass wash/Autoclave
    	
 
    	
 
    	
 
    	
x
    
	
Base   Building Sign Installation / Repairs
    	
 
    	
x
    	
 
    	
 
    
	
Premises   Sign Repairs
    	
 
    	
 
    	
 
    	
x
    
	
Base   Building Uniforms
    	
 
    	
x
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Premises Janitorial:
    	
 
    	
 
    	
 
    	
 
    
	
Contracted   Service
    	
 
    	
 
    	
 
    	
x
    
	
Power   Washing
    	
 
    	
 
    	
 
    	
x
    
	
Window   Washing
    	
 
    	
 
    	
 
    	
x
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
HVAC
    	
 
    	
 
    	
 
    	
 
    
	
Base   Building Repairs (includes equipment on roof and within Premises if such   equipment serves space other than Premises in addition to serving Premises)
    	
 
    	
x
    	
 
    	
 
    
	
Base   Building Maintenance (includes equipment on roof and within Premises if such   equipment serves space other than Premises in addition to serving Premises)
    	
 
    	
x
    	
 
    	
 
    
	
Tenant   area heating system located within the Premises and exclusively serving the   Premises
    	
 
    	
 
    	
 
    	
x
    
	
Tenant   area cooling system located within the Premises and exclusively serving the   Premises
    	
 
    	
 
    	
 
    	
x
    
	
Tenant   area exhaust system located within the Premises and exclusively serving the   Premises
    	
 
    	
 
    	
 
    	
x
    
	
Automatic   temperature control system located within the Premises and exclusively serving   the Premises
    	
 
    	
 
    	
 
    	
x
    
	
Tenant   general exhaust and lab exhaust fans, duct and risers
    	
 
    	
 
    	
 
    	
x
    
	
Tenant   supply and return air duct to AHUs in tenant area
    	
 
    	
 
    	
 
    	
x
    
	
Supplemental   cooling systems dedicated to Tenant
    	
 
    	
 
    	
 
    	
x
    
	
Tenant   compressed air (If applicable)
    	
 
    	
 
    	
 
    	
x
    
	
Tenant   central vacuum system (If applicable)
    	
 
    	
 
    	
 
    	
x
    
	
Tenant   fume hoods
    	
 
    	
 
    	
 
    	
x
    

 

 

Premises Central Uninterruptible Power Supply (UPS)

 

	
UPS   Control cabinets A, B, C and D located in basement, room number B30   (including static switches A, B, C, and D)
    	
 
    	
 
    	
 
    	
x
    
	
All   downstream equipment and accessories, including all power distribution units   (PDU), transformers, batteries, distribution panels and related wiring and   piping
    	
 
    	
 
    	
 
    	
x
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Landscape & Grounds  Maintenance:
    	
 
    	
 
    	
 
    	
 
    
	
Base   Building Contracted Service
    	
 
    	
x
    	
 
    	
 
    
	
Interior   of Premises Landscaping
    	
 
    	
 
    	
 
    	
x
    
	
Landscaping   Repairs
    	
 
    	
x
    	
 
    	
 
    
	
Parking   Lot Repairs
    	
 
    	
x
    	
 
    	
 
    
	
Tenant   Shuttle
    	
 
    	
 
    	
 
    	
x
    
	
Premises   Trash Removal
    	
 
    	
x
    	
 
    	
 
    
	
Premises   Recycling
    	
 
    	
 
    	
 
    	
x
    
	
Vehicle   Repairs & Maintenance
    	
 
    	
x
    	
 
    	
 
    
	
Lot   and Landscape - Other
    	
 
    	
x
    	
 
    	
 
    
	
Snow   Removal
    	
 
    	
x
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Security & Life  Safety:
    	
 
    	
 
    	
 
    	
 
    
	
Base   Building Contracted Security Service
    	
 
    	
x
    	
 
    	
 
    
	
Premises   Contracted Security Services
    	
 
    	
 
    	
 
    	
x
    
	
Card   access system for building entrances
    	
 
    	
x
    	
 
    	
 
    
	
Card   access system for Tenant entrances and interior doors
    	
 
    	
 
    	
 
    	
x
    
	
Base   Building Security Supplies
    	
 
    	
x
    	
 
    	
 
    
	
Base   Building Life Safety Inspections
    	
 
    	
x
    	
 
    	
 
    
	
Base   Building Fire & Life Safety - Repairs
    	
 
    	
x
    	
 
    	
 
    
	
Premises   Fire & Life Safety - Repairs
    	
 
    	
 
    	
 
    	
x
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Property Administrative:
    	
 
    	
 
    	
 
    	
 
    
	
Cell   Phones and Pagers
    	
 
    	
x
    	
 
    	
 
    
	
Consultant   Fees
    	
 
    	
x
    	
 
    	
 
    
	
Computer   Supplies & Repairs
    	
 
    	
x
    	
 
    	
 
    
	
Legal   Fees
    	
 
    	
x
    	
 
    	
 
    
	
Licenses &   permits
    	
 
    	
x
    	
 
    	
 
    
	
Office   General
    	
 
    	
x
    	
 
    	
 
    
	
Office   Rent
    	
 
    	
x
    	
 
    	
 
    
	
Office   Supplies
    	
 
    	
x
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Salaries & Related:
    	
 
    	
 
    	
 
    	
 
    
	
Administrative   Salaries
    	
 
    	
x
    	
 
    	
 
    
	
Administrative   P/R Taxes & Related
    	
 
    	
x
    	
 
    	
 
    
	
Maintenance   Salaries
    	
 
    	
x
    	
 
    	
 
    
	
Maintenance   P/R Taxes & Related
    	
 
    	
x
    	
 
    	
 
    
	
Temporary   Help
    	
 
    	
x
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Management:
    	
 
    	
 
    	
 
    	
 
    
	
Management   Fee
    	
 
    	
x
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Taxes:
    	
 
    	
 
    	
 
    	
 
    
	
Real   Property & School
    	
 
    	
x
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Insurance:
    	
 
    	
 
    	
 
    	
 
    
	
Boiler &   Machinery Insurance
    	
 
    	
x
    	
 
    	
 
    
	
DIC   Insurance
    	
 
    	
x
    	
 
    	
 
    
	
Liability   Insurance
    	
 
    	
x
    	
 
    	
 
    
	
Property   Insurance
    	
 
    	
x
    	
 
    	
 
    
	
Environmental   Insurance
    	
 
    	
xExhibit 10.24

 

AMENDMENT NO. 2

 

To

 

AMENDED AND RESTATED CREDIT AGREEMENT

 

This Amendment No. 2 to Amended and Restated Credit Agreement (the “Agreement”), dated as of June 18, 2013, is entered into by and among WILLIS LEASE FINANCE CORPORATION, a Delaware corporation (the “Borrower”), UNION BANK, N.A., together with the Lenders party hereto (the “Consenting Lenders”) with reference to the following facts.

 

RECITALS

 

A.            Pursuant to the terms of that certain Amended and Restated Credit Agreement dated as of November 18, 2011 by and between Borrower, Lenders, Agent, as administrative agent, joint lead arranger and sole bookrunner, Wells Fargo Bank, National Association, as syndication agent, Wells Fargo Securities, LLC, as joint lead arranger and U.S. Bank National Association, as documentation agent and joint lead arranger, as amended by that certain Amendment No. 1, Limited Waiver and Consent to Amended and Restated Credit Agreement and Amendment No. 1 to Security Agreement dated as of September 13, 2012 (as amended, the “Credit Agreement”), Lenders made available to Borrower a revolving credit facility in the aggregate principal amount not to exceed Four Hundred Thirty Million Dollars ($430,000,000.00) (the “ Loan”), subject to Sections 2.10 and 2.19 of the Credit Agreement.  Except as otherwise specifically provided herein, all capitalized terms used and not defined herein shall have the meanings set forth in the Credit Agreement.

 

B.            The Loan is evidenced by (i) that certain Amended and Restated Revolving Note dated November 18, 2011, made by Borrower and payable to the order of Union Bank, N.A. in the maximum principal amount of $75,000,000.00; (ii) that certain Amended and Restated Revolving Note dated November 18, 2011, made by Borrower and payable to the order of City National Bank in the maximum principal amount of $35,000,000.00; (iii) that certain Revolving Note dated November 18, 2011, made by Borrower and payable to the order of Everbank Commercial Finance, Inc. in the maximum principal amount of $25,000,000.00;  (iv) that certain Amended and Restated Revolving Note dated November 18, 2011, made by Borrower and payable to the order of The Huntington National Bank in the maximum principal amount of $35,000,000.00; (v) that certain Amended and Restated Revolving Note dated November 18, 2011, made by Borrower and payable to the order of Umpqua Bank in the maximum principal amount of $25,000,000.00;  (vi) that certain Amended and Restated Revolving Note dated November 18, 2011, made by Borrower and payable to the order of U.S. Bank National Association in the maximum principal amount of $75,000,000.00; (vii) that certain Amended and Restated Revolving Note dated November 18, 2011, made by Borrower and payable to the order of Wells Fargo Bank, National Association in the maximum principal amount of $75,000,000.00; (viii) that certain Promissory Note dated September 7, 2012, made by Borrower and payable to the order of Crédit Agricole Corporate and Investment Bank in the principal amount of $35,000,000.00; (ix) that certain Promissory Note dated September 7, 2012, made by Borrower and payable to the order of Credit Industriel et Commercial Bank in the principal amount of $25,000,000.00; (x) that certain Promissory Note dated September 7, 2012, made by Borrower and payable to the order of Bank of America N.A. in the principal amount of $25,000,000.00; and (xi) that certain Amended and Restated Commercial Promissory Note dated November 18, 2011 made by Borrower and payable to the order of Union Bank, N.A. in the maximum principal amount of $15,000,000.00 (collectively, the “Notes”, and the principal amounts of such Notes being the “Existing Revolving Commitment” of the applicable Lender).

 

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C.            The Notes are secured by the Collateral pursuant to, among other things, the Security Agreement, the Mortgage and Security Agreement, the Custodial Agreement, the Stock Pledge Agreement, each Owner Trustee Mortgage and Security Agreement, each Beneficial Interest Pledge Agreement, each Subsidiary Guaranty, each Owner Trustee Guaranty, each Leasing Subsidiary Security Assignment, UCC financing statements and such other agreements, and all amendments thereto, instruments and documents (collectively, the “Collateral Documents”).

 

D.            The Credit Agreement, the Notes, the Collateral Documents, together with any other documents executed by or among the parties in connection with the Loan, and any and all amendments and modifications thereto, and together with all financing statements and other documents or instruments filed or recorded in connection with the Collateral and/or the Loan are referred to collectively as the “Loan Documents”.  This Agreement is a Loan Document.

 

E.            As of the date hereof, the outstanding principal balance, exclusive of accrued interest and other expenses, under the Notes is $343,000,000.00.

 

F.             Borrower has requested several modifications to the Credit Agreement with respect to certain covenants and definitions and is exercising its option to increase the Revolving Commitment pursuant to Section 2.19 of the Credit Agreement.  The Consenting Lenders, constituting the “Requisite Lenders” for purposes of Section 12.16 of the Credit Agreement, are willing to modify the terms of the Loan Documents as more particularly described below and subject to all terms and conditions set forth herein, after which such amendments will be binding upon all the parties to the Credit Agreement in accordance with the last sentence of Section 12.16 of the Credit Agreement.

 

NOW THEREFORE, in consideration of the mutual covenants and agreements contained herein, the parties hereto agree and covenant as follows:

 

AGREEMENT

 

1.             Recitals.  The recitals set forth above are true, accurate and correct.

 

2.             Reaffirmation of the Loan.  Borrower reaffirms all of its obligations under all of the Notes and all other Loan Documents, in each case either as originally executed or as the same may from time to time be supplemented, modified, amended, restated, extended or supplanted.  Borrower acknowledges that it has no claims, offsets or defenses with respect to the payment of sums due under the Notes or any other Loan Document.

 

3.             Modification of Credit Agreement.  The Credit Agreement is hereby modified as follows:

 

2

 

3.1          Definition of Indebtedness.  Section 1.1 of the Credit Agreement is hereby amended by deleting the definition of “Indebtedness” and replacing it with the following:

 

“‘Indebtedness’ means as to any Person at any time (without duplication) and, for the Borrower, determined on a consolidated basis: (a) all indebtedness for borrowed money or for the deferred purchase price of property or services (including reimbursement and all other obligations with respect to surety bonds, letters of credit (including Letters of Credit) and bankers’ acceptances, whether or not matured); (b) all obligations evidenced by notes, bonds, debentures or similar instruments; (c) all indebtedness created or arising under any conditional sale or other title retention agreements with respect to property acquired by Borrower (even though the rights and remedies of the seller or lender under such agreement in the event of default are limited to repossession or sale of such property); (d) all Capital Lease Obligations; (e) all Guaranteed Indebtedness; (f) all Indebtedness referred to in clauses (a), (b), (c), (d) or (e) above secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien upon or in property (including accounts and contract rights) owned by such Person, even though such Person has not assumed or become liable for the payment of such Indebtedness; (g) with respect to Borrower, the Obligations; (h) all liabilities under Title IV of ERISA; (i) the net present value of the non-cancelable payments owed under any Lease which is qualified as an operating lease in accordance with GAAP for engines, aircraft and aircraft and engine parts, using a 10% discount rate; and (j) all obligations with respect to maintenance reserves for engines not owned by WEST at a fixed amount of $10,000,000; provided, however, that the term Indebtedness shall not include ordinary course trade accounts payable.”

 

3.2          Leverage Ratio.  Section 6.14.2 of the Credit Agreement is hereby deleted in its entirety and replaced with the following:

 

“‘Leverage Ratio.  A ratio of Total Debt on that date to Tangible Net Worth of not more than 4.75 : 1.00.”

 

3.3          Minimum Ratio of EBITDA to Consolidated Interest.  Section 6.14.3 of the Credit Agreement is hereby deleted in its entirety and replaced with the following:

 

“A ratio of EBITDA to Consolidated Interest of at least 2.50 : 1.00.  As used herein, “EBITDA” means, with respect to any fiscal period, the sum of (a) Net Income for that period, plus (b) any extraordinary loss reflected in such Net Income, minus (c) any extraordinary gain reflected in such Net Income, plus (d) Interest Expense of Borrower and its Subsidiaries for that period, including net payment obligations pursuant to Interest Rate Protection Agreements plus (e) the aggregate amount of federal and state taxes on or measured by income of Borrower and its Subsidiaries for that period (whether or not payable during that period), minus (f) the aggregate amount of federal and state credits against taxes on or measured by income of such Borrower and its Subsidiaries for that period (whether or not usable during that period), plus (g) depreciation, amortization and Engine write-downs of Borrower and its Subsidiaries for that period, in each case as determined in accordance with GAAP, consistently applied, plus (h) any non-cash charges for preferred stock redemption costs occurring in 2012; provided that “EBITDA” shall not include any gains or losses resulting from changes in the fair market value of derivative instruments (within the meaning of SFAS 133) .  As used herein, “Consolidated Interest” shall mean with respect to Borrower and its Subsidiaries as of the last day of any fiscal period, the sum of all interest, fees, charges and related expenses (in each case as such expenses are calculated according to GAAP) paid or payable (without duplication) for that fiscal period to a lender in connection with borrowed money (including net payment obligations pursuant to Interest Rate Protection Agreements and any obligations for fees, charges and related expenses payable to the issuer of any letter of credit) or the deferred purchase price of assets that are considered “interest expense” under GAAP; provided that “Consolidated Interest” shall not include any gains or losses resulting from changes in the fair market value of derivative instruments (within the meaning of SFAS 133).”

 

3

 

3.4          Share Repurchases.  Section 7.14 of the Credit Agreement is hereby deleted in its entirety and replaced with the following:

 

“Distributions. Purchase, redeem, retire or otherwise acquire, directly or indirectly, or make any sinking fund payments with respect to, any shares of its Stock now or hereafter outstanding (each and collectively a “Distribution”); provided that the Borrower may (i) declare and pay dividends if no Default or Event of Default exists prior to or after giving effect to such declaration or payment, or (ii) repurchase up to $20,000,000.00 of its issued and outstanding shares of common in each fiscal year; provided no Default or Event of Default exists prior to, or would result after, such repurchase; and provided further, that no repurchase of common Stock shall be made if the Leverage Ratio set forth in the most recently delivered Compliance Certificate equals or exceeds 4.25 : 1.00.”

 

3.5          Revolving Commitment.  Schedule 2.1 of the Credit Agreement is hereby deleted in its entirety and replaced with Schedule 2.1 attached hereto.

 

4.             Conditions Precedent.  Before this Agreement becomes effective and any party becomes obligated under it, all of the following conditions shall have been satisfied in a manner acceptable to Agent in its sole judgment:

 

4.1          Agent shall have received an original of (i) this Agreement and (ii) the Consent and Reaffirmation of Guaranties attached hereto, each duly executed by an authorized signatory of each party thereto and in form and substance satisfactory to Agent and its legal counsel.

 

4.2          Agent shall have received a Second Amended and Restated Revolving Note payable to the order of each of Union Bank and U.S. Bank National Association and an Amended and Restated Revolving Note payable to the order of Bank of America N.A., in each case, duly executed by an authorized signatory of Borrower.

 

4

 

4.3          Agent shall have received any other any other agreements, resolutions, documents, opinion letters, entity documents, UCC and litigation searches, and information relating to the Loan (including evidence of Borrower’s authority to enter into this Agreement) that Agent may reasonably require or request in connection with this Agreement or in accordance with the other Loan Documents.

 

4.4          Borrower shall have paid (i) to each Consenting Lender a modification fee in the amount of ten (10) basis points of such Consenting Lender’s Existing Revolving Commitment and (ii) to Union Bank, N.A., those fees agreed upon by separate letter agreement between Borrower and Union Bank, N.A.

 

4.5          All of the representations and warranties of Borrower set forth in this Agreement shall be true and correct in all material respects on and as of the date of this Agreement.

 

5.             Payment of Expenses.  Borrower shall pay the fees and expenses of Agent’s outside counsel, as well as any other costs and expenses incurred or payable by the Lenders in connection herewith.

 

6.             Borrower’s Representations and Warranties.  Borrower represents and warrants to Lenders as follows:

 

6.1          Loan Documents.  Except as otherwise disclosed to Agent in writing prior to the date of this Agreement, all representations and warranties made and given by Borrower in the Loan Documents are true, accurate and correct as of the date hereof.

 

6.2          No Default.  There exists no Event of Default or event which, with the passage of time or the giving of notice or both, would constitute an Event of Default.

 

6.3          Borrowing Entity.  Borrower is a corporation, duly organized and existing and in good standing under the laws of the State of Delaware, and is qualified or licensed to do business in all jurisdictions (including California) in which such qualification or licensing is required or in which the failure to so qualify or to be so licensed could result in an Event of Default.  There have been no changes in the ownership structure or formation documents of Borrower since the original date of the Credit Agreement other than changes of ownership resulting from the issuance of or trading of Borrower’s publicly traded shares of common Stock or preferred stock, the Borrower’s redemption of its preferred Stock, the Borrower’s repurchases of its common Stock, or as otherwise disclosed in writing to Administrative Agent.

 

6.4          Existing Liens.  As of the date hereof, except as disclosed in writing to Agent, no Liens exist on any of Borrower’s assets and/or property of any kind other than Permitted Liens and other Liens permitted by Section 7.9 of the Credit Agreement.

 

7.             No Impairment; No Novation.  Except as specifically hereby amended, the Loan Documents shall each remain unaffected by this Agreement and all Loan Documents shall remain in full force and effect.  The execution and delivery of this Agreement shall not constitute a novation of any Loan Document.

 

5

 

8.             Integration.  The Loan Documents, including this Agreement:  (a) integrate all the terms and conditions mentioned in or incidental to the Loan Documents; (b) supersede all oral negotiations and prior and other writings with respect to their subject matter; and (c) are intended by the parties as the final expression of the agreement with respect to the terms and conditions set forth in those documents and as the complete and exclusive statement of the terms agreed to by the parties.  If there is any conflict between the terms, conditions and provisions of this Agreement and those of any other agreement or instrument, including any of the other Loan Documents, the terms, conditions and provisions of this Agreement shall prevail.

 

9.             Miscellaneous.  This Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if all signatures were upon the same instrument.  Delivery of an executed counterpart of the signature page to this Agreement by facsimile shall be effective as delivery of a manually executed counterpart of this Agreement, and any party delivering such an executed counterpart of the signature page to this Agreement by facsimile to any other party shall thereafter also promptly deliver a manually executed counterpart of this Agreement to such other party; provided; however, that the failure to deliver such manually executed counterpart shall not affect the validity, enforceability, or binding effect of this Agreement.  If any court of competent jurisdiction in the state of New York determines any provision of this Agreement or any of the other Loan Documents to be invalid, illegal or unenforceable, that portion shall be deemed severed from the rest, which shall remain in full force and effect as though the invalid, illegal or unenforceable portion had never been a part of the Loan Documents.  This Agreement shall be governed by the laws of the State of New York, without regard to the choice of law rules of that State.  As used in this Agreement, the word “include(s)” means “includes(s), without limitation,” and the word “including” means “including, but not limited to.”  In the event of a dispute between any of the parties hereto over the meaning of this Agreement, all parties shall be deemed to have been the drafter hereof, and any applicable law that states that contracts are construed against the drafter shall not apply.

 

[Remainder of Page Intentionally Left Blank.  
 Signature Page Follows.]

 

6

 

IN WITNESS WHEREOF, the parties have agreed to the foregoing as of the date first set forth above.

 

	
BORROWER
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
WILLIS   LEASE FINANCE CORPORATION,
    	
 
    
	
a   Delaware corporation
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    

 

S-1

 

	
AGENT   AND CONSENTING LENDER
    	
 
    
	
 
    	
 
    
	
UNION   BANK, N.A.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    

 

S-2

 

	
CONSENTING   LENDER
    	
 
    
	
 
    	
 
    
	
BANK   OF AMERICA, N.A.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    

 

S-3

 

	
CONSENTING   LENDER
    	
 
    
	
 
    	
 
    
	
CITY   NATIONAL BANK
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    

 

S-4

 

	
CONSENTING   LENDER
    	
 
    
	
 
    	
 
    
	
CREDIT   AGRICOLE CORPORATE AND INVESTMENT BANK
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    

 

S-5

 

	
CONSENTING   LENDER
    	
 
    
	
 
    	
 
    
	
CREDIT   INDUSTRIEL ET COMMERCIAL
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    

 

S-6

 

	
CONSENTING   LENDER
    	
 
    
	
 
    	
 
    
	
THE   HUNTINGTON NATIONAL BANK
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    

 

S-7

 

	
CONSENTING   LENDER
    	
 
    
	
 
    	
 
    
	
UMPQUA   BANK
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    

 

S-8

 

	
CONSENTING   LENDER
    	
 
    
	
 
    	
 
    
	
U.S.   BANK NATIONAL ASSOCIATION
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    

 

S-9

 

	
CONSENTING   LENDER
    	
 
    
	
 
    	
 
    
	
WELLS   FARGO BANK, NATIONAL ASSOCIATION
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    

 

S-10

 

Schedule 2.1

 

Revolving Commitment

 

	
Lender
    	
 
    	
Commitment
    	
 
    	
Pro Rata Share
    	
 
    
	
Union Bank, N.A. 
    	
 
    	
$
    	
85,000,000.00
    	
 
    	
18.888888889
    	
%
    
	
U.S. Bank National Association
    	
 
    	
$
    	
80,000,000.00
    	
 
    	
17.777777778
    	
%
    
	
Wells Fargo Bank, N.A.
    	
 
    	
$
    	
75,000,000.00
    	
 
    	
16.666666667
    	
%
    
	
Bank of America N.A.
    	
 
    	
$
    	
55,000,000.00
    	
 
    	
12.222222222
    	
%
    
	
City National Bank
    	
 
    	
$
    	
35,000,000.00
    	
 
    	
7.777777778
    	
%
    
	
Crédit Agricole S.A.
    	
 
    	
$
    	
35,000,000.00
    	
 
    	
7.777777778
    	
%
    
	
The Huntington National Bank
    	
 
    	
$
    	
35,000,000.00
    	
 
    	
7.777777778
    	
%
    
	
Credit Industriel et Commercial Bank
    	
 
    	
$
    	
25,000,000.00
    	
 
    	
5.555555556
    	
%
    
	
Umpqua Bank
    	
 
    	
$
    	
25,000,000.00
    	
 
    	
5.555555556
    	
%
    
	
TOTAL
    	
 
    	
$
    	
450,000,000.00
    	
 
    	
100.000000000
    	
%
    

 

1

 

CONSENT AND REAFFIRMATION OF GUARANTY

 

The undersigned, having read and understood the foregoing Amendment No. 2 to Amended and Restated Credit Agreement (“Amendment”), hereby (i) consent to all of the terms and provisions of the Amendment, (ii) agree that the Amendment does not terminate, alter or diminish in any way any of the obligations of the undersigned to Bank under those certain Guaranties executed by the undersigned  (the “Guaranties”), and (iii) reaffirm their obligations under the Guaranties in light of the Amendments to the Credit Agreement.  The undersigned, having reread the Guaranties and with advice of their own counsel, hereby reaffirm and restate all waivers, authorizations, agreements and understandings set forth in the Guaranties, as though set forth in full herein.  Capitalized terms used but not defined herein shall have the meanings assigned to such terms in the Amendment.

 

Dated:  June,     , 2013

 

 

	
 
    	
WELLS   FARGO NORTHWEST, NATIONAL ASSOCIATION, not in its individual capacity, except   as expressly provided in the Guaranties to which it is a party, but solely as   Trustee
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
WEST   ENGINE FUNDING LLC,
    
	
 
    	
a   Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Signed   and delivered as a deed by                                 ,
    
	
 
    	
as   attorney for WILLIS LEASE (IRELAND) LIMITED, in the presence of:
    
	
 
    	
 
    
	
 
    	
Signature   of Witness:
    	
 
    
	
 
    	
Name   of Witness:
    	
 
    
	
 
    	
Address   of Witness:
    	
 
    
	
 
    	
Occupation   of Witness:
    	
 
    
				

 

1

 

	
 
    	
Signed   and delivered as a deed   by                                      ,
    
	
 
    	
as   attorney for WLFC (IRELAND) LIMITED, in the presence of:
    
	
 
    	
 
    
	
 
    	
Signature   of Witness:
    	
 
    
	
 
    	
Name   of Witness:
    	
 
    
	
 
    	
Address   of Witness:
    	
 
    
	
 
    	
Occupation   of Witness:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Signed   and delivered as a deed   by                                      ,
    
	
 
    	
as   attorney for WEST ENGINE FUNDING (IRELAND) LIMITED, in the presence of:
    
	
 
    	
 
    
	
 
    	
Signature   of Witness:
    	
 
    
	
 
    	
Name   of Witness:
    	
 
    
	
 
    	
Address   of Witness:
    	
 
    
	
 
    	
Occupation   of Witness:
    	
 
    

 

2

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