Document:

Exhibit 10.8

 

AMENDMENT NO. 2 TO LEASE AGREEMENT (33466)

 

AND RELATED AMENDMENTS

 

This Amendment No. 2 to Lease Agreement (33466)
and Related Amendments (this “Amendment”), is entered into as of September 30,
2004, between (1) BCC Equipment Leasing Corporation (“Lessor”), a Delaware
corporation, and (2) Hawaiian Airlines, Inc. (“Lessee”), a Hawaii
corporation, acting by and through Joshua Gotbaum, as Chapter 11 Trustee for
the Lessee (the “Trustee”).

 

RECITALS

 

A.            Lessor and Lessee have heretofore entered
into that (i) certain Lease Agreement (33466) (originally shown as
(33426)), dated as of September 20, 2001, as supplemented by that certain
Lease Supplement No. 1, dated October 24, 2002, which were both
recorded with the Federal Aviation Administration as one document on October 29,
2002, and assigned Conveyance Number T070841 (together, the “Lease”), and (ii) that
certain Amendment No. 1 to Lease Agreement, dated as of October 24,
2002 (the “First Amendment”), which was recorded with the Federal Aviation Administration
on October 29, 2002, and assigned Conveyance Number T070841, pursuant to
which agreement, supplement and amendment Lessor has leased to Lessee one
Boeing Model 767-33AER aircraft bearing manufacturer’s serial number 33466 and
US Registration Number N588HA, together with two Pratt & Whitney Model
PW4060 engines installed thereon bearing manufacturer’s serial numbers 729112
and 729113, respectively.  Lessor and
Lessee have also heretofore entered into (i) that certain Tax
Indemnification Agreement (33466), dated as of September 20, 2001 (the “Tax
Indemnification Agreement”), (ii) that certain letter agreement, dated September 20,
2001 (the “TIA Letter”) in respect of the Tax Indemnification Agreement, (iii) that
certain Restructuring Agreement (33466), dated as of September 20, 2001
(the “Restructuring Agreement”, and (iv) that certain letter agreement,
dated September 20, 2001 (the “IFE Letter”), in respect of in-flight
entertainment system activation, in each case relating to the Lease and the described
aircraft (the Lease, the First Amendment, the Tax Indemnification Agreement,
the TIA Letter, the Restructuring Agreement and the IFE Letter, each as
amended, modified or supplemented at any time on or prior to the date hereof,
together the “Operative Agreements”).

 

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

 

C.            In connection with the Pending Case, Lessor
and Lessee wish to amend the terms of the Lease, as well as certain terms of
the Tax Indemnification Agreement, and, in consideration thereof, Lessee wishes
to assume all of the rights, benefits and obligations of the Lease and the Tax
Indemnification Agreement, each as amended hereby, together with all of the
other Operative Agreements, and to obtain the necessary approval of the
Bankruptcy Court approving the terms of this Amendment and the assumption of
the Lease, as amended hereby, together with all of the other Operative
Agreements, by Lessee.

 

 

TERMS AND CONDITIONS

 

In consideration of the foregoing premises, and for
other good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged, the parties hereto hereby agree as follows:

 

1.             DEFINITIONS AND CONSTRUCTION

 

Capitalized terms used
herein and not otherwise defined herein shall have the meanings assigned to
such terms in the Lease and, unless otherwise specifically noted, reference to “Sections”
herein shall be construed to refer to Sections of the Lease.

 

2.             AMENDMENT TO BASIC RENT
PROVISIONS AND ADDITION OF 467 RENT BALANCE PROVISIONS

 

(a)           Article 1 of the Lease is hereby amended
by adding the following new terms and definitions:

 

“Landing Gear Overhaul”
means any full overhaul of any Landing Gear to essentially full manufacturer
specification and operating condition, and, for the avoidance of doubt, “full
overhaul” does not mean only the replacement, repair or overhaul of any rotable
components, any cleaning or replacement of seals, any repair of brakes, wheels
or tires, brake rods, struts or braces, in each case, that occurs any more
frequently than a full overhaul.

 

“Section 467 Effective Date”
has the meaning set forth in Article 3(b) of the Lease Agreement.

 

“Section 467
Regulations” shall mean the U.S. Treasury Regulations promulgated pursuant to Section 467
of the Code.”

 

(b)           Article 1 of the Lease is hereby amended
by deleting in its entirety the definition of the term “Companion Lease” and
inserting, in lieu thereof, the following:

 

“Companion Lease” means (i) each
of the eleven lease agreements, between Wells Fargo Bank Northwest, National
Association (formerly known as First Security Bank, National Association), as
owner trustee (“Owner Trustee”), and Lessee (together with the Operative
Documents entered into in connection with, and as defined in, each of such
Lease Agreements) pursuant to each of which Owner Trustee has leased to Lessee
one Boeing Model 717-200 aircraft, and (ii) each of the two other lease
agreements, between Lessor and Lessee (together with the other agreements
entered into in connection with each of such Lease Agreements) pursuant to each
of which Lessor has leased to Lessee one Boeing Model 767-33AER aircraft.”

 

(c)           Article 3(b) of the Lease is hereby
amended by deleting the existing text thereof in its entirety and inserting in
lieu thereof the following:

 

2

 

“(b)         Basic
Rent             (i) 
Lessee shall pay Lessor Basic Rent for the Aircraft throughout the remainder of
the Term in consecutive monthly in advance payments, due and payable on the
first day of each calendar month, commencing on October 1, 2004, all as
set forth on Schedule 3 hereto (such that on each payment date so listed
on such Schedule 3, Lessee shall pay the amount corresponding to such
payment as shown on such Schedule).

 

(ii)           The
amounts and periods of Lessee’s liability for Basic Rent during the remainder of
the Term shall be as allocated in accordance with Schedule “4”
hereto.  Notwithstanding anything to the
contrary herein, Lessor and Lessee agree that, irrespective of Lessee’s payment
obligations as shown in Schedule “3” hereto, Lessee’s liability for Basic
Rent for the use of the Aircraft shall be allocated as stated in Schedule “4”
hereto.

 

(iii)          The
allocation of Basic Rent as provided in Article 3(b)(ii), and in Schedule “4”
hereto, constitutes a specific allocation of fixed rent within the meaning of
Treasury Regulation § 1.467-1(c)(2)(ii)(A), with the effect that, pursuant
to Treasury Regulation §§ 1.467-1(d) and 1.467-2, Lessor and Lessee,
on any federal income tax returns filed by them (or on any return on which
their income is included), shall accrue the amounts of rental income and rental
expense, respectively, set forth for each period specified in Schedule “4”
hereto as “Rent Allocable for Period From and Including Last Preceding Payment
Date To and Excluding Specified Date”, as described therein.

 

(iv)          Each of Lessee and Lessor agree that, solely
for purposes of the Section 467 Regulations, on any federal income tax
returns filed by them (or on any return on which their income is included) it
will treat the Lease Agreement as two leases with one lease being the
Pre-Modification Lease beginning on the first day of the Term ending the day
before the Section 467 Effective Date and the other lease being the
Post-Modification Lease beginning on the Section 467 Effective Date and
ending on the last day of the Term.  The “Section 467
Effective Date” is October 1, 2004.”

 

3.             AMENDMENTS TO MAINTENANCE
PROVISIONS

 

(a)           The first two paragraphs of Section (i) of
Article 5(d) of the Lease are hereby amended by inserting, after the
words “Engine Life-Limited Parts Payments,” in each place where they appear,
the words “Landing Gear Payments”.

 

(b)           Section (ii) of Article 5(d) of
the Lease is hereby amended by inserting at the end thereof a new paragraph as
follows:

 

3

 

“(E)         Landing Gear.  If
the Landing Gear undergoes a Landing Gear Overhaul, performed by an Approved
Maintenance Performer, Lessor will reimburse Lessee, from the then-existing
Landing Gear Payments, for the actual costs incurred by Lessee for such Landing
Gear Overhaul.”

 

(c)           Section (iii) of Article 5(d) of
the Lease is hereby amended by inserting, at the end thereof and before the “.”,
the following words:

 

“; provided that, if,
coincident with any repairs necessitated by foreign object damage, other
repairs or maintenance (reimbursable under this Agreement) are performed, then
drawdowns for such other repairs and maintenance shall be permitted”

 

(d)           Section (iv) of Article 5(d) of
the Lease is hereby amended (i) by adding, after the words “Item of Equipment,
APU” in each place where they appear, the words “, Landing Gear”, (ii) by
adding, after the words “Item of Equipment or APU” in each place where they
appear, the words “or the Landing Gear”, (iii) by adding, after the words “ITEM
OF EQUIPMENT OR THE APU”, the words “OR THE LANDING GEAR”, (iv) by adding,
after the words “ITEM OF EQUIPMENT OR APU”, the words “OR THE LANDING GEAR”,
and (v) by deleting at the end thereof the words “MAINTENANCE OF ANY
EQUIPMENT” and inserting, in lieu thereof, the words “MAINTENANCE OF ANY ITEM
OF EQUIPMENT, THE APU OR THE LANDING GEAR”.

 

(e)           Section (v) of Article 5(d) of
the Lease is hereby amended (i) by adding, after the words “Item of
Equipment, APU”, the words “, the Landing Gear”, and (ii) by adding, after
the words “Item of Equipment or APU”, the words “or the Landing Gear”.

 

(f)            Section (v) of Article 5(d) of
the Lease is hereby amended by adding, after the words “each Engine”, the words
“, the Landing Gear”.

 

4.             AMENDMENTS TO SCHEDULES

 

(a)           Schedule “1” to the Lease is hereby
amended as set forth in Appendix A hereto.

 

(b)           The Lease is hereby amended by adding thereto
new Schedules 3, 4, and 5, in the forms attached hereto (and as so
denominated).

 

5.             OTHER AMENDMENTS

 

(a)           Article 14 of the Lease is hereby amended
by adding a new provision at the end thereof, as follows:

 

“Notwithstanding the
foregoing, no Event of Default shall be deemed to occur or exist solely as a
result of the existence or continuation of Lessee’s bankruptcy case, Bankruptcy
Case No. 03-00817, in the United States Bankruptcy Court for the District
of Hawaii seeking relief under Chapter 11 of Title 11 of the United States
Code.”

 

(b)           The Tax Indemnification Agreement is hereby
amended as set forth in Appendix B hereto.

 

4

 

6.             REPRESENTATIONS AND WARRANTIES

 

(a)           Lessee represents and warrants to Lessor, on
the date this Amendment is executed and delivered by Lessor and Lessee, and on
and as of the date hereof and the Effective Date, that:

 

(i)            Lessee (1) is a corporation duly
organized and validly existing in good standing (except to the extent such good
standing may be affected solely as a consequence of the Pending Case) under the
laws of Hawaii, has full power, authority and legal right to own its properties
and to carry on its business as presently conducted and to perform its
obligations under the Lease, as amended hereby, and under the other Operative
Agreements, (2) holds all licenses, certificates and permits from all
governmental authorities necessary for the conduct of its business, and (3) is
duly qualified to do business as a corporation in good standing (except to the
extent such good standing may be affected solely as a consequence of the
Pending Case) in each jurisdiction in which the failure to be so qualified
would have a materially adverse effect on Lessee or on its ability to perform
its obligations under the Lease, as amended hereby, or under the other
Operative Agreements.

 

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

 

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

 

(iv)          This Amendment has been duly executed and
delivered by Trustee for and on behalf of Lessee and, subject to obtaining the
order of the Bankruptcy Court contemplated herein, constitutes the legal,
valid, binding and enforceable obligation of Lessee (as such enforceability may
be affected by applicable bankruptcy, insolvency or other similar laws
affecting creditors’ rights generally).

 

5

 

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

 

(vi)          On and as of the Effective Date, and after
giving effect to the terms of that certain Memorandum of Understanding, dated
as of September 15, 2004 (the “MOU”), by and between, inter alios,
Lessor and Lessee, and the amendments to the Lease and the Companion Leases (as
defined herein) being effected as of the date hereof, (i) no Default or
Event of Default, under and as defined in the Lease, as amended hereby, has
occurred and is continuing, and (ii) no Default (or Event) or Event of
Default has occurred and is continuing, under and as defined in any Companion
Lease, as such leases are amended pursuant to separate agreements entered into
contemporaneously herewith as contemplated in the MOU.

 

(b)           Lessor represents and warrants to Lessee, on
the date this Amendment is executed and delivered by Lessor and Lessee, and on
and as of the date hereof and the Effective Date, that:

 

(i)            Lessor (1) is a corporation duly
organized and validly existing in good standing under the laws of Delaware, has
full power, authority and legal right to own its properties and to carry on its
business as presently conducted and to perform its obligations under the Lease,
as amended hereby, and under the other Operative Agreements, (2) holds all
licenses, certificates and permits from all governmental authorities necessary
for the conduct of its business, and (3) is duly qualified to do business
as a corporation in good standing in each jurisdiction in which the failure to
be so qualified would have a materially adverse effect on Lessor or on its
ability to perform its obligations under the Lease, as amended hereby, or under
the other Operative Agreements.

 

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

 

6

 

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

 

(iv)          This Amendment has been duly executed and
delivered by Lessor and, subject to obtaining the order of the Bankruptcy Court
contemplated herein, constitutes the legal, valid, binding and enforceable
obligation of Lessor (as such enforceability may be affected by applicable
bankruptcy, insolvency or other similar laws affecting creditors’ rights
generally).

 

7.             CONDITIONS PRECEDENT

 

This Amendment shall become
effective, and Lessee will be deemed to have assumed the rights and obligations
of and under the Lease, as amended hereby, and of and under the other Operative
Agreements, as one or more of such Operative Documents are amended hereby, all
as contemplated in the MOU, on the date (the “Effective Date”) that all of the
following conditions have been satisfied, to the reasonable satisfaction of
Lessor:

 

(a)           The Bankruptcy Court shall have entered an
order, in form and substance satisfactory to Lessor, (i) approving this
Amendment and the transactions contemplated hereby, (ii) approving the
amendments to each of the Companion Leases, each such amendment dated the date
hereof and entered into contemporaneously herewith (each such amendment, a “Lease
Amendment”), between Lessee and Lessor (or Owner Participant acting as lessor)
and the transactions contemplated thereby, (iii) approving the terms of
the MOU and the transactions contemplated thereby, (iv) confirming and
effectuating the assumption by Lessee of the Lease, as amended by this
Amendment, and (v) confirming and effectuating the assumption by Lessee of
each of the Companion Leases, each as amended by the applicable Lease
Amendment; and such order shall not have been reversed, stayed, modified or
amended;

 

(b)           Lessor shall have received satisfactory legal
opinions from FAA counsel, and California and Hawaii counsel as to the matters
referred to in paragraphs (a)(i) through (a)(v) of Section 6
above (or, if the matters referred to in paragraphs (a)(i) through (a)(iii) are
covered, to Lessor’s reasonable satisfaction, in the Bankruptcy Court order
described above, such opinion shall address only the matters referred to in
paragraphs (a)(iv) and (a)(v)), and in paragraph (l) of Section 10
below, and as to such other matters as Lessor may reasonably request;

 

(c)           Lessee shall have paid the amount,
constituting an addition to the existing Security Deposit, that when added to
the amounts currently held as the Security Deposit will increase such amounts
to the total required under and pursuant to paragraph 4 of Schedule “1” to
the Lease, as amended hereby.;

 

7

 

(d)           All of Lessee’s representations and
warranties set forth in Section 6 hereof and in Section 9 of the MOU
shall be true and correct;

 

(e)           All conditions precedent to the effectiveness
of each of the Lease Amendments shall have been fulfilled and each of such
Lease Amendments same shall be in full force and effect; and

 

(f)            All of the events described in Section 8
of the MOU shall have occurred.

 

If the conditions set forth
in the foregoing clauses (a) through (f) are not satisfied to the
reasonable satisfaction of Lessor, on or before September 30, 2004, this
Amendment shall become null and void.

 

8.             LEASE ASSUMED, RATIFIED AND
CONFIRMED

 

On and after the Effective
Date of this Amendment, (i) each reference in the Lease to “this Lease”, “hereunder”,
“hereof”, or words of like import referring to the Lease shall be deemed to
mean, and be a reference to, the Lease as amended by this Amendment, (ii) the
Lease, as amended hereby, shall be deemed to be ratified and confirmed in all
respects and in full force and effect, and (iii) the Lease shall be deemed
to be, and shall be (pursuant to the order of the Bankruptcy Court described in
paragraph (a) of Section 7 hereof) assumed for all purposes by
Lessee, all as contemplated in the MOU.

 

9.             MUTUAL RELEASES

 

Lessor and Lessee have also
agreed, as set forth in Section 6 of the MOU (as defined in Section 6(a)(vi) hereof),
to release certain claims in connection with (i) the execution and
delivery of this Amendment, and of the amendments to the Companion Leases, and
the assumption by Lessee of the Lease and the Companion Leases, and (ii) the
other matters described in the MOU; and each of Lessor and Lessee acknowledges
that such releases of claims constitute an integral part of the consideration
between Lessor and Lessee to enter into this Amendment.

 

10.          MISCELLANEOUS

 

(a)           No provision of
this Amendment may be modified, amended or supplemented, or waived, released or
discharged, except in a writing signed by Lessor and Lessee and specifying the
provision intended to be modified, amended, supplemented, waived, released or
discharged.

 

(b)           All notices,
requests, demands, authorizations, directions, consents, waivers and other
communications relating to this Amendment shall be made, given, furnished, or
filed, and shall become effective, in the manner prescribed in Article 17(b) of
the Lease.

 

(c)           If any provision of this Amendment shall be invalid,
inoperative or unenforceable as applied in any particular case in any
jurisdiction because it conflicts with any other provision hereof or any
constitution or statute or rule or public policy, or for any other reason,
such circumstance shall not have the effect of rendering the provision in
question inoperative or

 

8

 

unenforceable in any other
case or circumstance or in any other jurisdiction or of rendering any other
provision herein contained invalid, inoperative, or unenforceable to any extent
whatever.  The parties agree that they
shall promptly replace any invalid, inoperative or unenforceable provision with
a valid, operative and enforceable provision.

 

(d)           The headings of the
sections and clauses of this Amendment are inserted for convenience only and
shall not affect the interpretation hereof.

 

(e)           This Amendment shall be binding upon, and shall inure to the benefit of and shall be
enforceable by, the parties hereto and
their respective permitted successors and assigns; and for purposes of
determining permitted successors and assigns, the terms of the Lease shall
govern and control.

 

(f)            The failure of any party hereto to
exercise any right, power, or remedy provided under this Amendment or otherwise
available in respect hereof at law or in equity, or to insist upon compliance
by any other party hereto with its obligations hereunder, and any custom or
practice of the parties at variance with the terms hereof, shall not constitute
a waiver by such party of its right to exercise any such or other right, power,
or remedy or to demand such compliance.

 

(g)           This Amendment may
be executed in one or more counterparts, each of which shall be deemed an
original and all of which together shall constitute one and the same
agreement.  Delivery of an executed
signature page of this Amendment by facsimile or e-mail shall be as
effective as delivery of a manually executed signature page of this
Amendment.  Any party hereto delivering an executed
counterpart of this Amendment by facsimile shall also deliver an originally
executed counterpart but the failure to so deliver a manually executed
counterpart shall not affect the validity, enforceability or binding effect
hereof.

 

(h)           This Amendment
shall be solely for the benefit of the parties hereto, and no other person or
entity shall be a third-party beneficiary hereof.

 

(i)            The specific terms of the Lease that are
amended and supplemented by this Amendment, shall be subject to the
confidentiality restrictions set forth in Section 23 of the MOU. 
Notwithstanding the foregoing, each party hereto acknowledges and agrees
that the terms of this Amendment may be summarized in the Subject Motion and in
the Plan and the Disclosure Statement accompanying the Plan (as such terms are
defined in the MOU).

 

(j)            All of the Appendices and Schedules
attached to this Amendment are by this reference incorporated herein and made a
part of this Amendment as though, and with the same force and effect as if,
fully set forth herein.

 

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

 

9

 

(l)            Lessee shall cause this Amendment, so far
as required or permitted by applicable law or regulation, to be kept, filed,
registered and recorded at all times in accordance with Article 12 of the
Lease and any other applicable provisions of the Operative Agreements.

 

(m)          This Amendment constitutes, on and as of
the date hereof, the full and entire understanding and agreement among the
parties hereto with regard to the subject matter hereof, and supersedes all
prior or contemporaneous understandings and agreements, whether written or
oral, between or among any of the parties hereto with respect to the subject
matter hereof.

 

(Signature Page Follows)

 

10

 

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

 

BCC EQUIPMENT LEASING
CORPORATION,  

as Lessor

 

 

	
  By:

  	
  /s/ John A. Catron

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  HAWAIIAN AIRLINES, INC.,
  as Lessee

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Joshua Gotbaum

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
  Trustee

  	
   

  
				

 

11

 

APPENDIX A

 

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

 

 

APPENDIX B

 

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

 

 

SCHEDULE 3

 

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

 

 

SCHEDULE 4

 

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

 

 

SCHEDULE 5

 

Intentionally omitted as
containing confidential information, which has been filed separately with the
Securities and Exchange Commission.Exhibit 10.9

 

AMENDMENT NO. 3 TO LEASE
AGREEMENT (33466)

 

This Amendment No. 3 to Lease Agreement (33466)
and Related Amendments (this “Amendment”), is entered into as of September 30,
2004, between (1) BCC Equipment Leasing Corporation (“Lessor”), a Delaware
corporation, and (2) Hawaiian Airlines, Inc. (“Lessee”), a Hawaii
corporation, acting by and through Joshua Gotbaum, as Chapter 11 Trustee for
the Lessee (the “Trustee”)..

 

RECITALS

 

A.            Lessor
and Lessee have heretofore entered into that (i) certain Lease Agreement (33466)
(originally shown as 33426), dated as of September 20, 2001, as
supplemented by that certain Lease Supplement No. 1, dated October 24,
2002, which were both recorded with the Federal Aviation Administration as one
document on October 29, 2002, and assigned Conveyance Number T070841
(together, the “Lease”); (ii) that certain Amendment No. 1 to Lease
Agreement, dated as of October 24, 2002 (the “First Amendment”), which was
recorded with the Federal Aviation Administration on October 29, 2002, and
assigned Conveyance Number T070841; and (iii) that certain Amendment No. 2
to Lease Agreement, dated as of September 30, 2004 (the “Second Amendment”),
which was recorded with the Federal Aviation Administration on November 19,
2004, and assigned Conveyance Number N003002 pursuant to which agreement,
supplement and amendment Lessor has leased to Lessee one Boeing Model 767-33AER
aircraft bearing manufacturer’s serial number 33466 and US Registration Number
N588HA, together with two Pratt & Whitney Model PW4060 engines
installed thereon bearing manufacturer’s serial numbers 729112 and 729113,
respectively.  Lessor and Lessee have
also heretofore entered into (i) that certain Tax Indemnification
Agreement, dated as of September 20, 2001 (the “Tax Indemnification
Agreement”), (ii) that certain letter agreement, dated September 20,
2001 (the “TIA Letter”) in respect of the Tax Indemnification Agreement, (iii) that
certain Restructuring Agreement, dated as of September 20, 2001 (the “Restructuring
Agreement”, and (iv) that certain letter agreement, dated September 20,
2001 (the “IFE Letter”), in respect of in-flight entertainment system
activation, in each case relating to the Lease and the described aircraft (the
Lease, the First Amendment, the Tax Indemnification Agreement, the TIA Letter,
the Restructuring Agreement and the IFE Letter, each as amended, modified or
supplemented at any time on or prior to the date hereof, together the “Operative
Agreements”).

 

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

 

C.            In
connection with the Pending Case, Lessor and Lessee entered into the Second
Amendment and wish to make certain technical corrections to the Lease as
amended.

 

 

TERMS AND CONDITIONS

 

In consideration of the foregoing premises, and for
other good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged, the parties hereto hereby agree as follows:

 

1.             DEFINITIONS AND CONSTRUCTION

 

Capitalized terms used
herein and not otherwise defined herein shall have the meanings assigned to
such terms in the Lease and, unless otherwise specifically noted, reference to “Sections”
herein shall be construed to refer to Sections of the Lease.

 

2.                                      AMENDMENT

 

(a)           The references contained in Article 3(b) of the
Lease to the caption that describes the rent as “Rent Allocable for Period From
and Including Last Preceding Payment Date Through and Excluding Specified Date”
shall be changed to “Rent Allocable to Period.”

 

(b)           The reference in the fourth paragraph of the new paragraph
5 of Schedule “1” to the Lease to the date “November 15, 2004” shall
be changed to “March 15, 2005”.

 

3.             LEASE ASSUMED, RATIFIED AND CONFIRMED

 

On and after the Effective
Date of this Amendment, (i) each reference in the Lease to “this Lease”, “hereunder”,
“hereof”, or words of like import referring to the Lease shall be deemed to
mean, and be a reference to, the Lease as amended by this Amendment, (ii) the
Lease, as amended hereby, shall be deemed to be ratified and confirmed in all
respects and in full force and effect, and (iii) the Lease shall be deemed
to be, and shall be assumed for all purposes by Lessee, all as contemplated in
the MOU.

 

4.             MISCELLANEOUS

 

(a)           No provision of this Amendment may be modified, amended or
supplemented, or waived, released or discharged, except in a writing signed by
Lessor and Lessee and specifying the provision intended to be modified,
amended, supplemented, waived, released or discharged.

 

(b)           All notices, requests, demands, authorizations,
directions, consents, waivers and other communications relating to this Amendment
shall be made, given, furnished, or filed, and shall become effective, in the
manner prescribed in Article 17(b) of the Lease.

 

(c)           If any provision of this Amendment
shall be invalid, inoperative or unenforceable as applied in any particular
case in any jurisdiction because it conflicts with any other provision hereof
or any constitution or statute or rule or public policy, or for any other
reason, such circumstance shall not have the effect of rendering the provision
in question inoperative or unenforceable in any other case or circumstance or
in any other jurisdiction or of rendering any other provision herein contained
invalid, inoperative, or unenforceable to any extent whatever.  The parties agree that they shall promptly
replace any invalid, inoperative or unenforceable provision with a valid,
operative and enforceable provision.

 

 

(d)           The headings of the sections and clauses of this Amendment
are inserted for convenience only and shall not affect the interpretation
hereof.

 

(e)           This Amendment shall be binding
upon, and shall inure to the benefit of and shall be enforceable by, the parties hereto and their respective permitted
successors and assigns; and for purposes of determining permitted successors
and assigns, the terms of the Lease shall govern and control.

 

(f)            The
failure of any party hereto to exercise any right, power, or remedy provided
under this Amendment or otherwise available in respect hereof at law or in
equity, or to insist upon compliance by any other party hereto with its obligations
hereunder, and any custom or practice of the parties at variance with the terms
hereof, shall not constitute a waiver by such party of its right to exercise
any such or other right, power, or remedy or to demand such compliance.

 

(g)           This Amendment may be executed in one or more
counterparts, each of which shall be deemed an original and all of which
together shall constitute one and the same agreement.  Delivery of an executed signature page of
this Amendment by facsimile or e-mail shall be as effective as delivery of a
manually executed signature page of this Amendment. 
Any party hereto delivering an executed counterpart of this Amendment by
facsimile shall also deliver an originally executed counterpart but the failure
to so deliver a manually executed counterpart shall not affect the validity,
enforceability or binding effect hereof.

 

(h)           This Amendment shall be solely for the benefit of the
parties hereto, and no other person or entity shall be a third-party
beneficiary hereof.

 

(i)            The
specific terms of the Lease that are amended and supplemented by this
Amendment, shall be subject to the confidentiality restrictions set forth in Section 10(i) of
the Second Amendment.

 

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

 

(k)           Lessee
shall cause this Amendment, so far as required or permitted by applicable law
or regulation, to be kept, filed, registered and recorded at all times in
accordance with Article 12 of the Lease and any other applicable
provisions of the Operative Agreements.

 

(l)            This
Amendment constitutes, on and as of the date hereof, the full and entire
understanding and agreement among the parties hereto with regard to the subject
matter hereof, and supersedes all prior or contemporaneous understandings and
agreements, whether written or oral, between or among any of the parties hereto
with respect to the subject matter hereof.

 

(Signature Page Follows)

 

 

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

 

 

	
  BCC EQUIPMENT LEASING CORPORATION,

  	
   

  
	
  as Lessor

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Scott Scherer

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  HAWAIIAN AIRLINES, INC., as Lessee

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Joshua Gotbaum

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
  Trustee

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