Document:

Exhibit 10.02

 

AMENDMENT NUMBER ONE TO CREDIT AGREEMENT

 

This
AMENDMENT NUMBER ONE TO CREDIT AGREEMENT (this “Amendment”) is entered
into as of March 13, 2006 by the lenders identified on the signature pages hereof
(the “Lenders”), CANYON CAPITAL
ADVISORS, LLC, a Delaware limited liability company, in its capacity
as agent for the Lenders (in such capacity, “Agent”; and together with
the Lenders, the “Lender Group”), HAWAIIAN HOLDINGS, INC.,
a Delaware corporation (“Parent”), and HAWAIIAN
AIRLINES, INC., a Delaware corporation (“Borrower”),
with reference to the following:

 

WHEREAS, Borrower, Parent, Agent and certain of the
Lenders are parties to that certain Credit Agreement, dated as of June 2,
2005 (as amended, restated, supplemented, or otherwise modified from time to
time, the “Credit Agreement”);

 

WHEREAS, Borrower has requested that the Lender
Group make certain amendments to the Credit Agreement to provide for, among
other things, additional loans to be made thereunder and for certain of the
Lenders to become party thereto; and

 

WHEREAS, subject to the terms and conditions set
forth herein, the Lender Group is willing to make the amendments requested by
Borrower.

 

NOW,
THEREFORE, in
consideration of the foregoing and the mutual covenants herein contained, and
for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereby agree as follows:

 

1.               Defined
Terms. Capitalized terms used herein and not otherwise defined
herein shall have the meanings ascribed to them in the Credit Agreement, as
amended hereby.

 

2.               Amendment
to Loan Documents.

 

(a)                                  Schedule 1.1 of the
Credit Agreement is hereby amended by adding the following definitions therein
in alphabetical order or amending and restating the following definitions in
their entirety, as the case may be:

 

“Additional
OID Amount” means
Four Hundred Seventy-Five Thousand Dollars ($475,000), which shall be fully
earned as of the First Amendment Effective Date and shall constitute a portion
of the Term Loan.

 

“Additional
Term Loan” has the meaning specified therefor in Section 2.1.

 

“Additional
Warrants” means the warrants issued to the Lenders on the date hereof as “Additional
Warrants”, as described more fully on Exhibit D attached hereto.

 

“Additional
Warrants Triggering Event” means (i) the transfer of
$10,000,000 to the Designated Account in accordance with Section 2.1(a)(v);
or (ii) the use by Borrower of financing other than the First Amendment
Cash

 

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Collateral to finance the
acquisition of the Fifth Aircraft and Engine (or an aircraft and/or engine
comparable to the Fifth Aircraft and Engine).

 

“Designated
Aircraft and Engines” means the Aircraft and Engines listed on Exhibit B
to the First Amendment.

 

 “Existing Term Loan” has the meaning
specified therefor in Section 2.2.

 

“EBITDA”
means, with respect to any fiscal period, Borrower’s and its Subsidiaries’
consolidated net earnings (or loss), minus extraordinary gains, interest
income, net fair value decrease (or increase) in jet fuel swap agreements that
did not qualify as hedges as defined in the Financial Accounting Standards
Board’s Statement of Financial Accounting Standards No. 133, and, to the
extent not reported or classified as depreciation or amortization expense,
amortization of favorable maintenance contracts, accretion of unfavorable real
estate leases, accretion of unfavorable aircraft leases, amortization of
favorable aircraft leases, and accretion of unfavorable engine leases, plus non-cash
extraordinary losses, non-cash Stock option expenses, interest expense, income
taxes, and depreciation and amortization for such period, in each case, as
determined in accordance with GAAP. Solely with respect to the trailing twelve
month period ended June 30, 2005, the one-time extraordinary charge
related to the successful restructuring and revision of long-term aircraft
leases and the related deficiency claims filed by the aircraft lessors shall be
excluded from the definition of “EBITDA”.

 

“Fifth
Aircraft and Engine” means the Boeing 767-332 Aircraft and the General
Electric Model CF6-80A2 Engine that Borrower disclosed to Agent prior to the
Closing Date that Borrower would be purchasing.

 

“First
Amendment” means that certain Amendment Number One to Credit Agreement,
dated as of March 13, 2006, among the Parent, the Parent’s Subsidiaries
identified on the signature pages thereof, the Lenders, and the Agent.

 

“First
Amendment Cash Collateral Account” means that certain deposit account
number 12888285 maintained with Wells Fargo Brokerage Services, LLC in the name
of Borrower.

 

“First
Amendment Effective Date” means the date that each of the conditions
precedent set forth in the First Amendment have been satisfied.

 

“First
Amendment Effective Date Warrants” means the warrants issued to the Lenders
on the date hereof as “First Amendment Effective Date Warrants”, as described
more fully on Exhibit D attached hereto.

 

“First
Lien Additional Term Loan” means the “Additional Term Loan” as defined in
the Bank Credit Agreement.

 

“Leverage
Ratio” means, as of any date of measurement, the “Total Leverage Ratio” as
defined in, and determined from time to time in accordance with, the Bank
Credit Agreement.

 

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“Maximum
Senior Indebtedness” means an amount equal to the maximum amount of
Indebtedness incurred by Borrower under the Bank Credit Documents plus
$25,000,000; provided, however, that in the event any of the
First Amendment Cash Collateral is used to repay, in whole or in part, the
First Lien Additional Term Loan, then the amount defined hereunder as “Maximum
Senior Indebtedness” shall automatically be reduced by the aggregate amount
of such repayment on the First Lien Additional Term Loan.

 

“Permitted
Ansett Sale-Leaseback Transaction” means the sale and leaseback by
Borrower of one or more of the Designated Aircraft and Engines or the Fifth
Aircraft and Engine (but, in each case, not any Spare Parts related thereto) to
Ansett Worldwide Aviation Services, Inc. so long as (i) no Event of
Default has occurred and is continuing or would result therefrom, (ii) Borrower
has delivered to each Agent copies of the sale and leaseback agreements,
together with all exhibits and schedules thereto, and all other agreements or
documents to be executed in connection with such agreements, certified as being
true, correct, and complete by an officer of Borrower, and, in each case, the
same shall be in form and substance satisfactory to Agent, (iii) the
sale and leaseback has been consummated in accordance with the terms of such
agreements, (iv) the purchase price of the Designated Aircraft and Engines
or the Fifth Aircraft and Engine, as applicable, is not less than the fair
market value (as determined by an appraisal conducted by an independent
aircraft appraiser that is internationally recognized and has experience and
expertise in appraising large commercial jet passenger Aircraft and that is
otherwise satisfactory to Borrower and Agent) and is paid in cash, and (v) the
Net Cash Proceeds of such sale shall be applied in accordance with Section 2.2(c)(iv).

 

“Rating Agencies”
has the meaning specified therefor in Section 2.7.

 

“Securities Account
Control Agreement” means that certain Securities Account Control Agreement
– Account Restricted Right Away, dated as of the date hereof, by and among
Borrower, Bank Credit Agent, Agent and the Securities Intermediary (as the same
may be amended, restated, supplemented or otherwise modified from time to
time).

 

“Securities
Intermediary” means Wells Fargo Brokerge Services, LLC.

 

“Securitization”
has the meaning specified therefor in Section 2.7.

 

“Securitization
Liabilities” has the meaning specified therefor in Section 2.7.

 

“Securitization
Parties” has the meaning specified therefor in Section 2.7.

 

“Term
Loan Amount” means $72,500,000.

 

“Term
Loan Prepayment Fee” means (a) until and including the first
anniversary of the First Amendment Effective Date, an amount equal to 5% of the
principal amount of the Term Loan being prepaid; (b) after the first
anniversary of

 

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the
First Amendment Effective Date and until and including the second anniversary
of the First Amendment Effective Date, an amount equal to 2.5% of the principal
amount of the Term Loan being prepaid; (c) after the second anniversary of
the First Amendment Effective Date and until and including the fourth
anniversary of the First Amendment Effective Date, an amount equal to 1% of the
principal amount of the Term Loan being prepaid; and (d) after the fourth
anniversary of the First Amendment Effective Date but prior to and excluding
the Maturity Date, an amount equal to 0% of the principal amount of the Term
Loan being prepaid.

 

“Warrants”
means, collectively, the First Amendment Effective Date Warrants and the
Additional Warrants.

 

(b)                                 Section 2.1(a) of
the Credit Agreement is hereby amended and restated in its entirety as follows:

 

“(a)                            (i)  Each Lender with a Term Loan
Commitment on the Closing Date (severally, not jointly or jointly and
severally) made a term loan to Borrower on the Closing Date in an amount equal the
amount set forth for such Lender on Schedule C-1, which amount
included a share of the OID Amount attributable to such Lender as set forth on Schedule C-1
(collectively, the “Existing Term Loan”).

 

(ii)  The outstanding
principal balance of the Existing Term Loan as of the First Amendment Effective
Date, prior to giving effect to the First Amendment, is set forth on Schedule C-1.
Subject to the terms and conditions of this Agreement, each Lender with a Term
Loan Commitment on the First Amendment Effective Date agrees (severally, not
jointly or jointly and severally) to make an additional term loan (collectively,
the “Additional Term Loan”; and, collectively, with the Existing Term
Loan, the “Term Loan”) to Borrower on the First Amendment Effective Date
in an amount equal to the amount set forth for such Lender on Schedule C-1,
which amount shall include a share of the Additional OID Amount attributable to
such Lender as set forth on Schedule C-1. The amount of the Term
Loan funded by those Lenders having a Term Loan Commitment on the First
Amendment Effective Date shall be reduced by the Additional OID Amount. The
Term Loan shall be evidenced by an Amended and Restated Promissory Note in the form of
Exhibit N-1 (the “Note”), and the Borrower shall execute and
deliver the Note to Agent, for the benefit of the Lenders. The Note shall
represent the obligation of Borrower to pay to Agent, for the benefit of the
Lenders, the full principal amount of the Term Loan, together with interest
thereon as prescribed in Section 2.3. Interest on the Term Loan
shall be payable quarterly in arrears, on the last Business Day of each
calendar quarter, at the applicable interest rate set forth in Section 2.3.
On the First Amendment Effective Date, (a) an amount equal to $43,750,000 of the First
Lien Additional Term Loan and an amount equal to $20,850,000 of the Additional
Term Loan (collectively, the “First Amendment Cash Collateral”) shall be
transferred to the First Amendment Cash Collateral Account, which shall be
subject to the Securities Account Control Agreement, and (b) the
First Amendment Effective

 

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Date Warrants (as set
forth on Exhibit D hereto) and the Additional Warrants (as set
forth on Exhibit D hereto) shall be issued to the warrantholders
set forth on Exhibit D (the “Warrantholders”). Neither Parent nor Borrower nor any of
their respective Subsidiaries shall, nor shall they have any right, to withdraw
any cash from the First Amendment Cash Collateral Account.

 

(iii)  The parties
hereto hereby agree that within 30 days after the First Amendment Effective
Date (the “First Cash Collateral Events Deadline”) each of the following
shall have occurred (the “First Cash Collateral Events”): (A) Agent
shall have received searches from the Secretary of State of the jurisdiction of
organization of Borrower with respect to the Designated Aircraft and Engines,
the results of which shall be satisfactory to Agent; (B) Agent shall have
received searches from the FAA with respect to the Designated Aircraft and
Engines, the results of which shall be satisfactory to Agent; (C) Agent
shall have received each of the following documents with respect to the Designated
Aircraft and Engines, in form and substance satisfactory to Agent, duly
executed, and each such document shall be in full force and effect: (I) an
Aircraft Security Agreement, and (II) an opinion from FAA counsel, in form and
substance satisfactory to Agent, which shall include (x) that the Designated
Aircraft and Engines have been registered in the name of Borrower with the FAA
in accordance with the Federal Aviation Act Laws, (y) that such Aircraft
Security Agreement has been recorded with the FAA in accordance with the
Federal Aviation Act Laws and constitutes a second priority Lien (subject only
to the prior Lien under the Bank Credit Documents) upon the “Collateral” (as
such term is defined in the Aircraft Security Agreement) in favor of Agent, and
(z) all relevant parties shall have complied with the Protocol to the
Convention on International Interests in Mobile Equipment on Matters Specific
to Aircraft Equipment (the “Cape Town Convention”) as are reasonably
requested by Agent and Agent shall have received an opinion with respect
thereto in form and substance satisfactory to Agent; and (D) Agent
shall have received airworthiness certificates, any operating leases, and any
and all other material contracts related to the Designated Aircraft and
Engines, each of which shall be satisfactory to Agent. If any of the First Cash
Collateral Events shall not have occurred by the First Cash Collateral Events Deadline
or an Event of Default (that is not immediately waived in writing by both the
Agent and Bank Credit Agent) has occurred, then (a) as promptly as
practicable and, in any event, within two Business Days after the earlier of (i) the
First Cash Collateral Events Deadline, or (ii) if an Event of Default
(that is not immediately waived in writing by both the Agent and the Bank
Credit Agent) has occurred, the date that the Required Lenders (as such term is
defined in the Bank Credit Agreement) request the release of such amount from Bank
Credit Agent, Bank Credit Agent will direct the Securities Intermediary to
release an amount equal to $43,750,000 of the First Amendment Cash Collateral and
upon such release, Bank Credit Agent will as promptly as practicable apply such
amount to repay, in part, the principal amount of the First Lien Additional
Term Loan; and (b) concurrently therewith, Bank Credit Agent will direct
the Securities Intermediary to release an amount equal to $10,850,000 of the
First Amendment Cash Collateral and upon such release, Bank Credit Agent will
as promptly as practicable cause such amount to be transferred to Agent, for
the benefit of the

 

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Lenders,
to repay, in part, the principal amount of the Additional Term Loan. Amounts
repaid pursuant to this Section 2.1(a)(iii) may not be reborrowed.

 

(iv)  The parties
hereto hereby agree that within 60 days after the First Amendment
Effective Date (the “Second Cash Collateral Events Deadline”) each of
the following shall have occurred (the “Second Cash Collateral Events”):  (A) Agent shall have received evidence
satisfactory to Agent that all of the Subordinated Notes shall have been called
for redemption and converted into a right to receive payment; and (B) Agent
shall have received one or more letters duly executed by the holders of the Subordinated
Notes and in full force and effect, in form and substance satisfactory to
Agent, respecting the amounts necessary to repay in full all of the obligations
of Parent owing to the holders of the Subordinated Notes and confirmation that
upon receipt of a certain amount, the holders of the Subordinated Notes will be
paid in full. If each of the
First Cash Collateral Events shall have occurred by the First Cash Collateral
Events Deadline, each of the Second Cash Collateral Events shall have occurred by
the Second Cash Collateral Events Deadline, and no Event of Default (that has
not been waived in writing by both Agent and Bank Credit Agent) has occurred,
then as promptly as practicable and, in any event within two Business Days
after the date that all of the First Cash Collateral Events shall have occurred,
Bank Credit Agent will direct the Securities Intermediary to release amounts
necessary to redeem the Subordinated Notes (as such Subordinated Notes are
redeemed) in an aggregate amount not to exceed $54,600,000, and upon such
release, Bank Credit Agent will as promptly as practicable transfer directly to
the holders of the Subordinated Notes (or to the Designated Account, in Bank
Credit Agent’s discretion) amounts necessary to redeem the Subordinated Notes
(as such Subordinated Notes are redeemed), in an aggregate amount not to exceed
$54,600,000. If any of the Second Cash Collateral Events shall not have
occurred by the Second Cash Collateral Events Deadline or an Event of Default
(that is not immediately waived in writing by both the Agent and Bank Credit
Agent) occurs, then (a) as promptly as practicable and, in any event,
within two Business Days after the earlier of (i) the Second Cash
Collateral Events Deadline or (ii) if an Event of Default (that has not
immediately been waived in writing by both the Agent and Bank Credit Agent) has
occurred, the date that the Required Lenders (as such term is defined in the
Bank Credit Agreement) request the release of such amount from Bank Credit
Agent, Bank Credit Agent will direct the Securities Intermediary to release an
amount equal to $43,750,000 of the First Amendment Cash Collateral and upon
such release, Agent will as promptly as practicable apply such amount to repay,
in part, the principal amount of the First Lien Additional Term Loan; and (b) concurrently
therewith, Bank Credit Agent will direct the Securities Intermediary to release
an amount equal to $10,850,000 of the First Amendment Cash Collateral and upon
such release, Bank Credit Agent will as promptly as practicable cause such
amount to be transferred to the Agent, for the benefit of the Lenders, to
repay, in part, the principal amount of the Additional Term Loan. Amounts
repaid pursuant to this Section 2.1(a)(iv) may not be
reborrowed.

 

6

 

(v)  The parties hereto
hereby agree that as promptly as practicable after Borrower shall have entered
into a written, binding commitment to purchase the Fifth Aircraft and Engine,
and in any event within 120 days after the First Amendment Effective Date (the “Third
Cash Collateral Events Deadline”), each of the following shall have
occurred (the “Third Cash Collateral Events”): (A) Agent shall have
received searches from the Secretary of State of the jurisdiction of
organization of Borrower with respect to the Fifth Aircraft and Engine, the
results of which shall be satisfactory to Agent; (B) Agent shall have
received searches from the FAA with respect to the Fifth Aircraft and Engine,
the results of which shall be satisfactory to Agent; (C) Agent shall have
received each of the following documents with respect to the Fifth Aircraft and
Engine, in form and substance satisfactory to Agent, duly executed, and
each such document shall be in full force and effect: (I) an Aircraft Security
Agreement Supplement reflecting the Fifth Aircraft and Engine, and (II) an
opinion from FAA counsel, in form and substance satisfactory to Agent,
which shall include (x) that the Fifth Aircraft and Engines have been
registered in the name of Borrower with the FAA in accordance with the Federal
Aviation Act Laws, (y) that such Aircraft Security Agreement has been recorded
with the FAA in accordance with the Federal Aviation Act Laws and constitutes a
second priority Lien (subject only to the prior Lien under the Bank Credit
Documents) upon the “Collateral” (as such term is defined in the Aircraft
Security Agreement) in favor of Agent, and (z) all relevant parties have
complied with the Cape Town Convention as are reasonably requested by Agent and
Agent shall have received an opinion with respect thereto in form and
substance satisfactory to Agent; and (D) Agent shall have received
airworthiness certificates, any operating leases, and any and all other
material contracts related to the Fifth Aircraft and Engine, each of which
shall be satisfactory to Agent. If each of the First Cash Collateral Events
shall have occurred by the First Cash Collateral Events Deadline, each of the
Second Cash Collateral Events shall have occurred by the Second Cash Collateral
Events Deadline, each of the Third Cash Collateral Events shall have occurred
by the Third Cash Collateral Events Deadline, and no Event of Default has
occurred, then (a) Bank Credit Agent will, subject to the terms of the
Securities Account Control Agreement, as promptly as practicable, direct the
Securities Intermediary to transfer an amount equal to $10,000,000 of the First
Amendment Cash Collateral to the Designated Account (or to Bank Credit Agent,
who will transfer such amount as promptly as practicable to the Designated
Account) to finance the acquisition of the Fifth Aircraft and Engine,
and (b) the Additional Warrants shall immediately become exercisable in
accordance with their terms. If
any of the First Cash Collateral Events shall not have occurred by the First
Cash Collateral Events Deadline, any of the Second Cash Collateral Events shall
not have occurred by the Second Cash Collateral Events Deadline, any of the
Third Cash Collateral Events shall not have occurred by the Third Cash
Collateral Events Deadline, an Event of Default (that is not immediately waived
in writing by both the Agent and Bank Credit Agent) occurs, or if at any time
prior to the Third Cash Collateral Events Deadline Borrower shall provide
notice to Bank Credit Agent and Agent that it has determined not to purchase
the Fifth Aircraft and Engine or any other aircraft or engines in lieu thereof,
then (a) as promptly as practicable and, in any event, within two
Business Days after the earliest of (x) the deadline

 

7

 

date by which any such
event shall not have occurred, (y) the date on which Bank Credit Agent and
Agent receive such notice from Borrower, or (z) if an Event of Default (that is
not immediately waived in writing by Agent and Bank Credit Agent) has occurred,
the date on which Agent requests the release of such amount from Bank Credit
Agent, Bank Credit Agent will direct the Securities Intermediary to release an amount equal to $10,000,000 of the First
Amendment Cash Collateral and upon such release, Bank Credit Agent will as
promptly as practicable cause such amount to be transferred to Agent, for the
benefit of the Lenders, to repay, in part, the principal amount of the
Additional Term Loan, and (b) the Additional Warrants shall expire in
accordance with their terms on the 120th day following the First
Amendment Effective Date and automatically be of no further force or effect
after such date; provided, however, that the Additional Warrants
shall immediately become exercisable and shall not expire on such date if an
Additional Warrants Triggering Event occurs prior to such date. For the
avoidance of doubt, the Additional Warrants are not exercisable under their
terms unless and until an Additional Warrants Triggering Event shall have
occurred within 120 days of the First Amendment Effective Date. Notwithstanding
anything to the contrary set forth above in this Section 2.1(a)(v),
so long as $10,000,000 of the First Amendment Cash Collateral remains in the
First Amendment Cash Collateral Account, if Borrower notifies Agent that it has
determined to lease the Fifth Aircraft and Engine and that another comparable
aircraft and/or engine has become available for purchase, then upon approval by
the Required Lenders and satisfaction
of each of the Third Cash Collateral Events with respect to such aircraft or
engine, (a) Bank Credit
Agent will, subject to the terms of the Securities Account Control Agreement, as
promptly as practicable, direct the
Securities Intermediary to transfer an amount equal to $10,000,000 of the First
Amendment Cash Collateral to the Designated Account (or to Bank Credit Agent,
who will transfer such amount as promptly as practicable to the Designated
Account) to finance the acquisition of such comparable aircraft and/or engine,
and (b) the Additional Warrants shall immediately become exercisable in
accordance with their terms. Amounts
repaid pursuant to this Section 2.1(a)(v) may not be
reborrowed.

 

(c)                                  The
following new subsection (iv) is hereby added to Section 2.2(c) of
the Credit Agreement:

 

“(iv)                        Anything in Section 2.2(c)(i) or
any other section of this Agreement to the contrary notwithstanding,
immediately upon the consummation of a Permitted Ansett Sale-Leaseback
Transaction, Borrower shall prepay the outstanding principal balance of the
Term Loan plus any Term Loan Prepayment Fee in accordance with Section 2.2(e) in
an amount equal to the remaining portion, if any, of the Net Cash Proceeds
received by Parent, Borrower, or any of their respective Subsidiaries in
connection with such Permitted Ansett Sale-Leaseback Transaction after
application of such Net Cash Proceeds to the prepayment of the term loan under
the Bank Credit Agreement to the extent any such prepayment is required under
the terms thereof.”

 

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(d)                                 The
following new subsection (v) is hereby added to Section 2.2(c) of
the Credit Agreement:

 

“(v)                           Anything in Section 2.2(c) or
any other section of this Agreement to the contrary notwithstanding, at
any time from and after the occurrence of a Change of Control, each Lender
shall have the right to sell to Borrower all of such Lender’s Pro Rata Share of
the Term Loan at a price equal to 101% of the face value thereof plus accrued
and unpaid interest, if any, through the date of such sale.”

 

(e)                                  Section 2.3 of the
Credit Agreement is hereby amended and restated in its entirety as follows:

 

“(a)                            Interest Rate.  Except as
provided in clause (b) below, all Obligations shall bear interest at a per
annum rate equal to nine percent (9%).”

 

(f)                                    The
following new Section 2.7 is hereby added to the Credit
Agreement:

 

“2.7                           Securitization.  Each of Borrower and each Guarantor hereby
acknowledges that the Lenders and each of their Affiliates and Related Funds may sell
or securitize (a “Securitization”) the amounts borrowed hereunder (the “Borrowings”)
through the pledge of the Borrowings as collateral security for loans to such
Lenders or their Affiliates or Related Funds or through the sale of the Borrowings
or the issuance of direct or indirect interests in the Borrowings, which loans
to such Lenders or their Affiliates or Related Funds or direct or indirect
interests will be rated by Moody’s, Standard & Poor’s or one or more
other rating agencies (the “Rating Agencies”). Each of Borrower and each
Guarantor shall use commercially reasonable efforts to cooperate with such
Lenders and their Affiliates and Related Funds to effect the Securitization,
including by (a) amending this Agreement and the other Loan Documents, (b) executing
such additional documents, as reasonably requested by such Lenders in order to
effect the Securitization, provided  that (i) any such
cooperation, amendment, or additional documentation does not impose any
additional costs (other than de minimis
costs) on Borrower or any Guarantor, (ii) any such amendment or additional
documentation does not materially adversely affect the rights, or increase the
obligations, of Borrower or any Guarantor under the Loan Documents or change or
affect in a manner adverse to Borrower or any Guarantor the financial terms of
the Borrowings or add more restrictive covenants or defaults, and (iii) such
amendment or additional documentation does not require Borrower or any
Guarantor to (x) take any action which would be illegal or would breach any
contractual obligation of Borrower or any Guarantor existing prior to the First
Amendment Effective Date or (y) indemnify any Person other than the Agent and
the Lenders, (c) providing such information as may be reasonably
requested by such Lenders in connection with the rating of the Borrowings or
the Securitization, and (d) providing in connection with any rating of the
Borrowings a certificate (i) agreeing to indemnify such Lenders and any of
their Affiliates and Related Funds, any of the Rating Agencies, or any party
providing credit support

 

9

 

or
otherwise participating in the Securitization (collectively, the “Securitization
Parties”) for any losses, claims, damages or liabilities (the “Securitization
Liabilities”) to which such Lenders or any of their Affiliates or Related
Funds, or such Securitization Parties, may become subject insofar as the
Securitization Liabilities arise out of or are based upon a breach of the
representation and warranty contained in Section 4.18 (as if such
representation or warranty were made to the best of Borrower’s and each
Guarantor’s knowledge), and (ii) agreeing to reimburse such Lenders and
their Affiliates and Related Funds, and such Securitization Parties, for any
legal or other expenses reasonably incurred by such Persons in connection with
defending the Securitization Liabilities.

 

(g)                                 Section 3.2 of the
Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

“3.2                           Term.   This Agreement shall continue in full force and effect for a term
ending on March 11, 2011 (the “Maturity Date”), unless earlier
terminated in accordance with Section 8.”

 

(h)                                 Section 5.8(a) of
the Credit Agreement is hereby amended and restated in its entirety to read as
follows:

 

“5.8                           (a)                                  At
Borrower’s expense, maintain insurance respecting its and its Subsidiaries’
assets wherever located, covering loss or damage by fire, theft, explosion, and
all other hazards and risks as ordinarily are insured against by other Persons
engaged in the same or similar businesses (including all-risk ground coverage
of Spare Parts). Borrower also shall maintain business interruption, public
liability, aircraft public liability insurance (including (i) passenger
legal liability, and (ii) if such insurance is then generally carried by
major United States air carriers, aircraft war risk and allied perils insurance
in accordance with London form AVN52C (as in effect on September 1,
2001 or in accordance with the FAA’s Chapter 443 Aviation Insurance Policy as
in effect on the date hereof) or its equivalent form reasonably acceptable
to the Required Lenders)), cargo liability insurance, and war risk and allied
perils hull (including confiscation, expropriation, nationalization and seizure
by a government other than the United States), terrorist and hijacking
insurance, and product liability insurance, as well as insurance against
larceny, embezzlement, and criminal misappropriation. All such policies of
insurance shall be in such amounts, against such risks, in such form, and with
such insurance companies as are reasonably satisfactory to Required Lenders (it
being understood that (x) the insurance coverage reflected on the certificates
of insurance delivered to Agent on the Closing Date is acceptable to Agent and
(y) an insurance company with the same financial strength, credit rating, and
debt rating as the financial strength, credit rating, and debt rating, as of
the Closing Date, of the insurance company that issues the certificates of
insurance on the Closing Date is acceptable to Agent). All hull and spares
ground insurance shall be on an “agreed” value basis without right of
replacement. All deductibles shall be in an amount reasonably satisfactory to
the Required Lenders (it being understood that the deductibles reflected on the
certificates of insurance delivered to Agent on the Closing Date are acceptable
to

 

10

 

the Required Lenders). As
soon as practicable after receipt by Borrower thereof, Borrower shall deliver
copies of all such policies to Agent with an endorsement naming Agent as an
additional insured. Following the Discharge of First Lien Obligations, as soon
as practicable after receipt thereof, Borrower shall deliver copies of all such
policies naming Agent as sole loss payee (under a satisfactory lender’s loss
payable endorsement) or additional insured, as appropriate. Each policy of
insurance (except any policy of insurance placed with the FAA) or endorsement
shall contain a clause requiring the insurer to give not less than 30 days
prior written notice (7 in the case of war risk and allied perils coverage) to
Agent in the event of cancellation of the policy for any reason whatsoever.”

 

(i)                                     Section 6.4 of the
Credit Agreement is hereby amended and restated in its entirety to read as
follows:

 

“6.4                           Disposal
of Assets.   Other than Permitted Dispositions, the
Permitted Ansett Sale-Leaseback Transaction, the Permitted Mergers, and
Permitted Liens, convey, sell, lease, license, assign, transfer, or otherwise
dispose of any of Parent’s, Borrower’s or Borrower’s Subsidiaries assets.”

 

(j)                                     Section 6.14 of the
Credit Agreement is hereby amended and restated in its entirety to read as
follows:

 

“6.14                     Use of Proceeds.   Use the proceeds of the Term Loan for any
purpose other than (a) on the Closing Date, (i) to fund distributions
under the Plan of Reorganization, and (ii) to pay transactional fees,
costs, and expenses incurred in connection with the Plan of Reorganization,
this Agreement, the other Loan Documents, and the transactions contemplated
hereby and thereby, and (b) on or after the First Amendment Effective Date
in accordance with the terms of this Agreement, (i) to repay in full the
outstanding principal, accrued interest, and accrued fees and expenses owing to
the holders of the Subordinated Notes under the Subordinated Note Purchase
Agreement, Subordinated Notes and the other Subordinated Documents, (ii) to
refinance and refurbish the Designated Aircraft and Engines and the Fifth
Aircraft and Engine, and (iii) to pay transactional fees, costs, and
expenses incurred in connection with the foregoing transactions, the First
Amendment and the transactions contemplated thereby, and (c) thereafter,
consistent with the terms and conditions hereof, for its working capital and
other lawful and permitted purposes.”

 

(k)                                  Section 6.16(a)(ii) of
the Credit Agreement is hereby amended and restated in its entirety to read as
follows:

 

“(ii)                           Bank Excess Availability plus Bank Qualified Cash.   Solely with respect to Borrower and its
Subsidiaries, Bank Excess Availability plus Bank Qualified Cash at all times of
at least an amount equal to: (A) $50,000,000 during the period from and
after the execution and delivery of this Agreement up to (but not including)
the date that the outstanding principal amount of the term loan under the Bank
Credit Documents is less than or equal to $40,000,000 (the “Reduction Date”);
and (B) from and including the Reduction Date up to (but not

 

11

 

including)
the Maturity Date, an amount equal to (x) $50,000,000, minus
(y) the aggregate amount of amortized payments and optional prepayments in
respect of the term loan under the Bank Credit Documents that have been made
since the Reduction Date.”

 

(l)                                     Section 6.16(b) of
the Credit Agreement is hereby amended and restated in its entirety to read as
follows

 

“(b)                           Leverage Ratio.   Solely with respect to Borrower and its
Subsidiaries, a Leverage Ratio, measured on a quarter-end basis, of (i) not
more than 5.63:1.00 during the period from the First Amendment Effective Date
up to (but excluding) the one year anniversary of the First Amendment Effective
Date, (ii) not more than 5.23:1.00 during the period from the one year
anniversary of the First Amendment Effective Date up to (but excluding) the
second year anniversary of the First Amendment Effective Date, (iii) not
more than 4.83:1.00 during the period from the second year anniversary of the
First Amendment Effective Date up to (but excluding) the third year anniversary
of the First Amendment Effective Date, (iv) not more than 4.43:1.00 during
the period from the third year anniversary of the First Amendment Effective
Date up to (but excluding) the fourth year anniversary of the First Amendment
Effective Date, and (v) not more than 4.03:1.00 thereafter; provided,
however, that in the event any of the First Amendment Cash Collateral is
used to repay, in whole or in part, the First Lien Additional Term Loan and/or
the Additional Term Loan pursuant to Section 2.1(a)(iii), (iv) or
(v), the Leverage Ratio thresholds provided in this Section 6.16(b) shall
be adjusted as set forth in Schedule 6.16.”

 

(m)                               The
following new Section 6.17 is hereby added to the Credit Agreement:

 

“6.17                    Alternative Financing.   Solicit
or use any alternative source of financing for the purpose of prepaying the Subordinated Notes under the
Subordinated Note Purchase Agreement.”

 

(n)                                 Section 11 of the
Credit Agreement is hereby amended by deleting the address set forth therein
for Borrower and substituting therefor the following:

 

“HAWAIIAN AIRLINES, INC.

 

3575 Koapaka St., Ste. G-350

Honolulu, Hawaii 96819

Attn: Mark B. Dunkerley and Peter R. Ingram

Fax No. 808-835-3690”

 

(o)                                 Section 15.11(a) of
the Credit Agreement is hereby amended and restated in its entirety to read as
follows:

 

“15.11              (a)                                  All
payments made by Borrower hereunder or under any note or other Loan Document
will be made without setoff, counterclaim, or other defense. In addition, all
such payments will be made free and clear of, and

 

12

 

without deduction or
withholding for, any present or future Taxes, and in the event any deduction or
withholding of Taxes is required, Borrower shall comply with the penultimate
sentence of this Section 15.11(a). “Taxes” shall mean, any taxes,
levies, imposts, duties, fees, assessments or other charges of whatever nature
now or hereafter imposed by any jurisdiction or by any political subdivision or
taxing authority thereof or therein with respect to such payments (but
excluding any franchise tax and tax imposed by any jurisdiction or by any
political subdivision or taxing authority thereof or therein measured by or
based on the net income or net profits of any Lender) and all interest,
penalties or similar liabilities with respect thereto. If any Taxes are so
levied or imposed, Borrower agrees to pay the full amount of such Taxes and
such additional amounts as may be necessary so that every payment of all
amounts due under this Agreement, any note, or Loan Document, including any
amount paid pursuant to this Section 15.11(a) after
withholding or deduction for or on account of any Taxes, will not be less than
the amount provided for herein; provided, however, that Borrower
shall not be required to increase any such amounts if the increase in such
amount payable (i) results from Agent’s or such Lender’s own willful
misconduct or gross negligence (as finally determined by a court of competent
jurisdiction), (ii) results from an obligation by Agent or such Lender to
withhold, deduct, or pay such amount that existed prior to the date that Agent
or such Lender became a party to this Agreement, or (iii) results from
such Lender’s failure to comply with the provisions of Section 15.11(b).
Borrower will furnish to Agent and each Lender as promptly as possible after
the date the payment of any Tax is due pursuant to applicable law certified
copies of tax receipts evidencing such payment by Borrower.

 

(p)                                 Schedule C-1 of the
Credit Agreement is hereby amended by deleting such Schedule in its
entirety and replacing it with the Schedule C-1 that is attached as
Exhibit A hereto.

 

(q)                                 The new Schedule 6.16
attached hereto as Exhibit C is hereby added to the Credit Agreement
and made a part thereof.

 

3.               Conditions
Precedent to Amendment.   The satisfaction of each of the following
shall constitute conditions precedent to the effectiveness of this Amendment
and each and every provision hereof (the date of such effectiveness being
herein called the “First Amendment Effective Date”):

 

(a)                                  Agent
shall have received this Amendment, duly executed by the parties hereto, and
the same shall be in full force and effect.

 

(b)                                 The
Borrower shall have paid in full all fees, expenses and disbursements incurred
by Agent in connection with this Amendment, including, without limitation, the
reasonable fees, expenses and disbursements of Agent’s counsel.

 

(c)                                  Agent
shall have received (i) that certain Amendment Number Three to Credit
Agreement, dated as of the date hereof, among Parent, Borrower, Bank Credit
Agent and the Bank Credit Lenders, duly executed by the parties thereto, in
full force and effect,

 

13

 

(ii) that certain Amendment Number One to Fee Letter,
dated as of the date hereof, between Borrower and Bank Credit Agent, duly
executed by the parties thereto, in full force and effect, and in form and
substance reasonably satisfactory to Agent, and (iii) all other documents
related thereto, in each case, in form and substance reasonably
satisfactory to Agent.

 

(d)                                 Agent
shall have received evidence satisfactory to Agent that the First Lien Lenders
have funded not less than $43,750,000 into the First Amendment Cash Collateral
Account.

 

(e)                                  Agent
shall have received a flow of funds agreement, dated as of the date hereof,
among Agent, the Lenders, Bank Credit Agent, the Bank Credit Lenders, Parent
and Borrower, in full force and effect, and in form and substance
reasonably satisfactory to Agent.

 

(f)                                    Agent
shall have received the Securities Account Control Agreement with respect to
the First Amendment Cash Collateral Account, in full force and effect, and in form and
substance reasonably satisfactory to Agent.

 

(g)                                 The
representations and warranties herein and in the Credit Agreement and the other
Loan Documents shall be true and correct in all material respects on and as of
the date hereof, as though made on such date (except to the extent that such
representations and warranties relate solely to an earlier date).

 

(h)                                 No Default
or Event of Default shall have occurred and be continuing on the date hereof,
nor shall result from the consummation of the transactions contemplated herein.

 

(i)                                     No injunction, writ, restraining
order, or other order of any nature prohibiting, directly or indirectly, the
consummation of the transactions contemplated herein shall have been issued and
remain in force by any Governmental Authority against Borrower, any Guarantor,
Agent, or any Lender.

 

(j)                                     Each
Lender or its designated Affiliate shall have received (i) a First
Amendment Effective Date Warrant to purchase the common stock of Parent, dated
as of the date hereof, issued by Parent in favor of such Lender or Affiliate,
duly executed by Parent, in full force and effect, and (ii) a Registration
Rights Agreement, dated as of the date hereof, among Parent and the Lenders (or
their designated Affiliates, as the case may be), in full force and
effect, and in form and substance reasonably satisfactory to Agent.

 

4.     Release.
  Borrower
hereby waives, releases, remises and forever discharges each member of the
Lender Group, each of their respective Affiliates, and each of their respective
officers, directors, employees, and agents (collectively, the “Releasees”),
from any and all claims, demands, obligations, liabilities, causes of action,
damages, losses, costs and expenses of any kind or character, known or unknown,
past or present, liquidated or unliquidated, suspected or unsuspected, which
Borrower ever had, now has or might hereafter have against any such Releasee
which relates, directly or indirectly, to the Credit Agreement or any other
Loan Document, or to any acts or omissions of any such Releasee with respect to
the Credit Agreement or any other Loan Document, or to the lender-borrower
relationship evidenced by the Loan Documents. As to each and every claim
released hereunder, Borrower hereby represents

 

14

 

that it has received the advice of legal counsel with regard
to the releases contained herein, and having been so advised, Borrower
specifically waives the benefit of the provisions of Section 1542 of the
Civil Code of California which provides as follows:

 

“A
GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH A CREDITOR DOES NOT KNOW OR
SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF
KNOWN BY HIM, MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.”

 

As
to each and every claim released hereunder, Borrower also waives the benefit of
each other similar provision of applicable federal or state law, if any,
pertaining to general releases after having been advised by its legal counsel
with respect thereto.

 

5.     Representations
and Warranties.   Borrower represents and warrants to the Lender
Group that (a) the execution, delivery, and performance of this Amendment
and of the Credit Agreement, as amended hereby, (i) are within its powers,
(ii) have been duly authorized by all necessary action, and (iii) are
not in contravention of any law, rule, or regulation applicable to it, or any
order, judgment, decree, writ, injunction, or award of any arbitrator, court,
or Governmental Authority, or of the terms of its Governing Documents, or of
any contract or undertaking to which it is a party or by which any of its
properties may be bound or affected; (b) this Amendment and the
Credit Agreement, as amended hereby, are legal, valid and binding obligations
of Borrower, enforceable against Borrower in accordance with their respective
terms; and (c) no Default or Event of Default has occurred and is
continuing on the date hereof or as of the date upon which the conditions
precedent set forth herein are satisfied.

 

6.     Choice
of Law.   The validity of this Amendment, its
construction, interpretation and enforcement, the rights of the parties
hereunder, shall be determined under, governed by, and construed in accordance
with the laws of the State of New York.

 

7.     Counterpart Execution.   This
Amendment may be executed in any number of counterparts, all of which when
taken together shall constitute one and the same instrument, and any of the
parties hereto may execute this Amendment by signing any such counterpart.
Delivery of an executed counterpart of this Amendment by telefacsimile or
electronic mail shall be equally as effective as delivery of an original
executed counterpart of this Amendment. Any party delivering an executed
counterpart of this Amendment by telefacsimile or electronic mail also
shall deliver an original executed counterpart of this Amendment, but the
failure to deliver an original executed counterpart shall not affect the
validity, enforceability, and binding effect of this Amendment.

 

8.     Effect
on Loan Documents.

 

(a)                                  The Credit
Agreement, as amended hereby, and each of the other Loan Documents shall be and
remain in full force and effect in accordance with their respective terms and
hereby are ratified and confirmed in all respects. The execution, delivery, and
performance of this Amendment shall not operate, except as expressly set forth
herein, as a modification or waiver of any right, power, or remedy of Agent or
any Lender under the Credit Agreement or any other Loan Document. The waivers,
consents, and modifications herein are limited to the specifics hereof, shall
not apply with respect to any facts or occurrences other than those on which
the same are based, shall not excuse future non-compliance with the Loan

 

15

 

Documents, and shall not operate as a consent to any further
or other matter under the Loan Documents.

 

(b)                                 Upon and
after the effectiveness of this Amendment, each reference in the Credit
Agreement to “this Agreement”, “hereunder”, “herein”, “hereof” or words of like
import referring to the Credit Agreement, and each reference in the other Loan
Documents to “the Credit Agreement”, “thereunder”, “therein”, “thereof” or
words of like import referring to the Credit Agreement, shall mean and be a
reference to the Credit Agreement as modified and amended hereby.

 

(c)                                  To the
extent that any terms and conditions in any of the Loan Documents shall
contradict or be in conflict with any terms or conditions of the Credit
Agreement, after giving effect to this Amendment, such terms and conditions are
hereby deemed modified or amended accordingly to reflect the terms and
conditions of the Credit Agreement as modified or amended hereby.

 

(d)                                 This
Amendment is a Loan Document.

 

(e)                                  As
of the First Amendment Effective Date, each lender identified on the signature pages hereof
shall be a party to the Credit Agreement and, to the extent of its interest as
set forth on Exhibit A, shall have the rights and obligations of a Lender
thereunder and under the other Loan Documents.

 

9.     Entire
Agreement.  This Amendment embodies
the entire understanding and agreement between the parties hereto with respect
to the subject matter hereof and supersedes any and all prior or
contemporaneous agreements or understandings with respect to the subject matter
hereof, whether express or implied, oral or written.

 

10.   Agreement
Regarding Warrants.  The parties
hereto agree that for federal and state income tax purposes, the fair market
value of the Warrants will be determined by Parent, in consultation with Agent
based on the Black-Scholes method or other standard valuation methodology,
within 10 Business Days following the First Amendment Effective Date, and
Borrower will give notice to the Lenders of the value so determined, who hereby
agree to file all tax returns consistently with such determination.

 

[signature page follows]

 

16

 

IN
WITNESS WHEREOF, the parties have entered into this Amendment as of the date
first above written. 

 

	
   

  	
  HAWAIIAN HOLDINGS, INC., a Delaware

  corporation

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
						

 

 

	
   

  	
  HAWAIIAN AIRLINES, INC., a Delaware

  corporation

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
						

 

 

	
   

  	
  CANYON CAPITAL ADVISORS LLC,

  as Agent

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
						

 

 

	
   

  	
  CANPARTNERS INVESTMENTS IV, LLC,

  as a Lender

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

 

	
   

  	
  BERNARD NATIONAL LOAN INVESTORS,

  LTD., as a Lender

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Bernard Capital Funding, LLC

  its Investment Advisor

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

 

	
   

  	
  QVT FUND LP, as a Lender

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  its general partner, QVT Associates GP LLC

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

 

	
   

  	
  DEUTSCHE BANK AG, LONDON BRANCH,

  as a Lender

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  its investment manager, QVT Financial LP

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  its general partner, QVT Financial GP LLC

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

 

	
   

  	
  ORE HILL FUND L.P., as a Lender

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: Ore Hill Partners LLC

  Its: Investment Advisor

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

 

	
   

  	
  GOLDENTREE CAPITAL SOLUTIONS FUND

  FINANCING, as a
  Lender

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

 

	
   

  	
  CONTEXT CONVERTIBLE ARBITRAGE

  FUND, L.P., as a
  Lender

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

 

	
   

  	
  GOLDENTREE CAPITAL OPPORTUNITIES, LP,

  as a Lender

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

 

	
   

  	
  CONTEXT CONVERTIBLE ARBITRAGE

  OFFSHORE, LTD., as
  a Lender

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

 

EXHIBIT A

 

Schedule C-1

 

Commitments - Closing Date

 

	
  Lender

  	
   

  	
  Term Loan Commitment

  on the Closing Date*

  	
   

  	
  Attributable Share of the

  OID Amount

  	
   

  
	
  Canpartners Investments IV, LLC

  	
   

  	
  $

  	
  25,000,000

  	
   

  	
  $

  	
  250,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  All Lenders

  	
   

  	
  $

  	
  25,000,000

  	
   

  	
  $

  	
  250,000

  	
   

  

 

*The Term Loan Commitments
on the Closing Date terminated on the Closing Date.

 

 

Commitments – First Amendment
Effective Date

 

	
  Lender

  	
   

  	
  Outstanding

  Principal Balance

  of Term Loan on

  the First

  Amendment

  Effective Date

  	
   

  	
  Term Loan

  Commitment on

  the First

  Amendment

  Effective Date

  	
   

  	
  Attributable Share

  of the Additional

  OID Amount

  	
   

  	
  Total Outstanding

  Principal Balance

  of Term Loan and

  Term Loan

  Commitment on 

  the First

  Amendment

  Effective Date

  	
   

  
	
  Canpartners Investments
  IV, LLC

  	
   

  	
  $

  	
  25,000,000

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  25,000,000

  	
   

  
	
  Bernard National Loan
  Investors, Ltd.

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  5,000,000

  	
   

  	
  $

  	
  50,000

  	
   

  	
  $

  	
  5,000,000

  	
   

  
	
  QVT Fund LP

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  14,00,000

  	
   

  	
  $

  	
  140,000

  	
   

  	
  $

  	
  14,00,000

  	
   

  
	
  Deutsche Bank AG London

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  3,500,000

  	
   

  	
  $

  	
  35,000

  	
   

  	
  $

  	
  3,500,000

  	
   

  
	
  Ore Hill Fund LP

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  10,000,000

  	
   

  	
  $

  	
  100,000

  	
   

  	
  $

  	
  10,000,000

  	
   

  
	
  GoldenTree Capital
  Solutions Fund Financing

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  8,500,000

  	
   

  	
  $

  	
  85,000

  	
   

  	
  $

  	
  8,500,000

  	
   

  
	
  GoldenTree Capital
  Opportunities, LP

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  1,500,000

  	
   

  	
  $

  	
  15,000

  	
   

  	
  $

  	
  1,500,000

  	
   

  
	
  Context Convertible
  Arbitrage Fund, L.P.

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  1,200,000

  	
   

  	
  $

  	
  12,000

  	
   

  	
  $

  	
  1,200,000

  	
   

  
	
  Context Convertible
  Arbitrage Offshore, Ltd.

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  3,800,000

  	
   

  	
  $

  	
  38,000

  	
   

  	
  $

  	
  3,800,000

  	
   

  
	
  All Lenders

  	
   

  	
  $

  	
  25,000,000

  	
   

  	
  $

  	
  47,500,000

  	
   

  	
  $

  	
  475,000

  	
   

  	
  $

  	
  72,500,000

  	
   

  

 

 

EXHIBIT B

 

Aircraft and Engines

 

Aircraft

 

	
  Aircraft

  	
   

  	
  Aircraft Registration

  Number

  	
   

  	
  Aircraft Serial Number

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Boeing 767-332

  	
   

  	
  N116DL

  	
   

  	
  23275

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Boeing 767-332

  	
   

  	
  N117DL

  	
   

  	
  23276

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Boeing 767-332

  	
   

  	
  N118DL

  	
   

  	
  23277

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Boeing 767-332

  	
   

  	
  N119DL

  	
   

  	
  23278

  

 

Engines

 

	
  Engine

  	
   

  	
  Engine Serial Numbers

  	
   

  	
  Corresponding Aircraft

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  General Electric Model
  CF6-80A2

  	
   

  	
  580314

  580315

  	
   

  	
  N116DL

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  General Electric Model
  CF6-80A2

  	
   

  	
  580328

  580293

  	
   

  	
  N117DL

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  General Electric Model
  CF6-80A2

  	
   

  	
  580317

  580318

  	
   

  	
  N118DL

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  General Electric Model
  CF6-80A2

  	
   

  	
  580319

  580320

  	
   

  	
  N119DL

  

 

 

EXHIBIT C

 

Schedule 6.16

 

 

EXHIBIT D

 

Warrants

 

	
  Lender

  	
   

  	
  Term Loan

  Commitment After

  Giving Effect to the

  First Amendment

  	
   

  	
  Corresponding Warrantholder

  	
   

  	
  First

  Amendment

  Effective Date

  Warrants

  	
   

  	
  Additional

  Warrants

  	
   

  	
  Totals

  	
   

  
	
  Canpartners
  Investment IV, LLC

  	
   

  	
  $

  	
  25,000,000

  	
   

  	
  Hotel Alpha
  Holding Company, LLC(1)

  	
   

  	
  1,077,586

  	
   

  	
  172,414

  	
   

  	
  1,250,000

  	
   

  
	
  QVT Fund LP

  	
   

  	
  $

  	
  14,000,000

  	
   

  	
  QVT Fund LP

  	
   

  	
  603,448

  	
   

  	
  96,552

  	
   

  	
  700,000

  	
   

  
	
  Deutsche Bank AG
  London

  	
   

  	
  $

  	
  3,500,000

  	
   

  	
  Deutsche Bank AG
  London

  	
   

  	
  150,862

  	
   

  	
  24,138

  	
   

  	
  175,000

  	
   

  
	
  Ore Hill Fund LP

  	
   

  	
  $

  	
  10,000,000

  	
   

  	
  Ore Hill Fund LP

  	
   

  	
  431,034

  	
   

  	
  68,966

  	
   

  	
  500,000

  	
   

  
	
  GoldenTree
  Capital Solutions Fund Financing

  	
   

  	
  $

  	
  8,500,000

  	
   

  	
  GoldenTree
  Capital Solutions Fund Financing

  	
   

  	
  366,379

  	
   

  	
  58,621

  	
   

  	
  425,000

  	
   

  
	
  GoldenTree
  Capital Opportunities, L.P.

  	
   

  	
  $

  	
  1,500,000

  	
   

  	
  GoldenTree
  Capital Opportunities, L.P.

  	
   

  	
  64,655

  	
   

  	
  10,345

  	
   

  	
  75,000

  	
   

  
	
  Bernard National
  Loan Investors, Ltd.

  	
   

  	
  $

  	
  5,000,000

  	
   

  	
  D.B. Zwirn
  Special Opportunities Fund, L.P.

  	
   

  	
  215,517

  	
   

  	
  34,483

  	
   

  	
  250,000

  	
   

  
	
  Context
  Convertible Arbitrage Fund, L.P.

  	
   

  	
  $

  	
  1,200,000

  	
   

  	
  Context
  Convertible Arbitrage Fund, L.P.

  	
   

  	
  51,724

  	
   

  	
  8,276

  	
   

  	
  60,000

  	
   

  
	
  Context
  Convertible Arbitrage Offshore, Ltd.

  	
   

  	
  $

  	
  3,800,000

  	
   

  	
  Context
  Convertible Arbitrage Offshore, Ltd.

  	
   

  	
  163,793

  	
   

  	
  26,207

  	
   

  	
  190,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Totals

  	
   

  	
  $

  	
  72,500,000

  	
   

  	
   

  	
   

  	
  3,124,998

  	
   

  	
  500,002

  	
   

  	
  3,625,000

  	
   

  

 

(1) Hotel
Alpha Holding Company, LLC shall also receive warrants to purchase an
additional 425,000 shares of common stock of Parent as of the First Amendment
Effective Date.Exhibit 10.03

 

THE OFFER AND SALE OF THE
WARRANT REPRESENTED BY THIS CERTIFICATE AND THE UNDERLYING SHARES OF STOCK HAVE
NOT BEEN REGISTERED PURSUANT TO THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY
STATE SECURITIES LAW.  NEITHER THIS
WARRANT NOR THE UNDERLYING STOCK, NOR ANY PORTION THEREOF OR INTEREST THEREIN,
MAY BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS THE SAME IS REGISTERED
AND QUALIFIED IN ACCORDANCE WITH SAID ACT AND ANY APPLICABLE STATE SECURITIES
LAW, OR, IN THE OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY, SUCH
REGISTRATION AND QUALIFICATION ARE NOT REQUIRED.

 

	
  Warrant No.

  	
   

  	
   

  	
  March 13, 2006

  

 

WARRANT

to Purchase the Common Stock of 

Hawaiian Holdings, Inc.

 

THIS CERTIFIES THAT, for value received,                     
at the address set forth on the books and records of the Company, or registered
assigns, is entitled to purchase from Hawaiian Holdings, Inc., a Delaware
corporation, or any successor (the “Company”), in whole or in part, at a
purchase price of $5.00 per share (subject to adjustment as provided herein),
at any time, from and after the date hereof to and including March 13, 2009,                
shares of the fully paid and nonassessable Common Stock (as herein defined) (as
such number may be adjusted as provided herein).

 

The shares of Common Stock which may be purchased pursuant to this Warrant
are referred to herein as the “Aggregate Number”.  Certain terms used in this Warrant are defined
in Section 6.

 

This Warrant is being issued in connection with the provision of
additional credit by Holder under the Credit Agreement, as modified by an
amendment of even date herewith.

 

The number of shares of Common Stock purchasable hereunder (“Warrant
Shares”) is subject to adjustment as hereinafter set forth.  This Warrant is subject to the following
provisions, terms and conditions:

 

1.               (a)          Exercise of Warrant.  The rights represented by this Warrant may be
exercised by the Holder hereof, in whole or in part (but not as to a fractional
share of Common Stock), by (A) the delivery of this Warrant, together with a
properly completed Subscription Form in the form attached hereto, to the
principal office of the Company at 3375 Koapaka Street, Suite G-350, Honolulu,
HI 96819 (or to such other address as it may designate by notice in writing to
the Holder) and (B) payment to the Company of the Warrant Purchase Price for
the Warrant Shares being purchased (i) by cash or by certified check or bank
draft, (ii) as provided in Section 1(b) or (iii) any combination thereof.  The Company agrees that the shares so
purchased shall be deemed to be issued to the Holder as the record owner of
such shares as of the close of business on the date on which this Warrant shall
have been delivered to the Company and payment made for such shares as aforesaid.  Certificates for the shares so purchased
shall be delivered to the Holder 

 

 

within two (2) Business Days after the rights
represented by this Warrant shall have been so exercised, and, unless this
Warrant has expired, a new Warrant representing, and with an Aggregate Number
equal to, the number of Warrant Shares, if any, with respect to which this
Warrant shall not then have been exercised, in all other respects identical
with this Warrant, shall also be issued and delivered to the Holder within such
time, or, at the request of such Holder, appropriate notation may be made on
this Warrant and signed by the Company and the same returned to such Holder.

 

(b)         Exercise
by Reduction in Term Loan Amount.  In
lieu of paying cash as provided in Section 1(a), the Holder shall have the
right to exercise this Warrant by reducing the principal amount of such Holder’s
Term Loan (as defined in the Credit Agreement) by an amount equal to the
aggregate Warrant Purchase Price for the Warrant Shares being purchased
hereunder.

 

(c)         Exercise
at the Option of the Company.  If,
for a period of thirty (30) consecutive calendar days, the average closing
price of the Common Stock on the American Stock Exchange  (or, if the Common Stock is no longer listed
on the American Stock Exchange, on such other national securities exchange on
which the Common Stock is then listed or admitted to trading) is equal to or
greater than $9.00 per share, the Company shall have the right and option  (the “Forced Exercise Option”) to cause
the Holder to exercise all of its rights under this Warrant and to pay to the
Company the aggregate Warrant Purchase Price for all the Warrant Shares
represented by this Warrant.  The
Business Day immediately following such thirty (30) day period is referred to
herein as the “Forced Exercise Date.” 
To exercise the Forced Exercise Option, the Company must deliver to the
Holder at its principal offices, at any time after the Forced Exercise Date
(and provided that the Warrant Shares are covered by an effective registration
statement, and the disposition of such Warrant Shares is not restricted by the
blackout provisions contained in Section 2.05 of the Registration Rights
Agreement), a written notice of exercise of the Force Exercise Option (the “Forced
Exercise Notice”). Within ten (10) Business Days upon receipt of such
Forced Exercise Notice, the Holder shall elect to exercise this Warrant either
as set forth in Section 1(a) or Section 1(b) and shall submit a properly
completed Subscription Form to the Company. 
If the Holder fails to exercise this Warrant as so required by the end
of such ten (10) Business Day period, then this Warrant shall be deemed
cancelled and of no further force or effect, and all of Holder’s rights hereunder
shall automatically terminate without the necessity of any further action.

 

(d)         Transfer
Restriction Legend.  Each certificate
for Warrant Shares issued upon exercise of this Warrant, unless at the time of
exercise the offer and sale of such Warrant Shares are registered under the Securities
Act, shall bear the following legend (and any additional legend required by
applicable law or rule) on the face thereof:

 

The offer and sale
of the shares of stock represented hereby have not been registered pursuant to
the Securities Act of 1933, as amended, or any state securities law.  Neither these shares, nor any portion thereof
or interest therein, may be sold, transferred or otherwise disposed of unless
the same are registered and qualified in accordance with said Act and any
applicable state securities law, or, in the

 

1

 

opinion of counsel
reasonably satisfactory to the Company, such registration and qualification are
not required.

 

The
provisions of Section 2 shall be binding upon all holders of certificates for
Warrant Shares bearing the above legend and shall also be applicable to all
holders of this Warrant.

 

(e)         Expenses
and Taxes on Exercise.  The Company
shall pay all expenses, taxes and other charges payable in connection with the
preparation, execution and delivery of any stock certificates and substitute
Warrants pursuant to this Section 1, except that, in case such stock
certificates or Warrants shall be registered in a name or names other than the
name of the holder of this Warrant, funds sufficient to pay all stock transfer
taxes which shall be payable upon the execution and delivery of such stock
certificates or Warrants shall be paid by the Holder to the Company at the time
the Company delivers such stock certificates or Warrants to the Company for
exercise.

 

2.               (a)          Warrants and Warrant Shares Not
Registered; Transferee Restrictions. 
Each Holder, by acceptance thereof, represents and acknowledges that the
offer and sale of this Warrant and the Warrant Shares which may be purchased
upon exercise of this Warrant are not being registered under the Securities
Act, that the issuance of this Warrant and the offering and sale of such
Warrant Shares are being made in reliance on the exemption from registration
under Section 4(2) of the Securities Act as not involving any public offering
and that the Company’s reliance on such exemption is predicated in part on the
representations made by the initial Holder of this Warrant to the Company that
such Holder (i) is acquiring this Warrant for investment purposes for its own
account, with no present intention of reselling or otherwise distributing the
same in violation of the Securities Act, subject, nevertheless, to any
requirement of law that the disposition of its property shall at all times be within
its control, (ii) is an “accredited investor” as defined in Regulation D under
the Securities Act and (iii) has such knowledge and experience in financial and
business matters that it is capable of evaluating the merits and risks of the
investments made or to be made in connection with the acquisition and exercise
of this Warrant.  Neither this Warrant
nor the related Warrant Shares may be transferred except pursuant to an
effective registration statement under the Securities Act or upon the conditions
specified in Section 2(b).

 

(b)         Notice
of Transfer, Opinion of Counsel. 
Each Holder, by acceptance hereof, agrees that prior to the disposition
of this Warrant or of any Warrant Shares, other than pursuant to an effective
registration under the Securities Act, such Holder will give written notice to
the Company expressing such Holder’s intention to effect such disposition and
describing briefly such Holder’s intention as to the manner in which this
Warrant or the Warrant Shares theretofore issued or thereafter issuable upon
exercise hereof, are to be disposed together with an opinion of counsel as may
be designated by such Holder and reasonably satisfactory to the Company as to
the necessity or non-necessity of registration under the Securities Act.  If in the opinion of such counsel, the
proposed disposition does not require registration under the Securities Act of
the disposition of this Warrant and/or the Warrant Shares issuable or issued
upon the exercise of this Warrant, such Holder shall be entitled to dispose of
this Warrant and/or the Warrant Shares theretofore issued upon the exercise
hereof, all in accordance with the terms of the notice delivered by such Holder
to the Company.  The Company is entitled
to rely on the most recent written notice from the Holder with respect to the
ownership of the Warrant.

 

2

 

3.           Representations,
Warranties and Covenants of the Company.

 

(a)                                  The Company hereby represents and
warrants that:

 

(A)          The Company has full corporate power
and authority to execute and deliver this Warrant.

 

(B)           The execution and delivery of this
Warrant and the consummation by the Company of the transactions contemplated
hereby have been duly and validly approved by all necessary corporate action on
the part of the Company.

 

(C)           This Warrant has been duly executed
and delivered by the Company and constitutes the legal, valid and binding
obligation of the Company, enforceable in accordance with its terms.

 

(D)          The Holder of this Warrant, when such
Warrant is issued by the Company to such Holder, shall have good title thereto
free from all taxes, liens and charges with respect to the issuance thereof.

 

(b)                                 The Company covenants and agrees that:

 

(A)          Reservation of Shares.  During the period within which the rights
represented by this Warrant may be exercised, the Company will have at all
times authorized, and reserved for the purpose of issue or transfer upon
exercise of the rights evidenced by this Warrant, a sufficient number of shares
of the Common Stock to provide therefore.

 

(B)           Issuance of Shares.  The Warrant Shares issued pursuant to the
exercise of this Warrant will, upon issuance, be duly and validly issued, fully
paid and nonassessable and the Holder of such Warrant Shares shall have good title
to such Warrant Shares free from all taxes, liens and charges with respect to
the issuance thereof.

(C)           Listing on Securities Exchanges.  The Company promptly will procure at its sole
expense the listing (subject to issuance or notice of issuance) of all Warrant
Shares, following registration of such Warrant Shares under the Securities Act,
on all stock exchanges on which the shares of Common Stock are then listed.

 

4.           Participation
in Distributions of Common Stock and Certain Adjustments.

 

Under certain conditions, the Aggregate Number is subject to adjustment
as set forth in this Section 4.  No
adjustments shall be made under this Section 4 as a result of the issuance
by the Company of the Warrant Shares upon exercise of this Warrant.

 

(a)        Adjustments.  The Aggregate Number, after taking into
consideration any prior adjustments pursuant to this Section 4, shall be
subject to adjustment from time to time as follows

 

3

 

and, thereafter, as adjusted, shall be deemed to be
the Aggregate Number hereunder.  No
adjustment shall be made under this Section 4(a) upon the issuance of
Convertible Securities or Common Stock issuable upon exercise or conversion of
such Convertible Securities if an adjustment shall previously have been made
upon the issuance of such Convertible Securities pursuant to Section 4(c).

 

(i)            Stock Dividends;
Subdivisions and Combinations.  In
case at any time or from time to time the Company shall:

 

(A)          issue to the holders of the Common
Stock a dividend payable in, or other distribution of, Common Stock (a “Stock
Dividend”),

 

(B)           subdivide its outstanding shares of
Common Stock into a larger number of shares of Common Stock, including without
limitation by means of a stock split (a “Stock Subdivision”), or

 

(C)           combine its outstanding shares of
Common Stock into a smaller number of shares of Common Stock (a “Stock
Combination”), then the Aggregate Number in effect immediately prior
thereto shall be (1) proportionately increased in the case of a Stock Dividend
or a Stock Subdivision and (2) proportionately decreased in the case of a Stock
Combination.  In the event the Company
shall declare or pay, without consideration, any dividend on the Common Stock
payable in any right to acquire Common Stock for no consideration, then the
Company shall be deemed to have made a Stock Dividend in an amount of shares
equal to the maximum number of shares issuable upon exercise of such rights to
acquire Common Stock.

 

(ii)           Other
Distributions.  In case at any time
or from time to time the Company shall take a record of the holders of the
Common Stock for the purpose of entitling them to receive any dividend or other
distribution, other than a distribution of Common Stock, Convertible Securities
or options, warrants or other rights to subscribe for or purchase any
Convertible Securities (collectively, a “Distribution”), of:

 

(A)          Cash (other than regular quarterly
dividends payable out of current consolidated earnings);

 

(B)           any evidences of its indebtedness,
any shares of its Capital Stock (other than Common Stock) or any other
securities or property of any nature whatsoever (other than cash); or

 

(C)           any options, warrants or other rights
to subscribe for or purchase any of the following: any evidences of its indebtedness,
any shares of its Capital Stock (other than Common Stock) or any other
securities or property of any nature whatsoever (other than cash),

 

4

 

then the Holder shall be entitled to receive such Distribution as if
the Holder had fully exercised this Warrant upon the exercise of this Warrant
at any time on or after the taking of such record, the number of Warrant Shares
to be received upon exercise of this Warrant determined as stated herein and,
in addition and without further payment, the cash, evidences of indebtedness,
stock, securities, other property, options, warrants and/or other rights (or
any portion thereof) to which the Holder would have been entitled by way of
such Distribution and subsequent dividends and distributions through the date
of exercise as if such Holder (x) had fully exercised this Warrant immediately
prior to such Distribution and (y) had retained the Distribution in respect of
the Common Stock and all subsequent dividends and distributions of any nature
whatsoever in respect of any stock or securities paid as dividends and
distributions and originating directly or indirectly from such Common Stock.

 

A reclassification of the Common Stock into shares of
Common Stock and shares of any other class of stock shall be deemed a
Distribution by the Company to the holders of the Common Stock of such shares
of such other class of stock and, if the outstanding shares of Common Stock
shall be changed into a larger or smaller number of shares of Common Stock as a
part of such reclassification, such event shall be deemed a Stock Subdivision
or Stock Combination, as the case may be, of the outstanding shares of Common
Stock within the meaning of Section 4(a)(i) hereof.

 

(iii)          Issuance of
Common Stock.  If at any time or from
time to time the Company shall (except as hereinafter provided in this Section
4(a)(iii)) issue or sell any additional shares of Common Stock for a
consideration per share less than the Fair Market Value, then, effective on the
date specified below, the Aggregate Number shall be adjusted by multiplying (A)
the Aggregate Number immediately prior thereto by (B) a fraction, the numerator
of which shall be the sum of the number of shares of Common Stock outstanding
immediately prior to the issuance of such additional shares of Common Stock
(calculated on a Fully Diluted basis) and the number of such additional shares
of Common Stock so issued and the denominator of which shall be the sum of the
number of shares of Common Stock outstanding immediately prior to the issuance
of such additional shares of Common Stock (calculated on a Fully Diluted basis)
and the number of shares of Common Stock which the aggregate consideration for
the total number of such additional shares of Common Stock so issued would
purchase at the Fair Market Value.  The
date as of which the Fair Market Value shall be computed shall be the earlier
of the date on which the Company shall enter into a firm contract or commitment
for the issuance of such additional shares of Common Stock or the date of
actual issuance of such additional shares of Common Stock.

 

The provisions of this Section 4(a)(iii) shall
not apply to any issuance of additional shares of Common Stock for which an
adjustment is otherwise provided under

 

5

 

Section 4(a)(i) hereof.  No adjustment of the Aggregate Number shall
be made under this Section 4(a)(iii) upon:

 

(A)          the issuance of any additional shares
of Common Stock which are issued pursuant to (x) the exercise of other
subscription or purchase rights or (y) the exercise of any conversion or
exchange rights in any Convertible Securities, provided that for purposes of
clauses (x) or (y) an adjustment shall previously have been made upon the
issuance of such other rights or upon the issuance of such Convertible
Securities pursuant to Section 4(a)(iv) or (v) hereof or no such
adjustment shall have been required upon the issuance of such other rights or
Convertible Securities;

 

(B)                                the
issuance of Common Stock in any merger or other acquisition of a business or
Person approved by the Board of Directors of the Company;

 

(C)                                the
issuance of Common Stock in a Qualified Public Offering;

 

(D)                               the
issuance of up to 1,500,000 shares of Common Stock issuable to employees of
Hawaiian Airlines, Inc. pursuant to the Hawaiian Airlines, Inc. Stock Bonus
Plan;

 

(E)                                 the
issuance of shares of Common Stock upon the exercise of stock options or other
awards made or denominated in shares of Common Stock under the Company’s 2005
Stock Incentive Plan or any of the Company’s other stock plans including any
stock option, stock purchase, restricted stock or similar plan hereafter
adopted by the Board of Directors of the Company and, if required by applicable
law or stock exchange requirement, approved by the stockholders of the Company;

 

(F)                                 the
issuance of Common Stock on exercise or conversion of Convertible Securities
outstanding on the Closing Date; or

 

(G)                                the
issuance of Common Stock pursuant to Convertible Securities to financial
institutions or similar entities in transactions approved by the Board of
Directors of the Company, the principal purpose of which is not raising capital
through the sale of equity securities.

 

(iv)          Warrants and
Options.  If at any time or from time
to time the Company shall take a record of the holders of the Common Stock for
the purpose of entitling them to receive a distribution of, or shall in any
manner (whether directly, by assumption in a merger in which the Company is the
surviving corporation and in which the shareholders of the Company immediately
prior to the merger continue to own more than fifty percent (50%) of the
outstanding Common Stock immediately after the merger and for a period of one
hundred eighty (180) days thereafter, or otherwise) issue or sell any warrants,
options or other rights to subscribe for

 

6

 

or purchase,
directly or indirectly, any Convertible Securities, whether or not the rights
to subscribe, purchase, exchange or convert thereunder are immediately
exercisable, and the consideration per share for which additional shares of
Common Stock may at any time thereafter be issuable pursuant to such warrants,
options or other rights or pursuant to the terms of such Convertible Securities
shall be less than the Fair Market Value, then the Aggregate Number shall be
adjusted as provided in Section 4(a)(iii) hereof on the basis that (A) the
maximum number of additional shares of Common Stock issuable pursuant to all
such warrants, options or other rights or necessary to effect the conversion or
exchange of all such Convertible Securities shall be deemed to have been issued
as of the date of the determination of the Fair Market Value as hereinafter
provided and (B) the aggregate consideration for such maximum number of
additional shares of Common Stock shall be deemed to be the minimum
consideration received and receivable by the Company for the issuance of such
additional shares of Common Stock pursuant to the terms of such warrants, options
or other rights or such Convertible Securities. 
For purposes of this Section 4(a)(iv), the effective date of such
adjustment and the date as of which the Fair Market Value shall be computed
shall be the earliest of (x) the date on which the Company shall take a record
of the holders of the Common Stock for the purpose of entitling them to receive
any such warrants, options or other rights, (y) the date on which the Company
shall enter into a firm contract or commitment for the issuance of such warrants,
options or other rights and (z) the date of actual issuance of such warrants,
options or other rights.

 

No adjustment of the Aggregate Number shall be made
under this Section 4(a)(iv) upon:

 

(A)          the issuance of any warrants, options
or other rights which are issued pursuant to the exercise of any warrants,
options or other rights if an adjustment shall have been made or is
contemporaneously made or if no such adjustment shall have been required upon
the issuance of such warrants, options or other rights, pursuant to this
Section 4(a)(iv);

 

(B)           the issuance of warrants, options or
other rights to subscribe for or purchase Convertible Securities in any merger
or other acquisition of a business or Person approved by the Board of Directors
of the Company;

 

(C)           the issuance of warrants, options or
other rights to subscribe for or purchase shares of Common Stock or other
awards made or denominated in shares of Common Stock under the Company’s 2005
Stock Incentive Plan or any of the Company’s other stock plans including any
stock option, stock purchase, restricted stock or similar plan hereafter
adopted by the Board of Directors of the Company and, if required by applicable
law or stock exchange requirement, approved by the stockholders of the Company;
or

 

8

 

(D)          the issuance of options, warrants or
other rights to subscribe for or purchase Convertible Securities to financial
institutions or similar entities in transactions approved by the Board of
Directors of the Company, the principal purpose of which is not raising capital
through the sale of equity securities.

 

(v)           Convertible
Securities.  If at any time or from
time to time the Company shall take a record of the holders of the Common Stock
for the purpose of entitling them to receive a distribution of or shall in any
manner (whether directly, by assumption in a merger in which the Company is the
surviving corporation and in which the shareholders of the Company immediately
prior to the merger continue to own more than fifty percent (50%) of the
outstanding Common Stock immediately after the merger and for a period of one
hundred eighty (180) days thereafter, or otherwise) issue or sell Convertible
Securities, whether or not the rights to exchange or convert thereunder are
immediately exercisable, and the consideration per share for the additional
shares of Common Stock which may at any time thereafter be issuable pursuant to
the terms of such Convertible Securities shall be less than the Fair Market
Value, then the Aggregate Number shall be adjusted as provided in
Section 4(a)(iii) hereof on the basis that (A) the maximum number of
additional shares of Common Stock necessary to effect the conversion or
exchange of all such Convertible Securities shall be deemed to have been issued
as of the date of the determination of the Fair Market Value as herein provided
and (B) the aggregate consideration for such maximum number of additional
shares of Common Stock shall be deemed to be the minimum consideration received
and receivable by the Company for the issuance of such additional shares of
Common Stock pursuant to the terms of such Convertible Securities.  For purposes of this Section 4(a)(v), the
effective date of such adjustment and the date as of which the Fair Market
Value shall be computed shall be the earliest of (x) the date on which the
Company shall take a record of the holders of the Common Stock for the purpose
of entitling them to receive any such Convertible Securities, (y) the date on
which the Company shall enter into a firm contract or commitment for the
issuance of such Convertible Securities and (z) the date of actual issuance of
such Convertible Securities.

 

No adjustment of the Aggregate Number shall be made
under this Section 4(a)(v) upon:

 

(A)          the issuance of any Convertible
Securities which are issued pursuant to the exercise of any warrants, options
or other subscription or purchase rights if an adjustment shall previously have
been made or is contemporaneously made or if no such adjustment shall have been
required upon the issuance of such warrants, options or other rights pursuant
to Section 4(a)(iv) hereof;

 

9

 

(B)           the issuance of Convertible
Securities in any merger or other acquisition of a business or Person approved
by the Board of Directors of the Company;

 

(C)           the issuance of Convertible
Securities upon the exercise, conversion or the extension of the term of
Convertible Securities outstanding on the Closing Date or the cancellation and
reissuance with identical terms and conditions except for a longer term of any
such Convertible Securities outstanding on the Closing Date; or

 

(D)          the issuance of Convertible Securities
to financial institutions or similar entities in transactions approved by the Board
of Directors of the Company, the principal purpose of which is not raising
capital through the sale of equity securities.

 

(vi)          Subsequent
Adjustments.  If at any time after
any adjustment of the Aggregate Number shall have been made pursuant to Section 4(a)
(iv) or (v) hereof on the basis of the issuance of warrants, options or other
rights or the issuance of Convertible Securities, or after any new adjustments
of the Aggregate Number shall have been made pursuant to this Section 4(a)(vi),
then:

 

(A)          such warrants, options or rights or
the right of conversion or exchange in such Convertible Securities shall
expire, and all or a portion of such warrants, options or rights, or the right
of conversion or exchange in respect of all or a portion of such Convertible
Securities, as the case may be, shall not have been exercised prior to such
expiration, then

 

(B)           such previous adjustment shall be
rescinded and annulled and the additional shares of Common Stock which were
deemed to have been issued by virtue of the computation made in connection with
such adjustment shall no longer be deemed to have been issued by virtue of such
computation;

 

(C)           simultaneously therewith, a
recomputation shall be made of the effect of such warrants, options or rights
or Convertible Securities on the determination of the Aggregate Number, which
shall be made on the basis of treating the number of additional shares of
Common Stock, if any, theretofore actually issued pursuant to any previous
exercise of such warrants, options or rights or such right of conversion or
exchange as having been issued on the date or dates of such exercise and, in
the case of a recomputation of a calculation originally made pursuant to
Section 4(a)(iv) or (v), for the consideration actually received and receivable
therefor;

 

and, if and to the extent called for by the foregoing
provisions of Section 4(a)(vi) on the basis aforesaid, a new adjustment of
the Aggregate Number shall be made, such new adjustment shall supersede the
previous adjustment so rescinded and annulled.

 

10

 

(vii)         Miscellaneous.  The following provisions shall be applicable
to the making of adjustments of the Aggregate Number provided above in this
Section 4(a):

 

(A)          Whenever the Aggregate Number is
adjusted pursuant to this Section 4(a), the Warrant Purchase Price per Warrant
Share payable upon exercise of this Warrant shall be adjusted by multiplying
the Warrant Purchase Price immediately prior to such adjustment by a fraction,
the numerator of which shall be the Aggregate Number prior to such adjustment,
and the denominator of which shall be the Aggregate Number following such
adjustment.

 

(B)           The sale or other disposition of any
issued shares of Common Stock owned or held by or for the account of the
Company or any of its Subsidiaries shall be deemed an issuance thereof for the
purposes of this Section 4(a).

 

(C)           To the extent that any additional
shares of Common Stock or any Convertible Securities or any warrants, options
or other rights to subscribe for or purchase any Convertible Securities (1) are
issued solely for cash consideration, the consideration received by the Company
therefor shall be deemed to be the amount of the cash received by the Company
therefor or (2) are offered by the Company for subscription, the consideration
received by the Company shall be deemed to be the subscription price, in any
such case excluding any amounts paid or receivable for accrued interest or
accrued or accumulated  dividends.  To the extent that such issuance shall be for
a consideration other than cash, or partially for cash and partially for other
consideration, then the amount of such consideration shall be deemed to be the
fair market value of such other consideration plus, if applicable, the amount
of such cash at the time of such issuance, determined in the manner set forth
in Section 4(d)(ii).  In case any
additional shares of Common Stock or any Convertible Securities or any
warrants, options or other rights to subscribe for or purchase any Convertible
Securities shall be issued in connection with any merger in which the Company
is the survivor and issues any securities, the amount of consideration therefor
shall be deemed to be the fair market value of such additional shares of Common
Stock, Convertible Securities, warrants, options or other rights, as the case
may be, determined in the manner set forth in Section 4(d)(ii).

 

The consideration for any shares of Common Stock
issuable pursuant to the terms of any Convertible Securities shall be equal to
(x) the consideration received by the Company for issuing any warrants, options
or other rights to subscribe for or purchase such Convertible Securities, plus
(y) the consideration paid or payable to the Company in respect of the
subscription for or purchase of such Convertible Securities, plus (z) the
consideration, if any, payable to the Company upon the exercise of the right of
conversion or exchange of such Convertible Securities.

 

11

 

In case of the issuance at any time of any additional
shares of Common Stock or Convertible Securities in payment or satisfaction of
any dividend upon any class of stock other than Common Stock or interest on any
indebtedness, the Company shall be deemed to have received for such additional
shares of Common Stock or Convertible Securities a consideration equal to the
amount of such dividend or interest so paid or satisfied.

 

(D)          The adjustments required by the
preceding paragraphs of this Section 4(a) shall be made whenever and as
often as any specified event requiring an adjustment shall occur, except that
no adjustment of the Aggregate Number that would otherwise be required shall be
made if the amount of such adjustment shall be less than one percent (1%) of
the number of Warrant Shares issuable upon exercise of the Warrants immediately
prior to such adjustment.  Any adjustment
representing a change of less than such minimum amount (except as aforesaid)
shall be carried forward and made as soon as such adjustment, together with
other adjustments required by this Section 4(a) and not previously made,
would result in a minimum adjustment. 
For the purpose of any adjustment, any specified event shall be deemed
to have occurred at the close of business on the date of its occurrence.

 

(E)           In computing adjustments under this
Section 4(a), fractional interests in Common Stock shall be taken into
account to the nearest one-thousandth of a share.

 

(F)           If the Company shall take a record of
the holders of the Common Stock for the purpose of entitling them to receive a
dividend or distribution or subscription or purchase rights and shall,
thereafter and before the distribution to shareholders thereof, legally abandon
its plan to pay or deliver such dividend, distribution, subscription or
purchase rights, then no adjustment shall be required by reason of the taking
of such record and any such adjustment previously made in respect thereof shall
be rescinded and annulled.

 

(b)       Changes
in Common Stock.  In case at any time
the Company shall initiate any transaction or be a party to any transaction
(including, without limitation, a merger, consolidation, share exchange, sale,
lease or other disposition of all or substantially all of the Company’s assets,
liquidation, recapitalization or reclassification of the Common Stock) in
connection with which the previous outstanding Common Stock shall be changed
into or exchanged for different securities of the Company or Capital Stock or
other securities of another corporation or interests in a non-corporate entity
or other property (including cash) or any combination of the foregoing (each
such transaction being herein called a “Transaction”), then, as a
condition of the consummation of the Transaction and without duplication of any
adjustment made pursuant to Section 4(a)(i), lawful, enforceable and
adequate provision shall be made so that the Holder shall be entitled to
receive upon exercise of this Warrant at any time on or after the consummation
of the Transaction, in lieu of the Warrant Shares issuable upon such exercise
prior to such consummation, the securities or other property (including cash)
to which such Holder would have been entitled upon consummation of the
Transaction if such Holder had exercised this Warrant immediately prior thereto
(subject to adjustments from and after the consummation date, other

 

12

 

than in the case of a
Transaction in which Common Stock was exchanged solely for cash, as nearly
equivalent as possible to the adjustments provided for in this Section 4).  The foregoing provisions of this Section 4(b)
shall similarly apply to successive Transactions.

 

(c)         Other
Action Affecting Capital Stock.  In
case at any time or from time to time the Company shall take any action of the
type contemplated in Section 4(a) or (b) hereof but not expressly provided for
by such provisions (other than the granting of stock appreciation rights,
phantom stock rights or other rights with equity features) other than cash
bonuses, then, unless in the opinion of the Company’s Board of Directors such
action will not have a material adverse effect upon the rights of the Holder
(taking into consideration, if necessary, any prior actions which the Company’s
Board of Directors deemed not to materially adversely affect the rights of the
Holder), the Aggregate Number shall be adjusted in such manner and at such time
as the Company’s Board of Directors may in good faith determine to be equitable
in the circumstances.

 

(d)         Notices.

 

(i)          Notice of Proposed
Actions.  In case the Company shall
propose (A) to pay any dividend payable in stock of any class to the holders of
the Common Stock or to make any other distribution to the holders of the Common
Stock, (B) to offer to the holders of the Common Stock rights to subscribe for
or to purchase any Convertible Securities or additional shares of Common Stock
or shares of stock of any class or any other securities, warrants, rights or
options, (other than the exercise of pre-emptive rights by such a holder) (C) to
effect any reclassification of the Common Stock, (D) to effect any
recapitalization, stock subdivision, stock combination or other capital
reorganization, (E) to effect any consolidation or merger, share exchange, or
sale, lease or other disposition of all or substantially all of its property,
assets or business, (F) to effect the liquidation, dissolution or winding up of
the Company, or (G) to effect any other action which would require an
adjustment under this Section 4, then in each such case the Company shall
give to the Holder written notice of such proposed action, which shall specify
the date on which a record is to be taken for the purposes of such stock
dividend, stock subdivision, stock combination, distribution or rights, or the
date on which such reclassification, recapitalization, reorganization,
consolidation, merger, share exchange, sale, lease, transfer, disposition,
liquidation, dissolution, winding up or other transaction is to take place and
the date of participation therein by the holders of Common Stock, if any such
date is to be fixed, or the date on which the transfer of Common Stock is to
occur, and shall also set forth such facts with respect thereto as shall be
reasonably necessary to indicate the effect of such action on the Common Stock
and on the Aggregate Number after giving effect to any adjustment which will be
required as a result of such action. 
Such notice shall be so given in the case of any action covered by
clause (A) or (B) above at least ten (10) days prior to the record date for
determining holders of the Common Stock for purposes of such action and, in the
case of any other such action, at least ten (10) days prior to the earlier of
the date of

 

13

 

the taking of such
proposed action or the date of participation therein by the holders of Common
Stock.

 

(ii)           Adjustment
Notice.  Whenever the Aggregate
Number is to be adjusted pursuant to this Section 4, unless otherwise agreed by
the Holder, the Company shall promptly (and in any event within twenty (20)
Business Days after the event requiring the adjustment) prepare a certificate
signed by the Chief Financial Officer of the Company, setting forth, in
reasonable detail, the event requiring the adjustment and the method by which
such adjustment is to be calculated.  The
Company shall keep at its principal office copies of all such certificates and
cause the same to be available for inspection at said office during normal
business hours by the Holder or any prospective purchaser of the Warrant (in
whole or in part) if so designated by the Holder.

 

5.             No Dilution or
Impairment.  The Company will not, by
amendment of its Certificate of Incorporation or through any reorganization,
recapitalization, transfer of assets, consolidation, merger, share exchange,
dissolution or any other voluntary action, avoid or seek to avoid the
observance or performance of any of the terms of this Warrant, including,
without limitation, the adjustments required under Section 4 hereof, and will
at all times in good faith assist in the carrying out of all such terms and in
taking of all such action as may be necessary or appropriate to protect the
rights of the Holder against dilution or other impairment.  Without limiting the generality of the
foregoing and notwithstanding any other provision of this Warrant to the
contrary (including by way of implication), the Company (a) will not increase
the par value of any shares of Common Stock receivable on the exercise of this
Warrant above the amount payable therefor on such exercise or (b) will take all
such action as may be necessary or appropriate so that the Company may validly
and legally issue fully paid and nonassessable shares of Common Stock on the
exercise of this Warrant.

 

6.             Definitions.  The terms defined in this Section 6, whenever
used in this Warrant, shall, unless the context otherwise requires, have the
respective meanings hereinafter specified:

 

(a)        “Aggregate
Number” shall have the meaning set forth in the recitals hereto.

 

(b)       “Business
Day” shall mean any day other than a Saturday, Sunday or other day on which
commercial banks in The City of New York are authorized or required by law or
executive order to close.

 

(c)        “Capital
Stock” shall mean (a) with respect to any Person that is a corporation, any
and all shares, interests or equivalents in capital stock (whether voting or
nonvoting, and whether common or preferred) of such corporation, and (b) with
respect to any Person that is not a corporation, any and all partnership,
membership, limited liability company or other equity interests of such Person
that confer on a Person the right to receive a share of the profits and losses
of, or the distribution of assets of, the issuing Person; and in each case, any
and all warrants, rights or options to purchase, and all conversion or exchange
rights, voting rights, calls or rights of any character with respect to, any of
the foregoing, including, without limitation, any rights in respect of any
change in the value of any of the foregoing, including stock appreciation

 

14

 

rights and similar
interests.

 

(d)       “Closing
Date” shall mean March 13, 2006.

 

(e)        “Common
Stock” shall mean the Common Stock, par value $.01 per share, of the
Company or any other Capital Stock of the Company into which such stock is
reclassified or reconstituted.

 

(f)        “Company”
shall have the meaning set forth in the introductory paragraph hereto.

 

(g)       “Convertible
Securities” shall mean evidences of indebtedness, shares of stock or other
securities (including, without limitation, options and warrants) which are
directly or indirectly convertible, exercisable or exchangeable, with or
without payment of additional consideration in cash or property, for shares of
Common Stock, either immediately or upon the onset of a specified date or the
happening of a specified event.

 

(h)       “Credit
Agreement” shall mean that certain Credit Agreement, dated June 2, 2005 (as
amended, restated, supplemented or otherwise modified from time to time,
including without limitation the amendment of even date herewith), by and among
the Company, Hawaiian Airlines, Inc., a Delaware corporation, as borrower, the
lenders that are from time to time parties thereto, and Canyon Capital
Advisors, LLC, as agent.

 

(i)         “Distribution”
shall have the meaning set forth in Section 4(a)(ii).

 

(j)         “Fair
Market Value” shall mean, with respect to a share of Common Stock on any
date: (i) the fair market value of the outstanding Common Stock over then ten
(10) trading days prior to the date of calculation based upon (a) if the Common
Stock is listed on a national securities exchange, the closing price per share
of Common Stock on each such day published in The Wall Street Journal (National
Edition) or, if no such closing price on each such day is published in The Wall
Street Journal (National Edition), the average of the closing bid and asked
prices on each such day, as officially reported on the principal national
securities exchange on which the Common Stock is then listed or admitted to
trading; (b) if the Common Stock is not then listed or admitted to trading on
any national securities exchange, but is designated as a national market system
security, the last trading price of the Common Stock on each such day; and (c)
if there shall have been no trading on any such day or if the Common Stock is
not so designated, the average of the reported closing bid and asked price of
the Common Stock, on each such day as shown by NASDAQ and reported by any
member firm of the NYSE selected by the Company; (ii) if none of (i)(a), (b) or
(c) is applicable, a market price per share determined in good faith by the
Board of Directors of the Company, which shall be deemed to be “Fair Market
Value”; or (iii) such other measure of fair market value as is required by a
national securities exchange on which the Common Stock is then listed if such
exchange’s measure of fair market value is applicable to the transaction in
question.

 

(k)        “Forced
Exercise Date” shall have the meaning set forth in Section 1(c).

 

(l)         “Forced
Exercise Notice” shall have the meaning set forth in Section 1(c).

 

15

 

(m)       “Forced
Exercise Option” shall have the meaning set forth in Section 1(c).

 

(n)       “Fully
Diluted” shall mean, with respect to the Common Stock as of a particular
time, the total number of outstanding shares of Common Stock as of such time as
determined by treating (i) the shares issuable under the Warrants as having
been issued and (ii) all outstanding and “in-the-money” and then exercisable
Convertible Securities, as having been converted, exercised or exchanged and
the shares issuable thereunder as having been issued.

 

(o)       “Holder”
shall mean any holder of an interest in the Warrant or the outstanding Warrant
Shares who becomes a holder in compliance with Section 2 hereof.

 

(p)       “Person”
shall mean any individual, firm, corporation, limited liability company,
partnership, trust, incorporated or unincorporated association, joint venture,
joint stock company, Governmental Authority or other entity of any kind, and
shall include any successor (by merger or otherwise) of such entity.

 

(q)       “Qualified
Public Offering” shall mean the consummation of a firm commitment public
offering of the Common Stock of the Company by a nationally recognized
investment banking firm pursuant to an effective registration statement under
the Securities Act covering the offer and sale of such securities for cash for
the account of the Company.

 

(r)        “Registration
Rights Agreement” shall mean that certain Registration Rights Agreement,
dated the Closing Date, by and among the Company and the other parties thereto,
relating to the Warrant Shares and the other registrable securities referenced
therein.

 

(s)        “Required
Holders” shall mean the holders of a majority of the Total Warrant Shares.

 

(t)        Securities
Act” shall mean the Securities Act of 1933, as amended, or any similar
federal statute, and the rules and regulations thereunder as the same shall be
in effect at the time.

 

(u)       “Stock
Combination” shall have the meaning set forth in Section 4(a)(i).

 

(v)       “Stock
Dividend” shall have the meaning set forth in Section 4(a)(i).

 

(w)       “Stock
Subdivision” shall have the meaning set forth in Section 4(a)(i).

 

(x)        “Total
Warrants” shall mean this Warrant, together with any portions thereof
assigned or transferred.

 

(y)       “Total
Warrant Shares” shall mean the shares of Common Stock issuable upon
exercise of the Total Warrants and which have not been so exercised.

 

(z)        “Transaction”
shall have the meaning set forth in Section 4(b).

 

(aa)      “Warrant
Purchase Price” shall mean the purchase price of $5.00 per share of Common
Stock payable upon exercise of this Warrant, as adjusted as provided herein.

 

16

 

(bb)     “Warrants”
shall mean this Warrant and all Warrants issued in exchange, transfer or
replacement thereof.

 

(cc)      “Warrant
Shares” shall have the meaning set forth in the fourth paragraph hereto.

 

(dd)     As used
herein, any reference to a specified percentage of Warrants or Warrant Shares
shall exclude any Warrants or Warrant Shares held by the Company or a
subsidiary thereof.

 

7.             Exchange,
Replacement and Assignability .  This
Warrant is exchangeable, upon the surrender hereof by the Holder at the office
or agency of the Company described in Section 1, for new Warrants of like tenor
and date representing in the aggregate the right to purchase the number of
shares which may be purchased hereunder, each of such new Warrants to represent
the right to purchase such number of shares as shall be designated by such
Holder at the time of such surrender. 
Upon receipt of evidence satisfactory to the Company of the loss, theft,
destruction or mutilation of Warrants and, in the case of any such loss, theft
or destruction, of an indemnity letter (reasonably satisfactory to the Company)
of an institutional holder of such Warrants, or in other cases, of a bond of
indemnity or other security satisfactory to the Company, or, in the case of any
such mutilation, upon surrender or cancellation of Warrants, the Company will
issue to the Holder a new Warrant of like tenor and date, in lieu of this
Warrant or such new Warrants, representing the right to purchase the number of
shares which may be purchased hereunder. 
Subject to compliance with Section 2, this Warrant and all rights
hereunder are transferable in whole or in part upon the books of the Company by
the registered holder hereof in person or by duly authorized attorney, and new
Warrants shall be made and delivered by the Company, of the same tenor and date
as this Warrant but registered in the name of the transferees, upon surrender
of this Warrant, duly endorsed, to the appropriate office or agency of the
Company.  All expenses, taxes (other than
stock transfer taxes) and other charges payable in connection with the
preparation, execution and delivery of Warrants pursuant to this Section 7
shall be paid by the Company.

 

8.             Transfer Books,
No Rights as Stockholder, Survival of Rights.  The Company will at no time close its
transfer books against the transfer of this Warrant or any Warrant Shares in
any manner which interferes with the timely exercise of this Warrant.  Except as expressly provided herein, this
Warrant shall not entitle the Holder to any voting rights or any rights as a
stockholder of the Company.  The rights
and obligations of the Company, of the Holder of this Warrant and of any Holder
of Warrant Shares issued upon exercise of this Warrant pursuant to the terms of
this Warrant shall survive the exercise of this Warrant.

 

9.             Omissions and Indulgences;
Amendment and Waiver.

 

(a)         It is
agreed that any waiver, permit, consent or approval of any kind or character on
the Holder’s part of any breach or default under this Warrant, or any waiver on
the Holder’s part of any provisions or conditions of this Warrant must be in
writing.

 

(b)         Any
amendment, supplement or modification of or to any provision of this Warrant,
any waiver of any provision of this Warrant and any consent to any departure by
any

 

17

 

party from the terms of
any provision of this Warrant shall be effective only if it is made or given in
writing and signed by the Company and the Required Holders; provided, however,
that no such amendment, supplement or modification may be made without the
written consent of the Holder if such amendment, supplement or modification
changes the Aggregate Number, the Warrant Purchase Price or the expiration date
of this Warrant.

 

(c)         Any
amendment or waiver consented to as provided in this Section 9 is binding upon
each future holder of this Warrant and upon the Company without regard to
whether this Warrant has been marked to indicate such amendment or waiver.

 

10.           Rights of
Transferees.  Subject to compliance
with Section 2, the rights granted to the Holder hereunder of this Warrant
shall pass to and inure to the benefit of all subsequent transferees of all or
any portion of the Warrant (provided that the Holder and any transferee shall
hold such rights in proportion to their respective ownership of the Warrant and
Warrant Shares) until extinguished pursuant to the terms hereof.

 

11.           Captions.  The titles and captions of the Sections and
other provisions of this Warrant are for convenience of reference only and are
not to be considered in construing this Warrant.

 

12.           Notices.  All notices, demands and other communications
provided for or permitted hereunder shall be made in writing and shall be by
registered or certified first-class mail, return receipt requested, telecopy,
overnight courier service or personal delivery:

 

(a)       if to
the Company:

 

Hawaiian Holdings, Inc.

3375 Koapaka Street

Suite G-350

Honolulu, Hawaii  96819

 

Attention: Chief Executive Officer

Facsimile: (808) 835-3690

 

with copies to:

 

Dechert LLP

30 Rockefeller Plaza

New York, New York 10112

Attention: Charles I. Weissman, Esq.

Facsimile: (212) 698-3599

 

(b)           if to the Holder, at such Holder’s
address as set forth on the books and records of the Company

 

All such notices and communications shall be deemed to have been duly
given: when delivered by hand, if personally delivered; when delivered by
courier, if delivered by commercial

 

18

 

overnight courier service; five (5) Business Days after being deposited
in the mail, postage prepaid, if mailed; and when receipt is acknowledged, if
telecopied.

 

13.           Successors and
Assigns.  This Warrant shall be
binding upon and inure to the benefit of the parties hereto and their
respective successors or heirs and personal representatives and permitted
assigns; provided, that the Company shall have no right to assign its
rights, or to delegate its obligations, hereunder without the prior written
consent of the Holder.

 

14.           Governing Law.  THIS WARRANT IS TO BE CONSTRUED AND ENFORCED
IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF DELAWARE AND
WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAW OF SUCH STATE.

 

15.           Severability.  If any one or more of the provisions
contained herein, or the application thereof in any circumstance, is held
invalid, illegal or unenforceable in any respect for any reason, the validity,
legality and enforceability of any such provision in every other respect and of
the remaining provisions hereof shall not be in any way impaired, unless the
provisions held invalid, illegal or unenforceable shall substantially impair
the benefits of the remaining provisions hereof.  The parties hereto further agree to replace
such invalid, illegal or unenforceable provision of this Warrant with a valid, legal
and enforceable provision that will achieve, to the extent possible, the
economic, business and other purposes of such invalid, illegal or unenforceable
provision.

 

16.           Entire Agreement.  This Warrant contains the entire agreement
among the parties with respect to the subject matter hereof and thereby
supercedes all prior and contemporaneous agreements or understandings with
respect thereto.

 

17.           No Strict
Construction.  The Company and the
Holder each acknowledge that they have been represented by counsel in
connection with this Warrant.  The
Company and the Holder have participated jointly in the negotiation and
drafting of this Warrant.  In the event
an ambiguity or question of intent or interpretation arises under any provision
of this Warrant, this Warrant shall be construed as if drafted jointly by the
parties thereto, and no presumption or burden of proof shall arise favoring or
disfavoring any party by virtue of the authorship of any of the provisions of
this Warrant.

 

[REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK]

 

19

 

IN WITNESS WHEREOF, Hawaiian Holdings, Inc. has caused this Warrant to
be signed by its duly authorized officer under its corporate seal, duly
attested by its authorized officer, and dated as of the date first above
written.

 

 

	
   

  	
  HAWAIIAN HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Peter R. Ingram

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Chief Financial Officer
  and Treasurer

  
						

 

 

SUBSCRIPTION FORM

 

	
  To:

  	
   

  	
  Hawaiian Holdings, Inc.

  
	
   

  	
   

  	
  3375 Koapaka Street

  
	
   

  	
   

  	
  Suite G-350

  
	
   

  	
   

  	
  Honolulu, HI 96819

  
	
   

  	
   

  	
  Attention: Chief Executive Officer

  
	
   

  	
   

  	
  Facsimile: (808) 835-3690

  

 

1.             The undersigned, pursuant to the provisions of the
attached Warrant, hereby elects to exercise this Warrant with respect to                
shares of Common Stock (the “Exercise Amount”).  Capitalized terms used but not otherwise
defined herein have the meanings ascribed thereto in the attached Warrant.

 

2.             The undersigned herewith tenders payment for such shares
in the following manner (please check type, or types, of payment and indicate
the portion of the Exercise Price to be paid by each type of payment):

 

	
  o

  	
  Exercise for Cash

  	
   

  
	
  o

  	
  Reduction in Term Loan

  	
   

  

 

3.             Please issue a certificate or certificates representing
the shares issuable in respect hereof under the terms of the attached Warrant,
as follows:

 

	
   

  	
   

  
	
   

  	
  (Name of Record Holder/Transferee)

  
	
   

  
	
  and deliver such certificate or certificates to the
  following address:

  
	
   

  	
   

  
	
   

  	
  (Address of Record Holder/Transferee)

  

 

4.             The undersigned represents that the aforesaid shares are
being acquired for the

account of the undersigned for investment and not with
a view to, or for resale in connection with, the distribution thereof and that
the undersigned has no present intention of distributing or reselling such
shares.

 

5.             If the Exercise Amount is less than all of the shares of
Common Stock purchasable hereunder, please issue a new warrant representing the
remaining balance of such shares, as follows:

 

	
   

  	
   

  
	
   

  	
  (Name of Record Holder/Transferee)

  

 

 

	
  and deliver such warrant to the following address:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Address of Record Holder/Transferee)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Signature)

  
	
   

  	
   

  
	
  (Date)

  	
   

  
			

 

2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00100-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00100-of-00352.parquet"}]]