Document:

Exhibit 10(ll)

 

[on National Bank of Canada letterhead]

 

October 14, 2005

 

Mr. Paul Heck

Vice-President, Finance

Carsen Group Inc.

151 Telson Road

Markham  ON  L3R 1E7

 

Dear Mr. Heck:

 

Re:                               Amended and Restated Loan Agreement dated August 1, 2003, as
amended and renewed (the “Loan Agreement”)
between Carsen Group Inc., as borrower (the “Borrower”)
and National Bank of Canada, as lender (the “Lender”)

 

Further to our letter dated June 22, 2005, we
hereby confirm the following amendments to the Loan Agreement:

 

1.                                       The definition of “Operating Commitment” in Section 1.1 of the
Loan Agreement is replaced by the following:

 

“Operating Commitment”
means, at any time, in respect of the Operating Facility, up to U.S.
$3,000,000.00, as reduced pursuant to Article 2.

 

2.                                       The definition of “Repayment Date” in Section 1.1 of the Loan
Agreement is replaced by the following:

 

“Repayment Date”
means, in respect of the repayment of all Accommodations made under each of the
Operating Facility and the Foreign Exchange Hedging Facility, July 31,
2006.

 

3.                                       Section 3.2(2) of the Loan Agreement is hereby replaced by
the following:

 

Each Borrowing
by way of Canadian Prime Rate Advances or Base Rate (Canada) Advances in excess
of Cdn.$500,000 shall, notwithstanding the provisions of Schedule 4.1(2),
be made on not less than 3 Business Days notice given not later than 11:00 a.m.
(Toronto time) by the Borrower to the Lender. 
Each notice of a Borrowing shall be irrevocable and binding on the
Borrower, shall be substantially in the form of Schedule 3.2(1) and
shall specify (i) the requested date of the Borrowing, (ii) whether
the Borrowing is to be by way of Canadian Prime Rate Advance or Base Rate
(Canada) Advance; and (iii) the aggregate amount of the Borrowing.

 

 

Each Borrowing
by way of Canadian Prime Rate Advances or Base Rate (Canada) Advances not in
excess of Cdn.$500,000, may be made on no advance notice to the Lender.

 

Each Borrowing
by way of Canadian Prime Rate Advances or Base Rate (Canada) Advances may be
made by utilizing or drawing upon (a “Utilization”)
the Borrower’s Canadian Dollar Account (in the case of Canadian Prime Rate
Advances) or the Borrower’s U.S. Dollar Account (in the case of Base Rate
(Canada) Advances) up to a maximum principal amount available such that the
Accommodations Outstanding do not exceed the Lending Limit.  Each Utilization of the Borrower’s Accounts
in the principal amount utilized shall be deemed to be an Accommodation
Outstanding as at the time such Utilization becomes outstanding.

 

4.                                       Section 5.4 of the Loan Agreement is hereby amended by adding
the following as a second paragraph to Section 5.4:

 

Without
limiting the generality of this Section 5.4, the Borrower shall, prior to
the Repayment Date, pay to the Lender the sum of Cdn.$245,000 as a Documentary
Credit Deposit Amount to be held by the Lender in respect of an outstanding
letter of credit issued in favour of the University of Ottawa in an interest
bearing account to be applied on any drawing by the University of Ottawa or
other Beneficiary.  If no Drawing is made
in respect of this letter of credit prior to its expiry date, the said
Documentary Credit Deposit Amount and any accrued interest thereon, shall be
returned to the Borrower promptly following the expiry or cancellation of this
letter of credit.

 

5.                                       Section 6.1 of the Loan Agreement is hereby amended by adding
the following as Section 6.1(4):

 

(4)           The Borrower shall, on or
before July 31, 2005, amend or terminate any Foreign Exchange Hedging
Arrangement outstanding hereunder that matures or expires after the Repayment
Date such that, on or before July 31, 2005, all Foreign Exchange Hedging
Arrangements outstanding hereunder will mature or expire on or before the
Repayment Date.

 

We note that
notwithstanding anything contained herein the Borrower and the Lender will be
bound by the terms and conditions contained in the Loan Agreement and that the
Lender continues to reserve all its rights and remedies.

 

 

Kindly confirm your acceptance of the foregoing by
signing and returning a copy of this letter to the Lender on or before August 31,
2005.

 

Yours truly,

 

NATIONAL BANK OF CANADA

 

 

	
  By:

  	
   

  	
   

  
	
  Name:

  
	
  Title:

  

 

 

	
  By:

  	
   

  	
   

  
	
  Name:

  
	
  Title:

  

 

 

ACCEPTANCE:

 

We accept the terms and conditions outlined herein
this           day of August, 2005.

 

CARSEN GROUP INC.

 

 

	
  By:

  	
   

  	
   

  
	
  Name:

  
	
  Title:

  

 

 

	
  By:

  	
   

  	
   

  
	
  Name:

  
	
  Title:Exhibit
10.1

 

AMENDMENT NO. 1 TO LEASE
AGREEMENT N475HA

AND RELATED AMENDMENTS

 

This Amendment No. 1 to Lease Agreement N475HA
and Related Amendments (this “Amendment”), is entered into as of September 30,
2004, between (1) Wells Fargo Bank Northwest, National Association, a
national banking association (“WFBN”), not in its individual capacity (except
as expressly provided herein) but solely as Owner Trustee (“Lessor”), and (2) Hawaiian
Airlines, Inc. (“Lessee”), a Hawaii corporation, acting by and through Joshua
Gotbaum, as Chapter 11 Trustee for the Lessee (the “Trustee”), and consented
and agreed to by BCC Equipment Leasing Corporation (formerly MDFC Equipment
Leasing Corporation), a Delaware corporation (“Owner Participant”).

 

RECITALS

 

A.            Lessor
and Lessee have heretofore entered into that certain Lease Agreement N475HA,
dated as of February 28, 2001, as supplemented by that certain Lease
N475HA Supplement No. 1, dated February 28, 2001, which were both
recorded with the Federal Aviation Administration as one document on March 22,
2001, and assigned Conveyance Number Q67231 (together, the “Lease”), pursuant
to which Lessor has leased to Lessee one Boeing Model 717-200 aircraft bearing
manufacturer’s serial number 55121 and US Registration Number N475HA, together
with two Rolls-Royce Deutschland Ltd & Co KG Model BR 700-715 A1-30
engines installed thereon bearing manufacturer’s serial numbers 13218 and
13219, respectively.  Lessor and Lessee,
together with “Owner Participant, have also heretofore entered into that
certain Participation Agreement, dated as of February 28, 2001 (the “Participation
Agreement”), relating to the Lease and the described aircraft; and Owner
Participant and Lessee have also heretofore entered into that certain Tax
Indemnity Agreement, dated as of February 28, 2001 (the “Tax Indemnity
Agreement”), relating to the Lease and the described aircraft.

 

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

 

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

 

 

TERMS AND CONDITIONS

 

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

 

1.             DEFINITIONS AND CONSTRUCTION

 

Capitalized terms used herein and not otherwise
defined herein shall have the meanings assigned to such terms in the Lease and,
unless otherwise specifically noted, reference to “Sections” herein shall be
construed to refer to Sections of the Lease. 
The rules or usage and construction set forth in the “General
Provisions” of Part 1 of Annex A to the Lease shall also apply to this
Amendment (including the capitalized terms defined herein), and this Amendment
shall be a Lessee Operative Agreement.

 

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

 

(a)           Section 3.2.1(a) of
the Lease is hereby amended by deleting the existing text thereof in its
entirety and inserting in lieu thereof the following:

 

“(a)         (i) 
During the Base Term, Lessee shall pay to Lessor, on each Payment Date, Basic
Rent in the amount specified in Column 1 of Schedule 2 for such Payment
Date.  The amounts and periods of Lessee’s
liability for Basic Rent during the Base Term shall be as allocated in
accordance with the column entitled “Rent Allocable for Period From and
Including Payment Date To and Excluding Specified Date” in Column 2 of Schedule 2.  Notwithstanding anything to the contrary
herein, Lessor and Lessee agree that, irrespective of Lessee’s payment
obligations as shown on Column 1 of Schedule 2, Lessee’s liability for
Basic Rent for the use of the Aircraft shall be allocated as stated in the
column with the heading “Rent Allocable for Period From and Including Payment
Date To and Excluding Specified Date” in Column 2 of Schedule 2.

 

(ii)           The
allocation of Basic Rent as provided in § 3.2.1(a)(i) constitutes a
specific allocation of fixed rent within the meaning of Treasury Regulation § 1.467-1(c)(2)(ii)(A),
with the effect that, pursuant to Treasury Regulation § § 1.467-1(d) and
1.467-2, Lessor and Lessee, on any federal income tax returns filed by them (or
on any return on which their income is included), shall accrue the amounts of
rental income and rental expense, respectively, set forth for each period under
the column entitled “Rent Allocable for Period From and Including Payment Date
To and Excluding Specified Date” on Schedule 2.  Because there shall be from time to time a
difference between (A) the cumulative amount of Basic Rent paid by Lessee
(as provided in § 3.2.1(a)(i)) and (B) the cumulative amount of Basic
Rent allocated (as provided in § 3.2.1(a)(i)), there shall be considered
to exist a loan for purposes of Code § 467 (the “Section 467
Loan”).  If there is an amount
in excess of zero set forth under the column entitled “Lessor 467 Loan Balance”
on Schedule 2(b), such amount (the “Lessor 467 Loan”)

 

2

 

represents a loan from Lessee to Lessor.  If there is an amount in excess of zero set
forth under the column entitled “Lessee 467 Loan Balance” on Schedule 2(b),
such amount (the “Lessee 467 Loan”) represents a
loan from Lessor to Lessee.  If there
shall be a Lessor 467 Loan, then Lessor shall deduct interest expense and
Lessee shall accrue interest income, in each case, in an amount equal to the
amount set forth under the caption entitled “Lessor 467 Loan Interest” for the
applicable period identified on Schedule 2(b) (the “Lessor 467 Loan Interest”). 
If there shall be a Lessee 467 Loan, then Lessor shall accrue interest
income and Lessee shall deduct interest expense, in each case, in an amount
equal to the amount set forth under the caption entitled “Lessee 467 Loan
Interest” for the applicable period identified on Schedule 2(b) (the “Lessee 467 Loan Interest”). 
Interest shall accrue on any Lessor 467 Loan or Lessee 467 Loan at the
applicable rate set forth on Schedule 1 as the “467 Loan Interest Rate”.

 

(iii)          Each
of Lessee and Lessor agree that, solely for purposes of the Section 467
Regulations, on any federal income tax returns filed by them (or on any return
on which their income is included) it will treat, (a) the Lease as two
leases with one lease being the Pre-Modification Lease beginning on the first
day of the Lease Term ending the day before the Section 467 Effective Date
and the other lease being the Post-Modification Lease beginning on the Section 467
Effective Date and ending on the last day of the Lease Term; and (b) the
Lessor Section 467 Loan Balance outstanding on the Section 467
Effective Date as an amount required to be paid as rent under the
Post-Modification Lease and deemed paid on the Section 467 Effective
Date.  The “Section 467 Effective
Date” is January 1, 2004.”

 

(b)           Section 15
of the Lease is hereby amended by adding a new paragraph (e) at the end
thereof as follows:

 

“(e)  Each of the
amounts that may at any time constitute Scheduled Stipulated Loss Value,
Scheduled Termination Value or Scheduled Special Termination Value, as the same
appear in the various Schedules hereto, has been computed without taking into
account the existence of any Lessor 467 Loan Balance or Lessee 467 Loan Balance
that may be outstanding at the time that any such amount may be payable
hereunder; and, accordingly, in determining the amount of any Stipulated Loss
Value, Termination Value or Special Termination Value that may at any time be
payable hereunder, (i) any Lessor 467 Loan Balance then outstanding shall
be deducted from the Scheduled Stipulated Loss Value, Scheduled Termination
Value or Scheduled Special Termination Value, as the case may be (and the
resulting amount shall be the Stipulated Loss Value, Termination Value or
Special Termination Value so payable), and (ii) any Lessee 467 Loan Balance
then outstanding shall be added to the Scheduled Stipulated Loss Value,
Scheduled Termination Value or Scheduled Special Termination Value, as the case
may be (and the resulting amount shall be the Stipulated Loss Value,
Termination Value or Special Termination Value so payable).”

 

3

 

(c)           Each of
the Owner Participant, Lessee and Lessor agree that solely for purposes of the Section 467
Regulations, (i) it will treat the Lease, as amended hereby, as two leases
with one lease being the Pre-Modification Lease and ending the day before the Section 467
Effective Date and the other lease being the Post-Modification Lease and
beginning on the Section 467 Effective Date; (ii) it will treat the
Lessor Section 467 Loan Balance outstanding on the Section 467
Effective Date as an amount required to be paid as rent under the
Post-Modification Lease and deemed paid on the Modification Date; and (iii) the
Basic Rent listed on Column 1 of Schedule 2 to the Lease will constitute
fixed rent payable (as such term is used in the Section 467 Regulations,
including Section 1.467-1(c)(2)(ii)(A) thereof) under the Post
Modification Lease from the Section 467 Effective Date to the end of the
Term and the allocation of Basic Rent as listed on Column 2 of Schedule 2
to the Lease shall constitute Lessee’s liability for Basic Rent for use of the
Aircraft under the Post Modification Lease as allocated therein and a specific
allocation of fixed rent within the meaning of Treasury Regulation § 1.467-1(c)(2)(ii)(A),
with the effect that, pursuant to Treasury Regulation § § 1.467-1(d) and
1.467-2, Lessor and Lessee, on any federal income tax returns filed by them (or
on any return on which their income is included), shall accrue the amounts of
rental income and rental expense, respectively, set forth for each period under
Column 2 of Schedule 2 hereto entitled “Rent Allocable for Period From and
Including Payment Date To and Excluding Specified Date”.

 

Each of the Owner Participant and the Lessee agrees
that if the changes to the allocation of Basic Rent from the Section 467
Effective Date to October 1, 2004 change the amount of income, deduction
or other item for US federal income tax purposes, it will take into account, in
the taxable year in which such modification occurs, any adjustment necessary to
prevent duplication with respect to such Basic Rent or the omission of interest
thereon for such period.

 

3.             ADDITION
OF SECURITY DEPOSIT

 

(a)           Section 3
of the Lease is hereby amended by adding a new Section 3.2.3 as follows:

 

“3.2.3     Security
Deposit

 

(a)           On
or before October 1, 2004, Lessee shall pay to Lessor a security deposit
(the “Security Deposit”) in the amount set forth on Schedule 1- Part A
hereto.  The Security Deposit will be
held by Lessor for the entire remaining Term of this Lease and may be
commingled with other amounts of Lessor.

 

(b)           The
Security Deposit shall be held by Lessor as security for the due and punctual
payment by Lessee of all amounts payable by it, and the due and punctual
observance and performance by Lessee of all of its obligations, hereunder and
under each other Operative Agreement. 
Lessee hereby assigns, transfers and pledges to Lessor, and hereby
grants to Lessor, a first-priority security interest in, the Security Deposit
to secure such payment, observance and performance.  Any interest earned on the Security Deposit
shall be solely for the account of Lessor. 
If an Event of Default shall occur and be continuing, then in addition
to any other rights Lessor may have under applicable Law as a lessor,

 

4

 

secured party or otherwise, or under this Lease or any
other Operative Agreement, Lessor may set off against, use, apply or retain all
or any portion of the Security Deposit in full or partial payment for amounts
payable by Lessee under this Lease or any other Operative Agreement or for
amounts necessary to compensate Lessor and the Indemnitees for their Expenses
arising in connection with such Event of Default.  Any such use or application shall not,
however, be deemed a cure by Lessee, or waiver by Lessor, of any Event of
Default, unless so agreed by Lessor in writing.

 

(c)           So
long as no Default or Event of Default shall have occurred and be continuing,
that portion, if any, of the Security Deposit that has not previously been used
or applied, or set off against, as provided for in this Lease, shall be
returned to Lessee by wire transfer of immediately available Dollars to an
account of Lessee located in the United States of America, specified in writing
by Lessee to Lessor at least 10 Business Days prior to the date of such
transfer, (A) on or before the date that is 20 Business Days after and
excluding the date upon which the Aircraft is returned to Lessor in the condition,
and in the manner, required under Annex B to this Lease and otherwise in
accordance with the terms of this Lease, or (B) if an Event of Loss shall
have occurred, and Lessee shall have elected, or shall be deemed to have
elected, the option set forth in Section 9.1.2 hereof, then on or before
the date that is 20 Business Days after and excluding the date upon which
Lessor has been paid all amounts required to be paid under, and as provided in,
Section 9.1.2(a) hereof.”

 

(b)           Section 14.1.6
of the Lease is hereby amended by adding a new sentence, at the end thereof, as
follows:

 

“Without limiting, and notwithstanding, any other
provision or the Lease or any other Operative Agreement,  Lessor shall be entitled to use and apply all
or any portion of the Security Deposit for the purposes, and in the manner, set
forth in Section 3.2.3(b) hereof.”

 

(c)           Schedule 1
– Part A to the Lease is hereby amended as set forth in Section 1 of
Appendix A hereto.

 

(d)           That
certain Letter Agreement No. 1-1005-JSW-1500, dated as of February 28,
2001, among, inter alios, Lessor and Lessee,
insofar as it relates to the Lease and the Aircraft, is hereby terminated and
shall be of no further force or effect; and all of the obligations and
liabilities of each of the parties to such Letter Agreement are hereby
unconditionally and irrevocably released and discharged in full and in all
respects.

 

4.             ADDITION
OF MAINTENANCE RESERVES

 

Annex C to the Lease is hereby amended as set forth on
Appendix B hereto.

 

5

 

5.             AMENDMENTS
TO SCHEDULES

 

(a)           Schedules
2, 3, 4 (both Part A and Part B) and 5 to the Lease are hereby
amended by deleting each in their respective entireties and replacing the same
with Schedules 2, 3, 4 (both Part A and Part B) and 5 attached hereto
(and as so denominated), with each deleted Schedule (or Part) being
replaced by the Schedule (or Part), attached hereto, bearing the same
numerical designation.

 

 (b)          The
Lease is hereby amended by adding thereto a new Schedule 2(b), entitled “467
Loan Schedule”, in the form attached hereto (and as so denominated).

 

6.             AMENDMENTS
TO ANNEX A

 

(a)           Annex A – Part 1
to the Lease, and as the same Annex is attached to the Participation Agreement,
is hereby amended by adding the following new terms and definitions:

 

“Lessee 467
Loan: has the meaning set forth in § 3.2.1(a)(ii) of the
Lease.”

 

“Lessee
467 Loan Balance: with respect to any specified date means
the amount set forth opposite such date in Schedule 2(b) to the Lease
in the column with the heading “Lessee 467 Loan Balance” (as adjusted from time
to time in accordance with § 3.2.1 of the Lease).

 

“Lessee
467 Loan Interest: has the meaning set forth in § 3.2.1(a)(ii) of
the Lease.”

 

“Lessor
467 Loan: has the meaning set forth in Section 3.2.1(a)(ii) of
the Lease.”

 

“Lessor
467 Loan Balance: with respect to any specified date means
the amount set forth opposite such date in Schedule 2(b) to the Lease
in the column with the heading “Lessor 467 Loan Balance” (as adjusted from time
to time in accordance with § 3.2.1 of the Lease).”

 

“Lessor
467 Loan Interest: has the meaning set forth in § 3.2.1(a)(ii) of
the Lease.”

 

“Maintenance
Reserves:  defined in Section F
of Annex C to the Lease.”

 

“Section 467
Effective Date:  has the
meaning set forth in §3.2.1(a)(iii) of the Lease.”

 

“Section 467
Loan: has the meaning set forth in § 3.2.1(a)(ii) of
the Lease.”

 

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

 

“Security
Deposit:  defined in Section 3.2.3
of the Lease.”

 

6

 

(b)           Annex A – Part 1
to the Lease, and as the same Annex is attached to the Participation Agreement,
is hereby further amended by adding, in the definition of the term “Supplemental Rent”, immediately after the word “including”,
the words “the Security Deposit and the Maintenance Reserves, and”.

 

(c)           Annex A – Part 1
to the Lease, and as the same Annex is attached to the Participation Agreement,
is hereby further amended by adding, at the end of the definition of the term “Stipulated Loss Value” and before the “.”, the following
words:

 

“(and such scheduled
amount shall be referred to herein as the “Scheduled Stipulated Loss
Value”), provided that at any time a payment is required pursuant to
this Lease of Stipulated Loss Value, such payment (i) shall be reduced by
the amount of any Lessor 467 Loan Balance then outstanding, plus a pro rata
portion of the Lessor 467 Loan Interest for the relevant period, or (ii) shall
be increased by the amount of any Lessee 467 Loan Balance then outstanding,
plus a pro rata portion of the Lessee 467 Loan Interest for the relevant period
(and the term “Stipulated Loss Value” shall mean
the Scheduled Stipulated Loss Value as so adjusted).

 

(d)           Annex A – Part 1
to the Lease, and as the same Annex is attached to the Participation Agreement,
is hereby further amended by adding, at the end of the definition of the term “Termination Value” and before the “.”, the following words:

 

“(and such scheduled
amount shall be referred to herein as the “Scheduled Termination
Value”), provided that at any time a payment is required pursuant to
this Lease of Termination Value, such payment (i) shall be reduced by the
amount of any Lessor 467 Loan Balance then outstanding, plus a pro rata portion
of the Lessor 467 Loan Interest for the relevant period, or (ii) shall be
increased by the amount of any Lessee 467 Loan Balance then outstanding, plus a
pro rata portion of the Lessee 467 Loan Interest for the relevant period (and
the term “Termination Value” shall mean the
Scheduled Termination Value as so adjusted).

 

(e)           Annex A – Part 2
to the Lease, and as the same Annex is attached to the Participation Agreement,
is hereby amended as set forth in Section 2 of Appendix A hereto.

 

(f)            Annex A –
Part 3 to the Lease, and as the same Annex is attached to the
Participation Agreement, is hereby amended as set forth in Section 3 of
Appendix A hereto.

 

7.             OTHER
AMENDMENTS

 

(a)           Section 4.4.1
of the Lease is hereby amended by adding a new sentence, at the end thereof, as
follows:

 

“Notwithstanding the foregoing, this Section 4.4.1
shall not apply in any respect to (i) the Security Deposit (Sections 3.2.3
and 14.1.6 hereof shall govern the payment, possession, use, application and
repayment of the Security Deposit), or (ii) the Maintenance Reserves (Section F
or Annex C hereto shall govern the payment, possession, use, application and
repayment of the Maintenance Reserves).

 

7

 

(b)           Section 7.2.7(c) of
the Lease is hereby amended by deleting the existing text thereof in its
entirety and inserting in lieu thereof the following:

 

“(c)         any
such sublease shall provide for payment of rent, or any amount in lieu of rent,
no less frequently than monthly and all such rent shall be payable in advance;”

 

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

 

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

 

(d)           Annex E – Part 1
to the Lease is hereby amended as set forth in Section 4 of Appendix A
hereto.

 

(e)           Annex E – Part 2
to the Lease is hereby amended as set forth in Section 5 of Appendix A
hereto.

 

(f)            The Tax
Indemnity Agreement is hereby amended as set forth in Section 6 of
Appendix A hereto.

 

8.             REPRESENTATIONS
AND WARRANTIES

 

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

 

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

 

(ii)           This
Amendment has been duly authorized by all necessary action on the part of
Lessee, and neither the execution and delivery hereof nor the consummation of
the

 

8

 

transactions contemplated hereby nor compliance by
Lessee with any of the terms and provisions hereof does or will violate any
provision of the articles of incorporation or by-laws of Lessee or any law,
rule, regulation, judgment, order or decree of any government or governmental
instrumentality or court having jurisdiction over Lessee, or any of its
activities or properties, or does or will result in any breach of, or
constitute any default under, or result in the creation of any Lien upon any
property of Lessee under, any indenture, mortgage, deed of trust, conditional
sale contract, loan or credit agreement, or other agreement or instrument to
which Lessee is a party or by which Lessee or its properties may be bound or
affected.

 

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

 

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

 

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

 

(vi)          On
and as of the Effective Date, and after giving effect to the terms of that
certain Memorandum of Understanding, dated as of September 15, 2004 (the
“MOU”), by and between, inter alios, Lessor and Lessee, and the amendments to
the Lease, the Related Leases and the Companion Leases (as defined herein)
being effected as of the date hereof, (i) no Default or Event of Default, under
and as defined in the Lease, as amended hereby, has occurred and is continuing,
and (ii) no Default (or Event) or Event of Default has occurred and is
continuing, under and as defined in any Related Lease, as amended hereby, or
under and as defined in any of the three leases (each relating to a Boeing
Model 767-33AER aircraft), between Owner Participant, as lessor, and Lessee, as
lessee, as such leases are described in Attachment B to the MOU, and as such
leases are amended pursuant to separate agreements between Owner Participant
and Lessee entered into contemporaneously herewith as contemplated in the MOU
(each such lease a “Companion Lease”, and collectively the “Companion Leases”).

 

9

 

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

 

(i)            WFBN
(1) is a national banking association duly organized and validly existing
in good standing under the laws of the United States of America, has full
power, authority and legal right to own its properties and to carry on its
business as presently conducted and to perform its obligations under the Lease,
as amended hereby, and under the other Operative Agreements, and (2) holds
all licenses, certificates and permits from all governmental authorities
necessary for the conduct of its business.

 

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

 

(iii)          Neither
the execution and delivery by WFBN or Lessor of this Amendment nor the
performance by WFBN or Lessor of any of the transactions contemplated hereby
require the consent, approval, order or authorization of, or registration with,
or the giving of notice to, any governmental authority of the United States of
America governing the banking or trust powers of WFBN, or any governmental
authority of the State of Utah, except for the approvals, authorizations and
consents that have heretofore been obtained.

 

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

 

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

 

(i)            Owner
Participant (1) is a corporation duly organized and validly existing in good
standing under the laws of the State of Delaware, has full power, authority and
legal right to own its properties and to carry on its business as presently
conducted and to perform its obligations under the Operative Agreements to
which it is a party, (2) holds

 

10

 

all licenses, certificates and permits from all
governmental authorities necessary for the conduct of its business, and (3) is
duly qualified to do business as a corporation in good standing in each
jurisdiction in which the failure to be so qualified would have a materially
adverse effect on Owner Participant or on its ability to perform its
obligations under the Operative Agreements to which it is a party.

 

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

 

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

 

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

 

9.             CONDITIONS
PRECEDENT

 

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

 

(a)           The
Bankruptcy Court shall have entered an order, in form and substance
satisfactory to Lessor, (i) approving this Amendment and the transactions
contemplated hereby, (ii) approving the amendments to each of the Related
Leases and to each of the Companion Leases, each such amendment dated the date
hereof and entered into contemporaneously herewith (each such amendment, a “Lease
Amendment”), between Lessee and Lessor (or Owner Participant acting as lessor)
and the transactions

 

11

 

contemplated thereby, (iii) approving the terms
of the MOU and the transactions contemplated thereby, (iv) confirming and
effectuating the assumption by Lessee of the Lease, as amended by this
Amendment, and (v) confirming and effectuating the assumption by Lessee of
each of the Related Leases and each of the Companion Leases, each as amended by
the applicable Lease Amendment; and such order shall not have been reversed,
stayed, modified or amended;

 

(b)           Lessor
shall have received satisfactory legal opinions from FAA counsel, and New York
and Hawaii counsel as to the matters referred to in paragraphs (a)(i) through
(a)(v) of Section 8 above (or, if the matters referred to in
paragraphs (a)(i) through (a)(iii) are covered, to Lessor’s
reasonable satisfaction, in the Bankruptcy Court order described above, such
opinion shall address only the matters referred to in paragraphs (a)(iv) and
(a)(v)), and in paragraph (l) of Section 12 below, and as to such other
matters as Lessor may reasonably request;

 

(c)           Lessee
shall have paid the Security Deposit, as required pursuant to Section 3.2.3
of the Lease, as amended hereby;

 

(d)           All
of Lessee’s representations and warranties set forth in Section 8 hereof
and in Section 9 of the MOU shall be true and correct;

 

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

 

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

 

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

 

10.          LEASE
ASSUMED, RATIFIED AND CONFIRMED

 

On and after the Effective Date of this Amendment, (i) each
reference in the Lease to “this Lease”, “hereunder”, “hereof”, or words of like
import referring to the Lease shall be deemed to mean, and be a reference to,
the Lease as amended by this Amendment, (ii) the Lease, as amended hereby,
shall be deemed to be ratified and confirmed in all respects and in full force
and effect, and (iii) the Lease shall be deemed to be, and shall be
(pursuant to the order of the Bankruptcy Court described in paragraph (a) of
Section 9 hereof) assumed for all purposes by Lessee, all as contemplated
in the MOU.

 

11.          MUTUAL
RELEASES

 

Lessor and Lessee have also agreed, as set forth in Section 6
of the MOU (as defined in Section 8(a)(vi) hereof), to release
certain claims in connection with (i) the execution and delivery of this
Amendment, and of the amendments to the Related Leases and to the Companion
Leases, and the assumption by Lessee of the Lease, the Related Leases and the
Companion Leases, and (ii) the other matters described in the MOU; and
each of Lessor and Lessee acknowledges that such releases of claims constitute
an integral part of the consideration between Lessor and Lessee to enter into
this Amendment.

 

12

 

12.          MISCELLANEOUS

 

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

 

(b)           All notices,
requests, demands, authorizations, directions, consents, waivers and other
communications relating to this Amendment shall be made, given, furnished, or
filed, and shall become effective, in the manner prescribed in § 14.7 of
the Participation Agreement.

 

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

 

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

 

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

 

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

 

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

 

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

 

13

 

(i)            The specific terms of the Lease that are
amended and supplemented by this Amendment, shall be subject to the
confidentiality restrictions set forth in § 8
of the Participation Agreement and in Section 23 of the MOU.  Notwithstanding the foregoing, each party
hereto acknowledges and agrees that the terms of this Amendment may be
summarized in the Subject Motion and in the Plan and the Disclosure Statement
accompanying the Plan (as such terms are defined in the MOU).

 

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

 

(k)           For purposes of the last sentence of § 17.7(g) of
the Lease, this Amendment, and the terms and provisions hereof, shall
constitute an amendment, supplement and modification to the Operative
Agreements.

 

(l)            Lessee shall cause this Amendment, so far
as required or permitted by applicable law or regulation, to be kept, filed,
registered and recorded at all times in accordance with § 7.1.3 of the
Participation Agreement and the other applicable provisions of the Operative
Agreements.

 

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

 

(Signature Page Follows)

 

14

 

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

 

	
  WELLS FARGO BANK NORTHWEST,

  	
   

  	
   

  
	
  NATIONAL ASSOCIATION, not in its individual

  	
   

  	
   

  
	
  capacity but solely as Owner Trustee, as Lessor

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Nancy M.
  Dahl

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  HAWAIIAN AIRLINES, INC., as Lessee

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Joshua
  Gotbaum

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Trustee

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  CONSENTED AND AGREED TO BY

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  BCC EQUIPMENT LEASING CORPORATION,

  	
   

  	
   

  
	
  as Owner Participant

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ John A.
  Catron

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  

 

15

 

APPENDIX A

 

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

 

APPENDIX B

 

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

 

 

SCHEDULE 2

 

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

 

 

SCHEDULE 2(b)

 

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

 

 

SCHEDULE 3

 

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

 

 

SCHEDULE 4

 

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

 

 

SCHEDULE 5

 

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

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