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Aircraft Lease Agreement

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2001
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AIRCRAFT LEASE AGREEMENT

 

 

Dated as of July 16, 2001

 

 

BETWEEN

 

 

HAWAIIAN AIRLINES, INC.

 

 

as LESSEE

 

 

and

 

 

INTERNATIONAL LEASE FINANCE CORPORATION

 

 

as LESSOR

 

 

 

 

Aircraft Make and Model:

Used B767-3G5ER

 

 

Aircraft Manufacturer's Serial Number:

24257

 

 

Aircraft Registration Mark:

Per Estoppel and Acceptance Certificate

 

 

Make and Model of Engines:

Pratt & Whitney PW4062

 

 

Serial Numbers of Engines:

Per Estoppel and Acceptance Certificate

 

 


USED AIRCRAFT NO. 3

 

TABLE OF CONTENTS

 

ARTICLE 1

DEFINITIONS

1.1

General Definitions

1.2

Specific Definitions

 

 

ARTICLE 2

PLACE AND DATE OF DELIVERY

2.1

Place of Delivery

2.2

Scheduled Delivery Date

2.3

Delivery subject to Prior Lessee Delivery

2.4

No LESSOR Liability

2.5

Total Loss of Aircraft prior to Delivery

2.6

Cancellation for Delay

 

 

ARTICLE 3

LEASE TERM AND EXTENSION OPTIONS

3.1

Initial Lease Term

3.2

Lease Extension Option

3.3

"Lease Term" and "Expiration Date"

3.4

"Termination Date"

 

 

ARTICLE 4

SECURITY DEPOSIT, RESERVES AND OTHER PAYMENTS

4.1

Security Deposit

4.2

Rent

4.3

Reserves

4.4

Additional Rent for Excess Cycles

4.5

LESSOR's Bank Account

4.6

Default Interest

4.7

No Deductions or Withholdings

4.8

Wire Transfer Disbursement Report

4.9

Net Lease

4.10

LESSOR Performance of LESSEE Obligation

4.11

Consideration for Rent and other Amounts

 

 

 


 

ARTICLE 5

DELIVERY CONDITION AND INSPECTION OF AIRCRAFT .

5.1

LESSEE Selection of Aircraft

5.2

Condition at Delivery

5.3

LESSEE Inspection of Aircraft at Delivery

5.4

Delivery of Aircraft to LESSEE

5.5

LESSEE Acceptance of Aircraft

 

 

ARTICLE 6

PRE-DELIVERY, DELIVERY AND POST-DELIVERYDOCUMENTARY AND OTHER REQUIREMENTS

6.1

Pre-Delivery Requirements

6.2

Delivery Requirements

6.3

Post-Delivery Requirements

 

 

ARTICLE 7

DISCLAIMERS

7.1

"As Is, Where Is"

7.2

Waiver of Warranty of Description

7.3

LESSEE Waiver

7.4

Conclusive Proof

7.5

No LESSOR Liability for Losses

7.6

No Liability to Repair or Replace

7.7

No Waiver

 

 

ARTICLE 8

MANUFACTURERS' AND VENDORS' WARRANTIES

8.1

Warranties

8.2

Reassignment

8.3

Warranty Claims

 

 

ARTICLE 9

OPERATION OF AIRCRAFT

9.1

Costs of Operation

9.2

Compliance with Laws

9.3

Training

9.4

No Violation of Insurance Policies

9.5

Flight Charges

 

 

ARTICLE 10

SUBLEASES

10.1

No Sublease without LESSOR Consent

10.2

LESSOR Costs

10.3

Any Approved Sublease

10.4

Assignment of Sublease

10.5

Continued Responsibility of LESSEE

 

 

 


 

ARTICLE 11

MAINTENANCE OF AIRCRAFT

11.1

General Obligation

11.2

Specific Obligations

11.3

Replacement of Parts

11.4

Removal of Engines

11.5

Pooling of Engines and Parts

11.6

Installation of Engines on other aircraft

11.7

Engine Thrust Rating

11.8

Modifications

11.9

Performance of Work by Third Parties

11.10

Reporting Requirements

11.11

Information Regarding Maintenance Program

11.12

LESSOR Rights to Inspect Aircraft

 

 

ARTICLE 12

USE OF RESERVES

12.1

Airframe Reserves

12.2

Engine Performance Restoration Reserves

12.3

Engine LLP Reserves

12.4

Reimbursement

12.5

Reimbursement Adjustment

12.6

Costs in Excess of Reserves

12.7

Reimbursement after Termination Date

 

 

ARTICLE 13

TITLE AND REGISTRATION

13.1

Title to the Aircraft During Lease Term

13.2

Registration of Aircraft

13.3

Filing of this Lease

13.4

Evidence of Registration and Filings

 

 

ARTICLE 14

IDENTIFICATION PLATES

14.1

Airframe Identification Plates

14.2

Engine Identification Plates

 

 

 


 

ARTICLE 15

TAXES

15.1

General Obligation of LESSEE

15.2

Exceptions to Indemnity

15.3

After-Tax Basis

15.4

Timing of Payment

15.5

Contests

15.6

Refunds

15.7

Cooperation in Filing Tax Returns

15.8

Survival of Obligations

15.9

LESSEE's Indemnity Regarding German Taxes

 

 

ARTICLE 16

INDEMNITIES

16.1

General Indemnity

16.2

Exceptions to General Indemnities

16.3

After-Tax Basis

16.4

Timing of Payment

16.5

Subrogation

16.6

Notice

16.7

Refunds

16.8

Defense of Claims

16.9

Survival of Obligation

 

 

ARTICLE 17

INSURANCE

17.1

Categories of Insurance

17.2

Write-back of any Date Recognition Exclusion

17.3

Insurance for Indemnities

17.4

Insurance required by Manufacturer

17.5

Renewal .

17.6

Assignment of Rights by LESSOR

17.7

Deductibles

17.8

Other Insurance

17.9

Information

17.10

Currency

17.11

Grounding of Aircraft

17.12

Failure to Insure

17.13

Reinsurance

17.14

Limit on Hull in favor of LESSEE

 

 

 


 

ARTICLE 18

LOSS, DAMAGE AND REQUISITION

18.1

Definitions

18.2

Notice of Total Loss

18.3

Total Loss of Aircraft or Airframe

18.4

Surviving Engine(s)

18.5

Total Loss of Engine and not Airframe

18.6

Other Loss or Damage

18.7

Copy of Insurance Policy

18.8

Government Requisition

18.9

LESSOR Retention of Reserves

 

 

ARTICLE 19

REPRESENTATIONS, WARRANTIES AND COVENANTS OF LESSEE

19.1

Representations and Warranties

19.2

Covenants

 

 

ARTICLE 20

REPRESENTATIONS, WARRANTIES AND COVENANTS OF LESSOR

20.1

Representations and Warranties

20.2

Covenant of Quiet Enjoyment

 

 

ARTICLE 21

FINANCIAL AND RELATED INFORMATION

 

 

ARTICLE 22

RETURN OF AIRCRAFT

22.1

Date of Return

22.2

Technical Report

22.3

Return Location

22.4

Full Aircraft Documentation Review

22.5

Aircraft Inspection

22.6

Certificate of Airworthiness Matters

22.7

General Condition of Aircraft at Return

22.8

Checks Prior to Return

22.9

Part Lives

22.10

Export and Deregistration of Aircraft

22.11

LESSEE's Continuing Obligations

22.12

Airport and Navigation Charges

22.13

Return Acceptance Certificate

22.14

Indemnities and Insurance

 

 

 


 

ARTICLE 23

ASSIGNMENT

23.1

No Assignment by LESSEE

23.2

Sale or Assignment by LESSOR

23.3

LESSOR's Lender

23.4

LESSEE Cooperation

23.5

Protections

 

 

ARTICLE 24

DEFAULT OF LESSEE

24.1

LESSEE Notice to LESSOR

24.2

Events of Default

24.3

LESSOR's General Rights

24.4

Deregistration and Export of Aircraft

24.5

LESSEE Liability for Damages

24.6

Waiver of Default

24.7

Present Value of Payments

24.8

Use of "Termination Date"

 

 

ARTICLE 25

NOTICES

25.1

Manner of Sending Notices

25.2

Notice Information

 

 

ARTICLE 26

GOVERNING LAW AND JURISDICTION

26.1

California Law

26.2

Non-Exclusive Jurisdiction in California

26.3

Service of Process

26.4

Prevailing Party in Dispute

26.5

Waiver

 

 

 


 

ARTICLE 27

MISCELLANEOUS

27.1

Transportation of Personnel

27.2

Press Releases

27.3

Power of Attorney

27.4

LESSOR Performance for LESSEE

27.5

LESSOR's Payment Obligations

27.6

Application of Payments

27.7

Usury Laws

27.8

Delegation by LESSOR

27.9

Confidentiality

27.10

Rights of Parties

27.11

Further Assurances

27.12

Use of Word "including"

27.13

Headings

27.14

Invalidity of any Provision

27.15

Negotiation

27.16

Time is of the Essence

27.17

Amendments in Writing

27.18

Counterparts

27.19

Delivery of Documents by Fax

27.20

Entire Agreement

 

 

EXHIBIT A

AIRCRAFT DESCRIPTION

EXHIBIT B

CONDITION AT DELIVERY

EXHIBIT C

SUMMARY OF TRANSACTION

1.

Description of Aircraft

2.

Scheduled Delivery Date and Location

3.

Initial Lease Term

4.

Lease Extension Option

5.

Security Deposit

6.

Rent During Initial Lease Term

7.

Rent During Lease Extension Terms

8.

Reserves

9.

Additional Rent for Excess Airframe and Engine Cycles

10.

Country of Aircraft Registration

11.

Maintenance Program

12.

Agreed Value of Aircraft

13.

LESSOR's Bank Account

EXHIBIT D

COMMERCIAL TERMS

EXHIBIT E

CERTIFICATE OF INSURANCE

EXHIBIT F

BROKERS' LETTER OF UNDERTAKING

EXHIBIT G

ESTOPPEL AND ACCEPTANCE CERTIFICATE

EXHIBIT H

OPINION OF COUNSEL

EXHIBIT I

ASSIGNMENT OF RIGHTS (AIRFRAME)

EXHIBIT J

ASSIGNMENT OF RIGHTS (ENGINES)

EXHIBIT K

RETURN ACCEPTANCE RECEIPT

EXHIBIT L

MONTHLY REPORT

EXHIBIT M

AIRCRAFT DOCUMENTATION

EXHIBIT N

TECHNICAL EVALUATION REPORT

 


AIRCRAFT LEASE AGREEMENT

 

THIS AIRCRAFT LEASE AGREEMENT is made and entered into as of July 16, 2001.

 

BETWEEN:

 

HAWAIIAN AIRLINES, INC., a Hawaii corporation whose address and principal place of business is at 3375 Koapaka Street, Suite G350, Honolulu, Hawaii 96819 ("LESSEE") and

 

INTERNATIONAL LEASE FINANCE CORPORATION, a California corporation whose address and principal place of business is at 1999 Avenue of the Stars, 39th Floor, Los Angeles, California  90067 ("LESSOR").

 

The subject matter of this Lease is one (1) used B767-3G5ER aircraft.  In consideration of and subject to the mutual covenants, terms and conditions contained in this Lease, LESSOR hereby agrees to lease to LESSEE and LESSEE hereby agrees to lease from LESSOR the Aircraft (as defined below) and the parties further agree as follows:

 


ARTICLE 1                           DEFINITIONS

 

Except where the context otherwise requires, the following words have the following meanings for all purposes of this Lease.  The defi1nitions are equally applicable to the singular and plural forms of the words.  Any agreement defined below includes each amendment, modification, supplement and waiver thereto in effect from time to time.

 

1.1                           General Definitions.

 

"Aircraft" means the Airframe, two (2) Engines, Parts and Aircraft Documentation, collectively.  As the context requires, "Aircraft" may also mean the Airframe, any Engine, any Part, the Aircraft Documentation or any part thereof individually.  For example, in the context of return to LESSOR the term "Aircraft" means the Airframe, Engines, Parts and Aircraft Documentation collectively, yet in the context of LESSEE not creating any Security Interests other than Permitted Liens on the Aircraft, the term "Aircraft" means any of the Airframe, any Engine, any Part or the Aircraft Documentation individually.

 

"Aircraft Documentation" means all (a) log books, Aircraft records, manuals and other documents provided to LESSEE in connection with the Aircraft, (b) documents listed in Exhibits G and M and (c) any other documents required to be maintained during the Lease Term by the Aviation Authority, LESSEE's Maintenance Program and this Lease.

 

"Airframe" means the airframe listed in the Estoppel and Acceptance Certificate executed at Delivery together with all Parts relating thereto (except Engines or engines).

 

"Airworthiness Directives" or "ADs" means all airworthiness directives of the FAA.

 

"APU" means the auxiliary power unit of the Aircraft.

 

"Aviation Authority" means the FAA or any Government Entity which under the Laws of the U.S. from time to time has control over civil aviation or the registration, airworthiness or operation of aircraft in the U.S.  If the Aircraft is registered in a country other than the U.S., "Aviation Authority" means the agency which regulates civil aviation in such other country.

 


"Aviation Documents" means any or all of the following which at any time may be obtainable from the Aviation Authority: (a) the certificate of registration for the Aircraft issued by the State of Registration, (b) a full certificate of airworthiness for the Aircraft specifying transport category (passenger), (c) an air transport license, (d) an air operator's certificate, (e) such recordation of LESSOR's title to the Aircraft and interest in this Lease as may be available in the State of Registration and (f) all such other authorizations, approvals, consents and certificates in the State of Registration as may be required to enable LESSEE lawfully to operate the Aircraft.

 

"Basic Engine" means those units and components of the Engine which are used to induce and convert fuel/air mixture into thrust/power; to transmit power to the fan and accessory drives; to supplement the function of other defined systems external to the Engine; and to control and direct the flow of internal lubrication, plus all essential accessories as supplied by the Engine manufacturer.  The nacelle, installed components related to the Aircraft systems, thrust reversers, QEC and the primary exhaust nozzle are excluded.

 

"Business Day" means a day other than a Saturday or Sunday on which the banks in the city where LESSOR's Bank is located are open for the transaction of business of the type required by this Lease.

 

"Creditor" means any lessor, owner, bank, lender, mortgagee or other Person which is the owner of or has any interest in an aircraft engine or aircraft operated by LESSEE.

 

"Creditor Agreement" means the applicable agreement between a Creditor and LESSEE or between Creditors pursuant to which such Creditor owns, leases or has an interest in either an aircraft operated by LESSEE on which an Engine may be installed or in an aircraft engine which may be installed on the Airframe.

 

"Default" means any event which, upon the giving of notice, the lapse of time and/or a relevant determination, would constitute an Event of Default.

 

"Delivery" means the delivery of the Aircraft from LESSOR to LESSEE pursuant to Articles 2 and 5.



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