Exhibit 4.12
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UNITED EQUIPMENT
NOTE PURCHASE AGREEMENT
Dated as of July 31, 2000
between
UNITED AIR LINES, INC.,
and
STATE STREET BANK AND TRUST COMPANY
OF CONNECTICUT, NATIONAL ASSOCIATION,
as Pass Through Trustee under each of the
United Airlines 2000-1 Pass Through Trust Agreements,
Subordination Agent and United Equipment Indenture Trustee
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TABLE OF CONTENTS
Page
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SECTION 1. Purchase of United Equipment Notes........................... 2
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SECTION 1.A. Certain Definitions.......................................... 2
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SECTION 2. [Reserved]................................................... 3
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SECTION 3. Conditions Precedent......................................... 3
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SECTION 4. Representations, Warranties and Covenants of United.......... 8
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SECTION 5. Representations, Warranties and Covenants of Other Parties... 10
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SECTION 6. Notices...................................................... 15
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SECTION 7. Expenses..................................................... 15
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SECTION 8. Miscellaneous................................................ 16
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SCHEDULES
Schedule I Names, Addresses and Wire Instructions
Schedule II United Equipment Notes, Purchasers and Purchase Prices
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UNITED EQUIPMENT NOTE PURCHASE AGREEMENT
This UNITED EQUIPMENT NOTE PURCHASE AGREEMENT, dated as of July 31, 2000
(this "Agreement"), between UNITED AIR LINES, INC., a Delaware corporation
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("United"), and STATE STREET BANK AND TRUST COMPANY OF CONNECTICUT, NATIONAL
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ASSOCIATION, a national banking association (the "Bank"), not in its individual
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capacity, except as otherwise expressly provided herein, but solely as trustee
(in such capacity, the "Pass Through Trustee") under each of the five separate
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Pass Through Trust Agreements (as defined below), subordination agent (in such
capacity, the "Subordination Agent"), and indenture trustee (in such capacity,
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the "United Equipment Indenture Trustee") under the United Equipment Indentures
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(as defined below).
WHEREAS, United is the owner of one Boeing 757-222 aircraft, six Airbus
320-232 aircraft, two Boeing 767-322 ER aircraft and four Boeing 777-222 ER
aircraft (collectively, the "Aircraft") for which it desires to obtain
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financing;
WHEREAS, pursuant to each Trust Indenture and Mortgage, dated as of the
date hereof (each, a "United Equipment Indenture"), between United and the
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United Equipment Indenture Trustee thereunder, United proposes to issue up to
four series of equipment notes (the "United Equipment Notes"), of which United
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proposes to issue three series on the Closing Date and may, in the future, issue
such fourth series, all of which, regardless of when issued, are to be secured
by the mortgage and security interest in the related Aircraft and rights under
the Confirmations (as defined in the United Equipment Indentures) granted
pursuant to such United Equipment Indenture by United in favor of the related
United Equipment Indenture Trustee and to be subject to the subordination
provisions contained therein;
WHEREAS, pursuant to the Confirmations, AFE Trust agrees to make certain
floating rate interest payments to United and United agrees to make certain
fixed rate interest payments to AFE Trust;
WHEREAS, Series A-1 United Equipment Notes, Series A-2 United Equipment
Notes, and Series B United Equipment Notes with respect to each Aircraft (each,
a "Series") will be issued on the Closing Date (as defined in Section 1 below)
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to the Subordination Agent acting on behalf of the Pass Through Trustee for the
applicable Pass Through Trust as evidence of United's indebtedness to the Pass
Through Trustee;
WHEREAS, pursuant to each of the Pass Through Trust Supplements (the "Trust
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Supplements"; and together with the Basic Pass Through Trust Agreement, the
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"Pass Through Trust Agreements"), on the Closing Date (as defined in Section 1
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below), a separate grantor trust (each, a "Pass Through Trust") will be created
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to facilitate certain of the transactions contemplated hereby, including,
without limitation, the issuance and sale of enhanced pass through certificates
pursuant thereto (collectively, the "Pass Through Certificates") to provide the
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financing of the Aircraft;
WHEREAS, part of the proceeds from the issuance and sale of the Pass
Through Certificates will be applied by the Subordination Agent, acting on
behalf of the Pass Through Trustee, to purchase from United on behalf of each
Pass Through Trust, the United Equipment Notes bearing the same interest rate as
the Pass Through Certificates issued by the related Pass Through Trust; and
WHEREAS, concurrently with the execution and delivery of this Agreement,
(i) Landesbank Hessen-Thuringen Girozentrale, a public law banking institution
organized under the law of Germany (the "Liquidity Provider") entered into three
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revolving credit agreements (each, a "Liquidity Facility") for the benefit of
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the United Airlines 2000-1A-1 Pass Through Trust, the United Airlines 2000-1A-2
Pass Through Trust, and the United Airlines 2000-1B Pass Through Trust, with the
Subordination Agent, as agent and trustee for the Pass Through Trustee on behalf
of each such Pass Through Trust; and (ii) the Pass Through Trustee, the
Liquidity Provider and the Subordination Agent entered into the Intercreditor
Agreement, dated as of the date hereof (the "Intercreditor Agreement");
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NOW, THEREFORE, in consideration of the foregoing and the mutual agreements
contained herein, the parties hereto agree as follows:
SECTION 1. Purchase of United Equipment Notes. (a) Subject
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to the satisfaction or waiver of the conditions set forth herein, on July 31,
2000, or on such other date agreed to by the parties hereto (the "Closing
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Date"):
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(i) the Pass Through Trustee for each Pass Through Trust shall pay
to United the purchase price set forth on Schedule II for each United
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Equipment Note being issued and sold by United to such Pass Through Trust;
and
(ii) United shall issue, pursuant to Article II of each United
Equipment Indenture, to the Subordination Agent, on behalf of the Pass
Through Trustee for each of the Pass Through Trusts, a United Equipment
Note having the Series, maturity date and principal amount and bearing the
interest rate set forth on Schedule II opposite the name of such Pass
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Through Trust.
(b) All payments pursuant to Section 1(a)(i) shall be made in
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immediately available funds to such accounts and at such banks as United shall
designate on Schedule I or as it may otherwise designate in writing not less
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than one Business Day prior to the Closing Date.
SECTION 1.A. Certain Definitions. (a) As used in this Agreement and
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unless otherwise expressly provided, the following capitalized terms shall have
the following respective meanings:
"FAA" means the Federal Aviation Administration.
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"Federal Aviation Act" means Title 49 of the United States Code
(Transportation), as amended.
"Fundamental Documents" shall mean, collectively (i) any document that
is an "Operative Document," a "Pass Through Document" or a
"Fundamental Document" under this Agreement, any United Equipment Note
or any United Equipment Indenture and (ii) any amendment to any of the
foregoing executed in connection with the transactions contemplated
hereby.
"Operative Documents" shall mean any document that is an Operative
Document under a United Equipment Indenture.
(b) Unless otherwise specifically defined herein, capitalized terms used
in this Agreement shall have the respective meanings specified in the
Intercreditor Agreement.
SECTION 2. [Reserved.]
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SECTION 3. Conditions Precedent. (a) Conditions Precedent to the
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Obligations of the Pass Through Trustee. The obligation of the Pass Through
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Trustee to make the payments described in Section 1(a)(i) and to enter into the
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Fundamental Documents to which it is a party are subject to the fulfillment, on
or prior to the Closing Date, of the following conditions precedent:
(i) No change shall have occurred after the date of the execution
and delivery of this Agreement in applicable law or regulations thereunder
or interpretations thereof by appropriate regulatory or judicial
authorities which, in the opinion of each Pass Through Trustee, would make
it a violation of law or regulations for the Pass Through Trustee to make
the payments described in Section 1(a), to execute, deliver and perform the
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Fundamental Documents, to acquire the United Equipment Notes or to realize
the security afforded by the United Equipment Indentures.
(ii) United shall have tendered the United Equipment Notes to the
applicable United Equipment Indenture Trustee for authentication and shall
have tendered the United Equipment Notes to the Subordination Agent on
behalf of the Pass Through Trustee in accordance with Section 1.
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(iii) The Pass Through Trustee shall have received duly authorized
and validly executed counterparts or conformed copies of the following
documents in form and substance satisfactory to the Pass Through Trustee
and all such documents shall be in full force and effect:
(A) this Agreement;
(B) the Basic Pass Through Trust Agreement and each Trust
Supplement;
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(C) the Intercreditor Agreement;
(D) the Liquidity Facility for each of the Class A-1 Trust, the
Class A-2 Trust, and the Class B Trust;
(E) each Loan Certificate Purchase Agreement (as defined in the
AFE Indenture);
(F) the AFE Note Purchase Agreement;
(G) the Confirmations;
(H) the AFE Indenture;
(I) the AFE Notes;
(J) the Leveraged Lease Documents (as defined in the AFE Note
Purchase Agreement) with respect to the Leased Aircraft (as
defined in the AFE Note Purchase Agreement);
(K) the United Equipment Indentures;
(L) the AFE Trust Agreement (as defined in the AFE Note Purchase
Agreement);
(M) the Owned Aircraft Indentures;
(N) the Assignment Agreements (as defined in the AFE Note
Purchase Agreement);
(O) the 747 Leased Equipment Note Purchase Agreement;
(P) the AFE Certificate Purchase Agreement (as defined in the
AFE Note Purchase Agreement);
(Q) the Class C-1 Certificate Purchase Agreement;
(R) the Class C-2 Certificate Purchase Agreement; and
(S) the Underwriting Agreement.
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(iv) Uniform Commercial Code financing statements covering all the
security interests created by or pursuant to the Granting Clause of each
United Equipment Indenture shall have been executed and delivered by United
and the relevant United Equipment Indenture Trustee, and such financing
statements shall have been duly filed or arrangements satisfactory to the
Pass Through Trustee shall have been made for filing within 10 days after
the Closing Date, with the Secretary of State of the State of Illinois and
any other places deemed necessary or advisable.
(v) The Pass Through Trustee shall have received the following, in
each case in form and substance satisfactory to it:
(A) a certified copy of the Restated Certificate of
Incorporation and By-Laws of United and a copy of resolutions of the
board of directors of United or the executive committee thereof,
certified by the Secretary or an Assistant Secretary of United, duly
authorizing the execution, delivery and performance by United of this
Agreement and each other Fundamental Document required to be executed
and delivered by United in accordance with the provisions hereof and
thereof;
(B) a copy of the organizational documents, by-laws and general
authorizing resolutions of the boards of directors (or executive
committees) or other satisfactory evidence of authorization of each
United Equipment Indenture Trustee and the Subordination Agent,
certified as of the Closing Date by the Secretary or an Assistant
Secretary of such parties, respectively, which authorize the
execution, delivery and performance by each United Equipment Indenture
Trustee and the Subordination Agent, respectively, of all the
Fundamental Documents to which it is a party, together with such other
documents and evidence with respect to each United Equipment Indenture
Trustee and the Subordination Agent as the Pass Through Trustee may
reasonably request in order to establish the consummation of the
transactions contemplated by this Agreement, the taking of all
corporate proceedings in connection therewith and compliance with the
conditions herein set forth; and
(C) a certificate signed by the Secretary or an Assistant
Secretary of each of United, each United Equipment Indenture Trustee
and the Subordination Agent as to the Person or Persons authorized to
execute and deliver this Agreement and any other Fundamental Document
to be executed on behalf of such party in connection with the
transactions contemplated hereby and as to the signature of such
Person or Persons.
(vi) On the Closing Date, (A) the representations and warranties of
United contained in Section 4 and the representations and warranties of
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each United Equipment Indenture Trustee and the Subordination Agent
contained in Section 5 shall be true and correct in all material respects
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as though made on and as of such date, except to the extent that such
representations and warranties relate solely to an earlier date (in which
case such
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representations and warranties shall have been true and correct in all
material respects on and as of such earlier date), and (B) no event shall
have occurred and be continuing, or would result from the transactions
contemplated hereby, which constitutes (or would, with the passage of time
or the giving of notice or both, constitute) an Indenture Default under any
United Equipment Indenture.
(vii) The Pass Through Trustee shall have received an opinion
addressed to the Pass Through Trustee from (A) the General Counsel or
Assistant General Counsel for United, (B) Vedder, Price, ▇▇▇▇▇▇▇ &
Kammholz, special counsel for United, and (C) ▇▇▇▇▇, ▇▇▇▇▇ & ▇▇▇▇▇, special
counsel for United, in each case with respect to such matters and in form
and substance reasonably satisfactory to the Pass Through Trustee.
(viii) The Pass Through Trustee shall have received an opinion
addressed to the Pass Through Trustee and United from (A) in house German
counsel of the Liquidity Provider, in each case in form and substance
reasonably satisfactory to the Pass Through Trustee, and (B) Winthrop,
Stimson, ▇▇▇▇▇▇ & ▇▇▇▇▇▇▇, special counsel for the Liquidity Provider.
(ix) The Pass Through Trustee shall have received an opinion
addressed to the Pass Through Trustee and United from ▇▇▇▇▇ ▇▇▇▇▇ & ▇▇▇▇▇▇,
special counsel in Oklahoma City, Oklahoma, in form and substance
reasonably satisfactory to the Pass Through Trustee.
(x) The Pass Through Trustee shall have received an opinion
addressed to the Pass Through Trustee and United from ▇▇▇▇▇▇▇ ▇▇▇▇ LLP,
special counsel for the United Equipment Indenture Trustees and the Pass
Through Trustee, in form and substance reasonably satisfactory to the Pass
Through Trustee.
(xi) The Pass Through Trustee shall have received an opinion
addressed to the Pass Through Trustee and United from ▇▇▇▇▇, ▇▇▇▇▇ & ▇▇▇▇▇,
special New York counsel for United, in form and substance reasonably
satisfactory to the Pass Through Trustee.
(xii) The Pass Through Trustee shall have received an independent
insurance broker's report, and certificates of insurance, in form and
substance reasonably satisfactory to it, as to the due compliance with the
terms of Section 4.03 of each United Equipment Indenture with respect to
the Aircraft.
(xiii) The Pass Through Trustee shall have received a report from
each of the Appraisers as to the base value of the Aircraft, in form and
substance satisfactory to the Pass Through Trustee and United.
(xiv) The conditions precedent to the transactions specified in the
Underwriting Agreement, the AFE Note Purchase Agreement and the 747 Leased
Equipment Note
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Purchase Agreement shall have been satisfied (or waived) in accordance with
the terms thereof.
(xv) With respect to each Aircraft, the applicable United Equipment
Indenture shall have been duly filed with the FAA.
(xvi) The conditions precedent under each Participation Agreement
relating to an Aircraft shall have been satisfied (or waived) in accordance
with the terms thereof.
Promptly upon the recording of the United Equipment Indentures pursuant to the
Federal Aviation Act, United shall cause ▇▇▇▇▇ ▇▇▇▇▇ & ▇▇▇▇▇▇, special counsel
in Oklahoma City, Oklahoma, to deliver to the Pass Through Trustee an opinion as
to the due recording by the FAA of the United Equipment Indentures and the lack
of any intervening filings with respect to the Aircraft.
(b) Conditions Precedent to the Obligations of United. The obligations of
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United to participate in the transactions contemplated hereby and to enter into
the Fundamental Documents to which United is a party are all subject to the
fulfillment to the satisfaction of or waiver by United, on or prior to the
Closing Date, of the following conditions precedent:
(i) Those documents described in Section 3(a)(iii) shall have been
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duly authorized, executed and delivered by the respective party or parties
thereto (other than United) in the manner specified in Section 3(a)(iii),
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shall each be satisfactory in form and substance to United, shall be in
full force and effect on the Closing Date, and an executed counterpart of
each thereof shall have been delivered to United or counsel for United.
(ii) United shall have received a copy of the organizational
documents, by-laws and general authorizing resolutions of the boards of
directors (or executive committees) or other satisfactory evidence of
authorization of each United Equipment Indenture Trustee, the Pass Through
Trustee and the Subordination Agent, certified as of the Closing Date by
the Secretary or an Assistant Secretary of each such party, respectively,
that authorize the execution, delivery and performance by each United
Equipment Indenture Trustee, the Pass Through Trustee and the Subordination
Agent, respectively, of all the Fundamental Documents to which each such
party is a party, together with such other documents and evidence with
respect to each United Equipment Indenture Trustee, the Pass Through
Trustee and the Subordination Agent as United or its counsel may reasonably
request in order to establish the consummation of the transactions
contemplated by this Agreement, the taking of all corporate proceedings in
connection therewith and compliance with the conditions set forth herein.
(iii) A certificate signed by the Secretary or an Assistant Secretary
of each United Equipment Indenture Trustee, the Pass Through Trustee and
the Subordination Agent as to the Person or Persons authorized to execute
and deliver this Agreement and any other Fundamental Document to be
executed on behalf of such party in connection with the transactions
contemplated hereby and as to the signature of such Person or Persons.
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(iv) The representations and warranties of each United Equipment
Indenture Trustee, the Pass Through Trustee and the Subordination Agent
contained in Section 5 shall be true and correct in all material respects
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as of the Closing Date as though made on and as of such date, except to the
extent that such representations and warranties relate solely to an earlier
date (in which event such representations and warranties shall have been
true and correct in all material respects on and as of such earlier date).
(v) United shall have received the opinions set forth in Sections
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3(a)(vii)-3(a)(xi) (except receipt by United of the opinions set forth in
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Sections 3(a)(vii) and 3(a)(xi) shall not be a condition precedent to its
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obligations hereunder), in each case addressed to United and dated the
Closing Date and otherwise in form and substance satisfactory to United.
(vi) United shall have received a copy of the reports required to be
delivered pursuant to Section 3(a)(xiii).
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(vii) The conditions precedent to the transactions specified in the
Underwriting Agreement, the AFE Note Purchase Agreement and the 747 Leased
Equipment Note Purchase Agreement shall have been satisfied (or waived) in
accordance with the terms thereof.
(viii) No change shall have occurred after the date of the execution
and delivery of this Agreement in applicable law or regulations thereunder
or interpretations thereof by appropriate regulatory authorities which, in
the opinion of United, would make it a violation of law or regulations for
United to enter into any transaction contemplated by the Fundamental
Documents.
SECTION 4. Representations, Warranties and Covenants of
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United. United represents, warrants and covenants to the Pass Through Trustee
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and each United Equipment Indenture Trustee that:
(1) United is a corporation duly organized and validly existing in
good standing pursuant to the laws of the State of Delaware; is an "air carrier"
within the meaning of 49 U.S.C. 40102(a)(15); holds a certificate of public
convenience and necessity in accordance with 49 U.S.C. Section 41102, and an air
carrier operating certificate issued by the Secretary of Transportation pursuant
to Chapter 447 of Title 49 of United States Code for aircraft capable of
carrying 10 or more individuals or 6,000 pounds or more of cargo, is a "citizen
of the United States" as defined in 49 U.S.C. Section 40102; has its chief
executive office (as such term is defined in Article 9 of the Uniform Commercial
Code) in Elk Grove Township, Illinois; is duly qualified to do business as a
foreign corporation in each jurisdiction in which its operations or the nature
of its business requires, except where the failure to be so qualified would not
have a material adverse effect on the ability of United to perform its
obligations under the Fundamental Documents to which it is a party; holds all
material licenses, certificates, permits and franchises from the appropriate
agencies of the United
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States of America and/or all other governmental authorities having jurisdiction,
necessary to authorize United to engage in air transport and to carry on
scheduled passenger service, in each case as presently conducted; and has, or
had on the respective dates of execution thereof, the corporate power and
authority to conduct its business as it is presently being conducted, and to
enter into and perform its obligations under this Agreement, the United
Equipment Notes issued under the United Equipment Indentures and each other
Fundamental Document to which it is a party.
(2) The execution, delivery and performance by United of this
Agreement, the United Equipment Notes issued under the United Equipment
Indentures and each other Fundamental Document to which it is a party have been
duly authorized by all necessary corporate action on the part of United, do not
require any stockholder approval or approval or consent of any trustee or
holders of any indebtedness or obligations of United, except such as have been
duly obtained, and none of the execution, delivery and performance by United of
this Agreement, such United Equipment Notes or such Fundamental Documents
contravenes any law, judgment, governmental rule, regulation or order binding on
United or the certificate of incorporation or by-laws of United or contravenes
the provisions of, or constitutes a default under, or results in the creation of
any Lien (other than Permitted Liens (as defined in the United Equipment
Indentures)) upon the property of United under, its certificate of incorporation
or bylaws, or any indenture, mortgage, chattel mortgage, deed of trust,
conditional sales contract, bank loan or credit agreement or other agreement or
instrument to which United is a party or by which it or its properties may be
bound or affected which contravention, default or Lien, individually or in the
aggregate, would be reasonably likely to have a material adverse effect on the
ability of United to perform its obligations under the Fundamental Documents to
which it is a party.
(3) Neither the execution and delivery by United of this Agreement,
the United Equipment Notes issued under the United Equipment Indentures or any
other Fundamental Document to which it is a party nor the performance by United
of its obligations hereunder or thereunder require the consent or approval of,
the giving of notice to, or the registration with, or the taking of any other
action in respect of any federal, state, local or foreign government authority
or agency, except for (A) any required qualifications of each Pass Through Trust
Agreement under the Trust Indenture Act of 1939, as amended, pursuant to an
order of the Securities and Exchange Commission, (B) the filings referred to in
Section 3(a)(iv), (C) authorizations, consents, approvals, actions, notices and
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filings required to be obtained, taken, given or made, the failure to obtain,
take, give or make would not have a material adverse effect on the financial
condition, properties or results of operations of United, (D) any normal
periodic and other reporting requirements under the applicable rules and
regulations of the FAA to the extent required to be given or obtained after the
Closing Date, and (E) the recordings with the FAA described in the opinion
referred to in Section 3(a)(ix).
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(4) This Agreement, the United Equipment Notes issued under the
United Equipment Indentures and each other Fundamental Document to which United
is a party have been duly executed and delivered by United and constitute legal,
valid and binding obligations of United enforceable against United in accordance
with the terms thereof, except as the same may be limited
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by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting the rights of creditors generally and by general principles of equity,
whether considered in a proceeding at law or in equity.
(5) There has not occurred any event that constitutes an Indenture
Default under any United Equipment Indenture that is presently continuing and
there has not occurred any event that constitutes or would, with the passage of
time or the giving of notice, or both, constitute an Event of Loss (as defined
in the applicable United Equipment Indenture) under any United Equipment
Indenture.
(6) Neither United nor anyone acting on behalf of United has offered
any interest in any Pass Through Certificate or any United Equipment Note in a
manner that would violate the Securities Act of 1933, as amended, the
regulations thereunder, administrative and judicial interpretation thereof or
the securities laws, rules or regulations of any state.
(7) Neither United nor any subsidiary of United is an "investment
company" or a company "controlled by an investment company" within the meaning
of the Investment Company Act of 1940, as amended.
(8) Except for the proceedings described in the discussion of Legal
Proceedings in United's Annual Report on Form 10-K for the year ended December
31, 1999 and subsequently filed Form 10-Qs filed prior to the Closing Date,
there are no pending or, to the knowledge of United, threatened actions or
proceedings before any court or administrative agency which individually (or in
the aggregate in the case of any group of related lawsuits) would have a
material adverse effect on the financial condition of United or the ability of
United to perform its obligations hereunder or under any Fundamental Document to
which United is a party.
(9) None of the proceeds from the sale of the United Equipment Notes
will be used directly or indirectly by United to purchase or carry any "margin
stock" as such term is defined in Regulation T or U of the Board of Governors of
the Federal Reserve System.
(10) United agrees to pay to the Subordination Agent any amounts
required to be paid by the Subordination Agent pursuant to Sections 2.03, 3.01,
3.02, 3.03, 3.09, 7.05 and 7.07 of any Liquidity Facility.
(11) United agrees to give each United Equipment Indenture Trustee and
the Pass Through Trustee at least 30 days' prior written notice of any
relocation of its chief executive office from its present location.
(12) If United were to become a debtor under the Bankruptcy Code, each
United Equipment Indenture Trustee, as mortgagee under the related United
Equipment Indenture, would be entitled with respect to all obligations secured
thereby to the benefits of Section 1110 of the Bankruptcy Code with respect to
the relevant Aircraft.
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(13) Each Aircraft has been duly certified by the FAA as to type and
airworthiness and such certification remains in full force and effect.
(14) With respect to the Aircraft, the applicable United Equipment
Indenture has been duly filed for recording with the FAA pursuant to the Federal
Aviation Act.
SECTION 5. Representations, Warranties and Covenants of Other
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Parties. Each of the parties below represents, warrants and covenants to each
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of the other parties to this Agreement as follows:
(1) Each United Equipment Indenture Trustee represents, warrants and
covenants that:
(i) such United Equipment Indenture Trustee is a national
banking association duly organized, validly existing and in good
standing under the laws of the United States of America, is a "citizen
of the United States" as defined in 49 U.S.C. Section 40102(a)(15)
(without making use of a voting trust agreement, voting powers
agreement or similar arrangements) and will resign as United Equipment
Indenture Trustee promptly after it obtains actual knowledge that it
has ceased to be such a citizen, and has, or had on the respective
dates of execution thereof, the full corporate power, authority and
legal right under the laws of the State of Connecticut and the United
States of America pertaining to its banking, trust and fiduciary
powers to execute and deliver this Agreement and each other
Fundamental Document to which it is a party, to authenticate the
United Equipment Notes and to carry out its obligations under this
Agreement and each other Fundamental Document to which it is a party;
(ii) the execution and delivery by such United Equipment
Indenture Trustee of this Agreement and each other Fundamental
Document to which it is a party, the authentication of the United
Equipment Notes and the performance by such United Equipment Indenture
Trustee of its obligations under this Agreement and each other
Fundamental Document to which it is a party have been duly authorized
by such United Equipment Indenture Trustee and will not violate its
charter or by-laws, the provisions of any indenture, mortgage,
contract or other agreement to which it is a party or by which it is
bound or any federal or Connecticut law or regulation relating to the
banking, trust or fiduciary powers of such United Equipment Indenture
Trustee;
(iii) this Agreement and each other Fundamental Document to
which such United Equipment Indenture Trustee is a party have been
duly authorized, executed and delivered by such United Equipment
Indenture Trustee; this Agreement constitutes, and each Fundamental
Document to which such United Equipment
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Indenture Trustee is a party, when it has been executed and delivered
by such United Equipment Indenture Trustee, will constitute, the
legal, valid and binding obligations of such United Equipment
Indenture Trustee enforceable against it in accordance with their
respective terms, except as the same may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting the rights of creditors generally and by general principles
of equity, whether considered in a proceeding at law or in equity;
(iv) no consent, approval, order or authorization of, giving of
notice to, or registration or filing with, or taking of any other
action in respect of, any Connecticut state or local governmental
authority or agency or any United States federal governmental
authority or agency regulating the banking or trust powers of such
United Equipment Indenture Trustee is required for the execution and
delivery of, or the carrying out by, such United Equipment Indenture
Trustee, of any of the transactions contemplated by any of the
Fundamental Documents to which such United Equipment Indenture Trustee
is or is to be a party, other than any such consent, approval, order,
authorization, registration, notice or action as has been duly
obtained, given or taken; and
(v) there are no pending or threatened actions or proceedings
against such United Equipment Indenture Trustee before any court or
administrative agency which, if determined adversely to it, would have
a material adverse effect on the ability of such United Equipment
Indenture Trustee to perform its obligations under this Agreement or
any other Fundamental Document executed by such United Equipment
Indenture Trustee in connection with the transactions contemplated by
the Fundamental Documents.
(2) The Pass Through Trustee represents, warrants and covenants that:
(i) the Pass Through Trustee is a national banking association
duly organized, validly existing and in good standing under the laws
of the United States of America, and has the full corporate power,
authority and legal right under the laws of the State of Connecticut
and the United States of America pertaining to its banking, trust and
fiduciary powers to execute and deliver this Agreement and each other
Fundamental Document to which it is a party and to perform its
obligations hereunder and thereunder;
(ii) this Agreement and each other Fundamental Document to which
the Pass Through Trustee is a party have been duly authorized,
executed and delivered by the Pass Through Trustee; this Agreement and
each other Fundamental Document to which the Pass Through Trustee is a
party constitute the legal, valid and binding obligations of the Pass
Through Trustee enforceable against it in accordance with their
respective terms, except as the same may be limited by applicable
bankruptcy,
12
insolvency, reorganization, moratorium or similar laws affecting the
rights of creditors generally and by general principles of equity,
whether considered in a proceeding at law or in equity;
(iii) none of the execution, delivery and performance by the
Pass Through Trustee of this Agreement or any other Fundamental
Document to which the Pass Through Trustee is a party, the purchase by
the Pass Through Trustee of the United Equipment Notes pursuant to
this Agreement, or the issuance and sale of the Pass Through
Certificates pursuant to the Pass Through Trust Agreements, and the
Purchase Agreements, contravenes any law, rule or regulation of the
State of Connecticut or any United States governmental authority or
agency regulating the Pass Through Trustee's banking, trust or
fiduciary powers or any judgment or order applicable to or binding on
the Pass Through Trustee and do not contravene or result in any breach
of, or constitute a default under, the Pass Through Trustee's charter
or by-laws or any agreement or instrument to which the Pass Through
Trustee is a party or by which it or any of its properties may be
bound;
(iv) neither the execution and delivery by the Pass Through
Trustee of this Agreement or any of the other Fundamental Documents to
which the Pass Through Trustee is a party, nor the consummation by the
Pass Through Trustee of any of the transactions contemplated hereby or
thereby, requires the consent or approval of, the giving of notice to,
the registration with, or the taking of any other action with respect
to, any Connecticut governmental authority or agency or any Federal
governmental authority or agency regulating the Pass Through Trustee's
banking, trust or fiduciary powers;
(v) there are no Taxes payable by the Pass Through Trustee
imposed by the State of Connecticut or any political subdivision or
taxing authority thereof in connection with the execution, delivery
and performance by the Pass Through Trustee of this Agreement or any
other Fundamental Document to which the Pass Through Trustee is a
party (other than franchise or other taxes based on or measured by any
fees or compensation received by the Pass Through Trustee for services
rendered in connection with the transactions contemplated by the Pass
Through Trust Agreements), and there are no Taxes payable by the Pass
Through Trustee imposed by the State of Connecticut or any political
subdivision thereof in connection with the acquisition, possession or
ownership by the Pass Through Trustee of any of the United Equipment
Notes (other than franchise or other taxes based on or measured by any
fees or compensation received by the Pass Through Trustee for services
rendered in connection with the transactions contemplated by the Pass
Through Trust Agreements);
(vi) there are no pending or threatened actions or proceedings
against the Pass Through Trustee before any court or administrative
agency which individually
13
or in the aggregate, if determined adversely to it, would have a
material adverse effect on the ability of the Pass Through Trustee to
perform its obligations under this Agreement or any other Fundamental
Document to which the Pass Through Trustee is a party;
(vii) except for the issue and sale of the United Equipment
Notes contemplated hereby, the Pass Through Trustee has not directly
or indirectly offered any United Equipment Notes for sale to any
Person or solicited any offer to acquire any United Equipment Notes
from any Person, nor has the Pass Through Trustee authorized anyone to
act on its behalf to offer directly or indirectly any Equipment Note
for sale to any Person, or to solicit any offer to acquire any
Equipment Note from any Person; and the Pass Through Trustee is not in
default under any Pass Through Trust Agreement; and
(viii) the Pass Through Trustee is not directly or indirectly
controlling, controlled by or under common control with United.
(3) The Subordination Agent represents, warrants and covenants that:
(i) the Subordination Agent is a national banking association
duly organized, validly existing and in good standing under the laws
of the United States of America, and has the full corporate power,
authority and legal right under the laws of the State of Connecticut
and the United States of America pertaining to its banking, trust and
fiduciary powers to execute and deliver this Agreement and each other
Fundamental Document to which it is a party and to perform its
obligations hereunder and thereunder;
(ii) this Agreement and each other Fundamental Document to which
it is a party have been duly authorized, executed and delivered by the
Subordination Agent; this Agreement and each other Fundamental
Document to which it is a party constitute the legal, valid and
binding obligations of the Subordination Agent enforceable against it
in accordance with their respective terms, except as the same may be
limited by applicable bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting the rights of creditors generally
and by general principles of equity, whether considered in a
proceeding at law or in equity;
(iii) none of the execution, delivery and performance by the
Subordination Agent of this Agreement or any other Fundamental
Document to which the Subordination Agent is a party contravene any
law, rule or regulation of the State of Connecticut or any United
States governmental authority or agency regulating the Subordination
Agent's banking, trust or fiduciary powers or any judgment or order
applicable to or binding on the Subordination Agent and does not
contravene or result in any breach of, or constitute a default under,
the Subordination Agent's
14
charter or by-laws or any agreement or instrument to which the
Subordination Agent is a party or by which it or any of its properties
may be bound;
(iv) neither the execution and delivery by the Subordination
Agent of this Agreement or any other Fundamental Document to which the
Subordination Agent is a party nor the consummation by the
Subordination Agent of any of the transactions contemplated hereby or
thereby requires the consent or approval of, the giving of notice to,
the registration with, or the taking of any other action with respect
to, any Connecticut governmental authority or agency or any federal
governmental authority or agency regulating the Subordination Agent's
banking, trust or fiduciary powers;
(v) there are no Taxes payable by the Subordination Agent
imposed by the State of Connecticut or any political subdivision or
taxing authority thereof in connection with the execution, delivery
and performance by the Subordination Agent of this Agreement or any
other Fundamental Document to which the Subordination Agent is a party
(other than franchise or other taxes based on or measured by any fees
or compensation received by the Subordination Agent for services
rendered in connection with the transactions contemplated by the
Intercreditor Agreement or any Liquidity Facility), and there are no
Taxes payable by the Subordination Agent imposed by the State of
Connecticut or any political subdivision thereof in connection with
the acquisition, possession or ownership by the Subordination Agent of
any of the United Equipment Notes (other than franchise or other taxes
based on or measured by any fees or compensation received by the
Subordination Agent for services rendered in connection with the
transactions contemplated by the Intercreditor Agreement or any
Liquidity Facility);
(vi) there are no pending or threatened actions or proceedings
against the Subordination Agent before any court or administrative
agency which individually or in the aggregate, if determined adversely
to it, would materially adversely affect the ability of the
Subordination Agent to perform its obligations under this Agreement or
any other Fundamental Document to which the Subordination Agent is a
party;
(vii) the Subordination Agent has not directly or indirectly
offered any United Equipment Notes for sale to any Person or solicited
any offer to acquire any United Equipment Notes from any Person, nor
has the Subordination Agent authorized anyone to act on its behalf to
offer directly or indirectly any Equipment Note for sale to any
Person, or to solicit any offer to acquire any Equipment Note from any
Person; and the Subordination Agent is not in default under any
Liquidity Facility; and
15
(viii) the Subordination Agent is not directly or indirectly
controlling, controlled by or under common control with United.
SECTION 6. Notices. Unless otherwise specifically provided
-------
herein, all notices required or permitted by the terms of this Agreement shall
be in English and in writing, and any such notice shall become effective five
days after being deposited in the United States mail, with proper postage for
first-class registered or certified mail prepaid, or when delivered personally
or, if promptly confirmed by mail as provided above, when dispatched by
facsimile or other written telecommunication, addressed, if to United, the Pass
Through Trustee, the Subordination Agent or any United Equipment Indenture
Trustee, at their respective addresses or facsimile numbers set forth on
Schedule 1.
----------
SECTION 7. Expenses. All of the reasonable out-of-pocket costs,
--------
fees and expenses incurred by the Pass Through Trustee, the Subordination Agent,
the Liquidity Provider and the United Equipment Indenture Trustees in connection
with the transactions contemplated by this Agreement shall be paid on or prior
to the Closing Date by United on a net after-tax basis.
SECTION 8. Miscellaneous. (a) Provided that the transactions
-------------
contemplated hereby have been consummated, and except as otherwise provided for
herein, the representations, warranties and agreements herein of United, each
United Equipment Indenture Trustee, the Subordination Agent and the Pass Through
Trustee, and United's, each United Equipment Indenture Trustee's, the
Subordination Agent's and the Pass Through Trustee's obligations hereunder,
shall survive the expiration or other termination of this Agreement and the
other agreements referred to herein.
(b) This Agreement may be executed in any number of counterparts and
each counterpart of this Agreement, including a signature page executed by each
of the parties hereto, shall be an original counterpart of this Agreement, but
all of such counterparts together shall constitute one instrument. Neither this
Agreement nor any of the terms hereof may be terminated, amended or waived
orally, but only by an instrument in writing signed by the party against which
the enforcement of the termination, amendment or waiver is sought; and no such
termination, amendment or waiver shall be effective unless a signed copy thereof
shall have been delivered to each United Equipment Indenture Trustee. The table
of contents preceding this Agreement and the headings of the various Sections of
this Agreement are for convenience of reference only and shall not modify,
define, expand or limit any of the terms or provisions hereof. The terms of
this Agreement shall be binding upon, and shall inure to the benefit of, United
and its successors and permitted assigns, the Pass Through Trustee and its
successors as Pass Through Trustee (and any additional trustee properly
appointed) under any of the Trust Supplements, any United Equipment Indenture
Trustee and its successors as United Equipment Indenture Trustee (and any
additional United Equipment Indenture Trustee properly appointed) under any
United Equipment Indenture and the Subordination Agent and its successors as
Subordination Agent under the Intercreditor Agreement.
16
(c) This Agreement is not intended to, and shall not, provide any
Person not a party hereto with any rights of any nature whatsoever against any
of the parties hereto, and no Person not a party hereto shall have any right,
power or privilege in respect of, or have any benefit or interest arising out
of, this Agreement; provided, however, that each of the parties hereto agrees
-------- -------
and acknowledges that the Liquidity Provider shall be a third party beneficiary
of each of the representations and warranties made herein by such party, and
that the Liquidity Provider may rely on such representations and warranties to
the same extent as if such representations and warranties were made to the
Liquidity Provider directly. The terms of this Agreement shall inure to the
benefit of the Liquidity Provider, its successors and permitted assigns.
(d) THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD TO THE PRINCIPLES OF
CONFLICTS OF LAWS THEREOF (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL
OBLIGATIONS LAW)), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES UNDER
THIS AGREEMENT SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.
(e) Each of the parties hereto hereby irrevocably and
unconditionally:
(i) submits for itself and its property in any legal action or
proceeding relating to this Agreement or any other Fundamental
Document, or for recognition and enforcement of any judgment in
respect hereof or thereof, to the non-exclusive general jurisdiction
of the courts of the State of New York, the courts of the United
States of America for the Southern District of New York, and the
appellate courts from any thereof;
(ii) consents that any such action or proceeding may be brought
in such courts, and waives any objection that it may now or hereafter
have to the venue of any such action or proceeding in any such court
or that such action or proceeding was brought in an inconvenient court
and agrees not to plead or claim the same;
(iii) agrees that service of process in any such action or
proceeding may be effected by mailing a copy thereof by registered or
certified mail (or any substantially similar form and mail, postage
prepaid, to each party hereto at its address set forth in Schedule I,
----------
or at such other address of which the other Person shall have been
notified pursuant thereto; and
(iv) agrees that nothing herein shall affect the right to effect
service of process in any other manner permitted by law or shall limit
the right to ▇▇▇ in any other jurisdiction.
(f) EACH OF THE PARTIES HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE
RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT
OF THIS AGREEMENT OR ANY DEALINGS BETWEEN THEM
17
RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT AND THE RELATIONSHIP THAT IS
BEING ESTABLISHED, including contract claims, tort claims, breach of duty claims
and all other common law and statutory claims. Each of the parties warrants and
represents that it has reviewed this waiver with its legal counsel, and that it
knowingly and voluntarily waives its jury trial rights following consultation
with such legal counsel. THIS WAIVER IS IRREVOCABLE, AND CANNOT BE MODIFIED
EITHER ORALLY OR IN WRITING, AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT
AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT.
[signature pages follow]
18
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed by their respective officers thereunto duly authorized as of the
day and year first above written.
UNITED AIR LINES, INC.
By:_____________________________
Name:
Title:
▇-▇
▇▇▇▇▇ ▇▇▇▇▇▇ BANK AND TRUST COMPANY
OF CONNECTICUT, NATIONAL ASSOCIATION,
not in its individual capacity, except as otherwise
provided herein, but solely as United Equipment
Indenture Trustee, Pass Through Trustee and
Subordination Agent
By:_________________________________________________
Name:
Title:
S-2
SCHEDULE I to
United Equipment Note Purchase Agreement
NAMES; ADDRESSES AND WIRE INSTRUCTIONS
--------------------------------------
UNITED:
------
Address for Notices:
If by U.S. Mail
---------------
United Air Lines, Inc.
▇.▇. ▇▇▇ ▇▇▇▇▇
▇▇▇▇▇
▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Attention: Vice President and Treasurer
Telecopy: (▇▇▇) ▇▇▇-▇▇▇▇
If by Overnight Delivery Service
--------------------------------
United Air Lines, Inc.
▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇
WHQFT
Elk Grove Township, IL 60007
Attention: Vice President and Treasurer
Telecopy: (▇▇▇) ▇▇▇-▇▇▇▇
PASS THROUGH TRUSTEE, SUBORDINATION AGENT AND UNITED EQUIPMENT INDENTURE
------------------------------------------------------------------------
TRUSTEE:
-------
Address for Notices:
State Street Bank and Trust Company
of Connecticut, National Association
▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇ Square
Hartford, Connecticut 06103
Attention: Corporate Trust Division
Telecopy: (▇▇▇) ▇▇▇-▇▇▇▇
and
State Street Bank and Trust Company
of Connecticut, National Association
c/o ▇ ▇▇▇▇▇▇ ▇▇ ▇▇▇▇▇▇▇▇▇, ▇/▇▇/ ▇▇▇▇▇
▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇
Attention: Corporate Trust
Telecopy: (▇▇▇) ▇▇▇-▇▇▇▇
S-4
SCHEDULE II to
United Equipment Note Purchase Agreement
UNITED EQUIPMENT NOTES,
PURCHASERS AND PURCHASE PRICE
-----------------------------
[To be completed by VPKK]
Series Purchaser Principal Amount
------ --------- ----------------
Interest Rate
-------------