GREAT LAKES AVIATION, LTD.,
0000 000XX XXXXXX
XXXXXXX, XXXX 00000
January 5, 2000
Coast Business Credit
00000 Xxxxxxxx Xxxxxxxxx, Xxxxx 0000
Xxx Xxxxxxx, Xxxxxxxxxx 00000
Ladies and Gentlemen:
This letter is provided in connection with the Loan and Security
Agreement, dated as of December 31, 1999, between Great Lakes Aviation, Ltd., an
Iowa corporation ("Borrower") and Coast Business Credit, a division of Southern
Pacific Bank, a California corporation ("Coast') (the "Loan Agreement"). All
initially capitalized terms not otherwise defined herein will have the meanings
given to such terms in the Loan Agreement.
Pursuant to the terms of the Loan Agreement and prior to the first
advance of funds, Borrower is required to fulfill all "Conditions Precedent"
including, without limitation, those described in Sections 5.17 and 5.18 of the
Loan Agreement. This letter is delivered in connection with those certain
Sections 5.17 and 5.18.
With respect to Section 5.17, Borrower represents and warrants that it
is in compliance with: (i) all directives/regulations of the Federal Aviation
Administration, the Department of Transportation and any other governmental
entities, and (ii) all provisions of the United Agreement; where the failure to
comply with same could result in a Material Adverse Effect.
With respect to Section 5.18, Borrower represents and warrants that
its Air Operator Certificate is in good standing and that it has complied in all
material respects with all provisions of federal, state and local laws and
regulations, as applicable, relating to Borrower's maintaining its Air Operator
Certificate in good standing.
Sincerely,
GREAT LAKES AVIATION, LTD.,
an Iowa corporation
By: /s/ Xxxxxx X. Xxxxxx
-----------------------------------
Name: Xxxxxx X. Xxxxxx
---------------------------------
Title: CFO
---------------------------------
