Exhibit 10.31
EXECUTION VERSION
N296SK
Chautauqua Airlines, Inc.
0000 Xxxxx Xxxx Xxxxxx Xxxx
Xxxxxxxxxxxx, Xxxxxxx 00000
December 20, 2001
Xxxxx Fargo Bank Northwest, National Association
00 Xxxxx Xxxx Xxxxxx
Xxxx Xxxx Xxxx, Xxxx 00000
Silvermine River Finance Two, Inc.
000 Xxxx Xxxxx Xxxx
Xxxxxxxx, Xxxxxxxxxxx 00000
Re: Participation Agreement [N296SK], dated as of December 20, 2001 (the
"Participation Agreement"), among Chautauqua Airlines, Inc. (the "Lessee"),
Silvermine River Finance Two, Inc. ("Silvermine") and Xxxxx Fargo Bank
Northwest, National Association, as Owner Trustee (the "Owner Trustee").
Capitalized terms used and not defined herein shall be given the meanings
assigned in the Participation Agreement.
Dear Madams/Sirs:
The parties hereto agree that this letter shall be an Operative Agreement and
that for all purposes of the Participation Agreement and other Operative
Agreements, the first paragraph of Section 4.02(e) of the Participation
Agreement shall be deemed to be amended by adding at the end thereof:
"In addition to the foregoing requirements, so long as Silvermine or an
Affiliate of GECC (including for avoidance of doubt, Silvermine) is the
Owner Participant, (x) during the first five (5) years of the Term, the
Lessee shall not enter into any merger with or into or consolidation with,
or sell, convey, transfer, lease or otherwise dispose of in one or a series
of transactions all or substantially all of its assets to any Person nor
shall Wexford Air Holdings, Inc. (the "Wexford Shareholder") sell any of
its shares of common stock in the Lessee (collectively, a "Transaction")
without the prior written consent of the Lessor, such consent not to be
unreasonably withheld, unless: (a) following such Transaction, the Wexford
Shareholder is the shareholder owning the greatest number of shares of
common stock of the Lessee or other surviving entity; or (b) the acquiring
or successor entity in such Transaction is a Certificated Air Carrier with
a tangible net worth of not less than $50,000,000 or a Group III air
carrier as determined under 14 CFR 241, Section 04 (or, if such
determination has not been made, an air carrier with
annual operating revenues of $1,000,000,000) or (c) immediately following
the Transaction, Lessee receives and retains net proceeds of at least
$25,000,000; and (y) clause (2) of the proviso in the immediately preceding
sentence shall not apply during the first five (5) years of the Term with
respect to any Transaction that otherwise fully satisfies any one of the
conditions set forth in subclauses (a), (b) or (c) in clause (x) of this
paragraph.
The agreement stated in this letter is for the sole benefit of Silvermine
and its Affiliates and shall terminate if at any time Silvermine or an
Affiliate ceases to be the Owner Participant. Each party agrees that it
will not disclose the terms of this letter (other than to its accountants,
attorneys, agents or consultants), including to potential assignees, except
as required by law.
If you agree with the terms of this letter, please so indicate by executing
the letter where indicated below.
[SIGNATURE PAGE FOLLOWS]
Very truly yours,
CHAUTAUQUA AIRLINES, INC.
By:
------------------------
Name:
Title:
ACCEPTED AND AGREED:
XXXXX FARGO BANK NORTHWEST, NATIONAL ASSOCIATION,
as Owner Trustee
By:
------------------------
Name:
Title:
SILVERMINE RIVER FINANCE TWO, INC.
By:
------------------------
Name:
Title:
NOTE TO EXHIBIT 10.31
The 12 additional Letter Agreements are substantially identical
in all material respects to the filed Letter Agreement except as follows:
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TAIL NUMBER CLOSING DATE OWNER-PARTICIPANT
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N289SK July, 2001 General Electric Capital Corp.
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N290SK July, 2001 General Electric Capital Corp.
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N291SK August, 2001 General Electric Capital Corp.
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N292SK August, 2001 General Electric Capital Corp.
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N293SK September, 2001 General Electric Capital Corp.
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N294SK September, 2001 General Electric Capital Corp.
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N295SK November, 2001 Silvermine River Finance Two, Inc.
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N297SK November, 2001 Silvermine River Finance Two, Inc.
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N298SK October, 2001 Silvermine River Finance Two, Inc.
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N299SK November, 2001 Silvermine River Finance Two, Inc.
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N370SK November, 2001 Silvermine River Finance Two, Inc.
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N371SK November, 2001 Silvermine River Finance Two, Inc.
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