1
EXHIBIT 4(C)(4)
REVOLVING CREDIT AGREEMENT
(2000-1C)
Dated as of November 16, 2000
between
STATE STREET BANK AND TRUST COMPANY OF CONNECTICUT,
NATIONAL ASSOCIATION,
as Subordination Agent,
as agent and trustee for the trustee of
Delta Air Lines Pass Through Trust 2000-1C,
as Borrower
and
WESTDEUTSCHE LANDESBANK GIROZENTRALE, NEW YORK BRANCH
as Liquidity Provider
Delta Air Lines Pass Through Trust 2000-1C
7.779% Delta Air Lines
Pass Through Certificates,
Series 2000-1C
2
TABLE OF CONTENTS
Page
----
ARTICLE I DEFINITIONS
Section 1.01. Definitions........................................................................................ 1
ARTICLE II AMOUNT AND TERMS OF THE COMMITMENT
Section 2.01. The Advances....................................................................................... 8
Section 2.02. Making of Advances................................................................................. 8
Section 2.03. Fees............................................................................................... 10
Section 2.04. Reduction or Termination of the Maximum Commitment................................................. 10
Section 2.05. Repayments of Interest Advances or the Final Advance............................................... 11
Section 2.06. Repayments of Provider Advances.................................................................... 11
Section 2.07. Payments to the Liquidity Provider Under the Intercreditor Agreement............................... 12
Section 2.08. Book Entries....................................................................................... 12
Section 2.09. Payments from Available Funds Only................................................................. 13
Section 2.10. Extension of the Expiry Date; Non-Extension Advance................................................ 13
ARTICLE III OBLIGATIONS OF THE BORROWER
Section 3.01. Increased Costs.................................................................................... 14
Section 3.02. [Intentionally omitted.]........................................................................... 15
Section 3.03. Withholding Taxes.................................................................................. 15
Section 3.04. Payments........................................................................................... 16
Section 3.05. Computations....................................................................................... 16
Section 3.06. Payment on Non-Business Days....................................................................... 16
Section 3.07. Interest........................................................................................... 16
Section 3.08. Replacement of Borrower............................................................................ 18
Section 3.09. Funding Loss Indemnification....................................................................... 18
Section 3.10. Illegality......................................................................................... 18
ARTICLE IV CONDITIONS PRECEDENT
Section 4.01. Conditions Precedent to Effectiveness of Section 2.01.............................................. 19
Section 4.02. Conditions Precedent to Borrowing.................................................................. 20
ARTICLE V COVENANTS
Section 5.01. Affirmative Covenants of the Borrower.............................................................. 20
Section 5.02. Negative Covenants of the Borrower................................................................. 21
ARTICLE VI LIQUIDITY EVENTS OF DEFAULT
Section 6.01. Liquidity Events of Default........................................................................ 21
ARTICLE VII MISCELLANEOUS
Section 7.01. No Oral Modifications or Continuing Waivers........................................................ 22
Section 7.02. Notices............................................................................................ 22
i
3
Section 7.03. No Waiver; Remedies................................................................................ 23
Section 7.04. Further Assurances................................................................................. 23
Section 7.05. Indemnification; Survival of Certain Provisions.................................................... 23
Section 7.06. Liability of the Liquidity Provider................................................................ 23
Section 7.07. Certain Costs and Expenses......................................................................... 24
Section 7.08. Binding Effect; Participations..................................................................... 24
Section 7.09. Severability....................................................................................... 25
Section 7.10. Governing Law...................................................................................... 25
Section 7.11. Submission to Jurisdiction; Waiver of Jury Trial; Waiver of Immunity............................... 26
Section 7.12. Counterparts....................................................................................... 26
Section 7.13. Entirety........................................................................................... 26
Section 7.14. Headings........................................................................................... 27
Section 7.15. Liquidity Provider's Obligation to Make Advances................................................... 27
Annex I - Interest Advance Notice of Borrowing
Annex II - Non-Extension Advance Notice of Borrowing
Annex III - Downgrade Advance Notice of Borrowing
Annex IV - Final Advance Notice of Borrowing
Annex V - Notice of Termination
Annex VI - Notice of Replacement Subordination Agent
ii
4
REVOLVING CREDIT AGREEMENT
This REVOLVING CREDIT AGREEMENT, dated as of November 16, 2000, is
made by and between STATE STREET BANK AND TRUST COMPANY OF CONNECTICUT,
NATIONAL ASSOCIATION, a national banking association, not in its individual
capacity but solely as Subordination Agent (such term and other capitalized
terms used herein without definition being defined as provided in Article I)
under the Intercreditor Agreement (as defined below), as agent and trustee for
the Class C Trustee (in such capacity, together with its successors in such
capacity, the "BORROWER"), and WESTDEUTSCHE LANDESBANK GIROZENTRALE, a German
banking institution organized under the laws of the State of North
Rhine-Westphalia ("WestLB"), acting through its New York Branch (the "LIQUIDITY
PROVIDER").
W I T N E S S E T H:
WHEREAS, pursuant to the Class C Trust Agreement, the Class C Trust is
issuing the Class C Certificates; and
WHEREAS, the Borrower, in order to support the timely payment of a
portion of the interest on the Class C Certificates in accordance with their
terms, has requested the Liquidity Provider to enter into this Agreement,
providing in part for the Borrower to request in specified circumstances that
Advances be made hereunder;
NOW, THEREFORE, in consideration of the mutual agreements herein
contained, and of other good and valuable consideration the receipt and
adequacy of which are hereby acknowledged, the parties hereto agree as follows:
ARTICLE I
DEFINITIONS
Section 1.01. Definitions. (a) The definitions stated herein apply
equally to both the singular and the plural forms of the terms defined.
(b) All references in this Agreement to designated "Articles",
"Sections", "Annexes" and other subdivisions are to the designated Article,
Section, Annex or other subdivision of this Agreement, unless otherwise
specifically stated.
(c) The words "herein", "hereof" and "hereunder" and other words
of similar import refer to this Agreement as a whole and not to any particular
Article, Section, Annex or other subdivision.
(d) Unless the context otherwise requires, whenever the words
"including", "include" or "includes" are used herein, it shall be deemed to be
followed by the phrase "without limitation".
(e) For the purposes of this Agreement, unless the context
otherwise requires, the following capitalized terms shall have the following
meanings:
5
"ADVANCE" means an Interest Advance, a Final Advance, a
Provider Advance, an Applied Provider Advance or an Unpaid Advance, as
the case may be.
"AGREEMENT" means this Agreement, as the same may be amended,
supplemented or otherwise modified from time to time in accordance
with its terms.
"APPLICABLE LIQUIDITY RATE" has the meaning specified in
Section 3.07(g).
"APPLICABLE MARGIN" means with respect to any Unpaid Advance
or Applied Provider Advance, 2.00%.
"APPLIED DOWNGRADE ADVANCE" has the meaning specified in
Section 2.06(a).
"APPLIED NON-EXTENSION ADVANCE" has the meaning specified in
Section 2.06(a).
"APPLIED PROVIDER ADVANCE" means an Applied Downgrade Advance
or an Applied Non-Extension Advance.
"BASE RATE" means a fluctuating interest rate per annum in
effect from time to time, which rate per annum shall at all times be
equal to the weighted average of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by
Federal funds brokers, as published for each day in the period for
which the Base Rate is to be determined (or, if such day is not a
Business Day, for the preceding Business Day) by the Federal Reserve
Bank of New York, or if such rate is not so published for any day that
is a Business Day, the average of the quotations for such day for such
transactions received by the Liquidity Provider from three Federal
funds brokers of recognized standing selected by it (and reasonably
satisfactory to Delta) plus one-quarter of one percent (0.25%).
"BASE RATE ADVANCE" means an Advance that bears interest at a
rate based upon the Base Rate.
"BORROWER" has the meaning specified in the introductory
paragraph to this Agreement.
"BORROWING" means the making of Advances requested by
delivery of a Notice of Borrowing.
"BUSINESS DAY" means any day other than a Saturday, a Sunday
or a day on which commercial banks are required or authorized to close
in New York, New York, Atlanta, Georgia, or, so long as any Class C
Certificate is outstanding, the city and state in which the Class C
Trustee, the Borrower or any related Loan Trustee maintains its
Corporate Trust Office or receives or disburses funds, and, if the
applicable Business Day relates to any Advance or other amount bearing
interest based on the LIBOR Rate, on which dealings are carried on in
the London interbank market.
"CONSENT NOTICE" has the meaning specified in Section 2.10.
2
6
"CONSENT PERIOD" has the meaning specified in Section 2.10.
"COVERED TAXES" means any Taxes imposed by the United States
or any political subdivision or taxing authority thereof or therein
required by law to be deducted or withheld from any amounts payable to
the Liquidity Provider under this Agreement other than (i) any Tax on,
based on or measured by net income, franchises or conduct of business,
(ii) any Tax imposed, levied, withheld or assessed as a result of any
connection between the Liquidity Provider and the United States or
such political subdivision or taxing authority, other than a
connection arising solely from the Liquidity Provider's having
executed, delivered, performed its obligations or received a payment
under, or enforced, any Operative Agreement, (iii) any Tax
attributable to the inaccuracy in or breach by the Liquidity Provider
of any of its representations, warranties or covenants contained in
any Operative Agreement to which it is a party or the inaccuracy of
any form or document furnished pursuant thereto, (iv) any withholding
Taxes imposed by the United States except to the extent such
withholding Taxes would not have been required to be deducted or
withheld from payments hereunder but for a change after the date
hereof (or in the case of a successor Liquidity Provider (including a
transferee of an Advance) after the date on which such successor
Liquidity Provider obtains its interest) in applicable law (excluding
from "change in applicable law" for this purpose, a change in an
applicable treaty or other change in law affecting the applicability
of a treaty other than the applicable income tax treaty between the
United States of America and the Federal Republic of Germany ("German
Treaty") (except an addition to, or change in any "anti-treaty
shopping", "limitation of benefits" or similar provision in such
German Treaty)), (v) any withholding Taxes imposed by the United
States which are imposed or increased as a result of the Liquidity
Provider failing to deliver to the Borrower any certificate or
document (which certificate or document in the good faith judgment of
the Liquidity Provider, it is legally entitled to provide) which is
reasonably requested by the Borrower to establish that payments under
this Agreement are exempt from (or entitled to a reduced rate of)
withholding Tax, or (vi) any change in the Lending Office without the
prior written consent of Delta (such consent not to be unreasonably
withheld).
"DOWNGRADE ADVANCE" means an Advance made pursuant to Section
2.02(c).
"EFFECTIVE DATE" has the meaning specified in Section 4.01.
The delivery of the certificate of the Liquidity Provider contemplated
by Section 4.01(f) shall be conclusive evidence that the Effective
Date has occurred.
"EXPENSES" means liabilities, losses, damages, costs and
expenses (including, without limitation, reasonable fees and
disbursements of legal counsel), provided that Expenses shall not
include any Taxes other than sales, use and V.A.T. taxes imposed on
fees and expenses payable pursuant to Section 7.07.
"EXPIRY DATE" means November 14, 2001, initially, or any date
to which the Expiry Date is extended pursuant to Section 2.10.
"FINAL ADVANCE" means an Advance made pursuant to Section
2.02(d).
3
7
"INCREASED COST" has the meaning specified in Section 3.01.
"INTERCREDITOR AGREEMENT" means the Intercreditor Agreement,
dated as of the date hereof, among the Trustees, the Liquidity
Provider, the liquidity provider under each Liquidity Facility (other
than this Agreement) and the Subordination Agent, as the same may be
amended, supplemented or otherwise modified from time to time in
accordance with its terms.
"INTEREST ADVANCE" means an Advance made pursuant to Section
2.02(a).
"INTEREST PERIOD" means, with respect to any LIBOR Advance,
each of the following periods:
(i) the period beginning on the third Business
Day following either (A) the Liquidity Provider's receipt of
the Notice of Borrowing for such LIBOR Advance or (B) the
date of the withdrawal of funds from the Class C Cash
Collateral Account for the purpose of paying interest on the
Class C Certificates as contemplated by Section 2.06(a)
hereof and, in each case, ending on the next numerically
corresponding day in the first calendar month after the first
day of the applicable Interest Period; and
(ii) each subsequent period commencing on the
last day of the immediately preceding Interest Period and
ending on the numerically corresponding day in the first
calendar month after the first day of the applicable Interest
Period;
provided, however, that if (x) the Final Advance shall have been made
pursuant to Section 2.02(d) or (y) other outstanding Advances shall
have been converted into the Final Advance pursuant to Section 6.01,
then the Interest Periods shall be successive periods of one month
beginning on the third Business Day following the Liquidity Provider's
receipt of the Notice of Borrowing for such Final Advance (in the case
of clause (x) above) or the Regular Distribution Date following such
conversion (in the case of clause (y) above).
"LENDING OFFICE" means the lending office of the Liquidity
Provider presently located at New York, New York, or such other
lending office as the Liquidity Provider from time to time shall
notify the Borrower as its lending office hereunder; provided that the
Liquidity Provider shall not change its Lending Office without the
prior written consent of Delta (such consent not to be unreasonably
withheld).
"LIBOR ADVANCE" means an Advance bearing interest at a rate
based upon the LIBOR Rate.
"LIBOR RATE" means, with respect to any Interest Period, (a)
the interest rate per annum equal to the rate per annum at which
deposits in Dollars are offered in the London interbank market as
shown on Page 3750 of the Telerate Systems Incorporated screen service
(or such other page as may replace Telerate Page 3750), or if such
service is not available, Page LIBO of the Reuters Money Service
Monitor System (or such other page
4
8
as may replace Reuters Page LIBO) at approximately 11:00 a.m. (London
time) on the day that is two Business Days prior to the first day of
such Interest Period, for a period comparable to such Interest Period,
or (b) if no such rate is published on either such service or if
neither of such services is then available, the interest rate per
annum equal to the average (rounded up, if necessary, to the nearest
1/100th of 1%) of the rates at which deposits in Dollars are offered
by the Reference Banks (or, if fewer than all of the Reference Banks
are quoting a rate for deposits in Dollars for the applicable period
and amount, such fewer number of Reference Banks) at approximately
11:00 a.m. (London time) on the day that is two Business Days prior to
the first day of such Interest Period to prime banks in the London
interbank market for a period comparable to such Interest Period and
in an amount approximately equal to the principal amount of the LIBOR
Advance to be outstanding during such Interest Period, or (c) if none
of the Reference Banks is quoting a rate for deposits in Dollars in
the London interbank market for such a period and amount, the interest
rate per annum equal to the average (rounded up, if necessary, to the
nearest 1/100th of 1%) of the rates at which deposits in Dollars are
offered by the principal New York offices of the Reference Banks (or,
if fewer than all of the Reference Banks are quoting a rate for
deposits in Dollars in the New York interbank market for the
applicable period and amount, such fewer number of Reference Banks) at
approximately 11:00 a.m. (New York time) on the day that is two
Business Days prior to the first day of such Interest Period to prime
banks in the New York interbank market for a period comparable to such
Interest Period and in an amount approximately equal to the principal
amount of the LIBOR Advance to be outstanding during such Interest
Period, or (d) if none of the principal New York offices of the
Reference Banks is quoting a rate for deposits in Dollars in the New
York interbank market for the applicable period and amount, the Base
Rate.
"LIQUIDITY EVENT OF DEFAULT" means the occurrence of either
(a) the Acceleration of all of the Equipment Notes or (b) a Delta
Bankruptcy Event.
"LIQUIDITY INDEMNITEE" means the Liquidity Provider, its
directors, officers, employees and agents, and its successors and
permitted assigns.
"LIQUIDITY PROVIDER" has the meaning specified in the
introductory paragraph to this Agreement.
"MAXIMUM AVAILABLE COMMITMENT" means, subject to the proviso
contained in the third sentence of Section 2.02(a), at any time of
determination, (a) the Maximum Commitment at such time less (b) the
aggregate amount of each Interest Advance outstanding at such time;
provided that following a Provider Advance or a Final Advance, the
Maximum Available Commitment shall be zero.
"MAXIMUM COMMITMENT" means initially $27,905,859, as the same
may be reduced from time to time in accordance with Section 2.04(a).
"NON-EXTENSION ADVANCE" means an Advance made pursuant to
Section 2.02(b).
"NOTICE OF BORROWING" has the meaning specified in Section
2.02(e).
5
9
"NOTICE OF REPLACEMENT SUBORDINATION AGENT" has the meaning
specified in Section 3.08.
"PARTICIPATION" has the meaning specified in Section 7.08(b).
"PERFORMING NOTE DEFICIENCY" means any time that less than
65% of the then aggregate outstanding principal amount of all
Equipment Notes are Performing Equipment Notes.
"PERMITTED TRANSFEREE" means any Person that:
(a) is not a commercial air carrier, Delta or
any affiliate of Delta; and
(b) is any one of:
(1) a commercial banking institution
organized under the laws of the United States or any
state thereof or the District of Columbia;
(2) a commercial banking institution
that (x) is organized under the laws of France,
Germany, The Netherlands, Switzerland or the United
Kingdom, (y) is entitled on the date it acquires any
Participation to a complete exemption from United
States federal income taxes for all income derived
by it from the transactions contemplated by the
Operative Agreements under an income tax treaty, as
in effect on such date, between the United States
and such jurisdiction of its organization and (z) is
engaged in the active conduct of a banking business
in such jurisdiction of its organization, holds its
Participation in connection with such banking
business in such jurisdiction and is regulated as a
commercial banking institution by the appropriate
regulatory authorities in such jurisdiction; or
(3) a commercial banking institution
that (x) is organized under the laws of Canada,
France, Germany, Ireland, Japan, Luxembourg, The
Netherlands, Sweden, Switzerland or the United
Kingdom and (y) is entitled on the date it acquires
any Participation to a complete exemption from
withholding of United States federal income taxes
for all income derived by it from the transactions
contemplated by the Operative Agreements under laws
as in effect on such date by reason of such income
being effectively connected with the conduct of a
trade or business within the United States.
"PROSPECTUS SUPPLEMENT" means the Prospectus Supplement dated
November 7, 2000, relating to the Certificates, as such Prospectus
Supplement may be amended or supplemented.
"PROVIDER ADVANCE" means a Downgrade Advance or a
Non-Extension Advance.
"REFERENCE BANKS" means the principal London offices of:
National Westminster Bank, plc; WestLB; The Chase Manhattan Bank;
Citibank, N.A.; and such other or
6
10
additional banking institutions as may be designated from time to time
by mutual agreement of Delta and the Liquidity Provider.
"REGULATORY CHANGE" means the enactment, adoption or
promulgation, after the date of this Agreement, of any law or
regulation by a United States federal or state government or by the
government of the Liquidity Provider's jurisdiction of organization,
or any change, after the date of this Agreement, in any such law or
regulation, or in the interpretation thereof by any governmental
authority, central bank or comparable agency of the United States or
the Liquidity Provider's jurisdiction of organization charged with
responsibility for the administration or application thereof, that
shall impose, modify or deem applicable: (a) any reserve, special
deposit or similar requirement against extensions of credit or other
assets of, or deposits with or other liabilities of, the Liquidity
Provider including, or by reason of, the Advances, or (b) any capital
adequacy requirement requiring the maintenance by the Liquidity
Provider of additional capital in respect of any Advances or the
Liquidity Provider's obligation to make any such Advances.
"REPLENISHMENT AMOUNT" has the meaning specified in Section
2.06(b).
"REQUIRED AMOUNT" means, for any day, the sum of the
aggregate amount of interest, calculated at the rate per annum equal
to the Stated Interest Rate for the Class C Certificates on the basis
of a 360-day year comprised of twelve 30-day months, that would be
payable on the Class C Certificates on each of the three successive
semiannual Regular Distribution Dates immediately following such day
or, if such day is a Regular Distribution Date, on such day and the
succeeding two semiannual Regular Distribution Dates, in each case
calculated on the basis of the Pool Balance of the Class C
Certificates on such day and without regard to expected future
distributions of principal on the Class C Certificates.
"TERMINATION DATE" means the earliest to occur of the
following: (i) the Expiry Date; (ii) the date on which the Borrower
delivers to the Liquidity Provider a certificate, signed by a
Responsible Officer of the Borrower, certifying that all of the Class
C Certificates have been paid in full (or provision has been made for
such payment in accordance with the Intercreditor Agreement and the
Class C Trust Agreement) or are otherwise no longer entitled to the
benefits of this Agreement; (iii) the date on which the Borrower
delivers to the Liquidity Provider a certificate, signed by a
Responsible Officer of the Borrower, certifying that a Replacement
Liquidity Facility has been substituted for this Agreement in full
pursuant to Section 3.06(e) of the Intercreditor Agreement; (iv) the
fifth Business Day following the receipt by the Borrower of a
Termination Notice from the Liquidity Provider pursuant to Section
6.01; and (v) the date on which no Advance is or may (including by
reason of reinstatement as herein provided) become available for a
Borrowing hereunder.
"TERMINATION NOTICE" means the Notice of Termination
substantially in the form of Annex V to this Agreement.
7
11
"UNAPPLIED PROVIDER ADVANCE" means any Provider Advance other
than an Applied Provider Advance.
"UNPAID ADVANCE" has the meaning specified in Section 2.05.
"WITHDRAWAL NOTICE" has the meaning specified in Section
2.10.
For the purposes of this Agreement, the following terms shall have the
respective meanings specified in the Intercreditor Agreement:
"Acceleration", "Certificate", "Class A-1 Certificates",
"Class A-2 Certificates", "Class B Certificates", "Class C Cash
Collateral Account", "Class C Certificates", "Class C
Certificateholders", "Class C Trust", "Class C Trust Agreement",
"Class C Trustee", "Closing Date", "Collection Account", "Controlling
Party", "Corporate Trust Office", "Delta", "Delta Bankruptcy Event",
"Distribution Date", "Dollars", "Downgraded Facility", "Equipment
Notes", "Fee Letter", "Final Legal Distribution Date", "Indenture",
"Interest Payment Date", "Investment Earnings", "Liquidity Facility",
"Liquidity Obligations", "Loan Trustee", "Xxxxx'x", "Non-Extended
Facility", "Operative Agreements", "Participation Agreements",
"Performing Equipment Note", "Person", "Pool Balance", "Rating
Agencies", "Ratings Confirmation", "Regular Distribution Date",
"Replacement Liquidity Facility", "Responsible Officer", "Scheduled
Payment", "Special Payment", "S&P", "Stated Interest Rate",
"Subordination Agent", "Taxes", "Threshold Rating", "Trust Agreement",
"Trustee", "Underwriters", "Underwriting Agreement", "United States"
and "Written Notice".
ARTICLE II
AMOUNT AND TERMS OF THE COMMITMENT
Section 2.01. The Advances. The Liquidity Provider hereby
irrevocably agrees, on the terms and conditions hereinafter set forth, to make
Advances to the Borrower from time to time on any Business Day during the
period from the Effective Date until 12:00 noon (New York City time) on the
Expiry Date (unless the obligations of the Liquidity Provider shall be earlier
terminated in accordance with the terms of Section 2.04(b)) in an aggregate
amount at any time outstanding not to exceed the Maximum Commitment.
Section 2.02. Making of Advances (a) Each Interest Advance shall be
made by the Liquidity Provider upon delivery to the Liquidity Provider of a
written and completed Notice of Borrowing in substantially the form of Annex I,
signed by a Responsible Officer of the Borrower, such Interest Advance to be in
an amount not exceeding the Maximum Available Commitment at such time and used
solely for the payment when due of interest with respect to the Class C
Certificates at the Stated Interest Rate therefor in accordance with Section
3.06(a) and 3.06(b) of the Intercreditor Agreement. Each Interest Advance made
hereunder shall automatically reduce the Maximum Available Commitment and the
amount available to be borrowed hereunder by subsequent Advances by the amount
of such Interest Advance (subject to reinstatement as provided in the next
sentence). Upon repayment to the Liquidity Provider in
8
12
full or in part of the amount of any Interest Advance made pursuant to this
Section 2.02(a), together with accrued interest thereon (as provided herein),
the Maximum Available Commitment shall be reinstated by an amount equal to the
amount of such Interest Advance so repaid, but not to exceed the Maximum
Commitment; provided, however, that the Maximum Available Commitment shall not
be so reinstated at any time if (x) both a Performing Note Deficiency exists
and a Liquidity Event of Default shall have occurred and be continuing or (y) a
Final Drawing shall have occurred.
(b) Subject to Section 2.10, a Non-Extension Advance shall be made
by the Liquidity Provider if this Agreement is not extended in accordance with
Section 3.06(d) of the Intercreditor Agreement (unless a Replacement Liquidity
Facility to replace this Agreement shall have been delivered to the Borrower as
contemplated by said Section 3.06(d) within the time period specified in such
Section 3.06(d)) upon delivery to the Liquidity Provider of a written and
completed Notice of Borrowing in substantially the form of Annex II, signed by
a Responsible Officer of the Borrower, in an amount equal to the Maximum
Available Commitment at such time, and shall be used to fund the Class C Cash
Collateral Account in accordance with Sections 3.06(d) and 3.06(f) of the
Intercreditor Agreement.
(c) A Downgrade Advance shall be made by the Liquidity Provider if
at any time the short-term unsecured debt rating of the Liquidity Provider
issued by either Rating Agency (or if the Liquidity Provider does not have a
short-term unsecured debt rating issued by a given Rating Agency, the long-term
unsecured debt rating of the Liquidity Provider issued by such Rating Agency)
is lower than the applicable Threshold Rating (as provided for in Section
3.06(c) of the Intercreditor Agreement) unless a Replacement Liquidity Facility
to replace this Agreement shall have been previously delivered to the Borrower
in accordance with said Section 3.06(c), upon delivery to the Liquidity
Provider of a written and completed Notice of Borrowing in substantially the
form of Annex III, signed by a Responsible Officer of the Borrower, in an
amount equal to the Maximum Available Commitment at such time, and shall be
used to fund the Class C Cash Collateral Account in accordance with Sections
3.06(c) and 3.06(f) of the Intercreditor Agreement.
(d) A Final Advance shall be made by the Liquidity Provider
following the receipt by the Borrower of a Termination Notice from the
Liquidity Provider pursuant to Section 6.01 upon delivery to the Liquidity
Provider of a written and completed Notice of Borrowing in substantially the
form of Annex IV, signed by a Responsible Officer of the Borrower, in an amount
equal to the Maximum Available Commitment at such time, and shall be used to
fund the Class C Cash Collateral Account (in accordance with Sections 3.06(f)
and 3.06(i) of the Intercreditor Agreement).
(e) Each Borrowing shall be made on notice in writing (a "NOTICE
OF BORROWING") in substantially the form required by Section 2.02(a), 2.02(b),
2.02(c) or 2.02(d), as the case may be, given by the Borrower to the Liquidity
Provider. If a Notice of Borrowing is delivered by the Borrower in respect of
any Borrowing no later than 1:00 p.m. (New York City time) on a Business Day,
upon satisfaction of the conditions precedent set forth in Section 4.02 with
respect to a requested Borrowing, the Liquidity Provider shall make available
to the Borrower, in accordance with its payment instructions, the amount of
such Borrowing in Dollars and immediately available funds, before 4:00 p.m.
(New York City time) on such Business Day or
9
13
before 1:00 p.m. (New York City time) on such later Business Day specified in
such Notice of Borrowing. If a Notice of Borrowing is delivered by the Borrower
in respect of any Borrowing after 1:00 p.m. (New York City time) on a Business
Day, upon satisfaction of the conditions precedent set forth in Section 4.02
with respect to a requested Borrowing, the Liquidity Provider shall make
available to the Borrower, in accordance with its payment instructions, the
amount of such Borrowing in Dollars and immediately available funds, before
1:00 p.m. (New York City time) on the first Business Day next following the day
of receipt of such Notice of Borrowing or on such later Business Day specified
by the Borrower in such Notice of Borrowing. Payments of proceeds of a
Borrowing shall be made by wire transfer of immediately available funds to the
Borrower in accordance with such wire transfer instructions as the Borrower
shall furnish from time to time to the Liquidity Provider for such purpose.
Each Notice of Borrowing shall be irrevocable and binding on the Borrower. Each
Notice of Borrowing shall be effective upon delivery of a copy thereof to the
Liquidity Provider's New York branch at the address specified in Section 7.02
hereof.
(f) Upon the making of any Advance requested pursuant to a Notice
of Borrowing in accordance with the Borrower's payment instructions, the
Liquidity Provider shall be fully discharged of its obligation hereunder with
respect to such Notice of Borrowing, and the Liquidity Provider shall not
thereafter be obligated to make any further Advances hereunder in respect of
such Notice of Borrowing to the Borrower or to any other Person (including the
Trustee or any Class C Certificateholder). If the Liquidity Provider makes an
Advance requested pursuant to a Notice of Borrowing before 12:00 noon (New York
City time) on the second Business Day after the date of payment specified in
said Section 2.02(e), the Liquidity Provider shall have fully discharged its
obligations hereunder with respect to such Advance and an event of default
shall not have occurred hereunder. Following the making of any Advance pursuant
to Section 2.02(b), 2.02(c) or 2.02(d) to fund the Class C Cash Collateral
Account, the Liquidity Provider shall have no interest in or rights to the
Class C Cash Collateral Account, such Advance or any other amounts from time to
time on deposit in the Class C Cash Collateral Account; provided that the
foregoing shall not affect or impair the obligations of the Subordination Agent
to make the distributions contemplated by Section 3.06(e) or 3.06(f) of the
Intercreditor Agreement and provided further, that the foregoing shall not
affect or impair the rights of the Liquidity Provider to provide written
instructions with respect to the investment and reinvestment of amounts in the
Class C Cash Collateral Account to the extent provided in Section 2.02(b) of
the Intercreditor Agreement. By paying to the Borrower proceeds of Advances
requested by the Borrower in accordance with the provisions of this Agreement,
the Liquidity Provider makes no representation as to, and assumes no
responsibility for, the correctness or sufficiency for any purpose of the
amount of the Advances so made and requested.
Section 2.03. Fees. The Borrower agrees to pay to the Liquidity
Provider the fees set forth in the Fee Letter.
Section 2.04. Reduction or Termination of the Maximum Commitment.
(a) Automatic Reduction. Promptly following each date on which the Required
Amount is reduced as a result of a reduction in the Pool Balance of the Class C
Certificates or otherwise, the Maximum Commitment shall automatically be
reduced to an amount equal to such reduced Required Amount (as calculated by
the Borrower). The Borrower shall give notice of any such automatic reduction
of the Maximum Commitment to the Liquidity Provider and Delta within two
Business
10
14
Days thereof. The failure by the Borrower to furnish any such notice shall not
affect such automatic reduction of the Maximum Commitment.
(b) Termination. Upon the making of any Provider Advance or Final
Advance hereunder or the occurrence of the Termination Date, the obligation of
the Liquidity Provider to make further Advances hereunder shall automatically
and irrevocably terminate, and the Borrower shall not be entitled to request
any further Borrowing hereunder.
Section 2.05. Repayments of Interest Advances or the Final Advance.
Subject to Sections 2.06, 2.07 and 2.09 hereof, the Borrower hereby agrees,
without notice of an Advance or demand for repayment from the Liquidity
Provider (which notice and demand are hereby waived by the Borrower), to pay,
or to cause to be paid, to the Liquidity Provider (a) on each date on which the
Liquidity Provider shall make an Interest Advance or the Final Advance, an
amount equal to the amount of such Advance (any such Advance, until repaid, is
referred to herein as an "UNPAID ADVANCE"), plus (b) interest on the amount of
each such Unpaid Advance in the amounts and on the dates determined as provided
in Section 3.07; provided that if (i) the Liquidity Provider shall make a
Provider Advance at any time after making one or more Interest Advances which
shall not have been repaid in accordance with this Section 2.05 or (ii) this
Liquidity Facility shall become a Downgraded Facility or Non-Extended Facility
at any time when unreimbursed Interest Advances have reduced the Maximum
Available Commitment to zero, then such Interest Advances shall cease to
constitute Unpaid Advances and shall be deemed to have been changed into an
Applied Downgrade Advance or an Applied Non-Extension Advance, as the case may
be, for all purposes of this Agreement (including, without limitation, for the
purpose of determining when such Interest Advance is required to be repaid to
the Liquidity Provider in accordance with Section 2.06 and for the purposes of
Section 2.06(b)). The Borrower and the Liquidity Provider agree that the
repayment in full of each Interest Advance and Final Advance on the date such
Advance is made is intended to be a contemporaneous exchange for new value
given to the Borrower by the Liquidity Provider. For the avoidance of doubt,
interest payable on an Interest Advance or the Final Advance shall not be
regarded as overdue unless such interest is not paid when due under Section
3.07.
Section 2.06. Repayments of Provider Advances. (a) Amounts advanced
hereunder in respect of a Provider Advance shall be deposited in the Class C
Cash Collateral Account and invested and withdrawn from the Class C Cash
Collateral Account as set forth in Sections 3.06(c), 3.06(d), 3.06(e) and
3.06(f) of the Intercreditor Agreement. Subject to Sections 2.07 and 2.09, the
Borrower agrees to pay to the Liquidity Provider, on each Regular Distribution
Date, commencing on the first Regular Distribution Date after the making of a
Provider Advance, interest on the principal amount of any such Provider
Advance, in the amounts determined as provided in Section 3.07; provided,
however, that amounts in respect of a Provider Advance withdrawn from the Class
C Cash Collateral Account for the purpose of paying interest on the Class C
Certificates in accordance with Section 3.06(f) of the Intercreditor Agreement
(the amount of any such withdrawal being (y) in the case of a Downgrade
Advance, an "APPLIED DOWNGRADE ADVANCE" and (z) in the case of a Non-Extension
Advance, an "APPLIED NON-EXTENSION ADVANCE" and, together with an Applied
Downgrade Advance, an "APPLIED PROVIDER ADVANCE") shall thereafter (subject to
Section 2.06(b)) be treated as an Interest Advance under this Agreement for
purposes of determining the Applicable Liquidity Rate for interest payable
thereon and the dates on which such interest is payable; provided further,
however, that if,
11
15
following the making of a Provider Advance, the Liquidity Provider delivers a
Termination Notice to the Borrower pursuant to Section 6.01, such Provider
Advance shall thereafter be treated as a Final Advance under this Agreement for
purposes of determining the Applicable Liquidity Rate for interest payable
thereon and the dates on which such interest is payable. Subject to Sections
2.07 and 2.09 hereof, immediately upon the withdrawal of any amounts from the
Class C Cash Collateral Account on account of a reduction in the Required
Amount, the Borrower shall repay to the Liquidity Provider a portion of the
Provider Advances in a principal amount equal to such reduction, plus interest
on the principal amount prepaid as provided in Section 3.07.
(b) At any time when an Applied Provider Advance (or any portion
thereof) is outstanding, upon the deposit in the Class C Cash Collateral
Account of any amount pursuant to clause "third" of Section 2.04(b) of the
Intercreditor Agreement, clause "third" of Section 3.02 of the Intercreditor
Agreement or clause "fourth" of Section 3.03 of the Intercreditor Agreement
(any such amount being a "REPLENISHMENT AMOUNT") for the purpose of
replenishing or increasing the balance thereof up to the Required Amount at
such time, (i) the aggregate outstanding principal amount of all Applied
Provider Advances (and of Provider Advances treated as an Interest Advance for
purposes of determining the Applicable Liquidity Rate for interest payable
thereon) shall be automatically reduced by the amount of such Replenishment
Amount, and (ii) the aggregate outstanding principal amount of all Unapplied
Provider Advances shall be automatically increased by the amount of such
Replenishment Amount.
(c) Upon the provision of a Replacement Liquidity Facility in
replacement of this Agreement in accordance with Section 3.06(e) of the
Intercreditor Agreement, as provided in Section 3.06(f) of the Intercreditor
Agreement, amounts remaining on deposit in the Class C Cash Collateral Account
after giving effect to any Applied Provider Advance on the date of such
replacement shall be reimbursed to the Liquidity Provider, but only to the
extent such amounts are necessary to repay in full to the Liquidity Provider
all amounts owing to it hereunder.
Section 2.07. Payments to the Liquidity Provider Under the
Intercreditor Agreement. In order to provide for payment or repayment to the
Liquidity Provider of any amounts hereunder, the Intercreditor Agreement
provides that amounts available and referred to in Articles II and III of the
Intercreditor Agreement, to the extent payable to the Liquidity Provider
pursuant to the terms of the Intercreditor Agreement (including, without
limitation, Section 3.06(f) of the Intercreditor Agreement), shall be paid to
the Liquidity Provider in accordance with the terms thereof (but, for the
avoidance of doubt, without duplication of or increase in any amounts payable
hereunder). Amounts so paid to the Liquidity Provider shall be applied by the
Liquidity Provider in the order of priority required by the applicable
provisions of Articles II and III of the Intercreditor Agreement and shall
discharge in full the corresponding obligations of the Borrower hereunder.
Section 2.08. Book Entries. The Liquidity Provider shall maintain
in accordance with its usual practice an account or accounts evidencing the
indebtedness of the Borrower resulting from Advances made from time to time and
the amounts of principal and interest payable hereunder and paid from time to
time in respect thereof; provided, however, that the failure by the Liquidity
Provider to maintain such account or accounts shall not affect the obligations
of the Borrower in respect of Advances.
12
16
Section 2.09. Payments from Available Funds Only. All payments to
be made by the Borrower under this Agreement shall be made only from the
amounts that constitute Scheduled Payments, Special Payments and other payments
under the Operative Agreements, including payment under Section 4.02 of the
Participation Agreements and payments under Section 2.14 of the Indentures, and
only to the extent that the Borrower shall have sufficient income or proceeds
therefrom to enable the Borrower to make payments in accordance with the terms
hereof after giving effect to the priority of payments provisions set forth in
the Intercreditor Agreement. The Liquidity Provider agrees that it will look
solely to such amounts to the extent available for distribution to it as
provided in the Intercreditor Agreement and this Agreement and that the
Borrower, in its individual capacity, is not personally liable to it for any
amounts payable or liability under this Agreement except as expressly provided
in this Agreement, the Intercreditor Agreement or any Participation Agreement.
Amounts on deposit in the Class C Cash Collateral Account shall be available to
the Borrower to make payments under this Agreement only to the extent and for
the purposes expressly contemplated in Section 3.06(f) of the Intercreditor
Agreement.
Section 2.10. Extension of the Expiry Date; Non-Extension Advance.
If the Expiry Date is prior to the date that is 15 days after the Final Legal
Distribution Date for the Class C Certificates, then no earlier than the 60th
day and no later than the 40th day prior to the then applicable Expiry Date,
the Borrower may request in writing that the Liquidity Provider extend the
Expiry Date to the earlier of (i) the date that is 15 days after the Final
Legal Distribution Date for the Class C Certificates and (ii) the date that is
the day immediately preceding the 364th day after the last day of the Consent
Period (unless the obligations of the Liquidity Provider hereunder are earlier
terminated in accordance herewith). The Liquidity Provider shall by notice (the
"CONSENT NOTICE") to the Borrower during the period commencing on the date that
is 60 days prior to the then effective Expiry Date and ending on the date that
is 25 days prior to the then effective Expiry Date (the "CONSENT PERIOD")
advise the Borrower whether, in its sole discretion, it agrees to so extend the
Expiry Date; provided, however, that such extension shall not be effective with
respect to the Liquidity Provider if, by notice (the "WITHDRAWAL NOTICE") to
the Borrower prior to the end of the Consent Period, the Liquidity Provider
revokes its Consent Notice. If the Liquidity Provider advises the Borrower in
the Consent Notice that such Expiry Date shall not be so extended, or gives a
Withdrawal Notice to the Borrower prior to the end of the Consent Period, or
fails to irrevocably and unconditionally advise the Borrower on or before the
end of the Consent Period that such Expiry Date shall be so extended (and, in
each case, if the Liquidity Provider shall not have been replaced in accordance
with Section 3.06(e) of the Intercreditor Agreement), the Borrower shall be
entitled on and after the date on which the Consent Period ends (but prior to
the then effective Expiry Date) to request a Non-Extension Advance in
accordance with Section 2.02(b) hereof and Section 3.06(d) of the Intercreditor
Agreement. If any amounts shall be drawn pursuant to a Non-Extension Advance
and, within 30 days thereafter, the Liquidity Provider shall not have been
replaced, then at any time following the 30th day after such Non-Extension
Advance, the Liquidity Provider may, by written notice to the Borrower, agree
to reinstate the Liquidity Facility on the terms of the existing Liquidity
Facility for a period ending on the 364th day after the end of the Consent
Period; provided, however, that in such event the Liquidity Provider shall
reimburse the Borrower for any costs actually incurred by or on behalf of the
Borrower in drawing pursuant to the Non-Extension Advance and funding the Class
C Cash Collateral Account or otherwise in connection with the Non-Extension
Advance.
13
17
ARTICLE III
OBLIGATIONS OF THE BORROWER
Section 3.01. Increased Costs. If as a result of any Regulatory
Change there shall be any increase by an amount reasonably deemed by the
Liquidity Provider to be material in the actual cost to the Liquidity Provider
of making, funding or maintaining any Advances or its obligation to make any
such Advances or there shall be any reduction by an amount reasonably deemed by
the Liquidity Provider to be material in the amount receivable by the Liquidity
Provider under this Agreement or the Intercreditor Agreement in respect
thereof, and in case of either such an increase or reduction, such event does
not arise from the gross negligence or willful misconduct of the Liquidity
Provider, from its breach of any of its representations, warranties, covenants
or agreements contained herein or in the Intercreditor Agreement or from its
failure to comply with any such Regulatory Change (any such increase or
reduction being referred to herein as an "INCREASED COST"), then the Borrower
shall from time to time pay to the Liquidity Provider an amount equal to such
Increased Cost within 15 Business Days after delivery to the Borrower and Delta
of a certificate of an officer of the Liquidity Provider describing in
reasonable detail the event by reason of which it claims such Increased Cost
and the basis for the determination of the amount of such Increased Cost;
provided that, the Borrower shall be obligated to pay amounts only with respect
to any Increased Costs accruing from the date 45 days prior to the date of
delivery of such certificate. Such certificate, in the absence of manifest
error, shall be considered prima facie evidence of the amount of the Increased
Costs for purposes of this Agreement; provided that any determinations and
allocations by the Liquidity Provider of the effect of any Regulatory Change on
the costs of maintaining the Advances are made on a reasonable basis. The
Liquidity Provider shall not be entitled to assert any claim under this Section
3.01 in respect of or attributable to Taxes. The Liquidity Provider will notify
the Borrower and Delta as promptly as practicable of any event occurring after
the date of this Agreement that will entitle the Liquidity Provider to
compensation under this Section 3.01. The Liquidity Provider agrees to
investigate all commercially reasonable alternatives for reducing any Increased
Costs and to use all commercially reasonable efforts to avoid or minimize, to
the greatest extent possible, any claim in respect of Increased Costs,
including, without limitation, by designating a different Lending Office, if
such designation or other action would avoid the need for, or reduce the amount
of, any such claim; provided that the foregoing shall not obligate the
Liquidity Provider to take any action that would, in its reasonable judgment,
cause the Liquidity Provider to incur any material loss or cost, unless the
Borrower or Delta agrees to reimburse the Liquidity Provider therefor. If no
such designation or other action is effected, or, if effected, fails to avoid
the need for any claim in respect of Increased Costs, Delta may arrange for a
Replacement Liquidity Facility in accordance with Section 3.06(e) of the
Intercreditor Agreement.
Notwithstanding the foregoing provisions, in no event shall the
Borrower be required to make payments under this Section 3.01: (a) in respect
of any Regulatory Change proposed by any applicable governmental authority
(including any branch of a legislature), central bank or comparable agency of
the United States or the Liquidity Provider's jurisdiction of organization and
pending as of the date of this Agreement (it being agreed that the consultative
paper issued by the Basel Committee on Banking Supervision entitled "A New
Capital Adequacy Framework" shall not be considered a Regulatory Change
proposed as of the date of this
14
18
Agreement); (b) if a claim hereunder in respect of an Increased Cost arises
through circumstances peculiar to the Liquidity Provider and that do not affect
similarly organized commercial banking institutions in the same jurisdiction
generally that are in compliance with the law, rule, regulation or
interpretation giving rise to the Regulatory Change relating to such Increased
Cost; (c) if the Liquidity Provider shall fail to comply with its obligations
under this Section 3.01; or (d) if the Liquidity Provider is not also seeking
payment for similar increased costs in other similarly situated transactions.
Section 3.02. [Intentionally omitted.]
Section 3.03. Withholding Taxes. (a) All payments made by the
Borrower under this Agreement shall be made without deduction or withholding
for or on account of any Taxes, unless such deduction or withholding is
required by law. If any Taxes are so required to be withheld or deducted from
any amounts payable to the Liquidity Provider under this Agreement, the
Borrower shall pay to the relevant authorities the full amount so required to
be deducted or withheld and, if such Taxes are Covered Taxes, pay to the
Liquidity Provider such additional amounts as shall be necessary to ensure that
the net amount actually received by the Liquidity Provider (after deduction or
withholding of all Covered Taxes) shall be equal to the full amount that would
have been received by the Liquidity Provider had no withholding or deduction of
Covered Taxes been required. The Liquidity Provider agrees to use reasonable
efforts (consistent with applicable legal and regulatory restrictions) to
change the jurisdiction of its Lending Office if making such change would avoid
the need for, or reduce the amount of, any such additional amounts that may
thereafter accrue and would not, in the reasonable judgment of the Liquidity
Provider, be otherwise materially disadvantageous to the Liquidity Provider. If
the Liquidity Provider receives a refund of, or realizes a net Tax benefit not
otherwise available to it as a result of, any Taxes for which additional
amounts were paid by the Borrower pursuant to this Section 3.03, the Liquidity
Provider shall pay to the Borrower (for deposit into the Collection Account)
the amount of such refund (and any interest thereon) or net benefit.
The Liquidity Provider will (i) provide (on its behalf and on behalf
of any participant holding a Participation pursuant to Section 7.08) to the
Borrower (x) on or prior to the Effective Date two valid completed and executed
copies of Internal Revenue Service Form W8-BEN or W8-EC1 (whichever is
applicable), including thereon a valid U.S. taxpayer identification number (or,
with respect to any such participant, such other form or documentation as may
be applicable) covering all amounts receivable by it in connection with the
transactions contemplated by the Operative Agreements and (y) thereafter from
time to time such additional forms or documentation as may be necessary to
establish an available exemption from withholding of United States Tax on
payments hereunder so that such forms or documentation are effective for all
periods during which it is the Liquidity Provider and (ii) provide timely
notice to the Borrower if any such form or documentation is or becomes
inaccurate. The Liquidity Provider shall deliver to the Borrower such other
forms or documents as may be reasonably requested by the Borrower or required
by applicable law to establish that payments hereunder are exempt from or
entitled to a reduced rate of Covered Taxes.
(b) All payments (including, without limitation, Advances) made by
the Liquidity Provider under this Agreement shall be made free and clear of,
and without reduction for or on account of, any Taxes. If any Taxes are
required to be withheld or deducted from any amounts
15
19
payable to the Borrower under this Agreement, the Liquidity Provider shall (i)
within the time prescribed therefor by applicable law pay to the appropriate
governmental or taxing authority the full amount of any such Taxes (and any
additional Taxes in respect of the additional amounts payable under clause (ii)
hereof) and make such reports or returns in connection therewith at the time or
times and in the manner prescribed by applicable law, and (ii) pay to the
Borrower an additional amount which (after deduction of all such Taxes) will be
sufficient to yield to the Borrower the full amount which would have been
received by it had no such withholding or deduction been made. Within 30 days
after the date of each payment hereunder, the Liquidity Provider shall furnish
to the Borrower the original or a certified copy of (or other documentary
evidence of) the payment of the Taxes applicable to such payment.
If any exemption from, or reduction in the rate of, any Taxes required
to be borne by the Liquidity Provider under this Section 3.03(b) is reasonably
available to the Borrower without providing any information regarding the
holders or beneficial owners of the Certificates, the Borrower shall deliver
the Liquidity Provider such form or forms and such other evidence of the
eligibility of the Borrower for such exemption or reductions (but without any
requirement to provide any information regarding the holders or beneficial
owners of the Certificates) as the Liquidity Provider may reasonably identify
to the Borrower as being required as a condition to exemption from, or
reduction in the rate of, such Taxes.
Section 3.04. Payments. The Borrower shall make or cause to be made
each payment to the Liquidity Provider under this Agreement so as to cause the
same to be received by the Liquidity Provider not later than 1:00 P.M. (New
York City time) on the day when due. The Borrower shall make all such payments
in Dollars, to the Liquidity Provider in immediately available funds, by wire
transfer to The Chase Manhattan Bank, 021-000021 in favor of account number
9201060663, Westdeutsche Landesbank New York Branch, Reference: Delta EETC
2000-1, C LF.
Section 3.05. Computations. All computations of interest based on
the Base Rate shall be made on the basis of a year of 365 or 366 days, as the
case may be, and all computations of interest based on the LIBOR Rate shall be
made on the basis of a year of 360 days, in each case for the actual number of
days (including the first day but excluding the last day) occurring in the
period for which such interest is payable.
Section 3.06. Payment on Non-Business Days. Whenever any payment to
be made hereunder shall be stated to be due on a day other than a Business Day,
such payment shall be made on the next succeeding Business Day and no
additional interest shall be due as a result (and if so made, shall be deemed
to have been made when due). If any payment in respect of interest on an
Advance is so deferred to the next succeeding Business Day, such deferral shall
not delay the commencement of the next Interest Period for such Advance (if
such Advance is a LIBOR Advance) or reduce the number of days for which
interest will be payable on such Advance on the next interest payment date for
such Advance.
Section 3.07. Interest. (a) Subject to Sections 2.07 and 2.09, the
Borrower shall pay, or shall cause to be paid, without duplication, interest on
(i) the unpaid principal amount of each Advance from and including the date of
such Advance (or, in the case of an Applied Provider Advance, from and
including the date on which the amount thereof was withdrawn from the
16
20
Class C Cash Collateral Account to pay interest on the Class C Certificates) to
but excluding the date such principal amount shall be paid in full (or, in the
case of an Applied Provider Advance, the date on which the Class C Cash
Collateral Account is fully replenished in respect of such Advance) and (ii)
any other amount due hereunder (whether fees, commissions, expenses or other
amounts or, to the extent permitted by law, installments of interest on
Advances or any such other amount) that is not paid when due (whether at stated
maturity, by acceleration or otherwise) from and including the due date thereof
to but excluding the date such amount is paid in full, in each such case, at
the interest rate per annum for each day equal to the Applicable Liquidity Rate
(as defined below) for such Advance or such other amount, as the case may be,
as in effect for such day, but in no event at a rate per annum greater than the
maximum rate permitted by applicable law, provided, however, that, if at any
time the otherwise applicable interest rate as set forth in this Section 3.07
shall exceed the maximum rate permitted by applicable law, then to the maximum
extent permitted by applicable law any subsequent reduction in such interest
rate will not reduce the rate of interest payable pursuant to this Section 3.07
below the maximum rate permitted by applicable law until the total amount of
interest accrued equals the absolute amount of interest that would have accrued
(without additional interest thereon) if such otherwise applicable interest
rate as set forth in this Section 3.07 had at all relevant times been in
effect.
(b) Except as provided in Section 3.07(e), each Advance will be
either a Base Rate Advance or a LIBOR Advance as provided in this Section 3.07.
Each such Advance will be a Base Rate Advance for the period from the date of
its borrowing to (but excluding) the third Business Day following the Liquidity
Provider's receipt of the Notice of Borrowing for such Advance. Thereafter,
such Advance shall be a LIBOR Advance; provided that the Borrower (at the
direction of the Controlling Party, so long as the Liquidity Provider is not
the Controlling Party) may (x) convert the Final Advance into a Base Rate
Advance on the last day of an Interest Period for such Advance by giving the
Liquidity Provider no less than four Business Days' prior written notice of
such election or (y) elect to maintain the Final Advance as a Base Rate Advance
by not requesting a conversion of the Final Advance to a LIBOR Advance under
Clause (5) of the applicable Notice of Borrowing (or, if, pursuant to Section
2.06, such Final Advance is deemed to have been made without delivery of a
Notice of Borrowing, by requesting, prior to 11:00 a.m. on the first Business
Day immediately following the Borrower's receipt of the applicable Termination
Notice, that such Final Advance not be converted from a Base Rate Advance to a
LIBOR Advance).
(c) Each LIBOR Advance shall bear interest during each Interest
Period at a rate per annum equal to the LIBOR Rate for such Interest Period
plus the Applicable Margin for such LIBOR Advance, payable in arrears on the
last day of such Interest Period and, in the event of the payment of principal
of such LIBOR Advance on a day other than such last day, on the date of such
payment (to the extent of interest accrued on the amount of principal repaid).
(d) Each Base Rate Advance shall bear interest at a rate per annum
equal to the Base Rate plus the Applicable Margin for such Base Rate Advance,
payable in arrears on each Regular Distribution Date and, in the event of the
payment of principal of such Base Rate Advance on a day other than a Regular
Distribution Date, on the date of such payment (to the extent of interest
accrued on the amount of principal repaid).
17
21
(e) Each outstanding Unapplied Provider Advance shall bear
interest in an amount equal to the Investment Earnings on amounts on deposit in
the Class C Cash Collateral Account for such Unapplied Provider Advance on the
amount of such Unapplied Provider Advance from time to time, payable in arrears
on each Regular Distribution Date.
(f) Each amount not paid when due hereunder (whether fees,
commissions, expenses or other amounts or, to the extent permitted by
applicable law, installments of interest on Advances but excluding Advances)
shall bear interest at a rate per annum equal to the Base Rate plus 3.00% per
annum until paid.
(g) Each change in the Base Rate shall become effective
immediately. The rates of interest specified in this Section 3.07 with respect
to any Advance or other amount shall be referred to as the "APPLICABLE
LIQUIDITY RATE".
Section 3.08. Replacement of Borrower. Subject to Section 5.02,
from time to time and subject to the successor Borrower's meeting the
eligibility requirements set forth in Section 6.09 of the Intercreditor
Agreement applicable to the Subordination Agent, upon the effective date and
time specified in a written and completed Notice of Replacement Subordination
Agent in substantially the form of Annex VI (a "NOTICE OF REPLACEMENT
SUBORDINATION AGENT") delivered to the Liquidity Provider by the then Borrower,
the successor Borrower designated therein shall become the Borrower for all
purposes hereunder.
Section 3.09. Funding Loss Indemnification. The Borrower shall pay
to the Liquidity Provider, upon the request of the Liquidity Provider, such
amount or amounts as shall be sufficient (in the reasonable opinion of the
Liquidity Provider) to compensate it for any loss, cost or expense incurred by
reason of the liquidation or redeployment of deposits or other funds acquired
by the Liquidity Provider to fund or maintain any LIBOR Advance (but excluding
loss of the Applicable Margin or anticipated profits) incurred as a result of:
(1) Any repayment of a LIBOR Advance on a date other than
the last day of the Interest Period for such Advance; or
(2) Any failure by the Borrower to borrow a LIBOR Advance
on the date for borrowing specified in the relevant notice under
Section 2.02.
Section 3.10. Illegality. Notwithstanding any other
provision in this Agreement, if any change in any law, rule or regulation
applicable to or binding on the Liquidity Provider, or any change in the
interpretation or administration thereof by any governmental authority, central
bank or comparable agency charged with the interpretation or administration
thereof, or compliance by the Liquidity Provider with any request or directive
(whether or not having the force of law) of any such authority, central bank or
comparable agency shall make it unlawful or impossible for the Liquidity
Provider to maintain or fund its LIBOR Advances, then upon notice to the
Borrower and Delta by the Liquidity Provider, the outstanding principal amount
of the LIBOR Advances shall be converted to Base Rate Advances (a) immediately
upon demand of the Liquidity Provider, if such change or compliance with such
request, in the reasonable judgment of the Liquidity Provider, requires
immediate conversion; or (b) at the expiration of the last Interest Period to
expire before the effective date of any such change or request. The
18
22
Liquidity Provider will notify the Borrower and Delta as promptly as
practicable of any event that will lead to the conversion of LIBOR Advances to
Base Rate Advances under this Section 3.10. The Liquidity Provider agrees to
investigate all commercially reasonable alternatives for avoiding the need for
such conversion, including, without limitation, designating a different Lending
Office, if such designation or other action would avoid the need to convert
such LIBOR Advances to Base Rate Advances; provided, that the foregoing shall
not obligate the Liquidity Provider to take any action that would, in its
reasonable judgment, cause the Liquidity Provider to incur any material loss or
cost, unless the Borrower or Delta agrees to reimburse the Liquidity Provider
therefor. If no such designation or other action is effected, or, if effected,
fails to avoid the need for conversion of the LIBOR Advances to Base Rate
Advances, Delta may arrange for a Replacement Liquidity Facility in accordance
with Section 3.06(e) of the Intercreditor Agreement.
ARTICLE IV
CONDITIONS PRECEDENT
Section 4.01. Conditions Precedent to Effectiveness of Section
2.01. Section 2.01 of this Agreement shall become effective on and as of the
first date (the "EFFECTIVE DATE") on which the following conditions precedent
have been satisfied (or waived by the appropriate party or parties):
(a) The Liquidity Provider shall have received on or
before the Closing Date each of the following, and in the case of each
document delivered pursuant to paragraphs (i), (ii) and (iii), each in
form and substance satisfactory to the Liquidity Provider:
(i) This Agreement duly executed on behalf of
the Borrower;
(ii) The Intercreditor Agreement duly executed on
behalf of each of the parties thereto (other than the
Liquidity Provider);
(iii) Fully executed copies of each of the
Operative Agreements executed and delivered on or before the
Closing Date (other than this Agreement and the Intercreditor
Agreement);
(iv) A copy of the Prospectus Supplement and
specimen copies of the Class C Certificates;
(v) An executed copy of each document,
instrument, certificate and opinion delivered on or before
the Closing Date pursuant to the Class C Trust Agreement, the
Intercreditor Agreement and the other Operative Agreements
(in the case of each such opinion, either addressed to the
Liquidity Provider or accompanied by a letter from the
counsel rendering such opinion to the effect that the
Liquidity Provider is entitled to rely on such opinion as of
its date as if it were addressed to the Liquidity Provider);
and
19
23
(vi) An agreement from Delta, pursuant to which
(x) Delta agrees to provide copies of quarterly financial
statements and audited annual financial statements to the
Liquidity Provider (which Delta may provide in an electronic
format by electronic mail or making such available over the
internet) and (y) Delta agrees to allow the Liquidity
Provider to discuss the transactions contemplated by the
Operative Agreements with officers and employees of Delta.
(b) On and as of the Effective Date no event shall have
occurred and be continuing, or would result from the entering into of
this Agreement or the making of any Advance, which constitutes a
Liquidity Event of Default.
(c) The filings referred to in Sections 3.01(d) and 3.01
(f) of the Participation Agreements shall have been filed (or shall be
in the process of being filed).
(d) The Liquidity Provider shall have received payment in
full of the fees and other sums required to be paid to or for the
account of the Liquidity Provider on or prior to the Effective Date
pursuant to the Fee Letter.
(e) All conditions precedent to the issuance of the
Certificates under the Trust Agreement shall have been satisfied or
waived, all conditions precedent to the effectiveness of the other
Liquidity Facilities shall have been satisfied or waived, and all
conditions precedent to the purchase of the Certificates by the
Underwriters under the Underwriting Agreement shall have been
satisfied (unless any of such conditions precedent under the
Underwriting Agreement shall have been waived by the Underwriters).
(f) The Borrower and Delta shall have received a
certificate, dated the Effective Date signed by a duly authorized
representative of the Liquidity Provider, certifying that all
conditions precedent specified in this Section 4.01 have been
satisfied or waived by the Liquidity Provider.
Section 4.02. Conditions Precedent to Borrowing. The obligation of
the Liquidity Provider to make an Advance on the occasion of each Borrowing
shall be subject to the conditions precedent that the Effective Date shall have
occurred and, prior to the time of such Borrowing, the Borrower shall have
delivered a Notice of Borrowing which conforms to the terms and conditions of
this Agreement.
ARTICLE V
COVENANTS
Section 5.01. Affirmative Covenants of the Borrower. So long as any
Advance shall remain unpaid or the Liquidity Provider shall have any Maximum
Commitment hereunder or the Borrower shall have any obligation to pay any
amount to the Liquidity Provider hereunder, the Borrower will, unless the
Liquidity Provider shall otherwise consent in writing:
20
24
(a) Performance of Agreements. Punctually pay or cause to
be paid all amounts payable by it under this Agreement and the
Intercreditor Agreement and observe and perform in all material
respects the conditions, covenants and requirements applicable to it
contained in this Agreement and the Intercreditor Agreement.
(b) Reporting Requirements. Furnish to the Liquidity
Provider with reasonable promptness, such other information and data
with respect to the transactions contemplated by the Operative
Agreements as from time to time may be reasonably requested by the
Liquidity Provider; and permit the Liquidity Provider, upon reasonable
notice, to inspect the Borrower's books and records with respect to
such transactions and to meet with officers and employees of the
Borrower to discuss such transactions.
(c) Certain Operative Agreements. Furnish to the
Liquidity Provider with reasonable promptness, copies of such
Operative Agreements entered into after the date hereof as from time
to time may be reasonably requested by the Liquidity Provider.
Section 5.02. Negative Covenants of the Borrower. Subject to the
first and fourth paragraphs of Section 7.01(a) of the Intercreditor Agreement
and Section 7.01(b) of the Intercreditor Agreement, so long as any Advance
shall remain unpaid or the Liquidity Provider shall have any Maximum Commitment
hereunder or the Borrower shall have any obligation to pay any amount to the
Liquidity Provider hereunder, the Borrower will not appoint or permit or suffer
to be appointed any successor Borrower without the prior written consent of the
Liquidity Provider, which consent shall not be unreasonably withheld or
delayed.
ARTICLE VI
LIQUIDITY EVENTS OF DEFAULT
Section 6.01. Liquidity Events of Default. If (a) any Liquidity
Event of Default has occurred and is continuing and (b) there is a Performing
Note Deficiency, the Liquidity Provider may, in its discretion, deliver to the
Borrower a Termination Notice, the effect of which shall be to cause (i) this
Agreement to expire at the close of business on the fifth Business Day after
the date on which such Termination Notice is received by the Borrower, (ii) the
Borrower to promptly request, and the Liquidity Provider to promptly make, a
Final Advance in accordance with Section 2.02(d) hereof and Section 3.06(i) of
the Intercreditor Agreement, (iii) all other outstanding Advances to be
automatically converted into Final Advances for purposes of determining the
Applicable Liquidity Rate for interest payable thereon and (iv) subject to
Sections 2.07 and 2.09, all Advances, any accrued interest thereon and any
other amounts outstanding hereunder to become immediately due and payable to
the Liquidity Provider.
21
25
ARTICLE VII
MISCELLANEOUS
Section 7.01. No Oral Modifications or Continuing Waivers. No terms
or provisions of this Agreement may be changed, waived, discharged or
terminated orally, but only by an instrument in writing signed by the Borrower
and the Liquidity Provider and any other Person whose consent is required
pursuant to this Agreement; provided that no such change or other action shall
affect the payment obligations of Delta without Delta's prior written consent;
and any waiver of the terms hereof shall be effective only in the specific
instance and for the specific purpose given.
Section 7.02. Notices. Unless otherwise expressly specified or
permitted by the terms hereof, all notices, requests, demands, authorizations,
directions, consents, waivers or documents required or permitted under the
terms and provisions of this Agreement shall be in English and in writing, and
given by United States registered or certified mail, courier service or
facsimile, and any such notice shall be effective when delivered (or, if
delivered by facsimile, upon completion of transmission and confirmation by the
sender (by a telephone call to a representative of the recipient or by machine
confirmation) that such transmission was received) addressed as follows:
If to the Borrower, to:
STATE STREET BANK AND TRUST COMPANY OF CONNECTICUT,
NATIONAL ASSOCIATION
000 Xxxxxx Xxxxxx, Xxxxxxx Square
Hartford, Connecticut 06103
Attention: Corporate Trust Division
Telephone: (000) 000-0000
Telecopy: (000) 000-0000
If to the Liquidity Provider, to:
WESTDEUTSCHE LANDESBANK GIROZENTRALE
0000 Xxxxxx xx xxx Xxxxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Transportation Finance
Telephone: (000) 000-0000
Telecopy: (000) 000-0000
With a copy to:
WESTDEUTSCHE LANDESBANK GIROZENTRALE
0000 Xxxxxx xx xxx Xxxxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Loan Administration
22
26
Telephone: (000) 000-0000
Telecopy: (000) 000-0000
Any party, by notice to the other party hereto, may designate
additional or different addresses for subsequent notices or communications.
Whenever the words "notice" or "notify" or similar words are used herein, they
mean the provision of formal notice as set forth in this Section 7.02.
Section 7.03. No Waiver; Remedies. No failure on the part of the
Liquidity Provider to exercise, and no delay in exercising, any right under
this Agreement shall operate as a waiver thereof; nor shall any single or
partial exercise of any right under this Agreement preclude any other or
further exercise thereof or the exercise of any other right. The remedies
herein provided are cumulative and not exclusive of any remedies provided by
law.
Section 7.04. Further Assurances. The Borrower agrees to do such
further acts and things and to execute and deliver to the Liquidity Provider
such additional assignments, agreements, powers and instruments as the
Liquidity Provider may reasonably require or deem advisable to carry into
effect the purposes of this Agreement and the other Operative Agreements or to
better assure and confirm unto the Liquidity Provider its rights, powers and
remedies hereunder and under the other Operative Agreements.
Section 7.05. Indemnification; Survival of Certain Provisions. The
Liquidity Provider shall be indemnified hereunder to the extent and in the
manner described in Section 4.02 of the Participation Agreements. In addition,
the Borrower agrees to indemnify, protect, defend and hold harmless each
Liquidity Indemnitee from and against all Expenses of any kind or nature
whatsoever (other than any Expenses of the nature described in Sections 3.01 or
7.07 or in the Fee Letter (regardless of whether indemnified against pursuant
to said Sections or in such Fee Letter)), that may be imposed on or incurred by
such Liquidity Indemnitee, in any way relating to, resulting from, or arising
out of or in connection with, any action, suit or proceeding by any third party
against such Liquidity Indemnitee and relating to this Agreement, the Fee
Letter, the Intercreditor Agreement or any Participation Agreement; provided,
however, that the Borrower shall not be required to indemnify, protect, defend
and hold harmless any Liquidity Indemnitee in respect of any Expense of such
Liquidity Indemnitee to the extent such Expense is (i) attributable to the
negligence or willful misconduct of such Liquidity Indemnitee or any other
Liquidity Indemnitee, (ii) an ordinary and usual operating overhead expense,
(iii) attributable to the failure by such Liquidity Indemnitee or any other
Liquidity Indemnitee to perform or observe any agreement, covenant or condition
on its part to be performed or observed in this Agreement, the Intercreditor
Agreement, the Fee Letter or any other Operative Agreement to which it is a
party or (iv) otherwise excluded from the indemnification provisions contained
in Section 4.02 of the Participation Agreements. The provisions of Sections
3.01, 3.03, 3.09, 7.05 and 7.07 and the indemnities contained in Section 4.02
of the Participation Agreements shall survive the termination of this
Agreement.
Section 7.06. Liability of the Liquidity Provider. (a) Neither the
Liquidity Provider nor any of its officers, employees or directors shall be
liable or responsible for: (i) the use which may be made of the Advances or any
acts or omissions of the Borrower or any beneficiary or
23
27
transferee in connection therewith; (ii) the validity, sufficiency or
genuineness of documents, or of any endorsement thereon, even if such documents
should prove to be in any or all respects invalid, insufficient, fraudulent or
forged; or (iii) the making of Advances by the Liquidity Provider against
delivery of a Notice of Borrowing and other documents which do not comply with
the terms hereof; provided, however, that the Borrower shall have a claim
against the Liquidity Provider, and the Liquidity Provider shall be liable to
the Borrower, to the extent of any damages suffered by the Borrower that were
the result of (A) the Liquidity Provider's willful misconduct or gross
negligence in determining whether documents presented hereunder comply with the
terms hereof or (B) any breach by the Liquidity Provider of any of the terms of
this Agreement or the Intercreditor Agreement, including, but not limited to,
the Liquidity Provider's failure to make lawful payment hereunder after the
delivery to it by the Borrower of a Notice of Borrowing complying with the
terms and conditions hereof.
(b) Neither the Liquidity Provider nor any of its officers,
employees or directors or affiliates shall be liable or responsible in any
respect for (i) any error, omission, interruption or delay in transmission,
dispatch or delivery of any message or advice, however transmitted, in
connection with this Agreement or any Notice of Borrowing delivered hereunder
or (ii) any action, inaction or omission which may be taken by it in good
faith, absent willful misconduct or negligence (in which event the extent of
the Liquidity Provider's potential liability to the Borrower shall be limited
as set forth in the immediately preceding paragraph), in connection with this
Agreement or any Notice of Borrowing.
Section 7.07. Certain Costs and Expenses. The Borrower agrees
promptly to pay, or cause to be paid, (a) the reasonable fees, expenses and
disbursements of Shearman & Sterling, special counsel for the Liquidity
Provider, in connection with the preparation, negotiation, execution, delivery,
filing and recording of the Operative Agreements, any waiver or consent
thereunder or any amendment thereof and (b) if a Liquidity Event of Default
occurs, all out-of-pocket expenses incurred by the Liquidity Provider,
including reasonable fees and disbursements of counsel, in connection with such
Liquidity Event of Default and any collection, bankruptcy, insolvency and other
enforcement proceedings in connection therewith. In addition, the Borrower
shall pay any and all recording, stamp and other similar taxes and fees payable
or determined to be payable in the United States in connection with the
execution, delivery, filing and recording of this Agreement, any other
Operative Agreement and such other documents, and agrees to save the Liquidity
Provider harmless from and against any and all liabilities with respect to or
resulting from any delay in paying or omission to pay such taxes or fees.
Section 7.08. Binding Effect; Participations. (a) This Agreement
shall be binding upon and inure to the benefit of the Borrower and the
Liquidity Provider and their respective successors and permitted assigns,
except that neither the Liquidity Provider (except as otherwise provided in
this Section 7.08) nor (except as contemplated by Section 3.08) the Borrower
shall have the right to assign, pledge or otherwise transfer its rights or
obligations hereunder or any interest herein, subject to the Liquidity
Provider's right to grant Participations pursuant to Section 7.08(b).
(b) The Liquidity Provider agrees that it will not grant any
participation (including, without limitation, a "RISK PARTICIPATION") (any such
participation, a "PARTICIPATION") in or to all or a portion of its rights and
obligations hereunder or under the other Operative Agreements,
24
28
unless all of the following conditions are satisfied: (i) such Participation is
to a Permitted Transferee, (ii) such Participation is made in accordance with
all applicable laws, including, without limitation, the Securities Act of 1933,
as amended, the Trust Indenture Act of 1939, as amended, and any other
applicable laws relating to the transfer of similar interests and (iii) such
Participation shall not be made under circumstances that require registration
under the Securities Act of 1933, as amended, or qualification of any indenture
under the Trust Indenture Act of 1939, as amended. Notwithstanding any such
Participation, the Liquidity Provider agrees that (1) the Liquidity Provider's
obligations under the Operative Agreements shall remain unchanged, and such
participant shall have no rights or benefits as against Delta or the Borrower
or under any Operative Agreement, (2) the Liquidity Provider shall remain
solely responsible to the other parties to the Operative Agreements for the
performance of such obligations, (3) the Liquidity Provider shall remain the
maker of any Advances, and the other parties to the Operative Agreements shall
continue to deal solely and directly with the Liquidity Provider in connection
with the Advances and the Liquidity Provider's rights and obligations under the
Operative Agreements, (4) the Liquidity Provider shall be solely responsible
for any withholding Taxes or any filing or reporting requirements relating to
such Participation and shall hold the Borrower and Delta and their respective
successors, permitted assigns, affiliates, agents and servants harmless against
the same and (5) neither Delta nor the Borrower shall be required to pay to the
Liquidity Provider any amount under Section 3.01 or Section 3.03 greater than
it would have been required to pay had there not been any grant of a
Participation by the Liquidity Provider. The Liquidity Provider may, in
connection with any Participation or proposed Participation pursuant to this
Section 7.08(b), disclose to the participant or proposed participant any
information relating to the Operative Agreements or to the parties thereto
furnished to the Liquidity Provider thereunder or in connection therewith and
permitted to be disclosed by the Liquidity Provider; provided, however, that
prior to any such disclosure, the participant or proposed participant shall
agree in writing for the express benefit of the Borrower and Delta to preserve
the confidentiality of any confidential information included therein (subject
to customary exceptions).
(c) Notwithstanding the other provisions of this Section 7.08, the
Liquidity Provider may assign and pledge all or any portion of the Advances
owing to it to any Federal Reserve Bank or the United States Treasury as
collateral security pursuant to Regulation A of the Board of Governors of the
Federal Reserve System and any Operating Circular issued by such Federal
Reserve Bank, provided that any payment in respect of such assigned Advances
made by the Borrower to the Liquidity Provider in accordance with the terms of
this Agreement shall satisfy the Borrower's obligations hereunder in respect of
such assigned Advance to the extent of such payment. No such assignment shall
release the Liquidity Provider from its obligations hereunder.
Section 7.09. Severability. Any provision of this Agreement which
is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate
or render unenforceable such provision in any other jurisdiction.
Section 7.10. Governing Law. THIS AGREEMENT HAS BEEN DELIVERED IN
THE STATE OF NEW YORK AND THIS AGREEMENT SHALL BE GOVERNED BY AND
25
29
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, INCLUDING ALL
MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, AND THE OBLIGATIONS, RIGHTS
AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH
SUCH LAWS.
Section 7.11. Submission to Jurisdiction; Waiver of Jury Trial;
Waiver of Immunity. (a) Each of the parties hereto, to the extent it may do so
under applicable law, for purposes hereof hereby (i) irrevocably submits itself
to the non-exclusive jurisdiction of the courts of the State of New York
sitting in the City of New York and to the non-exclusive jurisdiction of the
United States District Court for the Southern District of New York, for the
purposes of any suit, action or other proceeding arising out of this Agreement,
the subject matter hereof or any of the transactions contemplated hereby
brought by any party or parties hereto or thereto, or their successors or
permitted assigns and (ii) waives, and agrees not to assert, by way of motion,
as a defense, or otherwise, in any such suit, action or proceeding, that the
suit, action or proceeding is brought in an inconvenient forum, that the venue
of the suit, action or proceeding is improper or that this Agreement or the
subject matter hereof or any of the transactions contemplated hereby may not be
enforced in or by such courts.
(b) THE BORROWER AND THE LIQUIDITY PROVIDER EACH HEREBY AGREE TO
WAIVE THEIR 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
RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT AND THE RELATIONSHIP THAT IS
BEING ESTABLISHED, including, without limitation, contract claims, tort claims,
breach of duty claims and all other common law and statutory claims. The
Borrower and the Liquidity Provider each warrant and represent 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.
(c) The Liquidity Provider hereby waives any immunity it may have
from the jurisdiction of the courts of the United States or of any state
thereof and waives any immunity any of its properties located in the United
States may have from attachment or execution upon a judgment entered by any
such court under the United States Foreign Sovereign Immunities Act of 1976 or
any similar successor legislation.
Section 7.12. Counterparts. This Agreement may be executed in any
number of counterparts (and each party shall not be required to execute the
same counterpart). Each counterpart of this Agreement including a signature
page or pages 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.
Section 7.13. Entirety. This Agreement and the Intercreditor
Agreement constitute the entire agreement of the parties hereto with respect to
the subject matter hereof and supersede all prior understandings and agreements
of such parties.
26
30
Section 7.14. Headings. The headings of the various Articles and
Sections herein and in the Table of Contents hereto are for convenience of
reference only and shall not define or limit any of the terms or provisions
hereof.
Section 7.15. Liquidity Provider's Obligation to Make Advances.
EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, THE OBLIGATIONS OF THE
LIQUIDITY PROVIDER TO MAKE ADVANCES HEREUNDER, AND THE BORROWER'S RIGHTS TO
DELIVER NOTICES OF BORROWING REQUESTING THE MAKING OF ADVANCES HEREUNDER, SHALL
BE ABSOLUTE, UNCONDITIONAL AND IRREVOCABLE, AND SHALL BE PAID OR PERFORMED, IN
EACH CASE STRICTLY IN ACCORDANCE WITH THE TERMS OF THIS AGREEMENT.
27
31
IN WITNESS WHEREOF, the parties have caused this Agreement to be duly
executed and delivered by their respective officers thereunto duly authorized
as of the date first set forth above.
STATE STREET BANK AND TRUST
COMPANY OF CONNECTICUT, NATIONAL
ASSOCIATION, not in its individual
capacity but solely as Subordination Agent, as agent
and trustee for the Class C Trust, as Borrower
By:
-------------------------------------------------
Name:
Title:
WESTDEUTSCHE LANDESBANK
GIROZENTRALE, NEW YORK BRANCH, as
Liquidity Provider
By:
-------------------------------------------------
Name:
Title:
By:
-------------------------------------------------
Name:
Title:
28
32
ANNEX I to
REVOLVING CREDIT AGREEMENT
INTEREST ADVANCE NOTICE OF BORROWING
The undersigned, a duly authorized signatory of the undersigned
borrower (the "BORROWER"), hereby certifies to Westdeutsche Landesbank
Girozentrale, New York Branch (the "LIQUIDITY PROVIDER"), with reference to the
Revolving Credit Agreement (2000-1C), dated as of November 16, 2000, between
the Borrower and the Liquidity Provider (the "LIQUIDITY AGREEMENT"; the terms
defined therein and not otherwise defined herein being used herein as therein
defined or referenced), that:
(1) The Borrower is the Subordination Agent under the
Intercreditor Agreement.
(2) The Borrower is delivering this Notice of Borrowing
for the making of an Interest Advance by the Liquidity Provider to be
used for the payment of the interest on the Class C Certificates which
is payable on ____________, ____ (the "DISTRIBUTION DATE") in
accordance with the terms and provisions of the Class C Trust
Agreement and the Class C Certificates, which Advance is requested to
be made on ____________, ____. The Interest Advance should be remitted
to [insert wire and account details].
(3) The amount of the Interest Advance requested hereby
(i) is $_______________.__, to be applied in respect of the payment of
the interest which is due and payable on the Class C Certificates on
the Distribution Date, (ii) does not include any amount with respect
to the payment of principal of, or premium on, the Class A-1
Certificates, the Class A-2 Certificates, the Class B Certificates or
the Class C Certificates, or interest on the Class A-1 Certificates,
the Class A-2 Certificates or the Class B Certificates, (iii) was
computed in accordance with the provisions of the Class C
Certificates, the Class C Trust Agreement and the Intercreditor
Agreement (a copy of which computation is attached hereto as Schedule
I), (iv) does not exceed the Maximum Available Commitment on the date
hereof and (v) has not been and is not the subject of a prior or
contemporaneous Notice of Borrowing.
(4) Upon receipt by or on behalf of the Borrower of the
amount requested hereby, (a) the Borrower will apply the same in
accordance with the terms of Section 3.06(b) of the Intercreditor
Agreement, (b) no portion of such amount shall be applied by the
Borrower for any other purpose and (c) no portion of such amount until
so applied shall be commingled with other funds held by the Borrower.
The Borrower hereby acknowledges that, pursuant to the Liquidity
Agreement, the making of the Interest Advance as requested by this Notice of
Borrowing shall automatically reduce, subject to reinstatement in accordance
with the terms of the Liquidity Agreement, the Maximum Available Commitment by
an amount equal to the amount of the Interest Advance requested to be made
hereby as set forth in clause (i) of paragraph (3) of this Certificate and such
I-1
33
reduction shall automatically result in corresponding reductions in the amounts
available to be borrowed pursuant to a subsequent Advance.
IN WITNESS WHEREOF, the Borrower has executed and delivered this
Notice of Borrowing as of the ____ day of _________, ____.
STATE STREET BANK AND TRUST
COMPANY OF CONNECTICUT, NATIONAL
ASSOCIATION, as Subordination Agent, as
Borrower
By:
----------------------------------------
Name:
Title:
I-2
34
SCHEDULE I TO INTEREST ADVANCE NOTICE OF BORROWING
[Insert Copy of Computations in accordance with Interest Advance Notice of
Borrowing]
I-3
35
ANNEX II TO
REVOLVING CREDIT AGREEMENT
NON-EXTENSION ADVANCE NOTICE OF BORROWING
The undersigned, a duly authorized signatory of the undersigned
subordination agent (the "BORROWER"), hereby certifies to Westdeutsche
Landesbank Girozentrale, New York Branch (the "LIQUIDITY PROVIDER"), with
reference to the Revolving Credit Agreement (2000-1C), dated as of November 16,
2000, between the Borrower and the Liquidity Provider (the "LIQUIDITY
AGREEMENT"; the terms defined therein and not otherwise defined herein being
used herein as therein defined or referenced), that:
(1) The Borrower is the Subordination Agent under the
Intercreditor Agreement.
(2) The Borrower is delivering this Notice of Borrowing
for the making of the Non-Extension Advance by the Liquidity Provider
to be used for the funding of the Class C Cash Collateral Account in
accordance with Section 3.06(d) of the Intercreditor Agreement, which
Advance is requested to be made on __________, ____. The Non-Extension
Advance should be remitted to [insert wire and account details].
(3) The amount of the Non-Extension Advance requested
hereby (i) is $_______________.__, which equals the Maximum Available
Commitment on the date hereof and is to be applied in respect of the
funding of the Class C Cash Collateral Account in accordance with
Sections 3.06(d) and 3.06(f) of the Intercreditor Agreement, (ii) does
not include any amount with respect to the payment of the principal
of, or premium on, the Class C Certificates, or principal of, or
interest or premium on, the Class A-1 Certificates, the Class A-2
Certificates or the Class B Certificates, (iii) was computed in
accordance with the provisions of the Class C Certificates, the Class
C Trust Agreement and the Intercreditor Agreement (a copy of which
computation is attached hereto as Schedule I) and (iv) has not been
and is not the subject of a prior or contemporaneous Notice of
Borrowing under the Liquidity Agreement.
(4) Upon receipt by or on behalf of the Borrower of the
amount requested hereby, (a) the Borrower will deposit such amount in
the Class C Cash Collateral Account and apply the same in accordance
with the terms of Sections 3.06(d) and 3.06(f) of the Intercreditor
Agreement, (b) no portion of such amount shall be applied by the
Borrower for any other purpose and (c) no portion of such amount until
so applied shall be commingled with other funds held by the Borrower.
The Borrower hereby acknowledges that, pursuant to the Liquidity
Agreement, (A) the making of the Non-Extension Advance as requested by this
Notice of Borrowing shall automatically and irrevocably terminate the
obligation of the Liquidity Provider to make further Advances under the
Liquidity Agreement and (B) following the making by the Liquidity
II-1
36
Provider of the Non-Extension Advance requested by this Notice of Borrowing,
the Borrower shall not be entitled to request any further Advances under the
Liquidity Agreement.
IN WITNESS WHEREOF, the Borrower has executed and delivered this
Notice of Borrowing as of the ____ day of _________, ____.
STATE STREET BANK AND TRUST
COMPANY OF CONNECTICUT, NATIONAL
ASSOCIATION, as Subordination Agent, as
Borrower
By:
----------------------------------------
Name:
Title:
II-2
37
SCHEDULE I TO NON-EXTENSION ADVANCE NOTICE OF BORROWING
[Insert Copy of computations in accordance with Non-Extension Advance Notice of
Borrowing]
II-3
38
ANNEX III to
REVOLVING CREDIT AGREEMENT
DOWNGRADE ADVANCE NOTICE OF BORROWING
The undersigned, a duly authorized signatory of the undersigned
subordination agent (the "BORROWER"), hereby certifies to Westdeutsche
Landesbank Girozentrale, New York Branch (the "LIQUIDITY PROVIDER"), with
reference to the Revolving Credit Agreement (2000-1C), dated as of November 16,
2000, between the Borrower and the Liquidity Provider (the "LIQUIDITY
AGREEMENT"; the terms defined therein and not otherwise defined herein being
used herein as therein defined or referenced), that:
(1) The Borrower is the Subordination Agent under the
Intercreditor Agreement.
(2) The Borrower is delivering this Notice of Borrowing
for the making of the Downgrade Advance by the Liquidity Provider to
be used for the funding of the Class C Cash Collateral Account in
accordance with Section 3.06(c) of the Intercreditor Agreement by
reason of the downgrading of the short-term unsecured debt rating or
long-term unsecured debt rating of the Liquidity Provider issued by
either Rating Agency below the Threshold Rating, which Advance is
requested to be made on __________, ____. The Downgrade Advance should
be remitted to [insert wire and account details].
(3) The amount of the Downgrade Advance requested hereby
(i) is $_______________.__, which equals the Maximum Available
Commitment on the date hereof and is to be applied in respect of the
funding of the Class C Cash Collateral Account in accordance with
Sections 3.06(c) and 3.06(f) of the Intercreditor Agreement, (ii) does
not include any amount with respect to the payment of the principal
of, or premium on, the Class C Certificates, or principal of, or
interest or premium on, the Class A-1 Certificates, the Class A-2
Certificates or the Class B Certificates, (iii) was computed in
accordance with the provisions of the Class C Certificates, the Class
C Trust Agreement and the Intercreditor Agreement (a copy of which
computation is attached hereto as Schedule I) and (iv) has not been
and is not the subject of a prior or contemporaneous Notice of
Borrowing under the Liquidity Agreement.
(4) Upon receipt by or on behalf of the Borrower of the
amount requested hereby, (a) the Borrower will deposit such amount in
the Class C Cash Collateral Account and apply the same in accordance
with the terms of Sections 3.06(c) and 3.06(f) of the Intercreditor
Agreement, (b) no portion of such amount shall be applied by the
Borrower for any other purpose and (c) no portion of such amount until
so applied shall be commingled with other funds held by the Borrower.
The Borrower hereby acknowledges that, pursuant to the Liquidity
Agreement, (A) the making of the Downgrade Advance as requested by this Notice
of Borrowing shall automatically and irrevocably terminate the obligation of
the Liquidity Provider to make further Advances
III-1
39
under the Liquidity Agreement and (B) following the making by the Liquidity
Provider of the Downgrade Advance requested by this Notice of Borrowing, the
Borrower shall not be entitled to request any further Advances under the
Liquidity Agreement.
IN WITNESS WHEREOF, the Borrower has executed and delivered this
Notice of Borrowing as of the ____ day of _________, ____.
STATE STREET BANK AND TRUST
COMPANY OF CONNECTICUT, NATIONAL
ASSOCIATION, as Subordination Agent, as
Borrower
By:
----------------------------------------
Name:
Title:
III-2
40
SCHEDULE I TO DOWNGRADE ADVANCE NOTICE OF BORROWING
[Insert Copy of computations in accordance with Downgrade Advance Notice of
Borrowing]
III-3
41
ANNEX IV to
REVOLVING CREDIT AGREEMENT
FINAL ADVANCE NOTICE OF BORROWING
The undersigned, a duly authorized signatory of the undersigned
borrower (the "BORROWER"), hereby certifies to Westdeutsche Landesbank
Girozentrale, New York Branch (the "LIQUIDITY PROVIDER"), with reference to the
Revolving Credit Agreement (2000-1C), dated as of November 16, 2000, between
the Borrower and the Liquidity Provider (the "LIQUIDITY AGREEMENT"; the terms
defined therein and not otherwise defined herein being used herein as therein
defined or referenced), that:
(1) The Borrower is the Subordination Agent under the
Intercreditor Agreement.
(2) The Borrower is delivering this Notice of Borrowing
for the making of the Final Advance by the Liquidity Provider to be
used for the funding of the Class C Cash Collateral Account in
accordance with Section 3.06(i) of the Intercreditor Agreement by
reason of the receipt by the Borrower of a Termination Notice from the
Liquidity Provider with respect to the Liquidity Agreement, which
Advance is requested to be made on ____________, ____. The Final
Advance should be remitted to [insert wire and account details].
(3) The amount of the Final Advance requested hereby (i)
is $_________________.__, which equals the Maximum Available
Commitment on the date hereof and is to be applied in respect of the
funding of the Class C Cash Collateral Account in accordance with
Sections 3.06(f) and 3.06(i) of the Intercreditor Agreement, (ii) does
not include any amount with respect to the payment of principal of, or
premium on, the Class C Certificates, or principal of, or interest or
premium on, the Class A-1 Certificates, the Class A-2 Certificates or
the Class B Certificates, (iii) was computed in accordance with the
provisions of the Class C Certificates, the Class C Trust Agreement
and the Intercreditor Agreement (a copy of which computation is
attached hereto as Schedule I) and (iv) has not been and is not the
subject of a prior or contemporaneous Notice of Borrowing.
(4) Upon receipt by or on behalf of the Borrower of the
amount requested hereby, (a) the Borrower will deposit such amount in
the Class C Cash Collateral Account and apply the same in accordance
with the terms of Sections 3.06(f) and 3.06(i) of the Intercreditor
Agreement, (b) no portion of such amount shall be applied by the
Borrower for any other purpose and (c) no portion of such amount until
so applied shall be commingled with other funds held by the Borrower.
(5) [The Borrower hereby requests that the Advance
requested hereby be a Base Rate Advance [and that such Base Rate
Advance be converted into a LIBOR Advance on the third Business Day
following your receipt of this notice]*.]
IV-1
42
The Borrower hereby acknowledges that, pursuant to the Liquidity
Agreement, (A) the making of the Final Advance as requested by this Notice of
Borrowing shall automatically and irrevocably terminate the obligation of the
Liquidity Provider to make further Advances under the Liquidity Agreement and
(B) following the making by the Liquidity Provider of the Final Advance
requested by this Notice of Borrowing, the Borrower shall not be entitled to
request any further Advances under the Liquidity Agreement.
IN WITNESS WHEREOF, the Borrower has executed and delivered this
Notice of Borrowing as of the ____ day of _________, ____.
STATE STREET BANK AND TRUST
COMPANY OF CONNECTICUT, NATIONAL
ASSOCIATION, as Subordination Agent, as
Borrower
By:
----------------------------------------
Name:
Title:
[* Bracketed language may be included at Borrower's option.]
IV-2
43
SCHEDULE I TO FINAL ADVANCE NOTICE OF BORROWING
[Insert Copy of Computations in accordance with Final Advance Notice of
Borrowing]
IV-3
44
ANNEX V to
REVOLVING CREDIT AGREEMENT
NOTICE OF TERMINATION
[Date]
State Street Bank and Trust
Company of Connecticut,
National Association, as
Subordination Agent, as
Borrower
225 Asylum Street
Xxxxxxx Square
Hartford, Connecticut 06103
Attention: Corporate Trust Division
Re: Revolving Credit Agreement, dated as of November 16, 2000, between
State Street Bank and Trust Company of Connecticut, National
Association, as Subordination Agent, as agent and trustee for the
Delta Air Lines Pass Through Trust 2000-1C, as Borrower, and
Westdeutsche Landesbank Girozentrale, New York Branch (the "LIQUIDITY
AGREEMENT")
Ladies and Gentlemen:
You are hereby notified that pursuant to Section 6.01 of the Liquidity
Agreement, by reason of the occurrence and continuance of a Liquidity Event of
Default and the existence of a Performing Note Deficiency (each as defined
therein), we are giving this notice to you in order to cause (i) our
obligations to make Advances (as defined therein) under such Liquidity
Agreement to terminate at the close of business on the fifth Business Day after
the date on which you receive this notice and (ii) you to request a Final
Advance under the Liquidity Agreement pursuant to Section 3.06(i) of the
Intercreditor Agreement (as defined in the Liquidity Agreement) as a
consequence of your receipt of this notice.
THIS NOTICE IS THE "NOTICE OF TERMINATION" PROVIDED FOR UNDER THE
LIQUIDITY AGREEMENT. OUR OBLIGATIONS TO MAKE ADVANCES UNDER THE LIQUIDITY
AGREEMENT WILL TERMINATE AT THE
V-1
45
CLOSE OF BUSINESS ON THE FIFTH BUSINESS DAY AFTER THE DATE ON WHICH YOU RECEIVE
THIS NOTICE.
Very truly yours,
------------------------------------------,
as Liquidity Provider
By:
----------------------------------------
Name:
Title:
cc: State Street Bank and Trust Company of Connecticut,
National Association, as Class C Trustee
V-2
46
ANNEX VI TO
REVOLVING CREDIT AGREEMENT
NOTICE OF REPLACEMENT SUBORDINATION AGENT
[Date]
Attention:
Re: Revolving Credit Agreement, dated as of November 16, 2000, between
State Street Bank and Trust Company of Connecticut, National
Association, as Subordination Agent, as agent and trustee for the
Delta Airlines Pass Through Trust 2000-1C, as Borrower, and
Westdeutsche Landesbank Girozentrale, New York Branch (the "LIQUIDITY
AGREEMENT")
Ladies and Gentlemen:
For value received, the undersigned beneficiary hereby irrevocably
transfers to:
[Name of Transferee]
[Address of Transferee]
all rights and obligations of the undersigned as Borrower under the Liquidity
Agreement referred to above. The transferee has succeeded the undersigned as
Subordination Agent under the Intercreditor Agreement referred to in the first
paragraph of the Liquidity Agreement, pursuant to the terms of Section 7.01 of
the Intercreditor Agreement.
By this transfer, all rights of the undersigned as Borrower under the
Liquidity Agreement are transferred to the transferee and the transferee shall
hereafter have the sole rights and obligations as Borrower thereunder. The
undersigned shall pay any costs and expenses of such transfer, including, but
not limited to, transfer taxes or governmental charges.
This transfer shall be effective as of [specify time and date].
STATE STREET BANK AND TRUST
COMPANY OF CONNECTICUT, NATIONAL
ASSOCIATION, as Subordination Agent, as
Borrower
By:
----------------------------------------
Name:
Title:
VI-1
