Side Letter Agreement to Lease Agreement among Chautauqua Airlines, Silvermine River Finance Two, and Wells Fargo Bank Northwest (N296SK)

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Summary

This agreement is a side letter to a lease agreement for a regional jet aircraft between Chautauqua Airlines, Silvermine River Finance Two, and Wells Fargo Bank Northwest as Owner Trustee. It allows for adjustments to the insurance requirements under the lease if the owner participant changes its insurance policy standards for similar aircraft in future transactions. The agreement ensures that Chautauqua Airlines can request amendments to the lease's insurance terms to match any less stringent requirements adopted by the owner participant for comparable leases.

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EX-10.32 68 a2071795zex-10_32.txt SIDE LETTER AGREE Exhibit 10.32 SIDE LETTER AGREEMENT TO LEASE AGREEMENT [N296SK] Dated as of December 20, 2001 Reference is made to Participation Agreement [N296SK], dated as of December 20, 2001 (the "Participation Agreement"), among Chautauqua Airlines, Inc. (the "Lessee"), Silvermine River Finance Two, Inc. ("Silvermine") and Wells Fargo Bank Northwest, National Association, as Owner Trustee (the "Owner Trustee") and acknowledged by Solitair Corp. Capitalized terms used and not defined herein shall be given the meanings assigned in the Participation Agreement. Reference is made to Section 9 of the Lease and the parties hereto agree that: 1. This Letter Agreement shall be an Operative Agreement; 2. So long as Silvermine (or an Affiliate of GECC (including for avoidance of doubt, Silvermine)) is the Owner Participant, if, after the date of the Lease, the Owner Participant shall change its policy relating to the minimum amount of liability insurance coverage or war risk and allied perils liability and hull insurance with respect to regional jet passenger aircraft with standard manufacturer seating capacity of at least 35 seats operated by a U.S. regional jet air carrier such that, under a new lease transaction entered into after the date of the Lease by the Owner Participant as equity investor or lessor, the Owner Participant will generally permit the documentation for any such new lease transaction with respect to a regional jet passenger aircraft with standard manufacturer seating capacity of at least 35 seats operated by a U.S. regional jet air carrier to require (x) as to liability insurance (or war risks and allied perils liability insurance), an amount of liability insurance (or war risks and allied perils liability insurance) less than that required under Section 9 of the Lease or (y) as to war risks and allied perils liability and hull insurance, a form of coverage or scope of risk covered that is less stringent than that required under Section 9 of the Lease, the Owner Participant shall, upon written request by Lessee, (1) describe such change in writing to Lessee and (2) cause the Lessor to amend Section 9 of the Lease to reduce the amount of liability insurance (or war risk and allied perils liability insurance, or both, as the case may be) or modify the form or scope of coverage (as to war risks and allied perils liability or hull insurance) required of Lessee under Section 9 of the Lease to such lesser amount or less stringent form or scope of coverage; and 3. Silvermine hereby confirms that the agreement stated in this Letter Agreement is for the benefit of the Lessee and its successors and permitted transferees and assigns. [SIGNATURE PAGE FOLLOWS] IN WITNESS WHEREOF, the parties have caused this Side Letter Agreement to be executed by their respective, duly authorized officers as of the day and year first written above. CHAUTAUQUA AIRLINES, INC., as Lessee By: /s/ Robert H. Cooper ------------------------------------- Name: Robert H. Cooper Title: Vice-President SILVERMINE RIVER FINANCE TWO, INC., as Owner Participation By: /s/ Norman Liu ------------------------------------- Name: Norman Liu Title: Vice President WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION, not in its individual capacity, except as otherwise expressly provided herein but solely as Owner Trustee By: /s/ Brett R. King ------------------------------------- Name: Brett R. King NOTE TO EXHIBIT 10.32 The 12 additional Side Letter Agreements to the Lease Agreement are substantially identical in all material respects to the filed Side Letter Agreement to the Lease Agreement except as follows:
- ------------------------------------- ----------------------------------- ----------------------------------- TAIL NUMBER CLOSING DATE OWNER-PARTICIPANT - ------------------------------------- ----------------------------------- ----------------------------------- N289SK July, 2001 General Electric Capital Corp. - ------------------------------------- ----------------------------------- ----------------------------------- N290SK July, 2001 General Electric Capital Corp. - ------------------------------------- ----------------------------------- ----------------------------------- N291SK August, 2001 General Electric Capital Corp. - ------------------------------------- ----------------------------------- ----------------------------------- N292SK August, 2001 General Electric Capital Corp. - ------------------------------------- ----------------------------------- ----------------------------------- N293SK September, 2001 General Electric Capital Corp. - ------------------------------------- ----------------------------------- ----------------------------------- N294SK September, 2001 General Electric Capital Corp. - ------------------------------------- ----------------------------------- ----------------------------------- N295SK November, 2001 Silvermine River Finance Two, Inc. - ------------------------------------- ----------------------------------- ----------------------------------- N297SK November, 2001 Silvermine River Finance Two, Inc. - ------------------------------------- ----------------------------------- ----------------------------------- N298SK October, 2001 Silvermine River Finance Two, Inc. - ------------------------------------- ----------------------------------- ----------------------------------- N299SK November, 2001 Silvermine River Finance Two, Inc. - ------------------------------------- ----------------------------------- ----------------------------------- N370SK November, 2001 Silvermine River Finance Two, Inc. - ------------------------------------- ----------------------------------- ----------------------------------- N371SK November, 2001 Silvermine River Finance Two, Inc. - ------------------------------------- ----------------------------------- ----------------------------------- - ------------------------------------- ----------------------------------- ----------------------------------- - ------------------------------------- ----------------------------------- ----------------------------------- - ------------------------------------- ----------------------------------- ----------------------------------- - ------------------------------------- ----------------------------------- ----------------------------------- - ------------------------------------- ----------------------------------- -----------------------------------
Title: Vice President