EXHIBIT 10.2
AIRCRAFT
INTERCHANGE
AGREEMENT
This AIRCRAFT INTERCHANGE AGREEMENT (the " Agreement ") is made and
entered into as of January 1, 2005, by and between Interface
Operations LLC (" Interface "), and Las Vegas Sands Corp. ("
LVSC ").
In consideration of the mutual
promises, agreements, covenants, warranties, representations and
provisions contained herein, the parties agree as
follows:
1.
Interchange of the Aircraft . Each party represents to the
other party that such party owns, leases or otherwise has exclusive
possession and control of the aircraft set forth next to such
party's name in Exhibit A (any one or more of such aircraft shall
be referred to as the " Aircraft "). Subject to the terms
and conditions contained herein, each party shall make available to
the other party its Aircraft, with a flight crew, on an
as-available basis, in exchange for equal flight time on such other
party's Aircraft, together with a charge calculated in accordance
with section 8(a) and Exhibit A to reflect the differential cost of
owning, operating and maintaining the aircraft listed in Exhibit A
which shall be paid as set forth in section 8(b). This Agreement is
intended to be an interchange agreement within the meaning of 14
C.F.R. Section 91.501(c)(2).
2.
Term . The term of this Agreement (the " Term ")
shall commence on the date of this Agreement and end one year
thereafter (the " Expiration Date "). The Expiration Date
(as it may be extended) shall be automatically extended by one year
if neither party has given notice of non-renewal to the other at
least 30 days before the then Expiration Date. Notwithstanding
anything to the contrary in this section 2, either party may
terminate this Agreement on 30 days' notice, provided that such
party is not then in default.
3.
Delivery . Upon the request of a party to the other party,
subject to the availability of such other party's Aircraft at the
time of such request for the flights proposed by such party, such
other party shall deliver its Aircraft to such party at such
location as such party may reasonably request. LVSC acknowledges
that Interface currently bases its Aircraft at McCarran
International Airport, Las Vegas, Nevada and Interface acknowledges
that LVSC currently bases its Aircraft at McCarran International
Airport, Las Vegas, Nevada (each base with respect to an Aircraft,
as such base may be changed from time to time, shall be referred to
as a " Home Base ").
4.
Return . On the earlier of the Expiration Date or the
termination of this Agreement pursuant to section 14(a)(i) and,
unless the other party agrees to the contrary, upon the conclusion
of each flight of such other party's Aircraft on behalf of a party
under this Agreement, such other party's Aircraft shall be returned
to its Home Base or such other location as the parties may agree.
For the sake of clarification, flight time to ferry an Aircraft to
the delivery location specified by a party pursuant to section 3,
and flights to return the Aircraft to the Home Base or such other
location as the parties agree pursuant to this section 4, shall be
deemed to be use of the Aircraft by such party.
(a) Each
party shall use the other party's Aircraft only for the
transportation of its employees and guests and shall not obtain
compensation for such transportation from any person.
(b) With
respect to the use by a party of the other party's Aircraft under
this Agreement, such party shall not violate, and such party shall
not permit any of its employees, agents or guests to violate, any
applicable law, regulation or rule of the United States, and state,
territory or local authority, or any foreign government or
subdivision thereof and such party shall not bring or cause to be
brought or carried on board such other party's Aircraft, or permit
any employee, agent or guest to bring or cause to be brought or
carried on board such other party's Aircraft, any contraband or
unlawful articles or substances, or anything that is contraband or
is an unlawful article or substance in any jurisdiction into or
over which such other party's Aircraft is to operate on behalf of
such party.
(c) Each
party shall, and each party shall cause its employees, agents and
guests to, comply with all lawful instructions and procedures of
the other party and its agents and employees regarding such other
party's Aircraft, its operation or flight safety.
(d) Each
party acknowledges that its discretion in determining the origin
and destination of its flights on the other party's Aircraft under
this Agreement shall be subject to the following: (i) such origin
and destination, and the routes to reach such origin and
destination, are not within or over (A) an area of hostilities, (B)
an area excluded from coverage under the insurance policies
maintained by such other party with respect to such other party's
Aircraft or (C) a country or jurisdiction for which exports or
transactions are subject to specific restrictions under any United
States export or other law or United Nations Security Council
Directive, including without limitation, the Trading With the Enemy
Act, 50 U.S.C. App. Section 1 et seq., the International Emergency
Economic Powers Act, 50 U.S.C. Section 1701 et seq. and the Export
Administration Act, 50 U.S.C. App. Section 2401 et seq.; (ii) the
flights proposed by such party shall not cause (A) such other
party's Aircraft or any part thereof (1) to be used predominately
outside of the United States within the meaning of the Section
168(g)(1)(A) of the Internal Revenue Code of 1986, as amended (the
" Code "), and (2) to fail to be operated to and from the
United States within the meaning of Section 168(g)(4)(A) of the
Code; or (B) any item of income, gain, deduction, loss or credit
with respect to the transactions contemplated by this Agreement to
be treated as derived from, or allocable to, sources without the
United States within the meaning of Section 862 of the Code; or (C)
such other party or such other party's Aircraft to become liable
for any personal property, ad valorem, rental, sales, use, excise,
value-added, leasing, leasing use, stamp, or other similar tax,
levy, impost, duty, charge, fee or withholding; (iii) the proposed
flights do not require the flight crew to exceed any flight or duty
time limitations that such other party imposes upon its flight
crews; and (iv) in the judgment of the such other party, the safety
of flight is not jeopardized.
(e) Each
party acknowledges that, if, in the opinion of the other party
(including, its pilot-in-command), flight safety may be
jeopardized, such other party may terminate a flight or refuse to
commence it without liability for loss, injury or damage occasioned
by such termination or refusal. Each party acknowledges that the
other party
shall not be liable for any loss,
damage, cost or expense arising from or related to, directly or
indirectly, any delay, cancellation or failure to furnish any
transportation pursuant to this Agreement, including, without
limitation, when caused by government regulation, law or authority,
mechanical difficulty or breakdown, war, civil commotion, strikes
or other labor disputes, weather conditions, acts of God, public
enemies or any other cause beyond such other party's
control.
(f) LVSC
acknowledges that (i) Interface's Aircraft is owned by Yona
Aviation Corp. (" Yona Aviation ") and is leased to
Interface (the " G-III Lease "), and (ii) LVSC's
rights in and to Interface's Aircraft under this Agreement are
subject and subordinate to all terms of the G-III Lease and all
rights of Yona Aviation in and to the Aircraft and under the G-III
Lease, including, without limitation, the right of Yona Aviation to
inspect and take possession of the Aircraft from time to time in
accordance with the GIII-Lease and applicable law. LVSC
acknowledges that Yona Aviation has not made any warranty or
representation, either express or implied, as to the design,
compliance with specifications, operation, or condition of, or as
to the quality of the material, aircraft, or workmanship in,
Interface's Aircraft or any component thereof delivered to
Interface, and Yona Aviation does not make any warranty of
merchantability or fitness of Interface's Aircraft or any component
thereof for any particular purpose, or any other representation or
warranty, express or implied, with respect to Interface's Aircraft
or component thereof.
6.
Pilots . For all flights pursuant to this Agreement, each
party shall cause its Aircraft to be operated by pilots who are
duly qualified under the Federal Aviation Regulations, including
without limitation, with respect to currency and type-rating, who
meet all other requirements established and specified by the
insurance policies required hereunder.
7.
Operation and Maintenance Responsibilities . Each party
shall be in operational control of its Aircraft for all flights on
such Aircraft by the other party pursuant to this Agreement. As
between the parties, each party shall be solely responsible for the
operation and maintenance of its Aircraft.
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8.
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Flight Specific Expenses .
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(a) The
differential cost of operating the Aircraft shall include the
differential amount of costs specifically incurred with respect to
each flight (including ferry or positioning flights) that are not
directly associated with operating the Aircraft,
including:
(i) all
fees, including fees for landing, parking, hangar, tie-down,
handling, customs, use of airways and permission for
overflight;
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(ii)
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all expenses for flight planning and weather
contract services;
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(iii)
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all expenses for catering and in-flight
entertainment materials;
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(iv) all
travel expenses for pilots, flight attendants and other flight
support personnel, including food, lodging and ground
transportation;
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(v)
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all communications charges, including in-flight
telephone.
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Costs specifically incurred for a
flight are not intended to include costs ordinarily incurred with
respect to the operation of the Aircraft such as: hangaring at the
Home Base, insurance, crew training, crew salaries and benefits,
maintenance, fuel and oil. Each party shall be responsible for
arranging and paying for all passenger ground transportation and
accommodation in connection with such party's use of the other
party's Aircraft.
(b) Each
party shall deliver to the other party an itemized statement of all
costs described in section 8(a) and Exhibit A incurred in the
previous month with respect to flights by the other party. If the
amount of such costs incurred by LVSC exceeds the amount of such
costs incurred by Interface, then Interface shall pay LVSC such
excess no later than 30 days after receiving LVSC's statement of
such costs. If the amount of such costs incurred by Interface
exceeds the amount of such costs incurred by LVSC, then LVSC shall
pay Interface such excess no later than 30 days after receiving
Interface's statement. Each party shall, on request of the other
party, provide documentation to support the amount of costs
reflected on such party's statements.
(a) Except
for any taxes on, or measured by, the net income of a party imposed
by the United States Government or any state or local government or
taxing authority in the United States, which shall be the sole
responsibility of such party, the other party shall pay to and
indemnify such party and its employees and agents (collectively,
the " Indemnitees ") for, and hold each Indemnitee harmless
from and against, on an after-tax basis, all other income,
franchise, gross receipts, rental, sales, use, excise, personal
property, ad valorem, value added, leasing, leasing use, stamp,
landing, airport use, or other taxes, levies, imposts, duties,
charges, fees or withholdings of any nature, together with any
penalties, fines, or interest thereon (" Taxes ") arising
out of such party's use of such other party's Aircraft and imposed
against any Indemnitee, lessee, or the Aircraft, or any part
thereof, by any federal or foreign government, any state, municipal
or local subdivision, any agency or instrumentality thereof or
other taxing authority upon or with respect to the Aircraft, or any
part thereof, or upon the ownership, delivery, leasing, possession,
use, operation, return, transfer or release thereof, or upon the
rentals, receipts or earnings arising therefrom, or upon or with
respect to this Agreement. The indemnifying party shall have the
right to contest any Taxes, provided that (a) the indemnifying
party shall have given to such other party written notice of any
such Taxes, which notice shall state that such Taxes are being
contested by the indemnifying party in good faith with due
diligence and by appropriate proceedings and that the indemnifying
party has agreed to indemnify each Indemnitee against any cost,
expense, liability or loss (including, without limitation,
reasonable attorneys' fees) arising from or in connection with such
contest; (b) in such other party's sole judgment, such other party
has received adequate assurances of payment of such contested
Taxes; and (c) counsel for such other party sh