Exhibit 10.3
NON-EXCLUSIVE AIRCRAFT LEASE AGREEMENT
Dated
as of the 3rd day of October, 2006,
between
Franklin Mountain Assets LLC, a Delaware limited liability
company,
as Owner,
and Western Refining Company, L.P., a Delaware limited
partnership,
as Lessee,
concerning one Cessna Model 680 Citation Sovereign aircraft
bearing
U.S. registration number N345PF,
and
Manufacturer’s serial number 680-0080.
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INSTRUCTIONS FOR COMPLIANCE WITH “TRUTH IN LEASING”
REQUIREMENTS UNDER FAR § 91.23.
Within 24 hours after
execution of this Aircraft Lease Agreement :
Mail a copy of the executed document
to the following address via certified mail, return receipt
requested:
Federal Aviation Administration
Aircraft Registration Branch
ATTN: Technical Section
P.O. Box 25724
Oklahoma City, Oklahoma 73125
48 hours prior to the first flight :
The lessee or conditional buyer, or
the registered owner if the lessee is not a citizen of the United
States, must notify by telephone or in person the FAA Flight
Standards district office nearest the airport where the flight will
originate. Unless otherwise authorized by that office, the
notification shall be given at least 48 hours before takeoff in the
case of the first flight of that aircraft under that lease or
contract.
Carry a copy of this Aircraft Lease Agreement in the aircraft
at all times.
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Exhibit B is intentionally omitted for FAA
submission purposes.
This NON-EXCLUSIVE AIRCRAFT LEASE
AGREEMENT (the “Agreement”) is entered into as of
this 3rd day of October, 2006 (the “Effective Date”),
by and between Western Refining Company, L.P., a Delaware limited
partnership (“Lessee”), and Franklin Mountain Assets
LLC, a Delaware limited liability company
(“Owner”).
WITNESSETH:
WHEREAS , Owner holds title
in and to the Aircraft described and referred to herein;
WHEREAS , Lessee desires to
lease from Owner, and Owner desires to lease to Lessee, the
Aircraft, on a non-exclusive basis, upon and subject to the terms
and conditions of this Agreement; and
WHEREAS , during the term of
this Agreement, the Aircraft may be subject to concurrent leases to
other lessees.
NOW, THEREFORE , in
consideration of the mutual promises herein contained and other
good and valid consideration, the receipt and sufficiency of which
are hereby acknowledged, the Parties agree as follows:
SECTION 1.
DEFINITIONS
1.1 The following terms shall have
the following meanings for all purposes of this Agreement:
“ Aircraft ” means
the Airframe, the Engines, and the Aircraft Documents. Such Engines
shall be deemed part of the “Aircraft” whether or not
from time to time attached to the Airframe or on the ground.
“ Aircraft Documents
” means all flight records, maintenance records, historical
records, modification records, overhaul records; manuals, logbooks,
authorizations, drawings and data relating to the Airframe, any
Engine, or any Part, that have been provided to Lessee by Owner, or
are required by Applicable Law to be created or maintained with
respect to the maintenance and/or operation of the Aircraft.
“ Airframe ” means
the aircraft specified in Exhibit A, together with any and all
Parts (including, but not limited to, landing gear and auxiliary
power units but excluding Engines or engines) so long as such Parts
shall be either incorporated or installed in or attached to the
Airframe.
“ Applicable Law ”
means, without limitation, all applicable laws, treaties,
international agreements, decisions and orders of any court,
arbitration or governmental agency or authority and rules,
regulations, orders, directives, licenses and permits of any
governmental body, instrumentality, agency or authority, including,
without limitation, the FAR and 49 U.S.C. § 41101, et
seq. , as amended.
“ Business Day ”
means any day of the year in which banks are not authorized or
required to close in the State of Texas.
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“ Engines ” means
the engine(s) specified in Exhibit A, together with any and
all Parts so long as the same shall be either incorporated or
installed in or attached to such Engine. An Engine shall remain
leased hereunder whether or not from time to time attached to the
Airframe or on the ground.
“ Event of Loss ”
shall mean any of the following events with respect to any
property:
(i) loss
of such property or of the use thereof due to theft or
disappearance (with loss being conclusive following 30 days or
such other period specified in applicable insurance), destruction,
damage beyond economic repair or rendition of such property
permanently unfit for normal use for any reason;
(ii) any
damage to such property which results in an insurance settlement
with respect to such property on the basis of an actual,
constructive or compromised total loss; or
(iii) the
condemnation, confiscation or seizure of, or requisition of title
to or use of, such property by private persons or by any
governmental or purported governmental authority.
“ FAA ” means the
Federal Aviation Administration or any successor agency,
“ FAR ” means
collectively the Aeronautics Regulations of the Federal Aviation
Administration and the Department of Transportation, as codified at
Title 14, Parts 1 to 399 of the United States Code of Federal
Regulations.
“ Flight Hour ”
means each flight hour of use of the Aircraft by Lessee, as
recorded on the Aircraft hour meter.
“ Lease Period ”
each lease period shall commence with delivery and conclude with
the return of the Aircraft. If requested by Owner, Lessee shall
execute a Delivery and Acceptance Certificate in the form attached
to this Agreement each time the Lessee accepts delivery of the
Aircraft.
“ Lien ” means any
mortgage, security interest, lease or other charge or encumbrance
or claim or right of others, including, without limitation, rights
of others under any airframe or engine interchange or pooling
agreement.
“ Operating Base ”
means that airport described in Exhibit A.
“ Operational Control
” has the same meaning given the term in Section 1.1 of
the FAR.
“ Parts ” means
all appliances, components, parts, instruments, appurtenances,
accessories, furnishings or other equipment of whatever nature
(other than complete Engines or engines) which may from time to
time be incorporated or installed in or attached to the Airframe or
any Engine and includes replacement parts.
“ Pilot in Command
” has the same meaning given the term in Section 1.1 of
the FAR.
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“ Rent Payment Date
” means the payments dates as outlined in
Exhibit A.
“ Taxes ” means
all sales taxes, use taxes, retailer taxes, duties, fees, excise
taxes (including) without limitation, federal transportation
excise taxes), or other taxes of any kind which may be assessed or
levied by any Taxing Jurisdiction as a result of the lease of the
Aircraft to Lessee, or the use of the Aircraft by Lessee, or the
provision of a taxable transportation service by Lessee using the
Aircraft.
“ Taxing Jurisdictions
” means any federal, state, county, local, airport, district,
foreign, or of governmental authority that imposes Taxes.
“ Term ” means the
term of this Agreement set forth in Section 3.1.
SECTION 2. LEASE AND DELIVERY OF THE
AIRCRAFT
2.1 Lease . Owner agrees to
lease to Lessee, and Lessee agrees to lease from Owner, the
Aircraft, on the terms and conditions of this Agreement.
2.2 Delivery . The Aircraft
shall be delivered to Lessee on a mutually agreed date (the
“Delivery Date”) at the Operating Base and “AS
IS,” “WHERE IS,” AND SUBJECT TO EACH AND EVERY
DISCLAIMER OF WARRANTY AND REPRESENTATION AS SET FORTH IN SECTION 4
HEREOF. Owner shall not be liable for delay or failure to furnish
the Aircraft pursuant to this Agreement when such failure is caused
by government regulation or authority, mechanical difficulty, war,
civil commotion, strikes or labor disputes, weather conditions, or
acts of God.
2.3 Non-Exclusivity . Lessee
and Owner acknowledge that the Aircraft is leased to Lessee on a
non-exclusive basis, and that the Aircraft will be subject use by
Owner, and may also be subject to non-exclusive lease to others
during the Term.
SECTION 3. TERM, SCHEDULING, AND RENT
3.1 Term . This Agreement may
be terminated at the will of the parties at any time the Aircraft
is in the possession of the Owner.
3.2 Scheduling . Each use of
the Aircraft by Lessee shall be subject to Owner’s approval.
Lessee shall submit flight scheduling requests to Owner as far in
advance as reasonably possible. Owner may approve or deny any
flight scheduling request in Owner’s sole discretion.
3.3 Rent . Lessee shall pay
rent in an amount equal to the Hourly Rent specified in
Exhibit B , attached hereto, which amount may be
amended in writing by mutual agreement of the parties from time to
time, for each Flight Hour of use of the Aircraft by Lessee. All
rent shall be paid to the Owner in immediately available U.S. funds
and in form and manner as the Owner in its sole discretion may
instruct Lessee from time to time.
3.4 Taxes . (a) Neither
rent nor any other payments to be made by Lessee under this
Agreement includes the amount of any Taxes which may be assessed or
levied by any Taxing
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Jurisdictions as a result of the lease of the Aircraft to Lessee,
or the use of the Aircraft by Lessee, or the provision of a taxable
transportation service by Lessee using the Aircraft. Lessee shall
be responsible for, shall indemnify and hold harmless Owner
against, and, except as provided in Section 3.4(b), Lessee
shall remit to Owner all such Taxes together with each payment of
rent pursuant to Section 3.3; provided, however, that if any
such Taxes shall be due and payable at an earlier time as a matter
of Applicable Law, Lessee shall remit such Taxes to Owner at the
time required by Applicable Law.
(b) If any Taxes shall be
required by Applicable Law to be paid by Lessee directly to the
appropriate Taxing Jurisdiction, Lessee shall remit such Taxes
directly to the appropriate Taxing Jurisdiction promptly at the
time required by Applicable Law, and shall provide evidence of such
payment to Owner.
SECTION 4. DISCLAIMER OF WARRANTIES
4.1 THE AIRCRAFT IS BEING LEASED BY
THE OWNER TO THE LESSEE HEREUNDER ON A COMPLETELY “AS
IS,” “WHERE IS,” BASIS, WHICH IS ACKNOWLEDGED AND
AGREED TO BY THE LESSEE. THE WARRANTIES AND REPRESENTATIONS SET
FORTH IN THIS SECTION 4 ARE EXCLUSIVE AND IN LIEU OF ALL OTHER
REPRESENTATIONS OR WARRANTIES WHATSOEVER, EXPRESS OR IMPLIED, AND
OWNER HAS NOT MADE AND SHALL NOT BE CONSIDERED OR DEEMED TO HAVE
MADE (WHETHER BY VIRTUE OF HAVING LEASED THE AIRCRAFT UNDER THIS
AGREEMENT, OR HAVING ACQUIRED THE AIRCRAFT, OR HAVING DONE OR
FAILED TO DO ANY ACT, OR HAVING ACQUIRED OR FAILED TO ACQUIRE ANY
STATUS UNDER OR IN RELATION TO THIS AGREEMENT OR OTHERWISE) ANY
OTHER REPRESENTATION OR WARRANTY WHATSOEVER, EXPRESS OR IMPLIED,
WITH RESPECT TO THE AIRCRAFT OR TO ANY PART THEREOF, AND
SPECIFICALLY, WITHOUT LIMITATION, IN THIS RESPECT DISCLAIMS AS TO
THE TITLE, AIRWORTHINESS, VALUE, CONDITION, DESIGN,
MERCHANTABILITY, COMPLIANCE WITH SPECIFICATIONS, CONSTRUCTION AND
CONDITION OF THE AIRCRAFT OPERATION, OR FITNESS FOR A PARTICULAR
USE OF THE AIRCRAFT AND AS TO THE ABSENCE OF LATENT AND OTHER
DEFECTS, WHETHER OR NOT DISCOVERABLE, AS TO THE ABSENCE OF ANY
INFRINGEMENT OR THE LIKE, HEREUNDER OF ANY PATENT, TRADEMARK OR
COPYRIGHT AS TO THE ABSENCE OF OBLIGATIONS BASED ON STRICT
LIABILITY IN TORT, OR AS TO THE QUALITY OF THE MATERIAL OR
WORKMANSHIP OF THE AIRCRAFT OR ANY PART THEREOF OR ANY OTHER
REPRESENTATION OR WARRANTY WHATSOEVER, EXPRESS OR IMPLIED
(INCLUDING, ANY IMPLIED WARRANTY ARISING FROM A COURSE OF
PERFORMANCE OR DEALING OR USAGE OF TRADE), WITH RESPECT TO THE
AIRCRAFT OR ANY PART THEREOF, THE LESSEE HEREBY WAIVES, RELEASES,
DISCLAIMS AND RENOUNCES ALL EXPECTATION OF OR RELIANCE UPON ANY
SUCH AND OTHER WARRANTIES, OBLIGATIONS AND LIABILITIES OF OWNER AND
RIGHTS, CLAIMS AND REMEDIES OF THE LESSEE AGAINST OWNER, EXPRESS OR
IMPLIED, ARISING BY LAW OR OTHERWISE, INCLUDING BUT NOT LIMITED TO
(I) ANY IMPLIED WARRANTY OF MERCHANTABILITY OF FITNESS FOR ANY
PARTICULAR USE, (II) ANY IMPLIED WARRANTY ARISING FROM COURSE
OF PERFORMANCE, COURSE OF DEALING OR USAGE OF TRADE,
(III) ANY
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OBLIGATION, LIABILITY, RIGHT, CLAIM OR REMEDY IN TORT, WHETHER OR
NOT ARISING FROM THE NEGLIGENCE OF OWNER, ACTUAL OR IMPUTED, AND
(IV) ANY OBLIGATION, LIABILITY, RIGHT, CLAIM OR REMEDY FOR
LOSS OF OR DAMAGE TO THE AIRCRAFT, FOR LOSS OF USE, REVENUE OR
PROFIT WITH RESPECT TO THE AIRCRAFT, OR FOR ANY OTHER DIRECT,
INCIDENTAL OR, CONSEQUENTIAL DAMAGES.
SECTION 5. REGISTRATION, USE, OPERATION, MAINTENANCE
AND POSSESSION
5.1 Title
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