Document:

Exhibit 10.3

 

MEMORANDUM OF UNDERSTANDING

 

This Memorandum of Understanding (“Memorandum”) is made and entered into as of May 4, 2012 between Coffeyville Resources Refining & Marketing, LLC, a Delaware limited liability company (“Refinery Company”), and Coffeyville Resources Nitrogen Fertilizers, LLC, a Delaware limited liability company (“Fertilizer Company”), each a “Party” and collectively the “Parties”.

 

A.                                    Refinery Company is the owner of certain vacant real property located in the City of Coffeyville, Montgomery County, Kansas (such vacant property, the “Refinery Property”) and adjacent to the refinery owned and operated by Refinery Company (the “Refinery”).  Fertilizer Company is the owner of certain vacant real property located in the City of Coffeyville, Montgomery County, Kansas (such vacant property, the “Fertilizer Property”) and adjacent to the fertilizer plant owned and operated by Fertilizer Company (the “Fertilizer Plant”).

 

B.                                    The Parties have been cooperating to enable Fertilizer Company to develop a rail yard on certain property located to the west of the Refinery and Fertilizer Plant, which property is legally described on Exhibit A and generally depicted on the map attached as Exhibit B (such property, the “Rail Yard Property”).  All or substantially all of the Rail Yard Property is included within the Refinery Property.

 

C.                                    Refinery Company desires to convey to Fertilizer Company all of the Refinery Property included within the Rail Yard Property (such property, the “Refinery Exchange Property”), and in exchange, Fertilizer Company desires to convey to Refinery Company a portion of the Fertilizer Property comparable in size and value to the Refinery Exchange Property, as mutually agreed upon by the Parties (such property, the “Fertilizer Exchange Property”).

 

D.                                    The exchange of the Refinery Exchange Property for the Fertilizer Exchange Property is referred to as the “Exchange”.  The Parties desire to set forth the terms of the Exchange in this Memorandum.

 

The Parties, intending to be legally bound, hereby agree as follows:

 

1.                                      Exchange of Property.  On or before February 1, 2013, as mutually agreed upon by the Parties (the “Exchange Date”):

 

(a)                                 Refinery Company will convey the Refinery Exchange Property to Fertilizer Company by special warranty deed, or such other instrument that is customary in Montgomery County, Kansas to convey fee simple title to real property and is agreed to by the Parties, free and clear of all liens and encumbrances, except for such liens and encumbrances that would be shown on a commitment for title insurance or an accurate survey of the Refinery Exchange Property and, if such commitment or survey are prepared, are approved by Fertilizer Company, such approval not to be unreasonably withheld or delayed; and

 

 

(b)                                 Fertilizer Company will convey the Fertilizer Exchange Property to Refinery Company by special warranty deed, or such other instrument that is customary in Montgomery County, Kansas to convey fee simple title to real property and is agreed to by the Parties, free and clear of all liens and encumbrances, except for such liens and encumbrances that would be shown on a commitment for title insurance or an accurate survey of the Fertilizer Exchange Property and, if such commitment or survey are prepared, are approved by Refinery Company, such approval not to be unreasonably withheld or delayed.

 

Notwithstanding the foregoing, Refinery Company will remove or cause to removed with respect to the Refinery Exchange Property, and Fertilizer Company will remove or cause to be removed with respect to the Fertilizer Exchange Property, any liens or encumbrances affecting their respective property that can be removed by payment of money (e.g., mortgages, deeds of trust, tax liens, mechanic’s liens, etc.).

 

2.                                      Payment of Cash.  If the Exchange does not occur on or before the Exchange Date, the Parties will cause the Refinery Exchange Property to be appraised by an independent appraiser mutually acceptable to the Parties.  The appraiser will be instructed to render an opinion as to the fair market value of the Refinery Exchange Property (the “Valuation Amount”), and such opinion will be binding on the Parties.  Fertilizer Company will pay the Valuation Amount in cash to Refinery Company (the “Cash Payment”) within 30 days of receiving the appraiser’s report (the “Payment Date”).  Upon making the Cash Payment, Fertilizer Company will have no further obligation to convey the Fertilizer Exchange Property to Refinery Company.

 

3.                                      Acknowledgement of Value.  The Parties acknowledge and agree that there is certain tangible and intangible value to be derived by each Party as a result of the exchanges described in this Memorandum, and each Party agrees that it has taken such value into account in assessing the consideration to be received by it in connection with the transactions described in this Memorandum.

 

4.                                      Additional Action and Documentation.  The Parties agree to take such further action and execute and deliver such further documentation as may be necessary and commercially reasonable to perform the transactions described in this Memorandum.

 

5.                                      Counterparts.  This Memorandum and other documents to be delivered pursuant to this Memorandum may be executed in one or more counterparts, each of which will be deemed to be an original copy and all of which, when taken together, will be deemed to constitute one and the same agreement or document, and will be effective when counterparts have been signed by each of the Parties and delivered to the other Parties.  A manual signature, an image of which has been transmitted electronically, will constitute an original signature for all purposes.  The delivery of copies of this Memorandum or other documents to be delivered pursuant to this Memorandum, including executed signature pages where required, by electronic transmission will constitute effective delivery of this Memorandum or such other document for all purposes.

 

[signatures on following page]

 

 

The Parties have executed and delivered this Memorandum as of the date first set forth above.

 

 

	
 
    	
COFFEYVILLE   RESOURCES REFINING & MARKETING, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Robert W. Haugen
    
	
 
    	
 
    	
Name:  Robert W. Haugen
    
	
 
    	
 
    	
Title:  EVP, Refining Operations
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
COFFEYVILLE   RESOURCES NITROGEN FERTILIZERS, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Byron R. Kelley
    
	
 
    	
 
    	
Name:    Byron R. Kelley
    
	
 
    	
 
    	
Title:  Chief Executive Officer
    

 

 

EXHIBIT A

 

Rail Yard Property

 

Lots 1 through 16, Block 2, Sterling Addition to the City of Coffeyville;

 

Lots 1 through 16, Block 3, Sterling Addition to the City of Coffeyville;

 

Lots 1 through 8, Block B, Upham’s Pottery Addition to the City of Coffeyville;

 

Lots 1 through 5, Block C, Upham’s Pottery Addition to the City of Coffeyville;

 

Lots 1 through 4, Block D, Upham’s Pottery Addition to the City of Coffeyville;

 

Lots 1 through 8, Block 4, Sterling Addition to the City of Coffeyville;

 

Lots 1 through 8, Block 11, River View Place Addition to the City of Coffeyville;

 

Lots 1 through 6, Block 12, River View Place Addition to the City of Coffeyville;

 

Lots 4 through 6, Block 3, Zeller’s Addition to the City of Coffeyville;

 

Lots 1 through 16, Block 8, River View Place Addition to the City of Coffeyville;

 

Lots 1 through 16, Block 5, River View Place Addition to the City of Coffeyville;

 

Lots 1 through 8, Block 2, River View Place Addition to the City of Coffeyville;

 

Lots 1 through 5, Block 1, River View Place Addition to the City of Coffeyville;

 

Lots 1 through 12, Hill’s Addition to the City of Coffeyville;

 

Block 4, Montgomery’s Addition to the City of Coffeyville;

 

Lot 5, Block C, Upham’s Pottery Addition to the City of Coffeyville, EXCEPT the West 50’ thereof; and ALSO beginning at the Southeast corner of said Lot 5, thence East 150’ m/l to the West line of the ROW of the M.K. & T. Railway, thence in a Northeast direction along the West said ROW 300’, thence West 150’ m/l to the Northeast corner of Lot 1, Block C, Upham’s Pottery Addition, thence Southwest parallel to the West line of said ROW 300’ to POB; and ALSO beginning at the Southwest corner of Lot 5, Block C, thence South 25’, thence East to the West line of said M.K.& T. Railway ROW, thence Northeast along the West line of said ROW to the Southeast corner of 2nd description herein, thence West to the POB, all in Montgomery County, Kansas;

 

Block E, Upham’s Pottery Addition;

 

 

Tract A, Commencing at a point 315.25’ West of the West line of the Southern Kansas Railroad, now A.T.& Santa Fe Railroad, thence South 112’, thence East 50’, thence North 112’, thence West 50’ the same being the West most Lot in a tract of land described as follows:  Commencing on the West line of the Atchison, Topeka and Santa Fe Railroad, formerly the Southern Kansas Railroad property, 1257.5’ North of the North line of highway along the South side of the East 1⁄2 of the Northwest 1⁄4 of S 36, T 34, R 16, thence West 315.25’, thence South 112’, thence East 289.25’ to the West line of ROW, North along rail line to POB, Montgomery County, Kansas;

 

Tract B, A tract of land located in a portion of the East 1⁄2 of the Northwest 1⁄4 of S 36, T 34S, R 16, East of the 6th P.M., Montgomery County, Kansas said tract being more particularly described as follows:  Commencing at the Southeast corner of Lot 1, Block D, Upham’s Pottery Addition, City of Coffeyville, thence North 90°00’00”East along the North line of Lot 1, Block E, said Upham’s Pottery Addition a distance of 50’ to the POB, thence continuing North 90°00’00”East along said North line a distance of 50’, thence North 0°27’30”West a distance of 126.14’, thence South 90°00’00”West a distance of 50’, thence South 00°27’30”East a distance of 126.14’ to the POB, Montgomery County, Kansas; and

 

Tract C, Beginning at a point 165.25’ West of a point on the West line of the A.T. & S.F. Railroad ROW, 1257.7’ North of the North line of the highway along the South side of the East 1⁄2 of the Northwest 1⁄4 of S 36, T 34S, R 16 East of the 6th P.M., running thence South 112’, thence West 50’, thence North 112’, thence East 50’ to the POB, All in Montgomery County, Kansas,

 

 

EXHIBIT B

 

Map

 

(see attached)exhibit4265.htm

EXHIBIT 4.265

 

 

 

AMENDMENT NO. 1

 

 

TO

 

 

AMENDED AND RESTATED MASTER MOTOR VEHICLE LEASE

AND SERVICING AGREEMENT (GROUP VII),

dated as of May 18, 2012

 

 

among

 

 

RENTAL CAR FINANCE CORP.,

as Lessor,

 

DTG OPERATIONS, INC.,

as Lessee and Servicer,

 

those Permitted Lessees

from time to time

becoming Lessees and Servicers thereunder

 

 

and

 

 

DOLLAR THRIFTY AUTOMOTIVE GROUP, INC.,

as Guarantor and Master Servicer

 

 

 

  

  

  

 

AMENDMENT NO. 1

TO AMENDED AND RESTATED MASTER MOTOR VEHICLE LEASE AND SERVICING 

AGREEMENT (GROUP VII)

 

This Amendment No. 1 to the Group VII Lease (as defined below), dated as of May 18, 2012 (the “Amendment”), by and among  Rental Car Finance Corp., a special purpose Oklahoma corporation (“RCFC”), DTG Operations Inc., an Oklahoma corporation (“DTG Operations”), and those Permitted Lessees from time to time becoming Lessees and Servicers pursuant to Section 28 of the Group VII Lease (each, an “Additional Lessee”), and Dollar Thrifty Automotive Group, Inc., a Delaware corporation (“DTAG”) (RCFC, DTG Operations, each Additional Lessee, and DTAG are collectively referred to herein as the “Parties”).

 

RECITALS:

 

A.   The Parties wish to amend and supplement the Amended and Restated Master Motor Vehicle Lease and Servicing Agreement (Group VII), dated as of September 29, 2011 (the “Group VII Lease”), by and among RCFC, as Lessor, DTG Operations, as Lessee and Servicer, each Additional Lessee and DTAG, as Guarantor and Master Servicer as provided herein pursuant to Section 22 thereof;

 

B.   The Master Collateral Agent and the Trustee wish to consent to this Amendment on the terms set forth herein pursuant to Section 22 of the Group VII Lease; and

 

C.   The Series 2010-3 Notes are the sole Group VII Series of Notes Outstanding and the Series 2010-3 Noteholders signatory hereto (the “Consenting Noteholders”) are (i) the Required Noteholders (as defined in the Base Indenture) with respect to the Series 2010-3 Notes and (ii) the Series 2010-3 Required Noteholders (as defined in the Series 2010-3 Supplement).  The Consenting Noteholders wish to consent to this Amendment on the terms set forth herein pursuant to Section 22 of the Group VII Lease, Section 8.6 of the Series 2010-3 Supplement and Section 8.04 of the Series 2010-3 Note Purchase Agreement (as defined in the Series 2010-3 Supplement).

 

NOW THEREFORE, the Parties hereto agree as follows:

 

1.   Definitions.  Capitalized terms used in this Amendment not herein defined shall have the meaning contained in the Group VII Lease.

 

2.   Amendment.  The Group VII Lease is hereby amended as follows:

 

(a)  Clause (h) of Section 24.4 is hereby amended and restated as follows:

 

“(h)           Non-Program Vehicle Report.  Annual reports (or semi-annual at the option of the Master Servicer) of independent public accountants as follows:  On or before the second Determination Date immediately following March 31 of each year, beginning with March 31, 2011, the Master Servicer shall cause a firm of nationally recognized independent public accountants (who may also render other services to the Master Servicer and who is reasonably acceptable to the Required Noteholders for each Group VII Series of Notes with respect to its Series of Notes) to furnish a report (the “Non-Program Vehicle Report”) 

 

  

  

  

 

to the Lessor, the Trustee and the Master Collateral Agent to the effect that they have performed certain agreed upon procedures with respect to the calculation of Disposition Proceeds obtained from the sale or other disposition of all Non-Program Vehicles (other than Casualties) sold or otherwise disposed of during each Related Month in such period and compared such calculations of Disposition Proceeds with the corresponding amounts set forth in the Daily Reports prepared by the Master Servicer pursuant to clause (a) above and that on the basis of such comparison such accountants are of the opinion that such amounts are in agreement, except for such exceptions as they believe to be immaterial and such other exceptions as shall be set forth in such report.  The Master Servicer shall serve as agent for the users of the report in determining the sufficiency of such procedure.”

 

3.   Effect of Amendment.  Except as expressly set forth herein, this Amendment shall not by implication or otherwise limit, impair, constitute a waiver of, or otherwise affect the rights and remedies of any of the Parties hereto under the Group VII Lease, nor alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Group VII Lease, all of which are hereby ratified and affirmed in all respects by each of the Parties hereto and shall continue in full force and effect.  This Amendment shall apply and be effective only with respect to the provisions of the Group VII Lease specifically referred to herein and any references in the Group VII Lease to the provisions of the Group VII Lease specifically referred to herein shall be to such provisions as amended by this Amendment.

 

4.   Binding Effect.  This Amendment shall be binding upon and inure to the benefit of the Parties and their respective successors and assigns.

 

5.   GOVERNING LAW.  THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK (WITHOUT GIVING EFFECT TO THE PROVISIONS THEREOF REGARDING CONFLICTS OF LAWS), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HERETO SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 

6.   Counterparts.  This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when executed and delivered shall be deemed to be an original and all of which taken together shall constitute but one and the same agreement.

 

[SIGNATURES ON FOLLOWING PAGES]

 

 

  

  

  

 

IN WITNESS WHEREOF, the Parties have caused this Amendment to be duly executed and delivered as of the day and year first above written.

 

LESSOR:

 

RENTAL CAR FINANCE CORP.

 

 

 

By:____________________________________

H. Clifford Buster III

President and Treasurer

 

Address:            5330 East 31st Street

Tulsa, Oklahoma  74135

Attention:          H. Clifford Buster

Telephone:         (918) 669-2272

Facsimile:            (918) 669-2970

 

 

LESSEES AND SERVICERS:

DTG OPERATIONS, INC.

By:____________________________________

H. Clifford Buster III

Executive Vice President

Chief Financial Officer and Treasurer

Address:            5330 East 31st Street

Tulsa, Oklahoma  74135

Attention:          H. Clifford Buster

Telephone:         (918) 669-2272

Facsimile:            (918) 669-2970

 

 

 

  

  

  

 

GUARANTOR:

DOLLAR THRIFTY AUTOMOTIVE 

GROUP, INC.

By:____________________________________

H. Clifford Buster III

Senior Executive Vice President, Chief

Financial Officer and Treasurer

Address:            5330 East 31st Street

Tulsa, Oklahoma  74135

Attention:          H. Clifford Buster

Telephone:         (918) 669-2272

Facsimile:            (918) 669-2301

 

 

  

  

  

 

The foregoing Amendment is hereby consented

and accepted as of the date first above written:

 

 

DEUTSCHE BANK TRUST COMPANY

AMERICAS, as Trustee

 

 

By:_______________________________

       Name:

       Title:

 

 

By:_______________________________

       Name:

       Title:

 

 

DEUTSCHE BANK TRUST COMPANY

AMERICAS, as Master Collateral Agent

 

 

By:_______________________________

       Name:

       Title:

 

 

By:_______________________________

       Name:

       Title:

 

 

  

  

  

 

DEUTSCHE BANK AG, NEW YORK BRANCH, as a 

Series 2010-3 Noteholder

 

 

By:_______________________________

       Name:

       Title:

 

 

By:_______________________________

       Name:

       Title:

 

 

  

  

  

 

THE BANK OF NOVA SCOTIA, acting through its New 

York Agency, as a Series 2010-3 Noteholder

 

By:_______________________________

       Name:

       Title:

 

 

 

  

  

  

 

JPMORGAN CHASE BANK, N.A., as a Series 2010-3 

Noteholder

 

 

By:_______________________________

       Name:

       Title:

 

 

  

  

  

 

 

THE ROYAL BANK OF SCOTLAND PLC, as a 

Series 2010-3 Noteholder

 

 

By:  RBS SECURITIES INC., as agent

 

 

By:_______________________________

       Name:

       Title:

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