Document:

ex_152364.htm

Exhibit 10.3

 

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. 

 

EXECUTION VERSION

 

NOTICE OF

 

BENEFICIAL INTEREST TRANSFER (MSN 30241)

 

	
			From:

				
			Wells Fargo Trust Company, National Association, not in its individual capacity but solely as owner trustee (“Lessor”)

			

 

	
			 

				
			Sapphire Finance I Holding Designated Activity Company, as prior owner participant (“Prior Owner Participant”)

			

 

	
			 

				
			Contrail Aviation Leasing, LLC, as new owner participant (“New Owner Participant”)

			

 

	
			To:

				
			Sun Country, Inc. d/b/a Sun Country Airlines (formerly known as MN Airlines, LLC)(“Lessee”)

			

 

July 26, 2019

 

Ladies and Gentlemen:

 

We refer to the Aircraft Lease Agreement dated as of January 14, 2009 between (as assigned, assumed, amended and supplemented from time to time, the “Lease”) Lessor and Lessee pertaining to one (1) Boeing model 737-700 aircraft bearing manufacturer’s serial number 30241 and United States registration mark N710SY and two (2) CFM International model CFM56-7B22 engines bearing manufacturer’s serial numbers 889727 and 889728 (the “Aircraft”).

 

Initially capitalized terms used in this Notice of Beneficial Interest Transfer (MSN 30241) (this “Notice”) shall have the meanings ascribed thereto in the Lease, unless specifically defined herein.

 

Reference is also made to the that certain Third Trust Assignment and Assumption Agreement (MSN 30241) dated on or about the date hereof (the “Assignment Agreement”) between Prior Owner Participant and New Owner Participant pursuant to which, as of and with effect from the Effective Date (defined below):

 

	 	
			1)

				
			Prior Owner Participant is assigning to New Owner Participant, among other things, all of Prior Owner Participant’s right, title and interest in, under and with respect to the Trust Agreement (Aircraft MSN 30241) dated as of August 22, 2016 (as assigned, assumed, amended, supplemented and/or modified from time to time, the “Trust Agreement”) between Prior Owner Participant and Lessor and certain other Assigned Agreements (as defined in the Assignment Agreement) (collectively, for purposes of this Notice, the “Owner Participant Documents”); and

			

 

	 	
			2)

				
			New Owner Participant is assuming the duties and obligations of Prior Owner Participant under the Owner Participant Documents arising at or subsequent to the Effective Date.

			

 

 

 

 

Pursuant to Article 19.6 of the Lease, Lessor hereby gives you notice that, as of and with effect from the Effective Date, Prior Owner Participant will assign to New Owner Participant all of its right, title and interest in and to the beneficial interest under the Trust Agreement (the effective date of such assignment being referred to as the “Effective Date”).

 

Lessor shall notify you in writing of the Effective Date pursuant to a notice substantially in the form of Appendix A (the “Notice of Effective Date”).

 

New Owner Participant hereby represents and warrants that on and after the Effective Date:

 

	 	
			a)

				
			so long as an Event of Default shall not have occurred and be continuing or in order to comply with applicable Law, Lessee shall quietly use, possess and enjoy the Aircraft without interference by it or by any Person lawfully claiming by or through it but the exercise by Lessor of any rights of Lessor under or in respect of the Lease or any of the other Operative Documents will not constitute such interference;

			

 

	 	
			b)

				
			Lessee’s rights under the Lease will not be materially adversely affected as a result of the assignment contemplated by the Assignment Agreement, and Lessee’s liabilities and obligations under the Lease will not be materially increased as a result of such assignment as compared to Lessee’s liabilities and obligations that Lessee would have had if such assignment had not occurred, in each case, determined by reference to applicable Law at the time of such assignment, provided that an increase in the number of “Indemnitees” and/or “Additional Insured” shall not be deemed to be an additional or increased obligation;

			

 

	 	
			c)

				
			Its obligations under the Lease have been guaranteed by Contrail Aviation Support, LLC, a Person that has a net worth of not less than US$[__________];

			

 

	 	
			d)

				
			it is, or is managed by, a reputable entity having experience with leasing commercial passenger aircraft;

			

 

	 	
			e)

				
			it is not a Person who is a competitor of Lessee or any Affiliate of Lessee whose primary business is that of a commercial airline; and

			

 

	 	
			f)

				
			it will be bound by all the terms of, and will undertake all the obligations of the “Owner Participant” contained in the Owner Participant Documents arising on and after the Effective Date.

			

 

Lessor hereby gives you, the Lessee, notice that the notice of assignment dated May 8, 2018 from the Lessor (the “Prior Notice of Security Assignment”) is hereby terminated and revoked, and the security granted pursuant to the Security Assignment (as defined therein) has been released. You are hereby fully released from your obligations contained in the Prior Notice of Security Assignment.

 

Lessee, by its acknowledgment hereof, agrees that:

 

	 	
			a)

				
			it shall cooperate with Lessor and New Owner Participant and do such things, execute such documents, and make such filings and registrations in the State of Registration,

			

 

- 2 -

 

 

at the cost of Prior Owner Participant, as may be reasonably requested of it by Lessor and/or New Owner Participant in order to protect the interests of Lessor and/or New Owner Participant in connection with the assignment contemplated by the Assignment Agreement;

 

	 	
			b)

				
			it shall continue to name Prior Owner Participant as an Additional Insured under its aircraft liability insurance for the Aircraft as required under the Lease for a period of two (2) years from the Effective Date;

			

 

	 	
			c)

				
			for all purposes of the Lease (and subject to compliance with the terms and conditions thereof), New Owner Participant shall be deemed the “Owner Participant” and each of the New Owner Participant, Contrail Aviation Support, LLC and Old National Bank shall be deemed an “Indemnitee” and an “Additional Insured” for all purposes of the Operative Documents and that it shall, on the Effective Date, provide New Owner Participant with an insurance certificate in the form required pursuant to Article 12 (Insurance) of the Lease and reflecting the addition of New Owner Participant and Contrail Aviation Support, LLC as Additional Insureds;

			

 

	 	
			d)

				
			all notices with respect to Owner Participant pursuant to Article 19.3 (Notices) of the Lease and each of the other Operative Documents should be sent to the following address:

			

 

	Address 	
			435 Investment Court

			
	 	Verona, Wisconsin 53593
	 	 
	Attention	Joe Kuhn
	 	 
	Fax:   	(808) 848-8101
	 	 
	Email:	joe@contrail.com

    

	 	
			e)

				
			all payments sent to Lessor pursuant to the Lease should be made to the following account:

			

 

	Correspondent Bank:	Old National Bank
	 	 
	Address:	25 W. Main Street, Madison, WI 53703
	 	 
	ABA#:	[________]
	 	 
	SWIFT:	[________]
	 	 
	Account Name:	Contrail Aviation Leasing, LLC
	 	 
	Account Number:	[_________]
	 	 
	Reference:	MSN 30241

     

- 3 -

 

 

	 	
			f)

				
			Prior Owner Participant is released from its obligations under the Owner Participant Documents to the extent such obligations are assumed by New Owner Participant under the Assignment Agreement; and

			

 

	 	
			g)

				
			except as amended or modified by this Notice, the Operative Documents and each of the terms and provisions thereof shall continue in full force and effect.

			

 

The Lessor and the Lessee (by its acknowledgement hereof) agree that the Lease shall be amended as follows:

 

	 	
			a)

				
			the definition of “Owner Participant” shall be deleted and replaced with:

			

 

“ “Owner Participant” means Contrail Aviation Leasing, LLC (and its permitted assigns and successors).”

 

	 	
			b)

				
			the definition of “Trust Agreement” shall be deleted and replaced with:

			

 

“ “Trust Agreement” means the Third Amended and Restated Trust Agreement (Aircraft MSN 30241) dated as of July 26, 2019, between the Owner Participant and the Owner Trustee (as amended and restated from time to time).”

 

Prior Owner Participant represents and warrants to New Owner Participant that the entire agreement between Existing Lessor and Lessee in relation to the leasing of the Aircraft is constituted in the lease documents set forth in Schedule 1 and there are no amendments, modifications, supplements, waivers or other arrangements which affect the terms of such lease documents.

 

Prior Owner Participant or its Affiliate agrees to reimburse Lessee for all reasonable out- of-pocket costs and expenses (including reasonable legal fees) incurred by Lessee in connection with the review, negotiation, preparation and execution of this Notice and the documents related hereto.

 

This Notice may be executed simultaneously in two or more counterparts and by different parties hereto on separate counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

Upon the issuance of the Notice of Effective Date, this Notice and the instructions and undertakings contained in this Notice shall become irrevocable.

 

Please acknowledge receipt of this Notice to Lessor, it being provided hereby that your signature shall confirm your acknowledgement of an agreement for the benefit of Lessor, Prior Owner Participant and New Owner Participant of the terms hereof.

 

THIS NOTICE SHALL IN ALL RESPECTS BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, U.S.A., APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE WITHOUT REGARD FOR CONFLICT OF LAW PRINCIPLES (OTHER THAN THE PROVISIONS OF SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK).

 

[SIGNATURE PAGES FOLLOW]

 

- 4 -

 

 

 

	 	
			Very truly yours,

			 

			WELLS FARGO TRUST COMPANY, N.A.

			(f/k/a WELLS FARGO BANK NORTHWEST,

			NATIONAL ASSOCIATION, not in its individual

			Capacity but solely as owner trustee, as Lessor

			 

			By:     /s/ Hillary Pavia

			 

			Name: Hillary Pavia

			 

			Title:     Vice President

			

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- Signature Page -

Notice of Beneficial Interest

MSN 30241

 

- 5 -

 

 

	 	
			SAPPHIRE FINANCE I HOLDING

			DESIGNATED ACTIVITY COMPANY,

			as Prior Owner Participant

			 

			 

			 

			By:     /s/ William Brennan

			 

			Name: William Brennan

			 

			Title:     Director

			

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- Signature Page -

Notice of Beneficial Interest

MSN 30241

 

 

 

 

	 	
			CONTRAIL AVIATION LEASING, LLC,

			as New Owner Participant

			 

			 

			By: /s/ Joseph G. Kuhn

			 

			Name: Joseph G. Kuhn

			 

			Title:     CEO

			

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- Signature Page -

Notice of Beneficial Interest

MSN 30241

 

 

 

 

 

ACKNOWLEDGED AND AGREED:

 

Sun Country, Inc. d/b/a Sun Country Airlines (formerly known as MN Airlines,

LLC), as Lessee

 

 

By:       /s/ Jude Bricker

 

Name:  Jude Bricker

 

Title:    President & CEO

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- Signature Page -

Notice of Beneficial Interest

MSN 3024 1

 

 

 

 

Notice of Beneficial Interest Transfer: Notice of Effective Date

 

	
			From: 

				
			Wells Fargo Trust Company, National Association, not in its individual capacity but solely as owner trustee (“Lessor”)

			

 

	
			To: 

				
			Sun Country, Inc. d/b/a Sun Country Airlines (formerly known as MN Airlines, LLC) (“Lessee”)

			

 

 

July 26, 2019

 

 

Ladies & Gentlemen:

 

We refer to the Notice of Beneficial Interest Transfer (MSN 30241) dated July 26, 2019 (the “Notice”) relating to the Aircraft Lease Agreement dated as of January 14, 2009 (as assigned, assumed, amended and supplemented from time to time) between Lessor and Lessee pertaining to one (1) Boeing model 737-700 aircraft bearing manufacturer’s serial number 30241 and registration mark N710SY and two (2) CFM International model CFM56-7B22 engines bearing manufacturer’s serial numbers 889727 and 889728.

 

This is the Notice of Effective Date described in the Notice.

 

Capitalized terms used but not defined herein shall have the meanings assigned to them in the Notice.

 

We notify you that the Effective Date Occurred on July 26, 2019 at 15:30 PM EST while the Aircraft was located in Minneapolis-Saint Paul International Airport, Minnesota.

 

	 	
			Very truly yours,

			 

			WELLS FARGO TRUST COMPANY, NATIONAL

			ASSOCIATION, not in its individual capacity but

			Solely as owner trustee, as Lessor

			 

			 

			By:         /s/ Hillary Pavia

			 

			Name:    Hillary Pavia 

			 

			Title:      Vice President

			

 

- 9 -

 

 

SCHEDULE 1

 

 

	 	
			1.

				
			Aircraft Lease Agreement dated as of January 14, 2009 between C.I.T. Leasing Corporation, as lessor, and MN Airlines, LLC dba Sun Country Airlines, as lessee

			

 

	 	
			2.

				
			Technical Acceptance Receipt dated January 30, 2009 by MN Airlines, LLC

			

 

	 	
			3.

				
			Lease Supplement dated January 30, 2009 between C.I.T. Leasing Corporation, as lessor, and MN Airlines, LLC, as lessee

			

 

	 	
			4.

				
			Side Letter to the Leases dated July 29, 2009 between C.I.T. Leasing Corporation, as lessor, and MN Airlines, LLC dba Sun Country Airlines, as lessee, but solely insofar as the same pertains to Aircraft No. 2

			

 

	 	
			5.

				
			Amendment Number One to Aircraft Lease Agreement dated as of November 30, 2011 between C.I.T. Leasing Corporation, as lessor, and MN Airlines, LLC dba Sun Country Airlines, as lessee

			

 

	 	
			6.

				
			Global Side Letter to the Leases dated February 3, 2012 between C.I.T. Leasing Corporation, as lessor, and MN Airlines, LLC dba Sun Country Airlines, as lessee

			

 

	 	
			7.

				
			Amendment Number Two to Aircraft Lease Agreement dated as of October 15, 2013 between C.I.T. Leasing Corporation, as lessor, and MN Airlines, LLC dba Sun Country Airlines, as lessee

			

 

	 	
			8.

				
			Amendment Number Three to Aircraft Lease Agreement dated as of June 9, 2015 between C.I.T. Leasing Corporation, as lessor, and MN Airlines, LLC dba Sun Country Airlines, as lessee

			

 

	 	
			9.

				
			Assignment, Assumption and Amendment Agreement dated as of August 22, 2016 among C.I.T. Leasing Corporation, as assignor, Wells Fargo Bank Northwest, National Association, not in its individual capacity but solely as owner trustee, as assignee and MN Airlines, LLC dba Sun Country Airlines, as lessee

			

 

	 	
			10.

				
			Amendment Number Four to Aircraft Lease Agreement dated as of February 23, 2018 between Wells Fargo Trust Company, National Association, not in its individual capacity but solely as owner trustee, as lessor, and Sun Country Airlines, as lessee.

			

 

	 	
			11.

				
			Amendment Number Five to Aircraft Lease Agreement dated as of June 20, 2019 between Wells Fargo Trust Company, National Association, not in its individual capacity but solely as owner trustee, as lessor, and Sun Country, Inc. d/b/a Sun Country Airlines (formerly known as MN Airlines, LLC), as lessee.

			

 

 

- 10 -ex_152365.htm

Exhibit 10.4

 

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. 

 

EXECUTION VERSION

 

 

GUARANTEE (MSN 30241)

 

THIS GUARANTEE (MSN 30241) (this “Guarantee”) is dated as of July 26, 2019, between:

 

(1)     CONTRAIL AVIATION SUPPORT, LLC, a limited liability company organized and existing under the laws of the State of North Carolina, having its principal place of business at 435 Investment Court, Verona, Wisconsin 53593 (“Guarantor”); and

 

(2)     SUN COUNTRY, INC. d/b/a Sun Country Airlines (formerly known as MN Airlines, LLC), a corporation organized and existing under the laws of the State of Minnesota and having its principal place of business at 1300 Corporate Center Curve, Eagan, Minnesota 55121 (“Lessee”).

 

WHEREAS, Wells Fargo Trust Company, National Association, not in its individual capacity, but solely as owner trustee (“Lessor”) and Lessee entered into that certain Aircraft Lease Agreement, dated as of January 14, 2009 (as assigned, assumed, amended, supplemented or otherwise modified from time to time, collectively, the “Lease”) pertaining to one (1) Boeing model 737-700 aircraft bearing manufacturer’s serial number 30241 and United States registration mark N710SY and two (2) CFM International, Inc. CFM56-7B22 engines bearing manufacturer’s serial numbers 889727 and 889728 (the “Aircraft”);

 

WHEREAS, Sapphire Finance I Holding Designated Activity Company, as seller (“Seller”), Contrail Aviation Leasing, LLC, as buyer (“Buyer”) and Guarantor, as Buyer Guarantor entered into that certain Aircraft Asset Sale and Purchase Agreement relating to the sale of the beneficial interest in the trust holding title to the Aircraft (the “Beneficial Interest”) by Seller to Buyer;

 

WHEREAS, Article 16(d) of the Lease requires that Buyer, as New Owner Participant, at the time of transfer of the Beneficial Interest will have a net worth of not less than $[___________] (or have its obligations under the Lease guaranteed by a Person meeting such requirement); and

 

WHEREAS, Buyer does not have a net worth of at least $[___________] but Guarantor, the parent of Buyer, has a net worth of at least $[___________] and is willing to guarantee the obligations of Buyer under the Lease;

 

NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

 

1.        Definitions. Unless the context otherwise requires, the following terms shall have the following meanings for all purposes of this Guarantee and shall be equally applicable both to the singular and plural forms of the terms defined. Any capitalized terms not defined herein shall have the meanings ascribed to them in the Lease.

 

 

 

 

“Guaranteed Agreements” means the Lease and the other Operative Agreements to which Buyer is a party.

 

“Guaranteed Obligations” means all of Buyer’s obligations to the Lessee under the Guaranteed Agreements (whether actual or contingent, whether now existing or hereafter arising owed to the Lessee), and compliance with, all obligations, covenants, terms, conditions and undertakings of Buyer contained in the Guaranteed Agreements.

 

2.         Representations and Warranties of Guarantor. Guarantor represents and warrants to the Lessee, as of the date hereof, as follows:

 

(a)    it is a limited liability company duly organized and validly existing under the laws of the State of North Carolina and has the power and authority to carry on its business as it is being conducted;

 

(b)   the execution and delivery of this Guarantee, the consummation of the transactions contemplated herein, and compliance with the terms and provisions hereof are within Guarantor’s limited liability company powers and do not and will not result in any violation of its charter, by-laws or other constitutional documents or any applicable law, rule, regulation, judgment or court order as currently in effect or any provision in any existing agreement binding on Guarantor;

 

(c)    all authorizations, consents, registrations and notifications required to be obtained by Guarantor in connection with the entry into, performance, validity and enforceability of this Guarantee and the transactions contemplated by this Guarantee, have been (or will be on or before the date hereof) obtained or effected (as appropriate) and are in full force and effect;

 

(d)    neither the execution, delivery nor performance of this Guarantee requires any member approval or the approval or consent of any trustee or any holder of any indebtedness or obligation of Guarantor, and if any approval or consent is required, then such approval or consent has been obtained.

 

(e)    no consent or approval of, giving of notice to, registration with, or taking of any action in respect of or by, any national or local governmental authority or agency of Guarantor’s jurisdiction of formation or any other government agency or authority or other Person is required with respect to the execution, delivery or performance by Guarantor of this Guarantee.

 

(f)    there are no actions, suits or proceedings pending, or to Guarantor’s knowledge threatened, against Guarantor, that, if adversely determined, would hinder or prevent Guarantor’s performance of this Guarantee;

 

(g)    its obligations under this Guarantee are its direct, general and unconditional obligations and rank, or will rank, at least pari passu with all its other present and future unsecured and unsubordinated obligations (including contingent obligations) save for obligations mandatorily preferred by law and not otherwise;

 

	 	
			(h)

				
			as of the date hereof the Guarantor has a net worth of at least US$[___________]; and

			

 

(i)    this Guarantee has been duly executed and delivered by Guarantor; and this Guarantee will be, upon due execution and delivery hereof, a legal, valid and binding obligation of Guarantor, enforceable against Guarantor in accordance with its terms, except as its enforceability may be limited by bankruptcy, insolvency, reorganization and other laws of general application affecting the enforcement of creditors’ rights and general principles of equity (regardless of whether such proceeding is considered a proceeding in equity or at law).

 

 

 

 

3.         Guarantee.

 

(a)    For good and valuable consideration (the receipt and sufficiency whereof is hereby acknowledged), Guarantor, with effect from the date hereof, unconditionally and irrevocably, as a continuing obligation and guarantee of performance, without set-off, abatement, deferment or deduction, guarantees to Lessee the due and punctual payment and performance by Buyer of the Guaranteed Obligations and undertakes with Lessee that whenever the Buyer does not promptly pay or perform the Guaranteed Obligations when due, Guarantor shall promptly pay upon the written demand from the Lessee the amount set forth in the demand or perform (or procure the performance of) the Guaranteed Obligation as if it were the principal obligor.

 

(b)    Guarantor as a principal obligor and not merely as surety, and as a separate and independent primary stipulation shall indemnify Lessee upon written demand against any documented loss, liability or cost or expense suffered by Lessee (including reasonable attorneys’ fees and disbursements incurred by Lessee in the enforcement of this Guarantee) if (i) it does not perform the Guaranteed Obligations or (ii) any Guaranteed Obligation becomes unenforceable, void, illegal or ineffective as against the Guarantor, the amount of such loss or liability being the amount which the Lessee would otherwise be entitled to recover from Guarantor.

 

(c)    Guarantor shall make any payment (including payments of damages for breach of the Guaranteed Agreements by Buyer) or procure the performance of or compliance with any Guaranteed Obligation set forth in a demand letter within five (5) Business Days of Guarantor’s receipt of such written demand to an account indicated by the Lessee in the demand, all subject to the requirements of, and conditions associated with, the Guaranteed Obligations.

 

(d)   The guarantee by Guarantor contained in this Section 3 is a primary obligation of Guarantor, is in addition to and not in substitution for any other security which Lessee may now or hereafter hold for the obligations of Buyer under the Guaranteed Agreements and is an unconditional, absolute, present and continuing obligation and is not conditional in any way upon the institution of suit or the taking of any other action or any attempt to enforce performance of or compliance with the covenants, agreements, terms or conditions (including without limitation any payment obligations) applicable to Buyer contained in the Guaranteed Agreements and, to the extent permitted by law, shall be binding upon and enforceable against Guarantor without regard to the validity or enforceability of the Guaranteed Agreements.

 

(e)    To the extent that performance of or compliance with the guarantee by Guarantor contained in this Section 3 requires the payment of money, such guarantee is an absolute, unconditional, present and continuing guarantee of payment and not of collectability and is in no way conditional or contingent upon any attempt to collect from Buyer or any other entity or to institute a suit against Buyer or any other entity or to perfect or to enforce any security or upon any other condition or contingency.

 

 

 

 

(f)     Guarantor’s guarantee of Guaranteed Obligations shall not be affected by, discharged or diminished as a consequence of the Lessee being released from the Lease pursuant to its terms.

 

4.         Preservation of Guarantor’s Obligations and Enforcement.

 

(a)    Guarantor’s obligations in this Guarantee are absolute, unconditional and irrevocable. The liability of Guarantor under this Guarantee extends to and is not affected by the grant of any time or indulgence to Buyer or by any circumstance, act or omission which, but for this sub- clause, might otherwise affect it at law or in equity, and Guarantor irrevocably waives any right it may have to claim its liability has been so affected.

 

(b)    Until the Guaranteed Obligations have been unconditionally and irrevocably satisfied in full, Guarantor may not: (a) exercise any rights as surety in competition with Lessee; or (b) claim to be entitled by way of contribution, indemnity, subrogation, marshalling or otherwise to the benefit of any agreement or document to which Lessee is a party, nor prove in a liquidation of Buyer in competition with Lessee.

 

(c)    Guarantor’s obligations in this Guarantee may be enforced against Guarantor without Lessee first being required to (a) exhaust any remedy it may have against Buyer or any other person; or (b) enforce any other guarantee or security interest it may hold relating to the Guaranteed Obligations.

 

5.         Release.

 

(a)    Once all the Guaranteed Obligations have been satisfied in full and Guarantor does not have any further actual or contingent liabilities hereunder, this Guarantee shall automatically and immediately terminate and all of Guarantor’s obligations under this Guarantee shall be irrevocably and unconditionally released and discharged.

 

(b)    Notwithstanding the provisions of Section 5(a), any release, compromise or discharge of the obligations of the Guarantor may only be made once the Guaranteed Obligations have been unconditionally performed in full, and shall be deemed to be made subject to the condition that this Guarantee will be reinstated without further action if any payment or security which Buyer may receive or has received is rescinded as a result of insolvency or bankruptcy of Buyer or Guarantor.

 

6.         Continuing Guarantee

 

(a)   The obligations of the Guarantor contained in this Guarantee shall constitute and be continuing obligations notwithstanding any settlement of account or other matter or thing whatsoever, and shall not be considered satisfied by any intermediate performance or satisfaction of all or any of the Guaranteed Obligations and shall continue in full force and effect until total satisfaction of all Guaranteed Obligations.

 

(b)    No delay or omission in exercising any powers or privileges hereunder shall be construed as a waiver thereof. Any exercise of any part of the rights shall not preclude subsequent enforcement of any such rights which have not, or have not fully, been exercised.

 

 

 

 

7.         Notice. Any notice required or related to this Guarantee will be in writing and will, unless otherwise stated, be given and will become effective in the same manner as provided in the Lease:

 

in the case of Guarantor:

 

435 Investment Court

Verona, Wisconsin 53593

United States of America

Attention: Joe Kuhn

Facsimile: +1 808-848-8101

Email: joe@contrail.com

 

 

in the case of Lessee:

 

1300 Corporate Center Curve

Eagan, MN 55121

Attention: General Counsel

Facsimile:

Email:

 

8.         Miscellaneous.

 

(a)    Governing Law. THIS GUARANTEE IS DELIVERED IN NEW YORK AND PURSUANT TO NEW YORK GENERAL OBLIGATIONS LAW SECTION 5-1401, SHALL IN ALL RESPECTS BE GOVERNED BY NEW YORK LAW WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAW INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE.

 

(b)    Jurisdiction. Section 19.2 (Governing Law and Jurisdiction) of the Lease is hereby incorporated by reference as if set forth in full length herein, mutatis mutandis.

 

(c)   Successors and Assigns. The terms of this Guarantee shall be binding on, and inure to the benefit of, Lessee and Guarantor and their respective permitted successors and assigns.

 

(d)    Waiver of Notice and Defense. Except as otherwise provided in this Guarantee, Guarantor hereby waives, to the fullest extent permitted by law:

 

(i)     diligence, promptness, presentment, demand for payment or performance and protest and notice of protest, notice of acceptance and any other notice in respect of the Guaranteed Obligations or any part of them, and any defense arising by reason of any disability or other defense; and

 

(ii)     any other circumstance whatsoever that might otherwise constitute a legal or equitable discharge, release or defense of a guarantor or surety, or which might otherwise limit recourse against Guarantor.

 

 

 

 

(e)    Severability. Should any one or more of the provisions of this Guarantee be held to be invalid, illegal or unenforceable in any jurisdiction, the same shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof; and the invalidity, illegality or unenforceability of a particular provision in a particular jurisdiction shall not render such provision invalid, illegal or unenforceable in any other jurisdiction.

 

(f)     Payments. Guarantor shall make each payment to Lessee under this Guarantee without any set-off, counterclaim or any other deduction, or withholding in respect of Taxes or otherwise.

 

(g)    Waivers, Amendments and Variations in Writing. The provisions of this Guarantee shall not be capable of being waived, amended or varied otherwise than by an express waiver or amendment in writing signed by both Guarantor and Lessee; and in particular any failure to exercise or any delay in exercising any of such rights shall not operate as a waiver, amendment or variation of that or any other such right; any defective or partial exercise of any of such rights shall not preclude any other or further exercise of that or any other such right; and no act or course of conduct or negotiation on Lessee’s part or on its behalf shall in any way preclude it from exercising any such right or constitute a suspension of any variation or amendment of any such right. The rights and remedies herein provided are cumulative and are not exclusive of any rights or remedies that any party may otherwise have at law or in equity.

 

(h)    Counterparts; Delivery by Email. This Guarantee may be executed in two or more counterparts, each of which will be an original, but all of which will constitute but one and the same instrument.

 

This Guarantee and any document contemplated hereby may be delivered by a party hereto by way of e-mail transmission and such delivery shall be deemed completed for all purposes upon the completion of such e-mail transmission. A party that so delivers this Guarantee or any such document by way of e-mail transmission agrees to promptly thereafter deliver to the other party hereto an original signed counterpart. The signature of any party transmitted by e-mail transmission shall be considered to have the same binding legal effect as an originally executed document. In consideration of the mutual covenants herein contained, the parties agree that neither of them shall raise the use of e-mail as a defense in any suit or controversy related to this guarantee or any of such other documents and forever waive any such defense.

 

(j)     Entire Agreement. This Guarantee constitutes the complete agreement of the parties hereto regarding the subject matter hereof and supersedes all prior understandings, communications and agreements (written or oral).

 

*     *     *

 

 

 

 

IN WITNESS WHEREOF, the parties hereto have executed and delivered this Guarantee by their duly authorized officers or attorneys on the date shown at the beginning of this Guarantee.

 

	 	
			GUARANTOR:

			 

			CONTRAIL AVIATION SUPPORT,

			LLC

			 

			 

			By:        /s/ Joseph G. Kuhn

			Name:   Joseph G. Kuhn

			Title:     CEO

			

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- Signature Page

Guarantee

MSN 30241

 

 

 

 

	 	
			LESSEE:

			 

			SUN COUNTRY, INC. d/b/a Sun country

			Airlines (formerly known as MN Airlines,

			LLC)

			 

			 

			By:      /s/ Jude Bricker

			Name: Jude Bricker

			Title:   President & CEO

			

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- Signature Page -

Guarantee

MSN 3024 1

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